Wells Fargo Bank to price CDs tied to SGI WISE US Vol Target 8% index

By Angela McDaniels

Tacoma, Wash., March 3 - Wells Fargo Bank, NA plans to price 0% certificates of deposit due March 31, 2016 linked to the SGI WISE US Vol Target 8% (USD-Excess Return) index, according to a term sheet.

The payout at maturity will be par plus 100% to 110% of any index gain, with the exact participation rate to be set at pricing. Investors will receive at least par.

The index follows a long/short, market-neutral investment strategy that tracks a deemed long position in the stocks that scored within the top 10% of the S&P 500 index according to the WISE Model and a deemed short position in the stocks that scored within the bottom 10% of the S&P 500 index. Based on the historical volatility of the S&P 500, the SGI WISE index adjusts its exposure to the S&P 500 within a range of 0% to 150% to try to achieve a target volatility of 8%.

The CDs are expected to price March 24 and settle March 31.

Advisors Asset Management, Inc. is the distributor.

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