Managed Accounts

Using a strategic method of asset allocation, Wachovia Securities offers fee-based and portfolio management. Products are designed to conform to different goals, time horizons, income requirements, and overall tolerance for risk, and attempt to correlate to market performance. They all leverage the advice of a Wachovia Securities Financial Advisor.

Through an annual fee, (billed quarterly in advance based on the assets in the account), our products can help you to build a balanced portfolio that can hold stocks, bonds, mutual funds, cash and other types of securities. Some programs give you access to exclusive institutional money managers or affiliated portfolio managers. In order to help meet your objectives and risk tolerance, a Wachovia Securities Financial Advisor can help you select from the programs described below.

Managed accounts are not designed for excessively traded or inactive accounts and may not be suitable for all investors. Since no one manager is suitable for all types of investors, this information is provided for information purposed only. We need to review your investment objectives, risk tolerance, and liquidity needs before we introduce suitable managers to you. Please carefully review the Wachovia Securities advisory disclosure document for a full description of our services. A minimum annual fee may apply for these programs. Except where noted, the fees charged for these programs include advisory services, performance measurement, transaction costs, custody services, and trading. Other fees may apply.

The mutual funds in the FundSource^SM, CustomChoice ^SM, and Pathways programs mentioned below 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 them carefully before you invest.

FundSource
This is our exclusive mutual fund wrap-fee program. It offers investors a series of professionally managed portfolios consisting of no-load, load-waived and institutional share class mutual funds. Objectivity, professional money management and simplicity-all available to you in the FundSource program.

CustomChoice
This account offers a highly personalized investment plan tailored to your unique needs. CustomChoice offers an extensive selection of mutual funds including well-known no-load and load-waived funds, along with performance monitoring and allocation rebalancing. Objective advice and access to the industry's top funds.

The fees for the FundSource and CustomChoice do not cover the fees and expenses of the underlying funds and customary brokerage charges may apply to non-program assets. The minimum account size for these programs is $25,000.

Pathways
This is a mutual fund advisory asset allocation investment program. It offers access to professional, institutional-style money management offered by the investment management subsidiary of Frank Russell Company. Russell Investments' objective approach to evaluating, selecting and monitoring money managers has been trusted by some of the world's most demanding institutional investors for 40 years. Pathways offers nine asset-allocated mutual fund blends, created using Russell Investment Company (RIC) Funds, to suit your investment objectives. Minimum initial investment: $25,000.

Asset Advisor
In Asset Advisor you work side by side with a Wachovia Securities Financial Advisor to identify your long-term goals and dreams. A Wachovia Securities Financial Advisor will assist you in developing a plan that will help you achieve these goals by providing objective advice and guidance specific to your investment needs. However, you will have the final decision on the investments you select for your portfolio.

Fees for the Asset Advisor are based on the assets in the account and are assessed quarterly. During periods of lower trading activity, your costs might be lower if our compensation was based on commissions. Contact a Financial Advisor for details  about additional expenses that may apply in certain circumstances and for a list of eligible and excluded assets. The minimum account size for this program is $50,000. 

Masters
With the Masters program, a Wachovia Securities Financial Advisor can provide you access to some of the nation's most exclusive portfolio managers. Although many of these managers usually work only with accounts of $1 million or more, by working with Wachovia Securities, investors with $100,000 or more can benefit from their services.

Diversified Managed Allocations
In one DMA account, a combination of unaffiliated professionally managed portfolios is strategically allocated using our disciplined investment process. This program offers separately managed portfolios featuring asset allocation, diversification, and risk-based portfolio management.¹

The fee schedules for the Masters and DMA programs, which are negotiable, are based on account size and an assumed active portfolio. The minimum investment for Masters is $100,000 and for DMA is $150,000.

Wachovia Compass Advisory Program^SM
The Wachovia Compass Advisory Program^SM combines the advantages of a professionally managed, separate account portfolio. Managed by Wachovia Securities, Wachovia Compass is designed for those who wish to have a portfolio of individual stocks and bonds, but want to leave the decision-making to a professional. The minimum account size for this program is $50,000. 

Network
The Network Program provides clients access to many of the nation's well- known money managers in a dual-contract arrangement. This program offers clients consulting services and transactions for a fee or a negotiated commission schedule. 

The fees for Network may be either asset or commission based, and include performance measurement, transaction costs, custody services, and trading. There is an additional fee, billed separately, for the outside money manager’s advisory services. During period of lower trading activity, your costs might be lower if our compensation were based on commissions. The minimum size for this program is $100,000. 

Customized Portfolios
Customized Portfolios from Evergreen Investments² offers individualized strategies for investors who have special objectives for performance, risk management, tax sensitivity and diversification — needs that simply cannot be met through standard strategies. Services include customized management, diversified portfolios of alternative investments, and separately managed equity and fixed-income accounts. An experienced portfolio manager will work in conjunction with your Wachovia Securities Financial Advisor to deliver the customized portfolio management, objective advice and dedicated service that you demand. The minimum size for this program is $100,000.   

Fundamental Choice
Fundamental Choice was designed for investors who believe that long-term capital appreciation is best achieved by following a disciplined investment approach to building and maintaining a portfolio. With Fundamental Choice, you receive top-quality professional services that were once available only to high-net-worth individuals, and you receive a close, one-to-one professional relationship with your Financial Advisor. The minimum account size for this program is $50,000.

Private Investment Management
The Private Investment Management program gives you professional portfolio management and the added benefit of your portfolio manager's personalized service. Your Financial Advisor, who has proven through experience his or her ability to manage portfolios, acts as your personal portfolio manager. This gives you the added advantage of having someone who is intimately acquainted with your financial goals and concerns, and with whom you have already established a one-to-one working relationship. In short, you are dealing with someone you know and trust. There is no need to spend your valuable time bringing a portfolio manager "up to speed" on your financial goals. The minimum account size for this program is $50,000. 

Quantitative Choice
Quantitative Choice is a portfolio management program designed for investors who are seeking long-term capital appreciation through an actively managed, diversified portfolio of stocks. Quantitative Choice gives you that and more: professional investment management; a disciplined and objective stock-selection process; and a close, one-on-one relationship with your Financial Advisor. The selection of stocks for your portfolio is not left to chance. Instead, the Quantitative Choice Portfolio Management program follows an innovative process that is based on quantitative research, eliminating the subjectivity of emotional buy and sell decisions.

The minimum account size for Fundamental Choice, PIM, and Quantitative Choice is $50,000. During periods of lower trading activity, your costs for these programs might be lower if our compensation was based on commissions.

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