The Private Investment Management (PIM) Program

Professionally managed portfolios with personal service

The PIM® program is a customized portfolio management program geared toward your specific investment goals. A Financial Advisor who has met stringent criteria 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 basis using his or her individual investment style.

Is this program right for you?

The Private Investment Management (PIM) program is designed for investors who:

  • Want a customized investment program based on an active approach to asset allocation
  • Prefer a portfolio manager who can make investment decisions on their behalf
  • Are seeking long-term portfolio management through diversification while managing underlying investment costs
  • Seek the flexibility to build and maintain a portfolio using a diverse selection of investments
  • Value a high level of professional services and personal attention

The importance of consulting

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

  1. 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.
  2. Asset Allocation – Your Portfolio Manager will calculate the mixture of stocks, bonds, other investment products, 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 preferences, risk tolerance, and investment objectives. This document will provide a general overview of the strategy outlined by your relationship with your Portfolio Manager.
  3. 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, option strategies, exchange-traded funds, and unit investment trusts.
  4. Portfolio Evaluation – Because market and economic conditions are ever-changing, your Portfolio Manager will evaluate your investments on an ongoing basis and make changes to your portfolio as he or she deems necessary. You will receive a comprehensive quarterly report and meet with your Portfolio Manager regularly for a formal review.
*Options involve risk and are not appropriate for all investors. Before opening an option position, please read “Characteristics and Risks of Standardized Options” carefully before investing. This document is available from the Ossewaarde Anderson Sanborn & Peterson Wealth Management Group of Wells Fargo Advisors at (269) 323-4829, 7900 Moorsbridge Road, Portage, MI 49024 or the Options Clearing Corporation, 125 S. Franklin Street, Suite 1200, Chicago, Illinois 60606. Supporting documentation for any claims, comparison, recommendations, statistics or other technical data will be supplied upon request.

Professional, personalized portfolio management

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 asset allocation strategy based on your stated financial objectives. The construction process attempts to maximize returns while minimizing unnecessary risk to the overall portfolio.

Your Portfolio Manager can utilize the resources of 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 can draw upon the research capabilities of Wells Fargo Advisors and its affiliates, as well as those of correspondent research firms to whom Wells Fargo Advisors subscribes.

Features 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 manages your portfolio, monitors the markets, and tracks your performance. As part of this process, your Portfolio Manager can help ensure that your portfolio remains invested in appropriate financial instruments based on 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 can be intimately acquainted with your financial goals and concerns and with whom you have already established a one-on-one working relationship. In short, you're dealing with someone you know and trust. There's no need to spend your time bringing a portfolio manager “up to speed” on your financial goals.

Criteria for Portfolio Managers

The criteria for entry into the PIM certification 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 managers. 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. Less than 10 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
  • 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

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.

There is no assurance that any investment strategy will be successful.

All investing involves risk, including the possible loss of principal.

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.

Asset allocation and diversification are investment methods used to help manage risk. They do not guarantee investment returns or eliminate risk of loss including in a declining market.

Advisory products are not designed for excessively traded or inactive accounts and are not suitable for all clients. You must have a reasonable basis to believe that the specific program, investment manager or strategy you recommend is suitable 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.