Strategic Income Fund – WSIAX

 


 

Share Price 08-28-15 $9.17
Daily Change 0.01
YTD Return -2.22%
30-Day SEC Yield as of 08-27-15 3.73%
View the 30-day unsubsidized SEC yields  
Inception Date 01-31-2013
Net Fund Assets 07-31-2015 $18,374,244.88

PERFORMANCE

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

  1-year 3-year 5-year 10-year Inception
NAV -0.94 -- -- -- 0.81
POP -5.38 -- -- -- -1.09

Barclays U.S. Universal Bond Index

  1-year 3-year 5-year 10-year Inception
  1.61 -- -- -- --

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. Universal Bond Index is an unmanaged market value-weighted performance benchmark for the U.S. dollar denominated bond market, which includes investment-grade, high yield, and emerging market debt securities with maturities of one year or more. You cannot invest directly in an index.

EXPENSES %

Net Expense Ratio effective since 07-01-15 0.91%
Gross Expense Ratio 1.49%

Important disclosure

The advisor has committed, through 02-29-16, 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 = Nontraditional Bond
3-Year out of -- funds
5-Year out of -- funds N/A
10-Year out of -- funds N/A
Overall out of -- funds

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

Indonesia Government Sr, 7.87%, 2019-04-15 2.77%
Mex Bonos Desarr Fix Rt Bonds, 4.75%, 2018-06-14 2.77%
Poland Government Bonds, 4.00%, 2023-10-25 2.76%
ACAS CLO LTD ACASC 2015 1A B 144A, 2.28%, 2027-04-18 2.72%
Jpmbb Commercial Mortgage Secu Jpmbb 2014 C19 D 144A, 4.67%, 2047-04-15 2.48%
Nota Do Tesouro Nacional Notes, 10.00%, 2019-01-01 1.95%
FIRST DATA CORP 2018B SECOND NEW TERM LOANS, 0.00%, 2018-09-24 1.92%
Spin Holdco Incorporated Initial Term Loan, 4.25%, 2019-11-14 1.71%
DELL EQUIPMENT FINANCE TRUST DEFT 2014 1 D 144A, 2.68%, 2020-06-22 1.65%
LEVEL 3 FINANCING INC TERM B III 2019, 0.00%, 2019-08-01 1.59%
Portfolio holdings are subject to change and may have changed since the date specified.

FUND STORY

PORTFOLIO MANAGERS


David Germany, Ph.D.

David Germany, Ph.D.
Years of investment
experience: 28

 

Niklas Nordenfelt, CFA

Niklas Nordenfelt, CFA
Years of investment
experience: 24

 

Tony Norris

Anthony Norris
Years of investment
experience: 49

 

Margaret Patel

Margaret Patel
Years of investment
experience: 43

 

Thomas M. Price, CFA

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

 

Scott M. Smith, CFA

Scott M. Smith, CFA
Years of investment
experience: 27

 

Noah Wise, CFA, CPA

Noah Wise, CFA
Years of investment
experience: 14

 

Alex Perrin

Alex Perrin
Years of investment
experience: 23

 
 

Ashok Bhatia, CFA
Years of investment
experience: 20


The Fund

The Wells Fargo Advantage Strategic Income Fund seeks total return, consisting of a high level of current income and capital appreciation.

Competitive Advantages

  • Global market expertise: The team is composed of asset class experts in U.S. high yield, U.S. core bonds, and international fixed income. This extensive coverage of the global fixed-income markets seeks to produce highly informed investment decisions that measure the best relative-value opportunities across a broad universe of international securities.
  • Flexible investment strategy: The fund is designed to tactically shift across asset classes, credit tiers, currency exposures, and duration targets in an effort to best maximize the most suitable risk-adjusted returns for its strategy objective. This flexibility allows the fund managers to nimbly move across the global markets as market conditions warrant without being unduly constrained by a restricted set of eligible securities or asset classes.
  • Disciplined risk management: The team uses proprietary risk management tools at the portfolio level in an effort to balance alpha generation with appropriate levels of risk-adjusted return, while benefiting from risk oversight consultation at the Wells Fargo firm level. This architecture empowers the portfolio managers to actively manage the fund within its own risk parameters.

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. 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. 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 mortgage- and asset-backed securities risk, and regional 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, 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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