Wells Fargo Bank, N.A.Collective Investment FundsAnnual Report 2019
WELLS FARGO STABLE RETURN FUND F
WELLS FARGO STABLE RETURN FUND N
WELLS FARGO STABLE RETURN FUND N15
WELLS FARGO STABLE RETURN FUND N25
WELLS FARGO STABLE RETURN FUND N35
WELLS FARGO STABLE RETURN FUND N60
WELLS FARGO STABLE RETURN FUND TR
WELLS FARGO STABLE RETURN FUND I
WELLS FARGO STABLE RETURN FUND I25
WELLS FARGO STABLE RETURN FUND I35
Financial Statements
December 31, 2019
(With Independent Auditors’ Report Thereon)
WELLS FARGO STABLE RETURN FUNDS F, N, N15, N25, N35, N60, TR, I, I25, I35
Table of Contents
Page
Independent Auditors’ Report 1
Financial Statements
Wells Fargo Stable Return Fund F 3
Wells Fargo Stable Return Fund N 7
Wells Fargo Stable Return Fund N15 11
Wells Fargo Stable Return Fund N25 15
Wells Fargo Stable Return Fund N35 19
Wells Fargo Stable Return Fund N60 23
Wells Fargo Stable Return Fund TR 27
Wells Fargo Stable Return Fund I 31
Wells Fargo Stable Return Fund I25 35
Wells Fargo Stable Return Fund I35 39
Notes to Financial Statements 43
Independent Auditors’ Report
To the Board of Directors
Wells Fargo Bank, N.A.:
We have audited the accompanying financial statements of Wells Fargo Stable Return Fund F, Wells Fargo
Stable Return Fund N, Wells Fargo Stable Return Fund N15, Wells Fargo Stable Return Fund N25, Wells
Fargo Stable Return Fund N35, Wells Fargo Stable Return Fund N60, Wells Fargo Stable Return Fund TR,
Wells Fargo Stable Return Fund I, Wells Fargo Stable Return Fund I25, and Wells Fargo Stable Return Fund
I35, which comprise the statements of assets and liabilities, including the schedules of investments as of
December 31, 2019, and the related statements of operations and changes in net assets for the year then
ended, and the related notes to the financial statements.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements 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 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 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 are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of
the risks of material misstatement of the financial statements, 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 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.
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 LLP4200 Wells Fargo Center90 South Seventh StreetMinneapolis, MN 55402
2
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of Wells Fargo Stable Return Fund F, Wells Fargo Stable Return Fund N, Wells Fargo Stable Return
Fund N15, Wells Fargo Stable Return Fund N25, Wells Fargo Stable Return Fund N35, Wells Fargo Stable
Return Fund N60, Wells Fargo Stable Return Fund TR, Wells Fargo Stable Return Fund I, Wells Fargo Stable
Return Fund I25, and Wells Fargo Stable Return Fund I35 as of December 31, 2019, and the results of their
operations, and changes in their net assets for the year then ended in accordance with U.S. generally accepted
accounting principles.
Minneapolis, Minnesota
April 29, 2020
Statement of Assets and Liabilities
December 31, 2019
Assets:Investment in Wells Fargo Stable Return Fund G, at fair value
(cost: $1,558,571,587) (note 2) $ 1,660,540,426 Receivable for investments sold 18,636,794
Total assets 1,679,177,220
Liabilities:Accrued investment management fee 224,499 Accrued 5500 filing fee 1,755 Accrued audit fee 3,037
Total liabilities 229,291
Net assets reflecting investments at fair value 1,678,947,929
Adjustment from fair value to contract value for underlying fully benefit-responsiveinvestment contracts (26,150,243)
Net assets, 147,681,690 units outstanding, $11.192 unit value $ 1,652,797,686
See accompanying notes to financial statements.
WELLS FARGO STABLE RETURN FUND F
3
Statement of Operations
Year ended December 31, 2019
Realized and unrealized gains (losses) on investments:Net realized gain on investment transactions (note 2) $ 14,166,682 Net change in unrealized appreciation (depreciation) of investments 27,604,740
Total gain on investments 41,771,422
Expenses:Investment management fee (note 3) 2,623,295 5500 filing fee 1,790 Audit fee 3,755
Total expenses 2,628,840
Net change in net assets resulting from operations $ 39,142,582
See accompanying notes to financial statements.
WELLS FARGO STABLE RETURN FUND F
4
Statement of Changes in Net Assets
Year ended December 31, 2019
Increase/(decrease) in net assets from operations:Net realized gain on investment transactions $ 14,166,682 Net change in unrealized appreciation (depreciation) of investments 27,604,740 Expenses (2,628,840)
Net change in net assets resulting from operations 39,142,582
Participant unit transactions:Proceeds from issuance of 18,098,141 units 200,076,693 Payments for withdrawal of 23,420,092 units (258,393,675)
Net change in net assets from participant unit transactions (58,316,982)
Total change in net assets (19,174,400)
Net assets:
Beginning of year (153,003,641 units) 1,671,972,086 End of year (147,681,690 units) $ 1,652,797,686
See accompanying notes to financial statements.
WELLS FARGO STABLE RETURN FUND F
5
Schedule of Investments
December 31, 2019
Investment AdjustmentNumber of at fair to contract Contract
Name of issuer shares Cost value (a) (c) value value (a)
(Percentage represents the fair value of the investment category to net assets)
Collective Trust Fund (100.5%): Wells Fargo Stable Return Fund G (b) 28,519,711 $ 1,558,571,587 1,660,540,426 (26,150,243) 1,634,390,183
Total investments in securities $ 1,558,571,587 1,660,540,426 (26,150,243) 1,634,390,183
Notes to schedule of investments:
(a) Securities are valued by procedures described in note 2 to the financial statements.
(b) Wells Fargo Stable Return Fund G is another Wells Fargo Bank, N.A.-sponsored collective trust fund.
(c) Represents the Fund’s portion of the underlying fully benefit-responsive investment contracts at fair value held by Wells Fargo Stable Return Fund G.
See accompanying notes to the financial statements.
WELLS FARGO STABLE RETURN FUND F
6
Statement of Assets and Liabilities
December 31, 2019
Assets:Investment in Wells Fargo Stable Return Fund G, at fair value
(cost: $3,094,255,452) (note 2) $ 3,417,831,652 Receivable for investment securities sold 158,508,217
Total assets 3,576,339,869
Liabilities:Accrued investment management fee 598,650 Accrued 5500 filing fee 1,755 Accrued trustee fee 89,797 Accrued audit fee 3,036
Total liabilities 693,238
Net assets reflecting investments at fair value 3,575,646,631
Adjustment from fair value to contract value for underlying fully benefit-responsiveinvestment contracts (56,320,313)
Net assets, 62,067,698 units outstanding, $56.701 unit value $ 3,519,326,318
See accompanying notes to financial statements.
WELLS FARGO STABLE RETURN FUND N
7
Statement of Operations
Realized and unrealized gains on investments:Net realized gain on investment transactions (note 2) $ 120,605,220 Net change in unrealized appreciation (depreciation) of investments (25,538,388)
Total gain on investments 95,066,832
Expenses:Investment management fee (note 3) 7,471,676 5500 filing fee 1,790 Trustee fee (note 3) 1,120,752 Audit fee 3,754
Total expenses 8,597,972
Net change in net assets resulting from operations $ 86,468,860
See accompanying notes to financial statements.
WELLS FARGO STABLE RETURN FUND N
Year ended December 31, 2019
8
Statement of Changes in Net Assets
Year ended December 31, 2019
Increase/(decrease) in net assets from operations:Net realized gain on investment transactions $ 120,605,220 Net change in unrealized appreciation (depreciation) of investments (25,538,388) Expenses (8,597,972)
Net change in net assets resulting from operations 86,468,860
Participant unit transactions:Proceeds from issuance of 5,642,321 units 315,856,829 Payments for withdrawal of 14,690,898 units (823,035,203)
Net change in net assets from participant unit transactions (507,178,374)
Total change in net assets (420,709,514)
Net assets:
Beginning of year (71,116,275 units) 3,940,035,832
End of year (62,067,698 units) $ 3,519,326,318
See accompanying notes to financial statements.
WELLS FARGO STABLE RETURN FUND N
9
Schedule of Investments
December 31, 2019
Investment AdjustmentNumber of at fair to contract Contract
Name of issuer shares Cost value (a) (c) value value (a)
(Percentage represents the fair value of the investment category to net assets)
Collective Trust Fund (97.1%): Wells Fargo Stable Return Fund G (b) 58,657,556 $ 3,094,255,452 3,417,831,652 (56,320,313) 3,361,511,339
Total investments in securities $ 3,094,255,452 3,417,831,652 (56,320,313) 3,361,511,339
Notes to schedule of investments:
(a) Securities are valued by procedures described in note 2 to the financial statements.
(b) Wells Fargo Stable Return Fund G is another Wells Fargo Bank, N.A.-sponsored collective trust fund.
(c) Represents the Fund’s portion of the underlying fully benefit-responsive investment contracts at fair value held by Wells Fargo Stable Return Fund G.
See accompanying notes to the financial statements.
WELLS FARGO STABLE RETURN FUND N
10
Statement of Assets and Liabilities
December 31, 2019
Assets:Investment in Wells Fargo Stable Return Fund G, at fair value
(cost: $90,918,442) (note 2) $ 94,034,030
Total assets 94,034,030
Liabilities:Accrued investment management fee 15,696 Accrued plan operations fee 11,771 Accrued 5500 filing fee 1,755 Accrued trustee fee 2,354 Accrued audit fee 3,036
Total liabilities 34,612
Net assets reflecting investments at fair value 93,999,418
Adjustment from fair value to contract value for underlying fully benefit-responsiveinvestment contracts (1,480,851)
Net assets, 7,375,613 units outstanding, $12.544 unit value $ 92,518,567
See accompanying notes to financial statements.
WELLS FARGO STABLE RETURN FUND N15
11
Statement of Operations
Year ended December 31, 2019
Realized and unrealized gains (losses) on investments:Net realized gain on investment transactions (note 2) $ 9,393,160 Net change in unrealized appreciation (depreciation) of investments (6,108,260)
Total gain on investments 3,284,900
Expenses:Investment management fee (note 3) 258,485 Plan operations fee (note 3) 193,864 5500 filing fee 1,790 Trustee fee (note 3) 38,773 Audit fee 3,754
Total expenses 496,666
Net change in net assets resulting from operations $ 2,788,234
See accompanying notes to financial statements.
WELLS FARGO STABLE RETURN FUND N15
12
Statement of Changes in Net Assets
Year ended December 31, 2019
Increase/(decrease) in net assets from operations:Net realized gain on investment transactions $ 9,393,160 Net change in unrealized appreciation (depreciation) of investments (6,108,260) Expenses (496,666)
Net change in net assets resulting from operations 2,788,234
Participant unit transactions:Proceeds from issuance of 5,457,861 units 67,638,959 Payments for withdrawal of 11,339,774 (140,650,958)
Net change in net assets from participant unit transactions (73,011,999)
Total change in net assets (70,223,765)
Net assets:
Beginning of year (13,257,526 units) 162,742,332
End of year (7,375,613 units) $ 92,518,567
See accompanying notes to financial statements.
WELLS FARGO STABLE RETURN FUND N15
13
Schedule of Investments
December 31, 2019
Investment AdjustmentNumber of at fair to contract Contract
Name of issuer shares Cost value (a) (c) value value (a)
(Percentage represents the fair value of the investment category to net assets)
Collective Trust Fund (101.6%): Wells Fargo Stable Return Fund G (b) 1,615,030 $ 90,918,442 94,034,030 (1,480,851) 92,553,179
Total investments in securities $ 90,918,442 94,034,030 (1,480,851) 92,553,179
Notes to schedule of investments:
(a) Securities are valued by procedures described in note 2 to the financial statements.
(b) Wells Fargo Stable Return Fund G is another Wells Fargo Bank, N.A. – sponsored collective trust fund.
(c) Represents the Fund’s portion of the underlying fully benefit-responsive investment contracts at fair value held by Wells Fargo Stable Return Fund G.
See accompanying notes to financial statements.
WELLS FARGO STABLE RETURN FUND N15
14
Statement of Assets and Liabilities
December 31, 2019
Assets:Investment in Wells Fargo Stable Return Fund G, at fair value
(cost: $51,343,731) (note 2) $ 54,432,955
Total assets 54,432,955
Liabilities:Accrued investment management fee 9,137 Accrued plan operations fee 11,422 Accrued 5500 filing fee 1,755 Accrued trustee fee 1,371 Accrued audit fee 3,036
Total liabilities 26,721
Net assets reflecting investments at fair value 54,406,234
Adjustment from fair value to contract value for underlying fully benefit-responsiveinvestment contracts (857,212)
Net assets, 4,317,860 units outstanding, $12.402 unit value $ 53,549,022
See accompanying notes to financial statements.
WELLS FARGO STABLE RETURN FUND N25
15
Statement of Operations
Year ended December 31, 2019
Realized and unrealized gains (losses) on investments:Net realized gain on investment transactions (note 2) $ 1,379,894 Net change in unrealized appreciation (depreciation) of investments (39,168)
Total gain on investments 1,340,726
Expenses:105,342 131,677
1,790 15,801
Investment management fee (note 3) Plan operations fee (note 3)5500 filing feeTrustee fee (note 3)Audit fee 3,754
Total expenses 258,364
Net change in net assets resulting from operations $ 1,082,362
See accompanying notes to financial statements.
WELLS FARGO STABLE RETURN FUND N25
16
Statement of Changes in Net Assets
Year ended December 31, 2019
Increase/(decrease) in net assets from operations:Net realized gain on investment transactions $ 1,379,894 Net change in unrealized appreciation (depreciation) of investments (39,168) Expenses (258,364)
Net change in net assets resulting from operations 1,082,362
Participant unit transactions:Proceeds from issuance of 1,134,847 units 13,926,738 Payments for withdrawal of 2,586,459 units (31,554,719)
Net change in net assets from participant unit transactions (17,627,981)
Total change in net assets (16,545,619)
Net assets:
Beginning of year (5,769,472 units) 70,094,641
End of year (4,317,860 units) $ 53,549,022
See accompanying notes to financial statements.
WELLS FARGO STABLE RETURN FUND N25
17
Schedule of Investments
December 31, 2019
Investment AdjustmentNumber of at fair to contract Contract
Name of issuer shares Cost value (a) (c) value value (a)
(Percentage represents the fair value of the investment category to net assets)
Collective Trust Fund (101.7%): Wells Fargo Stable Return Fund G (b) 934,884 $ 51,343,731 54,432,955 (857,212) 53,575,743
Total investments in securities $ 51,343,731 54,432,955 (857,212) 53,575,743
Notes to schedule of investments:
(a) Securities are valued by procedures described in note 2 to the financial statements.
(b) Wells Fargo Stable Return Fund G is another Wells Fargo Bank, N.A. – sponsored collective trust fund.
(c) Represents the Fund’s portion of the underlying fully benefit-responsive investment contracts at fair value held by Wells Fargo Stable Return Fund G.
See accompanying notes to financial statements.
WELLS FARGO STABLE RETURN FUND N25
18
Statement of Assets and Liabilities
December 31, 2019
Assets:Investment in Wells Fargo Stable Return Fund G, at fair value
(cost: $115,686,108) (note 2) $ 121,177,206
Total assets 121,177,206
Liabilities:Accrued investment management fee 21,434 Accrued plan operations fee 37,510 Accrued 5500 filing fee 1,755 Accrued trustee fee 3,215 Accrued audit fee 3,038
Total liabilities 66,952
Net assets reflecting investments at fair value 121,110,254
Adjustment from fair value to contract value for underlying fully benefit-responsiveinvestment contracts (1,908,302)
Net assets, 2,271,240 units outstanding, $52.483 unit value $ 119,201,952
See accompanying notes to financial statements.
WELLS FARGO STABLE RETURN FUND N35
19
Statement of Operations
Year ended December 31, 2019
Realized and unrealized gains (losses) on investments:Net realized gain on investment transactions (note 2) $ 45,252,711 Net change in unrealized appreciation (depreciation) of investments (39,798,927)
Total gain on investments 5,453,784
Expenses:Investment management fee (note 3) 432,178 Plan operations fee (note 3) 756,310 5500 filing fee 1,790 Trustee fee (note 3) 64,827 Audit fee 3,755
Total expenses 1,258,860
Net change in net assets resulting from operations $ 4,194,924
See accompanying notes to financial statements.
WELLS FARGO STABLE RETURN FUND N35
20
Statement of Changes in Net Assets
Year ended December 31, 2019
Increase/(decrease) in net assets from operations:Net realized gain on investment transactions $ 45,252,711 Net change in unrealized appreciation (depreciation) of investments (39,798,927) Expenses (1,258,860)
Net change in net assets resulting from operations 4,194,924
Participant unit transactions:Proceeds from issuance of 662,539 units 34,345,126 Payments for withdrawal of 5,752,381 units (298,165,064)
Net change in net assets from participant unit transactions (263,819,938)
Total change in net assets (259,625,014)
Net assets:
Beginning of year (7,361,082 units) 378,826,966
End of year (2,271,240 units) $ 119,201,952
See accompanying notes to financial statements.
WELLS FARGO STABLE RETURN FUND N35
21
Schedule of Investments
December 31, 2019
Investment AdjustmentNumber of at fair to contract Contract
Name of issuer shares Cost value (a) (c) value value (a)
(Percentage represents the fair value of the investment category to net assets)
Collective Trust Fund (101.7%): Wells Fargo Stable Return Fund G (b) 2,081,213 $ 115,686,108 121,177,206 (1,908,302) 119,268,904
Total investments in securities $ 115,686,108 121,177,206 (1,908,302) 119,268,904
Notes to schedule of investments:
(a) Securities are valued by procedures described in note 2 to the financial statements.
(b) Wells Fargo Stable Return Fund G is another Wells Fargo Bank, N.A. – sponsored collective trust fund.
(c) Represents the Fund’s portion of the underlying fully benefit-responsive investment contracts at fair value held by Wells Fargo Stable Return Fund G.
See accompanying notes to financial statements.
WELLS FARGO STABLE RETURN FUND N35
22
Statement of Assets and Liabilities
December 31, 2019
Assets:Investment in Wells Fargo Stable Return Fund G, at fair value
(cost: $139,525,023) (note 2) $ 152,428,072
Total assets 152,428,072
Liabilities:Accrued investment management fee 25,597 Accrued plan operations fee 76,792 Accrued 5500 filing fee 1,755 Accrued trustee fee 3,840 Accrued audit fee 3,038
Total liabilities 111,022
Net assets reflecting investments at fair value 152,317,050
Adjustment from fair value to contract value for underlying fully benefit-responsiveinvestment contracts (2,400,442)
Net assets, 2,927,477 units outstanding, $51.210 unit value $ 149,916,608
See accompanying notes to financial statements.
WELLS FARGO STABLE RETURN FUND N60
23
Statement of Operations
Year ended December 31, 2019
Realized and unrealized gains (losses) on investments:Net realized gain on investment transactions (note 2) $ 19,916,756 Net change in unrealized appreciation (depreciation) of investments (15,613,183)
Total gain on investments 4,303,573
Expenses:Investment management fee (note 3) 338,554 Plan operations fee (note 3) 1,015,664 5500 filing fee 1,790 Trustee fee (note 3) 50,783 Audit fee 3,755
Total expenses 1,410,546
Net change in net assets resulting from operations $ 2,893,027
See accompanying notes to financial statements.
WELLS FARGO STABLE RETURN FUND N60
24
Statement of Changes in Net Assets
Year ended December 31, 2019
Increase/(decrease) in net assets from operations:Net realized gain on investment transactions $ 19,916,756 Net change in unrealized appreciation (depreciation) of investments (15,613,183) Expenses (1,410,546)
Net change in net assets resulting from operations 2,893,027
Participant unit transactions:Proceeds from issuance of 523,495 units 26,570,650 Payments for withdrawal of 1,679,615 units (85,113,853)
Net change in net assets from participant unit transactions (58,543,203)
Total change in net assets (55,650,176)
Net assets:
Beginning of year (4,083,597 units) 205,566,784
End of year (2,927,477 units) $ 149,916,608
See accompanying notes to financial statements.
WELLS FARGO STABLE RETURN FUND N60
25
Schedule of Investments
December 31, 2019
Investment AdjustmentNumber of at fair to contract Contract
Name of issuer shares Cost value (a) (c) value value (a)
(Percentage represents the fair value of the investment category to net assets)
Collective Trust Fund (101.7%): Wells Fargo Stable Return Fund G (b) 2,617,946 $ 139,525,023 152,428,072 (2,400,442) 150,027,630
Total investments in securities $ 139,525,023 152,428,072 (2,400,442) 150,027,630
Notes to schedule of investments:
(a) Securities are valued by procedures described in note 2 to the financial statements.
(b) Wells Fargo Stable Return Fund G is another Wells Fargo Bank, N.A. – sponsored collective trust fund.
(c) Represents the Fund’s portion of the underlying fully benefit-responsive investment contracts at fair value held by Wells Fargo Stable Return Fund G.
See accompanying notes to financial statements.
WELLS FARGO STABLE RETURN FUND N60
26
Statement of Assets and Liabilities
December 31, 2019
Assets:Investment in Wells Fargo Stable Return Fund G, at fair value
(cost: $13,330,440) (note 2) $ 14,080,720
Total assets 14,080,720
Liabilities:Accrued investment management fee 1,880 Accrued plan operations fee 3,702 Accrued audit fee 3,036
Total liabilities 8,618
Net assets reflecting investments at fair value 14,072,102
Adjustment from fair value to contract value for underlying fully benefit-responsiveinvestment contracts (221,744)
Net assets, 1,017,371 units outstanding, $13.614 unit value $ 13,850,358
See accompanying notes to financial statements.
WELLS FARGO STABLE RETURN FUND TR
27
Statement of Operations
Realized and unrealized gains (losses) on investments:Net realized gain on investment transactions (note 2) $ 332,948Net change in unrealized appreciation (depreciation) of investments 9,555
Total gain on investments 342,503
Expenses:Investment management fee (note 3) 21,458Plan operations fee (note 3) 42,245Audit fee 3,754
Total expenses 67,457
Net change in net assets resulting from operations $ 275,046
See accompanying notes to financial statements.
WELLS FARGO STABLE RETURN FUND TR
Year ended December 31, 2019
28
Statement of Changes in Net Assets
Increase/(decrease) in net assets from operations:Net realized gain on investment transactions $ 332,948 Net change in unrealized appreciation (depreciation) of investments 9,555 Expenses (67,457)
Net change in net assets resulting from operations 275,046
Participant unit transactions:Proceeds from issuance of 301,801 units 4,059,371 Payments for withdrawal of 209,031 units (2,816,657)
Net change in net assets from participant unit transactions 1,242,714
Total change in net assets 1,517,760
Net assets:
Beginning of year (924,601 units) 12,332,598
End of year (1,017,371 units) $ 13,850,358
See accompanying notes to financial statements.
WELLS FARGO STABLE RETURN FUND TR
Year ended December 31, 2019
29
Schedule of Investments
December 31, 2019
Investment AdjustmentNumber of at fair to contract Contract
Name of issuer shares Cost value (a) (c) value value (a)
(Percentage represents the fair value of the investment category to net assets)
Collective Trust Fund (101.7%): Wells Fargo Stable Return Fund G (b) 241,836 $ 13,330,440 14,080,720 (221,744) 13,858,976
Total investments in securities $ 13,330,440 14,080,720 (221,744) 13,858,976
Notes to schedule of investments:
(a) Securities are valued by procedures described in note 2 to the financial statements.
(b) Wells Fargo Stable Return Fund G is another Wells Fargo Bank, N.A.-sponsored collective trust fund.
(c) Represents the Fund’s portion of the underlying fully benefit-responsive investment contracts at fair value held by Wells Fargo Stable Return Fund G.
See accompanying notes to the financial statements.
WELLS FARGO STABLE RETURN FUND TR
30
Statement of Assets and Liabilities
December 31, 2019
Assets:Investment in Wells Fargo Stable Return Fund G, at fair value
(cost: $1,696,093,302) (note 2) $ 1,797,932,292
Total assets 1,797,932,292
Liabilities:Accrued investment management fee 241,237 Accrued 5500 filing fee 1,755 Accrued trustee fee 45,232 Accrued audit fee 3,036
Total liabilities 291,260
Net assets reflecting investments at fair value 1,797,641,032
Adjustment from fair value to contract value for underlying fully benefit-responsiveinvestment contracts (28,313,894)
Net assets, 31,180,079 units outstanding, $56.745 unit value $ 1,769,327,138
See accompanying notes to financial statements.
WELLS FARGO STABLE RETURN FUND I
31
Statement of Operations
Year ended December 31, 2019
Realized and unrealized gains on investments:Net realized gain on investment transactions (note 2) $ 10,086,092 Net change in unrealized appreciation (depreciation) of investments 36,916,880
Total gain on investments 47,002,972
Expenses:Investment management fee (note 3) 2,952,864 5500 filing fee 1,790 Trustee fee (note 3) 553,662 Audit fee 3,754
Total expenses 3,512,070
Net change in net assets resulting from operations $ 43,490,902
See accompanying notes to financial statements.
WELLS FARGO STABLE RETURN FUND I
32
Statement of Changes in Net Assets
Year ended December 31, 2019
Increase/(decrease) in net assets from operations:Net realized gain on investment transactions $ 10,086,092 Net change in unrealized appreciation (depreciation) of investments 36,916,880 Expenses (3,512,070)
Net change in net assets resulting from operations 43,490,902
Participant unit transactions:Proceeds from issuance of 2,551,707 units 143,058,000 Payments for withdrawal of 5,053,342 units (283,983,664)
Net change in net assets derived from participant unit transactions (140,925,664)
Total change in net assets (97,434,762)
Net assets:
Beginning of period (33,681,714 units) 1,866,761,900
End of period (31,180,079 units) $ 1,769,327,138
See accompanying notes to financial statements.
WELLS FARGO STABLE RETURN FUND I
33
Schedule of Investments
December 31, 2019
Investment AdjustmentNumber of at fair to contract Contract
Name of issuer shares Cost value (a) (c) value value (a)
(Percentage represents the fair value of the investment category to net assets)
Collective Trust Fund (101.6%): Wells Fargo Stable Return Fund G (b) 30,879,411 $ 1,696,093,302 1,797,932,292 (28,313,894) 1,769,618,398
Total investments in securities $ 1,696,093,302 1,797,932,292 (28,313,894) 1,769,618,398
Notes to schedule of investments:
(a) Securities are valued by procedures described in note 2 to the financial statements.
(b) Wells Fargo Stable Return Fund G is another Wells Fargo Bank, N.A. – sponsored collective trust fund.
(c) Represents the Fund’s portion of the underlying fully benefit-responsive investment contracts at fair value held by Wells Fargo Stable Return Fund G.
See accompanying notes to the financial statements.
WELLS FARGO STABLE RETURN FUND I
34
Statement of Assets and Liabilities
December 31, 2019
Assets:Investment in Wells Fargo Stable Return Fund G, at fair value
(cost: $55,200,420) (note 2) $ 58,153,493
Total assets 58,153,493
Liabilities:Accrued investment management and administrative service fees 7,827 Accrued plan operations fee 12,228 Accrued 5500 filing fee 1,755 Accrued trustee fee 1,467 Accrued audit fee 3,036
Total liabilities 26,313
Net assets reflecting investments at fair value 58,127,180
Adjustment from fair value to contract value for underlying fully benefit-responsiveinvestment contracts (915,803)
Net assets, 4,609,651 units outstanding, $12.411 unit value $ 57,211,377
See accompanying notes to financial statements.
WELLS FARGO STABLE RETURN FUND I25
35
Statement of Operations
Year ended December 31, 2019
Realized and unrealized gains on investments:Net realized gain on investment transactions (note 2) $ 525,936 Net change in unrealized appreciation (depreciation) of investments 942,986
Total gain on investments 1,468,922
Expenses:Investment management and administrative service fees (note 3) 92,245 Plan operations fee (note 3) 144,134 5500 filing fee 1,790 Trustee fee (note 3) 17,296 Audit fee 3,754
Total expenses 259,219
Net change in net assets resulting from operations $ 1,209,703
See accompanying notes to financial statements.
WELLS FARGO STABLE RETURN FUND I25
36
Statement of Changes in Net Assets
Year ended December 31, 2019
Increase/(decrease) in net assets from operations:Net realized gain on investment transactions $ 525,936 Net change in unrealized appreciation (depreciation) of investments 942,986 Expenses (259,219)
Net change in net assets resulting from operations 1,209,703
Participant unit transactions:Proceeds from issuance of 1,097,517 units 13,479,616 Payments for withdrawal of 1,284,152 units (15,769,517)
Net change in net assets derived from participant unit transactions (2,289,901)
Total change in net assets (1,080,198)
Net assets:
Beginning of period (4,796,286 units) 58,291,575
End of period (4,609,651 units) $ 57,211,377
See accompanying notes to financial statements.
WELLS FARGO STABLE RETURN FUND I25
37
Schedule of Investments
December 31, 2019
Investment AdjustmentNumber of at fair to contract Contract
Name of issuer shares Cost value (a) (c) value value (a)
(Percentage represents the fair value of the investment category to net assets)
Collective Trust Fund (101.6%): Wells Fargo Stable Return Fund G (b) 998,784 $ 55,200,420 58,153,493 (915,803) 57,237,690
Total investments in securities $ 55,200,420 58,153,493 (915,803) 57,237,690
Notes to schedule of investments:
(a) Securities are valued by procedures described in note 2 to the financial statements.
(b) Wells Fargo Stable Return Fund G is another Wells Fargo Bank, N.A. – sponsored collective trust fund.
(c) Represents the Fund’s portion of the underlying fully benefit-responsive investment contracts at fairvalue held by Wells Fargo Stable Return Fund G.
See accompanying notes to the financial statements.
WELLS FARGO STABLE RETURN FUND I25
38
Statement of Assets and Liabilities
December 31, 2019
Assets:Investment in Wells Fargo Stable Return Fund G, at fair value
(cost: $92,271,558) (note 2) $ 97,845,542
Total assets 97,845,542
Liabilities:Accrued investment management fee 13,103 Accrued plan operations fee 28,661 Accrued 5500 filing fee 1,755 Accrued audit fee 3,036 Accrued trustee fee 2,457
Total liabilities 49,012
Net assets reflecting investments at fair value 97,796,530
Adjustment from fair value to contract value for underlying fully benefit-responsiveinvestment contracts (1,540,875)
Net assets, 1,832,685 units outstanding, $52.522 unit value $ 96,255,655
See accompanying notes to financial statements.
Wells Fargo Stable Return Fund I35
39
Statement of Operations
Year ended December 31, 2019
Realized and unrealized gains on investments:Net realized gain on investment transactions (note 2) $ 297,091 Net change in unrealized appreciation (depreciation) of investments 2,149,850
Total gain on investments 2,446,941
Expenses:Investment management fee (note 3) 153,605 Plan operations fee (note 3) 336,010 5500 filing fees 1,790 Audit fee 3,754 Trustee fee (note 3) 28,801
Total expenses 523,960
Net change in net assets resulting from operations $ 1,922,981
See accompanying notes to financial statements.
Wells Fargo Stable Return Fund I35
40
Statement of Changes in Net Assets
Year ended December 31, 2019
Increase/(decrease) in net assets from operations:Net realized gain on investment transactions $ 297,091 Net change in unrealized appreciation (depreciation) of investments 2,149,850 Expenses (523,960)
Net change in net assets resulting from operations 1,922,981
Participant unit transactions:Proceeds from issuance of 147,556 units 7,664,160 Payments for withdrawal of 165,695 units (8,612,426)
Net change in net assets derived from participant unit transactions (948,266)
Total change in net assets 974,715
Net assets:
Beginning of year (1,850,824 units) 95,280,940
End of year (1,832,685 units) $ 96,255,655
See accompanying notes to financial statements.
Wells Fargo Stable Return Fund I35
41
Schedule of Investments
December 31, 2019
Investment AdjustmentNumber of at fair to contract Contract
Name of issuer shares Cost value (a) (c) value value (a)
(Percentage represents the fair value of the investment category to net assets)
Collective Trust Fund (101.7%): Wells Fargo Stable Return Fund G (b) 1,680,493 $ 92,271,558 97,845,542 (1,540,875) 96,304,667
Total investments in securities $ 92,271,558 97,845,542 (1,540,875) 96,304,667
Notes to schedule of investments:
(a) Securities are valued by procedures described in note 2 to the financial statements.
(b) Wells Fargo Stable Return Fund G is another Wells Fargo Bank, N.A. – sponsored collective trust fund.
(c) Represents the Fund’s portion of the underlying fully benefit-responsive investment contracts at fair value held by Wells Fargo Stable Return Fund G.
See accompanying notes to the financial statements.
Wells Fargo Stable Return Fund I35
42
WELLS FARGO STABLE RETURN FUNDS F, N, N15, N25, N35, N60, TR, I, I25, I35
Notes to Financial Statements
December 31, 2019
43
Stable Return Fund F Stable Return Fund TR
Stable Return Fund N Stable Return Fund I
Stable Return Fund N15 Stable Return Fund I25
Stable Return Fund N25 Stable Return Fund I35
Stable Return Fund N35
Stable Return Fund N60
(1) Fund Description
The Wells Fargo Stable Return Funds 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) as advised by Galliard Capital Management, Inc. 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.
Investment Objective
The Funds seek to provide investors with a moderate level of stable income without principal volatility. There is no assurance that the Funds will achieve their objective.
(2) 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.”
(a) Investments
At December 31, 2019, the Funds have invested all their assets in Wells Fargo Stable Return Fund G, a collective trust fund sponsored by Wells Fargo Bank, N.A. The value of this investment is based on the underlying unit value reported by Wells Fargo Stable Return Fund G.
As of December 31, 2019, the Funds had ownership interests in the Wells Fargo Stable Return Fund G as follows:
WELLS FARGO STABLE RETURN FUNDS F, N, N15, N25, N35, N60, TR, I, I25, I35
Notes to Financial Statements
December 31, 2019
44
% Ownershipinterest
Wells Fargo Stable Return Fund F 6.67%Wells Fargo Stable Return Fund N 13.72%Wells Fargo Stable Return Fund N15 0.38%Wells Fargo Stable Return Fund N25 0.22%Wells Fargo Stable Return Fund N35 0.49%Wells Fargo Stable Return Fund N60 0.61%Wells Fargo Stable Return Fund TR 0.06%Wells Fargo Stable Return Fund I 7.22%Wells Fargo Stable Return Fund I25 0.23%Wells Fargo Stable Return Fund I35 0.39%
Total 29.99%
The Wells Fargo Stable Return Fund G invests in investment contracts and security-backed contracts. An investment contract is a contract issued by a financial institution to provide a stated rate of return to the buyer of the contract for a specified period of time. A security-backed contract has similar characteristics to a traditional investment contract and is comprised of two parts: the first part is a fixed-income security or portfolio of fixed-income securities; the second part is a contract value guarantee (wrapper) provided by a third party. Wrappers provide contract value payments for certain participant-initiated withdrawals and transfers, a floor crediting rate, and return of fully accrued contract value at maturity.
There are several risks specific to investment contracts. One of the primary risks involved is credit risk of the contract issuer. Credit risk for security-backed contracts includes risks arising from the potential inability of the issuer to meet the terms of the contract wrapper and the potential default of the underlying fixed-income securities. Secondly, liquidity is limited because of the unique characteristics of investment contracts and the absence of an actively traded secondary market. Interest rate risk is also present because rates may be fixed with these products.
Wells Fargo Stable Return Fund G is an investment company and follows accounting and reporting guidance under FASB ASC Topic 946, “Financial Services – Investment Companies.” Wells Fargo Stable Return Fund G carries its investments at contract value and applies the provisions of FASB ASC Sections 946-210-45 and 946-210-50 for stable value investment funds. These Sections affirm contract value accounting for fully benefit-responsive investment contracts and prohibits the Wells Fargo Stable Return Fund G’s acceptance of new contributions from defined benefit plans subsequent to January 15, 2006. These Subtopics also require financial statement presentations standards – (i) fair value disclosure and (ii) enhanced footnote disclosures.
Note 2(b) to the Wells Fargo Stable Return Fund G financial statements provides a detailed discussion of its valuation policies. The financial statements of Wells Fargo Stable Return Fund G are available upon request.
The Funds do not invest directly in fully benefit-responsive contracts, and therefore are not required to include in the financial statements the disclosure requirements for stable value investment funds.
WELLS FARGO STABLE RETURN FUNDS F, N, N15, N25, N35, N60, TR, I, I25, I35
Notes to Financial Statements
December 31, 2019
45
However, certain information is provided to assist participating plans with their audits. The Funds are 100% invested in the Wells Fargo Stable Return Fund G. For information not included in these financial statements, refer to the financial statements of Wells Fargo Stable Return Fund G, which are available upon request.
The fair value to contract value ratios for the Funds as of December 31, 2019 and 2018 were:
Fair value to Net assets at Net assets at contract value
fair value contract value ratio
Wells Fargo Stable Return Fund F $ 1,678,947,929 1,652,797,686 101.6%Wells Fargo Stable Return Fund N 3,575,646,631 3,519,326,318 101.6%Wells Fargo Stable Return Fund N15 93,999,418 92,518,567 101.6%Wells Fargo Stable Return Fund N25 54,406,234 53,549,022 101.6%Wells Fargo Stable Return Fund N35 121,110,254 119,201,952 101.6%Wells Fargo Stable Return Fund N60 152,317,050 149,916,608 101.6%Wells Fargo Stable Return Fund TR 14,072,102 13,850,358 101.6%Wells Fargo Stable Return Fund I 1,797,641,032 1,769,327,138 101.6%Wells Fargo Stable Return Fund I25 58,127,180 57,211,377 101.6%Wells Fargo Stable Return Fund I35 97,796,530 96,255,655 101.6%
2019
Fair value to Net assets at Net assets at contract value
fair value contract value ratio
Wells Fargo Stable Return Fund F $ 1,654,254,789 1,671,972,086 98.9%Wells Fargo Stable Return Fund N 3,896,687,321 3,940,035,832 98.9%Wells Fargo Stable Return Fund N15 160,951,582 162,742,332 98.9%Wells Fargo Stable Return Fund N25 69,323,238 70,094,641 98.9%Wells Fargo Stable Return Fund N35 374,657,761 378,826,966 98.9%Wells Fargo Stable Return Fund N60 203,303,962 205,566,784 98.9%Wells Fargo Stable Return Fund TR 12,196,845 12,332,598 98.9%Wells Fargo Stable Return Fund I 1,846,224,286 1,866,761,900 98.9%Wells Fargo Stable Return Fund I25 57,650,078 58,291,575 98.9%Wells Fargo Stable Return Fund I35 94,232,324 95,280,940 98.9%
2018
WELLS FARGO STABLE RETURN FUNDS F, N, N15, N25, N35, N60, TR, I, I25, I35
Notes to Financial Statements
December 31, 2019
46
Yield Analysis
The yield earned by the Funds at December 31, 2019 and 2018 was 2.09% and 3.07%, respectively. This represents the annualized earnings of all investments in the Funds, including the earnings recorded at the underlying collective trust funds, divided by the fair value of all investments in the Funds at December 31, 2019 and 2018, respectively.
The yield earned by the Funds with an adjustment to reflect the actual interest rate credited to participants in the Funds at December 31, 2019 and 2018 was 2.59% and 2.43%, respectively. This represents the annualized earnings credited to participants in the Funds, divided by the fair value of all investments in the Funds at December 31, 2019 and 2018, respectively.
(b) Investment Transactions and Interest Income
Investment transactions are accounted for on the trade date. Realized gains and losses are determined on the basis of average cost.
Wells Fargo Stable Return Fund G does 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 Wells Fargo Stable Return Fund G, such as the Funds.
(c) 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 informational 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 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.
(d) 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
WELLS FARGO STABLE RETURN FUNDS F, N, N15, N25, N35, N60, TR, I, I25, I35
Notes to Financial Statements
December 31, 2019
47
reinvested and reflected in the net asset value of the fund. Units of the Funds are issued and redeemed at the current net asset value. Redemptions by participating plans occur at net asset value following the 12-month notice period.
(e) 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 disclosure 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.
(f) Fair Value Classifications
Fair value measurement guidance establishes an authoritative definition of fair value, sets out a framework for measuring fair value, and requires disclosure about fair value measurement.
As described in 2(a), the Funds have invested all assets in Wells Fargo Stable Return Fund G, a collective trust fund. The investments held by Wells Fargo Stable Return Fund G have separate fair value hierarchy level categorizations which can be found in its financial statements.
The investment in Wells Fargo Stable Return Fund G is valued as a practical expedient utilizing the net asset valuation, exclusive of the adjustment to contract value. The use of net asset value as fair value is deemed appropriate as the collective trust fund does not have a finite life, unfunded commitments relating to these types of investments, or significant restrictions on redemptions. The practical expedient is used for valuation, unless it is probable that the Funds will sell a portion of the investment at an amount different from the net asset valuation.
As of December 31, 2019, the fair value of the investment of each Fund is detailed in the schedule below, exclusive of the adjustment to contract value.
Fair Value of Investment
Wells Fargo Stable Return Fund F $ 1,660,540,426Wells Fargo Stable Return Fund N 3,417,831,652Wells Fargo Stable Return Fund N15 94,034,030Wells Fargo Stable Return Fund N25 54,432,955Wells Fargo Stable Return Fund N35 121,177,206Wells Fargo Stable Return Fund N60 152,428,072Wells Fargo Stable Return Fund TR 14,080,720Wells Fargo Stable Return Fund I 1,797,932,292Wells Fargo Stable Return Fund I25 58,153,493Wells Fargo Stable Return Fund I35 97,845,542
WELLS FARGO STABLE RETURN FUNDS F, N, N15, N25, N35, N60, TR, I, I25, I35
Notes to Financial Statements
December 31, 2019
48
(3) Expenses
The Funds listed pay investment management and trustee fees equal to an annual rate as a percentage of average daily net assets as detailed in the schedule below:
Investment management fees
Trustee fees
Wells Fargo Stable Return Fund F 0.160% — Wells Fargo Stable Return Fund N 0.200% 0.030%Wells Fargo Stable Return Fund N15 0.200% 0.030%Wells Fargo Stable Return Fund N25 0.200% 0.030%Wells Fargo Stable Return Fund N35 0.200% 0.030%Wells Fargo Stable Return Fund N60 0.200% 0.030%Wells Fargo Stable Return Fund TR 0.160% — Wells Fargo Stable Return Fund I 0.160% 0.030%Wells Fargo Stable Return Fund I25 0.160% 0.030%Wells Fargo Stable Return Fund I35 0.160% 0.030%
In addition, the Funds listed paid plan operations fees equal to an annual rate as a percentage of average daily net assets as detailed in the schedule below:
Plan operationsfee
Wells Fargo Stable Return Fund F — Wells Fargo Stable Return Fund N — Wells Fargo Stable Return Fund N15 0.150%Wells Fargo Stable Return Fund N25 0.250%Wells Fargo Stable Return Fund N35 0.350%Wells Fargo Stable Return Fund N60 0.600%Wells Fargo Stable Return Fund TR 0.315%Wells Fargo Stable Return Fund I — Wells Fargo Stable Return Fund I25 0.250%Wells Fargo Stable Return Fund I35 0.350%
The Target My RetirementSM program is a managed retirement solution that provides participants with professional investment advice, based on a personalized investment strategy. Wells Fargo has retained Morningstar Associates, LLC, as an independent financial expert to provide investment advice for the Target My RetirementSM program. Morningstar receives 0.065% for their investment advice and Wells Fargo receives 0.25% as program manager based on annualized net assets in the program. Expenses were charged to participant accounts adopting the program. Fees are accrued on a daily basis and TR unit values are net of program fees and expenses. This program is only applicable to Wells Fargo Stable Return Fund TR.
WELLS FARGO STABLE RETURN FUNDS F, N, N15, N25, N35, N60, TR, I, I25, I35
Notes to Financial Statements
December 31, 2019
49
The Funds’ financial statements and financial highlights exclude the impact of any ancillary expense arrangements that are paid outside the Funds. For further discussion on fees, the Funds’ disclosure books are available upon request.
(4) Securities Transactions
Investment transactions in Wells Fargo Stable Return Fund G for the year ended December 31, 2019 are as follows:
Purchases
Cost ofinvestments
Investment:Wells Fargo Stable Return Fund G:
Wells Fargo Stable Return Fund F $ 200,076,694 Wells Fargo Stable Return Fund N 315,856,830 Wells Fargo Stable Return Fund N15 67,638,959 Wells Fargo Stable Return Fund N25 13,926,738 Wells Fargo Stable Return Fund N35 34,345,126 Wells Fargo Stable Return Fund N60 26,570,650 Wells Fargo Stable Return Fund TR 4,059,371 Wells Fargo Stable Return Fund I 143,058,000 Wells Fargo Stable Return Fund I25 13,479,616 Wells Fargo Stable Return Fund I35 7,664,161
Sales
Proceeds Netfrom sales realized gain
Investment:Wells Fargo Stable Return Fund G:
Wells Fargo Stable Return Fund F $ 218,121,269 14,166,682 Wells Fargo Stable Return Fund N 990,186,007 120,605,220 Wells Fargo Stable Return Fund N15 119,184,621 9,393,160 Wells Fargo Stable Return Fund N25 15,003,497 1,379,894 Wells Fargo Stable Return Fund N35 276,339,474 45,252,711 Wells Fargo Stable Return Fund N60 86,557,700 19,916,756 Wells Fargo Stable Return Fund TR 2,884,062 332,948 Wells Fargo Stable Return Fund I 287,498,393 10,086,092 Wells Fargo Stable Return Fund I25 16,028,712 525,936 Wells Fargo Stable Return Fund I35 9,135,166 297,091
WELLS FARGO STABLE RETURN FUNDS F, N, N15, N25, N35, N60, TR, I, I25, I35
Notes to Financial Statements
December 31, 2019
50
A detailed transaction schedule is available upon request.
(5) Financial Highlights
Selected data for a participant unit outstanding for the year ended December 31, 2019 for the Wells FargoStable Return Funds F, N, N15, N25, N35, N60, TR, I, I25 and I35 are as follows:
Wells Fargo Wells Fargo Wells Fargo Wells Fargo Wells Fargo Wells Fargo Wells FargoStable Return Stable Return Stable Return Stable Return Stable Return Stable Return Stable Return
Fund F Fund N Fund N15 Fund N25 Fund N35 Fund N60 Fund TR
Total expenses* $ (0.018) (0.128) (0.048) (0.060) (0.303) (0.423) (0.068) Net realized and unrealized gains* 0.282 1.426 0.317 0.313 1.323 1.293 0.344
Net increase in unit value from operations 0.264 1.298 0.269 0.253 1.020 0.870 0.276
Unit value at beginning of year 10.928 55.403 12.275 12.149 51.463 50.340 13.338
Unit value at end of year $ 11.192 56.701 12.544 12.402 52.483 51.210 13.614
Total return 2.42% 2.34% 2.19% 2.08% 1.98% 1.73% 2.07%Net assets at end of year
(in millions) $ 1,653 3,519 93 54 119 150 14
Ratio of expensesto average daily net assets** 0.160% 0.230% 0.383% 0.491% 0.584% 0.834% 0.503%
Ratio of net investment lossto average daily net assets** (0.160%) (0.230%) (0.383%) (0.491%) (0.584%) (0.834%) (0.503%)
Wells Fargo Wells Fargo Wells FargoStable Return Stable Return Stable Return
Fund I Fund I25 Fund I35
$ (0.107) (0.055) (0.283) 1.428 0.313 1.325
1.321 0.258 1.042
55.424 12.153 51.480
$ 56.745 12.411 52.522
2.38% 2.12% 2.02%
Total expenses*Net realized and unrealized gains*
Net increase in unit value from operations
Unit value at beginning of yearUnit value at end of year
Total return***Net assets at end of year
(in millions) $ 1,769 57 96
Ratio of expensesto average daily net assets** 0.190% 0.450% 0.546%
Ratio of net investment lossto average daily net assets** (0.190%) (0.450%) (0.546%)
* The per-share unit amounts for total expenses and net realized and unrealized gains are calculated based on a daily average of units outstanding for the year.
** Ratio is annualized and does not include the impact of expenses charged by the Wells Fargo Stable Return Fund G equal to 0.150% of the Wells Fargo Stable Return Fund G’s average daily net assets.
WELLS FARGO STABLE RETURN FUNDS F, N, N15, N25, N35, N60, TR, I, I25, I35
Notes to Financial Statements
December 31, 2019
51
(6) Subsequent Events Evaluation
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 Fund and the securities in which the Fund invests may be adversely affected by impacts caused by COVID-19.
The Fund has 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 adjustments.
WELLS FARGO STABLE RETURN FUNDS F, N, N15, N25, N35, N60, TR, I, I25, I35
Notes to Financial Statements
December 31, 2019
52
Regulatory Statement (unaudited)
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 theInternal Revenue Code (IRC), and which is exempt from tax under IRC Section 501 (a) or is part of agovernmental plan as defined by IRC Section 818(a)(6).
The participating plan or trust instrument of qualified plans adopts documents establishing WellsFargo 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 follows:
EIN
Wells Fargo Stable Return Fund F 46-6933767Wells Fargo Stable Return Fund N 41-6202499Wells Fargo Stable Return Fund N15 80-6052573Wells Fargo Stable Return Fund N25 80-6052574Wells Fargo Stable Return Fund N35 52-2251296Wells Fargo Stable Return Fund N60 52-2251407Wells Fargo Stable Return Fund TR 46-6208187Wells Fargo Stable Return Fund I 82-6652363Wells Fargo Stable Return Fund I25 82-6662590Wells Fargo Stable Return Fund I35 82-6665945
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.