Four Closed-End Funds Advised by Wells Fargo Funds Management Renew Share Repurchase Programs
November 09 2018 - 5:44PM
Business Wire
The following four Wells Fargo closed-end funds announced today
that they will renew their open-market share repurchase
programs:
- Wells Fargo Global Dividend Opportunity
Fund (NYSE: EOD)
- Wells Fargo Income Opportunities Fund
(NYSE American: EAD)
- Wells Fargo Multi-Sector Income Fund
(NYSE American: ERC)
- Wells Fargo Utilities and High Income
Fund (NYSE American: ERH)
The funds’ Board of Trustees has authorized the repurchase of an
aggregate of up to 10% of each fund’s outstanding shares in
open-market transactions during the period beginning January 1,
2019, and ending December 31, 2019. The Board has again delegated
to Wells Fargo Funds Management, LLC, discretion to determine the
amount and timing of repurchases of shares of each fund in
accordance with the best interests of the fund and subject to
applicable legal limitations. The Board will continue to receive
periodic reports on repurchase activity as part of its ongoing
oversight of the programs, which includes deciding whether to renew
or discontinue the programs at the end of their terms.
The Board previously authorized the repurchase during the period
from January 1, 2018, through December 31, 2018, of an aggregate of
up to 10% of the outstanding shares of each fund. Through October
31, 2018, EOD repurchased 257,150 shares (or 0.57% of outstanding
shares), EAD repurchased 1,899,824 shares (or 2.82% of outstanding
shares), and ERC repurchased 3,397,183 shares (or 9.72% of
outstanding shares). ERH did not repurchase any shares through
October 31, 2018.
The Wells Fargo Global Dividend Opportunity Fund is a closed-end
equity and high-yield bond fund. The fund’s investment objective is
to seek a high level of current income. The fund’s secondary
objective is long-term growth of capital.
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.
The Wells Fargo Multi-Sector Income Fund is a closed-end income
fund. The fund’s investment objective is to seek a high level of
current income consistent with limiting its overall exposure to
domestic interest rate risk.
The Wells Fargo Utilities and High Income Fund is a closed-end
equity and high-yield bond fund. The fund’s investment objective is
to seek a high level of current income and moderate capital growth,
with an emphasis on providing tax-advantaged dividend income.
For more information on Wells Fargo’s closed-end funds, please
visit our website.
These closed-end funds are no longer engaged in initial
public offerings, and shares are available only 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, lower-rated bonds may contain more risk due to the
increased possibility of default. Foreign investments may contain
more risk due to the inherent risks associated with changing
political climates, foreign market instability, and foreign
currency fluctuations. Risks of international investing are
magnified in emerging or developing markets. Funds that concentrate
their investments in a single industry or sector may face increased
risk of price fluctuation over more diversified funds due to
adverse developments within that industry or sector. Small- and
mid-cap securities may be subject to special risks associated with
narrower product lines and limited financial resources compared
with their large-cap counterparts. 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 fund investments. Interest
rate changes and their impact on the funds and their NAVs can be
sudden and unpredictable.
The use of leverage results in certain risks, including, among
others, the likelihood of greater volatility of the NAV and the
market price 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 they are designed to hedge or to closely track. There
are numerous risks associated with transactions in options on
securities. Illiquid securities may be subject to wide fluctuations
in market value and may be difficult to sell.
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 Incorporated 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.
Some of the information contained herein may include
forward-looking statements about the expected investment activities
of the funds. These statements provide no assurance as to the
funds’ actual investment activities or results. Readers must make
their own assessment of the information contained herein and
consider such other factors as they may deem relevant to their
individual circumstances.
317948 11-18
NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE
VALUE
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Shareholder inquiries1-800-730-6001Financial advisor
inquiries1-888-877-9275orMedia contact:Robert Julavits,
917-260-2448robert.w.julavits@wellsfargo.comSarah Kerr,
917-260-1582skerr@wellsfargo.com
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