Back to Product Alerts

Portfolio Manager Change for Certain Wells Fargo Advantage and Evergreen Fixed Income Funds

Portfolio manager Lynne Royer has left Wells Capital Management to pursue other opportunities. Royer previously served as co-portfolio manager for the Wells Fargo Advantage Total Return Bond Fund, the Evergreen Core Bond Fund, the Evergreen Short Intermediate Bond Fund, and two variable trust funds: the Wells Fargo Advantage VT Total Return Bond Fund and the Evergreen VA Core Bond Fund.

Portfolio managers Thomas O'Connor, CFA and Troy Ludgood will continue to serve as co-heads of the Montgomery Fixed Income Strategies Team at Wells Capital Management, and as portfolio managers for the Funds. We believe the continued service of O'Connor and Ludgood will result in continuity of the investment process for these products. With the depth of resources available to portfolio management, we do not anticipate any significant disruption to the day-to-day management of the Funds. The following questions and answers provide details about this change.

Q. Can you tell me more about the two co-heads of the Montgomery Fixed Income Strategies Team?
A. Portfolio managers Thomas O'Connor, CFA and Troy Ludgood have an average of 15 years of industry experience and have worked together for more than six years as members of Montgomery Fixed Income Strategies Team at Wells Capital Management.

As part of succession planning, the portfolio managers assumed expanded responsibilities in March 2008 and, going forward, will be responsible for all day-to-day management of the portfolios and the investment staff.

More detailed information about the portfolio managers follows:

  • Thomas O'Connor has served as co-head of the Montgomery Fixed Income Strategies Team at Wells Capital Management since March 2008 and as a portfolio manager on the team since 2003. He also served as a portfolio manager in the fixed-income division of Montgomery Asset Management from 2000 to 2003. O'Connor earned a B.A. in business administration from the University of Vermont and has earned the right to use the Chartered Financial Analyst® designation.
  • Troy Ludgood has served as co-head of the Montgomery Fixed Income Strategies Team at Wells Capital Management since March 2008 and as a portfolio manager on the team since May 2007. He joined Wells Capital Management in 2004 as a senior credit trader and was promoted to director of credit training in 2006. Prior to joining Wells Capital Management, he was a trader at Lehman Brothers beginning in 2000. He has a B.S. degree in industrial engineering from Georgia Tech and an M.B.A. from the Wharton School of the University of Pennsylvania.

Q. Which Funds will they manage going forward?
A. O'Connor and Ludgood will continue to serve as portfolio managers for the Wells Fargo Advantage Total Return Bond Fund, the Evergreen Core Bond Fund, the Evergreen Short Intermediate Bond Fund, and two variable trust funds: the Wells Fargo Advantage VT Total Return Bond Fund and the Evergreen VA Core Bond Fund.

O'Connor will also continue as portfolio manager for the Wells Fargo Advantage Short Duration Government Bond Fund.

Q. Can you discuss the investment resources of this team?
A. This is a highly experienced team with the depth of investment experience and industry specialization to effectively execute its investment process. While O'Connor and Ludgood serve as co-heads and portfolio managers for the Funds, they are also part of a 15-member investment team that supports the Funds. The senior members of the team include portfolio managers and analysts. Other members of the team include associate research analysts and traders.

Q: Have steps been taken to preserve continuity of management in light of Royer's departure?
A. We believe that continuity of the investment management team and a strict adherence to the team's long-established investment process is in the best interest of fund shareholders. As both O'Connor and Ludgood share this belief, Wells Capital Management has worked closely with the two co-heads to determine an appropriate retention strategy, including new retention agreements for both individuals and incremental incentive opportunities for their team that encourage a longer-term commitment to Funds.

Q. Will the portfolio manager change result in any strategy changes for the investment style?
A. We do not anticipate any changes to the team's investment philosophy and process. The team is built on a foundation of open and collaborative research, and we expect that principal to continue to drive the team's process going forward. In addition, the two co-heads have worked together for more than six years, implementing a strategy first put in place in 1992. As it has in the past, the philosophy and process behind the strategy will guide the team's investment strategy going forward.

Q. Will the decision making process be impacted?
A. The team is committed to perpetuating and maintaining the integrity of the investment philosophy and process established 18 years ago, pursuing opportunities where it has an analytic and research-driven edge, and applying its relative value approach tempered by its proprietary risk management system.

The individual co-heads will continue their responsibility for decisions around individual securities within their respective areas of responsibility as well as for establishing top-down exposures and portfolio structure for the Funds.

Carefully consider a fund's investment objectives, risks, charges, and expenses before investing. For a current prospectus, containing this and other information, visit www.EvergreenInvestments.com for Evergreen Investments. Read the prospectus carefully before investing.

Stock fund values fluctuate in response to the activities of individual companies and general market and economic conditions. 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. Some funds, including nondiversified funds and funds investing in foreign investments, high-yield bonds, small and mid cap stocks, and/or more volatile segments of the economy, entail additional risk and may not be appropriate for all investors. Consult a Fund's prospectus for additional information on these and other risks.

The U.S. government guarantee applies to certain of the underlying securities and not to shares of the Short Duration Government Bond Fund.