Wells Fargo International Equity Fund

QUARTERLY MUTUAL FUND COMMENTARY Q4 2020 | All information is as of 12/31/2020unless otherwise indicated.

Quarterly review GENERALFUND INFORMATION ● The International Equity Fund underperformed the MSCI ACWIex USA Index (Net) Ticker: WFENX and the MSCI ACWI ex USA Value Index (Net) for the quarter that ended December 31, 2020. Portfolio managers: Dale A. Winner, ● Performance was driven largely by stock selection, withpositive contributions coming CFA®; and Venk Lal from investments in the industrials andmaterials sectors as well as in China/Hong Subadvisor: Wells Capital Kong and Canada. Management Inc. ● Positions in information technology (IT) and healthcare as well as in France andJapan Category: Foreign large value detracted from performance. Market review FUND STRATEGY ● Maintains a core equity style that International equity markets initiallydeclined in October before advancing 19.6% in the emphasizes bottom-up stock final two months of the year as multipleCOVID-19 vaccines reached90%+ efficacy and selection based on rigorous, uncertainty surrounding the U.S. presidential election receded, resulting ina 17.0% in-depth, fundamental company return for the MSCI All Country World ex USA Index (Net)in the fourth quarter, the research highest quarterly return since the third quarter of2009. In this environment, the Global ● Usesa bottom-up research process Purchasing Managers’ Index (PMI) reached53.3 inOctober, the highest level since that targets companies with August 2018, but fell back to 52.7 inDecember, still in expansionary territory. Emerging underestimated earnings growth markets outperformed developed markets and sovereignyields saw mixed fluctuations potential or those trading at during the period, including the U.S.10-year Treasury rate,which broke out of the 60- discounts to the team’s estimateof to 80-basis-points (bps; 100 bps equal 1.00%) range it had been trading in from April normalized profitability through October, ending the quarter at 91bps; the euro 10-year yield, which fell4 bps to -56 bps; and the Japanese 10-year,which was essentiallyflat at 2 bps. Foreign ● Constructs the portfolio using both currencies generally outperformed the U.S.dollar as the U.S.dollar indexfell for a third qualitative and quantitative risk consecutive quarter, declining 4.2%. Overall, traditionalvalue sectors outperformed measurements, seeking to maximize growth for the first time since the fourth quarter of2018, illustratedby the MSCI ACWI the portfolio’s expected return ex USA Value Index (Net), which returned20.4% versus13.9% for the growth index. against probable risks ● Applies a dynamic investment Average annual total returns (%) as of 12/31/2020* approach within a disciplined process Year Since fund that provides broad exposure to 3 to 1 3 5 10 inception international markets by employing month date year year year year (9/06/79) an all-cap research process; the International Equity Fund-Inst 16.61 4.75 4.75 0.13 5.46 4.22 7.42 strategy is focused primarily on MSCI ACWI ex USA Value Index (Net) 20.42 -0.77 -0.77 -0.41 5.71 2.78 larger-cap companies and MSCI ACWI ex USA Index (Net) 17.01 10.65 10.65 4.88 8.93 4.92 secondarily on smaller-cap and *Returns for periods less than one year are not annualized. emerging market stocks

Figures quoted represent past performance, which is no guarantee of future results, and do not reflect taxes a shareholder may pay on an investment in 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, wfam.com. Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge. The fund’s gross expense ratio is 1.12%. The fund’s net expense ratio is 0.85%. The manager has contractually committed, through February 28, 2022, 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 0.84% 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 expense cap. Prior to or after the commitment expiration date, 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. CM303 01-21 (See pages 8-9 for important information.) QUARTERLY MUTUAL FUND COMMENTARY Q4 2020 | All information is as of 12/31/2020 unless otherwise indicated.

Wells Fargo International Equity Fund

Portfolio positioning International Equity Fund versus MSCI ACWI Index ex USA (Net) Value added from Value added from Total value added (%) Quarterly sector attribution and sector weight (%) stock selection (%) analysis 1.0 ● This quarter’s performances were driven largely by stock selection. In particular, 0.0 investments in the industrials, materials, and consumer discretionary sectors were the largest contributors. Weakness in IT, -1.0 health care, and communication services offset quarterly gains. -2.0 ● The consumer discretionary sector

underperformed the index during the Cash & Energy staples Utilities Materials Financials Consumer Consumer

quarter, resulting in negative allocation Industrials technology Real estate Health care equivalents Information effects from an overweight position. discretionary Comm. services However, stock selection was positive. Samsonite International S.A., the world’s largest designer, manufacturer, and distributor of suitcases, garment bags, and casual bags, with approximately 18%

global luggage market share, was the Comm. services Consumer discretionary Consumer staples Energy Financials Health care Industrials Information technology Materials Real estate Utilities Cash & equivalents largest contributor in the sector as it Sector weights (average % weight during the quarter) reported third-quarter results revealing sequential improvement in net sales International 4.82 15.98 3.72 1.29 19.41 12.64 15.84 14.48 8.78 0.00 0.00 3.03 Equity Fund (-58% year over year in October versus -80.9% in April) and posted positive MSCI ACWI ex USA 7.37 13.96 9.28 4.24 17.71 9.88 11.69 11.93 7.90 2.68 3.35 0.00 earnings before interest, taxes, Index (Net) depreciation, and amortization (EBITDA) results in the Asia region due to Over/underweight -2.55 2.02 -5.56 -2.95 1.70 2.76 4.15 2.55 0.88 -2.68 -3.35 3.03 aggressive cost cuts, including a 40% year-over-year decrease in fixed SG&A in Sector returns (%) the third quarter. Fund sector return 7.92 19.91 6.48 54.13 24.11 4.41 22.52 16.19 29.14 0.00 0.00 0.71 ● Health care also underperformed in the fourth quarter, resulting in negative Index sector return 13.69 15.90 8.48 22.48 24.67 6.21 16.22 24.69 19.95 12.63 14.41 0.00 allocation effects from an average Relative return -5.77 4.01 -2.00 31.65 -0.56 -1.80 6.30 -8.50 9.19 -12.63 -14.41 0.71 overweight. Stock selection was also negative, including a position in Sanofi Sources: FactSet and Wells Fargo Asset Management S.A., a global health care company based Past performance is no guarantee of future results. Sector weights are subject to change and may have changed since the date specified. in France, which reported €9.5 billion in sales during the third quarter, up 5.7% in constant currency terms, but was held back by negative foreign exchange translation effects resulting in a consensus miss. Margins and earnings per share (EPS) came in above consensus with SG&A down 0.8% with management continuing to target €2 billion of secular savings by fiscal-year 2022 versus cyclical savings resulting from the COVID-19 environment.

When reviewing the performance attribution of our portfolio, it is vital to remember that we construct our portfolio from the bottom up, one stock at a time. Each stock is included in the portfolio based on its own investment thesis. To help manage risk, we are aware of our sector and security weights, but we do not include a holding to obtain a sector distribution to resemble an index. Our exposure to any given sector is a result of our security selection process. 2 QUARTERLY MUTUAL FUND COMMENTARY Q4 2020 | All information is as of 12/31/2020 unless otherwise indicated.

Wells Fargo International Equity Fund

Portfolio positioning International Equity Fund versus MSCI ACWI Index ex USA (Net) Value added from Value added from Total value added (%) Trailing 12-month sector sector weight (%) stock selection (%) attribution analysis 2.0 ● Over the past 12 months, investments in 1.0 the financials, consumer discretionary, 0.0 and materials sectors drove positive -1.0 attribution but were offset by positioning -2.0 in IT, communication services, and -3.0 consumer staples. -4.0 ● Within the consumer discretionary -5.0 sector, Midea Group Co., Ltd., a Chinese -6.0

producer of home appliances, announced Cash & Energy staples Utilities Materials Financials Consumer Consumer

better-than-expected third-quarter Industrials technology Real estate Health care equivalents Information results, confirming strong absolute and discretionary Comm. services peer-relative results in terms of revenues (15.7% year over year) and net profits (32% year over year), with steady market-share gains in offline and online categories. Continuing to demonstrate

excellent franchise value, product Comm. services Consumer discretionary Consumer staples Energy Financials Health care Industrials Information technology Materials Real estate Utilities Cash & equivalents innovation, and channel efficiency, Sector weights (average % weight during the past 12 months) Midea’s results showcased broad and diversified product penetration strength International 7.34 12.71 2.84 2.69 17.41 12.11 17.13 14.91 9.58 0.00 0.00 3.28 Equity Fund and efficient execution of plans to harness growth while improving margins, MSCI ACWI ex USA 7.32 12.78 9.75 4.96 18.65 10.09 11.57 10.94 7.56 2.89 3.49 0.00 as shown by channel synergies and its Index (Net) Kuka segment turning profitable. Over/underweight 0.02 -0.07 -6.91 -2.27 -1.24 2.02 5.56 3.97 2.02 -2.89 -3.49 3.28 ● Stock selection within IT resulted in negative attribution, including a position in SAP SE, a German leader in the Sector returns (%) enterprise resource planning business, Fund sector return -7.96 41.72 -49.53 -4.43 -3.05 -0.37 13.78 9.07 22.86 0.00 0.00 -8.32 which underperformed given the company’s plan to accelerate its shift to Index sector return 18.87 22.87 6.68 -23.48 -4.51 15.41 10.79 45.28 21.18 -9.81 9.40 0.00 the cloud, requiring additional Relative return -26.83 18.85 -56.21 19.05 1.46 -15.78 2.99 -36.21 1.68 9.81 -9.40 -8.32 investments over the next two years and delaying the prospect of double-digit Sources: FactSet and Wells Fargo Asset Management earnings growth to fiscal-year 2023. The Past performance is no guarantee of future results. Sector weights are subject to change and may have changed since the date specified. team exited the position following the pre-announcement of third-quarter results and pushback of targets by one to two years, resulting in limited upside, unattractive risk/reward profile, and a lack of near-term catalysts.

When reviewing the performance attribution of our portfolio, it is vital to remember that we construct our portfolio from the bottom up, one stock at a time. Each stock is included in the portfolio based on its own investment thesis. To help manage risk, we are aware of our sector and security weights, but we do not include a holding to obtain a sector distribution to resemble an index. Our exposure to any given sector is a result of our security selection process. 3 QUARTERLY MUTUAL FUND COMMENTARY Q4 2020 | All information is as of 12/31/2020 unless otherwise indicated.

Wells Fargo International Equity Fund

Portfolio positioning International Equity Fund versus MSCI ACWI Index ex USA (Net) Value added from Value added from Total value added (%) Quarterly country attribution and country weight (%) stock selection (%) analysis 2.0 ● At the country level, investments in China/Hong Kong, Canada, and Norway 1.0 were top performers while holdings in France, Japan, and Korea 0.0 underperformed. ● An overweight to and stock selection in -1.0 Norway resulted in positive attribution. DNB ASA, a Norwegian bank, was a -2.0 Kong Japan Korea France United

leading contributor as the bank reported Cash & Taiwan Canada Australia third-quarter results including a 10% Germany Kingdom equivalents Switzerland

quarter-over-quarter increase in profit China & Hong before tax primarily attributed to a significant improvement in net loan losses and an all-time-high CET1 capital ratio of 18.9%. Looking forward, we expect the company to benefit from

self-help catalysts such as a potential Australia Canada China & Hong Kong France Germany Japan Korea Switzerland Taiwan United Kingdom Cash & equivalents reinstatement of dividends and stock Country weights (average % weight during the quarter) buybacks as well as a supportive macro environment as Norway may be one of International 2.28 3.09 15.06 5.47 6.09 12.03 9.56 4.83 0.00 11.75 3.03 Equity Fund the first countries to increase rates given its rapid economic recovery illustrated by MSCI ACWI ex USA 4.56 6.42 14.60 6.94 5.87 16.14 3.82 6.26 3.87 8.38 0.00 3.7% unemployment (roughly one-third Index (Net) of the April peak). Over/underweight -2.28 -3.33 0.46 -1.47 0.22 -4.11 5.74 -1.43 -3.87 3.37 3.03 ● Korea was one of the best-performing markets in the fourth quarter, returning 38.3%, resulting in positive allocation Country returns (%) effects from an average overweight but International 28.93 53.78 26.19 1.94 11.72 8.15 21.03 12.91 0.00 16.08 0.71 selection was negative. Coway Co., Ltd., a Equity Fund South Korean home appliance manufacturer, was a leading detractor MSCI ACWI ex USA 22.89 13.92 11.80 20.36 11.48 15.26 38.27 8.24 23.15 16.80 0.00 despite reporting slightly Index (Net) better-than-expected third-quarter Relative Return 6.04 39.86 14.39 -18.42 0.24 -7.11 -17.24 4.67 -23.15 -0.72 0.71 results with revenues up 5% year over year, operating profit up 20% year over Sources: FactSet and Wells Fargo Asset Management Past performance is no guarantee of future results. year, and EPS up 2% versus consensus. Country weights are subject to change and may have changed since the date specified. Overall results highlighted strength in Coway’s overseas business, especially in Malaysia, while domestic results remained affected by COVID-19-related concerns and strikes from customer service workers in advance of their transition to permanent employee status.

When reviewing the performance attribution of our portfolio, it is vital to remember that we construct our portfolio from the bottom up, one stock at a time. Each stock is included in the portfolio based on its own investment thesis. To help manage risk, we are aware of our sector and security weights, but we do not include a holding to obtain a sector distribution to resemble an index. Our exposure to any given sector is a result of our security selection process. 4 QUARTERLY MUTUAL FUND COMMENTARY Q4 2020 | All information is as of 12/31/2020 unless otherwise indicated.

Wells Fargo International Equity Fund

Portfolio positioning International Equity Fund versus MSCI ACWI Index ex USA (Net) Value added from Value added from Total value added (%) Trailing 12-month country country weight (%) stock selection (%) attribution analysis 3.0 ● Over the past 12 months, investments in 2.0 China/Hong Kong, Canada, and the U.S. 1.0 resulted in positive relative attribution 0.0 whereas holdings in Japan, the U.K., and -1.0 Switzerland underperformed. -2.0 ● Stock selection drove positive attribution -3.0 in Canada, which underperformed the -4.0 index in 2020. Lundin Mining Corp., a -5.0 Kong Japan Korea France United

Canadian miner, was the leading Cash & Taiwan Canada Australia contributor in the country. It recently Germany Kingdom equivalents Switzerland

reported third-quarter results including China & Hong beats on the top-line and EBITDA levels due to copper, nickel, and zinc pricing improvement both year over year and quarter over quarter, despite weaker-than-expected copper

production, driven in part by a fatality at Australia Canada China & Hong Kong France Germany Japan Korea Switzerland Taiwan United Kingdom Cash & equivalents one mine; power failure at a second; and Country weights (average % weight during the past 12 months) ongoing strikes at its largest asset, Candelaria. In the fourth quarter, the International 1.37 3.18 14.62 6.13 6.43 11.72 8.14 4.94 0.00 11.46 3.28 Equity Fund company reached a collective agreement with the Candelaria Mine Workers Union, MSCI ACWI ex USA 4.53 6.53 13.79 7.06 5.82 16.37 3.45 6.55 3.59 9.12 0.00 resulting in the resumption of production Index (Net) in mid-December, and the Toronto Stock Exchange approved Lundin’s share Over/underweight -3.16 -3.35 0.83 -0.93 0.61 -4.65 4.69 -1.61 -3.59 2.34 3.28 repurchase plan, which will allow the company to buy back 63.7 million shares, Country returns (%) equivalent to 10% of outstanding shares. International 58.60 29.34 42.59 -7.21 3.67 -11.49 25.52 -2.82 0.00 -18.14 -8.32 ● Japan was the largest source of negative Equity Fund attribution during the year due to negative selection effects. Alps Alpine MSCI ACWI ex USA 9.15 5.32 24.99 4.07 11.55 14.48 44.64 11.64 40.99 -11.05 0.00 Co., Ltd., a Japanese manufacturer of Index (Net) electronic components for autos and Relative Return 49.45 24.02 17.60 -11.28 -7.88 -25.97 -19.12 -14.46 -40.99 -7.09 -8.32 smartphone cameras, reported quarterly results including operating profit of ¥3 Sources: FactSet and Wells Fargo Asset Management Past performance is no guarantee of future results. billion, up from -¥6.5 billion the previous Country weights are subject to change and may have changed since the date specified. quarter, due primarily to better-than-expected cost-cutting. However, profitability in camera actuators for iPhones, its key product, has declined, resulting in earnings and price target downgrades.

When reviewing the performance attribution of our portfolio, it is vital to remember that we construct our portfolio from the bottom up, one stock at a time. Each stock is included in the portfolio based on its own investment thesis. To help manage risk, we are aware of our sector and security weights, but we do not include a holding to obtain a sector distribution to resemble an index. Our exposure to any given sector is a result of our security selection process. 5 QUARTERLY MUTUAL FUND COMMENTARY Q4 2020 | All information is as of 12/31/2020 unless otherwise indicated.

Wells Fargo International Equity Fund

Portfolio positioning Top contributors and detractors to fund performance Contributors Detractors Outlook ● Samsonite International S.A. ● Sanofi S.A. ● Our short-term outlook is neutral. The market is nearing the end of the Relapse ● Lundin Mining Corp. ● Nomad Foods Ltd. Correction phase given 1. the markethas ● Midea Group Co., Ltd. ● SAP SE experienced two recent correctionswith theS&P 500 Index declining 10% in ● DNB ASA ● Coway Co., Ltd. September and 7.5% in October; 2. the ● John Wood Group PLC ● Alps Alpine Co., Ltd. global economic recovery is continuing, illustrated by the global manufacturing The holdings identified donot represent all of the securities purchased or sold during the time period shown and should not be construed as a recommendation to purchase or sell a particular security. Information on calculation methodology and a list PMI, which ended the year at 53.8;3. showing the overall contribution of each holding in the account for the time period shown are available upon request. multiple breakouts of the U.S. 10-year yield from the 0.6%–0.8% range,ending Share class availability thequarter at 91 bps; 4. volatility (VIX) Gross expense Net expense Contractual expense spiked during the quarter on concernsof Share class Ticker ratio (%) ratio (%) ratio waiver date COVID-19 resurgence and potential for additional lockdowns but is now inthe A WFEAX 1.45 1.15 2/28/2022 low 20s; 5. Biden has been confirmed C WFEFX 2.20 1.90 2/28/2022 president-elect with both houses of Congress; and 6. vaccine progress with Admin WFEDX 1.37 1.15 2/28/2022 multiple trials showing 90%–95% Inst WFENX 1.12 0.85 2/28/2022 efficacy. ● Our longer-term outlook remains R WFERX 1.70 1.40 2/28/2022 constructive. The COVID-19-induced R6 WFEHX 1.02 0.80 2/28/2022 recession and bear market is overand a neweconomic recovery has begun, The manager has contractually committed to waive fees and/or reimburse expensesto the supported by aggressive monetary,fiscal, extent necessary to cap the fund’s total annual fund operating expensesafter fee waivers and health care responses and a globally at 1.14% (A), 1.89% (C), 1.14% (Admin), 0.84% (Inst), 1.39% (R), and 0.79%(R6). synchronized recovery. First, theFederal Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses Reserve’s pivot to targeting an average (if any), and extraordinary expenses are excluded from the expense cap.Prior to or after 2% inflation was a policy inflection point the commitment expiration date, the cap may be increased or the commitment to that will allow inflation to run higherand maintain the cap may be terminated only with the approval of the Boardof Trustees. aid a recovery in employment. Second, Without this cap, the fund’s returns would have been lower. The expense ratio paid by an fiscal stimulus continues with thehistoric investor is the net expense ratio (the total annual fund operating expenses after fee €750 billion EU Recovery Fund andlikely waivers) as stated in the prospectus. increased fiscal spending in the U.S. and globally on infrastructure and green technology post-inauguration. Third,the COVID-19 health care response is improving in terms of progress on rapid testing, treatment, and rollout of vaccines. Finally, global growth prospects The COVID-19-induced recession and bear market is over are improving, with the Organizationfor and a new economic recovery has begun, supported by Economic Cooperation and Development aggressive monetary, fiscal, and health care responses and forecasting 4.2% global growth in2021. a globally synchronized recovery.

6 QUARTERLY MUTUAL FUND COMMENTARY Q4 2020 | All information is as of 12/31/2020 unless otherwise indicated.

Wells Fargo International Equity Fund

Top holdings Performance Stock % of net assets 1 year 3 year 5 year 10 year LafargeHolcim Ltd. 2.97 International Equity Fund-Inst 4.75 0.13 5.46 4.22 DNB ASA 2.93 MSCI ACWI ex USA Index (Net) 10.65 4.88 8.93 4.92 Hitachi,Ltd. 2.88 MSCI ACWI ex USA Value Index (Net) -0.77 -0.41 5.71 2.78 NN Group N.V. 2.88 Lipper International Multi-Cap Core Average8.09 3.52 7.07 4.91 Rheinmetall AG 2.83 Morningstar Foreign Large Value Average 0.88 0.37 5.34 3.61 Mobile TeleSystems PJSC ADR 2.78 Past performance is no guarantee of future results.

Hana Financial Group Inc. 2.76 Rankings and ratings Mitsubishi UFJ Financial Group, Inc. 2.74 Morningstar total return rankings—Institutional Class (as of 12/31/2020) Samsung Electronics Co., Ltd. GDR 2.70 Morningstar Category Foreign large value 1 year 85 out of 352 Nomad Foods Ltd. 2.69 3 year 183 out of 322 5 year 99 out of 280 10 year 54 out of 184 Portfolio characteristics ★★★ MSCI ACWI ex USA Overall Morningstar Rating ™ Fund Index (Net) The Overall Morningstar Rating, a weighted average of the 3-, 5-, and 10-year (if applicable) ratings, is out of 322 funds in the Foreign large value category, based on risk-adjusted returns Weighted average market cap $40.81B $100.92B as of 12/31/2020. Weighted median market cap $10.78B $42.32B Performance and volatility measures2 EPS Growth (3- to 5-year forecast) 13.02% 13.09% Fund P/E ratio (trailing 12-month) 15.60x 22.46x Alpha -4.98 Turnover1 77.81% Beta 1.17 P/B ratio 1.61x 1.99x Sharpe ratio -0.07 P/S ratio 1.30x 2.15x Standard deviation 21.43% Number of equity holdings 52 2361 R-squared 0.96 Source: FactSet. 1. Calculated based on a one-year period. Information ratio -0.87

Fund facts Upside capture 112.87% Inception date 9/6/1979 Downside capture 119.63% Net expense ratio—Inst 0.85% Tracking error 5.47% Past performance is no guarantee of future results. Assets—all share classes $232.15M 2. Calculated for the Institutional Class based on a three-year period. Relative measures are compared with the fund’s benchmark.

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. 7 QUARTERLY MUTUAL FUND COMMENTARY Q4 2020 | All information is as of 12/31/2020 unless otherwise indicated.

Wells Fargo International Equity Fund

Benchmark descriptions: Attribution analysis:

The Lipper averages are compiled by Lipper, Inc., an independent mutual fund research and Performance attribution and sector and country returns are calculated using rating service. Each Lipper average represents a universe of funds that are similar in investment the Brinson-Fachler attribution model. As a result, performance attribution calculations may objective. You cannot invest directly in a Lipper average. differ from the fund’s actual investment results. Common sources of attribution dispersion from official returns include: the use of end of day holdings and prices, the exclusion of fees, and The Morningstar Category average is the average return for the peer group based on the returns the use of myriad pricing sources to accommodate different benchmark providers. 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. Definition of terms: The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the Alpha measures the difference between a fund’s actual returns and its expected performance equity market performance of developed markets, excluding the U.S. and Canada. Source: MSCI. given its level of risk (as measured by beta). MSCI makes no express or implied warranties or representations and shall have no liability Beta measures fund volatility relative to general market movements. It is a standardized whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further measure of systematic risk in comparison with a specified index. The benchmark beta is 1.00 by redistributed or used as a basis for other indices or any securities or financial products. This definition. report is not approved, reviewed, or produced by MSCI. You cannot invest directly in an index. Downside capture measures a fund’s replication of its benchmark during periods of The Morgan Stanley Capital International (MSCI) All Country World (ACWI) ex USA Growth negative returns. During periods of negative benchmark returns, a downside capture ratio less Index (Net) measures the equity market performance of the large- and mid-cap securities than 100% reflects product performance greater than the benchmark and a downside capture exhibiting overall growth style characteristics across developed and emerging market countries, ratio greater than 100% reflects performance less than the benchmark. excluding the U.S. The growth investment style characteristics for index construction are Information ratio measures the consistency of excess return (return in excess of a defined using five variables: long-term forward EPS growth rate, short-term forward EPS benchmark). This value is determined by taking the annualized excess return over a benchmark growth rate, current internal growth rate, long-term historical EPS growth trend, and long-term (style benchmark by default) and dividing it by the standard deviation of excess return. historical sales per share growth trend. You cannot invest directly in an index. R-squared is a measurement of how similar a fund’s historical performance has been to that The Morgan Stanley Capital International (MSCI) All Country (ACWI) ex USA Value Index (Net) of the benchmark. The measure ranges from 0.0, which means that the fund’s performance measures the equity market performance of large- and mid-cap securities exhibiting overall bears no relationship to the performance of the index, to 1.0, which means that the fund’s value style characteristics across developed and emerging market countries, excluding the U.S. performance was perfectly synchronized with the performance of the benchmark. The value investment style characteristics for index construction are defined using three variables: book value to price, 12-month forward earnings to price, and dividend yield. You Sharpe ratio measures the potential reward offered by a mutual fund relative to its risk cannot invest directly in an index. 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. Global Purchasing Managers' Index (PMI) is an index of the prevailing direction of economic trends in the manufacturing and service sectors. It consists of a diffusion index that summarizes whether market conditions, as viewed by purchasing managers, are expanding, staying the same, or contracting. You cannot invest directly in an index. American depositary receipt (ADR) is a negotiable certificate issued by a U.S. depository bank representing a specified number of shares investment in a foreign company's stock. Such certificates provide access to foreign listed companies that would not be open otherwise to U.S. investment. Price book ratio is calculated by dividing the current price of a company's stock times its shares outstanding (market capitalization) by its last quarter's book value. Book value is assets less liabilities which is equivalent to book value of equity. This ratio represents the market value for every dollar of tangible assets.

8 QUARTERLY MUTUAL FUND COMMENTARY Q4 2020 | All information is as of 12/31/2020 unless otherwise indicated.

Wells Fargo International Equity Fund

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 36–59 months of total returns, 60% 5-year rating/40% 3-year rating for 60–119 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 Equity Fund received 2 stars among 322 funds, 3 stars among 280 funds, and 3 stars among 184 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. The Morningstar absolute ranking is based on the fund’s total return rank relative to all funds that have the same category for the same time period. Morningstar rankings do not include the effect of sales charges. Past performance is no guarantee of future results. ©2020 Morningstar. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

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 smaller-company securities risk. Consult the fund’s prospectus for additional information on these and other risks.

The inception date of the Institutional Class was March 09, 1998. Historical performance shown for the Institutional Class of the fund prior to July 19, 2010, is based on the performance of the fund’s predecessor, the Evergreen International Equity Fund. The views expressed and any forward-looking statements are as of December 31, 2020, and are those of the fund manager and/or Wells Fargo Asset Management. Discussions of individual securities or the markets generally are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Asset Management disclaims any obligation to publicly update or revise any views expressed or any 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 wfam.com. Read it carefully before investing. Wells Fargo Asset Management (WFAM) is the trade name for certain investment advisory/management firms owned by Wells Fargo & Company. These firms include but are not limited to Wells Capital Management Incorporated and Wells Fargo Funds Management, LLC. Certain products managed by WFAM entities are distributed by Wells Fargo Funds Distributor, LLC (a broker-dealer and Member FINRA). CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.