The fund seeks capital appreciation in the long term by investing in small-size companies in the United States.

The fund is a feeder fund that invests substantially all of its assets in the Small Company Value Portfolio, a master portfolio with a substantially identical investment objective and substantially similar investment strategies.

Also, the fund may invest in additional master portfolios, in other Wells Fargo Funds, or directly in a portfolio of securities.

The sub-adviser’s investment process star

The fund seeks capital appreciation in the long term by investing in small-size companies in the United States.

The fund is a feeder fund that invests substantially all of its assets in the Small Company Value Portfolio, a master portfolio with a substantially identical investment objective and substantially similar investment strategies.

Also, the fund may invest in additional master portfolios, in other Wells Fargo Funds, or directly in a portfolio of securities.

The sub-adviser’s investment process starts with a list of companies in the benchmark index and the research team utilizes quantitative techniques and fundamental analysis to identify investment opportunities.

Next, the research team focuses on companies that are trading at discounts to their estimated intrinsic values.

The research process is driven by fundamental analysis of one stock at a time. In selecting securities for the portfolio, the research team seeks to identify three core alpha drivers, such as value, quality partner, and contrarian.

First, the team favors attractively-valued companies that are priced at a discount relative to peers and the company’s own historic valuation metrics.

Second, the team also seeks companies with management teams whose interests are aligned with those of shareholders and also, demonstrating favorable cash flow generating capabilities.

In addition, he team prefers companies that have the management, business model, products and resources to drive organic growth.

Lastly, the team looks for companies that are in a unique position for value creation, but are overlooked by investors.

Then the manager constructs a portfolio of stocks from a list of companies favored by the research team and allocates capital based on its conviction level.