Wells Fargo Target Date CITs E3

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1 All information is as of unless otherwise indicated. Overview General fund information Fund sponsor and manager: Wells Fargo Bank, N.A. Fund advisor: Wells Capital Management Inc. Portfolio manager: Kandarp Acharya, CFA, FRM; Christian Chan, CFA; and Petros Bocray, CFA, FRM Category: Target date Fund strategy Seeks total return consistent with its strategic target asset allocation Reduces market risk gradually by reallocating assets toward increasingly conservative asset classes Is designed for investors who expect to retire or begin to withdraw funds around its target date Reaches its lowest strategic allocation to equities 10 years past the fund's target year Each fund is a gateway fund that invests in underlying funds: Each underlying equity fund provides exposure to a specific market segment, including U.S. large and small caps, international developed and emerging markets, and real estate investment trusts (REITs). Except for REITs, each is designed with the goal of replicating the performance of proprietary indexes designed to provide balanced exposure to specific risk factors, including value, quality, momentum, small size, and low volatility. The underlying fixed-income funds provide exposure to a range of market sectors, including U.S. government bonds, mortgage- and asset-backed securities, Treasury Inflation-Protected Securities (TIPS), investment-grade and high-yield corporate bonds, and emerging markets foreign issues. The corporate bond funds are managed with the goal of replicating the performance of proprietary indexes designed to enhance issuer diversification and liquidity compared with standard indexes. The remaining funds are managed to replicate the performance of standard indexes. Market and portfolio summary In late October, several enhancements were made to the strategy. Enhancements included lower net expenses, a new management team, a revised glide path, and changes to subasset-class exposures. These enhancements were driven largely by changes in market conditions, life expectancies, and plan participant trends in recent years. As a result, all underlying investments now use factor-based indexing and have exposure to high-yield bonds and emerging-market debt. The exposure to developed international bonds was eliminated. For those near or in retirement, equity exposure was increased and exposure to TIPS and REITs was added for enhanced diversification. Global stock prices continued to rise during the fourth quarter, with the strongest gains in emerging markets (in U.S. dollar terms). Prices were supported by solid corporate earnings, sustainable global growth, moderate inflation, and supportive central-bank policies. In the U.S., results were positive across sectors, with the strongest gains in the consumer discretionary sector. Growth and value stocks had similar results, and large-cap stocks outperformed small-cap stocks. In fixed income, the U.S. yield curve flattened and returns were marginally positive. Short- and intermediateterm bond yields rose as the Federal Reserve raised its key short-term interest rate in December, but longterm yields fell marginally due to muted inflation expectations. Credit spreads remained strong, with little change during the quarter. During the quarter, the Wells Fargo Target Date CITs benefited from diverse exposure to stock and bond markets, with positive results in all underlying portfolios and across all 12 target-date vintages. The strongest gains came from stock holdings, and longer-dated funds benefited most. Fixed-income holdings had muted gains, driven by coupon income, as prices were flat. Looking ahead, market conditions remain supportive for most asset classes. Global manufacturing indexes show healthy growth, and corporate profitability remains robust. Inflation remains low but steady, and credit conditions are stable. Investor sentiment remains optimistic but not euphoric. Return (%) U.S. large equity Underlying portfolio returns, to * U.S. small equity Int'l developed equity Emerging markets equity REIT Aggregate ex. corporate bond Investment grade corporate bond High-yield corporate bond Emerging markets bond Strategic retirement bond Past performance is no guarantee of future results. *The Target Date Funds allocated to new underlying portfolios on October 31, CF NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE

2 Asset allocation analysis Glide path Equity exposure (%) Years until target year Years after target year Portfolio allocations (%) Today U.S. Large Cap U.S. Small Cap Int l Dev Equity EM Equity REIT Total stock Government and Mortgage High Yield Investment-Grade Corporate EM Bond Strategic Retirement Total bond Past performance is no guarantee of future results. Allocations are subject to change and may have changed since the date specified. Allocations shown are as of the end of the period. 2 NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE

3 Underlying strategy performance Portfolio returns 11/1/17 through 12/31/17* (%) Quarter-end return (%) Portfolio Benchmark Portfolio Benchmark Wells Fargo U.S. REIT Index CIT Wells Fargo U.S. REIT Index TR 2.73% 2.83% Wells Fargo Factor Enhanced Small Cap Index CIT Wells Fargo Factor Enhanced Small Cap Index 2.77% 2.89% Russell 2000 Total Return 2.47% Wells Fargo Factor Enhanced Large Cap Index CIT 4.69% 4.75% Wells Fargo Factor Enhanced Large Cap Index Wells Fargo Factor Enhanced International Index CIT Wells Fargo Factor Enhanced Emerging Markets Index CIT Russell 1000 Total Return 4.20% Wells Fargo Factor Enhanced International Index Net 2.73% 2.77% MSCI World ex USA Net (USD) 2.83% Wells Fargo Factor Enhanced Emerging Markets Index Net 4.16% 4.94% MSCI Emerging Markets Net (USD) 3.80% Wells Fargo Strategic Retirement Bond Index CIT Wells Fargo Investment Grade Corporate Bond Index CIT Wells Fargo High Yield Corporate Bond Index CIT Wells Fargo Emerging Markets Bond Index CIT Wells Fargo Bloomberg Barclays U.S. Aggregate ex-corporate Index 50% Bloomberg Barclays 1 10 Year U.S. Treasury Inflation-Protected Securities Index and 50% Bloomberg Barclays U.S. Intermediate Government Bond Index Wells Fargo U.S. Investment Grade Corporate Bond Index Bloomberg Barclays U.S. Corporate Investment Grade Index Wells Fargo U.S. High Yield Bond Index Bloomberg Barclays U.S. Corporate High Yield Index JPMorgan GBI-EMBI Global Diversified Composite Index Bloomberg Barclays U.S. Aggregate ex Corporate Index (USD) 0.08% 0.04% 0.52% 0.74% 0.77% -0.21% 0.20% 0.05% -0.11% 0.79% 0.14% 0.18% *The Target Date Funds allocated to new underlying portfolios on October 31, Returns for periods of less than one year are not annualized. For underlying portfolios that track a Wells Fargo Index, a secondary index is included. See definitions on page 5. Past performance is no guarantee of future results. 3 NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE

4 Fund performance Average annual total returns (%) as of 12/31/2017* Fund 3 month Year to date 1 year 3 year 5 year 10 year Since inception Target 2060 CIT Fund E ( ) S&P Target Date Index Target 2055 CIT Fund E ( ) S&P Target Date Index Target 2050 CIT Fund E (9-1-10) S&P Target Date 2050 Index Target 2045 CIT Fund E (9-1-10) S&P Target Date 2045 Index Target 2040 CIT Fund E (9-1-10) S&P Target Date 2040 Index Target 2035 CIT Fund E (9-1-10) S&P Target Date 2035 Index Target 2030 CIT Fund E (9-1-10) S&P Target Date 2030 Index Target 2025 CIT Fund E (9-1-10) S&P Target Date 2025 Index Target 2020 CIT Fund E (9-1-10) S&P Target Date 2020 Index Target 2015 CIT Fund E (9-1-10) S&P Target Date 2015 Index Target 2010 CIT Fund E (9-1-10) S&P Target Date Retirement Income Index Target Today CIT Fund E (9-1-10) S&P Target Date Retirement Income Index Figures quoted represent past performance, which is no guarantee of future results, and do not reflect taxes that 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 funds website, wellsfargofunds.com.*returns for periods of less than one year are not annualized. 4 NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE

5 Index definitions (You cannot invest directly in an index.) The Wells Fargo Factor Enhanced Large Cap Index measures the performance of a group of constituents derived from the largest 1000 companies in the US market that possess, in aggregate, diversified exposure to investment factors (or characteristics) that are commonly tied to a stock's potential for enhanced risk-adjusted returns relative to the market. The Wells Fargo Factor Enhanced Small Cap Index measures the performance of a group of constituents derived from the smallest 2000 companies in the US market, that possess, in aggregate, diversified exposure to investment factors (or characteristics) that are commonly tied to a stock's potential for enhanced risk-adjusted returns relative to the market. The Wells Fargo Factor Enhanced International Index measures the performance of a group of constituents derived from developed markets outside the US, that possess, in aggregate, diversified exposure to investment factors (or characteristics) that are commonly tied to a stock's potential for enhanced risk-adjusted returns relative to the market. The Wells Fargo Factor Enhanced Emerging Markets Index measures the performance of a group of constituents derived from emerging markets countries that possess, in aggregate, diversified exposure to investment factors (or characteristics) that are commonly tied to a stock's potential for enhanced risk-adjusted returns relative to the market. The Wells Fargo U.S. REIT Index is a float-adjusted, capitalization-weighted index of all applicable NYSE MKT or NASDAQ-listed classes of REIT Stock that satisfy specified market capitalization and other eligibility requirements. The Wells Fargo U.S. Investment Grade Corporate Bond Index is rules-based and is designed to measure the performance of publicly issued U.S. dollar denominated investment grade, fixed rate corporate bonds issued by U.S. or foreign issuers that have a remaining maturity of at least one year, regardless of optionality. It is constructed to provide increased diversification and liquidity versus traditional passive corporate credit indexes. The Wells Fargo U.S. High Yield Bond Index is rules-based and is designed to measure the performance of U.S. dollar denominated below investment-grade corporate debt issued by U.S. or foreign issuers that have a remaining maturity of at least one year, regardless of optionality. It is constructed to provide increased diversification and liquidity versus traditional passive high yield bond indexes. The Russell 1000 Index measures the performance of the 1,000 largest companies in the Russell 3000 Index, which represents approximately 92% of the total market capitalization of the Russell 3000 Index. The Russell 2000 Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index. The S&P 500 Index 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. Index definitions, continued (You cannot invest directly in an index.) The Bloomberg Barclays 1 10 Year U.S. Treasury Inflation-Protected Securities Index is an unmanaged index of U.S. Treasury securities with maturities of less than 10 years and more than 1. The Bloomberg Barclays Intermediate U.S. Government Bond Index is an unmanaged index composed of U.S. government securities with maturities in the 1- to 10-year range, including securities issued by the U.S. Treasury and U.S. government agencies. The Bloomberg Barclays U.S. Corporate Investment Grade Index is an unmanaged marketvalue- weighted index of investment-grade corporate fixed-rate debt issues with maturities of one year or more. The Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S. dollar denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. The Bloomberg Barclays U.S. Corporate High Yield Bond Index is an unmanaged, U.S. dollar denominated, nonconvertible, non-investment-grade debt index. The index consists of domestic corporate bonds rated Ba and below with a minimum outstanding amount of $150 million. The Bloomberg Barclays U.S. Aggregate ex Corporate Bond Index is a broad-based benchmark that includes Treasuries, government-related securities, mortgaged backed securities (agency fixed-rate and hybrid adjustable rate mortgage pass-throughs), asset backed securities and commercial mortgage backed securities (agency and nonagency). The J.P. Morgan GBI-EM Global Diversified Composite Index is an unmanaged index of debt instruments of 31 emerging countries. The Morgan Stanley Capital International (MSCI) World ex USA Index captures large- and mid-cap representation across 22 of 23 developed markets countries including: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the UK and excluding the U.S. With 1,020 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country. The Morgan Stanley Capital International (MSCI) Emerging Markets (EM) Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of emerging markets. The MSCI EM Index consists of the following 23 emerging markets country indexes: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, the Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey, and United Arab Emirates. 5 NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE

6 Risks: Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Bond values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the fund and its share price can be sudden and unpredictable. 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). These CITs are exposed to foreign investment risk, mortgage- and assetbacked securities risk, smaller-company investment risk, and allocation methodology risk (risk that the allocation methodology of the Target Date Composite Index, whose total returns the CIT seeks to approximate, before fees and expenses, will not meet an investor s goals). Consult the CIT s disclosure document for additional information on these and other risks. The S&P Target Date Style Index Series is designed to help defined contribution plan sponsors screen, select, and monitor target date funds by providing separate performance comparisons for to versus through glide paths. Glide path refers to the tendency of a target date fund s asset allocation to become more conservative as the fund s target date approaches. The S&P Target Date Style Index Series comprises a set of multi-asset class indices, each corresponding to a different target retirement date. Based on the S&P Target Date Index methodology, the asset allocation for the S&P Target Date Style Indices reflects consensus position derived from an annual survey of target date funds holdings. The target date represents the year in which investors may likely begin withdrawing assets. The funds gradually seek to reduce market risk as the target date approaches and after it arrives by decreasing equity exposure and increasing fixed-income exposure. The principal value is not guaranteed at any time, including at the target date. At the close of business on April 17, 2015, the Wells Fargo Dow Jones Target Date collective fund series was renamed the Wells Fargo Target Date CIT series and modified its investment strategy. The renamed target date collective investment fund series follows a similar strategic glide path with a new investment advisor but no longer seeks to replicate the performance of the former Dow Jones Target Date Indexes used by the funds. The underlying equity sleeve was modified to consist of securities within specified Russell and MSCI indexes, while the fixedincome and cash components remain the same. The inception date of E3 unit classes was at the close of business on April 17, Performance prior to the inception date reflects the results of the Wells Fargo Dow Jones Target Date collective fund series N units as it operated through April 17, 2015, and is not adjusted for expenses applicable to the new unit classes. Each of the new unit classes has a total expense ratio lower than the historical funds 0.30%. All values are unaudited. All income is reinvested in the fund and reflected in the unit value. Fund returns are reported after trustee and advisory fees and other expenses, including, but not limited to, audit and fund accounting expenses, are charged to the fund. Diversification and asset allocation do not ensure or guarantee better performance and cannot eliminate the risk of investment losses. These funds are Wells Fargo Bank sponsored Collective Investment Trusts subject to primary regulations of the Office of the Comptroller of the Currency. The funds are not mutual funds and are not subject to the same registration requirements and restrictions as mutual funds. The funds are NOT FDIC insured; are NOT obligations or deposits of Wells Fargo Bank; are NOT guaranteed by the bank; and involve investment risk, including the possible loss of principal. The views expressed in this document are as of December 31, 2017, 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 CF NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE