sign in sign up
<<
Home , Bond fund, Government bond

As of August 31, 2021 Fact sheet wfam.com Duration Government Fund

Asset class: Taxable

Class CUSIP Ticker Competitive advantages Class A 94975J573 MSDAX ■ Empowered tactical trading: The team combines a proprietary risk management system with Class C 94975J557 MSDCX extensive bottom-up selection to add incremental levels of with each trade. Administrator 94975J540 MNSGX This process empowers the team to tactically trade for value among a universe of highly liquid, Institutional 949917595 WSGIX high-quality securities. ■ Bottom-up selection process: The team’s credit selection process of tactically trading in THE FUND the most liquid markets, coupled with a rigorous risk management system, enables it to add The Wells Fargo Short Duration modest levels of alpha in all cycles. Fund seeks total return by primarily investing in ■ Risk management: Risk controls are the foundation of every step of the team’s process. Risk issued by U.S. government agencies and management is integrated into valuations, analytics, and trading, with the resulting portfolio government-sponsored enterprises (GSEs) while composed of securities that are vetted through bottom-up credit research but modeled in a maintaining an average duration less than that of the manner that seeks to minimize excessive risk relative to the benchmark. 3-year Treasury. Portfolio composition (%) distribution (%) FUND STRATEGY 0–1 year 7 U.S. treasuries (36) 51 ■ 1–3 years Seeks to outperform the Bloomberg U.S. 1–3 Year MBS (31) 3–5 years 35 Government Bond Index by investing the majority CMO (23) 5–10 years 7 of its assets in high-quality securities issued or ABS (10) 0 5 10 15 20 25 30 35 40 45 50 55 guaranteed by U.S. government agencies or government-sponsored enterprises ■ Maintains a duration neutral to that of the benchmark, with a predominant emphasis on bottom-up security selection among a universe of Portfolio composition and maturity distribution is subject to change and may have changed since the date specified. Percent total may high-quality, liquid bonds not add to 100% due to rounding. ■ Uses proprietary risk management systems as the Growth of $10,000 and annual returns (Class A shares 8-31-11 through 8-31-21) foundation for a highly disciplined decision-making Does not include sales charges and assumes reinvestment of and capital gains. If sales charges were included, returns would be lower. process $12,500 $11,088 TOP HOLDINGS (%) 10,000 U.S. Treasuries, 0.13, 10-31-2022 11.57 7,500 U.S. Treasuries, 0.13, 12-31-2022 4.45 U.S. Treasuries, 2.13, 5-15-2022 3.97 5,000 U.S. Treasuries, 0.13, 9-30-2022 3.84 2,500 FED HM LN PC Pool ZT1963 FR 11/30 3.41 Fixed 3.5, 3.50, 11-1-2030 0 U.S. Treasuries, 0.13, 8-31-2023 3.15 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’19 ’20 ’21 GNMA, 2.00, 8-1-2036 2.74 Fund (%) 1.77 -0.26 0.60 0.19 0.85 0.40 0.60 3.31 3.36 FHLMC, 2.82, 5-1-2049 2.58 ANNUALIZED Gross Net U.S. Treasuries, 0.13, 5-31-2022 2.39 Year to expense expense U.S. Treasuries, 0.13, 3-31-2023 2.13 TOTAL RETURNS (%) 3 Month date 1 year 3 year 5 year 10 year ratio ratio Portfolio holdings are subject to change and Class A Shares -0.31 -0.65 -0.45 2.28 1.34 1.04 0.81 0.78 may have changed since the date specified. Including Sales Charge – – -2.44 1.59 0.93 0.83 – – The holdings listed should not be considered Class C Shares -0.60 -1.15 -1.29 1.48 0.56 0.28 1.56 1.53 recommendations to purchase or sell a Including Sales Charge – – -2.29 1.48 0.56 0.28 – – particular security. Class A Shares Including Sales – – -2.19 1.68 0.90 0.91 0.81 0.78 FUND MANAGERS Charge as of 6-30-21 Class C Shares Including Sales Name Years of investment experience – – -2.04 1.56 0.53 0.35 1.56 1.53 Charge as of 6-30-21 Maulik Bhansali, CFA 20 Bloomberg U.S. 1-3 Year -0.01 0.08 0.15 2.66 1.69 1.18 Jarad Vasquez 20 Government Index1 CFA® and Chartered ® are Figures quoted represent past performance, which is no guarantee of future results, and do not reflect taxes trademarks owned by CFA Institute. that a shareholder may pay on an investment in a fund. Investment return, principal value, and yields of an investment will fluctuate so that an ’s shares, when redeemed, may be worth more or less than their original cost. Performance shown without sales charges would be lower if sales charges were reflected. Current performance may be lower or higher than the performance data quoted and assumes the reinvestment of dividends and capital gains. Current month-end performance is available at the funds’ website, wfam.com. For Class A, the maximum front-end sales charge is 2.00%. For Class C, the maximum contingent deferred sales charge is 1.00%. Performance including sales charge assumes the sales charge for the corresponding time period. The manager has contractually committed through 12-31-21, to waive fees and/or reimburse expenses to the extent necessary to cap the fund's total annual fund operating expenses after fee waivers at 0.78% for Class A and 1.53% for Class C. Brokerage commissions, stamp duty fees, , taxes, acquired fund fees and expenses (if any), and extraordinary expenses are excluded from the expense cap. Prior to or after the commitment expiration date, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Without this cap, the fund's returns would have been lower. The expense ratio paid by an investor is the net expense ratio (the total annual fund operating expenses after fee waivers) as stated in the prospectus. As of August 31, 2021 Fact sheet wfam.com Short Duration Government

Asset class: Taxable Fixed Income

FIXED-INCOME STYLE BOX 2 Bloomberg U.S. 1-3 Year DURATION Fund Government Ltd Mod Ext characteristics Fund Index 1

High Effective duration 1.75 years 1.97 years CREDIT QUALITY Portfolio turnover3 293.52% – Number of holdings 140 276 Medium Fund information Advisor: Wells Fargo Funds Management, LLC Low Sub-Advisor: Wells Capital Management, LLC Fund Inception Date: 12-18-92 Class A Class C Bond values fluctuate in response to the financial CUSIP/Ticker 94975J573/MSDAX 94975J557/MSDCX condition of individual issuers, general market and Class inception date 3-11-96 5-31-02 economic conditions, and changes in interest rates. Distribution frequency Monthly/Daily accrual Monthly/Daily accrual Changes in market conditions and government 4 policies may lead to periods of heightened in 30-day SEC -0.04% -0.77% 4 the and reduced liquidity for certain 30-day SEC unsubsidized yield -0.04% -0.78% bonds held by the fund. In general, when interest Fiscal year-end August 31 August 31 rates rise, bond values fall and may lose Net expense ratio 0.78% 1.53% principal value. changes and their impact Minimum initial/subsequent purchase $1,000/$100 $1,000/$100 on the fund and its price can be sudden and $9.71 $9.72 unpredictable. Securities issued by U.S. government agencies or government-sponsored entities may not YTD high-low NAV $9.84/$9.71 $9.85/$9.72 be guaranteed by the U.S. Treasury. Certain Class/fund assets ($M) $67.93/$724.66 $4.96/$724.66 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. The U.S. government guarantee applies to certain underlying securities and not to shares of the fund.

Alpha measures the excess return of an investment vehicle, such as a , relative to the return of its benchmark, given its level of risk (as measured by ). Portfolio Turnover, High portfolio turnover may result in increased expenses and higher short-term capital gains. 1. The Bloomberg U.S. 1-3 Year Government Bond Index is composed of all publicly issued, nonconvertible domestic debt of the U.S. government and its agencies. The index also includes corporate debt guaranteed by the U.S. government. Only notes and bonds with a minimum maturity of one year up to a maximum maturity of 2.9 years are included. You cannot invest directly in an index. 2. Placement within the Morningstar Fixed-Income Style Box™ is based on two variables: the vertical axis shows the credit quality of the bondsowned and the horizontal axis shows interest rate sensitivity as measured by a bond's effective duration. For credit quality, Morningstar combines the credit rating information provided by the fund companies with an average rate calculation to come up with a weighted-average credit quality. The weighted-average credit quality is currently a letter that roughly corresponds to the scale used by a leading NRSRO. Bond funds are assigned a style box placement of low, medium, or high based on their average credit quality. Funds with a low credit quality are those whose weighted-average credit quality is determined to be less than BBB-, medium are those less than AA- but greater or equal to BBB-, and high are those with a weighted average credit quality of AA- or higher. When classifying a bond portfolio, Morningstar first maps the NRSRO credit ratings of the underlying holdings to their respective default rates (as determined by Morningstar’s analysis of actual historical default rates). Morningstar then averages these default rates to determine the average default rate for the entire bond fund. Finally, Morningstar maps this average default rate to its corresponding credit rating along a convex curve. In these cases static breakpoints are utilized. These breakpoints are as follows: (i) Limited: 4.5 years or less; (ii) Moderate: more than 4.5 years but less than 7 years; and (iii) Extensive: more than 7 years. In addition, for non-US taxable and non-US domiciled fixed income funds static duration breakpoints are used: (i) Limited: less than or equal to 3.5 years; (ii)Moderate: greater than 3.5 and less than equal to 6 years; (iii) Extensive: greater than 6 years. © 2021 Morningstar. All rights reserved. The information contained herein is proprietary to Morningstar and/or its content providers; may not be copied or distributed; and is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. 3. The Fund's portfolio turnover rate has been calculated to include purchases and sales relating to mortgage dollar roll transactions. Had these transactions been excluded, the Fund's portfolio turnover rate during the 12-month period ended August 31, 2021 would have been 241.44%. 4. The 30-day SEC yield is calculated with a standardized formula mandated by the SEC. The formula is based on maximum offering price per share and includes the effect of any fee waivers. Without waivers, yields would be reduced. The 30-day unsubsidized SEC yield does not reflect waivers in effect. A fund's actual distribution rate will differ from the SEC yield and any income distributions from the fund may be higher or lower than the SEC yield. Carefully consider a fund’s investment objectives, risks, charges, and expenses before investing. For a current prospectus and, if available, a summary prospectus, containing this and other information, visit wfam.com. Read it carefully before investing. This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind—including a recommendation for any specific investment, strategy, or plan. Wells Fargo Asset Management (WFAM) is the trade name for certain investment advisory/management firms owned by Wells Fargo & Company. These firms include but are not limited to Wells Capital Management, LLC, and Wells Fargo Funds Management, LLC. Certain products managed by WFAM entities are distributed by Wells Fargo Funds Distributor, LLC (a broker-dealer and Member FINRA). PAR-0821-00784-FAFS060 09-21 INVESTMENT PRODUCTS: NOT FDIC INSURED • NO GUARANTEE • MAY LOSE VALUE © 2021 Wells Fargo & Company. All rights reserved.