Wells Fargo Funds Institutional Client Resource Guide. Liquidity Management Solutions

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1 Wells Fargo s Institutional Client Resource Guide Liquidity Management Solutions

2 Welcome Thank you for choosing Wells Fargo s to meet your liquidity needs. We invite you to make full use of our vast resources and highest service standards now available to you. This guide is your source for the information you need to conduct every aspect associated with your cash management business. Keeping this reference guide on hand can help you better use our extensive services and resources. When questions arise, please call your dedicated Institutional Client Service team at What you ll find here How to manage your account Phone and online access Mailing and wire instructions Guidelines for a smooth transaction Dividend accrual policies Operations information An overview of statements and reports Statement and report descriptions Sample monthly account statement Sign up to receive daily/weekly rate reports Sample rate report How to research information on our website Institutional Cash Management home page Products tab Performance tab Account Services tab overview Literature tab Market Commentary and Insights tab About Wells Fargo s Portfolio management overview Investment strategies Our fund lineup and primary investments Useful information and frequently used terms About Wells Fargo Ultra-Short Fixed-Income s STOP By now you should have received your account number by phone or . Please contact us if this information has not yet reached you. 2

3 How to manage your account You can access your account, execute transactions, and research the information you need about your money market fund investments in a number of ways. Phone access Institutional Client Service: Monday through Friday, 8 a.m. to 6:30 p.m. Eastern Time institutionalservice@wellsfargo.com Our Institutional Client Service team of registered representatives is always your first line for information and transactions, including: Purchases, redemptions, or exchanges Website assistance Account inquiries/maintenance yields and factors Authorized individual updates Literature requests uutip: To help us meet your needs more effectively, please be prepared to provide your account number when calling. Online access Access your account for information and transactions. Log in to whichever service you are enrolled in. Online account access (OAA) wellsfargofunds.com Click Institutional Cash Management Sign in using your personal login information Convenient online access to your mutual fund accounts is available through our Wells Fargo s website, which is updated daily. With OAA, you can: View account balances View transaction history Execute purchases and redemptions View month-to-date accrued dividends Move money between your Wells Fargo s accounts and linked bank accounts OR Commercial Electronic Office (CEO ) wellsfargo.com Click the Commercial tab at the top of the screen Sign in to the CEO portal on the left of the screen using your personal login information Corporate clients of Wells Fargo can access their mutual fund accounts through Wells Fargo s CEO business portal. You can: View account balances View transaction history Execute purchases and redemptions Create, customize, export, and view comprehensive reports Access all your Wells Fargo business through a single login Not signed up for online access? Talk to a client service consultant to get set up. 3

4 How to manage your account Mailing and wire instructions Overnight address: Wells Fargo s Attn: c/o DST Asset Manager Solutions, Inc. 30 Dan Road Canton, MA Regular mailing address: Wells Fargo s PO Box 8266 Boston, MA Wire instructions bank: State Street Bank and Trust Company ABA routing number: Reference: Wells Fargo s Our account number: Your instructions: For further credit to: (your name as it appears on your account, fund number, account number) Guidelines for a smooth transaction To help you manage your account, the following guidelines outline our key trading policies and procedures. Use these tips to buy, sell, and exchange fund shares. Trade requests For the benefit of the funds, we request that trades be placed as early in the day as possible. Holiday trading hours We generally follow the holiday trading schedule recommended by the Securities Industry and Financial Markets Association. This schedule is subject to change, so you are advised to contact the Institutional Client Service team at prior to each holiday to confirm the cutoff times or to request a holiday reminder to be sent prior to each holiday. Advance notice of large transactions To allow us to manage the funds more effectively, we strongly urge you to notify us at least one day in advance for expected transactions of $50 million or more for prime and government money market funds. For municipal money market funds, we strongly urge you to notify us at least one day in advance for transactions of $10 million or more. Dividend accrual policies General policies: The funds accrue dividends daily. Dividends are paid out on the last business day of the month. Reinvested dividends begin accruing on the first business day of the month. For same-day transactions, dividends accrue on the date of purchase and do not accrue on the date of redemption. Weekends/holidays: If the month-end or year-end falls on a weekend, a Friday, or a holiday, dividends accrue through the calendar month-end. 4

5 How to manage your account Operations information The table below provides important operational information. Be sure to keep this information on hand when making transactions. Wells Fargo S&P / Moody s/ Fitch* number Ticker CUSIP Share class Gross expense ratio (%) Net expense ratio (%) Minimum initial investment Trading deadline (ET)** Government strategies Government Treasury Plus 100% Treasury AAAm/ Aaa-mf/ AAAm/ Aaa-mf/ AAAm/ Aaa-mf/ 3802 WFFXX Select $50 million 1751 GVIXX 94975P405 Institutional $10 million 947 WGAXX 94975J466 Administrator $1 million 743 NWGXX 94975H254 Service $100, PISXX 94975H296 Institutional $10 million 3720 WTPXX Administrator $1 million 454 PRVXX 94975H312 Service $100, WOTXX 94988A759 Institutional $10 million 3722 WTRXX Administrator $1 million 8 NWTXX 94975H270 Service $100,000 5 p.m. 5 p.m. 1 p.m. Prime strategies Cash Investment Heritage NA AAAm/ Aaa-mf/ 3800 WFQXX 94984B819 Select $50 million 451 WFIXX 94975H437 Institutional $10 million 946 WFAXX 94975J474 Administrator $1 million 250 NWIXX 94975H445 Service $100, WFJXX 94984B793 Select $50 million 3106 SHIXX Institutional $10 million 3229 SHMXX Administrator $1 million 3655 WHTXX Service $100,000 3 p.m. Municipal strategies Municipal Cash Management / /AAAmmf 496 EMMXX Institutional $10 million 3725 WUCXX 94985D145 Administrator $1 million 3657 EISXX Service $100, p.m. * The ratings indicated are from Standard & Poor s, Moody s Investors Service, and/or Fitch Ratings Ltd. (together, rating agencies). Standard & Poor s is a trademark of McGraw-Hill, Inc., and has been licensed. The funds are not sponsored, endorsed, sold, or promoted by these rating agencies, and these rating agencies make no representation regarding the advisability of investing in the funds. The credit rating is a forward-looking opinion about a fund s potential capacity to maintain stable principal or stable net asset value. The ratings are opinions as of the date they are expressed and not statements of fact or recommendations to purchase, hold, or sell any security. Standard & Poor s rates the creditworthiness of money market funds from AAAm (highest) to Dm (lowest). Moody s rates the creditworthiness of money market funds from Aaa-mf (highest) to C-mf (lowest). Fitch Ratings Ltd. rates the creditworthiness of money market funds from AAAmmf (highest) to Bmmf (lowest). Ratings are as of November For purchases, shares begin earning dividends after the transfer agent receives your purchase order in proper form and the purchase amount is received by the fund s custodian. For redemptions, requests that are received in proper form will be sent out by the next business day after receipt and will earn a dividend until the day such proceeds are sent. ** Please consult with your trading desk for transaction cutoff times because they may be earlier than the times noted above, depending on platform and trading method. Note: Should you need dividend calculation and wire cutoff times, contact your dedicated Institutional Client Service team at

6 An overview of statements and reports Statement and report descriptions You are eligible to receive the following statements and reports. What you will receive Monthly account statements (See sample on page 7.) Description These statements show all of your transaction activity over the past month, including: Changes in account value based on deposits, withdrawals, and total income Income summaries for the one-month and year-to-date periods covered by the report Itemized account activity uunote: Your December monthly statement is replaced with a yearend account statement that summarizes income and transaction activity for the entire year. Daily/weekly rate reports (See samples on pages 8 9.) Shareholder reports Prospectus updates You can elect to receive these daily or weekly rate reports through By fund to help you compare investment yields By share class see fund and yield information by share class to facilitate decision-making within your particular asset range uunote: If you haven t done so already, sign up to receive your preferred reports by calling your dedicated Institutional Client Service team at You may also sign up online by going to wellsfargofunds.com: >Click Institutional Cash Management >Click Sign up for rate reports Annual and semi-annual fund reports are automatically sent to you. uutip: You can download annual and semi-annual reports anytime at wellsfargofunds.com. A new prospectus is automatically sent to you annually. You ll also receive any updates to the prospectus if changes arise. uutip: You can download prospectuses anytime at wellsfargofunds.com. 6

7 An overview of statements and reports Sample monthly account statement This statement shows all activity in your account for the one-month period covered. Monthly period covered by the statement Name of fund Account value as of the end of the period Itemized monthly account activity for the period Account income summary 7

8 An overview of statements and reports Sign up to receive daily/weekly rate reports You may sign up to receive rate reports via by going to wellsfargofunds.com. Click Institutional Cash Management > Click Sign up for rate reports. You will be taken to the Account Services tab, where you can sign up for rate reports. Select rate report Choose frequency: daily or weekly 8

9 An overview of statements and reports Sample rate report This report provides a quick overview of fund information and yields as of the date shown. It s delivered to you through daily or weekly, as requested. Date covered by this report Daily factor name Share class Yields: 1-day (%) 7-day current (%) 7-day current pre-waiver (%) 7-day effective (%) 30-day current (%) 30-day effective (%) 9

10 How to research information on our website Institutional Cash Management website Go to wellsfargofunds.com and click Institutional Cash Management. The following pages provide a tab-by-tab overview of how to use our website. Home page Quick access to fund information. Quick access to client accounts Quick link to daily rate information Portfolio Manager Commentary Sign up to receive rate reports Quick link to holiday trading hours Quick links to fund fact sheets and performance information 10

11 How to research information on our website Products tab Research information about our funds. Link to Investment profile Quick access to fund fact sheets and additional fund information Link to LMS Lineup 11

12 How to research information on our website Performance tab Quick access to daily yield information. Click the drop down box to toggle among the various share classes All funds are listed Daily factor Yields for various periods 12

13 How to research information on our website Account Services tab Links to OAA and CEO, applications, and forms. Open an account Access account applications and forms Link to holiday trading information Access mailing address and wire instructions 13

14 How to research information on our website overview Access to fund details, including holdings, daily metrics, historical yields, and daily NAV. Link to fund holdings page Daily NAV and current yields Download additional fund literature Link to historical yields and daily dividend factors Link to daily metrics to monitor daily and weekly liquid assets as well as the marketbased NAV 14

15 How to research information on our website Literature tab Access to fund literature and regulatory documents. Download fact sheets by share class Download to view types of holdings and current assets Quick access to fact sheets and regulatory documents 15

16 How to research information on our website Market Commentary and Insights tab Access the latest industry news and Portfolio Manager Commentary. Access the latest Portfolio Manager Commentary and archives Access the latest industry updates 16

17 About Wells Fargo s Dedicated professionals with a well-defined process The Wells Fargo s have a large portfolio management team consisting of portfolio managers, traders, and credit analysts. The investment team continues to employ highly disciplined and rigorous credit analysis in pursuit of capital preservation. This well-defined investment process has evolved for more than 20 years since the inception of the funds. Key elements of the investment process are highlighted below. Portfolio management overview Conservative investment approach Our money market funds are actively managed with clear priority given to the preservation of capital and liquidity, while the pursuit of excess yield is secondary. The funds are monitored to ensure strict adherence to the quality, diversification, and maturity requirements of U.S. Securities and Exchange Commission Rule 2a-7. Consistent focus on liquidity To provide better liquidity management, the investments in the funds generally reflect a strategy that maintains lower weighted average maturities and the highest-quality securities. Comprehensive risk management The investment team uses a number of proprietary measures to monitor credit risk of individual investments and to manage overall credit exposure. Further due diligence comes from Wells Capital Management's independent credit research team, which contributes greater depth to credit quality. This process allows the team to see a more detailed gradation in credit risk among issuers, providing an opportunity to include more diverse risks in a fund s portfolio and the potential to add incremental returns. Portfolio Manager Commentary Be sure to obtain the most recent edition of Overview, Strategy, and Outlook, the informative monthly Portfolio Manager Commentary, by visiting our website, wellsfargofunds.com, and clicking Institutional Cash Management. You may also contact the Institutional Sales desk at to sign up and receive the commentary directly in your inbox. 17

18 About Wells Fargo s Investment strategies The Wells Fargo s suite of money market funds includes a comprehensive array of government, prime, and municipal strategies. While each fund maintains its own investment strategy, the table below provides a general overview of the investment approach of each of the three investment styles. Strategy Government¹ Investment approach An actively managed portfolio of short-term money market instruments that may include U.S. Treasury obligations, U.S. government obligations, and/or repurchase agreements collateralized by such securities Prime² An actively managed portfolio of high-quality, short-term, U.S. dollar-denominated money market instruments that may include, but are not limited to, bank obligations such as time deposits and certificates of deposit; commercial paper; assetbacked securities; corporate and medium-term notes; adjustablerate securities; repurchase agreements; and governmentrelated debt Municipal² An actively managed portfolio of high-quality, short-term municipal obligations that pay interest exempt from regular federal income tax and are issued by or on behalf of the states, territories, and possessions of the U.S. or their political subdivisions and financing authorities 18

19 About Wells Fargo s Our fund lineup and primary investments Below is an overview of holdings for each of our institutional money market funds. Types of holdings U.S. Treasury securities (e.g., bills, notes, bonds) Repurchase agreements Government strategies 1 U.S. government agency debt (e.g., Fannie Mae, Freddie Mac, FDICguaranteed issues) Commercial paper Prime strategies 2 Bank obligations (e.g., CDs, bank notes, time deposits) Floating-rate and variable-rate notes/ bonds Asset-backed securities Short-term corporate bonds Municipal bonds Municipal commercial paper Government Fun Treasury Plus 100% Treasury Cash Investment Heritage Money Market x x x x x x x x x x x x x x x x x x x x x x x x x x Municipal strategies 2 Municipal Cash Management x x x For more detailed information, please visit the Institutional Cash Management site at wellsfargofunds.com to see a complete list of daily holdings. Click the Products tab to see a drop-down for each fund. Click on the composition tab within a fund for a individual holdings list. 1. For government money market funds: You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time. 2. For floating NAV money market funds: You could lose money by investing in the fund. Because the share price of the fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. The fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the fund s liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time. 19

20 About Wells Fargo s Useful information and frequently used terms Rule 2a-7 All Wells Fargo s are managed to meet the requirements of Rule 2a-7 under the Investment Company Act of Frequently used terms 1-day current: Reflects the net investment income declared on a given day for a daily dividenddeclaring fund. The 1-day current yield annualizes the result. 7-day current: Reflects the average of the 1-day current yields from the previous 7-day period. The 7-day current yield does not take into account the effect of compounding. 7-day current pre-waiver: Reflects the average of the 1-day current yields from the previous 7-day period. The 7-day current yield does not take into account the effect of compounding but includes the impact of expenses waived as if they had been charged. 7-day effective: Reflects the average of the 1-day current yields, compounded daily, from the previous 7-day period. 30-day current: Reflects the average of the 1-day current yields from the previous 30-day period. The 30-day current yield does not take into account the effect of compounding. 30-day effective: Reflects the average of the 1-day current yields from the previous 30-day period, compounded daily. Amortized cost value: Method that values securities at their acquisition cost as adjusted for amortization of premium or accretion of discount rather than their market value. Daily factor: A decimal that represents the dollar amount of dividends declared on a given day for a daily dividend-declaring fund. Daily liquid assets: Cash, direct obligations of the U.S. government, or securities that will mature or are subject to a demand feature exercisable and payable within one business day. Final legal maturity date: The date on which a security s principal amount must unconditionally be paid without respect to any interest-rate resets or demand features. Maturity date: The date used in calculating a fund s weighted average maturity as defined under Rule 2a-7. Generally, it is either the date on which a security s principal amount must unconditionally be paid or, in the case of certain instruments, their next interest-rate reset date. Principal amount: The par, or face, value of a security that is paid out at maturity. 20

21 About Wells Fargo s Rating agencies: The ratings indicated are from Standard & Poor s, Moody s Investors Service, and/or Fitch Ratings Ltd. (together, rating agencies). Standard & Poor s is a trademark of McGraw-Hill, Inc., and has been licensed. The funds are not sponsored, endorsed, sold, or promoted by these rating agencies, and these rating agencies make no representation regarding the advisability of investing in the funds. The credit rating is a forward-looking opinion about a fund s potential capacity to maintain stable principal or stable net asset value. The ratings are opinions as of the date they are expressed and not statements of fact or recommendations to purchase, hold, or sell any security. Standard & Poor s rates the creditworthiness of money market funds from AAAm (highest) to Dm (lowest). Moody s rates the creditworthiness of money market funds from Aaa-mf (highest) to C-mf (lowest). Fitch Ratings Ltd. rates the creditworthiness of money market funds from AAAmmf (highest) to Bmmf (lowest). Weekly liquid assets: Cash, direct obligations of the U.S. government, or government securities issued on authority granted by the U.S. Congress that are issued at a discount to the principal amount to be repaid at maturity and have remaining maturity of 60 days or less or will mature or are subject to a demand feature exercisable and payable within five business days. Weighted average life (WAL): An average of the final maturities of all securities held in the portfolio, weighted by their percentage of total investments. The maturity of a portfolio security is the period remaining until the date on which the principal amount is unconditionally required to be paid, or in the case of a security called for redemption, the date on which the redemption payment is unconditionally required to be made. The calculation of WAL allows for the maturities of certain securities with demand features to be shortened but, unlike the calculation of weighted average maturity, does not allow shortening of the maturities of certain securities with periodic interest-rate resets. WAL is a way to measure a fund s potential sensitivity to credit spread changes. Weighted average maturity (WAM): An average of the effective maturities of all securities held in the portfolio, weighted by each security s percentage of total investments. The maturity of a portfolio security is the period remaining until the date on which the principal amount is unconditionally required to be paid, or in the case of a security called for redemption, the date on which the redemption payment is unconditionally required to be made. WAM calculations allow for the maturities of certain securities with demand features or periodic interest-rate resets to be shortened. WAM is a way to measure a fund s sensitivity to potential interest-rate changes. 21

22 About Wells Fargo Ultra-Short Fixed-Income s Our investment strategies and fund lineup Wells Fargo ultra-short fixed income Wells Fargo s offers a roster of ultra-short fixed-income funds to meet the varying liquidity needs of investors. These funds may be suited for investors who are seeking current income consistent with capital preservation and additional yield opportunities for a portion of working capital beyond daily liquidity needs. Institutional fund information Ultra-short fixed-income fund lineup: Wells Fargo Ultra-Short Fixed-Income s Moody s* number Ticker CUSIP Share class Gross expense ratio (%) Net expense ratio (%) Minimum initial investment Adjustable Rate Government Aaa 3765 ESADX 94975P785 Administrator $1 million 4118 EKIZX 94985D632 Institutional $1 million USFI Conservative Income Ultra Short-Term Income 3174 WCIIX 94987W562 Institutional $1 million 3709 WUSDX Administrator $1 million 3104 SADIX Institutional $1 million Ultra Short-Term Municipal Income 3764 WUSMX 94975P793 Administrator $1 million 3107 SMAIX Institutional $1 million *As of December 31, 2017 For more information on these funds, please contact the Institutional Sales Desk at

23 Bond values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by a fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on a fund and its share price can be sudden and unpredictable. Loans are subject to risks similar to those associated with other below-investment-grade bond investments, such as credit risk (for example, risk of issuer default), below-investment-grade bond risk (for example, risk of greater volatility in value), and risk that the loan may become illiquid or difficult to price. The use of derivatives may reduce returns and/or increase volatility. Foreign investments are especially volatile and can rise or fall dramatically due to differences in the political and economic conditions of the host country. These risks are generally intensified in emerging markets. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The funds may be exposed to high-yield securities risk, mortgage- and asset-backed securities risk, and municipal securities risk. Securities issued by U.S. government agencies or government-sponsored entities may not be guaranteed by the U.S. Treasury. The U.S. government guarantee applies to certain underlying securities and not to shares of the fund. A portion of a fund s income may be subject to federal, state, and/or local income taxes or the Alternative Minimum Tax (AMT). Any capital gains distributions may be taxable. Consult a fund s prospectus for additional information on these and other risks. For retail money market funds: You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the fund s liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time. 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 wellsfargofunds.com. Read the prospectus carefully before investing. More information about Wells Fargo s is available free upon request. To obtain literature, please write, , or call: Wells Fargo s PO Box 8266 Boston, MA institutionalservice@wellsfargo.com Client Service team: Website: wellsfargofunds.com Wells Capital Management (WellsCap) is a registered investment advisor and a wholly owned subsidiary of Wells Fargo Bank, N.A. WellsCap provides investment management services for a variety of institutions. 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 Incorporated and Wells Fargo s Management, LLC. Certain products managed by WFAM entities are distributed by Wells Fargo s Distributor, LLC (a broker/dealer and Member FINRA). 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 s Management, LLC. All rights reserved. FN IHA