Wells Fargo Closed-End Funds Declare Monthly and Quarterly Distributions; Wells Fargo Income Opportunities Fund Reduces
Distribution
The Wells Fargo Income Opportunities Fund (NYSE MKT: EAD), the Wells Fargo Multi-Sector Income Fund (NYSE MKT: ERC), the Wells
Fargo Utilities and High Income Fund (NYSE MKT: ERH), and the Wells Fargo Global Dividend Opportunity Fund (NYSE: EOD) have each
announced a distribution declaration. The distribution for the Wells Fargo Income Opportunities Fund is reduced from its prior
distribution, as shown below.
Ticker |
|
Fund name |
|
Distribution
per share
|
|
Frequency |
|
Change from
prior
distribution
|
EAD |
|
Wells Fargo Income Opportunities Fund |
|
$0.05641 |
|
Monthly |
|
-$0.00342 |
ERC* |
|
Wells Fargo Multi-Sector Income Fund |
|
$0.10750 |
|
Monthly |
|
$0.00022 |
ERH |
|
Wells Fargo Utilities and High Income Fund |
|
$0.07500 |
|
Monthly |
|
– |
EOD* |
|
Wells Fargo Global Dividend Opportunity Fund |
|
$0.16337 |
|
Quarterly |
|
-$0.00146 |
The following dates apply to today’s distribution declaration for each fund:
Declaration date August 16, 2017
Ex-dividend date September 11, 2017
Record date September 13, 2017
Payable date October 2, 2017
*This fund makes distributions in accordance with a managed distribution plan that provides for the declaration of monthly
distributions (in the case of the Wells Fargo Multi-Sector Income Fund) or quarterly distributions (in the case of the Wells Fargo
Global Dividend Opportunity Fund) to common shareholders of the fund at an annual minimum fixed rate of 9% for the Wells Fargo
Multi-Sector Income Fund and 10% for the Wells Fargo Global Dividend Opportunity Fund based on the fund’s average monthly net asset
value (NAV) per share over the prior 12 months. Under the managed distribution plan, distributions may be sourced from income,
paid-in capital, and/or capital gains, if any. The fund’s distributions in any period may be more or less than the net return
earned by the fund on its investments and therefore should not be used as a measure of performance or confused with yield or
income. Distributions in excess of fund returns will cause the fund’s NAV to decline. Investors should not draw any conclusions
about the fund’s investment performance from the amount of its distribution or from the terms of its managed distribution plan.
The Wells Fargo Income Opportunities Fund is a closed-end high-yield bond fund. The fund’s investment objective is to seek a
high level of current income. The fund may, as a secondary objective, seek capital appreciation to the extent it is consistent with
its investment objective. The reduction in the dividend rate is primarily attributable to conditions in the U.S. high-yield market,
which has resulted in adjustments to forecasted income. The fund is reducing its monthly dividend from $0.05983 to $0.05641 per
share.
The Wells Fargo Multi-Sector Income Fund is a closed-end income fund. The fund’s investment objective is to seek a high level of
current income consistent with limiting its overall exposure to domestic interest-rate risk.
The Wells Fargo Utilities and High Income Fund is a closed-end equity and high-yield bond fund. The fund’s investment objective
is to seek a high level of current income and moderate capital growth, with an emphasis on providing tax-advantaged dividend
income.
The Wells Fargo Global Dividend Opportunity Fund is a closed-end equity and high-yield bond fund. The fund’s investment
objective is to seek a high level of current income. The fund’s secondary objective is long-term growth of capital.
The final determination of the source of all distributions is subject to change and is made after year-end. Each fund will send
shareholders a Form 1099-DIV for the calendar year that will tell shareholders how to report these distributions for federal income
tax purposes.
For more information on Wells Fargo’s closed-end funds, please visit our website.
These closed-end funds are no longer engaged in initial public offerings, and shares are only available through
broker/dealers on the secondary market. Unlike an open-end mutual fund, a closed-end fund offers a fixed number of shares for
sale. After the initial public offering, shares are bought and sold through broker/dealers in the secondary marketplace, and the
market price of the shares is determined by supply and demand, not by NAV, and is often lower than the NAV. A closed-end fund is
not required to buy its shares back from investors upon request.
High-yield, lower-rated bonds may contain more risk due to the increased possibility of default. Foreign investments may contain
more risk due to the inherent risks associated with changing political climates, foreign market instability, and foreign currency
fluctuations. Risks of international investing are magnified in emerging or developing markets. Funds that concentrate their
investments in a single industry or sector may face increased risk of price fluctuation over more diversified funds due to adverse
developments within that industry or sector. Small- and mid-cap securities may be subject to special risks associated with narrower
product lines and limited financial resources compared with their large-cap counterparts. When interest rates rise, the value of
debt securities tends to fall. When interest rates decline, interest that a fund is able to earn on its investments in debt
securities may also decline, but the value of those securities may increase. Changes in market conditions and government policies
may lead to periods of heightened volatility in the debt securities market and reduced liquidity for certain fund investments.
Interest-rate changes and their impact on the funds and their NAVs can be sudden and unpredictable.
The use of leverage results in certain risks, including, among others, the likelihood of greater volatility of the NAV and the
market price of common shares. Derivatives involve additional risks, including interest-rate risk, credit risk, the risk of
improper valuation, and the risk of noncorrelation to the relevant instruments they are designed to hedge or to closely track.
There are numerous risks associated with transactions in options on securities. Illiquid securities may be subject to wide
fluctuations in market value and may be difficult to sell. As a writer of an index call option, the fund forgoes the opportunity to
profit from increases in the values of securities held by the fund. However, the fund has retained the risk of loss (net of
premiums received) should the price of the fund’s portfolio securities decline. Similar risks are involved with writing call
options or secured put options on individual securities and/or indexes held in the fund’s portfolio. This combination of
potentially limited appreciation and potentially unlimited depreciation over time may lead to a decline in the net asset value of
the fund. The fund’s dividend capture strategy may lead to a similar result. Dividend capture strategies involve the fund
purchasing a stock before an ex-dividend date so it becomes entitled to the dividend and then typically selling the stock on or
after the stock’s ex-dividend date. Any decline in the value of the stock reflecting the dividend payment may over time lead to a
decline in the net asset value of the fund. Dividend capture also increases the portfolio turnover rate and related transaction
costs of the fund. Illiquid securities may be subject to wide fluctuations in market value. The fund may be subject to significant
delays in disposing of illiquid securities. Accordingly, the fund may be forced to sell these securities at less than fair market
value or may not be able to sell them when the advisor or subadvisor believes that it is desirable to do so.
Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells
Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and
administrative services for Wells Fargo Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services
for the funds. This material is prepared by Wells Fargo Funds Distributor, LLC, Member FINRA, an affiliate of Wells Fargo
& Company. Neither Wells Fargo Funds Management nor Wells Fargo Funds Distributor has fund customer accounts/assets, and
neither provides investment advice/recommendations or acts as an investment advice fiduciary to any investor.
Some of the information contained herein may include forward-looking statements about the expected investment activities of
the funds. These statements provide no assurance as to the funds’ actual investment activities or results. The reader must make
his/her own assessment of the information contained herein and consider such other factors as he/she may deem relevant to his/her
individual circumstances.
305581 08-17
NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
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1-800-730-6001
or
Financial advisor inquiries
1-888-877-9275
or
Media contact:
Laura Fay, 617-210-3867
lfay@wellsfargo.com
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