In 2009, Wells Capital Management and Evergreen Investments increased the depth of their Municipal Fixed Income teams, aligning resources efficiently and effectively by combining the investment talent from both organizations. Considering the depth of these resources and the continuity within the senior portfolio management team, including Lyle Fitterer, CFA, CPA, who serves as the managing director and head of the Tax-Exempt Fixed-Income team at Wells Capital Management, we do not anticipate any change or disruption of the investment process and philosophy utilized in the daily management of the Funds.
Lyle Fitterer and Robert Miller will continue to serve as portfolio manager for the Wells Fargo Advantage Intermediate Tax/AMT-Free Fund and the Wells Fargo Advantage Municipal Bond Fund. Mr. Fitterer will also continue as portfolio manager for the Evergreen Municipal Bond Fund and the Evergreen Short-Intermediate Municipal Bond Fund. Mr. Miller will also continue as portfolio manager for the Evergreen Intermediate Municipal Bond Fund, the Evergreen North Carolina Municipal Bond Fund, and the Evergreen Pennsylvania Municipal Bond Fund. Stephen Galiani will continue in his role as portfolio manager of the Evergreen California Municipal Bond Fund. Dennis Derby will continue to serve as portfolio manager of the Evergreen High Income Municipal Bond Fund. Finally, James Randazzo will continue in his role as portfolio manager for the Evergreen Short-Intermediate Municipal Bond Fund with Mr. Fitterer.
The following questions and answers provide details about the investment teams that support these Funds.
Can you tell me more about Lyle Fitterer?
Lyle Fitterer is head of the Tax-Exempt Fixed Income team at Wells Capital Management, where he manages portfolio teams focused on municipal fixed-income strategies. In addition to this role, Mr. Fitterer also served as head of the Wells Capital Management Customized Fixed Income team, which manages taxable longer duration strategies, from mid-2005 to early 2009. Mr. Fitterer joined the firm in 2005 from Strong Capital Management. At Strong, he was appointed director of Strong's Municipal Fixed Income team in 2000. Prior to that, he served in a variety of other roles with the firm, including managing director of Strong's Institutional Client Services team, where he was responsible for overseeing institutional and intermediary sales. For six years prior to that, Mr. Fitterer was a member of the Strong Taxable Fixed Income team, initially as an analyst and trader and then as a portfolio manager specializing in mortgage- and asset-backed securities. Mr. Fitterer began his investment career in 1989. He earned a bachelor's degree in accounting from the University of North Dakota. He is a Certified Public Accountant and has earned the right to use the CFA® designation. Mr. Fitterer is a member of CFA Institute.
Can you tell me more about Robert Miller?
Robert Miller is a senior portfolio manager for the Wells Capital Management Tax-Exempt Fixed Income team, where he manages both mutual funds and separate accounts. Prior to joining Wells Capital Management in 2008, Mr. Miller worked for American Century Investments, where he was part of a team that managed $3.5 billion in municipal bond assets. In addition to managing several funds for the firm, Mr. Miller also served as a member of its analytical team. Earlier, Mr. Miller spent eight years in New York as a municipal bond analyst with Moody's Investors Service. He also founded a small venture capital firm and served as a consultant with Black and Veatch and KPMG Peat Marwick where he specialized in conducting financial feasibility studies in support of large infrastructure products. He earned a bachelor's degree in business administration with an emphasis in finance from San Jose State University and a master's degree in business administration from the Leonard N. Stern School of Business at New York University.
Can you tell me more about Stephen Galiani?
Stephen Galiani is managing director and senior portfolio manager for the Wells Capital Management Tax-Exempt Fixed Income team, where he is involved in municipal strategy, portfolio management, credit research, and trade execution. Mr. Galiani manages California, Oregon, and Colorado tax-exempt funds and private accounts. Prior to joining the firm in 1997, he served as director of Fixed Income and senior municipal portfolio manager for Qualivest Capital Management. Mr. Galiani began his investment industry career in 1975. His extensive investment experience includes: Galiani Asset Management, president and portfolio manager; Keystone Custodian Funds, manager of the municipal bond group and senior municipal portfolio manager; and Eaton Vance, portfolio manager. Mr. Galiani earned a bachelor's degree from Manhattan College and a master's degree in business administration with an emphasis in finance from Boston University. He is a member of the California Society of Municipal Analysts and the Municipal Bond Club of San Francisco.
Can you tell me more about Dennis Derby?
Dennis Derby is a senior analyst for the Wells Capital Management Short Duration Credit Research team. He joined Wells Capital Management from Evergreen Investments, serving in a similar role since 1995. He earned a bachelor's degree from Emory University. Mr. Derby is a member of the National Federation of Municipal Analysts and the Southern Municipal Analysts Society.
Can you tell me more about James Randazzo?
James Randazzo joined Evergreen Investment Management Company in 2000, where he serves as an associate director and portfolio manager in Charlotte, North Carolina. Mr. Randazzo is also an employee of Wells Capital Management. In addition to his responsibilities as a portfolio manager of certain Evergreen municipal money market funds, Mr. Randazzo provides cash management and other portfolio assistance for various Evergreen municipal bond funds. Prior to his association with Evergreen Investments, he served as a Financial Analyst at KPMG, LLP in Stamford, Connecticut.
What are the resources of the municipal fixed-income teams at Wells Capital Management and Evergreen Investments?
The Wells Capital Management Tax-Exempt Fixed Income team, led by Mr. Fitterer and Mr. Galiani, consists of six portfolio managers, 14 municipal credit analysts, and a dedicated trader. The team seeks to add value through a discipline of rigorous credit analysis coupled with an agile ability to move quickly into the favorable spaces of the market. In addition to its rigorous credit-approval process, the team's relative-value process focuses on identifying mispricings in the market. These disciplined return-enhancement strategies are balanced with prudent risk management. In addition, the Wells Capital Management Fixed Income team works in collaboration with several investment teams across Wells Capital Management, including the Municipal Money Market team and the Customized Taxable Fixed Income team. These teams help to identify trends across the entire fixed-income marketplace, enabling the Tax-Exempt Fixed Income team to maximize relative value opportunities within their strategies.
Do these changes present a capacity issue for any of these managers?
No. Lyle Fitterer, Robert Miller, Stephen Galiani, Dennis Derby, and James Randazzo are highly experienced investment professionals, and we believe that they will be able to seamlessly extend their investment philosophy and process to these respective Funds while leveraging the expertise of their investment teams.
Will the departure of Mr. Kiselak result in any investment changes for the Funds?
We do not anticipate any changes to the teams' investment philosophy and process. The teams are built on a foundation of open and collaborative research, and we expect that principle to continue to drive their process going forward.
In a previous Product Alert, it was announced that these Funds would be affected by the anticipated reorganizations of the Wells Fargo Advantage Funds and Evergreen Funds family mergers, scheduled for July 2010. Will the portfolio manager changes affect those proposals?
The departure of Mr. Kiselak is not expected to affect the proposed fund mergers and shell reorganizations.
For fund mergers, shareholders are being asked to approve the merger of their target Fund into an acquiring Wells Fargo Advantage Fund. For fund reorganizations—or "shell"—proposals, shareholders are being asked to approve the reorganization of their target Fund into a newly created Wells Fargo Advantage Fund. The following charts include Funds for which Mathew Kiselak will no longer serve as co-portfolio manager of the acquiring fund:
Fund Mergers Subject to Shareholder Approval
|Target(Merging) Funds||Acquiring Funds||Acquiring Fund Portfolio Managers|
|Evergreen High Income Municipal Bond Fund
Evergreen Municipal Bond Fund
|Wells Fargo Advantage Municipal Bond Fund||Lyle Fitterer
Wells Capital Management
|Evergreen Intermediate Municipal Bond Fund||Wells Fargo Advantage Intermediate Tax/AMT-Free Fund||Lyle Fitterer
Wells Capital Management
|Current Evergreen Fund||New Wells Fargo Advantage Fund Name||Portfolio Manager|
|Evergreen North Carolina Municipal Bond Fund||Wells Fargo Advantage North Carolina Tax-Free Fund||Robert Miller
Wells Capital Management
|Evergreen Pennsylvania Municipal Bond Fund||Wells Fargo Advantage Pennsylvania Tax-Free Fund||Robert Miller
Wells Capital Management
|Evergreen Strategic Municipal Bond Fund||Wells Fargo Advantage Strategic Municipal Bond Fund||Lyle Fitterer
Wells Capital Management
When will Mr. Kiselak's role as portfolio manager end?
The changes are effective immediately. Mr. Kiselak no longer has responsibility for the day-to-day management of these Funds.
The Evergreen Funds' investment objective may be changed without a vote of the funds' shareholders. 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 nondiversified funds and funds investing in foreign investments, high-yield bonds, 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. A portion of the Fund's income may be subject to federal, state, and/or local income taxes or the alternative minimum tax (AMT). Any capital gains distributions may be taxable.
Carefully consider a fund's investment objectives, risks, charges, and expenses before investing. For a current prospectus, containing this and other information, visit www.evergreeninvestments.com for Evergreen Funds. Read the prospectus carefully before investing.
Evergreen Investment Management Company, LLC, is a subsidiary of Wells Fargo & Company and is an affiliate of Wells Fargo & Company’s broker/dealer subsidiaries. Evergreen mutual funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA/SIPC, an affiliate of Wells Fargo & Company.