Wells Fargo Advantage Ultra Short-Term Income Fund
STADX
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ADVISER | Wells Fargo Funds Management, LLC
SUB-ADVISER | Wells Capital Management Incorporated ("Wells Capital Management")
PORTFOLIO MANAGERS

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Thomas M. Price, CFA Managed the Ultra Short-Term Income Fund and its predecessor since 2002
Mr. Price joined Wells Capital Management in 2005 as a Portfolio Manager. Prior
to joining Wells Capital Management, he was with Strong Capital Management ("SCM")
since April 1996 as a fixed income research analyst and, since May 1998, as a
portfolio manager. During this period, Mr. Price managed several fixed-income
funds and separate accounts. Mr. Price began his investment career at Houlihan,
Lokey, Howard & Zukin as a financial analyst and later joined Northwestern Mutual
Life Insurance as a high-yield bond analyst. He received his B.B.A. degree in
Finance from the University of Michigan and his M.B.A. degree in Finance from
the Kellogg Graduate School of Management, Northwestern University.
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Jay N. Mueller, CFA Managed the Ultra Short-Term Income Fund and its predecessor since 2004
Mr. Mueller joined Wells Capital Management in 2005 as a Portfolio Manager. Prior to joining Wells Capital Management, he was a portfolio manager with Strong Capital Management ("SCM") since 1991. He also served as Director of Fixed Income for SCM from July 2002 to July 2004. Prior to joining SCM, he was a securities analyst and portfolio manager at R. Meeder & Associates. He began his investment career at Harris Trust & Savings Bank as an investment analyst. Mr. Mueller earned a B.A. degree in Economics from the University of Chicago.
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D. James Newton II, CFA, CPA Managed the Ultra Short-Term Income Fund since 2008
Mr. Newton is the head of investment-grade credit research and a portfolio manager for the Wells Capital Management Fixed Income team. He joined Wells Capital Management in 2005 as a portfolio manager and senior research analyst. Prior to joining Wells Capital Management, he was a high-grade, fixed-income analyst with Strong Capital Management since October 2002. Mr. Newton was an investment-grade credit analyst and private placement analyst at Northwestern Mutual Life Insurance Company from July 1998 to October 2002. He earned a master's degree in business administration with a concentration in finance from the University of Michigan and a bachelor's degree in economics with a concentration in accounting from Albion College. He is a Certified Public Accountant and has earned the right to use the Chartered Financial Analyst® (CFA®) designation.
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OBJECTIVE | The Ultra Short-Term Income Fund seeks current income consistent with capital preservation.
PRINCIPAL STRATEGIES | We invest principally in income-producing debt securities. Our portfolio holdings may include U.S. Government obligations, corporate debt securities, bank loans and mortgage- and asset-backed debt securities. We may invest in investment-grade and below investment-grade debt securities (often called "high-yield" securities or "junk bonds"), as well as in debt securities of both domestic and foreign issuers. As part of our below investment-grade debt securities investment strategy, we will generally invest in securities that are rated at least BB by Standard & Poor's or Ba by Moody's, or are of equivalent quality. We may also use futures, options or swap agreements, as well as other derivatives, to manage risk or to enhance return. We may also invest in stripped securities. Under normal circumstances, we expect the Fund's dollar-weighted average effective maturity to be one year or less.
We employ a top-down, macroeconomic outlook to determine the portfolio's
duration, yield curve positioning, credit quality and sector allocation.
Macroeconomic factors considered may include, among others, the pace of
economic growth, employment conditions, corporate profits, inflation, monetary
and fiscal policy, as well as the influence of international economic and financial
conditions. In combination with our top-down macroeconomic approach, we
employ a bottom-up process of fundamental securities analysis to select the
specific securities for investment. Elements of this evaluation may include credit
research, duration measurements, historical yield spread relationships, volatility
trends, mortgage refinance rates, as well as other factors. Our credit analysis
may consider an issuer's general financial condition, its competitive position and
its management strategies, as well as industry characteristics and other factors.
We may sell a security due to changes in credit characteristics or outlook, as
well as changes in portfolio strategy or cash flow needs. A security may also be
sold and replaced with one that presents a better value or risk/reward profile.
RISKS | Bond fund 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 fund values fall and investors may lose principal value. 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, high-yield securities risk, and mortgage- and asset-backed securities risk. Consult the Fund's prospectus for additional information on these and other risks.
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TOP HOLDINGS – % of net assets as of 07-31-2010


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| Federal Home Loan Bank Fixed, 0.75%, 2011-11-21 |
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2.65% |


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| U.S. Treasury Note, 0.87%, 2011-02-28 |
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2.64% |


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| U.S. Treasury Note, 0.87%, 2011-05-31 |
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1.98% |


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| U.S. Treasury Note, 0.87%, 2011-04-30 |
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1.98% |


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| U.S. Treasury Note, 0.87%, 2011-03-31 |
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1.78% |


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| Ba Cr Card Tr 2008 A5 Ntcl A, 1.54%, 2013-12-16 |
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1.35% |


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| CHAIT 2009 A2 A2 VAR, 1.89%, 2014-04-15 |
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1.19% |


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| CCCIT 2009 A1 A1 FRN, 2.09%, 2014-03-17 |
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1.14% |


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| JP Morgan Chase & Company Series 3, 0.78%, 2012-12-26 |
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0.91% |


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| GENERAL ELECTRIC CAPITAL CORP 06/12 VAR, 1.00%, 2012-06-12 |
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0.87% |


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