Fixed-income portfolio manager changes: Frequently asked questions

One of the benefits of the recent integration of Evergreen Investments^SM into the Wells Fargo asset management organization is that we are able to strategically align managers to certain products to add more depth to existing portfolio management teams. Effective October 1, 2010, there will be several portfolio manager changes for certain Wells Fargo Advantage fixed-income funds. We are confident that the appointment of new portfolio managers will result in a seamless transition and continuity of the investment process for these funds.

The following questions and answers provide details about the changes and the investment teams that support the funds.

What changes to the portfolio manager teams for certain fixed-income funds will take effect on October 1, 2010?

Wells Fargo Advantage Fund	Current Portfolio Management Team	New Portfolio Management Team (Effective 10-1-10)
Wells Fargo Advantage Government Securities Fund	Michael J. Bray, CFA Jay N. Mueller, CFA	Michael J. Bray, CFA Christopher Y. Kauffman, CFA
Wells Fargo Advantage Short Duration Government Bond Fund	Thomas O'Connor, CFA	Thomas O’Connor, CFA Troy Ludgood
Wells Fargo Advantage Short-Term Bond Fund	Jay N. Mueller, CFA Janet S. Rilling, CFA, CPA	Jay N. Mueller, CFA D. James Newton II, CFA, CPA Christopher Y. Kauffman, CFA
Wells Fargo Advantage Strategic Municipal Bond Fund	Lyle J. Fitterer, CFA, CPA	Lyle J. Fitterer, CFA, CPA Wendy Casetta Robert J. Miller
Wells Fargo Advantage Ultra Short-Term Income Fund	Jay N. Mueller, CFA D. James Newton II, CFA, CPA Thomas M. Price, CFA	Jay N. Mueller, CFA D. James Newton II, CFA, CPA Thomas M. Price, CFA Christopher Y. Kauffman, CFA

Why are these portfolio management changes taking place?
These changes are intended to efficiently leverage the investment talent within Wells Capital Management (WellsCap) now that it has fully integrated Evergreen Investments within its organization. We believe that these changes will add depth and experience to the portfolio management teams and will align resources more effectively.

When are these changes effective?
The portfolio management changes take effect on October 1, 2010.

Will the portfolio management team appointments result in any changes to the investment strategy or process for any of the funds?
No. These portfolio management appointments will not impact the current investment objective, strategy, or process for any of the Funds. We are confident that the appointment of new portfolio managers will result in a seamless transition and continuity of the investment process for these products.

Will any portfolio managers be leaving the firm as a result of these portfolio management team changes?
No. All of the current portfolio managers remain at WellsCap managing the fixed-income products that best align with their talents and expertise.

Tell me more about these portfolio managers.
Michael J. Bray, CFA, is the managing director of taxable fixed-income and a senior portfolio manager for the WellsCap Fixed-Income team. He began his investment industry career in 1988. Prior to joining WellsCap in 2005, he was a managing director at State Street Research and Management, focusing on mutual fund and institutional account management. He also gained experience while with Merrill Lynch & Company as vice president of mortgage securities research and sales. Earlier, he was an analyst with Manufacturers Hanover Company, specializing in mortgage and derivative securities. Michael earned a bachelor's degree in math and actuarial science from the University of Connecticut, Storrs, and an M.B.A. with an emphasis in finance from The Pennsylvania State University. He has earned the right to use the CFA designation.

Wendy Casetta is a portfolio manager for the WellsCap Municipal Credit Research team, having joined the organization as part of its acquisition of Strong Capital Management. Prior to joining Strong, Wendy was a fixed-income trader and investment associate at Barnett Capital Advisors in Jacksonville, Florida. She began her investment industry career in 1993 as a registered representative at the Nicholas Company in Milwaukee. Wendy earned a bachelor's degree in finance from the University of Wisconsin, Oshkosh, and an M.B.A. from the University of North Florida, Jacksonville.

Lyle J. Fitterer, CFA, CPA, is head of the Tax-Exempt Fixed-Income team at WellsCap, where he manages portfolio teams focused on municipal fixed-income strategies. Lyle joined the firm as part of its acquisition of Strong Capital Management. At Strong, he was appointed director of Strong's Municipal Fixed-Income team in 2000. Prior to that, he served in a variety of other roles with the firm, including the managing director of Strong's Institutional Client Services team where he was responsible for overseeing institutional and intermediary sales. For six years prior to that, Lyle was a member of the Strong Taxable Fixed-Income team, initially as an analyst and trader, and then as a portfolio manager specializing in mortgage- and asset-backed securities. Lyle began his investment career in 1989. He earned a bachelor's degree in accounting from the University of North Dakota. He is a certified public accountant and has earned the right to use the CFA designation. Lyle is a member of CFA Institute.

Christopher Y. Kauffman, CFA, is a portfolio manager for WellsCap's Fixed-Income team. He joined WellsCap from Tattersall Advisory Group (TAG), an affiliate of Evergreen Investments, where he served in a similar role starting in 2003. He began his investment industry career in 1997 as an investment officer for NISA Investment Advisors, where he was responsible for mortgage-backed securities analysis, risk assessment, and trading. He earned a bachelor's degree in finance and economics and an M.B.A. with an emphasis in finance from Washington University in St. Louis. He has earned the right to use the CFA designation and is a member of the St. Louis Society of Financial Analysts and CFA Institute.

Troy Ludgood began his investment career in 2000 and is a managing director, senior portfolio manager, and co-head on the Montgomery Fixed-Income team at WellsCap. Previously, he was a trader at Lehman Brothers, responsible for corporate, emerging markets, and nondollar sovereign bonds. He earned a bachelor's degree in industrial engineering from Georgia Tech and earned his M.B.A. from Wharton School at the University of Pennsylvania.

Robert J. Miller is a senior portfolio manager for the WellsCap Municipal Bond team, where he manages mutual funds and separate accounts. Prior to joining WellsCap in 2008, Robert worked for American Century Investments where he was part of a team that managed $3.5 billion in municipal bond assets. In addition to managing several other funds for American Century, Robert also served as a member of its analytical team. Earlier, Robert spent eight years in New York as a municipal bond analyst with Moody's Investors Service. He also founded a small venture capital firm and served as a consultant with Black and Veatch and KPMG Peat Marwick where he specialized in conducting financial feasibility studies in support of large infrastructure products. He earned a bachelor's degree in business administration with an emphasis in finance from San Jose State University and an M.B.A. from the Leonard N. Stern School of Business at New York University.

Jay N. Mueller, CFA, is a senior portfolio manager for the WellsCap Fixed-Income team. Jay joined WellsCap in 2005 as part of its acquisition of Strong Capital Management where he held the role of director of fixed-income. Jay had joined Strong Capital Management in 1991 as a portfolio manager for certain money market funds. Prior to his service at Strong, he was a portfolio manager and security analyst at R. Meeder & Associates. Jay began his investment industry career in 1982 at Harris Bancorp as an investment analyst. Throughout his career, he has managed equity derivatives, bond portfolios, money market funds, international cash portfolios, municipal portfolios, and index funds. He served as Strong's economist from early 2000 until 2005, making him an articulate spokesman on the economy and interest rates. Jay earned a bachelor's degree in economics from the University of Chicago. He has earned the right to use the CFA designation.

D. James (Jamie) Newton II, CFA, CPA, is the head of investment-grade credit research and a portfolio manager for the WellsCap Fixed-Income team. Jamie joined WellsCap as part of its acquisition of Strong Capital Management, having joined Strong in 2002. He began his investment industry career in 1992 as an auditor with Deloitte & Touche, LLP. In 1998, Jamie joined Northwestern Mutual Life Insurance Company as an associate in its private placement department. Later, he moved to the public fixed-income department as an investment-grade credit analyst and was subsequently promoted to director. Jamie earned a bachelor's degree in economics with an emphasis in accounting from Albion College, and an M.B.A. with an emphasis in finance from the University of Michigan. He is a certified public accountant and has earned the right to use the CFA designation.

Thomas O'Connor, CFA, began his investment career in 1988 and is a managing director, senior portfolio manager, and co-head of the Montgomery Fixed-Income Team at WellsCap. Prior to joining the team in 2000, Thomas was a senior portfolio manager in charge of agency mortgages at Vanderbilt Capital Advisors (formerly ARM Capital Advisors). Previously, Thomas was a senior trader of agency mortgages in both a proprietary and market-making role at the Union Bank of Switzerland. He was also a senior trader at First Boston and Smith Barney. Thomas is a CFA charterholder and a member of CFA Institute. He has a bachelor's degree in business administration from the University of Vermont.

Thomas M. Price, CFA, is managing director and a senior portfolio manager for the WellsCap Fixed-Income team. Thomas joined WellsCap as part of its acquisition of Strong Capital Management. He joined Strong in 1996 as a research analyst and became a portfolio manager in 1998. Prior to his service at Strong, he was a high-yield bond analyst with Northwestern Mutual Life Insurance Company. Thomas began his investment industry career in 1989 with Houlihan, Lokey, Howard & Zukin. He earned a bachelor's degree in finance from the University of Michigan and a master's of management degree in finance from the Kellogg Graduate School of Management at Northwestern University. Thomas has earned the right to use the CFA designation.

Janet S. Rilling, CFA, CPA, is a senior portfolio manager for the WellsCap Fixed-Income team, joining the firm in 2005 as part of its acquisition of Strong Capital Management. She is a portfolio manager of the Wells Fargo Advantage Income Plus Fund. Janet began her investment industry career in 1995, when she joined Strong as a research analyst, and became a portfolio manager in 2000. Prior to joining Strong, she was an auditor with Coopers & Lybrand, specializing in the manufacturing and financial services industries. She earned a bachelor's degree in accounting and finance and a master's degree in finance from the University of Wisconsin, Madison. Janet is a certified public accountant and has earned the right to use the CFA designation.

Why will Jay Mueller no longer serve as a portfolio manager for the Wells Fargo Advantage Government Securities Fund?
One of the benefits of the completion of the integration of Evergreen Investments into the firm is that we can align resources effectively and efficiently by leveraging the breadth of investment talent at WellsCap. This change allows the Government Securities Fund to benefit from the expertise of Christopher Kauffman in the area of mortgage-backed securities. In addition, the change allows Jay Mueller to focus on his existing responsibilities as co-portfolio manager of the Wells Fargo Advantage Short-Term Bond Fund and the Wells Fargo Advantage Ultra Short-Term Income Fund. The WellsCap Fixed Income team continues to leverage Jay's 28 years of industry experience. As a senior member of the WellsCap Fixed Income team, Jay will continue to serve as senior portfolio manager and lead economic analyst for the entire team.

Why will Janet Rilling no longer serve as a portfolio manager for the Wells Fargo Advantage Short-Term Bond Fund?
As with the portfolio manager changes for the Government Securities Fund, the integration with Evergreen Investments provides an opportunity to align resources effectively and efficiently by leveraging the breadth of investment talent at WellsCap. Janet Rilling's primary focus on the WellsCap Fixed Income team is on longer duration strategies, while Jamie Newton and Christopher Kauffmann's expertise is on shorter-term strategies. Jamie Newton is the head of Investment Grade Credit Research at WellsCap with a specific focus on the shorter end of the bond market. Christopher Kauffmann's specific expertise is in shorter duration mortgage-backed securities and government agencies. Janet Rilling continues as a portfolio manager of the Wells Fargo Advantage Income Plus Fund.

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. Active trading results in increased turnover and trading expenses and may generate higher short-term capital gains. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The funds are exposed to municipal securities risk, high-yield securities risk, and nondiversification risk. Consult a fund's prospectus for additional information on these and other risks. A portion of a fund's income may be subject to federal, state, and/or local income taxes or the alternative minimum tax (AMT). The U.S. government guarantee applies to certain underlying securities and not to shares of the fund.