Wells Fargo Closed-End Funds Declare Monthly & Quarterly Dividends; Wells Fargo Multi-Sector Income Fund Reduces Dividend; Ch...
26 May 2016 - 9:15AM
Business Wire
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 dividend declaration. The dividend for the Wells Fargo
Multi-Sector Income Fund is reduced from its prior dividend, as
shown below.
In addition, the Wells Fargo Closed-End Fund Board of Trustees
approved changes to the investment strategy guidelines for the
Wells Fargo Income Opportunities Fund, the Wells Fargo Multi-Sector
Income Fund, and the Wells Fargo Utilities and High Income
Fund.
Ticker Fund name
Dividendper share
Frequency
Change fromprior
dividend
EAD Wells Fargo Income Opportunities Fund $0.0680 Monthly – ERC
Wells Fargo Multi-Sector Income Fund $0.0923 Monthly -$0.0044 ERH
Wells Fargo Utilities and High Income Fund $0.0750 Monthly – EOD
Wells Fargo Global Dividend Opportunity Fund $0.1350 Quarterly –
The following dates apply to today's dividend declaration for
each fund:
Declaration date May 25, 2016 Ex-dividend date
June 13, 2016 Record date June 15, 2016 Payable date July 1, 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 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 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 $0.0967 to $0.0923 per
share.
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.
Effective immediately, the investment strategy guidelines for
the Wells Fargo Income Opportunities Fund and the high-yield
sleeves of the Wells Fargo Multi-Sector Income Fund and the Wells
Fargo Utilities and High Income Fund will be changed to reflect
that the respective portfolio or sleeve can hold more than 20% in
securities rated CCC or lower. However, additional securities rated
CCC or lower cannot be added to the portfolio if, at the time of
purchase, more than 20% of the fund’s (or sleeve’s) assets are
rated CCC or lower. Wells Fargo Funds Management, LLC, believes
that these changes will allow the funds to take advantage of
opportunities in high-yield securities without being required to
liquidate holdings due to events unrelated to active security
purchases. Downgrades to underlying securities or valuation changes
are examples of these types of events.
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.
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 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 being prepared by Wells Fargo
Funds Distributor, LLC, Member FINRA, an affiliate of Wells
Fargo & Company.
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.
243541 05-16
NOT FDIC INSURED • NO BANK GUARANTEE • MAY
LOSE VALUE
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Wells Fargo & CompanyShareholder
inquiries1-800-730-6001Financial advisor
inquiries1-888-877-9275orMedia contact:John Roehm,
415-222-5338john.o.roehm@wellsfargo.com
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