The Private Investment Management 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 a suitable 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 suited to your current needs and objectives.

The importance of consulting

Your Portfolio Manager will oversee four critical steps in the development of your personal investment plan:

Client profile. Your Portfolio Manager will begin with a comprehensive fact-finding session to develop an understanding of your reasons for investing, the length of time you have to reach your goals and the level of risk you are willing to assume.

Asset allocation. Your Portfolio Manager will calculate the mixture of stocks, bonds and cash alternatives that is right for you. Asset allocation is more than deciding to invest in stocks and bonds; it is balancing this mixture with changing market conditions and the level of volatility that matches your risk tolerance. Part of this step is developing an investment philosophy statement that includes your investment guidelines, portfolio management constraints, risk tolerance and investment objectives. This document will provide a clear written description of your relationship with your Portfolio Manager.

Security selection. After establishing an asset allocation strategy, your Portfolio Manager will determine which securities are right for you. These securities can include cash alternatives, stocks, bonds, mutual funds, closed-end funds, covered options, exchange-traded funds and unit investment trusts.

Portfolio monitoring. Because market and economic conditions are ever-changing, your Portfolio Manager will monitor your investments on an ongoing basis and make changes to your portfolio as necessary. You will receive a comprehensive quarterly report and meet with your Portfolio Manager regularly for a formal review.

Asset allocation does not protect against fluctuating prices and uncertain returns.

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

PIM program summary

  • 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 ??? 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.

FINRA’s BrokerCheck Obtain more information about our firm and its financial professionals
FINRA’s BrokerCheck Obtain more information about our firm and its financial professionals