PIM Investment Policy

Portfolio Designations: The senior partners of TillotsonKenefick are certified in the Private Investment Management 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 Advisors and our correspondent research. We then utilize consensus estimates for the major domestic indicies to outline 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 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 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: Portfolios can be managed on a commission basis by transaction or an annual fee basis, whichever is most cost effective for the portfolio style and client.   Minimum fees do apply and commission/fee schedules are available during our initial client consultation.

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. Advisory accounts are not designed for excessively traded or inactive accounts, and may not be suitable 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 does not provide legal or tax advice.

Information has been obtained from sources considered reliable, but its accuracy and completeness are not guaranteed.