Portfolio Management Alternatives

“Diversification and high quality investments lay the foundation of the portfolios that we manage”.
– Peter Prentis

Asset Allocation

The future growth and income potential of a portfolio, as well as exposure to potential risks are determined by portfolio Asset Allocation. This allocation between Cash, Bonds and Stocks and Alternative Investments must be keyed to the specific needs of each individual client.

The Value of Asset Allocation

  • Cash Management – Cash (money market funds, short term maturities) may provide liquidity for living expenses and short term needs, as well as a cushion for unexpected events. Prudently organizing and managing cash balances and cash-flow can provide liquidity and help improve returns.
  • Fixed Income – The Bond allocation may provide cash flow and stability. Other than income, an individual bond’s primary appeal is that it has a maturity; a point at which your investment is paid back to you. A disciplined distribution of maturities may potentially help to yield greater returns and reduce risk. We consider a wide-range of fixed income investments to help meet your needs, including tax-advantaged municipal bonds, taxable bonds, preferred stocks and CDs.
  • The allocation to cash and bonds should be designed to help provide the liquidity and cash flow to withstand the inherent volatility of the equity markets.
  • Stocks- Equity ownership in individual companies has historically provided significant growth potential as well as dividend income over the long term. Our belief is that a successful equity allocation requires diversification, professional management, discipline and time.
  • Alternative Investments - Alternative investments may help to provide additional appreciation and diversification potential for qualified/accredited clients.*

Management Alternatives

From comprehensive planning to individual equity or fixed income purchases, our clients enjoy a wide range of investment management options. Instead of dictating the structure of our relationship with you, we believe your objectives, time horizon, investment experience and assets determine the most appropriate arrangement. We will assist you in selecting the most suitable approach.

  • Private Investment Management1
    Peter Prentis, CFP® and Michael Knuff, CFP®, CIMA® are Private Investment Management (PIM) portfolio managers: A key distinction here is that we are not just relationship managers (raising funds for our firm, or others, to manage). We are portfolio managers and manage client monies on a discretionary basis. Private Investment Management is a highly personalized investment management alternative. Together, we establish your asset allocation and investment parameters and we then manage your monies accordingly.
  • Asset Advisor2
    For investors who wish to have more regular input on their portfolio choices, Asset Advisor is a fee-based comprehensive investment advisory program. While you ultimately make the specific investment decisions, we can provide research, planning, asset allocation, investment selection and ongoing guidance, as needed.
  • Managed Account Consulting Service3
    Alternatively, there are occasions where it may be appropriate to hire independent investment managers. With assistance of the Advisory Services Group of Wells Fargo Advisors, we can select independent investment managers to meet your specific investment management objectives

1 The PIM program is not designed for excessively traded or inactive accounts, and may not be 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.

2 The Asset Advisor program is not designed for excessively traded or inactive accounts, and may not be 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.

3 Since no one manager / investment program is suitable for all types of investors, this information is provided for informational purposes only. We need to review your investment objectives, risk tolerance and liquidity needs before we introduce suitable managers / investment programs to you.

Open Architecture / Abundant Resources

Our firm provides a unique open-architecture platform that allows us to design a disciplined, pragmatic and cost-effective approach to help you achieve your goals. As an independent team within Wells Fargo Advisors, the Prentis Wealth Management Group provides access to world-class resources with no obligation to favor one investment product or service over another. To diversify the management of client assets, we have access to thousands of money managers and mutual funds. This is in sharp contrast to the many firms that only allow access to their own analysts, proprietary money managers and proprietary mutual funds.

Fee-Based Compensation

We offer a fee-based compensation platform with no cost for trading**. In this way, our compensation is based on the growth of assets rather than the velocity with which those assets are traded. However, we are flexible in our approach and do understand that there are times that fee-based compensation may not be the most appropriate. Therefore, traditional commission-based compensation is also available.

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

Past performance is not a guarantee of future results.

Diversification does not guarantee profit or protect against loss in declining markets.

Dividends are not guaranteed and are subject to change or elimination.

Investing in fixed income securities involves certain risks such as market risk if sold prior to maturity and credit risk especially if investing in high yield bonds, which have lower ratings and are subject to greater volatility. All fixed income investments may be worth less than original cost upon redemption or maturity.

*Alternative investments carry specific investor qualifications which can include high income and net-worth requirements as well as relatively high investment minimums. They are complex investment vehicles which generally have high costs and substantial risks. The high expenses often associated with these investments must be offset by trading profits and other income. They tend to be more volatile than other types of investments and present an increased risk of investment loss. There may also be a lack of transparency as to the underlying assets. Alternative investments are subject to fewer regulatory requirements than mutual funds and other registered investment company products and thus may offer investors fewer legal protections than they would have with more traditional investments. Additionally, there may be no secondary market for alternative investment interests and transferability may be limited or even prohibited. Other risks may apply as well, depending on the specific investment product. Please carefully review the Private Placement Memorandum or other offering documents for complete information regarding terms, including all applicable fees, as well as risks and other factors you should consider before investing.

**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. Additional fees may apply in certain circumstances.