Customized Portfolio Strategies

The difficult market conditions of recent years have reiterated the need for careful investment planning and diversified portfolio strategies. Recent experience has also reminded us that markets sometimes go to extremes, and that disciplined judgment is a necessary part of any investment plan. We seek to provide portfolio strategies that help ensure that these lessons are applied to the management of your money, and our firm’s third party research correspondents work toward pursuing your investment success.

This portfolio management process differs from most investment management programs by allowing us – your portfolio managers – the flexibility to adjust our portfolio management without the constraints or restrictions that effect most other turn-key investment management programs.

Our best guidance on strategic asset allocation is combined with our investment insight to determine the portfolio allocation. These portfolios are designed to deliver customized guidance on strategic and tactical asset allocation. We then apply our investment analysis talents to the selection of what we believe to be the best possible investments to meet your objectives. The result is a portfolio which aligns your investment goals to your risk tolerance, but that has the potential to capitalize on the continuous changes in the public securities marketplace.

These portfolios are designed to meet investor needs for diversified investment strategies with defined risk objectives. We build your portfolio around a targeted strategic asset allocation, with explicit ideas for how much of a client’s portfolio should be in domestic and international equities, fixed income, etc. These targeted allocations are based upon an analysis of long-term risks and returns for various asset classes. The strategic allocation targets for these portfolios provide a benchmark against which these portfolios are managed. However, these strategic targets are based upon historical long-term averages, and we recognize the world is not always average. For example, when interest rates are significantly lower than their long-term averages, we may decide that our investors should have a lower-than-average weighting in bonds. This flexibility to depart from the target allows us to capitalize on periods of over and under valuation within the marketplace. To help control risk, however, we will generally keep our sector weightings within plus or minus 10% of the long-term strategic plan.


These portfolio strategies are appropriate for investors seeking customized investment management while maintaining risk management through asset allocation.

 
Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns.
Please refer to important information on the reverse side of this page
The PIM program is not designed for excessively traded or inactive accounts, and may not be appropriate 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 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 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 reflexive or reactive decisions during downwards market cycles.
Steven Berman acts as the Private Investment Program(PIM) Portfolio Manager, and is authorized to make all discretionary decisions for advisory program accounts.
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.
The value style of investing cannot guarantee appreciation in the market value of an investment's holdings. The return and principal value of stocks fluctuate with changes in market conditions. The value type of investing tends to shift in and out of favor.
Investments and investment strategies contained herein are provided for informational purposes only. We would need to review your individual situation before recommending appropriate strategies to you. All investing involves risk, including the possible loss of principal. Stocks offer long-term growth potential, but may fluctuate more and provide less current income than other investments.
The High Quality Dividend Growth portfolio invests in companies which have increased their dividends consistently and are expected to increase their dividends in the future.  We believe this strategy over time will provide a competitive return when compared to the portfolio’s risk.

A Rising Dividend Stream may:
  1. Offset inflation’s toll on spending power
  2. Support a stock’s price in declining markets
  3. Reduce volatility during periods of rising interest rates and market yields
The Dividend Growth Process Considers the Following Evaluations:
  1. Industry leaders exhibiting market share, profitability and growth relative to peers, and pricing power.
  2. Determine prospects for dividend growth such as dividend yield, payout ratio, earnings, and free cash flow growth
  3. Companies supported by mature, defensive business models while evaluating volatility across earnings, margins, and share price. Another consideration is operating history through economic cycles
  4. Finally, balance sheet strength exhibited by credit rating and debt level
Characteristics of the Portfolio: 
  1. Companies are carefully selected based on their potential for consistent annual dividend growth
  2. Long-term buy-and-hold philosophy allows the process to avoid short- term volatility
  3. Removal when no longer comfortable with dividend growth potential, a dividend reduction or elimination
Defensive Features of the Portfolio:
  1. Rising dividends can help reduce portfolio volatility and can act as a buffer against a declining stock market
  2. Mature companies selling products and services that tend to hold up well in difficult economic environments

These portfolios are managed on a Fiduciary basis in the Private Investment Mangement program.
Strategies to help enhance the total return potential of your fixed-income investments require a focus on both the complex intricacies of fixed-income markets and the specific details of your investment portfolios and goals. It requires advisory and investment management services administered in a strategic and professional manner.

For over 25 years, we have sought to effectively navigate the fixed-income markets and develop the strategies and experience in pursuit of investment success for our clients. We provide portfolio management services designed to help you achieve your goals for income and long-term capital growth within the fixed-income allocation of your portfolio.

Customized Fixed Income Portfolios are designed for investors who:
  • Want an investment strategy that is tailored to meet their unique needs
  • Value the experience of a professional fixed-income team when making investment decisions
  • Appreciate a strategy that can adapt to their changing needs and to changing market conditions

Portfolio Development:
  • Seeking opportunities through market knowledge, credit research, issue selection, and trade execution
  • Your portfolio is reevaluated on an ongoing basis in an attempt to take advantage of current market opportunities and ensure that it continues to reflect your investment objectives
  • We use a combination of quantitative screening with qualitative analysis to identify issuers for inclusion
  • We utilize a variety of investment vehicles in pursuit of our goals. These include direct ownership of individual bonds and preferred securities, exchange traded funds(ETF’s) and mutual funds
  • Preferred Securities are a significant component of our taxable fixed income allocation. Preferred securities encompass a variety of structures available to investors. Preferreds offer potential benefits for both income-oriented investors and issuers. For an investor, preferreds generally offer increased income due to their capital structure and liquidity premiums over comparable investments. For issuers, they help to strengthen their balance sheets and improve regulatory capital. We ensure there is no undue concentration in a specific issuer.


These portfolios are managed on a Fiduciary basis in the Private Investment Mangement program.
Fiduciary Fee Tiers

  • $500,000 to $1,000,000                0.98%
  • $1,000,000 to $2,000,000             0.75%
  • $2,000,000 to $10,000,000           0.50%
  • $10,000,000                                 0.25%
 

Independent, Cost Effective, and Unbiased
Pharos Financial Advisors

Investment and Insurance Products are:

  • Not Insured by the FDIC or Any Federal Government Agency
  • Not a Deposit or Other Obligation of, or Guaranteed by, the Bank or Any Bank Affiliate
  • Subject to Investment Risks, Including Possible Loss of the Principal Amount Invested

This information is intended for use only by residents of (AL, AZ, CA, CO, CT, DC, FL, GA, IL, IN, KY, MA, MD, MI, MN, NC, NJ, NY, OH, PA, RI, SC, TN, TX, UT, VA, VT, WV). Securities-related services may not be provided to individuals residing in any state not listed above. Please consult with the FA as s/he may not be registered in all states.

For parties residing outside of the U.S., this information is: (i) provided for informational purposes only, (ii) not and should not be construed in any manner as an offer to participate in any investment or to buy or sell any securities or related financial instruments, and (iii) not and should not be construed in any manner as a public offering of any financial services, securities or related financial instruments. Products and services listed may not be available, or may have restrictions, depending on client country of residence.

Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN). Wells Fargo Advisors is the trade name used by Wells Fargo Clearing Services, LLC and WFAFN, Members SIPC, separate registered broker-dealers and non-bank affiliates of Wells Fargo & Company. Any other referenced entity is a separate entity from WFAFN.

Insurance products are offered through nonbank insurance agency affiliates of Wells Fargo & Company and are underwritten by unaffiliated insurance companies.

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