Market Overview

Wells Fargo Income Opportunities Fund Adopts Managed Distribution Plan


The Wells Fargo Income Opportunities Fund (NYSE:EAD), a
closed-end fund, announced today that the fund's Board of Trustees has
approved the commencement of a managed distribution plan.

The managed distribution plan will go into effect beginning with the
monthly distribution to be declared in September 2018. The plan provides
for the declaration of monthly distributions to common shareholders of
the fund at an annual minimum fixed rate of 8% based on the fund's
average monthly net asset value (NAV) per share over the prior 12
months. Under the managed distribution plan, monthly distributions may
be sourced from income, paid-in capital, and/or capital gains, if any.
Shareholders may elect to reinvest distributions received pursuant to
the managed distribution plan in the fund under the existing dividend
reinvestment plan, which is described in the fund's shareholder reports.

The Wells Fargo Income Opportunities Fund is a closed-end high-yield
bond fund. The fund's investment objective is to seek a high level of
current income. The fund may, as a secondary objective, seek capital
appreciation to the extent it is consistent with its investment

Under the managed distribution plan, the fund will distribute available
investment income to its shareholders monthly. If sufficient investment
income is not available on a monthly basis, the fund will distribute
long-term capital gains and/or return capital to its shareholders in
order to maintain its managed distribution level. The fund expects that
distributions under the managed distribution plan will exceed investment
income and capital gains and thus expects that such distributions likely
will include return of capital for the foreseeable future. No
conclusions should be drawn about the fund's investment performance from
the amount of the fund's distributions or from the terms of the fund's
managed distribution plan.

The amount distributed per share is subject to change at the discretion
of the fund's Board of Trustees. The managed distribution plan will be
subject to periodic review by the fund's Board of Trustees to determine
whether the managed distribution plan should be continued, modified, or
terminated. The fund's Board of Trustees may amend the terms of the
managed distribution plan or suspend or terminate the managed
distribution plan at any time without prior notice to the fund's
shareholders. The amendment or termination of the managed distribution
plan could have an adverse effect on the market price of the fund's

With each distribution that does not consist solely of net investment
income, the fund will issue a notice to shareholders that will provide
detailed information regarding the amount and composition of the
distribution and other related information. The amounts and sources of
distributions reported in the notice are only estimates and are not
being provided for tax reporting purposes. The actual amounts and
sources of the amounts for tax reporting purposes will depend upon the
fund's investment experience during its full fiscal year and may be
subject to changes. The fund will send shareholders a Form 1099-DIV for
the calendar year that will tell shareholders how to report these
distributions for federal income tax purposes.

For more information on Wells Fargo's closed-end funds, please visit our

This closed-end fund is no longer offered as an initial public
offering, and shares are only available through broker/dealers on the
secondary market.
Unlike an open-end mutual fund, a closed-end fund
offers a fixed number of shares for sale. After the initial public
offering, shares are bought and sold through broker/dealers in the
secondary marketplace, and the market price of the shares is determined
by supply and demand, not by NAV, and is often lower than the NAV. A
closed-end fund is not required to buy its shares back from investors
upon request.

High-yield securities have a greater risk of default and tend to be more
volatile than higher-rated debt securities. Illiquid securities may be
subject to wide fluctuations in market value and may be difficult to
sell. The value of debt securities fluctuate in response to the
financial condition of individual issuers, general market and economic
conditions, and changes in interest rates. In general, when interest
rates rise, the value of debt securities tends to fall. When interest
rates decline, interest that a fund is able to earn on its investments
in debt securities also may decline, but the value of those securities
may increase. Changes in market conditions and government policies may
lead to periods of heightened volatility in the debt securities market
and reduced liquidity for certain debt securities held by the fund.
Interest rate changes and their impact on the fund and its share price
can be sudden and unpredictable.

The use of leverage results in certain risks, including, among others,
the likelihood of greater volatility of net asset value and the market
value of common shares. Derivatives involve additional risks, including
interest rate risk, credit risk, the risk of improper valuation, and the
risk of noncorrelation to the relevant instruments that they are
designed to hedge or closely track. There are numerous risks associated
with transactions in options on securities.

Wells Fargo Asset Management (WFAM) is the trade name for certain
investment advisory/management firms owned by Wells Fargo & Company.
These firms include but are not limited to Wells Capital Management Inc.
and Wells Fargo Funds Management, LLC. Certain products managed by WFAM
entities are distributed by Wells Fargo Funds Distributor, LLC (a
broker/dealer and Member FINRA).

This material is for general informational and educational purposes only
and is NOT intended to provide investment advice or a recommendation of
any kind—including a recommendation for any specific investment,
strategy, or plan.

314726 08-18


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