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A Proposed Significant Change to Wells Fargo® Hybrid and Preferred Securities Floating and Variable Rate Index

09/06/2017
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NEW YORK — Wells Fargo Securities, LLC (“Wells Fargo”) would like to consult with members of the investment community regarding a proposed change to the methodology for the Wells Fargo® Hybrid and Preferred Securities Floating and Variable Rate Index (Ticker: PFLOT) (the “Index”).  The change would result in a significant increase in the size and number of components of the Index, which may occur gradually over several consecutive rebalancing sessions.

The Index is designed to track floating rate and variable rate preferred securities and hybrid debt securities that are comparable to preferred securities and that, together with the preferred securities, are representative of the general U.S. trading market for variable rate preferred and hybrid securities.  Securities must be issued by SEC reporting companies, be U.S. dollar denominated and satisfy defined liquidity criteria. 

Currently, floating and variable rate $1,000 par value preferred securities are not included in the Index.  The proposed change to the Index would result in $1,000 par value preferred securities being eligible to be included in the Index.  Given the growth in this class of preferred securities, Wells Fargo believes that $1,000 par value preferred securities are representative of the market that the Index is intended to track and should be eligible for inclusion in the Index.

Wells Fargo will conduct a consultation of the proposed change to receive feedback from the investment community.  A document detailing the proposed change to the Index methodology may be found on Wells Fargo’s website at https://www.wellsfargoresearch.com/indices/Reports.  Responses to the consultation may be submitted by contacting Daniel Forth, Head of Strategic Indexing, at daniel.forth@WellsFargo.com or 704-410-3233.  The consultation period will end on September 30, 2017.  Wells Fargo will consider the feedback received during the consultation period.  The consultation may or may not result in a change to the Index methodology.  In October 2017, Wells Fargo will announce the results of the consultation, any change to the Index methodology and the implementation schedule for any change to the Index methodology. 

About Wells Fargo Securities

Wells Fargo Securities delivers a comprehensive set of capital markets and advisory products and services, including public debt and equity origination and distribution, investment research, interest rate, commodity and equity risk hedging, mergers and acquisitions advice, prime services, structured lending facilities, foreign exchange services, and municipal bond origination. Wells Fargo Securities consists of nearly 5,000 team members in more than 40 offices across North America, Europe and Asia.

About Wells Fargo

Wells Fargo & Company (NYSE: WFC) is a diversified, community-based financial services company with $1.9 trillion in assets. Wells Fargo’s vision is to satisfy our customers’ financial needs and help them succeed financially. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 8,500 locations, 13,000 ATMs, the internet (wellsfargo.com) and mobile banking, and has offices in 42 countries and territories to support customers who conduct business in the global economy. With approximately 271,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 25 on Fortune’s 2017 rankings of America’s largest corporations. News, insights and perspectives from Wells Fargo are also available at Wells Fargo Stories.

Lylah Holmes 704-410-1018 office 980-266-9261 mobile Lylah.holmes@wellsfargo.com

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