PIM Investment Philosophy

Portfolio Designations: The senior partners, Marcia Tillotson and Joy Kenefick, Managing Director – Investments, Private Wealth Financial Advisors, and PIM Portfolio Managers of TillotsonKenefick Private Wealth Management of Wells Fargo Advisors are certified in the Private Investment Management (PIM) advisory program. The PIM certification recognizes financial advisors with prior investment management experience through extensive study and testing and provides for discretionary trading within investment portfolios.

Portfolio Construction: We are top-down money managers.  We begin with an informed opinion about the prospects for our global and domestic economies based on Wells Fargo Investment institute and our correspondent research. We then utilize consensus estimates for the major domestic indicies to outline what we believe are the best, worst and likely growth prospects for the calendar year.  Equally important to the equity numbers is a forecast for interest rates. Taking these numbers, we devise an over-weight, market-weight or neutral-weight stance to the nine major sectors of the economy. Using similar methods and reasoning, we identify taxable and tax-free fixed income securities.  Finally, we make security selections that we believe represent the greatest opportunity for growth and income. Marrying our market forecast to the individual needs of our client drives the percentage of stocks, bonds and cash alternatives that will comprise your portfolio.  While we remain flexible to the changing opportunities in the market from year to year, a long-term commitment to our strategy and discipline is necessary as we seek to grow your net worth.

Security Selection: Fundamental analysis of a security seeks to understand the prospects for a given company.  We use this type of analysis to determine what we would like to own.  Knowing what their core business is, who is running the company, past performance, future prospects as well as the metrics of PE ratios, book value, dividend yield and the like are essential to determining our affinity for a particular equity security.  After screening for stocks that meet the strong fundamental characteristics we are looking for, we further scrutinize these securities for their technical attributes.  Technical analysis seeks to understand whether a stock is likely to appreciate or decline.  We use this methodology to determine when we want to purchase or sell a security.  Is the stock relative to its own history, the other stocks in its sector and the market in general; out-performing, performing in-line or under-performing?  Fixed income securities are purchased based on their rating, coupon and yield-to-maturity.  We overlay this information against the interest rate cycle to ascertain when to purchase or sell.

Fees for the PIM program include Advisory services, performance measurement, transaction costs, custody services and trading. Fees are based on the assets in the account and are assessed quarterly. There is a minimum fee of $250 per calendar quarter to maintain this type of account. The fees do not cover the fees and expenses of any underlying packaged product used in your portfolio. Advisory programs are not designed for excessively traded or inactive accounts and are not appropriate for all investors. During periods of lower trading activity, your costs might be lower if our compensation was based on commissions. Please carefully review the Wells Fargo Advisors advisory disclosure document for a full description of our services, including fees and expenses. The minimum account size for this program is $50,000

Wells Fargo Advisors provides you with written progress evaluations on a periodic basis. These evaluations will include a comparison of your portfolio to an index as well as a review of your asset allocation and historical performance. In addition, you will receive a monthly statement and a 1099 statement at the end of the year. You will have direct access to me should you have any questions or concerns. By maintaining open communication, I believe we may be able to help avoid reflexive or reactive decisions during downward market cycles

Technical analysis is based on the study of historical price movements and past trend patterns. There is no assurance that these movements or trends can or will be duplicated in the future.

Investments and investment strategies contained herein are provided for informational purposes only. We would need to review your individual situation before recommending appropriate strategies to you. All investing involves risk, including the possible loss of principal.

Stocks offer long-term growth potential, but may fluctuate more and provide less current income than other investments. Investing in fixed income securities involves certain risks such as market risk if sold prior to maturity and credit risk especially if investing in high yield bonds, which have lower ratings and are subject to greater volatility. All fixed income investments may be worth less than original cost upon redemption or maturity. Bond prices fluctuate inversely to changes in interest rates. Therefore, a general rise in interest rates can result in the decline of the value of your investment. Income from municipal securities is generally free from federal taxes and state taxes for residents of the issuing state. While the interest income is tax-free, capital gains, if any, will be subject to taxes. Income for some investors may be subject to the federal Alternative Minimum Tax (AMT).

Wells Fargo Advisors does not provide legal or tax advice.