All information is as of 9-30-17 unless otherwise indicated. Overview General fund information Portfolio managers: Kandarp Acharya, CFA, FRM; Christian Chan, CFA; and Petros Bocray, CFA, FRM Subadvisor: Wells Capital Management Inc. 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 mid-july, several enhancements were made to the funds. 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 funds now use factor-based indexing and have exposure to high-yield bonds and emerging markets debt. The exposure to developed international bonds was eliminated. For funds near or in retirement, equity exposure was increased and exposure to TIPS and REITs was added for enhanced diversification. Global stock prices rose during the third quarter, supported by solid corporate earnings, continued economic growth, and moderate inflation. Foreign stocks marginally outperformed, and emerging markets performed best, helped by a weaker dollar and continued improvement in fundamentals. In the U.S., most sectors posted moderate gains, and small-cap stocks marginally outperformed large caps. In fixed income, U.S. bond yields were flat and the yield curve was largely unchanged. Several factors contributed to bond-market stability, including a transparent and methodical Federal Reserve as related to its interest-rate policies and balance-sheet deleveraging, stable and positive economic growth, and moderate inflation. Credit spreads narrowed and lower-quality bonds outperformed. Foreign bonds outperformed U.S. government debt, helped by the falling value of the dollar. During the quarter, the benefited from diverse exposure to stock and bond markets, with positive results across asset classes. The strongest gains came from foreign stock holdings, and long-dated funds benefited most. Fixed-income holdings also advanced, with return consisting of coupon income and moderate price appreciation. 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 (%) 6 4 2 0 U.S. large equity Underlying portfolio returns, 7-17-17 to 9-30-17* 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 began using new underlying portfolios following market close on July 14, 2017. 1 CM501 10-17
Asset allocation analysis Glide path Equity exposure (%) 100 90 80 70 60 50 40 30 20 10 0 45 40 35 30 25 20 15 10 5 0 5 10 15 20 Years until target year Years after target year Portfolio allocations (%) 2060 2055 2050 2045 2040 2035 2030 2025 2020 2015 2010 Today US Large Cap 43.30 43.31 43.29 42.91 40.88 38.35 33.89 28.81 23.38 18.75 16.32 14.38 US Small Cap 10.81 10.85 10.80 10.73 10.20 9.61 8.46 7.23 5.85 4.68 4.06 3.58 Intl Dev Equity 27.81 27.75 27.82 27.39 25.62 23.38 19.90 16.14 12.59 9.71 8.46 7.45 EM Equity 8.18 8.18 8.18 8.06 7.43 6.81 5.74 4.73 3.68 2.83 2.46 2.19 REIT 0.00 0.00 0.00 0.00 0.00 0.00 0.20 1.29 2.65 3.23 2.82 2.51 Total stock 90.09 90.08 90.09 89.09 84.13 78.14 68.18 58.19 48.15 39.19 34.12 30.11 Government and Mortgage 5.86 5.87 5.86 6.46 9.39 12.93 18.67 23.53 27.14 29.96 32.46 34.44 High Yield 0.50 0.50 0.50 0.55 0.79 1.09 1.58 1.98 2.30 2.56 2.77 2.94 Investment Grade Corporate 3.05 3.06 3.05 3.36 4.89 6.74 9.73 12.26 14.14 15.61 16.91 17.94 EM Bond 0.50 0.50 0.50 0.55 0.79 1.09 1.58 1.98 2.30 2.56 2.77 2.94 Strategic Retirement 0.00 0.00 0.00 0.00 0.00 0.00 0.27 2.06 5.97 10.12 10.97 11.63 Total bond 9.91 9.92 9.91 10.91 15.87 21.86 31.82 41.81 51.85 60.81 65.88 69.89 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. Contribution to return is based on average allocations over the quarter. 2
Underlying strategy performance Portfolio returns July 17, 2017, through September 30, 2017* (%) Portfolio Benchmark index Portfolio Benchmark Wells Fargo Factor Enhanced Large Cap Portfolio Wells Fargo Factor Enhanced Large Cap Index 2.79 2.90 Russell 1000 Index 2.94 Wells Fargo Factor Enhanced Small Cap Portfolio Wells Fargo Factor Enhanced Small Cap Index 4.30 4.65 Russell 2000 Index 4.64 Wells Fargo U.S. REIT Portfolio Wells Fargo U.S. REIT Index 0.52 0.58 Wells Fargo Factor Enhanced International Wells Fargo Factor Enhanced International Portfolio Index Net Wells Fargo Factor Enhanced Emerging Markets Portfolio 3.70 3.72 MSCI World ex USA Index 3.57 Wells Fargo Factor Enhanced Emerging Markets Index Net 0.61 0.97 MSCI Emerging Markets Index 3.80 Wells Fargo High Yield Corporate Bond Portfolio Wells Fargo U.S. High Yield Bond Index 1.01 1.76 Wells Fargo Investment Grade Corporate Bond Portfolio Wells Fargo Bloomberg Barclays US Aggregate ex- Corporate Portfolio Bloomberg Barclays U.S. Corporate High Yield Bond Index Wells Fargo U.S. Investment Grade Corporate Bond Index 1.68 0.98 1.08 Bloomberg Barclays U.S. Corporate Bond Index 1.13 Bloomberg Barclays U.S. Aggregate ex Corporate Bond Index (USD) 0.51 0.64 Wells Fargo Strategic Retirement Bond Portfolio 50% Bloomberg Barclays 1 10 Year U.S. Treasury Inflation-Protected Securities Index and 50% Bloomberg Barclays U.S. Intermediate Government Bond Index 0.28 0.41 Wells Fargo Emerging Market Bond Portfolio JP Morgan GBI-EM Global Diversified Composite Index 1.90 2.47 *The Target Date Funds began using new underlying portfolios following market close on July 14, 2017. 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
Fund performance Fund 3 month Year to date 1 year 3 year 5 year 10 year Since inception Gross expense ratio Net expense ratio Target 2060 Fund R6 4.01 14.15 15.67 8.06 (6-30-15) 1.82 0.19 Morningstar Target Date 2060+ Average 4.66 15.40 16.85 Target 2055 Fund R6 4.03 14.16 15.56 7.72 10.33 8.65 (6-30-11) 0.37 0.19 Morningstar Target Date 2055 Average 4.62 15.26 16.60 7.82 10.21 Target 2050 Fund R6 4.06 14.08 15.66 7.72 10.34 5.57 5.58 (6-29-07) 0.31 0.19 Morningstar Target Date 2050 Average 4.53 14.92 16.18 7.63 9.81 4.87 Target 2045 Fund R6 4.06 13.85 15.07 7.57 10.22 5.53 5.53 (6-29-07) 0.34 0.19 Morningstar Target Date 2045 Average 4.50 14.87 16.14 7.57 9.82 4.88 Target 2040 Fund R6 3.74 12.96 13.67 7.15 9.68 5.17 7.88 (3-1-94) 0.32 0.19 Morningstar Target Date 2040 Average 4.30 14.16 15.27 7.31 9.41 4.73 Target 2035 Fund R6 3.45 11.74 11.59 6.53 8.80 4.95 4.95 (6-29-07) 0.33 0.19 Morningstar Target Date 2035 Average 4.08 13.46 14.35 7.03 9.12 4.73 Target 2030 Fund R6 2.98 10.30 9.17 5.80 7.65 4.52 7.23 (3-1-94) 0.32 0.19 Morningstar Target Date 2030 Average 3.69 12.11 12.52 6.49 8.23 4.45 Target 2025 Fund R6 2.59 8.73 6.51 4.82 6.27 4.20 4.25 (6-29-07) 0.31 0.19 Morningstar Target Date 2025 Average 3.30 10.82 10.85 5.92 7.54 4.42 Target 2020 Fund R6 2.06 7.32 4.22 3.94 4.90 3.77 6.41 (3-1-94) 0.32 0.19 Morningstar Target Date 2020 Average 2.86 9.26 8.92 5.22 6.40 4.12 Target 2015 Fund R6 1.75 5.86 2.26 3.17 3.64 3.51 3.68 (6-29-07) 0.33 0.19 Morningstar Target Date 2015 Average 2.65 8.55 8.05 5.01 6.23 4.08 Target 2010 Fund R6 1.57 4.86 1.86 2.56 2.67 3.42 5.64 (3-1-94) 0.35 0.19 Morningstar Target Date 2000-2010 Average 2.40 7.74 7.10 4.66 5.51 3.89 Target Today Fund R6 1.43 4.49 1.70 2.36 2.16 3.61 4.90 (3-1-94) 0.32 0.19 Morningstar Target Date Retirement Average 2.07 6.68 5.83 3.87 4.22 3.81 S&P 500 Index 4.48 14.24 18.61 10.81 14.22 7.44 - 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. (Continued on the top of the next page.) 4
Current performance may be lower or higher than the performance data quoted on the previous page and assumes the reinvestment of dividends and capital gains. Current month-end performance is available at the funds website, wellsfargofunds.com. R6 shares are sold without a front-end sales charge or contingent deferred sales charge. The manager has contractually committed, through 7-31-18, to waive fees and/or reimburse expenses to the extent necessary to cap each fund s total annual fund operating expenses after fee waiver at 0.19%. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses (if any), and extraordinary expenses are excluded from the cap. Without these reductions, the fund s returns would have been lower. 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. The expense ratio paid by an investor is the net expense ratio or the total annual fund operating expense after fee waivers, as stated in the prospectus. 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 rulesbased 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 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). 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 Corporate Bond Index is an unmanaged market-value-weighted index of investment-grade corporate fixed-rate debt issues with maturities of one year or more. 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. 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 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. 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. 5
Risks: The fund invests in alternative investments, such as short sales, which are speculative and entail a high degree of risk. The fund invests using alternative investment strategies, such as equity hedged, event driven, global macro, and relative value, which are speculative and entail a high degree of risk. Alternative investments, such as commodities and merger arbitrage strategies, are speculative and entail a high degree of risk. 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. High-yield securities have a greater risk of default and tend to be more volatile than higher-rated debt securities. The use of derivatives may reduce returns and/or increase volatility. Securities issued by U.S. government agencies or government-sponsored entities may not be guaranteed by the U.S. Treasury. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). This fund is exposed to foreign investment risk, mortgage- and asset-backed securities risk, new fund risk, regulatory risk, and smaller-company investment risk. Consult the fund s prospectus for additional information on these and other risks. The Morningstar Target-Date Categories (2000 2060+) include portfolios that provide diversified exposure to stocks, bonds, and cash for those investors who have a specific date in mind for retirement. These portfolios aim to provide investors with an optimal level of return and risk, based solely on the target date. Management adjusts the allocation among asset classes to more conservative mixes as the target date approaches, following a preset glide path. A target-date portfolio is part of a series of funds offering multiple retirement dates to investors. The Morningstar Target-Date Retirement Category includes portfolios that provide a mix of stocks, bonds, and cash for those investors already in or entering retirement. 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. Diversification and asset allocation do not ensure or guarantee better performance and cannot eliminate the risk of investment losses. Performance for certain Wells Fargo Funds or the class shown reflects a predecessor fund s or class performance and may be adjusted to reflect the fund s or class expenses as applicable. The views expressed in this document are as of 9-30-17 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. 306048 10-17 CM501 10-17 6