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Wells Fargo tweaks fund strategy; some investors withdraw

Some clients have pulled their investments from Wells Fargo & Co.'s target-date funds, after the company decided to shift to a more aggressive strategy.

That strategy, announced to investors in April 2017, included the purchase of junk bonds, emerging market stocks and derivatives. Retirement program TexaSaver ended up withdrawing more than $600 million from the funds, Reuters reported Feb. 1, citing Georgina Bouton of Employees Retirement System of Texas. Another retirement plan based in Colorado also pulled its funds, telling participants that it did so because of the new strategy's "unproven nature and significance," according to Reuters.

Wells Fargo Asset Management's head of strategic business segments, Fredrik Axsater, told the publication that the company is committed to changes and that reception overall has been "really strong."