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ADVISER | Wells Fargo Funds Management, LLC
SUB-ADVISER | Wells Capital Management Incorporated ("Wells Capital Management")
PORTFOLIO MANAGERS
OBJECTIVE | The Intermediate Tax/AMT-Free Fund seeks current income exempt from federal income tax.
PRINCIPAL STRATEGIES | We invest principally in municipal securities of states, territories and possessions of the United States that pay interest exempt from federal income tax, including federal alternative minimum tax. Some of the securities may be below investment grade or may be unrated and deemed by us to be of comparable quality. Under normal circumstances, we do not invest in securities that pay interest subject to federal income tax or federal AMT. We may use futures, options or swap agreements, as well as other derivatives, to manage risk or to enhance return. Under normal circumstances, we expect the Fund's dollar-weighted average effective maturity to be between 3 and 10 years.
We start our investment process with a top-down, macroeconomic outlook to
determine portfolio duration and yield curve positioning as well as industry,
sector and credit quality allocations. Macroeconomic factors considered may
include, among others, the pace of economic growth, employment conditions,
inflation, and monetary and fiscal policy. In combination with our top-down
macroeconomic approach, we conduct intensive research on individual issuers
to uncover solid investment opportunities, especially looking for bonds whose
quality may be improving. Our security selection is based on several factors
including, among others, improving financial trends, positive industry and sector
dynamics, improving economic conditions, specific demographic trends and
value relative to other securities. 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 based on relative value considerations and
could be replaced with a security that presents a better value or risk/reward
profile. We may actively trade portfolio securities.
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 active trading risk, high-yield securities risk, and municipal
securities risk.
Consult the Fund's prospectus for additional information on these and other risks.
A portion of the Fund's
income may be subject to federal, state, and/or local income taxes
or the alternative minimum tax (AMT). Any capital gains
distributions may be taxable.
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