New Mutual Funds Within the Wells Fargo Advantage WealthBuilder PortfoliosSM Frequently Asked Questions
What changes were made to the Wells Fargo Advantage WealthBuilder Portfolios?- The PIMCO High Yield Fund has replaced the MFS High Income Fund in the four allocation WealthBuilder Portfolios (as indicated in the table below).
- The Thornburg International Value Fund has been added to all six WealthBuilder Portfolios.
The following table outlines the changes.
| Wells Fargo Advantage WealthBuilder Portfolios |
Fund Holdings Change(s) Effective December 14, 2006 |
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| Conservative Allocation Portfolio Moderated Balanced Portfolio Growth Balanced Portfolio Growth Allocation Portfolio |
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| Equity Portfolio Tactical Equity Portfolio |
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When did the changes take place?
These changes became effective on December 14, 2006.
Why were these changes made?
Our portfolio managers regularly examine the underlying funds within the Wells Fargo Advantage WealthBuilder Portfolios and make adjustments when necessary with the goal of offering the most competitive product in the marketplace.
The Thornburg International Value Fund is in Morningstar's foreign large blend category and was added into the WealthBuilder Portfolios to complement the existing international large-cap value and international large-cap growth fund offerings. The PIMCO High Yield Fund was added to the WealthBuilder Portfolios to leverage PIMCO's high-yield expertise in fixed-income investing. PIMCO manages over $21 billion in this strategy and follows a conservative approach, focusing on improving credits and avoiding defaults. As the WealthBuilder Portfolios' only high-yield fund holding within the four asset allocation portfolios, we believe that PIMCO's conservative style may provide consistent performance against its benchmark and peers over the long term.
What fund families currently comprise the investments in the WealthBuilder Portfolios?
The WealthBuilder Portfolios now harness the collective expertise of fund managers from these mutual fund families:
- Wells Fargo Advantage Funds
- DWS Funds
- ING Funds
- John Hancock Funds
- Oppenheimer Funds
- PIMCO Funds
- T. Rowe Price Funds
- Thornburg Funds
What are the Wells Fargo Advantage Wealthbuilder Portfolios?
The Wells Fargo Advantage WealthBuilder Portfolios were first introduced in 1997 and are part of our long history of pioneering asset allocation strategies. The Portfolios in the series utilize a funds-of-funds approach composed of both proprietary and nonproprietary mutual funds and offer investors a range of portfolios to match their risk profile. The portfolio managers apply the disciplines of Tactical Asset Allocation and Tactical Equity Allocation modeling to help manage risk and seek to capitalize on rotating market cycles.
Balanced funds may invest in stocks and bonds. Stocks should only be considered for long-term goals as 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. Investment strategies that emphasize particular market segments or fewer securities tend to increase the total risk of an investment (relative to the broader market). These funds are exposed to one or more of the following: small cap risk, foreign investments risk and high yield bond risk. Consult the Fund's prospectus for additional information on these and other risks.
Asset allocation and diversification do not assure or guarantee better performance and cannot eliminate the risk of investment losses.