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Wells Fargo Bank, N.A.Collective Investment FundsAnnual Report 2019
Table of Contents
Page
Independent Auditors’ Report 1
Financial Statements: Wells Fargo Target Today CIT E3 3 Wells Fargo Target 2010 CIT E3 8 Wells Fargo Target 2015 CIT E3 13 Wells Fargo Target 2020 CIT E3 18 Wells Fargo Target 2025 CIT E3 23 Wells Fargo Target 2030 CIT E3 28 Wells Fargo Target 2035 CIT E3 33 Wells Fargo Target 2040 CIT E3 38 Wells Fargo Target 2045 CIT E3 43 Wells Fargo Target 2050 CIT E3 48 Wells Fargo Target 2055 CIT E3 53 Wells Fargo Target 2060 CIT E3 58
Notes to Financial Statements 63
Regulatory Statement 72
Independent Auditors’ Report
The Unitholders of the Funds and Wells Fargo Bank, N.A.:
We have audited the accompanying financial statements of Wells Fargo Target Today CIT E3, Wells Fargo Target 2010 CIT E3, Wells Fargo Target 2015 CIT E3, Wells Fargo Target 2020 CIT E3, Wells Fargo Target 2025 CIT E3, Wells Fargo Target 2030 CIT E3, Wells Fargo Target 2035 CIT E3, Wells Fargo Target 2040 CIT E3, Wells Fargo Target 2045 CIT E3, Wells Fargo Target 2050 CIT E3, Wells Fargo Target 2055 CIT E3 and Wells Fargo Target 2060 CIT E3 (collectively, “the Funds”), twelve of the separate collective investment trusts constituting Wells Fargo Bank Collective Investment Funds for Employee Benefit Trusts, which comprise the statements of assets and liabilities, including the schedules of investments, as of December 31, 2019, the related statements of operations and changes in net assets for the year then ended, and the related notes to the financial statements (collectively, the financial statements) and the financial highlights for the year then ended.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements and financial highlights in accordance with U.S. generally accepted accounting principles; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements and financial highlights that are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements and financial highlights. The procedures selected depend on the auditors’ judgment,
including the assessment of the risks of material misstatement of the financial statements and financial highlights, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements and financial highlights in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such
opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
KPMG LLP is a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.
KPMG LLPTwo Financial Center60 South StreetBoston, MA 02111
2
Opinion
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Funds as of December 31, 2019, and the results of their operations and the financial highlights for the year then ended in accordance with U.S. generally accepted accounting principles.
Boston, Massachusetts April 29, 2020
See accompanying notes to financial statements. 3
WELLS FARGO TARGET TODAY CIT E3
Statement of Assets and Liabilities
December 31, 2019
Cost
Fair
value
Assets:
Investments $ 34,877,997 $ 37,494,422
Receivable for investment securities sold 34,328
Total assets 37,528,750
Liabilities:
Fund shares repurchased 34,327
Trustee expenses 1,906
Total liabilities 36,233
Net assets $ 37,492,517
Units outstanding 2,563,994
Unit value $ 14.62
See accompanying notes to financial statements. 4
WELLS FARGO TARGET TODAY CIT E3
Statement of Operations
Year ended December 31, 2019
Expenses:
Administration, Advisory, and/or Trustee Fees $ 17,883
Total expenses 17,883
Net investment income (loss) (17,883)
Realized and unrealized gain (loss) on investment transaction:
Net realized gain (loss) on:
Investments 707,285
Net change in unrealized appreciation (depreciation) on:
Investments 2,978,829
Net gain (loss) on investment transactions 3,686,114
Net change in net assets resulting from operations $ 3,668,231
Statement of Changes in Net Assets
Year ended December 31, 2019
Increase/(decrease) in net assets from operations:
Net investment income (loss) $ (17,883)
Net realized gain (loss) on investment transactions 707,285
Net change in unrealized appreciation (depreciation) of investments 2,978,829
Net increase (decrease) in net assets resulting from
operations 3,668,231
Participating unit holder transactions:
Proceeds from issuance of units (1,629,103 units) 22,855,604
Payments for withdrawals (1,015,922 units) (14,151,021)
Net Change 8,704,583
Change in net assets derived from unit transactions 8,704,583
Total increase (decrease) in net assets 12,372,814
Net assets:
Beginning of year (1,950,813 units) 25,119,703
End of year (2,563,994 units) $ 37,492,517
WELLS FARGO TARGET TODAY CIT E3
Schedule of Investments
December 31, 2019
See accompanying notes to financial statements. 5
Shares Cost
Fair
Value ___________ ____________ ______________
Collective Investment Funds: 100.01%
Wells Fargo Bloomberg Barclays US
Aggregate ex-Corporate Index CIT G (1) 1,199,209 $ 12,322,859 $ 12,934,185
Wells Fargo Emerging Markets Bond Index
CIT G (1) 100,755 1,026,428 1,103,250
Wells Fargo Factor Enhanced Emerging
Markets Index CIT G (1) 82,483 787,637 832,061
Wells Fargo Factor Enhanced International
Index CIT G (1) 250,848 2,543,896 2,777,938
Wells Fargo Factor Enhanced Large Cap
Index CIT G (1) 415,234 4,678,720 5,369,349
Wells Fargo Factor Enhanced Small Cap
Index CIT G (1) 116,970 1,227,479 1,339,612
Wells Fargo High Yield Corporate Bond
Index CIT G (1) 99,547 1,029,472 1,103,212
Wells Fargo Investment Grade Corporate
Bond Index CIT G (1) 602,012 6,206,627 6,720,016
Wells Fargo Strategic Retirement Bond Index
CIT G (1) 410,272 4,204,671 4,375,794
Wells Fargo US REIT Index CIT G (1) 77,715 850,208 939,005 ____________________________________ ____________________________________
Total Collective Investment Funds 34,877,997 37,494,422 ____________________________________ ____________________________________
Total Investments: 100.01% $ 34,877,997 $ 37,494,422 ____________________________________ ____________________________________ ____________________________________ ____________________________________
Percentages shown are based on total net assets.
REIT Real Estate Investment Trust
(1) This investment is a Wells Fargo Bank, N.A. sponsored collective trust fund.
See accompanying notes to financial statements. 6
WELLS FARGO TARGET TODAY CIT E3
Financial Highlights
Year ended December 31, 2019
Per share operating performance:
Unit value, beginning of year $ 12.88
Income from investment operations:
Net investment income (loss)(1) (0.01)
Net realized and unrealized gain (loss) on investments 1.75
Total from investment operations 1.74
Unit value, end of year $ 14.62
Total return per unit 13.51%
Net assets, end of year $ 37,492,517
Ratios:
Ratio of expenses to average net assets(2) 0.06%
Ratio of net investment income (loss) to average net assets (0.06)%
Portfolio Turnover Rate 48%
(1) Based on average number of units outstanding. (2) Expense ratios do not include expenses for the Underlying Funds.
See accompanying notes to financial statements. 7
WELLS FARGO TARGET TODAY CIT E3
Supplemental Schedule of Monthly Values (Unaudited)
Year ended December 31, 2019
Units Unit
outstanding valuation
January 31, 2019 1,931,370 $ 13.30
February 28, 2019 1,999,295 13.43
March 31, 2019 1,974,502 13.64
April 30, 2019 2,016,851 13.74
May 31, 2019 2,052,311 13.69
June 30, 2019 2,117,380 14.05
July 31, 2019 2,124,934 14.09
August 31, 2019 2,158,114 14.27
September 30, 2019 2,239,942 14.31
October 31, 2019 2,299,111 14.42
November 30, 2019 2,325,865 14.50
December 31, 2019 2,563,994 14.62
See accompanying notes to financial statements. 8
WELLS FARGO TARGET 2010 CIT E3
Statement of Assets and Liabilities
December 31, 2019
Cost
Fair
value
Assets:
Investments $ 49,115,286 $ 53,703,229
Receivable for investment securities sold 43,449
Total assets 53,746,678
Liabilities:
Fund shares repurchased 43,450
Trustee expenses 2,703
Total liabilities 46,153
Net assets $ 53,700,525
Units outstanding 3,521,147
Unit value $ 15.25
See accompanying notes to financial statements. 9
WELLS FARGO TARGET 2010 CIT E3
Statement of Operations
Year ended December 31, 2019
Expenses:
Administration, Advisory, and/or Trustee Fees $ 26,935
Total expenses 26,935
Net investment income (loss) (26,935)
Realized and unrealized gain (loss) on investment transaction:
Net realized gain (loss) on:
Investments 500,293
Net change in unrealized appreciation (depreciation) on:
Investments 5,260,279
Net gain (loss) on investment transactions 5,760,572
Net change in net assets resulting from operations $ 5,733,637
Statement of Changes in Net Assets
Year ended December 31, 2019
Increase/(decrease) in net assets from operations:
Net investment income (loss) $ (26,935)
Net realized gain (loss) on investment transactions 500,293
Net change in unrealized appreciation (depreciation) of investments 5,260,279
Net increase (decrease) in net assets resulting from
operations 5,733,637
Participating unit holder transactions:
Proceeds from issuance of units (1,324,033 units) 19,255,623
Payments for withdrawals (547,424 units) (7,949,921)
Net Change 11,305,702
Change in net assets derived from unit transactions 11,305,702
Total increase (decrease) in net assets 17,039,339
Net assets:
Beginning of year (2,744,538 units) 36,661,186
End of year (3,521,147 units) $ 53,700,525
WELLS FARGO TARGET 2010 CIT E3
Schedule of Investments
December 31, 2019
See accompanying notes to financial statements. 10
Shares Cost
Fair
Value ___________ ____________ ______________
Collective Investment Funds: 100.01%
Wells Fargo Bloomberg Barclays US
Aggregate ex-Corporate Index CIT G (1) 1,599,421 $ 16,285,627 $ 17,250,720
Wells Fargo Emerging Markets Bond Index
CIT G (1) 134,408 1,358,180 1,471,745
Wells Fargo Factor Enhanced Emerging
Markets Index CIT G (1) 133,890 1,285,750 1,350,644
Wells Fargo Factor Enhanced International
Index CIT G (1) 407,138 4,086,654 4,508,733
Wells Fargo Factor Enhanced Large Cap
Index CIT G (1) 674,233 7,298,351 8,718,442
Wells Fargo Factor Enhanced Small Cap
Index CIT G (1) 189,928 1,960,613 2,175,166
Wells Fargo High Yield Corporate Bond
Index CIT G (1) 132,795 1,352,849 1,471,679
Wells Fargo Investment Grade Corporate
Bond Index CIT G (1) 802,928 8,179,768 8,962,768
Wells Fargo Strategic Retirement Bond Index
CIT G (1) 587,635 5,970,784 6,267,481
Wells Fargo US REIT Index CIT G (1) 126,284 1,336,710 1,525,851 ____________________________________ ____________________________________
Total Collective Investment Funds 49,115,286 53,703,229 ____________________________________ ____________________________________
Total Investments: 100.01% $ 49,115,286 $ 53,703,229 ____________________________________ ____________________________________ ____________________________________ ____________________________________
Percentages shown are based on total inet assets.
REIT Real Estate Investment Trust
(1) This investment is a Wells Fargo Bank, N.A. sponsored collective trust fund.
See accompanying notes to financial statements. 11
WELLS FARGO TARGET 2010 CIT E3
Financial Highlights
Year ended December 31, 2019
Per share operating performance:
Unit value, beginning of year $ 13.36
Income from investment operations:
Net investment income (loss)(1) (0.01)
Net realized and unrealized gain (loss) on investments 1.90
Total from investment operations 1.89
Unit value, end of year $ 15.25
Total return per unit 14.15%
Net assets, end of year $ 53,700,525
Ratios:
Ratio of expenses to average net assets(2) 0.06%
Ratio of net investment income (loss) to average net assets (0.06)%
Portfolio Turnover Rate 19%
(1) Based on average number of units outstanding. (2) Expense ratios do not include expenses for the Underlying Funds.
See accompanying notes to financial statements. 12
WELLS FARGO TARGET 2010 CIT E3
Supplemental Schedule of Monthly Values (Unaudited)
Year ended December 31, 2019
Units Unit
outstanding valuation
January 31, 2019 2,797,973 $ 13.84
February 28, 2019 2,866,550 13.98
March 31, 2019 2,883,466 14.19
April 30, 2019 2,914,212 14.32
May 31, 2019 3,050,649 14.23
June 30, 2019 3,066,508 14.62
July 31, 2019 3,129,511 14.67
August 31, 2019 3,188,466 14.83
September 30, 2019 3,289,414 14.89
October 31, 2019 3,333,464 15.02
November 30, 2019 3,453,432 15.11
December 31, 2019 3,521,147 15.25
See accompanying notes to financial statements. 13
WELLS FARGO TARGET 2015 CIT E3
Statement of Assets and Liabilities
December 31, 2019
Cost
Fair
value
Assets:
Investments $ 145,923,345 $ 160,849,939
Receivable for investment securities sold 161,094
Total assets 161,011,033
Liabilities:
Fund shares repurchased 161,094
Trustee expenses 8,167
Total liabilities 169,261
Net assets $ 160,841,772
Units outstanding 10,054,242
Unit value $ 16.00
See accompanying notes to financial statements. 14
WELLS FARGO TARGET 2015 CIT E3
Statement of Operations
Year ended December 31, 2019
Expenses:
Administration, Advisory, and/or Trustee Fees $ 85,769
Total expenses 85,769
Net investment income (loss) (85,769)
Realized and unrealized gain (loss) on investment transaction:
Net realized gain (loss) on:
Investments 1,658,598
Net change in unrealized appreciation (depreciation) on:
Investments 17,405,501
Net gain (loss) on investment transactions 19,064,099
Net change in net assets resulting from operations $ 18,978,330
Statement of Changes in Net Assets
Year ended December 31, 2019
Increase/(decrease) in net assets from operations:
Net investment income (loss) $ (85,769)
Net realized gain (loss) on investment transactions 1,658,598
Net change in unrealized appreciation (depreciation) of investments 17,405,501
Net increase (decrease) in net assets resulting from
operations 18,978,330
Participating unit holder transactions:
Proceeds from issuance of units (2,253,555 units) 34,746,271
Payments for withdrawals (1,602,268 units) (24,297,665)
Net Change 10,448,606
Change in net assets derived from unit transactions 10,448,606
Total increase (decrease) in net assets 29,426,936
Net assets:
Beginning of year (9,402,955 units) 131,414,836
End of year (10,054,242 units) $ 160,841,772
WELLS FARGO TARGET 2015 CIT E3
Schedule of Investments
December 31, 2019
See accompanying notes to financial statements. 15
Shares Cost
Fair
Value ___________ ____________ ______________
Collective Investment Funds: 100.01%
Wells Fargo Bloomberg Barclays US
Aggregate ex-Corporate Index CIT G (1) 4,629,481 $ 46,883,918 $ 49,931,730
Wells Fargo Emerging Markets Bond Index
CIT G (1) 388,867 3,905,614 4,258,017
Wells Fargo Factor Enhanced Emerging
Markets Index CIT G (1) 424,635 4,116,512 4,283,588
Wells Fargo Factor Enhanced International
Index CIT G (1) 1,291,221 12,991,748 14,299,243
Wells Fargo Factor Enhanced Large Cap
Index CIT G (1) 2,137,533 22,672,258 27,640,231
Wells Fargo Factor Enhanced Small Cap
Index CIT G (1) 602,165 6,213,339 6,896,352
Wells Fargo High Yield Corporate Bond
Index CIT G (1) 384,205 3,881,941 4,257,870
Wells Fargo Investment Grade Corporate
Bond Index CIT G (1) 2,324,063 23,529,231 25,942,581
Wells Fargo Strategic Retirement Bond Index
CIT G (1) 1,734,798 17,539,641 18,502,659
Wells Fargo US REIT Index CIT G (1) 400,380 4,189,143 4,837,668 ____________________________________ ____________________________________
Total Collective Investment Funds 145,923,345 160,849,939 ____________________________________ ____________________________________
Total Investments: 100.01% $ 145,923,345 $ 160,849,939 ____________________________________ ____________________________________ ____________________________________ ____________________________________
Percentages shown are based on total net assets.
REIT Real Estate Investment Trust
(1) This investment is a Wells Fargo Bank, N.A. sponsored collective trust fund.
See accompanying notes to financial statements. 16
WELLS FARGO TARGET 2015 CIT E3
Financial Highlights
Year ended December 31, 2019
Per share operating performance:
Unit value, beginning of year $ 13.98
Income from investment operations:
Net investment income (loss)(1) (0.01)
Net realized and unrealized gain (loss) on investments 2.03
Total from investment operations 2.02
Unit value, end of year $ 16.00
Total return per unit 14.45%
Net assets, end of year $ 160,841,772
Ratios:
Ratio of expenses to average net assets(2) 0.06%
Ratio of net investment income (loss) to average net assets (0.06)%
Portfolio Turnover Rate 19%
(1) Based on average number of units outstanding. (2) Expense ratios do not include expenses for the Underlying Funds.
See accompanying notes to financial statements. 17
WELLS FARGO TARGET 2015 CIT E3
Supplemental Schedule of Monthly Values (Unaudited)
Year ended December 31, 2019
Units Unit
outstanding valuation
January 31, 2019 9,369,271 $ 14.50
February 28, 2019 9,362,278 14.66
March 31, 2019 9,295,161 14.87
April 30, 2019 9,328,421 15.01
May 31, 2019 9,228,971 14.90
June 30, 2019 9,155,391 15.32
July 31, 2019 9,394,315 15.37
August 31, 2019 9,353,036 15.53
September 30, 2019 9,267,829 15.60
October 31, 2019 9,285,401 15.74
November 30, 2019 10,008,203 15.84
December 31, 2019 10,054,242 16.00
See accompanying notes to financial statements. 18
WELLS FARGO TARGET 2020 CIT E3
Statement of Assets and Liabilities
December 31, 2019
Cost
Fair
value
Assets:
Investments $ 512,331,809 $ 571,490,351
Receivable for investment securities sold 287,910
Total assets 571,778,261
Liabilities:
Fund shares repurchased 287,910
Trustee expenses 28,840
Total liabilities 316,750
Net assets $ 571,461,511
Units outstanding 32,751,820
Unit value $ 17.45
See accompanying notes to financial statements. 19
WELLS FARGO TARGET 2020 CIT E3
Statement of Operations
Year ended December 31, 2019
Expenses:
Administration, Advisory, and/or Trustee Fees $ 303,649
Total expenses 303,649
Net investment income (loss) (303,649)
Realized and unrealized gain (loss) on investment transaction:
Net realized gain (loss) on:
Investments 5,185,204
Net change in unrealized appreciation (depreciation) on:
Investments 69,202,252
Net gain (loss) on investment transactions 74,387,456
Net change in net assets resulting from operations $ 74,083,807
Statement of Changes in Net Assets
Year ended December 31, 2019
Increase/(decrease) in net assets from operations:
Net investment income (loss) $ (303,649)
Net realized gain (loss) on investment transactions 5,185,204
Net change in unrealized appreciation (depreciation) of investments 69,202,252
Net increase (decrease) in net assets resulting from
operations 74,083,807
Participating unit holder transactions:
Proceeds from issuance of units (7,133,037 units) 118,304,059
Payments for withdrawals (3,920,837 units) (64,586,706)
Net Change 53,717,353
Change in net assets derived from unit transactions 53,717,353
Total increase (decrease) in net assets 127,801,160
Net assets:
Beginning of year (29,539,620 units) 443,660,351
End of year (32,751,820 units) $ 571,461,511
WELLS FARGO TARGET 2020 CIT E3
Schedule of Investments
December 31, 2019
See accompanying notes to financial statements. 20
Shares Cost
Fair
Value ___________ ____________ ______________
Collective Investment Funds: 100.01%
Wells Fargo Bloomberg Barclays US
Aggregate ex-Corporate Index CIT G (1) 14,091,871 $ 142,603,490 $ 151,989,282
Wells Fargo Emerging Markets Bond Index
CIT G (1) 1,181,207 11,872,770 12,933,985
Wells Fargo Factor Enhanced Emerging
Markets Index CIT G (1) 2,029,068 19,711,552 20,468,633
Wells Fargo Factor Enhanced International
Index CIT G (1) 6,163,523 61,867,171 68,256,085
Wells Fargo Factor Enhanced Large Cap
Index CIT G (1) 10,009,590 104,743,013 129,433,013
Wells Fargo Factor Enhanced Small Cap
Index CIT G (1) 2,827,514 28,885,933 32,382,389
Wells Fargo High Yield Corporate Bond
Index CIT G (1) 1,166,996 11,807,962 12,933,002
Wells Fargo Investment Grade Corporate
Bond Index CIT G (1) 7,074,622 71,598,945 78,971,176
Wells Fargo Strategic Retirement Bond Index
CIT G (1) 4,287,115 43,372,113 45,724,655
Wells Fargo US REIT Index CIT G (1) 1,522,684 15,868,860 18,398,131 ____________________________________ ____________________________________
Total Collective Investment Funds 512,331,809 571,490,351 ____________________________________ ____________________________________
Total Investments: 100.01% $ 512,331,809 $ 571,490,351 ____________________________________ ____________________________________ ____________________________________ ____________________________________
Percentages shown are based on total net assets.
REIT Real Estate Investment Trust
(1) This investment is a Wells Fargo Bank, N.A. sponsored collective trust fund.
See accompanying notes to financial statements. 21
WELLS FARGO TARGET 2020 CIT E3
Financial Highlights
Year ended December 31, 2019
Per share operating performance:
Unit value, beginning of year $ 15.02
Income from investment operations:
Net investment income (loss)(1) (0.01)
Net realized and unrealized gain (loss) on investments 2.44
Total from investment operations 2.43
Unit value, end of year $ 17.45
Total return per unit 16.18%
Net assets, end of year $ 571,461,511
Ratios:
Ratio of expenses to average net assets(2) 0.06%
Ratio of net investment income (loss) to average net assets (0.06)%
Portfolio Turnover Rate 16%
(1) Based on average number of units outstanding. (2) Expense ratios do not include expenses for the Underlying Funds.
See accompanying notes to financial statements. 22
WELLS FARGO TARGET 2020 CIT E3
Supplemental Schedule of Monthly Values (Unaudited)
Year ended December 31, 2019
Units Unit
outstanding valuation
January 31, 2019 29,772,086 $ 15.68
February 28, 2019 29,960,415 15.91
March 31, 2019 30,041,692 16.12
April 30, 2019 30,177,096 16.31
May 31, 2019 30,822,576 16.08
June 30, 2019 30,734,719 16.61
July 31, 2019 30,977,754 16.66
August 31, 2019 30,947,440 16.77
September 30, 2019 30,770,963 16.90
October 31, 2019 30,806,581 17.08
November 30, 2019 32,520,889 17.22
December 31, 2019 32,751,820 17.45
See accompanying notes to financial statements. 23
WELLS FARGO TARGET 2025 CIT E3
Statement of Assets and Liabilities
December 31, 2019
Cost
Fair
value
Assets:
Investments $ 937,244,183 $ 1,055,076,580
Receivable for investment securities sold 1,070,312
Total assets 1,056,146,892
Liabilities:
Fund shares repurchased 1,070,312
Trustee expenses 53,056
Total liabilities 1,123,368
Net assets $ 1,055,023,524
Units outstanding 55,043,147
Unit value $ 19.17
See accompanying notes to financial statements. 24
WELLS FARGO TARGET 2025 CIT E3
Statement of Operations
Year ended December 31, 2019
Expenses:
Administration, Advisory, and/or Trustee Fees $ 548,246
Total expenses 548,246
Net investment income (loss) (548,246)
Realized and unrealized gain (loss) on investment transaction:
Net realized gain (loss) on:
Investments 6,770,184
Net change in unrealized appreciation (depreciation) on:
Investments 138,255,767
Net gain (loss) on investment transactions 145,025,951
Net change in net assets resulting from operations $ 144,477,705
Statement of Changes in Net Assets
Year ended December 31, 2019
Increase/(decrease) in net assets from operations:
Net investment income (loss) $ (548,246)
Net realized gain (loss) on investment transactions 6,770,184
Net change in unrealized appreciation (depreciation) of investments 138,255,767
Net increase (decrease) in net assets resulting from
operations 144,477,705
Participating unit holder transactions:
Proceeds from issuance of units (10,716,518 units) 194,649,190
Payments for withdrawals (3,690,707 units) (66,376,146)
Net Change 128,273,044
Change in net assets derived from unit transactions 128,273,044
Total increase (decrease) in net assets 272,750,749
Net assets:
Beginning of year (48,017,336 units) 782,272,775
End of year (55,043,147 units) $ 1,055,023,524
WELLS FARGO TARGET 2025 CIT E3
Schedule of Investments
December 31, 2019
See accompanying notes to financial statements. 25
Shares Cost
Fair
Value ___________ ____________ ______________
Collective Investment Funds: 100.01%
Wells Fargo Bloomberg Barclays US
Aggregate ex-Corporate Index CIT G (1) 23,422,262 $ 237,313,089 $ 252,623,147
Wells Fargo Emerging Markets Bond Index
CIT G (1) 1,946,200 19,557,408 21,310,496
Wells Fargo Factor Enhanced Emerging
Markets Index CIT G (1) 4,755,516 46,428,313 47,972,216
Wells Fargo Factor Enhanced International
Index CIT G (1) 14,431,160 144,799,977 159,813,547
Wells Fargo Factor Enhanced Large Cap
Index CIT G (1) 22,424,741 232,451,297 289,972,079
Wells Fargo Factor Enhanced Small Cap
Index CIT G (1) 6,345,028 64,619,587 72,667,064
Wells Fargo High Yield Corporate Bond
Index CIT G (1) 1,922,855 19,456,642 21,309,651
Wells Fargo Investment Grade Corporate
Bond Index CIT G (1) 11,761,909 119,098,944 131,293,487
Wells Fargo Strategic Retirement Bond Index
CIT G (1) 3,495,603 35,406,865 37,282,704
Wells Fargo US REIT Index CIT G (1) 1,724,134 18,112,061 20,832,189 ____________________________________ ____________________________________
Total Collective Investment Funds 937,244,183 1,055,076,580 ____________________________________ ____________________________________
Total Investments: 100.01% $ 937,244,183 $ 1,055,076,580 ____________________________________ ____________________________________ ____________________________________ ____________________________________
Percentages shown are based on total net assets.
REIT Real Estate Investment Trust
(1) This investment is a Wells Fargo Bank, N.A. sponsored collective trust fund.
See accompanying notes to financial statements. 26
WELLS FARGO TARGET 2025 CIT E3
Financial Highlights
Year ended December 31, 2019
Per share operating performance:
Unit value, beginning of year $ 16.29
Income from investment operations:
Net investment income (loss)(1) (0.01)
Net realized and unrealized gain (loss) on investments 2.89
Total from investment operations 2.88
Unit value, end of year $ 19.17
Total return per unit 17.68%
Net assets, end of year $ 1,055,023,524
Ratios:
Ratio of expenses to average net assets(2) 0.06%
Ratio of net investment income (loss) to average net assets (0.06)%
Portfolio Turnover Rate 11%
(1) Based on average number of units outstanding. (2) Expense ratios do not include expenses for the Underlying Funds.
See accompanying notes to financial statements. 27
WELLS FARGO TARGET 2025 CIT E3
Supplemental Schedule of Monthly Values (Unaudited)
Year ended December 31, 2019
Units Unit
outstanding valuation
January 31, 2019 48,562,447 $ 17.10
February 28, 2019 49,057,126 17.40
March 31, 2019 49,367,718 17.61
April 30, 2019 49,873,424 17.85
May 31, 2019 50,124,704 17.50
June 30, 2019 50,377,789 18.16
July 31, 2019 51,316,049 18.20
August 31, 2019 51,256,001 18.25
September 30, 2019 51,577,395 18.43
October 31, 2019 51,678,353 18.67
November 30, 2019 54,087,754 18.87
December 31, 2019 55,043,147 19.17
See accompanying notes to financial statements. 28
WELLS FARGO TARGET 2030 CIT E3
Statement of Assets and Liabilities
December 31, 2019
Cost
Fair
value
Assets:
Investments $ 1,117,715,276 $ 1,271,914,845
Receivable for investment securities sold 172,337
Total assets 1,272,087,182
Liabilities:
Fund shares repurchased 172,337
Trustee expenses 63,747
Total liabilities 236,084
Net assets $ 1,271,851,098
Units outstanding 61,032,685
Unit value $ 20.84
See accompanying notes to financial statements. 29
WELLS FARGO TARGET 2030 CIT E3
Statement of Operations
Year ended December 31, 2019
Expenses:
Administration, Advisory, and/or Trustee Fees $ 648,687
Total expenses 648,687
Net investment income (loss) (648,687)
Realized and unrealized gain (loss) on investment transaction:
Net realized gain (loss) on:
Investments 5,567,934
Net change in unrealized appreciation (depreciation) on:
Investments 185,542,715
Net gain (loss) on investment transactions 191,110,649
Net change in net assets resulting from operations $ 190,461,962
Statement of Changes in Net Assets
Year ended December 31, 2019
Increase/(decrease) in net assets from operations:
Net investment income (loss) $ (648,687)
Net realized gain (loss) on investment transactions 5,567,934
Net change in unrealized appreciation (depreciation) of investments 185,542,715
Net increase (decrease) in net assets resulting from
operations 190,461,962
Participating unit holder transactions:
Proceeds from issuance of units (12,161,505 units) 237,533,029
Payments for withdrawals (2,652,802 units) (51,514,870)
Net Change 186,018,159
Change in net assets derived from unit transactions 186,018,159
Total increase (decrease) in net assets 376,480,121
Net assets:
Beginning of year (51,523,982 units) 895,370,977
End of year (61,032,685 units) $ 1,271,851,098
WELLS FARGO TARGET 2030 CIT E3
Schedule of Investments
December 31, 2019
See accompanying notes to financial statements. 30
Shares Cost
Fair
Value ___________ ____________ ______________
Collective Investment Funds: 100.01%
Wells Fargo Bloomberg Barclays US
Aggregate ex-Corporate Index CIT G (1) 19,762,952 $ 200,552,233 $ 213,155,290
Wells Fargo Emerging Markets Bond Index
CIT G (1) 1,640,361 16,514,614 17,961,621
Wells Fargo Factor Enhanced Emerging
Markets Index CIT G (1) 7,624,825 74,303,169 76,916,945
Wells Fargo Factor Enhanced International
Index CIT G (1) 23,680,211 237,954,875 262,239,398
Wells Fargo Factor Enhanced Large Cap
Index CIT G (1) 34,701,638 360,211,974 448,723,414
Wells Fargo Factor Enhanced Small Cap
Index CIT G (1) 9,503,849 97,028,958 108,843,784
Wells Fargo High Yield Corporate Bond
Index CIT G (1) 1,620,565 16,427,375 17,959,584
Wells Fargo Investment Grade Corporate
Bond Index CIT G (1) 9,927,826 100,705,389 110,820,356
Wells Fargo Strategic Retirement Bond Index
CIT G (1) 768,753 7,806,323 8,199,210
Wells Fargo US REIT Index CIT G (1) 587,223 6,210,366 7,095,243 ____________________________________ ____________________________________
Total Collective Investment Funds 1,117,715,276 1,271,914,845 ____________________________________ ____________________________________
Total Investments: 100.01% $ 1,117,715,276 $ 1,271,914,845 ____________________________________ ____________________________________ ____________________________________ ____________________________________
Percentages shown are based on total net assets.
REIT Real Estate Investment Trust
(1) This investment is a Wells Fargo Bank, N.A. sponsored collective trust fund.
See accompanying notes to financial statements. 31
WELLS FARGO TARGET 2030 CIT E3
Financial Highlights
Year ended December 31, 2019
Per share operating performance:
Unit value, beginning of year $ 17.38
Income from investment operations:
Net investment income (loss)(1) (0.01)
Net realized and unrealized gain (loss) on investments 3.47
Total from investment operations 3.46
Unit value, end of year $ 20.84
Total return per unit 19.91%
Net assets, end of year $ 1,271,851,098
Ratios:
Ratio of expenses to average net assets(2) 0.06%
Ratio of net investment income (loss) to average net assets (0.06)%
Portfolio Turnover Rate 8%
(1) Based on average number of units outstanding. (2) Expense ratios do not include expenses for the Underlying Funds.
See accompanying notes to financial statements. 32
WELLS FARGO TARGET 2030 CIT E3
Supplemental Schedule of Monthly Values (Unaudited)
Year ended December 31, 2019
Units Unit
outstanding valuation
January 31, 2019 52,226,303 $ 18.40
February 28, 2019 52,946,001 18.80
March 31, 2019 53,315,653 18.98
April 30, 2019 54,122,950 19.32
May 31, 2019 55,108,557 18.74
June 30, 2019 55,589,175 19.58
July 31, 2019 56,626,814 19.62
August 31, 2019 56,855,789 19.55
September 30, 2019 57,253,345 19.82
October 31, 2019 57,601,093 20.14
November 30, 2019 59,912,665 20.42
December 31, 2019 61,032,685 20.84
See accompanying notes to financial statements. 33
WELLS FARGO TARGET 2035 CIT E3
Statement of Assets and Liabilities
December 31, 2019
Cost
Fair
value
Assets:
Investments $ 1,188,566,432 $ 1,365,844,178
Fund shares sold 787,038
Total assets 1,366,631,216
Liabilities:
Payable for investment securities purchased 787,038
Trustee expenses 68,277
Total liabilities 855,315
Net assets $ 1,365,775,901
Units outstanding 60,081,071
Unit value $ 22.73
See accompanying notes to financial statements. 34
WELLS FARGO TARGET 2035 CIT E3
Statement of Operations
Year ended December 31, 2019
Expenses:
Administration, Advisory, and/or Trustee Fees $ 698,370
Total expenses 698,370
Net investment income (loss) (698,370)
Realized and unrealized gain (loss) on investment transaction:
Net realized gain (loss) on:
Investments 5,527,762
Net change in unrealized appreciation (depreciation) on:
Investments 217,837,954
Net gain (loss) on investment transactions 223,365,716
Net change in net assets resulting from operations $ 222,667,346
Statement of Changes in Net Assets
Year ended December 31, 2019
Increase/(decrease) in net assets from operations:
Net investment income (loss) $ (698,370)
Net realized gain (loss) on investment transactions 5,527,762
Net change in unrealized appreciation (depreciation) of investments 217,837,954
Net increase (decrease) in net assets resulting from
operations 222,667,346
Participating unit holder transactions:
Proceeds from issuance of units (11,380,572 units) 241,216,052
Payments for withdrawals (3,060,693 units) (64,212,844)
Net Change 177,003,208
Change in net assets derived from unit transactions 177,003,208
Total increase (decrease) in net assets 399,670,554
Net assets:
Beginning of year (51,761,192 units) 966,105,347
End of year (60,081,071 units) $ 1,365,775,901
WELLS FARGO TARGET 2035 CIT E3
Schedule of Investments
December 31, 2019
See accompanying notes to financial statements. 35
Shares Cost
Fair
Value ___________ ____________ ______________
Collective Investment Funds: 100.00%
Wells Fargo Bloomberg Barclays US
Aggregate ex-Corporate Index CIT G (1) 11,976,509 $ 121,750,879 $ 129,173,836
Wells Fargo Emerging Markets Bond Index
CIT G (1) 997,408 10,058,845 10,921,416
Wells Fargo Factor Enhanced Emerging
Markets Index CIT G (1) 10,029,002 97,976,791 101,169,564
Wells Fargo Factor Enhanced International
Index CIT G (1) 30,631,132 308,200,930 339,215,287
Wells Fargo Factor Enhanced Large Cap
Index CIT G (1) 43,757,790 453,330,707 565,827,609
Wells Fargo Factor Enhanced Small Cap
Index CIT G (1) 12,351,083 126,071,031 141,452,012
Wells Fargo High Yield Corporate Bond
Index CIT G (1) 985,414 10,006,542 10,920,653
Wells Fargo Investment Grade Corporate
Bond Index CIT G (1) 6,016,860 61,170,707 67,163,801 ____________________________________ ____________________________________
Total Collective Investment Funds 1,188,566,432 1,365,844,178 ____________________________________ ____________________________________
Total Investments: 100.00% $ 1,188,566,432 $ 1,365,844,178 ____________________________________ ____________________________________ ____________________________________ ____________________________________
Percentages shown are based on total net assets.
(1) This investment is a Wells Fargo Bank, N.A. sponsored collective trust fund.
See accompanying notes to financial statements. 36
WELLS FARGO TARGET 2035 CIT E3
Financial Highlights
Year ended December 31, 2019
Per share operating performance:
Unit value, beginning of year $ 18.66
Income from investment operations:
Net investment income (loss)(1) (0.01)
Net realized and unrealized gain (loss) on investments 4.08
Total from investment operations 4.07
Unit value, end of year $ 22.73
Total return per unit 21.81%
Net assets, end of year $ 1,365,775,901
Ratios:
Ratio of expenses to average net assets(2) 0.06%
Ratio of net investment income (loss) to average net assets (0.06)%
Portfolio Turnover Rate 8%
(1) Based on average number of units outstanding. (2) Expense ratios do not include expenses for the Underlying Funds.
See accompanying notes to financial statements. 37
WELLS FARGO TARGET 2035 CIT E3
Supplemental Schedule of Monthly Values (Unaudited)
Year ended December 31, 2019
Units Unit
outstanding valuation
January 31, 2019 52,287,864 $ 19.91
February 28, 2019 52,981,737 20.42
March 31, 2019 53,481,150 20.58
April 30, 2019 54,327,275 21.00
May 31, 2019 54,655,183 20.20
June 30, 2019 55,127,679 21.23
July 31, 2019 56,092,486 21.25
August 31, 2019 56,324,948 21.06
September 30, 2019 56,682,312 21.43
October 31, 2019 56,978,713 21.83
November 30, 2019 59,019,547 22.19
December 31, 2019 60,081,071 22.73
See accompanying notes to financial statements. 38
WELLS FARGO TARGET 2040 CIT E3
Statement of Assets and Liabilities
December 31, 2019
Cost
Fair
value
Assets:
Investments $ 1,043,110,657 $ 1,203,148,233
Fund shares sold 259,349
Total assets 1,203,407,582
Liabilities:
Payable for investment securities purchased 259,349
Trustee expenses 60,128
Total liabilities 319,477
Net assets $ 1,203,088,105
Units outstanding 50,223,731
Unit value $ 23.95
See accompanying notes to financial statements. 39
WELLS FARGO TARGET 2040 CIT E3
Statement of Operations
Year ended December 31, 2019
Expenses:
Administration, Advisory, and/or Trustee Fees $ 610,387
Total expenses 610,387
Net investment income (loss) (610,387)
Realized and unrealized gain (loss) on investment transaction:
Net realized gain (loss) on:
Investments 4,412,311
Net change in unrealized appreciation (depreciation) on:
Investments 198,671,647
Net gain (loss) on investment transactions 203,083,958
Net change in net assets resulting from operations $ 202,473,571
Statement of Changes in Net Assets
Year ended December 31, 2019
Increase/(decrease) in net assets from operations:
Net investment income (loss) $ (610,387)
Net realized gain (loss) on investment transactions 4,412,311
Net change in unrealized appreciation (depreciation) of investments 198,671,647
Net increase (decrease) in net assets resulting from
operations 202,473,571
Participating unit holder transactions:
Proceeds from issuance of units (10,418,018 units) 230,882,563
Payments for withdrawals (2,548,577 units) (56,208,195)
Net Change 174,674,368
Change in net assets derived from unit transactions 174,674,368
Total increase (decrease) in net assets 377,147,939
Net assets:
Beginning of year (42,354,290 units) 825,940,166
End of year (50,223,731 units) $ 1,203,088,105
WELLS FARGO TARGET 2040 CIT E3
Schedule of Investments
December 31, 2019
See accompanying notes to financial statements. 40
Shares Cost
Fair
Value ___________ ____________ ______________
Collective Investment Funds: 100.00%
Wells Fargo Bloomberg Barclays US
Aggregate ex-Corporate Index CIT G (1) 5,271,863 $ 53,626,849 $ 56,860,209
Wells Fargo Emerging Markets Bond Index
CIT G (1) 439,258 4,434,344 4,809,789
Wells Fargo Factor Enhanced Emerging
Markets Index CIT G (1) 10,076,518 98,381,324 101,648,889
Wells Fargo Factor Enhanced International
Index CIT G (1) 30,734,308 309,210,697 340,357,874
Wells Fargo Factor Enhanced Large Cap
Index CIT G (1) 41,148,969 427,381,152 532,093,202
Wells Fargo Factor Enhanced Small Cap
Index CIT G (1) 11,614,997 118,718,926 133,021,917
Wells Fargo High Yield Corporate Bond
Index CIT G (1) 433,962 4,413,226 4,809,296
Wells Fargo Investment Grade Corporate
Bond Index CIT G (1) 2,646,969 26,944,139 29,547,057 ____________________________________ ____________________________________
Total Collective Investment Funds 1,043,110,657 1,203,148,233 ____________________________________ ____________________________________
Total Investments: 100.00% $ 1,043,110,657 $ 1,203,148,233 ____________________________________ ____________________________________ ____________________________________ ____________________________________
Percentages shown are based on total net assets.
(1) This investment is a Wells Fargo Bank, N.A. sponsored collective trust fund.
See accompanying notes to financial statements. 41
WELLS FARGO TARGET 2040 CIT E3
Financial Highlights
Year ended December 31, 2019
Per share operating performance:
Unit value, beginning of year $ 19.50
Income from investment operations:
Net investment income (loss)(1) (0.01)
Net realized and unrealized gain (loss) on investments 4.46
Total from investment operations 4.45
Unit value, end of year $ 23.95
Total return per unit 22.82%
Net assets, end of year $ 1,203,088,105
Ratios:
Ratio of expenses to average net assets(2) 0.06%
Ratio of net investment income (loss) to average net assets (0.06)%
Portfolio Turnover Rate 7%
(1) Based on average number of units outstanding. (2) Expense ratios do not include expenses for the Underlying Funds.
See accompanying notes to financial statements. 42
WELLS FARGO TARGET 2040 CIT E3
Supplemental Schedule of Monthly Values (Unaudited)
Year ended December 31, 2019
Units Unit
outstanding valuation
January 31, 2019 42,929,385 $ 20.89
February 28, 2019 43,650,326 21.48
March 31, 2019 44,087,898 21.61
April 30, 2019 45,068,460 22.10
May 31, 2019 45,756,437 21.15
June 30, 2019 46,081,598 22.29
July 31, 2019 46,788,063 22.30
August 31, 2019 47,132,986 22.03
September 30, 2019 47,443,036 22.46
October 31, 2019 47,822,718 22.92
November 30, 2019 49,489,162 23.33
December 31, 2019 50,223,731 23.95
See accompanying notes to financial statements. 43
WELLS FARGO TARGET 2045 CIT E3
Statement of Assets and Liabilities
December 31, 2019
Cost
Fair
value
Assets:
Investments $ 859,043,225 $ 990,242,062
Receivable for investment securities sold 463,476
Total assets 990,705,538
Liabilities:
Fund shares repurchased 463,476
Trustee expenses 49,431
Total liabilities 512,907
Net assets $ 990,192,631
Units outstanding 40,010,394
Unit value $ 24.75
See accompanying notes to financial statements. 44
WELLS FARGO TARGET 2045 CIT E3
Statement of Operations
Year ended December 31, 2019
Expenses:
Administration, Advisory, and/or Trustee Fees $ 497,207
Total expenses 497,207
Net investment income (loss) (497,207)
Realized and unrealized gain (loss) on investment transaction:
Net realized gain (loss) on:
Investments 3,784,077
Net change in unrealized appreciation (depreciation) on:
Investments 163,958,764
Net gain (loss) on investment transactions 167,742,841
Net change in net assets resulting from operations $ 167,245,634
Statement of Changes in Net Assets
Year ended December 31, 2019
Increase/(decrease) in net assets from operations:
Net investment income (loss) $ (497,207)
Net realized gain (loss) on investment transactions 3,784,077
Net change in unrealized appreciation (depreciation) of investments 163,958,764
Net increase (decrease) in net assets resulting from
operations 167,245,634
Participating unit holder transactions:
Proceeds from issuance of units (9,109,162 units) 208,535,858
Payments for withdrawals (2,208,840 units) (50,285,388)
Net Change 158,250,470
Change in net assets derived from unit transactions 158,250,470
Total increase (decrease) in net assets 325,496,104
Net assets:
Beginning of year (33,110,072 units) 664,696,527
End of year (40,010,394 units) $ 990,192,631
WELLS FARGO TARGET 2045 CIT E3
Schedule of Investments
December 31, 2019
See accompanying notes to financial statements. 45
Shares Cost
Fair
Value ___________ ____________ ______________
Collective Investment Funds: 100.00%
Wells Fargo Bloomberg Barclays US
Aggregate ex-Corporate Index CIT G (1) 2,711,934 $ 27,624,901 $ 29,249,840
Wells Fargo Emerging Markets Bond Index
CIT G (1) 226,054 2,285,613 2,475,250
Wells Fargo Factor Enhanced Emerging
Markets Index CIT G (1) 8,564,775 83,599,695 86,398,876
Wells Fargo Factor Enhanced International
Index CIT G (1) 26,124,476 263,197,028 289,307,672
Wells Fargo Factor Enhanced Large Cap
Index CIT G (1) 34,963,789 365,062,862 452,113,265
Wells Fargo Factor Enhanced Small Cap
Index CIT G (1) 9,869,166 101,112,179 113,027,607
Wells Fargo High Yield Corporate Bond
Index CIT G (1) 223,323 2,275,091 2,474,928
Wells Fargo Investment Grade Corporate
Bond Index CIT G (1) 1,361,208 13,885,856 15,194,624 ____________________________________ ____________________________________
Total Collective Investment Funds 859,043,225 990,242,062 ____________________________________ ____________________________________
Total Investments: 100.00% $ 859,043,225 $ 990,242,062 ____________________________________ ____________________________________ ____________________________________ ____________________________________
Percentages shown are based on total net assets.
(1) This investment is a Wells Fargo Bank, N.A. sponsored collective trust fund.
See accompanying notes to financial statements. 46
WELLS FARGO TARGET 2045 CIT E3
Financial Highlights
Year ended December 31, 2019
Per share operating performance:
Unit value, beginning of year $ 20.08
Income from investment operations:
Net investment income (loss)(1) (0.01)
Net realized and unrealized gain (loss) on investments 4.68
Total from investment operations 4.67
Unit value, end of year $ 24.75
Total return per unit 23.26%
Net assets, end of year $ 990,192,631
Ratios:
Ratio of expenses to average net assets(2) 0.06%
Ratio of net investment income (loss) to average net assets (0.06)%
Portfolio Turnover Rate 8%
(1) Based on average number of units outstanding. (2) Expense ratios do not include expenses for the Underlying Funds.
See accompanying notes to financial statements. 47
WELLS FARGO TARGET 2045 CIT E3
Supplemental Schedule of Monthly Values (Unaudited)
Year ended December 31, 2019
Units Unit
outstanding valuation
January 31, 2019 33,563,093 $ 21.54
February 28, 2019 34,239,400 22.17
March 31, 2019 34,650,576 22.30
April 30, 2019 35,657,776 22.81
May 31, 2019 35,975,407 21.79
June 30, 2019 36,329,205 23.00
July 31, 2019 36,986,580 23.01
August 31, 2019 37,244,106 22.70
September 30, 2019 37,623,761 23.16
October 31, 2019 37,894,987 23.65
November 30, 2019 39,369,747 24.08
December 31, 2019 40,010,394 24.75
See accompanying notes to financial statements. 48
WELLS FARGO TARGET 2050 CIT E3
Statement of Assets and Liabilities
December 31, 2019
Cost
Fair
value
Assets:
Investments $ 607,502,455 $ 696,228,168
Fund shares sold 8,414
Total assets 696,236,582
Liabilities:
Payable for investment securities purchased 8,414
Trustee expenses 34,664
Total liabilities 43,078
Net assets $ 696,193,504
Units outstanding 27,993,972
Unit value $ 24.87
See accompanying notes to financial statements. 49
WELLS FARGO TARGET 2050 CIT E3
Statement of Operations
Year ended December 31, 2019
Expenses:
Administration, Advisory, and/or Trustee Fees $ 339,390
Total expenses 339,390
Net investment income (loss) (339,390)
Realized and unrealized gain (loss) on investment transaction:
Net realized gain (loss) on:
Investments 2,562,245
Net change in unrealized appreciation (depreciation) on:
Investments 110,989,116
Net gain (loss) on investment transactions 113,551,361
Net change in net assets resulting from operations $ 113,211,971
Statement of Changes in Net Assets
Year ended December 31, 2019
Increase/(decrease) in net assets from operations:
Net investment income (loss) $ (339,390)
Net realized gain (loss) on investment transactions 2,562,245
Net change in unrealized appreciation (depreciation) of investments 110,989,116
Net increase (decrease) in net assets resulting from
operations 113,211,971
Participating unit holder transactions:
Proceeds from issuance of units (8,099,162 units) 185,960,786
Payments for withdrawals (1,621,111 units) (37,029,712)
Net Change 148,931,074
Change in net assets derived from unit transactions 148,931,074
Total increase (decrease) in net assets 262,143,045
Net assets:
Beginning of year (21,515,921 units) 434,050,459
End of year (27,993,972 units) $ 696,193,504
WELLS FARGO TARGET 2050 CIT E3
Schedule of Investments
December 31, 2019
See accompanying notes to financial statements. 50
Shares Cost
Fair
Value ___________ ____________ ______________
Collective Investment Funds: 100.00%
Wells Fargo Bloomberg Barclays US
Aggregate ex-Corporate Index CIT G (1) 1,905,881 $ 19,462,670 $ 20,556,067
Wells Fargo Emerging Markets Bond Index
CIT G (1) 158,861 1,610,228 1,739,499
Wells Fargo Factor Enhanced Emerging
Markets Index CIT G (1) 6,019,082 58,581,001 60,718,696
Wells Fargo Factor Enhanced International
Index CIT G (1) 18,359,496 185,186,103 203,316,730
Wells Fargo Factor Enhanced Large Cap
Index CIT G (1) 24,591,025 259,902,922 317,984,082
Wells Fargo Factor Enhanced Small Cap
Index CIT G (1) 6,941,236 71,370,292 79,495,194
Wells Fargo High Yield Corporate Bond
Index CIT G (1) 156,942 1,603,999 1,739,277
Wells Fargo Investment Grade Corporate
Bond Index CIT G (1) 956,643 9,785,240 10,678,623 ____________________________________ ____________________________________
Total Collective Investment Funds 607,502,455 696,228,168 ____________________________________ ____________________________________
Total Investments: 100.00% $ 607,502,455 $ 696,228,168 ____________________________________ ____________________________________ ____________________________________ ____________________________________
Percentages shown are based on total net assets.
(1) This investment is a Wells Fargo Bank, N.A. sponsored collective trust fund.
See accompanying notes to financial statements. 51
WELLS FARGO TARGET 2050 CIT E3
Financial Highlights
Year ended December 31, 2019
Per share operating performance:
Unit value, beginning of year $ 20.17
Income from investment operations:
Net investment income (loss)(1) (0.01)
Net realized and unrealized gain (loss) on investments 4.71
Total from investment operations 4.70
Unit value, end of year $ 24.87
Total return per unit 23.30%
Net assets, end of year $ 696,193,504
Ratios:
Ratio of expenses to average net assets(2) 0.06%
Ratio of net investment income (loss) to average net assets (0.06)%
Portfolio Turnover Rate 8%
(1) Based on average number of units outstanding. (2) Expense ratios do not include expenses for the Underlying Funds.
See accompanying notes to financial statements. 52
WELLS FARGO TARGET 2050 CIT E3
Supplemental Schedule of Monthly Values (Unaudited)
Year ended December 31, 2019
Units Unit
outstanding valuation
January 31, 2019 21,890,152 $ 21.65
February 28, 2019 22,466,832 22.28
March 31, 2019 22,864,937 22.40
April 30, 2019 23,869,808 22.93
May 31, 2019 24,535,378 21.90
June 30, 2019 24,807,899 23.11
July 31, 2019 25,387,835 23.12
August 31, 2019 25,662,040 22.81
September 30, 2019 25,945,490 23.28
October 31, 2019 26,241,714 23.77
November 30, 2019 27,410,536 24.20
December 31, 2019 27,993,972 24.87
See accompanying notes to financial statements. 53
WELLS FARGO TARGET 2055 CIT E3
Statement of Assets and Liabilities
December 31, 2019
Cost
Fair
value
Assets:
Investments $ 255,335,939 $ 289,949,921
Receivable for investment securities sold 36,938
Total assets 289,986,859
Liabilities:
Fund shares repurchased 36,938
Trustee expenses 14,397
Total liabilities 51,335
Net assets $ 289,935,524
Units outstanding 14,624,559
Unit value $ 19.83
See accompanying notes to financial statements. 54
WELLS FARGO TARGET 2055 CIT E3
Statement of Operations
Year ended December 31, 2019
Expenses:
Administration, Advisory, and/or Trustee Fees $ 134,990
Total expenses 134,990
Net investment income (loss) (134,990)
Realized and unrealized gain (loss) on investment transaction:
Net realized gain (loss) on:
Investments 1,047,829
Net change in unrealized appreciation (depreciation) on:
Investments 43,506,833
Net gain (loss) on investment transactions 44,554,662
Net change in net assets resulting from operations $ 44,419,672
Statement of Changes in Net Assets
Year ended December 31, 2019
Increase/(decrease) in net assets from operations:
Net investment income (loss) $ (134,990)
Net realized gain (loss) on investment transactions 1,047,829
Net change in unrealized appreciation (depreciation) of investments 43,506,833
Net increase (decrease) in net assets resulting from
operations 44,419,672
Participating unit holder transactions:
Proceeds from issuance of units (5,605,793 units) 102,623,371
Payments for withdrawals (971,678 units) (17,771,408)
Net Change 84,851,963
Change in net assets derived from unit transactions 84,851,963
Total increase (decrease) in net assets 129,271,635
Net assets:
Beginning of year (9,990,444 units) 160,663,889
End of year (14,624,559 units) $ 289,935,524
WELLS FARGO TARGET 2055 CIT E3
Schedule of Investments
December 31, 2019
See accompanying notes to financial statements. 55
Shares Cost
Fair
Value ___________ ____________ ______________
Collective Investment Funds: 100.00%
Wells Fargo Bloomberg Barclays US
Aggregate ex-Corporate Index CIT G (1) 793,803 $ 8,125,615 $ 8,561,645
Wells Fargo Emerging Markets Bond Index
CIT G (1) 66,168 672,449 724,524
Wells Fargo Factor Enhanced Emerging
Markets Index CIT G (1) 2,506,973 24,298,749 25,289,592
Wells Fargo Factor Enhanced International
Index CIT G (1) 7,646,828 77,310,398 84,682,501
Wells Fargo Factor Enhanced Large Cap
Index CIT G (1) 10,240,274 110,217,931 132,415,960
Wells Fargo Factor Enhanced Small Cap
Index CIT G (1) 2,890,496 29,952,362 33,103,690
Wells Fargo High Yield Corporate Bond
Index CIT G (1) 65,368 670,878 724,430
Wells Fargo Investment Grade Corporate
Bond Index CIT G (1) 398,436 4,087,557 4,447,579 ____________________________________ ____________________________________
Total Collective Investment Funds 255,335,939 289,949,921 ____________________________________ ____________________________________
Total Investments: 100.00% $ 255,335,939 $ 289,949,921 ____________________________________ ____________________________________ ____________________________________ ____________________________________
Percentages shown are based on total net assets.
(1) This investment is a Wells Fargo Bank, N.A. sponsored collective trust fund.
See accompanying notes to financial statements. 56
WELLS FARGO TARGET 2055 CIT E3
Financial Highlights
Year ended December 31, 2019
Per share operating performance:
Unit value, beginning of year $ 16.08
Income from investment operations:
Net investment income (loss)(1) (0.01)
Net realized and unrealized gain (loss) on investments 3.76
Total from investment operations 3.75
Unit value, end of year $ 19.83
Total return per unit 23.32%
Net assets, end of year $ 289,935,524
Ratios:
Ratio of expenses to average net assets(2) 0.06%
Ratio of net investment income (loss) to average net assets (0.06)%
Portfolio Turnover Rate 9%
(1) Based on average number of units outstanding. (2) Expense ratios do not include expenses for the Underlying Funds.
See accompanying notes to financial statements. 57
WELLS FARGO TARGET 2055 CIT E3
Supplemental Schedule of Monthly Values (Unaudited)
Year ended December 31, 2019
Units Unit
outstanding valuation
January 31, 2019 10,291,639 $ 17.26
February 28, 2019 10,644,806 17.76
March 31, 2019 10,945,965 17.86
April 30, 2019 11,917,529 18.28
May 31, 2019 12,129,691 17.46
June 30, 2019 12,340,695 18.42
July 31, 2019 12,743,982 18.43
August 31, 2019 12,993,747 18.18
September 30, 2019 13,206,277 18.56
October 31, 2019 13,444,403 18.95
November 30, 2019 14,241,943 19.29
December 31, 2019 14,624,559 19.83
See accompanying notes to financial statements. 58
WELLS FARGO TARGET 2060 CIT E3
Statement of Assets and Liabilities
December 31, 2019
Cost
Fair
value
Assets:
Investments $ 87,273,566 $ 97,739,352
Fund shares sold 14,879
Total assets 97,754,231
Liabilities:
Payable for investment securities purchased 14,879
Trustee expenses 4,792
Total liabilities 19,671
Net assets $ 97,734,560
Units outstanding 6,315,050
Unit value $ 15.48
See accompanying notes to financial statements. 59
WELLS FARGO TARGET 2060 CIT E3
Statement of Operations
Year ended December 31, 2019
Expenses:
Administration, Advisory, and/or Trustee Fees $ 41,949
Total expenses 41,949
Net investment income (loss) (41,949)
Realized and unrealized gain (loss) on investment transaction:
Net realized gain (loss) on:
Investments 390,567
Net change in unrealized appreciation (depreciation) on:
Investments 13,519,964
Net gain (loss) on investment transactions 13,910,531
Net change in net assets resulting from operations $ 13,868,582
Statement of Changes in Net Assets
Year ended December 31, 2019
Increase/(decrease) in net assets from operations:
Net investment income (loss) $ (41,949)
Net realized gain (loss) on investment transactions 390,567
Net change in unrealized appreciation (depreciation) of investments 13,519,964
Net increase (decrease) in net assets resulting from
operations 13,868,582
Participating unit holder transactions:
Proceeds from issuance of units (3,080,013 units) 44,120,275
Payments for withdrawals (522,055 units) (7,422,212)
Net Change 36,698,063
Change in net assets derived from unit transactions 36,698,063
Total increase (decrease) in net assets 50,566,645
Net assets:
Beginning of year (3,757,092 units) 47,167,915
End of year (6,315,050 units) $ 97,734,560
WELLS FARGO TARGET 2060 CIT E3
Schedule of Investments
December 31, 2019
See accompanying notes to financial statements. 60
Shares Cost
Fair
Value ___________ ____________ ______________
Collective Investment Funds: 100.00%
Wells Fargo Bloomberg Barclays US
Aggregate ex-Corporate Index CIT G (1) 267,622 $ 2,758,232 $ 2,886,465
Wells Fargo Emerging Markets Bond Index
CIT G (1) 22,301 227,783 244,191
Wells Fargo Factor Enhanced Emerging
Markets Index CIT G (1) 845,148 8,163,941 8,525,604
Wells Fargo Factor Enhanced International
Index CIT G (1) 2,577,809 26,173,255 28,547,174
Wells Fargo Factor Enhanced Large Cap
Index CIT G (1) 3,451,705 38,137,860 44,633,647
Wells Fargo Factor Enhanced Small Cap
Index CIT G (1) 974,302 10,194,441 11,158,296
Wells Fargo High Yield Corporate Bond
Index CIT G (1) 22,032 227,588 244,164
Wells Fargo Investment Grade Corporate
Bond Index CIT G (1) 134,360 1,390,466 1,499,811 ____________________________________ ____________________________________
Total Collective Investment Funds 87,273,566 97,739,352 ____________________________________ ____________________________________
Total Investments: 100.00% $ 87,273,566 $ 97,739,352 ____________________________________ ____________________________________ ____________________________________ ____________________________________
Percentages shown are based on total net assets.
(1) This investment is a Wells Fargo Bank, N.A. sponsored collective trust fund.
See accompanying notes to financial statements. 61
WELLS FARGO TARGET 2060 CIT E3
Financial Highlights
Year ended December 31, 2019
Per share operating performance:
Unit value, beginning of year $ 12.55
Income from investment operations:
Net investment income (loss)(1) (0.01)
Net realized and unrealized gain (loss) on investments 2.94
Total from investment operations 2.93
Unit value, end of year $ 15.48
Total return per unit 23.35%
Net assets, end of year $ 97,734,560
Ratios:
Ratio of expenses to average net assets(2) 0.06%
Ratio of net investment income (loss) to average net assets (0.06)%
Portfolio Turnover Rate 12%
(1) Based on average number of units outstanding. (2) Expense ratios do not include expenses for the Underlying Funds.
See accompanying notes to financial statements. 62
WELLS FARGO TARGET 2060 CIT E3
Supplemental Schedule of Monthly Values (Unaudited)
Year ended December 31, 2019
Units Unit
outstanding valuation
January 31, 2019 3,909,693 $ 13.47
February 28, 2019 4,113,378 13.86
March 31, 2019 4,268,039 13.94
April 30, 2019 4,491,085 14.27
May 31, 2019 4,666,423 13.63
June 30, 2019 4,809,432 14.38
July 31, 2019 5,052,806 14.39
August 31, 2019 5,214,527 14.19
September 30, 2019 5,430,633 14.49
October 31, 2019 5,638,017 14.79
November 30, 2019 5,999,803 15.06
December 31, 2019 6,315,050 15.48
WELLS FARGO BANK COLLECTIVE INVESTMENT FUNDS
Notes to Financial Statements
December 31, 2019
63
Wells Fargo Target Today CIT E3 Wells Fargo Target 2035 CIT E3
Wells Fargo Target 2010 CIT E3 Wells Fargo Target 2040 CIT E3
Wells Fargo Target 2015 CIT E3 Wells Fargo Target 2045 CIT E3
Wells Fargo Target 2020 CIT E3 Wells Fargo Target 2050 CIT E3
Wells Fargo Target 2025 CIT E3 Wells Fargo Target 2055 CIT E3
Wells Fargo Target 2030 CIT E3
Wells Fargo Target 2060 CIT E3
The Wells Fargo Bank Collective Investment Funds for Employee Benefit Trusts, identified above, (collectively the
“Funds”, each a “Fund”) are established, operated, and maintained for the collective investment and reinvestment of
monies contributed thereto by Wells Fargo Bank, N.A. (the Trustee and Manager) or an affiliate of the Trustee in its
capacity as trustee, investment manager, or any other capacity authorized by law for retirement plans (the
participants) qualified under Section 401(a) and tax-exempt under Section 501(a) of the Internal Revenue Code
(IRC) of 1986, as amended.
Fund Description
Each Target Date Fund seeks total return over time, consistent with its strategic target date allocation. Each Fund
will pursue its objective through investment in a combination of underlying collective investment funds (each an
“Underlying Fund”). Each Underlying Fund will utilize equity index strategies, fixed income index strategies, and
short-term investment strategies. Each Target Date Fund and the Underlying Funds are managed by Wells Capital
Management, Inc; an affiliate of the Trustee.
1. Summary of Significant Accounting Policies
The following is a summary of significant accounting policies followed by the Trustee in the preparation of the
Funds’ financial statements. The policies are in conformity with accounting principles generally accepted in the
United States of America and the Wells Fargo Bank Declaration of Trust Establishing Investment Funds for
Employee Benefit Trusts, as amended and restated effective December 31, 2019. Each Fund is an investment
company and follows accounting and reporting guidance under Financial Accounting Standards Board (FASB)
Accounting Standards Codification (ASC) Topic 946, “Financial Services – Investment Companies”, which is part
of accounting principles generally accepted in the United States of America (“GAAP”).
a) Basis of Accounting
The accompanying financial statements have been presented on the accrual basis of accounting in accordance with
GAAP.
b) Cash Overdrafts
The Funds may have overnight cash overdrafts. Cash overdrafts are funded by the Trustee and settled the next
morning. No cash overdraft fees were assessed to the Funds for the year ended December 31, 2019.
c) Credit Risk and Uncertainties
Investment securities in which the Funds (or any Underlying funds as applicable) invest are subject to various risks,
such as market, credit, and interest rate risks. Due to the level of risk associated with such securities, it is at least
reasonably possible that changes in the near term could materially affect participants’ unit values and the amounts
reported in the statements of assets and liabilities. Credit ratings, as supplied solely by Standard & Poor’s, are noted
on the Schedule of Investments for each fund which holds individual fixed income securities. The S&P rating is one
relative measure of potential credit risk each security represents. Securities without a noted rating are either not
WELLS FARGO BANK COLLECTIVE INVESTMENT FUNDS
Notes to Financial Statements
December 31, 2019
64
generally rated (e.g. US government guaranteed instruments) or were un-rated by S&P as of December 31, 2019.
S&P ratings have been provided for informational purposes only and have not been independently audited.
d) Valuation of Investments
Valuation of the Funds’ units occurs daily for those days that the financial markets are open. Unit values are
determined by dividing the value of each Fund’s net assets by the total number of units outstanding on the valuation
date.
The Funds' investments, except those held in collective funds, are valued on the basis of market valuations, where
available, as provided by independent pricing services. Securities for which market valuations are not readily
available are valued at fair value as determined by the Trustee. Market valuations are generally determined as
follows:
• Securities traded in the over-the-counter market are valued at the last sale on the valuation date, if any,
otherwise at the last reported bid price.
• Debt securities are valued at the evaluated bid price provided by an independent pricing service (e.g. taking into
account various factors, including yields, maturities, or credit ratings) or, if a reliable price is not available, the
quoted bid price from an independent broker-dealer.
• Equity securities and futures contracts that are listed on a foreign or domestic exchange or market are valued at
the official closing price or, if none, the last sales price. If no sale occurs on the principal exchange or market
that day, a fair value price will be determined in accordance with the Fund’s Valuation Policies & Procedures as
adopted by the Trustee.
• Government and agency obligations are valued based upon the most recent bid quotation for identical or similar
obligations.
• Foreign markets and exchanges may close prior to the close of the New York Stock Exchange ("NYSE") and
therefore may not fully reflect trading or events that occur after the close of the principle exchange in which the
foreign investments are traded but before the close of the NYSE. If such trading or events are expected to
materially affect the value of the investments, then those investments are fair valued following procedures
approved by the Trustee.
• Investments in registered open-end investment companies are valued at net asset value. Interests in non-
registered investment companies that are redeemable at net asset value are fair valued normally at net asset
value.
• Swap contracts are valued at the evaluated price provided by an independent pricing service or, if a reliable
price is not available, the quoted bid price from an independent broker-dealer.
• Forward foreign currency contracts are recorded at the forward rate provided by an independent foreign
currency pricing source.
Investments which are not valued using any of the methods discussed above are valued at their fair value, as
determined in good faith by the Trustee of the Fund. The Trustee has established a Valuation Working Group and
has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation
Working Group deems necessary or appropriate, including determining the fair value of portfolio securities. The
Trustee retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation
WELLS FARGO BANK COLLECTIVE INVESTMENT FUNDS
Notes to Financial Statements
December 31, 2019
65
Procedures as it deems appropriate. On at least on a quarterly basis, the Trustee receives reports on any valuation
actions taken by the Valuation Working Group which may include items for ratification.
e) Fair Valuation of Securities
The Funds are subject to the provisions of FASB ASC 820-10, Fair Value Measurements which among other things,
establishes a framework for measuring fair value and requires enhanced disclosures about investments that are
measured and reported at fair value. In accordance with ASC 820-10, fair value is defined as the price that a fund
would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most
advantageous market of the investment. ASC 820-10 establishes a fair value hierarchy that prioritizes the inputs to
valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices
in active markets for identical assets or liabilities.
The three levels of the fair value hierarchy are as follows:
Level 1: Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Funds
have the ability to access at the measurement date. Examples of Level 1 securities would be common or preferred
stocks trading on a national exchange.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either
directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for
identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted
prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by
observable market data by correlation or other means. Examples of Level 2 securities would include corporate
fixed income, municipal fixed income, or certain pooled funds.
Level 3: Unobservable inputs based on the best information available in the circumstances, to the extent observable
inputs are not available (including the Fund’s own assumptions in determining the fair value of investments).
Examples of Level 3 securities would include private placements or assets for which no current pricing source is
available or in default.
The inputs or methodologies used for valuing investments in securities are not necessarily an indication of the risk
associated with investing in those securities.
The following table presents the values of the financial instruments carried on the statement of assets and liabilities
by caption and by level within the valuation hierarchy as of December 31, 2019. The breakdown of each Funds'
investments into major categories is disclosed in its respective Schedule of Investments.
Fair value measurements at reporting date using
Investments in securities
Quoted prices in
active markets
for identical
assets
(Level 1)
Significant other
observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3) Total
Wells Fargo Target Today CIT E3:
Value of investment securities:
Collective Investment Funds $ 37,494,422 $ — $ — $ 37,494,422
Total $ 37,494,422 $ — $ — $ 37,494,422
WELLS FARGO BANK COLLECTIVE INVESTMENT FUNDS
Notes to Financial Statements
December 31, 2019
66
Fair value measurements at reporting date using
Investments in securities
Quoted prices in
active markets
for identical
assets
(Level 1)
Significant other
observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3) Total
Wells Fargo Target 2010 CIT E3:
Value of investment securities:
Collective Investment Funds $ 53,703,229 $ — $ — $ 53,703,229
Total $ 53,703,229 $ — $ — $ 53,703,229
Wells Fargo Target 2015 CIT E3:
Value of investment securities:
Collective Investment Funds $ 160,849,939 $ — $ — $ 160,849,939
Total $ 160,849,939 $ — $ — $ 160,849,939
Wells Fargo Target 2020 CIT E3:
Value of investment securities:
Collective Investment Funds $ 571,490,351 $ — $ — $ 571,490,351
Total $ 571,490,351 $ — $ — $ 571,490,351
Wells Fargo Target 2025 CIT E3:
Value of investment securities:
Collective Investment Funds $ 1,055,076,580 $ — $ — $ 1,055,076,580
Total $ 1,055,076,580 $ — $ — $ 1,055,076,580
Wells Fargo Target 2030 CIT E3:
Value of investment securities:
Collective Investment Funds $ 1,271,914,845 $ — $ — $ 1,271,914,845
Total $ 1,271,914,845 $ — $ — $ 1,271,914,845
Wells Fargo Target 2035 CIT E3:
Value of investment securities:
Collective Investment Funds $ 1,365,844,178 $ — $ — $ 1,365,844,178
Total $ 1,365,844,178 $ — $ — $ 1,365,844,178
Wells Fargo Target 2040 CIT E3:
Value of investment securities:
Collective Investment Funds $ 1,203,148,233 $ — $ — $ 1,203,148,233
Total $ 1,203,148,233 $ — $ — $ 1,203,148,233
Wells Fargo Target 2045 CIT E3:
Value of investment securities:
Collective Investment Funds $ 990,242,062 $ — $ — $ 990,242,062
Total $ 990,242,062 $ — $ — $ 990,242,062
Wells Fargo Target 2050 CIT E3:
Value of investment securities:
Collective Investment Funds $ 696,228,168 $ — $ — $ 696,228,168
Total $ 696,228,168 $ — $ — $ 696,228,168
WELLS FARGO BANK COLLECTIVE INVESTMENT FUNDS
Notes to Financial Statements
December 31, 2019
67
Fair value measurements at reporting date using
Investments in securities
Quoted prices in
active markets
for identical
assets
(Level 1)
Significant other
observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3) Total
Wells Fargo Target 2055 CIT E3:
Value of investment securities:
Collective Investment Funds $ 289,949,921 $ — $ — $ 289,949,921
Total $ 289,949,921 $ — $ — $ 289,949,921
Wells Fargo Target 2060 CIT E3:
Value of investment securities:
Collective Investment Funds $ 97,739,352 $ — $ — $ 97,739,352
Total $ 97,739,352 $ — $ — $ 97,739,352
The Funds did not have transfers into/out of Level 3.
2. Expenses
In accordance with the Trust Agreement, the Trustee may charge the Funds for custody, accounting, audit fees and
certain other expenses incurred. The Collective Fund Oversight Committee (“CFOC”), a sub-committee of the Trust
Investment Committee of Wells Fargo Bank, N.A. reviews and determines the annual accounting fee charged to
each Fund. The CFOC also determines any expense cap with respect to expenses charged to each Fund.
During 2019, no Funds were subject to an expense cap.
Funds may also invest in other funds in a “fund of funds” construction deemed “Underlying Funds”. The Funds
may incur indirect expenses through their investment in any “Underlying Funds” for administration, audit,
custodial, unaffiliated sub-advisory investment management and related services provided to the Underlying Funds.
Indirect expenses from the Underlying Funds are netted against the investment income of the Underlying Fund. A
Fund’s unaffiliated sub-advisory investment management fee, if charged, is not included in the operating expenses
to which a net operating expense cap applies. The effects of this expense arrangement have been reflected in the
Statement of Operations and Financial Highlights for each Fund.
3. Trustee & Affiliated Compensation
In accordance with the Trust Agreement, the Trustee may charge the Funds for custody, accounting, audit fees and
certain other expenses incurred. The Collective Fund Oversight Committee (“CFOC”), a sub-committee of the Trust
Investment Committee of Wells Fargo Bank, N.A. reviews and determines the annual accounting fee charged to
each Fund. During 2019 no compensation was paid to the Trustee. Investment Advisory fees were paid to an
affiliate of the Trustee.
Fees for each unit class, as of December 31, 2019, are outlined on the following chart:
Fund Name Cusip Advisory
Fee Wells Fargo Target Today CIT E3 949907695 0.060%
Wells Fargo Target 2010 CIT E3 949907687 0.060%
Wells Fargo Target 2015 CIT E3 949907679 0.060%
WELLS FARGO BANK COLLECTIVE INVESTMENT FUNDS
Notes to Financial Statements
December 31, 2019
68
Wells Fargo Target 2020 CIT E3 949907661 0.060%
Wells Fargo Target 2025 CIT E3 949907653 0.060%
Wells Fargo Target 2030 CIT E3 949907646 0.060%
Wells Fargo Target 2035 CIT E3 949907638 0.060%
Wells Fargo Target 2040 CIT E3 949907620 0.060%
Wells Fargo Target 2045 CIT E3 949907612 0.060%
Wells Fargo Target 2050 CIT E3 949907596 0.060%
Wells Fargo Target 2055 CIT E3 94987Q656 0.060%
Wells Fargo Target 2060 CIT E3 94988K690 0.060%
4. Investment Transactions and Interest Income
Funds (with exception of the Wells Fargo/BlackRock Short Term Investment Fund, which pays income monthly) do
not distribute investment income to unit holders.
Investment transactions are accounted for on the trade date. The cost of investments sold is computed on an average
cost basis. Dividend income is recorded on the ex-dividend date. Foreign dividends are recorded when information
is confirmed by the foreign custodian. Interest income is accrued daily and bond discounts are accreted and
premiums are amortized daily based on the effective interest method. The Funds amortize premiums and accrete
market discounts and original issue discounts to the call or the maturity date. Premium amortization and discount
accretion amounts are included in interest income. Tax reclaims receivable, if any, are recorded as dividend income,
which may be subject to change due to changes in country-specific tax regulations regarding amounts reclaimable.
Income from foreign securities is recorded net of foreign taxes withheld where recovery of such taxes is not assured.
In March 2017, the Financial Accounting Standards Board issued Accounting Standards Update 2017-08, “Premium
Amortization of Purchased Callable Debt Securities” which shortens the amortization period for certain purchased
callable debt securities. Under the new guidance, the premium amortization of purchased callable debt securities
that have explicit, non-contingent call features and are callable at fixed prices will be amortized to the earliest call
date. The guidance will be applied on a modified retrospective basis and is effective for fiscal years, and their
interim periods, beginning after December 15, 2019. Management continues to evaluate the impact of this guidance
on the Funds.
5. Income Taxes
The Funds maintain tax-exempt status by operating collective trust funds regulated by the Office of the Comptroller
of the Currency, and as such no provision for income taxes is required. It is intended that the Funds be exempt from
taxation under Section 501(a) of the Code and qualify as a “group trust” under Revenue Ruling 81-100 and other
applicable Internal Revenue Service rules and regulations.
The Funds follow accounting policies under ASC 740, Income Taxes, regarding how uncertain tax positions should
be recognized, measured, presented and disclosed in the financial statements. Management has analyzed the Funds’
tax positions taken in all potential open tax years and has concluded that as of December 31, 2019, there were no
positions which would call into question the Funds’ tax exempt status. As such, the Funds do not have an accrual
for uncertain tax positions. The Funds’ federal and state fiduciary and federal excise tax returns for tax years for
which the applicable statutes of limitations have not expired (open tax years: December 31, 2016; December 31,
2017; December 31, 2018; and December 31, 2019) are subject to examination by the Internal Revenue Service and
state jurisdictions. As of and during the year ended December 31, 2019, the Funds did not have a liability for any
unrecognized tax benefits. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as
income tax expense in the Statement of Operations. During the year, the Funds did not incur any interest or
WELLS FARGO BANK COLLECTIVE INVESTMENT FUNDS
Notes to Financial Statements
December 31, 2019
69
penalties. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of
unrecognized tax benefits will change materially in the next 12 months.
6. Unit Issues, Redemptions, and Distributions
In accordance with the terms of the Trust, the net asset value of the Funds is calculated daily and net investment
income and realized and unrealized gains on investments are not distributed but rather reinvested and reflected in
the net asset value of the fund (with the sole exception being the Wells Fargo/BlackRock Short Term Investment
Fund which pays income monthly). Units of the Funds are issued and redeemed at the current net asset value.
Unit investors have a proportionate, undivided interest in the Funds’ net assets.
7. Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclose of contingent assets and liabilities at the date of the financial statements and the reported amounts of
increase and decrease in net assets from operations during the reporting period. Actual results could differ from
those estimates.
8. Related Party Transactions
The Funds may receive proceeds from litigation settlements involving affiliates of the Funds. The Funds may invest
in other funds (“Underlying Funds”) maintained by the Trustee, if provided for in the Funds’ Trust Agreement. The
sub-advisors to the Funds may also invest in Underlying Funds which are affiliates of the sub-advisor.
9. Investment Transactions and Related Investment Income
Investment transactions are accounted for on the trade date. Realized gains and losses are determined on the basis of
average cost. For multi-class funds, income, expenses, realized and unrealized gains and losses are allocated daily to
each unit class based on its relative net assets.
The Funds (with the exception of Wells Fargo/BlackRock Short Term Investment Fund, which pays income
monthly) do not distribute investment income to unit holders. Therefore, the appreciation or depreciation of units
held and gain or loss on sale of units represent the sources of income to holders of the Funds.
10. Ownership Concentration (Unaudited)
At December 31, 2019, the Funds had two affiliated plans as unit holders sponsored by the same Sponsor which is
unrelated to the Trustee. Investment activities, including redemptions, of such unitholder could have a material
impact on the operations and expenses of the Funds. 11. Summary Schedule of Investments Purchased and Sold
WELLS FARGO TARGET TODAY CIT E3
Purchased Sold or Redeemed
Cost Proceeds Realized Gain/(Loss)
Collective investment funds $ 23,005,361 $ 14,317,987 $ 707,285
Total investments $ 23,005,361 $ 14,317,987 $ 707,285
WELLS FARGO BANK COLLECTIVE INVESTMENT FUNDS
Notes to Financial Statements
December 31, 2019
70
WELLS FARGO TARGET 2010 CIT E3
Purchased Sold or Redeemed
Cost Proceeds Realized Gain/(Loss)
Collective investment funds $ 19,829,870 $ 8,550,204 $ 500,293
Total investments $ 19,829,870 $ 8,550,204 $ 500,293
WELLS FARGO TARGET 2015 CIT E3
Purchased Sold or Redeemed
Cost Proceeds Realized Gain/(Loss)
Collective investment funds $ 37,253,399 $ 26,888,925 $ 1,658,598
Total investments $ 37,253,399 $ 26,888,925 $ 1,658,598
WELLS FARGO TARGET 2020 CIT E3
Purchased Sold or Redeemed
Cost Proceeds Realized Gain/(Loss)
Collective investment funds 134,652,042 $ 81,231,490 $ 5,185,204
Total investments $ 134,652,042 $ 81,231,490 $ 5,185,204
WELLS FARGO TARGET 2025 CIT E3
Purchased Sold or Redeemed
Cost Proceeds Realized Gain/(Loss)
Collective investment funds $ 228,518,940 $ 100,779,700 $ 6,770,184
Total investments $ 228,518,940 $ 100,779,700 $ 6,770,184
WELLS FARGO TARGET 2030 CIT E3
Purchased Sold or Redeemed
Cost Proceeds Realized Gain/(Loss)
Collective investment funds $ 272,020,900 $ 86,632,202 $ 5,567,934
Total investments $ 272,020,900 $ 86,632,202 $ 5,567,934
WELLS FARGO TARGET 2035 CIT E3
Purchased Sold or Redeemed
Cost Proceeds Realized Gain/(Loss)
Collective investment funds $ 266,984,970 $ 90,659,924 $ 5,527,762
Total investments $ 266,984,970 $ 90,659,924 $ 5,527,762
WELLS FARGO TARGET 2040 CIT E3
Purchased Sold or Redeemed
Cost Proceeds Realized Gain/(Loss)
Collective investment funds $ 249,169,585 $ 75,084,585 $ 4,412,311
Total investments $ 249,169,585 $ 75,084,585 $ 4,412,311
WELLS FARGO BANK COLLECTIVE INVESTMENT FUNDS
Notes to Financial Statements
December 31, 2019
71
WELLS FARGO TARGET 2045 CIT E3
Purchased Sold or Redeemed
Cost Proceeds Realized Gain/(Loss)
Collective investment funds $ 222,655,591 $ 64,883,822 $ 3,784,077
Total investments $ 222,655,591 $ 64,883,822 $ 3,784,077
WELLS FARGO TARGET 2050 CIT E3
Purchased Sold or Redeemed
Cost Proceeds Realized Gain/(Loss)
Collective investment funds $ 196,074,901 $ 47,468,081 $ 2,562,245
Total investments $ 196,074,901 $ 47,468,081 $ 2,562,245
WELLS FARGO TARGET 2055 CIT E3
Purchased Sold or Redeemed
Cost Proceeds Realized Gain/(Loss)
Collective investment funds $ 105,962,127 $ 21,238,652 $ 1,047,829
Total investments $ 105,962,127 $ 21,238,652 $ 1,047,829
WELLS FARGO TARGET 2060 CIT E3
Purchased Sold or Redeemed
Cost Proceeds Realized Gain/(Loss)
Collective investment funds $ 45,144,709 $ 8,486,093 $ 390,567
Total investments $ 45,144,709 $ 8,486,093 $ 390,567
12. Subsequent Events Evaluation
The Funds have evaluated the need for disclosures and/or adjustments resulting from subsequent events through April 29, 2020, the date the financial statements were available to be issued. This evaluation did not result in
any subsequent events that necessitated disclosures and/or adjustments.
On March 11, 2020, the World Health Organization announced that it had made the assessment that coronavirus disease 2019 (“COVID-19”) is a pandemic. The impacts of COVID-19 is adversely affecting the entire global economy, individual companies and investment products, and the market in general. There is significant uncertainty around the extent and duration of business disruptions related to COVID-19 and the impact may be short term or may last for an extended period of time. The risk of further spreading of COVID-19 has led to significant uncertainty and volatility in the financial markets and the value of the Funds and the securities in which the Funds invest may be adversely affected by impacts caused by COVID-19.
Regulatory Statement (unaudited)
__________________________________________________________________________________________________
72
Regulatory requirement. Collective funds are authorized under the Comptroller of the Currency’s Regulation 9.18(a)(2)
and are subject to other pertinent provisions of Regulation 9 as promulgated by the Comptroller of the Currency. In
compliance with this Regulation, the Trustee will provide detail of investment transactions upon request and without
charge.
Participation requirements. Participation in each Fund is available to employee benefit accounts which meet the
following conditions:
• The participating account is part of a plan and related trust qualified under Section 401(a) of the Internal
Revenue Code (IRC), and which is exempt from tax under IRC Section 501 (a) or is part of a governmental
plan as defined by IRC Section 818(a)(6).
• The participating plan or trust instrument of qualified plans adopts documents establishing Wells Fargo
Bank’s collective investment funds.
• Wells Fargo Bank, N.A. serves in a fiduciary capacity with respect to a participating account.
Filing of Annual Report with Department of Labor. A plan administrator receiving this Annual Report may be eligible
for a simplified reporting procedure described in Department of Labor Regulations §2520.103-3 for a plan year ending on
or after the end of a Fund’s fiscal year. The fiscal year end for each Fund is December 31. To such eligible plan
administrators, Wells Fargo Bank, N.A. as Trustee for the Funds certifies that the statements of assets and liabilities
included in the Annual Report were filed with the Department of Labor on or before the date upon which the annual report
of such plans is required to be filed by the plan administrators in accordance with Department of Labor
Regulation §2520.103-9. The “Employer Identification Number” of each Fund is as follow
Target Date Series EIN
Wells Fargo Target Today CIT E3 82-6537136
Wells Fargo Target 2010 CIT E3 82-6539202
Wells Fargo Target 2015 CIT E3 82-6542271
Wells Fargo Target 2020 CIT E3 82-6545168
Wells Fargo Target 2025 CIT E3 82-6547850
Wells Fargo Target 2030 CIT E3 82-6551318
Wells Fargo Target 2035 CIT E3 82-6554416
Wells Fargo Target 2040 CIT E3 82-6557908
Wells Fargo Target 2045 CIT E3 82-6560165
Wells Fargo Target 2050 CIT E3 82-6563190
Wells Fargo Target 2055 CIT E3 82-6566776
Wells Fargo Target 2060 CIT E3 82-6570747
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