Dear Investor:
I am writing to let you know of a recent decision by the Board of Trustees regarding the future of the Wells Family of Mutual Funds. The significant reduction in the size of the Mutual Funds due to market conditions has caused the operating expenses to substantially exceed the Mutual Funds' fee caps. In light of these circumstances, Wells Asset Management has decided to not continue managing the Mutual Funds. After spending considerable time researching, analyzing, and discussing whether to keep the Mutual Funds open, the Board reached the conclusion that closing the Mutual Funds is the most prudent and responsible action to take.
As a result, the Board voted unanimously to redeem all shareholder accounts and close the Wells Dow Jones U.S. REIT Index Fund and the Wells Dow Jones Global RESI Index Fund. In addition, we have decided to close and liquidate the Wells Money Market Account. Effective today the Mutual Funds will not accept any additional investments, and unless you voluntarily redeem your shares prior to December 18, 2009, your investment(s) will be liquidated and the proceeds will be mailed to you or your custodian. Please carefully read the information provided below, as it will explain the next steps regarding your investment.
As a courtesy to our shareholders, we will waive deferred sales charges for Class B and Class C shares going forward; consequently, there will be no Mutual Fund charges when you redeem these shares. In addition, if you paid a front-end sales load on Class A shares of a Wells Mutual Fund purchased after January 1, 2009, and you still own those shares as of October 23, 2009, that sales load will be reimbursed to you by Wells Investment Securities through a special purchase of additional Mutual Fund shares on your behalf in the amount of the original sales load. These shares will be deposited into your account prior to the mandatory redemption on December 18, 2009.
We appreciate your understanding during this time of transition. It has been our privilege to serve you, and we thank you for your participation in the Wells Family of Mutual Funds.
Sincerely,
Leo F. Wells III
Chairman of the Board of Trustees
The Wells Family of Mutual Funds
Timeline and what to expect
- Effective immediately: The Mutual Funds will stop selling new shares or accepting any new investments. If you have been investing in the Mutual Funds via the Automatic Investment Plan, this will no longer be an option. The Mutual Funds will continue to follow their Dow Jones benchmarks until on or about November 24, 2009.
- November 24 (approximately): The Mutual Funds will convert to cash-equivalents by selling all portfolio holdings.
- December 18: The Mutual Funds will implement mandatory share redemptions and mail a check for your sale proceeds. You may voluntarily redeem your shares at any time prior to the December 18 mandatory redemption date.
To redeem your shares or to ask questions
- Contact your financial representative for assistance.
- Contact our Mutual Fund Shareholder Services Team at 800-282-1581.
- Visit WellsREF.com, where you will find answers to commonly asked questions.
Important information regarding IRAs
If you hold your mutual fund investments in an IRA, you need to be mindful of the potential tax consequences that might develop as a result of the distribution of sale proceeds. If you do not voluntarily redeem or transfer your sale proceeds to another IRA custodian before December 18, 2009, your shares will be automatically redeemed and the proceeds will be mailed to you. This distribution will be considered an IRA withdrawal by the IRS, and penalties and taxes may apply. You are strongly encouraged to consult your financial representative or tax adviser to discuss your options.
Wells Family of Mutual Funds Supplement
