Investment Philosophy Statement

Asset Allocation

Investment Philosophy Statement

Our investment process is designed to (1) provide a clear line of communication between us,(2) determine how to accommodate your unique requirements and (3) manage your funds.

Starting Point

Prior to structuring your portfolio, two things need to be determined. First, your investment objectives and second, an appropriate level of risk you are comfortable with. This information is prepared and reviewed with you at least annually as your objectives or risk tolerance change, or at any time you deem necessary.

No one can predict market cycles or market timings with 100% accuracy all the time. As a result, this program seeks to manage the risk you are willing to take to accomplish your objectives. This process is used to attempt to control risk (not eliminate it), as there is risk involved in all investments. The primary pledge to you is to manage your portfolio within the guidelines agreed upon.

Asset Allocation

Asset Allocation is the process of attempting to maximize your portfolio objectives while minimizing the associated risks. Your portfolio may consist of three asset classes: equity, fixed-income, and cash alternatives. The program seeks to balance these asset classes in accordance with your investment plan and market valuations. Asset allocations designed by Wells Fargo Advisors are used as a benchmark to guide your allocation.

Creating Wealth

Our belief is that wealth is created through capital appreciation. Over time, we believe stocks, as an asset class, will continue to provide a competitive return to investors over other investment opportunities. While past performance should not be considered an indication of future performance, experience suggests that the most successful investment programs involve a long-term perspective; in order to consistently help you achieve your goals, we believe that investment programs also require a commitment to sound investment disciplines.

Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns.

Asset Allocation

Investment Philosophy Statement

Selection Techniques

This program first looks at industries which have strong fundamentals. Your portfolio may be diversified across several industry groups. Then the program looks for potential opportunities within those sectors. The program follows a value discipline when selecting equities for your portfolio. A value discipline means that the program seeks positions of anticipated growth sectors at relatively low prices. Generally Price Earnings Multiples and capitalization calculations are used to determine when an equity has a "low price;" however, the program is not limited to these criteria alone. The program looks to utilize open-and closed-end funds, as well as certain exchange-traded funds (ETFs) and other select equity positions to satisfy equity allocations.

Fixed Income

The program may use United States Treasury Bills, Notes, Bonds, municipal bonds, corporate bonds, open- and closed-end bond funds, and other liquid debt instruments to satisfy the bond allocations. It may utilize non-rated instruments; however, generally the program does not utilize bonds with a credit rating below Moody's BAA1 or Standard & Poor's BBB+ ratings.


Wells Fargo Advisors provides you with written progress evaluations on a quarterly 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 always have direct access to me should you have any questions or concerns. By maintaining open communication, I believe I may be able to help you avoid any pitfalls created by downward market cycles.

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.

Investments and investment strategies contained are provided for informational purposed only. We would need to review your individual situation before recommending appropriate strategies to you. Stocks offer long-term growth potential, but may fluctuate more and provide less current income than other investments. Fixed income investments may be worth less than original cost upon redemption or maturity. Advisory programs are 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.




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