This portfolio strategy seeks to rotate investments among country-specific and country-blended Exchange Traded Funds (ETFs) that offer the greatest potential for capital appreciation primarily through equity investments in developed foreign and emerging markets. There are more than 35 country ETFs that are publicly traded in the United States.
Explanation for performance of PCM Dynamic International
Description
PCMs Dynamic International seeks to rotate investments among the country-specific and country-blended Exchange Traded Funds (ETFs) that seeks to offer the potential for capital appreciation. Because they track a wide range of broad-market, sector-specific and country specific indexes, in our opinion, ETFs are a good tool for improving portfolio balance and diversification while allowing full participation in the global economy.
Past performance is no guarantee of future returns. Investors should consider the investment objectives, risks, charges, and expenses carefully prior to investing. The performance shown for Dynamic International from July 1, 2005 to March 31, 2008 are from a Fidelity Model account net of 1% annual fees, returns from April 30, 2008 to present represents a Model Folio account, net of 1% annual fees. The investment return and principal value of an investment will fluctuate so shares, when redeemed, may be worth more or less than their original cost. Investments in securities of non-US issuers involve investment risks different from those of US issuers, including currency risks, political, social and economic risks. The quarterly volatility (standard deviation “STD”) of the model is not materially different than that of the MSCI EAFE, MSCI World ex-US, MSCI Emerging Market. This model portfolio will invest primarily in various portfolios of exchange-traded funds and other securities as approved, from time to time, by the principal of PCM at it’s sole discretion. Since this platform is always fully invested the volatility could be very high. Investors should not rely on charts and graphs alone when making investing decisions. Starting October 2010, the model is reallocated monthly, or as needed at the sole discretion of PCM. It is not anticipated that the new reallocation schedule will make a material difference in performance (back testing showed only a slight gain.)
The primary benchmark for the model is the unmanaged MSCI-EAFE® Index. The MSCI-EAFE Index is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding U.S. & Canada. As of May 2005 the MSCI EAFE Index consisted of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom. The MSCI EAFE Index with Gross Dividends is a series that approximates the maximum possible dividend reinvestment. The amount reinvested is the dividend distributed to individuals resident in the country of the company, but does not include tax credits. The MSCI World Index SM with Gross Dividends is a free float-adjusted market capitalization index that is designed to measure global developed market equity performance. As of May 2005 the MSCI World Index consisted of the following 23 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom and the U.S. The MSCI Emerging Markets IndexSM with Gross Dividends is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global merging markets. As of May 2005 the MSCI Emerging Markets Index consisted of the following 26 emerging market country indices: Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Jordan, Korea, Malaysia, Mexico, Morocco, Pakistan, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, Turkey and Venezuela. Source for EAFE, World ex US and Emerging Markets indices month end price information in US dollars was obtained from MSCI – BARRA website: Morgan Stanley Capital International, and by Reuters.
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PCM Dynamic International Monthly Total Returns Gross of Fees |
||||||||||||||
|
Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
YTD |
|
|
2005 |
|
|
|
|
|
0.11% |
5.55% |
3.67% |
8.23% |
-4.36% |
2.09% |
3.84% |
20.20% |
|
|
2006 |
9.31% |
-1.16% |
0.28% |
5.29% |
-6.74% |
0.66% |
0.75% |
2.72% |
1.33% |
5.25% |
5.41% |
3.78% |
29.29% |
|
|
2007 |
-0.49% |
-1.89% |
4.13% |
4.25% |
5.07% |
1.62% |
-3.74% |
0.47% |
7.67% |
4.24% |
-4.79% |
-5.36% |
10.69% |
|
|
2008 |
-3.00% |
0.13% |
2.21% |
4.60% |
3.38% |
-9.41% |
-4.33% |
-5.45% |
-17.74% |
-21.40% |
-7.29% |
10.25% |
-41.87% |
|
|
2009 |
-10.56% |
-8.16% |
10.98% |
14.02% |
13.10% |
0.17% |
2.62% |
0.92% |
4.98% |
-0.53% |
3.02% |
0.70% |
32.11% |
|
|
2010 |
-4.73% |
0.25% |
6.16% |
-1.36% |
-9.04% |
0.67% |
8.73% |
-0.63% |
8.90% |
2.61% |
-1.45% |
8.02% |
17.70% |
|
|
2011 |
-0.35% |
0.94% |
-1.47% |
5.31% |
-1.58% |
|
|
|
|
|
|
|
2.72% |
|
|
|
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|
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Shout if from the mountain tops.
What's the right portfolio for you or your clients? Provident Capital offers 4 portfolios that one can select that seek to replicate the risk and return characteristics of our Absolute Indexes. 
