Our Approach

PFM Asset Management was founded on the principle of providing sound, independent investment advice that is free from conflicts of interest. PFMAM is an independent investment advisor, whose clients are governmental and not-for-profit organizations, corporations, pension funds and other institutions nationwide.

Since PFMAM's investment philosophy grew from our early focus on managing public sector assets, we understand the vital need to seek safety and liquidity in the investment of public, fiduciary and trusteed funds.

The specific strategy PFMAM employs for each portfolio depends on the type of funds being managed (operating fund, reserve, etc.), current interest rates, permitted investments and liquidity requirements.

Our strategy is to minimize credit risk and manage market risk, since these are the objectives that are generally emphasized by our clients. Hence we make no use of complex derivatives, little use of corporate credits below the AA rating, and measured use of mortgage-backed and asset-backed securities.

Active portfolio management permits us to respond to changes in the markets and changes in liability or draw schedules. This dynamic yet disciplined approach is designed to enhance investment return through prudent trading and portfolio structuring without subjecting a portfolio to unnecessary risk. Active management calls for assets and liabilities to be monitored on a regular basis so that we can take full advantage of opportunities presented by the market.

Because of our legacy of managing public funds, we are quite sensitive to the risk-minimizing investment objectives of our clients. Safety is further enhanced because PFMAM never takes possession of our clients' securities or cash. These assets remain in the custody of each client's custodian bank. PFMAM also carefully monitors relevant legal restrictions that have been or could be imposed on the funds we manage to insure that all such requirements are met.