Utility and Telecommunications Fund (EVUYX)

The Fund

The Wells Fargo Utility and Telecommunications Fund seeks total return consisting of current income and capital appreciation by investing principally in securities of utility and telecommunication companies across all market capitalizations.


  • Selects stocks based on the evaluation of factors such as dividend payouts and profits, market share, competitive or technological advantages, potential merger activity, and the projected volatility of the company. From a broader macro perspective, the team considersthe interest-rate environment, energy prices, and public policy issues. Through the assessment of both macroeconomic and company-specific factors, the fund seeks both yield and total return generation.
  • Chooses stocks based on a blended style of equity management. This allowsthe team to invest in companies that are undervalued, exhibiting either value characteristics—such as low price-to-earnings and low price-to-cash-flow multiples—or growth characteristics, including the potential for accelerated earnings growth.

Portfolio Management

Timothy O’Brien, CFA


Patrick Mullin, CFA

Managing Director

Tel: 781-875-3185

Definition of terms: Alpha measures the excess return of an investment vehicle, such as a mutual fund, relative to the return of its benchmark, given its level of risk (as measured by beta). Beta measures fund volatility relative to general market movements. It is a standardized measure of systematic risk in comparison to a specified index. The benchmark beta is 1.00 by definition. Sharpe ratio measures the potential reward offered by a mutual fund relative to its risk level. The ratio uses a fund’s standard deviation and its excess return to determine reward per unit of risk. The higher the Sharpe ratio, the better the fund’s historical risk-adjusted performance. Standard deviation of return measures the average deviations of a return series from its mean and is often used as a measure of risk. R-squared is a measurement of how similar a fund’s historical performance has been to that of the benchmark. The measure ranges from 0.00, which means that the fund’s performance bears no relationship to the performance of the index, to 1.00, which means that the fund’s performance was perfectly synchronized with the performance of the benchmark. Information ratio measures how much the fund out performed the benchmark per unit of additional risk taken. This value is determined by taking the annualized excess return over a benchmark and dividing it by the standard deviation of excess return. ‡ Calculated based on a three-year period. Relative measures are compared with the S&P 500 Utilities Sector. 1. Sector allocation is a breakdown of the Fund’s investments based on the S&P Global Industry Classification Standard (GICS), a breakdown of market sectors used by Standard & Poor’s. 2. The S&P 500 Utilities Index is a market-value-weighted index that measures the performance of all stocks within the utilities sector of the S&P 500 Index. 3.Performance for the fund or the class shown reflects a predecessor fund’s or class’ performance and may be adjusted to reflect the fund’s or class’ expenses as applicable. 4. The Lipper averages are compiled by Lipper, Inc., an independent mutual fund research and rating service. Each Lipper average represents a universe of funds that are similar in investment objective. You cannot invest directly in a Lippe raverage. 5. Placement within the Morningstar Equity Style Box is based on two variables: relative median market capitalization and relative price valuations (price/bookandprice/earnings) of the fund’s portfolio holdings. These numbers are drawn from the fund’sportfolio holdings figures most recently entered into Morningstar’s database and the corresponding market conditions. The Ownership Zone is represented by a shaded area surrounding the centroid. This zone encompasses 75% of a portfolio’s holdings on an asset-weighted basis and is designed to be a visual measure of how wide-ranging the portfoliois. 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, visitwfam.com. Read it carefully before investing. This material is forgeneral 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 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 Funds Management, LLC. Certain products managed by WFAM entities are distributed by Wells Fargo Funds Distributor, LLC (a broker-dealer and Member FINRA).