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Long-Term Visions for Absolute Return

Keeping the faith in value investing

Ben Inker, portfolio manager for the Wells Fargo Absolute Return Fund, discusses the advantages of long-term, valuation-based investing.

Value investors believe that:

  • Small daily performance gains compound over time.
  • Valuation is the factor that matters most in the long run.
  • Volatile markets create investment opportunities.

Find out why GMO is keeping the faith and how this value approach may benefit clients who keep a similar long-term perspective.

For more information about how to make the most of this opportunity, call your dedicated sales team at 1-888-877-9275.

Absolute return funds are not intended to outperform stocks and bonds in strong markets, and there is no guarantee of positive returns or that the fund’s objectives will be achieved. Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. 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 the fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the fund and its share price can be sudden and unpredictable. Borrowing money to purchase securities or cover short positions magnifies losses and incurs expenses. Short selling is generally considered speculative, has the potential for unlimited loss, and may involve leverage. Alternative investments, such as commodities and merger arbitrage strategies, are speculative and entail a high degree of risk. Foreign investments are especially volatile and can rise or fall dramatically due to differences in the political and economic conditions of the host country. The fund will indirectly be exposed to all of the risks of an investment in the underlying funds and will indirectly bear expenses of the underlying funds. The use of derivatives may reduce returns and/or increase volatility. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). This fund is exposed to asset-backed securities risk, nondiversification risk, geographic risk, and smaller-company securities risk. Consult the fund’s prospectus for additional information on these and other risks.

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