Private Investment Management
Private Investment Management: Our Process
Portfolio Designations: The senior partners of TillotsonKenefick are Private Investment Management Portfolio Managers. The PIM program 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 indices 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 eleven 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 analysis to the individual needs of our client drive 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 important to pursue your investment objectives.
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 we believe 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 price 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.
Communication: Wells Fargo Advisors provides you with written progress evaluations on an annual basis and quarterly reports generate electronically for online clients. These evaluations will include a comparison of your portfolio to an index as well as a review of your asset allocation and historical performance. You will also receive a monthly statement and a 1099 statement at the end of the year. In addition to your monthly statements and confirmations, you will receive our team’s quarterly newsletter. Finally, you should feel comfortable contacting us at any time with any questions or concerns.
Portfolio Designations: The senior partners of TillotsonKenefick are Private Investment Management Portfolio Managers. The PIM program 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 indices 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 eleven 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 analysis to the individual needs of our client drive 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 important to pursue your investment objectives.
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 we believe 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 price 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.
Communication: Wells Fargo Advisors provides you with written progress evaluations on an annual basis and quarterly reports generate electronically for online clients. These evaluations will include a comparison of your portfolio to an index as well as a review of your asset allocation and historical performance. You will also receive a monthly statement and a 1099 statement at the end of the year. In addition to your monthly statements and confirmations, you will receive our team’s quarterly newsletter. Finally, you should feel comfortable contacting us at any time with any questions or concerns.
As each Private Investment Management (PIM®) program account is individually managed, construction and ongoing management of portfolios may vary from those discussed in this Philosophy Statement. Past performance is not indicative of future results, and there is no assurance that any investment strategy will be successful. All investing involves risk, including the possible loss of principal. Stock values may fluctuate in response to general economic and market conditions, the prospects of individual companies, and industry sectors. Bonds are subject to market, interest rate, price, credit/default, call, liquidity, inflation and other risks. Prices tend to be inversely affected by changes in interest rates. The PIM program is not designed for excessively traded or inactive accounts and are not suitable for all investors. Please carefully review the Wells Fargo Advisors advisory disclosure document for a full description of our services. The minimum account size for this program is $50,000. Wells Fargo Investment Institute, Inc. is a registered investment adviser and wholly-owned subsidiary of Wells Fargo Bank, N.A., a bank affiliate of Wells Fargo & Company.