1 CM Wells Fargo International Value Fund

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1 All information is as of 3/31/2018 unless otherwise indicated. Ticker: WFVIX Portfolio managers: Josef Lakonishok, Ph.D.; Puneet Mansharamani, CFA; and Menno Vermeulen, CFA Subadvisor: LSV Asset Management Category: Foreign large value Employs a deep-value strategy that seeks to invest in undervalued international companies with high potential for near-term price appreciation Follows a disciplined quantitative process designed to systematically exploit the judgmental biases and behavioral weaknesses that influence the decisions of many investors Focuses on stock selection within sectors while maintaining a country-neutral approach compared with the MSCI EAFE Value Index (Net); the buy and sell decisions generated by the quantitative model: in order for a security to be added to the portfolio, it must be in the top 15% of all stocks according to LSV s ranking model, and stocks are sold when they fall below the top 40% International Value Fund-Inst MSCI EAFE Value Index (Net) 3 month Year to date *Returns for periods of less than one year are not annualized. 1 year year year year Since inception (10/31/03) 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 7%. The fund s net expense ratio is 0%. The manager has contractually committed, through September 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% 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 outperformed its benchmark, the MSCI EAFE Value Index (Net), for the 3-month and 12-month periods that ended March 31, Stock selection in the financials and information technology (IT) sectors was a significant contributor while investments in the consumer discretionary sector weighed on results. In terms of factor analysis, the fund s overweight to smaller companies, by market capitalization, was a notable contributor while price/earnings (P/E) ratio and momentum positioning were both slight tailwinds to relative performance. By some measures, 2017 was one of the least volatile years for stocks in history. In fact, the MSCI EAFE Value Index (Net) had positive total returns in every quarter and in 11 out of 12 months during the year, and that steady climb continued into January However, investor sentiment soured as concerns about rising wages, potentially accelerated monetary tightening by the U.S. Federal Reserve, and a potential slowdown in global growth weighed on equity markets in February. Later in the quarter, global stocks came under further pressure when fears of escalating trade tensions began to dominate the positive economic and corporate fundamental data that otherwise may have guided the market higher. In March, international markets declined when U.S. President Donald Trump announced a plan to impose tariffs on aluminum and steel imports. Markets were rattled further when, in late March, Trump announced a plan to impose an additional $50 billion in tariffs on Chinese imports to the U.S. These announcements, combined with retaliatory tariffs proposed by China, raised the possibility of a trade war between the world s two largest economies and further accelerated volatility in the markets. The increasing trade tensions bled into Europe, the U.K., and Japan, where equities retreated as worries over rising U.S. interest rates and trade tensions dampened investors optimism. For the fund, stock selection was a significant contributor to relative performance and was led by investments in the financials and IT sectors. An overweight to smaller companies by market capitalization was also a notable contributor. Our portfolio typically will have a median market capitalization below that of the benchmark, and during the quarter, that positioning was a tailwind to relative performance. (See pages 5 6 for important information.) 1 CM Wells Fargo International Value Fund

2 Investments in the financials sector were the largest contributors to relative performance during the quarter. The largest individual contributor was Itausa - Investimentos Itau S.A. The Brazilian bank s shares advanced more than 34% during the quarter. The bank benefited from continued macroeconomic improvement in Brazil and a 25-basis-point (bp; 100 bps equal 0%) central bank rate cut. While the fund maintains a country-neutral approach to investing, we will invest in emerging markets when value is evident. Following a 2016 recession, the Brazilian economy has begun a recovery that the International Monetary Fund expects to accelerate through This macroeconomic dynamic, along with a more stable political atmosphere in the country, has benefited financials stocks significantly. Strong stock selection in IT was another notable contributor and was led by an investment in Tech Mahindra Ltd. Shares in the Indian multinational provider of networking and outsourcing solutions gained approximately 24% during the quarter. Outperformance in the IT sector was broad-based, however, with the fund s investments outperforming the benchmark by more than 13%. Weak stock selection in the consumer discretionary sector was a notable detractor during the quarter. An underweight to the relatively high-performing automobile industry and an investment in CECONOMY AG were the leading detractors. Overall, many retail stocks within the consumer discretionary sector are being weighed down by the potential impact of Amazon.com, Inc., and other e- commerce retailers entering their market. For the German consumer electronic store operator CECONOMY, shares declined 22% during the period after the company announced quarterly earnings results that missed analysts estimates. Overall, the fund s investments in the sector underperformed the benchmark by approximately 2%. The fund s investments in the industrials sector were also detractors during the quarter and were led lower by an investment in Air France-KLM SA. The French airline operator s stock declined 32% based on rising global oil prices, some negative impacts on pricing power, and demand from online discounters and a workers strike that forced the cancellation of hundreds of flights. International Value Fund versus MSCI EAFE Value Index (Net) Value added from sector weight (%) Value added from stock selection (%) Total value added (%) 2.0 discretionary discretionary staples staples Energy Energy Financials Financials Health care Health care International Value Fund MSCI EAFE Value Index (Net) Over/underweight Fund sector return Index sector return Relative return Sources: FactSet and Wells Fargo Funds Management, LLC Past performance is no guarantee of future results. Industrials Industrials Information technology Information technology Materials Materials Real estate Telecommunication services Utilities Telecommunication Real estate services Utilities Sector weights are subject to change and may have changed since the date specified. See pages 5 6 for important information Wells Fargo International Value Fund

3 2.0 1st quintile 2nd quintile 3rd quintile 4th quintile 5th quintile Mega(> $100B) Large($100B - $10B) Small($10B - $2B) Micro(< $2B) 1st quintile 2nd quintile 3rd quintile 4th quintile 5th quintile Value added from P/E weight (%) Value added from stock selection (%) Total Value Added (%) Value added from market capitalization weight (%) Value added from stock selection (%) Total Value Added (%) Value added from share-price momentum weight (%) Value added from stock selection (%) Total Value Added (%) The fund s P/E positioning was a slight contributor to relative performance during the period. A substantial overweight to the cheapest quintile of stocks, based on P/E, was a notable tailwind as those stocks outperformed the benchmark by 52 bps. Our portfolio always will be focused on cheaper areas of the market and our approach places a premium on companies that are generating strong cash flow and earnings. That focus was a tailwind during the first quarter. Stock selection within the P/E quintiles was largely a contributor to relative performance and was led by selection in the lowest two quintiles of stocks by P/E. Source: FactSet. Past performance is no guarantee of future results. We do not use market capitalization as a factor in our model for the fund; however, we employ a flexible midto large-cap approach in an attempt to find the best values while limiting liquidity risk. Despite the fact that our size exposure is simply a by-product of seeking value across the investable universe, market cap frequently has explanatory power on performance. During the past quarter, an overweight to the smallest cohort of equities by market cap was a significant contributor to relative performance. The fund typically will be overweight the small- and mid-cap companies relative to the benchmark, and those allocation decisions aided performance as the smallest companies in the benchmark largely outperformed their large-cap peers during the quarter by almost 3%. Share-price momentum has a smaller weight in the fund s model and primarily is used to avoid value traps, defined as cheap stocks that remain cheap over time. Based on empirical research, we seek equities with poor longer-term share-price momentum but improving near-term momentum. This is the contrarian aspect of our model, and share-price momentum was a contributor during the quarter. The fund maintains some deviations from the benchmark in terms of share-price-momentum allocation, but those deviations are a result of our ability to identify value. This quarter, the fund averaged an approximately 11% overweight to the highest-price-momentum shares in the benchmark, and that positioning was a tailwind to relative performance. 3 Wells Fargo International Value Fund

4 Stock GlaxoSmithKline plc Royal Dutch Shell Plc Class B Nippon Telegraph and Telephone Corporation Sanofi Total SA Enel SpA BP p.l.c. BAE Systems plc KDDI Corporation Roche Holding Ltd Genusssch. 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 $32.48B $13.80B 6.34% 1.19x 0.63x 246 % of net assets $67.78B $45.77B 6.30% P/E ratio (trailing 12-month) 11.15x 12.43x Turnover % Source: FactSet MSCI EAFE Value Index (Net) 1.17x 0.90x Inception date 10/31/03 Net expense ratio Inst 0% Assets all share classes $840.64M 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. 484 International Value Fund-Inst Lipper International Multi-Cap Value Average MSCI EAFE Value Index (Net) Morningstar Foreign Large Value Average 1 year year Morningstar total return rankings Institutional Class (as of 3/31/18) Morningstar Category Foreign large value 1 year 3 year 5 year 10 year Overall Morningstar Rating 62 out of out of out of out of year year The Overall Morningstar Rating, a weighted average of the 3-, 5-, and 10-year (if applicable) ratings, is out of 265 funds in the Foreign large value category, based on risk-adjusted returns as of 3/31/18. Alpha Beta Sharpe ratio Standard deviation R-squared Information ratio Upside capture Downside capture Fund % % 84.74% Tracking error 2.98% Past performance is no guarantee of future results. 2. Calculated for the Institutional Class based on a three-year period. Relative measures are compared with the fund s benchmark. 4 Wells Fargo International Value Fund

5 Share class A C Admin Inst Ticker WFFAX WFVCX WFVDX WFVIX 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 1.35% (A), 2.10% (C), 1.25% (Admin), and 0% (Inst). 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. 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 Morgan Stanley Capital International Europe, Australasia, and Far East (MSCI EAFE) Value Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of value securities within developed equity markets, excluding the U.S. and Canada. The MSCI EAFE Value Index consists of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. You cannot invest directly in an index. Source: MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. 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. Attribution analysis: Performance attribution and sector returns are calculated using the Brinson, Hood, and Beebower attribution model. As a result, performance attribution calculations may differ from the fund s actual investment results. 12-month price momentum measures the percentage difference between the current price of an individual share price of a holding against the price 12 months ago. Price/earnings (P/E) is the price of a share of a stock divided by earnings per share, usually calculated using the latest year s earnings. 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 0 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. Information 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, which means that the fund s performance bears no relationship to the performance of the index, to, 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. 5 Wells Fargo International Value Fund

6 Risks: Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Foreign investments are especially volatile and can rise or fall dramatically due to differences in the political and economic conditions of the host country. These risks are generally intensified in emerging markets. The use of derivatives may reduce returns and/or increase volatility. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). This fund is exposed to smallercompany securities risk. Consult the fund s prospectus for additional information on these and other risks. 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. 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 foreign large value funds, the International Value Fund received 4 stars among 265 funds, 3 stars among 216 funds, and 3 stars among 140 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. Past performance is no guarantee of future results. 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 International Value Fund