Our wealth management process hinges on successful collaboration with each other and with clients. Our process is designed to establish and deepen relationships while implementing strong investment plans built based on decades of wealth management experience.
We engage in deep conversations about your goals and wishes – as well as the challenges you face – to get a better understanding of what you’re trying to accomplish and how we may be able to help. The more we know about you, the better we can determine the appropriate path for pursuing your goals. Understanding your life, your priorities, and your comfort with risk will help us make the right recommendations for you.
Next, we recommend strategies for managing three core aspects of your financial life: liquidity, longevity, and legacy.
In true collaboration with you, we map out a comprehensive range of solutions to address both sides of your balance sheet to help you pursue your goals at every life stage.
With relationships established and plans put in motion, we continually collaborate with you to make adjustments (when necessary) as you and your family’s lives, financial circumstances, and goals change.
The Envision® Process
Wells Fargo Advisors' Envision process offers you an effective way to identify your highest-priority goals and develop an investment plan designed to provide you with the wealth you need to live your life the way you want. Instead of tracking your portfolio’s performance against a standardized index, such as the S&P 500, you can monitor your progress toward achieving your life goals on your own target zone. It includes:
- Identifying what is important in your life and helping you prioritize your financial goals
- Coordinating and integrating cohesive solutions for all your financial affairs
- Creating a well-balanced, diversified portfolio based on your objectives, risk tolerance, and investment time horizon
- Reviewing changes and results together, and adjusting your investment strategy as necessary based on your situation
If your life goals change with time or if fluctuating market conditions alter your plan's results, the Envision process offers the flexibility to make adjustments as necessary.
Research shows that among surveyed Envision plan holders:
98 percentagree their plan is personally tailored to meet their unique financial goals |
96 percentagree having an Envision plan helps them feel better prepared for retirement |
92 percentagree their plan helps them talk to their Financial Advisors about significant life events |
Results are based on a survey conducted online by Versta Research from June 5-June 22, 2019 among 457 Envision clients with Financial Advisor relationships. Results are not representative of other client experiences or indicative of future success or performance. The Envision process is a brokerage service provided by Wells Fargo Advisors.
Diversification is an investment method used to help manage risk. It does not guarantee investment returns or eliminate risk of loss including in a declining market.
IMPORTANT: The projections or other information generated by Envision regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. Results may vary with each use and over time.
Envision methodology: Based on accepted statistical methods, the Envision tool uses a simulation model to test your Ideal, Acceptable and Recommended Investment Plans. The simulation model uses assumptions about inflation, financial market returns and the relationships among these variables. These assumptions were derived from analysis of historical data. Using Monte Carlo simulation, the Envision tool simulates 1,000 different potential outcomes over a lifetime of investing varying historical risk, return, and correlation amongst the assets. Some of these scenarios will assume strong financial market returns, similar to the best periods of history for investors. Others will be similar to the worst periods in investing history. Most scenarios will fall somewhere in between. Elements of the Envision presentations and simulation results are under license from Wealthcare Capital Management LLC. © 2003-2021 Wealthcare Capital Management LLC. All Rights Reserved. Wealthcare Capital Management LLC is a separate entity and is not directly affiliated with Wells Fargo Advisors.
The Private Investment Management (PIM) Program
The PIM program is a customized portfolio management program geared toward your specific investment goals. A Financial Advisor who has met stringent criteria based on experience and expertise acts as your personal portfolio manager.
Your Financial Advisor guides you through a consulting process to ascertain your investment goals and risk parameters and then uses asset allocation to construct a portfolio of various securities chosen to help meet your financial objectives. As your Portfolio Manager, he or she actively manages your portfolio on an ongoing, discretionary basis using his or her individual investment style.
Professional, Personalized Portfolio Management
As a “discretionary” account, your investment account through the PIM program is structured to let your Portfolio Manager make investment decisions on your behalf based on your risk tolerance and financial objectives. When selecting the securities for your portfolio, your Portfolio Manager conducts a detailed analysis of companies, industries and overall economic conditions. In managing the account, your Portfolio Manager constructs an appropriate asset allocation strategy based on his or her personal investment style. The construction process attempts to maximize returns while minimizing risk to the overall portfolio.
Your Portfolio Manager is backed by an array of research analysts who have the skills and tools to help you meet your financial goals. When constructing your portfolio, your Portfolio Manager draws upon Wells Fargo Advisors’ internal research capabilities as well as those of external equity research firms whose services Wells Fargo Advisors subscribes to.
Benefits of a Managed Portfolio
By appointing experienced investment professionals to provide you with sound investment advice, manage your portfolio and rebalance your investment mix when necessary, you free yourself from the time-consuming task of choosing and actively monitoring your investments. After allocating your investments, your Portfolio Manager continually manages your portfolio, monitors the markets and manages performance. As part of this process, your Portfolio Manager ensures that your portfolio remains invested in financial instruments most appropriate for your current needs and objectives.
The PIM program gives you the added benefit of your Portfolio Manager’s personalized service. By having your Financial Advisor act as your Portfolio Manager, you have the advantage of working with someone who is intimately acquainted with your financial goals and concerns and with whom you have already established a one-on-one working relationship. In short, you are dealing with someone you know and trust. There is no need to spend your valuable time bringing a portfolio manager “up to speed” on your financial goals.
Criteria for PIM Portfolio Managers
The criteria for entry into the PIM program are more stringent than most other programs Wells Fargo Advisors offers. The full process to obtain the PIM designation can take 60 days to complete and includes a three-step process. The first step is meeting basic eligibility requirements, which include a minimum of two years' experience as a portfolio manager, five years of industry experience, successful completion of various securities exams, and approval of branch and regional superiors. Only then can a Financial Advisor complete an application, which includes questions covering investment style, strategy, philosophy and research methods. Once approved, the Financial Advisor must complete advanced training, including an ethics exam, proxy exam and an advanced 40-hour portfolio management training course. Only five percent of the firm’s Financial Advisors have met the criteria to act as PIM Portfolio Managers.
A Summary of the PIM Program
- Ability to hold a wide range of asset types within one portfolio, eliminating the need for multiple accounts
- Top-quality portfolio management expertise and personal services that were once available only to high-net-worth clients
- Access to Wells Fargo Advisors’ qualified and experienced Financial Advisors to act as your Portfolio Manager
- One fee based on the size of your account rather than traditional trade-based commission charges
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 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.
Advisory products are not designed for excessively traded or inactive accounts and are not appropriate for all clients. You must have a reasonable basis to believe that the specific program, investment manager or strategy you recommend is appropriate for the particular client based on that client’s investment profile, which takes into account, among other things, the client’s investment objectives, investment experience, time horizon, liquidity needs and risk tolerance. You and your client should carefully review the Wells Fargo Advisory Disclosure Document associated with the program for a full description of our services, including fees and expenses and those fees or expenses that may be excluded. The minimum account size for these programs is between $25,000 and $2,000,000 depending on the program or strategy selected. If the program involves mutual funds or exchange-traded funds, your clients should consider that product’s investment objectives, risks, charges and expenses carefully before investing. Prior to recommending and opening advisory program accounts, Financial Advisors must be properly registered in their place of business state.