Strategic Municipal Bond Fund Summary
Class/Ticker: Institutional Class - STRIX
Summary Prospectus
November 1, 2013
|
Link to Prospectus
|
Link to SAI
|
Before you invest, you may want to review the Fund's prospectus, which contains more information about the Fund and its risks.
You can find the Fund's prospectus and other information about the Fund online at wellsfargoadvantagefunds.com/reports. You
can also get information at no cost by calling 1-800-222-8222, or by sending an email request to wfaf@wellsfargo.com. The
current prospectus ("Prospectus") dated November 1, 2013 and the statement of additional information ("SAI") dated November
1, 2013, are incorporated by reference into this summary prospectus. The Fund's SAI may be obtained, free of charge, in the
same manner as the Prospectus.
Investment Objective
The Fund seeks current income exempt from regular federal income tax.
Fees and Expenses
These tables are intended to help you understand the various costs and expenses you will pay if you buy and hold shares of
the Fund.
|
Shareholder Fees (fees paid directly from your investment)
|
|
|
|
|
|
Maximum sales charge (load) imposed on purchases (as a percentage of offering price)
|
None
|
|
Maximum deferred sales charge (load) (as a percentage of offering price)
|
None
|
|
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
|
|
|
|
|
Management Fees
|
0.33%
|
|
Distribution (12b-1) Fees
|
0.00%
|
|
Other Expenses
|
0.16%
|
|
Total Annual Fund Operating Expenses
|
0.49%
|
|
Fee Waivers
|
0.01%
|
|
Total Annual Fund Operating Expenses After Fee Waiver
1
|
0.48%
|
|
1.
|
The Adviser has committed through October 31, 2014, to waive fees and/or reimburse expenses to the extent necessary to cap
the Fund's Total Annual Fund Operating Expenses After Fee Waiver at the amounts shown above. Brokerage commissions, stamp
duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the cap. After this
time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board
of Trustees.
|
Example of Expenses
The example below is intended to help you compare the costs of investing in the Fund with the costs of investing in other
mutual funds. The example assumes a $10,000 initial investment, 5% annual total return, and that operating expenses remain
the same as in the tables above. The example also assumes that the Total Annual Fund Operating Expenses After Fee Waiver shown
above will only be in place for the length of the current waiver commitment. Although your actual costs may be higher or lower,
based on these assumptions your costs would be:
|
|
|
|
After:
|
|
|
1 Year
|
$49
|
|
3 Years
|
$156
|
|
5 Years
|
$273
|
|
10 Years
|
$615
|
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A
higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held
in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the
Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 49% of the average value of
its portfolio.
Principal Investment Strategies
Under normal circumstances, we invest:
-
at least 80% of the Fund's net assets in municipal securities whose interest is exempt from regular federal income tax, but
not necessarily the federal alternative minimum tax (AMT);
-
up to 35% of the Fund's total assets in below investment-grade municipal securities; and
-
up to 10% of the Fund's total assets in inverse floaters.
We may also invest:
We invest principally in municipal securities of states, territories and possessions of the United States whose interest is exempt
from regular federal income tax, but not necessarily federal AMT. Some of the securities may be below investment grade or
may be unrated and deemed by us to be of comparable quality. We may also invest any amount of the Fund's total assets in securities
whose interest is subject to federal AMT. We may use futures for duration and yield curve management.
We may invest up to 10% of the Fund's total assets in inverse floaters to seek enhanced returns. Inverse floaters are derivative
debt instruments created by depositing a municipal security in a trust. Inverse floaters pay interest at rates that generally
vary inversely with specified short-term interest rates and involve leverage. We intend to limit leverage created by the Fund's
investment in inverse floaters to an amount equal to 10% of the Fund's total assets.
We start our investment process with a top-down, macroeconomic outlook to determine portfolio duration and yield curve positioning
as well as industry, sector and credit quality allocations. Macroeconomic factors considered may include, among others, the
pace of economic growth, employment conditions, inflation, and monetary and fiscal policy. In combination with our top-down
macroeconomic approach, we conduct intensive research on individual issuers to uncover solid investment opportunities, especially
looking for bonds whose quality may be improving. Our security selection is based on several factors including, among others,
improving financial trends, positive industry and sector dynamics, improving economic conditions, specific demographic trends
and value relative to other securities. We may sell a security due to changes in credit characteristics or outlook, as well
as changes in portfolio strategy or cash flow needs. A security may also be sold based on relative value considerations and
could be replaced with a security that presents a better value or risk/reward profile.
While we may purchase securities of any maturity or duration, under normal circumstances, we expect the Fund's overall dollar-weighted
average effective duration to be 6 years or less.
Principal Investment Risks
An investment in the Fund may lose money, is not a deposit of Wells Fargo Bank, N.A. or its affiliates, is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency, and is primarily subject to the
risks briefly summarized below.
Counter-Party Risk.
A Fund may incur a loss if the other party to an investment contract, such as a derivative or a repurchase or reverse repurchase
agreement, fails to fulfill its contractual obligation to the Fund.
Debt Securities Risk.
The issuer of a debt security may fail to pay interest or principal when due, and the value of a debt security may decline
if an issuer defaults or if its credit quality deteriorates. Changes in market interest rates may reduce the value of debt
securities or reduce the Fund's returns.
Derivatives Risk.
The use of derivatives such as futures, options and swap agreements, can lead to losses, including those magnified by leverage,
particularly when derivatives are used to enhance return rather than offset risk.
Futures Risk.
Because the futures utilized by a Fund are standardized and exchange-traded, where the exchange serves as the ultimate counterparty
for all contracts, the primary credit risk on futures contracts is the creditworthiness of the exchange itself. Futures are
also subject to market risk, interest rate risk (in the case of futures contracts relating to income producing securities)
and index tracking risk (in the case of stock index futures).
High Yield Securities Risk.
High yield securities, i.e. "junk bonds," are debt securities that are rated below investment-grade, are unrated and deemed
by us to be below investment-grade, or are in default at the time of purchase. These securities are considered speculative
by major credit rating agencies, have a much greater risk of default or of not returning principal and tend to be more volatile
and less liquid than higher-rated securities of similar maturity.
Inverse Floater Risk.
The interest payment received on inverse floating rate securities generally will decrease when specified short-term interest
rates increase. Inverse floaters are derivative debt instruments that involve leverage, which may magnify the Fund's gains
or losses, and exhibit greater price and income volatility than bonds with similar maturities. Inverse floaters are also subject
to the risks associated with derivatives and municipal securities.
Leverage Risk.
Leverage created by borrowing or certain investments, such as derivatives and reverse repurchase agreements, can diminish
the Fund's performance and increase the volatility of the Fund's net asset value.
Liquidity Risk.
A security may not be able to be sold at the time desired or without adversely affecting the price.
Management Risk.
Investment decisions made by a Fund's adviser in seeking to achieve the Fund's investment objective may not produce the returns
expected by the adviser, may cause the securities held by the Fund and, in turn, the Fund's shares to lose value or may cause
the Fund to underperform other funds with similar investment objectives.
Market Risk.
The market price of securities owned by the Fund may rapidly or unpredictably decline due to factors affecting securities
markets generally or particular industries.
Municipal Securities Risk.
Municipal securities rely on the creditworthiness or revenue production of their issuers or auxiliary credit enhancement
features. The Fund may invest 25% or more of its total assets in municipal securities that are related in such a way that
political, economic or business developments affecting one obligation would affect the others. Tax authorities are paying
increased attention as to whether interest on municipal obligations is tax exempt, and we cannot assure you that a tax authority
will not successfully challenge the exemption of a bond held by the Fund. The ongoing issues facing the national economy are
negatively impacting the economic performance of many issuers of municipal securities, and may increase the likelihood that
issuers of securities in which the Fund may invest may be unable to meet their obligations.
Regulatory Risk.
Changes in government regulations may adversely affect the value of a security. An insufficiently regulated industry or market
might also permit inappropriate practices that adversely affect an investment.
Performance
The following information provides some indication of the risks of investing in the Fund by showing changes in the Fund's
performance from year to year. The Fund's average annual total returns are compared to the performance of one or more indices.
Past performance before and after taxes is no guarantee of future results. Current month-end performance is available on the
Fund's Web site at wellsfargoadvantagefunds.com.
Calendar Year Total Returns as of 12/31 each year
Institutional Class
|
Highest Quarter:
1st Quarter 2009
|
+2.49%
|
|
Lowest Quarter:
4th Quarter 2008
|
-0.94%
|
|
Year-to-date total return as of 9/30/2013 is 0.14%
|
|
|
Average Annual Total Returns for the periods ended 12/31/2012
|
|
|
Inception Date of Share Class
|
1 Year
|
5 Year
|
10 Year
|
|
Institutional Class (before taxes)
|
11/30/2012
|
4.49%
|
3.85%
|
3.64%
|
|
Institutional Class (after taxes on distributions)
|
11/30/2012
|
4.25%
|
3.78%
|
3.38%
|
|
Institutional Class (after taxes on distributions and the sale of Fund Shares)
|
11/30/2012
|
3.69%
|
3.71%
|
3.34%
|
|
Barclays Short-Intermediate Municipal Bond Index (reflects no deduction for fees, expenses, or taxes)
|
|
3.07%
|
4.84%
|
4.08%
|
|
Barclays Municipal Bond Index (reflects no deduction for fees, expenses, or taxes)
|
|
6.78%
|
5.91%
|
5.10%
|
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect
the impact of state, local or foreign taxes. Actual after-tax returns depend on an investor's tax situation and may differ
from those shown, and after-tax returns shown are not relevant to tax-exempt investors or investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) Plans or Individual Retirement Accounts.
Fund Management
|
Adviser
|
Sub-Adviser
|
Portfolio Manager, Title/Managed Since
|
|
Wells Fargo Funds Management, LLC
|
Wells Capital Management Incorporated
|
Wendy Casetta
, Portfolio Manager / 2010
Lyle J. Fitterer, CFA, CPA
, Portfolio Manager / 2010
Robert J. Miller
, Portfolio Manager / 2010
|
Purchase and Sale of Fund Shares
Institutional Class shares are generally available through financial intermediaries for the accounts of their customers and
directly to institutional investors and individuals. Institutional investors may include corporations; private banks and trust
companies; endowments and foundations; defined contribution, defined benefit and other employer sponsored retirement plans;
institutional retirement plan platforms; insurance companies; registered investment advisor firms; bank trusts; 529 college
savings plans; family offices; and fund of funds including those managed by Funds Management. In general, you can buy or sell
shares of the Fund by mail, internet, phone or wire on any day the New York Stock Exchange is open for regular trading. You
also may buy and sell shares through a financial professional.
|
Minimum Investments
|
To Buy or Sell Shares
|
|
Minimum Initial Investment
Institutional Class: $5 million (this amount may be reduced or eliminated for certain eligible investors)
Minimum Additional Investment
Institutional Class: None
|
Mail:
Wells Fargo Advantage Funds
P.O. Box 8266
Boston, MA 02266-8266
Internet:
wellsfargoadvantagefunds.com
Phone or Wire:
1.800.222.8222
Contact your investment representative.
|
Tax Information
The Fund's distributions normally consist of exempt-interest dividends, which are generally not taxable to you for federal
income tax purposes, but may be subject to federal AMT. A portion of the Fund's distributions may not qualify as exempt-interest
dividends; such distributions will generally be taxable to you as ordinary income or capital gains, unless you are investing
through a tax-deferred arrangement, such as a 401(k) plan or an individual retirement account. However, subsequent withdrawals
from such a tax advantaged investment plan may be subject to federal income tax. You should consult your tax adviser about
your specific situation.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase a Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related
companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict
of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another
investment. Consult your salesperson or visit your financial intermediary's Web site for more information.
|
Link to Prospectus
|
Link to SAI
|
Strategic Municipal Bond Fund Summary
Class/Ticker: Administrator Class - VMPYX
Summary Prospectus
November 1, 2013
|
Link to Prospectus
|
Link to SAI
|
Before you invest, you may want to review the Fund's prospectus, which contains more information about the Fund and its risks.
You can find the Fund's prospectus and other information about the Fund online at wellsfargoadvantagefunds.com/reports. You
can also get information at no cost by calling 1-800-222-8222, or by sending an email request to wfaf@wellsfargo.com. The
current prospectus ("Prospectus") dated November 1, 2013 and the statement of additional information ("SAI") dated November
1, 2013, are incorporated by reference into this summary prospectus. The Fund's SAI may be obtained, free of charge, in the
same manner as the Prospectus.
Investment Objective
The Fund seeks current income exempt from regular federal income tax.
Fees and Expenses
These tables are intended to help you understand the various costs and expenses you will pay if you buy and hold shares of
the Fund.
|
Shareholder Fees (fees paid directly from your investment)
|
|
|
|
|
|
Maximum sales charge (load) imposed on purchases (as a percentage of offering price)
|
None
|
|
Maximum deferred sales charge (load) (as a percentage of offering price)
|
None
|
|
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
|
|
|
|
|
Management Fees
|
0.33%
|
|
Distribution (12b-1) Fees
|
0.00%
|
|
Other Expenses
|
0.43%
|
|
Total Annual Fund Operating Expenses
|
0.76%
|
|
Fee Waivers
|
0.08%
|
|
Total Annual Fund Operating Expenses After Fee Waiver
1
|
0.68%
|
|
1.
|
The Adviser has committed through October 31, 2014, to waive fees and/or reimburse expenses to the extent necessary to cap
the Fund's Total Annual Fund Operating Expenses After Fee Waiver at the amounts shown above. Brokerage commissions, stamp
duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the cap. After this
time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board
of Trustees.
|
Example of Expenses
The example below is intended to help you compare the costs of investing in the Fund with the costs of investing in other
mutual funds. The example assumes a $10,000 initial investment, 5% annual total return, and that operating expenses remain
the same as in the tables above. The example also assumes that the Total Annual Fund Operating Expenses After Fee Waiver shown
above will only be in place for the length of the current waiver commitment. Although your actual costs may be higher or lower,
based on these assumptions your costs would be:
|
|
|
|
After:
|
|
|
1 Year
|
$69
|
|
3 Years
|
$235
|
|
5 Years
|
$415
|
|
10 Years
|
$935
|
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A
higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held
in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the
Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 49% of the average value of
its portfolio.
Principal Investment Strategies
Under normal circumstances, we invest:
-
at least 80% of the Fund's net assets in municipal securities whose interest is exempt from regular federal income tax, but
not necessarily the federal alternative minimum tax (AMT);
-
up to 35% of the Fund's total assets in below investment-grade municipal securities; and
-
up to 10% of the Fund's total assets in inverse floaters.
We may also invest:
We invest principally in municipal securities of states, territories and possessions of the United States whose interest is exempt
from regular federal income tax, but not necessarily federal AMT. Some of the securities may be below investment grade or
may be unrated and deemed by us to be of comparable quality. We may also invest any amount of the Fund's total assets in securities
whose interest is subject to federal AMT. We may use futures for duration and yield curve management.
We may invest up to 10% of the Fund's total assets in inverse floaters to seek enhanced returns. Inverse floaters are derivative
debt instruments created by depositing a municipal security in a trust. Inverse floaters pay interest at rates that generally
vary inversely with specified short-term interest rates and involve leverage. We intend to limit leverage created by the Fund's
investment in inverse floaters to an amount equal to 10% of the Fund's total assets.
We start our investment process with a top-down, macroeconomic outlook to determine portfolio duration and yield curve positioning
as well as industry, sector and credit quality allocations. Macroeconomic factors considered may include, among others, the
pace of economic growth, employment conditions, inflation, and monetary and fiscal policy. In combination with our top-down
macroeconomic approach, we conduct intensive research on individual issuers to uncover solid investment opportunities, especially
looking for bonds whose quality may be improving. Our security selection is based on several factors including, among others,
improving financial trends, positive industry and sector dynamics, improving economic conditions, specific demographic trends
and value relative to other securities. We may sell a security due to changes in credit characteristics or outlook, as well
as changes in portfolio strategy or cash flow needs. A security may also be sold based on relative value considerations and
could be replaced with a security that presents a better value or risk/reward profile.
While we may purchase securities of any maturity or duration, under normal circumstances, we expect the Fund's overall dollar-weighted
average effective duration to be 6 years or less.
Principal Investment Risks
An investment in the Fund may lose money, is not a deposit of Wells Fargo Bank, N.A. or its affiliates, is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency, and is primarily subject to the
risks briefly summarized below.
Counter-Party Risk.
A Fund may incur a loss if the other party to an investment contract, such as a derivative or a repurchase or reverse repurchase
agreement, fails to fulfill its contractual obligation to the Fund.
Debt Securities Risk.
The issuer of a debt security may fail to pay interest or principal when due, and the value of a debt security may decline
if an issuer defaults or if its credit quality deteriorates. Changes in market interest rates may reduce the value of debt
securities or reduce the Fund's returns.
Derivatives Risk.
The use of derivatives such as futures, options and swap agreements, can lead to losses, including those magnified by leverage,
particularly when derivatives are used to enhance return rather than offset risk.
Futures Risk.
Because the futures utilized by a Fund are standardized and exchange-traded, where the exchange serves as the ultimate counterparty
for all contracts, the primary credit risk on futures contracts is the creditworthiness of the exchange itself. Futures are
also subject to market risk, interest rate risk (in the case of futures contracts relating to income producing securities)
and index tracking risk (in the case of stock index futures).
High Yield Securities Risk.
High yield securities, i.e. "junk bonds," are debt securities that are rated below investment-grade, are unrated and deemed
by us to be below investment-grade, or are in default at the time of purchase. These securities are considered speculative
by major credit rating agencies, have a much greater risk of default or of not returning principal and tend to be more volatile
and less liquid than higher-rated securities of similar maturity.
Inverse Floater Risk.
The interest payment received on inverse floating rate securities generally will decrease when specified short-term interest
rates increase. Inverse floaters are derivative debt instruments that involve leverage, which may magnify the Fund's gains
or losses, and exhibit greater price and income volatility than bonds with similar maturities. Inverse floaters are also subject
to the risks associated with derivatives and municipal securities.
Leverage Risk.
Leverage created by borrowing or certain investments, such as derivatives and reverse repurchase agreements, can diminish
the Fund's performance and increase the volatility of the Fund's net asset value.
Liquidity Risk.
A security may not be able to be sold at the time desired or without adversely affecting the price.
Management Risk.
Investment decisions made by a Fund's adviser in seeking to achieve the Fund's investment objective may not produce the returns
expected by the adviser, may cause the securities held by the Fund and, in turn, the Fund's shares to lose value or may cause
the Fund to underperform other funds with similar investment objectives.
Market Risk.
The market price of securities owned by the Fund may rapidly or unpredictably decline due to factors affecting securities
markets generally or particular industries.
Municipal Securities Risk.
Municipal securities rely on the creditworthiness or revenue production of their issuers or auxiliary credit enhancement
features. The Fund may invest 25% or more of its total assets in municipal securities that are related in such a way that
political, economic or business developments affecting one obligation would affect the others. Tax authorities are paying
increased attention as to whether interest on municipal obligations is tax exempt, and we cannot assure you that a tax authority
will not successfully challenge the exemption of a bond held by the Fund. The ongoing issues facing the national economy are
negatively impacting the economic performance of many issuers of municipal securities, and may increase the likelihood that
issuers of securities in which the Fund may invest may be unable to meet their obligations.
Regulatory Risk.
Changes in government regulations may adversely affect the value of a security. An insufficiently regulated industry or market
might also permit inappropriate practices that adversely affect an investment.
Performance
The following information provides some indication of the risks of investing in the Fund by showing changes in the Fund's
performance from year to year. The Fund's average annual total returns are compared to the performance of one or more indices.
Past performance before and after taxes is no guarantee of future results. Current month-end performance is available on the
Fund's Web site at wellsfargoadvantagefunds.com.
Calendar Year Total Returns as of 12/31 each year
Administrator Class
|
Highest Quarter:
1st Quarter 2009
|
+2.49%
|
|
Lowest Quarter:
4th Quarter 2008
|
-0.94%
|
|
Year-to-date total return as of 9/30/2013 is -0.01%
|
|
|
Average Annual Total Returns for the periods ended 12/31/2012
|
|
|
Inception Date of Share Class
|
1 Year
|
5 Year
|
10 Year
|
|
Administrator Class (before taxes)
|
10/6/1997
|
4.48%
|
3.85%
|
3.64%
|
|
Administrator Class (after taxes on distributions)
|
10/6/1997
|
4.24%
|
3.78%
|
3.38%
|
|
Administrator Class (after taxes on distributions and the sale of Fund Shares)
|
10/6/1997
|
3.68%
|
3.71%
|
3.34%
|
|
Barclays Short-Intermediate Municipal Bond Index (reflects no deduction for fees, expenses, or taxes)
|
|
3.07%
|
4.84%
|
4.08%
|
|
Barclays Municipal Bond Index (reflects no deduction for fees, expenses, or taxes)
|
|
6.78%
|
5.91%
|
5.10%
|
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect
the impact of state, local or foreign taxes. Actual after-tax returns depend on an investor's tax situation and may differ
from those shown, and after-tax returns shown are not relevant to tax-exempt investors or investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) Plans or Individual Retirement Accounts.
Fund Management
|
Adviser
|
Sub-Adviser
|
Portfolio Manager, Title/Managed Since
|
|
Wells Fargo Funds Management, LLC
|
Wells Capital Management Incorporated
|
Wendy Casetta
, Portfolio Manager / 2010
Lyle J. Fitterer, CFA, CPA
, Portfolio Manager / 2010
Robert J. Miller
, Portfolio Manager / 2010
|
Purchase and Sale of Fund Shares
Administrator Class shares are generally available through financial intermediaries for the accounts of their customers and
directly to institutional investors and individuals. Institutional investors may include corporations; private banks and trust
companies; endowments and foundations; defined contribution, defined benefit and other employer sponsored retirement plans;
institutional retirement plan platforms; insurance companies; registered investment advisor firms; bank trusts; 529 college
savings plans; family offices; and fund of funds including those managed by Funds Management. In general, you can buy or sell
shares of the Fund by mail, internet, phone or wire on any day the New York Stock Exchange is open for regular trading. You
also may buy and sell shares through a financial professional.
|
Minimum Investments
|
To Buy or Sell Shares
|
|
Minimum Initial Investment
Administrator Class: $1 million (this amount may be reduced or eliminated for certain eligible investors)
Minimum Additional Investment
Administrator Class: None
|
Mail:
Wells Fargo Advantage Funds
P.O. Box 8266
Boston, MA 02266-8266
Internet
: wellsfargoadvantagefunds.com
Phone or Wire:
1-800-222-8222
Contact your investment representative.
|
Tax Information
The Fund's distributions normally consist of exempt-interest dividends, which are generally not taxable to you for federal
income tax purposes, but may be subject to federal AMT. A portion of the Fund's distributions may not qualify as exempt-interest
dividends; such distributions will generally be taxable to you as ordinary income or capital gains, unless you are investing
through a tax-deferred arrangement, such as a 401(k) plan or an individual retirement account. However, subsequent withdrawals
from such a tax advantaged investment plan may be subject to federal income tax. You should consult your tax adviser about
your specific situation.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase a Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related
companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict
of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another
investment. Consult your salesperson or visit your financial intermediary's Web site for more information.
|
Link to Prospectus
|
Link to SAI
|
Strategic Municipal Bond Fund Summary
Class/Ticker: Class A - VMPAX; Class B - VMPIX; Class C - DHICX
Summary Prospectus
November 1, 2013
|
Link to Prospectus
|
Link to SAI
|
Before you invest, you may want to review the Fund's prospectus, which contains more information about the Fund and its risks.
You can find the Fund's prospectus and other information about the Fund online at wellsfargoadvantagefunds.com/reports. You
can also get information at no cost by calling 1-800-222-8222, or by sending an email request to wfaf@wellsfargo.com. The
current prospectus ("Prospectus") dated November 1, 2013 and the statement of additional information ("SAI") dated November
1, 2013, are incorporated by reference into this summary prospectus. The Fund's SAI may be obtained, free of charge, in the
same manner as the Prospectus.
Investment Objective
The Fund seeks current income exempt from regular federal income tax.
Fees and Expenses
These tables are intended to help you understand the various costs and expenses you will pay if you buy and hold shares of
the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least
$50,000 in the aggregate in specified classes of certain
Wells Fargo Advantage Funds®
. More information about these and other discounts is available from your financial professional and in "A Choice of Share
Classes" and "Reductions and Waivers of Sales Charges" on pages 85 and 88 of the Prospectus and "Additional Purchase and Redemption
Information" on page 71 of the Statement of Additional Information.
|
Shareholder Fees (Fees paid directly from your investment)
|
|
|
|
|
|
Class A
|
Class B
|
Class C
|
|
Maximum sales charge (load) imposed on purchases (as a percentage of offering price)
|
4.50%
|
None
|
None
|
|
Maximum deferred sales charge (load) (as a percentage of offering price)
|
None
1
|
5.00%
|
1.00%
|
|
1.
|
Investments of $1 million or more are not subject to a front-end sales charge but generally will be subject to a deferred
sales charge of 1.00% if redeemed within 18 months from the date of purchase.
|
|
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
|
|
|
Class A
|
Class B
|
Class C
|
|
Management Fees
|
0.33%
|
0.33%
|
0.33%
|
|
Distribution (12b-1) Fees
|
0.00%
|
0.75%
|
0.75%
|
|
Other Expenses
|
0.49%
|
0.49%
|
0.49%
|
|
Total Annual Fund Operating Expenses
|
0.82%
|
1.57%
|
1.57%
|
|
Fee Waivers
|
0.00%
|
0.00%
|
0.00%
|
|
Total Annual Fund Operating Expenses After Fee Waiver
1
|
0.82%
|
1.57%
|
1.57%
|
|
1.
|
The Adviser has committed through October 31, 2014, to waive fees and/or reimburse expenses to the extent necessary to cap
the Fund's Total Annual Fund Operating Expenses After Fee Waiver at the amounts shown above. Brokerage commissions, stamp
duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the cap. After this
time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board
of Trustees.
|
Example of Expenses
The example below is intended to help you compare the costs of investing in the Fund with the costs of investing in other
mutual funds. The example assumes a $10,000 initial investment, 5% annual total return, and that operating expenses remain
the same as in the tables above. The example also assumes that the Total Annual Fund Operating Expenses After Fee Waiver shown
above will only be in place for the length of the current waiver commitment. Although your actual costs may be higher or lower,
based on these assumptions your costs would be:
|
|
Assuming Redemption at End of Period
|
|
|
Assuming No Redemption
|
|
After:
|
Class A
|
Class B
|
Class C
|
|
|
Class B
|
Class C
|
|
1 Year
|
$530
|
$660
|
$260
|
|
|
$160
|
$160
|
|
3 Years
|
$700
|
$796
|
$496
|
|
|
$496
|
$496
|
|
5 Years
|
$885
|
$1,055
|
$855
|
|
|
$855
|
$855
|
|
10 Years
|
$1,418
|
$1,571
|
$1,867
|
|
|
$1,571
|
$1,867
|
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A
higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held
in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the
Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 49% of the average value of
its portfolio.
Principal Investment Strategies
Under normal circumstances, we invest:
-
at least 80% of the Fund's net assets in municipal securities whose interest is exempt from regular federal income tax, but
not necessarily the federal alternative minimum tax (AMT);
-
up to 35% of the Fund's total assets in below investment-grade municipal securities; and
-
up to 10% of the Fund's total assets in inverse floaters.
We may also invest:
We invest principally in municipal securities of states, territories and possessions of the United States whose interest is exempt
from regular federal income tax, but not necessarily federal AMT. Some of the securities may be below investment grade or
may be unrated and deemed by us to be of comparable quality. We may also invest any amount of the Fund's total assets in securities
whose interest is subject to federal AMT. We may use futures for duration and yield curve management.
We may invest up to 10% of the Fund's total assets in inverse floaters to seek enhanced returns. Inverse floaters are derivative
debt instruments created by depositing a municipal security in a trust. Inverse floaters pay interest at rates that generally
vary inversely with specified short-term interest rates and involve leverage. We intend to limit leverage created by the Fund's
investment in inverse floaters to an amount equal to 10% of the Fund's total assets.
We start our investment process with a top-down, macroeconomic outlook to determine portfolio duration and yield curve positioning
as well as industry, sector and credit quality allocations. Macroeconomic factors considered may include, among others, the
pace of economic growth, employment conditions, inflation, and monetary and fiscal policy. In combination with our top-down
macroeconomic approach, we conduct intensive research on individual issuers to uncover solid investment opportunities, especially
looking for bonds whose quality may be improving. Our security selection is based on several factors including, among others,
improving financial trends, positive industry and sector dynamics, improving economic conditions, specific demographic trends
and value relative to other securities. We may sell a security due to changes in credit characteristics or outlook, as well
as changes in portfolio strategy or cash flow needs. A security may also be sold based on relative value considerations and
could be replaced with a security that presents a better value or risk/reward profile.
While we may purchase securities of any maturity or duration, under normal circumstances, we expect the Fund's overall dollar-weighted
average effective duration to be 6 years or less.
Principal Investment Risks
An investment in the Fund may lose money, is not a deposit of Wells Fargo Bank, N.A. or its affiliates, is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency, and is primarily subject to the
risks briefly summarized below.
Counter-Party Risk.
A Fund may incur a loss if the other party to an investment contract, such as a derivative or a repurchase or reverse repurchase
agreement, fails to fulfill its contractual obligation to the Fund.
Debt Securities Risk.
The issuer of a debt security may fail to pay interest or principal when due, and the value of a debt security may decline
if an issuer defaults or if its credit quality deteriorates. Changes in market interest rates may reduce the value of debt
securities or reduce the Fund's returns.
Derivatives Risk.
The use of derivatives such as futures, options and swap agreements, can lead to losses, including those magnified by leverage,
particularly when derivatives are used to enhance return rather than offset risk.
Futures Risk.
Because the futures utilized by a Fund are standardized and exchange-traded, where the exchange serves as the ultimate counterparty
for all contracts, the primary credit risk on futures contracts is the creditworthiness of the exchange itself. Futures are
also subject to market risk, interest rate risk (in the case of futures contracts relating to income producing securities)
and index tracking risk (in the case of stock index futures).
High Yield Securities Risk.
High yield securities, i.e. "junk bonds," are debt securities that are rated below investment-grade, are unrated and deemed
by us to be below investment-grade, or are in default at the time of purchase. These securities are considered speculative
by major credit rating agencies, have a much greater risk of default or of not returning principal and tend to be more volatile
and less liquid than higher-rated securities of similar maturity.
Inverse Floater Risk.
The interest payment received on inverse floating rate securities generally will decrease when specified short-term interest
rates increase. Inverse floaters are derivative debt instruments that involve leverage, which may magnify the Fund's gains
or losses, and exhibit greater price and income volatility than bonds with similar maturities. Inverse floaters are also subject
to the risks associated with derivatives and municipal securities.
Leverage Risk.
Leverage created by borrowing or certain investments, such as derivatives and reverse repurchase agreements, can diminish
the Fund's performance and increase the volatility of the Fund's net asset value.
Liquidity Risk.
A security may not be able to be sold at the time desired or without adversely affecting the price.
Management Risk.
Investment decisions made by a Fund's adviser in seeking to achieve the Fund's investment objective may not produce the returns
expected by the adviser, may cause the securities held by the Fund and, in turn, the Fund's shares to lose value or may cause
the Fund to underperform other funds with similar investment objectives.
Market Risk.
The market price of securities owned by the Fund may rapidly or unpredictably decline due to factors affecting securities
markets generally or particular industries.
Municipal Securities Risk.
Municipal securities rely on the creditworthiness or revenue production of their issuers or auxiliary credit enhancement
features. The Fund may invest 25% or more of its total assets in municipal securities that are related in such a way that
political, economic or business developments affecting one obligation would affect the others. Tax authorities are paying
increased attention as to whether interest on municipal obligations is tax exempt, and we cannot assure you that a tax authority
will not successfully challenge the exemption of a bond held by the Fund. The ongoing issues facing the national economy are
negatively impacting the economic performance of many issuers of municipal securities, and may increase the likelihood that
issuers of securities in which the Fund may invest may be unable to meet their obligations.
Regulatory Risk.
Changes in government regulations may adversely affect the value of a security. An insufficiently regulated industry or market
might also permit inappropriate practices that adversely affect an investment.
Performance
The following information provides some indication of the risks of investing in the Fund by showing changes in the Fund's
performance from year to year. The Fund's average annual total returns are compared to the performance of one or more indices.
Past performance before and after taxes is no guarantee of future results. Current month-end performance is available on the
Fund's Web site at wellsfargoadvantagefunds.com.
Calendar Year Total Returns for Class A as of 12/31 each year
(Returns do not reflect sales charges and would be lower if they did)
|
Highest Quarter:
1st Quarter 2009
|
+2.42%
|
|
Lowest Quarter:
4th Quarter 2008
|
-1.00%
|
|
Year-to-date total return as of 9/30/2013 is -0.11%
|
|
|
Average Annual Total Returns for the periods ended 12/31/2012 (Returns reflect applicable sales charges)
|
|
|
Inception Date of Share Class
|
1 Year
|
5 Year
|
10 Year
|
|
Class A (before taxes)
|
12/1/1994
|
-0.42%
|
2.69%
|
2.91%
|
|
Class A (after taxes on distributions)
|
12/1/1994
|
-0.65%
|
2.62%
|
2.68%
|
|
Class A (after taxes on distributions and the sale of Fund Shares)
|
12/1/1994
|
0.41%
|
2.67%
|
2.69%
|
|
Class B (before taxes)
|
3/21/1985
|
-1.44%
|
2.50%
|
2.86%
|
|
Class C (before taxes)
|
8/18/1997
|
2.54%
|
2.86%
|
2.63%
|
|
Barclays Short-Intermediate Municipal Bond Index (reflects no deduction for fees, expenses, or taxes)
|
|
3.07%
|
4.84%
|
4.08%
|
|
Barclays Municipal Bond Index (reflects no deduction for fees, expenses, or taxes)
|
|
6.78%
|
5.91%
|
5.10%
|
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect
the impact of state, local or foreign taxes. Actual after-tax returns depend on an investor's tax situation and may differ
from those shown, and after-tax returns shown are not relevant to tax-exempt investors or investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) Plans or Individual Retirement Accounts. After-tax returns are shown only
for the Class A shares. After-tax returns for the Class B and Class C shares will vary.
Fund Management
|
Adviser
|
Sub-Adviser
|
Portfolio Manager, Title/Managed Since
|
|
Wells Fargo Funds Management, LLC
|
Wells Capital Management Incorporated
|
Wendy Casetta
, Portfolio Manager / 2010
Lyle J. Fitterer, CFA, CPA
, Portfolio Manager / 2010
Robert J. Miller
, Portfolio Manager / 2010
|
Purchase and Sale of Fund Shares
|
Minimum Investments
|
To Buy or Sell Shares
|
|
Minimum Initial Investment
Regular Accounts: $1,000
IRAs, IRA rollovers, Roth IRAs: $250
UGMA/UTMA accounts: $50
Employer Sponsored Retirement Plans: No Minimum
Class B shares are generally closed to new investment.
Minimum Additional Investment
Regular Accounts, IRAs, IRA rollovers, Roth IRAs: $100
UGMA/UTMA accounts: $50
Employer Sponsored Retirement Plans: No Minimum
|
Mail:
Wells Fargo Advantage Funds
P.O. Box 8266
Boston, MA 02266-8266
Internet:
wellsfargoadvantagefunds.com
Phone or Wire:
1-800-222-8222
Contact your financial professional.
|
In general, you can buy or sell shares of the Fund by mail, internet, phone or wire on any day the New York Stock Exchange
is open for regular trading. You also may buy and sell shares through a financial professional.
Tax Information
The Fund's distributions normally consist of exempt-interest dividends, which are generally not taxable to you for federal
income tax purposes, but may be subject to federal AMT. A portion of the Fund's distributions may not qualify as exempt-interest
dividends; such distributions will generally be taxable to you as ordinary income or capital gains, unless you are investing
through a tax-deferred arrangement, such as a 401(k) plan or an individual retirement account. However, subsequent withdrawals
from such a tax advantaged investment plan may be subject to federal income tax. You should consult your tax adviser about
your specific situation.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase a Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related
companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict
of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another
investment. Consult your salesperson or visit your financial intermediary's Web site for more information.
|
Link to Prospectus
|
Link to SAI
|
Arno Therapeutics (CE) (USOTC:ARNI)
Historical Stock Chart
From May 2024 to Jun 2024
Arno Therapeutics (CE) (USOTC:ARNI)
Historical Stock Chart
From Jun 2023 to Jun 2024
