Utility and Telecommunications Fund – EVUAX

 


 

Share Price 05-17-13 $16.40
Daily Change 0.15
YTD Return 14.99%
Inception Date 01-04-1994
Net Fund Assets 04-30-2013 $423,928,502.79

PERFORMANCE

AVERAGE ANNUAL TOTAL RETURNS % as of 03-31-2013

  1-year 3-year 5-year 10-year Inception
NAV 17.94 13.81 5.64 14.30 8.87
POP 11.16 11.59 4.40 13.63 8.54

S&P Utilities Index

  1-year 3-year 5-year 10-year Inception
  16.37 14.49 5.02 12.14 --

Important disclosure

For Class A shares, the maximum front-end sales charge is 5.75%. Performance including sales charge assumes the sales charge for the corresponding time period.
Public offering price (POP) is the price of one share of a fund including any sales charges. Net asset value (NAV) is the value of one share of the fund excluding any sales charges. Had sales charges been included, performance would be lower. Returns for periods of less than one year are not annualized.
The S&P 500 Utilities Index is an unmanaged index which includes the stocks in the utilities sector of the S&P 500 Index. You cannot invest directly in an index.

The inception date of Class A and Class B shares was 1-4-94 and Class C shares was 9-2-94. Historical performance shown for Class C prior to its inception is based on the performance of Class B, the original class offered. Classes B and C have the same expenses. Historical performance shown for all classes of the fund prior to 7-19-10 is based on the performance of the fund's predecessor, the Evergreen Utility and Telecommunications Fund.

EXPENSES %

Net Expense Ratio effective since 08-01-12 1.15%
Gross Expense Ratio 1.21%

Important disclosure

The advisor has committed, through 07-31-13, to waive fees and/or reimburse expenses to the extent necessary to cap the fund's total annual fund operating expenses after fee waiver, excluding certain expenses, at 1.14%. Without this cap, the fund's returns would have been lower.

MORNINGSTAR RATINGS as of 04-30-2013

Category = Utilities
3-Year out of 73 fundsMorningstar RatingMorningstar Rating
5-Year out of 72 funds Morningstar RatingMorningstar RatingMorningstar Rating
10-Year out of 53 funds Morningstar RatingMorningstar RatingMorningstar RatingMorningstar Rating
Overall out of 73 fundsMorningstar RatingMorningstar RatingMorningstar Rating

Important disclosure

The Overall Morningstar Rating for a fund is derived from a weighted-average of the performance figures associated with its three-, five- and ten-year (if applicable) ratings, based on risk-adjusted returns.

For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) Past performance is no guarantee of future results.

HOLDINGS

TOP HOLDINGS % of net assets as of 04-30-2013

Itc Holdings Corporation 5.13%
Sempra Energy 4.90%
NextEra Energy Incorporated 4.86%
Wisconsin Energy Corporation 4.84%
Northeast Utilities 4.83%
Visa Incorporated 4.79%
CMS Energy Corporation 4.61%
QR Energy LP Limited 3.46%
Exelon Corporation 3.43%
Kinder Morgan Incorporated 3.01%

TOP SECTORS % of net assets as of 04-30-2013

Utilities 63.54%
Energy 10.97%
Information Technology 8.23%
Telecommunication Services 5.41%
Cash 3.90%
Financials 3.02%
Unassigned 2.67%
Consumer Discretionary 2.20%
Industrials 0.06%
Consumer Staples 0.00%
Portfolio holdings and sectors are subject to change and may have changed since the date specified.

FUND STORY

PORTFOLIO MANAGER


O'Brien

Timothy P. O'Brien, CFA
Years of investment
experience: 30

The Fund

The Wells Fargo Advantage Utility and Telecommunications Fund seeks total return consisting of current income and capital appreciation by investing principally in securities of utility and telecommunication companies across all market capitalizations.

Competitive Advantages

  • Focus on utility and telecommunication stocks: Holdings are typically less correlated to the broader stock market than many other, more diversified equity funds while providing a higher level of income potential. A focus on utility and telecommunication stocks seeks to provide higher and more stable income production and a lower correlation of returns relative to the broader market. This creates the potential to reduce volatility within the context of an investor's diversified investment portfolio.
  • Flexible investment approach: The team can opportunistically allocate more weight to either telecommunication services or utilities and has the option to complement those investments with ones from other sectors. The team looks to recognize catalysts apt to unlock value and maximize upside potential while seeking to manage downside risk. This flexible approach allows for greater return potential without losing sight of volatility risk.

Risks

Stock fund values fluctuate in response to the activities of individual companies and general market and economic conditions. 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. The use of derivatives may reduce returns and/or increase volatility. Funds that concentrate their investments in limited sectors and therefore may be susceptible to financial, economic or market events impacting those sectors. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). This fund is exposed to convertible securities risk, foreign investment risk, high-yield securities risk, nondiversification risk, smaller-company securities risk, and subsidiary risk. Consult the fund's prospectus for additional information on these and other risks.

Figures quoted represent past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance shown without sales charges would be lower if sales charges were reflected. Current performance may be lower or higher than the performance data quoted and assumes the reinvestment of dividends and capital gains. Current month-end performance is available at the funds' website, wellsfargo.com/advantagefunds.

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