Wells Fargo plans February launch of High Yield Municipal Bond Fund

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 municipal fund, the Wells Fargo Advantage High Yield Municipal Bond Fund.

The fund will seek high current income exempt from federal income tax as well as capital appreciation by investing principally in municipal securities.

Under normal circumstances, the fund will invest

• At least 80% of its net assets in municipal securities that pay interest exempt from federal income tax, but not necessarily federal alternative minimum tax (AMT);

• Up to 20% of its total assets in securities that pay interest subject to federal AMT;

• At least 50% of its total assets in municipal securities rated high yield; and

• Up to 20% of its total assets in inverse floaters.

Under normal circumstances the fund's dollar-weighted averaged effective maturity will be between three and 20 years.

The portfolio management team includes Dennis Derby, Lyle J. Fitterer and Terry J. Goode.

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 0.45%. Including other expenses and fees and taking into account a fee waiver agreement, the total annual fund operating expenses will be capped at 0.85% for class A, 1.6% for class C, 0.75% for administrator class and 0.6% for institutional class shares until Oct. 31, 2014.

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

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