Financial Planning 
Mobile: 07772 195329 
Office: 02476 011704 
 
 
 
 

Our Investment Philosophy 

Investing for the long term 
 
There is significant evidence that suggests investing in stock market investments will provide higher returns than cash. However, to be able to achieve these additional returns, it is important to invest for the longer term. By longer term, we typically mean a minimum of five years, although there is no definitive guarantee of how long you need to invest to beat cash returns. Any investment involves risk, but the risk of an investment is likely to be reduced the longer you remain invested. 
Strategic Asset Allocation 
 
Asset allocation is an investment strategy that attempts to balance risk versus reward by adjusting the percentage of each asset in an investment portfolio according to an investor's risk tolerance, goals and investment time frame. The primary goal of a strategic asset allocation is to create an asset mix that will provide the optimal balance between expected risk and return for a long-term investment horizon. Academic research has painstakingly explained the importance of asset allocation and the problems of active management. Some studies have suggested that up to 90% of the variation in returns can be explained by asset allocation. Asset allocation is therefore a key factor in determining returns for an investment portfolio. 
Using low cost institutional funds 
 
We invest our client's money via predominantly passive funds rather than through active funds. Active funds are reliant on market forecasting and timing with the fund managers needing to make judgements about the individual companies, funds and assets to hold at any given time. Research has shown that it is very difficult to consistently pick good value stocks and secondly the fund manager’s costs and the continual buying and selling activities lead to higher charges. 
The Investment Process 
 
At PMC we establish your overall objectives, attitude to investment risk and then work with this information to determine the appropriate asset allocation and investment strategy. We have a variety of investment solutions available to us, taking in to account active versus passive, strategic versus tactical and any ethical investing considerations.