Products -

DCM Small Cap Equity (Product inception date 04/99)

The DCM Small Cap Equity strategy combines quantitative and fundamental disciplines to systematically identify superior investment opportunities in the Small Cap market segment. The product seeks to add 400 bps to a client-preferred benchmark, with a targeted tracking error range of 300-600 bps. Typically, the product holds 100-150 stocks, and achieves benchmark valuation (P/E, P/CF, P/B) discounts of 15-30% based on the return opportunity presented. Sector and industry weightings are +/-5% relative to the benchmark, and individual stock weightings are +/- 2% relative to the benchmark. The strategy's liquidity limit is measured by less than 5 days' trading volume.

 

DCM Small Cap Value Equity (Product inception date 01/04)

The DCM Small Cap Value Equity strategy combines quantitative and fundamental disciplines to systematically identify superior investment opportunities in the Small Cap market segment. The product seeks to add 300 bps to a client-preferred benchmark, with a targeted tracking error range of 500 – 600 bps. Typically, the product holds 50 – 75 stocks, and achieves benchmark valuation (P/E, P/CF, P/B) discounts of 15 – 30% based on the return opportunity presented. Sector and industry weightings are +/-10% relative to the benchmark, and individual stock weightings are +/- 2% relative to the benchmark. The strategy's liquidity limit is measured by less than 5 days' trading volume.

DCM Mid Cap Equity (Product inception date 07/95)

The DCM Mid Cap Equity strategy combines quantitative and fundamental disciplines to systematically identify superior investment opportunities in the Mid Cap market segment. The product seeks to add 150 bps to a client-preferred benchmark, with a targeted tracking error range of 200-400 bps. Typically, the product holds 100-150 stocks, and achieves benchmark valuation (P/E, P/CF, P/B) discounts of 10-20% based on the return opportunity presented. Sector and industry weightings are +/-3% relative to the benchmark, and individual stock weightings are +/-2% relative to the benchmark. The strategy's liquidity limit is measured by less than 5 days' trading volume.

DCM Large Cap Equity (Product inception date 07/94)

The DCM Large Cap equity strategy is a disciplined, sector neutral process built upon the utilization of a Dividend Discount Model (DDM). The equity research process begins with estimates of normalized earnings, dividend payout and sustainable growth potential for individual companies. The forecasted return potential for individual stocks is compared with those of other stocks within the same sector. The portfolio is then constructed on a sector basis by considering return versus risk opportunities both at the sector and portfolio levels. The permitted tracking error falls within a range of 150-400 bps. Typically, the portfolios contain 100-150 securities. Sector allocations are over/underweight the sector allocations of the benchmark by approximately +/- 2%. The maximum individual holding in any one name is +3% relative to the benchmark.

DCM Large Cap Structured Equity (Product inception date 01/94)

The DCM Large Cap Structured Equity combines structured and fundamental disciplines to systematically identify superior investment opportunities in the large cap market segment. The product seeks to add 100 bps to a client-preferred benchmark, with a tracking error range of 175-225 bps. Typically, the product holds 90-150 securities. The maximum/minimum holding in any one name is +/- 1.25% relative to the benchmark. Sector and industry weightings are +/- 2% relative to the benchmark. The strategy's liquidity limit is measured by less than 5 days' trading volume.

DCM U.S. Equity 130/30 (Product inception date 10/07)

The DCM U.S. Equity 130/30 product combines customized models and a fully integrated structured and fundamental security selection process to construct portfolios set up to deliver a diversified basket of 150 – 200 long and 60 – 90 short risk efficient investment opportunities. On the long side, sector and industry allocations are +/- 2% relative to the benchmark, and the individual position size is +/- 1.5% relative to the benchmark. On the short side, sector and industry allocations are +/- 3% relative to the benchmark, while is the individual position size is +/- 2% relative to the benchmark.

DCM International Equity

DCM International Equity seeks to deliver 600 bps in annual premium to a client's benchmark with a targeted tracking error of 600-800 bps. Typically the product holds 75-100 stocks and achieves benchmark valuation discounts of 30-35%. The product is built to provide economic and geographic diversification with sector, country and currency neutrality within +/- 5% from the benchmark weight. Maximum stock over and underweights are 3%, with a normal range of +/- 3%.

DCM Emerging Markets Equity (Product inception date 10/99)

DCM Emerging Markets Equity seeks to deliver 300 bps in annual premium to a client's benchmark with a targeted tracking error of 500 bps. Typically the product holds 80-100 securities. With sector, industry, country and currency weightings generally +/-5% relative to benchmark weightings, our primary focus (and where we take the most risk) is in stock selection. Stock weightings generally range +/-2% relative to benchmark weightings.

DCM Core Fixed Income (Product inception date 04/99)

DCM Core Fixed Income seeks to achieve a long-term excess return 60 bps over the Lehman Brothers U.S. Aggregate Bond Index with a comparable risk profile. We use disciplined, value-based analysis directed at actively managing portfolio duration, yield curve exposure, sector allocation and security selection. Risk is controlled with proprietary analytics and a systematic compliance process.

DCM Core Plus Fixed Income (Product inception date 04/99)

DCM Core Plus Fixed Income seeks to achieve a long-term excess return 120 bps over the Lehman Brothers U.S. Aggregate Bond Index with a controlled risk profile. We use disciplined, value-based analysis directed at actively managing portfolio duration, yield curve exposure, sector allocation and security selection. We participate opportunistically in global high yield and emerging market bonds. Risk is controlled with proprietary analytics and a systematic compliance process.

DCM Stable Value (Product inception date 01/79)

DCM Stable Value provides a customized investment approach through disciplined and yet flexible portfolio structuring to accommodate multiple investment objectives. Safety, stability, interest rate responsiveness, optimal cash flow and returns that outperform comparable benchmarks are key investment objectives that we seek to optimize. We place great emphasis on risk control through multiple levels of diversification by investment type, issuer, underlying fixed income manager, industry, issue and style. We believe the use of proprietary and external research enhances our risk management and provides value-based investment opportunities that translate to solid returns.

DCM High Yield (Product inception date 01/99)

DCM High Yield seeks to outperform the Lehman Brothers U.S. Corporate High Yield Index by 200 basis points per annum over a 3 to 5 year time horizon, using a disciplined analytical approach to identify and capture high yield value opportunities globally. To consistently capture the best risk-adjusted opportunities, we invest in high yield as well as investment grade fixed income securities including corporates, mortgages, governments and emerging market bonds.

DCM Private Equity (Product inception date 01/89)

DCM has a large presence in the private equity marketplace. We have committed more than $4 billion to over 150 private equity partnerships during the past 15 years. Our size and consistent annual investment give our firm access to most private equity funds and allow us to see tremendous deal flow. In addition, as an investment manager affiliated with a plan sponsor, our plan assets are invested alongside those of our clients. Hence, our interests are clearly aligned. Our clients are gaining the ability to leverage the DCM investment program, and applicable investment related expenses are shared proportionately between participating clients, which may provide a meaningful reduction in expense ratios. Our core strengths include an excellent investment team and a comprehensive due diligence process. Together, we believe these dynamics and PMG's value based approach to private equity investing gives us an edge over other private equity managers.