Asset Allocation Fund – EAAFX

 


 

Share Price 08-28-15 $13.21
Daily Change 0.02
YTD Return -3.51%
Inception Date 07-29-1996
Net Fund Assets 07-31-2015 $5,369,366,949.37

PERFORMANCE

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

  1-year 3-year 5-year 10-year Inception
NAV -3.54 6.20 7.46 5.08 7.55
POP -9.09 4.12 6.21 4.46 7.22

Lipper Flexible Portfolio Funds

  1-year 3-year 5-year 10-year Inception
  -1.67 7.59 8.63 5.65 --

Important disclosure

For Class A shares, the maximum front-end sales charge is 5.75%. 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.

Source: Lipper, Inc. The Lipper Flexible Portfolio Funds Average is an average of funds that allocates its investments across various asset classes, including domestic common stocks, bonds, and money market instruments with a focus on total return. The total return of the Lipper Average does not include the effect of sales charges. You cannot invest directly in a Lipper Average.

EXPENSES %

Net Expense Ratio effective since 07-01-15 1.31%
Gross Expense Ratio 1.31%

Important disclosure

The advisor has committed, through 08-31-15, 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 0.87%. Without this cap, the fund's returns would have been lower.

MORNINGSTAR RATINGS as of 07-31-2015

Category = World Allocation
3-Year out of 462 fundsMorningstar RatingMorningstar Rating
5-Year out of 344 funds Morningstar RatingMorningstar Rating
10-Year out of 182 funds Morningstar RatingMorningstar RatingMorningstar Rating
Overall out of 462 fundsMorningstar RatingMorningstar 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

GMO International Intrin Iv Mutual Fund 25.42%
GMO Tr Ast Alloc Bd Fd Cl Vi Mutual Funds 20.07%
GMO U.S. Core Equity Fund, Class VI 14.76%
GMO Emerging Markets Fund Class VI 12.34%
GMO Tr U.S. Treasury Fd Mutual Fund 9.57%
GMO Alpha Only Fund Class IV 6.02%
GMO Debt Opportunities Fund VI 4.53%
GMO Emerging Country Debt Fund Class IV 4.52%
GMO Risk Premium Fund VI 2.71%
State Street Bank Euro Dollar Time Deposit, 0.01%, 2015-08-03 0.08%
Portfolio holdings are subject to change and may have changed since the date specified.

FUND STORY

PORTFOLIO MANAGERS


Ben Inker, CFA

Ben Inker, CFA*
Years of investment
experience: 23

 

Sam Wilderman, CFA

Sam Wilderman, CFA*
Years of investment
experience: 19


The Fund

The Wells Fargo Advantage Asset Allocation Fund seeks long-term total return through tactical allocations to equity, bond, and alternative investments.

Competitive Advantages

  • Identifying asset class mispricings: GMO has studied the patterns of outliers in all financial asset class return series. Central to the team's process is determining fair value for the major asset classes, from which the team infers a real return that should be realized as each asset class moves back to its estimated fair value.
  • Hybrid quantitative management: The team translates asset class return forecasts into portfolio weights using traditional mean-variance optimization as a starting point. The goal is to successfully marry the discipline of quantitative models with qualitative insights by drawing upon decades of money management experience.

Risks

Balanced funds may invest in stocks and bonds. Stock 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. Alternative investments such as, commodities, real estate, and short strategies are speculative and entail a high degree of risk. Foreign investments are especially volatile and can rise or fall dramatically due to differences in the political and economic conditions of the host country. The Fund will indirectly be exposed to all of the risks of an investment in the underlying funds and will indirectly bear expenses of the underlying funds. 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 high yield securities risk, mortgage- and asset-backed securities risk, and smaller company securities risk. Consult the Fund's prospectus for additional information on these and other risks. The Fund invests substantially all of its assets in Asset Allocation Trust, an open-end management investment company having the same investment objective and strategy as the Fund. Any portfolio data shown for the Fund represents that of the Asset Allocation Trust.

Figures quoted represent past performance, which is no guarantee of future results. Investment return and principal value 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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