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Reallocation of Assets to the Strategic Small Cap Value Master Portfolio Within Multistyle Funds Pursuant to Master/Gateway Structure

SAN FRANCISCO – May 3, 2006 – The Strategic Small Cap Value master portfolio was developed to provide an opportunity to introduce additional investment styles into the small-cap value style portion of our multistyle funds.1 The Wells Fargo Advantage Funds® multistyle funds are gateway funds that employ a master/gatewaySM structure, whereby our gateway mutual funds invest in one or more master portfolios or other Wells Fargo Advantage Funds, instead of directly in securities, to achieve their investment objectives. Gateway funds that invest in the same master portfolio or fund can enhance their investment opportunities and reduce their expense ratios through sharing the costs and benefits of a larger pool of assets.

Wells Fargo Advantage Funds is employing a systematic process to efficiently implement the Strategic Small Cap Value diversification strategy, and, on April 19, 2006, Wells Fargo Advantage Funds completed Phase III of this effort and reallocated additional assets from the Small Company Value Portfolio to the Strategic Small Cap Value Portfolio. The resulting allocation to the Strategic Small Cap Value Portfolio is now approximately 70% of the small-cap value style allocation within the multistyle funds. The remaining 30% continues to be allocated to the Peregrine Small Company Value style. Below is a timeline of events for the Strategic Small Cap Value master portfolio:

Phase I: January 31, 2006:
  • Launched new master portfolio.
  • Initial allocation to the new master portfolio was approximately 25% of the small-cap value style within the multistyle funds.

Phase II: February 15, 2006:
  • Reallocated assets to the Strategic Small Cap Value Portfolio.
  • New allocation was approximately 50% of the small-cap value style allocation within the multistyle funds.

The Strategic Small Cap Value Portfolio is subadvised by two teams at Wells Capital Management: the Disciplined Value team led by Robert Costomiris (which became part of Wells Capital Management in 2005 following the acquisition of Strong Capital Management) and the Benson Value team (which became part of Wells Capital Management through an acquisition of this firm in November 2003). In conjunction with the additional reallocation of assets on April 19, 2006, we introduced a new investment style within the portfolio, which is also managed by the Benson Value team-the Benson SMID Value style. The new style is similar to the Benson Small Cap Value style but may invest in companies with slightly larger capitalizations. However, the characteristics of the Benson SMID Value style align it closely with a typical small-cap value investment and will not impact the overall small cap-oriented profile of this portion of the multistyle funds.

Additional reallocations from the Small Company Value Portfolio to the Strategic Small Cap Value Portfolio may occur throughout 2006. In addition, one or more other small-cap value investment teams may be added to the Strategic Small Cap Value Portfolio at a later date. We will continue to provide updates when any of these events take place.

If you have any questions about the Strategic Small Cap Value master portfolio, please contact us at 1-800-222-8222.

1 The Wells Fargo Advantage Funds' multistyle funds include the Wells Fargo Advantage Aggressive Allocation Fund, the Wells Fargo Advantage Conservative Allocation Fund, the Wells Fargo Advantage Diversified Equity Fund, the Wells Fargo Advantage Diversified Small Cap Fund, the Wells Fargo Advantage Growth Balanced Fund, the Wells Fargo Advantage Growth Equity Fund, and the Wells Fargo Advantage Moderate Balanced Fund.

Stock funds should only be considered for long-term goals as values fluctuate in response to the activities of individual companies and general market and economic conditions. Bond fund values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. In general, when interest rates rise, bond fund values fall and investors may lose principal value. Some funds, including non-diversified funds and funds investing in foreign investments, high yield bonds, small- and mid-cap stocks and/or more volatile segments of the economy, entail additional risk and may not be appropriate for all investors. Consult a Fund's prospectus for additional information on these and other risks.