1 CM Wells Fargo Disciplined U.S. Core Fund

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1 All information is as of 3/31/2018 unless otherwise indicated. Ticker: EVSIX Portfolio managers: Greg Golden, CFA; and Justin Carr, CFA Subadvisor: Wells Capital Management Inc. Category: Large blend Employs an actively managed, risk-controlled process to build a diversified portfolio of companies with characteristics similar to the but with a superior valuation and earnings profile; the investment process emphasizes value-added security selection as a driver of relative performance. Uses fundamentally based research and implements investment decisions largely based on quantitative analysis; the team capitalizes on the firm s proprietary multi-factor models which combine valuation, earnings, and momentum measures and also incorporates risk modeling and optimization into its analysis, seeking to minimize unintended sector, industry, size, or style bets relative to the benchmark. Disciplined U.S. Core Fund- Inst 3 month Year to date *Returns for periods of less than one year are not annualized. 1 year year year year Since inception (2/28/90) Figures quoted represent past performance, which is no guarantee of future results, and do not reflect taxes a shareholder may pay on a fund. Investment return and principal value of an investment will fluctuate so that an investor s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted and assumes the reinvestment of dividends and capital gains. Current month-end performance is available at the fund s website, wellsfargofunds.com. Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge. The fund s gross expense ratio is 0.52%. The fund s net expense ratio is 0.48%. The manager has contractually committed, through November 30, 2018, to waive fees and/or reimburse expenses to the extent necessary to cap the fund s total annual fund operating expenses after fee waivers at 0.48% for the Institutional Class. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses (if any), and extraordinary expenses are excluded from the cap. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Without this cap, the fund s returns would have been lower. The expense ratio paid by an investor is the net expense ratio (the total annual fund operating expenses after fee waivers) as stated in the prospectus The fund underperformed the for the 3-month and the 12-month periods that ended March 31, Select holdings benefited from positive earnings momentum, although our focus on valuations was misaligned with market trends. During the quarter, lack of exposure to select index constituents detracted from results, as did other consumer holdings. Contributions to returns at the sector level were muted. The largest individual contributor was Micron Technology, Inc. Since the beginning of 2018, the U.S. stock market has experienced a number of distinct market phases, including a period of strength, a correction, a subsequent rebound, and another market dip evidence that market volatility has increased. Early in the quarter, earnings growth that was aided by tax reform sent the market to record highs. By the end of January, the market began to pull back, resulting in a 10% correction as inflation concerns led to uncertainty regarding the severity of future Federal Reserve (Fed) actions and interest rate trends. However, corporate growth continued, investors gained comfort with the new Fed chair, and no new evidence came to light supporting inflation concerns. So, the market rebounded until mid-march, when the U.S. enacted new tariffs on imports, spurring fears of potential trade wars. Earnings supported stock prices, marking the third time in the past four quarters that the reported double-digit earnings growth. The fund s performance benefited from investment in select firms with attractive earnings and sales momentum. However, our strategy was challenged by investors disregard for valuations as some of the most expensive stocks posted the best returns within the. We still believe that earnings growth likely may drive market leadership. However, we also believe the market s bias toward growth stocks has created an opportunity to invest in under-recognized companies with higher-quality fundamentals, such as balance-sheet strength and earnings consistency, and attractive stock valuations. As we adhere to our disciplined stock-selection process, we continue to emphasize higherquality firms we view as attractively valued and most likely to potentially beat earnings estimates. We believe a multifactor approach helps us differentiate between firms that may continue in their growth trends and those whose growth trajectories may soon waver. (See pages 6 7 for important information.) 1 CM Wells Fargo Disciplined U.S. Core Fund

2 Disciplined U.S. Core Fund versus Select holdings with favorable earnings and trade momentum benefited returns. We believe these factors in combination with historical trends may signal whether conditions at a company are improving or deteriorating. Our attention to valuation was not aligned with market leadership. We tend to maintain a portfolio with an average price/earnings (P/E) ratio that is lower than that of the. Historical data have shown that inexpensive stocks that exceed earnings expectations have outperformed the index over the long term. returns have been highly supported by Amazon.com, Inc., and Netflix, Inc., two internet-related stocks residing in the consumer sector. Both companies ranked poorly in our total composite model due to unfavorable valuations and earnings quality, but the fund s lack of exposure to Netflix and underweight to Amazon.com detracted from performance. Within the consumer sector, Nutrisystem, Inc., reported quarterly earnings that were below market expectations and provided guidance for 2018 that was 13% below the consensus estimate, disappointing investors. Management indicated that the Nutrisystem brand had a slower-than-expected start to the diet season caused by a poor response to the company s marketing campaign; however, the company viewed this as a temporary and fixable setback and expects a return to meaningful growth in While Nutrisystem s earnings and sales momentum trends have deteriorated over recent months, other factors assessed by our total composite model, such as earnings quality and valuations, have remained favorable. Relative performance within the information (IT) sector was somewhat mixed; however, semiconductor holding Micron Technology was the fund s largest individual contributor. The stock rallied sharply after reporting results for the first fiscal quarter of 2018 that beat analysts estimate for earnings per share by nearly 11%. Market demand has remained strong for DRAM memory, and contract pricing has continued to increase due to persistent undersupply. The company also announced a major initiative into storage solutions, which may boost revenues and margins over time. Fundamental factors related to the company including valuation, earnings growth, earnings and sales momentum, and trading momentum ranked in the top decile within our total composite model. from sector weight (%) from stock selection (%) Total value added (%) Disciplined U.S. Core Fund Over/underweight Fund sector return Index sector return Relative return Sources: FactSet and Wells Fargo Funds Management, LLC Sector weights are subject to change and may have changed since the date specified. Real estate services Utilities Real estate services Utilities When reviewing the performance attribution of our portfolio, it is vital to remember that we construct our portfolio from the bottom up, one stock at a time. Each stock is included in the portfolio based on its own investment thesis. To help manage risk, we are aware of our sector and security weights, but we do not include a holding to obtain a sector distribution to resemble an index. Our exposure to any given sector is a result of our security selection process. 2 Wells Fargo Disciplined U.S. Core Fund

3 Disciplined U.S. Core Fund versus Investors were more inclined to favor strong growth prospects over select companies we owned with attractive earnings quality and cheaper valuations. An overweight to higher-dividend-paying firms also detracted from performance. However, our bias stemmed from our emphasis on earnings quality; in our view, healthy firms with solid fundamentals often have proved capable of paying out consistent dividends. In the financials sector, insurance holdings experienced a spike in catastrophe losses. The destruction from hurricanes, wildfires, and other tragedies caused by nature weighed on these stocks, as did the perceived risk of additional claims. We still believe that positive net flows may bode well for insurers over the longer term. Relative to banks, we believe insurers have more opportunities to reprice products based on market conditions. To a lesser extent, an underweight to financial exchange and data firms detracted from returns. In the consumer sector, Nutrisystem expanded its solutions for those seeking to lose weight. However, temporary setbacks caused the stock to plunge; we remain optimistic about Nutrisystem longer term. Performance also was pressured by the fund s lack of exposure to Netflix. Within the materials sector, holdings such as Avery Dennison Corp. aided results. Strong organic sales growth and margin expansion drove Avery s appreciation. We continue to like the company s consistent earnings-growth trend and its effective use of to increase the usefulness of its labels to customers. Within energy, judicious selection and an underweight to exploration and production companies benefited returns. Our disciplined investment process kept us from investing prematurely in firms that did not demonstrate sufficient profit trends. Abundant supply and energy-conservation initiatives by consumers have created headwinds for firms within the sector. Semiconductor holdings benefited results within the IT sector. Micron Technology appreciated significantly, especially during the first quarter of NVIDIA Corp. also aided performance, benefiting from growing demand for its gaming chips. Softwarerelated profits also were notable due to innovative graphics capabilities. NVIDIA has continued to gain traction within the driverless-car market via its computer vision system and related technologies and has diversified revenues among various company segments. from sector weight (%) from stock selection (%) Total value added (%) Disciplined U.S. Core Fund Over/underweight Fund sector return Index sector return Relative return Sources: FactSet and Wells Fargo Funds Management, LLC Sector weights are subject to change and may have changed since the date specified. Real estate services Utilities Real estate services Utilities When reviewing the performance attribution of our portfolio, it is vital to remember that we construct our portfolio from the bottom up, one stock at a time. Each stock is included in the portfolio based on its own investment thesis. To help manage risk, we are aware of our sector and security weights, but we do not include a holding to obtain a sector distribution to resemble an index. Our exposure to any given sector is a result of our security selection process Wells Fargo Disciplined U.S. Core Fund

4 During the quarter, economic growth was supported partly by two powerful supply-side forces deregulation and tax reform that have been making their way through the U.S. economy. These policies have boosted business and consumer confidence, motivating more companies to hire and more potential employees to look for jobs. We expect the Fed may continue its rate increases and balance-sheet reductions at a measured pace. Although the yield curve steepened early in the quarter, it resumed its flattening trend that began in We believe the curve may continue to flatten later in While long-term interest rates may rise as the Fed reduces its balance sheet and the widening federal budget deficit pushes long-term rates higher, inflation fears may cause the Fed to accelerate its pace of raising short-term rates, causing them to rise faster than long-term rates. We continue to believe that earnings growth will be the primary market driver in coming quarters, as it was throughout 2017 and the first quarter of Although strong reported earnings and positive earnings-estimate revisions have reduced the trailing and forward P/E ratios of the, we still think it is unlikely the market multiple will expand much, given the elevated valuation levels and rising interest rates. In our view, the heightened volatility experienced in the first quarter may persist throughout 2018, favoring higher-quality stocks. The fund s biggest threats continue to be a significant economic slowdown or a geopolitical shock that causes investors to seek defensive stocks perceived as less volatile. We will continue to focus on company fundamentals while being mindful of the evolving macroeconomic environment and its impact on the expectations for both corporate earnings and investors risk appetites. In terms of trends, we believe stock buybacks could emerge as a key theme in Repurchases may accelerate as many companies, especially larger ones, look to return record profits and repatriate cash earned outside the U.S. Share class A C Admin Inst R R6 Ticker EVSAX EVSTX EVSYX EVSIX EVSHX EVSRX Gross expense ratio (%) Net expense ratio (%) Contractual expense waiver date The manager has contractually committed to waive fees and/or reimburse expenses to the extent necessary to cap the fund s total annual fund operating expenses after fee waivers at 0.87% (A), 1.62% (C), 0.74% (Admin), 0.48% (Inst), 1.12% (R), and 0.43% (R6). Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses (if any), and extraordinary expenses are excluded from the cap. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Without this cap, the fund s returns would have been lower. The expense ratio paid by an investor is the net expense ratio (the total annual fund operating expenses after fee waivers) as stated in the prospectus. 4 Wells Fargo Disciplined U.S. Core Fund

5 Stock Apple Inc. Microsoft Corporation Berkshire Hathaway Inc. Class B Amazon.com, Inc. Johnson & Johnson Facebook, Inc. Class A JPMorgan Chase & Co. Exxon Mobil Corporation Alphabet Inc. Class C Alphabet Inc. Class A Weighted average market cap Weighted median market cap EPS Growth (3- to 5-year forcast) P/B ratio P/S ratio Number of equity holdings Fund $213.04B $118.49B 10.14% 2.74x 1.50x 128 % of net assets $199.03B $100.55B 11.51% P/E ratio (trailing 12-month) 17.28x 21.47x Turnover % Source: FactSet 3.21x 2.19x Inception date 2/28/90 Net expense ratio Inst 0.48% Assets all share classes $1.27B Portfolio holdings and characteristics are subject to change and may have changed since the date specified. The holdings listed should not be considered recommendations to purchase or sell a particular security. 1. Calculated based on a one-year period. 505 Disciplined U.S. Core Fund-Inst Lipper Large-Cap Core Funds Average Morningstar Large Blend Average 1 year year Morningstar total return rankings Institutional Class (as of 3/31/18) Morningstar Category Large blend 1 year 3 year 5 year 10 year Overall Morningstar Rating 780 out of 1, out of 1, out of 1,077 N/A 5 year year The Overall Morningstar Rating, a weighted average of the 3-, 5-, and 10-year (if applicable) ratings, is out of 1,204 funds in the Large blend category, based on risk-adjusted returns as of 3/31/18. Alpha Beta Sharpe ratio Standard deviation R-squared ratio Upside capture Downside capture Fund % % 94.73% Tracking error 1.25% 2. Calculated for the Institutional Class based on a three-year period. Relative measures are compared with the fund s benchmark. 5 Wells Fargo Disciplined U.S. Core Fund

6 Benchmark descriptions: The Lipper averages are compiled by Lipper, Inc., an independent mutual fund research and rating service. Each Lipper average represents a universe of funds that are similar in investment objective. You cannot invest directly in a Lipper average. The Morningstar Category average is the average return for the peer group based on the returns of each individual fund within the group. The total return of the Morningstar Category average does not include the effect of sales charges. You cannot invest directly in a Morningstar Category average. The consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock's weight in the index proportionate to its market value. You cannot invest directly in an index. Attribution analysis: Performance attribution and sector returns are calculated using the Brinson-Fachler attribution model. As such, performance attribution calculations may differ from the fund s actual investment results. Definition of terms: Alpha measures the difference between a fund s actual returns and its expected performance given its level of risk (as measured by beta). Beta measures fund volatility relative to general market movements. It is a standardized measure of systematic risk in comparison with a specified index. The benchmark beta is 1.00 by definition. Downside capture measures a fund s replication of its benchmark during periods of negative returns. During periods of negative benchmark returns, a downside capture ratio less than 100% reflects product performance greater than the benchmark and a downside capture ratio greater than 100% reflects performance less than the benchmark. ratio measures the consistency of excess return (return in excess of a benchmark). This value is determined by taking the annualized excess return over a benchmark (style benchmark by default) and dividing it by the standard deviation of excess return. R-squared is a measurement of how similar a fund s historical performance has been to that of the benchmark. The measure ranges from 0.0, which means that the fund s performance bears no relationship to the performance of the index, to 1.0, which means that the fund s performance was perfectly synchronized with the performance of the benchmark. Sharpe ratio measures the potential reward offered by a mutual fund relative to its risk level. The ratio uses a fund s standard deviation and its excess return to determine reward per unit of risk. The higher the Sharpe ratio, the better the fund s historical risk-adjusted performance. Standard deviation represents the degree to which an investment s performance has varied from its average performance over a particular time period. Tracking error measures the extent to which a manager s performance mimics that of a benchmark. The value is the standard deviation of the difference between a fund s performance and a benchmark s performance. Upside capture measures a fund s replication of its benchmark during periods of positive returns. During periods of positive benchmark returns, an upside capture ratio greater than 100% reflects product performance greater than the benchmark and an upside capture ratio less than 100% reflects performance less than the benchmark. 6 Wells Fargo Disciplined U.S. Core Fund

7 The Morningstar Rating for funds, or star rating, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar risk-adjusted return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its 3-, 5-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% 3-year rating for months of total returns, 60% 5-year rating/40% 3-year rating for months of total returns, and 50% 10-year rating/30% 5-year rating/20% 3-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent 3-year period actually has the greatest impact because it is included in all three rating periods. Across U.S.-domiciled large blend funds, the Disciplined U.S. Core Fund received 4 stars among 1,204 funds, 5 stars among 1,077 funds, and 5 stars among 802 funds for the 3-, 5-, and 10-year periods, respectively. The Morningstar Rating is for the Institutional Class only; other classes may have different performance characteristics. Some of Morningstar s proprietary calculations, including the Morningstar Rating, are not customarily calculated based on adjusted historical returns. However, for new share classes/channels, Morningstar may calculate an extended-performance Morningstar Rating. The extended performance is calculated by adjusting the historical total returns of the oldest share class of a fund to reflect the fee structure of the younger share class/channel, attaching this data to the younger share class s performance record, and then compounding the adjusted plus actual monthly returns into the extended-performance Morningstar risk-adjusted return for the 3-, 5-, and 10-year time periods. The Morningstar risk-adjusted returns are used to determine the extended-performance Morningstar Rating. The extendedperformance Morningstar Rating for this fund does not affect the retail fund data published by Morningstar, as the bell curve distribution on which the ratings are based includes only funds with actual returns. The Overall Morningstar Rating for multishare funds is based on actual performance only or extended performance only. Once the share class turns three years old, the Overall Morningstar Rating will be based on actual ratings only. The Overall Morningstar Rating for multishare variable annuities is based on a weighted average of any ratings that are available. While the inclusion of pre-inception data in the form of extended performance can provide valuable insight into the probable long-term behavior of newer share classes of a fund, investors should be aware that an adjusted historical return can provide only an approximation of that behavior. For example, the fee structures of a retail share class will vary from that of an institutional share class, as retail shares tend to have higher operating expenses and sales charges. These adjusted historical returns are not actual returns. The underlying investments in the share classes used to calculate the pre-performance string likely will vary from the underlying investments held in the fund after inception. Calculation methodologies used by Morningstar may differ from those applied by other entities, including the fund itself. Risks: Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. The use of derivatives may reduce returns and/or increase volatility. Consult the fund s prospectus for additional information on these and other risks. The inception date of the Institutional Class was July 30, Performance shown for the Institutional Class prior to its inception reflects the performance of the fund s Administrator Class. Performance shown includes the higher expenses applicable to the Administrator Class. If these expenses had not been included, returns would be higher. Historical performance shown for the Administrator Class of the fund prior to July 19, 2010, is based on the performance of the fund s predecessor, the Evergreen Enhanced S&P 500 Fund. The views expressed in this document are as of March 31, 2018, and are those of the portfolio manager(s). The views are subject to change at any time in response to changing circumstances in the market and are not intended to predict or guarantee the future performance of any individual security, market sector or the markets generally, or any Wells Fargo Fund. Any specific securities discussed may or may not be current or future holdings of the fund. The securities discussed should not be considered recommendations to purchase or sell a particular security. Wells Fargo Funds Management, LLC, disclaims any obligation to publicly update or revise any views expressed or forward-looking statements. Carefully consider a fund s investment objectives, risks, charges, and expenses before investing. For a current prospectus and, if available, a summary prospectus, containing this and other information, visit wellsfargofunds.com. Read it carefully before investing. Wells Fargo Asset Management (WFAM) is a trade name used by the asset management businesses of Wells Fargo & Company. Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the funds. The funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA, an affiliate of Wells Fargo & Company. Neither Wells Fargo Funds Distributor nor Wells Fargo Funds Management holds fund shareholder accounts or assets. This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind including a recommendation for any specific investment, strategy, or plan NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE CM Wells Fargo Disciplined U.S. Core Fund