Compensation Paid to Wells Fargo Clearing Services, LLC in Connection With Distributions of Shares of Closed-End Funds
Wells Fargo Advisors (“WFA”) is not a named underwriter in this offering but its affiliate Wells Fargo Securities, LLC (“WFS”) is acting as a lead underwriter or syndicate member in this offering. Although WFA does not act as underwriter for closed-end fund offerings, it provides assistance to WFS in connection with its distribution of these securities. WFA Financial Advisors (“FAs”) may also offer and sell the instruments being underwritten to those customers for whom the securities are appropriate.
WFA will receive a selling concession, as described in the prospectus, with respect to all securities it sells to WFA customers. A portion of the selling concession will be shared by WFA with the FAs responsible for selling the securities.
WFA will separately, and in addition to the selling concession, receive a payment from WFS as compensation for WFA’s assistance. In the case of closed-end funds, WFS will share up to one half of its fee for managing the underwriting syndicate and one half of the structuring fee it receives from investment advisers of closed-end funds it underwrites. The amount of the management fee is not disclosed in the prospectus for the securities offered but, together with the selling concession and the underwriting fee, constitutes part of the “sales load.” The structuring fee typically is disclosed in the Underwriting Section of the prospectus. This assistance payment will be made by WFS to WFA after completion of the offering. WFA will not share any portion of the assistance payment with WFA FAs. The combination of the selling concession and the assistance payment may incent WFA to encourage FAs to recommend these securities over other securities.