Three closed end funds advised by Wells Fargo Funds Management – the Wells Fargo Income Opportunities Fund, the Wells Fargo Utilities and High Income Fund, and the Wells Fargo Global Dividend Opportunity Fund – are to extend their open-market share repurchase programmes.
The funds’ boards of trustees have authorised the repurchase of an aggregate of up to 10 per cent of each fund’s outstanding shares in open-market transactions during 17 December 2016 to 31 December 2017.
The funds’ boards of trustees have again delegated to Wells Fargo Funds Management discretion to determine the amount and timing of repurchases of shares of each fund in accordance with the best interests of the fund, and subject to applicable legal limitations.
The funds’ boards of trustees will continue to receive periodic reports on repurchase activity as part of their ongoing oversight over the programmes, which includes deciding whether to renew or discontinue the programmes at the end of their terms.
In light of the tender offer and managed distribution plan announced by Wells Fargo Multi-Sector Income Fund (NYSE MKT: ERC), ERC’s board of trustees has not authorised the extension of its open-market share repurchase programme beyond the current term that ends on 16 December 2016.
The funds’ boards of trustees first authorised the repurchase over a one-year period beginning 17 December 2015, of an aggregate of up to 10 per cent of each fund’s outstanding shares in open-market transactions.
Through 31 October 2016, the funds have repurchased the following amounts of shares: EOD repurchased 3,247,402 shares (or 6.61 per cent of outstanding shares); ERC repurchased 891,934 shares (or 2.12 per cent of outstanding shares); and EAD repurchased 76,871 shares (or 0.11 per cent of outstanding shares). ERH did not repurchase any shares through 31 October 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 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 US and non-US 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.
