The Small Cap Value Fund was added to the WealthBuilder Portfolios in part because the Fund’s record spans multiple market environments, including the growth market of the late 1990s, the subsequent recession and recovery, and the more cyclical/commodity-driven market of recent years. The Fund benefits from an experienced portfolio manager with a long tenure, Charles Rinaldi, who has 28 years of investment experience. Prior to joining Wells Capital Management in 2005, Mr. Rinaldi was a portfolio manager with Strong Capital Management from 1997.
The Wells Fargo Advantage WealthBuilder Portfolios use the collective expertise of fund managers from these mutual fund families:
Increase in International Equity Exposure
The Wells Fargo Advantage WealthBuilder Portfolios have increased the target allocation of international equities by 10% in five of the six WealthBuilder Portfolios. This change is being made to better represent the allocations of the global equity markets. Please see the following pie charts or details on the previous and the current target allocations of the equity component of each of the WealthBuilder Portfolios. Overall tock/bond/alternative allocations are not affected by this change, nor is the allocation of the Wells Fargo Advantage WealthBuilder Tactical Equity PortfolioSM.
An example of how this change affects the actual allocations of the four funds that utilize the Tactical Asset Allocation model can be seen by looking at the Wells Fargo Advantage WealthBuilder Conservative Allocation PortfolioSM. Currently, 19% of assets are allocated to equities. Of this, 20% is allocated to international equity, or 3.8% of the overall Portfolio. After the change, 30% of the 19% will be allocated to international equity, or 5.7% of the overall Portfolio.
The affected WealthBuilder Portfolios are:
About the Wells Fargo Advantage WealthBuilder Portfolios
The Wells Fargo Advantage WealthBuilder Portfolios were first introduced in 1997 and are part of our long history of pioneering asset allocation strategies. The WealthBuilder Portfolios in the series use a fund-of-funds approach composed of both proprietary and nonproprietary mutual funds and offer investors a range of portfolios to match their risk profile. The portfolio managers apply the disciplines of Tactical Asset Allocation and Tactical Equity Allocation modeling to help manage risk and to capitalize on rotating market cycles.
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. The use of derivatives may reduce returns and/or increase volatility. Investment strategies that emphasize particular market segments or fewer securities tend to increase the total risk of an investment (relative to the broader market). The WealthBuilder Portfolios are exposed to one or more of the following risks: alternative investment risk, foreign investment risk, high-yield securities risk, mortgage- and asset backed securities risk, and small company investment risk. Consult the Fundís prospectus for additional information on these and other risks.
Asset allocation and diversification do not assure or guarantee better performance and cannot eliminate the risk of investment losses.