If your clients are looking for income without significant interest-rate risk, consider the
Wells Fargo Advantage Short-Term High Yield Bond Fund. The fund is designed to offer:
Competitive returns without significant interest-rate risk
The fund's performance is driven by the investment team's rigorous, bottom-up approach to credit analysis and individual security selection, combined with a disciplined and repeatable investment process that integrates proprietary risk management tools.
Higher credit quality and lower volatility versus high-yield bonds and bank loan funds
The team's conservative investment approach is designed to minimize volatility through rigorous credit research, with a view to selecting individual securities that should be able to be refinanced regardless of economic or market conditions.
Potentially more income than offered in the Treasury and investment-grade markets
Today, with Treasury yields anchored near record lows and likely to stay that way into 2014, the extra yield available in short-term BB-rated and B-rated bonds relative to Treasuries remains generous.
"We're excited about [investors' interest in the fund] because as we bring [them] into the product, they will realize that this is a product that makes sense in all environments." —Thomas M. Price
The compelling reason for short-term high yield
- Introduction to the Short-Term High Yield Bond Fund
Tom Price addresses the team’s track record and the role short-term high yield plays for fund portfolios
- Investment philosophy
The four elements of how short-term high yield should be managed
- Investment process
Gain insights into our investment approach
- Key differentiators
Learn why short-term high yield presents a unique opportunity for investors
Bond values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. In general, when interest rates rise, bond values fall and investors may lose principal value. High-yield securities have a greater risk of default and tend to be more volatile than higher-rated debt securities. The use of derivatives may reduce returns and/or increase volatility. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). This fund is exposed to foreign investment risk. Consult the fund’s prospectus for additional information on these and other risks.