The shareholders of the Wells Fargo Advantage Dividend Income Fund have approved a change in the fund's subadvisor. The fund's assets will now be managed by Phocas Financial, and the fund will be renamed the Wells Fargo Advantage Large Company Value Fund.
Previously the fund has invested in the large-cap value sector of the markets, but with a particular focus on dividend yield and dividend-paying stocks. In conjunction with those changes, the board also recommended Phocas to shareholders as a subadvisor for the new investment strategy.
In managing the Wells Fargo Advantage Large Company Value Fund, Phocas will invest in a diversified portfolio of 50 to 80 stocks with the goal of outperforming the Russell 1000 Value Index.
The firm’s portfolio construction will initially use quantitative analysis to narrow the universe of potential investments and then rely on proprietary financial models, such as discounted cash flow analysis, to aid in the final stock selection process.
William Schaff and Stephen Block, who have 11 years of experience working together managing large cap, small cap, and REIT portfolios, will manage the fund.