Real Return Fund – IPBAX

 

Prior to December 1, 2014, the Real Return Fund was named the Inflation-Protected Bond Fund.
 

Share Price 09-04-15 $9.62
Daily Change -0.02
YTD Return -0.57%
30-Day SEC Yield as of 09-03-15 2.80%
View the 30-day unsubsidized SEC yields  
Inception Date 02-28-2003
Net Fund Assets 07-31-2015 $32,726,296.88

PERFORMANCE

AVERAGE ANNUAL TOTAL RETURNS % as of 06-30-2015

  1-year 3-year 5-year 10-year Inception
NAV -0.67 -0.96 2.81 3.49 3.88
POP -5.14 -2.46 1.87 3.01 3.49

Barclays U.S. Treasury Inflation-Protected Securities Index

  1-year 3-year 5-year 10-year Inception
  -1.73 -0.76 3.29 4.13 --

Important disclosure

For Class A shares, the maximum front-end sales charge is 4.50%. 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 Barclays U.S. TIPS (Treasury Inflation-Protected Securities) Index is an index of inflation-indexed linked U.S. Treasury securities. You cannot invest directly in an index.

EXPENSES %

Net Expense Ratio effective since 07-01-15 0.85%
Gross Expense Ratio 1.29%

Important disclosure

The advisor has committed, through 09-30-15, 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 0.85%. Without this cap, the fund's returns would have been lower.

MORNINGSTAR RATINGS as of 07-31-2015

Category = Inflation-Protected Bond
3-Year out of 198 fundsMorningstar RatingMorningstar Rating
5-Year out of 177 funds Morningstar RatingMorningstar Rating
10-Year out of 103 funds Morningstar RatingMorningstar Rating
Overall out of 198 fundsMorningstar 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 07-31-2015

TIPS, 0.12%, 2019-04-15 4.23%
TIPS, 0.12%, 2022-07-15 3.25%
TIPS, 0.25%, 2025-01-15 3.00%
TIPS, 0.62%, 2024-01-15 2.99%
TIPS, 0.12%, 2024-07-15 2.94%
TIPS, 0.37%, 2023-07-15 2.85%
TIPS, 0.62%, 2021-07-15 2.85%
TIPS, 0.12%, 2018-04-15 2.79%
TIPS, 0.12%, 2023-01-15 2.79%
TIPS, 0.12%, 2017-04-15 2.64%
Portfolio holdings are subject to change and may have changed since the date specified.

FUND STORY

PORTFOLIO MANAGERS


Kandarp Acharya, CFA, FRM

Kandarp Acharya, CFA, FRM
Years of investment
experience: 16

 

Michael Bradshaw, CFA

Michael Bradshaw, CFA
Years of investment
experience: 20

 

Christian L. Chan, CFA

Christian L. Chan, CFA
Years of investment
experience: 18

 

Jeffrey Everett, CFA

Jeffrey Everett, CFA
Years of investment
experience: 28

 

Ann M. Miletti

Ann M. Miletti
Years of investment
experience: 19

 

Jay N. Mueller, CFA

Jay N. Mueller, CFA
Years of investment
experience: 32

 

Thomas M. Price, CFA

Thomas M. Price, CFA
Years of investment
experience: 25

 

Dale A. Winner, CFA

Dale A. Winner, CFA
Years of investment
experience: 28


The Fund

The Wells Fargo Advantage Real Return Fund seeks to achieve a real rate of return (returns in excess of long-term inflation) by primarily investing in inflation-protected debt securities and also having moderate exposure to equities and credit sectors of the bond market.

Competitive Advantages

  • Diversified multi-asset strategy: A broader asset strategy is unique among its peers and seeks to provide greater inflation protection than a traditional inflation-hedged strategy while maintaining comparable volatility, or risk.
  • Asset allocation and sector expertise: A nine-member portfolio management team combines the skills of top-down asset allocation experts and dedicated debt- and equity-sector specialists.
  • Disciplined risk management: The portfolio-management team uses comprehensive risk management tools at each step of the process to ensure appropriate levels of risk-adjusted returns.

Risks

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. Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. High-yield securities have a greater risk of default and tend to be more volatile than higher-rated debt securities. Loans are subject to risks similar to those associated with other below-investment-grade bond investments, such as credit risk (for example, risk of issuer default), below-investment-grade bond risk (for example, risk of greater volatility in value), and risk that the loan may become illiquid or difficult to price. Foreign investments are especially volatile and can rise or fall dramatically due to differences in the political and economic conditions of the host country. These risks are generally intensified in emerging markets. Smaller-company stocks tend to be more volatile and less liquid than those of larger companies. 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, principal value, and yields 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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