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Money Market Fund Reform: An Overview

Why are money market mutual funds changing?

Due to the financial crisis of 2008, the Securities and Exchange Commission (SEC) recommended amendments to regulations for certain money market funds. Those changes take effect beginning in October 2016 as part of the SEC money market reform initiative.

What changes will be taking place?

Until October 2016, money market funds had an objective of holding a stable net asset value (NAV) of $1.00 per share. As of mid-October 2016, only certain money market funds will be permitted to maintain a stable $1.00 NAV, and other money market funds will transact at their variable marketbased NAV, rounded to four decimal places.

Which Wells Fargo Funds will have a variable NAV?

On or around October 5, 2016, all share classes of the following funds will use a variable NAV:

  • Cash Investment Money Market Fund
  • Heritage Money Market Fund
  • Municipal Cash Management Money Market Fund

What if I own one of these funds?

You may continue to invest in these funds; however, please note that they will not strive to maintain a $1.00 NAV per share. This means when you buy and sell shares, the NAV could be more or less than $1.00, and you may incur a gain or loss when you sell shares.

Which Wells Fargo Funds will strive to hold a stable NAV?

If you prefer to invest in a money market fund that strives to hold a stable NAV, the following funds are available:

  • 100% Treasury Money Market Fund
  • Government Money Market Fund
  • Treasury Plus Money Market Fund
  • National Tax-Free Money Market Fund
  • Municipal Money Market Fund
  • Money Market Fund

Where do I get more information about these changes?

For more details about money market reform, please read our document What Is Changing Under the New SEC Regulations, visit our Money Market Reform Center, or visit the SEC website.

Were shareholders notified of this change?

Yes, affected shareholders were notified of this change in June 2016 when a letter and money market reform overview were mailed.

We are here to help.

If you need assistance with your account or you have additional questions, please call us at 1-800-359-3379. We are available 24 hours a day, 7 days a week.

Variable NAV Money Market Funds
You could lose money by investing in the Fund. Because the share price of the Fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.

Retail Money Market Funds
You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.

Government Money Market Funds
You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.

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