Dividend Income Strategy: The objective of this portfolio is capital appreciation and current income. The manager seeks to achieve this objective by favoring ownership of high quality, large-capitalization, dividend-paying stocks with attractive valuations. Our investment selection uses a rules-based process to help select companies offering good value according to several widely accepted value metrics. Stocks in this portfolio generally have historical yields greater than or equal to those of the S&P500.
Balanced Dividend Income Strategy: This portfolio uses the same stock picking strategy as the Dividend Income Portfolio and has the added component of a bond ladder composed of fixed-income Exchange Traded Funds. (ETFs). The bond ladder can help protect against market sell-offs and can provide a source of stable income for people with a need for cash in the foreseeable future for IRA required minimum withdrawals or any other need.
Rising Dividend Strategy: The portfolio follows a total return strategy and invests in stocks that have the potential to rise in price and make larger dividend payments in the future. Rising prices provide the opportunity to realize capital appreciation, which is one part of a stock’s total return. Dividends provide an income component, adding a second part to a stock’s total return. Price appreciation and dividend payments combined make up the total realized return on an investment, and each part can contribute to increasing it. Stocks selected for the portfolio must possess good business models, strong balance sheets, growth in sales and earnings, positive free cash flow, attractive valuations and a history of rising dividend payments.
Balanced Rising Dividend Strategy: This portfolio uses the same stock picking strategy as the Rising Dividends Portfolio and has the added component of a bond ladder composed of fixed-income Exchange Traded Funds (ETFs). The bond ladder can help protect against market sell-offs and can provide a source of stable income for people with a need for cash in the foreseeable future for IRA required minimum withdrawals or any other need.
Alternative Investment Strategy: This portfolio uses a highly specialized methodology to select underlying long equity exchange-traded funds (ETFs), exchange-traded notes (ETNs), and equity securities of diversified non-correlating market sectors and averages to seek to maximize long-term returns for a given level of risk. The ETFs included in the portfolio may include exposure to large-, small- and mid-capitalization stocks, international securities, commodities, as well as other asset classes. Conversely, the manager may utilize defensive positioning during contractions, including short-term fixed income securities to possible cash positions.
Emerging Market Strategy: The objective of this portfolio is long-term growth of capital. The manager intends to invest the portfolio in primarily emerging market country specific ETFs, based on the relative strength of the price increase of the various portfolio positions, when compared to other country ETFs that are eligible for inclusion in the portfolio. Foreign markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. Currency exchange rates can also be a factor with the returns of international stocks.
International Strategy: The International portfolio attempts to fully participate in the developed international equity markets by carefully selecting country Exchange Traded Funds (ETFs) we view as having above average potential and stronger than average positive momentum. Foreign markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. Currency exchange rates can also be a factor with the returns of international stocks.
Socially Responsible Investing Strategy: This is an investment strategy which incorporates environmental, social, and governance (ESG) factors into the investment process. The portfolio manager begins the selection process with a list of 400 US companies included in the MSCI KLD 400 Social Index, which is an index comprised of companies with strong sustainability profiles and excludes companies whose products do not have negative social or environmental impacts. The portfolio may contain large-, mid-, and small cap companies that are selected based on certain growth and value metrics.
Millennial Growth Strategy: The objective this strategy is long-term capital appreciation by investing in a diversified portfolio of growth sectors. The manager seeks to achieve this objective by investing in the common stocks of some of America’s most well-known growth companies. The manager attempts to identify companies that are expected to grow their sales, earnings and stock prices faster than the overall market. The PIM portfolio manager will employ customized quantitative strategies to develop portfolios the manager feels are comprised of attractively valued companies. In addition, the manager looks for companies experiencing some or all of the following: high sales growth, high or improving returns on assets and equity, and a strong balance sheet. The manager expects concentration in growth stocks of companies in the finance, health care, retail, and technology sectors. This portfolio, by itself, is not a balanced investment plan and may involve additional risk due to its narrow focus.
Earnings Acceleration Strategy: The objective of this portfolio is the growth of capital. The manager invests in companies of any size that are believed to be experiencing changing, favorable earnings increases based on analysts’ upgrades of earnings projections. A company must be covered by at least four analysts to qualify for additional consideration. The portfolio is rebalanced monthly which can result in high turnover of positions and possible larger tax consequences for assets held outside an IRA or other qualified plans.
Rebounding Value Strategy: This strategy seeks out stocks with low valuations, strong price momentum and underlying quality traits. Put another way, the manager is seeking out stocks trading at discounted valuations that have traits associated with more upside than downside and are recognized by others as bargains. When used together, value and momentum are two of the most persistent investment factors that have been shown to lead to good performance. The quality overlay helps filter out stocks with underlying fundamental weaknesses. Diversification among different economic sectors and company sizes helps ensure a portfolio of broad based holdings.
All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful.
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.
Investing in foreign securities presents certain risks not associated with domestic investments, such as currency fluctuation, political and economic instability, and different accounting standards. This may result in greater share price volatility.
The prices of small company stocks are generally more volatile than large company stocks. The prices of small company stocks are generally more volatile than large company stocks. They often involve higher risks because smaller companies may lack the management expertise, financial resources, product diversification and competitive strengths to endure adverse economic conditions.
The MSCI KLD 400 Social Index: a capitalization weighted index of 400 US securities that provides exposure to companies with outstanding Environmental, Social and Governance (ESG) ratings and excludes companies whose products have negative social or environmental impacts.
S&P 500 Index: consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market value weighted index with each stock's weight in the Index proportionate to its market value.
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. Bond laddering does not assure a profit or protect against loss in a declining market.
Mutual Funds and Exchange Traded Funds are subject to risks similar to those of stocks. Investment returns may fluctuate and are subject to market volatility, so that an investor's shares, when redeemed or sold, may be worth more or less than their original cost.
Exchange-Traded Notes (ETNs) are not funds, are not registered under the Investment Company Act of 1940, and are not subject to the same regulatory requirements as mutual funds, closed-end funds or exchange-traded funds. ETNs are senior, unsecured debt obligations issued by a financial institution designed to track the total return of an underlying index, minus investor fees, and have no principal protection. The creditworthiness of an ETN is based on the creditworthiness of the issuer. ETNs are listed on an exchange and trade in the secondary market. There is no guarantee a trading market will develop or continue.
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 accounts 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.
Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN), Member SIPC, a registered broker-dealer and a separate non-bank affiliate of Wells Fargo & Company. Agnew Wealth Management, LLC is a separate entity from WFAFN. CAR-0518-03762