Wells Fargo Bank, N.A....Independent Auditors’ Report The Unitholders of the Funds and Wells Fargo Bank, N.A.: We have audited the accompanying financial statements of Wells Fargo

Wells Fargo Bank, N.A.Collective Investment FundsAnnual Report 2019

Table of Contents

Page

Independent Auditors’ Report 1

Financial Statements: Wells Fargo Target Today CIT E3 3 Wells Fargo Target 2010 CIT E3 8 Wells Fargo Target 2015 CIT E3 13 Wells Fargo Target 2020 CIT E3 18 Wells Fargo Target 2025 CIT E3 23 Wells Fargo Target 2030 CIT E3 28 Wells Fargo Target 2035 CIT E3 33 Wells Fargo Target 2040 CIT E3 38 Wells Fargo Target 2045 CIT E3 43 Wells Fargo Target 2050 CIT E3 48 Wells Fargo Target 2055 CIT E3 53 Wells Fargo Target 2060 CIT E3 58

Notes to Financial Statements 63

Regulatory Statement 72

Independent Auditors’ Report

The Unitholders of the Funds and Wells Fargo Bank, N.A.:

We have audited the accompanying financial statements of Wells Fargo Target Today CIT E3, Wells Fargo Target 2010 CIT E3, Wells Fargo Target 2015 CIT E3, Wells Fargo Target 2020 CIT E3, Wells Fargo Target 2025 CIT E3, Wells Fargo Target 2030 CIT E3, Wells Fargo Target 2035 CIT E3, Wells Fargo Target 2040 CIT E3, Wells Fargo Target 2045 CIT E3, Wells Fargo Target 2050 CIT E3, Wells Fargo Target 2055 CIT E3 and Wells Fargo Target 2060 CIT E3 (collectively, “the Funds”), twelve of the separate collective investment trusts constituting Wells Fargo Bank Collective Investment Funds for Employee Benefit Trusts, which comprise the statements of assets and liabilities, including the schedules of investments, as of December 31, 2019, the related statements of operations and changes in net assets for the year then ended, and the related notes to the financial statements (collectively, the financial statements) and the financial highlights for the year then ended.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements and financial highlights 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 and financial highlights 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 and financial highlights 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 and financial highlights are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements and financial highlights. The procedures selected depend on the auditors’ judgment,

including the assessment of the risks of material misstatement of the financial statements and financial highlights, 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 and financial highlights 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 and financial highlights.

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 LLPTwo Financial Center60 South StreetBoston, MA 02111

2

Opinion

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Funds as of December 31, 2019, and the results of their operations and the financial highlights for the year then ended in accordance with U.S. generally accepted accounting principles.

Boston, Massachusetts April 29, 2020

See accompanying notes to financial statements. 3

WELLS FARGO TARGET TODAY CIT E3

Statement of Assets and Liabilities

December 31, 2019

Cost

Fair

value

Assets:

Investments $ 34,877,997 $ 37,494,422

Receivable for investment securities sold 34,328

Total assets 37,528,750

Liabilities:

Fund shares repurchased 34,327

Trustee expenses 1,906

Total liabilities 36,233

Net assets $ 37,492,517

Units outstanding 2,563,994

Unit value $ 14.62



Statement of Operations

Year ended December 31, 2019

Expenses:

Administration, Advisory, and/or Trustee Fees $ 17,883

Total expenses 17,883

Net investment income (loss) (17,883)

Realized and unrealized gain (loss) on investment transaction:

Net realized gain (loss) on:

Investments 707,285

Net change in unrealized appreciation (depreciation) on:

Investments 2,978,829

Net gain (loss) on investment transactions 3,686,114

Net change in net assets resulting from operations $ 3,668,231

Statement of Changes in Net Assets


Increase/(decrease) in net assets from operations:

Net investment income (loss) $ (17,883)

Net realized gain (loss) on investment transactions 707,285

Net change in unrealized appreciation (depreciation) of investments 2,978,829

Net increase (decrease) in net assets resulting from

operations 3,668,231

Participating unit holder transactions:

Proceeds from issuance of units (1,629,103 units) 22,855,604

Payments for withdrawals (1,015,922 units) (14,151,021)

Net Change 8,704,583

Change in net assets derived from unit transactions 8,704,583

Total increase (decrease) in net assets 12,372,814

Net assets:

Beginning of year (1,950,813 units) 25,119,703

End of year (2,563,994 units) $ 37,492,517


Schedule of Investments

December 31, 2019


Shares Cost

Fair

Value ___________ ____________ ______________

Collective Investment Funds: 100.01%

Wells Fargo Bloomberg Barclays US

Aggregate ex-Corporate Index CIT G (1) 1,199,209 $ 12,322,859 $ 12,934,185

Wells Fargo Emerging Markets Bond Index

CIT G (1) 100,755 1,026,428 1,103,250

Wells Fargo Factor Enhanced Emerging

Markets Index CIT G (1) 82,483 787,637 832,061

Wells Fargo Factor Enhanced International

Index CIT G (1) 250,848 2,543,896 2,777,938

Wells Fargo Factor Enhanced Large Cap

Index CIT G (1) 415,234 4,678,720 5,369,349

Wells Fargo Factor Enhanced Small Cap

Index CIT G (1) 116,970 1,227,479 1,339,612

Wells Fargo High Yield Corporate Bond

Index CIT G (1) 99,547 1,029,472 1,103,212

Wells Fargo Investment Grade Corporate

Bond Index CIT G (1) 602,012 6,206,627 6,720,016

Wells Fargo Strategic Retirement Bond Index

CIT G (1) 410,272 4,204,671 4,375,794

Wells Fargo US REIT Index CIT G (1) 77,715 850,208 939,005 ____________________________________ ____________________________________

Total Collective Investment Funds 34,877,997 37,494,422 ____________________________________ ____________________________________

Total Investments: 100.01% $ 34,877,997 $ 37,494,422 ____________________________________ ____________________________________ ____________________________________ ____________________________________

Percentages shown are based on total net assets.

REIT Real Estate Investment Trust

(1) This investment is a Wells Fargo Bank, N.A. sponsored collective trust fund.



Financial Highlights


Per share operating performance:

Unit value, beginning of year $ 12.88

Income from investment operations:

Net investment income (loss)(1) (0.01)

Net realized and unrealized gain (loss) on investments 1.75

Total from investment operations 1.74

Unit value, end of year $ 14.62

Total return per unit 13.51%

Net assets, end of year $ 37,492,517

Ratios:

Ratio of expenses to average net assets(2) 0.06%

Ratio of net investment income (loss) to average net assets (0.06)%

Portfolio Turnover Rate 48%

(1) Based on average number of units outstanding. (2) Expense ratios do not include expenses for the Underlying Funds.



Supplemental Schedule of Monthly Values (Unaudited)


Units Unit

outstanding valuation

January 31, 2019 1,931,370 $ 13.30

February 28, 2019 1,999,295 13.43

March 31, 2019 1,974,502 13.64

April 30, 2019 2,016,851 13.74

May 31, 2019 2,052,311 13.69

June 30, 2019 2,117,380 14.05

July 31, 2019 2,124,934 14.09

August 31, 2019 2,158,114 14.27

September 30, 2019 2,239,942 14.31

October 31, 2019 2,299,111 14.42

November 30, 2019 2,325,865 14.50

December 31, 2019 2,563,994 14.62


WELLS FARGO TARGET 2010 CIT E3


December 31, 2019

Cost

Fair

value

Assets:

Investments $ 49,115,286 $ 53,703,229



Liabilities:




Net assets $ 53,700,525


Unit value $ 15.25





Expenses:






Investments 500,293















Payments for withdrawals (547,424 units) (7,949,921)




Net assets:


End of year (3,521,147 units) $ 53,700,525



December 31, 2019


Shares Cost

Fair

Value ___________ ____________ ______________





CIT G (1) 134,408 1,358,180 1,471,745


Markets Index CIT G (1) 133,890 1,285,750 1,350,644


Index CIT G (1) 407,138 4,086,654 4,508,733


Index CIT G (1) 674,233 7,298,351 8,718,442


Index CIT G (1) 189,928 1,960,613 2,175,166


Index CIT G (1) 132,795 1,352,849 1,471,679


Bond Index CIT G (1) 802,928 8,179,768 8,962,768


CIT G (1) 587,635 5,970,784 6,267,481

Wells Fargo US REIT Index CIT G (1) 126,284 1,336,710 1,525,851 ____________________________________ ____________________________________



Percentages shown are based on total inet assets.
















Ratios:









Units Unit


January 31, 2019 2,797,973 $ 13.84

February 28, 2019 2,866,550 13.98

March 31, 2019 2,883,466 14.19

April 30, 2019 2,914,212 14.32

May 31, 2019 3,050,649 14.23

June 30, 2019 3,066,508 14.62

July 31, 2019 3,129,511 14.67

August 31, 2019 3,188,466 14.83

September 30, 2019 3,289,414 14.89

October 31, 2019 3,333,464 15.02

November 30, 2019 3,453,432 15.11

December 31, 2019 3,521,147 15.25




December 31, 2019

Cost

Fair

value

Assets:

Investments $ 145,923,345 $ 160,849,939



Liabilities:




Net assets $ 160,841,772


Unit value $ 16.00





Expenses:















Net realized gain (loss) on investment transactions 1,658,598










Net assets:


End of year (10,054,242 units) $ 160,841,772



December 31, 2019


Shares Cost

Fair

Value ___________ ____________ ______________





CIT G (1) 388,867 3,905,614 4,258,017




Index CIT G (1) 1,291,221 12,991,748 14,299,243


Index CIT G (1) 2,137,533 22,672,258 27,640,231


Index CIT G (1) 602,165 6,213,339 6,896,352


Index CIT G (1) 384,205 3,881,941 4,257,870


Bond Index CIT G (1) 2,324,063 23,529,231 25,942,581


CIT G (1) 1,734,798 17,539,641 18,502,659




















Ratios:









Units Unit


January 31, 2019 9,369,271 $ 14.50

February 28, 2019 9,362,278 14.66

March 31, 2019 9,295,161 14.87

April 30, 2019 9,328,421 15.01

May 31, 2019 9,228,971 14.90

June 30, 2019 9,155,391 15.32

July 31, 2019 9,394,315 15.37

August 31, 2019 9,353,036 15.53

September 30, 2019 9,267,829 15.60

October 31, 2019 9,285,401 15.74

November 30, 2019 10,008,203 15.84

December 31, 2019 10,054,242 16.00




December 31, 2019

Cost

Fair

value

Assets:

Investments $ 512,331,809 $ 571,490,351



Liabilities:




Net assets $ 571,461,511


Unit value $ 17.45





Expenses:

























Net assets:


End of year (32,751,820 units) $ 571,461,511



December 31, 2019


Shares Cost

Fair

Value ___________ ____________ ______________





CIT G (1) 1,181,207 11,872,770 12,933,985


Markets Index CIT G (1) 2,029,068 19,711,552 20,468,633


Index CIT G (1) 6,163,523 61,867,171 68,256,085


Index CIT G (1) 10,009,590 104,743,013 129,433,013


Index CIT G (1) 2,827,514 28,885,933 32,382,389


Index CIT G (1) 1,166,996 11,807,962 12,933,002


Bond Index CIT G (1) 7,074,622 71,598,945 78,971,176


CIT G (1) 4,287,115 43,372,113 45,724,655

Wells Fargo US REIT Index CIT G (1) 1,522,684 15,868,860 18,398,131 ____________________________________ ____________________________________



















Ratios:









Units Unit


January 31, 2019 29,772,086 $ 15.68

February 28, 2019 29,960,415 15.91

March 31, 2019 30,041,692 16.12

April 30, 2019 30,177,096 16.31

May 31, 2019 30,822,576 16.08

June 30, 2019 30,734,719 16.61

July 31, 2019 30,977,754 16.66

August 31, 2019 30,947,440 16.77

September 30, 2019 30,770,963 16.90

October 31, 2019 30,806,581 17.08

November 30, 2019 32,520,889 17.22

December 31, 2019 32,751,820 17.45




December 31, 2019

Cost

Fair

value

Assets:

Investments $ 937,244,183 $ 1,055,076,580

Receivable for investment securities sold 1,070,312

Total assets 1,056,146,892

Liabilities:

Fund shares repurchased 1,070,312


Total liabilities 1,123,368

Net assets $ 1,055,023,524


Unit value $ 19.17





Expenses:

























Net assets:


End of year (55,043,147 units) $ 1,055,023,524



December 31, 2019


Shares Cost

Fair

Value ___________ ____________ ______________





CIT G (1) 1,946,200 19,557,408 21,310,496




Index CIT G (1) 14,431,160 144,799,977 159,813,547


Index CIT G (1) 22,424,741 232,451,297 289,972,079


Index CIT G (1) 6,345,028 64,619,587 72,667,064


Index CIT G (1) 1,922,855 19,456,642 21,309,651


Bond Index CIT G (1) 11,761,909 119,098,944 131,293,487


CIT G (1) 3,495,603 35,406,865 37,282,704

Wells Fargo US REIT Index CIT G (1) 1,724,134 18,112,061 20,832,189 ____________________________________ ____________________________________

Total Collective Investment Funds 937,244,183 1,055,076,580 ____________________________________ ____________________________________

Total Investments: 100.01% $ 937,244,183 $ 1,055,076,580 ____________________________________ ____________________________________ ____________________________________ ____________________________________
















Net assets, end of year $ 1,055,023,524

Ratios:









Units Unit


January 31, 2019 48,562,447 $ 17.10

February 28, 2019 49,057,126 17.40

March 31, 2019 49,367,718 17.61

April 30, 2019 49,873,424 17.85

May 31, 2019 50,124,704 17.50

June 30, 2019 50,377,789 18.16

July 31, 2019 51,316,049 18.20

August 31, 2019 51,256,001 18.25

September 30, 2019 51,577,395 18.43

October 31, 2019 51,678,353 18.67

November 30, 2019 54,087,754 18.87

December 31, 2019 55,043,147 19.17




December 31, 2019

Cost

Fair

value

Assets:

Investments $ 1,117,715,276 $ 1,271,914,845



Liabilities:




Net assets $ 1,271,851,098


Unit value $ 20.84





Expenses:

























Net assets:


End of year (61,032,685 units) $ 1,271,851,098



December 31, 2019


Shares Cost

Fair

Value ___________ ____________ ______________





CIT G (1) 1,640,361 16,514,614 17,961,621




Index CIT G (1) 23,680,211 237,954,875 262,239,398


Index CIT G (1) 34,701,638 360,211,974 448,723,414


Index CIT G (1) 9,503,849 97,028,958 108,843,784


Index CIT G (1) 1,620,565 16,427,375 17,959,584


Bond Index CIT G (1) 9,927,826 100,705,389 110,820,356


CIT G (1) 768,753 7,806,323 8,199,210


Total Collective Investment Funds 1,117,715,276 1,271,914,845 ____________________________________ ____________________________________

Total Investments: 100.01% $ 1,117,715,276 $ 1,271,914,845 ____________________________________ ____________________________________ ____________________________________ ____________________________________

















Ratios:









Units Unit


January 31, 2019 52,226,303 $ 18.40

February 28, 2019 52,946,001 18.80

March 31, 2019 53,315,653 18.98

April 30, 2019 54,122,950 19.32

May 31, 2019 55,108,557 18.74

June 30, 2019 55,589,175 19.58

July 31, 2019 56,626,814 19.62

August 31, 2019 56,855,789 19.55

September 30, 2019 57,253,345 19.82

October 31, 2019 57,601,093 20.14

November 30, 2019 59,912,665 20.42

December 31, 2019 61,032,685 20.84




December 31, 2019

Cost

Fair

value

Assets:

Investments $ 1,188,566,432 $ 1,365,844,178

Fund shares sold 787,038


Liabilities:

Payable for investment securities purchased 787,038



Net assets $ 1,365,775,901


Unit value $ 22.73





Expenses:

























Net assets:


End of year (60,081,071 units) $ 1,365,775,901



December 31, 2019


Shares Cost

Fair

Value ___________ ____________ ______________





CIT G (1) 997,408 10,058,845 10,921,416




Index CIT G (1) 30,631,132 308,200,930 339,215,287


Index CIT G (1) 43,757,790 453,330,707 565,827,609


Index CIT G (1) 12,351,083 126,071,031 141,452,012


Index CIT G (1) 985,414 10,006,542 10,920,653


Bond Index CIT G (1) 6,016,860 61,170,707 67,163,801 ____________________________________ ____________________________________


















Ratios:









Units Unit


January 31, 2019 52,287,864 $ 19.91

February 28, 2019 52,981,737 20.42

March 31, 2019 53,481,150 20.58

April 30, 2019 54,327,275 21.00

May 31, 2019 54,655,183 20.20

June 30, 2019 55,127,679 21.23

July 31, 2019 56,092,486 21.25

August 31, 2019 56,324,948 21.06

September 30, 2019 56,682,312 21.43

October 31, 2019 56,978,713 21.83

November 30, 2019 59,019,547 22.19

December 31, 2019 60,081,071 22.73




December 31, 2019

Cost

Fair

value

Assets:

Investments $ 1,043,110,657 $ 1,203,148,233



Liabilities:




Net assets $ 1,203,088,105


Unit value $ 23.95





Expenses:

























Net assets:


End of year (50,223,731 units) $ 1,203,088,105



December 31, 2019


Shares Cost

Fair

Value ___________ ____________ ______________





CIT G (1) 439,258 4,434,344 4,809,789




Index CIT G (1) 30,734,308 309,210,697 340,357,874


Index CIT G (1) 41,148,969 427,381,152 532,093,202


Index CIT G (1) 11,614,997 118,718,926 133,021,917


Index CIT G (1) 433,962 4,413,226 4,809,296


Bond Index CIT G (1) 2,646,969 26,944,139 29,547,057 ____________________________________ ____________________________________


















Ratios:









Units Unit


January 31, 2019 42,929,385 $ 20.89

February 28, 2019 43,650,326 21.48

March 31, 2019 44,087,898 21.61

April 30, 2019 45,068,460 22.10

May 31, 2019 45,756,437 21.15

June 30, 2019 46,081,598 22.29

July 31, 2019 46,788,063 22.30

August 31, 2019 47,132,986 22.03

September 30, 2019 47,443,036 22.46

October 31, 2019 47,822,718 22.92

November 30, 2019 49,489,162 23.33

December 31, 2019 50,223,731 23.95




December 31, 2019

Cost

Fair

value

Assets:

Investments $ 859,043,225 $ 990,242,062



Liabilities:




Net assets $ 990,192,631


Unit value $ 24.75





Expenses:

























Net assets:


End of year (40,010,394 units) $ 990,192,631



December 31, 2019


Shares Cost

Fair

Value ___________ ____________ ______________





CIT G (1) 226,054 2,285,613 2,475,250




Index CIT G (1) 26,124,476 263,197,028 289,307,672


Index CIT G (1) 34,963,789 365,062,862 452,113,265


Index CIT G (1) 9,869,166 101,112,179 113,027,607


Index CIT G (1) 223,323 2,275,091 2,474,928


Bond Index CIT G (1) 1,361,208 13,885,856 15,194,624 ____________________________________ ____________________________________


















Ratios:









Units Unit


January 31, 2019 33,563,093 $ 21.54

February 28, 2019 34,239,400 22.17

March 31, 2019 34,650,576 22.30

April 30, 2019 35,657,776 22.81

May 31, 2019 35,975,407 21.79

June 30, 2019 36,329,205 23.00

July 31, 2019 36,986,580 23.01

August 31, 2019 37,244,106 22.70

September 30, 2019 37,623,761 23.16

October 31, 2019 37,894,987 23.65

November 30, 2019 39,369,747 24.08

December 31, 2019 40,010,394 24.75




December 31, 2019

Cost

Fair

value

Assets:

Investments $ 607,502,455 $ 696,228,168



Liabilities:




Net assets $ 696,193,504


Unit value $ 24.87





Expenses:

























Net assets:


End of year (27,993,972 units) $ 696,193,504



December 31, 2019


Shares Cost

Fair

Value ___________ ____________ ______________





CIT G (1) 158,861 1,610,228 1,739,499




Index CIT G (1) 18,359,496 185,186,103 203,316,730


Index CIT G (1) 24,591,025 259,902,922 317,984,082


Index CIT G (1) 6,941,236 71,370,292 79,495,194


Index CIT G (1) 156,942 1,603,999 1,739,277


Bond Index CIT G (1) 956,643 9,785,240 10,678,623 ____________________________________ ____________________________________


















Ratios:









Units Unit


January 31, 2019 21,890,152 $ 21.65

February 28, 2019 22,466,832 22.28

March 31, 2019 22,864,937 22.40

April 30, 2019 23,869,808 22.93

May 31, 2019 24,535,378 21.90

June 30, 2019 24,807,899 23.11

July 31, 2019 25,387,835 23.12

August 31, 2019 25,662,040 22.81

September 30, 2019 25,945,490 23.28

October 31, 2019 26,241,714 23.77

November 30, 2019 27,410,536 24.20

December 31, 2019 27,993,972 24.87




December 31, 2019

Cost

Fair

value

Assets:

Investments $ 255,335,939 $ 289,949,921



Liabilities:




Net assets $ 289,935,524


Unit value $ 19.83





Expenses:

























Net assets:


End of year (14,624,559 units) $ 289,935,524



December 31, 2019


Shares Cost

Fair

Value ___________ ____________ ______________



Aggregate ex-Corporate Index CIT G (1) 793,803 $ 8,125,615 $ 8,561,645


CIT G (1) 66,168 672,449 724,524




Index CIT G (1) 7,646,828 77,310,398 84,682,501


Index CIT G (1) 10,240,274 110,217,931 132,415,960


Index CIT G (1) 2,890,496 29,952,362 33,103,690


Index CIT G (1) 65,368 670,878 724,430


Bond Index CIT G (1) 398,436 4,087,557 4,447,579 ____________________________________ ____________________________________


















Ratios:









Units Unit


January 31, 2019 10,291,639 $ 17.26

February 28, 2019 10,644,806 17.76

March 31, 2019 10,945,965 17.86

April 30, 2019 11,917,529 18.28

May 31, 2019 12,129,691 17.46

June 30, 2019 12,340,695 18.42

July 31, 2019 12,743,982 18.43

August 31, 2019 12,993,747 18.18

September 30, 2019 13,206,277 18.56

October 31, 2019 13,444,403 18.95

November 30, 2019 14,241,943 19.29

December 31, 2019 14,624,559 19.83




December 31, 2019

Cost

Fair

value

Assets:

Investments $ 87,273,566 $ 97,739,352



Liabilities:




Net assets $ 97,734,560


Unit value $ 15.48





Expenses:






Investments 390,567



















Net assets:


End of year (6,315,050 units) $ 97,734,560



December 31, 2019


Shares Cost

Fair

Value ___________ ____________ ______________



Aggregate ex-Corporate Index CIT G (1) 267,622 $ 2,758,232 $ 2,886,465


CIT G (1) 22,301 227,783 244,191




Index CIT G (1) 2,577,809 26,173,255 28,547,174


Index CIT G (1) 3,451,705 38,137,860 44,633,647


Index CIT G (1) 974,302 10,194,441 11,158,296


Index CIT G (1) 22,032 227,588 244,164


Bond Index CIT G (1) 134,360 1,390,466 1,499,811 ____________________________________ ____________________________________


















Ratios:









Units Unit


January 31, 2019 3,909,693 $ 13.47

February 28, 2019 4,113,378 13.86

March 31, 2019 4,268,039 13.94

April 30, 2019 4,491,085 14.27

May 31, 2019 4,666,423 13.63

June 30, 2019 4,809,432 14.38

July 31, 2019 5,052,806 14.39

August 31, 2019 5,214,527 14.19

September 30, 2019 5,430,633 14.49

October 31, 2019 5,638,017 14.79

November 30, 2019 5,999,803 15.06

December 31, 2019 6,315,050 15.48

WELLS FARGO BANK COLLECTIVE INVESTMENT FUNDS

Notes to Financial Statements

December 31, 2019

63

Wells Fargo Target Today CIT E3 Wells Fargo Target 2035 CIT E3

Wells Fargo Target 2010 CIT E3 Wells Fargo Target 2040 CIT E3




Wells Fargo Target 2030 CIT E3

Wells Fargo Target 2060 CIT E3

The Wells Fargo Bank Collective Investment Funds for Employee Benefit Trusts, 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) or an affiliate of the Trustee in its

capacity as trustee, investment manager, or any other capacity authorized by law 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.

Fund Description

Each Target Date Fund seeks total return over time, consistent with its strategic target date allocation. Each Fund

will pursue its objective through investment in a combination of underlying collective investment funds (each an

“Underlying Fund”). Each Underlying Fund will utilize equity index strategies, fixed income index strategies, and

short-term investment strategies. Each Target Date Fund and the Underlying Funds are managed by Wells Capital

Management, Inc; an affiliate of the Trustee.

1. 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”, which is part

of accounting principles generally accepted in the United States of America (“GAAP”).

a) Basis of Accounting

The accompanying financial statements have been presented on the accrual basis of accounting in accordance with

GAAP.

b) Cash Overdrafts

The Funds may have overnight cash overdrafts. Cash overdrafts are funded by the Trustee and settled the next

morning. No cash overdraft fees were assessed to the Funds for the year ended December 31, 2019.

c) Credit Risk and Uncertainties

Investment securities in which the Funds (or any Underlying funds as applicable) invest are subject to various risks,

such as market, credit, and interest rate risks. Due to the level of risk associated with such securities, it is at least

reasonably possible that changes in the near term could materially affect participants’ unit values and the amounts

reported in the statements of assets and liabilities. Credit ratings, as supplied solely by Standard & Poor’s, are noted

on the Schedule of Investments for each fund which holds individual fixed income securities. The S&P rating is one

relative measure of potential credit risk each security represents. Securities without a noted rating are either not



December 31, 2019

64

generally rated (e.g. US government guaranteed instruments) or were un-rated by S&P as of December 31, 2019.

S&P ratings have been provided for informational purposes only and have not been independently audited.

d) Valuation of Investments

Valuation of the Funds’ units occurs daily for those days that the financial markets are open. Unit values are

determined by dividing the value of each Fund’s net assets by the total number of units outstanding on the valuation

date.

The Funds' investments, except those held in collective funds, are valued on the basis of market valuations, where

available, as provided by independent pricing services. Securities for which market valuations are not readily

available are valued at fair value as determined by the Trustee. Market valuations are generally determined as

follows:

• Securities traded in the over-the-counter market are valued at the last sale on the valuation date, if any,

otherwise at the last reported bid price.

• Debt securities are valued at the evaluated bid price provided by an independent pricing service (e.g. taking into

account various factors, including yields, maturities, or credit ratings) or, if a reliable price is not available, the

quoted bid price from an independent broker-dealer.

• Equity securities and futures contracts that are listed on a foreign or domestic exchange or market are valued at

the official closing price or, if none, the last sales price. If no sale occurs on the principal exchange or market

that day, a fair value price will be determined in accordance with the Fund’s Valuation Policies & Procedures as

adopted by the Trustee.

• Government and agency obligations are valued based upon the most recent bid quotation for identical or similar

obligations.

• Foreign markets and exchanges may close prior to the close of the New York Stock Exchange ("NYSE") and

therefore may not fully reflect trading or events that occur after the close of the principle exchange in which the

foreign investments are traded but before the close of the NYSE. If such trading or events are expected to

materially affect the value of the investments, then those investments are fair valued following procedures

approved by the Trustee.

• Investments in registered open-end investment companies are valued at net asset value. Interests in non-

registered investment companies that are redeemable at net asset value are fair valued normally at net asset

value.

• Swap contracts are valued at the evaluated price provided by an independent pricing service or, if a reliable

price is not available, the quoted bid price from an independent broker-dealer.

• Forward foreign currency contracts are recorded at the forward rate provided by an independent foreign

currency pricing source.

Investments which are not valued using any of the methods discussed above are valued at their fair value, as

determined in good faith by the Trustee of the Fund. The Trustee has established a Valuation Working Group and

has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation

Working Group deems necessary or appropriate, including determining the fair value of portfolio securities. The

Trustee retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation



December 31, 2019

65

Procedures as it deems appropriate. On at least on a quarterly basis, the Trustee receives reports on any valuation

actions taken by the Valuation Working Group which may include items for ratification.

e) Fair Valuation of Securities

The Funds are subject to the provisions of FASB ASC 820-10, Fair Value Measurements which among other things,

establishes a framework for measuring fair value and requires enhanced disclosures about investments that are

measured and reported at fair value. In accordance with ASC 820-10, fair value is defined as the price that a fund

would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most

advantageous market of the investment. ASC 820-10 establishes a fair value hierarchy that prioritizes the inputs to

valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices

in active markets for identical assets or liabilities.

The three levels of the fair value hierarchy are as follows:

Level 1: Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Funds

have the ability to access at the measurement date. Examples of Level 1 securities would be common or preferred

stocks trading on a national exchange.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either

directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for

identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted

prices that are observable for the asset or liability, and inputs that are derived principally from or corroborated by

observable market data by correlation or other means. Examples of Level 2 securities would include corporate

fixed income, municipal fixed income, or certain pooled funds.

Level 3: Unobservable inputs based on the best information available in the circumstances, to the extent observable

inputs are not available (including the Fund’s own assumptions in determining the fair value of investments).

Examples of Level 3 securities would include private placements or assets for which no current pricing source is

available or in default.

The inputs or methodologies used for valuing investments in securities are not necessarily an indication of the risk

associated with investing in those securities.

The following table presents the values of the financial instruments carried on the statement of assets and liabilities

by caption and by level within the valuation hierarchy as of December 31, 2019. The breakdown of each Funds'

investments into major categories is disclosed in its respective Schedule of Investments.

Fair value measurements at reporting date using

Investments in securities

Quoted prices in

active markets

for identical

assets

(Level 1)

Significant other

observable

inputs

(Level 2)

Significant

unobservable

inputs

(Level 3) Total

Wells Fargo Target Today CIT E3:

Value of investment securities:

Collective Investment Funds $ 37,494,422 $ — $ — $ 37,494,422

Total $ 37,494,422 $ — $ — $ 37,494,422



December 31, 2019

66



Quoted prices in

active markets

for identical

assets

(Level 1)

Significant other

observable

inputs

(Level 2)

Significant

unobservable

inputs

(Level 3) Total

Wells Fargo Target 2010 CIT E3:



Total $ 53,703,229 $ — $ — $ 53,703,229




Total $ 160,849,939 $ — $ — $ 160,849,939




Total $ 571,490,351 $ — $ — $ 571,490,351



Collective Investment Funds $ 1,055,076,580 $ — $ — $ 1,055,076,580

Total $ 1,055,076,580 $ — $ — $ 1,055,076,580




Total $ 1,271,914,845 $ — $ — $ 1,271,914,845




Total $ 1,365,844,178 $ — $ — $ 1,365,844,178




Total $ 1,203,148,233 $ — $ — $ 1,203,148,233




Total $ 990,242,062 $ — $ — $ 990,242,062




Total $ 696,228,168 $ — $ — $ 696,228,168



December 31, 2019

67



Quoted prices in

active markets

for identical

assets

(Level 1)

Significant other

observable

inputs

(Level 2)

Significant

unobservable

inputs

(Level 3) Total




Total $ 289,949,921 $ — $ — $ 289,949,921




Total $ 97,739,352 $ — $ — $ 97,739,352

The Funds did not have transfers into/out of Level 3.

2. Expenses

In accordance with the Trust Agreement, the Trustee may charge the Funds for custody, accounting, audit fees and

certain other expenses incurred. The Collective Fund Oversight Committee (“CFOC”), a sub-committee of the Trust

Investment Committee of Wells Fargo Bank, N.A. reviews and determines the annual accounting fee charged to

each Fund. The CFOC also determines any expense cap with respect to expenses charged to each Fund.

During 2019, no Funds were subject to an expense cap.

Funds may also invest in other funds in a “fund of funds” construction deemed “Underlying Funds”. The Funds

may incur indirect expenses through their investment in any “Underlying Funds” for administration, audit,

custodial, unaffiliated sub-advisory investment management and related services provided to the Underlying Funds.

Indirect expenses from the Underlying Funds are netted against the investment income of the Underlying Fund. A

Fund’s unaffiliated sub-advisory investment management fee, if charged, is not included in the operating expenses

to which a net operating expense cap applies. The effects of this expense arrangement have been reflected in the

Statement of Operations and Financial Highlights for each Fund.

3. Trustee & Affiliated Compensation

In accordance with the Trust Agreement, the Trustee may charge the Funds for custody, accounting, audit fees and

certain other expenses incurred. The Collective Fund Oversight Committee (“CFOC”), a sub-committee of the Trust

Investment Committee of Wells Fargo Bank, N.A. reviews and determines the annual accounting fee charged to

each Fund. During 2019 no compensation was paid to the Trustee. Investment Advisory fees were paid to an

affiliate of the Trustee.

Fees for each unit class, as of December 31, 2019, are outlined on the following chart:

Fund Name Cusip Advisory

Fee Wells Fargo Target Today CIT E3 949907695 0.060%

Wells Fargo Target 2010 CIT E3 949907687 0.060%




December 31, 2019

68








Wells Fargo Target 2055 CIT E3 94987Q656 0.060%

Wells Fargo Target 2060 CIT E3 94988K690 0.060%

4. Investment Transactions and Interest Income

Funds (with exception of the Wells Fargo/BlackRock Short Term Investment Fund, which pays income monthly) do

not distribute investment income to unit holders.

Investment transactions are accounted for on the trade date. The cost of investments sold is computed on an average

cost basis. Dividend income is recorded on the ex-dividend date. Foreign dividends are recorded when information

is confirmed by the foreign custodian. Interest income is accrued daily and bond discounts are accreted and

premiums are amortized daily based on the effective interest method. The Funds amortize premiums and accrete

market discounts and original issue discounts to the call or the maturity date. Premium amortization and discount

accretion amounts are included in interest income. Tax reclaims receivable, if any, are recorded as dividend income,

which may be subject to change due to changes in country-specific tax regulations regarding amounts reclaimable.

Income from foreign securities is recorded net of foreign taxes withheld where recovery of such taxes is not assured.

In March 2017, the Financial Accounting Standards Board issued Accounting Standards Update 2017-08, “Premium

Amortization of Purchased Callable Debt Securities” which shortens the amortization period for certain purchased

callable debt securities. Under the new guidance, the premium amortization of purchased callable debt securities

that have explicit, non-contingent call features and are callable at fixed prices will be amortized to the earliest call

date. The guidance will be applied on a modified retrospective basis and is effective for fiscal years, and their

interim periods, beginning after December 15, 2019. Management continues to evaluate the impact of this guidance

on the Funds.

5. 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 fiduciary and federal excise 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



December 31, 2019

69

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.

6. 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 reinvested and reflected in

the net asset value of the fund (with the sole exception being the Wells Fargo/BlackRock Short Term Investment

Fund which pays income monthly). Units of the Funds are issued and redeemed at the current net asset value.

Unit investors have a proportionate, undivided interest in the Funds’ net assets.

7. 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

disclose 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.

8. Related Party Transactions

The Funds may receive proceeds from litigation settlements involving affiliates of the Funds. The Funds may invest

in other funds (“Underlying Funds”) maintained by the Trustee, if provided for in the Funds’ Trust Agreement. The

sub-advisors to the Funds may also invest in Underlying Funds which are affiliates of the sub-advisor.

9. Investment Transactions and Related Investment Income

Investment transactions are accounted for on the trade date. Realized gains and losses are determined on the basis of

average cost. For multi-class funds, income, expenses, realized and unrealized gains and losses are allocated daily to

each unit class based on its relative net assets.

The Funds (with the exception of Wells Fargo/BlackRock Short Term Investment Fund, which pays income

monthly) do 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 Funds.

10. Ownership Concentration (Unaudited)

At December 31, 2019, the Funds had two affiliated plans as unit holders sponsored by the same Sponsor which is

unrelated to the Trustee. Investment activities, including redemptions, of such unitholder could have a material

impact on the operations and expenses of the Funds. 11. Summary Schedule of Investments Purchased and Sold


Purchased Sold or Redeemed

Cost Proceeds Realized Gain/(Loss)

Collective investment funds $ 23,005,361 $ 14,317,987 $ 707,285

Total investments $ 23,005,361 $ 14,317,987 $ 707,285



December 31, 2019

70









Collective investment funds $ 37,253,399 $ 26,888,925 $ 1,658,598

Total investments $ 37,253,399 $ 26,888,925 $ 1,658,598




Collective investment funds 134,652,042 $ 81,231,490 $ 5,185,204
























December 31, 2019

71





















12. Subsequent Events Evaluation

The Funds have 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 disclosures and/or adjustments.

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 Funds and the securities in which the Funds invest may be adversely affected by impacts caused by COVID-19.

Regulatory Statement (unaudited)

__________________________________________________________________________________________________

72

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.

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 the Internal

Revenue Code (IRC), and which is exempt from tax under IRC Section 501 (a) or is part of a governmental

plan as defined by IRC Section 818(a)(6).

• The participating plan or trust instrument of qualified plans adopts documents establishing Wells Fargo

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 follow

Target Date Series EIN

Wells Fargo Target Today CIT E3 82-6537136

Wells Fargo Target 2010 CIT E3 82-6539202











Documents

Wells Fargo Bank, N.A....Independent Auditors’ Report The Unitholders of the Funds and Wells Fargo Bank, N.A.: We have audited the accompanying financial statements of Wells Fargo