Today’s investors share common goals,
whether they’re investing on behalf of a family, an endowment, or a corporate retirement plan.
These goals—and the challenges facing plan sponsors, consultants, and investment professionals—have reshaped our principles of asset management.
Build for successful outcomes
It’s about more than beating a benchmark.
“Our work with clients focuses on their main objectives: growing assets, generating income, or preserving wealth. We build investment strategies to manage to these outcomes, individually or collectively. That requires a deep understanding of return drivers and how to target and diversify them.”
Co-CEO, Wells Fargo Asset Management
Successful outcomes depend on a precise combination of elements
Investors have different investment objectives, based on their financial goals. We aim to help investors achieve their investment objectives by focusing on outcomes, such as growing assets, preserving wealth, or generating income.
Helping investors succeed requires high levels of expertise from all investment professionals.
Following these best practices ensures a disciplined and efficient portfolio construction process to reduce the possibility of unintended consequences.
Helping investors achieve their investment objectives depends upon an organizational culture that rewards initiative and expects autonomy with responsibility.
Focusing these strengths in pursuit of investor needs is what can drive successful outcomes.
5 insights for
building successful outcomes
Defend portfolios against uncertainty
Risk is personal. So is the right approach to defend against it.
“Identifying and analyzing intended and unintended investment risk is crucial to achieving outcomes for clients. Our multidimensional risk process covers many factors, including industries, countries, and interest rate environments.”
Co-Head of Portfolio Risk Management and Analytics
4 strategies that may
help defend against uncertainty
Risk management is about finding a balance that is most likely to lead to a successful outcome. That looks very different for an investor seeking to grow assets and another seeking to preserve wealth.
A portfolio that minimizes downside risk will likely sacrifice upside return potential. The optimal trade-off depends on the manager’s market insights and the investor’s goals.
A comprehensive investment risk management process makes both intended and unintended risks transparent to portfolio managers and senior management and, ultimately, to investors.
When markets are stressed, correlations between assets typically increase while liquidity risk and other forms of market risk spike.
Create long-term financial well-being
True prosperity is about a higher level of satisfaction.
“I’m often asked what sustainability has to do with investing. I think it’s really the basis for ensuring long-term successful outcomes—whether that means investing in companies that generate strong returns along with a positive impact, or ensuring an employee’s retirement security, or preserving a family’s wealth across generations.”
Head of Strategic Business Segments
What investors say about
long-term financial well-being
2 key considerations for
long-term financial well-being
Learn more about
Wells Fargo Asset Management
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