wells fargo bank, n.a....net assets reflecting investments at fair value 3,575,646,631 adjustment...

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 TR

WELLS FARGO STABLE RETURN FUND I

WELLS FARGO STABLE RETURN FUND I25


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 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.


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



4

Statement of Changes in Net Assets


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



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.


6


December 31, 2019


(cost: $3,094,255,452) (note 2) $ 3,417,831,652 Receivable for investment securities sold 158,508,217


Liabilities:Accrued investment management fee 598,650 Accrued 5500 filing fee 1,755 Accrued trustee fee 89,797 Accrued audit fee 3,036







7


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)


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






8



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 assets:

Beginning of year (71,116,275 units) 3,940,035,832

End of year (62,067,698 units) $ 3,519,326,318



9


December 31, 2019












10


December 31, 2019


(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


Net assets reflecting investments at fair value 93,999,418


Net assets, 7,375,613 units outstanding, $12.544 unit value $ 92,518,567



11



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)


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




12



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)


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 assets:

Beginning of year (13,257,526 units) 162,742,332

End of year (7,375,613 units) $ 92,518,567



13


December 31, 2019




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



(b) Wells Fargo Stable Return Fund G is another Wells Fargo Bank, N.A. – sponsored collective trust fund.




14


December 31, 2019


(cost: $51,343,731) (note 2) $ 54,432,955





Adjustment from fair value to contract value for underlying fully benefit-responsiveinvestment contracts (857,212)




15



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)


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





16



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 assets:


End of year (4,317,860 units) $ 53,549,022



17


December 31, 2019




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







18


December 31, 2019


(cost: $115,686,108) (note 2) $ 121,177,206









19





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





20





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 assets:


End of year (2,271,240 units) $ 119,201,952



21


December 31, 2019












22


December 31, 2019


(cost: $139,525,023) (note 2) $ 152,428,072









23





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





24





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 assets:


End of year (2,927,477 units) $ 149,916,608



25


December 31, 2019












26


December 31, 2019


(cost: $13,330,440) (note 2) $ 14,080,720


Liabilities:Accrued investment management fee 1,880 Accrued plan operations fee 3,702 Accrued audit fee 3,036







27


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


Net change in net assets resulting from operations $ 275,046




28


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




29


December 31, 2019












30


December 31, 2019


(cost: $1,696,093,302) (note 2) $ 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







31



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


Expenses:Investment management fee (note 3) 2,952,864 5500 filing fee 1,790 Trustee fee (note 3) 553,662 Audit fee 3,754





32



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 derived from participant unit transactions (140,925,664)


Net assets:

Beginning of period (33,681,714 units) 1,866,761,900

End of period (31,180,079 units) $ 1,769,327,138



33


December 31, 2019












34


December 31, 2019


(cost: $55,200,420) (note 2) $ 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







35



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


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





36



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 derived from participant unit transactions (2,289,901)


Net assets:

Beginning of period (4,796,286 units) 58,291,575

End of period (4,609,651 units) $ 57,211,377



37


December 31, 2019









(c) Represents the Fund’s portion of the underlying fully benefit-responsive investment contracts at fairvalue held by Wells Fargo Stable Return Fund G.



38


December 31, 2019


(cost: $92,271,558) (note 2) $ 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






Wells Fargo Stable Return Fund I35

39



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


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





40



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)


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:


End of year (1,832,685 units) $ 96,255,655



41


December 31, 2019












42


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:



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.



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



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



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



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.



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



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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.



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(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.



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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.

wells fargo bank, n.a....net assets reflecting investments at fair value 3,575,646,631 adjustment...

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