PMC INVESTMENT PROCESS
PMC believes that understanding how managers are combined is essential to overall portfolio performance and risk management. PMC uses two different portfolio construction tools, depending on the program, platform or product:
- In the first approach, a portfolio manager utilizes quantitative and qualitative factors to blend managers to achieve the desired risk/return profile
- The other approach uses an alpha/tracking error optimization to find the best combination of managers to track the target asset allocation
Both approaches rely on selecting combinations of managers to determine how much additional return is gained against the appropriate benchmark relative to the incremental risk taken while satisfying various portfolio constraints such as minimum or maximum manager allocations.
PMC Consultants are available to use these tools to help advisors craft solutions for specific large cases.
