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New Wells Fargo Advantage Funds Short-Term Trading Policy

Wells Fargo Advantage Funds will be making some changes to its short-term trading policies. These changes were approved by the Board of Trustees of Wells Fargo Advantage Funds and will be implemented as outlined below:

Short-term trading policy changes effective March 1, 2010
Excessive short-term trading by investors can be detrimental to the interests of long-term shareholders through disruption of portfolio management of a Fund, harm to Fund performance, and increased expenses. In an ongoing effort to better serve our shareholders, the Board of Trustees of Wells Fargo Advantage Funds approved several changes to its short-term trading policy to help mitigate the negative effects of short-term trading:

Effective March 1, 2010, Wells Fargo Advantage Funds will eliminate the following policies:

  • The suspension of the purchase and exchange privileges for a period of 30 calendar days of an investor who completes a purchase and redemption in a Fund within 30 calendar days.
  • The 2% redemption fee assessed on the net asset value (NAV) of shares redeemed or exchanged within 30 days after purchase of high-yield and international Funds.

Effective March 1, 2010, the Funds' short-term trading policy will be modified as follows:

  • Wells Fargo Funds Management, LLC, will continue to monitor available shareholder trading information across all Funds daily.
  • If a shareholder redeems more than $5,000 (including redemptions that are part of an exchange transaction) from a Fund, that shareholder will be "blocked" from purchasing shares of that Fund (including purchases that are part of an exchange transaction) for 30 calendar days after the redemption.

This modified policy will not apply to:

  • Money market funds;
  • The Wells Fargo Advantage Ultra Short-Term Income Fund;
  • The Wells Fargo Advantage Ultra Short-Term Municipal Income Fund;
  • Purchases of shares through dividend reinvestments;
  • Systematic purchases, redemptions, or exchanges where a financial intermediary maintaining a shareholder account identifies the transaction as a systematic purchase, redemption, or exchange at the time of the transaction;
  • Rebalancing transactions within certain asset allocation or "wrap" programs where the financial intermediary maintaining a shareholder account is able to identify the transaction as part of an asset allocation program approved by Wells Fargo Funds Management;
  • Transaction initiated by a registered "fund of funds" or Section 529 plan into an underlying fund investment;
  • Certain transactions involving participants in employer-sponsored retirement plans, including participant withdrawals due to mandatory distributions, rollovers, and hardships, withdrawals of shares acquired by participants through payroll deductions, and shares purchased or redeemed by a participant in connection with plan loans; and
  • Purchases below $5,000 (including purchases that are part of an exchange transaction).

An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although money market funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in a money market fund. For municipal income funds: A portion of the Fund's income may be subject to federal, state, and/or local income taxes or the alternative minimum tax (AMT). Any capital gains distributions may be taxable. For government funds: The U.S. government guarantee applies to certain underlying securities and not to shares of the Fund.