Wells MMF (WMPXX) to Waive Fees
A Prospectus Supplement for Wells Fargo Money Market Fund tells us, "Effective August 15, 2019, Wells Fargo Funds Management, LLC, the investment manager to the Fund, has implemented a temporary voluntary fee waiver of 0.07% for the Fund's Premier Class shares. This voluntary fee waiver is in addition to the Fund's current contractual fee waiver, which caps Premier Class expenses at 0.20% through May 31, 2020. A description of the Fund's current contractual fee waiver may be found in footnote 1 to the Fund's Annual Fund Operating Expenses table in the section entitled 'Money Market Fund Summary.' This additional voluntary fee waiver may be discontinued by Funds Management at any time without notice; however, Funds Management currently anticipates maintaining the waiver for a minimum period of six months from the effective date. Please note that the removal of the voluntary waiver will lead to increased expenses which will impact the Fund's yield." Currently, the Wells Fargo Money Market Fund Premium (WMPXX) holds $526 million in assets, is charging 0.20% in expenses and is yielding 2.19% (as of August 15). In other news, last week the Wall Street Journal wrote, "Rising Repo Rates Fuel Concern Over Mounting U.S. Debt." They explained, "The cost to borrow cash overnight using Treasurys as collateral is fueling concern among investors that bond dealers could become inundated with U.S. debt as the government funds widening budget deficits. The rate that lenders have charged for cash in the market for Treasury repurchase agreements was 2.22% on Tuesday, compared with the 2.1% that the Federal Reserve pays banks to hold excess reserves.... The elevated repo rate is a sign of the cost of bigger budget deficits, even as yields on 10- and 30-year Treasurys are near lows."
