Wells Fargo Income Opportunities Fund Adopts Managed Distribution Plan
August 15 2018 - 6:00PM
Business Wire
The Wells Fargo Income Opportunities Fund (NYSE American: EAD),
a closed-end fund, announced today that the fund’s Board of
Trustees has approved the commencement of a managed distribution
plan.
The managed distribution plan will go into effect beginning with
the monthly distribution to be declared in September 2018. The plan
provides for the declaration of monthly distributions to common
shareholders of the fund at an annual minimum fixed rate of 8%
based on the fund’s average monthly net asset value (NAV) per share
over the prior 12 months. Under the managed distribution plan,
monthly distributions may be sourced from income, paid-in capital,
and/or capital gains, if any. Shareholders may elect to reinvest
distributions received pursuant to the managed distribution plan in
the fund under the existing dividend reinvestment plan, which is
described in the fund’s shareholder reports.
The Wells Fargo Income Opportunities Fund is a closed-end
high-yield bond fund. The fund’s investment objective is to seek a
high level of current income. The fund may, as a secondary
objective, seek capital appreciation to the extent it is consistent
with its investment objective.
Under the managed distribution plan, the fund will distribute
available investment income to its shareholders monthly. If
sufficient investment income is not available on a monthly basis,
the fund will distribute long-term capital gains and/or return
capital to its shareholders in order to maintain its managed
distribution level. The fund expects that distributions under the
managed distribution plan will exceed investment income and capital
gains and thus expects that such distributions likely will include
return of capital for the foreseeable future. No conclusions should
be drawn about the fund’s investment performance from the amount of
the fund’s distributions or from the terms of the fund’s managed
distribution plan.
The amount distributed per share is subject to change at the
discretion of the fund’s Board of Trustees. The managed
distribution plan will be subject to periodic review by the fund’s
Board of Trustees to determine whether the managed distribution
plan should be continued, modified, or terminated. The fund’s Board
of Trustees may amend the terms of the managed distribution plan or
suspend or terminate the managed distribution plan at any time
without prior notice to the fund’s shareholders. The amendment or
termination of the managed distribution plan could have an adverse
effect on the market price of the fund's shares.
With each distribution that does not consist solely of net
investment income, the fund will issue a notice to shareholders
that will provide detailed information regarding the amount and
composition of the distribution and other related information. The
amounts and sources of distributions reported in the notice are
only estimates and are not being provided for tax reporting
purposes. The actual amounts and sources of the amounts for tax
reporting purposes will depend upon the fund’s investment
experience during its full fiscal year and may be subject to
changes. The fund will send shareholders a Form 1099-DIV for the
calendar year that will tell shareholders how to report these
distributions for federal income tax purposes.
For more information on Wells Fargo’s closed-end funds, please
visit our website.
This closed-end fund is no longer offered as an initial
public offering, and shares are only available through
broker/dealers on the secondary market. Unlike an open-end
mutual fund, a closed-end fund offers a fixed number of shares for
sale. After the initial public offering, shares are bought and sold
through broker/dealers in the secondary marketplace, and the market
price of the shares is determined by supply and demand, not by NAV,
and is often lower than the NAV. A closed-end fund is not required
to buy its shares back from investors upon request.
High-yield securities have a greater risk of default and tend to
be more volatile than higher-rated debt securities. Illiquid
securities may be subject to wide fluctuations in market value and
may be difficult to sell. The value of debt securities fluctuate in
response to the financial condition of individual issuers, general
market and economic conditions, and changes in interest rates. In
general, when interest rates rise, the value of debt securities
tends to fall. When interest rates decline, interest that a fund is
able to earn on its investments in debt securities also may
decline, but the value of those securities may increase. Changes in
market conditions and government policies may lead to periods of
heightened volatility in the debt securities market and reduced
liquidity for certain debt securities held by the fund. Interest
rate changes and their impact on the fund and its share price can
be sudden and unpredictable.
The use of leverage results in certain risks, including, among
others, the likelihood of greater volatility of net asset value and
the market value of common shares. Derivatives involve additional
risks, including interest rate risk, credit risk, the risk of
improper valuation, and the risk of noncorrelation to the relevant
instruments that they are designed to hedge or closely track. There
are numerous risks associated with transactions in options on
securities.
Wells Fargo Asset Management (WFAM) is the trade name for
certain investment advisory/management firms owned by Wells Fargo
& Company. These firms include but are not limited to Wells
Capital Management Inc. and Wells Fargo Funds Management, LLC.
Certain products managed by WFAM entities are distributed by Wells
Fargo Funds Distributor, LLC (a broker/dealer and Member
FINRA).
This material is for general informational and educational
purposes only and is NOT intended to provide investment advice or a
recommendation of any kind—including a recommendation for any
specific investment, strategy, or plan.
314726 08-18
NOT FDIC INSURED • NO BANK GUARANTEE • MAY
LOSE VALUE
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180815005727/en/
Shareholder inquiries1-800-730-6001orFinancial advisor
inquiries1-888-877-9275orMedia contact:Robert Julavits,
212-260-2448robert.w.julavits@wellsfargo.com
Wells Fargo (NYSE:WFC)
Historical Stock Chart
From Aug 2024 to Sep 2024
Wells Fargo (NYSE:WFC)
Historical Stock Chart
From Sep 2023 to Sep 2024