PFM Asset Management LLC is celebrating its 10th year of providing clients with multi-asset class management services.
The firm's MACM approach focuses on asset allocation, cost awareness and fundamental analysis to construct portfolios for clients by investing in a diverse mix of asset classes, including both passive and active managers. Ultimately, the process gives PFMAM professionals the flexibility to act when they see opportunities to enhance returns and manage risk as guided by the client's objectives, according to a release from the company Monday.
Launched in July 2006 on the recommendation of clients, MACM (also referred to as outsourced CIO, discretionary management and implemented consulting) now totals nearly $7.5 billion dollars of discretionary assets.
"Ten years ago, our clients approached us asking if there was a better way to implement timely investment advice," said John Spagnola, managing director of PFMAM. "They believed, and we concurred that the lag time between idea generation and implementation was hindered by the consultative model and the governance structure of investment, finance and pension committees. From its inception, MACM has been a client-driven endeavor and the success of the program is a testament to the trust we put in our clients and, in turn, the trust they have in us."
The release also said that the MACM team has enjoyed great success with the 17 different allocation models it has developed, which seek competitive returns relative to their benchmarks.
"These results validate the notion that you must always listen to the needs of your clients. Without their input, we would have never reached this level of success so quickly," Spagnola said. "As client assets grow, we will continue to search for and implement new and innovative ways to use scale to benefit our clients through lower investment costs and access to top managers."
Former Federal Reserve investment officer Dr. Biagio Manieri chairs PFMAM's MACM investment committee, and has added discipline and structure to the firm's process since his arrival in 2012. Spagnola gives Manieri much of the credit for the strong investment performance within the MACM portfolios.
"It's a tremendous benefit to have Dr. Manieri as part of our team and it's clear that our clients value his contributions to our investment process as well," Spagnola said.
PFM Asset Management LLC provides investment management and consulting services to pension funds, endowments and foundations, and similar institutional investors. PFMAM is registered with the SEC under the Investment Advisers Act of 1940 and manages money market, fixed income, and multi-asset class portfolios. For the period ending June 30, 2016, PFMAM had $107 billion in total assets, including $65.6 billion in discretionary assets under management and $41.4 billion in non-discretionary assets under advisement.
