High Income Fund – SHBAX

 


 

Share Price 09-01-15 $6.61
Daily Change 0.00
YTD Return -0.83%
30-Day SEC Yield as of 08-31-15 5.20%
View the 30-day unsubsidized SEC yields  
Inception Date 12-28-1995
Net Fund Assets 07-31-2015 $456,271,976.64

PERFORMANCE

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

  1-year 3-year 5-year 10-year Inception
NAV -2.94 4.31 6.83 6.18 6.58
POP -7.30 2.72 5.85 5.69 6.33

Barclays U.S. Corporate High Yield Index

  1-year 3-year 5-year 10-year Inception
  -0.40 6.81 8.61 7.89 --

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. Corporate High Yield Bond Index is an unmanaged, U.S. dollar denominated, nonconvertible, non-investment grade debt index. The Index consists of domestic and corporate bonds rated Ba and below with a minimum outstanding amount of $150 million. You cannot invest directly in an index.

EXPENSES %

Net Expense Ratio effective since 07-01-15 0.91%
Gross Expense Ratio 1.01%

Important disclosure

The advisor has committed, through 12-31-15, 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 0.90%. Without this cap, the fund's returns would have been lower.

MORNINGSTAR RATINGS as of 07-31-2015

Category = High Yield Bond
3-Year out of 613 fundsMorningstar Rating
5-Year out of 517 funds Morningstar Rating
10-Year out of 362 funds Morningstar RatingMorningstar Rating
Overall out of 613 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

Sprint Corp Company Guar, 7.87%, 2023-09-15 2.07%
VALEANT PHARMACEUTICALS COMPANY GUAR 144A 04/25 6.125, 6.12%, 2025-04-15 1.85%
American Axle & Manufacturing, Incorporated, 6.62%, 2022-10-15 1.39%
The Goodyear Tire & Rubber Company, 6.50%, 2021-03-01 1.17%
Tenet Healthcare Corp Sr Unsecured 144A, 6.75%, 2023-06-15 1.16%
Clear Channel Worldwide Company Guar, 6.50%, 2022-11-15 1.14%
HCA Incorporated Sr Secured, 4.75%, 2023-05-01 1.14%
Ardagh Pkg Fin/Hldgs USA Company Guar 144A, 6.75%, 2021-01-31 1.14%
Quebecor Media Incorporated Sr Unsecured 5.75, 5.75%, 2023-01-15 1.14%
CROWN CASTLE OPERATING CO INCREMENTAL TLB 2 TRANCHE, 0.00%, 2021-01-31 1.09%
Portfolio holdings are subject to change and may have changed since the date specified.

FUND STORY

PORTFOLIO MANAGERS


Thomas M. Price, CFA

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

 

Kevin J. Maas, CFA

Kevin J. Maas, CFA
Years of investment
experience: 16

 

Michael J. Schueller, CFA

Michael J. Schueller, CFA
Years of investment
experience: 15


The Fund

The Wells Fargo Advantage High Income Fund seeks current income by investing primarily in a diversified portfolio of non-investment-grade corporate debt securities.

Competitive Advantages

  • Rigorous corporate debt analysis: Security selection is conducted by a team of corporate credit analysts that have extensive experience in the research, trading, and portfolio management of below-investment-grade debt.
  • Disciplined risk management: The team uses proprietary risk management tools that are designed to balance alpha generation with appropriate levels of risk-adjusted return and comprehensive risk management.
  • Open work environment: The team benefits from an open work environment in which investment management professionals in varying capacities interact continuously throughout the day. This includes partnerships with economists and various taxable fixed-income teams who provide valuable perspectives for measuring several differing sectors of the fixed-income markets.

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. 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 (e.g. risk of issuer default), below investment grade bond risk (e.g. risk of greater volatility in value) and risk that the loan may become illiquid or difficult to price. 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 foreign investment risk. Consult the fund's prospectus for additional information on these and other risks. 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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