AsofSeptember30,2017 Factsheet cq u irdf nsx p, toyl mh.A b ... Low CREDIT QUALITY Medium High Ltd Mod Ext DURATION Fund characteristics Bloomberg Barclays1-3 YearUS Government/Credit

Download AsofSeptember30,2017 Factsheet     cq u irdf nsx p, toyl mh.A b ... Low CREDIT QUALITY Medium High Ltd Mod Ext DURATION Fund characteristics Bloomberg Barclays1-3 YearUS Government/Credit

Post on 14-Feb-2018

247 views

Category:

Documents

6 download

TRANSCRIPT

  • OVERALL MORNINGSTAR RATINGTM,

    The Overall Morningstar Rating, a weighted average of thethree-, five-, and ten-year (if applicable) ratings, is out of455 funds in the Short-Term Bond category, based onrisk-adjusted return as of 03-31-18.

    TickerCUSIPClass

    WFSHX949921639Class C

    SSTVX949917637Class A

    SSHIX949917652Institutional

    THE FUNDThe Wells Fargo Short-Term Bond Fund seekscurrent income by investing primarily in adiversified portfolio of fixed-income securitieswith an average maturity of less than three years.

    FUND STRATEGY Strives to outperform the Bloomberg Barclays

    13 Year U.S. Government/Credit Bond Indexby investing in corporate bonds and structuredproducts while maintaining a duration targetof approximately one to two years

    Seeks to typically hold large exposures inspread sectors, including allocations toshort-term corporate debt, residential andcommercial mortgage-backed debt, andasset-backed securities

    Uses a relative-value approach based onextensive credit analysis that seeksopportunities from changing market trendsand pricing inefficiencies to generate excessreturns

    TOP HOLDINGS (%)

    0.81Santander Retail Auto Lease Trust2017-A, 2.02, 3-20-2020

    0.81Ford Credit Auto Owner Trust 2017-C,1.80, 9-15-2020

    0.81JP Morgan Chase Commercial Mor,3.04, 8-15-2027

    0.89Enterprise Fleet Financing LLC Series2017-1, 2.13, 7-20-2022

    0.93Hyundai Auto Lease SecuritizationTrust 2016-A, 1.80, 12-16-2019

    0.93Citibank Credit Card Issuance Trust2017-A2, 1.74, 1-19-2021

    0.97Gm Financial Securitized Term, 2.08,1-19-2021

    0.97Ccg Receivables Trust 2015-1, 1.92,1-17-2023

    0.98Dell EMC, Inc., 2.65, 6-1-2020

    1.13Jackson Natl Life Global Sr Secured,2.50, 6-27-2022

    Portfolio holdings are subject to change and may have changedsince the date specified. The holdings listed should not beconsidered recommendations to purchase or sell a particularsecurity.

    As of March 31, 2018 Fact sheet wellsfargofunds.com

    ShortTerm Bond FundAsset class: Fixed Income

    Competitive advantages Rigorous fundamental credit research: Research is conducted through a comprehensive team

    effort in which all members operate as credit analysts for each of the credits that they cover.This empowers the team to act opportunistically in the marketplace.

    Empowered sector experts: The fund is managed by an interdisciplinary team that combinesthe expertise of specialists dedicated to various sectors, such as credit, securitized, orgovernment. Each sector leader is empowered to trade the portfolio within the bands oftactical discretion.

    Disciplined risk management: The team uses proprietary risk management tools designed tobalance alpha generation with appropriate levels of risk-adjusted return and comprehensiverisk management.

    Portfolio composition (%)

    Other securitized (1)MBS (3)CMBS (4)Government-related (5)Derivatives (6)CMO (11)ABS (14)Corporate bonds (56)

    Maturity distribution (%)

    02510 years

    01435 years

    1005513 years

    02901 year

    BloombergBarclays 1-3 Year

    USGovernment/Credit

    Index1Fund

    Portfolio composition and maturity distribution is subject to change and may have changed since the date specified. Percent total may not add to100% due to rounding.

    Growth of $10,000 and annual returns (Institutional shares 3-31-08 through 3-31-18)Assumes reinvestment of dividends and capital gains.

    0

    3,000

    6,000

    9,000

    12,000

    $15,000

    $12,745

    1.312.170.891.231.133.192.034.669.85Fund (%)

    18171615141312111009

    Total returns (%)

    ANNUALIZED

    2.000.931.030.85-0.21-0.21Lipper Short InvestmentGrade Debt Funds2

    1.560.760.660.24-0.20-0.20Bloomberg Barclays 1-3 YearUS Government/Credit Index1

    0.460.492.451.241.120.68-0.10-0.10Institutional Shares

    Netexpense

    ratio

    Grossexpense

    ratio10 year5 year3 year1 yearYear to

    date3 Month

    Figures quoted represent past performance, which is no guarantee of future results, and do not reflect taxes that a shareholder maypay on a fund. Investment return, principal value, and yields of an investment will fluctuate so that an investors shares, when redeemed, may beworth more or less than their original cost. Current performance may be lower or higher than the performance data quoted and assumes thereinvestment of dividends and capital gains. Current month-end performance is available at the funds website, wellsfargofunds.com. InstitutionalClass shares are sold without a front-end sales charge or contingent deferred sales charge.The manager has contractually committed, through 12-31-18, to waive fees and/or reimburse expenses to the extent necessary to cap the funds totalannual fund operating expenses after fee waiver at 0.45% for the Institutional class. Brokerage commissions, stamp duty fees, interest, taxes, acquiredfund fees and expenses (if any), and extraordinary expenses are excluded from the cap. After this time, the cap may be increased or the commitment tomaintain the cap may be terminated only with the approval of the Board of Trustees. Without this cap, the funds returns would have been lower. Theexpense ratio paid by an investor is the net expense ratio (the total annual fund operating expenses after fee waivers) as stated in the prospectus.

    http://www.wellsfargofunds.comhttp://www.wellsfargofunds.com

  • FIXED-INCOME STYLE BOX3

    LowCRED

    IT QU

    ALITY

    Medium

    High

    ExtModLtdDURATION

    Fund characteristicsBloombergBarclays 1-3

    Year USGovernment/Credit

    Index1Fund

    Fund distributionInstitutional classAs of 3-31-18

    1.94 years1.87 yearsEffective duration

    47.33%Portfolio turnover

    1,519310Number of holdings

    2.34%30-day SEC yield4

    2.30%30-day SECunsubsidized yield4

    Fund informationAdvisor: Wells Fargo Funds Management, LLCSub-Advisor: Wells Capital Management IncorporatedFund managers/years of experience: Jay N. Mueller, CFA (35); Christopher Y. Kauffman, CFA (21);Noah Wise, CFA (16)Fund Inception Date: 8-31-87

    Institutional class

    8-31-99Class inception dateMonthly

    Daily AccrualDistribution frequency

    August 31Fiscal year-end

    0.46%Net expense ratio

    $8.66Net asset value

    $8.71/$8.65YTD high-low NAV

    $233.71/$449.66Class/fund assets ($M)

    As of March 31, 2018 Fact sheet wellsfargofunds.com

    ShortTerm Bond FundAsset class: Fixed Income

    Bond values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. Changes in market conditions and government policiesmay lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the fund. In general, when interest rates rise, bond values fall and investors may lose principalvalue. Interest-rate changes and their impact on the fund and its share price can be sudden and unpredictable. Loans are subject to risks similar to those associated with other below-investment-grade bondinvestments, such as credit risk (for example, risk of issuer default), below-investment-grade bond risk (for example, risk of greater volatility in value), and risk that the loan may become illiquid or difficult toprice. The use of derivatives may reduce returns and/or increase volatility. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). Foreign investmentsare especially volatile and can rise or fall dramatically due to differences in the political and economic conditions of the host country. These risks are generally intensified in emerging markets. This fund isexposed to high-yield securities risk and mortgage- and asset-backed securities risk. Consult the funds prospectus for additional information on these and other risks. The Morningstar Rating for funds, or star rating, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts)with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar risk-adjusted return measure thataccounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment forsales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall MorningstarRating for a managed product is derived from a weighted average of the performance figures associated with its 3-, 5-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% 3-year rating for 3659months of total returns, 60% 5-year rating/40% 3-year rating for 60119 months of total returns, and 50% 10-year rating/30% 5-year rating/20% 3-year rating for 120 or more months of total returns. While the 10-year overallstar rating formula seems to give the most weight to the 10-year period, the most recent 3-year period actually has the greatest impact because it is included in all three rating periods. Across U.S.-domiciled Short-Term Bondfunds, the ShortTerm Bond Fund received 3 stars among 455 funds, 4 stars among 393 funds, and 4 stars among 255 funds for the 3-, 5-, and 10-year periods, respectively. The Morningstar Rating is for the Institutional Classonly; other classes may have different performance characteristics. Past performance is no guarantee of future results.1. The Bloomberg Barclays U.S. 1-3 Year Government/Credit Bond Index is the one- to three-year component of the Bloomberg Barclays U.S. Government/Credit Bond Index that includes securities in the Government andCredit Indexes. The Government Index includes Treasuries (that is, public obligations of the U.S. Treasury that have remaining maturities of more than one year) and agencies (that is, publicly issued debt of U.S.government agencies, quasi-federal corporations, and corporate or foreign debt guaranteed by the U.S. government).The Credit Index includes publicly issued U.S. corporate and foreign debentures and secured notes thatmeet specified maturity, liquidity, and quality requirements. You cannot invest directly in an index. 2. The Lipper averages are compiled by Lipper, Inc., an independent mutual fund research and rating service. Each Lipperaverage represents a universe of funds that are similar in investment objective. You cannot invest directly in a Lipper average. 3. Placement within the Morningstar Fixed-Income Style Box is based on two variables: thevertical axis shows the credit quality of the long bonds owned and the horizontal axis shows interest-rate sensitivity as measured by a bond's effective duration. For credit quality, Morningstar combines the credit ratinginformation provided by the fund companies with an average default rate calculation to come up with a weighted-average credit quality. The weighted-average credit quality is currently a letter that roughly correspondsto the scale used by a leading NRSRO. Bond funds are assigned a style box placement of low, medium, or high based on their average credit quality. Funds with a low credit quality are those whose weighted-average creditquality is determined to be less than BBB-, medium are those less than AA- but greater or equal to BBB-, and high are those with a weighted average credit quality of AA- or higher. When classifying a bond portfolio,Morningstar first maps the NRSRO credit ratings of the underlying holdings to their respective default rates (as determined by Morningstars analysis of actual historical default rates). Morningstar then averages thesedefault rates to determine the average default rate for the entire bond fund. Finally, Morningstar maps this average default rate to its corresponding credit rating along a convex curve. In these cases static breakpoints areutilized. These breakpoints are as follows: (i) Limited: 4.5 years or less; (ii) Moderate: more than 4.5 years but less than 7 years; and (iii) Extensive: more than 7 years. In addition, for non-US taxable and non-US domiciledfixed income funds static duration breakpoints are used: (i) Limited: less than or equal to 3.5 years; (ii)Moderate: greater than 3.5 and less than equal to 6 years; (iii) Extensive: greater than 6 years. 4. The 30-day SEC yield iscalculated with a standardized formula mandated by the SEC. The formula is based on maximum offering price per share and includes the effect of any fee waivers. Without waivers, yields would be reduced. The 30-dayunsubsidized SEC yield does not reflect waivers in effect. A fund's actual distribution rate will differ from the SEC yield and any income distributions from the fund may be higher or lower than the SEC yield.

    Carefully consider a funds investment objectives, risks, charges, and expenses before investing. For a current prospectus and, if available, a summary prospectus, containing this and other information,visit wellsfargofunds.com. Read it carefully before investing.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. The funds are distributed by Wells Fargo FundsDistributor, 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 generalinformational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kindincluding a recommendation for any specific investment, strategy, or plan. 310937-IAFS063 04-18

    2018 Wells Fargo Funds Management, LLC. All rights reserved.

    http://www.wellsfargofunds.comhttp://www.wellsfargofunds.comhttp://wellsfargofunds.comhttp://wellsfargofunds.com

    /ColorImageDict > /JPEG2000ColorACSImageDict > /JPEG2000ColorImageDict > /AntiAliasGrayImages false /CropGrayImages false /GrayImageMinResolution 300 /GrayImageMinResolutionPolicy /OK /DownsampleGrayImages true /GrayImageDownsampleType /Bicubic /GrayImageResolution 300 /GrayImageDepth -1 /GrayImageMinDownsampleDepth 2 /GrayImageDownsampleThreshold 1.50000 /EncodeGrayImages true /GrayImageFilter /DCTEncode /AutoFilterGrayImages true /GrayImageAutoFilterStrategy /JPEG /GrayACSImageDict > /GrayImageDict > /JPEG2000GrayACSImageDict > /JPEG2000GrayImageDict > /AntiAliasMonoImages false /CropMonoImages false /MonoImageMinResolution 1200 /MonoImageMinResolutionPolicy /OK /DownsampleMonoImages true /MonoImageDownsampleType /Bicubic /MonoImageResolution 1200 /MonoImageDepth -1 /MonoImageDownsampleThreshold 1.50000 /EncodeMonoImages true /MonoImageFilter /CCITTFaxEncode /MonoImageDict > /AllowPSXObjects false /CheckCompliance [ /None ] /PDFX1aCheck false /PDFX3Check false /PDFXCompliantPDFOnly false /PDFXNoTrimBoxError true /PDFXTrimBoxToMediaBoxOffset [ 0.00000 0.00000 0.00000 0.00000 ] /PDFXSetBleedBoxToMediaBox true /PDFXBleedBoxToTrimBoxOffset [ 0.00000 0.00000 0.00000 0.00000 ] /PDFXOutputIntentProfile () /PDFXOutputConditionIdentifier () /PDFXOutputCondition () /PDFXRegistryName () /PDFXTrapped /False

    /CreateJDFFile false /Description > /Namespace [ (Adobe) (Common) (1.0) ] /OtherNamespaces [ > /FormElements false /GenerateStructure false /IncludeBookmarks false /IncludeHyperlinks false /IncludeInteractive false /IncludeLayers false /IncludeProfiles false /MarksOffset 6 /MarksWeight 0.250000 /MultimediaHandling /UseObjectSettings /Namespace [ (Adobe) (CreativeSuite) (2.0) ] /PDFXOutputIntentProfileSelector /DocumentCMYK /PageMarksFile /RomanDefault /PreserveEditing true /UntaggedCMYKHandling /LeaveUntagged /UntaggedRGBHandling /UseDocumentProfile /UseDocumentBleed false >> > ]>> setdistillerparams> setpagedevice

Recommended

View more >