AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON MAY 30, 2013
1933 Act No. 333-74295
1940 Act No. 811-09253
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [X]
Pre-Effective Amendment No. [ ]
Post-Effective Amendment No. 298 [X]
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 [X]
Pre-Effective Amendment No. [ ]
Post-Effective Amendment No. 299 [X]
WELLS FARGO FUNDS TRUST
(Exact Name of Registrant as Specified in Charter)
525 Market Street
San Francisco, California 94105
(Address of Principal Executive Offices)
(800) 222-8222
(Registrant's Telephone Number)
C. David Messman
Wells Fargo Funds Management, LLC
525 Market Street, 12th Floor
San Francisco, California 94105
(Name and Address of Agent for Service)
With a copy to:
Marco E. Adelfio, Esq.
Goodwin Procter LLP
901 New York Avenue, N.W.
Washington, D.C. 20001
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It is propsed that this filing will become effective: (check appropriate box)
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immediately upon filing pursuant to paragraph (b)
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X
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on June 1, 2013 pursuant to paragraph (b)
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60 days after filing pursuant to paragraph (a)(i)
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on [ ] pursuant to paragraph (a)(i)
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75 days after filing pursuant to paragraph (a)(ii)
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on [ ] pursuant to paragraph (a)(ii) of Rule 485
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If appropriate, check the following box:
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this post-effective amendment designates a new effective date for a previously filed post-effective amendment
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Explanatory Note: This Post-Effective Amendment No. 298 to the Registration Statement of Wells Fargo Funds Trust (the "Trust")
is being filed primarily to change the Institutional Class of the Wells Fargo Advantage Dow Jones Target Date Funds to Class
R6, to add the audited financial statements and certain related financial information for the fiscal period ended February
28, 2013, for Class R6 (formerly, Institutional Class) of the Wells Fargo Advantage Dow Jones Target Date Funds, and to make
certain other non-material changes to the Registration Statement.
WELLS FARGO FUNDS TRUST
PART A
WELLS FARGO ADVANTAGE DOW JONES TARGET DATE FUNDS
PROSPECTUS
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Wells Fargo Advantage Funds
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June 1, 2013
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Dow Jones Target Date Funds
Prospectus
Class R6* (formerly, Institutional Class)
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Target Today Fund
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WOTDX
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Target 2010 Fund
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WFOAX
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Target 2015 Fund
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WFSCX
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Target 2020 Fund
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WFOBX
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Target 2025 Fund
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WFTYX
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Target 2030 Fund
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WFOOX
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Target 2035 Fund
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WFQRX
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Target 2040 Fund
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WFOSX
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Target 2045 Fund
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WFQPX
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Target 2050 Fund
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WFQFX
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Target 2055 Fund
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WFQUX
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*Class R6 shares are only available to participants in certain retirement plans.
As with all mutual funds, the U.S. Securities and Exchange Commission has not approved or disapproved these securities or
passed upon the accuracy or adequacy of this Prospectus. Anyone who tells you otherwise is committing a crime.
Fund shares are NOT deposits or other obligations of, or guaranteed by, Wells Fargo Bank, N.A., its affiliates or any other
depository institution. Fund shares are not insured or guaranteed by the U.S. Government, the Federal Deposit Insurance Corporation
or any other government agency and may lose value.
Table of Contents
Target Today Fund Summary
Investment Objective
The Fund seeks to approximate, before fees and expenses, the total return of the Dow Jones Target Today Index
SM
.
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.
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Shareholder Fees (fees paid directly from your investment)
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Maximum sales charge (load) imposed on purchases (as a percentage of offering price)
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None
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Maximum deferred sales charge (load) (as a percentage of offering price)
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None
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Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
1
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Management Fees
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0.24%
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Distribution (12b-1) Fees
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0.00%
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Other Expenses
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0.11%
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Acquired Fund Fees and Expenses
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0.25%
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Total Annual Fund Operating Expenses
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0.60%
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Fee Waiver
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0.30%
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Total Annual Fund Operating Expenses After Fee Waiver
2
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0.30%
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1.
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Expenses have been adjusted as necessary from amounts incurred during the Fund's most recent fiscal year to reflect current
fees and expenses.
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2.
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The Adviser has committed through June 30, 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. Fees from the
underlying master portfolio(s) are included in 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.
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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:
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After:
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1 Year
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$31
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3 Years
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$162
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5 Years
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$305
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10 Years
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$721
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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 39% of the average value of
its portfolio.
Principal Investment Strategies
Under normal circumstances, we invest:
■
at least 80% of the Fund's total assets in equity, fixed income and money market securities designed to approximate the holdings
and weightings of the securities in the Dow Jones Target Today Index
SM
.
The Fund is a gateway fund that invests in various master portfolios which in turn invest in a combination of equity, fixed
income and money market securities using an asset allocation strategy designed to replicate, before fees and expenses, the
total return of the Dow Jones Target Today Index
SM
. Similar to the methodology of the index, the Fund's investment strategy is to maintain a relatively fixed level of potential
market risk exposure over time by re-allocating the Fund's assets among these major asset classes: equity, fixed income and
money market instruments. The Wells Fargo Advantage Dow Jones Target Today Fund is the most conservative Fund within the Wells
Fargo Advantage Dow Jones Target Date Funds series. Within the series, each Fund's target year serves as a guide to the relative
market risk exposure of the Fund's allocation of assets among equity, fixed income and money market instruments asset classes,
and your decision to invest in this or another Wells Fargo Advantage Dow Jones Target Date Fund with a different target year
and market risk exposure depends upon your individual risk tolerance, among other factors.
The "Today" designation in the Fund's name corresponds to the naming convention of the Dow Jones Target Today Index
SM
, an index designed to represent the targeted level of relative market risk exposure 10 years past a dated Fund's targeted
year. The principal value of an investor's investment in the Fund is not guaranteed, and an investor may experience losses,
at any time. In addition, there is no guarantee that an investor's investment in the Fund will provide income adequate to
meet the investor's goals.
Currently, the master portfolios in which the Fund invests are the Wells Fargo Advantage Diversified Stock Portfolio, the
Wells Fargo Advantage Diversified Fixed Income Portfolio, and the Wells Fargo Advantage Short-Term Investment Portfolio. The
Diversified Stock Portfolio and the Diversified Fixed Income Portfolio seek to approximate, before fees and expenses, the
total return of the respective equity and fixed income portions of the Dow Jones Target Today Index
SM
by investing in the securities that comprise the sub-indexes representing the equity and fixed income asset classes, respectively,
which securities may include, among others, growth and value stocks, foreign and emerging market equity investments, and securities
of smaller companies, as well as debt securities, including corporate bonds, mortgage- and asset-backed securities and U.S.
and foreign government obligations. The Diversified Stock Portfolio may also use derivatives, such as stock index futures
in order to manage movements of the portfolio against certain indexes. The Diversified Stock Portfolio and the Diversified
Fixed Income Portfolio use an optimization process, which seeks to balance the replication of index performance and security
transaction costs. The Fund invests in the Short-Term Investment Portfolio to represent the cash component of the Dow Jones
Target Date Indexes, but unlike the cash component of the Dow Jones Target Today Index
SM
, the Portfolio does not seek to replicate the Barclays 1-3 Month Treasury-Bill Index. This could result in potential tracking
error between the performances of the Fund and the Dow Jones Target Today Index
SM
. As of February 28, 2013, the Dow Jones Target Today Index
SM
included equity, fixed income and money market securities in the weights of 15%, 80% and 5%, respectively, which represent
the percentage breakdown of the Fund's assets across the Diversified Stock, Diversified Fixed Income and Short-Term Investment
Portfolios, respectively, as of such date, and may change over time. The Fund reserves the right to change its percentage
allocation among the Portfolios as we deem necessary to meet its investment objective.
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.
Allocation Methodology Risk.
A Fund is subject to the risk that the allocation methodology of the Dow Jones Target Date Index will not meet an investor's
goals because it will not eliminate the investment volatility that could reduce the amount of funds available for an investor
to withdraw when the investor intends to begin to withdraw a portion or all of the investor's investment in the Fund or it
may over-emphasize conservative investments designed to ensure capital conservation and current income, which may ultimately
prevent the investor from achieving the investor's income and appreciation goals.
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.
Emerging Markets Risk.
Foreign investment risks are typically greater for securities in emerging markets, which can be more vulnerable to recessions,
currency volatility, inflation and market failure.
Foreign Investment Risk.
Foreign investments face the potential of heightened illiquidity, greater price volatility and adverse effects of political,
regulatory, tax, currency, economic or other macroeconomic developments.
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).
Growth Style Investment Risk.
Growth stocks may be more expensive relative to the values of other stocks and carry potential for significant volatility
and loss.
Index Tracking Risk.
The ability to track an index may be affected by, among other things, transaction costs and shareholder purchases and redemptions.
Issuer Risk.
The value of a security may decline because of adverse events or circumstances that directly relate to conditions at the
issuer or any entity providing it credit or liquidity support.
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.
There is no guarantee of the Fund's performance or that the Fund will meet its objective. The market value of your investment
may decline and you may suffer investment loss.
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.
Mortgage- and Asset-Backed Securities Risk.
Mortgage- and asset-backed securities may decline in value when defaults on the underlying mortgage or assets occur and may
exhibit additional volatility in periods of changing interest rates. When interest rates decline, the prepayment of mortgages
or assets underlying such securities may require the Fund to reinvest such prepaid funds at lower prevailing interest rates,
resulting in reduced returns.
Multi-Style Management Risk.
The management of the Fund's portfolio using different investment styles can result in higher transaction costs and lower
tax efficiency than other funds which adhere to a single investment style.
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.
Smaller Company Securities Risk.
Securities of companies with smaller market capitalizations tend to be more volatile and less liquid than larger company
stocks.
U.S. Government Obligations Risk.
U.S. Government obligations may be adversely affected by changes in interest rates, a default by, or decline in the credit
quality of, the U.S. Government, and may not be backed by the full faith and credit of the U.S. Government.
Value Style Investment Risk.
Value stocks may lose value and may be subject to prolonged depressed valuations.
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 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
Class R6
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Highest Quarter:
2nd Quarter 2003
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+7.21%
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Lowest Quarter:
3rd Quarter 2008
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-3.26%
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Year-to-date total return as of 3/31/2013 is +0.36%
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Average Annual Total Returns for the periods ended 12/31/2012
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Inception Date of Share Class
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1 Year
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5 Year
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10 Year
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Class R6
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6/30/2004
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4.99%
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4.78%
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5.57%
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Dow Jones Global Target Today Index (reflects no deduction for fees, expenses, or taxes)
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5.44%
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5.29%
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6.05%
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Barclays U.S. Aggregate Bond Index (reflects no deduction for fees, expenses, or taxes)
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4.21%
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5.95%
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5.18%
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Russell 3000® Index (reflects no deduction for fees, expenses, or taxes)
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16.42%
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2.04%
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7.68%
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Fund Management
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Adviser
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Sub-Adviser
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Portfolio Manager, Title/Managed Since
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Wells Fargo Funds Management, LLC
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Global Index Advisors, Inc.
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Rodney H. Alldredge
, Portfolio Manager / 2006
James P. Lauder
, Portfolio Manager / 2006
Paul T. Torregrosa, PhD
, Portfolio Manager / 2010
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Purchase and Sale of Fund Shares
Class R6 shares generally are available only to certain retirement plans, including: 401(k) plans, 457 plans, profit sharing
and money purchase pension plans, defined benefit plans, target benefit plans and non-qualified deferred compensation plans.
Class R6 shares also are generally available only to retirement plans where plan level or omnibus accounts are held on the
books of the Fund. Class R6 shares generally are not available to retail accounts.
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Institutions Purchasing Fund Shares
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Minimum Initial Investment
Class R6: Eligible investors are not subject to a minimum initial investment (financial intermediaries may require different
minimum investment amounts)
Minimum Additional Investment
Class R6: None (financial intermediaries may require different minimum additional investment amounts)
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Tax Information
By investing in a Fund through a tax-deferred retirement account, you will not be subject to tax on dividends and capital
gains distributions from the Fund or the sale of Fund shares if those amounts remain in the tax-deferred account. Distributions
taken from retirement plan accounts generally are taxable as ordinary income. For special rules concerning tax-deferred retirement
accounts, including applications, restrictions, tax advantages, and potential sales charge waivers, contact your investment
professional. To determine if a retirement plan may be appropriate for you and to obtain further information, consult your
tax adviser.
Target 2010 Fund Summary
Investment Objective
The Fund seeks to approximate, before fees and expenses, the total return of the Dow Jones Target 2010 Index
SM
.
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)
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None
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|
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
1
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|
|
|
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Management Fees
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0.24%
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Distribution (12b-1) Fees
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0.00%
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Other Expenses
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0.10%
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Acquired Fund Fees and Expenses
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0.26%
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Total Annual Fund Operating Expenses
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0.60%
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Fee Waiver
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0.28%
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Total Annual Fund Operating Expenses After Fee Waiver
2
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0.32%
|
|
1.
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Expenses have been adjusted as necessary from amounts incurred during the Fund's most recent fiscal year to reflect current
fees and expenses.
|
|
2.
|
The Adviser has committed through June 30, 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. Fees from the
underlying master portfolio(s) are included in 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:
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1 Year
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$33
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3 Years
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$164
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5 Years
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$307
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10 Years
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$723
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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 37% of the average value of
its portfolio.
Principal Investment Strategies
Under normal circumstances, we invest:
■
at least 80% of the Fund's total assets in equity, fixed income and money market securities designed to approximate the holdings
and weightings of the securities in the Dow Jones Target 2010 Index
SM
.
The Fund is a gateway fund that invests in various master portfolios which in turn invest in a combination of equity, fixed
income and money market securities using an asset allocation strategy designed to replicate, before fees and expenses, the
total return of the Dow Jones Target 2010 Index
SM
. Similar to the methodology of the index, the Fund's investment strategy is to gradually reduce the Fund's potential market
risk exposure over time by re-allocating the Fund's assets among these major asset classes: equity, fixed income and money
market instruments. Generally, the longer the Fund's time horizon, the more of its assets are allocated to equity securities
to pursue capital appreciation over the long term. As the Fund's time horizon shortens, it replaces some of its equity holdings
with fixed income and money market holdings to reduce market risk and price volatility and thereby generally becomes more
conservative in its asset allocation as the Fund's target year approaches and for the first 10 years after it arrives. The
Fund's target year serves as a guide to the relative market risk exposure of the Fund, and your decision to invest in this
Fund or another Wells Fargo Advantage Dow Jones Target Date Fund with a different target year and market risk exposure depends
upon your individual risk tolerance, among other factors.
The "target year" designated in the Fund's name is the same as the year in the name of the Dow Jones Target 2010 Index
SM
. Although the individual goals of each investor with respect to a target year vary, an investor may intend for the target
year to represent the approximate year in or around which the investor plans to begin withdrawing a portion or all of the
investor's investment in the Fund and/or stop making new investments to the Fund. The Fund's goals may not align with the
goals of an investor that seeks to begin to withdraw a portion or all of the investor's investment in the Fund significantly
before or after the Fund's target year. In this respect, the Fund's goals may more closely align with an investor that intends
to begin gradually withdrawing the value of the investor's account on or around the target year. In addition, the Fund will
not have its most conservative asset allocation in the Fund's target year, which may not align with an investor's plan for
withdrawing the investor's investment. The principal value of an investor's investment in the Fund is not guaranteed, and
an investor may experience losses, at any time, including near, at or after the target year designated in the Fund's name.
In addition, there is no guarantee that an investor's investment in the Fund will provide income at, and through the years
following, the target year in the Fund's name in amounts adequate to meet the investor's goals.
Currently, the master portfolios in which the Fund invests are the Wells Fargo Advantage Diversified Stock Portfolio, the
Wells Fargo Advantage Diversified Fixed Income Portfolio, and the Wells Fargo Advantage Short-Term Investment Portfolio. The
Diversified Stock Portfolio and the Diversified Fixed Income Portfolio seek to approximate, before fees and expenses, the
total return of the respective equity and fixed income portions of the Dow Jones Target 2010 Index
SM
by investing in the securities that comprise the sub-indexes representing the equity and fixed income asset classes, respectively,
which securities may include, among others, growth and value stocks, foreign and emerging market equity investments, and securities
of smaller companies, as well as debt securities, including corporate bonds, mortgage- and asset-backed securities and U.S.
and foreign government obligations. The Diversified Stock Portfolio may also use derivatives, such as stock index futures
in order to manage movements of the portfolio against certain indexes. The Diversified Stock Portfolio and the Diversified
Fixed Income Portfolio use an optimization process, which seeks to balance the replication of index performance and security
transaction costs. The Fund invests in the Short-Term Investment Portfolio to represent the cash component of the Dow Jones
Target Date Indexes, but unlike the cash component of the Dow Jones Target 2010 Index
SM
, the Portfolio does not seek to replicate the Barclays 1-3 Month Treasury-Bill Index. This could result in potential tracking
error between the performances of the Fund and the Dow Jones Target 2010 Index
SM
. As the Fund has now reached its target year, its risk exposure approaches 27% of the risk of the global equity market. The
Fund will not reach its lowest risk exposure of 20% of the risk of the global equity market until ten years past the Fund's
target year. To measure the Fund's risk and the risk of the global equity market, we use a statistical method known as below-mean
semi-variance, which quantifies portfolio risk levels by measuring only the below-average outcomes. This method is designed
to provide a more useful and nuanced picture of the Fund's risk profile. As of February 28, 2013, the Dow Jones Target 2010
Index
SM
included equity, fixed income and money market securities in the weights of 23%, 73% and 4%, respectively, which represent
the percentage breakdown of the Fund's assets across the Diversified Stock, Diversified Fixed Income and Short-Term Investment
Portfolios, respectively, as of such date, and may change over time. The Fund reserves the right to change its percentage
allocation among the Portfolios as we deem necessary to meet its investment objective.
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.
Allocation Methodology Risk.
A Fund is subject to the risk that the allocation methodology of the Dow Jones Target Date Index will not meet an investor's
goals because it will not eliminate the investment volatility that could reduce the amount of funds available for an investor
to withdraw when the investor intends to begin to withdraw a portion or all of the investor's investment in the Fund or it
may over-emphasize conservative investments designed to ensure capital conservation and current income, which may ultimately
prevent the investor from achieving the investor's income and appreciation goals.
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.
Emerging Markets Risk.
Foreign investment risks are typically greater for securities in emerging markets, which can be more vulnerable to recessions,
currency volatility, inflation and market failure.
Foreign Investment Risk.
Foreign investments face the potential of heightened illiquidity, greater price volatility and adverse effects of political,
regulatory, tax, currency, economic or other macroeconomic developments.
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).
Growth Style Investment Risk.
Growth stocks may be more expensive relative to the values of other stocks and carry potential for significant volatility
and loss.
Index Tracking Risk.
The ability to track an index may be affected by, among other things, transaction costs and shareholder purchases and redemptions.
Issuer Risk.
The value of a security may decline because of adverse events or circumstances that directly relate to conditions at the
issuer or any entity providing it credit or liquidity support.
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.
There is no guarantee of the Fund's performance or that the Fund will meet its objective. The market value of your investment
may decline and you may suffer investment loss.
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.
Mortgage- and Asset-Backed Securities Risk.
Mortgage- and asset-backed securities may decline in value when defaults on the underlying mortgage or assets occur and may
exhibit additional volatility in periods of changing interest rates. When interest rates decline, the prepayment of mortgages
or assets underlying such securities may require the Fund to reinvest such prepaid funds at lower prevailing interest rates,
resulting in reduced returns.
Multi-Style Management Risk.
The management of the Fund's portfolio using different investment styles can result in higher transaction costs and lower
tax efficiency than other funds which adhere to a single investment style.
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.
Smaller Company Securities Risk.
Securities of companies with smaller market capitalizations tend to be more volatile and less liquid than larger company
stocks.
U.S. Government Obligations Risk.
U.S. Government obligations may be adversely affected by changes in interest rates, a default by, or decline in the credit
quality of, the U.S. Government, and may not be backed by the full faith and credit of the U.S. Government.
Value Style Investment Risk.
Value stocks may lose value and may be subject to prolonged depressed valuations.
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 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
Class R6
|
Highest Quarter:
2nd Quarter 2003
|
+9.30%
|
|
Lowest Quarter:
3rd Quarter 2008
|
-5.48%
|
|
Year-to-date total return as of 3/31/2013 is +0.97%
|
|
|
Average Annual Total Returns for the periods ended 12/31/2012
|
|
|
Inception Date of Share Class
|
1 Year
|
5 Year
|
10 Year
|
|
Class R6
|
6/30/2004
|
6.06%
|
3.93%
|
6.01%
|
|
Dow Jones Global Target 2010 Index (reflects no deduction for fees, expenses, or taxes)
|
|
6.40%
|
4.42%
|
7.25%
|
|
Barclays U.S. Aggregate Bond Index (reflects no deduction for fees, expenses, or taxes)
|
|
4.21%
|
5.95%
|
5.18%
|
|
Russell 3000® Index (reflects no deduction for fees, expenses, or taxes)
|
|
16.42%
|
2.04%
|
7.68%
|
Fund Management
|
Adviser
|
Sub-Adviser
|
Portfolio Manager, Title/Managed Since
|
|
Wells Fargo Funds Management, LLC
|
Global Index Advisors, Inc.
|
Rodney H. Alldredge
, Portfolio Manager / 2006
James P. Lauder
, Portfolio Manager / 2006
Paul T. Torregrosa, PhD
, Portfolio Manager / 2010
|
Purchase and Sale of Fund Shares
Class R6 shares generally are available only to certain retirement plans, including: 401(k) plans, 457 plans, profit sharing
and money purchase pension plans, defined benefit plans, target benefit plans and non-qualified deferred compensation plans.
Class R6 shares also are generally available only to retirement plans where plan level or omnibus accounts are held on the
books of the Fund. Class R6 shares generally are not available to retail accounts.
|
Institutions Purchasing Fund Shares
|
|
Minimum Initial Investment
Class R6: Eligible investors are not subject to a minimum initial investment (financial intermediaries may require different
minimum investment amounts)
Minimum Additional Investment
Class R6: None (financial intermediaries may require different minimum additional investment amounts)
|
Tax Information
By investing in a Fund through a tax-deferred retirement account, you will not be subject to tax on dividends and capital
gains distributions from the Fund or the sale of Fund shares if those amounts remain in the tax-deferred account. Distributions
taken from retirement plan accounts generally are taxable as ordinary income. For special rules concerning tax-deferred retirement
accounts, including applications, restrictions, tax advantages, and potential sales charge waivers, contact your investment
professional. To determine if a retirement plan may be appropriate for you and to obtain further information, consult your
tax adviser.
Target 2015 Fund Summary
Investment Objective
The Fund seeks to approximate, before fees and expenses, the total return of the Dow Jones Target 2015 Index
SM
.
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)
1
|
|
|
|
|
Management Fees
|
0.24%
|
|
Distribution (12b-1) Fees
|
0.00%
|
|
Other Expenses
|
0.10%
|
|
Acquired Fund Fees and Expenses
|
0.26%
|
|
Total Annual Fund Operating Expenses
|
0.60%
|
|
Fee Waiver
|
0.27%
|
|
Total Annual Fund Operating Expenses After Fee Waiver
2
|
0.33%
|
|
1.
|
Expenses have been adjusted as necessary from amounts incurred during the Fund's most recent fiscal year to reflect current
fees and expenses.
|
|
2.
|
The Adviser has committed through June 30, 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. Fees from the
underlying master portfolio(s) are included in 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
|
$34
|
|
3 Years
|
$165
|
|
5 Years
|
$308
|
|
10 Years
|
$724
|
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 35% of the average value of
its portfolio.
Principal Investment Strategies
Under normal circumstances, we invest:
■
at least 80% of the Fund's total assets in equity, fixed income and money market securities designed to approximate the holdings
and weightings of the securities in the Dow Jones Target 2015 Index
SM
.
The Fund is a gateway fund that invests in various master portfolios which in turn invest in a combination of equity, fixed
income and money market securities using an asset allocation strategy designed to replicate, before fees and expenses, the
total return of the Dow Jones Target 2015 Index
SM
. Similar to the methodology of the index, the Fund's investment strategy is to gradually reduce the Fund's potential market
risk exposure over time by re-allocating the Fund's assets among these major asset classes: equity, fixed income and money
market instruments. Generally, the longer the Fund's time horizon, the more of its assets are allocated to equity securities
to pursue capital appreciation over the long term. As the Fund's time horizon shortens, it replaces some of its equity holdings
with fixed income and money market holdings to reduce market risk and price volatility and thereby generally becomes more
conservative in its asset allocation as the Fund's target year approaches and for the first 10 years after it arrives. The
Fund's target year serves as a guide to the relative market risk exposure of the Fund, and your decision to invest in this
Fund or another Wells Fargo Advantage Dow Jones Target Date Fund with a different target year and market risk exposure depends
upon your individual risk tolerance, among other factors.
The "target year" designated in the Fund's name is the same as the year in the name of the Dow Jones Target 2015 Index
SM
. Although the individual goals of each investor with respect to a target year vary, an investor may intend for the target
year to represent the approximate year in or around which the investor plans to begin withdrawing a portion or all of the
investor's investment in the Fund and/or stop making new investments to the Fund. The Fund's goals may not align with the
goals of an investor that seeks to begin to withdraw a portion or all of the investor's investment in the Fund significantly
before or after the Fund's target year. In this respect, the Fund's goals may more closely align with an investor that intends
to begin gradually withdrawing the value of the investor's account on or around the target year. In addition, the Fund will
not have its most conservative asset allocation in the Fund's target year, which may not align with an investor's plan for
withdrawing the investor's investment. The principal value of an investor's investment in the Fund is not guaranteed, and
an investor may experience losses, at any time, including near, at or after the target year designated in the Fund's name.
In addition, there is no guarantee that an investor's investment in the Fund will provide income at, and through the years
following, the target year in the Fund's name in amounts adequate to meet the investor's goals.
Currently, the master portfolios in which the Fund invests are the Wells Fargo Advantage Diversified Stock Portfolio, the
Wells Fargo Advantage Diversified Fixed Income Portfolio, and the Wells Fargo Advantage Short-Term Investment Portfolio. The
Diversified Stock Portfolio and the Diversified Fixed Income Portfolio seek to approximate, before fees and expenses, the
total return of the respective equity and fixed income portions of the Dow Jones Target 2015 Index
SM
by investing in the securities that comprise the sub-indexes representing the equity and fixed income asset classes, respectively,
which securities may include, among others, growth and value stocks, foreign and emerging market equity investments, and securities
of smaller companies, as well as debt securities, including corporate bonds, mortgage- and asset-backed securities and U.S.
and foreign government obligations. The Diversified Stock Portfolio may also use derivatives, such as stock index futures
in order to manage movements of the portfolio against certain indexes. The Diversified Stock Portfolio and the Diversified
Fixed Income Portfolio use an optimization process, which seeks to balance the replication of index performance and security
transaction costs. The Fund invests in the Short-Term Investment Portfolio to represent the cash component of the Dow Jones
Target Date Indexes, but unlike the cash component of the Dow Jones Target 2015 Index
SM
, the Portfolio does not seek to replicate the Barclays 1-3 Month Treasury-Bill Index. This could result in potential tracking
error between the performances of the Fund and the Dow Jones Target 2015 Index
SM
. By the time the Fund reaches its target year in 2015, its risk exposure will approach 28% of the risk of the global equity
market. The Fund will not reach its lowest risk exposure of 20% of the risk of the global equity market until ten years past
the Fund's target year. To measure the Fund's risk and the risk of the global equity market, we use a statistical method known
as below-mean semi-variance, which quantifies portfolio risk levels by measuring only the below-average outcomes. This method
is designed to provide a more useful and nuanced picture of the Fund's risk profile. As of February 28, 2013, the Dow Jones
Target 2015 Index
SM
included equity, fixed income and money market securities in the weights of 32%, 64% and 4%, respectively, which represent
the percentage breakdown of the Fund's assets across the Diversified Stock, Diversified Fixed Income and Short-Term Investment
Portfolios, respectively, as of such date, and may change over time. The Fund reserves the right to change its percentage
allocation among the Portfolios as we deem necessary to meet its investment objective.
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.
Allocation Methodology Risk.
A Fund is subject to the risk that the allocation methodology of the Dow Jones Target Date Index will not meet an investor's
goals because it will not eliminate the investment volatility that could reduce the amount of funds available for an investor
to withdraw when the investor intends to begin to withdraw a portion or all of the investor's investment in the Fund or it
may over-emphasize conservative investments designed to ensure capital conservation and current income, which may ultimately
prevent the investor from achieving the investor's income and appreciation goals.
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.
Emerging Markets Risk.
Foreign investment risks are typically greater for securities in emerging markets, which can be more vulnerable to recessions,
currency volatility, inflation and market failure.
Foreign Investment Risk.
Foreign investments face the potential of heightened illiquidity, greater price volatility and adverse effects of political,
regulatory, tax, currency, economic or other macroeconomic developments.
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).
Growth Style Investment Risk.
Growth stocks may be more expensive relative to the values of other stocks and carry potential for significant volatility
and loss.
Index Tracking Risk.
The ability to track an index may be affected by, among other things, transaction costs and shareholder purchases and redemptions.
Issuer Risk.
The value of a security may decline because of adverse events or circumstances that directly relate to conditions at the
issuer or any entity providing it credit or liquidity support.
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.
There is no guarantee of the Fund's performance or that the Fund will meet its objective. The market value of your investment
may decline and you may suffer investment loss.
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.
Mortgage- and Asset-Backed Securities Risk.
Mortgage- and asset-backed securities may decline in value when defaults on the underlying mortgage or assets occur and may
exhibit additional volatility in periods of changing interest rates. When interest rates decline, the prepayment of mortgages
or assets underlying such securities may require the Fund to reinvest such prepaid funds at lower prevailing interest rates,
resulting in reduced returns.
Multi-Style Management Risk.
The management of the Fund's portfolio using different investment styles can result in higher transaction costs and lower
tax efficiency than other funds which adhere to a single investment style.
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.
Smaller Company Securities Risk.
Securities of companies with smaller market capitalizations tend to be more volatile and less liquid than larger company
stocks.
U.S. Government Obligations Risk.
U.S. Government obligations may be adversely affected by changes in interest rates, a default by, or decline in the credit
quality of, the U.S. Government, and may not be backed by the full faith and credit of the U.S. Government.
Value Style Investment Risk.
Value stocks may lose value and may be subject to prolonged depressed valuations.
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 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
Class R6
|
Highest Quarter:
2nd Quarter 2009
|
+10.20%
|
|
Lowest Quarter:
4th Quarter 2008
|
-7.21%
|
|
Year-to-date total return as of 3/31/2013 is +1.99%
|
|
|
Average Annual Total Returns for the periods ended 12/31/2012
|
|
|
Inception Date of Share Class
|
1 Year
|
5 Year
|
Performance Since 6/29/2007
|
|
Class R6
|
6/29/2007
|
7.29%
|
3.42%
|
3.65%
|
|
Dow Jones Global Target 2015 Index (reflects no deduction for fees, expenses, or taxes)
|
|
7.65%
|
3.85%
|
4.15%
|
|
Barclays U.S. Aggregate Bond Index (reflects no deduction for fees, expenses, or taxes)
|
|
4.21%
|
5.95%
|
6.49%
|
|
Russell 3000® Index (reflects no deduction for fees, expenses, or taxes)
|
|
16.42%
|
2.04%
|
1.51%
|
Fund Management
|
Adviser
|
Sub-Adviser
|
Portfolio Manager, Title/Managed Since
|
|
Wells Fargo Funds Management, LLC
|
Global Index Advisors, Inc.
|
Rodney H. Alldredge
, Portfolio Manager / 2007
James P. Lauder
, Portfolio Manager / 2007
Paul T. Torregrosa, PhD
, Portfolio Manager / 2010
|
Purchase and Sale of Fund Shares
Class R6 shares generally are available only to certain retirement plans, including: 401(k) plans, 457 plans, profit sharing
and money purchase pension plans, defined benefit plans, target benefit plans and non-qualified deferred compensation plans.
Class R6 shares also are generally available only to retirement plans where plan level or omnibus accounts are held on the
books of the Fund. Class R6 shares generally are not available to retail accounts.
|
Institutions Purchasing Fund Shares
|
|
Minimum Initial Investment
Class R6: Eligible investors are not subject to a minimum initial investment (financial intermediaries may require different
minimum investment amounts)
Minimum Additional Investment
Class R6: None (financial intermediaries may require different minimum additional investment amounts)
|
Tax Information
By investing in a Fund through a tax-deferred retirement account, you will not be subject to tax on dividends and capital
gains distributions from the Fund or the sale of Fund shares if those amounts remain in the tax-deferred account. Distributions
taken from retirement plan accounts generally are taxable as ordinary income. For special rules concerning tax-deferred retirement
accounts, including applications, restrictions, tax advantages, and potential sales charge waivers, contact your investment
professional. To determine if a retirement plan may be appropriate for you and to obtain further information, consult your
tax adviser.
Target 2020 Fund Summary
Investment Objective
The Fund seeks to approximate, before fees and expenses, the total return of the Dow Jones Target 2020 Index
SM
.
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)
1
|
|
|
|
|
Management Fees
|
0.22%
|
|
Distribution (12b-1) Fees
|
0.00%
|
|
Other Expenses
|
0.10%
|
|
Acquired Fund Fees and Expenses
|
0.26%
|
|
Total Annual Fund Operating Expenses
|
0.58%
|
|
Fee Waiver
|
0.23%
|
|
Total Annual Fund Operating Expenses After Fee Waiver
2
|
0.35%
|
|
1.
|
Expenses have been adjusted as necessary from amounts incurred during the Fund's most recent fiscal year to reflect current
fees and expenses.
|
|
2.
|
The Adviser has committed through June 30, 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. Fees from the
underlying master portfolio(s) are included in 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
|
$36
|
|
3 Years
|
$163
|
|
5 Years
|
$301
|
|
10 Years
|
$704
|
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 32% of the average value of
its portfolio.
Principal Investment Strategies
Under normal circumstances, we invest:
■
at least 80% of the Fund's total assets in equity, fixed income and money market securities designed to approximate the holdings
and weightings of the securities in the Dow Jones Target 2020 Index
SM
.
The Fund is a gateway fund that invests in various master portfolios which in turn invest in a combination of equity, fixed
income and money market securities using an asset allocation strategy designed to replicate, before fees and expenses, the
total return of the Dow Jones Target 2020 Index
SM
. Similar to the methodology of the index, the Fund's investment strategy is to gradually reduce the Fund's potential market
risk exposure over time by re-allocating the Fund's assets among these major asset classes: equity, fixed income and money
market instruments. Generally, the longer the Fund's time horizon, the more of its assets are allocated to equity securities
to pursue capital appreciation over the long term. As the Fund's time horizon shortens, it replaces some of its equity holdings
with fixed income and money market holdings to reduce market risk and price volatility and thereby generally becomes more
conservative in its asset allocation as the Fund's target year approaches and for the first 10 years after it arrives. The
Fund's target year serves as a guide to the relative market risk exposure of the Fund, and your decision to invest in this
Fund or another Wells Fargo Advantage Dow Jones Target Date Fund with a different target year and market risk exposure depends
upon your individual risk tolerance, among other factors.
The "target year" designated in the Fund's name is the same as the year in the name of the Dow Jones Target 2020 Index
SM
. Although the individual goals of each investor with respect to a target year vary, an investor may intend for the target
year to represent the approximate year in or around which the investor plans to begin withdrawing a portion or all of the
investor's investment in the Fund and/or stop making new investments to the Fund. The Fund's goals may not align with the
goals of an investor that seeks to begin to withdraw a portion or all of the investor's investment in the Fund significantly
before or after the Fund's target year. In this respect, the Fund's goals may more closely align with an investor that intends
to begin gradually withdrawing the value of the investor's account on or around the target year. In addition, the Fund will
not have its most conservative asset allocation in the Fund's target year, which may not align with an investor's plan for
withdrawing the investor's investment. The principal value of an investor's investment in the Fund is not guaranteed, and
an investor may experience losses, at any time, including near, at or after the target year designated in the Fund's name.
In addition, there is no guarantee that an investor's investment in the Fund will provide income at, and through the years
following, the target year in the Fund's name in amounts adequate to meet the investor's goals.
Currently, the master portfolios in which the Fund invests are the Wells Fargo Advantage Diversified Stock Portfolio, the
Wells Fargo Advantage Diversified Fixed Income Portfolio, and the Wells Fargo Advantage Short-Term Investment Portfolio. The
Diversified Stock Portfolio and the Diversified Fixed Income Portfolio seek to approximate, before fees and expenses, the
total return of the respective equity and fixed income portions of the Dow Jones Target 2020 Index
SM
by investing in the securities that comprise the sub-indexes representing the equity and fixed income asset classes, respectively,
which securities may include, among others, growth and value stocks, foreign and emerging market equity investments, and securities
of smaller companies, as well as debt securities, including corporate bonds, mortgage- and asset-backed securities and U.S.
and foreign government obligations. The Diversified Stock Portfolio may also use derivatives, such as stock index futures
in order to manage movements of the portfolio against certain indexes. The Diversified Stock Portfolio and the Diversified
Fixed Income Portfolio use an optimization process, which seeks to balance the replication of index performance and security
transaction costs. The Fund invests in the Short-Term Investment Portfolio to represent the cash component of the Dow Jones
Target Date Indexes, but unlike the cash component of the Dow Jones Target 2020 Index
SM
, the Portfolio does not seek to replicate the Barclays 1-3 Month Treasury-Bill Index. This could result in potential tracking
error between the performances of the Fund and the Dow Jones Target 2020 Index
SM
. By the time the Fund reaches its target year in 2020, its risk exposure will approach 28% of the risk of the global equity
market. The Fund will not reach its lowest risk exposure of 20% of the risk of the global equity market until ten years past
the Fund's target year. To measure the Fund's risk and the risk of the global equity market, we use a statistical method known
as below-mean semi-variance, which quantifies portfolio risk levels by measuring only the below-average outcomes. This method
is designed to provide a more useful and nuanced picture of the Fund's risk profile. As of February 28, 2013, the Dow Jones
Target 2020 Index
SM
included equity, fixed income and money market securities in the weights of 44%, 52% and 4%, respectively, which represent
the percentage breakdown of the Fund's assets across the Diversified Stock, Diversified Fixed Income and Short-Term Investment
Portfolios, respectively, as of such date, and may change over time. The Fund reserves the right to change its percentage
allocation among the Portfolios as we deem necessary to meet its investment objective.
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.
Allocation Methodology Risk.
A Fund is subject to the risk that the allocation methodology of the Dow Jones Target Date Index will not meet an investor's
goals because it will not eliminate the investment volatility that could reduce the amount of funds available for an investor
to withdraw when the investor intends to begin to withdraw a portion or all of the investor's investment in the Fund or it
may over-emphasize conservative investments designed to ensure capital conservation and current income, which may ultimately
prevent the investor from achieving the investor's income and appreciation goals.
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.
Emerging Markets Risk.
Foreign investment risks are typically greater for securities in emerging markets, which can be more vulnerable to recessions,
currency volatility, inflation and market failure.
Foreign Investment Risk.
Foreign investments face the potential of heightened illiquidity, greater price volatility and adverse effects of political,
regulatory, tax, currency, economic or other macroeconomic developments.
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).
Growth Style Investment Risk.
Growth stocks may be more expensive relative to the values of other stocks and carry potential for significant volatility
and loss.
Index Tracking Risk.
The ability to track an index may be affected by, among other things, transaction costs and shareholder purchases and redemptions.
Issuer Risk.
The value of a security may decline because of adverse events or circumstances that directly relate to conditions at the
issuer or any entity providing it credit or liquidity support.
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.
There is no guarantee of the Fund's performance or that the Fund will meet its objective. The market value of your investment
may decline and you may suffer investment loss.
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.
Mortgage- and Asset-Backed Securities Risk.
Mortgage- and asset-backed securities may decline in value when defaults on the underlying mortgage or assets occur and may
exhibit additional volatility in periods of changing interest rates. When interest rates decline, the prepayment of mortgages
or assets underlying such securities may require the Fund to reinvest such prepaid funds at lower prevailing interest rates,
resulting in reduced returns.
Multi-Style Management Risk.
The management of the Fund's portfolio using different investment styles can result in higher transaction costs and lower
tax efficiency than other funds which adhere to a single investment style.
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.
Smaller Company Securities Risk.
Securities of companies with smaller market capitalizations tend to be more volatile and less liquid than larger company
stocks.
U.S. Government Obligations Risk.
U.S. Government obligations may be adversely affected by changes in interest rates, a default by, or decline in the credit
quality of, the U.S. Government, and may not be backed by the full faith and credit of the U.S. Government.
Value Style Investment Risk.
Value stocks may lose value and may be subject to prolonged depressed valuations.
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 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
Class R6
|
Highest Quarter:
2nd Quarter 2009
|
+12.48%
|
|
Lowest Quarter:
4th Quarter 2008
|
-10.72%
|
|
Year-to-date total return as of 3/31/2013 is +3.10%
|
|
|
Average Annual Total Returns for the periods ended 12/31/2012
|
|
|
Inception Date of Share Class
|
1 Year
|
5 Year
|
10 Year
|
|
Class R6
|
6/30/2004
|
8.94%
|
2.95%
|
6.60%
|
|
Dow Jones Global Target 2020 Index (reflects no deduction for fees, expenses, or taxes)
|
|
9.23%
|
3.32%
|
8.45%
|
|
Barclays U.S. Aggregate Bond Index (reflects no deduction for fees, expenses, or taxes)
|
|
4.21%
|
5.95%
|
5.18%
|
|
Russell 3000® Index (reflects no deduction for fees, expenses, or taxes)
|
|
16.42%
|
2.04%
|
7.68%
|
Fund Management
|
Adviser
|
Sub-Adviser
|
Portfolio Manager, Title/Managed Since
|
|
Wells Fargo Funds Management, LLC
|
Global Index Advisors, Inc.
|
Rodney H. Alldredge
, Portfolio Manager / 2006
James P. Lauder
, Portfolio Manager / 2006
Paul T. Torregrosa, PhD
, Portfolio Manager / 2010
|
Purchase and Sale of Fund Shares
Class R6 shares generally are available only to certain retirement plans, including: 401(k) plans, 457 plans, profit sharing
and money purchase pension plans, defined benefit plans, target benefit plans and non-qualified deferred compensation plans.
Class R6 shares also are generally available only to retirement plans where plan level or omnibus accounts are held on the
books of the Fund. Class R6 shares generally are not available to retail accounts.
|
Institutions Purchasing Fund Shares
|
|
Minimum Initial Investment
Class R6: Eligible investors are not subject to a minimum initial investment (financial intermediaries may require different
minimum investment amounts)
Minimum Additional Investment
Class R6: None (financial intermediaries may require different minimum additional investment amounts)
|
Tax Information
By investing in a Fund through a tax-deferred retirement account, you will not be subject to tax on dividends and capital
gains distributions from the Fund or the sale of Fund shares if those amounts remain in the tax-deferred account. Distributions
taken from retirement plan accounts generally are taxable as ordinary income. For special rules concerning tax-deferred retirement
accounts, including applications, restrictions, tax advantages, and potential sales charge waivers, contact your investment
professional. To determine if a retirement plan may be appropriate for you and to obtain further information, consult your
tax adviser.
Target 2025 Fund Summary
Investment Objective
The Fund seeks to approximate, before fees and expenses, the total return of the Dow Jones Target 2025 Index
SM
.
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)
1
|
|
|
|
|
Management Fees
|
0.23%
|
|
Distribution (12b-1) Fees
|
0.00%
|
|
Other Expenses
|
0.09%
|
|
Acquired Fund Fees and Expenses
|
0.27%
|
|
Total Annual Fund Operating Expenses
|
0.59%
|
|
Fee Waiver
|
0.24%
|
|
Total Annual Fund Operating Expenses After Fee Waiver
2
|
0.35%
|
|
1.
|
Expenses have been adjusted as necessary from amounts incurred during the Fund's most recent fiscal year to reflect current
fees and expenses.
|
|
2.
|
The Adviser has committed through June 30, 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. Fees from the
underlying master portfolio(s) are included in 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
|
$36
|
|
3 Years
|
$165
|
|
5 Years
|
$305
|
|
10 Years
|
$715
|
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 28% of the average value of
its portfolio.
Principal Investment Strategies
Under normal circumstances, we invest:
■
at least 80% of the Fund's total assets in equity, fixed income and money market securities designed to approximate the holdings
and weightings of the securities in the Dow Jones Target 2025 Index
SM
.
The Fund is a gateway fund that invests in various master portfolios which in turn invest in a combination of equity, fixed
income and money market securities using an asset allocation strategy designed to replicate, before fees and expenses, the
total return of the Dow Jones Target 2025 Index
SM
. Similar to the methodology of the index, the Fund's investment strategy is to gradually reduce the Fund's potential market
risk exposure over time by re-allocating the Fund's assets among these major asset classes: equity, fixed income and money
market instruments. Generally, the longer the Fund's time horizon, the more of its assets are allocated to equity securities
to pursue capital appreciation over the long term. As the Fund's time horizon shortens, it replaces some of its equity holdings
with fixed income and money market holdings to reduce market risk and price volatility and thereby generally becomes more
conservative in its asset allocation as the Fund's target year approaches and for the first 10 years after it arrives. The
Fund's target year serves as a guide to the relative market risk exposure of the Fund, and your decision to invest in this
Fund or another Wells Fargo Advantage Dow Jones Target Date Fund with a different target year and market risk exposure depends
upon your individual risk tolerance, among other factors.
The "target year" designated in the Fund's name is the same as the year in the name of the Dow Jones Target 2025 Index
SM
. Although the individual goals of each investor with respect to a target year vary, an investor may intend for the target
year to represent the approximate year in or around which the investor plans to begin withdrawing a portion or all of the
investor's investment in the Fund and/or stop making new investments to the Fund. The Fund's goals may not align with the
goals of an investor that seeks to begin to withdraw a portion or all of the investor's investment in the Fund significantly
before or after the Fund's target year. In this respect, the Fund's goals may more closely align with an investor that intends
to begin gradually withdrawing the value of the investor's account on or around the target year. In addition, the Fund will
not have its most conservative asset allocation in the Fund's target year, which may not align with an investor's plan for
withdrawing the investor's investment. The principal value of an investor's investment in the Fund is not guaranteed, and
an investor may experience losses, at any time, including near, at or after the target year designated in the Fund's name.
In addition, there is no guarantee that an investor's investment in the Fund will provide income at, and through the years
following, the target year in the Fund's name in amounts adequate to meet the investor's goals.
Currently, the master portfolios in which the Fund invests are the Wells Fargo Advantage Diversified Stock Portfolio, the
Wells Fargo Advantage Diversified Fixed Income Portfolio, and the Wells Fargo Advantage Short-Term Investment Portfolio. The
Diversified Stock Portfolio and the Diversified Fixed Income Portfolio seek to approximate, before fees and expenses, the
total return of the respective equity and fixed income portions of the Dow Jones Target 2025 Index
SM
by investing in the securities that comprise the sub-indexes representing the equity and fixed income asset classes, respectively,
which securities may include, among others, growth and value stocks, foreign and emerging market equity investments, and securities
of smaller companies, as well as debt securities, including corporate bonds, mortgage- and asset-backed securities and U.S.
and foreign government obligations. The Diversified Stock Portfolio may also use derivatives, such as stock index futures
in order to manage movements of the portfolio against certain indexes. The Diversified Stock Portfolio and the Diversified
Fixed Income Portfolio use an optimization process, which seeks to balance the replication of index performance and security
transaction costs. The Fund invests in the Short-Term Investment Portfolio to represent the cash component of the Dow Jones
Target Date Indexes, but unlike the cash component of the Dow Jones Target 2025 Index
SM
, the Portfolio does not seek to replicate the Barclays 1-3 Month Treasury-Bill Index. This could result in potential tracking
error between the performances of the Fund and the Dow Jones Target 2025 Index
SM
. By the time the Fund reaches its target year in 2025, its risk exposure will approach 28% of the risk of the global equity
market. The Fund will not reach its lowest risk exposure of 20% of the risk of the global equity market until ten years past
the Fund's target year. To measure the Fund's risk and the risk of the global equity market, we use a statistical method known
as below-mean semi-variance, which quantifies portfolio risk levels by measuring only the below-average outcomes. This method
is designed to provide a more useful and nuanced picture of the Fund's risk profile. As of February 28, 2013, the Dow Jones
Target 2025 Index
SM
included equity, fixed income and money market securities in the weights of 56%, 40% and 4%, respectively, which represent
the percentage breakdown of the Fund's assets across the Diversified Stock, Diversified Fixed Income and Short-Term Investment
Portfolios, respectively, as of such date, and may change over time. The Fund reserves the right to change its percentage
allocation among the Portfolios as we deem necessary to meet its investment objective.
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.
Allocation Methodology Risk.
A Fund is subject to the risk that the allocation methodology of the Dow Jones Target Date Index will not meet an investor's
goals because it will not eliminate the investment volatility that could reduce the amount of funds available for an investor
to withdraw when the investor intends to begin to withdraw a portion or all of the investor's investment in the Fund or it
may over-emphasize conservative investments designed to ensure capital conservation and current income, which may ultimately
prevent the investor from achieving the investor's income and appreciation goals.
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.
Emerging Markets Risk.
Foreign investment risks are typically greater for securities in emerging markets, which can be more vulnerable to recessions,
currency volatility, inflation and market failure.
Foreign Investment Risk.
Foreign investments face the potential of heightened illiquidity, greater price volatility and adverse effects of political,
regulatory, tax, currency, economic or other macroeconomic developments.
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).
Growth Style Investment Risk.
Growth stocks may be more expensive relative to the values of other stocks and carry potential for significant volatility
and loss.
Index Tracking Risk.
The ability to track an index may be affected by, among other things, transaction costs and shareholder purchases and redemptions.
Issuer Risk.
The value of a security may decline because of adverse events or circumstances that directly relate to conditions at the
issuer or any entity providing it credit or liquidity support.
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.
There is no guarantee of the Fund's performance or that the Fund will meet its objective. The market value of your investment
may decline and you may suffer investment loss.
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.
Mortgage- and Asset-Backed Securities Risk.
Mortgage- and asset-backed securities may decline in value when defaults on the underlying mortgage or assets occur and may
exhibit additional volatility in periods of changing interest rates. When interest rates decline, the prepayment of mortgages
or assets underlying such securities may require the Fund to reinvest such prepaid funds at lower prevailing interest rates,
resulting in reduced returns.
Multi-Style Management Risk.
The management of the Fund's portfolio using different investment styles can result in higher transaction costs and lower
tax efficiency than other funds which adhere to a single investment style.
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.
Smaller Company Securities Risk.
Securities of companies with smaller market capitalizations tend to be more volatile and less liquid than larger company
stocks.
U.S. Government Obligations Risk.
U.S. Government obligations may be adversely affected by changes in interest rates, a default by, or decline in the credit
quality of, the U.S. Government, and may not be backed by the full faith and credit of the U.S. Government.
Value Style Investment Risk.
Value stocks may lose value and may be subject to prolonged depressed valuations.
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 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
Class R6
|
Highest Quarter:
2nd Quarter 2009
|
+15.09%
|
|
Lowest Quarter:
4th Quarter 2008
|
-14.28%
|
|
Year-to-date total return as of 3/31/2013 is +4.30%
|
|
|
Average Annual Total Returns for the periods ended 12/31/2012
|
|
|
Inception Date of Share Class
|
1 Year
|
5 Year
|
Performance Since 6/29/2007
|
|
Class R6
|
6/29/2007
|
10.68%
|
2.71%
|
2.53%
|
|
Dow Jones Global Target 2025 Index (reflects no deduction for fees, expenses, or taxes)
|
|
10.94%
|
2.92%
|
2.89%
|
|
Barclays U.S. Aggregate Bond Index (reflects no deduction for fees, expenses, or taxes)
|
|
4.21%
|
5.95%
|
6.49%
|
|
Russell 3000® Index (reflects no deduction for fees, expenses, or taxes)
|
|
16.42%
|
2.04%
|
1.51%
|
Fund Management
|
Adviser
|
Sub-Adviser
|
Portfolio Manager, Title/Managed Since
|
|
Wells Fargo Funds Management, LLC
|
Global Index Advisors, Inc.
|
Rodney H. Alldredge
, Portfolio Manager / 2007
James P. Lauder
, Portfolio Manager / 2007
Paul T. Torregrosa, PhD
, Portfolio Manager / 2010
|
Purchase and Sale of Fund Shares
Class R6 shares generally are available only to certain retirement plans, including: 401(k) plans, 457 plans, profit sharing
and money purchase pension plans, defined benefit plans, target benefit plans and non-qualified deferred compensation plans.
Class R6 shares also are generally available only to retirement plans where plan level or omnibus accounts are held on the
books of the Fund. Class R6 shares generally are not available to retail accounts.
|
Institutions Purchasing Fund Shares
|
|
Minimum Initial Investment
Class R6: Eligible investors are not subject to a minimum initial investment (financial intermediaries may require different
minimum investment amounts)
Minimum Additional Investment
Class R6: None (financial intermediaries may require different minimum additional investment amounts)
|
Tax Information
By investing in a Fund through a tax-deferred retirement account, you will not be subject to tax on dividends and capital
gains distributions from the Fund or the sale of Fund shares if those amounts remain in the tax-deferred account. Distributions
taken from retirement plan accounts generally are taxable as ordinary income. For special rules concerning tax-deferred retirement
accounts, including applications, restrictions, tax advantages, and potential sales charge waivers, contact your investment
professional. To determine if a retirement plan may be appropriate for you and to obtain further information, consult your
tax adviser.
Target 2030 Fund Summary
Investment Objective
The Fund seeks to approximate, before fees and expenses, the total return of the Dow Jones Target 2030 Index
SM
.
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)
1
|
|
|
|
|
Management Fees
|
0.22%
|
|
Distribution (12b-1) Fees
|
0.00%
|
|
Other Expenses
|
0.10%
|
|
Acquired Fund Fees and Expenses
|
0.27%
|
|
Total Annual Fund Operating Expenses
|
0.59%
|
|
Fee Waiver
|
0.23%
|
|
Total Annual Fund Operating Expenses After Fee Waiver
2
|
0.36%
|
|
1.
|
Expenses have been adjusted as necessary from amounts incurred during the Fund's most recent fiscal year to reflect current
fees and expenses.
|
|
2.
|
The Adviser has committed through June 30, 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. Fees from the
underlying master portfolio(s) are included in 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
|
$37
|
|
3 Years
|
$166
|
|
5 Years
|
$306
|
|
10 Years
|
$716
|
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 25% of the average value of
its portfolio.
Principal Investment Strategies
Under normal circumstances, we invest:
■
at least 80% of the Fund's total assets in equity, fixed income and money market securities designed to approximate the holdings
and weightings of the securities in the Dow Jones Target 2030 Index
SM
.
The Fund is a gateway fund that invests in various master portfolios which in turn invest in a combination of equity, fixed
income and money market securities using an asset allocation strategy designed to replicate, before fees and expenses, the
total return of the Dow Jones Target 2030 Index
SM
. Similar to the methodology of the index, the Fund's investment strategy is to gradually reduce the Fund's potential market
risk exposure over time by re-allocating the Fund's assets among these major asset classes: equity, fixed income and money
market instruments. Generally, the longer the Fund's time horizon, the more of its assets are allocated to equity securities
to pursue capital appreciation over the long term. As the Fund's time horizon shortens, it replaces some of its equity holdings
with fixed income and money market holdings to reduce market risk and price volatility and thereby generally becomes more
conservative in its asset allocation as the Fund's target year approaches and for the first 10 years after it arrives. The
Fund's target year serves as a guide to the relative market risk exposure of the Fund, and your decision to invest in this
Fund or another Wells Fargo Advantage Dow Jones Target Date Fund with a different target year and market risk exposure depends
upon your individual risk tolerance, among other factors.
The "target year" designated in the Fund's name is the same as the year in the name of the Dow Jones Target 2030 Index
SM
. Although the individual goals of each investor with respect to a target year vary, an investor may intend for the target
year to represent the approximate year in or around which the investor plans to begin withdrawing a portion or all of the
investor's investment in the Fund and/or stop making new investments to the Fund. The Fund's goals may not align with the
goals of an investor that seeks to begin to withdraw a portion or all of the investor's investment in the Fund significantly
before or after the Fund's target year. In this respect, the Fund's goals may more closely align with an investor that intends
to begin gradually withdrawing the value of the investor's account on or around the target year. In addition, the Fund will
not have its most conservative asset allocation in the Fund's target year, which may not align with an investor's plan for
withdrawing the investor's investment. The principal value of an investor's investment in the Fund is not guaranteed, and
an investor may experience losses, at any time, including near, at or after the target year designated in the Fund's name.
In addition, there is no guarantee that an investor's investment in the Fund will provide income at, and through the years
following, the target year in the Fund's name in amounts adequate to meet the investor's goals.
Currently, the master portfolios in which the Fund invests are the Wells Fargo Advantage Diversified Stock Portfolio, the
Wells Fargo Advantage Diversified Fixed Income Portfolio, and the Wells Fargo Advantage Short-Term Investment Portfolio. The
Diversified Stock Portfolio and the Diversified Fixed Income Portfolio seek to approximate, before fees and expenses, the
total return of the respective equity and fixed income portions of the Dow Jones Target 2030 Index
SM
by investing in the securities that comprise the sub-indexes representing the equity and fixed income asset classes, respectively,
which securities may include, among others, growth and value stocks, foreign and emerging market equity investments, and securities
of smaller companies, as well as debt securities, including corporate bonds, mortgage- and asset-backed securities and U.S.
and foreign government obligations. The Diversified Stock Portfolio may also use derivatives, such as stock index futures
in order to manage movements of the portfolio against certain indexes. The Diversified Stock Portfolio and the Diversified
Fixed Income Portfolio use an optimization process, which seeks to balance the replication of index performance and security
transaction costs. The Fund invests in the Short-Term Investment Portfolio to represent the cash component of the Dow Jones
Target Date Indexes, but unlike the cash component of the Dow Jones Target 2030 Index
SM
, the Portfolio does not seek to replicate the Barclays 1-3 Month Treasury-Bill Index. This could result in potential tracking
error between the performances of the Fund and the Dow Jones Target 2030 Index
SM
. By the time the Fund reaches its target year in 2030, its risk exposure will approach 28% of the risk of the global equity
market. The Fund will not reach its lowest risk exposure of 20% of the risk of the global equity market until ten years past
the Fund's target year. To measure the Fund's risk and the risk of the global equity market, we use a statistical method known
as below-mean semi-variance, which quantifies portfolio risk levels by measuring only the below-average outcomes. This method
is designed to provide a more useful and nuanced picture of the Fund's risk profile. As of February 28, 2013, the Dow Jones
Target 2030 Index
SM
included equity, fixed income and money market securities in the weights of 68%, 28% and 4%, respectively, which represent
the percentage breakdown of the Fund's assets across the Diversified Stock, Diversified Fixed Income and Short-Term Investment
Portfolios, respectively, as of such date, and may change over time. The Fund reserves the right to change its percentage
allocation among the Portfolios as we deem necessary to meet its investment objective.
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.
Allocation Methodology Risk.
A Fund is subject to the risk that the allocation methodology of the Dow Jones Target Date Index will not meet an investor's
goals because it will not eliminate the investment volatility that could reduce the amount of funds available for an investor
to withdraw when the investor intends to begin to withdraw a portion or all of the investor's investment in the Fund or it
may over-emphasize conservative investments designed to ensure capital conservation and current income, which may ultimately
prevent the investor from achieving the investor's income and appreciation goals.
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.
Emerging Markets Risk.
Foreign investment risks are typically greater for securities in emerging markets, which can be more vulnerable to recessions,
currency volatility, inflation and market failure.
Foreign Investment Risk.
Foreign investments face the potential of heightened illiquidity, greater price volatility and adverse effects of political,
regulatory, tax, currency, economic or other macroeconomic developments.
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).
Growth Style Investment Risk.
Growth stocks may be more expensive relative to the values of other stocks and carry potential for significant volatility
and loss.
Index Tracking Risk.
The ability to track an index may be affected by, among other things, transaction costs and shareholder purchases and redemptions.
Issuer Risk.
The value of a security may decline because of adverse events or circumstances that directly relate to conditions at the
issuer or any entity providing it credit or liquidity support.
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.
There is no guarantee of the Fund's performance or that the Fund will meet its objective. The market value of your investment
may decline and you may suffer investment loss.
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.
Mortgage- and Asset-Backed Securities Risk.
Mortgage- and asset-backed securities may decline in value when defaults on the underlying mortgage or assets occur and may
exhibit additional volatility in periods of changing interest rates. When interest rates decline, the prepayment of mortgages
or assets underlying such securities may require the Fund to reinvest such prepaid funds at lower prevailing interest rates,
resulting in reduced returns.
Multi-Style Management Risk.
The management of the Fund's portfolio using different investment styles can result in higher transaction costs and lower
tax efficiency than other funds which adhere to a single investment style.
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.
Smaller Company Securities Risk.
Securities of companies with smaller market capitalizations tend to be more volatile and less liquid than larger company
stocks.
U.S. Government Obligations Risk.
U.S. Government obligations may be adversely affected by changes in interest rates, a default by, or decline in the credit
quality of, the U.S. Government, and may not be backed by the full faith and credit of the U.S. Government.
Value Style Investment Risk.
Value stocks may lose value and may be subject to prolonged depressed valuations.
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 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
Class R6
|
Highest Quarter:
2nd Quarter 2009
|
+17.78%
|
|
Lowest Quarter:
4th Quarter 2008
|
-17.37%
|
|
Year-to-date total return as of 3/31/2013 is +5.49%
|
|
|
Average Annual Total Returns for the periods ended 12/31/2012
|
|
|
Inception Date of Share Class
|
1 Year
|
5 Year
|
10 Year
|
|
Class R6
|
6/30/2004
|
12.26%
|
2.26%
|
7.03%
|
|
Dow Jones Global Target 2030 Index (reflects no deduction for fees, expenses, or taxes)
|
|
12.56%
|
2.52%
|
9.40%
|
|
Barclays U.S. Aggregate Bond Index (reflects no deduction for fees, expenses, or taxes)
|
|
4.21%
|
5.95%
|
5.18%
|
|
Russell 3000® Index (reflects no deduction for fees, expenses, or taxes)
|
|
16.42%
|
2.04%
|
7.68%
|
Fund Management
|
Adviser
|
Sub-Adviser
|
Portfolio Manager, Title/Managed Since
|
|
Wells Fargo Funds Management, LLC
|
Global Index Advisors, Inc.
|
Rodney H. Alldredge
, Portfolio Manager / 2006
James P. Lauder
, Portfolio Manager / 2006
Paul T. Torregrosa, PhD
, Portfolio Manager / 2010
|
Purchase and Sale of Fund Shares
Class R6 shares generally are available only to certain retirement plans, including: 401(k) plans, 457 plans, profit sharing
and money purchase pension plans, defined benefit plans, target benefit plans and non-qualified deferred compensation plans.
Class R6 shares also are generally available only to retirement plans where plan level or omnibus accounts are held on the
books of the Fund. Class R6 shares generally are not available to retail accounts.
|
Institutions Purchasing Fund Shares
|
|
Minimum Initial Investment
Class R6: Eligible investors are not subject to a minimum initial investment (financial intermediaries may require different
minimum investment amounts)
Minimum Additional Investment
Class R6: None (financial intermediaries may require different minimum additional investment amounts)
|
Tax Information
By investing in a Fund through a tax-deferred retirement account, you will not be subject to tax on dividends and capital
gains distributions from the Fund or the sale of Fund shares if those amounts remain in the tax-deferred account. Distributions
taken from retirement plan accounts generally are taxable as ordinary income. For special rules concerning tax-deferred retirement
accounts, including applications, restrictions, tax advantages, and potential sales charge waivers, contact your investment
professional. To determine if a retirement plan may be appropriate for you and to obtain further information, consult your
tax adviser.
Target 2035 Fund Summary
Investment Objective
The Fund seeks to approximate, before fees and expenses, the total return of the Dow Jones Target 2035 Index
SM
.
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)
1
|
|
|
|
|
Management Fees
|
0.24%
|
|
Distribution (12b-1) Fees
|
0.00%
|
|
Other Expenses
|
0.10%
|
|
Acquired Fund Fees and Expenses
|
0.27%
|
|
Total Annual Fund Operating Expenses
|
0.61%
|
|
Fee Waiver
|
0.24%
|
|
Total Annual Fund Operating Expenses After Fee Waiver
2
|
0.37%
|
|
1.
|
Expenses have been adjusted as necessary from amounts incurred during the Fund's most recent fiscal year to reflect current
fees and expenses.
|
|
2.
|
The Adviser has committed through June 30, 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. Fees from the
underlying master portfolio(s) are included in 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
|
$38
|
|
3 Years
|
$171
|
|
5 Years
|
$316
|
|
10 Years
|
$739
|
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 22% of the average value of
its portfolio.
Principal Investment Strategies
Under normal circumstances, we invest:
■
at least 80% of the Fund's total assets in equity, fixed income and money market securities designed to approximate the holdings
and weightings of the securities in the Dow Jones Target 2035 Index
SM
.
The Fund is a gateway fund that invests in various master portfolios which in turn invest in a combination of equity, fixed
income and money market securities using an asset allocation strategy designed to replicate, before fees and expenses, the
total return of the Dow Jones Target 2035 Index
SM
. Similar to the methodology of the index, the Fund's investment strategy is to gradually reduce the Fund's potential market
risk exposure over time by re-allocating the Fund's assets among these major asset classes: equity, fixed income and money
market instruments. Generally, the longer the Fund's time horizon, the more of its assets are allocated to equity securities
to pursue capital appreciation over the long term. As the Fund's time horizon shortens, it replaces some of its equity holdings
with fixed income and money market holdings to reduce market risk and price volatility and thereby generally becomes more
conservative in its asset allocation as the Fund's target year approaches and for the first 10 years after it arrives. The
Fund's target year serves as a guide to the relative market risk exposure of the Fund, and your decision to invest in this
Fund or another Wells Fargo Advantage Dow Jones Target Date Fund with a different target year and market risk exposure depends
upon your individual risk tolerance, among other factors.
The "target year" designated in the Fund's name is the same as the year in the name of the Dow Jones Target 2035 Index
SM
. Although the individual goals of each investor with respect to a target year vary, an investor may intend for the target
year to represent the approximate year in or around which the investor plans to begin withdrawing a portion or all of the
investor's investment in the Fund and/or stop making new investments to the Fund. The Fund's goals may not align with the
goals of an investor that seeks to begin to withdraw a portion or all of the investor's investment in the Fund significantly
before or after the Fund's target year. In this respect, the Fund's goals may more closely align with an investor that intends
to begin gradually withdrawing the value of the investor's account on or around the target year. In addition, the Fund will
not have its most conservative asset allocation in the Fund's target year, which may not align with an investor's plan for
withdrawing the investor's investment. The principal value of an investor's investment in the Fund is not guaranteed, and
an investor may experience losses, at any time, including near, at or after the target year designated in the Fund's name.
In addition, there is no guarantee that an investor's investment in the Fund will provide income at, and through the years
following, the target year in the Fund's name in amounts adequate to meet the investor's goals.
Currently, the master portfolios in which the Fund invests are the Wells Fargo Advantage Diversified Stock Portfolio, the
Wells Fargo Advantage Diversified Fixed Income Portfolio, and the Wells Fargo Advantage Short-Term Investment Portfolio. The
Diversified Stock Portfolio and the Diversified Fixed Income Portfolio seek to approximate, before fees and expenses, the
total return of the respective equity and fixed income portions of the Dow Jones Target 2035 Index
SM
by investing in the securities that comprise the sub-indexes representing the equity and fixed income asset classes, respectively,
which securities may include, among others, growth and value stocks, foreign and emerging market equity investments, and securities
of smaller companies, as well as debt securities, including corporate bonds, mortgage- and asset-backed securities and U.S.
and foreign government obligations. The Diversified Stock Portfolio may also use derivatives, such as stock index futures
in order to manage movements of the portfolio against certain indexes. The Diversified Stock Portfolio and the Diversified
Fixed Income Portfolio use an optimization process, which seeks to balance the replication of index performance and security
transaction costs. The Fund invests in the Short-Term Investment Portfolio to represent the cash component of the Dow Jones
Target Date Indexes, but unlike the cash component of the Dow Jones Target 2035 Index
SM
, the Portfolio does not seek to replicate the Barclays 1-3 Month Treasury-Bill Index. This could result in potential tracking
error between the performances of the Fund and the Dow Jones Target 2035 Index
SM
. By the time the Fund reaches its target year in 2035, its risk exposure will approach 28% of the risk of the global equity
market. The Fund will not reach its lowest risk exposure of 20% of the risk of the global equity market until ten years past
the Fund's target year. To measure the Fund's risk and the risk of the global equity market, we use a statistical method known
as below-mean semi-variance, which quantifies portfolio risk levels by measuring only the below-average outcomes. This method
is designed to provide a more useful and nuanced picture of the Fund's risk profile. As of February 28, 2013, the Dow Jones
Target 2035 Index
SM
included equity, fixed income and money market securities in the weights of 79%, 17% and 4%, respectively, which represent
the percentage breakdown of the Fund's assets across the Diversified Stock, Diversified Fixed Income and Short-Term Investment
Portfolios, respectively, as of such date, and may change over time. The Fund reserves the right to change its percentage
allocation among the Portfolios as we deem necessary to meet its investment objective.
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.
Allocation Methodology Risk.
A Fund is subject to the risk that the allocation methodology of the Dow Jones Target Date Index will not meet an investor's
goals because it will not eliminate the investment volatility that could reduce the amount of funds available for an investor
to withdraw when the investor intends to begin to withdraw a portion or all of the investor's investment in the Fund or it
may over-emphasize conservative investments designed to ensure capital conservation and current income, which may ultimately
prevent the investor from achieving the investor's income and appreciation goals.
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.
Emerging Markets Risk.
Foreign investment risks are typically greater for securities in emerging markets, which can be more vulnerable to recessions,
currency volatility, inflation and market failure.
Foreign Investment Risk.
Foreign investments face the potential of heightened illiquidity, greater price volatility and adverse effects of political,
regulatory, tax, currency, economic or other macroeconomic developments.
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).
Growth Style Investment Risk.
Growth stocks may be more expensive relative to the values of other stocks and carry potential for significant volatility
and loss.
Index Tracking Risk.
The ability to track an index may be affected by, among other things, transaction costs and shareholder purchases and redemptions.
Issuer Risk.
The value of a security may decline because of adverse events or circumstances that directly relate to conditions at the
issuer or any entity providing it credit or liquidity support.
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.
There is no guarantee of the Fund's performance or that the Fund will meet its objective. The market value of your investment
may decline and you may suffer investment loss.
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.
Mortgage- and Asset-Backed Securities Risk.
Mortgage- and asset-backed securities may decline in value when defaults on the underlying mortgage or assets occur and may
exhibit additional volatility in periods of changing interest rates. When interest rates decline, the prepayment of mortgages
or assets underlying such securities may require the Fund to reinvest such prepaid funds at lower prevailing interest rates,
resulting in reduced returns.
Multi-Style Management Risk.
The management of the Fund's portfolio using different investment styles can result in higher transaction costs and lower
tax efficiency than other funds which adhere to a single investment style.
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.
Smaller Company Securities Risk.
Securities of companies with smaller market capitalizations tend to be more volatile and less liquid than larger company
stocks.
U.S. Government Obligations Risk.
U.S. Government obligations may be adversely affected by changes in interest rates, a default by, or decline in the credit
quality of, the U.S. Government, and may not be backed by the full faith and credit of the U.S. Government.
Value Style Investment Risk.
Value stocks may lose value and may be subject to prolonged depressed valuations.
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 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
R6
|
Highest Quarter:
2nd Quarter 2009
|
+19.62%
|
|
Lowest Quarter:
4th Quarter 2008
|
-19.41%
|
|
Year-to-date total return as of 3/31/2013 is +6.53%
|
|
|
Average Annual Total Returns for the periods ended 12/31/2012
|
|
|
Inception Date of Share Class
|
1 Year
|
5 Year
|
Performance Since 6/29/2007
|
|
Class R6
|
6/29/2007
|
13.72%
|
2.17%
|
1.78%
|
|
Dow Jones Global Target 2035 Index (reflects no deduction for fees, expenses, or taxes)
|
|
13.92%
|
2.22%
|
1.98%
|
|
Barclays U.S. Aggregate Bond Index (reflects no deduction for fees, expenses, or taxes)
|
|
4.21%
|
5.95%
|
6.49%
|
|
Russell 3000® Index (reflects no deduction for fees, expenses, or taxes)
|
|
16.42%
|
2.04%
|
1.51%
|
Fund Management
|
Adviser
|
Sub-Adviser
|
Portfolio Manager, Title/Managed Since
|
|
Wells Fargo Funds Management, LLC
|
Global Index Advisors, Inc.
|
Rodney H. Alldredge
, Portfolio Manager / 2007
James P. Lauder
, Portfolio Manager / 2007
Paul T. Torregrosa, PhD
, Portfolio Manager / 2010
|
Purchase and Sale of Fund Shares
Class R6 shares generally are available only to certain retirement plans, including: 401(k) plans, 457 plans, profit sharing
and money purchase pension plans, defined benefit plans, target benefit plans and non-qualified deferred compensation plans.
Class R6 shares also are generally available only to retirement plans where plan level or omnibus accounts are held on the
books of the Fund. Class R6 shares generally are not available to retail accounts.
|
Institutions Purchasing Fund Shares
|
|
Minimum Initial Investment
Class R6: Eligible investors are not subject to a minimum initial investment (financial intermediaries may require different
minimum investment amounts)
Minimum Additional Investment
Class R6: None (financial intermediaries may require different minimum additional investment amounts)
|
Tax Information
By investing in a Fund through a tax-deferred retirement account, you will not be subject to tax on dividends and capital
gains distributions from the Fund or the sale of Fund shares if those amounts remain in the tax-deferred account. Distributions
taken from retirement plan accounts generally are taxable as ordinary income. For special rules concerning tax-deferred retirement
accounts, including applications, restrictions, tax advantages, and potential sales charge waivers, contact your investment
professional. To determine if a retirement plan may be appropriate for you and to obtain further information, consult your
tax adviser.
Target 2040 Fund Summary
Investment Objective
The Fund seeks to approximate, before fees and expenses, the total return of the Dow Jones Target 2040 Index
SM
.
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)
1
|
|
|
|
|
Management Fees
|
0.23%
|
|
Distribution (12b-1) Fees
|
0.00%
|
|
Other Expenses
|
0.10%
|
|
Acquired Fund Fees and Expenses
|
0.27%
|
|
Total Annual Fund Operating Expenses
|
0.60%
|
|
Fee Waiver
|
0.23%
|
|
Total Annual Fund Operating Expenses After Fee Waiver
2
|
0.37%
|
|
1.
|
Expenses have been adjusted as necessary from amounts incurred during the Fund's most recent fiscal year to reflect current
fees and expenses.
|
|
2.
|
The Adviser has committed through June 30, 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. Fees from the
underlying master portfolio(s) are included in 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
|
$38
|
|
3 Years
|
$169
|
|
5 Years
|
$312
|
|
10 Years
|
$728
|
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 20% of the average value of
its portfolio.
Principal Investment Strategies
Under normal circumstances, we invest:
■
at least 80% of the Fund's total assets in equity, fixed income and money market securities designed to approximate the holdings
and weightings of the securities in the Dow Jones Target 2040 Index
SM
.
The Fund is a gateway fund that invests in various master portfolios which in turn invest in a combination of equity, fixed
income and money market securities using an asset allocation strategy designed to replicate, before fees and expenses, the
total return of the Dow Jones Target 2040 Index
SM
. Similar to the methodology of the index, the Fund's investment strategy is to gradually reduce the Fund's potential market
risk exposure over time by re-allocating the Fund's assets among these major asset classes: equity, fixed income and money
market instruments. Generally, the longer the Fund's time horizon, the more of its assets are allocated to equity securities
to pursue capital appreciation over the long term. As the Fund's time horizon shortens, it replaces some of its equity holdings
with fixed income and money market holdings to reduce market risk and price volatility and thereby generally becomes more
conservative in its asset allocation as the Fund's target year approaches and for the first 10 years after it arrives. The
Fund's target year serves as a guide to the relative market risk exposure of the Fund, and your decision to invest in this
Fund or another Wells Fargo Advantage Dow Jones Target Date Fund with a different target year and market risk exposure depends
upon your individual risk tolerance, among other factors.
The "target year" designated in the Fund's name is the same as the year in the name of the Dow Jones Target 2040 Index
SM
. Although the individual goals of each investor with respect to a target year vary, an investor may intend for the target
year to represent the approximate year in or around which the investor plans to begin withdrawing a portion or all of the
investor's investment in the Fund and/or stop making new investments to the Fund. The Fund's goals may not align with the
goals of an investor that seeks to begin to withdraw a portion or all of the investor's investment in the Fund significantly
before or after the Fund's target year. In this respect, the Fund's goals may more closely align with an investor that intends
to begin gradually withdrawing the value of the investor's account on or around the target year. In addition, the Fund will
not have its most conservative asset allocation in the Fund's target year, which may not align with an investor's plan for
withdrawing the investor's investment. The principal value of an investor's investment in the Fund is not guaranteed, and
an investor may experience losses, at any time, including near, at or after the target year designated in the Fund's name.
In addition, there is no guarantee that an investor's investment in the Fund will provide income at, and through the years
following, the target year in the Fund's name in amounts adequate to meet the investor's goals.
Currently, the master portfolios in which the Fund invests are the Wells Fargo Advantage Diversified Stock Portfolio, the
Wells Fargo Advantage Diversified Fixed Income Portfolio, and the Wells Fargo Advantage Short-Term Investment Portfolio. The
Diversified Stock Portfolio and the Diversified Fixed Income Portfolio seek to approximate, before fees and expenses, the
total return of the respective equity and fixed income portions of the Dow Jones Target 2040 Index
SM
by investing in the securities that comprise the sub-indexes representing the equity and fixed income asset classes, respectively,
which securities may include, among others, growth and value stocks, foreign and emerging market equity investments, and securities
of smaller companies, as well as debt securities, including corporate bonds, mortgage- and asset-backed securities and U.S.
and foreign government obligations. The Diversified Stock Portfolio may also use derivatives, such as stock index futures
in order to manage movements of the portfolio against certain indexes. The Diversified Stock Portfolio and the Diversified
Fixed Income Portfolio use an optimization process, which seeks to balance the replication of index performance and security
transaction costs. The Fund invests in the Short-Term Investment Portfolio to represent the cash component of the Dow Jones
Target Date Indexes, but unlike the cash component of the Dow Jones Target 2040 Index
SM
, the Portfolio does not seek to replicate the Barclays 1-3 Month Treasury-Bill Index. This could result in potential tracking
error between the performances of the Fund and the Dow Jones Target 2040 Index
SM
. By the time the Fund reaches its target year in 2040, its risk exposure will approach 28% of the risk of the global equity
market. The Fund will not reach its lowest risk exposure of 20% of the risk of the global equity market until ten years past
the Fund's target year. To measure the Fund's risk and the risk of the global equity market, we use a statistical method known
as below-mean semi-variance, which quantifies portfolio risk levels by measuring only the below-average outcomes. This method
is designed to provide a more useful and nuanced picture of the Fund's risk profile. As of February 28, 2013, the Dow Jones
Target 2040 Index
SM
included equity, fixed income and money market securities in the weights of 86%, 10% and 4%, respectively, which represent
the percentage breakdown of the Fund's assets across the Diversified Stock, Diversified Fixed Income and Short-Term Investment
Portfolios, respectively, as of such date, and may change over time. The Fund reserves the right to change its percentage
allocation among the Portfolios as we deem necessary to meet its investment objective.
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.
Allocation Methodology Risk.
A Fund is subject to the risk that the allocation methodology of the Dow Jones Target Date Index will not meet an investor's
goals because it will not eliminate the investment volatility that could reduce the amount of funds available for an investor
to withdraw when the investor intends to begin to withdraw a portion or all of the investor's investment in the Fund or it
may over-emphasize conservative investments designed to ensure capital conservation and current income, which may ultimately
prevent the investor from achieving the investor's income and appreciation goals.
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.
Emerging Markets Risk.
Foreign investment risks are typically greater for securities in emerging markets, which can be more vulnerable to recessions,
currency volatility, inflation and market failure.
Foreign Investment Risk.
Foreign investments face the potential of heightened illiquidity, greater price volatility and adverse effects of political,
regulatory, tax, currency, economic or other macroeconomic developments.
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).
Growth Style Investment Risk.
Growth stocks may be more expensive relative to the values of other stocks and carry potential for significant volatility
and loss.
Index Tracking Risk.
The ability to track an index may be affected by, among other things, transaction costs and shareholder purchases and redemptions.
Issuer Risk.
The value of a security may decline because of adverse events or circumstances that directly relate to conditions at the
issuer or any entity providing it credit or liquidity support.
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.
There is no guarantee of the Fund's performance or that the Fund will meet its objective. The market value of your investment
may decline and you may suffer investment loss.
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.
Mortgage- and Asset-Backed Securities Risk.
Mortgage- and asset-backed securities may decline in value when defaults on the underlying mortgage or assets occur and may
exhibit additional volatility in periods of changing interest rates. When interest rates decline, the prepayment of mortgages
or assets underlying such securities may require the Fund to reinvest such prepaid funds at lower prevailing interest rates,
resulting in reduced returns.
Multi-Style Management Risk.
The management of the Fund's portfolio using different investment styles can result in higher transaction costs and lower
tax efficiency than other funds which adhere to a single investment style.
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.
Smaller Company Securities Risk.
Securities of companies with smaller market capitalizations tend to be more volatile and less liquid than larger company
stocks.
U.S. Government Obligations Risk.
U.S. Government obligations may be adversely affected by changes in interest rates, a default by, or decline in the credit
quality of, the U.S. Government, and may not be backed by the full faith and credit of the U.S. Government.
Value Style Investment Risk.
Value stocks may lose value and may be subject to prolonged depressed valuations.
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 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
Class R6
|
Highest Quarter:
2nd Quarter 2009
|
+20.73%
|
|
Lowest Quarter:
4th Quarter 2008
|
-20.84%
|
|
Year-to-date total return as of 3/31/2013 is +7.29%
|
|
|
Average Annual Total Returns for the periods ended 12/31/2012
|
|
|
Inception Date of Share Class
|
1 Year
|
5 Year
|
10 Year
|
|
Class R6
|
6/30/2004
|
14.70%
|
1.90%
|
7.56%
|
|
Dow Jones Global Target 2040 Index (reflects no deduction for fees, expenses, or taxes)
|
|
14.88%
|
2.09%
|
9.61%
|
|
Barclays U.S. Aggregate Bond Index (reflects no deduction for fees, expenses, or taxes)
|
|
4.21%
|
5.95%
|
5.18%
|
|
Russell 3000® Index (reflects no deduction for fees, expenses, or taxes)
|
|
16.42%
|
2.04%
|
7.68%
|
Fund Management
|
Adviser
|
Sub-Adviser
|
Portfolio Manager, Title/Managed Since
|
|
Wells Fargo Funds Management, LLC
|
Global Index Advisors, Inc.
|
Rodney H. Alldredge
, Portfolio Manager / 2006
James P. Lauder
, Portfolio Manager / 2006
Paul T. Torregrosa, PhD
, Portfolio Manager / 2010
|
Purchase and Sale of Fund Shares
Class R6 shares generally are available only to certain retirement plans, including: 401(k) plans, 457 plans, profit sharing
and money purchase pension plans, defined benefit plans, target benefit plans and non-qualified deferred compensation plans.
Class R6 shares also are generally available only to retirement plans where plan level or omnibus accounts are held on the
books of the Fund. Class R6 shares generally are not available to retail accounts.
|
Institutions Purchasing Fund Shares
|
|
Minimum Initial Investment
Class R6: Eligible investors are not subject to a minimum initial investment (financial intermediaries may require different
minimum investment amounts)
Minimum Additional Investment
Class R6: None (financial intermediaries may require different minimum additional investment amounts)
|
Tax Information
By investing in a Fund through a tax-deferred retirement account, you will not be subject to tax on dividends and capital
gains distributions from the Fund or the sale of Fund shares if those amounts remain in the tax-deferred account. Distributions
taken from retirement plan accounts generally are taxable as ordinary income. For special rules concerning tax-deferred retirement
accounts, including applications, restrictions, tax advantages, and potential sales charge waivers, contact your investment
professional. To determine if a retirement plan may be appropriate for you and to obtain further information, consult your
tax adviser.
Target 2045 Fund Summary
Investment Objective
The Fund seeks to approximate, before fees and expenses, the total return of the Dow Jones Target 2045 Index
SM
.
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)
1
|
|
|
|
|
Management Fees
|
0.25%
|
|
Distribution (12b-1) Fees
|
0.00%
|
|
Other Expenses
|
0.12%
|
|
Acquired Fund Fees and Expenses
|
0.27%
|
|
Total Annual Fund Operating Expenses
|
0.64%
|
|
Fee Waiver
|
0.27%
|
|
Total Annual Fund Operating Expenses After Fee Waiver
2
|
0.37%
|
|
1.
|
Expenses have been adjusted as necessary from amounts incurred during the Fund's most recent fiscal year to reflect current
fees and expenses.
|
|
2.
|
The Adviser has committed through June 30, 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. Fees from the
underlying master portfolio(s) are included in 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
|
$38
|
|
3 Years
|
$178
|
|
5 Years
|
$330
|
|
10 Years
|
$773
|
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 19% of the average value of
its portfolio.
Principal Investment Strategies
Under normal circumstances, we invest:
■
at least 80% of the Fund's total assets in equity, fixed income and money market securities designed to approximate the holdings
and weightings of the securities in the Dow Jones Target 2045 Index
SM
.
The Fund is a gateway fund that invests in various master portfolios which in turn invest in a combination of equity, fixed
income and money market securities using an asset allocation strategy designed to replicate, before fees and expenses, the
total return of the Dow Jones Target 2045 Index
SM
. Similar to the methodology of the index, the Fund's investment strategy is to gradually reduce the Fund's potential market
risk exposure over time by re-allocating the Fund's assets among these major asset classes: equity, fixed income and money
market instruments. Generally, the longer the Fund's time horizon, the more of its assets are allocated to equity securities
to pursue capital appreciation over the long term. As the Fund's time horizon shortens, it replaces some of its equity holdings
with fixed income and money market holdings to reduce market risk and price volatility and thereby generally becomes more
conservative in its asset allocation as the Fund's target year approaches and for the first 10 years after it arrives. The
Fund's target year serves as a guide to the relative market risk exposure of the Fund, and your decision to invest in this
Fund or another Wells Fargo Advantage Dow Jones Target Date Fund with a different target year and market risk exposure depends
upon your individual risk tolerance, among other factors.
The "target year" designated in the Fund's name is the same as the year in the name of the Dow Jones Target 2045 Index
SM
. Although the individual goals of each investor with respect to a target year vary, an investor may intend for the target
year to represent the approximate year in or around which the investor plans to begin withdrawing a portion or all of the
investor's investment in the Fund and/or stop making new investments to the Fund. The Fund's goals may not align with the
goals of an investor that seeks to begin to withdraw a portion or all of the investor's investment in the Fund significantly
before or after the Fund's target year. In this respect, the Fund's goals may more closely align with an investor that intends
to begin gradually withdrawing the value of the investor's account on or around the target year. In addition, the Fund will
not have its most conservative asset allocation in the Fund's target year, which may not align with an investor's plan for
withdrawing the investor's investment. The principal value of an investor's investment in the Fund is not guaranteed, and
an investor may experience losses, at any time, including near, at or after the target year designated in the Fund's name.
In addition, there is no guarantee that an investor's investment in the Fund will provide income at, and through the years
following, the target year in the Fund's name in amounts adequate to meet the investor's goals.
Currently, the master portfolios in which the Fund invests are the Wells Fargo Advantage Diversified Stock Portfolio, the
Wells Fargo Advantage Diversified Fixed Income Portfolio, and the Wells Fargo Advantage Short-Term Investment Portfolio. The
Diversified Stock Portfolio and the Diversified Fixed Income Portfolio seek to approximate, before fees and expenses, the
total return of the respective equity and fixed income portions of the Dow Jones Target 2045 Index
SM
by investing in the securities that comprise the sub-indexes representing the equity and fixed income asset classes, respectively,
which securities may include, among others, growth and value stocks, foreign and emerging market equity investments, and securities
of smaller companies, as well as debt securities, including corporate bonds, mortgage- and asset-backed securities and U.S.
and foreign government obligations. The Diversified Stock Portfolio may also use derivatives, such as stock index futures
in order to manage movements of the portfolio against certain indexes. The Diversified Stock Portfolio and the Diversified
Fixed Income Portfolio use an optimization process, which seeks to balance the replication of index performance and security
transaction costs. The Fund invests in the Short-Term Investment Portfolio to represent the cash component of the Dow Jones
Target Date Indexes, but unlike the cash component of the Dow Jones Target 2045 Index
SM
, the Portfolio does not seek to replicate the Barclays 1-3 Month Treasury-Bill Index. This could result in potential tracking
error between the performances of the Fund and the Dow Jones Target 2045 Index
SM
. By the time the Fund reaches its target year in 2045, its risk exposure will approach 28% of the risk of the global equity
market. The Fund will not reach its lowest risk exposure of 20% of the risk of the global equity market until ten years past
the Fund's target year. To measure the Fund's risk and the risk of the global equity market, we use a statistical method known
as below-mean semi-variance, which quantifies portfolio risk levels by measuring only the below-average outcomes. This method
is designed to provide a more useful and nuanced picture of the Fund's risk profile. As of February 28, 2013, the Dow Jones
Target 2045 Index
SM
included equity, fixed income and money market securities in the weights of 90%, 6% and 4%, respectively, which represent
the percentage breakdown of the Fund's assets across the Diversified Stock, Diversified Fixed Income and Short-Term Investment
Portfolios, respectively, as of such date, and may change over time. The Fund reserves the right to change its percentage
allocation among the Portfolios as we deem necessary to meet its investment objective.
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.
Allocation Methodology Risk.
A Fund is subject to the risk that the allocation methodology of the Dow Jones Target Date Index will not meet an investor's
goals because it will not eliminate the investment volatility that could reduce the amount of funds available for an investor
to withdraw when the investor intends to begin to withdraw a portion or all of the investor's investment in the Fund or it
may over-emphasize conservative investments designed to ensure capital conservation and current income, which may ultimately
prevent the investor from achieving the investor's income and appreciation goals.
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.
Emerging Markets Risk.
Foreign investment risks are typically greater for securities in emerging markets, which can be more vulnerable to recessions,
currency volatility, inflation and market failure.
Foreign Investment Risk.
Foreign investments face the potential of heightened illiquidity, greater price volatility and adverse effects of political,
regulatory, tax, currency, economic or other macroeconomic developments.
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).
Growth Style Investment Risk.
Growth stocks may be more expensive relative to the values of other stocks and carry potential for significant volatility
and loss.
Index Tracking Risk.
The ability to track an index may be affected by, among other things, transaction costs and shareholder purchases and redemptions.
Issuer Risk.
The value of a security may decline because of adverse events or circumstances that directly relate to conditions at the
issuer or any entity providing it credit or liquidity support.
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.
There is no guarantee of the Fund's performance or that the Fund will meet its objective. The market value of your investment
may decline and you may suffer investment loss.
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.
Mortgage- and Asset-Backed Securities Risk.
Mortgage- and asset-backed securities may decline in value when defaults on the underlying mortgage or assets occur and may
exhibit additional volatility in periods of changing interest rates. When interest rates decline, the prepayment of mortgages
or assets underlying such securities may require the Fund to reinvest such prepaid funds at lower prevailing interest rates,
resulting in reduced returns.
Multi-Style Management Risk.
The management of the Fund's portfolio using different investment styles can result in higher transaction costs and lower
tax efficiency than other funds which adhere to a single investment style.
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.
Smaller Company Securities Risk.
Securities of companies with smaller market capitalizations tend to be more volatile and less liquid than larger company
stocks.
U.S. Government Obligations Risk.
U.S. Government obligations may be adversely affected by changes in interest rates, a default by, or decline in the credit
quality of, the U.S. Government, and may not be backed by the full faith and credit of the U.S. Government.
Value Style Investment Risk.
Value stocks may lose value and may be subject to prolonged depressed valuations.
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 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
Class R6
|
Highest Quarter:
2nd Quarter 2009
|
+20.64%
|
|
Lowest Quarter:
4th Quarter 2008
|
-20.41%
|
|
Year-to-date total return as of 3/31/2013 is +7.66%
|
|
|
Average Annual Total Returns for the periods ended 12/31/2012
|
|
|
Inception Date of Share Class
|
1 Year
|
5 Year
|
Performance Since 6/29/2007
|
|
Class R6
|
6/29/2007
|
15.03%
|
2.11%
|
1.68%
|
|
Dow Jones Global Target 2045 Index (reflects no deduction for fees, expenses, or taxes)
|
|
15.32%
|
2.12%
|
1.83%
|
|
Barclays U.S. Aggregate Bond Index (reflects no deduction for fees, expenses, or taxes)
|
|
4.21%
|
5.95%
|
6.49%
|
|
Russell 3000® Index (reflects no deduction for fees, expenses, or taxes)
|
|
16.42%
|
2.04%
|
1.51%
|
Fund Management
|
Adviser
|
Sub-Adviser
|
Portfolio Manager, Title/Managed Since
|
|
Wells Fargo Funds Management, LLC
|
Global Index Advisors, Inc.
|
Rodney H. Alldredge
, Portfolio Manager / 2007
James P. Lauder
, Portfolio Manager / 2007
Paul T. Torregrosa, PhD
, Portfolio Manager / 2010
|
Purchase and Sale of Fund Shares
Class R6 shares generally are available only to certain retirement plans, including: 401(k) plans, 457 plans, profit sharing
and money purchase pension plans, defined benefit plans, target benefit plans and non-qualified deferred compensation plans.
Class R6 shares also are generally available only to retirement plans where plan level or omnibus accounts are held on the
books of the Fund. Class R6 shares generally are not available to retail accounts.
|
Institutions Purchasing Fund Shares
|
|
Minimum Initial Investment
Class R6: Eligible investors are not subject to a minimum initial investment (financial intermediaries may require different
minimum investment amounts)
Minimum Additional Investment
Class R6: None (financial intermediaries may require different minimum additional investment amounts)
|
Tax Information
By investing in a Fund through a tax-deferred retirement account, you will not be subject to tax on dividends and capital
gains distributions from the Fund or the sale of Fund shares if those amounts remain in the tax-deferred account. Distributions
taken from retirement plan accounts generally are taxable as ordinary income. For special rules concerning tax-deferred retirement
accounts, including applications, restrictions, tax advantages, and potential sales charge waivers, contact your investment
professional. To determine if a retirement plan may be appropriate for you and to obtain further information, consult your
tax adviser.
Target 2050 Fund Summary
Investment Objective
The Fund seeks to approximate, before fees and expenses, the total return of the Dow Jones Target 2050 Index
SM
.
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)
1
|
|
|
|
|
Management Fees
|
0.24%
|
|
Distribution (12b-1) Fees
|
0.00%
|
|
Other Expenses
|
0.11%
|
|
Acquired Fund Fees and Expenses
|
0.27%
|
|
Total Annual Fund Operating Expenses
|
0.62%
|
|
Fee Waiver
|
0.25%
|
|
Total Annual Fund Operating Expenses After Fee Waiver
2
|
0.37%
|
|
1.
|
Expenses have been adjusted as necessary from amounts incurred during the Fund's most recent fiscal year to reflect current
fees and expenses.
|
|
2.
|
The Adviser has committed through June 30, 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. Fees from the
underlying master portfolio(s) are included in 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
|
$38
|
|
3 Years
|
$173
|
|
5 Years
|
$321
|
|
10 Years
|
$750
|
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 19% of the average value of
its portfolio.
Principal Investment Strategies
Under normal circumstances, we invest:
■
at least 80% of the Fund's total assets in equity, fixed income and money market securities designed to approximate the holdings
and weightings of the securities in the Dow Jones Target 2050 Index
SM
.
The Fund is a gateway fund that invests in various master portfolios which in turn invest in a combination of equity, fixed
income and money market securities using an asset allocation strategy designed to replicate, before fees and expenses, the
total return of the Dow Jones Target 2050 Index
SM
. Similar to the methodology of the index, the Fund's investment strategy is to gradually reduce the Fund's potential market
risk exposure over time by re-allocating the Fund's assets among these major asset classes: equity, fixed income and money
market instruments. Generally, the longer the Fund's time horizon, the more of its assets are allocated to equity securities
to pursue capital appreciation over the long term. As the Fund's time horizon shortens, it replaces some of its equity holdings
with fixed income and money market holdings to reduce market risk and price volatility and thereby generally becomes more
conservative in its asset allocation as the Fund's target year approaches and for the first 10 years after it arrives. The
Fund's target year serves as a guide to the relative market risk exposure of the Fund, and your decision to invest in this
Fund or another Wells Fargo Advantage Dow Jones Target Date Fund with a different target year and market risk exposure depends
upon your individual risk tolerance, among other factors.
The "target year" designated in the Fund's name is the same as the year in the name of the Dow Jones Target 2050 Index
SM
. Although the individual goals of each investor with respect to a target year vary, an investor may intend for the target
year to represent the approximate year in or around which the investor plans to begin withdrawing a portion or all of the
investor's investment in the Fund and/or stop making new investments to the Fund. The Fund's goals may not align with the
goals of an investor that seeks to begin to withdraw a portion or all of the investor's investment in the Fund significantly
before or after the Fund's target year. In this respect, the Fund's goals may more closely align with an investor that intends
to begin gradually withdrawing the value of the investor's account on or around the target year. In addition, the Fund will
not have its most conservative asset allocation in the Fund's target year, which may not align with an investor's plan for
withdrawing the investor's investment. The principal value of an investor's investment in the Fund is not guaranteed, and
an investor may experience losses, at any time, including near, at or after the target year designated in the Fund's name.
In addition, there is no guarantee that an investor's investment in the Fund will provide income at, and through the years
following, the target year in the Fund's name in amounts adequate to meet the investor's goals.
Currently, the master portfolios in which the Fund invests are the Wells Fargo Advantage Diversified Stock Portfolio, the
Wells Fargo Advantage Diversified Fixed Income Portfolio, and the Wells Fargo Advantage Short-Term Investment Portfolio. The
Diversified Stock Portfolio and the Diversified Fixed Income Portfolio seek to approximate, before fees and expenses, the
total return of the respective equity and fixed income portions of the Dow Jones Target 2050 Index
SM
by investing in the securities that comprise the sub-indexes representing the equity and fixed income asset classes, respectively,
which securities may include, among others, growth and value stocks, foreign and emerging market equity investments, and securities
of smaller companies, as well as debt securities, including corporate bonds, mortgage- and asset-backed securities and U.S.
and foreign government obligations. The Diversified Stock Portfolio may also use derivatives, such as stock index futures
in order to manage movements of the portfolio against certain indexes. The Diversified Stock Portfolio and the Diversified
Fixed Income Portfolio use an optimization process, which seeks to balance the replication of index performance and security
transaction costs. The Fund invests in the Short-Term Investment Portfolio to represent the cash component of the Dow Jones
Target Date Indexes, but unlike the cash component of the Dow Jones Target 2050 Index
SM
, the Portfolio does not seek to replicate the Barclays 1-3 Month Treasury-Bill Index. This could result in potential tracking
error between the performances of the Fund and the Dow Jones Target 2050 Index
SM
. By the time the Fund reaches its target year in 2050, its risk exposure will approach 28% of the risk of the global equity
market. The Fund will not reach its lowest risk exposure of 20% of the risk of the global equity market until ten years past
the Fund's target year. To measure the Fund's risk and the risk of the global equity market, we use a statistical method known
as below-mean semi-variance, which quantifies portfolio risk levels by measuring only the below-average outcomes. This method
is designed to provide a more useful and nuanced picture of the Fund's risk profile. As of February 28, 2013, the Dow Jones
Target 2050 Index
SM
included equity, fixed income and money market securities in the weights of 90%, 6% and 4%, respectively, which represent
the percentage breakdown of the Fund's assets across the Diversified Stock, Diversified Fixed Income and Short-Term Investment
Portfolios, respectively, as of such date, and may change over time. The Fund reserves the right to change its percentage
allocation among the Portfolios as we deem necessary to meet its investment objective.
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.
Allocation Methodology Risk.
A Fund is subject to the risk that the allocation methodology of the Dow Jones Target Date Index will not meet an investor's
goals because it will not eliminate the investment volatility that could reduce the amount of funds available for an investor
to withdraw when the investor intends to begin to withdraw a portion or all of the investor's investment in the Fund or it
may over-emphasize conservative investments designed to ensure capital conservation and current income, which may ultimately
prevent the investor from achieving the investor's income and appreciation goals.
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.
Emerging Markets Risk.
Foreign investment risks are typically greater for securities in emerging markets, which can be more vulnerable to recessions,
currency volatility, inflation and market failure.
Foreign Investment Risk.
Foreign investments face the potential of heightened illiquidity, greater price volatility and adverse effects of political,
regulatory, tax, currency, economic or other macroeconomic developments.
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).
Growth Style Investment Risk.
Growth stocks may be more expensive relative to the values of other stocks and carry potential for significant volatility
and loss.
Index Tracking Risk.
The ability to track an index may be affected by, among other things, transaction costs and shareholder purchases and redemptions.
Issuer Risk.
The value of a security may decline because of adverse events or circumstances that directly relate to conditions at the
issuer or any entity providing it credit or liquidity support.
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.
There is no guarantee of the Fund's performance or that the Fund will meet its objective. The market value of your investment
may decline and you may suffer investment loss.
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.
Mortgage- and Asset-Backed Securities Risk.
Mortgage- and asset-backed securities may decline in value when defaults on the underlying mortgage or assets occur and may
exhibit additional volatility in periods of changing interest rates. When interest rates decline, the prepayment of mortgages
or assets underlying such securities may require the Fund to reinvest such prepaid funds at lower prevailing interest rates,
resulting in reduced returns.
Multi-Style Management Risk.
The management of the Fund's portfolio using different investment styles can result in higher transaction costs and lower
tax efficiency than other funds which adhere to a single investment style.
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.
Smaller Company Securities Risk.
Securities of companies with smaller market capitalizations tend to be more volatile and less liquid than larger company
stocks.
U.S. Government Obligations Risk.
U.S. Government obligations may be adversely affected by changes in interest rates, a default by, or decline in the credit
quality of, the U.S. Government, and may not be backed by the full faith and credit of the U.S. Government.
Value Style Investment Risk.
Value stocks may lose value and may be subject to prolonged depressed valuations.
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 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
Class R6
|
Highest Quarter:
2nd Quarter 2009
|
+20.91%
|
|
Lowest Quarter:
4th Quarter 2008
|
-20.62%
|
|
Year-to-date total return as of 3/31/2013 is +7.73%
|
|
|
Average Annual Total Returns for the periods ended 12/31/2012
|
|
|
Inception Date of Share Class
|
1 Year
|
5 Year
|
Performance Since 6/29/2007
|
|
Class R6
|
6/29/2007
|
15.12%
|
2.09%
|
1.67%
|
|
Dow Jones Global Target 2050 Index (reflects no deduction for fees, expenses, or taxes)
|
|
15.35%
|
2.13%
|
1.83%
|
|
Barclays U.S. Aggregate Bond Index (reflects no deduction for fees, expenses, or taxes)
|
|
4.21%
|
5.95%
|
6.49%
|
|
Russell 3000® Index (reflects no deduction for fees, expenses, or taxes)
|
|
16.42%
|
2.04%
|
1.51%
|
Fund Management
|
Adviser
|
Sub-Adviser
|
Portfolio Manager, Title/Managed Since
|
|
Wells Fargo Funds Management, LLC
|
Global Index Advisors, Inc.
|
Rodney H. Alldredge
, Portfolio Manager / 2007
James P. Lauder
, Portfolio Manager / 2007
Paul T. Torregrosa, PhD
, Portfolio Manager / 2010
|
Purchase and Sale of Fund Shares
Class R6 shares generally are available only to certain retirement plans, including: 401(k) plans, 457 plans, profit sharing
and money purchase pension plans, defined benefit plans, target benefit plans and non-qualified deferred compensation plans.
Class R6 shares also are generally available only to retirement plans where plan level or omnibus accounts are held on the
books of the Fund. Class R6 shares generally are not available to retail accounts.
|
Institutions Purchasing Fund Shares
|
|
Minimum Initial Investment
Class R6: Eligible investors are not subject to a minimum initial investment (financial intermediaries may require different
minimum investment amounts)
Minimum Additional Investment
Class R6: None (financial intermediaries may require different minimum additional investment amounts)
|
Tax Information
By investing in a Fund through a tax-deferred retirement account, you will not be subject to tax on dividends and capital
gains distributions from the Fund or the sale of Fund shares if those amounts remain in the tax-deferred account. Distributions
taken from retirement plan accounts generally are taxable as ordinary income. For special rules concerning tax-deferred retirement
accounts, including applications, restrictions, tax advantages, and potential sales charge waivers, contact your investment
professional. To determine if a retirement plan may be appropriate for you and to obtain further information, consult your
tax adviser.
Target 2055 Fund Summary
Investment Objective
The Fund seeks to approximate, before fees and expenses, the total return of the Dow Jones Target 2055 Index
SM
.
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)
1
|
|
|
|
|
Management Fees
|
0.25%
|
|
Distribution (12b-1) Fees
|
0.00%
|
|
Other Expenses
|
0.60%
|
|
Acquired Fund Fees and Expenses
|
0.27%
|
|
Total Annual Fund Operating Expenses
|
1.12%
|
|
Fee Waiver
|
0.75%
|
|
Total Annual Fund Operating Expenses After Fee Waiver
2
|
0.37%
|
|
1.
|
Expenses have been adjusted as necessary from amounts incurred during the Fund's most recent fiscal year to reflect current
fees and expenses.
|
|
2.
|
The Adviser has committed through June 30, 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. Fees from the
underlying master portfolio(s) are included in 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
|
$38
|
|
3 Years
|
$281
|
|
5 Years
|
$544
|
|
10 Years
|
$1,296
|
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 19% of the average value of
its portfolio.
Principal Investment Strategies
Under normal circumstances, we invest:
■
at least 80% of the Fund's total assets in equity, fixed income and money market securities designed to approximate the holdings
and weightings of the securities in the Dow Jones Target 2055 Index
SM
.
The Fund is a gateway fund that invests in various master portfolios which in turn invest in a combination of equity, fixed
income and money market securities using an asset allocation strategy designed to replicate, before fees and expenses, the
total return of the Dow Jones Target 2055 Index
SM
. Similar to the methodology of the index, the Fund's investment strategy is to gradually reduce the Fund's potential market
risk exposure over time by re-allocating the Fund's assets among these major asset classes: equity, fixed income and money
market instruments. Generally, the longer the Fund's time horizon, the more of its assets are allocated to equity securities
to pursue capital appreciation over the long term. As the Fund's time horizon shortens, it replaces some of its equity holdings
with fixed income and money market holdings to reduce market risk and price volatility and thereby generally becomes more
conservative in its asset allocation as the Fund's target year approaches and for the first 10 years after it arrives. The
Fund's target year serves as a guide to the relative market risk exposure of the Fund, and your decision to invest in this
Fund or another Wells Fargo Advantage Dow Jones Target Date Fund with a different target year and market risk exposure depends
upon your individual risk tolerance, among other factors.
The "target year" designated in the Fund's name is the same as the year in the name of the Dow Jones Target 2055 Index
SM
. Although the individual goals of each investor with respect to a target year vary, an investor may intend for the target
year to represent the approximate year in or around which the investor plans to begin withdrawing a portion or all of the
investor's investment in the Fund and/or stop making new investments to the Fund. The Fund's goals may not align with the
goals of an investor that seeks to begin to withdraw a portion or all of the investor's investment in the Fund significantly
before or after the Fund's target year. In this respect, the Fund's goals may more closely align with an investor that intends
to begin gradually withdrawing the value of the investor's account on or around the target year. In addition, the Fund will
not have its most conservative asset allocation in the Fund's target year, which may not align with an investor's plan for
withdrawing the investor's investment. The principal value of an investor's investment in the Fund is not guaranteed, and
an investor may experience losses, at any time, including near, at or after the target year designated in the Fund's name.
In addition, there is no guarantee that an investor's investment in the Fund will provide income at, and through the years
following, the target year in the Fund's name in amounts adequate to meet the investor's goals.
Currently, the master portfolios in which the Fund invests are the Wells Fargo Advantage Diversified Stock Portfolio, the
Wells Fargo Advantage Diversified Fixed Income Portfolio, and the Wells Fargo Advantage Short-Term Investment Portfolio. The
Diversified Stock Portfolio and the Diversified Fixed Income Portfolio seek to approximate, before fees and expenses, the
total return of the respective equity and fixed income portions of the Dow Jones Target 2055 Index
SM
by investing in the securities that comprise the sub-indexes representing the equity and fixed income asset classes, respectively,
which securities may include, among others, growth and value stocks, foreign and emerging market equity investments, and securities
of smaller companies, as well as debt securities, including corporate bonds, mortgage- and asset-backed securities and U.S.
and foreign government obligations. The Diversified Stock Portfolio may also use derivatives, such as stock index futures
in order to manage movements of the portfolio against certain indexes. The Diversified Stock Portfolio and the Diversified
Fixed Income Portfolio use an optimization process, which seeks to balance the replication of index performance and security
transaction costs. The Fund invests in the Short-Term Investment Portfolio to represent the cash component of the Dow Jones
Target Date Indexes, but unlike the cash component of the Dow Jones Target 2055 Index
SM
, the Portfolio does not seek to replicate the Barclays 1-3 Month Treasury-Bill Index. This could result in potential tracking
error between the performances of the Fund and the Dow Jones Target 2055 Index
SM
. By the time the Fund reaches its target year in 2055, its risk exposure will approach 28% of the risk of the global equity
market. The Fund will not reach its lowest risk exposure of 20% of the risk of the global equity market until ten years past
the Fund's target year. To measure the Fund's risk and the risk of the global equity market, we use a statistical method known
as below-mean semi-variance, which quantifies portfolio risk levels by measuring only the below-average outcomes. This method
is designed to provide a more useful and nuanced picture of the Fund's risk profile. As of February 28, 2013, the Dow Jones
Target 2055 Index
SM
included equity, fixed income and money market securities in the weights of 90%, 6% and 4%, respectively, which represent
the percentage breakdown of the Fund's assets across the Diversified Stock, Diversified Fixed Income and Short-Term Investment
Portfolios, respectively, as of such date, and may change over time. The Fund reserves the right to change its percentage
allocation among the Portfolios as we deem necessary to meet its investment objective.
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.
Allocation Methodology Risk.
A Fund is subject to the risk that the allocation methodology of the Dow Jones Target Date Index will not meet an investor's
goals because it will not eliminate the investment volatility that could reduce the amount of funds available for an investor
to withdraw when the investor intends to begin to withdraw a portion or all of the investor's investment in the Fund or it
may over-emphasize conservative investments designed to ensure capital conservation and current income, which may ultimately
prevent the investor from achieving the investor's income and appreciation goals.
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.
Emerging Markets Risk.
Foreign investment risks are typically greater for securities in emerging markets, which can be more vulnerable to recessions,
currency volatility, inflation and market failure.
Foreign Investment Risk.
Foreign investments face the potential of heightened illiquidity, greater price volatility and adverse effects of political,
regulatory, tax, currency, economic or other macroeconomic developments.
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).
Growth Style Investment Risk.
Growth stocks may be more expensive relative to the values of other stocks and carry potential for significant volatility
and loss.
Index Tracking Risk.
The ability to track an index may be affected by, among other things, transaction costs and shareholder purchases and redemptions.
Issuer Risk.
The value of a security may decline because of adverse events or circumstances that directly relate to conditions at the
issuer or any entity providing it credit or liquidity support.
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.
There is no guarantee of the Fund's performance or that the Fund will meet its objective. The market value of your investment
may decline and you may suffer investment loss.
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.
Mortgage- and Asset-Backed Securities Risk.
Mortgage- and asset-backed securities may decline in value when defaults on the underlying mortgage or assets occur and may
exhibit additional volatility in periods of changing interest rates. When interest rates decline, the prepayment of mortgages
or assets underlying such securities may require the Fund to reinvest such prepaid funds at lower prevailing interest rates,
resulting in reduced returns.
Multi-Style Management Risk.
The management of the Fund's portfolio using different investment styles can result in higher transaction costs and lower
tax efficiency than other funds which adhere to a single investment style.
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.
Smaller Company Securities Risk.
Securities of companies with smaller market capitalizations tend to be more volatile and less liquid than larger company
stocks.
U.S. Government Obligations Risk.
U.S. Government obligations may be adversely affected by changes in interest rates, a default by, or decline in the credit
quality of, the U.S. Government, and may not be backed by the full faith and credit of the U.S. Government.
Value Style Investment Risk.
Value stocks may lose value and may be subject to prolonged depressed valuations.
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 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
Class R6
|
Highest Quarter:
1st Quarter 2012
|
+11.23%
|
|
Lowest Quarter:
2nd Quarter 2012
|
-4.39%
|
|
Year-to-date total return as of 3/31/2013 is +7.64%
|
|
|
Average Annual Total Returns for the periods ended 12/31/2012
|
|
|
Inception Date of Share Class
|
1 Year
|
5 Year
|
Performance Since 6/30/2011
|
|
Class R6
|
6/30/2011
|
15.15%
|
N/A
|
3.68%
|
|
Dow Jones Global Target 2055 Index (reflects no deduction for fees, expenses, or taxes)
|
|
15.35%
|
N/A
|
3.47%
|
|
Barclays U.S. Aggregate Bond Index (reflects no deduction for fees, expenses, or taxes)
|
|
4.21%
|
N/A
|
6.16%
|
|
Russell 3000® Index (reflects no deduction for fees, expenses, or taxes)
|
|
16.42%
|
N/A
|
6.92%
|
Fund Management
|
Adviser
|
Sub-Adviser
|
Portfolio Manager, Title/Managed Since
|
|
Wells Fargo Funds Management, LLC
|
Global Index Advisors, Inc.
|
Rodney H. Alldredge
, Portfolio Manager / 2011
James P. Lauder
, Portfolio Manager / 2011
Paul T. Torregrosa, PhD
, Portfolio Manager / 2011
|
Purchase and Sale of Fund Shares
Class R6 shares generally are available only to certain retirement plans, including: 401(k) plans, 457 plans, profit sharing
and money purchase pension plans, defined benefit plans, target benefit plans and non-qualified deferred compensation plans.
Class R6 shares also are generally available only to retirement plans where plan level or omnibus accounts are held on the
books of the Fund. Class R6 shares generally are not available to retail accounts.
|
Institutions Purchasing Fund Shares
|
|
Minimum Initial Investment
Class R6: Eligible investors are not subject to a minimum initial investment (financial intermediaries may require different
minimum investment amounts)
Minimum Additional Investment
Class R6: None (financial intermediaries may require different minimum additional investment amounts)
|
Tax Information
By investing in a Fund through a tax-deferred retirement account, you will not be subject to tax on dividends and capital
gains distributions from the Fund or the sale of Fund shares if those amounts remain in the tax-deferred account. Distributions
taken from retirement plan accounts generally are taxable as ordinary income. For special rules concerning tax-deferred retirement
accounts, including applications, restrictions, tax advantages, and potential sales charge waivers, contact your investment
professional. To determine if a retirement plan may be appropriate for you and to obtain further information, consult your
tax adviser.
The "Dow Jones Target Date Indexes
SM
" are products of Dow Jones Indexes, a licensed trademark of CME Group Index Services LLC ("CME"), and have been licensed
for use. "Dow Jones®", "Dow Jones Target Date Indexes
SM
"and "Dow Jones Indexes" are service marks of Dow Jones Trademark Holdings, LLC ("Dow Jones"), have been licensed to CME and
have been licensed for use for certain purposes by Global Index Advisors, Inc. and Wells Fargo Funds Management, LLC. The
Wells Fargo Advantage Dow Jones Target Date Funds, based on the Dow Jones Target Date Indexes
SM
, are not sponsored, endorsed, sold or promoted by Dow Jones, CME or their respective affiliates and Dow Jones, CME and their
respective affiliates make no representation regarding the advisability of investing in such product(s).
Throughout this Prospectus, the Wells Fargo Advantage Dow Jones Target Today Fund
SM
is referred to as the Target Today Fund; the Wells Fargo Advantage Dow Jones Target 2010 Fund
SM
is referred to as the Target 2010 Fund; the Wells Fargo Advantage Dow Jones Target 2015 Fund
SM
is referred to as the Target 2015 Fund; the Wells Fargo Advantage Dow Jones Target 2020 Fund
SM
is referred to as the Target 2020 Fund; the Wells Fargo Advantage Dow Jones Target 2025 Fund
SM
is referred to as the Target 2025 Fund; the Wells Fargo Advantage Dow Jones Target 2030 Fund
SM
is referred to as the Target 2030 Fund; the Wells Fargo Advantage Dow Jones Target 2035 Fund
SM
is referred to as the Target 2035 Fund; the Wells Fargo Advantage Dow Jones Target 2040 Fund
SM
is referred to as the Target 2040 Fund; the Wells Fargo Advantage Dow Jones Target 2045 Fund
SM
is referred to as the Target 2045 Fund; the Wells Fargo Advantage Dow Jones Target 2050 Fund
SM
is referred to as the Target 2050 Fund; the Wells Fargo Advantage Dow Jones Target 2055 Fund
SM
is referred to as the Target 2055 Fund; and collectively the Funds are referred to as the Target Date Funds.
Key Fund Information
This Prospectus contains information about one or more Funds within the
Wells Fargo Advantage Funds
®
family and is designed to provide you with important information to help you with your investment decisions. Please read
it carefully and keep it for future reference.
In this Prospectus, "we" generally refers to Wells Fargo Funds Management, LLC ("Funds Management"), the relevant sub-adviser(s),
if applicable, or the portfolio manager(s). "We" may also refer to a Fund's other service providers. "You" refers to the shareholder
or potential investor.
Investment Objective and Principal Investment Strategies
The investment objective of each Fund in this Prospectus is non-fundamental; that is, it can be changed by a vote of the Board
of Trustees alone. The objective and strategies description for each Fund tells you:
■
what the Fund is trying to achieve;
■
how we intend to invest your money; and
■
what makes the Fund different from the other Funds offered in this Prospectus.
This section also provides a summary of each Fund's principal investment and policies and practices. Unless otherwise indicated,
these investment policies and practices apply on an ongoing basis.
Principal Risk Factors
This section lists the principal risk factors for each Fund and indirectly, the principal risk factors for the master portfolios
in which each Fund invests. A complete description of these and other risks is found in the "Description of Principal Investment
Risks" section. It is possible to lose money by investing in a Fund.
Portfolio Asset Allocations
This section provides a percentage breakdown of a Fund's assets across different master portfolios.
Master/Gateway® Structure
The Funds are gateway funds in a
Master/Gateway
structure. This structure is more commonly known as a master/feeder structure. In this structure, a gateway or feeder fund
invests substantially all of its assets in one or more master portfolios or other Funds of
Wells Fargo Advantage Funds
, and may invest directly in securities, to achieve its investment objective. Multiple gateway funds investing in the same
master portfolio or Fund can enhance their investment opportunities and reduce their expense ratios by sharing the costs and
benefits of a larger pool of assets. References to the investment activities of a gateway fund are intended to refer to the
investment activities of the master portfolio(s) in which it invests.
Target Date Funds
|
Adviser
|
Wells Fargo Funds Management, LLC
|
|
Sub-Adviser
|
Global Index Advisors, Inc.
|
|
Portfolio Managers
|
Rodney H. Alldredge
James P. Lauder
Paul T. Torregrosa
|
|
Target Today Fund
|
Fund Inception: 3/1/1994
|
Ticker: WOTDX
Fund Number: 707
|
|
Target 2010 Fund
|
Fund Inception: 3/1/1994
|
Ticker: WFOAX
Fund Number: 708
|
|
Target 2015 Fund
|
Fund Inception: 6/29/2007
|
Ticker: WFSCX
Fund Number: 3151
|
|
Target 2020 Fund
|
Fund Inception: 3/1/1994
|
Ticker: WFOBX
Fund Number: 709
|
|
Target 2025 Fund
|
Fund Inception: 6/29/2007
|
Ticker: WFTYX
Fund Number: 3152
|
|
Target 2030 Fund
|
Fund Inception: 3/1/1994
|
Ticker: WFOOX
Fund Number: 710
|
|
Target 2035 Fund
|
Fund Inception: 6/29/2007
|
Ticker: WFQRX
Fund Number: 3153
|
|
Target 2040 Fund
|
Fund Inception: 3/1/1994
|
Ticker: WFOSX
Fund Number: 711
|
|
Target 2045 Fund
|
Fund Inception: 6/29/2007
|
Ticker: WFQPX
Fund Number: 3154
|
|
Target 2050 Fund
|
Fund Inception: 6/29/2007
|
Ticker: WFQFX
Fund Number: 3155
|
|
Target 2055 Fund
|
Fund Inception: 6/30/2011
|
Ticker: WFQUX
Fund Number: 4150
|
Investment Objective
Each Fund's objective is to approximate, before fees and expenses, the total return of the appropriate Dow Jones Target Date
Index. Specifically:
■
The Target Today Fund seeks to approximate, before fees and expenses, the total return of the Dow Jones Target Today Index
SM
.
■
The Target 2010 Fund seeks to approximate, before fees and expenses, the total return of the Dow Jones Target 2010 Index
SM
.
■
The Target 2015 Fund seeks to approximate, before fees and expenses, the total return of the Dow Jones Target 2015 Index
SM
.
■
The Target 2020 Fund seeks to approximate, before fees and expenses, the total return of the Dow Jones Target 2020 Index
SM
.
■
The Target 2025 Fund seeks to approximate, before fees and expenses, the total return of the Dow Jones Target 2025 Index
SM
.
■
The Target 2030 Fund seeks to approximate, before fees and expenses, the total return of the Dow Jones Target 2030 Index
SM
.
■
The Target 2035 Fund seeks to approximate, before fees and expenses, the total return of the Dow Jones Target 2035 Index
SM
.
■
The Target 2040 Fund seeks to approximate, before fees and expenses, the total return of the Dow Jones Target 2040 Index
SM
.
■
The Target 2045 Fund seeks to approximate, before fees and expenses, the total return of the Dow Jones Target 2045 Index
SM
.
■
The Target 2050 Fund seeks to approximate, before fees and expenses, the total return of the Dow Jones Target 2050 Index
SM
.
■
The Target 2055 Fund seeks to approximate, before fees and expenses, the total return of the Dow Jones Target 2055 Index
SM
.
The Fund's Board of Trustees can change these investment objectives without a shareholder vote.
Principal Investment Strategies
Under normal circumstances, we invest:
■
at least 80% of each Fund's total assets in equity, fixed income and money market securities designed to approximate the holdings
and weightings of the securities in the appropriate Dow Jones Target Date Index.
Each Fund is a gateway fund that invests in various master portfolios which in turn invest in a combination of equity, fixed
income and money market securities using an asset allocation strategy designed to replicate, before fees and expenses, the
total return of a Dow Jones Target Date Index that has the same target year as the Fund. Similar to the methodology of the
Dow Jones Target Date Indexes, each Fund's investment strategy is to gradually reduce the Fund's potential market risk exposure
over time by re-allocating the Funds' assets among these major asset classes: equity, fixed income and money market instruments.
Funds with longer time horizons generally allocate more of their assets to equity securities to pursue capital appreciation
over the long term. Funds with shorter time horizons replace some of their equity holdings with fixed income and money market
holdings to reduce market risk and price volatility. Each Fund's allocation among the three major asset classes generally
becomes more conservative in its asset allocation as the Fund's target year approaches and for the first 10 years after it
arrives. Each Fund's target year serves as a guide to the relative market risk exposure of the Fund. For instance, the Target
2055 Fund has the most aggressive asset allocation of the Funds and the Target Today Fund has the most conservative asset
allocation of the Funds. If you have a low risk tolerance, you may not wish to invest in the Target 2055 Fund, even if you
intend to begin withdrawing a portion or all of your investment in the Fund in the year 2055. Conversely, you may feel comfortable
choosing a more aggressive Fund for a near-term investment goal if you have a higher risk tolerance.
The "target year" designated in a Fund's name is the same as the year in the name of its corresponding Dow Jones Target Date
Index. Although the individual goals of each investor with respect to a target year vary, an investor may intend for the target
year to represent the approximate year in or around which the investor plans to begin withdrawing a portion or all of the
investor's investment in the Fund and/or stop making new investments to the Fund. A Fund's goals may not align with the goals
of an investor that seeks to begin to withdraw a portion or all of the investor's investment in the Fund significantly before
or after the Fund's target year. In this respect, a Fund's goals may more closely align with an investor that intends to begin
gradually withdrawing the value of the investor's account on or around the target year. In addition, except for the Target
Today Fund, a Fund will not have its most conservative asset allocation in the Fund's target year, which may not align with
an investor's plan for withdrawing the investor's investment. The principal value of an investor's investment in a Fund is
not guaranteed, and an investor may experience losses, at any time, including near, at or after the target year designated
in the Fund's name. In addition, there is no guarantee that an investor's investment in a Fund will provide income at, and
through the years following, the target year in amounts adequate to meet the investor's goals.
Currently, the master portfolios in which the Funds invest are the Wells Fargo Advantage Diversified Stock Portfolio, the
Wells Fargo Advantage Diversified Fixed Income Portfolio, and the Wells Fargo Advantage Short-Term Investment Portfolio. The
Diversified Stock Portfolio seeks to approximate, before fees and expenses, the total return of the equity portion of the
Dow Jones Target Date Indexes by investing in the securities that comprise the sub-indexes representing the equity asset class,
which securities may include, among others, growth and value stocks, foreign and emerging market equity investments, and securities
of smaller companies. The Diversified Stock Portfolio may also use derivatives, such as stock index futures in order to manage
movements of the portfolio against certain indexes. The Diversified Fixed Income Portfolio seeks to approximate, before fees
and expenses, the total return of the fixed income portion of the Dow Jones Target Date Indexes by investing in the securities
that comprise the sub-indexes representing the fixed income asset class, which securities may include, among others, debt
securities, including corporate bonds, mortgage- and asset-backed securities, U.S. and foreign government obligations and
derivatives. The Diversified Stock Portfolio and the Diversified Fixed Income Portfolio use an optimization process, which
seeks to balance the replication of index performance and security transaction costs. Using a statistical sampling technique,
each of these master portfolios purchases the most liquid securities in the index, in approximately the same proportion as
the index. To replicate the performance of the less liquid securities, each of these master portfolios attempts to match the
industry and risk characteristics of those securities, without incurring the transaction costs associated with purchasing
every security in the index. This approach attempts to balance the goal of replicating index performance against the goal
of managing transaction costs.
The Funds invest in the Short-Term Investment Portfolio to represent the cash component of the Dow Jones Target Date Indexes.
The Short-Term Investment Portfolio invests in high-quality money market instruments, including U.S. Government obligations,
obligations of foreign and domestic banks, short-term corporate debt securities and repurchase agreements. Unlike the cash
component of the Dow Jones Target Date Indexes, the Short-Term Investment Portfolio does not seek to replicate the Barclays
1-3 Month Treasury-Bill Index. This could result in potential tracking error between the performances of the Funds and the
Dow Jones Target Date Indexes.
Although they do not currently intend to do so, the Funds reserve the right to invest in more or fewer master portfolios,
in other Wells Fargo Advantage Funds, or directly in a portfolio of securities.
Principal Risk Factors
The principal value of an investor's investment in a Fund is not guaranteed at any time, including in the target year designated
in the Fund's name. In addition, each Fund is primarily subject to the risks mentioned below to the extent that each Fund
is exposed to these risks depending on its asset allocation and target year:
|
■
Allocation Methodology Risk
■
Counter-Party Risk
■
Debt Securities Risk
■
Derivatives Risk
■
Emerging Markets Risk
■
Foreign Investment Risk
■
Futures Risk
■
Growth Style Investment Risk
■
Index Tracking Risk
■
Issuer Risk
|
■
Leverage Risk
■
Liquidity Risk
■
Management Risk
■
Market Risk
■
Mortgage- and Asset-Backed Securities Risk
■
Multi-Style Management Risk
■
Regulatory Risk
■
Smaller Company Securities Risk
■
U.S. Government Obligations Risk
■
Value Style Investment Risk
|
These and other risks could cause you to lose money in your investment in the Fund and could adversely affect the Fund's net
asset value, yield and total return. These risks are described in the "Description of Principal Investment Risks" section.
Risk Tolerance
Two general rules of investing have shaped the Funds' strategies:
(1) Higher investment returns usually go hand-in-hand with higher risk. Put another way, the greater an investment's potential
return, the greater its potential for loss. Historically, for example, stocks have outperformed bonds, but the worst year
for stocks on record was much worse than the worst year for bonds; and
(2) Generally, the longer an investor's time horizon, the greater the capacity or ability to withstand market volatility because
there is more time to recoup any losses that might be incurred.
As illustrated by the line graph below, the Target Date Funds with longer time horizons are subject to more risk. This normally
gives investors the potential for greater returns in the early years of a Fund than in the years immediately preceding or
after the Fund's target date. As a Fund approaches its target year, and its investors have less time to recover from market
declines, the Fund reduces its risk exposure. This reduction in risk exposure is intended to help secure the value of your
investment as the time nears for you to begin withdrawing a portion or all of it. The graph below shows the relative amount
of potential equity risk that each Fund is expected to assume given its time horizon. To measure the Fund's risk and the risk
of the global equity market, we use a statistical method known as below-mean semi-variance, which quantifies portfolio risk
levels by measuring only the below-average outcomes. This method is designed to provide a more useful and nuanced picture
of the Fund's risk profile. Information is presented as of February 28, 2013.
When and After a Fund Reaches its Target Year
As illustrated above, by the time a Fund reaches its target year, its risk exposure will approach 28% of the risk of the global
equity market. A Fund will not reach its lowest risk exposure of 20% of the risk of the global equity market until ten years
past the Fund's target year. During the ten-year period after the Fund's target year, the Fund will increasingly resemble
the Target Today Fund. At the end of the ten-year period, we will likely combine the Fund with the Target Today Fund.
Portfolio Asset Allocations
Each Fund's asset allocation is determined using the index methodology described in the "Information on Dow Jones Target Date
Indexes" section, which results in a systematic reduction in potential market risk exposure over time as illustrated in the
line graph above. This methodology provides you with higher exposure to market risk in the early years of investing and lower
exposure to market risk in the years near the Fund's target year and 10 years thereafter. Each Fund reserves the right to
adjust its market risk exposure upward or downward to meet its investment objective.
As of February 28, 2013, the Dow Jones Target Date Indexes included equity, fixed income and money market securities in the
weights shown in the table below. The weightings of the indexes in equity, fixed income and money market securities shown
in the table below represent a percentage breakdown of each corresponding Fund's assets across the Diversified Stock, Diversified
Fixed Income and Short-Term Investment Portfolios, respectively, as of such date, and may change over time. The percentage
risk of the global equity market to which the Fund is exposed will not necessarily be the same as, and will typically be greater
than, the Fund's percentage investment in the Diversified Stock Portfolio in order to account for the risks associated with
investments in fixed income and money market securities. Each Fund reserves the right to change its percentage allocation
in the Diversified Stock Portfolio, Diversified Fixed Income Portfolio and Short-Term Investment Portfolio as we deem necessary
to meet its investment objective.
|
|
Equity Securities
|
Fixed Income Securities
|
Money Market Securities
|
|
Dow Jones Target Today Index
|
15%
|
80%
|
5%
|
|
Dow Jones Target 2010 Index
|
23%
|
73%
|
4%
|
|
Dow Jones Target 2015 Index
|
32%
|
64%
|
4%
|
|
Dow Jones Target 2020 Index
|
44%
|
52%
|
4%
|
|
Dow Jones Target 2025 Index
|
56%
|
40%
|
4%
|
|
Dow Jones Target 2030 Index
|
68%
|
28%
|
4%
|
|
Dow Jones Target 2035 Index
|
79%
|
17%
|
4%
|
|
Dow Jones Target 2040 Index
|
86%
|
10%
|
4%
|
|
Dow Jones Target 2045 Index
|
90%
|
6%
|
4%
|
|
Dow Jones Target 2050 Index
|
90%
|
6%
|
4%
|
|
Dow Jones Target 2055 Index
|
90%
|
6%
|
4%
|
Information on Dow Jones Target Date Indexes
Index Performance
While the objective of each Fund is to replicate, before fees and expenses, the total return of its target index, the performance
shown for each target index is not the past performance of the corresponding Wells Fargo Advantage Dow Jones Target Date Fund
or any other investment. Index performance does not include any fees and expenses associated with investing, including management
fees and brokerage costs, and would be lower if it did. Past index performance is no guarantee of future results, either for
the index or for any mutual fund. You cannot invest directly in an index. Performance history shown for a target index may
be shorter than that of certain Funds.
Index Methodology
The Dow Jones Target Date Indexes are a series of Indexes designed as benchmarks for multi-asset class portfolios with market
risk profiles that become more conservative over time. Each Index is a blend of sub-indexes representing three major asset
classes: equity securities, fixed income securities and money market instruments. The allocation of each Index generally becomes
more conservative as the Index's time horizon becomes shorter. The Index weightings among the major asset classes are adjusted
monthly based on a published set of Index rules. The Indexes with longer time horizons have higher allocations to equity securities,
while the Indexes with shorter time horizons replace some of their stock allocations with allocations to fixed income securities
and money market instruments.
Each Dow Jones Target Date Index is comprised of a set of equity, bond and cash sub-indexes. The equity component is represented
by the Dow Jones U.S. Style Indexes (sub-indexes numbers 1 through 6 in the table on the next page), Dow Jones Asia/Pacific
Developed Index, Dow Jones Europe/Canada/Middle East Developed Index and Dow Jones Emerging Markets Large-Cap Total Stock
Market (TSM) Specialty Index. The bond component is represented by the Barclays U.S. Government Bond, U.S. Corporate Investment
Grade Bond, U.S. Mortgage Backed Securities and Global Treasury: Majors Ex U.S. Indexes. Finally, the cash component is represented
by the Barclays U.S. Treasury Bills: 1-3 Months Index.
The equity asset class is currently comprised of nine sub-asset classes; the fixed income asset class is currently comprised
of four sub-asset classes; the money market asset class is currently comprised of one sub-asset class. Each sub-asset class
is represented by an underlying index and is equally weighted with other sub-asset classes within its major asset class. The
market risk of each Dow Jones Target Date Index will gradually decline over a period of years by changing its allocation among
the three major asset classes and not by excluding any asset classes or sub-asset classes or by changing allocations among
sub-asset classes.
The sub-asset classes that currently comprise each major asset class of the Dow Jones Target Date Indexes are detailed in
the table below:
|
Major Asset Classes
|
Equity Component
|
Fixed Income Component
|
Money Market Component
|
|
Sub-Asset Classes
1
|
1. Dow Jones U.S. Large-Cap Growth Index
|
1. Barclays U.S. Government Bond Index
|
1. Barclays U.S. Treasury Bills: 1-3 Months Index
|
|
|
2. Dow Jones U.S. Large-Cap Value Index
|
2. Barclays U.S. Corporate Investment Grade Bond Index
|
|
|
|
3. Dow Jones U.S. Mid-Cap Growth Index
|
3. Barclays U.S. Mortgage Backed Securities Index
|
|
|
|
4. Dow Jones U.S. Mid-Cap Value Index
|
4. Barclays Global Treasury: Majors Ex US Index
|
|
|
|
5. Dow Jones U.S. Small-Cap Growth Index
|
|
|
|
|
6. Dow Jones U.S. Small-Cap Value Index
|
|
|
|
|
7. Dow Jones Asia/Pacific Developed Index
|
|
|
|
|
8. Dow Jones Europe/Canada/Middle East Developed Index
|
|
|
|
|
9. Dow Jones Emerging Markets Large-Cap Total Stock Market (TSM) Specialty Index
|
|
|
|
1.
|
Additional information about the sub-indexes comprising the sub-asset classes is available in the Statement of Additional
Information.
|
Each Dow Jones Target Date Index will exhibit higher market risk in its early years and lower market risk in the years approaching
its target year. At more than 35 years prior to the target year, the Index's targeted risk level is set at 90% of the risk
of the global equity market. The global equity market is measured by the sub-indexes comprising the equity component of the
Dow Jones Target Date Indexes. The major asset classes are rebalanced monthly within the Index to create an efficient asset
allocation that maintains a targeted 90% risk level. At 35 years before the target year, each Index will begin to gradually
reduce market risk. A new targeted risk level is calculated each month as a function of the current risk of the equity component
and the number of months remaining to the Index's target year. The monthly risk reductions continue until the Index reflects
20% of the risk of the global equity market, on December 1 of the year ten years after the Index's target year. Once an Index
reaches that date, it always reflects 20% of the risk of the global equity market.
Description of Principal Investment Risks
Understanding the risks involved in mutual fund investing will help you make an informed decision that takes into account
your risk tolerance and preferences. The factors that are most likely to have a material effect on a particular Fund as a
whole are called "principal risks." The principal risks for each Fund and indirectly, the principal risk factors for the master
portfolios in which the Fund invests, have been previously identified and are described below. Additional information about
the principal risks is included in the Statement of Additional Information.
Allocation Methodology Risk
A Fund is subject to the risk that the allocation methodology of the Dow Jones Target Date Index, whose total returns it seeks
to approximate, before fees and expenses, will not meet an investor's goals. The allocation methodology of the Dow Jones Target
Date Index will not eliminate the investment volatility that could reduce the amount of funds available for an investor to
withdraw when the investor intends to begin to withdraw a portion or all of the investor's investment in the Fund. This risk
is greater for an investor who begins to withdraw a portion or all of the investor's investment in the Fund before, in or
around the Fund's target year. Conversely, for an investor who begins to withdraw a portion or all of the investor's investment
in the Fund some time after the Fund's target year, there is a greater risk that the allocation methodology of the particular
Dow Jones Target Date Index may over-emphasize conservative investments designed to ensure capital conservation and current
income, which may ultimately prevent the investor from achieving the investor's income and appreciation goals. There can be
no assurance that an investor's investment in a Fund will provide income at, and through the years following, the target year
in a Fund's name in amounts adequate to meet the investor's goals.
Counter-Party Risk
When a Fund enters into an investment contract, such as a derivative or a repurchase or reverse repurchase agreement, the
Fund is exposed to the risk that the other party will not fulfill its contractual obligations. For example, in a repurchase
agreement, there exists the risk that where the Fund buys a security from a seller that agrees to repurchase the security
at an agreed upon price and time, the seller will not repurchase the security. Similarly, the Fund is exposed to counter-party
risk if it engages in a reverse repurchase agreement where a broker-dealer agrees to buy securities and the Fund agrees to
repurchase them at a later date.
Debt Securities Risk
Debt securities, such as notes and bonds, are subject to credit risk and interest rate risk. Credit risk is the possibility
that an issuer or credit support provider of an instrument will be unable to make interest payments or repay principal when
due. and that the value of a debt security may decline if an issuer defaults or if its credit quality deteriorates. Changes
in the financial strength of an issuer or credit support provider or changes in the credit rating of a security may affect
its value. Interest rate risk is the risk that market interest rates may increase, which tends to reduce the resale value
of certain debt securities, including U.S. Government obligations. Debt securities with longer durations are generally more
sensitive to interest rate changes than those with shorter durations. Interest rates have remained at historical lows for
an extended period of time. If interest rates rise quickly, it may have a pronounced negative effect on the value of certain
debt securities. Changes in market interest rates do not affect the rate payable on an existing debt security, unless the
instrument has adjustable or variable rate features, which can reduce its exposure to interest rate risk. Changes in market
interest rates may also extend or shorten the duration of certain types of instruments, such as asset-backed securities, thereby
affecting their value and returns. Debt securities may also have, or become subject to, liquidity constraints.
Derivatives Risk
The term "derivatives" covers a broad range of investments, including futures, options and swap agreements. In general, a
derivative refers to any financial instrument whose value is derived, at least in part, from the price of another security
or a specified index, asset or rate. The use of derivatives presents risks different from, and possibly greater than, the
risks associated with investing directly in traditional securities. The use of derivatives can lead to losses because of adverse
movements in the price or value of the underlying asset, index or rate, which may be magnified by certain features of the
derivatives. These risks are heightened when the portfolio manager uses derivatives to enhance a Fund's return or as a substitute
for a position or security, rather than solely to hedge (or offset) the risk of a position or security held by the Fund. The
success of management's derivatives strategies will also be affected by its ability to assess and predict the impact of market
or economic developments on the underlying asset, index or rate and the derivative itself, without the benefit of observing
the performance of the derivative under all possible market conditions. Certain derivative positions may be difficult to close
out when a Fund's portfolio manager may believe it would be appropriate to do so. Certain derivative positions (e.g., over-the-counter
swaps) are subject to counterparty risk.
The U.S. government recently enacted legislation that provides for new regulation of the derivatives market, including clearing,
margin, reporting and registration requirements. Because the legislation leaves much to rule making, its ultimate impact remains
unclear. New regulations could, among other things, restrict a Fund's ability to engage in derivatives transactions (for example,
by making certain types of derivatives transactions no longer available to the Fund) and/or increase the costs of such derivatives
transactions (for example, by increasing margin or capital requirements), and the Fund may be unable to execute its investment
strategy as a result. It is unclear how the regulatory changes will affect counterparty risk.
Emerging Markets Risk
Emerging markets securities typically present even greater exposure to the risks described under "Foreign Investment Risk"
and may be particularly sensitive to certain economic changes. For example, emerging market countries are typically more dependent
on exports and are therefore more vulnerable to recessions in other countries. Emerging markets may be under-capitalized and
have less developed legal and financial systems than markets in the developed world. Additionally, emerging markets may have
volatile currencies and may be more sensitive than more mature markets to a variety of economic factors. Emerging market securities
also may be less liquid than securities of more developed countries and could be difficult to sell, particularly during a
market downturn.
Foreign Investment Risk
Foreign investments, including American Depositary Receipts ("ADRs") and similar investments, are subject to more risks than
U.S. domestic investments. These additional risks may potentially include lower liquidity, greater price volatility and risks
related to adverse political, regulatory, market or economic developments. Foreign companies also may be subject to significantly
higher levels of taxation than U.S. companies, including potentially confiscatory levels of taxation, thereby reducing the
earnings potential of such foreign companies. In addition, amounts realized on sales or distributions of foreign securities
may be subject to high and potentially confiscatory levels of foreign taxation and withholding when compared to comparable
transactions in U.S. securities. Investments in foreign securities involve exposure to changes in foreign currency exchange
rates. Such changes may reduce the U.S. dollar value of the investment. Foreign investments are also subject to risks including
potentially higher withholding and other taxes, trade settlement, custodial, and other operational risks and less stringent
investor protection and disclosure standards in certain foreign markets. In addition, foreign markets can and often do perform
differently from U.S. markets.
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).
Growth Style Investment Risk
Growth stocks can perform differently from the market as a whole and from other types of stocks. Growth stocks may be designated
as such and purchased based on the premise that the market will eventually reward a given company's long-term earnings growth
with a higher stock price when that company's earnings grow faster than both inflation and the economy in general. Thus a
growth style investment strategy attempts to identify companies whose earnings may or are growing at a rate faster than inflation
and the economy. While growth stocks may react differently to issuer, political, market and economic developments than the
market as a whole and other types of stocks by rising in price in certain environments, growth stocks also tend to be sensitive
to changes in the earnings of their underlying companies and more volatile than other types of stocks, particularly over the
short term. Furthermore, growth stocks may be more expensive relative to their current earnings or assets compared to the
values of other stocks, and if earnings growth expectations moderate, their valuations may return to more typical norms, causing
their stock prices to fall. Finally, during periods of adverse economic and market conditions, the stock prices of growth
stocks may fall despite favorable earnings trends.
Index Tracking Risk
The ability to track an index may be affected by, among other things, transaction costs and shareholder purchases and redemptions.
Issuer Risk
The value of a security may decline for a number of reasons that directly relate to the issuer or an entity providing credit
support or liquidity support, such as management performance, financial leverage, and reduced demand for the issuer's goods,
services or securities.
Leverage Risk
Certain transactions may give rise to a form of leverage. Such transactions may include, among others, reverse repurchase
agreements, loans of portfolio securities, and the use of when-issued, delayed delivery or forward commitment transactions.
Certain derivatives may also create leverage. The use of leverage may cause a Fund to liquidate portfolio positions when it
may not be advantageous to do so. Leveraging, including borrowing, may cause a Fund to be more volatile than if the Fund had
not been leveraged. This is because leverage tends to increase a Fund's exposure to market risk, interest rate risk or other
risks by, in effect, increasing assets available for investment.
Liquidity Risk
A security may not be able to be sold at the time desired or without adversely affecting the price.
Management Risk
We cannot guarantee that a Fund will meet its investment objective. We do not guarantee the performance of a Fund, nor can
we assure you that the market value of your investment will not decline. We will not "make good" on any investment loss you
may suffer, nor does anyone we contract with to provide services promise to make good on any such losses.
Market Risk
The market price of securities owned by a Fund may go up or down, sometimes rapidly or unpredictably. Securities may decline
in value or become illiquid due to factors affecting securities markets generally or particular industries represented in
the securities markets, such as labor shortages or increased production costs and competitive conditions within an industry. A
security may decline in value or become illiquid due to general market conditions which are not specifically related to a
particular company, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings,
changes in interest or currency rates, or adverse investor sentiment generally. During a general downturn in the securities
markets, multiple asset classes may decline in value or become illiquid simultaneously. Equity securities generally have greater
price volatility than debt securities.
Mortgage- and Asset-Backed Securities Risk
Mortgage- and asset-backed securities represent interests in "pools" of mortgages or other assets, including consumer loans
or receivables held in trust. In addition, mortgage dollar rolls are transactions in which a Fund sells mortgage-backed securities
to a dealer and simultaneously agrees to purchase similar securities in the future at a predetermined price. Mortgage- and
asset-backed securities, including mortgage dollar roll transactions, are subject to certain additional risks. Rising interest
rates tend to extend the duration of these securities, making them more sensitive to changes in interest rates. As a result,
in a period of rising interest rates, these securities may exhibit additional volatility. This is known as extension risk.
In addition, these securities are subject to prepayment risk, which is the risk that when interest rates decline or are low
but are expected to rise, borrowers may pay off their debts sooner than expected. This can reduce the returns of a Fund because
the Fund will have to reinvest such prepaid funds at the lower prevailing interest rates. This is also known as contraction
risk. These securities also are subject to risk of default on the underlying mortgage or assets, particularly during periods
of economic downturn.
Multi-Style Management Risk
Because certain portions of a Fund's assets are managed by different portfolio managers using different styles, a Fund could
experience overlapping security transactions. Certain portfolio managers may be purchasing securities at the same time other
portfolio managers may be selling those same securities.This may lead to higher transaction expenses and may generate higher
short-term capital gains compared to a Fund using a single investment management style.
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.
Smaller Company Securities Risk
Securities of companies with smaller market capitalizations tend to be more volatile and less liquid than larger company stocks.
Smaller companies may have no or relatively short operating histories, or be newly public companies. Some of these companies
have aggressive capital structures, including high debt levels, or are involved in rapidly growing or changing industries
and/or new technologies, which pose additional risks.
U.S. Government Obligations Risk
U.S. Government obligations include securities issued by the U.S. Treasury, U.S. Government agencies or government sponsored
entities. While U.S. Treasury obligations are backed by the "full faith and credit" of the U.S. Government, securities issued
by U.S. Government agencies or government-sponsored entities may not be backed by the full faith and credit of the U.S. Government.
The Government National Mortgage Association ("GNMA"), a wholly owned U.S. Government corporation, is authorized to guarantee,
with the full faith and credit of the U.S. Government, the timely payment of principal and interest on securities issued by
institutions approved by GNMA and backed by pools of mortgages insured by the Federal Housing Administration or the Department
of Veterans Affairs. Government-sponsored entities (whose obligations are not backed by the full faith and credit of the U.S.
Government) include the Federal National Mortgage Association ("FNMA") and the Federal Home Loan Mortgage Corporation ("FHLMC").
Pass-through securities issued by FNMA are guaranteed as to timely payment of principal and interest by FNMA but are not backed
by the full faith and credit of the U.S. Government. FHLMC guarantees the timely payment of interest and ultimate collection
or scheduled payment of principal, but its participation certificates are not backed by the full faith and credit of the U.S.
Government. If a government-sponsored entity is negatively impacted by legislative or regulatory action, is unable to meet
its obligations, or its creditworthiness declines, the performance of a Fund that holds securities issued or guaranteed by
the entity will be adversely impacted. U.S. Government obligations are subject to relatively low but varying degrees of credit
risk, and are still subject to interest rate and market risk. U.S. Government obligations may be adversely affected by a default
by, or decline in the credit quality of, the U.S. Government.
Value Style Investment Risk
Value stocks can perform differently from the market as a whole and from other types of stocks. Value stocks may be purchased
based upon the belief that a given security may be out of favor. Value investing seeks to identify stocks that have depressed
valuations, based upon a number of factors which are thought to be temporary in nature, and to sell them at superior profits
when their prices rise in response to resolution of the issues which caused the valuation of the stock to be depressed. While
certain value stocks may increase in value more quickly during periods of anticipated economic upturn, they may also lose
value more quickly in periods of anticipated economic downturn. Furthermore, there is the risk that the factors which caused
the depressed valuations are longer term or even permanent in nature, and that there will not be any rise in valuation. Finally,
there is the increased risk in such situations that such companies may not have sufficient resources to continue as ongoing
businesses, which would result in the stock of such companies potentially becoming worthless.
Portfolio Holdings Information
A description of the
Wells Fargo Advantage Funds'
policies and procedures with respect to disclosure of the
Wells Fargo Advantage Funds'
portfolio holdings is available in the Funds' Statement of Additional Information. In addition, Funds Management will, from
time to time, include portfolio holdings information in periodic commentaries for certain Funds. The substance of the information
contained in such commentaries will also be posted to the Funds' Web site at wellsfargoadvantagefunds.com.
Organization and Management of the Funds
About Wells Fargo Funds Trust
The Trust was organized as a Delaware statutory trust on March 10, 1999. The Board of Trustees of the Trust ("Board") supervises
each Fund's activities, monitors its contractual arrangements with various service providers and decides on matters of general
policy.
The Board supervises the Funds and approves the selection of various companies hired to manage the Funds' operations. Except
for the Funds' advisers, which generally may be changed only with shareholder approval, other service providers may be changed
by the Board without shareholder approval.
The Adviser
Wells Fargo Funds Management, LLC ("Funds Management"), headquartered at 525 Market Street, San Francisco, CA 94105, serves
as the investment adviser for the Funds. Funds Management is a wholly owned subsidiary of Wells Fargo & Company, a publicly
traded diversified financial services company that provides banking, insurance, investment, mortgage and consumer finance
services. Funds Management is a registered investment adviser that provides investment advisory services for registered mutual
funds and closed-end funds.
As investment adviser, Funds Management is responsible for implementing the investment objectives and strategies of the Funds.
To assist Funds Management in performing these responsibilities, Funds Management has contracted with one or more sub-advisers
to provide day-to-day portfolio management services to the Funds. Funds Management employs a team of investment professionals
who identify and recommend the initial hiring of each Fund's sub-adviser and supervise and monitor the activities of the sub-advisers
on an ongoing basis. Funds Management retains overall responsibility for the management of the Funds.
Funds Management's investment professionals review and analyze each Fund's performance, including relative to peer funds,
and monitor each Fund's compliance with its investment objective and strategies. Funds Management is responsible for reporting
to the Board on investment performance and other matters affecting the Funds. When appropriate, Funds Management recommends
to the Board enhancements to Fund features, including changes to Fund investment objectives, strategies and policies. Funds
Management also communicates with shareholders and intermediaries about Fund performance and features.
For providing these investment advisory services, Funds Management is entitled to receive the fees disclosed in the row captioned
"Management Fees" in each Fund's table of Annual Fund Operating Expenses. Funds Management compensates each sub-adviser from
the fees Funds Management receives for its services as investment adviser to the Funds. A discussion regarding the basis for
the Board's approval of the investment advisory and sub-advisory agreements is available in the Funds' semi-annual report
for the six-month period ended August 31st.
For a Fund's most recent fiscal year end, the advisory fee paid to Funds Management, net of any applicable waivers and reimbursements, was
as follows:
|
Advisory Fees Paid
|
|
|
As a % of average daily net assets
|
|
Wells Fargo Advantage Dow Jones Target Today Fund
|
0.05%
|
|
Wells Fargo Advantage Dow Jones Target 2010 Fund
|
0.09%
|
|
Wells Fargo Advantage Dow Jones Target 2015 Fund
|
0.07%
|
|
Wells Fargo Advantage Dow Jones Target 2020 Fund
|
0.11%
|
|
Wells Fargo Advantage Dow Jones Target 2025 Fund
|
0.09%
|
|
Wells Fargo Advantage Dow Jones Target 2030 Fund
|
0.11%
|
|
Wells Fargo Advantage Dow Jones Target 2035 Fund
|
0.09%
|
|
Wells Fargo Advantage Dow Jones Target 2040 Fund
|
0.12%
|
|
Wells Fargo Advantage Dow Jones Target 2045 Fund
|
0.06%
|
|
Wells Fargo Advantage Dow Jones Target 2050 Fund
|
0.10%
|
|
Wells Fargo Advantage Dow Jones Target 2055 Fund
|
0.00%
|
The Sub-Adviser and Portfolio Managers
The following sub-adviser and portfolio managers provide day-to-day portfolio management services to the Funds. These services
include making purchases and sales of securities and other investment assets for the Funds, selecting broker-dealers, negotiating
brokerage commission rates and maintaining portfolio transaction records. Each sub-adviser is compensated for its services
by Funds Management from the fees Funds Management receives for its services as investment adviser to the Funds. The Statement
of Additional Information provides additional information about the portfolio managers' compensation, other accounts managed
by the portfolio managers and the portfolio managers' ownership of securities in the Funds. For information regarding the
sub-advisers that perform day-to-day portfolio management activities for the master portfolios in which the Funds invests,
see "The Sub-Advisers for the Master Portfolios" under the "Master/Gateway® Structure" section.
Global Index Advisors, Inc.
("GIA"), a registered investment adviser located at 29 North Park Square, Suite 201, Marietta, GA 30060, serves as a sub-adviser
and provides portfolio management services to one or more Funds. GIA, through its relationships with Dow Jones Indexes and
State Street Global Advisors, offers a series of collective Dow Jones Portfolio Index Funds.
|
Rodney H. Alldredge
|
Mr. Alldredge co-founded GIA in 1994 and currently serves as Portfolio Manager and Director of Portfolio Operations.
|
|
James P. Lauder
|
Mr. Lauder joined GIA in 2002 and currently serves as Portfolio Manager and Chief Executive Officer of GIA.
|
|
Paul T. Torregrosa, PhD
|
Mr.Torregrosa joined GIA in 2007 and currently serves as Portfolio Manager and Director of Research.
|
Dormant Multi-Manager Arrangement
The Board has adopted a "multi-manager" arrangement for the Funds. Under this arrangement, each Fund and Funds Management
may engage one or more sub-advisers to make day-to-day investment decisions for the Fund's assets. Funds Management would
retain ultimate responsibility (subject to the oversight of the Board) for overseeing the sub-advisers and may, at times,
recommend to the Board that the Fund: (1) change, add or terminate one or more sub-advisers; (2) continue to retain a sub-adviser
even though the sub-adviser's ownership or corporate structure has changed; or (3) materially change a sub-advisory agreement
with a sub-adviser.
Applicable law generally requires a Fund to obtain shareholder approval for most of these types of recommendations, even if
the Board approves the proposed action. Under the "multi-manager" arrangement approved by the Board, the Fund is seeking exemptive
relief from the SEC to permit Funds Management (subject to the Board's oversight and approval) to make decisions about the
Fund's sub-advisory arrangements without obtaining shareholder approval. There is no guarantee the SEC will grant such exemptive
relief. The Fund will continue to submit matters to shareholders for their approval to the extent required by applicable
law.
Compensation to Dealers and Shareholder Servicing Agents
Additional Payments to Dealers
No compensation is paid to broker-dealers or other financial intermediaries (such as banks) from Fund assets on sales of
Class R6 shares and related services. Class R6 shares do not carry sales commissions or pay Rule 12b-1 fees, or make payments
to financial intermediaries to assist in, or in connection with, the sale of the Fund's shares. None of the Fund's adviser,
the distributor or their affiliates makes any type of administrative or service payments to financial intermediaries in connection
with investments in Class R6 shares.
Pricing Fund Shares
The share price ("net asset value per share" or "NAV") for a Fund is calculated each business day as of the close of trading
on the New York Stock Exchange ("NYSE") (generally 4 p.m. ET). To calculate a Fund's NAV, the Fund's assets are valued and
totaled, liabilities are subtracted, and the balance, called net assets, is divided by the number of shares outstanding. The
price at which a purchase or redemption of Fund shares is effected is based on the next calculation of NAV after the order
is placed. The Fund does not calculate its NAV on days the NYSE is closed for trading, which include New Year's Day, Martin
Luther King, Jr. Day, Washington's Birthday, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and
Christmas Day.
With respect to any portion of a Fund's assets that may be invested in other mutual funds, the Fund's NAV is calculated based
upon the net asset values of the other mutual funds in which the Fund invests, and the prospectuses for those companies explain
the circumstances under which those companies will use fair value pricing and the effects of using fair value pricing.
With respect to any portion of a Fund's assets invested directly in securities, the Fund's investments are generally valued
at current market prices. Securities are generally valued based on the last sale price during the regular trading session
if the security trades on an exchange (closing price). Securities that are not traded primarily on an exchange generally are
valued using latest quoted bid prices obtained by an independent pricing service. Securities listed on the Nasdaq Stock Market,
Inc., however, are valued at the Nasdaq Official Closing Price ("NOCP"), and if no NOCP is available, then at the last reported
sales price.
We are required to depart from these general valuation methods and use fair value pricing methods to determine the values
of certain investments if we believe that the closing price or the latest quoted bid price of a security, including securities
that trade primarily on a foreign exchange, does not accurately reflect its current value when the Fund calculates its NAV.
In addition, we use fair value pricing to determine the value of investments in securities and other assets, including illiquid
securities, for which current market quotations are not readily available. The closing price or the latest quoted bid price
of a security may not reflect its current value if, among other things, a significant event occurs after the closing price
or latest quoted bid price but before a Fund calculates its NAV that materially affects the value of the security. We use
various criteria, including a systematic evaluation of U.S. market moves after the close of foreign markets, in deciding whether
a foreign security's market price is still reliable and, if not, what fair market value to assign to the security.
In light of the judgment involved in fair value decisions, there can be no assurance that a fair value assigned to a particular
security is accurate or that it reflects the price that the Fund could obtain for such security if it were to sell the security
as of the time of fair value pricing. Such fair value pricing may result in NAVs that are higher or lower than NAVs based
on the closing price or latest quoted bid price. See the Statement of Additional Information for additional details regarding
the pricing of Fund shares.
How to Buy Shares
Class R6 shares generally are available only to certain retirement plans, including: 401(k) plans, 457 plans, profit sharing
and money purchase pension plans, defined benefit plans, target benefit plans and non-qualified deferred compensation plans.
Class R6 shares also are generally available only to retirement plans where plan level or omnibus accounts are held on the
books of the Fund. Class R6 shares generally are not available to retail accounts. Eligible retirement plans of qualifying
size generally may open an account and purchase Class R6 shares by contacting certain broker-dealers and financial institutions
that have selling agreements with WFFD. These entities may impose transaction charges. Additional shares may be purchased
through a retirement plan's administrator or record-keeper.
General Notes for Buying Shares
■
Proper Form.
If the transfer agent receives your new account application or purchase request in proper form before the close of the NYSE,
your transaction will be priced at that day's NAV. If your new account application or purchase request is received in proper
form after the close of trading on the NYSE, your transaction will be priced at the next business day's NAV. If your new account
application or purchase request is not in proper form, additional documentation may be required to process your transaction.
■
Earnings Distributions.
You are eligible to earn distributions beginning on the business day after the transfer agent receives your purchase in proper
form.
■
U.S. Dollars Only.
All payment must be made in U.S. dollars and all checks must be drawn on U.S. banks.
■
Right to Refuse an Order.
We reserve the right to refuse or cancel a purchase or exchange order for any reason, including if we believe that doing
so would be in the best interests of a Fund and its shareholders.
Special Considerations When Investing Through Financial Intermediaries:
If a financial intermediary purchases Class R6 shares on your behalf, you should understand the following:
■
Minimum Investments and Other Terms of Your Account.
Share purchases are made through a customer account at your financial intermediary following that firm's terms. Financial
intermediaries may require different minimum investment amounts. Please consult an account representative from your financial
intermediary for specifics.
■
Records are Held in Financial Intermediary's Name.
Financial intermediaries are usually the holders of record for Class R6 shares held through their customer accounts. The
financial intermediaries maintain records reflecting their customers' beneficial ownership of the shares.
■
Purchase/Redemption Orders.
Financial intermediaries are responsible for transmitting their customers' purchase and redemption orders to the Funds and
for delivering required payment on a timely basis.
■
Shareholder Communications.
Financial intermediaries are responsible for delivering shareholder communications and voting information from the Funds,
and for transmitting shareholder voting instructions to the Funds.
The information provided in this Prospectus is not intended for distribution to, or use by, any person or entity in any non-U.S.
jurisdiction or country where such distribution or use would be contrary to law or regulation, or which would subject Fund
shares to any registration requirement within such jurisdiction or country.
The Funds are distributed by Wells Fargo Funds Distributor, LLC, a member of FINRA/SIPC, and an affiliate of Wells Fargo &
Company. Securities Investor Protection Corporation ("SIPC") information and brochure are available at SIPC.org or by calling
SIPC at (202) 371-8300.
How to Sell Shares
Class R6 shares must be redeemed according to the terms of your customer account with your financial intermediary. You should
contact your investment representative when you wish to sell Fund shares.
General Notes for Selling Shares
■
Proper Form.
If the transfer agent receives your request to sell shares in proper form before the close of the NYSE, your transaction
will be priced at that day's NAV. If your request to sell shares is received in proper form after the close of trading on
the NYSE, it will be priced at the next business day's NAV. If your request is not in proper form, additional documentation
may be required to sell your shares.
■
Earnings Distributions.
Your shares are eligible to earn distributions through the date of redemption. If you redeem shares on a Friday or prior
to a holiday, your shares will continue to be eligible to earn distributions until the next business day.
■
Right to Delay Payment.
We normally will send out checks within one business day, and in any event no more than seven days, after we accept your
request to redeem. If you redeem shares recently purchased by check or through Electronic Funds Transfer, you may be required
to wait up to seven business days before we will send your redemption proceeds. Our ability to determine with reasonable certainty
that investments have been finally collected is greater for investments coming from accounts with banks affiliated with Funds
Management than it is for investments coming from accounts with unaffiliated banks. Redemption payments also may be delayed
under extraordinary circumstances or as permitted by the SEC in order to protect remaining shareholders. Such extraordinary
circumstances are discussed further in the Statement of Additional Information.
■
Redemption in Kind.
Although generally we pay redemption requests in cash, we reserve the right to determine in our sole discretion, whether
to satisfy redemption requests by making payment in securities (known as a redemption in kind). In such case, we may pay all
or part of the redemption in securities of equal value as permitted under the Investment Company Act of 1940, and the rules
thereunder. The redeeming shareholders should expect to incur transaction costs upon the disposition of the securities received.
■
Retirement Plans and Other Products.
If you purchased shares through a packaged investment product or retirement plan, read the directions for selling shares
provided by the product or plan. There may be special requirements that supersede the directions in this Prospectus.
How to Exchange Shares
Exchanges between
Wells Fargo Advantage Funds
involve two transactions: (1) a sale of shares of one Fund; and (2) the purchase of shares of another. In general, the same
rules and procedures that apply to sales and purchases apply to exchanges. There are, however, additional factors you should
keep in mind while making or considering an exchange:
■
In general, exchanges may be made between like share classes of any
Wells Fargo Advantage Fund
offered to the general public for investment (i.e., a Fund not closed to new accounts).
■
Same-fund exchanges between Class A, Class C, Administrator Class, Institutional Class, Investor Class, Class R, Class R4
and Class R6 shares are permitted subject to the following conditions: (1) exchanges out of Class A and Class C shares would
not be allowed if shares are subject to a CDSC; (2) in order for exchanges into Class A shares, the shareholder must be able
to qualify to purchase Class A shares at net asset value based on current prospectus guidelines; and (3) the shareholder must
meet the eligibility guidelines of the class being purchased in the exchange.
■
An exchange request will be processed on the same business day, provided that both Funds are open at the time the request
is received. If one or both Funds are closed, the exchange will be processed on the following business day.
■
You should carefully read the prospectus for the
Wells Fargo Advantage Fund
into which you wish to exchange.
■
Every exchange involves selling Fund shares, which may produce a capital gain or loss for tax purposes.
■
If you are making an initial investment into a Fund through an exchange, you must exchange at least the minimum initial purchase
amount for the new Fund, unless your balance has fallen below that amount due to investment performance.
■
Any exchange between two
Wells Fargo Advantage Funds
must meet the minimum subsequent purchase amounts.
Generally, we will notify you at least 60 days in advance of any changes in our exchange policy.
Frequent Purchases and Redemptions of Fund Shares
Wells Fargo Advantage Funds
reserves the right to reject any purchase or exchange order for any reason. Purchases or exchanges that a Fund determines
could harm the Fund may be rejected.
Excessive trading by Fund shareholders can negatively impact a Fund and its long-term shareholders in several ways, including
disrupting Fund investment strategies, increasing transaction costs, decreasing tax efficiency, and diluting the value of
shares held by long-term shareholders. Excessive trading in Fund shares can negatively impact a Fund's long-term performance
by requiring it to maintain more assets in cash or to liquidate portfolio holdings at a disadvantageous time. Certain Funds
may be more susceptible than others to these negative effects. For example, Funds that have a greater percentage of their
investments in non-U.S. securities may be more susceptible than other Funds to arbitrage opportunities resulting from pricing
variations due to time zone differences across international financial markets. Similarly, Funds that have a greater percentage
of their investments in small company securities may be more susceptible than other Funds to arbitrage opportunities due to
the less liquid nature of small company securities. Both types of Funds also may incur higher transaction costs in liquidating
portfolio holdings to meet excessive redemption levels. Fair value pricing may reduce these arbitrage opportunities, thereby
reducing some of the negative effects of excessive trading.
Wells Fargo Advantage Funds
, other than the Adjustable Rate Government Fund, Ultra Short-Term Income Fund and Ultra Short-Term Municipal Income Fund
("Ultra-Short Funds") and the money market funds, (the "Covered Funds").
The Covered Funds are not designed to serve as vehicles for frequent trading. The Covered Funds actively discourage and take
steps to prevent the portfolio disruption and negative effects on long-term shareholders that can result from excessive trading
activity by Covered Fund shareholders. The Board has approved the Covered Funds' policies and procedures, which provide, among
other things, that Funds Management may deem trading activity to be excessive if it determines that such trading activity
would likely be disruptive to a Covered Fund by increasing expenses or lowering returns. In this regard, the Covered Funds
take steps to avoid accommodating frequent purchases and redemptions of shares by Covered Fund shareholders. Funds Management
monitors available shareholder trading information across all Covered Funds on a daily basis. If a shareholder redeems more
than $5,000 (including redemptions that are part of an exchange transaction) from a Covered Fund, that shareholder is "blocked"
from purchasing shares of that Covered Fund (including purchases that are part of an exchange transaction) for 30 calendar
days after the redemption. This policy does not apply to:
■
Money market funds;
■
Ultra-Short Funds;
■
Dividend reinvestments;
■
Systematic investments or exchanges where the financial intermediary maintaining the shareholder account identifies the transaction
as a systematic redemption or purchase at the time of the transaction;
■
Rebalancing transactions within certain asset allocation or "wrap" programs where the financial intermediary maintaining a
shareholder account is able to identify the transaction as part of an asset allocation program approved by Funds Management;
■
Transactions initiated by a "fund of funds" or Section 529 Plan into an underlying fund investment;
■
Permitted exchanges between share classes of the same Fund;
■
Certain transactions involving participants in employer-sponsored retirement plans, including: participant withdrawals due
to mandatory distributions, rollovers and hardships, withdrawals of shares acquired by participants through payroll deductions,
and shares acquired or sold by a participant in connection with plan loans; and
■
Purchases below $5,000 (including purchases that are part of an exchange transaction).
The money market funds and the Ultra-Short Funds.
Because the money market funds and Ultra-Short Funds are often used for short-term investments, they are designed to accommodate
more frequent purchases and redemptions than the Covered Funds. As a result, the money market funds and Ultra-Short Funds
do not anticipate that frequent purchases and redemptions, under normal circumstances, will have significant adverse consequences
to the money market funds or Ultra-Short Funds or their shareholders. Although the money market funds and Ultra-Short Funds
do not prohibit frequent trading, Funds Management will seek to prevent an investor from utilizing the money market funds
and Ultra-Short Funds to facilitate frequent purchases and redemptions of shares in the Covered Funds in contravention of
the policies and procedures adopted by the Covered Funds.
All
Wells Fargo Advantage Funds
.
In addition, Funds Management reserves the right to accept purchases, redemptions and exchanges made in excess of applicable
trading restrictions in designated accounts held by Funds Management or its affiliate that are used at all times exclusively
for addressing operational matters related to shareholder accounts, such as testing of account functions, and are maintained
at low balances that do not exceed specified dollar amount limitations.
In the event that an asset allocation or "wrap" program is unable to implement the policy outlined above, Funds Management
may grant a program-level exception to this policy. A financial intermediary relying on the exception is required to provide
Funds Management with specific information regarding its program and ongoing information about its program upon request.
A financial intermediary through whom you may purchase shares of the Fund may independently attempt to identify excessive
trading and take steps to deter such activity. As a result, a financial intermediary may on its own limit or permit trading
activity of its customers who invest in Fund shares using standards different from the standards used by Funds Management
and discussed in this Prospectus. Funds Management may permit a financial intermediary to enforce its own internal policies
and procedures concerning frequent trading rather than the policies set forth above in instances where Funds Management reasonably
believes that the intermediary's policies and procedures effectively discourage disruptive trading activity. If you purchase
Fund shares through a financial intermediary, you should contact the intermediary for more information about whether and how
restrictions or limitations on trading activity will be applied to your account.
Account Policies
Advance Notice of Large Transactions
We strongly urge you to begin all purchases and redemptions as early in the day as possible and to notify us at least one
day in advance of transactions in excess of $5,000,000. This will allow us to manage the Funds most effectively. When you
give us this advance notice, you must provide us with your name and account number.
Householding
To help keep Fund expenses low, a single copy of a prospectus or shareholder report may be sent to shareholders of the same
household. If your household currently receives a single copy of a prospectus or shareholder report and you would prefer to
receive multiple copies, please contact your financial intermediary.
Retirement Accounts
We offer prototype documents for a variety of retirement accounts for individuals and small businesses. Please call 1-800-222-8222
for information on:
■
Individual Retirement Plans, including Traditional IRAs and Roth IRAs.
■
Qualified Retirement Plans, including Simple IRAs, SEP IRAs, Keoghs, Pension Plans, Profit-Sharing Plans, and 401(k) Plans.
There may be special distribution requirements for a retirement account, such as required distributions or mandatory Federal
income tax withholdings. For more information, call the number listed above. You may be charged a $10 annual account maintenance
fee for each retirement account up to a maximum of $30 annually and a $25 fee for transferring assets to another custodian
or for closing a retirement account. Fees charged by institutions may vary.
Small Account Redemptions
We reserve the right to redeem certain accounts that fall below the minimum initial investment amount as the result of shareholder
redemptions (as opposed to market movement). Before doing so, we will give you approximately 60 days to bring your account
above the minimum investment amount. Please call Investor Services at 1-800-222-8222 or contact your selling agent for further
details.
Statements and Confirmations
Statements summarizing activity in your account are mailed quarterly. Confirmations are mailed following each purchase, sale,
exchange, or transfer of Fund shares, except generally for Automatic Investment Plan transactions, Systematic Withdrawal Plan
transactions using Electronic Funds Transfer, and purchases of new shares through the automatic reinvestment of distributions.
Upon your request and for the applicable fee, you may obtain a reprint of an account statement. Please call Investor Services
at 1-800-222-8222 for more information.
Electronic Delivery of Fund Documents
You may elect to receive your Fund's prospectuses, shareholder reports and other Fund documents electronically in lieu of
paper form by enrolling on the Fund's Web site at wellsfargo.com/advantagedelivery. If you make this election, you will be
notified by e-mail when the most recent Fund documents are available for electronic viewing and downloading.
To receive Fund documents electronically, you must have an e-mail account and an internet browser that meets the requirements
described in the Privacy & Security section of the Fund's Web site at wellsfargoadvantagefunds.com. You may change your electronic
delivery preferences or revoke your election to receive Fund documents electronically at any time by visiting wellsfargo.com/advantagedelivery.
Statement Inquiries
Contact us in writing regarding any errors or discrepancies noted on your account statement within 60 days after the date
of the statement confirming a transaction. We may deny your ability to refute a transaction if we do not hear from you within
those 60 days.
Transaction Authorizations
Telephone, electronic, and clearing agency privileges allow us to accept transaction instructions by anyone representing
themselves as the shareholder and who provides reasonable confirmation of their identity. Neither we nor
Wells Fargo Advantage Funds
will be liable for any losses incurred if we follow such instructions we reasonably believe to be genuine. For transactions
through the automated phone system and our Web site, we will assign personal identification numbers (PINs) and/or passwords
to help protect your account information. To safeguard your account, please keep your PINs and passwords confidential. Contact
us immediately if you believe there is a discrepancy on your confirmation statement or if you believe someone has obtained
unauthorized access to your account, PIN or password.
USA PATRIOT Act
In compliance with the USA PATRIOT Act, all financial institutions (including mutual funds) at the time an account is opened,
are required to obtain, verify and record the following information for all registered owners or others who may be authorized
to act on the account: full name, date of birth, taxpayer identification number (usually your Social Security Number), and
permanent street address. Corporate, trust and other entity accounts require additional documentation. This information will
be used to verify your identity. We will return your application if any of this information is missing, and we may request
additional information from you for verification purposes. In the rare event that we are unable to verify your identity, we
reserve the right to redeem your account at the current day's NAV. You will be responsible for any losses, taxes, expenses,
fees, or other results of such a redemption.
Distributions
The Funds generally make distributions of any net investment income quarterly and any realized net capital gains at least
annually. Please contact your institution for distribution options. Remember, distributions have the effect of reducing the
NAV per share by the amount distributed.
Taxes
By investing in a Fund through a tax-deferred retirement account, you will not be subject to tax on dividends and capital
gains distributions from the Fund or the sale of Fund shares if those amounts remain in the tax-deferred account. Distributions
taken from retirement plan accounts generally are taxable as ordinary income. For special rules concerning tax-deferred retirement
accounts, including applications, restrictions, tax advantages, and potential sales charge waivers, contact your investment
professional. To determine if a retirement plan may be appropriate for you and to obtain further information, consult your
tax advisor.
Master/Gateway® Structure
Each Fund is a gateway fund in a Master/Gateway structure. This structure is more commonly known as a master/feeder structure.
In this structure, a gateway or feeder fund invests substantially all of its assets in one or more master portfolios of Wells
Fargo Master Trust or other stand-alone funds of Wells Fargo Advantage Funds whose objectives and investment strategies are
consistent with the gateway fund's investment objective and strategies. Through this structure, a gateway fund can enhance
its investment opportunities and reduce its expenses by sharing the costs and benefits of a larger pool of assets. Master
portfolios offer their shares to multiple gateway funds and other master portfolios rather than directly to the public. Certain
administrative and other fees and expenses are charged to both the gateway fund and the master portfolio(s). The services
provided and fees charged to a gateway fund are in addition to and not duplicative of the services provided and fees charged
to the master portfolios. Fees relating to investments in other stand-alone funds are waived to the extent that they are duplicative,
or would exceed certain defined limits.
Description of Master Portfolios
The following table lists the master portfolio(s) in which the Funds invest. Each Portfolio's investment objective is provided
followed by a description of the Portfolio's investment strategies.
|
Master Portfolio
|
Investment Objective and Principal Investment Strategies
|
|
Diversified Fixed Income Portfolio
|
Investment Objective:
The Portfolio seeks to approximate the total return of the fixed income portion of the Dow Jones Target Date Indexes.
Principal Investment Strategies:
Under normal circumstances, the Adviser invests:
■
at least 80% of the Portfolio's net assets in fixed income securities.
The Portfolio invests principally in securities comprising the fixed income portion of the Dow Jones Target Date Indexes.
The Adviser attempts to achieve a correlation of at least 95% between the performance of the fixed income portion of the Dow
Jones Target Date Indexes and the Portfolio's investment results, before expenses. The fixed income portion is represented
by the Barclays Government Bond Index, Barclays Corporate Bond Index, Barclays Mortgage Bond Index, Barclays Majors (ex U.S.)
Index. The Portfolio seeks to approximate, before expenses, the total return of the fixed income portion of the Dow Jones
Target Date Indexes by investing in the securities that comprise the sub-indexes representing the fixed income asset class.
These fixed income sub-indexes include exposure to non-U.S. Treasury bonds, U.S. Treasury bonds, U.S. Agency debt, U.S.-dollar
denominated corporate debt, and U.S. Agency mortgage-backed securities with a weighted average maturity of at least one year.
The Portfolio uses an optimization process which seeks to balance the replication of index performance and security transaction
costs. Using a statistical sampling technique, the Portfolio purchases the most liquid securities in the index in approximately
the same proportion as the index. To replicate the performance of the less liquid securities, the Portfolio attempts to match
the industry and risk characteristics of those securities, without incurring the transaction costs associated with purchasing
every security in the index. This approach attempts to balance the goal of maximizing the replication of index performance,
against the goal of trying to manage transaction costs. The Adviser may actively trade portfolio securities.
|
|
Diversified Stock Portfolio
|
Investment Objective:
The Portfolio seeks to approximate the total return (consisting of income and capital appreciation) of the equity portion
of the Dow Jones Target Date Indexes.
Principal Investment Strategies:
Under normal circumstances, the Adviser invests:
■
at least 80% of the Portfolio's net assets in equity securities.
The Portfolio invests principally in securities comprising the equity portion of the Dow Jones Target Date Indexes. The Adviser
attempts to achieve a correlation of at least 95% between the performance of the equity portion of the Dow Jones Target Date
Indexes and the Portfolio's investment results, before expenses. The equity portion is represented by the Dow Jones U.S. Large-Cap
Growth Index, Dow Jones U.S. Large-Cap Value Index, Dow Jones U.S. Mid-Cap Growth Index, Dow Jones U.S. Mid-Cap Value Index,
Dow Jones U.S. Small-Cap Growth Index, Dow Jones U.S. Small-Cap Value Index, Dow Jones Europe/Canada/Middle East Developed
Markets Index, Dow Jones Asia/Pacific Developed Markets Index, Dow Jones Emerging Markets Large-Cap TSM Specialty Index. The
Portfolio seeks to approximate, before expenses, the total return of the equity portion of the Dow Jones Target Date Indexes
by investing in the securities that comprise the sub-indexes representing the equity asset class. The sub-indexes include
exposure to large, mid and small cap U.S. securities as well as securities in international developed and emerging markets.
The Portfolio uses an optimization process, which seeks to balance the replication of index performance and security transaction
costs. Using a statistical sampling technique, the Portfolio purchases the most liquid securities in the index, in approximately
the same proportion as the index. To replicate the performance of the less liquid securities, the Portfolio attempts to match
the industry and risk characteristics of those securities, without incurring the transaction costs associated with purchasing
every security in the index. This approach attempts to balance the goal of maximizing the replication of index performance,
against the goal of trying to manage transaction costs. Furthermore, the Adviser
may use derivatives, such as stock index futures in order to manage movements of the Portfolio against certain indexes. The
Adviser may actively trade portfolio securities.
|
|
Short-Term Investment Portfolio
|
Investment Objective:
The Portfolio seeks current income while preserving capital and liquidity.
Principal Investment Strategies:
Under normal circumstances, the Adviser invests:
■
exclusively in high-quality, short-term U.S. dollar-denominated money market instruments of domestic and foreign issuers.
The Adviser actively manages a portfolio of high-quality, short-term, U.S. dollar-denominated money market instruments. The
Adviser will only purchase First Tier securities. These include, but are not limited to, bank obligations such as time deposits
and certificates of deposit, government securities, asset-backed securities, commercial paper, corporate bonds, municipal
securities and repurchase agreements. These investments may have fixed, floating, or variable rates of interest and may be
obligations of U.S. or foreign issuers. The Adviser may invest more than 25% of the Portfolio's total assets in U.S. dollar-denominated
obligations of U.S. banks.
|
The Sub-Advisers for the Master Portfolios
The sub-advisers for the master portfolios are compensated for their services by Funds Management from the fees Funds Management
receives for its services as adviser to the master portfolios.
SSgA Funds Management, Inc.
(SSgA FM), located at 1 Lincoln Street, Boston, MA 02110, is the investment sub-adviser for the Diversified Fixed Income Portfolio
and Diversified Stock Portfolio, in which certain gateway funds invest substantially all or a portion of their assets. In
this capacity, SSgA FM is responsible for the day-to-day investment management activities of the Portfolios. SSgA FM, an SEC
registered investment adviser, is a wholly owned subsidiary of State Street Corporation, a publicly held bank holding company. SSgA
FM and other State Street advisory affiliates make up State Street Global Advisors ("SSgA"), the investment management arm
of State Street Corporation. SSgA provides complete global investment management services from offices in North America, South
America, Europe, Asia, Australia and the Middle East.
Wells Capital Management Incorporated
(Wells Capital Management), a registered investment adviser, located at 525 Market Street, San Francisco, CA 94105, serves
as the sub-adviser and provides portfolio management services for the Short-Term Investment Portfolio in which certain gateway
funds invest substantially all or a portion of their assets. Wells Capital Management, an affiliate of Funds Management and
indeirect wholly owned subsidiary of Wells Fargo & Company, is a multi-boutique asset management firm committed to delivering
superior investment services to institutional clients.
Additional Performance Information
Additional Performance Information - Index Descriptions
The "Average Annual Total Returns" table in each Fund's Fund Summary compares the Fund's returns with those of one or more
indices. Below are descriptions of each such index. You cannot invest directly in an index.
|
Barclays U.S. Aggregate Bond Index
|
The Barclays U.S. Aggregate Bond Index is composed of the Barclays U.S. Government/Credit Index and the Barclays U.S. Mortgage-Backed
Securities Index, and includes Treasury issues, agency issues, corporate bond issues, and mortgage-backed securities.
|
|
Dow Jones Global Target Today Index
|
The Dow Jones Target Date Indexes (each an "Index" or collectively the "Indexes") are a series of indexes designed as benchmarks
for multi-asset class portfolios with market risk profiles that become more conservative over time. The Index weightings among
the major asset classes are adjusted monthly based on a published set of Index rules. The Indexes with longer time horizons
have higher allocations to equity securities, while the Indexes with shorter time horizons replace some of their stock allocations
with allocations to fixed income securities and money market instruments. See the "Information on Dow Jones Target Date Indexes"
section for further information.
|
|
Dow Jones Global Target 2010 Index
|
The Dow Jones Target Date Indexes (each an "Index" or collectively the "Indexes") are a series of indexes designed as benchmarks
for multi-asset class portfolios with market risk profiles that become more conservative over time. The Index weightings among
the major asset classes are adjusted monthly based on a published set of Index rules.The Indexes with longer time horizons
have higher allocations to equity securities, while the Indexes with shorter time horizons replace some of their stock allocations
with allocations to fixed income securities and money market instruments. See the "Information on Dow Jones Target Date Indexes"
section for further information.
|
|
Dow Jones Global Target 2015 Index
|
The Dow Jones Target Date Indexes (each an "Index" or collectively the "Indexes") are a series of indexes designed as benchmarks
for multi-asset class portfolios with market risk profiles that become more conservative over time. The Index weightings among
the major asset classes are adjusted monthly based on a published set of Index rules. The Indexes with longer time horizons
have higher allocations to equity securities, while the Indexes with shorter time horizons replace some of their stock allocations
with allocations to fixed income securities and money market instruments. See the "Information on Dow Jones Target Date Indexes"
section for further information.
|
|
Dow Jones Global Target 2020 Index
|
The Dow Jones Target Date Indexes (each an "Index" or collectively the "Indexes") are a series of indexes designed as benchmarks
for multi-asset class portfolios with market risk profiles that become more conservative over time. The Index weightings among
the major asset classes are adjusted monthly based on a published set of Index rules. The Indexes with longer time horizons
have higher allocations to equity securities, while the Indexes with shorter time horizons replace some of their stock allocations
with allocations to fixed income securities and money market instruments. See the "Information on Dow Jones Target Date Indexes"
section for further information.
|
|
Dow Jones Global Target 2025 Index
|
The Dow Jones Target Date Indexes (each an "Index" or collectively the "Indexes") are a series of indexes designed as benchmarks
for multi-asset class portfolios with market risk profiles that become more conservative over time. The Index weightings among
the major asset classes are adjusted monthly based on a published set of Index rules. The Indexes with longer time horizons
have higher allocations to equity securities, while the Indexes with shorter time horizons replace some of their stock allocations
with allocations to fixed income securities and money market instruments. See the "Information on Dow Jones Target Date Indexes"
section for further information.
|
|
Dow Jones Global Target 2030 Index
|
The Dow Jones Target Date Indexes (each an "Index" or collectively the "Indexes") are a series of indexes designed as benchmarks
for multi-asset class portfolios with market risk profiles that become more conservative over time. The Index weightings among
the major asset classes are adjusted monthly based on a published set of Index rules. The Indexes with longer time horizons
have higher allocations to equity securities, while the Indexes with shorter time horizons replace some of their stock allocations
with allocations to fixed income securities and money market instruments. See the "Information on Dow Jones Target Date Indexes"
section for further information.
|
|
Dow Jones Global Target 2035 Index
|
The Dow Jones Target Date Indexes (each an "Index" or collectively the "Indexes") are a series of indexes designed as benchmarks
for multi-asset class portfolios with market risk profiles that become more conservative over time. The Index weightings among
the major asset classes are adjusted monthly based on a published set of Index rules. The Indexes with longer time horizons
have higher allocations to equity securities, while the Indexes with shorter time horizons replace some of their stock allocations
with allocations to fixed income securities and money market instruments. See the "Information on Dow Jones Target Date Indexes"
section for further information.
|
|
Dow Jones Global Target 2040 Index
|
The Dow Jones Target Date Indexes (each an "Index" or collectively the "Indexes") are a series of indexes designed as benchmarks
for multi-asset class portfolios with market risk profiles that become more conservative over time. The Index weightings among
the major asset classes are adjusted monthly based on a published set of Index rules. The Indexes with longer time horizons
have higher allocations to equity securities, while the Indexes with shorter time horizons replace some of their stock allocations
with allocations to fixed income securities and money market instruments. See the "Information on Dow Jones Target Date Indexes"
section for further information.
|
|
Dow Jones Global Target 2045 Index
|
The Dow Jones Target Date Indexes (each an "Index" or collectively the "Indexes") are a series of indexes designed as benchmarks
for multi-asset class portfolios with market risk profiles that become more conservative over time. The Index weightings among
the major asset classes are adjusted monthly based on a published set of Index rules. The Indexes with longer time horizons
have higher allocations to equity securities, while the Indexes with shorter time horizons replace some of their stock allocations
with allocations to fixed income securities and money market instruments. See the "Information on Dow Jones Target Date Indexes"
section for further information.
|
|
Dow Jones Global Target 2050 Index
|
The Dow Jones Target Date Indexes (each an "Index" or collectively the "Indexes") are a series of indexes designed as benchmarks
for multi-asset class portfolios with market risk profiles that become more conservative over time. The Index weightings among
the major asset classes are adjusted monthly based on a published set of Index rules. The Indexes with longer time horizons
have higher allocations to equity securities, while the Indexes with shorter time horizons replace some of their stock allocations
with allocations to fixed income securities and money market instruments. See the "Information on Dow Jones Target Date Indexes"
section for further information.
|
|
Dow Jones Global Target 2055 Index
|
The Dow Jones Target Date Indexes (each an "Index" or collectively the "Indexes") are a series of indexes designed as benchmarks
for multi-asset class portfolios with market risk profiles that become more conservative over time. The Index weightings among
the major asset classes are adjusted monthly based on a published set of Index rules. The Indexes with longer time horizons
have higher allocations to equity securities, while the Indexes with shorter time horizons replace some of their stock allocations
with allocations to fixed income securities and money market instruments. See the "Information on Dow Jones Target Date Indexes"
section for further information.
|
|
Russell 3000® Index
|
The Russell 3000® Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization,
which represents approximately 98% of the investable U.S. equity market.
|
A Fund's past performance is no guarantee of future results. A Fund's investment results will fluctuate over time, and any
representation of the Fund's returns for any past period should not be considered as a representation of what a Fund's returns
may be in any future period. Each Fund's annual and semi-annual reports contain additional performance information and are
available upon request, without charge, by calling the telephone number listed on the back cover page of this Prospectus.
Financial Highlights
The financial highlights table is intended to help you understand a Fund's financial performance for the past five years (or
since inception, if shorter). Certain information reflects financial results for a single Fund share. Total returns represent
the rate you would have earned (or lost) on an investment in each Fund (assuming reinvestment of all distributions). The information
in the following tables has been derived from the Funds' financial statements, which have been audited by the Funds' independent
registered public accounting firm whose report, along with each Fund's financial statements, is also included in each Fund's
annual report, a copy of which is available upon request.
Target Today Fund
For a share outstanding throughout each period
|
|
|
Year ended February 28
|
|
Class R6*
|
2013
|
2012
1
|
2011
|
2010
|
2009
|
|
Net asset value, beginning of period
|
$
|
11.07
|
|
$
|
10.77
|
|
$
|
10.24
|
|
$
|
9.03
|
|
$
|
10.29
|
|
|
Income from investment operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
0.21
|
|
|
0.24
|
|
|
0.24
7
|
|
|
0.27
7
|
|
|
0.32
7
|
|
|
Net realized and unrealized gains (losses) on investments
|
|
0.08
|
|
|
0.40
|
|
|
0.58
|
|
|
1.22
|
|
|
-1.18
|
|
|
Total from investment operations
|
|
0.29
|
|
|
0.64
|
|
|
0.82
|
|
|
1.49
|
|
|
-0.86
|
|
|
Distribution to shareholders from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
-0.23
|
|
|
-0.27
|
|
|
-0.29
|
|
|
-0.28
|
|
|
-0.34
|
|
|
Net realized gain
|
|
-0.08
|
|
|
-0.05
|
|
|
0.00
|
|
|
0.00
|
|
|
-0.06
|
|
|
Total distributions to shareholders
|
|
-0.31
|
|
|
-0.32
|
|
|
-0.29
|
|
|
-0.28
|
|
|
-0.40
|
|
|
Net asset value, end of period
|
$
|
11.07
|
|
$
|
11.09
|
|
$
|
10.77
|
|
$
|
10.24
|
|
$
|
9.03
|
|
|
Total return
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio to average net assets (annualized)
|
|
2.63
%
|
|
|
6.09
%
|
|
|
8.14
%
|
|
|
16.67
%
|
|
|
-8.60
%
|
|
|
Net investment income (loss)
|
|
1.90%
|
|
|
2.20%
|
|
|
2.31%
|
|
|
2.73%
|
|
|
3.26%
|
|
|
Gross expenses
|
|
0.65%
|
|
|
0.65%
|
|
|
0.66%
|
|
|
0.72%
|
|
|
0.82%
|
|
|
Net expenses
|
|
0.45%
|
|
|
0.45%
|
|
|
0.45%
|
|
|
0.53%
|
|
|
0.62%
|
|
|
Supplemental data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio turnover rate
|
|
39%
|
|
|
46%
|
|
|
51%
|
|
|
91%
|
|
|
45%
|
|
|
Net assets at end of period (000s omitted)
|
$
|
139,771
|
|
$
|
121,886
|
|
$
|
77,216
|
|
$
|
63,796
|
|
$
|
43,072
|
|
Target 2010 Fund
For a share outstanding throughout each period
|
|
|
Year ended February 28
|
|
Class R6*
|
2013
|
2012
1
|
2011
|
2010
|
2009
|
|
Net asset value, beginning of period
|
$
|
13.39
|
|
$
|
12.97
|
|
$
|
12.15
|
|
$
|
10.24
|
|
$
|
12.81
|
|
|
Income from investment operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
2
|
|
0.26
|
|
|
0.28
|
|
|
0.28
|
|
|
0.31
7
|
|
|
0.37
7
|
|
|
Net realized and unrealized gains (losses) on investments
|
|
0.19
|
|
|
0.45
|
|
|
0.88
|
|
|
1.95
|
|
|
-2.43
|
|
|
Total from investment operations
|
|
0.45
|
|
|
0.73
|
|
|
1.16
|
|
|
2.26
|
|
|
-2.06
|
|
|
Distribution to shareholders from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
-0.28
|
|
|
-0.31
|
|
|
-0.34
|
|
|
-0.35
|
|
|
-0.41
|
|
|
Net realized gains
|
|
-0.13
|
|
|
0.00
|
|
|
0.00
|
|
|
-0.00
5
|
|
|
-0.10
|
|
|
Total distributions to shareholders
|
|
-0.41
|
|
|
-0.31
|
|
|
-0.34
|
|
|
-0.35
|
|
|
-0.51
|
|
|
Net asset value, end of period
|
$
|
13.43
|
|
$
|
13.39
|
|
$
|
12.97
|
|
$
|
12.15
|
|
$
|
10.24
|
|
|
Total return
3
|
|
3.43%
|
|
|
5.61%
|
|
|
9.90%
|
|
|
22.15%
|
|
|
-16.47%
|
|
|
Ratio to average net assets (annualized)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
2
|
|
1.91%
|
|
|
2.14%
|
|
|
2.23%
|
|
|
2.63%
|
|
|
3.15%
|
|
|
Gross expenses
2
|
|
0.65%
|
|
|
0.65%
|
|
|
0.66%
|
|
|
0.71%
|
|
|
0.80%
|
|
|
Net expenses
2
|
|
0.48%
|
|
|
0.48%
|
|
|
0.48%
|
|
|
0.59%
|
|
|
0.65%
|
|
|
Supplemental data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio turnover rate
4
|
|
37%
|
|
|
43%
|
|
|
47%
|
|
|
86%
|
|
|
43%
|
|
|
Net assets at end of period (000s omitted)
|
$
|
486,113
|
|
$
|
563,343
|
|
$
|
455,447
|
|
$
|
359,320
|
|
$
|
239,731
|
|
Target 2015 Fund
For a share outstanding throughout each period
|
|
|
Year ended February 28
|
|
Class R6*
|
2013
|
2012
1
|
2011
|
2010
|
2009
|
|
Net asset value, beginning of period
|
$
|
9.98
|
|
$
|
9.81
|
|
$
|
9.05
|
|
$
|
7.23
|
|
$
|
9.92
|
|
|
Income from investment operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
2
|
|
0.18
7
|
|
|
0.19
|
|
|
0.19
|
|
|
0.21
7
|
|
|
0.25
7
|
|
|
Net realized and unrealized gains (losses) on investments
|
|
0.27
|
|
|
0.29
|
|
|
0.85
|
|
|
1.77
|
|
|
-2.33
|
|
|
Total from investment operations
|
|
0.45
|
|
|
0.48
|
|
|
1.04
|
|
|
1.98
|
|
|
-2.58
|
|
|
Distribution to shareholders from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
-0.20
|
|
|
-0.20
|
|
|
-0.23
|
|
|
-0.16
|
|
|
-0.31
|
|
|
Net realized gains
|
|
-0.10
|
|
|
-0.11
|
|
|
-0.05
|
|
|
0.00
|
|
|
0.00
|
|
|
Tax basis return of capital
|
|
0.00
|
|
|
0.00
|
|
|
0.00
|
|
|
0.00
|
|
|
-0.30
|
|
|
Total distributions to shareholders
|
|
-0.30
|
|
|
-0.31
|
|
|
-0.28
|
|
|
-0.16
|
|
|
-0.61
|
|
|
Net asset value, end of period
|
$
|
10.13
|
|
$
|
9.98
|
|
$
|
9.81
|
|
$
|
9.05
|
|
$
|
7.23
|
|
|
Total return
3
|
|
4.56%
|
|
|
5.06%
|
|
|
11.68%
|
|
|
27.56%
|
|
|
-22.00%
|
|
|
Ratio to average net assets (annualized)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
2
|
|
1.87%
|
|
|
2.05%
|
|
|
2.11%
|
|
|
2.43%
|
|
|
2.91%
|
|
|
Gross expenses
2
|
|
0.65%
|
|
|
0.65%
|
|
|
0.66%
|
|
|
0.72%
|
|
|
1.06%
|
|
|
Net expenses
2
|
|
0.49%
|
|
|
0.49%
|
|
|
0.49%
|
|
|
0.54%
|
|
|
0.66%
|
|
|
Supplemental data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio turnover rate
4
|
|
35%
|
|
|
40%
|
|
|
44%
|
|
|
77%
|
|
|
41%
|
|
|
Net assets, end of period (000s omitted)
|
$
|
613,945
|
|
$
|
536,453
|
|
$
|
387,146
|
|
$
|
235,807
|
|
$
|
22,002
|
|
Target 2020 Fund
For a share outstanding throughout each period
|
|
|
Year ended February 28
|
|
Class R6*
|
2013
|
2012
1
|
2011
|
2010
|
2009
|
|
Net asset value, beginning of period
|
$
|
14.47
|
|
$
|
14.19
|
|
$
|
12.73
|
|
$
|
9.73
|
|
$
|
13.98
|
|
|
Income from investment operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
2
|
|
0.27
|
|
|
0.27
7
|
|
|
0.26
|
|
|
0.27
7
|
|
|
0.32
7
|
|
|
Net realized and unrealized gains (losses) on investments
|
|
0.52
|
|
|
0.35
|
|
|
1.50
|
|
|
3.01
|
|
|
-4.08
|
|
|
Total from investment operations
|
|
0.79
|
|
|
0.62
|
|
|
1.76
|
|
|
3.28
|
|
|
-3.76
|
|
|
Distribution to shareholders from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
-0.28
|
|
|
-0.30
|
|
|
-0.30
|
|
|
-0.28
|
|
|
-0.34
|
|
|
Net realized gains
|
|
-0.21
|
|
|
-0.04
|
|
|
0.00
|
|
|
-0.00
5
|
|
|
-0.15
|
|
|
Total distributions to shareholders
|
|
-0.49
|
|
|
-0.34
|
|
|
-0.30
|
|
|
-0.28
|
|
|
-0.49
|
|
|
Net asset value, end of period
|
$
|
14.77
|
|
$
|
14.47
|
|
$
|
14.19
|
|
$
|
12.73
|
|
$
|
9.73
|
|
|
Total return
3
|
|
5.60%
|
|
|
4.47%
|
|
|
14.03%
|
|
|
33.98%
|
|
|
-27.46%
|
|
|
Ratio to average net assets (annualized)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
2
|
|
1.85%
|
|
|
1.95%
|
|
|
1.96%
|
|
|
2.22%
|
|
|
2.63%
|
|
|
Gross expenses
2
|
|
0.63%
|
|
|
0.63%
|
|
|
0.64%
|
|
|
0.69%
|
|
|
0.81%
|
|
|
Net expenses
2
|
|
0.50%
|
|
|
0.50%
|
|
|
0.50%
|
|
|
0.60%
|
|
|
0.67%
|
|
|
Supplemental data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio turnover rate
4
|
|
32%
|
|
|
35%
|
|
|
39%
|
|
|
66%
|
|
|
38%
|
|
|
Net assets at end of period (000s omitted)
|
$
|
1,605,032
|
|
$
|
1,540,045
|
|
$
|
1,250,249
|
|
$
|
822,479
|
|
$
|
414,090
|
|
Target 2025 Fund
For a share outstanding throughout each period
|
|
|
Year ended February 28
|
|
Class R6*
|
2013
|
2012
1
|
2011
|
2010
|
2009
|
|
Net asset value, beginning of period
|
$
|
9.71
|
|
$
|
9.79
|
|
$
|
8.68
|
|
$
|
6.24
|
|
$
|
9.49
|
|
|
Income from investment operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
2
|
|
0.18
|
|
|
0.17
7
|
|
|
0.16
|
|
|
0.18
7
|
|
|
0.20
7
|
|
|
Net realized and unrealized gains (losses) on investments
|
|
0.45
|
|
|
0.16
|
|
|
1.26
|
|
|
2.39
|
|
|
-3.26
|
|
|
Total from investment operations
|
|
0.63
|
|
|
0.33
|
|
|
1.42
|
|
|
2.57
|
|
|
-3.06
|
|
|
Distribution to shareholders from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
-0.18
|
|
|
-0.18
|
|
|
-0.19
|
|
|
-0.13
|
|
|
-0.19
|
|
|
Net realized gains
|
|
-0.20
|
|
|
-0.23
|
|
|
-0.12
|
|
|
0.00
|
|
|
0.00
|
|
|
Total distributions to shareholders
|
|
-0.38
|
|
|
-0.41
|
|
|
-0.31
|
|
|
-0.13
|
|
|
-0.19
|
|
|
Net asset value, end of period
|
$
|
9.96
|
|
$
|
9.71
|
|
$
|
9.79
|
|
$
|
8.68
|
|
$
|
6.24
|
|
|
Total return
3
|
|
6.74%
|
|
|
3.77%
|
|
|
16.75%
|
|
|
41.46%
|
|
|
-32.81%
|
|
|
Ratio to average net assets (annualized)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
2
|
|
1.83%
|
|
|
1.83%
|
|
|
1.83%
|
|
|
2.07%
|
|
|
2.50%
|
|
|
Gross expenses
2
|
|
0.63%
|
|
|
0.64%
|
|
|
0.64%
|
|
|
0.66%
|
|
|
1.07%
|
|
|
Net expenses
2
|
|
0.50%
|
|
|
0.50%
|
|
|
0.50%
|
|
|
0.53%
|
|
|
0.53%
|
|
|
Supplemental data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio turnover rate
4
|
|
28%
|
|
|
31%
|
|
|
33%
|
|
|
54%
|
|
|
35%
|
|
|
Net assets at end of period (000s omitted)
|
$
|
1,577,058
|
|
$
|
1,431,120
|
|
$
|
1,290,513
|
|
$
|
1,057,514
|
|
$
|
26,335
|
|
Target 2030 Fund
For a share outstanding throughout each period
|
|
|
Year ended February 28
|
|
Class R6*
|
2013
|
2012
1
|
2011
|
2010
|
2009
|
|
Net asset value, beginning of period
|
$
|
14.91
|
|
$
|
14.98
|
|
$
|
12.79
|
|
$
|
8.75
|
|
$
|
14.51
|
|
|
Income from investment operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
2
|
|
0.27
|
|
|
0.25
7
|
|
|
0.23
7
|
|
|
0.21
7
|
|
|
0.26
7
|
|
|
Net realized and unrealized gains (losses) on investments
|
|
0.86
|
|
|
0.12
|
|
|
2.21
|
|
|
4.03
|
|
|
-5.58
|
|
|
Total from investment operations
|
|
1.13
|
|
|
0.37
|
|
|
2.44
|
|
|
4.24
|
|
|
-5.32
|
|
|
Distribution to shareholders from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
-0.27
|
|
|
-0.25
|
|
|
-0.25
|
|
|
-0.20
|
|
|
-0.27
|
|
|
Net realized gains
|
|
-0.28
|
|
|
-0.19
|
|
|
0.00
|
|
|
-0.00
5
|
|
|
-0.17
|
|
|
Total distributions to shareholders
|
|
-0.55
|
|
|
-0.44
|
|
|
-0.25
|
|
|
-0.20
|
|
|
-0.44
|
|
|
Net asset value, end of period
|
$
|
15.49
|
|
$
|
14.91
|
|
$
|
14.98
|
|
$
|
12.79
|
|
$
|
8.75
|
|
|
Total return
3
|
|
7.82%
|
|
|
2.78%
|
|
|
19.35%
|
|
|
48.76%
|
|
|
-37.38%
|
|
|
Ratio to average net assets (annualized)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
2
|
|
1.80%
|
|
|
1.71%
|
|
|
1.65%
|
|
|
1.74%
|
|
|
2.15%
|
|
|
Gross expenses
2
|
|
0.64%
|
|
|
0.64%
|
|
|
0.65%
|
|
|
0.71%
|
|
|
0.83%
|
|
|
Net expenses
2
|
|
0.51%
|
|
|
0.51%
|
|
|
0.51%
|
|
|
0.61%
|
|
|
0.68%
|
|
|
Supplemental data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio turnover rate
4
|
|
25%
|
|
|
26%
|
|
|
28%
|
|
|
43%
|
|
|
33%
|
|
|
Net assets at end of period (000s omitted)
|
$
|
1,478,163
|
|
$
|
1,335,729
|
|
$
|
1,048,222
|
|
$
|
639,598
|
|
$
|
265,829
|
|
Target 2035 Fund
For a share outstanding throughout each period
|
|
|
Year ended February 28
|
|
Class R6*
|
2013
|
2012
1
|
2011
|
2010
|
2009
|
|
Net asset value, beginning of period
|
$
|
9.50
|
|
$
|
9.61
|
|
$
|
8.19
|
|
$
|
5.36
|
|
$
|
9.15
|
|
|
Income from investment operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
2
|
|
0.17
|
|
|
0.15
7
|
|
|
0.13
|
|
|
0.11
7
|
|
|
0.14
7
|
|
|
Net realized and unrealized gains (losses) on investments
|
|
0.65
|
|
|
0.02
|
|
|
1.58
|
|
|
2.82
|
|
|
-3.80
|
|
|
Total from investment operations
|
|
0.82
|
|
|
0.17
|
|
|
1.71
|
|
|
2.93
|
|
|
-3.66
|
|
|
Distribution to shareholders from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
-0.17
|
|
|
-0.14
|
|
|
-0.16
|
|
|
-0.10
|
|
|
-0.13
|
|
|
Net realized gains
|
|
-0.16
|
|
|
-0.14
|
|
|
-0.13
|
|
|
0.00
|
|
|
0.00
|
|
|
Total distributions to shareholders
|
|
-0.33
|
|
|
-0.28
|
|
|
-0.29
|
|
|
-0.10
|
|
|
-0.13
|
|
|
Net asset value, end of period
|
$
|
9.99
|
|
$
|
9.50
|
|
$
|
9.61
|
|
$
|
8.19
|
|
$
|
5.36
|
|
|
Total return
3
|
|
8.86%
|
|
|
1.96%
|
|
|
21.21%
|
|
|
54.85%
|
|
|
-40.44%
|
|
|
Ratio to average net assets (annualized)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
2
|
|
1.76%
|
|
|
1.60%
|
|
|
1.52%
|
|
|
1.40%
|
|
|
1.97%
|
|
|
Gross expenses
2
|
|
0.66%
|
|
|
0.66%
|
|
|
0.68%
|
|
|
0.75%
|
|
|
1.31%
|
|
|
Net expenses
2
|
|
0.52%
|
|
|
0.52%
|
|
|
0.52%
|
|
|
0.57%
|
|
|
0.64%
|
|
|
Supplemental data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio turnover rate
4
|
|
22%
|
|
|
22%
|
|
|
24%
|
|
|
34%
|
|
|
30%
|
|
|
Net assets at end of period (000s omitted)
|
$
|
648,345
|
|
$
|
481,784
|
|
$
|
338,577
|
|
$
|
170,172
|
|
$
|
16,279
|
|
Target 2040 Fund
For a share outstanding throughout each period
|
|
|
Year ended February 28
|
|
Class R6*
|
2013
|
2012
1
|
2011
|
2010
|
2009
|
|
Net asset value, beginning of period
|
$
|
16.37
|
|
$
|
16.69
|
|
$
|
13.84
|
|
$
|
8.88
|
|
$
|
16.29
|
|
|
Income from investment operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
2
|
|
0.29
|
|
|
0.24
|
|
|
0.22
|
|
|
0.18
7
|
|
|
0.25
7
|
|
|
Net realized and unrealized gains (losses) on investments
|
|
1.21
|
|
|
-0.05
|
|
|
2.87
|
|
|
4.95
|
|
|
-7.02
|
|
|
Total from investment operations
|
|
1.50
|
|
|
0.19
|
|
|
3.09
|
|
|
5.13
|
|
|
-6.77
|
|
|
Distribution to shareholders from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
-0.29
|
|
|
-0.24
|
|
|
-0.24
|
|
|
-0.17
|
|
|
-0.24
|
|
|
Net realized gains
|
|
-0.34
|
|
|
-0.27
|
|
|
0.00
|
|
|
-0.00
5
|
|
|
-0.40
|
|
|
Total distributions to shareholders
|
|
-0.63
|
|
|
-0.51
|
|
|
-0.24
|
|
|
-0.17
|
|
|
-0.64
|
|
|
Net asset value, end of period
|
$
|
17.24
|
|
$
|
16.37
|
|
$
|
16.69
|
|
$
|
13.84
|
|
$
|
8.88
|
|
|
Total return
3
|
|
9.50%
|
|
|
1.37%
|
|
|
22.66%
|
|
|
58.11%
|
|
|
-42.36%
|
|
|
Ratio to average net assets (annualized)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
2
|
|
1.76%
|
|
|
1.55%
|
|
|
1.44%
|
|
|
1.42%
|
|
|
1.88%
|
|
|
Gross expenses
2
|
|
0.65%
|
|
|
0.65%
|
|
|
0.67%
|
|
|
0.72%
|
|
|
0.85%
|
|
|
Net expenses
2
|
|
0.52%
|
|
|
0.52%
|
|
|
0.52%
|
|
|
0.62%
|
|
|
0.69%
|
|
|
Supplemental data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio turnover rate
4
|
|
20%
|
|
|
20%
|
|
|
21%
|
|
|
29%
|
|
|
29%
|
|
|
Net assets at end of period (000s omitted)
|
$
|
993,528
|
|
$
|
846,499
|
|
$
|
654,804
|
|
$
|
377,937
|
|
$
|
136,386
|
|
Target 2045 Fund
For a share outstanding throughout each period
|
|
|
Year ended February 28
|
|
Class R6*
|
2013
|
2012
1
|
2011
|
2010
|
2009
|
|
Net asset value, beginning of period
|
$
|
9.55
|
|
$
|
9.62
|
|
$
|
8.08
|
|
$
|
5.19
|
|
$
|
9.09
|
|
|
Income from investment operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
2
|
|
0.16
|
|
|
0.14
|
|
|
0.13
|
|
|
0.10
7
|
|
|
0.13
7
|
|
|
Net realized and unrealized gains (losses) on investments
|
|
0.76
|
|
|
-0.05
|
|
|
1.70
|
|
|
2.90
|
|
|
-3.91
|
|
|
Total from investment operations
|
|
0.92
|
|
|
0.09
|
|
|
1.83
|
|
|
3.00
|
|
|
-3.78
|
|
|
Distribution to shareholders from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
-0.17
|
|
|
-0.12
|
|
|
-0.18
|
|
|
-0.09
|
|
|
-0.12
|
|
|
Net realized gains
|
|
-0.13
|
|
|
-0.04
|
|
|
-0.11
|
|
|
-0.02
|
|
|
0.00
|
|
|
Total distributions to shareholders
|
|
-0.30
|
|
|
-0.16
|
|
|
-0.29
|
|
|
-0.11
|
|
|
-0.12
|
|
|
Net asset value, end of period
|
$
|
10.17
|
|
$
|
9.55
|
|
$
|
9.62
|
|
$
|
8.08
|
|
$
|
5.19
|
|
|
Total return
3
|
|
9.85%
|
|
|
1.16%
|
|
|
23.08%
|
|
|
58.02%
|
|
|
-42.06%
|
|
|
Ratio to average net assets (annualized)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
2
|
|
1.74%
|
|
|
1.51%
|
|
|
1.26%
|
|
|
1.26%
|
|
|
1.84%
|
|
|
Gross expenses
2
|
|
0.69%
|
|
|
0.67%
|
|
|
0.70%
|
|
|
0.95%
|
|
|
2.02%
|
|
|
Net expenses
2
|
|
0.52%
|
|
|
0.52%
|
|
|
0.52%
|
|
|
0.59%
|
|
|
0.69%
|
|
|
Supplemental data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio turnover rate
4
|
|
19%
|
|
|
19%
|
|
|
20%
|
|
|
27%
|
|
|
29%
|
|
|
Net assets at end of period (000s omitted)
|
$
|
324,476
|
|
$
|
215,067
|
|
$
|
141,871
|
|
$
|
51,776
|
|
$
|
8,287
|
|
Target 2050 Fund
For a share outstanding throughout each period
|
|
|
Year ended February 28
|
|
Class R6*
|
2013
|
2012
1
|
2011
|
2010
|
2009
|
|
Net asset value, beginning of period
|
$
|
9.20
|
|
$
|
9.50
|
|
$
|
8.10
|
|
$
|
5.20
|
|
$
|
9.13
|
|
|
Income from investment operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
2
|
|
0.16
|
|
|
0.14
|
|
|
0.12
7
|
|
|
0.10
|
|
|
0.13
7
|
|
|
Net realized and unrealized gains (losses) on investments
|
|
0.72
|
|
|
-0.07
|
|
|
1.72
|
|
|
2.92
|
|
|
-3.94
|
|
|
Total from investment operations
|
|
0.88
|
|
|
0.07
|
|
|
1.84
|
|
|
3.02
|
|
|
-3.81
|
|
|
Distribution to shareholders from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
-0.16
|
|
|
-0.12
|
|
|
-0.17
|
|
|
-0.09
|
|
|
-0.12
|
|
|
Net realized gains
|
|
-0.20
|
|
|
-0.25
|
|
|
-0.27
|
|
|
-0.03
|
|
|
0.00
|
|
|
Total distributions to shareholders
|
|
-0.36
|
|
|
-0.37
|
|
|
-0.44
|
|
|
-0.12
|
|
|
-0.12
|
|
|
Net asset value, end of period
|
$
|
9.72
|
|
$
|
9.20
|
|
$
|
9.50
|
|
$
|
8.10
|
|
$
|
5.20
|
|
|
Total return
3
|
|
9.94%
|
|
|
1.11%
|
|
|
23.17%
|
|
|
58.33%
|
|
|
-42.19%
|
|
|
Ratio to average net assets (annualized)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
2
|
|
1.75%
|
|
|
1.53%
|
|
|
1.43%
|
|
|
1.19%
|
|
|
1.80%
|
|
|
Gross expenses
2
|
|
0.67%
|
|
|
0.66%
|
|
|
0.67%
|
|
|
0.71%
|
|
|
1.19%
|
|
|
Net expenses
2
|
|
0.52%
|
|
|
0.52%
|
|
|
0.52%
|
|
|
0.57%
|
|
|
0.69%
|
|
|
Supplemental data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio turnover rate
4
|
|
19%
|
|
|
19%
|
|
|
20%
|
|
|
27%
|
|
|
29%
|
|
|
Net assets at end of period (000s omitted)
|
$
|
754,088
|
|
$
|
651,308
|
|
$
|
560,746
|
|
$
|
389,918
|
|
$
|
26,763
|
|
Target 2055 Fund
For a share outstanding throughout each period
|
|
|
Year ended February 28
|
|
Class R6*
|
2013
|
2012
6
|
|
Net asset value, beginning of period
|
$
|
10.08
|
|
$
|
10.00
|
|
|
Income from investment operations
|
|
|
|
|
|
|
|
Net investment income
2
|
|
0.15
|
|
|
0.08
7
|
|
|
Net realized and unrealized gains on investments
|
|
0.83
|
|
|
0.00
5
|
|
|
Total from investment operations
|
|
0.98
|
|
|
0.08
|
|
|
Distributions to shareholders from net investment income
|
|
-0.16
|
|
|
0.00
|
|
|
Net asset value, end of period
|
$
|
10.90
|
|
$
|
10.08
|
|
|
Total return
3
|
|
9.90%
|
|
|
0.80%
|
|
|
Ratios to average net assets (annualized)
|
|
|
|
|
|
|
|
Net investment income
2
|
|
1.69%
|
|
|
1.33%
|
|
|
Gross expenses
2
|
|
1.17%
|
|
|
4.06%
|
|
|
Net expenses
2
|
|
0.52%
|
|
|
0.52%
|
|
|
Supplemental data
|
|
|
|
|
|
|
|
Portfolio turnover rate
4
|
|
19%
|
|
|
19%
|
|
|
Net assets, end of period (000s omitted)
|
$
|
36,345
|
|
$
|
8,963
|
|
|
*
|
Effective June 1, 2013, Institutional Class was renamed Class R6.
|
|
1
|
Year ended February 29.
|
|
2
|
Includes net expenses allocated from affiliated Master Portfolios in which the Fund invests.
|
|
3
|
Total return calculations do not include any sales charges. Returns for periods less than one year are not annualized.
|
|
4
|
Portfolio turnover rate represents the weighted average portfolio turnover in each respective Master Portfolio.
|
|
5
|
Amount is less than $0.005.
|
|
6
|
For the period from June 30, 2011 (commencement of class operations) to February 29, 2012.
|
|
7
|
Calculated based upon average shares outstanding.
|
FOR MORE INFORMATION
More information on a Fund is available free upon request,
including the following documents:
Statement of Additional Information ("SAI")
Supplements the disclosures made by this Prospectus.
The SAI, which has been filed with the SEC, is
incorporated by reference into this Prospectus and
therefore is legally part of this Prospectus.
Annual/Semi-Annual Reports
Provide financial and other important information,
including a discussion of the market conditions
and investment strategies that significantly affected
Fund performance over the reporting period. To obtain copies of the above documents or for more
information about
Wells Fargo Advantage Funds
, contact us: By telephone:
Individual Investors: 1-800-222-8222
Retail Investment Professionals: 1-888-877-9275
Institutional Investment Professionals: 1-866-765-0778
|
By e-mail: wfaf@wellsfargo.com By mail:
Wells Fargo Advantage Funds
P.O. Box 8266
Boston, MA 02266-8266 On the Internet:
wellsfargoadvantagefunds.com From the SEC:
Visit the SEC's Public Reference Room in Washington,
DC (phone 1-202-551-8090 for operational
information for the SEC's Public Reference Room) or
the SEC's Internet site at sec.gov. To obtain information for a fee, write or email:
SEC's Public Reference Section
100 "F" Street, NE
Washington, DC 20549-0102
publicinfo@sec.gov
|
|
© 2013 Wells Fargo Funds Management, LLC. All rights reserved
|
063TD6R/P66R 06-13
ICA Reg. No. 811-09253
|
WELLS FARGO FUNDS TRUST
PART B
WELLS FARGO ADVANTAGE DOW JONES TARGET DATE FUNDS
STATEMENT OF ADDITIONAL INFORMATION
Statement of Additional Information
June 1, 2013
|
Wells Fargo Funds Trust
|
|
1.800.222.8222
|
|
Dow Jones Target Date Funds
|
Wells Fargo Advantage Dow Jones Target Today Fund:
Class R6* - WOTDX
Wells Fargo Advantage Dow Jones Target 2010 Fund:
Class R6* - WFOAX
Wells Fargo Advantage Dow Jones Target 2015 Fund:
Class R6* - WFSCX
Wells Fargo Advantage Dow Jones Target 2020 Fund:
Class R6* - WFOBX
Wells Fargo Advantage Dow Jones Target 2025 Fund:
Class R6* - WFTYX
Wells Fargo Advantage Dow Jones Target 2030 Fund:
Class R6* - WFOOX
Wells Fargo Advantage Dow Jones Target 2035 Fund:
Class R6* - WFQRX
Wells Fargo Advantage Dow Jones Target 2040 Fund:
Class R6* - WFOSX
Wells Fargo Advantage Dow Jones Target 2045 Fund:
Class R6* - WFQPX
Wells Fargo Advantage Dow Jones Target 2050 Fund:
Class R6* - WFQFX
Wells Fargo Advantage Dow Jones Target 2055 Fund
:
Class R6* - WFQUX
* Formerly, Institutional Class.
Wells Fargo Funds Trust (the "Trust") is an open-end, management investment company. This Statement of Additional Information
("SAI") contains additional information about eleven series of the Trust in the Wells Fargo Advantage family of funds - the
above referenced Funds (each, a "Fund" and collectively, the "Funds"). Each Fund is considered diversified under the Investment
Company Act of 1940, as amended (the "1940 Act"). This SAI is not a prospectus and should be read in conjunction with the
Funds' Prospectus (the "Prospectus") dated June 1, 2013. The Prospectus may be obtained free of charge by visiting our Web
site at wellsfargoadvantagefunds.com, calling
1-800-222-8222
or writing to Wells Fargo Advantage Funds®, P.O. Box 8266, Boston, MA 02266-8266.
DJTS3/FASAI37 (6/13)
Table of Contents
HISTORICAL FUND INFORMATION
Some of the Funds described in this SAI were created as part of the reorganization of the Stagecoach family of funds, advised
by Wells Fargo Bank, N.A. ("Wells Fargo Bank" or the "Custodian") and the Norwest Advantage family of funds, advised by Norwest
Investment Management, Inc., into a single mutual fund complex following the merger of the advisers' parent companies. On
March 25, 1999, the Board of Trustees of Stagecoach Trust and the Board of Trustees of the Trust (the "Board" or "Trustees")
approved an Agreement and Plan of Reorganization providing for, among other things, the transfer of the assets and stated
liabilities of the predecessor Stagecoach Trust portfolios to the Funds (the "Reorganization"). Prior to November 5, 1999,
the effective date of the Reorganization, the Funds had only nominal assets.
The Target Today, Target 2010, Target 2020, Target 2030, and Target 2040 Funds were originally named the "LifePath Funds."
Effective May 1, 2001, the Funds listed in the table below were renamed the "Outlook Funds," and effective June 26, 2006,
the Funds were renamed the "Target Date Funds" as follows:
|
Original Name
|
Name Effective May 1, 2001
|
|
Name Effective June 26, 2006
|
|
|
LifePath Opportunity Fund
|
Outlook Today Fund
|
|
Target Today Fund
|
|
|
LifePath 2010 Fund
|
Outlook 2010 Fund
|
|
Target 2010 Fund
|
|
|
LifePath 2020 Fund
|
Outlook 2020 Fund
|
|
Target 2020 Fund
|
|
|
LifePath 2030 Fund
|
Outlook 2030 Fund
|
|
Target 2030 Fund
|
|
|
LifePath 2040 Fund
|
Outlook 2040 Fund
|
|
Target 2040 Fund
|
|
Effective June 23, 2001, each of these Funds withdrew its investment from its respective Barclays Global Fund Advisors ("BGFA")-advised
master portfolio, and converted into a stand-alone Fund investing directly in a portfolio of securities. At that time, BGFA
became the direct adviser to each stand-alone Fund pursuant to an interim advisory agreement, and was entitled to receive
fees at the same annual rates as were applicable under the advisory contract with each BGFA-advised Master Portfolio. At the
special meetings of shareholders held on October 19, 2001, shareholders approved investment advisory and subadvisory arrangements,
with Wells Fargo Funds Management, LLC ("Funds Management" or "WFFM") as adviser and BGFA
as sub-adviser.
Effective June 26, 2006, these Funds were converted to gateway funds in a Master/Gateway® structure. In this structure, a
gateway fund invests substantially all of its assets in one or more master portfolios of Wells Fargo Master Trust ("Master
Trust") or other stand-alone funds of Wells Fargo Advantage Funds whose objectives and investment strategies are consistent
with the gateway fund's investment objective and strategies. At the special meeting of shareholders held June 12, 2006, and
subsequent adjournments on June 20, 2006, June 23, 2006, shareholders approved investment sub-advisory arrangements with Global
Index Advisors, Inc. ("Global Index Advisors" or "GIA"). The sub-advisory arrangements with BGFA terminated upon the conversion
of the Funds to gateway funds.
The Target Today, Target 2010, Target 2020, Target 2030 and Target 2040 Funds commenced operations on November 8, 1999, as
successors to the LifePath Funds of Stagecoach Trust. The predecessor Stagecoach Trust LifePath Funds offered Class A, Class
B, and Class C shares. The Class A shares, previously called Retail shares, of each predecessor Stagecoach Trust LifePath
Fund commenced operations on March 1, 1994. The Class B shares of the LifePath Opportunity Fund (predecessor to Target Today
Fund) commenced operations on August 1, 1998, and the Class C shares of the LifePath 2040 Fund (predecessor to Target 2040
Fund) commenced operations on July 1, 1998. The Class B shares of all other LifePath Funds commenced operations on March 1,
1997. The Class C shares of all other LifePath Funds commenced operations on December 1, 1998. The Administrator Class shares
commenced operations on November 8, 1999, the Institutional Class shares commenced operations on June 30, 2004, and the Investor
Class shares commenced operations on January 31, 2007. Prior to June 24, 1998, the LifePath Opportunity Fund of Stagecoach
Trust was named the LifePath 2000 Fund. The Target 2015, Target 2025, Target 2035, Target 2045 and Target 2050 Funds commenced
operations on June 29, 2007. The Target 2055 Fund commenced operations on July 1, 2011. Institutional Class shares of the
Funds were renamed Class R6 on June 1, 2013.
Throughout this SAI, the Wells Fargo Advantage Dow Jones Target Today Fund
SM
is referred to as the Target Today Fund; the Wells Fargo Advantage Dow Jones Target 2010 Fund
SM
is referred to as the Target 2010 Fund; the Wells Fargo Advantage Dow Jones Target 2015 Fund
SM
is referred to as the Target 2015 Fund; the Wells Fargo Advantage Dow Jones Target 2020 Fund
SM
is referred to as the Target 2020 Fund; the Wells Fargo Advantage Dow Jones Target 2025 Fund
SM
is referred to as the Target 2025 Fund; the Wells Fargo Advantage Dow Jones Target 2030 Fund
SM
is referred to as the Target 2030 Fund; the Wells Fargo Advantage Dow Jones Target 2035 Fund
SM
is referred to as the Target 2035 Fund; the Wells Fargo Advantage Dow Jones Target 2040 Fund
SM
is referred to as the Target 2040 Fund; the Wells Fargo Advantage Dow Jones Target 2045 Fund
SM
is referred to as the Target 2045 Fund; the Wells Fargo Advantage Dow Jones Target 2050 Fund
SM
is referred to as the Target 2050 Fund; and the Wells Fargo Advantage Dow Jones Target 2055 Fund
SM
is referred to as the Target 2055 Fund.
The "Dow Jones Target Date Indexes
SM
" are products of Dow Jones Indexes, a licensed trademark of CME Group Index Services LLC ("CME"), and have been licensed
for use. "Dow Jones
®
", "Dow Jones Target Date Indexes
SM
" and "Dow Jones Indexes" are service marks of Dow Jones Trademark Holdings, LLC ("Dow Jones") and have been licensed to CME
and have been licensed for use for certain purposes by Global Index Advisors, Inc. and Wells Fargo Funds Management, LLC.
The
Wells Fargo Advantage Dow Jones Target Date Funds
are not sponsored, endorsed, sold or promoted by Dow Jones, CME or their respective affiliates. Dow Jones, CME and their
respective affiliates make no representation or warranty, express or implied, to the owners of the Funds or any member of
the public regarding the advisability of investing in securities generally or in the Funds particularly. The only relationship
of Dow Jones, CME or any of their respective affiliates to Global Index Advisors, Inc. and Wells Fargo Funds Management, LLC
is the licensing of certain trademarks, trade names and service marks of Dow Jones and of the Dow Jones Target Date Indexes
SM
, which are determined, composed and calculated by CME without regard to Global Index Advisors, Inc., Wells Fargo Funds Management,
LLC or the Funds. Dow Jones and CME have no obligation to take the needs of Global Index Advisors, Inc., Wells Funds Management,
LLC or the owners of the Funds into consideration in determining, composing or calculating the Dow Jones Target Date Indexes
SM
. Dow Jones, CME and their respective affiliates are not responsible for and have not participated in the determination of
the timing of, prices at, or quantities of the Funds to be issued or in the determination or calculation of the equation by
which the Funds are to be converted into cash. Dow Jones, CME and their respective affiliates have no obligation or liability
in connection with the administration, marketing or trading of the Funds. Not withstanding the foregoing, CME Group Inc. and
its affiliates may independently issue and/or sponsor financial products unrelated to the Funds currently being issued by
Global Index Advisors, Inc. or Wells Fargo Funds Management, LLC, but which may be similar to and competitive with the Funds.
In addition, CME Group Inc. and its affiliates may trade financial products which are linked to the performance of the Dow
Jones Target Date Indexes
SM
. It is possible that this trading activity will affect the value of the Dow Jones Target Date Indexes
SM
and Funds.
DOW JONES, CME AND THEIR RESPECTIVE AFFILIATES DO NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF THE DOW JONES TARGET
DATE INDEXES
SM
OR ANY DATA INCLUDED THEREIN AND DOW JONES, CME AND THEIR RESPECTIVE AFFILIATES SHALL HAVE NO LIABILITY FOR ANY ERRORS, OMISSIONS,
OR INTERRUPTIONS THEREIN. DOW JONES, CME AND THEIR RESPECTIVE AFFILIATES MAKE NO WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS
TO BE OBTAINED BY GLOBAL INDEX ADVISORS, INC., WELLS FARGO FUNDS MANAGEMENT, LLC, OWNERS OF THE FUNDS, OR ANY OTHER PERSON
OR ENTITY FROM THE USE OF THE DOW JONES TARGET DATE INDEXES
SM
OR ANY DATA INCLUDED THEREIN. DOW JONES, CME AND THEIR RESPECTIVE AFFILIATES MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY
DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE DOW JONES TARGET
DATE INDEXES
SM
OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL DOW JONES, CME OR THEIR RESPECTIVE
AFFILIATES HAVE ANY LIABILITY FOR ANY LOST PROFITS OR INDIRECT, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES OR LOSSES, EVEN
IF NOTIFIED OF THE POSSIBILITY THEREOF. THERE ARE NO THIRD PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN CME
AND GLOBAL INDEX ADVISORS, INC., OR WELLS FARGO FUNDS MANAGEMENT, LLC, OTHER THAN THE LICENSORS OF CME.
Fundamental Investment Policies
Each Fund has adopted the following fundamental investment policies; that is, they may not be changed without approval by
the holders of a majority (as defined under the 1940 Act) of the outstanding voting securities of each Fund.
The Funds may not
:
(1) purchase the securities of issuers conducting their principal business activity in the same industry if, immediately after
the purchase and as a result thereof, the value of the Fund's investments in that industry would equal or exceed 25% of the
current value of the Fund's total assets, provided that this restriction does not limit a Fund's investments in (i) securities
issued or guaranteed by the U.S. Government, its agencies or instrumentalities, (ii) securities of other investment companies,
(iii) municipal securities, and (iv) repurchase agreements;
(2) purchase securities of any issuer if, as a result, with respect to 75% of a Fund's total assets, more than 5% of the value
of its total assets would be invested in the securities of any one issuer or the Fund's ownership would be more than 10% of
the outstanding voting securities of such issuer, provided that this restriction does not limit a Fund's investments in securities
issued or guaranteed by the U.S. Government, its agencies and instrumentalities, or investments in securities of other investment
companies;
(3) borrow money, except to the extent permitted under the 1940 Act, including the rules, regulations and any exemptive orders
obtained thereunder;
(4) issue senior securities, except to the extent permitted under the 1940 Act, including the rules, regulations and any exemptive
orders obtained thereunder;
(5) make loans to other parties if, as a result, the aggregate value of such loans would exceed one-third of a Fund's total
assets. For the purposes of this limitation, entering into repurchase agreements, lending securities and acquiring any debt
securities are not deemed to be the making of loans;
(6) underwrite securities of other issuers, except to the extent that the purchase of permitted investments directly from
the issuer thereof or from an underwriter for an issuer and the later disposition of such securities in accordance with a
Fund's investment program may be deemed to be an underwriting;
(7) purchase or sell real estate unless acquired as a result of ownership of securities or other instruments (but this shall
not prevent a Fund from investing in securities or other instruments backed by real estate or securities of companies engaged
in the real estate business);
(8) purchase or sell commodities, provided that (i) currency will not be deemed to be a commodity for purposes of this restriction,
(ii) this restriction does not limit the purchase or sale of futures contracts, forward contracts or options, and (iii) this
restriction does not limit the purchase or sale of securities or other instruments backed by commodities or the purchase or
sale of commodities acquired as a result of ownership of securities or other instruments.
Non-Fundamental Investment Policies
Each Fund has adopted the following non-fundamental policies; that is, they may be changed by the Trustees at any time without
approval of such Fund's shareholders.
(1) Each Fund may invest in shares of other investment companies to the extent permitted under the 1940 Act, including the
rules, regulations and any exemptive orders obtained thereunder, provided however, that no Fund that has knowledge that its
shares are purchased by another investment company investor pursuant to Section 12(d)(1)(G) of the 1940 Act will acquire any
securities of registered open-end management investment companies or registered unit investment trusts in reliance on Section
12(d)(1)(F) or 12(d)(1)(G) of the 1940 Act.
(2) Each Fund may not invest or hold more than 15% of the Fund's net assets in illiquid securities. For this purpose, illiquid
securities include, among others, (a) securities that are illiquid by virtue of the absence of a readily available market
or legal or contractual restrictions on resale, (b) fixed time deposits that are subject to withdrawal penalties and that
have maturities of more than seven days, and (c) repurchase agreements not terminable within seven days.
(3) Each Fund may invest in futures or options contracts consistent with its investment policies and the 1940 Act, including
the rules, regulations and interpretations of the Securities and Exchange Commission (the "SEC") thereunder or any exemptive
orders obtained thereunder, and consistent with investment in futures or options contracts that would allow the Fund to claim
an exclusion from being a "commodity pool operator" as defined by the Commodity Exchange Act.
(4) Each Fund may lend securities from its portfolio to approved brokers, dealers and financial institutions, to the extent
permitted under the 1940 Act, including the rules, regulations and exemptions thereunder, which currently limit such activities
to one-third of the value of a Fund's total assets (including the value of the collateral received). Any such loans of portfolio
securities will be fully collateralized based on values that are marked-to-market daily.
(5) Each Fund may not make investments for the purpose of exercising control or management, provided that this restriction
does not limit a Fund's investments in securities of other investment companies or investments in entities created under the
laws of foreign countries to facilitate investment in securities of that country.
(6) Each Fund may not purchase securities on margin (except for short-term credits necessary for the clearance of transactions).
(7) Each Fund may not sell securities short, unless it owns or has the right to obtain securities equivalent in kind and
amount to the securities sold short (short sales "against the box"), and provided that transactions in futures contracts and
options are not deemed to constitute selling securities short.
Further Explanation of Investment Policies
With respect to repurchase agreements, the Fund invests only in repurchase agreements that are fully collateralized by securities
issued or guaranteed by the U.S. Government, its agencies or instrumentalities. For purposes of the Fund's fundamental
investment policy with respect to concentration, the Fund does not consider such repurchase agreements to constitute an industry
or group of industries because the Fund chooses to look through such securities to the underlying collateral, which is itself
excepted from the Fund's concentration policy.
Notwithstanding the foregoing policies, any other investment companies in which the Funds may invest have adopted their own
investment policies, which may be more or less restrictive than those listed above, thereby allowing a Fund to participate
in certain investment strategies indirectly that are prohibited under the fundamental and non-fundamental investment policies
listed above.
ADDITIONAL APPROVED INVESTMENT STRATEGIES
In addition to the principal investment strategies set forth in the Prospectuses, the Funds may also use futures, options
or swap agreements, as well as other derivatives, to manage risk or to enhance return. Please refer to a Fund's Prospectuses
for information regarding the Fund's anticipated use of derivatives, if any, as a principal investment strategy. Please note
that even if a Fund's Prospectuses do not currently include information regarding derivatives, or only includes information
regarding certain derivative instruments, the Fund may use any of the derivative securities described below, at any time,
and to any extent consistent with the Fund's other principal investment strategies.
DERIVATIVES
Derivative Securities
Derivative securities are securities that derive their value, at least in part, from the price of another security or asset,
or the level of an index, such as the S&P 500 Index, or a rate, such as the London Interbank Offered Rate ("LIBOR"), including
structured notes, bonds or other instruments with interest rates that are determined by reference to changes in the value
of other interest rates, indices or financial indicators ("References") or the relative change in two or more References.
Some forms of derivatives, such as exchange-traded futures and options on securities, commodities, or indices, are traded
on regulated exchanges. These types of derivatives are standardized contracts that can easily be bought and sold, and whose
market values are determined and published daily. Non-standardized derivatives, on the other hand, tend to be more specialized
or complex, and may be harder to value. Futures contracts and options are also considered types of derivative securities,
and are described more fully under the heading "Futures and Options Contracts" below. Other common types of derivatives include
forward foreign currency exchange contracts, forward contracts on securities and securities indices, linked securities and
structured products, collateralized mortgage obligations, stripped securities, warrants, swap agreements, and swaptions.
An investment is often made in derivative securities as a "hedge" against fluctuations in the market value of the other securities
in a Fund's portfolio due to currency exchange rate fluctuations or other factors in the securities markets, although a Fund
may also invest in certain derivative securities for investment purposes only. Other reasons why a Fund may use derivative
securities include protecting its unrealized gains reflected in the value of its portfolio of securities, facilitating the
sale of such securities for investment purposes, reducing transaction costs, and/or managing the effective maturity or duration
of its portfolio.
While derivative securities are useful for hedging and investment, they also carry additional risks. A hedging policy may
fail if the correlation between the value of the derivative securities and the other investments in a Fund's portfolio does
not follow the adviser's expectations. If the adviser's expectations are not met, it is possible that the hedging strategy
will not only fail to protect the value of a Fund's investments, but the Fund may also lose money on the derivative security
itself. In addition, some derivative securities represent relatively recent innovations in the bond markets. The trading market
for these instruments is less developed than the markets for traditional types of debt instruments. It is uncertain how these
derivative securities will perform under different economic interest-rate scenarios. Because certain of these instruments
are leveraged, their market values may be more volatile than other types of securities and may present greater potential for
capital gain or loss. Derivative securities and their underlying instruments may experience periods of illiquidity, which
could cause a Fund to hold a security it might otherwise sell or a Fund could be forced to sell a security at inopportune
times or for prices that do not reflect current market value. The possibility of default by the issuer or the issuer's credit
provider may be greater for structured and derivative instruments than for other types of instruments. As new types of derivative
securities are developed and offered to investors, the adviser will, consistent with a Fund's investment objective, policies,
restrictions and quality standards, consider making investments in such new types of derivative securities.
Additional risks of derivative securities include, but are not limited to: the risk of disruption of a Fund's ability to trade
in derivative securities because of regulatory compliance problems or regulatory changes; credit risk of counterparties to
derivative contracts, and market risk (i.e., exposure to adverse price changes).
The Adviser uses a variety of internal risk management procedures to ensure that derivatives are closely monitored and that
their use is consistent with a particular Fund's investment objective, policies, restrictions and quality standards, and does
not expose such Fund to undue risk.
A Fund's use of derivatives also is subject to broadly applicable investment policies. For example, a Fund may not invest
more than a specified percentage of its assets in "illiquid securities," including those derivatives that do not have active
secondary markets. A Fund also may not use certain derivatives without establishing adequate "cover" in compliance with the
SEC rules limiting the use of leverage.
Both equity and credit derivatives include options, futures and options on futures, which may be used to hedge a Fund's portfolio,
increase returns or maintain exposure to a market without buying individual securities. These investments may pose risks in
addition to those associated with investing directly in securities or other investments. Such risks may include illiquidity
of the derivative and imperfect correlation of the derivative with underlying investments for which it is being substituted
or the Fund's other portfolio holdings. Accordingly, there is the risk that such practices may fail to serve their intended
purposes, and may reduce returns or increase volatility. These practices also entail transactional expenses.
Additionally, the use of derivatives can lead to losses because of adverse movements in the price or value of the underlying
security, asset, index or reference rate, which may be magnified by certain features of the derivatives. These risks are heightened
when a Fund uses derivatives to enhance its return or as a substitute for a position or security, rather than solely to hedge
or offset the risk of a position or security held by a Fund. A Fund's use of derivatives to leverage risk also may exaggerate
a loss, potentially causing a Fund to lose more money than if it had invested in the underlying security, or limit a potential
gain.
The success of management's derivative strategies will depend on its ability to assess and predict the impact of market or
economic developments on the underlying security, asset, index or reference rate and the derivative itself, without necessarily
the benefit of observing the performance of the derivative under all possible market conditions. Other risks arise from a
Fund's potential inability to terminate or sell its derivative positions as a liquid secondary market for such positions may
not exist at times when a Fund may wish to terminate or sell them. Over-the-counter instruments (investments not traded on
an exchange) may be illiquid. Derivatives traded in the over-the-counter market are subject to the risk that the other party
will not meet its obligations. Also, with some derivative strategies, there is the risk that a Fund may not be able to find
a suitable counterparty for the derivative transaction, and therefore may be unable to invest in derivatives altogether. The
use of derivatives may also increase the amount and accelerate the timing of taxes payable by shareholders.
A Fund that is authorized to invest in derivatives may use any or all of the above investment techniques and may purchase
different types of derivative instruments at any time and in any combination. There is no particular strategy that dictates
the use of one technique over another, as the use of derivatives is a function of numerous variables, including market conditions.
Credit Derivatives
. A credit derivative is a form of derivative that is divided into two categories: credit default swaps and total return swaps.
Both such categories of credit derivatives are usually governed by the standard terms and conditions of an ISDA Master Agreement.
A credit default swap involves a protection buyer and a protection seller. A Fund may be either a protection buyer or seller.
The protection buyer makes periodic premium payments to the protection seller during the swap term in exchange for the protection
seller agreeing to make certain defined payments to the protection buyer in the event certain defined credit events occur
with respect to a particular security, issuer or basket of securities. A total return swap involves a total return receiver
and a total return payor. A Fund may either be a total return receiver or payor. Generally, the total return payor sells to
the total return receiver an amount equal to all cash flows and price appreciation on a defined security or asset payable
at periodic times during the swap term (i.e., credit risk) in return for a periodic payment from the total return receiver
based on designated index (e.g., LIBOR) and spread plus the amount of any price depreciation on the reference security or
asset. The total return payor does not need to own the underlying security or asset to enter into a total return swap. The
final payment at the end of the swap term includes final settlement of the current market price of the underlying reference
security or asset, and payment by the applicable party for any appreciation or depreciation in value. Usually, collateral
must be posted by the total return receiver to secure the periodic interest-based and market price depreciation payments depending
on the credit quality of the underlying reference security and creditworthiness of the total return receiver, and the collateral
amount is marked-to-market daily equal to the market price of the underlying reference security or asset between periodic
payment dates.
Other types of credit derivatives include credit-linked notes and other forms of debt obligations having an embedded credit
default swap component. In such type of credit derivative, payments of principal and interest are tied to the performance
of one or more reference obligations or assets.
In all of the above-referenced credit derivative transactions, the same general risks inherent to derivative transactions
are present. However, credit derivative transactions also carry with them greater risks of imperfect correlation between the
performance and price of the underlying reference security or asset, and the general performance of the designated interest
rate or index which is the basis for the periodic payment. If a Fund writes a credit default swap, it receives an up-front
premium. A Fund's exposure under a credit default swap, though, is a form of leverage and will be subject to the restrictions
on leveraged derivatives.
Inverse Floaters
. A Fund may invest in inverse floating rate municipal securities or "inverse floaters," sometimes also referred to as a "residual
interest certificates." Inverse floaters are issued by tender option bond trusts ("trusts") that are established by a third
party sponsor in connection with the transfer of municipal bonds to the trusts. In addition to inverse floaters, these trusts
typically issue short-term floating rate notes which are usually sold to money market funds ("floating rate notes"). An inverse
floater is a type of "derivative" debt instrument with a floating or variable interest rate that moves in the opposite direction
of the interest rate on another security, normally the floating rate note. Because changes in the interest rate on the note
inversely affect the rate of interest received on an inverse floater, and because inverse floaters essentially represent a
leveraged investment in a long-term bond, the value of an inverse floater is generally more volatile than that of a conventional
fixed-rate municipal bond having similar credit quality, redemption provisions and maturity. Inverse floaters may have interest
rate adjustment formulas which generally reduce or eliminate the interest paid to a Fund when short-term interest rates rise,
and increase the interest paid to a Fund when short-term interest rates fall. The value of inverse floaters also tends to
fall faster than the value of fixed rate municipal bonds when interest rates rise, and conversely, their value tends to rise
more rapidly when interest rates fall. Inverse floaters have varying degrees of liquidity, and the market for these securities
is relatively volatile. Inverse floaters tend to underperform the market for fixed rate municipal bonds in a rising long-term
interest rate environment, but tend to outperform that market when long-term interest rates decline.
An investment in inverse floaters may involve greater risk than an investment in a fixed-rate municipal security. All inverse
floaters entail some degree of leverage. The interest rate on inverse floaters varies inversely at a pre-set multiple of the
change in short-term rates. An inverse floater that has a higher multiple, and therefore more leverage, will be more volatile
with respect to both price and income than an inverse floater with a lower degree of leverage or than the underlying security.
The markets for inverse floating rate securities may be less developed and have less liquidity than the markets for conventional
securities.
Under applicable financial accounting standards, inverse floater transactions in which the Fund has transferred a municipal
security it owned to a trust are considered a form of secured borrowing for financial reporting purposes, requiring expenses
and income to be shown in gross amount on the statement of operations. This increases a fund's overall expense ratio. This
accounting treatment does not apply to any inverse floaters acquired by the Fund that were created by a third-party's transfer
of a municipal security to the issuing trust.
Futures and Options Contracts
In General.
A futures transaction involves a firm agreement to buy or sell a commodity or financial instrument at a particular price
on a specified future date, while an option transaction generally involves a right, which may or may not be exercised, to
buy or sell a commodity or financial instrument at a particular price on a specified future date. Futures contracts and options
are standardized and exchange-traded, where the exchange serves as the ultimate counterparty for all contracts. Consequently,
the primary credit risk on futures contracts is the creditworthiness of the exchange. Futures contracts, however, are subject
to market risk (i.e., exposure to adverse price changes).
Initially, when purchasing or selling futures contracts, the Fund will be required to deposit with the Fund's custodian in
the broker's name or with the broker as required an amount of cash or cash equivalents. This amount is subject to change by
the exchange or board of trade on which the contract is traded, and members of such exchange or board of trade may impose
their own higher requirements. This amount is known as "initial margin" and is in the nature of a performance bond or good
faith deposit on the contract that is returned to the Fund upon termination of the futures position, assuming all contractual
obligations have been satisfied. Subsequent payments, known as "variation margin," to and from the broker will be made daily
as the price of the index or securities underlying the futures contract fluctuates, making the long and short positions in
the futures contract more or less valuable. At any time prior to the expiration of a futures contract, a Fund may elect to
close the position by taking an opposite position, at the then prevailing price, thereby terminating its existing position
in the contract.
Although a Fund intends to purchase or sell futures contracts only if there is an active market for such contracts, no assurance
can be given that a liquid market will exist for any particular contract at any particular time. Many futures exchanges and
boards of trade limit the amount of fluctuation permitted in futures contract prices during a single trading day. Once the
daily limit has been reached in a particular contract, no trades may be made that day at a price beyond that limit or trading
may be suspended for specified periods during the trading day. Futures contract prices could move to the limit for several
consecutive trading days with little or no trading, thereby preventing prompt liquidation of futures positions and potentially
subjecting a Fund to substantial losses. If it is not possible, or a Fund determines not to close a futures position in anticipation
of adverse price movements, the Fund will be required to make daily cash payments of variation margin.
An option on a futures contract gives the purchaser the right, in return for the premium paid, to assume a position in a futures
contract (a long position if the option is a call and a short position if the option is a put) at a specified exercise price
at any time during the option exercise period. The writer (i.e., seller) of the option is required upon exercise to assume
an offsetting futures position (a short position if the option is a call and a long position if the option is a put). Upon
exercise of the option, the assumption of offsetting futures positions by both the writer and the holder of the option will
be accompanied by delivery of the accumulated cash balance in the writer's futures margin account in the amount by which the
market price of the futures contract, at exercise, exceeds (in the case of a call) or is less than (in the case of a put)
the exercise price of the option on the futures contract. The potential loss related to the purchase of options on futures
contracts is limited to the premium paid for the option (plus transaction costs). Because the value of the option is fixed
at the time of sale, there are no daily cash payments to reflect changes in the value of the underlying contract; however,
the value of the option may change daily, and that change would be reflected in the net asset value ("NAV") of the Fund.
A Fund may trade futures contracts and options on futures contracts in U.S. domestic markets, such as the Chicago Board of
Trade and the International Monetary Market of the Chicago Mercantile Exchange. Pursuant to regulations and/or published positions
of the SEC, a Fund may be required to segregate cash or high-quality money-market instruments in connection with its futures
transactions in an amount generally equal to the entire value of the underlying security.
Pursuant to a notice of eligibility claiming exclusion from the definition of Commodity Pool Operator filed with the National
Futures Association on behalf of the Funds, neither the Trust nor any of the individual Funds is deemed to be a "commodity
pool operator" under the Commodity Exchange Act ("CEA"), and, accordingly, they are not subject to registration or regulation
as such under the CEA.
A Fund may engage in futures contracts sales to maintain the income advantage from continued holding of a long-term security
while endeavoring to avoid part or all of the loss in market value that would otherwise accompany a decline in long-term security
prices. If, however, securities prices rise, a Fund would realize a loss in closing out its futures contract sales that would
offset any increases in prices of the long-term securities they hold.
Another risk in employing futures contracts and options thereon to protect against cash market price volatility is the possibility
that futures prices will correlate imperfectly with the behavior of the prices of the securities in such portfolio (the portfolio
securities will not be identical to the debt instruments underlying the futures contracts).
Options Trading.
Options on individual securities or options on indices of securities may be purchased or sold. The purchaser of an option
risks a total loss of the premium paid for the option if the price of the underlying security does not increase or decrease
sufficiently to justify the exercise of such option. The seller of an option, on the other hand, will recognize the premium
as income if the option expires unrecognized but foregoes any capital appreciation in excess of the exercise price in the
case of a call option and may be required to pay a price in excess of current market value in the case of a put option.
A call option for a particular security gives the purchaser of the option the right to buy, and a writer the obligation to
sell, the underlying security at the stated exercise price at any time prior to the expiration of the option, regardless of
the market price of the security. The premium paid to the writer is in consideration for undertaking the obligation under
the option contract. A put option for a particular security gives the purchaser the right to sell, and the writer the option
to buy, the security at the stated exercise price at any time prior to the expiration date of the option, regardless of the
market price of the security.
A Fund will write call options only if they are "covered." In the case of a call option on a security or currency, the option
is "covered" if a Fund owns the instrument underlying the call or has an absolute and immediate right to acquire that instrument
without additional cash consideration (or, if additional cash consideration is required, cash, U.S. Government securities
or other liquid high-grade debt obligations, in such amount are held in a segregated account by such Fund's custodian) upon
conversion or exchange of other securities held by it. For a call option on an index, the option is covered if a Fund maintains
with its custodian a diversified portfolio of securities comprising the index or liquid assets equal to the contract value.
A call option is also covered if a Fund holds an offsetting call on the same instrument or index as the call written. A Fund
will write put options only if they are "secured" by liquid assets maintained in a segregated account by the Fund's custodian
in an amount not less than the exercise price of the option at all times during the option period.
A Fund may buy put and call options and write covered call and secured put options. Options trading is a highly specialized
activity which entails greater than ordinary investment risk. Options may be more volatile than the underlying instruments,
and therefore, on a percentage basis, an investment in options may be subject to greater fluctuation than an investment in
the underlying instruments themselves. Purchasing options is a specialized investment technique that entails a substantial
risk of a complete loss of the amounts paid as premiums to the writer of the option. If the adviser is incorrect in its forecast
of market value or other factors when writing options, the Fund would be in a worse position than it would have been had if
it had not written the option. If a Fund wishes to sell an underlying instrument (in the case of a covered call option) or
liquidate assets in a segregated account (in the case of a secured put option), the Fund must purchase an offsetting option
if available, thereby incurring additional transactions costs.
Below is a description of some of the types of futures and options in which the Funds may invest.
Stock Index Options
. A Fund may purchase and write (i.e., sell) put and call options on stock indices only as a substitute for comparable market
positions in the underlying securities. A stock index fluctuates with changes of the market values of the stocks included
in the index. The effectiveness of purchasing or writing stock index options will depend upon the extent to which price movements
of the securities in a Fund's portfolio correlate with price movements of the stock index selected. Because the value of an
index option depends upon movements in the level of the index rather than the price of a particular stock, whether a Fund
will realize a gain or loss from purchasing or writing stock index options depends upon movements in the level of stock prices
in the stock market generally or, in the case of certain indices, in an industry or market segment, rather than movements
in the price of particular stock. When a Fund writes an option on a stock index, such Funds will place in a segregated account
with the Fund's custodian cash or liquid securities in an amount at least equal to the market value of the underlying stock
index and will maintain the account while the option is open or otherwise will cover the transaction.
Stock Index Futures and Options on Stock Index Futures
. A Fund may invest in stock index futures and options on stock index futures only as a substitute for a comparable market
position in the underlying securities. A stock index future obligates the seller to deliver (and the purchaser to take), effectively,
an amount of cash equal to a specific dollar amount times the difference between the value of a specific stock index at the
close of the last trading day of the contract and the price at which the agreement is made. No physical delivery of the underlying
stocks in the index is made. With respect to stock indices that are permitted investments, each Fund intends to purchase and
sell futures contracts on the stock index for which it can obtain the best price with consideration also given to liquidity.
Foreign Currency Futures Contracts
. A Fund may invest in foreign currency futures contracts which entail the same risks as other futures contracts as described
above, but have the additional risks associated with international investing (see "Foreign Obligations and Securities" below).
Similar to other futures contracts, a foreign currency futures contract is an agreement for the future delivery of a specified
currency at a specified time and at a specified price that will be secured by margin deposits, is regulated by the Commodity
Futures Trading Commission ("CFTC") and is traded on designated exchanges. A Fund will incur brokerage fees when it purchases
and sells futures contracts.
To the extent that a Fund may invest in securities denominated in currencies other than the U.S. dollar and may temporarily
hold funds in bank deposits or other money market investments denominated in foreign currencies, it may be affected favorably
or unfavorably by exchange control regulations or changes in the exchange rate between such currencies and the dollar. The
rate of exchange between the U.S. dollar and other currencies is determined by the forces of supply and demand in the foreign
exchange markets. The international balance of payments and other economic and financial conditions, government intervention,
speculation and other factors affect these forces.
If a fall in exchange rates for a particular currency is anticipated, a Fund may sell a foreign currency futures contract
as a hedge. If it is anticipated that exchange rates will rise, a Fund may purchase a foreign currency futures contract to
protect against an increase in the price of securities denominated in a particular currency the Fund intends to purchase.
These foreign currency futures contracts will be used only as a hedge against anticipated currency rate changes. Although
such contracts are intended to minimize the risk of loss due to a decline in the value of the hedged currency, at the same
time, they tend to limit any potential gain which might result should the value of such currency increase.
The use of foreign currency futures contracts involves the risk of imperfect correlation between movements in futures prices
and movements in the price of currencies which are the subject of the hedge. The successful use of foreign currency futures
contracts also depends on the ability of the adviser to correctly forecast interest rate movements, currency rate movements
and general stock market price movements. There can be no assurance that the adviser's judgment will be accurate. The use
of foreign currency futures contracts also exposes a Fund to the general risks of investing in futures contracts, including:
the risk of an illiquid market for the foreign currency futures contracts and the risk of adverse regulatory actions. Any
of these events may cause a Fund to be unable to hedge its currency risks, and may cause a Fund to lose money on its investments
in foreign currency futures contracts.
Interest Rate Futures Contracts and Options on Interest Rate Futures Contracts
. A Fund may invest in interest rate futures contracts and options on interest rate futures contracts as a substitute for
a comparable market position in the underlying securities. The Fund may also sell options on interest rate futures contracts
as part of closing purchase transactions to terminate its options positions. No assurance can be given that such closing transactions
can be effected or as to the degree of correlation between price movements in the options on interest rate futures and price
movements in the Fund's portfolio securities which are the subject of the transaction.
Future Developments
. A Fund may take advantage of opportunities in the areas of options and futures contracts and options on futures contracts
and any other derivative investments which are not presently contemplated for use by the Fund or which are not currently available
but which may be developed, to the extent such opportunities are both consistent with a Fund's investment objective and legally
permissible for the Fund.
Swap Agreements and Swaptions
Swap agreements are derivative instruments that can be individually negotiated and structured to address exposure to a variety
of different types of investments or market factors. Depending on their structure, swap agreements may increase or decrease
a Fund's exposure to long- or short-term interest rates, foreign currency values, mortgage securities, corporate borrowing
rates, or other factors such as security prices or inflation rates. A Fund may enter into a variety of swap agreements, including
interest rate, index, commodity, equity, credit default and currency exchange rate swap agreements, and other types of swap
agreements such as caps, collars and floors. A Fund also may enter into swaptions, which are options to enter into a swap
agreement. In a swaption, in exchange for an option premium, the purchaser of the swaption acquires the right, but not the
obligation, to enter into a specified swap agreement with a counterparty on a specified future date. If there is a default
by the other party to a swap agreement or swaption, the Fund will have contractual remedies pursuant to the agreements related
to the transaction.
The use of swaps and swaptions is a highly specialized activity that involves investment techniques and risks different from
those associated with ordinary portfolio security transactions. These transactions generally do not involve the delivery of
securities or other underlying assets or principal. Accordingly, the risk of loss with respect to swap agreements and swaptions
generally is limited to the net amount of payments that the Fund is contractually obligated to make. There is also a risk
of a default by the other party to a swap agreement or swaption, in which case a Fund may not receive the net amount of payments
that such Fund contractually is entitled to receive.
Interest Rate Swap Agreements
. In a typical interest rate swap, one party agrees to make regular payments equal to a floating interest rate times a "notional
principal amount," in return for payments equal to a fixed rate times the same amount, for a specified period of time. The
exchange commitment can involve payments to be made in the same currency or in different currencies. A Fund will usually enter
into swap agreements on a net basis. In so doing, the two payment streams under the swap agreement are netted out, with the
Fund receiving or paying, as the case may be, only the net amount of the two payments. If the Fund enters into a swap agreement,
it will maintain a segregated account on a gross basis, unless the contract provides for a segregated account on a net basis.
If a swap agreement provides for payments in different currencies, the parties might agree to exchange notional principal
amount as well. In a total return swap agreement, the non-floating rate side of the swap is based on the total return of an
individual security, a basket of securities, an index or another reference asset. Swaps may also depend on other prices or
rates, such as the value of an index or mortgage prepayment rates.
In a typical cap or floor agreement, one party agrees to make payments only under specified circumstances, usually in return
for payment of a fee by the other party. For example, the buyer of an interest rate cap obtains the right to receive payments
to the extent that a specified interest rate exceeds an agreed-upon level, while the seller of an interest rate floor is obligated
to make payments to the extent that a specified interest rate falls below an agreed-upon level. Caps and floors have an effect
similar to buying or writing options. A collar combines elements of buying a cap and selling a floor.
Swap agreements will tend to shift a Fund's investment exposure from one type of investment to another. For example, if a
Fund agreed to pay fixed rates in exchange for floating rates while holding fixed-rate bonds, the swap would tend to decrease
a Fund's exposure to long-term interest rates. Another example is if a Fund agreed to exchange payments in dollars for payments
in foreign currency, the swap agreement would tend to decrease a Fund's exposure to U.S. interest rates and increase its exposure
to foreign currency and interest rates.
Swap agreements are sophisticated hedging instruments that typically involve a small investment of cash relative to the magnitude
of risks assumed. As a result, swaps can be highly volatile and may have a considerable impact on a Fund's performance. Depending
on how they are used, swap agreements may increase or decrease the overall volatility of a Fund's investments and its share
price and yield. Additionally, whether a Fund's use of swap agreements will be successful in furthering its investment objective
will depend on the adviser's ability correctly to predict whether certain types of investments likely are to produce greater
returns than other investments. Because they are two party contracts and because they may have terms of greater than seven
days, swap agreements may be considered to be illiquid. Moreover, a Fund bears the risk of loss of the amount expected to
be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty. The most significant
factor in the performance of swap agreements is the change in the specific interest rate, currency, or other factor that determines
the amounts of payments due to and from a Fund. If a swap agreement calls for payments by a Fund, a Fund must be prepared
to make such payments when due. In addition, if the counterparty's creditworthiness declines, the value of a swap agreement
likely would decline, potentially resulting in losses for a Fund. A Fund will closely monitor the credit of a swap agreement
counterparty in order to attempt to minimize this risk. A Fund may also suffer losses if it is unable to terminate outstanding
swap agreements (either by assignment or other disposition) or reduce its exposure through offsetting transactions (i.e.,
by entering into an offsetting swap agreement with the same party or a similarly creditworthy party).
Credit Default Swap Agreements
. A Fund may enter into credit default swap agreements, which may have as reference obligations one or more securities or
a basket of securities that are or are not currently held by a Fund. The protection "buyer" in a credit default swap agreement
is generally obligated to pay the protection "seller" an upfront or a periodic stream of payments over the term of the contract
provided that no credit event, such as a default, on a reference obligation has occurred. If a credit event occurs, the seller
generally must pay the buyer the "par value" (full notional value) of the swap in exchange for an equal face amount of deliverable
obligations of the reference entity described in the swap, or the seller may be required to deliver the related net cash amount,
if the swap is cash settled. A Fund may be either the buyer or seller in the transaction. If a Fund is a buyer and no credit
event occurs, a Fund may recover nothing if the swap is held through its termination date. However, if a credit event occurs,
the buyer generally may elect to receive the full notional value of the swap in exchange for an equal face amount of deliverable
obligations of the reference entity whose value may have significantly decreased. As a seller, a Fund generally receives an
upfront payment or a fixed rate of income throughout the term of the swap provided that there is no credit event. As the seller,
a Fund would effectively add leverage to its portfolio because, in addition to its total net assets, a Fund would be subject
to investment exposure on the notional amount of the swap.
Credit default swap agreements may involve greater risks than if a Fund had invested in the reference obligation directly
since, in addition to risks relating to the reference obligation, credit default swaps are subject to illiquidity risk, counterparty
risk and credit risk. A Fund will enter into credit default swap agreements generally with counterparties that meet certain
standards of creditworthiness. A buyer generally also will lose its investment and recover nothing should no credit event
occur and the swap is held to its termination date. If a credit event were to occur, the value of any deliverable obligation
received by the seller, coupled with the upfront or periodic payments previously received, may be less than the full notional
value it pays to the buyer, resulting in a loss of value to the seller.
Equity Swaps
. A Fund may engage in equity swaps. Equity swaps allow the parties to the swap agreement to exchange components of return
on one equity investment (e.g., a basket of equity securities or an index) for a component of return on another non-equity
or equity investment, including an exchange of differential rates of return. Equity swaps may be used to invest in a market
without owning or taking physical custody of securities in circumstances where direct investment may be restricted for legal
reasons or is otherwise impractical. Equity swaps also may be used for other purposes, such as hedging or seeking to increase
total return.
The values of equity swaps can be very volatile. To the extent that the adviser does not accurately analyze and predict the
potential relative fluctuation on the components swapped with the other party, a Fund may suffer a loss. The value of some
components of an equity swap (such as the dividend on a common stock) may also be sensitive to changes in interest rates.
Furthermore, during the period a swap is outstanding, a Fund may suffer a loss if the counterparty defaults.
Total Return Swap Agreements
. Total return swap agreements are contracts in which one party agrees to make periodic payments to another party based on
the change in market value of the assets underlying the contract, which may include a specified security, basket of securities
or securities indices during the specified period, in return for periodic payments based on a fixed or variable interest rate
or the total return from other underlying assets. Total return swap agreements may be used to obtain exposure to a security
or market without owning or taking physical custody of such security or investing directly in such market. Total return swap
agreements may effectively add leverage to a Fund's portfolio because, in addition to its total net assets, a Fund would be
subject to investment exposure on the notional amount of the swap.
Total return swap agreements are subject to the risk that a counterparty will default on its payment obligations to a Fund
thereunder, and conversely, that a Fund will not be able to meet its obligation to the counterparty. Generally, a Fund will
enter into total return swaps on a net basis (i.e., the two payment streams are netted against one another with a Fund receiving
or paying, as the case may be, only the net amount of the two payments). The net amount of the excess, if any, of a Fund's
obligations over its entitlements with respect to each total return swap will be accrued on a daily basis, and an amount of
liquid assets having an aggregate net asset value at least equal to the accrued excess will be segregated by a Fund. If the
total return swap transaction is entered into on other than a net basis, the full amount of a Fund's obligations will be accrued
on a daily basis, and the full amount of a Fund's obligations will be segregated by a Fund in an amount equal to or greater
than the market value of the liabilities under the total return swap agreement or the amount it would have cost a Fund initially
to make an equivalent direct investment, plus or minus any amount a Fund is obligated to pay or is to receive under the total
return swap agreement.
Variance, Volatility and Correlation Swap Agreements
. Variance and volatility swaps are contracts that provide exposure to increases or decreases in the volatility of certain
referenced assets. Correlation swaps are contracts that provide exposure to increases or decreases in the correlation between
the prices of different assets or different market rates.
PERMITTED INVESTMENT ACTIVITIES AND CERTAIN ASSOCIATED RISKS
Set forth below are descriptions of permitted investment activities for the Funds and certain of their associated risks. The
activities are organized into various categories. To the extent that an activity overlaps two or more categories, the activity
is referenced only once in this section. The Funds described in this SAI are gateway blended Funds that invest in two or more
master portfolios. References to the activities of a gateway blended Fund are understood to refer to the investments of the
master portfolios in which the gateway blended Fund invests. The Funds are subject to the limitations as described in this
section and elsewhere in this SAI and/or the Prospectus(es). Not all of the Funds participate in all of the investment activities
described below. For purposes of monitoring the investment policies and restrictions of the Funds (with the exception of the
loans of portfolio securities policy described below), the amount of any securities lending collateral held by a Fund will
be excluded in calculating total assets. Unless otherwise noted or required by applicable law, the percentage limitations
and qualitative investment policies included in this SAI or the Prospectus apply at the time of purchase of a security. To
the extent a security type is described in this SAI that is not referenced in its Prospectus(es), a Fund under normal circumstances
will not invest more than 15% of its assets in the security type unless otherwise specified.
The Prospectus(es) identify and summarize the types of securities and assets in which the Funds may invest as part of their
principal investment strategies, and the principal risks associated with such investments. This SAI identifies and summarizes
other types of securities and assets in which the Funds may invest, each of which is subject to the same kinds of risks as
are described in the Prospectus(es). Certain additional risks associated with each type of investment are identified and described
below.
DEBT SECURITIES
Asset-Backed Securities
Asset-backed securities are securities that are secured or "backed" by pools of various types of assets on which cash payments
are due at fixed intervals over set periods of time. Asset-backed securities are created in a process called securitization.
In a securitization transaction, an originator of loans or an owner of accounts receivable of a certain type of asset class
sells such underlying assets in a "true sale" to a special purpose entity, so that there is no recourse to such originator
or owner. Payments of principal and interest on asset-backed securities typically are tied to payments made on the pool of
underlying assets in the related securitization. Such payments on the underlying assets are effectively "passed through" to
the asset-backed security holders on a monthly or other regular, periodic basis. The level of seniority of a particular asset-backed
security will determine the priority in which the holder of such asset-backed security is paid, relative to other security
holders and parties in such securitization. Examples of underlying assets include consumer loans or receivables, home equity
loans, automobile loans or leases, and timeshares, although other types of receivables or assets also may be used as underlying
assets.
While asset-backed securities typically have a fixed, stated maturity date, low prevailing interest rates may lead to an increase
in the prepayments made on the underlying assets. This may cause the outstanding balances due on the underlying assets to
be paid down more rapidly. As a result, a decrease in the originally anticipated interest from such underlying securities
may occur, causing the asset-backed securities to pay-down in whole or in part prior to their original stated maturity date.
Prepayment proceeds would then have to be reinvested at the lower prevailing interest rates. Conversely, prepayments on the
underlying assets may be less than anticipated, causing an extension in the duration of the asset-backed securities.
Delinquencies or losses that exceed the anticipated amounts for a given securitization could adversely impact the payments
made on the related asset-backed securities. This is a reason why, as part of a securitization, asset-backed securities are
often accompanied by some form of credit enhancement, such as a guaranty, insurance policy, or subordination. Credit protection
in the form of derivative contracts may also be purchased. In certain securitization transactions, insurance, credit protection,
or both may be purchased with respect to only the most senior classes of asset-backed securities, on the underlying collateral
pool, or both. The extent and type of credit enhancement varies across securitization transactions.
In addition to the normal risks associated with debt securities discussed elsewhere in this SAI and the Prospectus(es), asset-backed
securities carry additional risks including, but not limited to, the possibility that (i) the pace of payments on underlying
assets may be faster or slower than anticipated or payments may be in default; (ii) the creditworthiness of the credit support
provider may deteriorate; and (iii) such securities may become less liquid or harder to value as a result of market conditions
or other circumstances.
Bank Obligations
Bank obligations include certificates of deposit, time deposits, bankers' acceptances and other short-term obligations of
domestic banks, foreign subsidiaries of domestic banks, foreign branches of domestic banks, domestic and foreign branches
of foreign banks, domestic savings and loan associations and other banking institutions. With respect to such obligations
issued by foreign branches of domestic banks, foreign subsidiaries of domestic banks, and domestic and foreign branches of
foreign banks, a Fund may be subject to additional investment risks that are different in some respects from those incurred
by a Fund that invests only in debt obligations of domestic issuers. Such risks include possible future political, regulatory
or economic developments, the possible imposition of foreign withholding and other taxes (at potentially confiscatory levels)
on amounts realized on such obligations, the possible establishment of exchange controls or the adoption of other foreign
governmental restrictions that might adversely affect the payment of principal and interest on these obligations and the possible
seizure or nationalization of foreign deposits. In addition, foreign branches of U.S. banks and foreign banks may be subject
to less stringent reserve requirements and to different regulatory, accounting, auditing, reporting and recordkeeping standards
than those applicable to domestic branches of U.S. banks.
Certificates of deposit are negotiable certificates evidencing the obligation of a bank to repay funds deposited with it for
a specified period of time.
Time deposits are non-negotiable deposits maintained in a banking institution for a specified period of time at a stated interest
rate. Time deposits that may be held by a Fund will not benefit from insurance from the Bank Insurance Fund or the Savings
Association Insurance Fund administered by the Federal Deposit Insurance Corporation ("FDIC"). Bankers' acceptances are credit
instruments evidencing the obligation of a bank to pay a draft drawn on it by a customer. These instruments reflect the obligation
both of the bank and of the drawer to pay the face amount of the instrument upon maturity. The other short-term obligations
may include uninsured, direct obligations, bearing fixed, floating or variable interest rates.
Bonds
A bond is an interest-bearing security issued by a company or governmental unit. The issuer of a bond has a contractual
obligation to pay interest at a stated rate on specific dates and to repay principal (the bond's face value) periodically
or on a specified maturity date. An issuer may have the right to redeem or "call" a bond before maturity, in which case the
investor may have to reinvest the proceeds at lower market rates. The value of fixed-rate bonds will tend to fall when interest
rates rise and rise when interest rates fall. The value of "floating-rate" or "variable-rate" bonds, on the other hand, fluctuate
much less in response to market interest-rate movements than the value of fixed-rate bonds.
Bonds may be senior or subordinated obligations. Senior obligations generally have the first claim on a corporation's earnings
and assets and, in the event of liquidation, are paid before subordinated debt. Bonds may be unsecured (backed only by the
issuer's general creditworthiness) or secured (also backed by specified collateral).
Commercial Paper
Commercial paper (including variable amount master demand notes, see "Floating and Variable Rate Obligations" below), refers
to short-term, unsecured promissory notes issued by corporations to finance short-term credit needs. Commercial paper is usually
sold on a discount basis and typically has a maturity at the time of issuance not exceeding nine months. Variable amount master
demand notes are demand obligations which permit the investment of fluctuating amounts at varying market rates of interest
pursuant to arrangements between the issuer and a commercial bank acting as agent for the payee of such notes whereby both
parties have the right to vary the amount of the outstanding indebtedness on the notes.
Asset-Backed Commercial Paper
. Securities that are issued from commercial paper conduits are called asset-backed commercial paper securities. Credit support
for such securities falls into two categories: liquidity protection and protection against ultimate default under the underlying
assets. Liquidity protection refers to the provision of advances, generally by the entity administering the pool of assets,
to ensure that scheduled payments on the securities or underlying pool are made in a timely fashion. Protection against ultimate
default ensures payment on at least a portion of the assets in the pool. This protection may be provided through guarantees,
insurance policies or letters of credit obtained from third parties, through various means of structuring the transaction,
such as by issuing senior and subordinated instruments or through a combination of these approaches. The degree of credit
support provided on each issue is based generally on historical information relating to the level of credit risk associated
with the payments. Delinquency or loss that exceeds the anticipated amount or a downgrade or loss of credit support could
adversely impact the value of or return on an investment in an asset-backed commercial paper security.
Commercial paper is also subject to the risks generally associated with debt securities discussed elsewhere in this SAI and
the Prospectus(es).
Convertible Securities
A convertible security is generally a debt obligation or preferred stock that may be converted within a specified period of
time into a certain amount of common stock of the same or a different issuer. A convertible security provides a fixed-income
stream and the opportunity, through its conversion feature, to participate in the capital appreciation resulting from a market
price advance in its underlying common stock. As with a straight fixed-income security, a convertible security tends to increase
in market value when interest rates decline and decrease in value when interest rates rise. Like a common stock, the value
of a convertible security also tends to increase as the market value of the underlying stock rises, and it tends to decrease
as the market value of the underlying stock declines. Because its value can be influenced by both interest-rate and market
movements, a convertible security tends not to be as sensitive to interest rates as a similar fixed-income security, and tends
not to be as sensitive to changes in share price as its underlying stock.
Investing in convertible securities is subject to certain risks in addition to those generally associated with debt securities
discussed elsewhere in this SAI and the Prospectus(es). Certain convertible securities, particularly securities that are convertible
into securities of an issuer other than the issuer of the convertible security, may be or become illiquid and, therefore,
may be more difficult to resell in a timely fashion or for a fair price, which could result in investment losses.
The creditworthiness of the issuer of a convertible security is important because the holder of a convertible security will
have recourse only to the issuer. In addition, a convertible security may be subject to conversion or redemption by the issuer,
but only after a specified date and under circumstances established at the time the security is issued. This feature may require
a holder to convert the security into the underlying common stock, even if the value of the underlying common stock has declined
substantially. In addition, companies that issue convertible securities frequently are small- and mid-capitalization companies
and, accordingly, carry the risks associated with investments in such companies.
While the Funds use the same criteria to evaluate the credit quality of a convertible debt security that they would use for
a more conventional debt security, a convertible preferred stock is treated like a preferred stock for a Fund's credit evaluation,
as well as financial reporting and investment limitation purposes. Preferred stock is subordinated to all debt obligations
in the event of insolvency, and an issuer's failure to make a dividend payment is generally not an event of default entitling
the preferred shareholders to take action. Preferred stock generally has no maturity date, so its market value is dependent
on the issuer's business prospects for an indefinite period of time. In addition, distributions on preferred stock generally
are taxable as dividend income, rather than interest payments, for federal income tax purposes.
Corporate Debt Securities
Certain of the debt instruments purchased by the Funds may be interest-bearing securities issued by a company, called corporate
debt securities. The issuer of a corporate debt security has a contractual obligation to pay interest at a stated rate on
specific dates and to repay principal periodically or on a specified maturity date. An issuer may have the right to redeem
or "call" a corporate debt security before maturity, in which case the investor may have to reinvest the proceeds at lower
market rates. The value of fixed-rate corporate debt securities will tend to fall when interest rates rise and rise when interest
rates fall. The value of "floating-rate" or "variable-rate" corporate debt securities, on the other hand, fluctuate much less
in response to market interest rate movements than the value of fixed-rate securities. Corporate debt securities may be senior
or subordinated obligations. Senior obligations generally have the first claim on a corporation's earnings and assets and,
in the event of liquidation, are paid before subordinated debt. Corporate debt securities may be unsecured (backed only by
the issuer's general creditworthiness) or secured (also backed by specified collateral).
Investors should be aware that even though interest-bearing securities are investments which promise a stable stream of income,
the prices of such securities are inversely affected by changes in interest rates and, therefore, are subject to the risk
of market price fluctuations. Long-term securities are affected to a greater extent by interest rates than shorter-term securities.
The values of fixed-income corporate debt securities also may be affected by changes in the credit rating or financial condition
of the issuing entities. Once the rating of a portfolio security has been changed to a rating below investment-grade, the
particular Fund considers all circumstances deemed relevant in determining whether to continue to hold the security. Certain
corporate debt securities that may be purchased by the Fund, such as those rated "Baa" by Moody's Investors Service, Inc.
("Moody's") and "BBB" by Standard & Poor's Rating Group ("S&P") may be subject to such risk with respect to the issuing entity
and to greater market fluctuations than certain lower yielding, higher-rated fixed-income securities. Corporate debt securities
which are rated "Baa" by Moody's are considered medium grade obligations; they are neither highly protected nor poorly secured,
and are considered by Moody's to have speculative characteristics. Securities rated "BBB" by S&P are regarded as having adequate
capacity to pay interest and repay principal, and, while such debt securities ordinarily exhibit adequate protection parameters,
adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity to pay interest and repay
principal for securities in this category than in higher-rated categories. If a security held by a Fund is downgraded to
a rating below investment-grade, such Fund may continue to hold the security until such time as the adviser determines it
to be advantageous for the Fund to sell the security. The ratings of S&P, Fitch and Moody's are more fully described in the
Appendix.
Custodial Receipts for Treasury Securities
These securities are typically represented by participations in trusts that hold U.S. Treasury securities, such as Treasury
Investors Growth Receipts and Certificates of Accrual on Treasury Securities, or other obligations where the trust participations
evidence ownership in either the future interest payments or the future principal payments on the obligations. These participations
are normally issued at a discount to their "face value," and can exhibit greater price volatility than ordinary debt securities
because of the way in which their principal and interest are returned to investors.
Dollar Roll Transactions
Dollar roll transactions are transactions wherein a Fund sells fixed-income securities, typically mortgage-backed securities,and
makes a commitment to purchase similar, but not identical, securities at a later date from the same party. Like a forward
commitment, during the roll period no payment is made for the securities purchased and no interest or principal payments on
the security accrue to the purchaser, but the Fund assumes the risk of ownership. A Fund is compensated for entering into
dollar roll transactions by the difference between the current sales price and the forward price for the future purchase,
as well as by the interest earned on the cash proceeds of the initial sale. Like other when-issued securities or firm commitment
agreements, dollar roll transactions involve the risk that the market value of the securities sold by a Fund may decline below
the price at which the Fund is committed to purchase similar securities. In the event the buyer of securities from a Fund
under a dollar roll transaction becomes insolvent, the Fund's use of the proceeds of the transaction may be restricted pending
a determination by the other party, or its trustee or receiver, whether to enforce the Fund's obligation to repurchase the
securities. A Fund will engage in dollar roll transactions for the purpose of acquiring securities for its portfolio and not
for investment leverage.
Fixed-Income Securities
A fixed-income security is an interest-bearing security issued by a company or governmental unit. The issuer of a fixed-income
security has a contractual obligation to pay interest at a stated rate on specific dates and to repay principal (the fixed-income
security's face value) periodically or on a specified maturity date. An issuer may have the right to redeem or "call" a fixed-income
security before maturity, in which case the investor may have to reinvest the proceeds at lower market rates. The value of
fixed-rate fixed-income securities will tend to fall when interest rates rise and rise when interest rates fall. The value
of "floating-rate" or "variable-rate" fixed-income securities, on the other hand, fluctuate much less in response to market
interest-rate movements than the value of fixed-rate fixed-income securities. Fixed-income securities may be senior or subordinated
obligations. Senior obligations generally have the first claim on a corporation's earnings and assets and, in the event of
liquidation, are paid before subordinated debt. Fixed-income securities may be unsecured (backed only by the issuer's general
creditworthiness) or secured (also backed by specified collateral).
Fixed-Income securities are interest-bearing investments which promise a stable stream of income; however, the prices of such
securities are inversely affected by changes in interest rates and, therefore, are subject to the risk of market price fluctuations.
Longer-term securities are affected to a greater extent by interest rates than shorter-term securities. The values of fixed-income
securities also may be affected by changes in the credit rating or financial condition of the issuing entities. Certain securities
that may be purchased by the Fund, such as those rated "Baa" or lower by Moody's Investors Service, Inc. ("Moody's") and "BBB"
or lower by Standard & Poor's Rating Group ("S&P") and Fitch Investors Service, Inc. ("Fitch") tend to be subject to greater
issuer credit, risk to greater market fluctuations and pricing uncertainty, and to less liquidity than lower yielding, higher-rated
fixed-income securities. If a security held by a Fund is downgraded, such Fund may continue to hold the security until such
time as the adviser determines it to be advantageous for the Fund to sell the security. The ratings of Fitch, Moody's and
S&P are more fully described in Appendix A. Investing in fixed-income securities is subject to certain risks including, among
others, credit and interest rate risk, as more fully described in the Prospectus(es).
Floating- and Variable-Rate Obligations
Floating- and variable-rate obligations include obligations such as demand notes and bonds. Variable-rate demand notes include
master demand notes that are obligations that permit a Fund to invest fluctuating amounts, which may change daily without
penalty, pursuant to direct arrangements between the Fund, as lender, and the borrower. The interest rate on a floating-rate
demand obligation is based on a referenced lending rate, such as a bank's prime rate, and is adjusted automatically each time
such rate is adjusted. The interest rate on a variable-rate demand obligation is adjusted automatically at specified intervals.
The issuer of such obligations ordinarily has a right, after a given period, to prepay at its discretion the outstanding principal
amount of the obligations plus accrued interest upon a specified number of days notice to the holders of such obligations.
Frequently, such obligations are secured by letters of credit or other credit support arrangements provided by banks. Such
features often include unconditional and irrevocable letters of credit that are issued by a third party, usually a bank, savings
and loan association or insurance company which assumes the obligation for payment of principal and interest in the event
of default by the issuer. Letters of credit are designed to enhance liquidity and ensure repayment of principal and any accrued
interest if the underlying variable-rate demand obligation should default. Some variable rate obligations feature other credit
enhancements, such as standby bond purchase agreements ("SBPAs"). An SBPA can feature a liquidity facility that is designed
to provide funding for the purchase price of variable rate obligations that are unable to be successfully remarketed for resale.
The liquidity facility provider is obligated solely to advance funds for the purchase of tendered variable rate bonds that
fail to be remarketed and does not guarantee the repayment of principal or interest. The liquidity facility provider's obligations
under the SBPA are subject to conditions, including the continued creditworthiness of the underlying borrower or issuer, and
the facility may terminate upon the occurrence of certain events of default or at the expiration of its term. In addition,
a liquidity facility provider may be unable or unwilling to perform its obligations. A Fund may be unable to timely dispose
of a variable rate obligation if the underlying issuer defaults and the letter of credit or liquidity facility provider is
unable or unwilling to perform its obligations or the facility otherwise terminates and a successor letter of credit or liquidity
provider is not immediately obtained. The potential adverse impact to a Fund resulting from the inability of a letter of credit
or liquidity facility provider to meet its obligations could be magnified to the extent the provider also furnishes credit
support for other variable-rate obligations held by the Fund.
There generally is no established secondary market for certain varialbe-rate obligations, such as those not supported by letters
of credit, SBPAs or other credit support arrangements, because they are direct lending arrangements between the lender and
borrower. Accordingly, where these obligations are not secured by letters of credit, SBPAs or other credit support arrangements,
a Fund is dependent on the ability of the borrower to pay principal and interest on demand. Such obligations frequently are
not rated by credit rating agencies and a Fund may invest in obligations which are not so rated only if the adviser determines
that at the time of investment the obligations are of comparable quality to the other obligations in which such Fund may invest.
The adviser, on behalf of a Fund, monitors the creditworthiness of the issuers of the floating- and variable-rate demand obligations
in such Fund's portfolio. Floating- and variable-rate instruments are subject to interest-rate and credit risks and other
risks generally associated with debt securities. The floating- and variable-rate instruments that the Funds may purchase include
certificates of participation in such instruments.
High Yield Securities
Each Fund may invest in high-yield securities. High yield securities (also known as "junk bonds") are debt securities that
are rated below investment-grade, are unrated and deemed by the adviser to be below investment-grade, or in default at the
time of purchase. These securities have a much greater risk of default (or in the case of bonds currently in default, of not
returning principal) and tend to be more volatile than higher-rated securities of similar maturity. The value of these debt
securities can be affected by overall economic conditions, interest rates, and the creditworthiness of the individual issuers.
These securities tend to be less liquid and more difficult to value than higher-rated securities.
The market values of certain high yield and comparable unrated securities tend to be more sensitive to individual corporate
developments and changes in economic conditions than investment-grade securities. In addition, issuers of high yield and comparable
unrated securities often are highly leveraged and may not have more traditional methods of financing available to them. Their
ability to service their debt obligations, especially during an economic downturn or during sustained periods of high interest
rates, may be impaired.
The risk of loss due to default by such issuers is significantly greater because high yield and comparable unrated securities
generally are unsecured and frequently are subordinated to senior indebtedness. A Fund may incur additional expenses to the
extent that it is required to seek recovery upon a default in the payment of principal or interest on its portfolio holdings.
The existence of limited markets for high yield and comparable unrated securities may diminish the Fund's ability to: (i)
obtain accurate market quotations for purposes of valuing such securities and calculating its net asset value; and (ii) sell
the securities either to meet redemption requests or to respond to changes in the economy or in financial markets.
Letters of Credit
Certain of the debt obligations (including certificates of participation, commercial paper and other short-term obligations)
which a Fund may purchase may be backed by an unconditional and irrevocable letter of credit of a bank, savings and loan association
or insurance company which assumes the obligation for payment of principal and interest in the event of default by the issuer.
Only banks, savings banks and insurance companies which, in the opinion of the adviser, are of comparable quality to issuers
of other permitted investments of the Fund, may be used for letter of credit-backed investments.
Loan Participations
A loan participation gives a Fund an undivided proportionate interest in a loan or instrument originated by a bank or other
institution. Loan participations may carry a demand feature permitting the holder to tender the interests back to the bank
or other institution. Loan participations, however, typically do not provide the Fund with any right to enforce compliance
by the borrower, nor any rights of set-off against the borrower, and the Fund may not directly benefit from any collateral
supporting the loan in which it purchased a loan participation. As a result, the Fund assumes the credit risk of both the
borrower and the lender that is selling the loan participation.
Money Market Instruments
Investments in the following types of high-quality money market instruments are permitted: (i) U.S. Government obligations;
(ii) negotiable certificates of deposit, bankers' acceptances and fixed time deposits and other obligations of domestic banks
(including foreign branches) that have more than $1 billion in total assets at the time of investment and are members of the
Federal Reserve System or are examined by the Comptroller of the Currency or whose deposits are insured by the FDIC; (iii)
commercial paper; and (iv) repurchase agreements. A Fund also may invest in short-term U.S. dollar-denominated obligations
of foreign banks (including U.S. branches) that at the time of investment: (i) have more than $10 billion, or the equivalent
in other currencies, in total assets; and (ii) in the opinion of the adviser, are of comparable quality to obligations of
U.S. banks which may be purchased by the Funds.
Mortgage-Related Securities
Mortgage-Backed Securities
. Mortgage-backed securities, also called mortgage pass-through securities, are issued in securitizations (see "Asset-Backed
Securities" section) and represent interests in "pools" of underlying residential mortgage loans that serve as collateral
for such securities. Similar to asset-backed securities, the monthly payments made by the individual borrowers on the underlying
residential mortgage loans are effectively "passed through" to the mortgage-backed securities (net of administrative and other
fees paid to various parties) as monthly principal and interest payments.
The stated maturities of mortgage-backed securities may be shortened by unscheduled prepayments of principal on the underlying
mortgage loans, and the expected maturities may be extended in rising interest-rate environments. Therefore, it is not possible
to predict accurately the maturity of a particular mortgage-backed security. Variations in the maturities of mortgage-backed
securities will affect the yield of each such security and the portfolio as a whole. Rates of prepayment of principal on the
underlying mortgage loans in mortgage-backed securitizations that are faster than expected may expose the mortgage-backed
securities issued in such securitizations to a lower rate of return and require reinvestment of proceeds at lower prevailing
interest rates. Also, if a mortgage-backed security has been purchased at a premium, but is backed by underlying mortgage
loans that are subject to prepayment, if prepayments are made on such underlying collateral, then the value of the premium
effectively would be lost or reduced.
Like other fixed-income securities, when interest rates rise, the value of mortgage-backed securities generally will decline
and may decline more than other fixed-income securities as the expected maturity extends. Conversely, when interest rates
decline, the value of mortgage-backed securities having underlying collateral with prepayment features may not increase as
quickly as other fixed-income securities as the expected maturity shortens. Payment of principal and interest on some mortgage-backed
securities issued or guaranteed by a government agency (but not the market value of the securities themselves) is guaranteed
by a government association, such as the Government National Mortgage Association ("GNMA" or "Ginnie Mae"), or by a government-sponsored
entity, such as the Federal Home Loan Mortgage Corporation ("FHLMC" or "Freddie Mac") or Federal National Mortgage Association
("FNMA" or "Fannie Mae"). Unlike FHLMC and FNMA, which act as both issuers and guarantors of mortgage-backed securities, GNMA
only provides guarantees of mortgage-backed securities. Only GNMA guarantees are backed by the full faith and credit of the
U.S. Government. Mortgage-backed securities issued or guaranteed by FHLMC or FNMA are not backed by the full faith and credit
of the U.S. Government. FHLMC and FNMA are authorized to borrow money from the U.S. Treasury or the capital markets, but there
can be no assurance that they will be able to raise funds as needed or that their existing capital will be sufficient to satisfy
their guarantee obligations. Mortgage-backed securities created by private issuers (such as commercial banks, savings and
loan institutions, private mortgage insurance companies, mortgage bankers and other secondary market issuers) may be supported
by various forms of insurance or guarantees, including individual loan, title, pool and hazard insurance. Collateralized mortgage
obligations, commercial mortgage-backed securities, adjustable rate mortgage securities and mortgage participation certificates
are the primary types of mortgage-backed securities utilized by the Fund.
Collateralized Mortgage Obligations ("CMOs")
. CMOs are debt obligations that may be collateralized by whole mortgage loans but are more typically collateralized by portfolios
of mortgage pass-through securities guaranteed by GNMA, FHLMC, or FNMA. Each CMO is structured so that multiple classes of
securities are issued from such CMO, with each class bearing a different stated maturity. Payments of principal on the underlying
securities, including prepayments, are first "passed through" to investors holding the class of securities with the shortest
maturity; investors holding classes of securities with longer maturities receive payments on their securities only after the
more senior classes have been retired. A longer duration or greater sensitivity to interest rate fluctuations generally increases
the risk level of the CMO.
Commercial Mortgage-Backed Securities ("CMBS")
. CMBS are securities that are secured by mortgage loans on commercial real property. Many of the risks of investing in CMBS
reflect the risks of investing in the real estate securing the underlying mortgage loans, such as office buildings, hotels,
and shopping malls. These risks include the effects of local and other economic conditions on real estate markets, the ability
of tenants to make loan payments, and the ability of a commercial property to attract and retain tenants. While CMBS are sold
both in public transactions registered with the SEC and in private placement transactions, CMBS may be less liquid and exhibit
greater price volatility than other types of mortgage-backed or asset-backed securities.
Adjustable Rate Mortgage Securities ("ARMS")
. ARMS are securities that are secured by mortgage loans with adjustable interest rates and may be issued or guaranteed by
a government agency such as GNMA, by government-sponsored entities such as FNMA or FHLMC, or by a private issuer. The mortgage
loans underlying ARMS guaranteed by GNMA are typically federally insured by the Federal Housing Administration ("FHA") or
guaranteed by the Department of Veterans Affairs ("VA"), whereas the mortgage loans underlying ARMS issued by FNMA or FHLMC
are typically conventional residential mortgages which are not so insured or guaranteed, but which conform to specific underwriting,
size and maturity standards.
ARMS are also offered by private issuers. These securities generally offer a higher rate of return in the form of interest
payments, but because they offer no direct or indirect governmental guarantees, they also involve greater credit and interest
rate risk. However, many private issuers or servicers of ARMS guarantee or provide private insurance for timely payment of
interest and principal. In addition, the Funds may purchase some mortgage-related securities through private placements that
are restricted as to further sale. The value of these securities may fluctuate more than that of other mortgage-related securities.
Mortgage Participation Certificates ("PCs")
. Mortgage PCs and guaranteed mortgage certificates ("GMCs") are both issued by the FHLMC. PCs resemble GNMA certificates
in that each PC represents a pro rata share of all interest and principal payments made and owed on an underlying pool of
mortgages. GMCs also represent a pro rata interest in a pool of mortgages, but pay interest semi-annually and return principal
once a year in guaranteed minimum payments. PCs and GMCs differ from bonds in that principal is paid back by the borrower
over the length of the loan rather than returned in a lump sum at maturity.
Other Mortgage-Backed Securities
. As new types of mortgage-backed securities are developed and offered to investors, the adviser will, consistent with each
Fund's investment objective, policies, restrictions and quality standards, consider making investments in such new types of
mortgage-backed securities.
Credit Risk
. Credit risk reflects the risk that a holder of mortgage-backed securities may not receive all or part of its principal because
the issuer, or any credit enhancer and/or the underlying mortgage borrowers have defaulted on their obligations. Credit risk
is increased for mortgage-backed securities that are subordinated to another security (i.e., if the holder of a mortgage-backed
security is entitled to receive payments only after payment obligations to holders of the other security are satisfied). The
more deeply subordinated the security, the greater the credit risk associated with the security will be. Mortgage-backed securities
issued by private issuers, whether or not such obligations are subject to guarantees by the private issuer, typically entail
greater credit risk than mortgage-backed securities guaranteed by a government association or government-sponsored enterprise.
The performance of mortgage-backed securities issued by private issuers generally depends on the financial health of those
institutions and the performance of the mortgage pool backing such securities. An unexpectedly high rate of defaults on mortgages
held by a mortgage pool may limit substantially the pool's ability to make payments of principal or interest to the holder
of such mortgage-backed securities, particularly if such securities are subordinated, thereby reducing the value of such securities
and in some cases rendering them worthless. The risk of such defaults is generally higher in the case of mortgage pools that
include so-called "subprime" mortgages.
Interest Rate Risk
. The interest rates on mortgage loans underlying ARMS generally are readjusted at periodic intervals ranging from one year
or less to several years in response to changes in a predetermined, commonly recognized interest rate index. The adjustable
rate feature should reduce, but will not eliminate, price fluctuations in such securities resulting from actual or anticipated
fluctuations in market interest rates. The value of each Fund's ARMS may fluctuate to the extent interest rates on underlying
mortgages differ from prevailing market interest rates during periods between interest rate reset dates. Accordingly, investors
could experience some loss if they redeem their shares of the Funds or if the Funds sell these portfolio securities before
the interest rates on the underlying mortgages are adjusted to reflect prevailing market interest rates. The interest rates
on mortgages underlying other types of mortgage-backed securities generally do not reset at periodic intervals. Accordingly,
non-ARMS have greater exposure to interest rate risk than ARMS.
Municipal Bonds
Municipal bonds are debt obligations issued to obtain funds for various public purposes. The two principal classifications
of municipal bonds are "general obligation" and "revenue" bonds. General obligation bonds are supported by the municipality's
general taxing authority, while revenue bonds are supported by the revenues from one or more particular project or activity.
Industrial development bonds are a specific type of revenue bond backed by the credit and security of a private user. Certain
types of industrial development bonds are issued by or on behalf of public authorities to obtain funds to finance privately
operated facilities.
Certain of the municipal obligations held by the Fund may be insured as to the timely payment of principal and interest. The
insurance policies usually are obtained by the issuer of the municipal obligation at the time of its original issuance. In
the event that the issuer defaults on interest or principal payment, the insurer will be notified and will be required to
make payment to the bondholders. Although the insurance feature is designed to reduce certain financial risks, the premiums
for insurance and the higher market price sometimes paid for insured obligations may reduce a Fund's current yield. To the
extent that securities held by a Fund are insured as to principal and interest payments by insurers whose claims- paying ability
rating is downgraded by Moody's, S&P or Fitch, the value of such securities may be affected. There is, however, no guarantee
that the insurer will meet its obligations. Moreover, the insurance does not guarantee the market value of the insured obligation
or the net asset value of the Fund's shares. In addition, such insurance does not protect against market fluctuations caused
by changes in interest rates and other factors. A Fund also may purchase municipal obligations that are additionally secured
by bank credit agreements or escrow accounts. The credit quality of companies which provide such credit enhancements will
affect the value of those securities.
From time to time, proposals have been introduced before Congress for the purpose of restricting or eliminating the federal
income tax exemption for interest on municipal obligations. For example, under federal tax legislation enacted in 1986, interest
on certain private activity bonds must be included in a shareholder's federal alternative minimum taxable income. Moreover,
a Fund cannot predict what legislation, if any, may be proposed in the state legislature regarding the state income tax status
of interest on such obligations, or which proposals, if any, might be enacted. Such proposals, while pending or if enacted,
might materially and adversely affect the availability of municipal obligations generally for investment by the Fund and the
liquidity and value of the Fund's portfolio. In such an event, the Fund would re-evaluate its investment objective and policies
and consider possible changes in its structure or possible dissolution.
A Fund invests in municipal securities in reliance at the time of purchase on an opinion of bond counsel to the issuer that
the interest paid on those securities will be excludable from gross income for federal income tax purposes. Such opinion may
have been issued as of a date prior to the date that the Fund acquires the municipal security. Subsequent to a Fund's acquisition
of such a municipal security, however, the security may be determined to pay, or to have paid, taxable income. As a result,
the treatment of dividends previously paid or to be paid by a Fund as "exempt-interest dividends" could be adversely affected,
subjecting the Fund's shareholders to increased federal income tax liabilities. Under highly unusual circumstances, the Internal
Revenue Service may determine that a municipal bond issued as tax-exempt should in fact be taxable. If any Fund held such
a bond, it might have to distribute taxable income or reclassify as taxable, ordinary income that was previously distributed
as exempt-interest dividends.
Taxable Municipal Obligations
. There is another type of municipal obligation that is subject to federal income tax for a variety of reasons. These municipal
obligations do not qualify for the federal income exemption because (a) they did not receive necessary authorization for tax-exempt
treatment from state or local government authorities, (b) they exceed certain regulatory limitations on the cost of issuance
for tax-exempt financing or (c) they finance public or private activities that do not qualify for the federal income tax exemption.
These non-qualifying activities might include, for example, certain types of multi-family housing, certain professional and
local sports facilities, refinancing of certain municipal debt, and borrowing to replenish a municipality's underfunded pension
plan.
Municipal Notes
Municipal notes include, but are not limited to, tax anticipation notes ("TANs"), bond anticipation notes ("BANs"), revenue
anticipation notes ("RANs"), tax and revenue anticipation notes ("TRANs") and construction loan notes. Notes sold as interim
financing in anticipation of collection of taxes, a bond sale or receipt of other revenues are usually general obligations
of the issuer.
TANs
. An uncertainty in a municipal issuer's capacity to raise taxes as a result of such events as a decline in its tax base or
a rise in delinquencies could adversely affect the issuer's ability to meet its obligations on outstanding TANs. Furthermore,
some municipal issuers mix various tax proceeds into a general fund that is used to meet obligations other than those of the
outstanding TANs. Use of such a general fund to meet various obligations could affect the likelihood of making payments on
TANs.
BANs
. The ability of a municipal issuer to meet its obligations on its BANs is primarily dependent on the issuer's adequate access
to the longer term municipal bond market and the likelihood that the proceeds of such bond sales will be used to pay the principal
of, and interest on, BANs.
RANs
. A decline in the receipt of certain revenues, such as anticipated revenues from another level of government, could adversely
affect an issuer's ability to meet its obligations on outstanding RANs. In addition, the possibility that the revenues would,
when received, be used to meet other obligations could affect the ability of the issuer to pay the principal of, and interest
on, RANs.
RAWs
. Revenue anticipation warrants, or reimbursement warrants, are issued to meet the cash flow needs of state governments at
the end of a fiscal year and in the early weeks of the following fiscal year. These warrants are payable from unapplied money
in a state's general fund, including the proceeds of RANs issued following enactment of a state budget or the proceeds of
refunding warrants issued by the state, and are typically subordinated in right of payment to RANs.
TRANs
. TRANs are notes issued in anticipation of receiving future tax receipts and revenues at a future date. The risks associated
with TRANs include those associated with TANs and RANs.
The values of outstanding municipal securities will vary as a result of changing market evaluations of the ability of their
issuers to meet the interest and principal payments (i.e., credit risk). Such values also will change in response to changes
in the interest rates payable on new issues of municipal securities (i.e., market risk).
Pass-Through Obligations
The Funds may invest in pass-through obligations that are supported by the full faith and credit of the U.S. Government (such
as those issued by the GNMA) or those that are guaranteed by an agency or instrumentality of the U.S. Government or government-sponsored
enterprise (such as FNMA or FHLMC) or bonds collateralized by any of the foregoing.
Synthetic Convertible Securities
"Synthetic" convertible securities, are derivative positions composed of two or more different securities whose investment
characteristics, taken together, resemble those of convertible securities. For example, a Fund may purchase a non-convertible
debt security and a warrant or option, which enables a Fund to have a convertible-like position with respect to a company,
group of companies or stock index. Synthetic convertible securities are typically offered by financial institutions and investment
banks in private placement transactions. Upon conversion, a Fund generally receives an amount in cash equal to the difference
between the conversion price and the then current value of the underlying security. Unlike a true convertible security, a
synthetic convertible comprises two or more separate securities, each with its own market value. Therefore, the market value
of a synthetic convertible is the sum of the values of its fixed-income component and its convertible component. For this
reason, the values of a synthetic convertible and a true convertible security may respond differently to market fluctuations.
A Fund only invests in synthetic convertibles with respect to companies whose corporate debt securities are rated "A" or higher
by Moody's or S&P and will not invest more than 15% of its net assets in such synthetic securities and other illiquid securities.
Unrated Investments
A Fund may purchase instruments that are not rated if, in the opinion of the adviser, such obligations are of investment quality
comparable to other rated investments that are permitted to be purchased by such Fund. After purchase by a Fund, a security
may cease to be rated or its rating may be reduced below the minimum required for purchase by such Funds. Neither event will
require a sale of such security by the Fund. To the extent the ratings given by Moody's, Fitch, or S&P may change as a result
of changes in such organizations or their rating systems, a Fund will attempt to use comparable ratings as standards for investments
in accordance with the investment policies contained in its Prospectus and in this SAI. The ratings of Moody's, Fitch, and
S&P are more fully described in the Appendix to this SAI.
U.S. Government Obligations
U.S. Government obligations include securities issued by the U.S. Treasury, U.S. Government agencies or U.S. Government sponsored
entities. While U.S. Treasury obligations are backed by the "full faith and credit" of the U.S. Government, securities issued
by U.S. Government agencies or government-sponsored entities may not be backed by the full faith and credit of the U.S. Government.
The Government National Mortgage Association ("GNMA"), a wholly owned U.S. Government corporation, is authorized to guarantee,
with the full faith and credit of the U.S. Government, the timely payment of principal and interest on securities issued by
institutions approved by GNMA and backed by pools of mortgages insured by the Federal Housing Administration or the Department
of Veterans Affairs. Government-sponsored entities (whose obligations are not backed by the full faith and credit of the U.S.
Government) include the Federal National Mortgage Association ("FNMA") and the Federal Home Loan Mortgage Corporation ("FHLMC").
Pass-through securities issued by FNMA are guaranteed as to timely payment of principal and interest by FNMA but are not backed
by the full faith and credit of the U.S. Government. FHLMC guarantees the timely payment of interest and ultimate collection
or scheduled payment of principal, but its participation certificates are not backed by the full faith and credit of the U.S.
Government. If a government-sponsored entity is negatively impacted by legislative or regulatory action, is unable to meet
its obligations, or its creditworthiness declines, the performance of a Fund that holds securities of the entity will be adversely
impacted. U.S. Government obligations are subject to low but varying degrees of credit risk, and are still subject to interest
rate and market risk. U.S. Government obligations may be adversely affected by a default by, or decline in the credit quality
of, the U.S. Government.
Recent Regulatory Events Related to FNMA and FHLMC
On September 7, 2008, both FNMA and FHLMC were placed under the conservatorship of the Federal Housing Finance Agency ("FHFA").
Under the plan of conservatorship, the FHFA assumed control of the operations of FNMA and FHLMC. In connection with the actions
taken by the FHFA, the U.S. Treasury has been providing financial contributions to FNMA and FHLMC in return for shares of
a new class of senior preferred stock in FNMA and FHLMC issued under certain preferred stock purchase agreements ("SPAs"). The
SPAs impose significant restrictions on the activities of FNMA and FHLMC.
The value of securities guaranteed by FNMA and FHLMC may be impacted by (among other things), actions taken by the FHFA in
its role as conservator and the U.S. Treasury as a purchaser of senior preferred securities, as well as by future legislation
or regulatory actions.
Variable Rate and Amount Master Notes
Certain Funds may invest in variable amount master demand notes, obligations which permit the investment of fluctuating amounts
at varying market rates of interest pursuant to arrangements between the issuer and the Funds whereby both parties have the
right to vary the amount of the outstanding indebtedness on the notes.
Because these obligations are direct lending arrangements between the lender and borrower, it is not contemplated that such
instruments generally will be traded, and there generally is no established secondary market for these obligations, although
they are redeemable at face value. Accordingly, where these obligations are not secured by letters of credit or other credit
support arrangements, a Fund's right to redeem is dependent on the ability of the borrower to pay principal and interest on
demand. Such obligations frequently are not rated by credit rating agencies and each Fund may invest in obligations which
are not so rated only if the adviser determines that at the time of investment the obligations are of comparable quality to
the other obligations in which such Fund may invest.
FOREIGN SECURITIES AND CURRENCY TRANSACTIONS
Emerging Market Securities
The Funds consider countries with emerging markets to include the following: (i) countries included in the MSCI Emerging Markets
Index; and (ii) countries with low- to middle-income economies according to the International Bank for Reconstruction and
Development (more commonly referred to as the World Bank). Such countries currently include, but are not limited to, Argentina,
Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Malaysia, Mexico, Morocco, Peru, the Philippines,
Poland, Russia, South Africa, South Korea, Taiwan, Thailand, Turkey and Uruguay.
Equity securities of emerging market issuers may include common stock, preferred stocks (including convertible preferred stocks)
and warrants, bonds, notes and debentures convertible into common or preferred stock, equity interests in foreign investment
funds or trusts and real estate investment trust ("REIT") securities. The Funds may invest in American Depositary Receipts
("ADRs"), Canadian Depositary Receipts ("CDRs"), European Depositary Receipts ("EDRs"), Global Depositary Receipts ("GDRs")
and International Depositary Receipts ("IDRs") of such issuers.
There are special risks involved in investing in emerging-market countries. Many investments in emerging markets can be considered
speculative, and their prices can be much more volatile than in the more developed nations of the world. This difference reflects
the greater uncertainties of investing in less established markets and economies. The financial markets of emerging markets
countries are generally less well capitalized and thus securities of issuers based in such countries may be less liquid. Most
are heavily dependent on international trade, and some are especially vulnerable to recessions in other countries. Many of
these countries are also sensitive to world commodity prices. Some countries may still have obsolete financial systems, economic
problems or archaic legal systems. The currencies of certain emerging market countries, and therefore the value of securities
denominated in such currencies, may be more volatile than currencies of developed countries. In addition, many of these nations
are experiencing political and social uncertainties.
Furthermore, with respect to certain foreign countries, taxes may be withheld at the source under foreign tax laws, and there
is a possibility of expropriation or potentially confiscatory levels of taxation, political, social and monetary instability
or diplomatic developments that could adversely affect investments in, the liquidity of, and the ability to enforce contractual
obligations with respect to, securities of issuers located in those countries. Amounts realized on foreign securities in which
a Fund may invest may be subject to foreign withholding or other taxes that could reduce the return on these securities. Applicable
tax treaties between the United States and foreign countries, however, may reduce or eliminate the amount of foreign taxes
to which the Funds would otherwise be subject.
Foreign Government Securities
Foreign government securities investments include the securities of "supranational" organizations such as the International
Bank for Reconstruction and Development and the Inter-American Development Bank if the adviser believes that the securities
do not present risks inconsistent with a Fund's investment objective.
Foreign Obligations and Securities
The Funds consider equity securities of foreign issuers (or foreign securities) to be equity securities: (1) issued by companies
with their principal place of business or principal office or both, as determined in the adviser's reasonable discretion,
in a country, other than the U.S.; or (2) issued by companies for which the principal securities trading market is a country
other than the U.S. Foreign company stocks may lose value or be more difficult to trade as a result of adverse changes in
currency exchange rates or other developments in the issuer's home country. Concentrated investment by a Fund in any single
country, especially a less developed country, would make such Fund's value more sensitive to economic, currency and regulatory
changes within that country.
Investments in foreign obligations and securities include high-quality, short-term debt obligations of foreign issuers, including
foreign branches of U.S. banks, U.S. branches of foreign banks, and short-term debt obligations of foreign governmental agencies
and foreign companies that are denominated in and pay interest in U.S. dollars. Investments in foreign obligations involve
certain considerations that are not typically associated with investing in domestic obligations. There may be less publicly
available information about a foreign issuer than about a domestic issuer and the available information may be less reliable.
Foreign issuers also are not generally subject to the same accounting, auditing and financial reporting standards or governmental
supervision as domestic issuers. In addition, with respect to certain foreign countries, taxes may be withheld at the source
under foreign tax laws, and there is a possibility of expropriation or potentially confiscatory levels of taxation, political
or social instability or diplomatic developments that could adversely affect investments in, the liquidity of, and the ability
to enforce contractual obligations with respect to, obligations of issuers located in those countries. Amounts realized on
certain foreign securities in which a Fund may invest may be subject to foreign withholding or other taxes that could reduce
the return on these securities. Tax treaties between the United States and foreign countries, however, may reduce or eliminate
the amount of foreign taxes to which the Fund would otherwise be subject.
There are increasing concerns regarding the ability of multiple sovereign entities to continue to meet their debt obligations.
In particular, ratings agencies have recently downgraded the credit ratings of various countries and may downgrade the credit
ratings of other countries. Many economies are facing acute fiscal pressures as they struggle to balance budgetary austerity
with stagnant growth. Many observers predict that a depressed economic environment will cause budget deficits in these economies
to expand in the short term and further increase the perceived risk of a default, thereby rendering access to capital markets
even more expensive and compounding the debt problem. In particular, the Eurozone is currently undergoing a collective debt
crisis. Greece, Ireland and Portugal have already received one or more "bailouts" from other Eurozone member states ("Member
States"), and it is unclear how much additional funding they will require or if additional Member States will require bailouts
in the future. Investor confidence in other Member States, as well as European banks exposed to risky sovereign debt, has
been severely impacted, threatening capital markets throughout the Eurozone. Although the resources of various financial stability
mechanisms in the Eurozone continue to be bolstered, many market participants have expressed doubt that the level of funds
being committed to such facilities will be sufficient to resolve the crisis. There also appears to be a lack of political
consensus in the Eurozone concerning whether and how to restructure sovereign debt, particularly Greek sovereign bonds. The
consequences of any sovereign default would likely be severe and wide-reaching, and could include the removal of a Member
State from the Eurozone, or even the abolition of the Euro. Such events could have adverse consequences on the market values
of various securities, currencies and derivatives, and could create conditions of volatility and limited liquidity in various
currency, securities and other markets.
Foreign securities include, among others, ADRs and similar investments, including CDRs, EDRs, GDRs, and IDRs. ADRs, CDRs,
EDRs, GDRs, and IDRs are depositary receipts for foreign company stocks issued by a bank and held in trust at that bank, and
which entitle the owner of such depositary receipts to any capital gains or dividends from the foreign company stocks underlying
the depositary receipts. These securities may not necessarily be denominated in the samecurrency as the securities into which
they may be converted. ADRs (sponsored or unsponsored) are receipts typically issued by a U.S. bank or trust company and traded
on a U.S. stock exchange, and CDRs are receipts typically issued by a Canadian bank or trust company that evidence ownership
of underlying foreign securities. Issuers of unsponsored ADRs are not contractually obligated to disclose material information
in the U.S. and, therefore, such information may not correlate to the market value of the unsponsored ADR. EDRs and IDRs are
receipts typically issued by European banks and trust companies, and GDRs are receipts issued by either a U.S. or non-U.S.
banking institution, that evidence ownership of the underlying foreign securities. Generally, ADRs in registered form are
designed for use in U.S. securities markets and EDRs and IDRs in bearer form are designed primarily for use in Europe.
Foreign securities also include securities denominated in currencies other than the U.S. dollar and may temporarily hold funds
in bank deposits or other money market investments denominated in foreign currencies. Therefore, the Funds may be affected
favorably or unfavorably by exchange control regulations or changes in the exchange rate between such currencies and the dollar.
Because a Fund may invest in securities denominated in currencies other than the U.S. dollar and may temporarily hold funds
in bank deposits or other money market investments denominated in foreign currencies, it may be affected favorably or unfavorably
by exchange control regulations or changes in the exchange rate between such currencies and the dollar. Changes in foreign
currency exchange rates influence values within the Fund from the perspective of U.S. investors. The rate of exchange between
the U.S. dollar and other currencies is determined by a wide range of political and economic factors, including the forces
of supply and demand in the foreign exchange markets. The international balance of payments and other economic and financial
conditions, government intervention and stability, speculation and other factors also affect exchange rates.
A Fund may engage in foreign currency transactions in order to hedge its portfolio and to protect it against possible variations
in foreign exchange rates pending the settlement of securities transactions. If a fall in exchange rates for a particular
currency is anticipated, a Fund may enter into a forward contract to protect against a decrease in the price of securities
denominated in a particular currency a Fund intends to purchase. If it is anticipated that exchange rates will rise, a Fund
may enter into a forward contract to protect against an increase in the price of securities denominated in a particular currency
the Fund intends to purchase. These forward contracts will be used only as a hedge against anticipated currency rate changes.
Although such contracts are intended to minimize the risk of loss due to a decline in the value of the hedged currency, at
the same time, they tend to limit any potential gain which might result should the value of such currency increase.
Foreign currency transactions, such as forward foreign currency exchange contracts, are contracts for the future delivery
of a specified currency at a specified time and at a specified price. These transactions differ from futures contracts in
that they are usually conducted on a principal basis instead of through an exchange, and therefore there are no brokerage
fees, margin deposits are negotiated between the parties, and the contracts are settled through different procedures. The
Adviser considers on an ongoing basis the creditworthiness of the institutions with which the Fund enters into foreign currency
transactions.
The use of foreign currency transactions involves the risk of imperfect correlation between movements in futures prices and
movements in the price of currencies which are the subject of the hedge. The successful use of foreign currency transactions
strategies also depends on the ability of the adviser to correctly forecast interest rate movements, currency rate movements
and general stock market price movements. There can be no assurance that the adviser's judgment will be accurate. The use
of foreign currency transactions also exposes a Fund to the general risks of investing in futures contracts, including: the
risk of an illiquid market for the foreign currency transactions and the risk of adverse regulatory actions. Any of these
events may cause a Fund to be unable to hedge its securities, and may cause a Fund to lose money on its investments in foreign
currency transactions. The Funds will either cover a position in such a transaction or maintain, in a segregated account with
their custodian bank, cash or high-grade marketable money market securities having an aggregate value equal to the amount
of any such commitment until payment is made.
Participation Notes
The Funds may purchase participation notes, also known as participation certificates. Participation notes are issued by banks
or broker-dealers and are designed to replicate the performance of foreign companies or foreign securities markets and can
be used by a Fund as an alternative means to access the securities market of a country. The performance results of participation
notes will not replicate exactly the performance of the foreign companies or foreign securities markets that they seek to
replicate due to transaction costs and other expenses. Investments in participation notes involve the same risks associated
with a direct investment in the underlying foreign companies or foreign securities markets that they seek to replicate. There
can be no assurance that the trading price of participation notes will equal the underlying value of the foreign companies
or foreign securities markets that they seek to replicate. Participation notes are generally traded over-the-counter. Participation
notes are subject to counterparty risk, which is the risk that the broker-dealer or bank that issues them will not fulfill
its contractual obligation to complete the transaction with the Fund. Participation notes constitute general unsecured contractual
obligations of the banks or broker-dealers that issue them, the counterparty, and the Fund is relying on the creditworthiness
of such counterparty and has no rights under a participation note against the issuer of the underlying security. Participation
notes involve transaction cost. Participation notes may be illiquid and therefore subject to the Fund's percentage limitation
for investments in illiquid securities. Participation notes offer a return linked to a particular underlying equity, debt
or currency.
For temporary defensive purposes, the Funds may invest in fixed-income securities of non-U.S. governmental and private issuers.
Such investments may include bonds, notes, debentures and other similar debt securities, including convertible securities.
EQUITY SECURITIES
The following equity securities may be purchased by the Fund to the extent such purchase is consistent with the Fund's investment
objective and strategies.
Initial Public Offerings
Smaller companies may offer initial public offerings which typically have additional risks including more limited product
lines, markets and financial resources than larger, more seasoned companies and their securities may trade less frequently
and in more limited volume than those of larger, more mature companies.
Preferred Stock
Preferred stocks represent an equity or ownership interest in an issuer that pay dividends at a specified rate and that has
precedence over common stock in the payment of dividends. In the event an issuer is liquidated or declares bankruptcy, the
claims of owners of bond take precedence over the claims of those who own preferred securities and common stock.
Smaller Company Securities
Investments in smaller capitalization companies carry greater risk than investments in larger capitalization companies. Smaller
capitalization companies generally experience higher growth rates and higher failure rates than do larger capitalization companies;
and the trading volume of smaller capitalization companies' securities is normally lower than that of larger capitalization
companies and, consequently, generally has a disproportionate effect on market price (tending to make prices rise more in
response to buying demand and fall more in response to selling pressure).
Securities owned by a Fund that are traded in the over-the-counter market or on a regional securities exchange may not be
traded every day or in the volume typical of securities trading on a national securities exchange. As a result, disposition
by a Fund of a portfolio security, to meet redemption requests by other investors or otherwise, may require the Fund to sell
these securities at a discount from market prices, to sell during periods when disposition is not desirable, or to make many
small sales over a lengthy period of time.
Investments in smaller, less seasoned issuers generally carry greater risk than is customarily associated with larger, more
seasoned companies. Such issuers often have products and management personnel that have not been tested by time or the marketplace
and their financial resources may not be as substantial as those of more established companies. Their securities (which a
Fund may purchase when they are offered to the public for the first time) may have a limited trading market that can adversely
affect their sale by a Fund and can result in such securities being priced lower than otherwise might be the case. If other
institutional investors were to engage in trading this type of security, a Fund may be forced to dispose of its holdings in
this type of security at prices lower than might otherwise be obtained in the absence of institutional trading in such security.
OTHER INVESTMENTS AND TECHNIQUES
Borrowing
Money may be borrowed for temporary or emergency purposes, including the meeting of redemption requests. Borrowing involves
special risk considerations. Interest costs on borrowings may fluctuate with changing market rates of interest and may partially
offset or exceed the return earned on borrowed funds (or on the assets that were retained rather than sold to meet the needs
for which funds were borrowed). Under adverse market conditions, a Fund might have to sell portfolio securities to meet interest
or principal payments at a time when investment considerations would not favor such sales. Reverse repurchase agreements,
dollar roll transactions and other similar investments that involve a form of leverage have characteristics similar to borrowings,
but are not considered borrowings if the Fund maintains a segregated account.
Forward Commitments, When-Issued and Delayed-Delivery Transactions
Securities may be purchased or sold on a when-issued or delayed-delivery basis and contracts to purchase or sell securities
for a fixed price at a future date beyond customary settlement time may also be made. Delivery and payment on such transactions
normally take place within 120 days after the date of the commitment to purchase. Securities purchased or sold on a when-issued,
delayed-delivery or forward commitment basis involve a risk of loss if the value of the security to be purchased declines,
or the value of the security to be sold increases, before the settlement date.
The Funds have a segregated account in which they may maintain cash, U.S. Government obligations or other high-quality debt
instruments in an amount at least equal in value to each Fund's commitments to purchase when-issued securities. If the value
of these assets declines, a Fund will place additional liquid assets in the account on a daily basis so that the value of
the assets in the account is at least equal to the amount of such commitments.
Illiquid Securities
Securities not registered under the 1933 Act, and other securities subject to legal or other restrictions on resale may be
less liquid than other investments and may be difficult to sell promptly at an acceptable price. Delay or difficulty in selling
securities may result in a loss or be costly to a Fund. No Fund may invest or hold more than 15% of its net assets in illiquid
securities.
Insurance Funding Agreements
A Fund may invest in funding agreements issued by domestic insurance companies. Funding agreements are short-term,
privately placed, debt obligations of insurance companies that offer a fixed- or floating-rate of interest. These investments
are not readily marketable and therefore are considered to be illiquid securities. (See the section entitled "Illiquid Securities").
Loans of Portfolio Securities
Portfolio securities of a Fund may be loaned pursuant to guidelines approved by the Board to brokers, dealers and financial
institutions, provided: (i) the loan is secured continuously by collateral consisting of cash, securities of the U.S. Government,
its agencies or instrumentalities, or an irrevocable letter of credit issued by a bank organized under the laws of the United
States, organized under the laws of a state, or a foreign bank that has filed an agreement with the Federal Reserve Board
to comply with the same rules and regulations applicable to U.S. banks in securities credit transactions, initially in an
amount at least equal to 100% of the value of the loaned securities (which includes any accrued interest or dividends), with
the borrower being obligated, under certain circumstances, to post additional collateral on a daily marked-to-market basis,
all as described in further detail in the following paragraph; although the loans may not be fully supported at all times
if, for example, the instruments in which cash collateral is invested decline in value or the borrower fails to provide additional
collateral when required in a timely manner or at all; (ii) the Fund may at any time terminate the loan and request the return
of the loaned securities upon sufficient prior notification; (iii) the Fund will receive any interest or distributions paid
on the loaned securities; and (iv) the aggregate market value of loaned securities will not at any time exceed the limits
established under the 1940 Act.
The following provides additional detail on the requirement described in (i) above. The market value of the collateral delivered
in connection with a securities loan must be equal to at least 102% of the market value of any domestic securities loaned
or 105% of the market value of any foreign securities loaned. The loaned securities are marked to market on a daily basis,
and additional collateral is required to be paid to maintain coverage equal to at least 102% of the market value of domestic
securities loaned, and at least 105% of the market value of foreign securities loaned, without taking into account any increase
or decrease in the value of instruments in which cash collateral is invested. For loans of U.S. Government Securities, the
initial collateral required is 102% of the market value of the loaned securities, but additional collateral is required only
if the market value of the loaned securities increases such that the collateral coverage (without taking into account any
increase or decrease in the value of instruments in which the cash collateral is invested) falls below 100% of the market
value of the loaned securities.
For lending its securities, a Fund will earn either a fee payable by the borrower (on loans that are collateralized by U.S.
Government securities or a letter of credit) or the income on instruments purchased with cash collateral (after payment of
a rebate fee to the borrower and a portion of the investment revenue to the securities lending agent). Cash collateral is
invested on behalf of the Funds by the Funds' adviser in U.S. dollar-denominated short-term money market instruments that
are permissible investments for the Fund and that, at the time of investment, are considered high-quality. Currently, cash
collateral generated from securities lending is invested in shares of Wells Fargo Securities Lending Cash Investments, LLC
(the "Cash Collateral Fund"). The Cash Collateral Fund is a Delaware limited liability company that is exempt from registration
under the 1940 Act. The Cash Collateral Fund is managed by Wells Fargo Funds Management, LLC ("Funds Management") and is sub-advised
by Wells Capital Management Incorporated ("Wells Capital Management"). The Cash Collateral Fund is required to comply with
the credit quality, maturity and other limitations set forth in Rule 2a-7 under the 1940 Act. The Cash Collateral Fund seeks
to provide preservation of principal and daily liquidity by investing in high-quality, U.S. dollar-denominated short-term
money market instruments. The Cash Collateral Fund may invest in securities with fixed, variable, or floating rates of interest.
The Cash Collateral Fund seeks to maintain a stable price per share of $1.00, although there is no guarantee that this will
be achieved. Income on shares of the Cash Collateral Fund is reinvested in shares of the Cash Collateral Fund. The investments
of the Cash Collateral Fund are valued at amortized cost. The net asset value of a Fund will be affected by an increase or
decrease in the value of the securities loaned by it, and by an increase or decrease in the value of instruments purchased
with cash collateral received by it. Thus, the current net asset value of each Fund reflects the current valuations assigned to
shares of the Cash Collateral Fund held on behalf of such Fund.
Loans of securities involve a risk that the borrower may fail to return the securities when due or when recalled by a Fund
or may fail to provide additional collateral when required. In either case, a Fund could experience delays in recovering securities
or could lose all or part of the value of the loaned securities. Although voting rights, or rights to consent, attendant to
securities on loan pass to the borrower, loans may be recalled at any time and generally will be recalled if a material event
affecting the investment is expected to be presented to a shareholder vote, so that the securities may be voted by the Fund.
Each lending Fund pays a portion of the income (net of rebate fees) or fees earned by it from securities lending to a securities
lending agent. Goldman Sachs Bank USA, an unaffiliated third party doing business as Goldman Sachs Agency Lending, currently
acts as securities lending agent for the Funds, subject to the overall supervision of the Funds' adviser.
Other Investment Companies
A Fund may invest in shares of other open-end and closed-end management investment companies up to the limits prescribed in
Section 12(d) under the 1940 Act, subject to the fund's non-fundamental investment policies. Currently, under the 1940 Act,
a fund that invests directly in a portfolio of securities is limited to, subject to certain exceptions: (i) 3% of the total
voting stock of any one investment company; (ii) 5% of such fund's total assets with respect to any one investment company;
and (iii) 10% of such fund's total assets.
Other investment companies in which the Fund invests can be expected to charge fees for operating expenses, such as investment
advisory and administration fees, that would be in addition to those charged by the Fund. Other investment companies may include
exchange-traded funds ("ETFs"), which are shares of publicly traded unit investment trusts, open-end funds or depositary receipts
that seek to track the performance of specific indexes or companies in related industries. ETFs generally are subject to the
same risks as the underlying securities the ETFs are designed to track and to the risks of the specific sector or industry
tracked by the ETF. ETFs also are subject to the risk that their prices may not totally correlate to the prices of the underlying
securities the ETFs are designed to track and the risk of possible trading halts due to market conditions or for other reasons.
Although ETFs that track broad market indexes are typically large and their shares are fairly liquid, ETFs that track more
specific indexes tend to be newer and smaller, and all ETFs have limited redemption features. Pursuant to certain exemptive
relief granted by the SEC, the Fund's investments in certain ETFs may exceed certain of the limits described above.
Under the 1940 Act and rules and regulations thereunder, a Fund may purchase shares of other affiliated Funds, including the
money market Funds, subject to certain conditions. Investing in affiliated Funds may present certain actual or potential conflicts
of interest.
iShares.
iShares Trust and iShares, Inc. ("iShares") are registered investment companies that consist of numerous separate series
(each, an "iShares Fund"), each of which seeks investment results similar to the performance of a single stock market or of
a group of stock markets in a single geographic location. iShares combine characteristics of stocks with those of index funds.
Like stocks, iShares are liquid and can be traded in any number of shares; like index funds, they provide diversification
and market tracking. iShares trade on the American Stock Exchange, the Chicago Board of Options Exchange and the New York
Stock Exchange in the same way as shares of a publicly held company.
Private Placement and Other Restricted Securities
Private placement securities are not registered under the 1933 Act. Private placements often may offer attractive opportunities
for investment not otherwise available on the open market. However, private placement and other "restricted" securities typically
cannot be resold without registration under the 1933 Act or the availability of an exemption from registration (such as Rules
144 or 144A (a "Rule 144A Security")), and may not be readily marketable.
Private placement and other restricted securities typically may be resold only to qualified institutional buyers, or in a
privately negotiated transaction, or to a limited number of purchasers, or in limited quantities after they have been held
for a specified period of time and other conditions are met for an exemption from registration. Investing in private placement
and other restricted securities is subject to certain additional risks. They may be considered illiquid securities as they
typically are subject to restrictions on resale as a matter of contract or under federal securities laws. Because there may
be relatively few potential purchasers for such securities, especially under adverse market or economic conditions or in the
event of adverse changes in the financial condition of the issuer, a Fund could find it more difficult to sell such securities
when it may be advisable to do so or it may be able to sell such securities only at prices lower than if such securities were
more widely held and traded. At times, it also may be more difficult to determine the fair value of such securities for purposes
of computing a Fund's net asset value due to the absence of an active trading market. Delay or difficulty in selling such
securities may result in a loss to a Fund. Restricted securities, including Rule 144A Securities, that are "illiquid" are
subject to a Fund's policy of not investing or holding more than 15% of its net assets in illiquid securities. The adviser
will evaluate the liquidity characteristics of each Rule 144A Security proposed for purchase by a Fund on a case-by-case basis
and will consider the following factors, among others, in its evaluation: (i) the frequency of trades and quotes for the Rule
144A Security; (ii) the number of dealers willing to purchase or sell the Rule 144A Security and the number of other potential
purchasers; (iii) dealer undertakings to make a market in the Rule 144A Security; and (iv) the nature of the Rule 144A Security
and the nature of the marketplace trades (e.g., the time needed to dispose of the Rule 144A Security, the method of soliciting
offers and the mechanics of transfer). The adviser will apply a similar process to evaluating the liquidity characteristics
of other restricted securities. There can be no assurance that a restricted security that is deemed to be liquid when purchased
will continue to be liquid for as long as it is held by a Fund.
Repurchase Agreements
Repurchase agreements are agreements wherein the seller of a security to a Fund agrees to repurchase that security from a
Fund at a mutually agreed upon time and price. All repurchase agreements will be fully "collateralized," as defined under
the 1940 Act. A Fund may enter into repurchase agreements only with respect to securities that could otherwise be purchased
by such Fund. The maturities of the underlying securities in a repurchase agreement transaction may be greater than twelve
months, although the maximum term of a repurchase agreement will always be less than twelve months. Repurchase agreements
generally are subject to counterparty risk. If the seller defaults and the value of the underlying securities has declined,
a Fund may incur a loss. In addition, if bankruptcy proceedings are commenced with respect to the seller of the security,
a Fund's disposition of the underlying securities may be delayed or limited.
A Fund may not enter into a repurchase agreement with a maturity of more than seven days, if, as a result, more than 15% of
the market value of such Fund's net assets would be invested in repurchase agreements with maturities of more than seven days,
and other illiquid securities. A Fund will only enter into repurchase agreements with broker-dealers and commercial banks
that meet guidelines established by the Board and that are not affiliated with the Fund's adviser. The Funds may participate
in pooled repurchase agreement transactions with other funds advised by the adviser.
Restricted Securities
Certain Funds may invest in certain restricted securities, including those which may be resold only in accordance with Rule
144A under the 1933 Act ("Rule 144A Securities") and commercial paper issued in reliance on Section 4(2) of the 1933 Act ("4(2)
Paper"). Rule 144A Securities and 4(2) Paper ("Restricted Securities") are not publicly traded, and thus the liquidity of
the market for such securities may vary. Delay or difficulty in selling such securities may result in a loss to a Fund. Restricted
Securities that are "illiquid" are subject to the Funds' policy of not investing or holding more than 5% of net assets in
illiquid securities. The investment adviser, under guidelines approved by the Board, will evaluate the liquidity characteristics
of each Restricted Security proposed for purchase by a Fund on a case-by-case basis and will consider the following factors,
among others, in their evaluation: (1) the frequency of trades and quotes for the Restricted Security; (2) the number of dealers
willing to purchase or sell the Restricted Security and the number of other potential purchasers; (3) dealer undertakings
to make a market in the Restricted Security; and (4) the nature of the Restricted Security and the nature of the marketplace
trades (e.g., the time needed to dispose of the Restricted Security, the method of soliciting offers and the mechanics of
transfer). In order for the adviser to determine that 4(2) Paper is liquid, the adviser must find that, in addition to satisfying
the factors identified above, the following conditions are met: (1) the 4(2) Paper must not be traded flat or be in default
as to principal or interest; and (2) the 4(2) Paper must be rated in one of the two highest rating categories by requisite
NRSROs.
Reverse Repurchase Agreements
A reverse repurchase agreement is an agreement under which a Fund sells a portfolio security and agrees to repurchase it at
an agreed-upon date and price. At the time a Fund enters into a reverse repurchase agreement, it will place in a segregated
custodial account liquid assets such as U.S. Government securities or other liquid high-grade debt securities having a value
equal to or greater than the repurchase price (including accrued interest) and will subsequently monitor the account to ensure
that such value is maintained. Reverse repurchase agreements involve the risk that the market value of the securities sold
by a Fund may decline below the price at which a Fund is obligated to repurchase the securities. In the event the buyer of
securities under a reverse repurchase agreement files for bankruptcy or becomes insolvent, a Fund's use of proceeds of the
agreement may be restricted pending a determination by the other party, or its trustee or receiver, whether to enforce a Fund's
obligation to repurchase the securities. Reverse repurchase agreements may be viewed as a form of borrowing.
Short Sales
A short sale is a transaction in which a Fund sells a security it does not own in anticipation of a decline in market price.
When a Fund makes a short sale, the proceeds it receives are retained by the broker until a Fund replaces the borrowed security.
In order to deliver the security to the buyer, a Fund must arrange through a broker to borrow the security and, in so doing,
a Fund becomes obligated to replace the security borrowed at its market price at the time of replacement, whatever that price
may be. Short sales "against the box" means that a Fund owns the securities, which are placed in a segregated account until
the transaction is closed out, or has the right to obtain securities equivalent in kind and amount to the securities sold
short. A Fund's ability to enter into short sales transactions is limited by the requirements of the 1940 Act.
Short sales by a Fund that are not made "against the box" are limited to transactions in futures and options. Such transactions
create opportunities to increase a Fund's return but, at the same time, involve special risk considerations and may be considered
a speculative technique. Since a Fund in effect profits from a decline in the price of the futures or options sold short without
the need to invest the full purchase price of the futures or options on the date of the short sale, a Fund's NAV per share
will tend to increase more when the futures or options it has sold short decrease in value, and to decrease more when the
futures or options it has sold short increase in value, than would otherwise be the case if it had not engaged in such short
sales. Short sales theoretically involve unlimited loss potential, as the market price of futures or options sold short may
continuously increase, although a Fund may mitigate such losses by replacing the futures or options sold short before the
market price has increased significantly. Under adverse market conditions, a Fund might have difficulty purchasing futures
or options to meet its short sale delivery obligations, and might have to sell portfolio securities to raise the capital necessary
to meet its short sale obligations at a time when fundamental investment considerations would not favor such sales.
If a Fund makes a short sale "against the box," a Fund would not immediately deliver the securities sold and would not receive
the proceeds from the sale. The seller is said to have a short position in the securities sold until it delivers the securities
sold, at which time it receives the proceeds of the sale. A Fund's decision to make a short sale "against the box" may be
a technique to hedge against market risks when the investment manager believes that the price of a security may decline, causing
a decline in the value of a security owned by the Fund or a security convertible into or exchangeable for such security. In
such case, any future losses in the Fund's long position would be reduced by a gain in the short position. Short sale transactions
may have adverse tax consequences to the Fund and its shareholders.
In the view of the SEC, a short sale involves the creation of a "senior security" as such term is defined under the 1940 Act,
unless the sale is "against the box" and the securities sold are placed in a segregated account (not with the broker), or
unless the Fund's obligation to deliver the securities sold short is "covered" by segregating (not with the broker) cash,
U.S. Government securities or other liquid debt or equity securities in an amount equal to the difference between the market
value of the securities sold short at the time of the short sale and any cash or securities required to be deposited as collateral
with a broker in connection with the sale (not including the proceeds from the short sale), which difference is adjusted daily
for changes in the value of the securities sold short. The total value of the cash and securities deposited with the broker
and otherwise segregated may not at any time be less than the market value of the securities sold short at the time of the
short sale.
To avoid limitations under the 1940 Act on borrowing by investment companies, all short sales by a Fund will be "against the
box," or the Fund's obligation to deliver the futures or options sold short not "against the box" will be "covered" by segregating
cash, U.S. Government securities or other liquid debt or equity securities in an amount equal to the market value of its delivery
obligation. A Fund will not make short sales of futures or options not "against the box" or maintain a short position if doing
so could create liabilities or require collateral deposits and segregation of assets aggregating more than 25% of the value
of the Fund's total assets.
Warrants
Warrants are instruments, typically issued with preferred stock or bonds, that give the holder the right to purchase a given
number of shares of common stock at a specified price, usually during a specified period of time. The price usually represents
a premium over the applicable market value of the common stock at the time of the warrant's issuance. Warrants have no voting
rights with respect to the common stock, receive no dividends and have no rights with respect to the assets of the issuer.
Warrants do not pay a fixed dividend. Investments in warrants involve certain risks, including the possible lack of a liquid
market for the resale of the warrants, potential price fluctuations as a result of speculation or other factors and failure
of the price of the common stock to rise. A warrant becomes worthless if it is not exercised within the specified time period.
Zero-Coupon, Step-Up Coupon, and Pay-in-Kind Securities
These securities are debt securities that do not make regular cash interest payments. Zero-coupon securities are securities
that make no periodic interest payments, but are instead sold at discounts from face value. Step-up coupon bonds are debt
securities that may not pay interest for a specified period of time and then, after the initial period, may pay interest at
a series of different rates. Pay-in-kind securities pay bondholders in more bonds instead of cash interest. If these securities
do not pay current cash income, the market prices of these securities would generally be more volatile and likely to respond
to a greater degree to changes in interest rates than the market prices of securities that pay cash interest periodically
having similar maturities and credit qualities.
MANAGEMENT
The following information supplements, and should be read in conjunction with, the section in each Prospectus entitled "Organization
and Management of the Funds."
General
The following table provides basic information about the Trustees and Officers of the Trust. Each of the Trustees and Officers
listed below acts in identical capacities for the Wells Fargo Advantage family of funds which consists of, as of February
28, 2013, 139 series comprising the Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and four closed-end funds (collectively
the "Fund Complex" or the "Trusts"). The business address of each Trustee and Officer is 525 Market Street, 12th Floor, San
Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, with the Trustees subject to retirement from service
as required pursuant to the Trust's retirement policy at the end of the calendar year in which a Trustee turns 75.
Information for Trustees, all of whom are not "interested" persons of the Trust, as that term is defined under the 1940 Act
(each an "Independent Trustee" and collectively, the "Independent Trustees"), appears below. In addition to the Officers listed
below, the Funds have appointed an Anti-Money Laundering Compliance Officer.
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Name and Year of Birth
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Position Held with Registrant/Length of Service
1
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Principal Occupation(s) During Past 5 Years
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Other Public Company or Investment Company Directorships During Past 5 Years
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INDEPENDENT TRUSTEES
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Peter G. Gordon
(Born 1942)
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Trustee, since 1998, Chairman since 2005
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Co-Founder, Retired Chairman, President and CEO of Crystal Geyser Water Company. Trustee Emeritus, Colby College.
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Asset Allocation Trust
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Isaiah Harris, Jr.
(Born 1952)
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Trustee, since 2009
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Retired. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO
of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member
of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University
School of Business. Advisory Board Member, Palm Coast Academy (charter school). Mr. Harris is a certified public accountant.
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CIGNA Corporation; Deluxe Corporation; Asset Allocation Trust
|
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Judith M. Johnson
(Born 1949)
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Trustee, since 2008
Audit Committee Chairman, since 2008
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Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from
1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.
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Asset Allocation Trust
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Leroy Keith, Jr.
(Born 1939)
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Trustee, since 2010
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Chairman, Bloc Global Services (development and construction). Trustee of the Evergreen Funds from 1983 to 2010. Former Managing
Director, Almanac Capital Management (commodities firm), former Partner, Stonington Partners, Inc. (private equity fund),
former Director, Obagi Medical Products Co. and former Director, Lincoln Educational Services.
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Trustee, Virtus Fund Complex (consisting of 48 portfolios as of 1/31/13); Asset Allocation Trust
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David F. Larcker
(Born 1950)
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Trustee, since 2009
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James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Morgan Stanley Director
of the Center for Leadership Development and Research and Senior Faculty of The Rock Center for Corporate Governance since
2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst
& Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.
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Asset Allocation Trust
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Olivia S. Mitchell
(Born 1953)
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Trustee, since 2006
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International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993.
Director of Wharton's Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate
at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.
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Asset Allocation Trust
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Timothy J. Penny
(Born 1951)
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Trustee, since 1996
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President and CEO of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at
the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar
Education Finance, Inc., a non-profit organization, since 2007.
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Asset Allocation Trust
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Michael S. Scofield
(Born 1943)
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Trustee, since 2010
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Served on the Investment Company Institute's Board of Governors and Executive Committee from 2008-2011 as well the Governing
Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from
2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of
the Evergreen Funds (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee
of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.
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Asset Allocation Trust
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Donald C. Willeke
(Born 1940)
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Trustee, since 1996
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Principal of the law firm of Willeke & Daniels. General Counsel of the Minneapolis Employees Retirement Fund from 1984 until
its consolidation into the Minnesota Public Employees Retirement Association on June 30, 2010. Director and Vice Chair of
The Tree Trust (non-profit corporation). Director of the American Chestnut Foundation (non-profit corporation).
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Asset Allocation Trust
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1
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Length of service dates reflect the Trustee's commencement of service with the Trust's predecessor entities, where applicable.
|
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Name and Year of Birth
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Position Held with Registrant/Length of Service
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Principal Occupation(s) During Past 5 Years
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OFFICERS
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Karla M. Rabusch
(Born 1959)
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President, since 2003
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Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo Funds Management, LLC since 2003.
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Jeremy DePalma
1
(Born 1974)
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Treasurer, since 2012; Assistant Treasurer, since 2009
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Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management
Company, LLC from 2008 to 2010. Vice President, Evergreen Investment Services, Inc. from 2004 to 2007. Head of the Fund Reporting
and Control Team within Fund Administration from 2005 to 2010.
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Nancy Wiser
2
(Born 1967)
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Treasurer, since 2012
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Executive Vice President of Wells Fargo Funds Management, LLC since 2011. Chief Operating Officer and Chief Compliance Officer
at LightBox Capital Management LLC, from 2008 to 2011. Owned and operated a consulting business providing services to various
hedge funds including acting as Chief Operating Officer and Chief Compliance Officer for a hedge fund from 2007 to 2008. Chief
Operating Officer and Chief Compliance Officer of GMN Capital LLC from 2006 to 2007.
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C. David Messman
(Born 1960)
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Secretary, since 2000; Chief Legal Officer, since 2003
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Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001. Vice President and Managing Counsel
of Wells Fargo Bank, N.A. since 1996.
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Debra Ann Early
(Born 1964)
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Chief Compliance Officer, since 2007
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Chief Compliance Officer of Wells Fargo Funds Management, LLC since 2007. Chief Compliance Officer of Parnassus Investments
from 2005 to 2007. Chief Financial Officer of Parnassus Investments from 2004 to 2007.
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David Berardi
(Born 1975)
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Assistant Treasurer, since 2009
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Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company,
LLC from 2008 to 2010. Assistant Vice President of Evergreen Investment Services, Inc. from 2004 to 2008. Manager of Fund
Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.
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1
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Currently serves as Treasurer to the Allocation Funds, Dow Jones Target Date Funds, International Equity Funds, Large Cap
Stock Funds, WealthBuilder Portfolios and the International Value Fund. Also serves as Assistant Treasurer for the remaining
series of the Trust.
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2
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Currently serves as Treasurer to the CoreBuilder Shares, Equity Gateway Funds (except International Value Fund), Income Funds,
Money Market Funds, Municipal Income Funds and Small to Mid Cap Stock Funds.
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The Trust's Declaration of Trust does not set forth any specific qualifications to serve as a Trustee other than that no person
shall stand for initial election or appointment as a Trustee if such person has already reached the age of 72. The Charter
and the Statement of Governance Principles of the Governance Committee also do not set forth any specific qualifications,
but do set forth certain factors that the Committee may take into account in considering Trustee candidates and a process
for evaluating potential conflicts of interest, which identifies certain disqualifying conflicts. All of the current Trustees
are Independent Trustees. Among the attributes or skills common to all Trustees are their ability to review critically, evaluate,
question and discuss information provided to them, to interact effectively with the other Trustees, Funds Management, sub-advisers,
other service providers, counsel and the independent registered public accounting firm, and to exercise effective and independent
business judgment in the performance of their duties as Trustees. Each Trustee's ability to perform his or her duties effectively
has been attained through the Trustee's business, consulting, public service, professional and/or academic positions and through
experience from service as a board member of the Trust and the other Trusts in the Fund Complex (and/or in other capacities,
including for any predecessor funds), other registered investment companies, public companies, or non-profit entities or other
organizations as set forth below. Each Trustee's ability to perform his or her duties effectively also has been enhanced by
his or her educational background, professional training, and/or other life experiences.
Peter G. Gordon
. Mr. Gordon has been a Trustee since 1998, Chairman of the Board of Trustees since 2005, Chairman of the Governance Committee
since 2005, and was the Lead Independent Trustee from 2001 through 2005, with respect to all of the Trusts in the Fund Complex.
He has also served as a Trustee, Chairman of the Board of Trustees and Chairman of the Governance Committee of Asset Allocation
Trust since 2010. In addition, he has over 30 years of executive and business experience as the co-founder, and retired Chairman,
President and CEO of Crystal Geyser Water Company.
Isaiah Harris, Jr
. Mr. Harris has served as a Trustee of the Trusts in the Fund Complex since 2009 and was an Advisory Board Member from 2008
to 2009. He has also served as a Trustee of Asset Allocation Trust since 2010. He has been the Chairman of the Board of CIGNA
Corporation since 2009, and has been a director of CIGNA Corporation since 2005. He also has been a director of Deluxe Corporation
since 2003. As a director of these and other public companies, he has served on board committees, including Governance, Audit
and Compensation Committees. Mr. Harris served in senior executive positions, including as president, chief executive officer,
vice president of finance and/or chief financial officer, of operating companies for approximately 20 years.
Judith M. Johnson
. Ms. Johnson has served as a Trustee of the Trusts in the Fund Complex since 2008 and as Chair of the Audit Committee since
2009. She has also served as a Trustee and Chair of the Audit Committee of Asset Allocation Trust since 2010. She served as
the Chief Executive Officer and Chief Investment Officer of the Minneapolis Employees Retirement Fund for twelve years until
her retirement in 2008. Ms. Johnson is a licensed attorney, as well as a certified public accountant and a certified managerial
accountant. Ms. Johnson has been determined by the Board to be an audit committee financial expert as such term is defined
in the applicable rules of the SEC.
Leroy Keith, Jr
. Mr. Keith has served as a Trustee of the Trusts in the Fund Complex since 2010. He has also served as a Trustee of Asset
Allocation Trust since 2005. He previously served as a Trustee of the Evergreen fund complex from 1983 to 2010. He is a Trustee
of the Virtus fund complex, Former Managing Director of Almanac Capital Management, Former Director of Diversapack Co., Former
Partner of Stonington Partners, Inc. and Former Director of Obagi Medical Products, Inc. He is also Chairman of Bloc Global
Services, a development and constructions firm.
David F. Larcker
. Mr. Larcker has served as a Trustee of the Trusts in the Fund Complex since 2009 and was an Advisory Board Member from 2008
to 2009. He has also served as a Trustee of Asset Allocation Trust since 2010. Mr. Larcker is the James Irvin Miller Professor
of Accounting at the Graduate School of Business of Stanford University. He is also the Morgan Stanley Director of the Center
for Leadership Development and Research and Co-director of The Rock Center for Corporate Governance at Stanford University.
He has been a professor of accounting for over 30 years. He has written numerous articles on a range of topics, including
managerial accounting, financial statement analysis and corporate governance.
Olivia S. Mitchell
. Ms. Mitchell has served as a Trustee of the Trusts in the Fund Complex since 2006. She has also served as a Trustee of Asset
Allocation Trust since 2010. Ms. Mitchell is the International Foundation of Employee Benefit Plans Professor at the Wharton
School of the University of Pennsylvania, where she is also Professor of Insurance/Risk Management and Business Economics/Policy.
She also serves in senior positions with academic and policy organizations that conduct research on pensions, retirement,
insurance, risk management, and related topics including as Executive Director of the Pension Research Council and Director
of the Boettner Center on Pensions and Retirement Research, both at the University of Pennsylvania. She has taught on and
served as a consultant on economics, insurance, and risk management, served as Department Chair, advised numerous governmental
entities, and written numerous articles and books on topics including retirement systems, private and social insurance, and
health and retirement policy.
Timothy J. Penny
. Mr. Penny has been a Trustee of the Trusts in the Fund Complex and their predecessor funds since 1996. He has also served
as a Trustee of Asset Allocation Trust since 2010. He has been President and CEO of Southern Minnesota Initiative Foundation
since 2007 and a Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. He also serves
as a member of the board of another non-profit organization. Mr. Penny was a member of the U.S. House of Representatives for
12 years representing Southeastern Minnesota's First Congressional District.
Michael S. Scofield.
Mr. Scofield has served as a Trustee of the Trusts in the Fund Complex since 2010. He has also served as a Trustee of Asset
Allocation Trust since 2005. He previously served on the Investment Company Institute's Board of Governors and Executive Committee.
Mr. Scofield previously served as a Trustee of the Evergreen fund complex from 1984 to 2010, where he served as Chairman of
the Board. He also served as a member and former chairman of the Independent Directors Counsel, an organization dedicated
to serving the independent investment company director community, and other leadership positions in the investment company
industry. He previously worked as an attorney with the Law Offices of Michael S. Scofield.
Donald C. Willeke
. Mr. Willeke has been a Trustee of the Trusts in the Fund Complex and their predecessor funds since 1996. He has also served
as a Trustee of Asset Allocation Trust since 2010. He is an attorney in private practice and served as General Counsel of
the Minneapolis Employees Retirement Fund for more than 25 years.
Board of Trustees - Leadership Structure and Oversight Responsibilities
Overall responsibility for oversight of the Trust and the Funds rests with the Board of Trustees. The Board has engaged Funds
Management to manage the Funds on a day-to day basis. The Board is responsible for overseeing Funds Management and other service
providers in the operation of the Trust in accordance with the provisions of the 1940 Act, applicable provisions of Delaware
law, other applicable laws and the Fund's charter. The Board is currently composed of nine members, each of whom is an Independent
Trustee. The Board currently conducts regular meetings five times a year. In addition, the Board holds special in-person or
telephonic meetings or informal conference calls to discuss specific matters that may arise or require action between regular
meetings. The Independent Trustees have engaged independent legal counsel to assist them in performing their oversight responsibilities.
The Board has appointed an Independent Trustee to serve in the role of Chairman. The Chairman's role is to preside at all
meetings of the Board and to act as a liaison with service providers, officers, attorneys, and other Trustees generally between
meetings. The Chairman may also perform such other functions as may be delegated by the Board from time to time. In order
to assist the Chairman in maintaining effective communications with the other Trustees and Funds Management, the Board has
appointed a Chair Liaison to work with the Chairman to coordinate Trustee communications and to assure timely responses to
Trustee inquiries, board governance and fiduciary matters. The Chair Liaison serves for a one-year term, which may be extended
with the approval of the Board. Except for any duties specified herein or pursuant to the Trust's charter document, the designation
of Chairman or Chair Liaison does not impose on such Independent Trustee any duties, obligations or liability that are greater
than the duties, obligations or liability imposed on such person as a member of the Board generally.
The Board also has established a Governance Committee, an Audit Committee and a Dividend Committee to assist the Board in
the oversight and direction of the business and affairs of the Trust, and from time to time may establish informal working
groups to review and address the policies and practices of the Trust with respect to certain specified matters. Additionally,
the Board has established investment teams to review in detail the performance of each of the Funds, in light of each Fund's
investment objectives and strategies, to meet with portfolio managers, and to report back to the full Board. The Board occasionally
engages independent consultants to assist it in evaluating initiatives or proposals. The Board believes that the Board's current
leadership structure is appropriate because it allows the Board to exercise informed and independent judgment over matters
under its purview, and it allocates areas of responsibility among committees of Trustees and the full Board in a manner that
enhances effective oversight. The leadership structure of the Board may be changed, at any time and at the discretion of the
Board, including in response to changes in circumstances or the characteristics of the Trust.
The Funds and Trusts are subject to a number of risks, including investment, compliance, operational, and valuation risks,
among others. Day-to-day risk management functions are subsumed within the responsibilities of Funds Management, the subadvisers
and other service providers (depending on the nature of the risk), who carry out the Funds' investment management and business
affairs. Each of Funds Management, the sub-advisers and other service providers have their own, independent interest in risk
management, and their policies and methods of carrying out risk management functions will depend, in part, on their individual
priorities, resources and controls.
Risk oversight forms part of the Board's general oversight of the Funds and Trusts and is addressed as part of various Board
and Committee activities. The Board recognizes that it is not possible to identify all of the risks that may affect a Fund
or to develop processes and controls to eliminate or mitigate their occurrence or effects. As part of its regular oversight
of the Trusts, the Board, directly or through a Committee, interacts with and reviews reports from, among others, Funds Management,
subadvisers, the Chief Compliance Officer of the Funds, the independent registered public accounting firm for the Funds, and
internal auditors for Funds Management or its affiliates, as appropriate, regarding risks faced by the Funds and relevant
risk functions. The Board, with the assistance of its investment teams, reviews investment policies and risks in connection
with its review of the Funds' performance. The Board has appointed a Chief Compliance Officer who oversees the implementation
and testing of the Funds' compliance program and regularly reports to the Board regarding compliance matters for the Funds
and their principal service providers. In addition, as part of the Board's periodic review of the Funds' advisory, subadvisory
and other service provider agreements, the Board may consider risk management aspects of their operations and the functions
for which they are responsible. With respect to valuation, the Board oversees a management valuation team comprised of officers
of Funds Management, has approved and periodically reviews valuation policies and procedures applicable to valuing the Fund
shares and has established a valuation committee of Trustees. The Board may, at any time and in its discretion, change the
manner in which it conducts its risk oversight role.
Committees
.
As noted above, the Board has established a standing Governance Committee, a standing Audit Committee and a standing Valuation
Committee to assist the Board in the oversight and direction of the business and affairs of the Trust. Each such Committee
operates pursuant to a charter approved by the Board and is chaired by an Independent Trustee. Each Independent Trustee is
a member of the Trust's Governance Committee, Audit Committee and Valuation Committee.
(1)
Governance Committee
. Whenever a vacancy occurs on the Board, the Governance Committee is responsible for recommending to the Board persons to
be appointed as Trustees by the Board, and persons to be nominated for election as Trustees in circumstances where a shareholder
vote is required by or under the 1940 Act. Generally, the Governance Committee selects the candidates for consideration to
fill Trustee vacancies, or considers candidates recommended by the other Trustees or by the Trust's management. Pursuant to
the Trust's charter document, only Independent Trustees may nominate and select persons to become Independent Trustees for
the Trust, so long as the Trust has in effect one or more plans pursuant to Rule 12b-1 under the 1940 Act. The Governance
Committee meets only as necessary and met four times during the Funds' most recently completed fiscal year. Peter Gordon serves
as the chairman of the Governance Committee.
The Governance Committee has adopted procedures by which a shareholder may properly submit a nominee recommendation for the
Committee's consideration, which are set forth in the Trusts' Governance Committee Charter. The shareholder must submit any
such recommendation (a "Shareholder Recommendation") in writing to the Trust, to the attention of the Trust's Secretary, at
the address of the principal executive offices of the Trust. The Shareholder Recommendation must be delivered to, or mailed
and received at, the principal executive offices of the Trust not less than forty-five calendar days nor more than seventy-five
calendar days prior to the date of the Governance Committee meeting at which the nominee would be considered. The Shareholder
Recommendation must include: (i) a statement in writing setting forth (A) the name, age, date of birth, business address,
residence address, and nationality of the person recommended by the shareholder (the "candidate"), (B) the series (and, if
applicable, class) and number of all shares of the Trust owned of record or beneficially by the candidate, as reported to
such shareholder by the candidate; (C) any other information regarding the candidate called for with respect to director nominees
by paragraphs (a), (d), (e), and (f) of Item 401 of Regulation S-K or paragraph (b) of Item 22 of Rule 14a-101 (Schedule 14A)
under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), adopted by the SEC (or the corresponding provisions
of any regulation or rule subsequently adopted by the SEC or any successor agency applicable to the Trust); (D) any other
information regarding the candidate that would be required to be disclosed if the candidate were a nominee in a proxy statement
or other filing required to be made in connection with solicitation of proxies for election of directors pursuant to Section
14 of the Exchange Act and the rules and regulations promulgated thereunder; and (E) whether the recommending shareholder
believes that the candidate is or will be an "interested person" of the Trust (as defined in the 1940 Act) and, if not an
"interested person," information regarding the candidate that will be sufficient for the Trust to make such determination;
(ii) the written and signed consent of the candidate to be named as a nominee and to serve as a Trustee if elected; (iii)
the recommending shareholder's name as it appears on the Trust's books; (iv) the series (and, if applicable, class) and number
of all shares of the Trust owned beneficially and of record by the recommending shareholder; and (v) a description of all
arrangements or understandings between the recommending shareholder and the candidate and any other person or persons (including
their names) pursuant to which the recommendation is being made by the recommending shareholder. In addition, the Governance
Committee may require the candidate to interview in person or furnish such other information as it may reasonably require
or deem necessary to determine the eligibility of such candidate to serve as a Trustee of the Trust. The Governance Committee
has full discretion to reject nominees recommended by shareholders, and there is no assurance that any such person properly
recommended and considered by the Committee will be nominated for election to the Board.
The Governance Committee may from time-to-time propose nominations of one or more individuals to serve as members of an "advisory
board," as such term is defined in Section 2(a)(1) of the 1940 Act ("Advisory Trustees"). An individual may be eligible to
serve as an Advisory Trustee only if that individual meets the requirements to be an Independent Trustee and does not otherwise
serve the Trust in any other capacity. Any Advisory Trustee shall serve at the pleasure of the Board and may be removed, at
any time, with or without cause, by the Board. An Advisory Trustee may be nominated and elected as a Trustee, at which time
he or she shall cease to be an Advisory Trustee. Advisory Trustees shall perform solely advisory functions. Unless otherwise
specified by the Committee or the Board, Advisory Trustees are invited to attend meetings of the Board and all committees
of the Board. Advisory Trustees shall participate in meeting discussions but do not have a vote upon any matter presented
to the Board or any committee of the Board, nor do they have any power or authority to act on behalf of or to bind the Board,
any committee of the Board or the Trust. Advisory Trustees shall not have any responsibilities or be subject to any liabilities
imposed upon Trustees by law or otherwise. Advisory Trustees shall be entitled, to the maximum extent permitted by law, to
be indemnified by the Trust and shall be covered by any liability insurance coverage that extends to Trustees and officers
of the Trust. Advisory Trustees shall be paid the same meeting fees payable to Trustees and shall have their expenses reimbursed
in accordance with existing Board expense reimbursement policies. Advisory Trustees shall not receive any retainer fees.
(2)
Audit Committee
. The Audit Committee oversees the Funds' accounting and financial reporting policies and practices, reviews the results of
the annual audits of the Funds' financial statements, and interacts with the Funds' independent registered public accounting
firm on behalf of the full Board. The Audit Committee operates pursuant to a separate charter, and met four times during the
Funds' most recently completed fiscal year. Judith M. Johnson serves as the chairperson of the Audit Committee.
(3)
Valuation Committee
. The Board has delegated to the Valuation Committee the authority to take any necessary or appropriate action and address
any issues regarding the valuation of Fund portfolio securities under the Trust's valuation procedures, including determining
the fair value of securities between Board regularly scheduled meetings in instances where that determination has not otherwise
been delegated to the valuation team ("Management Valuation Team") of Funds Management. The Board considers for ratification
at each quarterly meeting any valuation actions taken by the Valuation Committee or the Management Valuation Team during the
previous quarter that require ratification. Any one member of the Valuation Committee may constitute a quorum for a meeting
of the committee. The Valuation Committee did not meet during the Funds' most recently completed fiscal year.
(4)
Dividend Committee
. The Board has delegated to the Dividend Committee the responsibility to review and approve certain dividend amount determinations
made by a separate committee composed of representatives from Funds Management and certain sub-advisers ("Management Open-End
Dividend Committee"). The Board also has delegated to the Management Open-End Dividend Committee the authority to determine
periodic dividend amounts subject to certain Board-approved thresholds ("Thresholds") to be paid by each of the Emerging Markets
Equity Income Fund, Emerging Markets Local Bond Fund, International Bond Fund, Inflation-Protected Bond Fund and Strategic
Income Fund. To the extent the Management Open-End Dividend Committee makes a dividend amount determination that does exceeds
the Thresholds, the Dividend Committee must review and approve such determination. The Dividend Committee is composed of three
Independent Trustees and did not meet during the Funds' most recently completed fiscal year.
Compensation
. The Trustees do not receive any retirement benefits or deferred compensation from the Trust or any other member of the Fund
Complex. The Trust's Officers are not compensated by the Trust for their services.
The below table lists the compensation paid to each Trustee by each Fund and the total compensation paid to each Trustee by
the Fund Complex for the fiscal year ended February 28, 2013:
|
Trustee Compensation
|
|
Trustee
|
Aggregate Compensation from each Fund
|
|
Total Compensation from the Fund Complex
1
|
|
|
Peter G. Gordon
|
$2,065
|
|
$287,000
|
|
|
Isaiah Harris, Jr.
|
$1,741
|
|
$242,000
|
|
|
Judith M. Johnson
|
$1,930
|
|
$268,250
|
|
|
Leroy Keith, Jr.
|
$1,741
|
|
$242,000
|
|
|
David F. Larcker
|
$1,741
|
|
$242,000
|
|
|
Olivia S. Mitchell
|
$1,741
|
|
$242,000
|
|
|
Timothy J. Penny
|
$1,784
|
|
$248,000
|
|
|
Michael S. Scofield
|
$1,730
|
|
$240,500
|
|
|
Donald C. Willeke
|
$1,741
|
|
$242,000
|
|
|
1
|
As of February 28, 2013, there were 139 series in the Fund Complex.
|
Beneficial Equity Ownership Information.
As of the calendar year ended December 31, 2012, the Trustees and Officers of the Trust, as a group, beneficially owned less
than 1% of the outstanding shares of the Trust. The table below shows for each Trustee, the dollar value of the Funds' equity
securities beneficially owned by the Trustee, and the aggregate value of all investments in equity securities of the Fund
Complex, stated as one of the following ranges: $0; $1-$10,000; $10,001- $50,000; $50,001-$100,000; and over $100,000.
|
Beneficial Ownership
|
|
Trustee
|
Fund
|
|
Dollar Range of Investment in Fund
|
|
|
Aggregate Dollar Range of Equity Securities of Fund Complex
1
|
|
|
Peter G. Gordon
|
Target Today Fund
|
|
Over $100,000
|
|
|
Over $100,000
|
|
|
|
Target 2010 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2015 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2020 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2025 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2030 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2035 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2040 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2045 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2050 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2055 Fund
|
|
$0
|
|
|
|
|
|
Isaiah Harris, Jr.
|
Target Today Fund
|
|
$0
|
|
|
Over $100,000
|
|
|
|
Target 2010 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2015 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2020 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2025 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2030 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2035 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2040 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2045 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2050 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2055 Fund
|
|
$0
|
|
|
|
|
|
Judith M. Johnson
|
Target Today Fund
|
|
$0
|
|
|
Over $100,000
|
|
|
|
Target 2010 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2015 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2020 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2025 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2030 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2035 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2040 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2045 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2050 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2055 Fund
|
|
$0
|
|
|
|
|
|
Leroy Keith, Jr.
|
Target Today Fund
|
|
$0
|
|
|
Over $100,000
|
|
|
|
Target 2010 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2015 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2020 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2025 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2030 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2035 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2040 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2045 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2050 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2055 Fund
|
|
$0
|
|
|
|
|
|
David F. Larcker
|
Target Today Fund
|
|
$0
|
|
|
Over $100,000
|
|
|
|
Target 2010 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2015 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2020 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2025 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2030 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2035 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2040 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2045 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2050 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2055 Fund
|
|
$0
|
|
|
|
|
|
Olivia S. Mitchell
|
Target Today Fund
|
|
$0
|
|
|
Over $100,000
|
|
|
|
Target 2010 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2015 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2020 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2025 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2030 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2035 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2040 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2045 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2050 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2055 Fund
|
|
$0
|
|
|
|
|
|
Timothy J. Penny
|
Target Today Fund
|
|
$0
|
|
|
Over $100,000
|
|
|
|
Target 2010 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2015 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2020 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2025 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2030 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2035 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2040 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2045 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2050 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2055 Fund
|
|
$0
|
|
|
|
|
|
Michael S. Scofield
|
Target Today Fund
|
|
$0
|
|
|
Over $100,000
|
|
|
|
Target 2010 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2015 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2020 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2025 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2030 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2035 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2040 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2045 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2050 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2055 Fund
|
|
$0
|
|
|
|
|
|
Donald C. Willeke
|
Target Today Fund
|
|
$0
|
|
|
Over $100,000
|
|
|
|
Target 2010 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2015 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2020 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2025 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2030 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2035 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2040 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2045 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2050 Fund
|
|
$0
|
|
|
|
|
|
|
Target 2055 Fund
|
|
$0
|
|
|
|
|
|
1
|
Includes Trustee ownership in shares of funds within the entire Wells Fargo Advantage Fund Complex (consisting of 139 funds)
as of December 31, 2012.
|
Ownership of Securities of Certain Entities.
As of the calendar year ended December 31, 2012, none of the Independent Trustees and/or their immediate family members owned
securities of the adviser, any sub-advisers, or the distributor, or any entity directly or indirectly controlling, controlled
by, or under common control with the adviser, any sub-advisers, or the distributor.
Adviser
Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company and an affiliate of Wells Fargo Bank, is the
adviser for the Funds. Funds Management is responsible for implementing the investment policies and guidelines for the Funds,
and for supervising the sub-advisers who are responsible for the day-to-day portfolio management of the Funds.
Wells Fargo & Company is a diversified financial services company providing banking, insurance, investments, mortgage and
consumer finance services. The involvement of various subsidiaries of Wells Fargo & Company, including Funds Management, in
the management and operation of the Fund and in providing other services or managing other accounts gives rise to certain
actual and potential conflicts of interest.
For example, certain investments may be appropriate for a Fund and also for other clients advised by Funds Management and
its affiliates, and there may be market or regulatory limits on the amount of such investments, which may cause competition
for limited positions. Also, various clients and proprietary accounts of Funds Management and its affiliates may at times
take positions that are adverse to a Fund. Funds Management applies various policies to address these situations, but a Fund
may nonetheless incur losses or underperformance during periods when Wells Fargo & Company, its affiliates and their clients
achieve gains or outperformance.
Wells Fargo & Company may have interests in or provide services to portfolio companies or Fund shareholders or intermediaries
that may not be fully aligned with the interests of all investors. Funds Management and its affiliates serve in multiple roles,
including as adviser and, for most
Wells Fargo Advantage Funds
, sub-adviser, as well as administrator and principal underwriter.
These are all considerations of which an investor should be aware and which may cause conflicts that could disadvantage a
Fund. Funds Management has instituted business and compliance policies, procedures and disclosures that are designed to identify,
monitor and mitigate such conflicts of interest.
Wells Fargo & Company is a diversified financial services company providing banking, insurance, investments, mortgage and
consumer finance services. The involvement of various subsidiaries of Wells Fargo & Company, including Funds Management, in
the management and operation of the Fund and in providing other services or managing other accounts gives rise to certain
actual and potential conflicts of interest.
For example, certain investments may be appropriate for a Fund and also for other clients advised by Funds Management and
its affiliates, and there may be market or regulatory limits on the amount of investment, which may cause competition for
limited positions. Also, various client and proprietary accounts may at times take positions that are adverse to a Fund. Funds
Management applies various policies to address these situations, but a Fund may nonetheless incur losses or underperformance
during periods when Wells Fargo & Company, its affiliates and their clients achieve gains or outperformance.
Wells Fargo & Company may have interests in or provide services to portfolio companies or Fund shareholders or intermediaries
that may not be fully aligned with the interests of all investors. Funds Management and its affiliates serve in multiple roles,
including as adviser and, for most
Wells Fargo Advantage Funds
, sub-adviser, as well as administrator and principal underwriter.
These are all considerations of which an investor should be aware and which may cause conflicts that could disadvantage a
Fund. Funds Management has instituted business and compliance policies, procedures and disclosures that are designed to identify,
monitor and mitigate conflicts of interest.
For each of the Funds, Funds Management determines the master portfolios of the Master Trust in which each gateway blended Fund
invests and the percentage allocation that such Fund would make to each master portfolio. For these asset allocation services,
Funds Management is entitled to receive an annual fee as indicated in the chart below, as a percentage of each Fund's average
daily net assets:
|
|
Advisory Fee
|
|
|
First $500 million
|
0.25%
|
|
|
Next $500 million
|
0.23%
|
|
|
Next $2 billion
|
0.21%
|
|
|
Over $3 billion
|
0.19%
|
|
The advisory fees that Funds Management is entitled to receive from the master portfolios of the Master Trust in which each
Fund currently invests are set forth in the table below, as a percentage of each master portfolio's average daily net assets.
|
Portfolio
|
|
|
Advisory Fee
|
|
|
Diversified Stock Portfolio
|
First $500 million
|
|
0.20%
|
|
|
|
Next $500 million
|
|
0.18%
|
|
|
|
Next $2 billion
|
|
0.16%
|
|
|
|
Next $2 billion
|
|
0.14%
|
|
|
|
Next $3 billion
|
|
0.12%
|
|
|
|
Next $4 billion
|
|
0.11%
|
|
|
|
Over $12 billion
|
|
0.10%
|
|
|
Diversified Fixed Income Portfolio
|
First $500 million
|
|
0.20%
|
|
|
|
Next $500 million
|
|
0.18%
|
|
|
|
Next $2 billion
|
|
0.16%
|
|
|
|
Next $2 billion
|
|
0.14%
|
|
|
|
Next $3 billion
|
|
0.12%
|
|
|
|
Next $4 billion
|
|
0.11%
|
|
|
|
Over $12 billion
|
|
0.10%
|
|
|
Short-Term Investment Portfolio
|
All Asset Levels
|
|
0.10%
|
|
Advisory Fees Paid
. Below are the aggregate advisory fees paid by the Funds and the aggregate advisory fees waived by the investment adviser
for the last three fiscal years.
|
Advisory Fees Paid
|
|
Fund/Fiscal Year or Period
|
Advisory Fees Paid
|
|
Advisory Fees Waived
|
|
|
February 28, 2013
|
|
|
|
|
|
|
|
Wells Fargo Advantage Dow Jones Target Today Fund
|
$
|
462,164
|
|
$
|
1,877,197
|
|
|
Wells Fargo Advantage Dow Jones Target 2010 Fund
|
$
|
779,086
|
|
$
|
1,292,972
|
|
|
Wells Fargo Advantage Dow Jones Target 2015 Fund
|
$
|
648,864
|
|
$
|
1,485,928
|
|
|
Wells Fargo Advantage Dow Jones Target 2020 Fund
|
$
|
2,633,969
|
|
$
|
2,676,023
|
|
|
Wells Fargo Advantage Dow Jones Target 2025 Fund
|
$
|
1,710,344
|
|
$
|
2,750,108
|
|
|
Wells Fargo Advantage Dow Jones Target 2030 Fund
|
$
|
2,314,649
|
|
$
|
2,304,783
|
|
|
Wells Fargo Advantage Dow Jones Target 2035 Fund
|
$
|
788,379
|
|
$
|
1,431,691
|
|
|
Wells Fargo Advantage Dow Jones Target 2040 Fund
|
$
|
1,617,443
|
|
$
|
1,561,268
|
|
|
Wells Fargo Advantage Dow Jones Target 2045 Fund
|
$
|
289,118
|
|
$
|
847,328
|
|
|
Wells Fargo Advantage Dow Jones Target 2050 Fund
|
$
|
862,202
|
|
$
|
1,150,982
|
|
|
Wells Fargo Advantage Dow Jones Target 2055 Fund
|
$
|
0
|
|
$
|
55,512
|
|
|
February 29, 2012
|
|
|
|
|
|
|
|
Wells Fargo Advantage Dow Jones Target Today Fund
|
$
|
389,695
|
|
$
|
1,714,354
|
|
|
Wells Fargo Advantage Dow Jones Target 2010 Fund
|
$
|
745,576
|
|
$
|
1,262,230
|
|
|
Wells Fargo Advantage Dow Jones Target 2015 Fund
|
$
|
490,588
|
|
$
|
1,165,098
|
|
|
Wells Fargo Advantage Dow Jones Target 2020 Fund
|
$
|
2,308,664
|
|
$
|
2,291,614
|
|
|
Wells Fargo Advantage Dow Jones Target 2025 Fund
|
$
|
1,347,769
|
|
$
|
2,496,240
|
|
|
Wells Fargo Advantage Dow Jones Target 2030 Fund
|
$
|
1,963,709
|
|
$
|
1,919,975
|
|
|
Wells Fargo Advantage Dow Jones Target 2035 Fund
|
$
|
561,932
|
|
$
|
1,077,937
|
|
|
Wells Fargo Advantage Dow Jones Target 2040 Fund
|
$
|
1,464,394
|
|
$
|
1,218,559
|
|
|
Wells Fargo Advantage Dow Jones Target 2045 Fund
|
$
|
248,673
|
|
$
|
498,746
|
|
|
Wells Fargo Advantage Dow Jones Target 2050 Fund
|
$
|
742,536
|
|
$
|
926,992
|
|
|
Wells Fargo Advantage Dow Jones Target 2055 Fund
|
$
|
0
|
|
$
|
5,227
|
|
|
February 28, 2011
|
|
|
|
|
|
|
|
Wells Fargo Advantage Dow Jones Target Today Fund
|
$
|
203,002
|
|
$
|
1,193,197
|
|
|
Wells Fargo Advantage Dow Jones Target 2010 Fund
|
$
|
560,288
|
|
$
|
1,084,898
|
|
|
Wells Fargo Advantage Dow Jones Target 2015 Fund
|
$
|
273,943
|
|
$
|
880,228
|
|
|
Wells Fargo Advantage Dow Jones Target 2020 Fund
|
$
|
1,670,314
|
|
$
|
1,912,029
|
|
|
Wells Fargo Advantage Dow Jones Target 2025 Fund
|
$
|
1,145,104
|
|
$
|
2,056,156
|
|
|
Wells Fargo Advantage Dow Jones Target 2030 Fund
|
$
|
1,381,395
|
|
$
|
1,548,433
|
|
|
Wells Fargo Advantage Dow Jones Target 2035 Fund
|
$
|
273,369
|
|
$
|
784,835
|
|
|
Wells Fargo Advantage Dow Jones Target 2040 Fund
|
$
|
1,014,142
|
|
$
|
1,022,635
|
|
|
Wells Fargo Advantage Dow Jones Target 2045 Fund
|
$
|
74,494
|
|
$
|
335,205
|
|
|
Wells Fargo Advantage Dow Jones Target 2050 Fund
|
$
|
518,688
|
|
$
|
789,391
|
|
General.
Each Fund's Advisory Agreement will continue in effect provided the continuance is approved annually (i) by the holders of
a majority of the respective Fund's outstanding voting securities or by the Board and (ii) by a majority of the Trustees who
are not parties to the Advisory Agreement or "interested persons" (as defined under the 1940 Act) of any such party. A Fund's
Advisory Agreement may be terminated on 60 days' written notice by either party and will terminate automatically if assigned.
Sub-Adviser
Funds Management has engaged Global Index Advisors, Inc. ("GIA") to serve as a sub-adviser to the Funds (the "Sub-Adviser").
Subject to the direction of the Trust's Board and the overall supervision and control of Funds Management and the Trust, the
Sub-Adviser provides day-to-day portfolio management services to the Funds. Funds Management may, from time to time and with
the approval of the Board of Trustees, allocate and reallocate services provided by and fees paid to GIA.
For providing investment sub-advisory services to each Fund, the Sub-Adviser is entitled to receive monthly fees at the annual
rates indicated below of each Fund's average daily net assets. These fees may be paid by Funds Management or directly by a
Fund. If a sub-advisory fee is paid directly by a Fund, the compensation paid to Funds Management for advisory fees will be
reduced accordingly.
|
|
Sub-Advisory Fee
|
|
|
First $300 million
|
0.06%
|
|
|
Next $200 million
|
0.05%
|
|
|
Over $500 million
|
0.04%
|
|
Unaffiliated Sub-Advisers.
The Funds listed below paid the following aggregate dollar amount of sub-advisory fees to the following unaffiliated sub-advisers
for the fiscal periods indicated below:
|
Sub-Advisory Fees Paid to GIA
|
|
Fiscal Period Ended
|
Fees Paid
|
|
Fees Waived/Reimbursed
|
|
|
February 28, 2013
|
|
|
|
|
|
Target Today Fund
|
$468,377
|
|
$0
|
|
|
Target 2010 Fund
|
$421,996
|
|
$0
|
|
|
Target 2015 Fund
|
$432,913
|
|
$0
|
|
|
Target 2020 Fund
|
$1,031,944
|
|
$0
|
|
|
Target 2025 Fund
|
$870,506
|
|
$0
|
|
|
Target 2030 Fund
|
$900,715
|
|
$0
|
|
|
Target 2035 Fund
|
$448,248
|
|
$0
|
|
|
Target 2040 Fund
|
$626,914
|
|
$0
|
|
|
Target 2045 Fund
|
$256,058
|
|
$0
|
|
|
Target 2050 Fund
|
$411,798
|
|
$0
|
|
|
Target 2055 Fund
|
$13,296
|
|
$0
|
|
|
February 29, 2012
|
|
|
|
|
|
Target Today Fund
|
$429,423
|
|
$0
|
|
|
Target 2010 Fund
|
$412,732
|
|
$0
|
|
|
Target 2015 Fund
|
$351,333
|
|
$0
|
|
|
Target 2020 Fund
|
$901,139
|
|
$0
|
|
|
Target 2025 Fund
|
$756,745
|
|
$0
|
|
|
Target 2030 Fund
|
$764,331
|
|
$0
|
|
|
Target 2035 Fund
|
$348,572
|
|
$0
|
|
|
Target 2040 Fund
|
$535,105
|
|
$0
|
|
|
Target 2045 Fund
|
$178,785
|
|
$0
|
|
|
Target 2050 Fund
|
$353,761
|
|
$0
|
|
|
Target 2055 Fund
1
|
$1,249
|
|
$0
|
|
|
February 28, 2011
|
|
|
|
|
|
Target Today Fund
|
$303,028
|
|
$0
|
|
|
Target 2010 Fund
|
$348,728
|
|
$0
|
|
|
Target 2015 Fund
|
$259,876
|
|
$0
|
|
|
Target 2020 Fund
|
$705,208
|
|
$0
|
|
|
Target 2025 Fund
|
$632,621
|
|
$0
|
|
|
Target 2030 Fund
|
$580,920
|
|
$0
|
|
|
Target 2035 Fund
|
$240,681
|
|
$0
|
|
|
Target 2040 Fund
|
$417,027
|
|
$0
|
|
|
Target 2045 Fund
|
$98,328
|
|
$0
|
|
|
Target 2050 Fund
|
$289,454
|
|
$0
|
|
|
1
|
For the period from June 30, 2011 until February 29, 2012. (The Fund commenced operations on June 30, 2011.)
|
Sub-Advisers - Master Portfolios
Funds Management has engaged SSgA Funds Management, Inc. ("SSgA FM") and Wells Capital Management, Incorporated ("Wells Capital
Management" or "WCM") to serve as sub-advisers to the master portfolios of Master Trust in which the Funds invest, as listed
in the chart below. Subject to the direction of the Master Trust's Board, and the overall supervision and control of Funds
Management and the Master Trust, SSgA FM and Wells Capital Management make recommendations regarding the investment and reinvestment
of the Master Portfolios' assets. SSgA FM and Wells Capital Management furnish to Funds Management periodic reports on the
investment activity and performance of the Master Portfolios. SSgA FM and Wells Capital Management also furnish such additional
reports and information as Funds Management and the Master Trust's Board and officers may reasonably request. Funds Management
may, from time to time and in its sole discretion, allocate and reallocate services provided by and fees paid to Wells Capital
Management. The sub-advisory fees currently charged to the Master Portfolios in which the Funds invest are listed in the chart
below.
|
Portfolio
|
Sub-Adviser
|
|
|
|
Sub-Advisory Fee
|
|
|
Diversified Stock Portfolio
|
SSgA FM
|
|
First $500 million
|
|
0.070%
|
|
|
|
|
|
Next $1.5 billion
|
|
0.055%
|
|
|
|
|
|
Next $2 billion
|
|
0.045%
|
|
|
|
|
|
Next $2 billion
|
|
0.035%
|
|
|
|
|
|
Over $6 billion
|
|
0.025%
|
|
|
Diversified Fixed Income Portfolio
|
SSgA FM
|
|
First $500 million
|
|
0.070%
|
|
|
|
|
|
Next $1.5 billion
|
|
0.055%
|
|
|
|
|
|
Next $2 billion
|
|
0.045%
|
|
|
|
|
|
Next $2 billion
|
|
0.035%
|
|
|
|
|
|
Over $6 billion
|
|
0.025%
|
|
|
Short-Term Investment Portfolio
|
Wells Capital Management
|
|
First $1 billion
|
|
0.05%
|
|
|
|
|
|
Next $2 billion
|
|
0.03%
|
|
|
|
|
|
Next $3 billion
|
|
0.02%
|
|
|
|
|
|
Over $6 billion
|
|
0.01%
|
|
Portfolio Managers
The following information supplements, and should be read in conjunction with, the section in each Prospectus entitled "Portfolio
Managers." The information in this section is provided as of February 28, 2013, the most recent fiscal year end for the Funds
managed by the portfolio managers listed below (each a "Portfolio Manager" and together, the "Portfolio Managers"). The Portfolio
Managers manage the investment activities of the Funds on a day-to-day basis as follows.
|
Sub-Adviser
|
Portfolio Managers
|
|
|
GIA
|
Rodney H. Alldredge
James P. Lauder
Paul T. Torregrosa, PhD
|
|
Management of Other Accounts
.
The following table(s) provide information relating to other accounts managed by the Portfolio Manager(s). The table(s) do
not include the Funds or any personal brokerage accounts of the Portfolio Manager(s) and their families.
|
Rodney H. Alldredge
|
Registered Investment Companies
|
|
|
|
Number of Accounts
|
0
|
|
|
Total Assets Managed
|
$0
|
|
|
Number of Accounts Subject to Performance Fee
|
0
|
|
|
Assets of Accounts Subject to Performance Fee
|
$0
|
|
|
Other Pooled Investment Vehicles
|
|
|
|
Number of Accounts
|
17
|
|
|
Total Assets Managed
|
$4.14 billion
|
|
|
Number of Accounts Subject to Performance Fee
|
0
|
|
|
Assets of Accounts Subject to Performance Fee
|
$0
|
|
|
Other Accounts
|
|
|
|
Number of Accounts
|
2
|
|
|
Total Assets Managed
|
$11.96 million
|
|
|
Number of Accounts Subject to Performance Fee
|
0
|
|
|
Assets of Accounts Subject to Performance Fee
|
$0
|
|
James P. Lauder
|
Registered Investment Companies
|
|
|
|
Number of Accounts
|
0
|
|
|
Total Assets Managed
|
$0
|
|
|
Number of Accounts Subject to Performance Fee
|
0
|
|
|
Assets of Accounts Subject to Performance Fee
|
$0
|
|
|
Other Pooled Investment Vehicles
|
|
|
|
Number of Accounts
|
17
|
|
|
Total Assets Managed
|
$4.14 billion
|
|
|
Number of Accounts Subject to Performance Fee
|
0
|
|
|
Assets of Accounts Subject to Performance Fee
|
$0
|
|
|
Other Accounts
|
|
|
|
Number of Accounts
|
2
|
|
|
Total Assets Managed
|
$11.96 million
|
|
|
Number of Accounts Subject to Performance Fee
|
0
|
|
|
Assets of Accounts Subject to Performance Fee
|
$0
|
|
Paul T. Torregrosa, PhD
|
Registered Investment Companies
|
|
|
|
Number of Accounts
|
0
|
|
|
Total Assets Managed
|
$0
|
|
|
Number of Accounts Subject to Performance Fee
|
0
|
|
|
Assets of Accounts Subject to Performance Fee
|
$0
|
|
|
Other Pooled Investment Vehicles
|
|
|
|
Number of Accounts
|
17
|
|
|
Total Assets Managed
|
$4.14 billion
|
|
|
Number of Accounts Subject to Performance Fee
|
0
|
|
|
Assets of Accounts Subject to Performance Fee
|
$0
|
|
|
Other Accounts
|
|
|
|
Number of Accounts
|
2
|
|
|
Total Assets Managed
|
$11.96 million
|
|
|
Number of Accounts Subject to Performance Fee
|
0
|
|
|
Assets of Accounts Subject to Performance Fee
|
$0
|
Material Conflicts of Interest.
The Portfolio Managers face inherent conflicts of interest in their day-to-day management of the Funds and other accounts
because the Funds may have different investment objectives, strategies and risk profiles than the other accounts managed by
the Portfolio Managers. For instance, to the extent that the Portfolio Managers manage accounts with different investment
strategies than the Funds, they may from time to time be inclined to purchase securities, including initial public offerings,
for one account but not for the Funds. Additionally, some of the accounts managed by the Portfolio Managers may have different
fee structures, including performance fees, which are or have the potential to be higher or lower, in some cases significantly
higher or lower, than the fees paid by the Funds. The differences in fee structures may provide an incentive to the Portfolio
Managers to allocate more favorable trades to the higher-paying accounts.
To minimize the effects of these inherent conflicts of interest, the Sub-Adviser has adopted and implemented policies and
procedures, including brokerage and trade allocation policies and procedures, that it believes address the potential conflicts
associated with managing portfolios for multiple clients and ensures that all clients are treated fairly and equitably. Additionally,
the Sub-Adviser minimizes inherent conflicts of interest by assigning the Portfolio Managers to accounts having similar objectives.
Accordingly, security block purchases are allocated to all accounts with similar objectives in proportionate weightings. Furthermore,
the Sub-Adviser has adopted a Code of Ethics under Rule 17j-1 of the 1940 Act and Rule 204A-1 under the Investment Advisers
Act of 1940 (the "Advisers Act") to address potential conflicts associated with managing the Funds and any personal accounts
the Portfolio Managers may maintain.
GIA
.
GIA, as a fiduciary, has an affirmative duty of care, loyalty, honesty, and good faith to act in the best interests of its
clients. Compliance with this duty can be achieved by trying to avoid conflicts of interest and by fully disclosing all material
facts concerning any conflict that does arise with respect to any client. None of the Portfolio Managers of GIA have experienced
material conflicts of interest in managing multiple accounts.
Conflicts of interest may arise where the firm or its supervised persons have reason to favor the interests of one client
over another client (e.g., larger accounts over smaller accounts, accounts compensated by lower ticket charges to the Investment
Adviser Representative over accounts not so compensated, accounts in which employees have made material personal investments,
accounts of close friends or relatives of supervised persons). GIA specifically prohibits inappropriate favoritism of one
client over another client that would constitute a breach of fiduciary duty.
GIA prohibits access persons from using knowledge about pending or currently considered securities transactions for clients
to profit personally, directly or indirectly, as a result of such transactions. In order to avoid any potential conflict of
interest between GIA and its clients, securities transactions for the accounts of access persons in the same security as that
purchased/sold for advisory accounts are restricted by GIA's Code of Ethics.
GIA specifically prohibits supervised persons from knowingly selling to or purchasing from a client any security or other
property, except securities issued by the client.
Compensation.
The Portfolio Managers were compensated by the Sub-Adviser from the fees the Funds Management paid the Sub-Adviser using
the following compensation structure:
GIA Compensation
.
As Portfolio Managers of index products, compensation for the Portfolio Managers is not based on performance of the Funds.
Salaries are fixed and based on the roles and responsibilities within GIA. Bonuses may be awarded based on contributions to
GIA meeting its corporate goals for asset growth and profitability. The Portfolio Managers also have significant ownership
in GIA. Dividends are based on profitability of the company.
Beneficial Ownership in the Funds.
The following table shows for each Portfolio Manager the dollar value of Fund equity securities beneficially owned by the
Portfolio Manager, stated as one of the following ranges:
$0;
$1 - $10,000;
$10,001 - $50,000;
$50,001 - $100,000;
$100,001 - $500,000;
$500,001 - $1,000,000; and
over $1,000,000.
|
Portfolio Manager Fund Holdings
|
|
|
|
Portfolio Manager
|
Fund
|
Dollar Range of Holdings in Fund
|
|
Rodney H. Alldredge
|
Target Today Fund
Target 2010 Fund
Target 2015 Fund
Target 2020 Fund
Target 2025 Fund
Target 2030 Fund
Target 2035 Fund
Target 2040 Fund
Target 2045 Fund
Target 2050 Fund
Target 2055 Fund
|
$0
$0
$0
$0
$0
$0
$0
$0
$0
$50,001-$100,000
$0
|
|
James P. Lauder
|
Target Today Fund
Target 2010 Fund
Target 2015 Fund
Target 2020 Fund
Target 2025 Fund
Target 2030 Fund
Target 2035 Fund
Target 2040 Fund
Target 2045 Fund
Target 2050 Fund
Target 2055 Fund
|
$0
$0
$0
$0
$0
$0
$0
$0
$0
$50,001-$100,000
$0
|
|
Paul T. Torregrosa, PhD
|
Target Today Fund
Target 2010 Fund
Target 2015 Fund
Target 2020 Fund
Target 2025 Fund
Target 2030 Fund
Target 2035 Fund
Target 2040 Fund
Target 2045 Fund
Target 2050 Fund
Target 2055 Fund
|
$0
$0
$0
$0
$0
$0
$0
$0
$0
$100,001-$500,000
$0
|
Administrator
The Trust has retained Funds Management, the adviser for the Funds, located at 525 Market Street, 12th Floor, San Francisco,
CA 94105, to also serve as administrator on behalf of the Funds pursuant to an Administration Agreement. Under the Administration
Agreement with the Trust, Funds Management provides, among other things: (i) general supervision of the Funds' operations,
including communication, coordination, and supervision services with regard to the Funds' transfer agent, custodian, fund
accountant and other service organizations that render record-keeping or shareholder communication services; (ii) coordination
of the preparation and filing of reports and other information materials regarding the Funds, including prospectuses, proxies
and other shareholder communications; (iii) development and implementation of procedures for monitoring compliance with regulatory
requirements and compliance with the Funds' investment objectives, policies and restrictions; and (iv) any other administrative
services reasonably necessary for the operation of the Funds other than those services that are provided by the Funds' transfer
agent, custodian, and fund accountant. Funds Management also furnishes office space and certain facilities required for conducting
the Funds' business together with ordinary clerical and bookkeeping services.
In addition, Funds Management has agreed to pay all of the Funds' fees and expenses for services provided by the Funds' transfer
agent and various sub-transfer agents and omnibus account servicers and record-keepers out of the fees it receives as administrator.
Because the administrative services provided by Funds Management vary by class, the fees payable to Funds Management also
vary by class. For providing administrative services, including paying the Funds' fees and expenses for services provided
by the Funds' transfer agent and various sub-transfer agents and omnibus account servicers and record-keepers, Funds Management
is entitled to receive an annual fee at the rates indicated below, as a percentage of each Fund's average daily net assets:
|
|
|
Fund-Level Administrator Fee
|
|
Class-Level Administrator Fee
|
|
Total Administrator Fee
|
|
|
Share Class
|
|
Average Daily Net Assets
|
|
|
% of Average Daily
Net Assets
|
|
% of Average Daily Net Assets
|
|
Average Daily Net Assets
|
|
% of Average Daily
Net Assets
|
|
|
R6
|
|
First $5 billion
Next $5 billion
Over $10 billion
|
|
|
0.05%
0.04%
0.03%
|
|
0.03%
|
|
First $5 billion
Next $5 billion
Over $10 billion
|
|
0.08%
0.07%
0.06%
|
|
Administrative Fees Paid
. Below are the aggregate administrative fees paid by the Fund and the aggregate administrative fees waived by the adviser
for the last three fiscal years.
|
Administration Service Fees Paid
|
|
Fund/Fiscal Year or Period
|
Administrative Service Fees Paid
|
|
Administrative Service Fees Waived
|
|
|
February 28, 2013
|
|
|
|
|
|
|
|
Wells Fargo Advantage Dow Jones Target Today Fund
|
$
|
1,605,030
|
|
$
|
0
|
|
|
Wells Fargo Advantage Dow Jones Target 2010 Fund
|
$
|
1,383,779
|
|
$
|
0
|
|
|
Wells Fargo Advantage Dow Jones Target 2015 Fund
|
$
|
1,627,411
|
|
$
|
0
|
|
|
Wells Fargo Advantage Dow Jones Target 2020 Fund
|
$
|
3,729,525
|
|
$
|
0
|
|
|
Wells Fargo Advantage Dow Jones Target 2025 Fund
|
$
|
3,422,222
|
|
$
|
0
|
|
|
Wells Fargo Advantage Dow Jones Target 2030 Fund
|
$
|
3,209,951
|
|
$
|
0
|
|
|
Wells Fargo Advantage Dow Jones Target 2035 Fund
|
$
|
1,878,928
|
|
$
|
0
|
|
|
Wells Fargo Advantage Dow Jones Target 2040 Fund
|
$
|
2,203,813
|
|
$
|
0
|
|
|
Wells Fargo Advantage Dow Jones Target 2045 Fund
|
$
|
952,459
|
|
$
|
0
|
|
|
Wells Fargo Advantage Dow Jones Target 2050 Fund
|
$
|
1,182,412
|
|
$
|
0
|
|
|
Wells Fargo Advantage Dow Jones Target 2055 Fund
|
$
|
0
|
|
$
|
30,963
|
|
|
February 29, 2012
|
|
|
|
|
|
|
|
Wells Fargo Advantage Dow Jones Target Today Fund
|
$
|
1,443,502
|
|
$
|
0
|
|
|
Wells Fargo Advantage Dow Jones Target 2010 Fund
|
$
|
1,341,684
|
|
$
|
0
|
|
|
Wells Fargo Advantage Dow Jones Target 2015 Fund
|
$
|
1,276,767
|
|
$
|
0
|
|
|
Wells Fargo Advantage Dow Jones Target 2020 Fund
|
$
|
3,214,578
|
|
$
|
0
|
|
|
Wells Fargo Advantage Dow Jones Target 2025 Fund
|
$
|
2,887,115
|
|
$
|
0
|
|
|
Wells Fargo Advantage Dow Jones Target 2030 Fund
|
$
|
2,672,414
|
|
$
|
0
|
|
|
Wells Fargo Advantage Dow Jones Target 2035 Fund
|
$
|
1,421,592
|
|
$
|
0
|
|
|
Wells Fargo Advantage Dow Jones Target 2040 Fund
|
$
|
1,855,124
|
|
$
|
0
|
|
|
Wells Fargo Advantage Dow Jones Target 2045 Fund
|
$
|
637,268
|
|
$
|
0
|
|
|
Wells Fargo Advantage Dow Jones Target 2050 Fund
|
$
|
965,969
|
|
$
|
0
|
|
|
Wells Fargo Advantage Dow Jones Target 2055 Fund
|
$
|
0
|
|
$
|
2,964
|
|
|
February 28, 2011
|
|
|
|
|
|
|
|
Wells Fargo Advantage Dow Jones Target Today Fund
|
$
|
991,450
|
|
$
|
0
|
|
|
Wells Fargo Advantage Dow Jones Target 2010 Fund
|
$
|
1,095,605
|
|
$
|
0
|
|
|
Wells Fargo Advantage Dow Jones Target 2015 Fund
|
$
|
890,849
|
|
$
|
0
|
|
|
Wells Fargo Advantage Dow Jones Target 2020 Fund
|
$
|
2,483,722
|
|
$
|
0
|
|
|
Wells Fargo Advantage Dow Jones Target 2025 Fund
|
$
|
2,294,100
|
|
$
|
0
|
|
|
Wells Fargo Advantage Dow Jones Target 2030 Fund
|
$
|
1,990,466
|
|
$
|
0
|
|
|
Wells Fargo Advantage Dow Jones Target 2035 Fund
|
$
|
943,194
|
|
$
|
0
|
|
|
Wells Fargo Advantage Dow Jones Target 2040 Fund
|
$
|
1,429,740
|
|
$
|
0
|
|
|
Wells Fargo Advantage Dow Jones Target 2045 Fund
|
$
|
359,390
|
|
$
|
0
|
|
|
Wells Fargo Advantage Dow Jones Target 2050 Fund
|
$
|
751,925
|
|
$
|
0
|
|
Distributor
Wells Fargo Funds Distributor, LLC ("Funds Distributor"), an affiliate of Funds Management located at 525 Market Street, San
Francisco, California 94105, serves as the distributor to the Funds.
Custodian and Fund Accountant
State Street Bank and Trust Company ("State Street"), located at State Street Financial Center, One Lincoln Street Boston,
Massachusetts 02111, acts as Custodian and fund accountant for the Funds. As Custodian, State Street, among other things,
maintains a custody account or accounts in the name of each Fund, handles the receipt and delivery of securities, selects
and monitors foreign sub custodians as the Fund's global custody manager, determines income and collects interest on each
Fund's investments and maintains certain books and records. As fund accountant, State Street is responsible for calculating
each Fund's daily net asset value per share and for maintaining its portfolio and general accounting records. For its services,
State Street is entitled to receive certain transaction fees, asset-based fees and out-of-pocket costs, except that for the
Funds custody charges are assessed at the master portfolio level only.
Transfer and Distribution Disbursing Agent
Boston Financial Data Services, Inc. ("BFDS"), located at Two Thousand Crown Colony Drive, Quincy, Massachusetts 02169, acts
as transfer and distribution disbursing agent for the Funds. For providing such services, BFDS is entitled to receive fees
from the Administrator.
Underwriting Commissions
The Distributor serves as the principal underwriter distributing securities of the Funds on a continuous basis.
For the fiscal periods listed below, the aggregate amounts of underwriting commissions paid to and retained by the Distributor
are as follows:
|
Underwriting Commissions
|
|
Fund/Fiscal Year End
|
|
|
Aggregate Total Underwriting Commissions
|
|
Underwriting Commissions Retained
|
|
|
February 28, 2013
|
|
|
|
|
|
|
|
Target Today Fund
|
|
|
$662
|
|
$606
|
|
|
Target 2010 Fund
|
|
|
$1,471
|
|
$640
|
|
|
Target 2015 Fund
|
|
|
$22
|
|
$22
|
|
|
Target 2020 Fund
|
|
|
$1,855
|
|
$1,151
|
|
|
Target 2025 Fund
|
|
|
$678
|
|
$678
|
|
|
Target 2030 Fund
|
|
|
$1,452
|
|
$1,266
|
|
|
Target 2035 Fund
|
|
|
$8
|
|
$8
|
|
|
Target 2040 Fund
|
|
|
$3,712
|
|
$2,905
|
|
|
Target 2045 Fund
|
|
|
$0
|
|
$0
|
|
|
Target 2050 Fund
|
|
|
$0
|
|
$0
|
|
|
Target 2055 Fund
|
|
|
$0
|
|
$0
|
|
|
February 29, 2012
|
|
|
|
|
|
|
|
Target Today Fund
|
|
|
$2,808
|
|
$2,705
|
|
|
Target 2010 Fund
|
|
|
$1,591
|
|
$1,310
|
|
|
Target 2015 Fund
|
|
|
$0
|
|
$0
|
|
|
Target 2020 Fund
|
|
|
$3,288
|
|
$1,712
|
|
|
Target 2025 Fund
|
|
|
$0
|
|
$0
|
|
|
Target 2030 Fund
|
|
|
$1,268
|
|
$1,268
|
|
|
Target 2035 Fund
|
|
|
$0
|
|
$0
|
|
|
Target 2040 Fund
|
|
|
$6,417
|
|
$4,718
|
|
|
Target 2045 Fund
|
|
|
$0
|
|
$0
|
|
|
Target 2050 Fund
|
|
|
$0
|
|
$0
|
|
|
Target 2055 Fund
1
|
|
|
$0
|
|
$0
|
|
|
February 28, 2011
|
|
|
|
|
|
|
|
Target Today Fund
|
|
|
$675
|
|
$675
|
|
|
Target 2010 Fund
|
|
|
$1,044
|
|
$1,044
|
|
|
Target 2015 Fund
|
|
|
$0
|
|
$0
|
|
|
Target 2020 Fund
|
|
|
$1,737
|
|
$728
|
|
|
Target 2025 Fund
|
|
|
$0
|
|
$0
|
|
|
Target 2030 Fund
|
|
|
$560
|
|
$178
|
|
|
Target 2035 Fund
|
|
|
$0
|
|
$0
|
|
|
Target 2040 Fund
|
|
|
$2,732
|
|
$2,391
|
|
|
Target 2045 Fund
|
|
|
$0
|
|
$0
|
|
|
Target 2050 Fund
|
|
|
$0
|
|
$0
|
|
|
1
|
For the period from June 30, 2011 until February 29, 2012. (The Fund commenced operations on June 30, 2011.)
|
Code of Ethics
The Fund Complex, the Adviser, the Distributor and the Sub-Adviser each has adopted a code of ethics which contains policies
on personal securities transactions by "access persons" as defined in each of the codes. These policies comply with Rule 17j-1
under the 1940 Act and Rule 204A-1 under the Advisers Act, as applicable. Each code of ethics, among other things, permits
access persons to invest in certain securities, subject to various restrictions and requirements. More specifically, each
code of ethics either prohibits its access persons from purchasing or selling securities that may be purchased or held by
a Fund or permits such access persons to purchase or sell such securities, subject to certain restrictions. Such restrictions
do not apply to purchases or sales of certain types of securities, including shares of open-end investment companies that
are unaffiliated with the Wells Fargo Advantage Funds family, money market instruments and certain U.S. Government securities.
To facilitate enforcement, the codes of ethics generally require that an access person, other than "disinterested" directors
or trustees, submit reports to a designated compliance person regarding transactions involving securities which are eligible
for purchase by a Fund. The codes of ethics for the Fund Complex, the Adviser, the Distributor and the Sub-Adviser are on
public file with, and are available from, the SEC.
DETERMINATION OF NET ASSET VALUE
The NAV per share for each Fund is determined as of the close of regular trading (generally 4:00 p.m. (Eastern time)) on each
day the New York Stock Exchange ("NYSE") is open for business. Expenses and fees, including advisory fees, are accrued daily
and are taken into account for the purpose of determining the NAV of each Fund's shares.
Each Fund's investments are generally valued at current market prices. Securities are generally valued based on the last sales
price during the regular trading session if the security trades on an exchange ("closing price"). Securities that are not
traded primarily on an exchange generally are valued using latest quoted bid prices obtained by an independent pricing service.
Securities listed on the Nasdaq Stock Market, Inc., however, are valued at the Nasdaq Official Closing Price ("NOCP"), and
if no NOCP is available, then at the last reported sales price. A Fund is required to depart from these general valuation
methods and use fair value pricing methods to determine the value of certain investments if it is determined that the closing
price or the latest quoted bid price of a security, including securities that trade primarily on a foreign exchange, does
not accurately reflect its current value when the Fund calculates its NAV. In addition, we also use fair value pricing to
determine the value of investments in securities and other assets, including illiquid securities, for which current market
quotations are not readily available. The closing price or the latest quoted bid price of a security may not reflect its current
value if, among other things, a significant event occurs after the closing price or latest quoted bid price but before a Fund
calculates its NAV that materially affects the value of the security. We use various criteria, including a systematic evaluation
of U.S. market moves after the close of foreign markets, in deciding whether a foreign security's market price is still reliable
and, if not, what fair market value to assign to the security. With respect to any portion of a Fund's assets that are invested
in other mutual funds, the Fund's NAV is calculated based upon the net asset values of the other mutual funds in which the
Fund invests, and the prospectuses for those companies explain the circumstances under which those companies will use fair
value pricing and the effects of using fair value pricing. In light of the judgment involved in fair value decisions, there
can be no assurance that a fair value assigned to a particular security is accurate. Such fair value pricing may result in
NAVs that are higher or lower than NAVs based on the closing price or latest quoted bid price.
Money market instruments and debt instruments maturing in 60 days or less generally are valued at amortized cost. Futures
contracts will be marked to market daily at their respective settlement prices determined by the relevant exchange. Prices
may be furnished by a reputable independent pricing service. Prices provided by an independent pricing service may be determined
without exclusive reliance on quoted prices and may take into account appropriate factors such as institutional-size trading
in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market
data.
For a Fund that invests directly in foreign securities, portfolio securities are generally valued on the basis of quotations
from the primary market in which they are traded. However, if, in the judgment of the Board, a security's value has been materially
affected by events occurring after the close of the exchange or the market on which the security is principally traded (for
example, a foreign exchange or market), that security may be valued by another method that the Board believes accurately reflects
fair value. A security's valuation may differ depending on the method used to determine its value.
ADDITIONAL PURCHASE AND REDEMPTION INFORMATION
Shares of the Funds may be purchased on any day a Fund is open for business. Generally, each Fund is open for business each
day the New York Stock Exchange is open for trading (a "Business Day"). The New York Stock Exchange is currently closed in
observance of New Year's Day, Martin Luther King Jr. Day, Washington's Birthday, Good Friday, Memorial Day, Independence Day,
Labor Day, Thanksgiving Day, and Christmas Day (each a "Holiday"). When any Holiday falls on a weekend, the NYSE typically
is closed on the weekday immediately before or after such Holiday.
Purchase orders for a Fund received before such Fund's NAV calculation time, generally are processed at such time on that
Business Day. Purchase orders received after a Fund's NAV calculation time generally are processed at such Fund's NAV calculation
time on the next Business Day. Selling Agents may establish earlier cut-off times for processing your order. Requests received
by a Selling Agent after the applicable cut-off time will be processed on the next Business Day. On any day the NYSE closes
early, the Funds will close early. On these days, the NAV calculation time and the distribution, purchase and redemption cut-off
times for the Funds may be earlier than their stated NAV calculation time described above.
Payment for shares may, in the discretion of the Adviser, be made in the form of securities that are permissible investments
for the Fund. For further information about this form of payment, please contact the Distributor. In connection with an in-kind
securities payment, the Funds will require, among other things, that the securities be valued on the day of purchase in accordance
with the pricing methods used by a Fund and that such Fund receives satisfactory assurances that (i) it will have good and
marketable title to the securities received by it; (ii) that the securities are in proper form for transfer to the Fund; and
(iii) adequate information will be provided concerning the basis and other matters relating to the securities.
Each Fund reserves the right to reject any purchase orders, and under the 1940 Act, may suspend the right of redemption or
postpone the date of payment upon redemption for any period during which the NYSE is closed (other than customary weekend
and holiday closings), or during which trading is restricted, or during which, as determined by SEC rule, regulation or order,
an emergency exists as a result of which disposal or valuation of portfolio securities is not reasonably practicable, or for
such periods as the SEC may permit. The Fund may also redeem shares involuntarily or make payment for redemption in securities
or other property if it appears appropriate to do so in light of the Fund's responsibilities under the 1940 Act. In addition,
the Fund may redeem shares involuntarily to reimburse the Fund for any losses sustained by reason of the failure of a shareholder
to make full payment for shares purchased or to collect any charge relating to a transaction effected for the benefit of a
shareholder which is applicable to shares of the Fund as provided from time to time in the Prospectuses.
Purchases and Redemptions for Existing Wells Fargo Advantage Funds Account Holders Via the Internet
. All shareholders with an existing Wells Fargo Advantage Funds account may purchase additional shares of funds or classes
of funds within the Wells Fargo Advantage family of funds that they already own and redeem existing shares via the Internet.
For purchases, such account holders must have a bank account linked to their Wells Fargo Advantage Funds account. Redemptions
may be deposited into a linked bank account or mailed via check to the shareholder's address of record. Internet account access
is available for institutional clients. Shareholders should contact Investor Services at
1-800-222-8222
or log on at wellsfargoadvantagefunds.com for further details. Shareholders who hold their shares in a brokerage account
should contact their selling agent.
Extraordinary Circumstances Affecting Redemptions
. Under the extraordinary circumstances discussed under Section 22(e) under the 1940 Act, we may suspend the right of redemption
or postpone the date of payment of a redemption for longer than seven days for each Fund. Generally, those extraordinary circumstances
are when: (i) the NYSE is closed or trading thereon is restricted; (ii) an emergency exists which makes the disposal by a
Fund of securities it owns, or the fair determination of the value of the Fund's net assets not reasonable or practical; or
(iii) the SEC, by order, permits the suspension of the right of redemption for the protection of shareholders.
Purchases and Redemptions Through Brokers and/or Their Affiliates
. A broker may charge transaction fees on the purchase and/or sale of Fund shares in addition to those fees described in the
Prospectuses in the Summary of Expenses. The Trust has authorized one or more brokers to receive on its behalf purchase and
redemption orders, and such brokers are authorized to designate other intermediaries to receive purchase and redemption orders
on the Trust's behalf. The Trust will be deemed to have received a purchase or redemption order for Fund shares when an authorized
broker or, if applicable, a broker's authorized designee, receives the order, and such orders will be priced at the Fund's
NAV next calculated after they are received by the authorized broker or the broker's designee.
Waiver of Minimum Initial Investment Amount for Investor Class Shares for Eligible Investors
. An eligible investor (as defined below) may purchase Investor Class shares of the Wells Fargo Advantage Funds without meeting
the minimum initial investment amount if the eligible investor participates in a $50 monthly automatic investment purchase
plan. Eligible investors include: Current and retired employees, directors/trustees and officers of: (i) Wells Fargo Advantage
Funds (including any predecessor funds) and (ii) Wells Fargo & Company and its affiliates; and Family members, as defined
in the prospectus, of any of the above.
Reduced Sales Charges for Former C&B Portfolio Shareholders
. Shareholders who purchased shares of the C&B Portfolios directly from the C&B Portfolios, and who became Wells Fargo Advantage
Fund shareholders in the reorganization between the Advisors' Inner Circle Fund and the Trust effective July 26, 2004 may
purchase Class A shares of any Wells Fargo Advantage Fund and any unnamed shares of WealthBuilder Portfolios at NAV. However,
beginning on July 1, 2013, this privilege will only be available to those former C&B Portfolio shareholders whose shares are
held directly with the Fund. Please see your account representative for details.
Reduced Sales Charges for Former Montgomery Fund Shareholders
. Former Montgomery Fund Class P and Class R shareholders who purchased their shares directly from the Montgomery Funds and
became Wells Fargo Advantage Fund shareholders in the reorganization, may purchase Class A shares of any Wells Fargo Advantage
Fund, and any unnamed shares of WealthBuilder Portfolios at NAV. However, beginning on July 1, 2013, this privilege will only
be available to those former Montgomery Fund shareholders whose shares are held directly with the Fund. Shareholders who did
not purchase such shares directly from the Montgomery Funds may purchase additional shares in the respective acquiring Wells
Fargo Advantage Fund at NAV. However, beginning on July 1, 2013, this privilege will only be available to those former Montgomery
Fund shareholders whose shares are held directly with the Fund.
Reduced Sales Charges for Certain Former Advisor Class Shareholders.
Investors who held Advisor Class shares of a Wells Fargo Advantage Fund at the close of business on June 20, 2008 (the "Eligibility
Time"), so long as the following conditions are met: (1) any purchases at NAV are limited to Class A shares of the same Fund
in which the investor held Advisor Class shares at the Eligibility Time; (2) share purchases are made in the same account
through which the investor held Advisor Class shares at the Eligibility Time; (3) the owner of the account remains the same
as the account owner at the Eligibility Time; and (4) following the Eligibility Time, the account maintains a positive account
balance at some time during a period of at least six months in length. Investors who held Advisor Class shares at the Eligibility
Time are also eligible to exchange their Class A shares for Class A shares of another Wells Fargo Advantage Fund without imposition
of any Class A sales charges and would be eligible to make additional purchases of Class A shares of such other Fund at NAV
in the account holding the shares received in exchange. The eligibility of such investors that hold Fund shares through an
account maintained by a financial institution is also subject to the following additional limitation. In the event that such
an investor's relationship with and/or the services such investor receives from the financial institution subsequently change,
such investor shall thereafter no longer be eligible to purchase Class A shares at NAV. Please consult with your financial
representative for further details.
Reduced Sales Charges for Certain Former Evergreen Fund Shareholders
. Former Evergreen Class IS shareholders who received Class A shares of a Fund as a result of a reorganization can continue
to purchase Class A shares of that Fund and any other Wells Fargo Advantage Fund purchased subsequently by exchange at NAV,
without paying the customary sales load, after which subsequent purchases of shares of the subsequent Fund may also be made
at NAV. However, beginning on July 31, 2012, this privilege will only be available to those former Evergreen Fund shareholders
whose shares are held directly with the Fund.
Former Evergreen Class R shareholders who received Class A shares of a Fund as a result of a reorganization can continue to
purchase Class A shares of that Fund and any other Wells Fargo Advantage Fund purchased subsequently by exchange at NAV, without
paying the customary sales load, after which subsequent purchases of shares of the subsequent Fund may also be made at NAV.
However, beginning on July 31, 2012, this privilege will only be available to those former Evergreen Fund shareholders whose
shares are held directly with the Fund.
Certain investors in acquired funds who became investors in the Evergreen Funds and subsequently became Wells Fargo Advantage
Fund shareholders in a reorganization, including former Class IS shareholders of Evergreen Strategic Value Fund and Evergreen
Limited Duration Fund, former Investor Class shareholders of Undiscovered Managers Funds, former shareholders of the GMO Global
Balanced Allocation Fund, the GMO Pelican Fund and America's Utility Fund, former shareholders of an Atlas Fund and shareholders
of record on October 12, 1990 (and members of their immediate families) in any series of the Salem Funds in existence on that
date, may purchase Class A shares of any Wells Fargo Advantage Fund, and any unnamed shares of WealthBuilder Portfolios at
NAV. However, beginning on July 1, 2013, this privilege will only be available to those former Evergreen Fund shareholders
whose shares are held directly with the Fund.
Reduced Sales Charges for Affiliated Funds
. Any affiliated fund that invests in a Wells Fargo Advantage Fund may purchase Class A shares of such Fund at NAV.
Reduced Sales Charges for Certain Holders of Class C Shares
. No CDSC is imposed on redemptions of Class C shares where a Fund did not pay a sales commission at the time of purchase.
Investors Eligible to Acquire Class B Shares
. Class B shares are closed to new investors and additional investments from existing shareholders, except that existing shareholders
of Class B shares may reinvest any distributions into Class B shares and exchange their Class B shares for Class B shares
of other Wells Fargo Advantage Funds (as permitted by current exchange privilege rules, except specified persons may acquire
Class B shares of a Fund in connection with the closing of a reorganization and except specified persons may acquire Class
B shares of a Fund in connection with the closing of a reorganization). No new or subsequent investments, including through
automatic investment plans, will be allowed in Class B shares of the Funds, except through a distribution reinvestment or
permitted exchange, or in connection with the closing of a reorganization.
Waiver of Contingent Deferred Sales Charge for certain Class B Shareholders
. For Class B shares purchased after May 18, 1999, for former Norwest Advantage Funds shareholders and after July 17, 1999 for
former Stagecoach Funds shareholders, for all Class B shares purchased after November 8, 1999, no CDSC is imposed on withdrawals
that meet both of the following circumstances:
■
withdrawals are made by participating in the Systematic Withdrawal Plan; and
■
withdrawals do not exceed 10% of your Fund assets (limit for Class B shares calculated annually based on your anniversary
date in the Systematic Withdrawal Plan).
Elimination of Minimum Initial Investment Amount for Administrator Class Shares for Eligible Investors.
An "Eligible Investor" (as defined below) may purchase Administrator Class shares of the Wells Fargo Advantage Funds without
meeting the minimum initial investment amount. Eligible Investors include:
■
Clients of sub-advisers to those Funds which offer an Administrator Class who are clients of such subadvisers at the time
of their purchase of such Administrator Class shares;
■
Clients of Wells Capital Management who are clients of Wells Capital Management at the time of their purchase of Administrator
Class shares; and
■
Clients of Wells Fargo Institutional Retirement Trust (IRT) who are clients of IRT at the time of their purchase of Administrator
Class shares.
Related shareholders or shareholder accounts may be aggregated in order to meet the minimum initial investment requirement
for Administrator Class shares. The following are examples of relationships that may qualify for aggregation:
■
Related business entities, including: (i) corporations and their subsidiaries; (ii) general and limited partners; and (iii)
other business entities under common ownership or control.
■
Shareholder accounts that share a common tax-id number.
■
Accounts over which the shareholder has individual or shared authority to buy or sell shares on behalf of the account (i.e.,
a trust account or a solely owned business account).
Any of the minimum initial investment waivers listed above may be modified or discontinued at any time.
Elimination of Minimum Initial Investment Amount for Institutional Class Shares for Eligible Investors.
An "Eligible Investor" (as defined below) may purchase Institutional Class shares of the Wells Fargo Advantage Funds without
meeting the minimum initial investment amount. Eligible Investors include:
■
Clients of sub-advisers to those Funds which offer an Institutional Class who are clients of such sub-advisers at the time
of their purchase of such Institutional Class shares;
■
Clients of Wells Capital Management who are clients of Wells Capital Management at the time of their purchase of Institutional
Class shares; and
■
Clients of Wells Fargo Institutional Retirement Trust (IRT) who are clients of IRT at the time of their purchase of Institutional
Class shares.
Related shareholders or shareholder accounts may be aggregated in order to meet the minimum initial investment requirement
for Institutional Class shares. The following are examples of relationships that may qualify for aggregation:
■
Related business entities, including: (i) corporations and their subsidiaries; (ii) general and limited partners; and (iii)
other business entities under common ownership or control.
■
Shareholder accounts that share a common tax-id number.
■
Accounts over which the shareholder has individual or shared authority to buy or sell shares on behalf of the account (i.e.,
a trust account or a solely owned business account).
Former Institutional Class shareholders of an Evergreen Fund (including former Class Y shareholders of an Evergreen Fund,
former SouthTrust shareholders and former Vestaur Securities Fund shareholders who became Institutional Class shareholders
of an Evergreen Fund) who received Institutional Class shares of a Wells Fargo Advantage Fund in connection with the reorganization
of their Evergreen Fund. Such investors may purchase Institutional Class shares at their former minimum investment amount.
Any of the minimum initial investment waivers listed above may be modified or discontinued at any time.
Waiver of Minimum Initial and Subsequent Investment Amounts for All Share Classes for Special Operational Accounts
. Shares of any and all share classes of the Wells Fargo Advantage Funds may be acquired in special operational accounts (as
defined below) without meeting the applicable minimum initial or subsequent investment amounts. Special operational accounts
are designated accounts held by Funds Management or its affiliate that are used exclusively for addressing operational matters
related to shareholder accounts, such as testing of account functions.
Compensation to Dealers and Shareholder Servicing Agents.
Set forth below is a list of the member firms of FINRA to which the Adviser, the Funds' Distributor or their affiliates made
payments out of their revenues in connection with the sale and distribution of shares of the Funds or for services to the
Funds and their shareholders in the year ending December 31, 2012 ("Additional Payments"). (Such payments are in addition
to any amounts paid to such FINRA firms in the form of dealer reallowances or fees for shareholder servicing or distribution.
The payments are discussed in further detail in the Prospectuses under the title "Compensation to Dealers and Shareholder
Servicing Agents"). Any additions, modifications, or deletions to the member firms identified in this list that have occurred
since December 31, 2012, are not reflected:
FINRA member firms
■
ADP Broker-Dealer, Inc.
■
Ameriprise Financial Services, Inc.
■
Barclays Capital, Inc.
■
BNY Mellon Capital Markets, LLC
■
Boenning & Scattergood, Inc.
■
Brown Brothers Harriman & Co.
■
Charles Schwab & Co., Inc.
■
Citigroup Global Markets, Inc.
■
DWS Investments Distributors, Inc.
■
Edward D. Jones & Co., L.P.
■
Fidelity Brokerage Services LLC
■
Goldman, Sachs & Co.
■
GWFS Equities, Inc.
■
Hartford Securities Distribution Company, Inc.
■
H.D. Vest Investment Securities, Inc.
■
Hewitt Financial Services, LLC
■
Hightower Securities, LLC
■
ING Investment Advisors LLC
■
ING Investments Distributor, LLC
■
Janney Montgomery Scott LLC
■
J.J.B. Hilliard, W. L. Lyons, LLC
■
J.P. Morgan Clearing Corp
■
Lazard Capital Markets LLC
■
Lincoln Investment Planning, Inc.
■
LPL Financial LLC
■
Merrill Lynch, Pierce, Fenner & Smith, Incorporated
■
Merriman Capital, Inc.
■
Mid Atlantic Capital Corporation
■
Morgan Keegan & Company, Inc.
■
Morgan Stanley Smith Barney LLC
■
MSCS Financial Services, LLC
■
Nationwide Investment Services, Corporation
■
Oppenheimer & Co. Inc.
■
Pershing LLC
■
PNC Capital Markets LLC
■
Prudential Investment Management Services, LLC
■
Raymond James & Associates, Inc.
■
Raymond James Financial Services, Inc.
■
RBC Capital Markets, LLC
■
Robert W. Baird & Co. Incorporated
■
Ross, Sinclaire & Associates, LLC
■
Securities America, Inc.
■
Security Distributors, Inc.
■
State Street Global Markets, LLC
■
Stifel, Nicolaus & Company, Incorporated
■
TD Ameritrade, Inc.
■
Treasury Curve, LLC
■
UBS Financial Services, Inc.
■
VALIC Financial Advisors, Inc.
■
Wells Fargo Advisors, LLC
■
Wells Fargo Securities, LLC
■
Wells Fargo Investments, LLC
In addition to member firms of FINRA, Additional Payments are also made to other selling and shareholder servicing agents,
and to affiliates of selling and shareholder servicing agents that sell shares of or provide services to the Funds and their
shareholders, such as banks, insurance companies and plan administrators. These firms are not included on the list above,
although they may be affiliated with companies on the above list.
Also not included on the list above are other subsidiaries of Wells Fargo & Company who may receive revenue from the Adviser,
the Funds' Distributor or their affiliates through intra-company compensation arrangements and for financial, distribution,
administrative and operational services.
PORTFOLIO TRANSACTIONS
The Trust has no obligation to deal with any broker-dealer or group of broker-dealers in the execution of transactions in
portfolio securities. Subject to the supervision of the Trust's Board and the supervision of the Adviser, the Sub-Advisers
are responsible for the Funds' portfolio decisions and the placing of portfolio transactions. In placing orders, it is the
policy of the Sub-Advisers to obtain the best overall results taking into account various factors, including, but not limited
to, the size and type of transaction involved; the broker-dealer's risk in positioning the securities involved; the nature
and character of the market for the security; the confidentiality, speed and certainty of effective execution required for
the transaction, the general execution and operational capabilities of the broker-dealer; the reputation, reliability, experience
and financial condition of the firm, the value and quality of the services rendered by the firm in this and other transactions;
and the reasonableness of the spread or commission. While the Sub-Advisers generally seek reasonably competitive spreads or
commissions, the Funds will not necessarily be paying the lowest spread or commission available.
Purchases and sales of equity securities on a securities exchange are effected through broker-dealers who charge a negotiated
commission for their services. Orders may be directed to any broker-dealer including, to the extent and in the manner permitted
by applicable law, affiliated broker-dealers. However, the Funds and Funds Management have adopted a policy pursuant to Rule
12b- 1(h) under the 1940 Act that prohibits the Funds from directing portfolio brokerage to brokers who sell Fund shares as
compensation for such selling efforts. In the over-the-counter market, securities are generally traded on a "net" basis with
broker-dealers acting as principal for their own accounts without a stated commission, although the price of the security
usually includes a profit to the broker-dealer. In underwritten offerings, securities are purchased at a fixed price that
includes an amount of compensation to the underwriter, generally referred to as the underwriter's concession or discount.
In placing orders for portfolio securities of the Fund, the Fund's Sub-Adviser is required to give primary consideration to
obtaining the most favorable price and efficient execution. This means that the Sub-Adviser will seek to execute each transaction
at a price and commission, if any, that provide the most favorable total cost or proceeds reasonably attainable in the circumstances.
Commission rates are established pursuant to negotiations with the broker-dealer based, in part, on the quality and quantity
of execution services provided by the broker-dealer and in the light of generally prevailing rates. Furthermore, the Adviser
oversees the trade execution procedures of the Sub-Adviser to ensure that such procedures are in place, that they are adhered
to, and that adjustments are made to the procedures to address ongoing changes in the marketplace.
The Sub-Adviser may, in circumstances in which two or more broker-dealers are in a position to offer comparable results for
a portfolio transaction, give preference to a broker-dealer that has provided statistical or other research services to the
Sub-Adviser. In selecting a broker-dealer under these circumstances, the Sub-Adviser will consider, in addition to the factors
listed above, the quality of the research provided by the broker-dealer.
The Sub-Adviser may pay higher commissions than those obtainable from other broker-dealers in exchange for such research services.
The research services generally include: (1) furnishing advice as to the value of securities, the advisability of investing
in, purchasing, or selling securities, and the advisability of securities or purchasers or sellers of securities; (2) furnishing
analyses and reports concerning issuers, industries, securities, economic factors and trends, portfolio strategy, and the
performance of accounts; and (3) effecting securities transactions and performing functions incidental thereto. By allocating
transactions in this manner, a Sub-Adviser is able to supplement its research and analysis with the views and information
of securities firms. Information so received will be in addition to, and not in lieu of, the services required to be performed
by the Sub-Adviser under the advisory contracts, and the expenses of the Sub-Adviser will not necessarily be reduced as a
result of the receipt of this supplemental research information. Furthermore, research services furnished by broker-dealers
through which a sub-adviser places securities transactions for a Fund may be used by the Sub-Adviser in servicing its other
accounts, and not all of these services may be used by the Sub-Adviser in connection with advising the Funds.
Portfolio Turnover
. The portfolio turnover rate is not a limiting factor when a Sub-Adviser deems portfolio changes appropriate. Changes may
be made in the portfolios consistent with the investment objectives and policies of the Fund's whenever such changes are believed
to be in the best interests of the Funds and their shareholders. The portfolio turnover rate is calculated by dividing the
lesser of purchases or sales of portfolio securities by the average monthly value of a Fund's portfolio securities. For purposes
of this calculation, portfolio securities exclude all securities having a maturity when purchased of one year or less. Portfolio
turnover generally involves some expenses to the Funds, including brokerage commissions or dealer mark-ups and other transaction
costs on the sale of securities and the reinvestment in other securities. Portfolio turnover may also result in adverse tax
consequences to a Fund's shareholders.
The table below shows each Fund's portfolio turnover rates for the two most recent fiscal years:
|
Fund
|
February 28, 2013
|
|
February 29, 2012
|
|
|
Target Today Fund
|
39%
|
|
46%
|
|
|
Target 2010 Fund
|
37%
|
|
43%
|
|
|
Target 2015 Fund
|
35%
|
|
40%
|
|
|
Target 2020 Fund
|
32%
|
|
35%
|
|
|
Target 2025 Fund
|
28%
|
|
31%
|
|
|
Target 2030 Fund
|
25%
|
|
26%
|
|
|
Target 2035 Fund
|
22%
|
|
22%
|
|
|
Target 2040 Fund
|
20%
|
|
20%
|
|
|
Target 2045 Fund
|
19%
|
|
19%
|
|
|
Target 2050 Fund
|
19%
|
|
19%
|
|
|
Target 2055 Fund
|
19%
|
|
19%
1
|
|
|
1
|
For the period from June 30, 2011 until February 29, 2012. (The Fund commenced operations on June 30, 2011.)
|
Brokerage Commissions
. The Funds did not pay any brokerage commissions for the past three fiscal years. Because the Funds invest a portion or substantially
all of their respective assets in one or more master portfolios, they do not incur brokerage commissions. All brokerage commissions
are incurred at the master portfolio level in connection with the master portfolio's purchase of individual portfolio securities.
As of February 28, 2013, none of the Funds held securities of their regular broker-dealers.
FUND EXPENSES
From time to time, Funds Management may waive fees from a Fund in whole or in part. Any such waiver will reduce expenses and,
accordingly, have a favorable impact on a Fund's performance.
Except for the expenses borne by Funds Management, the Trust bears all costs of its operations, including the compensation
of the Independent Trustees; advisory, shareholder servicing and administration fees; payments pursuant to any Plan; interest
charges; taxes; fees and expenses of its independent auditors, legal counsel, transfer agent and distribution disbursing agent;
expenses of redeeming shares; expenses of preparing and printing prospectuses (except the expense of printing and mailing
prospectuses used for promotional purposes, unless otherwise payable pursuant to a Plan), shareholders' reports, notices,
proxy statements and reports to regulatory agencies; insurance premiums and certain expenses relating to insurance coverage;
trade association membership dues (including membership dues in the Investment Company Institute allocable to a Fund); brokerage
and other expenses connected with the execution of portfolio transactions; fees and expenses of its custodian, including those
for keeping books and accounts and calculating the NAV per share of a Fund; expenses of shareholders' meetings; expenses relating
to the issuance, registration and qualification of a Fund's shares; pricing services, organizational expenses and any extraordinary
expenses. Expenses attributable to a Fund are charged against the Fund's assets. General expenses of the Trust are allocated
among all of the series of the Trust, including the Funds, in a manner proportionate to the net assets of each Fund, on a
transactional basis, or on such other basis as the Trust's Board deems equitable.
U.S. FEDERAL INCOME TAXES
The following information supplements and should be read in conjunction with the section in each Prospectus entitled "Taxes."
Each Prospectus generally describes the U.S. federal income tax treatment of distributions by the Funds. This section of the
SAI provides additional information concerning U.S. federal income taxes. It is based on the Internal Revenue Code of 1986,
as amended (the "Code"), applicable Treasury Regulations, judicial authority, and administrative rulings and practice, all
as of the date of this SAI and all of which are subject to change, including changes with retroactive effect. Except as specifically
set forth below, the following discussion does not address any state, local or foreign tax matters.
A shareholder's tax treatment may vary depending upon the shareholder's particular situation. This discussion applies only
to shareholders holding Fund shares as capital assets within the meaning of the Code. A shareholder may also be subject to
special rules not discussed below if they are a certain kind of shareholder, including, but not limited to: an insurance company;
a tax-exempt organization; a financial institution or broker-dealer; a person who is neither a citizen nor resident of the
United States or entity that is not organized under the laws of the United States or political subdivision thereof; a shareholder
who holds Fund shares as part of a hedge, straddle or conversion transaction; or an entity taxable as a partnership for U.S.
federal income tax purposes and investors in such an entity.
The Trust has not requested and will not request an advance ruling from the Internal Revenue Service (the "IRS") as to the
U.S. federal income tax matters described below. The IRS could adopt positions contrary to those discussed below and such
positions could be sustained. In addition, the following discussion and the discussions in each Prospectus applicable to each
shareholder address only some of the U.S. federal income tax considerations generally affecting investments in the Funds.
Prospective shareholders are urged to consult their own tax advisers and financial planners regarding the U.S. federal tax
consequences of an investment in a Fund, the application of state, local or foreign laws, and the effect of any possible changes
in applicable tax laws on their investment in the Funds.
Qualification as a Regulated Investment Company.
It is intended that each Fund qualify as a regulated investment company ("RIC") under Subchapter M of Subtitle A, Chapter
1 of the Code. Each Fund will be treated as a separate entity for U.S. federal income tax purposes. Thus, the provisions of
the Code applicable to RICs generally will apply separately to each Fund even though each Fund is a series of the Trust. Furthermore,
each Fund will separately determine its income, gains, losses and expenses for U.S. federal income tax purposes.
In order to qualify as a RIC under the Code, each Fund must, among other things, derive at least 90% of its gross income
each taxable year generally from (i) dividends, interest, certain payments with respect to securities loans, gains from the
sale or other disposition of stock, securities or foreign currencies, and other income attributable to its business of investing
in such stock, securities or foreign currencies (including, but not limited to, gains from options, futures or forward contracts)
and (ii) net income derived from an interest in a qualified publicly traded partnership, as defined in the Code. Future U.S.
Treasury regulations may (possibly retroactively) exclude from qualifying income foreign currency gains that are not directly
related to a Fund's principal business of investing in stock, securities or options and futures with respect to stock or securities.
In general, for purposes of this 90% gross income requirement, income derived from a partnership, except a qualified publicly
traded partnership, will be treated as qualifying income only to the extent such income is attributable to items of income
of the partnership which would be qualifying income if realized by the RIC.
Each Fund must also diversify its holdings so that, at the end of each quarter of the Fund's taxable year: (i) at least 50%
of the fair market value of its assets consists of (A) cash and cash items (including receivables), U.S. government securities
and securities of other RICs, and (B) securities of any one issuer (other than those described in clause (A)) to the extent
such securities do not exceed 5% of the value of the Fund's total assets and do not exceed 10% of the outstanding voting securities
of such issuer, and (ii) not more than 25% of the value of the Fund's total assets consists of the securities of any one issuer
(other than those described in clause (i)(A)), the securities of two or more issuers the Fund controls and which are engaged
in the same, similar or related trades or businesses, or the securities of one or more qualified publicly traded partnerships.
In addition, for purposes of meeting this diversification requirement, the term "outstanding voting securities of such issuer"
includes the equity securities of a qualified publicly traded partnership. The qualifying income and diversification requirements
applicable to a Fund may limit the extent to which it can engage in transactions in options, futures contracts, forward contracts
and swap agreements.
If a Fund fails to satisfy the qualifying income or diversification requirements in any taxable year, such Fund may be eligible
for relief provisions if the failures are due to reasonable cause and not willful neglect and if a penalty tax is paid with
respect to each failure to satisfy the applicable requirements. Additionally, relief is provided for certain de minimis failures
of the diversification requirements where the Fund corrects the failure within a specified period. If the applicable relief
provisions are not available or cannot be met, such Fund will be taxed in the same manner as an ordinary corporation, described
below.
In addition, with respect to each taxable year, each Fund generally must distribute to its shareholders at least 90% of its
investment company taxable income, which generally includes its ordinary income and the excess of any net short-term capital
gain over net long- term capital loss, and at least 90% of its net tax-exempt interest income earned for the taxable year.
If a Fund meets all of the RIC qualification requirements, it generally will not be subject to U.S. federal income tax on
any of the investment company taxable income and net capital gain (i.e., the excess of net long-term capital gain over net
short-term capital loss) it distributes to its shareholders. For this purpose, a Fund generally must make the distributions
in the same year that it realizes the income and gain, although in certain circumstances, a Fund may make the distributions
in the following taxable year. Shareholders generally are taxed on any distributions from a Fund in the year they are actually
distributed. However, if a Fund declares a distribution to shareholders of record in October, November or December of one
year and pays the distribution by January 31 of the following year, the Fund and its shareholders will be treated as if the
Fund paid the distribution by December 31 of the first taxable year. Each Fund intends to distribute its net income and gain
in a timely manner to maintain its status as a RIC and eliminate fund-level U.S. federal income taxation of such income and
gain. However, no assurance can be given that a Fund will not be subject to U.S. federal income taxation.
Moreover, the Funds may retain for investment all or a portion of their net capital gain. If a Fund retains any net capital
gain, it will be subject to a tax at regular corporate rates on the amount retained, but may report the retained amount as
undistributed capital gain in a written statement furnished to its shareholders, who (i) will be required to include in income
for U.S. federal income tax purposes, as long-term capital gain, their shares of such undistributed amount, and (ii) will
be entitled to credit their proportionate shares of the tax paid by the Fund on such undistributed amount against their U.S.
federal income tax liabilities, if any, and to claim refunds to the extent the credit exceeds such liabilities. For U.S. federal
income tax purposes, the tax basis of shares owned by a shareholder of the Fund will be increased by an amount equal to the
difference between the amount of undistributed capital gain included in the shareholder's gross income and the tax deemed
paid by the shareholder under clause (ii) of the preceding sentence. A Fund is not required to, and there can be no assurance
that it will, make this designation if it retains all or a portion of its net capital gain in a taxable year.
If, for any taxable year, a Fund fails to qualify as a RIC, and is not eligible for relief as described above, it will be
taxed in the same manner as an ordinary corporation without any deduction for its distributions to shareholders, and all distributions
from the Fund's current and accumulated earnings and profits (including any distributions of its net tax-exempt income and
net long-term capital gain) to its shareholders will be taxable as dividend income. To re-qualify to be taxed as a RIC in
a subsequent year, the Fund may be required to distribute to its shareholders its earnings and profits attributable to non-RIC
years reduced by an interest charge on 50% of such earnings and profits payable by the Fund to the IRS. In addition, if a
Fund initially qualifies as a RIC but subsequently fails to qualify as a RIC for a period greater than two taxable years,
the Fund generally would be required to recognize and pay tax on any net unrealized gain (the excess of aggregate gain, including
items of income, over aggregate loss that would have been realized if the Fund had been liquidated) or, alternatively, to
be subject to tax on such unrealized gain recognized for a period of ten years, in order to re-qualify as a RIC in a subsequent
year.
Equalization Accounting.
Each Fund may use the so-called "equalization method" of accounting to allocate a portion of its "earnings and profits,"
which generally equals a Fund's undistributed investment company taxable income and net capital gain, with certain adjustments,
to redemption proceeds. This method permits a Fund to achieve more balanced distributions for both continuing and redeeming
shareholders. Although using this method generally will not affect a Fund's total returns, it may reduce the amount that the
Fund would otherwise distribute to continuing shareholders by reducing the effect of redemptions of Fund shares on Fund distributions
to shareholders. However, the IRS may not have expressly sanctioned the particular equalization method used by a Fund, and
thus a Fund's use of this method may be subject to IRS scrutiny.
Capital Loss Carry-Forwards.
For net capital losses realized in taxable years beginning before January 1, 2011, a Fund is permitted to carry forward a
net capital loss to offset its capital gain, if any, realized during the eight years following the year of the loss, and such
capital loss carry-forward is treated as a short-term capital loss in the year to which it is carried. For net capital losses
realized in taxable years beginning on or after January 1, 2011, a Fund is permitted to carry forward a net capital loss to
offset its capital gain indefinitely. For capital losses realized in taxable years beginning after January 1, 2011, the excess
of a Fund's net short-term capital loss over its net long-term capital gain is treated as a short-term capital loss arising
on the first day of the Fund's next taxable year and the excess of a Fund's net long-term capital loss over its net short-term
capital gain is treated as a long-term capital loss arising on the first day of the Fund's next taxable year. If future capital
gain is offset by carried-forward capital losses, such future capital gain is not subject to fund-level U.S. federal income
tax, regardless of whether it is distributed to shareholders. Accordingly, the Funds do not expect to distribute any such
offsetting capital gain. The Funds cannot carry back or carry forward any net operating losses.
As of a Fund's most recent fiscal year end, the Fund had capital loss carry-forwards approximating the amount indicated for
U.S. federal income tax purposes, expiring in the year indicated (if applicable):
|
Fund
|
Post-January 1, 2011 Capital Loss Carry-Forwards
|
|
|
|
Short-Term
|
|
Long-Term
|
|
|
Target 2055 Fund
|
$69,195
|
|
$61,211
|
|
If a Fund engages in a reorganization, either as an acquiring fund or acquired fund, its capital loss carry-forwards (if any),
its unrealized losses (if any), and any such losses of other funds participating in the reorganization may be subject to severe
limitations that could make such losses, in particular losses realized in taxable years beginning before January 1, 2011,
substantially unusable. The Funds have engaged in reorganizations in the past and/or may engage in reorganizations in the
future.
Excise Tax.
If a Fund fails to distribute by December 31 of each calendar year at least the sum of 98% of its ordinary income for that
year (excluding capital gains and losses), 98.2% of its capital gain net income (adjusted for certain net ordinary losses)
for the 12-month period ending on October 31 of that year, and any of its ordinary income and capital gain net income from
previous years that was not distributed during such years, the Fund will be subject to a nondeductible 4% U.S federal excise
tax on the undistributed amounts (other than to the extent of its tax-exempt interest income, if any). For these purposes,
a Fund will be treated as having distributed any amount on which it is subject to corporate level U.S. federal income tax
for the taxable year ending within the calendar year. Each Fund generally intends to actually, or be deemed to, distribute
substantially all of its ordinary income and capital gain net income, if any, by the end of each calendar year and thus expects
not to be subject to the excise tax. However, no assurance can be given that a Fund will not be subject to the excise tax.
Moreover, each Fund reserves the right to pay an excise tax rather than make an additional distribution when circumstances
warrant (for example, the amount of excise tax to be paid by a Fund is determined to be de minimis).
Investment through Master Portfolio.
A Fund that invests its assets through one or more master portfolios will seek to continue to qualify as a RIC. Each master
portfolio will be treated as a non-publicly traded partnership (or, in the event that a Fund is the sole investor in the corresponding
master portfolio, as disregarded from the Fund) for U.S. federal income tax purposes rather than as a RIC or a corporation
under the Code. Under the rules applicable to a non-publicly traded partnership (or disregarded entity), a proportionate share
of any interest, dividends, gains and losses of a master portfolio will be deemed to have been realized (i.e., "passed-through")
to its investors, including the corresponding Fund, regardless of whether any amounts are actually distributed by the master
portfolio. Each investor in a master portfolio will be taxed on such share, as determined in accordance with the governing
instruments of the particular master portfolio, the Code and U.S. Treasury regulations, in determining such investor's U.S.
federal income tax liability. Therefore, to the extent a master portfolio were to accrue but not distribute any income or
gains, the corresponding Fund would be deemed to have realized its proportionate share of such income or gains without receipt
of any corresponding distribution. However, each of the master portfolios will seek to minimize recognition by its investors
(such as a corresponding Fund) of income and gains without a corresponding distribution. Furthermore, each master portfolio
intends to manage its assets, income and distributions in such a way that an investor in a master portfolio will be able to
continue to qualify as a RIC by investing its assets through the master portfolio.
Taxation of Investments.
In general, realized gains or losses on the sale of securities held by a Fund will be treated as capital gains or losses,
and long-term capital gains or losses if the Fund has held the disposed securities for more than one year at the time of disposition.
If a Fund purchases a debt obligation with original issue discount ("OID") (generally, a debt obligation with a purchase
price at original issuance less than its principal amount, such as a zero-coupon bond), which generally includes "payment-in-kind"
or "PIK" bonds, the Fund generally is required to annually include in its taxable income a portion of the OID as ordinary
income, even though the Fund may not receive cash payments attributable to the OID until a later date, potentially until maturity
or disposition of the obligation. A portion of the OID includible in income with respect to certain high-yield corporate discount
obligations may be treated as a dividend for U.S. federal income tax purposes. Similarly, if a Fund purchases a debt obligation
with market discount (generally a debt obligation with a purchase price after original issuance less than its principal amount
(reduced by any OID)), the Fund generally is required to annually include in its taxable income a portion of the market discount
as ordinary income, even though the Acquiring Fund may not receive cash payments attributable to the market discount until
a later date, potentially until maturity or disposition of the obligation. A Fund generally will be required to make distributions
to shareholders representing the OID or market discount income on debt obligations that is currently includible in income,
even though the cash representing such income may not have been received by a Fund. Cash to pay such distributions may be
obtained from sales proceeds of securities held by the Fund which a Fund otherwise might have continued to hold; obtaining
such cash might be disadvantageous for the Fund.
If a Fund invests in debt obligations that are in the lowest rating categories or are unrated, including debt obligations
of issuers not currently paying interest or who are in default, special tax issues may exist for the Fund. U.S. federal income
tax rules are not entirely clear about issues such as when a Fund may cease to accrue interest, OID, or market discount, when
and to what extent deductions may be taken for bad debts or worthless securities, and how payments received on obligations
in default should be allocated between principal and income. These and other related issues will be addressed by a Fund when,
as, and if it invests in such securities, in order to seek to ensure that it distributes sufficient income to preserve its
status as a RIC and does not become subject to U.S. federal income or excise tax.
If an option granted by a Fund is sold, lapses or is otherwise terminated through a closing transaction, such as a repurchase
by the Fund of the option from its holder, the Fund will realize a short-term capital gain or loss, depending on whether the
premium income is greater or less than the amount paid by the Fund in the closing transaction. Some capital losses realized
by a Fund in the sale, exchange, exercise, or other disposition of an option may be deferred if they result from a position
that is part of a "straddle," discussed below. If securities are sold by a Fund pursuant to the exercise of a covered call
option granted by it, the Fund generally will add the premium received to the sale price of the securities delivered in determining
the amount of gain or loss on the sale. If securities are purchased by a Fund pursuant to the exercise of a put option granted
by it, the Fund generally will subtract the premium received from its cost basis in the securities purchased.
Some regulated futures contracts, certain foreign currency contracts, and non-equity, listed options used by a Fund will
be deemed "Section 1256 contracts." A Fund will be required to "mark-to-market" any such contracts held at the end of the
taxable year by treating them as if they had been sold on the last day of that year at market value. Sixty percent of any
net gain or loss realized on all dispositions of Section 1256 contracts, including deemed dispositions under the "mark-to-market"
rule, generally will be treated as long-term capital gain or loss, and the remaining 40% will be treated as short-term capital
gain or loss, although certain foreign currency gains and losses from such contracts may be treated as ordinary income or
loss (as described below). These provisions may require a Fund to recognize income or gains without a concurrent receipt of
cash. Transactions that qualify as designated hedges are exempt from the mark-to-market rule and the "60%/40%" rule and may
require the Fund to defer the recognition of losses on certain futures contracts, foreign currency contracts and non-equity
options.
Foreign currency gains and losses realized by a Fund in connection with certain transactions involving foreign currency-
denominated debt obligations, certain options, futures contracts, forward contracts, and similar instruments relating to foreign
currency, foreign currencies, or payables or receivables denominated in a foreign currency are subject to Section 988 of the
Code, which generally causes such gains and losses to be treated as ordinary income or loss and may affect the amount and
timing of recognition of the Fund's income. Under future U.S. Treasury regulations, any such transactions that are not directly
related to a Fund's investments in stock or securities (or its options contracts or futures contracts with respect to stock
or securities) may have to be limited in order to enable the Fund to satisfy the 90% income test described above. If the net
foreign currency loss exceeds a Fund's net investment company taxable income (computed without regard to such loss) for a
taxable year, the resulting ordinary loss for such year will not be deductible by the Fund or its shareholders in future years.
Offsetting positions held by a Fund involving certain derivative instruments, such as financial forward, futures, and options
contracts, may be considered, for U.S. federal income tax purposes, to constitute "straddles." "Straddles" are defined to
include "offsetting positions" in actively traded personal property. The tax treatment of "straddles" is governed by Section
1092 of the Code which, in certain circumstances, overrides or modifies the provisions of Section 1256. If a Fund is treated
as entering into a "straddle" and at least one (but not all) of the Fund's positions in derivative contracts comprising a
part of such straddle is governed by Section 1256 of the Code, described above, then such straddle could be characterized
as a "mixed straddle." A Fund may make one or more elections with respect to "mixed straddles." Depending upon which election
is made, if any, the results with respect to a Fund may differ. Generally, to the extent the straddle rules apply to positions
established by a Fund, losses realized by the Fund may be deferred to the extent of unrealized gain in any offsetting positions.
Moreover, as a result of the straddle rules, short-term capital loss on straddle positions may be recharacterized as long-term
capital loss, and long-term capital gain may be characterized as short-term capital gain. In addition, the existence of a
straddle may affect the holding period of the offsetting positions. As a result, the straddle rules could cause distributions
that would otherwise constitute qualified dividend income (defined below) to fail to satisfy the applicable holding period
requirements (described below) and therefore to be taxed as ordinary income. Furthermore, the Fund may be required to capitalize,
rather than deduct currently, any interest expense and carrying charges applicable to a position that is part of a straddle,
including any interest expense on indebtedness incurred or continued to purchase or carry any positions that are part of a
straddle. Because the application of the straddle rules may affect the character and timing of gains and losses from affected
straddle positions, the amount which must be distributed to shareholders, and which will be taxed to shareholders as ordinary
income or long-term capital gain, may be increased or decreased substantially as compared to the situation where a Fund had
not engaged in such transactions.
If a Fund enters into a "constructive sale" of any appreciated financial position in stock, a partnership interest, or certain
debt instruments, the Fund will be treated as if it had sold and immediately repurchased the property and must recognize gain
(but not loss) with respect to that position. A constructive sale of an appreciated financial position occurs when a Fund
enters into certain offsetting transactions with respect to the same or substantially identical property, including: (i) a
short sale; (ii) an offsetting notional principal contract; (iii) a futures or forward contract; or (iv) other transactions
identified in future U.S. Treasury regulations. The character of the gain from constructive sales will depend upon a Fund's
holding period in the appreciated financial position. Losses realized from a sale of a position that was previously the subject
of a constructive sale will be recognized when the position is subsequently disposed of. The character of such losses will
depend upon a Fund's holding period in the position and the application of various loss deferral provisions in the Code. Constructive
sale treatment does not apply to certain closed transactions, including if such a transaction is closed on or before the 30th
day after the close of the Fund's taxable year and the Fund holds the appreciated financial position unhedged throughout the
60-day period beginning with the day such transaction was closed.
The amount of long-term capital gain a Fund may recognize from certain derivative transactions with respect to interests
in certain pass-through entities is limited under the Code's constructive ownership rules. The amount of long-term capital
gain is limited to the amount of such gain a Fund would have had if the Fund directly invested in the pass-through entity
during the term of the derivative contract. Any gain in excess of this amount is treated as ordinary income. An interest charge
is imposed on the amount of gain that is treated as ordinary income.
In addition, a Fund's transactions in securities and certain types of derivatives (e.g., options, futures contracts, forward
contracts, and swap agreements) may be subject to other special tax rules, such as the wash sale rules or the short sale rules,
the effect of which may be to accelerate income to the Fund, defer losses to the Fund, cause adjustments to the holding periods
of the Fund's securities, convert long-term capital gains into short-term capital gains, and/or convert short-term capital
losses into long- term capital losses. These rules could therefore affect the amount, timing, and character of distributions
to shareholders.
Rules governing the U.S. federal income tax aspects of derivatives, including swap agreements, are in a developing stage
and are not entirely clear in certain respects, particularly in light of IRS revenue rulings that held that income from a
derivative contract with respect to a commodity index is not qualifying income for a RIC. Accordingly, while each Fund intends
to account for such transactions in a manner it deems appropriate, the IRS might not accept such treatment. If it did not,
the status of a Fund as a RIC might be jeopardized. Certain requirements that must be met under the Code in order for each
Fund to qualify as a RIC may limit the extent to which a Fund will be able to engage in derivatives transactions.
A Fund may invest in real estate investment trusts ("REITs"). Investments in REIT equity securities may require a Fund to
accrue and distribute income not yet received. To generate sufficient cash to make the requisite distributions, the Fund may
be required to sell securities in its portfolio (including when it is not advantageous to do so) that it otherwise would have
continued to hold. A Fund's investments in REIT equity securities may at other times result in the Fund's receipt of cash
in excess of the REIT's earnings if the Fund distributes these amounts, these distributions could constitute a return of capital
to Fund shareholders for U.S. federal income tax purposes. Dividends received by the Fund from a REIT generally will not constitute
qualified dividend income and will not qualify for the dividends-received deduction.
A Fund may invest directly or indirectly in residual interests in real estate mortgage investment conduits ("REMICs") or
in other interests that may be treated as taxable mortgage pools ("TMPs") for U.S. federal income tax purposes. Under IRS
guidance, a Fund must allocate "excess inclusion income" received directly or indirectly from REMIC residual interests or
TMPs to its shareholders in proportion to dividends paid to such shareholders, with the same consequences as if the shareholders
had invested in the REMIC residual interests or TMPs directly.
In general, excess inclusion income allocated to shareholders (i) cannot be offset by net operating losses (subject to a
limited exception for certain thrift institutions), (ii) constitutes unrelated business taxable income to Keogh, 401(k) and
qualified pension plans, as well as investment retirement accounts and certain other tax exempt entities, thereby potentially
requiring such an entity, which otherwise might not be required to file a tax return, to file a tax return and pay tax on
such income, and (iii) in the case of a foreign shareholder, does not qualify for any reduction, by treaty or otherwise, in
the 30% U.S. federal withholding tax. In addition, if at any time during any taxable year a "disqualified organization" (as
defined in the Code) is a record holder of a share in a Fund, then the Fund will be subject to a tax equal to that portion
of its excess inclusion income for the taxable year that is allocable to the disqualified organization, multiplied by the
highest federal corporate income tax rate. To the extent permitted under the 1940 Act, a Fund may elect to specially allocate
any such tax to the applicable disqualified organization, and thus reduce such shareholder's distributions for the year by
the amount of the tax that relates to such shareholder's interest in the Fund. The Funds have not yet determined whether such
an election will be made.
"Passive foreign investment companies" ("PFICs") are generally defined as foreign corporations with respect to which at least
75% of their gross income for their taxable year is income from passive sources (such as interest, dividends, certain rents
and royalties, or capital gains) or at least 50% of their assets on average produce such passive income. If a Fund acquires
any equity interest in a PFIC, the Fund could be subject to U.S. federal income tax and interest charges on "excess distributions"
received from the PFIC or on gain from the sale of such equity interest in the PFIC, even if all income or gain actually received
by the Fund is timely distributed to its shareholders. Excess distributions will be characterized as ordinary income even
though, absent the application of PFIC rules, some excess distributions may have been classified as capital gain.
A Fund will not be permitted to pass through to its shareholders any credit or deduction for taxes and interest charges incurred
with respect to PFICs. Elections may be available that would ameliorate these adverse tax consequences, but such elections
could require a Fund to recognize taxable income or gain without the concurrent receipt of cash. Investments in PFICs could
also result in the treatment of associated capital gains as ordinary income. The Funds may attempt to limit and/or manage
their holdings in PFICs to minimize their tax liability or maximize their returns from these investments but there can be
no assurance that they will be able to do so. Moreover, because it is not always possible to identify a foreign corporation
as a PFIC in advance of acquiring shares in the corporation, a Fund may incur the tax and interest charges described above
in some instances. Dividends paid by PFICs will not be eligible to be treated as qualified dividend income.
In addition to the investments described above, prospective shareholders should be aware that other investments made by the
Funds may involve complex tax rules that may result in income or gain recognition by the Funds without corresponding current
cash receipts. Although the Funds seek to avoid significant non-cash income, such non-cash income could be recognized by the
Funds, in which case the Funds may distribute cash derived from other sources in order to meet the minimum distribution requirements
described above. In this regard, the Funds could be required at times to liquidate investments prematurely in order to satisfy
their minimum distribution requirements.
Taxation of Distributions.
Except for exempt-interest dividends (defined below) paid out by "Tax-Free Funds", distributions paid out of a Fund's current
and accumulated earnings and profits (as determined at the end of the year), whether paid in cash or reinvested in the Fund,
generally are deemed to be taxable distributions and must be reported by each shareholder who is required to file a U.S. federal
income tax return. Dividends and distributions on a Fund's shares are generally subject to U.S. federal income tax as described
herein to the extent they do not exceed the Fund's realized income and gains, even though such dividends and distributions
may economically represent a return of a particular shareholder's investment. Such distributions are likely to occur in respect
of shares acquired at a time when the Fund's net asset value reflects gains that are either unrealized, or realized but not
distributed. For U.S. federal income tax purposes, a Fund's earnings and profits, described above, are determined at the end
of the Fund's taxable year and are allocated pro rata to distributions paid over the entire year. Distributions in excess
of a Fund's current and accumulated earnings and profits will first be treated as a return of capital up to the amount of
a shareholder's tax basis in the shareholder's Fund shares and then as capital gain. A Fund may make distributions in excess
of its earnings and profits, from time to time.
For U.S. federal income tax purposes, distributions of investment income are generally taxable as ordinary income, and distributions
of gains from the sale of investments that a Fund owned for one year or less will be taxable as ordinary income. Distributions
properly designated by a Fund as capital gain dividends will be taxable to shareholders as long-term capital gain (to the
extent such distributions do not exceed the Fund's net capital gain for the taxable year), regardless of how long a shareholder
has held Fund shares, and do not qualify as dividends for purposes of the dividends-received deduction or as qualified dividend
income. Each Fund will report capital gain dividends, if any, in a written statement furnished to its shareholders after the
close of the Fund's taxable year.
Fluctuations in foreign currency exchange rates may result in foreign exchange gain or loss on transactions in foreign currencies,
foreign currency-denominated debt obligations, and certain foreign currency options, futures contracts and forward contracts.
Such gains or losses are generally characterized as ordinary income or loss for tax purposes. The Fund must make certain distributions
in order to qualify as a Regulated Investment Company, and the timing of and character of transactions such as foreign currency-related
gains and losses may result in the fund paying a distribution treated as a return of capital. Such distribution is nontaxable
to the extent of the recipient's basis in its shares.
Some states will not tax distributions made to individual shareholders that are attributable to interest a Fund earned on
direct obligations of the U.S. government if the Fund meets the state's minimum investment or reporting requirements, if any.
Investments in GNMA or FNMA securities, bankers' acceptances, commercial paper and repurchase agreements collateralized by
U.S. government securities generally do not qualify for tax-free treatment. This exemption may not apply to corporate shareholders.
Sales and Exchanges of Fund Shares.
If a shareholder sells, pursuant to a cash or in-kind redemption, or exchanges the shareholder's Fund shares, subject to
the discussion below, the shareholder generally will recognize a taxable capital gain or loss on the difference between the
amount received for the shares (or deemed received in the case of an exchange) and the shareholder's tax basis in the shares.
This gain or loss will be long-term capital gain or loss if the shareholder has held such Fund shares for more than one year
at the time of the sale or exchange, and short-term otherwise.
If a shareholder sells or exchanges Fund shares within 90 days of having acquired such shares and if, before January 31 of
the calendar year following the calendar year of the sale or exchange, as a result of having initially acquired those shares,
the shareholder subsequently pays a reduced sales charge on a new purchase of shares of the Fund or a different RIC, the sales
charge previously incurred in acquiring the Fund's shares generally shall not be taken into account (to the extent the previous
sales charges do not exceed the reduction in sales charges on the new purchase) for the purpose of determining the amount
of gain or loss on the disposition, but generally will be treated as having been incurred in the new purchase. Also, if a
shareholder recognizes a loss on a disposition of Fund shares, the loss will be disallowed under the "wash sale" rules to
the extent the shareholder purchases substantially identical shares within the 61-day period beginning 30 days before and
ending 30 days after the disposition. Any disallowed loss generally will be reflected in an adjustment to the tax basis of
the purchased shares.
If a shareholder receives a capital gain dividend with respect to any Fund share and such Fund share is held for six months
or less, then (unless otherwise disallowed) any loss on the sale or exchange of that Fund share will be treated as a long-term
capital loss to the extent of the capital gain dividend. If such loss is incurred from the redemption of shares pursuant to
a periodic redemption plan then U.S. Treasury regulations may permit an exception to this six-month rule. No such regulations
have been issued as of the date of this SAI.
In addition, if a shareholder of a Tax-Free Fund holds such Fund shares for six months or less, any loss on the sale or exchange
of those shares will be disallowed to the extent of the amount of exempt-interest dividends (defined below) received with
respect to the shares. If such loss is incurred from the redemption of shares pursuant to a periodic redemption plan then
U.S. Treasury regulations may permit an exception to this six-month rule. Such a loss will also not be disallowed where the
loss is incurred with respect to shares of a Fund that declares exempt-interest dividends on a daily basis in an amount equal
to at least 90% of its net-tax exempt interest and distributes such dividends on a monthly, or more frequent, basis. Additionally,
where a Fund regularly distributes at least 90% of its net tax-exempt interest, if any, the Treasury Department is authorized
to issue regulations reducing the six month holding period requirement to a period of not less than the greater of 31 days
or the period between regular distributions. No such regulations have been issued as of the date of this filing.
Foreign Taxes.
Amounts realized by a Fund from sources within foreign countries may be subject to withholding and other taxes imposed by
such countries. Tax conventions between certain countries and the United States may reduce or eliminate such taxes. If more
than 50% of the value of a Fund's total assets at the close of its taxable year consists of securities of foreign corporations,
the Fund will be eligible to file an annual election with the IRS pursuant to which the Fund may pass-through to its shareholders
on a pro rata basis certain foreign income and similar taxes paid by the Fund, and such taxes may be claimed, subject to certain
limitations, either as a tax credit or deduction by the shareholders. However, even if a Fund qualifies for the election for
any year, it may not make the election for such year. If a Fund does not so elect, then shareholders will not be entitled
to claim a credit or deduction with respect to foreign taxes paid or withheld. If a Fund does elect to "pass through" its
foreign taxes paid in a taxable year, the Fund will furnish a written statement to its shareholders reporting such shareholders
proportionate share of the Funds' foreign taxes paid.
Even if a Fund qualifies for the election, foreign income and similar taxes will only pass through to the Fund's shareholders
if the Fund and its shareholders meet certain holding period requirements. Specifically, (i) the shareholders must have held
the Fund shares for at least 16 days during the 31-day period beginning 15 days prior to the date upon which the shareholders
became entitled to receive Fund distributions corresponding with the pass through of such foreign taxes paid by the Fund,
and (ii) with respect to dividends received by the Fund on foreign shares giving rise to such foreign taxes, the Fund must
have held the shares for at least 16 days during the 31-day period beginning 15 days prior to the date upon which the Fund
became entitled to the dividend. These holding periods increase for certain dividends on preferred stock. A Fund may choose
not to make the election if the Fund has not satisfied its holding requirement.
If a Fund makes the election, the Fund will not be permitted to claim a credit or deduction for foreign taxes paid in that
year, and the Fund's dividends-paid deduction will be increased by the amount of foreign taxes paid that year. Fund shareholders
that have satisfied the holding period requirements and certain other requirements shall include their proportionate share
of the foreign taxes paid by the Fund in their gross income and treat that amount as paid by them for the purpose of the foreign
tax credit or deduction. If the shareholder claims a credit for foreign taxes paid, the credit will be limited to the extent
it exceeds the shareholder's federal income tax attributable to foreign source taxable income. If the credit is attributable,
wholly or in part, to qualified dividend income (as defined below), special rules will be used to limit the credit in a manner
that reflects any resulting dividend rate differential.
In general, an individual with $300 or less of creditable foreign taxes may elect to be exempt from the foreign source taxable
income and qualified dividend income limitations if the individual has no foreign source income other than qualified passive
income. This $300 threshold is increased to $600 for joint filers. A deduction for foreign taxes paid may only be claimed
by shareholders that itemize their deductions.
U.S. Federal Income Tax Rates.
Noncorporate Fund shareholders (i.e., individuals, trusts and estates) are taxed at a maximum rate of 39.6% on ordinary income
and 20% on long-term capital gain for taxable years beginning after December 31, 2012.
In general, "qualified dividend income" realized by noncorporate Fund shareholders is taxable at the same rate as net capital
gain. Generally, qualified dividend income is dividend income attributable to certain U.S. and foreign corporations, as long
as certain holding period requirements are met. After this date, all dividend income generally will be taxed at the same rate
as ordinary income. If 95% or more of a Fund's gross income (excluding net long-term capital gain over net short-term capital
loss) constitutes qualified dividend income, all of its distributions (other than capital gain dividends) will be generally
treated as qualified dividend income in the hands of individual shareholders, as long as they have owned their Fund shares
for at least 61 days during the 121-day period beginning 60 days before the Fund's ex-dividend date (or, in the case of certain
preferred stock, 91 days during the 181-day period beginning 90 days before such date). In general, if less than 95% of a
Fund's income is attributable to qualified dividend income, then only the portion of the Fund's distributions that is attributable
to qualified dividend income and designated as such in a timely manner will be so treated in the hands of individual shareholders.
Payments received by a Fund from securities lending, repurchase, and other derivative transactions ordinarily will not qualify.
The rules attributable to the qualification of Fund distributions as qualified dividend income are complex, including the
holding period requirements. Individual Fund shareholders therefore are urged to consult their own tax advisers and financial
planners. Income and bond Funds typically do not distribute significant amounts of "qualified dividend income" eligible for
reductions in individual U.S. federal income tax rates applicable to certain dividend income.
The maximum stated corporate U.S. federal income tax rate applicable to ordinary income and net capital gain is 35%. Actual
marginal tax rates may be higher for some shareholders, for example, through reductions in deductions. Distributions from
an Income Fund generally will not qualify for the "dividends-received deduction" applicable to corporate shareholders with
respect to certain dividends. Distributions from an Equity Fund may qualify for the "dividends-received deduction" applicable
to corporate shareholders with respect to certain dividends. Naturally, the amount of tax payable by any taxpayer will be
affected by a combination of tax laws covering, for example, deductions, credits, deferrals, exemptions, sources of income
and other matters. U.S. federal income tax rates are set to increase in future years under various "sunset" provisions of
U.S. federal income tax laws.
Under recently enacted legislation, for taxable years beginning after December 31, 2012, noncorporate Fund shareholders generally
will be subject to a 3.8% tax on their "net investment income," which ordinarily includes taxable distributions received from
the Funds and taxable gain on the disposition of Fund shares.
For taxable years beginning after December 31, 2012, a U.S. withholding tax at a 30% rate will be imposed on dividends and
proceeds of sales in respect of Fund shares received by Fund shareholders who own their shares through foreign accounts or
foreign intermediaries if certain disclosure requirements related to U.S. accounts or ownership are not satisfied. The Funds
will not pay any additional amounts in respect to any amounts withheld.
Backup Withholding.
A Fund is generally required to withhold and remit to the U.S. Treasury, subject to certain exemptions (such as for certain
corporate or foreign shareholders), an amount equal to 28% of all distributions and redemption proceeds (including proceeds
from exchanges and redemptions in-kind) paid or credited to a Fund shareholder if (i) the shareholder fails to furnish the
Fund with a correct "taxpayer identification number" ("TIN"), (ii) the shareholder fails to certify under penalties of perjury
that the TIN provided is correct, (iii) the shareholder fails to make certain other certifications, or (iv) the IRS notifies
the Fund that the shareholder's TIN is incorrect or that the shareholder is otherwise subject to backup withholding. Backup
withholding is not an additional tax imposed on the shareholder. The shareholder may apply amounts withheld as a credit against
the shareholder's U.S. federal income tax liability and may obtain a refund of any excess amounts withheld, provided that
the required information is furnished to the IRS. If a shareholder fails to furnish a valid TIN upon request, the shareholder
can also be subject to IRS penalties. A shareholder may generally avoid backup withholding by furnishing a properly completed
IRS Form W-9. State backup withholding may also be required to be withheld by the Funds under certain circumstances.
Corporate Shareholders.
Subject to limitation and other rules, a corporate shareholder of a Fund may be eligible for the dividends received deduction
on Fund distributions attributable to dividends received by the Fund from domestic corporations, which, if received directly
by the corporate shareholder, would qualify for such a deduction. For eligible corporate shareholders, the dividends-received
deduction may be subject to certain reductions, and a distribution by a Fund attributable to dividends of a domestic corporation
will be eligible for the deduction only if certain holding period and other requirements are met. These requirements are complex;
therefore, corporate shareholders of the Funds are urged to consult their own tax advisers and financial planners.
Foreign Shareholders.
For purposes of this discussion, "foreign shareholders" include: (i) nonresident alien individuals, (ii) foreign trusts (i.e.,
a trust other than a trust with respect to which a U.S. court is able to exercise primary supervision over administration
of that trust and one or more U.S. persons have authority to control substantial decisions of that trust), (iii) foreign estates
(i.e., the income of which is not subject to U.S. tax regardless of source), and (iv) foreign corporations.
Generally, subject to certain exceptions described below, distributions made to foreign shareholders will be subject to non-
refundable U.S. federal income tax withholding at a 30% rate (or such lower rate provided under an applicable income tax treaty)
even if they are funded by income or gains (such as portfolio interest, short-term capital gain, or foreign-source dividend
and interest income) that, if paid to a foreign person directly, would not be subject to withholding. However, with respect
to certain distributions made to foreign shareholders in taxable years beginning before January 1, 2014, no withholding will
be required and the distributions generally will not be subject to U.S. federal income tax if (i) the distributions are reported
as "interest related dividends" or "short term capital gain dividends" in a written statement furnished to shareholders (ii)
the distributions are derived from sources specified in the Code for such dividends and (iii) certain other requirements are
satisfied. No assurance can be given that a Fund would designate any of its distributions as interest related dividends or
short term capital gain dividends, even if it is permitted to do so. In the case of shares held through an intermediary, even
if a Fund makes a designation with respect to a payment, no assurance can be made that the intermediary will respect such
a designation. Capital gains dividends and gains recognized by a foreign shareholder on the redemption of Fund shares generally
will not be subject to U.S. federal income tax withholding, provided that certain requirements are satisfied. Tax-exempt dividends
(described below) paid by a Tax-Free Fund to a foreign shareholders also should be exempt from U.S. federal income tax withholding.
With respect to payments made after December 31, 2013, a withholding tax of 30% will be imposed on dividends from, and the
gross proceeds of a disposition of, Fund shares paid to certain foreign entities unless various information reporting requirements
are satisfied. Such withholding tax will generally apply to non-U.S. financial institutions, which are generally defined for
this purpose as non-U.S. entities that (i) accept deposits in the ordinary course of a banking or similar business, (ii) are
engaged in the business of holding financial assets for the account of others, or (iii) are engaged or hold themselves out
as being engaged primarily in the business of investing, reinvesting, or trading in securities, partnership interests, commodities,
or any interest in such assets. Prospective foreign shareholders are encouraged to consult their tax advisors regarding the
implications of this legislation on their investment in a Fund.
Before investing in a Fund's shares, a prospective foreign shareholder should consult with its own tax advisors, including
whether the shareholder's investment can qualify for benefits under an applicable income tax treaty.
Tax-Deferred Plans.
Shares of the Funds may be available for a variety of tax-deferred retirement and other tax-advantaged plans and accounts.
However, shares of a Tax-Free Fund may not be suitable for tax-deferred, retirement and other tax-advantaged plans and accounts,
since such plans and accounts are generally tax-exempt and, therefore, would not benefit from the tax-exempt status of certain
distributions from the Tax-Free Fund (discussed below). Such distributions may ultimately be taxable to the beneficiaries
when distributed to them. Prospective investors should contact their tax advisers and financial planners regarding the tax
consequences to them of holding Fund shares through such plans and/or accounts.
Tax-Exempt Shareholders.
Shares of a Tax-Free Fund may not be suitable for tax-exempt shareholders since such shareholders generally would not benefit
from the tax-exempt status of distributions from the Tax-Free Funds (discussed below). Tax-exempt shareholders should contact
their tax advisers and financial planners regarding the tax consequences to them of an investment in the Funds.
Any investment in residual interests of a collateralized mortgage obligation that has elected to be treated as a REMIC can
create complex U.S. federal income tax consequences, especially if a Fund has state or local governments or other tax-exempt
organizations as shareholders.
Special tax consequences apply to charitable remainder trusts ("CRTs") (as defined in Section 664 of the Code) that invest
in RICs that invest directly or indirectly in residual interests in REMICs or equity interests in TMPs. CRTs are urged to
consult their own tax advisers and financial planners concerning these special tax consequences.
Tax Shelter Reporting Regulations.
Generally, under U.S. Treasury regulations, if an individual shareholder recognizes a loss of $2 million or more or if a
corporate shareholder recognizes a loss of $10 million or more, the shareholder must file with the IRS a disclosure statement
on Form 8886. Direct shareholders of securities are in many cases exempt from this reporting requirement, but under current
guidance, shareholders of a RIC are not exempt. Future guidance may extend the current exemption from this reporting requirement
to shareholders of most or all RICs. The fact that a loss is reportable under these regulations does not affect the legal
determination of whether the taxpayer's treatment of the loss is proper. Shareholders should consult their own tax advisers
to determine the applicability of these regulations in light of their individual circumstances.
Additional Considerations for the Tax-Free Funds
. If at least 50% of the value of a Fund's total assets at the close of each quarter of its taxable years consists of debt
obligations that generate interest exempt from U.S. federal income tax under Section 103 of the Internal Revenue Code, then
the Fund may qualify to pass through to its shareholders the tax-exempt character of its income from such debt obligations
by paying exempt-interest dividends. The Tax-Free Funds intend to so qualify and are designed to provide shareholders with
income exempt from U.S. federal income tax in the form of exempt-interest dividends. "Exempt-interest dividends" are dividends
(other than capital gain dividends) paid by a RIC that are properly reported as such in a written statement furnished to shareholders.
Each Tax-Free Fund will report to its shareholders the portion of the distributions for the taxable year that constitutes
exempt-interest dividends. The designated portion cannot exceed the excess of the amount of interest excludable from gross
income under Section 103 of the Internal Revenue Code received by a Tax-Free Fund during the taxable year over any amounts
disallowed as deductions under Sections 265 and 171(a)(2) of the Internal Revenue Code. Interest on indebtedness incurred
to purchase or carry shares of the Tax-Free Funds will not be deductible to the extent that the Tax-Free Funds' distributions
are exempt from U.S. federal income tax. In addition, an investment in a Tax-Free Fund may result in liability for U.S. federal
alternative minimum tax ("AMT"). Certain deductions and exemptions have been designated "tax preference items" which must
be added back to taxable income for purposes of calculating the U.S. federal AMT. Tax preference items include tax-exempt
interest on certain "private activity bonds." To the extent a Tax-Free Fund invests in certain private activity bonds, its
shareholders will be required to report that portion of the Fund's distributions attributable to income from the bonds as
a tax preference item in determining their U.S. federal AMT, if any. Shareholders will be notified of the tax status of distributions
made by a Tax-Free Fund.
Persons who may be "substantial users" (or "related persons" of substantial users) of facilities financed by private activity
bonds should consult their tax advisers before purchasing shares in a Tax-Free Fund. Furthermore, shareholders will not be
permitted to deduct any of their share of a Tax-Free Fund's expenses in computing their U.S. federal AMT. In addition, exempt-interest
dividends paid by a Tax-Free Fund to a corporate shareholder are included in the shareholder's "adjusted current earnings"
as part of its U.S. federal AMT calculation, and may also affect its U.S. federal "environmental tax" liability. As of the
date of this filing, individuals are subject to the U.S. federal AMT at a maximum rate of 28% and corporations are subject
to the U.S. federal AMT at a maximum rate of 20%. Shareholders with questions or concerns about the U.S. federal AMT should
consult own their own tax advisers.
The IRS is paying increased attention to whether debt obligations intended to produce interest exempt from U.S. federal income
tax in fact meet the requirements for such exemption. Ordinarily, the Tax-Free Funds rely on opinions from the issuer's bond
counsel that interest on the issuer's debt obligation will be exempt from U.S. federal income tax. However, no assurance can
be given that the IRS will not successfully challenge such exemption, which could cause interest on the debt obligation to
be taxable and could jeopardize a Tax-Free Fund's ability to pay any exempt-interest dividends. Similar challenges may occur
as to state-specific exemptions.
A shareholder who receives Social Security or railroad retirement benefits should consult the shareholder's own tax adviser
to determine what effect, if any, an investment in a Tax-Free Fund may have on the U.S. federal taxation of such benefits.
Exempt-interest dividends are included in income for purposes of determining the amount of benefits that are taxable.
Distributions of a Tax-Free Fund's income other than exempt-interest dividends generally will be taxable to shareholders.
Gains realized by a Tax-Free Fund on the sale or exchange of investments that generate tax-exempt income will also be taxable
to shareholders.
Although exempt-interest dividends are generally exempt from U.S. federal income tax, there may not be a similar exemption
under the laws of a particular state or local taxing jurisdiction. Thus, exempt-interest dividends may be subject to state
and local taxes. You should consult your own tax advisor to discuss the tax consequences of your investment in a Tax-Free
Fund.
Legislative Proposals.
Prospective shareholders should recognize that the present U.S. federal income tax treatment of the Funds and their shareholders
may be modified by legislative, judicial or administrative actions at any time, which may be retroactive in effect. The rules
dealing with U.S. federal income taxation are constantly under review by Congress, the IRS and the Treasury Department, and
statutory changes as well as promulgation of new regulations, revisions to existing statutes, and revised interpretations
of established concepts occur frequently. You should consult your advisors concerning the status of legislative proposals
that may pertain to holding Fund shares.
Cost Basis Reporting
The Emergency Economic Stabilization Act of 2008 and provisions from the Energy Improvement and Extension Act of 2008 require
each Fund or its delegate to report cost basis information to shareholders and the Internal Revenue Service for 1099-B reportable
redemptions of covered Fund shares acquired on or after January 1, 2012. Shares purchased on or after January 1, 2012 are
generally treated as covered shares. Shares purchased before January 1, 2012 or shares without complete cost basis information
are generally treated as noncovered shares.
Fund shareholders should consult their tax advisors to obtain more information about how the new cost basis rules apply to
them and determine which cost basis method allowed by the Internal Revenue Service is best for their tax situation. Methods
allowed by the IRS include, but are not limited to:
■
Average Cost
. The cost per share is determined by dividing the aggregate cost amount by the total shares in the account. The basis of
the shares redeemed is determined by multiplying the shares redeemed by the cost per share. Starting in 2012, accounts may
maintain two separate average costs: one average for covered shares and a separate average for noncovered shares. Under the
Average Cost method, noncovered shares are generally depleted first.
■
First in first out (FIFO)
. Shares acquired first in the shareholder's account are the first shares depleted and determine the shareholder's cost basis.
The basis of the shares redeemed is determined by the adjusted purchase price of each date the shares were acquired.
■
Specific Identification
. A shareholder selects the shares to be redeemed from any of the purchase lots that still have shares remaining. The basis
of the shares redeemed is determined by the adjusted purchase price of each date the shares were acquired.
In the absence of a shareholder method election, the Fund will apply its default method, Average Cost. If the Average Cost
method is applied either by default or at the shareholder's election, the shareholder's ability to change such election once
a sale occurs will be limited under the IRS rules. After an election has been made, but before a disposition of shares occurs,
a shareholder may make a retroactive change to an alternate method. The cost basis method a shareholder elects may not be
changed with respect to a redemption of shares after the settlement date of the redemption. At any time, a shareholder may
designate a new election for future purchases.
Redemptions of noncovered shares (shares acquired prior to January 1, 2012) will continue to be reported using the Average
Cost method, if available, and will not be reported to the IRS.
PROXY VOTING POLICIES AND PROCEDURES
The Trusts and Funds Management have adopted policies and procedures ("Proxy Voting Procedures") that are used to vote proxies
relating to portfolio securities held by the Funds of the Trusts. The Proxy Voting Procedures are designed to ensure that
proxies are voted in the best interests of Fund shareholders, without regard to any relationship that any affiliated person
of the Fund (or an affiliated person of such affiliated person) may have with the issuer of the security.
The responsibility for voting proxies relating to the Funds' portfolio securities has been delegated to Funds Management.
In accordance with the Proxy Voting Procedures, Funds Management exercises its voting responsibility with the goal of maximizing
value to shareholders consistent with governing laws and the investment policies of each Fund. While each Fund does not purchase
securities to exercise control or to seek to effect corporate change through share ownership, it supports sound corporate
governance practices within companies in which it invests and reflects that support through its proxy voting process.
Funds Management has established a Proxy Voting Committee (the "Proxy Committee") that is responsible for overseeing the proxy
voting process and ensuring that the voting process is implemented in conformance with the Proxy Voting Procedures. Funds
Management has retained an independent, unaffiliated nationally recognized proxy voting company as proxy voting agent. The
Proxy Committee monitors the proxy voting agent and the voting process and, in certain situations, votes proxies or directs
the proxy voting agent how to vote.
The Proxy Voting Procedures set out guidelines regarding how Funds Management and the proxy voting agent will vote proxies.
Where the guidelines specify a particular vote on a particular matter, the proxy voting agent handles the proxy, generally
without further involvement by the Proxy Committee. Where the guidelines specify a case-by-case determination, the proxy voting
agent forwards the proxy to the Proxy Committee for a vote determination by the Proxy Committee. To the extent the guidelines
do not address a proxy voting proposal, Funds Management will vote pursuant to the proxy voting agent's current U.S. and International
proxy voting guidelines. In addition, even where the guidelines specify a particular vote, the Proxy Committee may exercise
a discretionary vote if it determines that a case-by-case review of a particular matter is warranted. As a general matter,
proxies are voted consistently in the same matter when securities of an issuer are held by multiple Funds of the Trusts.
The Proxy Voting Procedures set forth Funds Management's general position on various proposals, such as:
■
Routine Items
– Funds Management will generally vote for uncontested director or trustee nominees, changes in company name, and other procedural
matters related to annual meetings.
■
Corporate Governance
– Funds Management will generally vote for charter and bylaw amendments proposed solely to conform with modern business practices
or for purposes of simplification or to comply with what management's counsel interprets as applicable law.
■
Anti-Takeover Matters
– Funds Management generally will vote for proposals that require shareholder ratification of poison pills, and on a case-by-case
basis on proposals to redeem a company's poison pill.
■
Mergers/Acquisitions and Corporate Restructurings
– Funds Management's Proxy Committee will examine these items on a case-by-case basis.
■
Shareholder Rights
– Funds Management will generally vote against proposals that may restrict shareholder rights.
■
Capital Structure Changes
- Funds Management will follow the proxy voting agent's capital structure model in evaluating requested increases in authorized
common stock. In addition, even if capital requests of less than or equal to 300% of outstanding shares fail the calculated
allowable cap, Funds Management will vote for proposals to increase the number of authorized common shares where the primary
purpose of the increase is to issue shares in connection with a transaction on the same ballot that warrants support.
■
Executive and Director Compensation Plans
- Funds Management will analyze on a case-by-case basis proposals on executive or director compensation plans, with the view
that viable compensation programs reward the creation of shareholder wealth by having high payout sensitivity to increases
in shareholder value.
■
Disclosure on Executive or Director Compensation Cap or Restrict Executive or Director Compensation
- Funds Management will generally vote for shareholder proposals requiring companies to report on their executive retirement
benefits (deferred compensation, split-dollar life insurance, SERPs, and pension benefits. Funds Management will generally
vote for shareholder proposals requesting to put extraordinary benefits contained in SERP agreements to a shareholder vote,
unless the company's executive pension plans do not contain excessive benefits beyond what is offered under employee-wide
plans. Funds Management will generally vote against proposals that seek to limit executive and director pay.
In all cases where the Proxy Committee makes the decision regarding how a particular proxy should be voted, the Proxy Committee
exercises its voting discretion in accordance with the voting philosophy of the Funds and in the best interests of Fund shareholders.
In deciding how to vote, the Proxy Committee may rely on independent research, input and recommendations from third parties
including independent proxy services, other independent sources, sub-advisers, company managements and shareholder groups
as part of its decision-making process.
In most cases, any potential conflicts of interest involving Funds Management or any affiliate regarding a proxy are avoided
through the strict and objective application of the Fund's voting guidelines. However, when the Proxy Committee is aware of
a material conflict of interest regarding a matter that would otherwise be considered on a case-by-case basis by the Proxy
Committee, the Proxy Committee shall address the material conflict by using any of the following methods: (i) instructing
the proxy voting agent to vote in accordance with the recommendation it makes to its clients; (ii) disclosing the conflict
to the Board and obtaining their consent before voting; (iii) submitting the matter to the Board to exercise its authority
to vote on such matter; (iv) engaging an independent fiduciary who will direct the Proxy Committee on voting instructions
for the proxy; (v) consulting with outside legal counsel for guidance on resolution of the conflict of interest; (vi) erecting
information barriers around the person or persons making voting decisions; (vii) voting in proportion to other shareholders;
or (viii) voting in other ways that are consistent with each Fund's obligation to vote in the best interests of its shareholders.
Additionally, the Proxy Committee does not permit its votes to be influenced by any conflict of interest that exists for any
other affiliated person of the Funds (such as a subadviser or principal underwriter) and the Proxy Committee votes all such
matters without regard to the conflict. The Proxy Voting Procedures may reflect voting positions that differ from practices
followed by other companies or subsidiaries of Wells Fargo & Company.
While Funds Management uses its best efforts to vote proxies, in certain circumstances it may be impractical or impossible
for Funds Management to vote proxies (e.g., limited value or unjustifiable costs). For example, in accordance with local law
or business practices, many foreign companies prevent the sales of shares that have been voted for a certain period beginning
prior to the shareholder meeting and ending on the day following the meeting ("share blocking"). Due to these restrictions,
Funds Management must balance the benefits to its clients of voting proxies against the potentially serious portfolio management
consequences of a reduced flexibility to sell the underlying shares at the most advantageous time. As a result, Funds Management
will generally not vote those proxies in the absence of an unusual, significant vote or compelling economic importance. Additionally,
Funds Management may not be able to vote proxies for certain foreign securities if Funds Management does not receive the proxy
statement in time to vote the proxies due to custodial processing delays.
As a general matter, securities on loan will not be recalled to facilitate proxy voting (in which case the borrower of the
security shall be entitled to vote the proxy). However, if the Proxy Committee is aware of an item in time to recall the security
and has determined in good faith that the importance of the matter to be voted upon outweighs the loss in lending revenue
that would result from recalling the security (i.e., if there is a controversial upcoming merger or acquisition, or some other
significant matter), the security will be recalled for voting.
Information regarding how the Funds voted proxies relating to portfolio securities held during the most recent 12-month period
ended June 30 may be obtained on the Funds' Web site at wellsfargoadvantagefunds.com or by accessing the SEC's Web site at
sec.gov.
POLICIES AND PROCEDURES FOR DISCLOSURE OF FUND PORTFOLIO HOLDINGS
I.
Scope of Policies and Procedures
. The following policies and procedures (the "Portfolio Holdings Procedures") govern the disclosure of portfolio holdings
and any ongoing arrangements to make available information about portfolio holdings for the separate series of Wells Fargo
Funds Trust ("Funds Trust"), Wells Fargo Master Trust ("Master Trust"), Wells Fargo Variable Trust ("Variable Trust") and
Asset Allocation Trust (each of Funds Trust, Master Trust, Variable Trust and Asset Allocation Trust referred to collectively
herein as the "Funds" or individually as the "Fund") now existing or hereafter created.
II.
Disclosure Philosophy
. The Funds have adopted these Portfolio Holdings Procedures to ensure that the disclosure of a Fund's portfolio holdings
is accomplished in a manner that is consistent with a Fund's fiduciary duty to its shareholders. For purposes of these Portfolio
Holdings Procedures, the term "portfolio holdings" means the stock, bonds and derivative positions held by a non-money market
Fund and does not include the cash investments held by the Fund. For money market funds, the term "portfolio holdings" includes
cash investments, such as investments in repurchase agreements.
Under no circumstances shall Funds Management or the Funds receive any compensation in return for the disclosure of information
about a Fund's portfolio securities or for any ongoing arrangements to make available information about a Fund's portfolio
securities.
III.
Disclosure of Fund Portfolio Holdings
. The complete portfolio holdings and top ten holdings information referenced below (except for the Funds of Master Trust,
Variable Trust and Asset Allocation Trust) will be available on the Funds' website until updated for the next applicable period.
Funds Management may withhold any portion of a Fund's portfolio holdings from online disclosure when deemed to be in the best
interest of the Fund. Once holdings information has been posted on the website, it may be further disseminated without restriction.
A.
Complete Holdings
. The complete portfolio holdings for each Fund (except for money market funds and funds that operate as fund of funds) shall
be made publicly available on the Funds' website (wellsfargoadvantagefunds.com) on a monthly, 30-day or more delayed basis.
Money market Fund holdings shall be made publicly available on the Fund's website on a 1-day delayed basis. In addition to
the foregoing, each money market Fund shall post on its website, for a period of not less than six months, beginning no later
than the fifth business day of the month, a schedule of its investments, as of the last business day of the prior month, that
includes the information required by rule 2a-7(c)(12) under the Investment Company Act of 1940. The categories of information
included on the website may differ slightly from what is included in the Funds' Statement of Investments.
B.
Top Ten Holdings
. Top ten holdings information (excluding derivative positions) for each Fund (except for funds that operate as fund of funds
and money market funds) shall be made publicly available on the Funds' website on a monthly, seven-day or more delayed basis.
C.
Fund of Funds Structure
.
1. The underlying funds held by a fund that operates as a fund of funds shall be posted to the Funds' website and included
in fund fact sheets on a monthly, seven-day or more delayed basis.
2. A change to the underlying funds held by a Fund in a fund of funds structure or changes in a Fund's target allocations
between or among its fixed-income and/or equity investments may be posted to the Funds' website simultaneous with the change.
3. For purposes of the foregoing provisions in III.C.1-2, any Fund that invests substantially all of its assets in Asset
Allocation Trust shall not treat such investment as a portfolio holding and shall look through to the underlying funds held
by Asset Allocation Trust.
Furthermore, as required by the SEC each Fund shall file its complete portfolio holdings schedule in public filings made with
the SEC on a quarterly basis. Each Fund is required to file its complete portfolio schedules for the second and fourth fiscal
quarter on Form N-CSR, and each Fund is required to file its complete portfolio schedules for the first and third fiscal quarters
on From N-Q, in each instance within 60 days of the end of the Fund's fiscal quarter. Through Form N-CSR and Form N-Q filings
made with the SEC, the Funds' full portfolio holdings will be publicly available to shareholders on a quarterly basis. Such
filings shall be made on or shortly before the 60th day following the end of a fiscal quarter. In addition, each money market
Fund is required to file with the SEC by the fifth business day of each month, a report on Form N-MFP of portfolio holdings
that is current as of the last business day of the previous month; the SEC makes each Form N-MFP publicly available on a delayed
basis (presently 60 days after the end of the month to which the information in the report relates).
Each Fund's complete portfolio schedules for the second and fourth fiscal quarter, required to be filed on Form N-CSR, shall
be delivered to shareholders in the Fund's semi-annual and annual reports. Each Fund's complete portfolio schedule for the
first and third fiscal quarters, required to be filed on Form N-Q, will not be delivered to shareholders. Each Fund, however,
shall include appropriate disclosure in its semi-annual and annual reports as to how a shareholder may obtain holdings information
for the Fund's first and third fiscal quarters.
IV.
List of Approved Recipients
. The following list describes the limited circumstances in which a Fund's portfolio holdings may be disclosed to selected
third parties in advance of the monthly release on the Funds' website. In each instance, a determination will be made by Funds
Management that such advance disclosure is supported by a legitimate business purpose and that the recipients, where feasible,
are subject to an independent duty not to disclose or trade on the nonpublic information.
A.
Sub-Advisers
. Sub-advisers shall have full daily access to fund holdings for the Fund(s) for which they have direct management responsibility.
Sub-advisers may also release and discuss portfolio holdings with various broker/dealers for purposes of analyzing the impact
of existing and future market changes on the prices, availability/demand and liquidity of such securities, as well as for
the purpose of assisting portfolio managers in the trading of such securities. A new Fund sub-adviser may periodically receive
full portfolio holdings information for such Fund from the date of Board approval through the date upon which they take over
day-to-day investment management activities. Such disclosure will be subject to confidential treatment.
B.
Money Market Portfolio Management Team
. The money market portfolio management team at Wells Capital Management Incorporated ("Wells Capital Management") shall have
full daily access to daily transaction information across the Wells Fargo Advantage Funds for purposes of anticipating money
market sweep activity which in turn helps to enhance liquidity management within the money market funds.
C.
Funds Management/Wells Fargo Funds Distributor, LLC
.
1. Funds Management personnel that deal directly with the processing, settlement, review, control, auditing, reporting, and/
or valuation of portfolio trades shall have full daily access to Fund portfolio holdings through access to PNC's Datapath
system.
2. Funds Management personnel that deal directly with investment review and analysis of the Funds shall have full daily access
to Fund portfolio holdings through Factset, a program that is used to, among other things, evaluate portfolio characteristics
against available benchmarks.
3. Funds Management and Funds Distributor personnel may be given advance disclosure of any changes to the underlying funds
in a fund of funds structure or changes in a Fund's target allocations that result in a shift between or among its fixed-income
and/or equity investments.
D.
External Servicing Agents
. Appropriate personnel employed by entities that assist in the review and/or processing of Fund portfolio transactions, employed
by the fund accounting agent, the custodian and the trading settlement desk at Wells Capital Management (only with respect
to the Funds that Wells Capital Management sub-advises), shall have daily access to all Fund portfolio holdings. In addition,
certain of the sub-advisers utilize the services of software provider Advent to assist with portfolio accounting and trade
order management. In order to provide the contracted services to the sub-adviser, Advent may receive full daily portfolio
holdings information directly from the Funds' accounting agent however, only for those Funds in which such subadviser provides advisory
services. Funds Management also utilizes the services of Institutional Shareholder Services ("ISS") to assist with proxy voting
and B share financing, respectively. ISS may receive full Fund portfolio holdings on a weekly basis for the Funds for which
it provides services.
E.
Rating Agencies
. Nationally Recognized Statistical Ratings Organizations ("NRSROs") may receive full Fund holdings for rating purposes.
F.
Reorganizations
. Entities hired as trading advisors that assist with the analysis and trading associated with transitioning portfolios may
receive full portfolio holdings of both the target fund and the acquiring fund. In addition, the portfolio managers of the
target fund and acquiring fund may receive full portfolio holdings of the acquiring fund and target fund, respectively, in
order to assist with aligning the portfolios prior to the closing date of the reorganization.
G.
Investment Company Institute
. The Investment Company Institute may receive information about full money market Fund holdings concurrently at the time
each money market Fund files with the SEC a report on Form N-MFP.
V.
Additions to List of Approved Recipients
. Any additions to the list of approved recipients requires approval by the President and Chief Legal Officer of the Funds
based on a review of: (i) the type of fund involved; (ii) the purpose for receiving the holdings information; (iii) the intended
use of the information; (iv) the frequency of the information to be provided; (v) the length of the lag, if any, between the
date of the information and the date on which the information will be disclosed; (vi) the proposed recipient's relationship
to the Funds; (vii) the ability of Funds Management to monitor that such information will be used by the proposed recipient
in accordance with the stated purpose for the disclosure; (viii) whether a confidentiality agreement will be in place with
such proposed recipient; and (ix) whether any potential conflicts exist regarding such disclosure between the interests of
Fund shareholders, on the one hand, and those of the Fund's adviser, principal underwriter, or any affiliated person of the
Fund.
VI.
Funds Management Commentaries
. Funds Management may disclose any views, opinions, judgments, advice or commentary, or any analytical, statistical, performance
or other information in connection with or relating to a Fund or its portfolio holdings (including historical holdings information),
or any changes to the portfolio holdings of a Fund. The portfolio commentary and statistical information may be provided to
members of the press, shareholders in the Funds, persons considering investment in the Funds or representatives of such shareholders
or potential shareholders. The content and nature of the information provided to each of these persons may differ.
Certain of the information described above will be included in periodic fund commentaries (e.g. quarterly, monthly, etc.) and
will contain information that includes, among other things, top contributors/detractors from fund performance and significant
portfolio changes during the relevant period (e.g. calendar quarter, month, etc.). This information will be posted contemporaneously
with their distribution on the Funds' website.
No person shall receive any of the information described above if, in the sole judgment of Funds Management, the information
could be used in a manner that would be harmful to the Funds.
VII.
Board Approval
. The Board shall review and reapprove these Portfolio Holdings Procedures, including the list of approved recipients, as
often as they deem appropriate, but not less often than annually, and make any changes that they deem appropriate.
VIII.
Education Component
. In order to promote strict compliance with these Portfolio Holdings Procedures, Funds Management has informed its employees,
and other parties possessing Fund portfolio holdings information (such as sub-advisers, the fund accounting agent and the
custodian), of the limited circumstances in which the Funds' portfolio holdings may be disclosed in advance of the monthly
disclosure on the Funds' website and the ramifications, including possible dismissal, if disclosure is made in contravention
of these Portfolio Holdings Procedures.
CAPITAL STOCK
The Funds are eleven series of the Trust in the Wells Fargo Advantage family of funds. The Trust was organized as a Delaware
statutory trust on March 10, 1999.
Most of the Trust's series are authorized to issue multiple classes of shares, one class generally subject to a front-end
sales charge and, in some cases, classes subject to a CDSC, that are offered to retail investors. Certain of the Trust's series
also are authorized to issue other classes of shares, which are sold primarily to institutional investors. Each share in a
series represents an equal, proportionate interest in the series with all other shares. Shareholders bear their pro rata portion
of a series' operating expenses, except for certain class-specific expenses (e.g., any state securities registration fees,
shareholder servicing fees or distribution fees that may be paid under Rule 12b-1) that are allocated to a particular class.
Please contact Investor Services at
1-800-222-8222
if you would like additional information about other series or classes of shares offered.
With respect to matters affecting one class but not another, shareholders vote as a class; for example, the approval of a
Plan. Subject to the foregoing, all shares of a Fund have equal voting rights and will be voted in the aggregate, and not
by series, except where voting by a series is required by law or where the matter involved only affects one series. For example,
a change in a Fund's fundamental investment policy affects only one series and would be voted upon only by shareholders of
the Fund involved. Additionally, approval of an advisory agreement, since it affects only one Fund, is a matter to be determined
separately by each series. Approval by the shareholders of one series is effective as to that series whether or not sufficient
votes are received from the shareholders of the other series to approve the proposal as to those series.
As used in the Prospectus(es) and in this SAI, the term "majority," when referring to approvals to be obtained from shareholders
of a class of shares of a Fund means the vote of the lesser of (i) 67% of the shares of the class represented at a meeting
if the holders of more than 50% of the outstanding shares of the class are present in person or by proxy, or (ii) more than
50% of the outstanding shares of the class of the Fund. The term "majority," when referring to approvals to be obtained from
shareholders of the Fund, means the vote of the lesser of (i) 67% of the shares of the Fund represented at a meeting if the
holders of more than 50% of the outstanding shares of the Fund are present in person or by proxy, or (ii) more than 50% of
the outstanding shares of the Fund. The term "majority," when referring to the approvals to be obtained from shareholders
of the Trust as a whole, means the vote of the lesser of (i) 67% of the Trust's shares represented at a meeting if the holders
of more than 50% of the Trust's outstanding shares are present in person or by proxy, or (ii) more than 50% of the Trust's
outstanding shares.
Gateway blended Funds and gateway feeder Funds are interestholders of the Master Trust master portfolios in which they invest
and may be asked to approve certain matters by vote or by written consent pursuant to the Master Trust's Declaration of Trust.
Gateway blended Funds, Funds that invest substantially all of their assets in two or more master portfolios of Master Trust,
are not required to pass through their voting rights to their shareholders. Gateway feeder Funds, Funds that invest substantially
all of their assets in one master portfolio of Master Trust, are not required to, but may, pass through their voting rights
to their shareholders. Specifically, a gateway feeder Fund must either (i) seek instructions from its shareholders with regard
to the voting of all proxies with respect to a security and vote such proxies only in accordance with such instructions, or
(ii) vote the shares held by it in the same proportion as the vote of all other holders of such security.
Shareholders are not entitled to any preemptive rights. All shares are issued in uncertificated form only, and, when issued
will be fully paid and non-assessable by the Trust. The Trust may dispense with an annual meeting of shareholders in any year
in which it is not required to elect Trustees under the 1940 Act.
Each share of a class of a Fund represents an equal proportional interest in the Fund with each other share of the same class
and is entitled to such dividends and distributions out of the income earned on the assets belonging to the Fund as are declared
in the discretion of the Trustees. In the event of the liquidation or dissolution of the Trust, shareholders of a Fund are
entitled to receive the assets attributable to that Fund that are available for distribution, and a distribution of any general
assets not attributable to a particular Fund that are available for distribution in such manner and on such basis as the Trustees
in their sole discretion may determine.
Set forth below as of May 2, 2013, is the name, address and share ownership of each person with record ownership of 5% or
more of a class of a Fund and each person known by the Trust to have beneficial ownership of 25% or more of the voting securities
of the Fund as a whole. Except as identified below, no person with record ownership of 5% or more of a class of a Fund is
known by the Trust to have beneficial ownership of such shares.
|
Principal Fund Holders
|
|
Target Today Fund
Class A
|
|
First Clearing, LLC
Special Custody Account For The
Exclusive Benefit Of Customers
2801 Market Street
Saint Louis, MO 63103-2523
|
57.28%
|
|
|
Target Today Fund
Class B
|
|
Wells Fargo Bank, NA
Custodian For The Simple IRA Of
Marvin E. Sasnett
9301 S Barnes Ave.
Oklahoma City, OK 73159-6842
|
41.17%
|
|
|
Morgan Stanley Smith Barney
Harborside Financial Center
Plaza 2, 3rd Floor
Jersey City, NJ 07311
|
14.66%
|
|
|
Bruce W. Lander
Carole A. Lander JT WROS
401 Maiden Lane
King Of Prussa, PA 19406-1804
|
13.98%
|
|
|
Wells Fargo Bank, NA
Custodian For The Simple IRA Of
Joyce M. Sasnett
9301 S Barnes Ave.
Oklahoma City, OK 73159-6842
|
12.39%
|
|
|
Wells Fargo Bank, NA
Custodian For the IRA Of
Ann B. Hinson
1206 Essex Cir NW
Wilson, NC 27896-2006
|
9.05%
|
|
|
Target Today Fund
Class C
|
|
First Clearing, LLC
Special Custody Account For The
Exclusive Benefit Of Customers
2801 Market Street
Saint Louis, MO 63103-2523
|
76.78%
|
|
|
American Enterprise Investment Svc
707 2nd Ave South
Minneapolis, MN 55402-2405
|
9.21%
|
|
|
Wells Fargo Bank FBO
Various Retirement Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
5.43%
|
|
|
Target Today Fund
Administrator Class
|
|
|
|
Wells Fargo Bank FBO
Various Retirement Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
28.10%
|
|
|
Wells Fargo Bank, NA
Omnibus Acct. For Various Ret Plans
1525 West WT Harris Blvd
Charlotte, NC 28288-1076
|
26.71%
|
|
|
NFS LLC FEBO
FIIOC As Agent For
Qualified Employee Benefit
Plans 401K FINOPS-IC Funds
100 Magellan Way KW1C
Covington, KY 41015-1987
|
26.25%
|
|
|
MG Trust Company Trustee
City of Tempe Health Reim Plan
700 17th St. Ste 300
Denver, CO 80202-3531
|
5.25%
|
|
|
Target Today Fund
Institutional Class
|
|
|
|
Texa$avers 401k Plan
Employee Retirement System Of Texas
c/o Fascore, LLC
8515 Orchard Rd.
Greenwood Village, CO 80111-5002
|
32.99%
|
|
|
Wells Fargo Bank FBO
A Wells Fargo Company
FBO Wells Fargo 401k Plan
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
25.08%
|
|
|
Texa$avers 457 Plan
Employee Retirement System Of Texas
c/o Fascore, LLC
8515 Orchard Rd.
Greenwood Village, CO 80111-5002
|
9.26%
|
|
|
Wells Fargo Bank, NA
Omnibus Acct. For Various Ret Plans
1525 West WT Harris Blvd
Charlotte, NC 28288-1076
|
8.76%
|
|
|
Wells Fargo Bank FBO
Various Retirement Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
7.16%
|
|
|
Target Today Fund
Investor Class
|
|
|
|
Massachusetts Mutual Insurance Co.
1295 State Street
Springfield, MA 01111-0001
|
28.37%
|
|
|
Massachusetts Mutual Insurance Co.
1295 State Street
Springfield, MA 01111-0001
|
13.27%
|
|
|
Target Today Fund
Class R4
|
|
|
|
Wells Fargo Bank FBO
Various Retirement Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
94.73%
|
|
|
Target 2010 Fund
Class A
|
|
|
|
First Clearing, LLC
Special Custody Account For The
Exclusive Benefit Of Customers
2801 Market Street
Saint Louis, MO 63103-2523
|
57.05%
|
|
|
Wells Fargo Bank FBO
Various Retirement Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
7.56%
|
|
|
Target 2010 Fund
Class B
|
|
|
|
First Clearing, LLC
Special Custody Account For The
Exclusive Benefit Of Customers
2801 Market Street
Saint Louis, MO 63103-2523
|
77.78%
|
|
|
Target 2010 Fund
Class C
|
|
|
|
First Clearing, LLC
Special Custody Account For The
Exclusive Benefit Of Customers
2801 Market Street
Saint Louis, MO 63103-2523
|
65.02%
|
|
|
American Enterprise Investment Services
707 2nd Ave. South
Minneapolis, MN 55440-9446
|
20.30%
|
|
|
Target 2010 Fund
Administrator Class
|
|
|
|
Wells Fargo Bank NA
Omnibus Acct For Various Ret Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
42.16%
|
|
|
NFS LLC FEBO
FIIOC As Agent For
Qualified Employee Benefit
Plans 401K FINOPS-IC Funds
100 Magellan Way KW1C
Covington, KY 41015-1987
|
29.82%
|
|
|
Wells Fargo Bank FBO
Various Retirement Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
12.38%
|
|
|
Wells Fargo Bank West TTEE FBO
Various Fascore, LLC Record Kept Plan
8515 E Orchard Rd.
Greenwood Village, CO 80111-5022
|
5.20%
|
|
|
Target 2010 Fund
Institutional Class
|
|
|
|
Wells Fargo Bank NA
Omnibus Acct For Various Ret Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
33.77%
|
|
|
Wells Fargo Bank FBO
A Wells Fargo Company
FBO Wells Fargo 401k Plan
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
16.75%
|
|
|
Wells Fargo Bank FBO
Various Retirement Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
14.85%
|
|
|
Wilmington Trust RISC As TTEE FBO
Greenheck Fan Corp. 401k & Savings
PO ox 52129
Phoenix, AZ 85072-2129
|
6.12%
|
|
|
T Rowe Price Retirement Services Inc
FBO Retirement Plan Clients
4515 Painters Mill Road
Owings Mills, MD 21117-4903
|
5.63%
|
|
|
Target 2010 Fund
Investor Class
|
|
|
|
Massachusetts Mutual Insurance Co.
1295 State Street
Springfield, MA 01111-0001
|
34.26%
|
|
|
Taynik & Co.
c/o Investors Bank & Trust Co.
Attn: Mutual Fund Processing
200 Clarendon Street
Boston, MA 02116-5097
|
6.58%
|
|
|
Target 2010 Fund
Class R4
|
|
|
|
Wells Fargo Bank FBO
Various Retirement Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
94.00%
|
|
|
NFS, LLC FEBO
FIIOC As Agent For
Qualified Employee Benefit
Plans 401k FINOPS-IC Funds
100 Magellan Way
Covington, KY 41015-1987
|
5.88%
|
|
|
Target 2015 Fund
Class A
|
|
|
|
Wells Fargo Bank NA
Cust for the Account of Dixie A Mitchell
PO Box 189
Sumas, WA 98295-0189
|
55.73%
|
|
|
Tammy Langlois
Rickey Langlois JT WROS
142 Green Rd
Cambridge, NY 12816-2222
|
26.00%
|
|
|
Wells Fargo Funds Seeding Account
c/o Wells Fargo Investments Group Inc.
525 Market Street 9th Floor
San Francisco, CA 94105-2779
|
18.27%
|
|
|
Target 2015 Fund
Administrator Class
|
|
|
|
NFS, LLC FEBO
FIIOC As Agent For
Qualified Employee Benefit
Plans 401k FINOPS-IC Funds
100 Magellan Way
Covington, KY 41015-1987
|
59.27%
|
|
|
Wells Fargo Bank FBO
Various Retirement Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
18.33%
|
|
|
Wells Fargo Bank NA
Omnibus Acct For Various Ret Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
8.45%
|
|
|
Target 2015 Fund
Institutional Class
|
|
|
|
Wells Fargo Bank FBO
A Wells Fargo Company
FBO Wells Fargo 401k Plan
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
36.34%
|
|
|
Wells Fargo Bank FBO
Various Retirement Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
12.33%
|
|
|
NFS, LLC FEBO
FIIOC As Agent For
Qualified Employee Benefit
Plans 401k FINOPS-IC Funds
100 Magellan Way
Covington, KY 41015-1987
|
7.49%
|
|
|
Wells Fargo Bank NA
Omnibus Acct For Various Ret Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
6.43%
|
|
|
Target 2015 Fund
Investor Class
|
|
|
|
Massachusetts Mutual Insurance Co.
1295 State Street
Springfield, MA 01111-0001
|
53.58%
|
|
|
Massachusetts Mutual Insurance Co.
1295 State Street
Springfield, MA 01111-0001
|
11.41%
|
|
|
Target 2015 Fund
Class R4
|
|
|
|
Wells Fargo Bank FBO
Various Retirement Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
79.31%
|
|
|
NFS, LLC FEBO
FIIOC As Agent For
Qualified Employee Benefit
Plans 401k FINOPS-IC Funds
100 Magellan Way
Covington, KY 41015-1987
|
14.26%
|
|
|
Massachusetts Mutual Insurance Co.
1295 State Street
Springfield, MA 01111-0001
|
6.33%
|
|
|
Target 2020 Fund
Class A
|
|
|
|
First Clearing, LLC
Special Custody Account For The
Exclusive Benefit Of Customers
2801 Market Street
Saint Louis, MO 63103-2523
|
52.90%
|
|
|
Wells Fargo Bank FBO
Various Retirement Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
9.74%
|
|
|
Target 2020 Fund
Class B
|
|
|
|
First Clearing, LLC
Special Custody Account For The
Exclusive Benefit Of Customers
2801 Market Street
Saint Louis, MO 63103-2523
|
75.62%
|
|
|
Target 2020 Fund
Class C
|
|
|
|
First Clearing, LLC
Special Custody Account For The
Exclusive Benefit Of Customers
2801 Market Street
Saint Louis, MO 63103-2523
|
65.09%
|
|
|
American Enterprise Investment Services
PO Box 9446
Minneapolis, MN 55440-9446
|
7.34%
|
|
|
MLPF & S For The Sole Benefit
Of Its Customers
Attn: Mutual Fund Administration
4800 Deer Lake Dr. East, 2nd Floor
Jacksonville, FL 32246-6484
|
5.68%
|
|
|
Target 2020 Fund
Administrator Class
|
|
|
|
Wells Fargo Bank NA
Omnibus Acct For Various Ret Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
44.29%
|
|
|
NFS LLC FEBO
FIIOC As Agent For
Qualified Employee Benefit
Plans 401K FINOPS-IC Funds
100 Magellan Way KW1C
Covington, KY 41015-1987
|
29.76%
|
|
|
Wells Fargo Bank FBO
Various Retirement Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
9.83%
|
|
|
Wells Fargo Bank West TTEE FBO
Various Fascore, LLC Record Kept Plan
8515 E Orchard Rd.
Greenwood Village, CO 80111-5022
|
5.25%
|
|
|
Target 2020 Fund
Institutional Class
|
|
|
|
Wells Fargo Bank NA
Omnibus Acct For Various Ret Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
31.42%
|
|
|
Wells Fargo Bank FBO
A Wells Fargo Company
FBO Wells Fargo 401k Plan
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
23.89%
|
|
|
Wells Fargo Bank FBO
Various Retirement Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
14.14%
|
|
|
Target 2020 Fund
Investor Class
|
|
|
|
Massachusetts Mutual Insurance Co.
1295 State Street
Springfield, MA 01111-0001
|
23.71%
|
|
|
Taynik & Co.
c/o Investors Bank & Trust Co.
Attn: Mutual Fund Processing
200 Clarendon Street
Boston, MA 02116-5097
|
10.40%
|
|
|
Target 2020 Fund
Class R4
|
|
|
|
Wells Fargo Bank FBO
Various Retirement Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
93.67%
|
|
|
NFS LLC FEBO
FIIOC As Agent For
Qualified Employee Benefit
Plans 401K FINOPS-IC Funds
100 Magellan Way KW1C
Covington, KY 41015-1987
|
6.31%
|
|
|
Target 2025 Fund
Fund Level
|
|
|
|
Wells Fargo Bank FBO
A Wells Fargo Company
FBO Wells Fargo 401k Plan
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
43.38%
|
|
|
Target 2025 Fund
Class A
|
|
|
|
Pershing LLC
1 Pershing Plz
Jersey City, NJ 07399-0002
|
34.06%
|
|
|
Wells Fargo Bank NA
Cust for the Rollover IRA of Susan N Hammond
10425 Weller Dr
Austin, TX 78750-2569
|
15.61%
|
|
|
Daniel D Arata & Karen D Arata JT TN
10029 Nantucket Dr
San Ramon, CA 94582-2865
|
13.90%
|
|
|
Wells Fargo Bank NA
Roth Contribution IRA
Peter J Ferraro GDN
25 Lightfoot Dr
Stafford, VA 22554-8509
|
10.68%
|
|
|
Wells Fargo Bank NA
Cust for the Simple IRA of
John J Jancsek
8400 Coral Sea St NE Ste 1800
Mounds View, MN 55112-4392
|
8.62%
|
|
|
Wells Fargo Bank NA
Roth Contribution IRA
Peter J Ferraro GDN
25 Lightfoot Dr
Stafford, VA 22554-8509
|
5.88%
|
|
|
Target 2025 Fund
Administrator Class
|
|
|
|
NFS, LLC FEBO
FIIOC As Agent For
Qualified Employee Benefit
Plans 401k FINOPS-IC Funds
100 Magellan Way
Covington, KY 41015-1987
|
56.52%
|
|
|
Wells Fargo Bank FBO
Various Retirement Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
18.35%
|
|
|
Wells Fargo Bank NA
Omnibus Acct For Various Ret Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
7.62%
|
|
|
ING National Trust
As Trustee Or Custodian For
Core Market Retirement Plans
1 Heritage Dr.
Quincy, MA 02171-2105
|
5.80%
|
|
|
Target 2025 Fund
Institutional Class
|
|
|
|
Wells Fargo Bank FBO
A Wells Fargo Company
FBO Wells Fargo 401k Plan
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
62.12%
|
|
|
Wells Fargo Bank FBO
Various Retirement Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
7.36%
|
|
|
Wells Fargo Bank NA
Omnibus Acct For Various Ret Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
5.15%
|
|
|
Target 2025 Fund
Investor Class
|
|
|
|
Massachusetts Mutual Insurance Co.
1295 State Street
Springfield, MA 01111-0001
|
61.68%
|
|
|
Massachusetts Mutual Insurance Co.
1295 State Street
Springfield, MA 01111-0001
|
8.15%
|
|
|
Target 2025 Fund
Class R4
|
|
|
|
Wells Fargo Bank FBO
Various Retirement Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
77.37%
|
|
|
Massachusetts Mutual Insurance Co.
1295 State Street
Springfield, MA 01111-0001
|
18.61%
|
|
|
Target 2030 Fund
Class A
|
|
|
|
First Clearing, LLC
Special Custody Account For The
Exclusive Benefit Of Customers
2801 Market Street
Saint Louis, MO 63103-2523
|
50.45%
|
|
|
Wells Fargo Bank FBO
Various Retirement Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
12.67%
|
|
|
Target 2030 Fund
Class B
|
|
|
|
First Clearing, LLC
Special Custody Account For The
Exclusive Benefit Of Customers
2801 Market Street
Saint Louis, MO 63103-2523
|
49.78%
|
|
|
American Enterprise Investment Services
PO Box 9446
Minneapolis, MN 55440-9446
|
7.41%
|
|
|
Wells Fargo Bank, NA
Custodian For The IRA Of
Anne M. Halstater
112 Hogan Ridge Ct.
Chapel Hill, NC 27516-4318
|
7.30%
|
|
|
NFS LLC FEBO
NFS/FMTA IRA
FBO Matseliso Emily Heigel
1858 Manor Ridge Dr
Lancaster, PA 17603-4447
|
5.80%
|
|
|
Charles Schwab & Co. Inc.
Special Custody Account FBO Customers
Attn Mutual Funds
101 Montgomery St
San Francisco, CA 94104-4151
|
5.45%
|
|
|
Target 2030 Fund
Class C
|
|
|
|
First Clearing, LLC
Special Custody Account For The
Exclusive Benefit Of Customers
2801 Market Street
Saint Louis, MO 63103-2523
|
62.41%
|
|
|
American Enterprise Investment Services
PO Box 9446
Minneapolis, MN 55440-9446
|
10.47%
|
|
|
Emjay Corp., Trustee FBO:
Fascroe, LLC Retirement Plans
8515 E. Orchard Rd.
Greenwood Village, CO 80111-5002
|
5.40%
|
|
|
Target 2030 Fund
Administrator Class
|
|
|
|
Wells Fargo Bank NA
Omnibus Acct For Various Ret Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
45.84%
|
|
|
NFS LLC FEBO
FIIOC As Agent For
Qualified Employee Benefit
Plans 401K FINOPS-IC Funds
100 Magellan Way KW1C
Covington, KY 41015-1987
|
24.08%
|
|
|
Wells Fargo Bank FBO
Various Retirement Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
11.80%
|
|
|
Wells Fargo Bank West TTEE FBO
Various Fascore, LLC Record Kept Plan
8515 E Orchard Rd.
Greenwood Village, CO 80111-5022
|
5.54%
|
|
|
Target 2030 Fund
Institutional Class
|
|
|
|
Wells Fargo Bank NA
Omnibus Acct For Various Ret Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
29.76%
|
|
|
Wells Fargo Bank FBO
A Wells Fargo Company
FBO Wells Fargo 401k Plan
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
25.49%
|
|
|
Wells Fargo Bank FBO
Various Retirement Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
15.57%
|
|
|
Target 2030 Fund
Investor Class
|
|
|
|
Massachusetts Mutual Insurance Co.
1295 State Street
Springfield, MA 01111-0001
|
22.47%
|
|
|
Taynik & Co.
c/o Investors Bank & Trust Co.
Attn: Mutual Fund Processing
200 Clarendon Street
Boston, MA 02116-5097
|
10.38%
|
|
|
Target 2030 Fund
Class R4
|
|
|
|
Wells Fargo Bank FBO
Various Retirement Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
89.89%
|
|
|
NFS LLC FEBO
FIIOC As Agent For
Qualified Employee Benefit
Plans 401K FINOPS-IC Funds
100 Magellan Way KW1C
Covington, KY 41015-1987
|
10.08%
|
|
|
Target 2035 Fund
Class A
|
|
|
|
Wells Fargo Bank NA Cust
Roth Contribution IRA
Jeffrey E Olson
1210 Longs Peak Ave
Longmont, CO 80501-4439
|
66.63%
|
|
|
Wells Fargo Funds Seeding Account
c/o Wells Fargo Investments Group Inc.
525 Market Street 9th Floor
San Francisco, CA 94105-2779
|
24.18%
|
|
|
Wells Fargo Bank NA Cust
Roth Contribution IRA
Mikal G McDaniel
2570 Plum Tree Ct
Vienna, VA 22181-5412
|
7.04%
|
|
|
Target 2035 Fund
Administrator Class
|
|
|
|
NFS LLC FEBO
FIIOC As Agent For
Qualified Employee Benefit
Plans 401K FINOPS-IC Funds
100 Magellan Way KW1C
Covington, KY 41015-1987
|
48.99%
|
|
|
Wells Fargo Bank FBO
Various Retirement Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
20.98%
|
|
|
Wells Fargo Bank, NA
Omnibus Acct. For Various Ret Plans
1525 West WT Harris Blvd
Charlotte, NC 28288-1076
|
8.87%
|
|
|
ING National Trust
As Trustee Or Custodian For
Core Market Retirement Plans
1 Heritage Dr.
Quincy, MA 02171-2105
|
7.16%
|
|
|
NFS LLC FBO
State Street Bank Trust Co
TTEE Various Retirement Plans
440 Mamaroneck Ave
Harrison, NY 10528-2418
|
6.30%
|
|
|
Target 2035 Fund
Institutional Class
|
|
|
|
Wells Fargo Bank FBO
A Wells Fargo Company
FBO Wells Fargo 401k Plan
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
35.97%
|
|
|
Wells Fargo Bank FBO
Various Retirement Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
15.16%
|
|
|
Wells Fargo Bank NA
Omnibus Acct For Various Ret Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
8.19%
|
|
|
NFS, LLC FEBO
FIIOC As Agent For
Qualified Employee Benefit
Plans 401k FINOPS-IC Funds
100 Magellan Way
Covington, KY 41015-1987
|
7.54%
|
|
|
Target 2035 Fund
Investor Class
|
|
|
|
Massachusetts Mutual Insurance Co.
1295 State Street
Springfield, MA 01111-0001
|
63.30%
|
|
|
Massachusetts Mutual Insurance Co.
1295 State Street
Springfield, MA 01111-0001
|
8.46%
|
|
|
Target 2035 Fund
Class R4
|
|
|
|
Wells Fargo Bank FBO
Various Retirement Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
69.26%
|
|
|
Massachusetts Mutual Insurance Co.
1295 State Street
Springfield, MA 01111-0001
|
18.14%
|
|
|
NFS LLC FEBO
FIIOC As Agent For
Qualified Employee Benefit
Plans 401K FINOPS-IC Funds
100 Magellan Way KW1C
Covington, KY 41015-1987
|
12.50%
|
|
|
Target 2040 Fund
Class A
|
|
|
|
First Clearing, LLC
Special Custody Account For The
Exclusive Benefit Of Customers
2801 Market Street
Saint Louis, MO 63103-2523
|
62.33%
|
|
|
Wells Fargo Bank FBO
Various Retirement Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
5.52%
|
|
|
Target 2040 Fund
Class B
|
|
|
|
First Clearing, LLC
Special Custody Account For The
Exclusive Benefit Of Customers
2801 Market Street
Saint Louis, MO 63103-2523
|
58.48%
|
|
|
Wells Fargo Bank, NA
Custodian For The IRA Of
Billy Meadows
4503 Oxbow Circle, E
Fulshear, TX 77441-4535
|
7.64%
|
|
|
Wells Fargo Bank, NA
Custodian For The IRA Of
Kelly Meadows
390 Meadowlark Circle
Sealy, TX 77474-4126
|
7.15%
|
|
|
Target 2040 Fund
Class C
|
|
|
|
First Clearing, LLC
Special Custody Account For The
Exclusive Benefit Of Customers
2801 Market Street
Saint Louis, MO 63103-2523
|
52.20%
|
|
|
Pershing LLC
1 Pershing Plaza
Jersey City, NJ 07399-0002
|
19.85%
|
|
|
Target 2040 Fund
Administrator Class
|
|
|
|
Wells Fargo Bank NA
Omnibus Acct For Various Ret Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
49.54%
|
|
|
NFS, LLC FEBO
FIIOC As Agent For
Qualified Employee Benefit
Plans 401k FINOPS-IC Funds
100 Magellan Way
Covington, KY 41015-1987
|
20.42%
|
|
|
Wells Fargo Bank FBO
Various Retirement Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
12.51%
|
|
|
Wells Fargo Bank West TTEE FBO
Various Fascore, LLC Record Kept Plan
8515 E Orchard Rd.
Greenwood Village, CO 80111-5022
|
5.43%
|
|
|
Target 2040 Fund
Institutional Class
|
|
|
|
Wells Fargo Bank NA
Omnibus Acct For Various Ret Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
28.03%
|
|
|
Wells Fargo Bank FBO
A Wells Fargo Company
FBO Wells Fargo 401k Plan
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
25.68%
|
|
|
Wells Fargo Bank FBO
Various Retirement Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
17.73%
|
|
|
Target 2040 Fund
Investor Class
|
|
|
|
Massachusetts Mutual Insurance Co.
1295 State Street
Springfield, MA 01111-0001
|
23.38%
|
|
|
Taynik & Co.
c/o Investors Bank & Trust Co.
Attn: Mutual Fund Processing
200 Clarendon Street
Boston, MA 02116-5097
|
9.68%
|
|
|
Target 2040 Fund
Class R4
|
|
|
|
Wells Fargo Bank FBO
Various Retirement Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
87.14%
|
|
|
NFS, LLC FEBO
FIIOC As Agent For
Qualified Employee Benefit
Plans 401k FINOPS-IC Funds
100 Magellan Way
Covington, KY 41015-1987
|
12.82%
|
|
|
Target 2045 Fund
Class A
|
|
|
|
Wells Fargo Funds Seeding Account
c/o Wells Fargo Investments Group Inc.
525 Market Street 9th Floor
San Francisco, CA 94105-2779
|
64.97%
|
|
|
Wells Fargo Bank NA
Cust for the IRA of
Jeremy D Sherman
14413 Outlook St
Overland Park, KS 66223-1227
|
8.61%
|
|
|
Wells Fargo Bank NA
Cust for the Rollover IRA of
Breanna C Korth
3224 Fox Ridge Dr
Waukesha, WI 53189-6867
|
8.31%
|
|
|
Wells Fargo Bank NA
Cust for the IRA of
Jeffery J West
1873 Staghorn Way
Livermore, CA 94550-7188
|
7.52%
|
|
|
Wells Fargo Bank NA
Cust for the Rollover IRA of
Shane M Ferguson
714 Marshall Ave
S Milwaukee, WI 53189-6867
|
5.57%
|
|
|
Wells Fargo Bank NA
Cust for the Rollover IRA of
Tiana R Alden
4748 Hanover Dr
Flower Mound, TX 75028-7323
|
5.01%
|
|
|
Target 2045 Fund
Administrator Class
|
|
|
|
NFS, LLC FEBO
FIIOC As Agent For
Qualified Employee Benefit
Plans 401k FINOPS-IC Funds
100 Magellan Way
Covington, KY 41015-1987
|
43.14%
|
|
|
Wells Fargo Bank FBO
Various Retirement Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
25.40%
|
|
|
Wells Fargo Bank NA
Omnibus Acct For Various Ret Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
10.07%
|
|
|
ING National Trust
As Trustee Or Custodian For
Core Market Retirement Plans
1 Heritage Dr.
North Quincy, MA 02171-2105
|
7.90%
|
|
|
NFS LLC FBO
State Street Bank Trust Co
TTEE Various Retirement Plans
440 Mamaroneck Ave
Harrison, NY 10528-2418
|
5.06%
|
|
|
Target 2045 Fund
Institutional Class
|
|
|
|
Wells Fargo Bank FBO
A Wells Fargo Company
FBO Wells Fargo 401k Plan
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
27.93%
|
|
|
Wells Fargo Bank FBO
Various Retirement Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
17.67%
|
|
|
Wells Fargo Bank NA
Omnibus Acct For Various Ret Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
9.73%
|
|
|
NFS, LLC FEBO
FIIOC As Agent For
Qualified Employee Benefit
Plans 401k FINOPS-IC Funds
100 Magellan Way
Covington, KY 41015-1987
|
6.83%
|
|
|
Massachusetts Mutual Insurance Co.
1295 State Street
Springfield, MA 01111-0001
|
6.48%
|
|
|
Taynik & Co.
c/o Investors Bank & Trust Co.
Attn: Mutual Fund Processing
200 Clarendon Street
Boston, MA 02116-5097
|
5.76%
|
|
|
Target 2045 Fund
Investor Class
|
|
|
|
Massachusetts Mutual Insurance Co.
1295 State Street
Springfield, MA 01111-0001
|
69.35%
|
|
|
Massachusetts Mutual Insurance Co.
1295 State Street
Springfield, MA 01111-0001
|
11.85%
|
|
|
Target 2045 Fund
Class R4
|
|
|
|
Wells Fargo Bank FBO
Various Retirement Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
69.15%
|
|
|
Massachusetts Mutual Insurance Co.
1295 State Street
Springfield, MA 01111-0001
|
17.38%
|
|
|
NFS, LLC FEBO
FIIOC As Agent For
Qualified Employee Benefit
Plans 401k FINOPS-IC Funds
100 Magellan Way
Covington, KY 41015-1987
|
13.31%
|
|
|
Target 2050 Fund
Fund Level
|
|
|
|
Wells Fargo Bank FBO
A Wells Fargo Company
FBO Wells Fargo 401k Plan
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
45.37%
|
|
|
Target 2050 Fund
Class A
|
|
|
|
Wells Fargo Funds Seeding Account
c/o Wells Fargo Investments Group Inc.
525 Market Street 9th Floor
San Francisco, CA 94105-2779
|
83.66%
|
|
|
Wells Fargo Bank NA
Cust for the IRA of
Jeffrey J West
1873 Staghorn Way
Livermore, CA 94550-7188
|
11.55%
|
|
|
Target 2050 Fund
Class C
|
|
|
|
Wells Fargo Funds Seeding Account
c/o Wells Fargo Investments Group Inc.
525 Market Street 9th Floor
San Francisco, CA 94105-2779
|
51.68%
|
|
|
Wells Fargo Bank NA
Cust for the Simple IRA of
Eric W Clawson
3306 Grand Oaks Dr
Pittsburg, KS 66762-9045
|
32.02%
|
|
|
Wells Fargo Bank NA
Cust for the Simple IRA of
Mary J Goedeke
1010 Abby Ln
Pittsburg, KS 66762-2761
|
16.30%
|
|
|
Target 2050 Fund
Administrator Class
|
|
|
|
Wells Fargo Bank NA
Omnibus Acct For Various Ret Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
53.19%
|
|
|
NFS, LLC FEBO
FIIOC As Agent For
Qualified Employee Benefit
Plans 401k FINOPS-IC Funds
100 Magellan Way
Covington, KY 41015-1987
|
16.56%
|
|
|
Wells Fargo Bank FBO
Various Retirement Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
10.64%
|
|
|
Wells Fargo Bank West TTEE FBO
Various Fascore, LLC Record Kept Plan
8515 E Orchard Rd.
Greenwood Village, CO 80111-5022
|
5.28%
|
|
|
Target 2050 Fund
Institutional Class
|
|
|
|
Wells Fargo Bank FBO
A Wells Fargo Company
FBO Wells Fargo 401k Plan
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
57.39%
|
|
|
Wells Fargo Bank NA
Omnibus Acct For Various Ret Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
13.69%
|
|
|
Wells Fargo Bank FBO
Various Retirement Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
10.72%
|
|
|
Target 2050 Fund
Investor Class
|
|
|
|
Massachusetts Mutual Insurance Co.
1295 State Street
Springfield, MA 01111-0001
|
15.61%
|
|
|
Taynik & Co.
c/o Investors Bank & Trust Co.
Attn: Mutual Fund Processing
200 Clarendon Street
Boston, MA 02116-5097
|
12.07%
|
|
|
Great-West Trust Company LLC TTEE
Employee Benefits Clients 401(k)
8515 E Orchard Rd
Greenwood Village, CO 80111-5002
|
7.27%
|
|
|
Target 2050 Fund
Class R4
|
|
|
|
Wells Fargo Bank FBO
Various Retirement Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
94.57%
|
|
|
NFS, LLC FEBO
FIIOC As Agent For
Qualified Employee Benefit
Plans 401k FINOPS-IC Funds
100 Magellan Way
Covington, KY 41015-1987
|
5.35%
|
|
|
Target 2055 Fund
Fund Level
|
|
|
|
Wells Fargo Bank FBO
Various Retirement Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
64.28%
|
|
|
Target 2055 Fund
Class A
|
|
|
|
Wells Fargo Funds Seeding Account
c/o Wells Fargo Investments Group Inc.
525 Market Street 9th Floor
San Francisco, CA 94105-2779
|
61.17%
|
|
|
Wells Fargo Bank NA Cust
Roth Contribution IRA
Ryan D Rutherford
15 Lothian Rd Apt 402
Brighton, MA 02135-5420
|
19.32%
|
|
|
Wells Fargo Bank NA Cust
Roth Contribution IRA
Jerry E Bennett
22205 Tajanta Ct
Apple Valley, CA 92307-4069
|
15.87%
|
|
|
Target 2055 Fund
Administrator Class
|
|
|
|
Wells Fargo Bank FBO
Various Retirement Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
94.87%
|
|
|
Target 2055 Fund
Institutional Class
|
|
|
|
Wells Fargo Bank FBO
Various Retirement Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
75.64%
|
|
|
First Clearing LLC
2801 Market Street
St. Louis, MO 63103-2523
|
9.27%
|
|
|
Target 2055 Fund
Investor Class
|
|
|
|
Massachusett Mutual Insurance Co
1295 State Street
Springfield, MA 01111-0001
|
11.11%
|
|
|
Wells Fargo Bank, NA
Custodian For The IRA Of
Marian M Uriate
2089 Valor Ct
Glenview Nas, IL 60026-8053
|
9.60%
|
|
|
Capital One Sharebuilder Inc.
Omnibus Account
83 S King St Ste 700
Seattle, WA 98104-2851
|
6.54%
|
|
|
Target 2055 Fund
Class R4
|
|
|
|
Wells Fargo Bank FBO
Various Retirement Plans
1525 West WT Harris Blvd.
Charlotte, NC 28262-8522
|
97.90%
|
|
For purposes of the 1940 Act, any person who owns directly or through one or more controlled companies more than 25% of the
voting securities of a company is presumed to "control" such company. Accordingly, to the extent that a person identified
in the foregoing table is identified as the beneficial owner of more than 25% of a Fund, or is identified as the record owner
of more than 25% of a Fund and has voting and/or investment powers, it may be presumed to control such Fund. A controlling
person's vote could have a more significant effect on matters presented to shareholders for approval than the vote of other
Fund shareholders.
OTHER INFORMATION
The Trust's Registration Statement, including the Prospectus(es) and SAI for the Funds and the exhibits filed therewith, may
be examined at the office of the SEC, located at 100 "F" Street NE, in Washington, D.C., 20549-0102. Statements contained
in the Prospectus(es) or the SAI as to the contents of any contract or other document referred to herein or in the Prospectus(es)
are not necessarily complete, and, in each instance, reference is made to the copy of such contract or other document filed
as an exhibit to the Registration Statement, each such statement being qualified in all respects by such reference.
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
KPMG LLP has been selected as the independent registered public accounting firm for the Trust. KPMG LLP provides audit services,
tax return preparation and assistance and consultation in connection with review of certain SEC filings. KPMG LLP's address
is Two Financial Center, 60 South Street, Boston, MA 02111.
FINANCIAL INFORMATION
For each Fund, the audited financial statements for the fiscal year ended February 28, 2013 are hereby incorporated by reference
to the Funds' Annual Report.
APPENDIX A
The ratings of Standard & Poor's ("S&P"), Moody's Investors Services ("Moody's"), Fitch Investor Services ("Fitch"), represent
their opinion as to the quality of debt securities. It should be emphasized, however, that ratings are general and not absolute
standards of quality, and debt securities with the same maturity, interest rate and rating may have different yields while
debt securities of the same maturity and interest rate with different ratings may have the same yield. Subsequent to purchase
by the Funds, an issue of debt securities may cease to be rated or its rating may be reduced below the minimum rating required
for purchase by the Funds. The adviser will consider such an event in determining whether the Fund involved should continue
to hold the obligation.
The following is a description of the ratings given by S&P, Fitch, and Moody's to corporate and municipal bonds and corporate
and municipal commercial paper and variable rate demand obligations.
Corporate Bonds
S&P
S&P rates the long-term debt obligations issued by various entities in categories ranging from "AAA" to "D," according to
quality, as described below. The first four ratings denote investment-grade securities. The ratings from AA to CCC may be
modified by the addition of a plus or minus sign to show relative standing within the major rating categories.
AAA - This is the highest rating assigned by S&P to a debt obligation and indicates an extremely strong capacity to pay interest
and repay principal.
AA - Debt rated AA is considered to have a very strong capacity to pay interest and repay principal and differs from AAA issues
only in a small degree.
A - Debt rated A has a strong capacity to pay interest and repay principal although it is somewhat more susceptible to the
adverse effects of changes in circumstances and economic conditions than debt in higher-rated categories.
BBB - Debt rated BBB is regarded as having an adequate capacity to pay interest and repay principal. Whereas it normally exhibits
adequate protection parameters, adverse economic conditions or changing circumstances are more likely to lead to a weakened
capacity to pay interest and repay principal for debt in this category than for those in higher-rated categories.
BB - Debt rated BB has less near-term vulnerability to default than other speculative issues. However, it faces major ongoing
uncertainties or exposure to adverse business, financial, or economic conditions which could lead to inadequate capacity to
meet timely interest and principal payments.
B - Debt rated B has greater vulnerability to default but currently has the capacity to meet interest payments and principal
repayments. Adverse business, financial, or economic conditions will likely impair capacity or willingness to pay interest
and repay principal.
CCC - Debt CCC is currently vulnerable and is dependent upon favorable business, financial, and economic conditions to meet
timely interest and principal payments.
CC - Debt rated CC is currently highly vulnerable to nonpayment. Debt rated CC is subordinate to senior debt rated CCC.
C - Debt rated C is currently highly vulnerable to nonpayment. Debt rated C is subordinate to senior debt rated CCC-. The
C rating may be used to cover a situation where a bankruptcy petition has been filed or similar action taken, but payments
on this obligation are being continued. Debt rated C also will be assigned to a preferred stock issue in arrears on dividends
or sinking fund payments, but that is currently paying.
D - Debt rated D is currently in default, where payment of interest and/or repayment of principal is in arrears.
Moody's
Moody's rates the long-term debt obligations issued by various entities in categories ranging from "Aaa" to "C," according
to quality, as described below. The first four denote investment-grade securities.
Aaa - Bonds rated Aaa are judged to be of the best quality. They carry the smallest degree of investment risk, and interest
payments are protected by a large or by an exceptionally stable margin and principal is secure. While the various protective
elements are likely to change, such changes as can be visualized are most unlikely to impair the fundamentally strong position
of such issues.
Aa - Bonds rated Aa are judged to be of high quality by all standards. Together with the Aaa group, such bonds comprise what
are generally known as high grade bonds. They are rated lower than the best bonds because margins of protection may not be
as large as in Aaa securities or fluctuation of protective elements may be of greater amplitude or there may be other elements
present which make the long-term risks appear somewhat larger than in Aaa securities.
A - Bonds rated A possess many favorable investment attributes and are to be considered upper to medium investment-grade obligations.
Factors giving security to principal and interest are considered adequate, but elements may be present which suggest a susceptibility
to impairment sometime in the future.
Baa - Bonds rated Baa are considered medium-grade (and still investment-grade) obligations, i.e., they are neither highly
protected nor poorly secured. Interest payments and principal security appear adequate for the present but certain protective
elements may be lacking or may be characteristically unreliable over any great length of time. Such bonds lack outstanding
investment characteristics and in fact have speculative characteristics as well.
Ba - Bonds rated Ba are judged to have speculative elements; their future cannot be considered as well assured. Often the
protection of interest and principal payments may be very moderate and thereby not as well safeguarded during both good times
and bad times over the future. Uncertainty of position characterizes bonds in this class.
B - Bonds rated B generally lack characteristics of a desirable investment. Assurance of interest and principal payments or
of maintenance of other terms of the contract over any long period of time may be small.
Caa - Bonds rated Caa are of poor standing. Issues may be in default or there may be present elements of danger with respect
to principal or interest.
Ca - Bonds rated Ca are speculative in a high degree. Such bonds are often in default or have other marked shortcomings.
C - Bonds rated C are the lowest rated class of bonds. Such bonds can be regarded as having extremely poor prospects of ever
attaining any real investment standing.
Moody's applies numerical modifiers (1, 2 and 3) to rating categories. The modifier 1 indicates that the bond being rated
ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates
that the bond ranks in the lower end of its generic rating category. With regard to municipal bonds, those bonds in the Aa,
A and Baa groups which Moody's believes possess the strongest investment attributes are designated by the symbols Aal, A1
or Baal, respectively.
Fitch
National Long-Term Credit Ratings. A special identifier for the country concerned will be added at the end of all national
ratings. For illustrative purposes, (xxx) has been used, below.
AAA(xxx) - 'AAA' national ratings denote the highest rating assigned in its national rating scale for that country. This rating
is assigned to the "best" credit risk relative to all other issuers or issues in the same country and will normally be assigned
to all financial commitments issued or guaranteed by the sovereign state.
AA(xxx) - 'AA' national ratings denote a very strong credit risk relative to other issuers or issues in the same country.
The credit risk inherent in these financial commitments differs only slightly from the country's highest rated issuers or
issues.
A(xxx) - 'A' national ratings denote a strong credit risk relative to other issuers or issues in the same country. However,
changes in circumstances or economic conditions may affect the capacity for timely repayment of these financial commitments
to a greater degree than for financial commitments denoted by a higher rated category.
BBB(xxx) - 'BBB' national ratings denote an adequate credit risk relative to other issuers or issues in the same country.
However, changes in circumstances or economic conditions are more likely to affect the capacity for timely repayment.
BB(xxx) - 'BB' national ratings denote a fairly weak credit risk relative to other issuers or issues in the same country.
Within the context of the country, payment of these financial commitments is uncertain to dome degree and capacity for timely
repayment remains more vulnerable to adverse economic change over time.
B(xxx) - 'B' national ratings denote a significantly weak credit risk relative to other issuers or issues in the same country.
Financial commitments are currently being met but a limited margin of safety remains and capacity for continued timely payment
is contingent upon a sustained, favorable business and economic environment.
CCC(xxx), CC(xxx), C(xxx) - These categories of national ratings denote an extremely weak credit risk relative to other issuers
or issues in the same country. Capacity for meeting financial commitments is solely reliant upon sustained, favorable business
or economic developments.
DDD(xxx), DD(xxx), D(xxx) - These categories of national ratings are assigned to entities or financial commitments which are
currently in default.
Short-Term Issue Credit Ratings (including Commercial Paper)
S&P:
A-1 - Debt rated A-1 is rated in the highest category by S&P. The obligor's capacity to meet its financial commitment on the
obligation is strong. Within this category, certain obligations are designated with a plus sign (+). This indicates that the
obligor's capacity to meet its financial commitment on these obligations is extremely strong.
A-2 - Debt rated A-2 is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions
than obligations in higher rating categories. However, the obligor's capacity to meet its financial commitment on the obligation
is satisfactory.
A-3 - Debt rated A-3 exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances
are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation.
B - Debt rated B is regarded as having significant speculative characteristics. The obligor currently has the capacity to
meet its financial commitment on the obligation; however, it faces major ongoing uncertainties which could lead to the obligor's
inadequate capacity to meet its financial commitment on the obligation.
C - Debt rated C is currently vulnerable to nonpayment and is dependent upon favorable business, financial, and economic conditions
for the obligor to meet its financial commitment on the obligation.
D - Debt rated D is in payment default. The D rating category is used when payments on an obligation are not made on the date
due even if the applicable grace period has not expired, unless S&P believes that such payments will be made during such grace
period. The D rating also will be used upon the filing of a bankruptcy petition or the taking of a similar action if payments
on an obligation are jeopardized.
Moody's:
Prime-1: Issuers rated Prime-1 have a superior ability for repayment of senior short-term debt obligations.
Prime-2: Issuers rated Prime-2 have a strong ability to repay senior short-term debt obligations, but earnings trends, while
sound, will be subject to more variation.
Prime-3: Issuers rated Prime-3 have acceptable credit quality and an adequate capacity for timely payment of shortterm deposit
obligations.
Not Prime: Issuers rated Not Prime have questionable to poor credit quality and an uncertain capacity for timely payment of
short-term deposit obligations.
Fitch
National Short -Term Credit Ratings. A special identifier for the country concerned will be added at the end of all national
ratings. For illustrative purposes, (xxx) has been used, below.
F1(xxx) - Indicates the strongest capacity for timely payment of financial commitments relative to other issuers or issues
in the same country. Under their national rating scale, this rating is assigned to the"best" credit risk relative to all others
in the same country and is normally assigned to all financial commitments issued or guaranteed by the sovereign state. Where
the credit risk is particularly strong , a "+" is added to the assigned rating.
F2(xxx) - Indicates a satisfactory capacity for timely payment of financial commitments relative to other issuers or issues
in the same country. However, the margin of safety is not as great as in the case of the higher ratings.
F3(xxx) - Indicates an adequate capacity for timely payment of financial commitments relative to other issuers or issues in
the same country. However, such capacity is more susceptible to near-term adverse changes than for financial commitments in
higher rated categories.
B(xxx) - Indicates an uncertain capacity for timely payment of financial commitments relative to other issuers or issues in
the same country. Such capacity is highly susceptible to near-term adverse changes in financial and economic conditions.
C(xxx) - Indicates a highly uncertain capacity for timely payment of financial commitments relative to other issuers or issues
in the same country. Capacity or meeting financial commitments is solely reliant upon a sustained, favorable business and
economic environment.
D(xxx) - Indicates actual or imminent payment default.
Note to National Short-Term ratings: In certain countries, regulators have established credit rating scales, to be used within
their domestic markets, using specific nomenclature. In these countries, our National Short-Term Ratings definitions for F1+(xxx),
F1(xxx), F2(xxx) and F3(xxx) may be substituted by those regulatory scales, e.g. A1+, A1, A2 and A3.
Variable Rate Demand Obligations
S&P:
SP-1 - Strong capacity to pay principal and interest. An issue determined to possess a very strong capacity to pay debt service
is given a plus (+) designation.
SP-2 - Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and economic changes
over the term of the notes.
SP-3 - Speculative capacity to pay principal and interest.
Moody's:
VMIG 1: This designation denotes superior credit quality. Excellent protection is afforded by the superior short-term credit
strength of the liquidity provider and structural and legal protections that ensure the timely payment of purchase price upon
demand.
VMIG 2: This designation denotes strong credit quality. Good protection is afforded by the strong short-term credit strength
of the liquidity provider and structural and legal protections that ensure the timely payment of purchase price upon demand.
VMIG 3: This designation denotes acceptable credit quality. Adequate protection is afforded by the satisfactory short-term
credit strength of the liquidity provider and structural and legal protections that ensure the timely payment of purchase
price upon demand.
SG: This designation denotes speculative-grade credit quality. Demand features rated in this category may be supported by
a liquidity provider that does not have an investment grade short-term rating or may lack the structural and/or legal protections
necessary to ensure the timely payment of purchase price upon demand.
APPENDIX B
The following is a description of the underlying Indexes as listed in the "Index Methodology" section of the Funds' Prospectuses:
|
Equity Component Indexes
|
|
Dow Jones U.S. Large-Cap Growth Index
SM
|
The Dow Jones U.S. Large-Cap Growth Index
SM
is part of a series of six unmanaged indexes representing large, mid and small-cap companies within the growth and value
segments of the U.S. stock market. The large, mid and small indexes include only companies with these respective sizes. Dow
Jones defines large cap as those companies that make up 70% of what it considers to be the total float-adjusted market capitalization;
mid-cap is the next 20%; and small-cap is the next 5%. The growth and value indexes include only companies with these respective
style classifications, which Dow Jones determines using six criteria: projected price-to-earnings ratio (P/E), projected earnings
growth, price-to book ratio (P/B), dividend yield, trailing P/E and trailing earnings growth. The index is weighted by float
adjusted market capitalization.
|
|
|
Dow Jones U.S. Large-Cap Value Index
SM
|
The Dow Jones U.S. Large-Cap Value Index
SM
is part of a series of six unmanaged indexes representing large, mid and small-cap companies within the growth and value
segments of the U.S. stock market. The large, mid and small indexes include only companies with these respective sizes. Dow
Jones defines large cap as those companies that make up 70% of what it considers to be the total float-adjusted market capitalization;
mid-cap is the next 20%; and small-cap is the next 5%. The growth and value indexes include only companies with these respective
style classifications, which Dow Jones determines using six criteria: projected price-to-earnings ratio (P/E), projected earnings
growth, price-to-book ratio (P/B), dividend yield, trailing P/E and trailing earnings growth. The index is weighted by float-adjusted
market capitalization.
|
|
|
Dow Jones U.S. Mid-Cap Growth Index
SM
|
The Dow Jones U.S. Mid-Cap Growth Index
SM
is part of a series of six unmanaged indexes representing large, mid and small-cap companies within the growth and value
segments of the U.S. stock market. The large, mid and small indexes include only companies with these respective sizes. Dow
Jones defines large cap as those companies that make up 70% of what it considers to be the total float-adjusted market capitalization;
mid-cap is the next 20%; and small-cap is the next 5%. The growth and value indexes include only companies with these respective
style classifications, which Dow Jones determines using six criteria: projected price-to-earnings ratio (P/E), projected earnings
growth, price-to-book ratio (P/B), dividend yield, trailing P/E and trailing earnings growth. The index is weighted by float-adjusted
market capitalization.
|
|
|
Dow Jones U.S. Mid-Cap Value Index
SM
|
The Dow Jones U.S. Mid-Cap Value Index
SM
is part of a series of six unmanaged indexes representing large, mid and small-cap companies within the growth and value
segments of the U.S. stock market. The large, mid and small indexes include only companies with these respective sizes. Dow
Jones defines large cap as those companies that make up 70% of what it considers to be the total float-adjusted market capitalization;
mid-cap is the next 20%; and small-cap is the next 5%. The growth and value indexes include only companies with these respective
style classifications, which Dow Jones determines using six criteria: projected price-to-earnings ratio (P/E), projected earnings
growth, price-to-book ratio (P/B), dividend yield, trailing P/E and trailing earnings growth. The index is weighted by float-adjusted
market capitalization.
|
|
|
Dow Jones U.S. Small-Cap Growth Index
SM
|
The Dow Jones U.S. Small-Cap Growth Index
SM
is part of a series of six unmanaged indexes representing large, mid and small-cap companies within the growth and value
segments of the U.S. stock market. The large, mid and small indexes include only companies with these respective sizes. Dow
Jones defines large cap as those companies that make up 70% of what it considers to be the total float-adjusted market capitalization;
mid-cap is the next 20%; and small-cap is the next 5%. The growth and value indexes include only companies with these respective
style classifications, which Dow Jones determines using six criteria: projected price-to-earnings ratio (P/E), projected earnings
growth, price-to-book ratio (P/B), dividend yield, trailing P/E and trailing earnings growth. The index is weighted by float-adjusted
market capitalization.
|
|
|
Dow Jones U.S. Small-Cap Value Index
SM
|
The Dow Jones U.S. Small-Cap Value Index
SM
is part of a series of six unmanaged indexes representing large, mid and small-cap companies within the growth and value
segments of the U.S. stock market. The large, mid and small indexes include only companies with these respective sizes. Dow
Jones defines large cap as those companies that make up 70% of what it considers to be the total float-adjusted market capitalization;
mid-cap is the next 20%; and small-cap is the next 5%. The growth and value indexes include only companies with these respective
style classifications, which Dow Jones determines using six criteria: projected price-to-earnings ratio (P/E), projected earnings
growth, price-to-book ratio (P/B), dividend yield, trailing P/E and trailing earnings growth. The index is weighted by float-adjusted
market capitalization.
|
|
|
Dow Jones Asia/Pacific Developed Index
SM
|
The Dow Jones Asia/Pacific Developed Index
SM
is an unmanaged index containing all stocks that are both components of the Dow Jones Global Index, which represents approximately
95% of the market capitalization of 65 countries, and headquartered in the developed markets of the Asia/Pacific region (Australia/New
Zealand, Hong Kong, Japan and Singapore as of March 2011). The index is weighted by float-adjusted market capitalization.
The index composition is reviewed quarterly; buffers are employed during the review process to reduce turnover.
|
|
|
Dow Jones Europe/Canada/Middle East Developed Index
SM
|
The Dow Jones Europe/Canada/Middle East Developed Index
SM
is an unmanaged index containing all stocks that are components of the Dow Jones Canada Index, which represents approximately
95% of the market capitalization of Canada, and all stocks that are components of the Dow Jones Europe Index, which represents
approximately 95% of the market capitalization of the European region (defined to include 17 countries as of March 2011).
Currently the Developed Middle East region is represented by Israel only. The index is weighted by float-adjusted market capitalization.
The index composition is reviewed quarterly; buffers are employed during the review process to reduce turnover.
|
|
|
Dow Jones Emerging Markets Large-Cap Total Stock Market (TSM) Specialty Index
SM
|
The Dow Jones Emerging Markets Large-Cap Total Stock Market (TSM) Specialty Index
SM
is an unmanaged index that is a sub-set of the Dow Jones Global Total Stock Market Index
SM
. This index is the bottom-up aggregate of 40 Emerging Markets country indexes. Within each country index the market cap of
the company that brought the cumulative market cap to 85% of the total market cap of the index becomes the bottom cutoff target
for the Large-Cap Index. The country indexes are maintained at and can be aggregated into a variety of market segment indexes
including regional, size (large-cap, mid-cap and small-cap) and sector/industry groups. Countries are categorized as either
developed or emerging for the purpose of stock selection based on the stocks' International Monetary Fund (IMF) classifications.
However, the "Specialty Index" categorizes 3 of the 32 country indexes as Emerging Markets that are classified as Developed
Markets in the Non-Specialty Dow Jones Emerging Markets Large-Cap Total Stock Market (TSM) Index. The countries are Korea,
Taiwan, and Cyprus.
|
|
|
Fixed Income Component Indexes
|
|
Barclays U.S. Government Bond Index
|
The Barclays Government Bond Index includes treasuries (i.e., public obligations of the U.S. Treasury that have remaining
maturities of more than one year) and agencies (i.e., publicly issued debt of U.S. Government agencies, quasi-federal corporations,
and corporate or foreign debt guaranteed by the U.S. Government).
|
|
|
Barclays U.S. Corporate Investment Grade Bond Index
|
The Barclays U.S. Corporate Investment Grade Bond Index includes publicly issued U.S. corporate debentures and secured notes
that meet specified maturity, liquidity and quality requirements. To qualify, bonds must be SEC-registered. The index is the
corporate sector of the U.S. Credit Index. Index sectors are Industrial, Utility and Finance, including both U.S. and non-U.S.
corporations.
|
|
|
Barclays U.S. Mortgage Backed Securities Index
|
The Barclays U.S. Mortgage Backed Securities Index covers the fixed-rate agency mortgage backed pass-through securities of
Ginnie Mae (GNMA), Fannie Mae (FNMA), and Freddie Mac (FHLMC). The index is formed by grouping the universe of over 1,000,000
individual fixed-rate MBS pools into approximately 5,500 generic aggregates (although only a subset meet the index criteria
due to liquidity constraints). Introduced in 1986, the GNMA, FHLMC, and FNMA indices for 30- and 15-year securities have been
backdated to January 1976, May 1977, and November 1982, respectively. The index is a subset of the U.S. Aggregate Index.
|
|
|
Barclays Global Treasury: Majors Ex US Index
|
The Barclays Global Treasury: Majors Ex US Index consists of securities in the following Global Treasury indices: Australia,
Belgium, Canada, Denmark, France, Germany, Italy, Japan, the Netherlands, Spain, Sweden and the United Kingdom. To be included
in the index have at least one year to maturity; and must meet specified liquidity requirements that vary by country and which
are recalculated annually.
|
|
|
Money Market Component Index
|
|
Barclays U.S. Treasury Bills: 1-3 Months Index
|
The Barclays U.S. Treasury Bills: 1-3 Months Index includes U.S. Treasury bills with a remaining maturity of one month up
to less than three months. The index excludes zero coupon strips. To be included in the index, an issue must be a publicly-issued
U.S. Treasury bill and must have a remaining maturity of one month up to less than three months.
|
|
WELLS FARGO FUNDS TRUST
FILE NOS. 333-74295; 811-09253
PART C
OTHER INFORMATION
Item 28. Exhibits
Unless otherwise indicated, each of the Exhibits listed below is filed herewith.
|
Number
|
Exhibit Description
|
Location
|
|
(a)
|
Amended and Restated Declaration of Trust
|
Incorporated by reference to Post-Effective Amendment No. 274, filed December 26, 2012.
|
|
(b)
|
Not applicable
|
|
|
(c)
|
Not applicable
|
|
|
(d)(1)
|
Amended and Restated Investment Advisory Agreement with Wells Fargo Funds Management, LLC
|
Incorporated by reference to Post-Effective Amendment No. 266, filed November 16, 2012; Schedule A, incorporated by reference
to Post-Effective Amendment No. 295, filed April 23, 2013.
|
|
(d)(2)
|
Investment Management Agreement with Wells Fargo Funds Management, LLC (Absolute Return Fund)
|
Incorporated by reference to Post-Effective Amendment No. 235, filed February 29, 2012.
|
|
(d)(3)
|
Amended and Restated Fee and Expense Agreement between Wells Fargo Funds Trust, Wells Fargo Master Trust and Wells Fargo
Funds Management, LLC
|
Incorporated by reference to Post-Effective Amendment No. 136, filed April 30, 2009; Schedule A, incorporated by reference
to Post-Effective Amendment No. 295, filed April 23, 2013.
|
|
(d)(4)
|
Investment Sub-Advisory Agreement with Schroder Investment Management North America Inc.
|
Incorporated by reference to Post-Effective Amendment No. 20, filed May 1, 2001; Schedule A, incorporated by reference to
Post-Effective Amendment No. 83, filed April 11, 2005.
|
|
(d)(5)
|
Amended and Restated Investment Sub-Advisory Agreement with Wells Capital Management Incorporated
|
Incorporated by reference to Post-Effective Amendment No. 266, filed November 16, 2012; Appendix A and Schedule A, incorporated
by reference to Post-Effective Amendment No. 295, filed April 23, 2013.
|
|
(d)(6)
|
Investment Sub-Advisory Agreement with RCM Capital Management, LLC (formerly Dresdner RCM Global Investors, LLC)
|
Incorporated by reference to Post-Effective Amendment No. 32, filed February 8, 2002; Appendix A and Schedule A, incorporated
by reference to Post-Effective Amendment No. 295, filed April 23, 2013.
|
|
(d)(7)
|
Investment Sub-Advisory Agreement with Global Index Advisors, Inc.
|
Incorporated by reference to Post-Effective Amendment No. 93, filed June 26, 2006. Appendix A and Appendix B, incorporated
by reference to Post-Effective Amendment No. 194, filed April 1, 2011.
|
|
(d)(8)
|
Investment Sub-Advisory Agreement with LSV Asset Management
|
Incorporated by reference to Post-Effective Amendment No. 147, filed January 28, 2010; Appendix A and Appendix B, incorporated
by reference to Post-Effective Amendment No. 156, filed April 30, 2010.
|
|
(d)(9)
|
Investment Sub-Advisory Agreement with Cooke & Bieler, L.P.
|
Incorporated by reference to Post-Effective Amendment No. 74, filed July 26, 2004; Appendix A and Schedule A, incorporated
by reference to Post-Effective Amendment No. 295, filed April 23, 2013.
|
|
(d)(10)
|
Sub-Advisory Agreement with Phocas Financial Corporation
|
Incorporated by reference to Post-Effective Amendment No. 122, filed March 21, 2008.
|
|
(d)(11)
|
Amended and Restated Sub-Advisory Agreement with First International Advisors, LLC
|
Incorporated by reference to Post-Effective Amendment No. 266, filed November 16, 2012.
|
|
(d)(12)
|
Amended and Restated Sub-Advisory Agreement with Metropolitan West Capital Management, LLC
|
Incorporated by reference to Post-Effective Amendment No. 266, filed November 16, 2012.
|
|
(d)(13)
|
Amended and Restated Sub-Advisory Agreement with Golden Capital Management, LLC
|
Incorporated by reference to Post-Effective Amendment No. 266, filed November 16, 2012.
|
|
(d)(14)
|
Sub-Advisory Agreement with Crow Point Partners, LLC
|
Incorporated by reference to Post-Effective Amendment No. 169, filed July 16, 2010.
|
|
(d)(15)
|
Sub-Advisory Agreement with Artisan Partners, LP
|
Incorporated by reference to Post-Effective Amendment No. 184, filed February 24, 2011.
|
|
(d)(16)
|
Amended and Restated Sub-Advisory Agreement with Wells Fargo Bank, N.A. d/b/a Wells Capital Management Singapore
|
Incorporated by reference to Post-Effective Amendment No. 266, filed November 16, 2012.
|
|
(e)
|
Distribution Agreement with Wells Fargo Funds Distributor, LLC
|
Incorporated by reference to Post-Effective Amendment No. 84, filed July 1, 2005; Schedule I, incorporated by reference to
Post-Effective Amendment No. 295, filed April 23, 2013.
|
|
(f)
|
Not applicable
|
|
|
(g)(1)
|
Securities Lending Agency Agreement by and among Wells Fargo Funds Trust, Wells Fargo Master Trust, Wells Fargo Variable
Trust, Wells Fargo Funds Management, LLC and Goldman Sachs Bank USA
|
Incorporated by reference to Post-Effective Amendment No. 163, filed June 28, 2010; Fifth Amendment incorporated by reference
to Post-Effective Amendment No. 174, filed October 27, 2010; Schedule 2, First Amendment, Second Amendment, Third Amendment,
Fourth Amendment and Sixth Amendment incorporated by reference to Post-Effective Amendment No. 177, filed January 28, 2011;
Seventh Amendment, incorporated by reference to Post-Effective Amendment No. 200, filed June 24, 2011; Eighth Amendment incorporated
by reference to Post-Effective Amendment No. 237 filed March 16, 2012; Ninth Amendment incorporated by reference to Post-Effective
Amendment No. 274, filed December 26, 2012; Appendix A and Tenth Amendment, incorporated by reference to Post-Effective Amendment
No. 295, filed April 23, 2013.
|
|
(g)(2)
|
Master Custodian Agreement with State Street Bank and Trust Company
|
Incorporated by reference to Post-Effective Amendment No. 139, filed September 28, 2009; Appendix A, incorporated by reference
to Post-Effective Amendment No. 295, filed April 23, 2013.
|
|
(h)(1)
|
Administration Agreement with Wells Fargo Funds Management, LLC
|
Incorporated by reference to Post-Effective Amendment No. 65, filed August 15, 2003; Schedule A, incorporated by reference
to Post-Effective Amendment No. 274, filed December 26, 2012; Appendix A, incorporated by reference to Post-Effective Amendment
No. 295, filed April 23, 2013.
|
|
(h)(2)
|
Transfer Agency and Service Agreement with Boston Financial Data Services, Inc.
|
Incorporated by reference to Post-Effective Amendment No. 92, filed May 1, 2006; Schedule A, incorporated by reference to
Post-Effective Amendment No. 295, filed April 23, 2013.
|
|
(h)(3)
|
Shareholder Servicing Plan
|
Incorporated by reference to Post-Effective Amendment No. 16, filed October 30, 2000; Appendix A, incorporated by reference
to Post-Effective Amendment No. 274, filed December 26, 2012.
|
|
(h)(4)
|
Administrative and Shareholder Servicing Agreement, Form of Agreement
|
Incorporated by reference to Post-Effective Amendment No. 111, filed June 29, 2007.
|
|
(i)
|
Legal Opinion
|
Filed herewith.
|
|
(j)(A)
|
Consent of Independent Auditors
|
Filed herewith.
|
|
(j)(1)
|
Power of Attorney, Peter G. Gordon
|
Incorporated by reference to Post-Effective Amendment No. 172, filed September 28, 2010.
|
|
(j)(2)
|
Power of Attorney, Timothy J. Penny
|
Incorporated by reference to Post-Effective Amendment No. 172, filed September 28, 2010.
|
|
(j)(3)
|
Power of Attorney, Donald C. Willeke
|
Incorporated by reference to Post-Effective Amendment No. 172, filed September 28, 2010.
|
|
(j)(4)
|
Power of Attorney, Karla M. Rabusch
|
Incorporated by reference to Post-Effective Amendment No. 72, filed June 30, 2004.
|
|
(j)(5)
|
Power of Attorney, Olivia S. Mitchell
|
Incorporated by reference to Post-Effective Amendment No. 172, filed September 28, 2010.
|
|
(j)(6)
|
Power of Attorney, Judith M. Johnson
|
Incorporated by reference to Post-Effective Amendment No. 172, filed September 28, 2010.
|
|
(j)(7)
|
Power of Attorney, Isaiah Harris, Jr.
|
Incorporated by reference to Post-Effective Amendment No. 172, filed September 28, 2010.
|
|
(j)(8)
|
Power of Attorney, David F. Larcker
|
Incorporated by reference to Post-Effective Amendment No. 172, filed September 28, 2010.
|
|
(j)(9)
|
Power of Attorney, Michael S. Scofield
|
Incorporated by reference to Post-Effective Amendment No. 172, filed September 28, 2010.
|
|
(j)(10)
|
Power of Attorney, Leroy J. Keith, Jr.
|
Incorporated by reference to Post-Effective Amendment No. 172, filed September 28, 2010.
|
|
(j)(11)
|
Power of Attorney, Nancy Wiser
|
Incorporated by reference to Post-Effective Amendment No. 254, filed September 4, 2012.
|
|
(j)(12)
|
Power of Attorney, Jeremy DePalma
|
Incorporated by reference to Post-Effective Amendment No. 266, filed November 16, 2012.
|
|
(k)
|
Not applicable
|
|
|
(l)
|
Not applicable
|
|
|
(m)
|
Distribution Plan
|
Incorporated by reference to Post-Effective Amendment No. 87, filed November 1, 2005; Schedule I, incorporated by reference
to Post-Effective Amendment No. 232, filed February 24, 2012; Appendix A, incorporated by reference to Post-Effective Amendment
No. 270, filed December 26, 2012.
|
|
(n)
|
Rule 18f-3 Multi-Class Plan
|
Incorporated by reference to Post-Effective Amendment No. 255, filed September 12, 2012; Appendix A, incorporated by reference
to Post-Effective Amendment No. 295, filed April 23, 2013.
|
|
(o)
|
Not applicable
|
|
|
(p)(1)
|
Joint Code of Ethics for Asset Allocation Trust, Wells Fargo Advantage Global Dividend Opportunity Fund, Wells Fargo Advantage
Income Opportunities Fund, Wells Fargo Advantage Multi-Sector Income Fund, Wells Fargo Advantage Utilities & High Income Fund,
Wells Fargo Funds Trust, Wells Fargo Master Trust, and Wells Fargo Variable Trust
|
Incorporated by reference to Post-Effective Amendment No. 200, filed June 24, 2011.
|
|
(p)(2)
|
Joint Code of Ethics for Wells Fargo Funds Management, LLC and Wells Fargo Funds Distributor, LLC
|
Incorporated by reference to Post-Effective Amendment No. 232, filed February 24, 2012.
|
|
(p)(3)
|
RCM Capital Management, LLC (formerly Dresdner RCM Global Investors, LLC) Code of Ethics
|
Incorporated by reference to Post-Effective Amendment No. 243, filed May 25, 2012.
|
|
(p)(4)
|
Schroder Investment Management North America Inc. Code of Ethics
|
Incorporated by reference to Post-Effective Amendment No. 255, filed September 12, 2012.
|
|
(p)(5)
|
Joint Code of Ethics of Wells Capital Management Incorporated and Wells Fargo Bank N.A. d/b/a Wells Capital Management Singapore
|
Incorporated by reference to Post-Effective Amendment No. 255, filed September 12, 2012.
|
|
(p)(6)
|
LSV Asset Management Code of Ethics and Personal Trading Policy
|
Incorporated by reference to Post-Effective Amendment No. 200, filed June 24, 2011.
|
|
(p)(7)
|
Cooke & Bieler, L.P. Code of Ethics
|
Incorporated by reference to Post-Effective Amendment No. 200, filed June 24, 2011.
|
|
(p)(8)
|
Artisan Partners Limited Partnership Code of Ethics
|
Incorporated by reference to Post-Effective Amendment No. 221, filed November 23, 2011.
|
|
(p)(9)
|
Global Index Advisors, Inc. Code of Ethics
|
Incorporated by reference to Post-Effective Amendment No. 200, filed June 24, 2011.
|
|
(p)(10)
|
Phocas Financial Corporation, Code of Ethics
|
Incorporated by reference to Post-Effective Amendment No. 200, filed June 24, 2011.
|
|
(p)(11)
|
First International Advisors, LLC Code of Ethics
|
Incorporated by reference to Post-Effective Amendment No. 200, filed June 24, 2011.
|
|
(p)(12)
|
Metropolitan West Capital Management, LLC Code of Ethics
|
Incorporated by reference to Post-Effective Amendment No. 200, filed June 24, 2011.
|
|
(p)(13)
|
Golden Capital Management, LLC Code of Ethics
|
Incorporated by reference to Post-Effective Amendment No. 274, filed December 26, 2012.
|
|
(p)(14)
|
Crow Point Partners, LLC Code of Ethics
|
Incorporated by reference to Post-Effective Amendment No. 200, filed June 24, 2011.
|
Item 29. Persons Controlled by or Under Common Control with Registrant.
Registrant believes that no person is controlled by or under common control with Registrant.
Item 30. Indemnification.
Article IX of the Registrant's Declaration of Trust limits the liability and, in certain instances, provides for mandatory
indemnification of the Registrant's Trustees, officers, employees, agents and holders of beneficial interests in the Trust.
In addition, the Trustees are empowered under Article III, Section 1(t) of the Registrant's Declaration of Trust to obtain
such insurance policies as they deem necessary.
Item 31. Business and Other Connections of the Investment Adviser.
(a) Effective March 1, 2001, Wells Fargo Funds Management, LLC ("Funds Management") assumed investment advisory responsibilities
for each of the Funds. For providing these services, Funds Management is entitled to receive fees at the same annual rates
as were applicable under the advisory contract with Wells Fargo Bank, N.A. ("Wells Fargo Bank"). Funds Management, an indirect,
wholly owned subsidiary of Wells Fargo & Company, was created to succeed to the mutual fund advisory responsibilities of Wells
Fargo Bank in early 2001.
To the knowledge of Registrant, none of the directors or officers of Funds Management is or has been at any time during the
past two fiscal years engaged in any other business, profession, vocation or employment of a substantial nature, except that
they also hold various positions with and engage in business for Wells Fargo Bank.
(b) Global Index Advisors, Inc. ("GIA"), serves as a sub-adviser to various Funds of Wells Fargo Funds Trust (the "Trust").
The descriptions of GIA in Parts A and B of the Registration Statement are incorporated by reference herein. To the knowledge
of the Registrant, none of the directors or officers of GIA is or has been at any time during the past two fiscal years engaged
in any other business, profession, vocation or employment of a substantial nature.
(c) Wells Capital Management Incorporated ("Wells Capital Management"), a wholly owned subsidiary of Wells Fargo Bank, serves
as sub-adviser to various Funds of the Trust. The descriptions of Wells Capital Management in Parts A and B of the Registration
Statement are incorporated by reference herein. To the knowledge of the Registrant, none of the directors or officers of Wells
Capital Management is or has been at any time during the past two fiscal years engaged in any other business, profession,
vocation or employment of a substantial nature.
(d) Schroder Investment Management North America Inc. ("Schroder"), serves as sub-adviser to various funds of the Trust. The
descriptions of Schroder in Parts A and B of the Registration Statement are incorporated by reference herein. Schroder Capital
Management International Limited ("Schroder Ltd.") is a United Kingdom affiliate of Schroder which provides investment management
services to international clients located principally in the United States. Schroder Ltd. and Schroder p.l.c. are located
at 31 Gresham St., London ECZV 7QA, United Kingdom. To the knowledge of the Registrant, none of the directors or officers
of Schroder is or has been at any time during the last two fiscal years engaged in any other business, profession, vocation
or employment of a substantial nature.
(e) RCM Capital Management, LLC ("RCM"), serves as sub-adviser for various funds of the Trust. The descriptions of RCM in
Parts A and B of the Registration Statement are incorporated by reference herein. To the knowledge of the Registrant, none
of the directors or officers of RCM is or has been at any time during the last two fiscal years engaged in any other business,
profession, vocation or employment of a substantial nature.
(f) LSV Asset Management ("LSV") serves as sub-adviser to various funds of the Trust. The descriptions of LSV in Parts A and
B of the Registration Statement are incorporated by reference herein. To the knowledge of the Registrant, none of the directors
or officers of LSV is or has been at any time during the past two fiscal years engaged in any other business, profession,
vocation, or employment of a substantial nature.
(g) Cooke & Bieler, L.P. ("Cooke & Bieler") serves as sub-adviser for various funds of the Trust. The descriptions of Cooke
& Bieler in Parts A and B of the Registration Statement are incorporated by reference herein. To the knowledge of the Registrant,
none of the directors or officers of Cooke & Bieler is or has been at any time during the past two fiscal years engaged in
any other business, profession, vocation, or employment of a substantial nature.
(h) Artisan Partners Limited Partnership ("Artisan") serves as sub-adviser for various funds of the Trust. The descriptions
of Artisan in Parts A and B of the Registration Statement are incorporated by reference herein. To the knowledge of the Registrant,
none of the directors or officers of Artisan is or has been at any time during the past two fiscal years engaged in any other
business, profession, vocation, or employment of a substantial nature.
(i) Phocas Financial Corporation ("Phocas") serves as sub-adviser for various funds of the Trust. The descriptions of Phocas
in Parts A and B of the Registration Statement are incorporated by reference herein. To the knowledge of the Registrant, none
of the directors or officers of Phocas is or has been at any time during the past two fiscal years engaged in any other business,
profession, vocation, or employment of a substantial nature.
(j) First International Advisors, LLC an indirect wholly-owned subsidiary of Wells Fargo & Company, serves as sub-adviser
for various funds of the Trust. The descriptions of First International Advisors in Parts A and B of the Registration Statement
are incorporated by reference herein. To the knowledge of the Registrant, none of the directors or officers of the sub-adviser
is or has been at any time during the last two fiscal years engaged in any other business, profession, vocation or employment
of a substantial nature.
(k) Metropolitan West Capital Management, LLC ("MWCM") an indirect subsidiary of Wells Fargo & Company, serves as sub-adviser
various funds of the Trust. The descriptions of MWCM in Parts A and B of the Registration Statement are incorporated by reference
herein. To the knowledge of the Registrant, none of the directors or officers of MWCM is or has been at any time during the
last two fiscal years engaged in any other business, profession, vocation or employment of a substantial nature.
(l) Golden Capital Management, LLC ("Golden") an indirect wholly-owned subsidiary of Wells Fargo & Company, serves as sub-adviser
for various funds of the Trust. The descriptions of Golden in Parts A and B of the Registration Statement are incorporated
by reference herein. To the knowledge of the Registrant, none of the directors or officers of Golden is or has been at any
time during the last two fiscal years engaged in any other business, profession, vocation or employment of a substantial nature.
(m) Crow Point Partners, LLC ("Crow Point") serves as sub-adviser for various funds of the Trust. The descriptions of Crow
Point in Parts A and B of the Registration Statement are incorporated by reference herein. To the knowledge of the Registrant,
none of the directors or officers of Crow Point is or has been at any time during the last two fiscal years engaged in any
other business, profession, vocation or employment of a substantial nature.
(n) Wells Capital Management Singapore, a separately identifiable division of Wells Fargo Bank, N.A., serves as sub-adviser
for various funds of the Trust. The descriptions of Wells Capital Management Singapore in Parts A and B of the Registration
Statement are incorporated by reference herein. To the knowledge of the Registrant, none of the directors or officers of Wells
Capital Management Singapore is or has been at any time during the last two fiscal years engaged in any other business, profession,
vocation or employment of a substantial nature.
Item 32. Principal Underwriter.
(a) Wells Fargo Funds Distributor, LLC, distributor for the Registrant, also acts as principal underwriter for Wells Fargo
Variable Trust, and is the exclusive placement agent for Wells Fargo Master Trust, both of which are registered open-end management
investment companies.
(b) The following table provides information for each director and officer of Wells Fargo Funds Distributor, LLC.
|
Name
|
Positions and Offices with Underwriter
|
Positions and Offices with Fund
|
|
Karla M. Rabusch
Wells Fargo Funds Management, LLC
525 Market Street, 12th Floor
San Francisco, CA 94105
|
Chairman of the Board
|
President
|
|
Wayne Badorf
Wells Fargo Funds Distributor, LLC
525 Market Street, 12th Floor
San Francisco, CA 94105
|
Director, President and Secretary
|
None
|
|
A. Erdem Cimen
Wells Fargo Funds Management, LLC
525 Market Street, 12th Floor
San Francisco, CA 94105
|
Director, Financial Operations Officer (FINOP)
|
None
|
|
Samuel H. Hom
Wells Fargo Funds Distributor, LLC
525 Market Street, 12th Floor
San Francisco, CA 94105
|
Anti-Money Laundering Compliance Officer
|
Anti-Money Laundering Compliance Officer
|
|
Andrew Owen
Wells Fargo Funds Management, LLC
525 Market Street, 12th Floor
San Francisco, CA 94105
|
Director
|
Assistant Secretary
|
|
Debra Ann Early
Wells Fargo Funds Distributor, LLC
525 Market Street, 12th Floor
San Francisco, CA 94105
|
Chief Compliance Officer
|
Chief Compliance Officer
|
(c) Not applicable.
Item 33. Location of Accounts and Records.
(a) The Registrant maintains accounts, books and other documents required by Section 31(a) of the Investment Company Act of
1940 and the rules thereunder (collectively, "Records") at the offices of Wells Fargo Funds Management, LLC, 525 Market Street,
12th Floor, San Francisco, CA 94105.
(b) Wells Fargo Funds Management, LLC maintains all Records relating to its services as investment adviser and administrator
at 525 Market Street, 12th Floor, San Francisco, CA 94105.
(c) Boston Financial Data Services, Inc. maintains all Records relating to its services as transfer agent at Two Heritage
Drive, Quincy, Massachusetts 02171.
(d) Global Index Advisors, Inc. maintains all Records relating to their services as sub-adviser at 29 North Park Square NE,
Suite 201, Marietta, GA 30060.
(e) Wells Fargo Funds Distributor, LLC maintains all Records relating to its services as distributor at 525 Market Street,
12th Floor, San Francisco, CA 94105.
(f) Wells Fargo Bank, N.A. (formerly Wells Fargo Bank Minnesota, N.A.) maintains all Records relating to its services as former custodian
at 6th & Marquette, Minneapolis, MN 55479-0040.
(g) Wells Capital Management Incorporated maintains all Records relating to its services as investment sub-adviser at 525
Market Street, 10th Floor, San Francisco, CA 94105.
(h) Schroder Investment Management North America Inc. maintains all Records relating to its services as investment sub-adviser
at 875 Third Avenue, 22nd Floor, New York, New York 10022.
(i) RCM Capital Management, LLC maintains all Records relating to its services as investment sub-adviser at Four Embarcadero
Center, San Francisco, California 94111.
(j) LSV Asset Management maintains all Records relating to its services as investment sub-adviser at One North Wacker Drive,
Suite 4000, Chicago, Illinois 60606.
(k) Cooke & Bieler, L.P. maintains all Records relating to its services as investment sub-adviser at 1700 Market Street, Philadelphia,
PA 19103.
(l) Artisan Partners Limited Partnership maintains all Records relating to its services as investment sub-adviser at 875 East
Wisconsin Avenue, Suite 800, Milwaukee, WI 53202.
(m) Phocas Financial Corporation maintains all Records relating to its services as investment sub-adviser at 980 Atlantic
Avenue, Suite 106, Alameda, California 94501.
(n) First International Advisors, LLC maintains all Records relating to its services as investment sub-adviser at One Plantation
Place, 30 Fenchurch, London, England, EC3M 3BD.
(o) Metropolitan West Capital Management, LLC maintains all Records relating to its services as investment sub-adviser at
610 Newport Center Drive, Suite 1000, Newport Beach, CA 92660.
(p) Golden Capital Management, LLC maintains all Records relating to its services as investment sub-adviser at 5 Resource
Square, Suite 150, 10715 David Taylor Drive, Charlotte, North Carolina 28262.
(q) Crow Point Partners, LLC maintains all Records relating to its services as investment sub-adviser at 10 The New Driftway,
Scituate, Massachusetts 02066.
(r) Wells Fargo Bank, N.A. d/b/a Wells Capital Management Singapore maintains all Records relating to its services as investment
sub-adviser at 26/F, 80 Raffles Place, 20/21, UOB Plaza, Singapore 048624.
(s) State Street Bank and Trust Company maintains all Records relating to its services as custodian and fund accountant at
2 Avenue de Lafayette, Boston, Massachusetts 02111.
Item 34. Management Services.
Other than as set forth under the captions "Organization and Management of the Funds" in the Prospectuses constituting Part
A of this Registration Statement and "Management" in the Statement of Additional Information constituting Part B of this Registration
Statement, the Registrant is not a party to any management-related service contract.
Item 35. Undertakings.
Not applicable.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant certifies
that it meets all of the requirements for effectiveness of this Amendment to the Registration Statement on Form N-1A, pursuant
to Rule 485(b) under the Securities Act of 1933, and has duly caused this Amendment to its Registration Statement to be signed
on its behalf by the undersigned, thereto duly authorized in the City of San Francisco, State of California on the 30th day
of May, 2013.
WELLS FARGO FUNDS TRUST
By: /s/ C. David Messman
--------------------
C. David Messman
Secretary
Pursuant to the requirements of the Securities Act of 1933, this Post-Effective Amendment No. 298 to its Registration Statement
on Form N-1A has been signed below by the following persons in the capacities and on the date indicated:
|
/s/ Peter G. Gordon
Peter G. Gordon*
Trustee
|
/s/ Isaiah Harris, Jr.
Isaiah Harris, Jr.*
Trustee
|
/s/ Judith M. Johnson
Judith M. Johnson*
Trustee
|
|
/s/ David F. Larcker
David F. Larcker*
Trustee
|
/s/ Olivia S. Mitchell
Olivia S. Mitchell*
Trustee
|
/s/ Timothy J. Penny
Timothy J. Penny*
Trustee
|
|
/s/ Donald C. Willeke
Donald C. Willeke*
Trustee
|
/s/ Michael S. Scofield
Michael S. Scofield*
Trustee
|
/s/ Leroy J. Keith, Jr.
Leroy J. Keith, Jr.*
Trustee
|
|
/s/ Karla M. Rabusch
Karla M. Rabusch*
President
(Principal Executive Officer)
|
/s/ Jeremy M. DePalma
Jeremy M. DePalma*
Treasurer
(Principal Financial Officer)
|
|
*By: /s/ C. David Messman
C. David Messman
As Attorney-in-Fact
May 30, 2013
|
Exhibit No.
|
Exhibits
|
|
(i)
|
Legal Opinion
|
|
(j)(A)
|
Consent of Independent Auditors
|
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