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Wells Fargo Advantage Inflation-Protected Bond Fund distribution and yield update

Effective August 16, 2010, the Wells Fargo Advantage Inflation-Protected Bond Fund’s daily distribution yield has been reduced to 0%. Based on current market conditions, we expect that the seven-day yield and 30-day yield will also adjust to 0% over their respective time frames. The seven-day current unsubsidized yield (which does not reflect the effect of any fee or expense waivers made by the Fund’s advisor) is also expected to adjust to a negative percent over its time frame.

Due to extraordinary low inflation rates, portfolio holdings have not generated enough net investment income to support a daily dividend declaration at this time.

How are distributions calculated?
Distributions for the Inflation-Protected Bond Fund are calculated by using a distribution rate, which is determined in part by the yield to maturity of the inflation-indexed securities within the portfolio plus an applied estimated inflation factor, less Fund expenses.

When will the Fund be able to resume daily dividend declarations?
The Fund’s portfolio manager anticipates that the Fund will be able to resume daily dividend declarations and monthly distributions of any net investment income when economic and market conditions are more favorable to the inflation-indexed securities held by the Fund.

Share Class Ticker CUSIP
Class A IPBAX 94975J730
Class B IPBBX 94975J722
Class C IPBCX 94975J714
Administrator IPBIX 94975J698


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. The principal value of and interest payments on inflation-protected debt securities tend to fall with the rate of inflation. The use of derivatives may reduce returns and/or increase volatility. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). This Fund is exposed to mortgage- and asset-backed securities risk. Consult the Fund’s prospectus for additional information on these and other risks.