FundSource® Mutual Fund Advisory

Professionally-managed, diversified mutual fund portfolios

The FundSource® program offers investors access to professionally managed portfolios of mutual funds. Portfolios are constructed from a recommended list of more than 240 mutual funds selected by Wells Fargo Advisors' Manager Strategy Group. Mutual funds on the recommended list have been carefully selected based on an extensive evaluation of the fund's management team, investment process and performance. The cornerstone of the portfolio construction process is asset allocation guidance. Optimal Blend portfolios are constructed to provide investors access to a broad range investment strategies designed for various investor risk profiles. Your Financial Advisor is available to help you determine the most appropriate Optimal Blend portfolio strategy that best fits your investment goals and tolerance for risk. FundSource® offers more than 40 predefined Optimal Blend portfolios, or investors may customize allocations of funds using research recommended funds.

A sophisticated approach to mutual fund investing

Many investors own mutual funds as a way to pursue their investment goals. Too often though, they end up with too many or too few, ones that don't work well together or ones that don't make sense given their circumstances. FundSource® may be an answer to those problems. With FundSource®, you get access to carefully constructed blends of mutual funds based on the analysis and advice of investment professionals. It is a program designed with the types of services and features previously available primarily to institutional and ultra-high-net-worth investors. FundSource® provides a framework for establishing an investment strategy that takes into account your financial goals, tolerance for risk and your willingness to make adjustments as your life changes. Your Financial Advisor will ask questions and take you through a process to create an investment plan tailored to your needs.

FundSource® asset allocation models

Moving left to right, this chart shows FundSource® allocation recommendations with increasing levels of portfolio risk and correspondingly higher levels of potential return. Investors with similar invesment objectives may have different risk tolerances, therefore our asset allocation models provide allocation recommendations for investors with degrees of risk tolerance.

Fund Source asset allocation models

 

The mutual funds in the FundSource program are available by prospectus only. Please consider the investment objectives, risk, charges and expenses carefully before investing. The prospectuses, which contain this and other information, can be obtained by calling your Financial Advisor.  Read it carefully before you invest.

 

Asset Allocation and diversification do not guarantee a profit or protect against loss in a declining market. All investing involves risk including the possible loss of principal. There is no assurance any investment strategy will be successful.

 

A fund's equity investments are subject to market risk which means that the value of its investments may fluctuate in response to general economic and market conditions, the prospects of individual companies, and industry sectors.

 

Bond prices fluctuate inversely to changes in interest rates. Therefore, a general rise in interest rates can result in the decline of the value of your investment. 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.

 

Bank loans have speculative characteristics including the risk of non-payment of principal and interest. Other risks include insolvency, collateral impairment, illiquidity and the risk of bankruptcy. Exposure to the commodities markets may subject an investment to greater share price volatility than an investment in traditional equity or debt securities. Investments in commodities may be affected by changes in overall market movements, commodity index volatility, changes in interest rates or factors affecting a particular industry or commodity. Products that invest in commodities may employ more complex strategies which may expose investors to additional risks. Investing in foreign securities presents certain risks not associated with domestic investments, such as currency fluctuation, political and economic instability, and different accounting standards. This may result in greater share price volatility. These risks are heightened in emerging markets. Mutual funds that invest using alternative strategies are more complex investment vehicles which generally have higher costs and substantial risks. They tend to be more volatile than other types of mutual funds and present an increased risk of investment loss. Relative to broad, long-only traditional asset class mutual funds, alternative mutual funds may employ more complex strategies, investment, and portfolio structures. In doing so, some of these strategies may expose investors to additional risks, including but not limited to the following: short selling, leverage risk, counterparty risk, liquidity risk, commodity price volatility risk, and/or managed futures roll yield risk.

 

Investment in infrastructure companies expose an investment to potentially adverse economic, regulatory, political and other changes affecting such companies. Infrastructure companies may also be subject to various other risks, including, governmental regulations, high interest costs associated with capital construction programs, costs associated with compiance and changes in environmental regulation, economic slowdown and surplus capacity, competition from other providers of services and other factors. An investment that is concentrated in energy related MLPs is subject to the risks of investing in MLPs and the energy sector. MLPs are subject to numerous significant risks such as volatility associated with the use of leverage; volatitlity of the commodities markets; market risks; supply and demand; natural and man-made catastrophes; competition; liquidity; market price discount from NAV and other material risks. A downturn in the energy sector of the economy, adverse political, legislative or regulatory developments or other events could have a larger impact on a protfolio that concentrates in the energy sector. There are special risks associated with an investment in real estate, including credit risk, interest rate fluctuations and the impact of varied economic conditions. The prices of small- and mid-company stocks are generally more volatile than large company stocks. They often involve higher risks because smaller companies may lack the management expertise, financial resources, product diversification and competitive strengths to endure adverse economic conditions.

 

The fees for the FundSource program include advisory services, performance measurement, transaction costs, custody services and trading. The fees do not cover the fees and expense of the underlying funds and customary brokerage charges may apply to non-program assets. The standard fee schedule, which is negotiable, is based on account size and an assumed active equity portfolio. There is a minimum quarterly client fee requirement of $75 to maintain this type of account. Please carefully review the Wells Fargo Advisors advisory disclosure document for a full description of our services, including fees and expenses. Advisory accounts are not designed for excessively traded or inactive accounts and may not be suitable for all investors. The minimum account size for this program is $25,000.

 

Take the first step to talk about customizing your future and planning ahead by calling Clarke Investment Management at (847) 381-7300 or email for a timely response and sage Wall Street advice with a Main Street perspective.