Three Closed-End Funds Advised by Wells Fargo Funds Management Extend Share Repurchase Programs
November 23 2016 - 9:05AM
Business Wire
Wells Fargo Funds Management, LLC, a wholly owned subsidiary of
Wells Fargo & Company and the advisor to the closed-end funds
listed below, announced today that these funds will extend their
open-market share repurchase programs:
- Wells Fargo Income Opportunities Fund
(NYSE MKT: EAD)
- Wells Fargo Utilities and High Income
Fund (NYSE MKT: ERH)
- Wells Fargo Global Dividend Opportunity
Fund (NYSE: EOD)
The funds’ Boards of Trustees have authorized the repurchase of
an aggregate of up to 10% of each fund’s outstanding shares in
open-market transactions during the period beginning December 17,
2016, ending December 31, 2017. The funds’ Boards of Trustees have
again delegated to Wells Fargo Funds Management, LLC, discretion to
determine the amount and timing of repurchases of shares of each
fund in accordance with the best interests of the fund, and subject
to applicable legal limitations. The funds’ Boards of Trustees will
continue to receive periodic reports on repurchase activity as part
of their ongoing oversight over the programs, which includes
deciding whether to renew or discontinue the programs at the end of
their terms.
In light of the tender offer and managed distribution plan
announced today by Wells Fargo Multi-Sector Income Fund (NYSE MKT:
ERC) in a separate press release, ERC’s Board of Trustees has not
authorized the extension of its open-market share repurchase
program beyond the current term that ends on December 16, 2016.
The funds’ Boards of Trustees first authorized the repurchase
over a one-year period beginning December 17, 2015, of an aggregate
of up to 10% of each fund’s outstanding shares in open-market
transactions. Through October 31, 2016, the funds have repurchased
the following amounts of shares: EOD repurchased 3,247,402 shares
(or 6.61% of outstanding shares); ERC repurchased 891,934 shares
(or 2.12% of outstanding shares); and EAD repurchased 76,871 shares
(or 0.11% of outstanding shares). ERH did not repurchase any shares
through October 31, 2016.
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 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
fund investing primarily in a diversified portfolio of common
stocks of U.S. and non-U.S. companies. 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.
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 net
asset value (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.
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. The funds are distributed 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.
247702 11-16
NOT FDIC INSURED • NO BANK GUARANTEE • MAY
LOSE VALUE
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Wells Fargo & CompanyShareholder
inquiries1-800-730-6001orFinancial advisor
inquiries1-888-877-9275orMedia contact:John Roehm,
415-222-5338john.o.roehm@wellsfargo.com
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