Three Closed-End Funds Advised by Wells Fargo Funds Management Extend Share Repurchase Programs; Program Expanded to Include ...
November 10 2017 - 5:00PM
Business Wire
The following three Wells Fargo closed-end funds announced today
that they will extend their open-market share repurchase
programs:
- Wells Fargo Income Opportunities Fund
(NYSE American: EAD)
- Wells Fargo Utilities and High Income
Fund (NYSE American: ERH)
- Wells Fargo Global Dividend Opportunity
Fund (NYSE: EOD)
In addition, the following closed-end fund adopted a new
open-market share repurchase program:
- Wells Fargo Multi-Sector Income Fund
(NYSE American: ERC)
The funds’ Boards of Trustees have 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,
2018, and ending December 31, 2018. The funds’ Boards of Trustees
have 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 funds’ Boards
of Trustees will continue to receive periodic reports on repurchase
activity as part of their ongoing oversight of the programs, which
includes deciding whether to renew or discontinue the programs at
the end of their terms.
The funds’ Boards of Trustees previously authorized the
repurchase during the period from December 17, 2016 through
December 31, 2017, of an aggregate of up to 10% of the outstanding
shares of EAD, ERH, and EOD. Through October 31, 2017, EAD
repurchased 545,608 shares (or 0.77% of outstanding shares). ERH
and EOD did not repurchase any shares through October 31, 2017.
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 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.
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 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.
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 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 net
asset value (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 may also 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 a trade name used by the
asset management businesses of Wells Fargo & Company. Wells
Fargo Funds Management, LLC, a wholly owned subsidiary of Wells
Fargo & Company, provides investment advisory and
administrative services for Wells Fargo Funds. Other affiliates of
Wells Fargo & Company provide subadvisory and other services
for the funds. This material is prepared by Wells Fargo Funds
Distributor, LLC, Member FINRA, an affiliate of Wells Fargo
& Company. Neither Wells Fargo Funds Distributor nor Wells
Fargo Funds Management holds fund shareholder accounts or assets.
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. The reader must
make his/her own assessment of the information contained herein and
consider such other factors as he/she may deem relevant to his/her
individual circumstances.
307339 11-17
NOT FDIC INSURED • NO BANK GUARANTEE • MAY
LOSE VALUE
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version on businesswire.com: http://www.businesswire.com/news/home/20171110005724/en/
Shareholder inquiries, 1-800-730-6001Financial advisor
inquiries, 1-888-877-9275orMedia contact:Sarah Kerr,
212-260-1582skerr@wellsfargo.com
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