Wells Fargo's Absolute Return Fund invests in GMO-managed master fund

By Toni Weeks

San Diego, March 1 - Wells Fargo Funds Management, LLC announced the launch of a new fund that will invest substantially all of its assets in a master fund managed by GMO LLC.

According to a press release, the Wells Fargo Advantage Absolute Return Fund is the second Wells Fargo Advantage Fund to offer access to a GMO-managed strategy.

"We believe this fund, which is sufficiently nimble to take advantage of any and all global market opportunities, provides investors an appealing alternative to traditional-style, box-focused mutual funds," Wells Fargo Advantage Funds president Karla Rabusch said in the release. "Our new fund has the added benefit of supplying our investor clients with a second, distinct investment vehicle from which they can tap into a GMO-managed strategy."

The goal of the fund is to prevent loss of capital and to generate a positive total return over inflation during a market cycle, regardless of market conditions. The fund's approach is founded on the premise that asset class valuations and returns revert to mean levels over time.

The fund's flexibility will allow it to invest in a wide range of nontraditional strategies, including Treasury Inflation-Protected Securities, emerging debt, currencies, options, spread trades, natural resources, commodities, real estate and long/short strategies. The fund is not constrained by asset class weights or specific exposure to any market, sector, country or capitalization.

The fund's investment adviser is San Francisco-based Wells Fargo Funds Management, LLC.

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