Cash Sweep Program Disclosure Statement - saf.wellsfargoadv ...

578326 (Rev 19 - 01/14)Cash Sweep ProgramDisclosure Statement

Cash Sweep Program Disclosure StatementSummaryPlease consult the full text of the disclosure statement below for further information at the pages indicated.How the CashSweep ProgramWorksOur Cash Sweep Program allows you to earn a return on the uninvested cash balances–for which nointerest is otherwise earned or paid–in your account by automatically placing ("sweeping") cashbalances into a sweep vehicle until such balances are invested by you or otherwise needed to satisfyobligations arising in connection with your account.Page 2Available SweepOptionsThe available sweep options currently consist of one or more affiliated and non-affiliated moneymarket mutual funds and/or interest-bearing deposit accounts at three affiliate banks. Eligibility foreach available sweep vehicle is determined by account type.Page 2Rate of ReturnDuty to MonitorThe rates of return for the sweep options vary over time. Current rates can be obtained from yourinvestment professional, by calling the general inquiries phone number listed on the front of youraccount statement, or found on our website at www.wellsfargoadvisors.com.• The rate of return on the Bank Deposit Sweep is set by the affiliated banks, which may seek topay as low a rate as possible consistent with their views of competitive necessities. With certainexceptions the rate will be tiered based upon account type and the overall household value ofyour account(s) with Wells Fargo Advisors.• Money market mutual funds seek to achieve the highest rate of return (less fees and expenses)consistent with prudence and their investment objectives.• There is no guarantee that the yield on any particular cash sweep will remain higher than othersover any given period. The rate of return on any of our sweep vehicles may be lower than thatof similar investments offered outside of the Cash Sweep Program.The Cash Sweep should not be viewed as a long-term investment option. If you desire to maintaincash balances for other than a short-term period and/or are seeking the highest yields currentlyavailable in the market, please contact your investment professional at the number on your accountstatement to discuss investment options that may be available outside of the Cash Sweep Programto help maximize your return potential consistent with your investment objectives and risk tolerance.You must monitor and determine the best cash sweep for you under this program. You may alsoelect not to participate in the Cash Sweep Program and instead periodically invest cash balancesdirectly.Page 2Page 3Changes to theSweep ProgramYou will be notified if we modify the Cash Sweep Program in a way that results in changing thesweep vehicle for your account. Unless you tell us otherwise within the time period specified in thenotice, your cash balances will be moved to the new sweep vehicle that we designate under theprogram.Page 3Benefits toWells FargoAdvisorsDiffering Risksand AccountProtectionWe may charge fees and receive certain benefits under the different sweep vehicles. A portion ofthese fees and benefits may be shared with your investment professional. Because of these feesand benefits, we have a financial incentive to select the particular sweep vehicles included in ourprogram.Money market mutual funds and the bank deposit sweep are subject to different risks and accountprotection:• Money market mutual funds invest in high quality, short-term securities and seek to maintain astable value but are subject to market risks and potential value loss. They are not bank accountsand not subject to FDIC insurance protection. They are instead covered by SIPC, which protectsagainst the custodial risk (and not a decline in market value) when a brokerage firm fails byreplacing missing securities and cash up to a limit of $500,000, of which $250,000 may be cash.• The bank deposit sweep is not subject to market risk and value loss but is subject to the risk of abank's failure. In the unlikely event a bank fails, deposits at each bank are eligible for FDICinsurance protection up to a limit of $250,000 (including principal and interest) per depositor ineach insurable capacity (e.g. individual or joint). This limit includes any other deposits you mayhave at each bank outside of this program. You are responsible for monitoring your bankbalances in this program and the balances in any of your other bank accounts at the samebank to determine if these, in total, exceed FDIC insurance limits. Monies held in the BankDeposit Sweep are not covered by SIPC.Page 3Page 3Page 4Investment and Insurance Products:Not Insured by FDIC or any Federal Government Agency May Lose Value Not a Deposit of or Guaranteed by a Bank or Any Bank AffiliateWells Fargo Advisors, LLC is a registered broker-dealer and separate non-bank affiliate of Wells Fargo & Company578326 (Rev 19 - 01/14)Page 1 of 5

IntroductionUnder the Wells Fargo Advisors Cash SweepProgram (the “Sweep Program”), uninvestedcash balances - for which no interest isotherwise earned or paid - in your accountare automatically swept into interest-bearingdeposit accounts (“Bank Deposit Sweep”) or,if available, money market mutual funds(“Money Market Funds”) or such other sweeparrangements made available to you(collectively “Cash Sweep Vehicles”), untilthese balances are invested by you orotherwise needed to satisfy obligationsarising in connection with your account.Available Cash Sweep VehiclesEligibility for each available Cash SweepVehicle is determined by account type andcan be obtained from your investmentprofessional. For standard brokerageaccounts, the Bank Deposit Sweep serves asthe exclusive Cash Sweep Vehicle for eligibleclients. The Bank Deposit Sweep consists ofinterest-bearing deposit accounts at threebanks affiliated with Wells Fargo Advisors(“Affiliated Banks”). Further informationregarding the Bank Deposit Sweep, includingeligibility requirements, is contained below inthe section entitled, Additional InformationRegarding the Bank Deposit Sweep. ForCommand Asset Program accounts, thedefault Cash Sweep Vehicle when youraccount is opened will be the Bank DepositSweep for eligible clients until yousubsequently choose an availabletax-advantaged Money Market Fund. TheCash Sweep Vehicle for ineligible clients forboth account types will be a taxable MoneyMarket Fund. The Money Market Fundsoffered in the Sweep Program may includethose for which an affiliate of Wells FargoAdvisors provides investment managementand other services, including the Wells FargoAdvantage Money Market Funds. Prior to, orat the same time your available funds are firstswept into an available Money Market Fund,you will be furnished with the appropriateprospectus, which should be read carefully.If you do not select a Cash Sweep Vehiclewhen you open your account, or you selectan ineligible Cash Sweep Vehicle, your CashSweep Vehicle will be, and any cashbalances transferred to, the Bank DepositSweep if you are eligible (if not, your CashSweep Vehicle will be (and any cashbalances transferred to) an available MoneyMarket Fund selected by us). If you wish tospecify a different Cash Sweep Vehicle, ifavailable for your account type, you may doso at any time by contacting us. Existingbalances in your prior Cash Sweep Vehiclewill be automatically transferred to the newCash Sweep Vehicle you select.How the Sweep Program WorksOn each business day (or on a weekly basisfor standard brokerage accounts if the cashbalance is less than a minimum amount)available cash balances will be automaticallyswept into the Cash Sweep Vehicle for youraccount. Shares or cash held in your CashSweep Vehicle will be automaticallyredeemed in order to settle a transaction,serve as collateral for a margin loan or shortsale, or satisfy any other obligations.Timing of Credits - Your Cash SweepVehicle will be credited: (i) in the case ofavailable cash balances resulting from theproceeds of securities sales, on thesettlement date of the securities sale and578326 (Rev 19 - 01/14)(ii) in the case of available cash balancesresulting from non-trade-related credits(i.e., the receipt of dividends, interestpayments, or deposits), on the businessday after receipt by Wells Fargo Advisorsof the non-trade-related credit (unlessthere is a trade-related debit itempending in your account due to settle inone business day, in which case only thatamount exceeding the trade-related debitwill be credited to your Cash SweepVehicle). Available cash balances willnot earn a rate of return until swept intoyour Cash Sweep Vehicle.Timing of Debits - Your Cash SweepVehicle is automatically debited to satisfyobligations arising in connection withyour brokerage account, includingadministrative and other fees, andcharges in connection with a marginaccount. Cash Sweep Vehicle balanceswill also be debited as necessary inconnection with certain account activityand services, including securitiestransactions, preauthorized electronictransfers, automated payments, checks,or debits from using the linked creditcards. Your brokerage account will bescanned automatically for debit itemseach day. Debit balances will be satisfiedautomatically from: (i) available cashbalances; (ii) funds in any Money MarketFund no longer serving as your CashSweep Vehicle, (iii) through thewithdrawal of funds from your CashSweep Vehicle; and (iv), whereapplicable, from margin loans.Access to Funds - You may only accessthe balances held in your Cash SweepVehicle through your brokerage accountat Wells Fargo Advisors. As required byfederal banking regulations, the AffiliatedBanks reserve the right to require sevendays prior notice before permitting atransfer out of the Bank Deposit Sweep.The Affiliated Banks have no intention ofexercising this right at the present time.In addition, the Money Market Fundsmay reserve the right to require one ormore days prior notice before permittingwithdrawals. Please review theprospectus for the Money Market Fundfor further information.Statements and Confirmations - Youraccount statement will indicate yourbalance, detail transactions, and reflectinterest or dividends relating to yourCash Sweep Vehicle. These accountstatements are provided in lieu ofseparate confirmations of sweeptransactions.Interest/Dividends Payable - Interest oncash in the Bank Deposit Sweep isaccrued daily, compounded monthly andcredited to your account on the lastbusiness day of each monthly statementperiod. Dividends on the shares in theMoney Market Fund will not be payablein cash but will be reinvested each monthin additional shares of the applicableMoney Market Fund at the current netasset value. Dividends are notguaranteed and are subject to change orelimination.Rate of ReturnThe rate of return for each available CashSweep Vehicle can be obtained from yourinvestment professional, by calling thegeneral inquiries phone number listed on thefront of your account statement or found onour website at www.wellsfargoadvisors.com.These rates will vary over time and may belower than rates available to clients makingdeposits directly with the Affiliated Banks orat other banks, or available by investingdirectly in other money market mutual fundsnot offered through the Sweep Program.The interest rate for the Bank Deposit Sweepis based on prevailing business andeconomic conditions, and is set by WellsFargo Advisors, working with the AffiliatedBanks. The rate will be based upon accounttype and with certain exceptions the totalhousehold value of assets in your account(s)with Wells Fargo Advisors such that clients inhigher asset tiers will generally receive higherinterest rates. The total household value willinclude any balances in the Bank DepositSweep, as well as all other assets listed inyour Wells Fargo Advisors accountstatements, except for those shown underthe “Other Assets/Liabilities” section. Thegrouping of accounts into a household can beperformed by your investment professionalbased on account eligibility and familyrelationships. In general, a household maycontain all of your personal accounts as wellas the accounts of your spouse or domesticpartner, dependents, and wholly-ownedbusinesses. Command Asset Program andResource accounts in the Bank DepositSweep may receive a tier rate that isgenerally higher than that paid to otheraccount types. Command Asset Programaccounts will be tiered based on the totalhousehold value of assets in your account(s)with Wells Fargo Advisors as describedabove. Resource accounts will be tieredbased on the cash balance in the accountand household value will have no affect onrates in the Resource account. Tiers andinterest rates on different tiers may changefrom time to time at Wells Fargo Advisors'discretion. Interest rate tiering does notapply to deposits from certain other accounts.Please contact your investment professionalat the number on your account statement tofind out more about householding and toensure all eligible accounts are grouped in ahousehold.Wells Fargo Advisors and the Affiliated Banksdo not have a duty to provide the highestrates prudently available and may insteadseek to pay as low a rate consistent with theirviews of competitive necessities. Lowerrates may be more financially beneficial toWells Fargo & Company and its affiliates,including the Affiliated Banks and WellsFargo Advisors, and their respectivepersonnel. There is no necessary linkagebetween bank rates of interest and thehighest rates available in the market,including any money market mutual fundrates. By comparison, a Money Market Fundgenerally seeks to achieve the highest rate ofreturn (less fees and expenses) consistentwith the fund’s investment objective, whichcan be found in the fund’s prospectus.(Money Market Fund rates may, however, beaffected by the fees imposed by the particularclass of shares selected by us for the SweepProgram.) As a result, the current rate ofreturn on each Cash Sweep Vehicle will varyover time and there is no guarantee that thereturn on any particular Cash Sweep Vehiclewill remain higher than the others over anygiven period.Page 2 of 5

The Cash Sweep Vehicle for your accountshould not be viewed as a long-terminvestment option. If you desire, as part ofan investment strategy or otherwise, tomaintain a cash position in your account forother than a short period of time and/or areseeking the highest yields currently availablein the market for your cash balances, pleasecontact your investment professional at thenumber on your account statement to discussinvestment options that may be availableoutside of the Sweep Program to helpmaximize your return potential consistentwith your investment objectives, liquidityneeds and risk tolerance. Please note,however, that available cash accumulating inyour account will not be automatically sweptinto any investment you purchase outside ofthe Sweep Program.Your Responsibility to Monitor Your CashSweep VehicleAs returns on the Cash Sweep Vehicles, yourpersonal financial circumstances and otherfactors change, it may be in your financialinterest to change your Cash Sweep Vehicle(if another option is available for your accounttype) or invest cash balances in productsoffered outside of the Sweep Programconsistent with your investment objectivesand risk tolerance. Wells Fargo Advisorsdoes not have any duty to monitor the CashSweep Vehicle for your account or makerecommendations about, or changes to, theSweep Program that might be beneficial toyou.Alternatives to the Sweep ProgramYou may elect not to participate in the SweepProgram and/or periodically invest cashbalances directly in available money marketmutual funds or other products offered asdirect investments outside of the SweepProgram by providing instructions to yourinvestment professional. Please note if youelect not to participate in the SweepProgram, accruing cash balances will notearn a rate of return prior to directinvestment. In addition, available cash willnot be automatically swept into any moneymarket mutual fund or other investment thatyou purchase outside of the Sweep Program.Your investment professional can providefurther details and additional information,including a prospectus, for any of the moneymarket mutual funds available for directinvestment outside of the Sweep Program.Please read the prospectus carefully beforeinvesting. Investments in money marketmutual funds are not guaranteed or insuredby the FDIC or any other government agencyand are not deposits of a bank or bankaffiliate. Although money market mutualfunds seek to preserve their net asset valueat one dollar per share, it is possible to losemoney by investing in money market mutualfunds.Changes to Cash Sweep VehiclesFrom time to time, Wells Fargo Advisors maymodify the Sweep Program, which may resultin changing the Cash Sweep Vehicle for youraccount. If we make any change, there is noguarantee that such change will provide anequal or greater rate of return to you duringany given period, and the rate of return maybe lower. You will receive advance notice ofany change in the Sweep Program thatresults in changing the Cash Sweep Vehiclefor your account. Unless you object withinthe time period specified, Wells Fargo578326 (Rev 19 - 01/14)Advisors will transfer the balances from yourprior Cash Sweep Vehicle into any new CashSweep Vehicle. If the trading activity in youraccount results in a “Pattern Day-Trader”designation, you may select an availableMoney Market Fund as your Cash Sweep sothe balance can be used towards theminimum equity trading requirement. If aday-trader account uses the Bank DepositSweep, the balance will not count towardsthe minimum equity trading requirement.If you decide to enroll in a new product orservice that doesn’t offer your current CashSweep Vehicle, your new Cash SweepVehicle will become the Bank Deposit Sweepif you are eligible (if not, your Cash SweepVehicle will be an available Money MarketFund selected by us) unless you select adifferent available Cash Sweep Vehicle.Administrative FeeIn addition to any other fees and expensescharged directly by the Money Market Funds,we charge an administrative fee at anannualized rate of 30 basis points (0.30%) ofassets held in the Class A share class of theWells Fargo Advantage Money MarketFunds. This fee will be directly deducted fromthe dividends you receive from these MoneyMarket Funds and your periodic accountstatement will reflect such dividends net ofthis fee. The administrative fee is intended tocompensate us for administrative services weprovide in offering the Sweep Program, forrelated processing costs and accountmaintenance services we provide inconnection with processing sweeptransactions. Because the administrative feeis not charged by the Money Market Fund,we will report to the Internal Revenue Service(e.g., on Form 1099-DIV) the total amount ofdividends paid to you by the Money MarketFund (i.e., the gross dividend), not thedividend after deduction of the administrativefee (i.e., the net dividend). In contrast, theestimated current yield for Money MarketFunds shown on account statements willreflect the net dividend after deduction of theadministrative fee. You should consult withyour tax advisor as to the deductibility of thisadministrative fee. The administrative fee isnot charged on the Bank Deposit Sweep orwith respect to ERISA or IRA accountsparticipating in any of our investmentadvisory programs.Benefits to Wells Fargo Advisors andOthersWells Fargo Advisors and its affiliates receivefees and benefits for services provided inconnection with the Sweep Program, and wemay choose to make available the CashSweep Vehicles that are more profitable to usand our affiliates than other money marketmutual funds or bank deposit accounts. Aportion of these fees may be paid to yourinvestment professional.Wells Fargo Advisors and its affiliates mayreceive distribution (Rule 12b-1), investmentmanagement, service fees and othercompensation as a result of sweepingavailable cash into the Money Market Funds.These fees, which vary depending on theMoney Market Fund (and class thereof) used,are paid directly by the Money Market Fundsbut ultimately borne by you as a shareholderin the fund.Wells Fargo Advisors and its affiliates,including the Affiliated Banks, benefitfinancially from cash balances held in theBank Deposit Sweep as well. As with otherdepository institutions, the profitability of theAffiliated Banks is determined in large part bythe difference or “spread” between theinterest they pay on deposit accounts, suchas the Bank Deposit Sweep, and the interestor other income they earn on loans,investments and other assets. As notedabove, the Affiliated Banks may pay rates ofinterest on the Bank Deposit Sweep that arelower than prevailing market interest rates.The participation of the Affiliated Banks in theBank Deposit Sweep is expected to increasetheir respective deposits and, accordingly,overall profits.Wells Fargo Advisors will receive fees andcompensation from the Affiliated Banksand/or their affiliates in connection with theBank Deposit Sweep. This compensation willbe in an amount of up to a $35 annual flat feefor each Wells Fargo Advisors account that iseligible to sweep into the Bank DepositSweep at the Affiliated Banks. Wells FargoAdvisors also profits on the difference or“spread” between the interest it pays you onthe Bank Deposit Sweep and a percentage ofwhat the Affiliated Banks earn on loans,investments and other assets. The larger thespread, the more Wells Fargo Advisors willearn. Wells Fargo Advisors has a conflict ofinterest because it influences both what itpays you in interest and what it receives incompensation on the Bank Deposit Sweep.This compensation is subject to change andwe may waive all or any part of this fee atany time without notice. In addition, certainemployees, including investmentprofessionals, of Wells Fargo Advisors mayreceive incentive compensation based in parton assets in the Bank Deposit Sweep or theprofitability of the Bank Deposit Sweep forthe Affiliated Banks and their joint parentcompany, Wells Fargo & Company. We shallalso receive a benefit by retaining anyinterest earned (generally at the FederalFunds rate) on cash balances awaitingdisbursement or prior to such balances beingswept into your Cash Sweep Vehicle. As aresult of the fees and benefits describedabove, the Bank Deposit Sweep may besignificantly more profitable to us than otheravailable Cash Sweep Vehicles, if any.SIPC InsuranceThe Securities Investor ProtectionCorporation (SIPC) protects customers of itsmembers against the custodial risk to clientsof securities brokerage firms like Wells FargoAdvisors in the event such firms becomeinsolvent. Unlike FDIC insurance, SIPC doesnot insure against the failure of a security, thequality of investments, or declines in thevalue of investments. Instead, SIPC protectseach client's securities (which include MoneyMarket Funds) and cash held in a client'sbrokerage account at an insolvent brokeragefirm by replacing missing securities and cashof up to $500,000 per client, including$250,000 for claims for cash. Wells FargoAdvisors provides additional coverage, at nocost to you, through Lexington InsuranceCompany ("Lexington"), an AIG company.For clients who have received the full SIPCpayout limit, Wells Fargo Advisors’ policy withLexington provides additional coverageabove the SIPC limits for any missingsecurities and cash in client brokerageaccounts up to a firm aggregate limit of $1billion (including up to $1.9 million for cashper client). This account protectionPage 3 of 5

package does not cover losses resulting fromdeclines in the market value of yourinvestments. For more information on SIPCcoverage, please see the explanatorybrochure at www.sipc.org or call202-371-8300. For more information aboutLexington, please visitwww.lexingtoninsurance.com.Since monies in the Bank Deposit Sweep areheld at banks, they are NOT covered bySIPC or Lexington. They are instead coveredby FDIC insurance. Please see the sectionentitled FDIC Insurance Coverage below.Additional Information Regarding theBank Deposit SweepIntroductionThe Bank Deposit Sweep consists ofinterest-bearing deposit accounts at threeAffiliated Banks, each a depository institutionregulated by bank regulatory agencies undervarious federal banking laws and regulations.If the Bank Deposit Sweep is your CashSweep Vehicle, available cash balances inyour account are automatically deposited intothe Bank Deposit Sweep.DepositsPeriodically, the uninvested cash balances inyour brokerage account will be deposited atone or more bank deposit accountsmaintained at the Affiliated Banks. Noevidence of ownership, such as a passbookor certificate, will be issued to you anddeposits in the Bank Deposit Sweep may bemade in the name of Wells Fargo Advisors(or its agents) for the benefit of its clients.However, your brokerage account statementwill reflect all deposits, withdrawals, AffiliatedBank deposit balance(s) and applicableinterest rate.Generally, deposits will be made at WellsFargo Bank, N.A. up to $250,000, and thenany available cash in excess of $250,000 willbe deposited into two other Affiliated Banks.Once your deposits exceed $750,000, morethan $250,000 may be deposited at WellsFargo Bank, N.A. and may not be FDICinsured. For Resource Accounts, deposits willbe made at Wells Fargo Bank Northwest,N.A. up to $250,000, and then any availablecash in excess of $250,000 will be depositedinto two other Affiliated Banks. Once yourdeposits exceed $750,000, more than$250,000 may be deposited at Wells FargoBank Northwest, N.A. and may not be FDICinsured.Cash intended for deposit into the BankDeposit Sweep must be deposited throughyour brokerage account and cannot beplaced directly by you into an Affiliated Bank.Only balances transferred by Wells FargoAdvisors will be eligible for inclusion in theBank Deposit Sweep and deposits by youinto Affiliated Banks, outside of the BankDeposit Sweep, may adversely affect theFDIC coverage of your funds.WithdrawalsMonies on deposit at the Affiliated Banks willbe automatically withdrawn from the bankdeposit accounts in the event of a debit inyour Wells Fargo Advisors account or, onsettlement date, to pay for securitiespurchased for or sold to your Wells FargoAdvisors account. Debits may also becreated by writing a check on your WellsFargo Advisors account, making paymentsvia online bill payment service, withdrawing578326 (Rev 19 - 01/14)funds through your debit card, or to pay otherliabilities owed to Wells Fargo Advisors.Checks, ACH payments, debit cards, ATMwithdrawals, direct deposits, credits andother transactions and items for your WellsFargo Advisors account are processedthrough that account rather than through thebank deposit accounts. Wells Fargo Advisorswill debit and credit your bank deposits toaccommodate this processing.FDIC Insurance CoverageBalances on deposit in the Bank DepositSweep, together with any other of yourdeposits at the Affiliated Banks, are insuredby the FDIC, an independent agency of theU.S. government, up to a maximum amountin accordance with the rules of the FDIC.Deposits (including principal and interest) ateach of the three Affiliated Banks are eligiblefor federal deposit insurance up to $250,000.Balances in the Bank Deposit Sweep inexcess of $750,000 will be deposited at thefirst Affiliated Bank in the order describedabove, and may not be FDIC insured.Different ownership categories of accountsare separately insured. Please see theDeposit Insurance-General Informationsection below for further information.If you have other deposits at the AffiliatedBanks outside of the Bank Deposit Sweep,you must aggregate all such deposits withyour Bank Deposit Sweep balance forpurposes of determining FDIC coverage. Ifyour total funds on deposit at any AffiliatedBank exceed the applicable FDIC insurancelimit, the FDIC will not insure your funds inexcess of the limit. Please note that you,and not Wells Fargo Advisors, areresponsible for monitoring the totalamount of your deposits at the AffiliatedBanks in order to determine the extent ofFDIC insurance coverage available. If youexpect to have total deposits at theAffiliated Banks, including balancesthrough the Bank Deposit Sweep, thatexceed FDIC insurance coverage limits,you should carefully consider whetheryou should arrange for the directinvestment of amounts exceeding suchcoverage.In the event that federal deposit insurancepayments become necessary, payments ofprincipal plus unpaid and accrued interest willbe made to you by the FDIC. However, thereis no specific time period during which theFDIC must make insurance paymentsavailable. Furthermore, you may be requiredto provide certain documentation to the FDICbefore insurance payments are made.If you have additional questions about FDICinsurance, please contact your investmentprofessional at the number on your accountstatement. You may wish to seek advicefrom your own attorney concerning FDICinsurance coverage of deposits held in morethan one capacity. You may also obtainpublicly available information by contactingthe FDIC, Office of Consumer Affairs, byletter (550 17th Street, N.W., Washington,D.C. 20429), by phone (877-275-3342 or800-925-4618 (TDD)), or by accessing theFDIC website at www.fdic.gov.Differences between the Bank DepositSweep and Money Market FundsThe Money Market Funds available as CashSweep Vehicles are registered with the SECpursuant to the Investment Company Act of1940. The Bank Deposit Sweep consists ofinterest-bearing deposit accounts at theAffiliated Banks, each regulated by bankregulatory agencies under various federalbanking laws and regulations. Deposits inthe Bank Deposit Sweep are eligible for FDICinsurance as described above. The MoneyMarket Funds purchase high quality,short-term securities in seeking to maintaintheir net asset value of one dollar per share.There is no guarantee that this net assetvalue per share will always be maintainedand you may lose money by investing inMoney Market Funds. Funds invested in aMoney Market Fund are not guaranteed orinsured by the FDIC or any other governmentagency and are not deposits of a bank orbank affiliate, including the Affiliated Banks.Changes to Sweep BanksWells Fargo Advisors may from time to timemake changes to the Bank Deposit Sweepthat include adding, deleting, replacing orchanging the sequence of Affiliated Banks,which may result in increasing or decreasingthe overall FDIC insurance available throughthe Bank Deposit Sweep. In such instances,you will be notified in advance of the changeif it affects your account. If an Affiliated Bankno longer makes the Bank Deposit Sweepavailable, you will be provided the opportunityto establish a direct depository relationshipwith that bank, subject to its policies andprocedures. If you do not wish to establish adirect relationship with the bank, your fundswill be transferred to another available sweepbank. The consequences of maintaining adirect depository relationship with anAffiliated Bank are discussed below underRelationship with Wells Fargo Advisors.Wells Fargo Advisors may notify you of anyof these changes by means of a letter, anentry on your brokerage account statement,an entry on a trade confirmation or by othermeans.Information about the Affiliated BanksThe Affiliated Banks are wholly-ownedsubsidiaries of Wells Fargo & Company, thefourth largest bank holding company in theUnited States based on assets ("Wells Fargo& Company"). Wells Fargo Advisors is anonbank affiliate of the Affiliated Banks andWells Fargo & Company. The AffiliatedBanks are regulated by bank regulatoryagencies under various federal banking lawsand regulations. Additional informationregarding the Affiliated Banks and WellsFargo & Company is available atwww.wellsfargo.com.Deposits in the Bank Deposit Sweep areobligations of each Affiliated Bank where themonies are deposited and are not obligationsof, or guaranteed by, Wells Fargo &Company or any of its other affiliates,including Wells Fargo Advisors. Neither WellsFargo & Company nor Wells Fargo Advisorsguarantees in any way the financial conditionof the Affiliated Banks nor are theyresponsible for any insured or uninsuredportion of any deposits with the AffiliatedBanks.Relationship with Wells Fargo AdvisorsWells Fargo Advisors will act as your agent inestablishing and maintaining the BankDeposit Sweep, including making deposits toand withdrawals from the Bank DepositSweep. Your first deposit into the BankDeposit Sweep will constitute yourappointment of Wells Fargo Advisors as yourPage 4 of 5

agent in connection with your Bank DepositSweep. No evidence of ownership, such as apassbook or certificate, will be issued to youand deposits in the Bank Deposit Sweep maybe made in the name of Wells FargoAdvisors, or its clearing agent, for the benefitof its customers. Accordingly, alltransactions involving the Bank DepositSweep must be made through Wells FargoAdvisors and all inquiries relating to the BankDeposit Sweep should be directed to WellsFargo Advisors.If you decide to remove Wells Fargo Advisorsas your agent with respect to the BankDeposit Sweep, you may establish a directdepository relationship with an Affiliated Bankby requesting to have your depositrelationship established in your name,subject to applicable law and the AffiliatedBank's terms and conditions. If Wells FargoAdvisors terminates your use of the BankDeposit Sweep or if you choose to removeWells Fargo Advisors as your agent withrespect to the Bank Deposit Sweep, WellsFargo Advisors will have no furtherresponsibility for automatically crediting yourbrokerage account with payments made withrespect to your accounts with the AffiliatedBanks and will not automatically withdrawfunds from your accounts with the AffiliatedBanks to satisfy debits in your brokerageaccount.Deposit Insurance-GeneralInformationGeneral Information. The Bank DepositSweep is insured by the FDIC, anindependent agency of the U.S. government,up to a maximum amount of $250,000(including principal and accrued interest) perdepositor in each insurable capacity (e.g.individual or joint) at each Affiliated Bankwhen aggregated with all other deposits heldby you at the same Affiliated Bank in thesame capacity. Your funds become eligiblefor deposit insurance immediately uponplacement in the Bank Deposit Sweep. Anydeposits that you maintain directly with anAffiliated Bank, or through an intermediary(such as Wells Fargo Advisors or anotherbroker), will be aggregated with your BankDeposit Sweep balances at each AffiliatedBank for purposes of FDIC insurancecoverage limits.In the unlikely event that federal depositinsurance payments become necessary,payments of principal plus unpaid andaccrued interest will be made to you. Thereis no specific time period during which theFDIC must make insurance paymentsavailable. Furthermore, you may be requiredto provide certain documentation to the FDICand Wells Fargo Advisors before insurancepayments are made. For example, if you holddeposits as trustee for the benefit of trustparticipants, you may be required to furnishaffidavits and provide indemnities regardingan insurance payment.The application of FDIC insurance coveragelimits by account type is illustrated by severalcommon factual situations discussed below.To assist you with calculating youraggregated deposits and the associatedcoverage, the FDIC has an ElectronicDeposit Insurance Estimator available atwww2.fdic.gov/edie.person, and titled in that person’s name only,are added together and the total insured upto $250,000 at each Affiliated Bank (for atotal of up to $750,000 when deposited at allthree Affiliated Banks). This accountcategory does not include joint accounts,certain trusts, and individual retirementaccounts, which are protected in a separatecategory and discussed below.Custodial Accounts - Funds in accountsheld by a custodian (for example, under theUniform Gifts to Minors Act or the UniformTransfers to Minors Act) are not treated asowned by the custodian, but are added toother deposits of the minor and insured up to$250,000 in the aggregate per Affiliated Bank(for a total of up to $750,000 when depositedat all three Affiliated Banks).Joint Accounts - For accounts owned bytwo or more people, each person’s share isinsured up to $250,000 separately at eachAffiliated Bank in addition to the $250,000allowed on other deposits owned individuallyin one or more single accounts (for a total ofup to $1,500,000 for accounts with two jointowners when deposited at all three AffiliatedBanks).Revocable Trust Accounts - A revocabletrust account indicates an intention that thedeposit will belong to one or more namedbeneficiaries upon the death of the owner(s).A revocable trust can be terminated at thediscretion of the owner. There are two typesof revocable trusts: informal trusts - known asPayable on Death (POD) or "Totten Trusts" -and formal trusts - known as "living" or"family" trusts. Both informal and formalrevocable trusts are insured up to $250,000per owner for each beneficiary if the FDICrequirements are met. All deposits that anowner holds in both informal and formalrevocable trusts are added together forinsurance purposes and the insurance limit isapplied to the combined total. A revocabletrust account established by a husband andwife that names the husband and wife assole beneficiaries will be treated as a jointaccount, and will be aggregated with otherjoint accounts subject to the rules describedabove under "Joint Accounts."Irrevocable Trust Accounts - Deposits in anaccount established pursuant to one or moreirrevocable trust agreements created by thesame person will be insured for up to$250,000 per Affiliated Bank for the interestof each beneficiary provided that thebeneficiary's interest in the account isnon-contingent (i.e., capable of determinationwithout evaluation of contingencies). Thedeposit insurance of each beneficiary'sinterest is separate from the coverageprovided for other accounts maintained bythe beneficiary, the grantor, the trustee orother beneficiaries. A beneficiary’s interest infunds held in irrevocable trust accountscreated by the same person will beaggregated and insured up to $250,000 ateach Affiliated Bank.Individual Retirement Accounts - Depositsheld in self-directed retirement accounts,including traditional, Roth, SEP and SIMPLEIRAs, are eligible for FDIC insurance of up to$250,000 in the aggregate at a bank for atotal of up to $750,000 when deposited at allthree Affiliated Banks.Single Accounts - Accounts owned by one578326 (Rev 19 - 01/14)Page 5 of 5