Download Municipal Bond Fund Report

 Quarterly report Q2 2017 | All information is as of 6-30-17 unless otherwise indicated.
Wells Fargo Municipal Bond Fund
General fund information
Portfolio characteristics
Ticker: WMBIX
Portfolio managers: Lyle J. Fitterer, CFA, CPA; Robert J. Miller
Subadvisor: Wells Capital Management Inc.
Category: Core municipal bond
Fund strategy
 Uses both bottom-up credit research and top-down macroeconomic analysis
 Seeks to generate excess performance through actively managing the four key elements of total return: duration, yieldcurve positioning, sector and credit allocation, and security selection
 Uses a relative-value approach based on extensive credit analysis that seeks opportunities from changing market trends
and pricing inefficiencies to generate excess returns
Key drivers of performance
 Amid a more hawkish tone from central bankers, U.S. inflation advances were paltry and municipal yields declined.
 The fund slightly underperformed its benchmark during the second quarter. Credit-quality allocation was the largest
contributor to results while duration, yield-curve positioning, sector allocation, and security selection detracted.
Average annual total returns (%) as of 6-30-17*
3 month
1.89
Year to
date
3.46
1 year
-0.28
3 year
3.67
5 year
4.16
10 year
5.34
Since inception
(10-23-86)
5.58
Lipper General & Insured Municipal Debt
Funds Average
1.89
2.83
-0.94
3.15
3.13
3.93
–
Bloomberg Barclays Municipal Bond Index
1.96
3.57
-0.49
3.33
3.26
4.60
–
Municipal Bond Fund–Inst
*Returns for periods of less than one year are not annualized.
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, principal value, and yields of an investment will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data
quoted and assumes the reinvestment of dividends and capital gains. Current month-end performance is available at the fund’s website,
wellsfargofunds.com. Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.
The fund’s gross expense ratio is 0.46%. The fund’s net expense ratio is 0.46%. The manager has contractually committed, through
10-31-17, to waive fees and/or reimburse expenses to the extent necessary to cap the fund’s total annual fund operating expenses after
fee waiver at 0.48% for the Institutional Class. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses
(if any), and extraordinary expenses are excluded from the cap. 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.
Avg. eff. duration
Avg. maturity (yrs.)¹
AMT²
30-day SEC yield
Wells Fargo
Municipal
Bond Fund
Bloomberg Barclays
Municipal
Bond Index
5.43
15.82
6.59%
2.64%
6.30
13.88
1.64%
–
Credit-quality allocation (%)3
AAA/Aaa
AA/Aa
A/A
BBB/Baa
BB/Ba
B/B
CCC/Caa and below
Nonrated
A-1/P-1/MIG1
SP-2/MIG2
A-3/MIG3
Cash equivalents
2.5
14.8
29.9
21.3
4.7
2.0
0.6
10.9
9.1
2.8
0.3
1.3
14.2
53.9
24.7
7.2
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Sector allocation (%)
GO bonds
Insured bonds
Prerefunded bonds
Revenue bonds
21.4
0.0
7.3
70.1
27.6
0.2
7.1
65.1
1. Weighted average time to maturity. 2. Percent of net assets
in AMT bonds. 3. The ratings indicated are from Standard &
Poor's, Fitch, and/or Moody's Investors Service. The
percentages of the fund’s portfolio with the ratings depicted in
the chart are calculated based on the total investments of the
fund. If a security was rated by all three rating agencies, the
median rating was used. If a security was rated by two of
three rating agencies, the lower rating was used. If a security
was rated by one of the agencies, that rating was used.
Due to rounding, percentages may not add up to 100%.
The fund's 30-day unsubsidized SEC yield is 2.64%.
(See pages 6–7 for important information.)
1 CM202 07-17
Wells Fargo Municipal Bond Fund
Quarterly report Q2 2017
Wells Fargo Municipal Bond Fund
Strategy and performance attribution (gross of expenses 4 )
Fund positioning
Market activity
Result
Duration
We maintained a modestly short, defensive position throughout
the quarter. In the first half of the quarter, we used the basis
trade (we sold Treasury futures) to reduce duration. We also sold
select longer-duration debt into market strength in favor of
increasing our exposure to variable-rate demand notes (VRDNs),
which have nearly zero duration.
Municipal yields declined across the curve during the quarter, with the
greatest declines occurring in maturities of six years and longer.
Treasury yields also declined but less so than municipal yields, which
resulted in richer municipal/Treasury yield ratios across the curve.
Negative
Yield curve
We maintained a barbelled yield-curve positioning. VRDNs,
which provide liquidity and a hedge against rising rates; floatingrate notes (FRNs); and short-term fixed-rate paper made up the
front end of the barbell and were paired with fixed-rate and zerocoupon debt in the 10- to 25-year segment. An overweight to the
belly of the curve helped results but was more than offset by an
overweight to the front end of the curve and an underweight to
the long end of the curve (greater than 12 years).
The municipal curve continued to flatten during the quarter. Most of
the flattening occurred inside of 10 years, while the shape of the curve
out past 10 years was little changed. In this environment, the front end
of the curve (1 to 5 years) returned 0.56%, the belly of the curve (5 to
15 years) returned 2.17%, and the long end of the curve (greater than
15 years) returned 2.62%.
Slight negative
Sector
In general, we continued to overweight revenue and local
general obligation (GO) bonds and underweight state GOs and
prerefunded bonds. Detractors included overweights to Illinois,
Vermont, and the Virgin Islands as well as underweights to the
transportation, health care, California, South Carolina, and
Texas. Contributors included overweights to Pennsylvania,
Michigan, and education as well as underweights to state GOs,
prerefunded bonds, Connecticut, and Minnesota.
Among the main sectors, prerefunded bonds (given their shorter
duration and higher credit quality) and GOs underperformed, while
revenue bonds outperformed. The top-performing subsectors included
health care, power, and education. Meanwhile, solid waste/resource
recovery and state GOs were the bottom performers. The topperforming states included Pennsylvania and Texas, while Illinois and
Georgia were the bottom performers.
Negative
Quality
We maintained overweights to A-rated and BBB-rated debt and
underweights to AAA-rated and AA-rated paper. In addition, we
continued to have out-of-benchmark allocations to high-yield and
nonrated credits. During the quarter, we modestly increased the
fund’s average credit quality by selling select medium- and
lower-quality paper into strength.
Medium- and lower-quality credit tiers outperformed as investors
continued their search for yield. Within the benchmark, A-rated and
BBB-rated credits returned a combined 2.17%, while AAA-rated and
AA-rated credits returned a combined 1.86%. Municipal high yield
returned 1.99%.
Positive
Issue selection
Issue selection was a detractor from performance. In particular,
selection within the education sector (e.g., Vermont Student
Assistance Corporation) and the health care sector (e.g., New
York Dormitory Authority) weighed on performance, while
selection within the leasing sector (e.g., Delaware Valley
Regional Finance Authority) and the industrial development
revenue/pollution control revenue (IDR/PCR) sector (e.g., Ohio
Water Development Authority and Beaver County Industrial
Development Authority) buoyed performance. In addition,
selection within the state of Illinois weighed on performance.
In May, Puerto Rico's federal oversight board filed an unprecedented
petition in federal court under Title III to restructure its $73 billion in
debt. While Title III contains a number of key provisions that are
similar to Chapter 9, a number of its unique provisions have yet to be
interpreted by the courts. The state of Illinois has been without a
budget since July 1, 2015, and although it did not reach a budget
agreement by the end of the quarter, the recent credit rating
downgrades (and threats of more) appear to be helping lawmakers
find the motivation to reach an agreement.
Negative
4. The gross of expenses performance attribution does not reflect the deduction of the fund’s expenses as shown in the prospectus.
2
Wells Fargo Municipal Bond Fund
Quarterly report Q2 2017
Wells Fargo Municipal Bond Fund
Fixed-income market review
Municipal yields declined and the yield curve flattened
4
AAA-rated GO yield curves
3-31-17
6-30-17
Yield (%)
3
 Municipal bond yields declined during the quarter, except at the very front end of the curve.
 As a result, the yield curve flattened. At quarter-end, the difference between 30-year and 2-year
municipal yields was 181 basis points (bps; 100 bps equal 1.00%), which is 22 bps flatter than the
end of the previous quarter and 60 bps flatter than the 20-year average.
 For a historical perspective, the yield curve was at its steepest in January 2011 (447 bps) and at its
narrowest in February 2007 (46 bps).
2
1
0
0 yr.
5 yr.
10 yr.
15 yr.
20 yr.
25 yr.
30 yr.
Municipals appeared rich relative to Treasuries
Municipal/Treasury yield ratios
1.1
 Municipal yields are rarely the same (100%) or higher than Treasury yields because of their tax
advantage. Conversely, ratios below 90% are indicative of more richly valued municipals.
 Municipals with maturities of less than 12 years are now in rich territory, and these yields are also
below their 20-year average relative to Treasuries.
Ratio
1.0
0.9
3-31-17
6-30-17
20-year average
0.8
0.7
0.6
0 yr.
5 yr.
10 yr.
15 yr.
20 yr.
25 yr.
 More than $5 billion in inflows to municipal bond funds combined with a 14% decrease in supply
year to date contributed to the strong performance of municipal bonds.
30 yr.
Bloomberg Barclays Municipal Bond Index total return, Q2 2017
Municipal sector (%)
Municipal bond 1.96
GO bond
1.80
Insured bond
1.70
Prerefunded
0.54
Revenue bond
2.19
Municipal quality (%)
AAA
1.73
AA
1.89
A
2.19
BBB
2.09
High yield
1.99
Municipal maturities (%)
1 year
0.26
3 year
0.54
5 year
1.25
10 year
2.35
20 year
2.49
Long bond
2.75
 The Bloomberg Barclays Municipal Bond Index returned 1.96% during the second quarter of 2017.
 Medium-rated municipals continued to outperform higher-rated bonds as investors sought income.
High-yield bonds lagged slightly due to their shorter-duration characteristics but returned a healthy
1.99%.
 As interest rates fell, longer-term bonds had the best returns.
Sources: Bloomberg L.P. and Barclays
Past performance is no guarantee of future results.
3
Wells Fargo Municipal Bond Fund
Quarterly report Q2 2017
Wells Fargo Municipal Bond Fund
The economy and monetary policy
Signs of reflation in Europe boosted bond yields there
0.6
 Inflation trends remained top of mind. In the U.S., the Federal Reserve (Fed) said that recent
slowing of inflationary pressures were likely transitory. The Personal Consumption Expenditure
Price Index grew 1.4% on a year-over-year basis in May, which was less than the April rate of
1.7%. Within the subcategories, service price inflation rose 2.2%, nondurable goods prices rose
only 1.1%, and durable goods prices declined 2.5% (thanks to discounting on new and used autos).
Ten-year German government bond yield
Yield (%)
0.5
0.4
0.3
0.2
0.1
0.0
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
 Europe watched for signs of reflation. European Central Bank (ECB) President Mario Draghi said
that the ECB removed its easing bias because deflation was no longer a risk and inflation was
expected to move higher. The Bank of England held rates steady although three of its eight
members voted to increase the target rate as inflation (as measured by the Consumer Price Index)
rose 2.9% in May from a year ago. Meanwhile, 10-year German bond yields shot up to 0.47%
alongside expectations for greater inflation.
Job openings hit a series high amid labor market strength
7
Nonfarm job openings
 The job market continued to improve. Unemployment declined to 4.3% in May 2017 from 10% in
October 2009, and underemployment fell to 8.4% in May 2017 from 17.1% in April 2010. Both these
measures represented cyclical lows.
 Meanwhile, the number of job openings reached a series high of 6 million in April. This could
indicate a mismatch between the job seeker skills and job requirements. While the labor force
participation rate has stabilized slightly below 63%, the number of people working part-time for
economic reasons (also known as involuntary part-time workers) and the number of long-term
unemployed people is higher than during past expansions.
Millions
6
5
4
3
2
The Fed continued on its path of gradual rate hikes
1.25
Federal funds target rate (midpoint of range)
Percent
1.00
0.75
0.50
0.25
0.00
Jan-11
Jan-12
Jan-13
Jan-14
Jan-15
Jan-16
Jan-17
 Believing the economy is near full employment and inflation will soon reach a long-term target level
of 2%, the Fed again raised its target federal funds rate in June by 0.25% to a range between
1.00% and 1.25%.
 This marks the fourth hike since December 2015. According to the June 2017 Summary of
Economic Projections, Fed policymakers expect that a target federal funds rate of 3% would be
appropriate over the longer run.
 Meanwhile, the Fed continued to reinvest proceeds from its holdings of mortgage-backed securities
and Treasuries. However, both the March and June Federal Open Market Committee meeting
minutes discussed plans to begin gradually slowing reinvestments, thereby shrinking its balance
sheet, later this year.
Sources: Bloomberg L.P., U.S. Bureau of Labor Statistics, and the Federal Reserve
Past performance is no guarantee of future results.
4
Wells Fargo Municipal Bond Fund
Quarterly report Q2 2017
Wells Fargo Municipal Bond Fund
Portfolio positioning
Outlook
 We remain cautious about interest-rate risk over the longer run because we expect
rates will move modestly higher. We may, however, tactically lengthen in
anticipation of seasonal effects or trading opportunities.
 The fund has a barbell allocation to the yield curve. The front end is invested in VRDNs,
which provide liquidity and a hedge against rising rates, and FRNs. The longer end is
invested in bonds that we expect will benefit from rolling down the steeper parts of the
yield curve.
 We are maintaining our long-term bias toward medium-quality credits because we
think the economy will continue to grow and therefore credit conditions may improve
modestly. However, we have been tactically increasing the fund’s average credit
quality due to the richness of credit in the current environment and are adding
medium- and lower-quality credits only on a selective basis.
 The fund’s allocations to the main sectors remain overweight revenue bonds and
underweight both GOs and prerefunded bonds. At the subsector level, the fund is
overweight education, IDR/PCR, leasing, special tax, and local GOs. The fund is
underweight state GOs, transportation, health care, and power. The fund has very
little exposure to Puerto Rico or tobacco bonds, both of which are mostly in the
high-yield index rather than the fund’s benchmark.
Going forward, we believe the U.S. economy may continue to grow at a modest pace,
which should generally lead to higher revenues for many municipalities and improving
credit fundamentals. With regard to interest rates, it appears the Fed will most likely raise
rates one or two additional times in 2017, which should lead to modestly higher yields. At
this juncture, however, municipal yields have declined relative to Treasury yields and
outperformed. In fact, municipal yield versus Treasury yield ratios have moved back to a
range more typical prior to the financial crisis of 2008.
Municipals have outperformed Treasury bills, w ith ratios reaching
precrisis levels
1.3
1.2
Ten-year municipal/Treasury yield ratio
Ratio
1.1
1.0
0.9
0.8
0.7
0.6
For municipal investors, new policies regarding tax reform and infrastructure spending
were not forthcoming. If tax reform becomes a focus of federal policymakers, we
encourage investors to look beyond any near-term volatility caused by it. The long-term
drivers of valuations will be supply/demand trends, absolute yield levels, the shape of the
yield curve, and credit fundamentals.
In terms of our sector strategies, the hospital sector has performed well in 2017 but
diligence is still required as the specifics of Affordable Care Act reforms may shape
reimbursements and financial performance in the sector. Also within the revenue sector,
airports, toll roads, and water/sewer bonds remain well bid but therefore have a smaller
buffer should spreads widen. The power sector is in transition as cheap natural gas and
the onboarding of subsidized renewables puts pressure on other types of electricalgeneration assets.
Regarding Illinois, we continue to believe that diverse and informed exposures to
securities from within Illinois offer compelling valuations. In fact, securities in the midst of
ratings transitions and where investor opinions about them vary have historically been
worth close examination for investment opportunities. As of quarter-end, Illinois had not
reached a budget agreement. Our expectation at this point is that a downgrade would lead
to spread widening as forced sellers or concerned investors exit but investors who believe
the problem is more political than economic would invest at recent excessive
spreads. Should the political impasse end sooner, particularly with a return to higher
income tax rates, Illinois likely will continue to trade at elevated levels given its
underfunded pensions, outstanding payables, and budgetary weaknesses, but its spreads
could tighten materially.
Puerto Rico, on the other hand, remains an extremely risky investment proposition. The
recent decision to include the electric utility (PREPA) in the commonwealth’s bankruptcy
underscores how unilateral decisions by the oversight board can be both difficult to
forecast and costly to the financial outcomes for bondholders.
Source: Bloomberg L.P.
Past performance is no guarantee of future results.
5
Wells Fargo Municipal Bond Fund
Quarterly report Q2 2017
Wells Fargo Municipal Bond Fund
Portfolio characteristics:
Portfolio characteristics and allocations are subject to change and may have changed since
the date specified.
Fund facts
Inception date
Net expense ratio—Inst
Assets—all share classes
10-23-86
0.46%
$2,648.62M
Benchmark descriptions:
The Bloomberg Barclays Municipal Bond Index is an unmanaged index composed of
long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly
in an index.
The Lipper averages are compiled by Lipper, Inc., an independent mutual fund research and
rating service. Each Lipper average represents a universe of funds that are similar in
investment objective. You cannot invest directly in a Lipper average.
The Personal Consumption Expenditures (PCE) Index is the primary measure of consumer
spending on goods and services in the U.S. economy. It accounts for about two-thirds of
domestic final spending and is part of the personal income report issued by the Bureau of
Economic Analysis of the Department of Commerce.
The Consumer Price Index (CPI) is a measure of the average change over time in the prices
paid by urban consumers for a market basket of consumer goods and services.
You cannot invest directly in an index.
Rankings and ratings
Morningstar total return rankings—Institutional Class (as of 6-30-17)
Morningstar Category:
Muni national long
1 year
11 out of 158 funds
3 year
45 out of 142 funds
5 year
12 out of 132 funds
10 year
NA
Overall Morningstar Rating™

The Overall Morningstar Rating, a weighted average of the 3-, 5-, and 10-year (if applicable)
ratings, is out of 142 funds in the muni national long category, based on risk-adjusted returns as
of 6-30-17.
Share class availability
Share
class
Ticker
Gross expense ratio
(%)
Net expense ratio
(%)
Contractual expense
waiver date
A
WMFAX
0.79
0.75
10-31-17
C
WMFCX
1.54
1.50
10-31-17
Admin
WMFDX
0.73
0.60
10-31-17
Inst
WMBIX
0.46
0.46
10-31-17
The manager has contractually committed to waive fees and/or reimburse expenses to the
extent necessary to cap the fund’s total annual fund operating expenses after fee waiver at
0.75% (A), 1.50 (C), 0.60 (Admin), and 0.48 (I). 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.
6
Definition of terms:
30-day SEC yield: The 30-day SEC yield is calculated with a standardized formula mandated
by the SEC. The formula is based on maximum offering price per share and includes the effect
of any fee waivers. Without waivers, yields would be reduced. The 30-day unsubsidized SEC
yield does not reflect waivers in effect. A fund's actual distribution rate will differ from the SEC
yield, and any income distributions from the fund may be higher or lower than the SEC yield.
Average maturity: The average maturity represents the weighted average time to maturity of
all the debt securities held in the portfolio. A relatively short average maturity results in smaller
price fluctuations in response to changes in market rates of interest. A short average maturity
subjects the owner of a debt portfolio to the risk that maturing debt will be replaced with debt
carrying a lower interest rate. Average maturity is an important consideration for investors who
hold bond and money market funds.
Credit-quality ratings: Credit-quality ratings apply to underlying holdings of the fund and
not the fund itself. Standard & Poor's and Fitch rate the creditworthiness of bonds from AAA
(highest) to D (lowest). Standard & Poor's rates the creditworthiness of short-term notes from
SP-1 (highest) to SP-3 (lowest). Ratings from A to CCC may be modified by the addition of a
plus (+) or minus (-) sign to show relative standing within the rating categories. Moody’s rates
the creditworthiness of bonds from Aaa (highest) to CC (lowest). Ratings Aa to B may be
modified by the addition of a number 1 (highest) to 3 (lowest) to show relative standing
within the ratings categories. Moody’s rates the creditworthiness of short-term U.S.
tax-exempt municipal securities from MIG-1/VMIG-1 (highest) to SG (lowest). Credit quality
and credit-quality ratings are subject to change.
Duration: Duration is the weighted average of the timing of cash-flow payments from fixedincome securities. Duration is used as a measurement of sensitivity to interest rates.
Yield curve: The yield curve is a graphical representation of fixed-income security yields
(usually U.S. Treasuries) at their respective maturities, starting with the shortest time to
maturity and sequentially plotting in a line chart to the longest maturity.
Wells Fargo Municipal Bond Fund
Quarterly report Q2 2017
Wells Fargo Municipal Bond Fund
The inception date of the Institutional Class was 3-31-08. Performance shown prior to the
inception of the Institutional Class reflects the performance of the Investor Class, which
incepted on 10-26-86, and includes expenses that are not applicable to and are higher than
those of the Institutional Class.
The views expressed in this document are as of 6-30-17 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.
For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating
based on a Morningstar risk-adjusted return measure that accounts for variation in a fund’s
monthly performance (including the effects of sales charges, loads, and redemption fees, unless
otherwise indicated), placing more emphasis on downward variations and rewarding consistent
performance. The top 10% of funds in each 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. (Each share class is counted as a fraction of one fund within this scale and is rated
separately, which may cause slight variations in the distribution percentages.) Across U.S.domiciled muni national long funds, the Municipal Bond Fund received 3 stars among 142
funds, 4 stars among 132 funds, and 5 stars among 106 funds for the 3-, 5-, and 10-year
periods, respectively. Morningstar Ratings and Rankings are for the Institutional Class only;
other classes may have different performance characteristics. The Morningstar Return ranking
is based on the fund’s total return rank relative to all funds that have the same category for the
same time period. Past performance is no guarantee of future results.
7
Risks: Bond values fluctuate in response to the financial condition of individual
issuers, general market and economic conditions, and changes in interest rates.
Changes in market conditions and government policies may lead to periods of heightened
volatility in the bond market and reduced liquidity for certain bonds held by the fund. In
general, when interest rates rise, bond values fall and investors may lose principal value.
Interest-rate changes and their impact on the fund and its share price can be sudden and
unpredictable. The use of derivatives may reduce returns and/or increase volatility.
Certain investment strategies tend to increase the total risk of an investment (relative
to the broader market). This fund is exposed to high-yield securities risk and municipal
securities risk. Consult the fund's prospectus for additional information on these and other
risks. A portion of the fund's income may be subject to federal, state, and/or local income
taxes or the Alternative Minimum Tax (AMT). Any capital gains distributions may be taxable.
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
Management nor Wells Fargo Funds Distributor has fund customer accounts/assets, and
neither provides investment advice/recommendations or acts as an investment advice fiduciary
to any investor. 304118 07-17
CM202 07-17
Wells Fargo Municipal Bond Fund