New Wells Fargo fund may invest up to 100% in high-yield securities

By Toni Weeks

San Diego, Nov. 16 - Wells Fargo Funds Trust announced in an N-1A filing with the Securities and Exchange Commission its plans to offer a new fund, the Wells Fargo Advantage Strategic Income Fund.

The fund will seek total return consisting of a high level of current income and capital appreciation. Under normal circumstances, it will invest primarily in income-producing securities, including corporate, mortgage- and asset-backed securities, bank loans, convertible securities, preferred stocks, foreign corporate and sovereign debt and obligations of supranational agencies and the U.S. Government.

Under normal circumstances, the fund will invest

• At least 80% of its net assets in income-producing securities;

• Up to 100% of its total assets in debt securities of foreign issuers, including emerging markets issuers, and up to 50% of its total assets in non-dollar-denominated debt securities;

• Up to 100% of its total assets in debt securities rated below investment grade;

• Up to 25% of its total assets in preferred stocks; and

• Up to 10% of its total assets in debt securities that are in default at the time of purchase.

The portfolio management team includes Tony Norris, Michael J. Bray, David Germany, Niklas Nordenfelt, Margaret D. Patel, Thomas M. Price and Scott M. Smith.

The fund plans to launch on Feb. 1 and will offer class A, class C, administrator class and institutional class shares. The ticker symbols have not yet been set.

Shareholder fees consist of a 4.5% maximum sales charge for class A shares and a 1% maximum deferred sales charge for class C shares.

Management fees are 0.48%. Including other expenses and fees and taking into account a fee waiver agreement, the total annual fund operating expenses will be capped at 0.9% for class A, 1.65% for class C, 0.75% for administrator class and 0.6% for institutional class shares until Feb. 28, 2014.

San Francisco-based Wells Fargo Funds Management, LLC will serve as the fund's adviser.

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