WELLS FARGO HIGH YIELD MUNICIPAL BOND FUND (USD) AHYM.US

The High Yield Municipal Bond Fund (Allspring Funds / formerly Wells Fargo) is an actively managed fixed income fund with a dual goal of high current income exempt from U.S. federal income tax and modest capital appreciation.

It does not passively track a single index but instead follows a blended benchmark and uses a multi-factor active approach. The fund invests predominantly in U.S. municipal securities whose interest is tax-exempt at the federal level (though not always exempt under the alternative minimum tax).

At least half of its assets are allocated to lower-rated municipal bonds (rated BBB or below) or comparable unrated issues, and up to 20% may be invested in inverse floaters (derivative instruments linked to municipal securities) to boost return.

The expected dollar-weighted average effective maturity of its fixed income portfolio under normal conditions ranges from 3 to 20 years. The fund benchmarks its performance against the High Yield Municipal Bond Blended Index, which since November 1, 2019 has been composed of 60% Bloomberg High Yield Municipal Bond Index and 40% Bloomberg Municipal Bond Index.

It is managed by Wells Fargo Funds Management LLC and sub-advised by Wells Capital Management (both now part of Allspring Global Investments), structured under a U.S. investment company with multiple share classes (mutual fund classes plus an ETF class), regulated under the U.S. Securities and Exchange Commission rules.