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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-09253
Wells Fargo Funds Trust
(Exact name of registrant as specified in charter)
525 Market St., San Francisco, CA 94105
(Address of principal executive offices) (Zip code)
Catherine Kennedy
Wells Fargo Funds Management, LLC
525 Market St., San Francisco, CA 94105
(Name and address of agent for service)
Registrant’s telephone number, including area code: 800-222-8222
Date of fiscal year end: January 31
Registrant is making a filing for 8 of its series:
Wells Fargo 100% Treasury Money Market Fund, Wells Fargo Cash Investment Money Market Fund, Wells Fargo Government Money Market Fund, Wells Fargo Heritage Money Market Fund, Wells Fargo Money Market Fund, Wells Fargo Municipal Cash Management Money Market Fund, Wells Fargo National Tax-Free Money Market Fund, and Wells Fargo Treasury Plus Money Market Fund.
Date of reporting period: July 31, 2020
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ITEM 1. REPORT TO STOCKHOLDERS
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Semi-Annual Report
July 31, 2020
Institutional Money Market Funds
∎ | Wells Fargo Cash Investment Money Market Fund |
Beginning on January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, paper copies of the Wells Fargo Funds’ annual and semi-annual shareholder reports issued after this date will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Funds’ website, and you will be notified by mail each time a report is posted and provided with a website address to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling 1-800-222-8222 or by enrolling at wellsfargo.com/advantagedelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports; if you invest directly with the Fund, you can call 1-800-222-8222. Your election to receive reports in paper will apply to all Wells Fargo Funds held in your account with your financial intermediary or, if you are a direct investor, to all Wells Fargo Funds that you hold.
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The views expressed and any forward-looking statements are as of July 31, 2020, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Asset Management. Discussions of individual securities, or the markets generally, or any Wells Fargo Fund 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 and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.
INVESTMENT PRODUCTS: NOT FDIC INSURED ◾ NO BANK GUARANTEE ◾ MAY LOSE VALUE
Institutional Money Market Funds | 1
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Letter to shareholders (unaudited)
Andrew Owen
President
Wells Fargo Funds
Dear Shareholder:
We are pleased to offer you this semi-annual report for the Wells Fargo Cash Investment Money Market Fund for the six-month period that ended July 31, 2020. Global stock markets tumbled in February and March as governments took unprecedented measures to stop the spread of the coronavirus at the expense of short-term economic output. However, most markets rebounded from April on to offset much of the losses as central banks attempted to bolster capital markets and confidence. Fixed-income markets generally performed well, with the exception of high-yield bonds, as U.S. bonds overall achieved modest gains. U.S. and emerging market equities outperformed international developed market equities over the six-month period.
For the period, U.S. stocks, based on the S&P 500 Index,1 returned 2.42% and international stocks, as measured by the MSCI ACWI ex USA Index (Net),2 fell 4.47%. The MSCI EM Index (Net)3 gained 3.08%. For bond investors, the Bloomberg Barclays U.S. Aggregate Bond Index4 added 5.69%, the Bloomberg Barclays Global Aggregate ex-USD Index5 returned 4.29%, the Bloomberg Barclays Municipal Bond Index6 returned 1.96%, and the ICE BofA U.S. High Yield Index7 lost 0.23%.
Concerns about the coronavirus took over the market.
In February, the coronavirus became the major market focus. Fears of the virus’s impact on global growth led to expectations of increased global central bank monetary policy support. That led the 10-year U.S. Treasury yield to fall to an all-time low of 1.1% by the end of the month. Although equity markets initially shrugged off concerns about the outbreak, focusing instead on strong fourth-quarter earnings and improving business confidence in January, market sentiment turned sharply lower toward month-end. Oil prices tumbled as Russia and the Organization of the Petroleum Exporting Countries compounded a major decline in oil demand with a brutal price war, causing the price of West Texas Intermediate crude oil to plummet.
1 | The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock’s weight in the index proportionate to its market value. You cannot invest directly in an index. |
2 | The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the United States. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. You cannot invest directly in an index. |
3 | The MSCI Emerging Markets (EM) Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure equity market performance of emerging markets. You cannot invest directly in an index. |
4 | The Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. You cannot invest directly in an index. |
5 | The Bloomberg Barclays Global Aggregate ex-USD Index is an unmanaged index that provides a broad-based measure of the global investment-grade fixed-income markets excluding the U.S.-dollar-denominated debt market. You cannot invest directly in an index. |
6 | 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. |
7 | The ICE BofA U.S. High Yield Index is a market-capitalization-weighted index of domestic and Yankee high-yield bonds. The index tracks the performance of high-yield securities traded in the U.S. bond market. You cannot invest directly in an index. Copyright 2020. ICE Data Indices, LLC. All rights reserved. |
2 | Institutional Money Market Funds
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Letter to shareholders (unaudited)
The global spread of the coronavirus led many countries to clamp down on social and business-related activity in order to contain the virus from causing even greater devastation and overwhelming the health care system. This abrupt stoppage of economic activity led to the sharp deceleration of global output, sending economies into a deep contraction. Central bank responses were swift, as they slashed interest rates and expanded quantitative easing programs to restore liquidity and confidence to the markets. In the U.S., the Federal Reserve launched several lending programs, funding investment-grade bonds, money market mutual funds, and commercial paper while purchasing Treasuries, mortgage-backed securities, and overnight repurchase agreements. Meanwhile, stock markets tumbled quickly into a bear market, ending the longest bull stock market in U.S. history.
Markets rebounded strongly in April, fueled by unprecedented government and central bank stimulus measures. The U.S. economy contracted by an annualized 5.0% pace in the first quarter, with 30 million new unemployment insurance claims in six weeks. In the eurozone, first-quarter real gross domestic product (GDP) shrank 3.8%, with the composite April Flash Purchasing Managers’ Index, a monthly survey of purchasing managers, falling to an all-time low of 13.5. The European Central Bank expanded its quantitative easing to include the purchase of additional government bonds of countries with the greatest virus-related need, including Italy and Spain. China’s first-quarter GDP fell by 6.8% year over year. However, retail sales, production, and investment showed signs of recovery. Extreme oil-price volatility continued as global supply far exceeded demand.
In May, the equity market rebound continued, with widespread strong monthly gains. Investors regained confidence on reports of early signs of success in human trials of a coronavirus vaccine. Growth stocks continued to outperform value stocks while returns on global government bonds were generally flat. In the U.S., a gap grew between the stock market rebound and devastating economic data points, including an April unemployment rate of 14.7%, the highest level since World War II. Purchasing managers’ indices continued to reflect weakening activity in May in both the manufacturing and services sectors. U.S. corporate earnings reports indicated a 14% year-over-year contraction in earnings from the first quarter of 2019. However, high demand for technology, driven by remote activity, helped maintain robust information technology sector earnings, which helped drive powerful well-known technology stocks higher.
Financial markets posted widely positive returns in June despite ongoing economic weakness and high levels of uncertainty on the containment of the coronavirus and the timing of an effective vaccine. There were hopeful signs as economies reopened, with both U.S. and U.K. retail sales rebounding substantially in May. However, year over year, sales remained depressed. Vitally important to market sentiment was the ongoing commitment by central banks globally to do all they could to provide economic support through liquidity and low borrowing costs. U.S. economic activity was aided by one-time $1,200 stimulus checks and $600 bonus weekly unemployment benefits due to expire at the end of July. However, unemployment remained in the double digits, easing somewhat from 14.7% in April to 11.1% in June. During June, numerous states reported alarming increases in coronavirus cases. China’s economic recovery picked up momentum in June, though it remained far from a full recovery.
July was a broadly positive month for both global equities and fixed income. However, economic data and a resurgence of coronavirus cases pointed to the vulnerability of the global economy and the ongoing imperative to regain control of the pandemic. Second-quarter GDP shrank by 9.5% and 12.1% in the U.S. and eurozone, respectively, from the previous quarter. In contrast, China reported a 3.2% year-over-year expansion in its second-quarter GDP. U.S. unemployment remained historically high despite adding 1.8 million jobs in July, with a double-digit jobless rate persisting. However, manufacturing activity grew in both the U.S. and eurozone. In Asia, while China’s manufacturing sector
“The global spread of the coronavirus led many countries to clamp down on social and business-related activity in order to contain the virus from causing even greater devastation and overwhelming the health care system.”
“Financial markets posted widely positive returns in June despite ongoing economic weakness and high levels of uncertainty on the containment of the coronavirus and the timing of an effective vaccine.”
Institutional Money Market Funds | 3
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Letter to shareholders (unaudited)
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For further information about your Fund, contact your investment professional, visit our website at wfam.com, or call us directly at 1-800-222-8222. |
continued to expand, activity in Japan and South Korea contracted. In July, a rising concern was the rapid and broad reemergence of coronavirus infections. Despite the ongoing promise of positive early-stage vaccine trial results, economic activity could be held back by the continued spread of the virus and the end of a widely received $600-a-week bonus unemployment benefit in late July.
Don’t let short-term uncertainty derail long-term investment goals.
Periods of investment uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Funds offers more than 100 mutual funds spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.
Thank you for choosing to invest with Wells Fargo Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.
Sincerely,
Andrew Owen
President
Wells Fargo Funds
4 | Institutional Money Market Funds
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Performance highlights (unaudited)
Investment objective
The Fund seeks current income, while preserving capital and liquidity.
Manager
Wells Fargo Funds Management, LLC
Subadvisers
Wells Capital Management Incorporated
Wells Capital Management Singapore
Portfolio managers
Michael C. Bird, CFA®‡
Jeffrey L. Weaver, CFA®‡
Laurie White
Average annual total returns (%) as of July 31, 2020
Expense ratios1 (%) | ||||||||||||||||||||||
Inception date | 1 year | 5 year | 10 year | Gross | Net2 | |||||||||||||||||
Administrator Class (WFAXX) | 7-31-2003 | 1.24 | 1.12 | 0.57 | 0.36 | 0.33 | ||||||||||||||||
Institutional Class (WFIXX) | 10-14-1987 | 1.37 | 1.25 | 0.65 | 0.24 | 0.20 | ||||||||||||||||
Select Class (WFQXX) | 6-29-2007 | 1.45 | 1.32 | 0.72 | 0.20 | 0.13 | ||||||||||||||||
Service Class (NWIXX) | 10-14-1987 | 1.09 | 0.97 | 0.49 | 0.53 | 0.45 |
Yield summary (%) as of July 31, 20202
Administrator Class | Institutional Class | Select Class | Service Class | |||||||||||
7-day current yield | 0.02 | 0.15 | 0.21 | 0.01 | ||||||||||
7-day compound yield | 0.02 | 0.15 | 0.22 | 0.01 | ||||||||||
30-day simple yield | 0.04 | 0.17 | 0.24 | 0.01 | ||||||||||
30-day compound yield | 0.04 | 0.17 | 0.24 | 0.01 |
Figures quoted represent past performance, which is no guarantee of future results, and do not reflect taxes that a shareholder may pay on an investment in a fund. Investment returns will fluctuate. The Fund’s yield figures more closely reflect the current earnings of the Fund than the total return figures. Current performance may be lower or higher than the performance data quoted, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s website, wfam.com.
Money market funds are sold without a front-end sales charge or contingent deferred sales charge. Other fees and expenses apply to an investment in the Fund and are described in the Fund’s current prospectus.
For floating NAV money market funds: You could lose money by investing in the Fund. Because the share price of the Fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
Please see footnotes on page 7.
6 | Institutional Money Market Funds
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Performance highlights (unaudited)
Portfolio composition as of July 31, 20203 |
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Effective maturity distribution as of July 31, 20203 |
Weighted average maturity as of July 31, 20204 | ||||
42 days |
Weighted average life as of July 31, 20205 | ||||
47 days |
‡ | CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. |
1 | Reflects the expense ratios as stated in the most recent prospectuses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report. |
2 | The manager has contractually committed through May 31, 2021, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.33% for Administrator Class, 0.20% for Institutional Class, 0.13% for Select Class, and 0.45% for Service Class. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses (if any), and extraordinary expenses are excluded from the expense caps. Prior to or after the commitment expiration date, the caps may be increased or the commitment to maintain the caps may be terminated only with the approval of the Board of Trustees. Without these caps, the Fund’s returns would have been lower. Without waived fees and/or reimbursed expenses, the Fund’s 7-day current yield would have been -0.02%, 0.10%, 0.14%, and -0.19% for Administrator Class, Institutional Class, Select Class, and Service Class, respectively. 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 prospectuses. |
3 | Amounts are calculated based on the total investments of the Fund. These amounts are subject to change and may have changed since the date specified. |
4 | Weighted Average Maturity (WAM): WAM is an average of the effective maturities of all securities held in the portfolio, weighted by each security’s percentage of total investments. The maturity of a portfolio security is the period remaining until the date on which the principal amount is unconditionally required to be paid, or in the case of a security called for redemption, the date on which the redemption payment is unconditionally required to be made. WAM calculations allow for the maturities of certain securities with demand features or periodic interest rate resets to be shortened. WAM is a way to measure a fund’s sensitivity to potential interest rate changes. WAM is subject to change and may have changed since the date specified. |
5 | Weighted Average Life (WAL): WAL is an average of the final maturities of all securities held in the portfolio, weighted by their percentage of total investments. The maturity of a portfolio security is the period remaining until the date on which the principal amount is unconditionally required to be paid, or in the case of a security called for redemption, the date on which the redemption payment is unconditionally required to be made. In contrast to WAM, the calculation of WAL allows for the maturities of certain securities with demand features to be shortened, but not the periodic interest rate resets. WAL is a way to measure a fund’s potential sensitivity to credit spread changes. WAL is subject to change and may have changed since the date specified. |
Institutional Money Market Funds | 7
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As a shareholder of the Fund, you incur ongoing costs, including management fees, shareholder servicing fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from February 1, 2020 to July 31, 2020.
Actual expenses
The “Actual” line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Actual” line under the heading entitled “Expenses paid during period” for your applicable class of shares to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The “Hypothetical” line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning account value 2-1-2020 | Ending account value 7-31-2020 | Expenses paid during the period1 | Annualized net expense ratio | |||||||||||||
Administrator Class | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,003.47 | $ | 1.64 | 0.33 | % | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.22 | $ | 1.66 | 0.33 | % | ||||||||
Institutional Class | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,004.10 | $ | 1.00 | 0.20 | % | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.87 | $ | 1.01 | 0.20 | % | ||||||||
Select Class | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,004.55 | $ | 0.65 | 0.13 | % | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,024.22 | $ | 0.65 | 0.13 | % | ||||||||
Service Class | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,002.82 | $ | 2.29 | 0.46 | % | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.58 | $ | 2.31 | 0.46 | % |
1 | Expenses paid is equal to the annualized net expense ratio of each class multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one-half-year period). |
8 | Institutional Money Market Funds
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Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Certificates of Deposit: 14.22% | ||||||||||||||||
ABN Amro Bank NV | 0.11 | % | 8-3-2020 | $ | 25,000,000 | $ | 25,000,000 | |||||||||
Banco Santander | 1.26 | 12-9-2020 | 8,000,000 | 8,021,245 | ||||||||||||
Bank of Montreal | 1.25 | 1-11-2021 | 12,000,000 | 12,055,103 | ||||||||||||
Citibank N.A. | 1.40 | 9-30-2020 | 6,000,000 | 6,012,995 | ||||||||||||
Credit Suisse New York (3 Month LIBOR +0.24%) ± | 0.57 | 12-4-2020 | 7,000,000 | 7,005,171 | ||||||||||||
Credit Suisse New York | 1.28 | 1-25-2021 | 8,000,000 | 8,037,631 | ||||||||||||
HSBC Bank USA NA | 0.11 | 8-3-2020 | 25,000,000 | 25,000,000 | ||||||||||||
Mitsubishi Trust & Bank Company | 0.39 | 1-21-2021 | 10,000,000 | 10,005,500 | ||||||||||||
MUFG Bank Limited of New York | 0.98 | 8-28-2020 | 10,000,000 | 10,006,786 | ||||||||||||
Nordea Bank AB (3 Month LIBOR +0.15%) ± | 0.42 | 10-13-2020 | 6,000,000 | 6,001,982 | ||||||||||||
Norinchukin Bank | 0.30 | 8-18-2020 | 5,000,000 | 5,000,355 | ||||||||||||
Norinchukin Bank | 0.30 | 9-1-2020 | 18,000,000 | 18,001,422 | ||||||||||||
Oversea-Chinese Banking | 0.20 | 9-3-2020 | 15,000,000 | 14,999,872 | ||||||||||||
Oversea-Chinese Banking | 1.25 | 10-8-2020 | 15,000,000 | 15,030,066 | ||||||||||||
Skandinaviska Enskilda Bank AB (3 Month LIBOR +0.15%) ± | 0.45 | 10-2-2020 | 7,000,000 | 7,001,949 | ||||||||||||
Standard Chartered Bank | 1.25 | 11-23-2020 | 5,000,000 | 5,015,143 | ||||||||||||
Sumitomo Mitsui Banking Corporation | 0.30 | 9-25-2020 | 12,000,000 | 12,002,182 | ||||||||||||
Sumitomo Mitsui Banking Corporation (1 Month LIBOR +0.18%) ± | 0.37 | 1-21-2021 | 10,000,000 | 9,999,398 | ||||||||||||
Sumitomo Mitsui Trust NY | 0.30 | 9-1-2020 | 8,000,000 | 8,001,116 | ||||||||||||
Sumitomo Mitsui Trust NY | 0.30 | 9-4-2020 | 10,000,000 | 10,001,477 | ||||||||||||
Sumitomo Mitsui Trust NY | 0.30 | 9-16-2020 | 15,000,000 | 15,002,583 | ||||||||||||
Sumitomo Mitsui Trust NY | 0.30 | 10-9-2020 | 5,000,000 | 5,000,971 | ||||||||||||
Svenska Handelsbanken (3 Month LIBOR +0.16%) ± | 0.43 | 10-16-2020 | 7,000,000 | 7,002,553 | ||||||||||||
Toronto Dominion Bank | 1.30 | 11-27-2020 | 5,000,000 | 5,017,837 | ||||||||||||
Toronto Dominion Bank | 1.30 | 12-30-2020 | 3,000,000 | 3,013,514 | ||||||||||||
Toronto Dominion Bank | 1.30 | 2-26-2021 | 5,000,000 | 5,030,547 | ||||||||||||
UBS AG Stamford Branch (1 Month LIBOR +1.25%) ± | 1.41 | 11-3-2020 | 10,000,000 | 10,028,444 | ||||||||||||
UBS AG Stamford Branch (1 Month LIBOR +1.25%) ± | 1.44 | 2-10-2021 | 7,000,000 | 7,037,909 | ||||||||||||
Total Certificates of Deposit (Cost $279,005,152) |
| 279,333,751 | ||||||||||||||
|
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Commercial Paper: 36.16% |
| |||||||||||||||
Asset-Backed Commercial Paper: 21.66% | ||||||||||||||||
Alpine Securitization LLC (3 Month LIBOR +0.08%) 144A± | 0.46 | 11-19-2020 | 10,000,000 | 10,000,874 | ||||||||||||
Anglesea Funding LLC 144A | 0.20 | 11-25-2020 | 15,000,000 | 15,003,116 | ||||||||||||
Anglesea Funding LLC 144A(z) | 0.22 | 8-3-2020 | 11,000,000 | 10,999,881 | ||||||||||||
Anglesea Funding LLC 144A(z) | 0.29 | 10-1-2020 | 5,000,000 | 4,998,166 | ||||||||||||
Anglesea Funding LLC 144A(z) | 0.30 | 9-1-2020 | 5,000,000 | 4,999,231 | ||||||||||||
Anglesea Funding LLC (1 Month LIBOR +0.45%) 144A± | 0.62 | 10-26-2020 | 5,000,000 | 5,001,516 | ||||||||||||
Anglesea Funding LLC (1 Month LIBOR +0.55%) 144A± | 0.73 | 10-21-2020 | 10,000,000 | 10,003,996 | ||||||||||||
Antalis SA 144A(z) | 0.28 | 10-15-2020 | 5,000,000 | 4,997,942 | ||||||||||||
Atlantic Asset Securization Corporation (z) | 1.36 | 8-4-2020 | 7,000,000 | 6,999,930 | ||||||||||||
Bedford Row Funding Corporation (3 Month LIBOR +0.09%) 144A± | 0.37 | 10-7-2020 | 7,000,000 | 7,001,368 | ||||||||||||
Bedford Row Funding Corporation (3 Month LIBOR +0.13%) 144A± | 0.49 | 11-24-2020 | 3,000,000 | 3,001,191 | ||||||||||||
Bennington Sark Cap Company 144A(z) | 0.20 | 8-13-2020 | 20,000,000 | 19,999,162 | ||||||||||||
Chesham Finance Limited 144A(z) | 0.10 | 8-3-2020 | 10,000,000 | 9,999,892 | ||||||||||||
Chesham Finance Limited 144A(z) | 0.10 | 8-3-2020 | 10,000,000 | 9,999,892 | ||||||||||||
Collateralized Commercial Paper V Company LLC (z) | 0.25 | 8-7-2020 | 8,000,000 | 7,999,798 | ||||||||||||
Collateralized Commercial Paper V Company LLC (z) | 0.25 | 8-12-2020 | 5,000,000 | 4,999,772 | ||||||||||||
Collateralized Commercial Paper V Company LLC (3 Month LIBOR +0.05%) ± | 0.29 | 10-27-2020 | 10,000,000 | 10,000,699 | ||||||||||||
Collateralized Commercial Paper V Company LLC (3 Month LIBOR +0.10%) ± | 0.41 | 9-28-2020 | 5,000,000 | 5,001,145 | ||||||||||||
Columbia Funding Company 144A(z) | 0.30 | 10-22-2020 | 5,000,000 | 4,996,830 | ||||||||||||
Concord Minutemen Capital Company 144A(z) | 0.26 | 8-10-2020 | 17,000,000 | 16,999,694 | ||||||||||||
Concord Minutemen Capital Company 144A(z) | 0.30 | 8-24-2020 | 6,000,000 | 5,999,508 | ||||||||||||
Concord Minutemen Capital Company 144A(z) | 0.32 | 9-1-2020 | 8,000,000 | 7,998,933 | ||||||||||||
CRC Funding LLC 144A(z) | 1.26 | 10-9-2020 | 4,000,000 | 3,998,390 |
The accompanying notes are an integral part of these financial statements.
Institutional Money Market Funds | 9
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Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Asset-Backed Commercial Paper (continued) | ||||||||||||||||
Crown Point Capital Company 144A(z) | 1.26 | % | 10-15-2020 | $ | 7,000,000 | $ | 6,996,734 | |||||||||
Crown Point Capital Company 144A(z) | 1.76 | 8-3-2020 | 10,000,000 | 9,999,892 | ||||||||||||
Glencove Funding LLC 144A | 0.20 | 1-14-2021 | 5,000,000 | 4,997,058 | ||||||||||||
Great Bridge Capital Company LLC 144A(z) | 0.28 | 8-6-2020 | 8,000,000 | 7,999,880 | ||||||||||||
Great Bridge Capital Company LLC 144A(z) | 0.28 | 10-28-2020 | 10,000,000 | 9,995,575 | ||||||||||||
Institutional Secured Funding LLC 144A(z) | 0.25 | 8-3-2020 | 2,000,000 | 1,999,968 | ||||||||||||
Institutional Secured Funding LLC 144A(z) | 0.25 | 8-7-2020 | 11,000,000 | 10,999,529 | ||||||||||||
Ionic Capital Management LLC (z) | 0.44 | 10-8-2020 | 4,500,000 | 4,496,904 | ||||||||||||
Kells Funding LLC 144A(z) | 0.25 | 9-11-2020 | 12,000,000 | 11,999,076 | ||||||||||||
Kells Funding LLC 144A(z) | 0.25 | 10-8-2020 | 10,000,000 | 9,996,531 | ||||||||||||
Lexington Parker Capital Company LLC 144A(z) | 0.28 | 10-23-2020 | 3,000,000 | 2,998,418 | ||||||||||||
Lexington Parker Capital Company LLC 144A(z) | 0.28 | 10-26-2020 | 20,000,000 | 19,988,980 | ||||||||||||
Lexington Parker Capital Company LLC (z) | 0.29 | 10-20-2020 | 12,000,000 | 11,993,952 | ||||||||||||
Lexington Parker Capital Company LLC 144A(z) | 0.33 | 8-10-2020 | 5,000,000 | 4,999,808 | ||||||||||||
Lexington Parker Capital Company LLC 144A(z) | 0.37 | 9-8-2020 | 5,000,000 | 4,999,014 | ||||||||||||
LMA Americas LLC (z) | 0.23 | 10-6-2020 | 6,000,000 | 5,997,599 | ||||||||||||
LMA Americas LLC 144A(z) | 0.32 | 9-10-2020 | 8,000,000 | 7,997,968 | ||||||||||||
Mackinac Funding Company LLC 144A(z) | 0.34 | 10-8-2020 | 6,000,000 | 5,996,550 | ||||||||||||
Mackinac Funding Company LLC 144A(z) | 0.36 | 10-13-2020 | 7,000,000 | 6,995,683 | ||||||||||||
Mackinac Funding Company LLC 144A(z) | 0.36 | 10-20-2020 | 4,000,000 | 3,997,300 | ||||||||||||
Manhattan Asset Funding Company LLC 144A(z) | 0.16 | 8-21-2020 | 6,000,000 | 5,999,580 | ||||||||||||
Matchpoint Finance plc 144A(z) | 0.10 | 8-3-2020 | 20,000,000 | 19,999,832 | ||||||||||||
Mountcliff Funding LLC 144A(z) | 0.22 | 8-6-2020 | 5,000,000 | 4,999,892 | ||||||||||||
Mountcliff Funding LLC 144A(z) | 0.31 | 10-19-2020 | 8,000,000 | 7,994,667 | ||||||||||||
Mountcliff Funding LLC 144A(z) | 0.34 | 9-9-2020 | 6,000,000 | 5,998,780 | ||||||||||||
Mountcliff Funding LLC 144A(z) | 0.48 | 8-3-2020 | 13,000,000 | 12,999,860 | ||||||||||||
Ridgefield Funding Company 144A(z) | 0.31 | 9-2-2020 | 15,000,000 | 14,997,608 | ||||||||||||
Thunder Bay Funding LLC 144A(z) | 1.43 | 10-5-2020 | 6,000,000 | 5,998,306 | ||||||||||||
425,435,870 | ||||||||||||||||
|
| |||||||||||||||
Financial Company Commercial Paper: 6.26% | ||||||||||||||||
Australia & New Zealand Banking Group Limited (1 Month LIBOR +0.05%) 144A± | 0.22 | 8-28-2020 | 6,000,000 | 6,000,255 | ||||||||||||
Australia & New Zealand Banking Group Limited (3 Month LIBOR +0.11%) 144A± | 0.48 | 11-27-2020 | 3,000,000 | 3,001,035 | ||||||||||||
Banco Santander Chile 144A(z) | 0.29 | 8-4-2020 | 3,000,000 | 2,999,903 | ||||||||||||
Bank of Nova Scotia (3 Month LIBOR +0.13%) 144A± | 0.58 | 11-9-2020 | 4,000,000 | 4,001,508 | ||||||||||||
Citigroup Global Markets Incorporated 144A(z) | 1.31 | 9-3-2020 | 8,000,000 | 7,999,056 | ||||||||||||
Commonwealth Bank of Australia (3 Month LIBOR +0.15%) 144A± | 0.45 | 9-24-2020 | 7,000,000 | 7,001,982 | ||||||||||||
Commonwealth Bank of Australia (3 Month LIBOR +0.12%) 144A± | 0.57 | 11-9-2020 | 6,000,000 | 6,001,939 | ||||||||||||
DBS Bank Limited 144A(z) | 0.17 | 8-6-2020 | 8,900,000 | 8,899,792 | ||||||||||||
Dexia Credit Local SA 144A(z) | 0.22 | 10-19-2020 | 12,000,000 | 11,996,347 | ||||||||||||
Dexia Credit Local SA 144A(z) | 0.22 | 12-3-2020 | 5,000,000 | 4,996,684 | ||||||||||||
Dexia Credit Local SA 144A(z) | 0.23 | 10-16-2020 | 7,000,000 | 6,997,919 | ||||||||||||
Dexia Credit Local SA 144A(z) | 0.33 | 8-18-2020 | 5,000,000 | 4,999,725 | ||||||||||||
Federation des Caisses 144A(z) | 0.17 | 9-8-2020 | 6,000,000 | 5,999,142 | ||||||||||||
Federation des Caisses 144A(z) | 0.22 | 10-13-2020 | 5,000,000 | 4,998,314 | ||||||||||||
Federation des Caisses (3 Month LIBOR +0.10%) 144A± | 0.41 | 9-9-2020 | 13,000,000 | 13,001,948 | ||||||||||||
ING US Funding LLC (3 Month LIBOR +0.19%) 144A± | 0.49 | 10-1-2020 | 7,000,000 | 7,001,577 | ||||||||||||
National Australia Bank Limited (3 Month LIBOR +0.12%) 144A± | 0.43 | 12-11-2020 | 7,000,000 | 7,002,457 | ||||||||||||
National Securities Clearing Corporation 144A(z) | 0.17 | 8-21-2020 | 5,000,000 | 4,999,708 | ||||||||||||
National Securities Clearing Corporation 144A(z) | 0.17 | 8-25-2020 | 5,000,000 | 4,999,653 | ||||||||||||
122,898,944 | ||||||||||||||||
|
|
The accompanying notes are an integral part of these financial statements.
10 | Institutional Money Market Funds
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Other Commercial Paper: 8.24% | ||||||||||||||||
BNG Bank NV 144A(z) | 0.16 | % | 8-31-2020 | $ | 11,000,000 | $ | 10,999,024 | |||||||||
BNG Bank NV (1 Month LIBOR +0.10%) 144A± | 0.26 | 11-6-2020 | 5,000,000 | 4,999,190 | ||||||||||||
Chevron Corporation 144A(z) | 1.26 | 9-15-2020 | 7,000,000 | 6,998,918 | ||||||||||||
China International Marine Containers (z) | 0.75 | 8-3-2020 | 15,000,000 | 14,999,888 | ||||||||||||
Cofco Capital Corporation (z) | 0.25 | 8-18-2020 | 3,000,000 | 2,999,781 | ||||||||||||
Erste Abwicklungsanstalt 144A(z) | 0.20 | 11-5-2020 | 3,900,000 | 3,898,119 | ||||||||||||
Erste Abwicklungsanstalt 144A(z) | 0.22 | 10-8-2020 | 10,000,000 | 9,997,221 | ||||||||||||
Erste Abwicklungsanstalt 144A(z) | 0.22 | 10-13-2020 | 10,000,000 | 9,996,855 | ||||||||||||
Exxon Mobil Corporation (z) | 0.50 | 9-23-2020 | 6,000,000 | 5,998,866 | ||||||||||||
Exxon Mobil Corporation (z) | 0.82 | 9-22-2020 | 7,000,000 | 6,998,712 | ||||||||||||
Exxon Mobil Corporation (z) | 2.12 | 8-17-2020 | 10,000,000 | 9,999,608 | ||||||||||||
GlaxoSmithKline LLC 144A(z) | 1.41 | 8-14-2020 | 5,000,000 | 4,999,224 | ||||||||||||
Koch Industries Incorporated (z) | 0.22 | 8-3-2020 | 9,000,000 | 8,999,962 | ||||||||||||
Koch Industries Incorporated (z) | 0.30 | 9-21-2020 | 10,000,000 | 9,998,194 | ||||||||||||
Nederlandse Waterschapsbank NV 144A(z) | 0.19 | 11-2-2020 | 16,000,000 | 15,992,146 | ||||||||||||
Nederlandse Waterschapsbank NV 144A(z) | 0.20 | 10-28-2020 | 4,000,000 | 3,998,121 | ||||||||||||
Nederlandse Waterschapsbank NV 144A(z) | 0.21 | 10-8-2020 | 5,000,000 | 4,998,246 | ||||||||||||
Nederlandse Waterschapsbank NV 144A(z) | 0.22 | 10-13-2020 | 10,000,000 | 9,996,197 | ||||||||||||
Nederlandse Waterschapsbank NV 144A(z) | 0.30 | 10-5-2020 | 5,000,000 | 4,998,332 | ||||||||||||
NRW Bank 144A(z) | 0.19 | 10-21-2020 | 5,000,000 | 4,998,007 | ||||||||||||
Toyota Credit Canada Incorporated (z) | 0.31 | 11-30-2020 | 5,000,000 | 4,994,679 | ||||||||||||
161,859,290 | ||||||||||||||||
|
| |||||||||||||||
Total Commercial Paper (Cost $710,069,020) |
| 710,194,104 | ||||||||||||||
|
| |||||||||||||||
Municipal Obligations: 23.65% |
| |||||||||||||||
Arizona: 0.25% | ||||||||||||||||
Variable Rate Demand Note ø: 0.25% | ||||||||||||||||
Arizona Health Facility Authority Floater Series 2015 XF 2050 (Health Revenue, Morgan Stanley Bank LIQ) 144A | 0.19 | 1-1-2037 | 5,000,000 | 5,000,000 | ||||||||||||
|
| |||||||||||||||
Arkansas: 0.51% |
| |||||||||||||||
Variable Rate Demand Note ø: 0.51% | ||||||||||||||||
Osceola AR Point Energy Association LLC Project (Water & Sewer Revenue, Goldman Sachs Bank USA LOC) | 0.18 | 4-1-2036 | 10,000,000 | 10,000,000 | ||||||||||||
|
| |||||||||||||||
California: 5.41% |
| |||||||||||||||
Other Municipal Debt: 2.52% | ||||||||||||||||
California Department of Water Resources (Water & Sewer Revenue, Bank of America NA SPA) | 0.21 | 8-14-2020 | 4,000,000 | 4,000,000 | ||||||||||||
California Department of Water Resources Series 1 (Water & Sewer Revenue, Bank of America NA SPA) | 0.21 | 8-14-2020 | 6,000,000 | 6,000,000 | ||||||||||||
Los Angeles County Metropolitan Transportation Authority Series A (Tax Revenue, Barclays Bank LOC) | 0.26 | 8-17-2020 | 2,000,000 | 2,000,038 | ||||||||||||
Orange County Municipal Water District Series 94B-T (Water & Sewer Revenue, Sumitomo Mitsui Banking Corporation LOC) | 0.25 | 8-12-2020 | 7,800,000 | 7,800,130 | ||||||||||||
San Francisco CA Public Utilities Commission of the City & County Tender Option Bond Trust Receipts/Certificates Series A (Water & Sewer Revenue, Bank of America NA LOC) | 0.25 | 9-17-2020 | 3,000,000 | 3,000,196 | ||||||||||||
San Jose CA International Airport Subordinated Series B (Airport Revenue, Bank of America NA LOC) | 0.35 | 8-12-2020 | 2,000,000 | 2,000,131 | ||||||||||||
State of California Series B-2 (GO Revenue, Royal Bank of Canada LOC) | 0.28 | 9-10-2020 | 4,660,000 | 4,660,207 | ||||||||||||
State of California Series B-2 (GO Revenue, Royal Bank of Canada LOC) | 0.33 | 8-6-2020 | 3,000,000 | 3,000,100 | ||||||||||||
State of California Series B-4 (GO Revenue, TD Bank NA LOC) | 0.25 | 8-19-2020 | 7,000,000 | 7,000,148 |
The accompanying notes are an integral part of these financial statements.
Institutional Money Market Funds | 11
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Other Municipal Debt (continued) | ||||||||||||||||
State of California Series B-5 (GO Revenue, U.S. Bank NA LOC) | 0.40 | % | 8-10-2020 | $ | 4,000,000 | $ | 4,000,222 | |||||||||
State of California Series B-7 (GO Revenue, State Street Bank & Trust Company LOC) | 0.30 | 9-3-2020 | 3,000,000 | 3,000,055 | ||||||||||||
University of California Series A (Education Revenue) | 0.22 | 8-7-2020 | 3,000,000 | 3,000,017 | ||||||||||||
49,461,244 | ||||||||||||||||
|
| |||||||||||||||
Variable Rate Demand Notes ø: 2.89% | ||||||||||||||||
California Kindergarten Series A1 (GO Revenue, Citibank NA LOC) | 0.11 | 5-1-2034 | 6,000,000 | 6,000,000 | ||||||||||||
California Kindergarten University Public Education Facilities Series 2003-A (GO Revenue, Bank of Montreal LOC) | 0.11 | 5-1-2033 | 5,000,000 | 5,000,000 | ||||||||||||
California Tender Option Bond Trust Receipts/Certificates Los Angeles Community College District Series 2016-TXG002 (GO Revenue, Bank of America NA LIQ) 144A | 0.58 | 8-1-2049 | 5,000,000 | 5,000,000 | ||||||||||||
Mizuho Tender Option Bond Trust Receipts/Floater Certificates Series 2019-MIZ9003 (Tax Revenue, Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ) 144A | 0.38 | 3-1-2036 | 1,700,000 | 1,700,000 | ||||||||||||
San Diego CA Housing Revenue Park and Market Apartments Series A (Housing Revenue, Bank of Tokyo-Mitsubishi LOC) | 0.17 | 6-1-2057 | 5,000,000 | 5,000,000 | ||||||||||||
San Francisco CA City & County Apartments Community International Revenue Series C (Airport Revenue, Sumitomo Mitsui Banking LOC) | 0.17 | 5-1-2058 | 6,000,000 | 6,000,000 | ||||||||||||
San Francisco CA City & County Certificate of Participation Series B001 (Miscellaneous Revenue, Morgan Stanley Bank LIQ) 144A | 0.55 | 11-1-2041 | 8,000,000 | 8,000,000 | ||||||||||||
San Francisco CA City & County Housing Revenue Block 8 Tower Apartments Series H1 (Housing Revenue, Bank of China LOC) | 0.27 | 11-1-2056 | 6,000,000 | 6,000,000 | ||||||||||||
San Francisco CA City & County Housing Revenue Block 8 Tower Apartments Series H2 (Housing Revenue, Bank of China LOC) | 0.25 | 11-1-2056 | 9,000,000 | 9,000,000 | ||||||||||||
University of California Revenue Series AL1 (Education Revenue) | 0.11 | 5-15-2048 | 5,000,000 | 5,000,000 | ||||||||||||
56,700,000 | ||||||||||||||||
|
| |||||||||||||||
Colorado: 1.17% |
| |||||||||||||||
Variable Rate Demand Notes ø: 1.17% | ||||||||||||||||
Colorado HFA MFHR Class II Series B (Housing Revenue, FHLB SPA) | 0.27 | 5-1-2052 | 17,000,000 | 17,000,000 | ||||||||||||
Colorado Southern Ute Indian Tribe Reservation Series 2007 (Miscellaneous Revenue) 144A | 0.17 | 1-1-2027 | 6,000,000 | 6,000,000 | ||||||||||||
23,000,000 | ||||||||||||||||
|
| |||||||||||||||
Delaware: 0.15% |
| |||||||||||||||
Variable Rate Demand Note ø: 0.15% | ||||||||||||||||
Tender Option Bond Trust Receipts Various States Floater Series 2020 TPG015 (Miscellaneous Revenue, Bank of America NA LIQ) 144A | 0.82 | 2-1-2038 | 3,000,000 | 3,000,000 | ||||||||||||
|
| |||||||||||||||
District of Columbia: 0.15% |
| |||||||||||||||
Other Municipal Debt: 0.15% | ||||||||||||||||
District of Columbia (GO Revenue, Barclays Bank LOC) (z) | 0.30 | 9-1-2020 | 3,000,000 | 2,999,096 | ||||||||||||
|
| |||||||||||||||
Florida: 0.31% |
| |||||||||||||||
Variable Rate Demand Note ø: 0.31% | ||||||||||||||||
Orlando FL Utilities Commission Series 1 (Utilities Revenue, TD Bank NA SPA) | 0.15 | 10-1-2033 | 6,000,000 | 6,000,000 | ||||||||||||
|
| |||||||||||||||
Georgia: 1.63% |
| |||||||||||||||
Other Municipal Debt: 0.61% | ||||||||||||||||
Municipal Election Authority of Georgia (GO Revenue) | 0.30 | 9-29-2020 | 12,007,000 | 12,007,393 | ||||||||||||
|
|
The accompanying notes are an integral part of these financial statements.
12 | Institutional Money Market Funds
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Variable Rate Demand Notes ø: 1.02% | ||||||||||||||||
Macon-Bibb County GA Industrial Authority Kumho Tire Georgia Incorporated Series A (Industrial Development Revenue, Korea Development Bank LOC) | 0.38 | % | 12-1-2022 | $ | 8,000,000 | $ | 8,000,000 | |||||||||
Macon-Bibb County GA Industrial Authority Kumho Tire Georgia Incorporated Series A (Industrial Development Revenue, Korea Development Bank LOC) | 0.38 | 12-1-2022 | 12,000,000 | 12,000,000 | ||||||||||||
20,000,000 | ||||||||||||||||
|
| |||||||||||||||
Idaho: 0.12% |
| |||||||||||||||
Other Municipal Debt: 0.12% | ||||||||||||||||
Idaho Housing Agency (Housing Revenue, Barclays Bank LOC) | 0.80 | 8-4-2020 | 2,300,000 | 2,300,130 | ||||||||||||
|
| |||||||||||||||
Illinois: 0.36% |
| |||||||||||||||
Variable Rate Demand Note ø: 0.36% | ||||||||||||||||
Illinois State Finance Authority Revenue Various Northshore University Health System Series B (Health Revenue, JPMorgan Chase & Company SPA) | 0.14 | 8-15-2049 | 7,000,000 | 7,000,000 | ||||||||||||
|
| |||||||||||||||
Indiana: 0.51% |
| |||||||||||||||
Other Municipal Debt: 0.51% | ||||||||||||||||
Indiana State Finance Authority Trinity Health Credit Group Series D-2 (Miscellaneous Revenue) | 0.21 | 8-18-2020 | 10,000,000 | 9,999,852 | ||||||||||||
|
| |||||||||||||||
Kentucky: 0.20% |
| |||||||||||||||
Variable Rate Demand Note ø: 0.20% | ||||||||||||||||
Daviess County KY Waste Disposal Facility Revenue Scott Paper Company Project B (Industrial Development Revenue) | 0.19 | 12-1-2023 | 4,000,000 | 4,000,000 | ||||||||||||
|
| |||||||||||||||
Maryland: 0.51% |
| |||||||||||||||
Other Municipal Debt: 0.51% | ||||||||||||||||
Montgomery County MD BAN Series 2009A (GO Revenue, JPMorgan Chase & Company LIQ) | 0.20 | 8-25-2020 | 10,000,000 | 10,000,137 | ||||||||||||
|
| |||||||||||||||
Massachusetts: 0.15% |
| |||||||||||||||
Other Municipal Debt: 0.15% | ||||||||||||||||
Massachusetts Educational Financing Authority Series A (Education Revenue, Royal Bank of Canada LOC) | 0.25 | 9-10-2020 | 3,000,000 | 3,000,067 | ||||||||||||
|
| |||||||||||||||
Michigan: 0.33% |
| |||||||||||||||
Variable Rate Demand Note ø: 0.33% | ||||||||||||||||
Michigan State Housing Development AMT Refunding Bond Series B (Housing Revenue, Industrial & Commercial Bank of China Limited SPA) | 0.29 | 6-1-2038 | 6,510,000 | 6,510,000 | ||||||||||||
|
| |||||||||||||||
Minnesota: 0.32% |
| |||||||||||||||
Variable Rate Demand Note ø: 0.32% | ||||||||||||||||
Taxable Municipal Funding Trust Various States Series 2019-019 (Utilities Revenue, Barclays Bank plc LOC) 144A | 0.56 | 11-26-2020 | 6,285,000 | 6,285,000 | ||||||||||||
|
| |||||||||||||||
Missouri: 0.20% |
| |||||||||||||||
Variable Rate Demand Note ø: 0.20% | ||||||||||||||||
Missouri HEFA Series 2018E (Health Revenue) | 0.14 | 6-1-2036 | 3,925,000 | 3,925,000 | ||||||||||||
|
|
The accompanying notes are an integral part of these financial statements.
Institutional Money Market Funds | 13
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
New Hampshire: 0.56% |
| |||||||||||||||
Variable Rate Demand Note ø: 0.56% | ||||||||||||||||
New Hampshire Business Finance Authority CJ Foods Manufacturing Beaumont Corporation Series A (Industrial Development Revenue, Kookmin Bank LOC) 144A | 0.38 | % | 10-1-2028 | $ | 11,000,000 | $ | 11,000,000 | |||||||||
|
| |||||||||||||||
New Jersey: 1.00% |
| |||||||||||||||
Variable Rate Demand Notes ø: 1.00% | ||||||||||||||||
Jets Stadium Development Series A-4B (Miscellaneous Revenue, Sumitomo Mitsui Banking Corporation LOC) 144A | 0.29 | 4-1-2047 | 10,000,000 | 10,000,000 | ||||||||||||
Tender Option Bond Trust Receipts Series 2017-XI0052 (Miscellaneous Revenue, Barclays Bank plc LOC, Barclays Bank plc LIQ) 144A | 0.19 | 6-15-2042 | 9,725,000 | 9,725,000 | ||||||||||||
19,725,000 | ||||||||||||||||
|
| |||||||||||||||
New York: 4.32% |
| |||||||||||||||
Other Municipal Debt: 1.33% | ||||||||||||||||
Long Island Power Authority Series 2015-GR1A (Utilities Revenue, TD Bank NA LOC) | 0.16 | 9-1-2020 | 3,000,000 | 3,000,000 | ||||||||||||
Long Island Power Authority Series 2015-GR5A (Utilities Revenue) | 0.21 | 8-5-2020 | 10,000,000 | 10,000,014 | ||||||||||||
New York Dormitory Authority Personal Income Tax Revenue Series B (Tax Revenue) | 5.00 | 3-31-2021 | 8,000,000 | 8,255,183 | ||||||||||||
Port Authority of NY & NJ Series C (Airport Revenue) | 0.45 | 10-15-2020 | 1,780,000 | 1,780,074 | ||||||||||||
Port Authority of NY & NJ Series C (Airport Revenue) | 0.50 | 9-24-2020 | 2,000,000 | 2,000,089 | ||||||||||||
Port Authority of NY & NJ Series C (Airport Revenue) | 0.55 | 9-3-2020 | 1,000,000 | 1,000,093 | ||||||||||||
26,035,453 | ||||||||||||||||
|
| |||||||||||||||
Variable Rate Demand Notes ø: 2.99% | ||||||||||||||||
Metropolitan Transportation Authority Revenue Series 2012G (Transportation Revenue, Barclays Bank plc LOC) | 0.14 | 11-1-2032 | 8,000,000 | 8,000,000 | ||||||||||||
New York City NY Transitional Finance Authority Revenue Variable Subordinate Bonds Future Tax Secured Fiscal 2018 Series C-6 (Tax Revenue, Sumitomo Mitsui Banking SPA) | 0.19 | 5-1-2047 | 5,000,000 | 5,000,000 | ||||||||||||
New York HFA 222 East 44th Street Series B (Housing Revenue, Bank of China LOC) | 0.22 | 5-1-2050 | 3,000,000 | 3,000,000 | ||||||||||||
New York NY Adjusted Fiscal 2017 Subordinate Bonds Series A-4 (GO Revenue, Citibank NA LOC) | 0.14 | 8-1-2044 | 12,000,000 | 12,000,000 | ||||||||||||
New York NY Municipal Water Finance Authority Fiscal 2015 Series BB-2 (Water & Sewer Revenue, Mizuho Bank Limited SPA) | 0.14 | 6-15-2049 | 4,000,000 | 4,000,000 | ||||||||||||
New York NY Transitional Finance Authority Future Tax Secured Tax-Exempt Bond Fiscal 2015 Subordinate Bonds Series A-3 (Tax Revenue, Mizuho Bank Limited SPA) | 0.16 | 8-1-2043 | 6,000,000 | 6,000,000 | ||||||||||||
New York State Housing Finance Agency (Housing Revenue, FHLMC LIQ) | 0.24 | 11-1-2036 | 4,500,000 | 4,500,000 | ||||||||||||
New York State Mortgage Agency Homeowner Mortgage Revenue Taxable Variable Series 216 (Housing Revenue, Barclays Bank plc SPA) | 0.17 | 10-1-2048 | 9,200,000 | 9,200,000 | ||||||||||||
Taxable Municipal Funding Trust Various States Floaters Series 2020-008 (GO Revenue, Barclays Bank plc LOC) 144A | 0.56 | 5-1-2024 | 7,000,000 | 7,000,000 | ||||||||||||
58,700,000 | ||||||||||||||||
|
| |||||||||||||||
North Carolina: 0.31% |
| |||||||||||||||
Variable Rate Demand Note ø: 0.31% | ||||||||||||||||
North Carolina Medical Care Commission Novant Health Obligated Group Series A (Health Revenue, JPMorgan Chase & Company SPA) | 0.18 | 11-1-2034 | 6,000,000 | 6,000,000 | ||||||||||||
|
|
The accompanying notes are an integral part of these financial statements.
14 | Institutional Money Market Funds
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Ohio: 0.20% |
| |||||||||||||||
Variable Rate Demand Note ø: 0.20% | ||||||||||||||||
Tender Option Bond Trust Receipts Various States Floaters Series 2020-TPG017 (Miscellaneous Revenue, Bank of America NA LIQ) 144A | 0.54 | % | 12-1-2049 | $ | 3,875,000 | $ | 3,875,000 | |||||||||
|
| |||||||||||||||
Oregon: 0.10% |
| |||||||||||||||
Variable Rate Demand Note ø: 0.10% | ||||||||||||||||
Portland OR Portland International Airport (Airport Revenue, Bank of China LOC) | 0.25 | 7-1-2026 | 2,000,000 | 2,000,000 | ||||||||||||
|
| |||||||||||||||
Other: 1.78% |
| |||||||||||||||
Variable Rate Demand Notes ø: 1.78% | ||||||||||||||||
JPMorgan Chase Puttable Tax-Exempt Recaipts/Derivative Inverse Tax-Exempt Receipts Trust Various Series5039 (JPMorgan Chase & Company LIQ, JPMorgan Chase & Company LOC) | 0.42 | 11-16-2022 | 15,000,000 | 15,000,000 | ||||||||||||
Taxable Municipal Funding Trust Various States Floaters Series 2019-014 (GO Revenue, Barclays Bank plc LOC) 144A | 0.56 | 9-1-2027 | 20,000,000 | 20,000,000 | ||||||||||||
35,000,000 | ||||||||||||||||
|
| |||||||||||||||
Texas: 2.85% |
| |||||||||||||||
Other Municipal Debt: 2.04% | ||||||||||||||||
Dallas Fort Worth TX International Airport Series I (Airport Revenue) | 0.65 | 8-28-2020 | 2,000,000 | 1,999,982 | ||||||||||||
Dallas Fort Worth TX International Airport Series I (Airport Revenue) | 0.65 | 9-8-2020 | 2,000,000 | 2,000,252 | ||||||||||||
Harris County TX Flood Control District Series H (Miscellaneous Revenue, JPMorgan Chase & Company LOC) | 0.25 | 9-17-2020 | 10,000,000 | 9,999,868 | ||||||||||||
Texas PFA (Miscellaneous Revenue) | 0.45 | 8-4-2020 | 3,000,000 | 3,000,118 | ||||||||||||
Texas Tax & Revenue Anticipation Notes (GO Revenue) | 4.00 | 8-27-2020 | 9,000,000 | 9,023,083 | ||||||||||||
University of Texas Permanent University Fund (Education Revenue) | 0.14 | 9-3-2020 | 11,000,000 | 11,000,000 | ||||||||||||
University of Texas Permanent University Fund Series A (Education Revenue) | 0.17 | 8-12-2020 | 3,000,000 | 3,000,030 | ||||||||||||
40,023,333 | ||||||||||||||||
|
| |||||||||||||||
Variable Rate Demand Notes ø: 0.81% | ||||||||||||||||
Gulf Coast TX IDA ExxonMobil Project Series 2012 (Industrial Development Revenue) | 0.14 | 11-1-2041 | 12,000,000 | 12,000,000 | ||||||||||||
University of Texas Permanent University Funding System Series A (Education Revenue) | 0.13 | 7-1-2037 | 4,000,000 | 4,000,000 | ||||||||||||
16,000,000 | ||||||||||||||||
|
| |||||||||||||||
Virginia: 0.25% |
| |||||||||||||||
Other Municipal Debt: 0.25% | ||||||||||||||||
Staunton City VA IDA Series 8-A1 (Industrial Development Revenue, Bank of America NA LOC) | 0.21 | 8-6-2020 | 5,000,000 | 4,999,984 | ||||||||||||
|
| |||||||||||||||
Total Municipal Obligations (Cost $464,520,211) |
| 464,546,689 | ||||||||||||||
|
| |||||||||||||||
Closed End Municipal Bond Fund Obligations: 0.67% |
| |||||||||||||||
Invesco Dynamic Credit Opportunities Fund Variable Rate Demand Preferred Shares Series W-7 (60 shares) 0.36% 144A§øø | 6,000,000 | 6,000,000 | ||||||||||||||
Nuveen Short Duration Credit Opportunities Fund Taxable Fund Preferred Shares Series A (7,000 shares) 0.36% 144Aø | 7,000,000 | 7,000,000 | ||||||||||||||
Total Closed End Municipal Bond Fund Obligations (Cost $13,000,000) |
| 13,000,000 | ||||||||||||||
|
|
The accompanying notes are an integral part of these financial statements.
Institutional Money Market Funds | 15
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Other Instruments: 0.78% | ||||||||||||||||
Altoona Blair County Development Corporation 144A§øø | 0.22 | % | 4-1-2035 | $ | 12,000,000 | $ | 12,000,000 | |||||||||
Morris Family Insurance Trust §øø | 0.22 | 10-1-2059 | 3,350,000 | 3,350,000 | ||||||||||||
Total Other Instruments (Cost $15,350,000) |
| 15,350,000 | ||||||||||||||
|
| |||||||||||||||
Other Notes: 0.92% |
| |||||||||||||||
Corporate Bonds and Notes: 0.92% | ||||||||||||||||
American Association of Retired Persons § | 0.17 | 5-1-2031 | 5,000,000 | 5,000,000 | ||||||||||||
Cellmark Incorporated Secured § | 0.22 | 6-1-2038 | 7,000,000 | 7,000,000 | ||||||||||||
SSAB AB Series A §øø | 0.22 | 6-1-2035 | 6,000,000 | 5,000,000 | ||||||||||||
Total Other Notes (Cost $18,000,000) |
| 18,000,000 | ||||||||||||||
|
| |||||||||||||||
Repurchase Agreements: ^^8.27% | ||||||||||||||||
Credit Agricole, dated 7-31-2020, maturity value $42,375,353 (1) | 0.10 | 8-3-2020 | 42,375,000 | 42,375,000 | ||||||||||||
Standard Charted Bank, dated 7-31-2020, maturity value $120,001,000 (2) | 0.10 | 8-3-2020 | 120,000,000 | 120,000,000 | ||||||||||||
Total Repurchase Agreements (Cost $162,375,000) |
| 162,375,000 | ||||||||||||||
|
| |||||||||||||||
Treasury Debt: 14.92% | ||||||||||||||||
U.S. Cash Management Bill (z) | 0.15 | 10-27-2020 | 30,000,000 | 29,993,259 | ||||||||||||
U.S. Cash Management Bill (z) | 0.15 | 10-20-2020 | 28,000,000 | 27,994,540 | ||||||||||||
U.S. Cash Management Bill (z) | 0.16 | 12-15-2020 | 15,000,000 | 14,994,417 | ||||||||||||
U.S. Cash Management Bill (z) | 0.17 | 11-3-2020 | 24,000,000 | 23,994,174 | ||||||||||||
U.S. Cash Management Bill (z) | 0.18 | 11-10-2020 | 22,000,000 | 21,995,462 | ||||||||||||
U.S. Cash Management Bill (z) | 0.25 | 9-15-2020 | 26,000,000 | 25,996,972 | ||||||||||||
U.S. Treasury Bill (z) | 0.14 | 9-17-2020 | 20,000,000 | 19,997,626 | ||||||||||||
U.S. Treasury Bill (z) | 0.15 | 11-5-2020 | 20,000,000 | 19,995,038 | ||||||||||||
U.S. Treasury Bill (z) | 0.16 | 9-24-2020 | 20,000,000 | 19,997,111 | ||||||||||||
U.S. Treasury Bill (z) | 0.16 | 11-19-2020 | 20,000,000 | 19,993,850 | ||||||||||||
U.S. Treasury Bill (z) | 0.16 | 8-11-2020 | 20,000,000 | 19,999,623 | ||||||||||||
U.S. Treasury Bill (z) | 0.16 | 11-27-2020 | 16,000,000 | 15,994,587 | ||||||||||||
U.S. Treasury Bill (z) | 0.17 | 12-3-2020 | 14,000,000 | 13,994,900 | ||||||||||||
U.S. Treasury Bill (z) | 0.19 | 12-10-2020 | 18,000,000 | 17,993,228 | ||||||||||||
Total Treasury Debt (Cost $292,888,068) |
| 292,934,787 | ||||||||||||||
|
|
Total investments in securities (Cost $1,955,207,451) | 99.59 | % | 1,955,734,331 | |||||
Other assets and liabilities, net | 0.41 | 8,128,139 | ||||||
|
|
|
| |||||
Total net assets | 100.00 | % | $ | 1,963,862,470 | ||||
|
|
|
|
144A | The security may be resold in transactions exempt from registration, normally to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933. |
± | Variable rate investment. The rate shown is the rate in effect at period end. |
(z) | Zero coupon security. The rate represents the current yield to maturity. |
ø | Variable rate demand notes are subject to a demand feature which reduces the effective maturity. The maturity date shown represents the final maturity date of the security. The interest rate is determined and reset by the issuer daily, weekly, or monthly depending upon the terms of the security. The rate shown is the rate in effect at period end. |
§ | The security is subject to a demand feature which reduces the effective maturity. |
øø | The interest rate is determined and reset by the issuer periodically depending upon the terms of the security. The rate shown is the rate in effect at period end. |
^^ | Collateralized by: |
(1) | U.S. government securities, 3.00% to 4.50%, 12-20-2040 to 1-20-2050, fair value including accrued interest is $43,646,250. |
(2) | U.S. government securities, 0.00% to 6.25%, 8-13-2020 to 6-20-2050, fair value including accrued interest is $122,499,103. |
The accompanying notes are an integral part of these financial statements.
16 | Institutional Money Market Funds
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Abbreviations:
AMT | Alternative minimum tax |
BAN | Bond anticipation notes |
FHLB | Federal Home Loan Bank |
FHLMC | Federal Home Loan Mortgage Corporation |
HEFA | Health & Educational Facilities Authority |
HFA | Housing Finance Authority |
IDA | Industrial Development Authority |
LIBOR | London Interbank Offered Rate |
LIQ | Liquidity agreement |
LOC | Letter of credit |
MFHR | Multifamily housing revenue |
PFA | Public Finance Authority |
SPA | Standby purchase agreement |
The accompanying notes are an integral part of these financial statements.
Institutional Money Market Funds | 17
Table of Contents
Statement of assets and liabilities—July 31, 2020 (unaudited)
Assets | ||||
Investments in unaffiliated securities, at value (cost $1,955,207,451) | $ | 1,955,734,331 | ||
Cash | 10,752 | |||
Receivable for investments sold | 7,505,794 | |||
Receivable for interest | 1,163,377 | |||
Prepaid expenses and other assets | 42,827 | |||
|
| |||
Total assets | 1,964,457,081 | |||
|
| |||
Liabilities | ||||
Payable for Fund shares redeemed | 116,450 | |||
Management fee payable | 165,144 | |||
Dividends payable | 15,669 | |||
Administration fees payable | 123,204 | |||
Shareholder report expenses payable | 74,352 | |||
Custody and accounting fees payable | 41,953 | |||
Shareholder servicing fees payable | 34,438 | |||
Trustees’ fees and expenses payable | 2,543 | |||
Accrued expenses and other liabilities | 20,858 | |||
|
| |||
Total liabilities | 594,611 | |||
|
| |||
Total net assets | $ | 1,963,862,470 | ||
|
| |||
Net assets consist of | ||||
Paid-in capital | $ | 1,963,752,340 | ||
Total distributable earnings | 110,130 | |||
|
| |||
Total net assets | $ | 1,963,862,470 | ||
|
| |||
Computation of net asset value price per share | ||||
Net assets – Administrator Class | $ | 115,281,044 | ||
Shares outstanding – Administrator Class1 | 115,188,853 | |||
Net asset value per share – Administrator Class | $1.0008 | |||
Net assets – Institutional Class | $ | 886,070,252 | ||
Shares outstanding – Institutional Class1 | 885,367,000 | |||
Net asset value per share – Institutional Class | $1.0008 | |||
Net assets – Select Class | $ | 863,036,534 | ||
Shares outstanding – Select Class1 | 862,276,211 | |||
Net asset value per share – Select Class | $1.0009 | |||
Net assets – Service Class | $ | 99,474,640 | ||
Shares outstanding – Service Class1 | 99,382,177 | |||
Net asset value per share – Service Class | $1.0009 |
1 | The Fund has an unlimited number of authorized shares. |
The accompanying notes are an integral part of these financial statements.
18 | Institutional Money Market Funds
Table of Contents
Statement of operations—six months ended July 31, 2020 (unaudited)
Investment income | ||||
Interest | $ | 8,380,807 | ||
|
| |||
Expenses | ||||
Management fee | 1,334,714 | |||
Administration fees | ||||
Administrator Class | 56,239 | |||
Institutional Class | 342,238 | |||
Select Class | 141,913 | |||
Service Class | 61,189 | |||
Shareholder servicing fees | ||||
Administrator Class | 56,235 | |||
Service Class | 127,470 | |||
Custody and accounting fees | 59,230 | |||
Professional fees | 20,145 | |||
Registration fees | 26,285 | |||
Shareholder report expenses | 4,658 | |||
Trustees’ fees and expenses | 9,161 | |||
Other fees and expenses | 8,340 | |||
|
| |||
Total expenses | 2,247,817 | |||
Less: Fee waivers and/or expense reimbursements | ||||
Fund-level | (368,614 | ) | ||
Administrator Class | (2,166 | ) | ||
Select Class | (123,949 | ) | ||
Service Class | (20,221 | ) | ||
|
| |||
Net expenses | 1,732,867 | |||
|
| |||
Net investment income | 6,647,940 | |||
|
| |||
Realized and unrealized gains (losses) on investments | ||||
Net realized losses on investments | (456,759 | ) | ||
Net change in unrealized gains (losses) on investments | 250,025 | |||
|
| |||
Net realized and unrealized gains (losses) on investments | (206,734 | ) | ||
|
| |||
Net increase in net assets resulting from operations | $ | 6,441,206 | ||
|
|
The accompanying notes are an integral part of these financial statements.
Institutional Money Market Funds | 19
Table of Contents
Statement of changes in net assets
Six months ended July 31, 2020 (unaudited) | Year ended January 31, 2020 | |||||||||||||||
Operations | ||||||||||||||||
Net investment income | $ | 6,647,940 | $ | 36,632,698 | ||||||||||||
Net realized gains (losses) on investments | (456,759 | ) | 34,071 | |||||||||||||
Net change in unrealized gains (losses) on investments | 250,025 | 127,430 | ||||||||||||||
|
| |||||||||||||||
Net increase in net assets resulting from operations | 6,441,206 | 36,794,199 | ||||||||||||||
|
| |||||||||||||||
Distributions to shareholders from net investment income and net realized gains | ||||||||||||||||
Administrator Class | (359,753 | ) | (2,407,953 | ) | ||||||||||||
Institutional Class | (3,056,560 | ) | (14,579,571 | ) | ||||||||||||
Select Class | (2,964,195 | ) | (17,436,431 | ) | ||||||||||||
Service Class | (267,432 | ) | (2,226,786 | ) | ||||||||||||
|
| |||||||||||||||
Total distributions to shareholders | (6,647,940 | ) | (36,650,741 | ) | ||||||||||||
|
| |||||||||||||||
Capital share transactions | Shares | Shares | ||||||||||||||
Proceeds from shares sold | ||||||||||||||||
Administrator Class | 73,145,709 | 73,187,691 | 166,638,886 | 166,722,945 | ||||||||||||
Institutional Class | 1,188,567,711 | 1,189,404,026 | 1,831,980,290 | 1,832,914,828 | ||||||||||||
Select Class | 1,278,136,580 | 1,279,268,832 | 1,684,650,000 | 1,685,556,431 | ||||||||||||
Service Class | 297,652,189 | 297,880,438 | 602,544,349 | 602,908,075 | ||||||||||||
|
| |||||||||||||||
2,839,740,987 | 4,288,102,279 | |||||||||||||||
|
| |||||||||||||||
Reinvestment of distributions | ||||||||||||||||
Administrator Class | 342,044 | 342,233 | 2,313,623 | 2,314,813 | ||||||||||||
Institutional Class | 3,073,767 | 3,075,567 | 14,345,607 | 14,353,032 | ||||||||||||
Select Class | 2,768,022 | 2,769,922 | 17,299,112 | 17,308,618 | ||||||||||||
Service Class | 269,432 | 269,607 | 2,160,753 | 2,162,060 | ||||||||||||
|
| |||||||||||||||
6,457,329 | 36,138,523 | |||||||||||||||
|
| |||||||||||||||
Payment for shares redeemed | ||||||||||||||||
Administrator Class | (76,458,479 | ) | (76,494,504 | ) | (186,852,404 | ) | (186,947,329 | ) | ||||||||
Institutional Class | (1,160,527,837 | ) | (1,161,341,749 | ) | (1,509,798,838 | ) | (1,510,574,286 | ) | ||||||||
Select Class | (1,423,862,394 | ) | (1,424,377,743 | ) | (1,431,658,767 | ) | (1,432,436,357 | ) | ||||||||
Service Class | (300,744,893 | ) | (300,975,035 | ) | (652,883,191 | ) | (653,275,838 | ) | ||||||||
|
| |||||||||||||||
(2,963,189,031 | ) | (3,783,233,810 | ) | |||||||||||||
|
| |||||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions | (116,990,715 | ) | 541,006,992 | |||||||||||||
|
| |||||||||||||||
Total increase (decrease) in net assets | (117,197,449 | ) | 541,150,450 | |||||||||||||
|
| |||||||||||||||
Net assets | ||||||||||||||||
Beginning of period | 2,081,059,919 | 1,539,909,469 | ||||||||||||||
|
| |||||||||||||||
End of period | $ | 1,963,862,470 | $ | 2,081,059,919 | ||||||||||||
|
|
The accompanying notes are an integral part of these financial statements.
20 | Institutional Money Market Funds
Table of Contents
(For a share outstanding throughout each period)
Six months ended July 31, 2020 (unaudited) | Year ended January 31 | |||||||||||||||||||||||
ADMINISTRATOR CLASS | 2020 | 2019 | 2018 | 2017 | 20161 | |||||||||||||||||||
Net asset value, beginning of period | $1.0006 | $1.0005 | $1.0005 | $1.0004 | $1.0000 | $1.00 | ||||||||||||||||||
Net investment income | 0.0032 | 0.0202 | 0.0189 | 0.0096 | 0.0029 | 0.00 | 2 | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.0002 | 0.0001 | 0.0000 | 3 | 0.0001 | 0.0004 | 0.00 | 2 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 0.0034 | 0.0203 | 0.0189 | 0.0097 | 0.0033 | 0.00 | 2 | |||||||||||||||||
Distributions to shareholders from | ||||||||||||||||||||||||
Net investment income | (0.0032 | ) | (0.0202 | ) | (0.0189 | ) | (0.0096 | ) | (0.0029 | ) | (0.00 | )2 | ||||||||||||
Net realized gains | 0.0000 | (0.0000 | )3 | 0.0000 | 0.0000 | 0.0000 | 0.00 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions to shareholders | (0.0032 | ) | (0.0202 | ) | (0.0189 | ) | (0.0096 | ) | (0.0029 | ) | (0.00 | )2 | ||||||||||||
Net asset value, end of period | $1.0008 | $1.0006 | $1.0005 | $1.0005 | $1.0004 | $1.00 | ||||||||||||||||||
Total return4 | 0.35 | % | 2.04 | % | 1.91 | % | 0.97 | % | 0.33 | % | 0.03 | % | ||||||||||||
Ratios to average net assets (annualized) | ||||||||||||||||||||||||
Gross expenses | 0.36 | % | 0.36 | % | 0.37 | % | 0.38 | % | 0.36 | % | 0.35 | % | ||||||||||||
Net expenses | 0.33 | % | 0.33 | % | 0.33 | % | 0.33 | % | 0.33 | % | 0.26 | % | ||||||||||||
Net investment income | 0.64 | % | 2.01 | % | 1.90 | % | 0.96 | % | 0.26 | % | 0.03 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (000s omitted) | $115,281 | $118,226 | $136,126 | $109,551 | $118,548 | $297,396 |
1 | Amounts reflect the Fund transacting shares at a fixed NAV rounded to two decimal places. Beginning October 11, 2016, the Fund began selling and redeeming shares of the Fund at a floating NAV rounded to the fourth decimal place. |
2 | Amount is less than $0.005. |
3 | Amount is less than $0.00005. |
4 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Institutional Money Market Funds | 21
Table of Contents
Financial highlights
(For a share outstanding throughout each period)
Six months ended July 31, 2020 (unaudited) | Year ended January 31 | |||||||||||||||||||||||
INSTITUTIONAL CLASS | 2020 | 2019 | 2018 | 2017 | 20161 | |||||||||||||||||||
Net asset value, beginning of period | $1.0006 | $1.0005 | $1.0005 | $1.0004 | $1.0000 | $1.00 | ||||||||||||||||||
Net investment income | 0.0038 | 0.0215 | 0.0202 | 0.0109 | 0.0043 | 0.00 | 2 | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.0002 | 0.0001 | 0.0000 | 3 | 0.0001 | 0.0003 | 0.00 | 2 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 0.0040 | 0.0216 | 0.0202 | 0.0110 | 0.0046 | 0.00 | 2 | |||||||||||||||||
Distributions to shareholders from | ||||||||||||||||||||||||
Net investment income | (0.0038 | ) | (0.0215 | ) | (0.0202 | ) | (0.0109 | ) | (0.0042 | ) | (0.00 | )2 | ||||||||||||
Net realized gains | 0.0000 | (0.0000 | )3 | 0.0000 | 0.0000 | 0.0000 | 0.00 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions to shareholders | (0.0038 | ) | (0.0215 | ) | (0.0202 | ) | (0.0109 | ) | (0.0042 | ) | (0.00 | )2 | ||||||||||||
Net asset value, end of period | $1.0008 | $1.0006 | $1.0005 | $1.0005 | $1.0004 | $1.00 | ||||||||||||||||||
Total return4 | 0.41 | % | 2.17 | % | 2.04 | % | 1.10 | % | 0.46 | % | 0.09 | % | ||||||||||||
Ratios to average net assets (annualized) | ||||||||||||||||||||||||
Gross expenses | 0.24 | % | 0.24 | % | 0.25 | % | 0.26 | % | 0.23 | % | 0.23 | % | ||||||||||||
Net expenses | 0.20 | % | 0.20 | % | 0.20 | % | 0.20 | % | 0.20 | % | 0.20 | % | ||||||||||||
Net investment income | 0.71 | % | 2.09 | % | 2.01 | % | 1.08 | % | 0.37 | % | 0.10 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (000s omitted) | $886,070 | $854,736 | $517,981 | $639,823 | $756,218 | $5,027,125 |
1 | Amounts reflect the Fund transacting shares at a fixed NAV rounded to two decimal places. Beginning October 11, 2016, the Fund began selling and redeeming shares of the Fund at a floating NAV rounded to the fourth decimal place. |
2 | Amount is less than $0.005. |
3 | Amount is less than $0.00005. |
4 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
22 | Institutional Money Market Funds
Table of Contents
Financial highlights
(For a share outstanding throughout each period)
Six months ended July 31, 2020 (unaudited) | Year ended January 31 | |||||||||||||||||||||||
SELECT CLASS | 2020 | 2019 | 2018 | 2017 | 20161 | |||||||||||||||||||
Net asset value, beginning of period | $1.0006 | $1.0005 | $1.0005 | $1.0000 | $1.0000 | $1.00 | ||||||||||||||||||
Net investment income | 0.0042 | 0.0222 | 0.0209 | 0.0116 | 0.0049 | 0.00 | 2 | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.0003 | 0.0001 | 0.0000 | 3 | 0.0001 | 0.0004 | 0.00 | 2 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 0.0045 | 0.0223 | 0.0209 | 0.0117 | 0.0053 | 0.00 | 2 | |||||||||||||||||
Distributions to shareholders from | ||||||||||||||||||||||||
Net investment income | (0.0042 | ) | (0.0222 | ) | (0.0209 | ) | (0.0116 | ) | (0.0049 | ) | (0.00 | )2 | ||||||||||||
Net realized gains | 0.0000 | (0.0000 | )3 | 0.0000 | 0.0000 | 0.0000 | 0.00 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions to shareholders | (0.0042 | ) | (0.0222 | ) | (0.0209 | ) | (0.0116 | ) | (0.0049 | ) | (0.00 | )2 | ||||||||||||
Net asset value, end of period | $1.0009 | $1.0006 | $1.0005 | $1.0005 | $1.0004 | $1.00 | ||||||||||||||||||
Total return4 | 0.46 | % | 2.24 | % | 2.11 | % | 1.17 | % | 0.53 | % | 0.16 | % | ||||||||||||
Ratios to average net assets (annualized) | ||||||||||||||||||||||||
Gross expenses | 0.20 | % | 0.20 | % | 0.21 | % | 0.22 | % | 0.19 | % | 0.19 | % | ||||||||||||
Net expenses | 0.13 | % | 0.13 | % | 0.13 | % | 0.13 | % | 0.13 | % | 0.13 | % | ||||||||||||
Net investment income | 0.84 | % | 2.18 | % | 2.08 | % | 1.14 | % | 0.44 | % | 0.16 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (000s omitted) | $863,037 | $1,005,823 | $735,332 | $717,508 | $873,167 | $5,595,704 |
1 | Amounts reflect the Fund transacting shares at a fixed NAV rounded to two decimal places. Beginning October 11, 2016, the Fund began selling and redeeming shares of the Fund at a floating NAV rounded to the fourth decimal place. |
2 | Amount is less than $0.005. |
3 | Amount is less than $0.00005. |
4 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
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Financial highlights
(For a share outstanding throughout each period)
Six months ended July 31, 2020 (unaudited) | Year ended January 31 | |||||||||||||||||||||||
SERVICE CLASS | 2020 | 2019 | 2018 | 2017 | 20161 | |||||||||||||||||||
Net asset value, beginning of period | $1.0007 | $1.0006 | $1.0006 | $1.0005 | $1.0000 | $1.00 | ||||||||||||||||||
Net investment income | 0.0025 | 0.0184 | 0.0171 | 0.0079 | 0.0011 | 0.00 | 2 | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.0002 | 0.0002 | 0.0001 | 0.0001 | 0.0006 | 0.00 | 2 | |||||||||||||||||
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Total from investment operations | 0.0027 | 0.0186 | 0.0172 | 0.0080 | 0.0017 | 0.00 | 2 | |||||||||||||||||
Distributions to shareholders from | ||||||||||||||||||||||||
Net investment income | (0.0025 | ) | (0.0185 | ) | (0.0172 | ) | (0.0079 | ) | (0.0012 | ) | (0.00 | )2 | ||||||||||||
Net realized gains | 0.0000 | (0.0000 | )3 | 0.0000 | 0.0000 | 0.0000 | 0.00 | |||||||||||||||||
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Total distributions to shareholders | (0.0025 | ) | (0.0185 | ) | (0.0172 | ) | (0.0079 | ) | (0.0012 | ) | (0.00 | )2 | ||||||||||||
Net asset value, end of period | $1.0009 | $1.0007 | $1.0006 | $1.0006 | $1.0005 | $1.00 | ||||||||||||||||||
Total return4 | 0.28 | % | 1.87 | % | 1.73 | % | 0.80 | % | 0.17 | % | 0.01 | % | ||||||||||||
Ratios to average net assets (annualized) | ||||||||||||||||||||||||
Gross expenses | 0.53 | % | 0.54 | % | 0.54 | % | 0.55 | % | 0.52 | % | 0.52 | % | ||||||||||||
Net expenses | 0.46 | % | 0.50 | % | 0.50 | % | 0.50 | % | 0.50 | % | 0.28 | % | ||||||||||||
Net investment income | 0.52 | % | 1.88 | % | 1.71 | % | 0.78 | % | 0.08 | % | 0.01 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (000s omitted) | $99,475 | $102,275 | $150,471 | $187,635 | $189,632 | $1,237,014 |
1 | Amounts reflect the Fund transacting shares at a fixed NAV rounded to two decimal places. Beginning October 11, 2016, the Fund began selling and redeeming shares of the Fund at a floating NAV rounded to the fourth decimal place. |
2 | Amount is less than $0.005. |
3 | Amount is less than $0.00005. |
4 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
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Notes to financial statements (unaudited)
1. ORGANIZATION
Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo Cash Investment Money Market Fund (the “Fund”) which is a diversified series of the Trust.
The Fund operates as an institutional non-government money market fund. As an institutional non-government money market fund, shareholders will transact at a floating net asset value (NAV) rounded to four decimal places in accordance with the valuation policies below.
Consistent with Rule 2a-7, the Board of Trustees of the Fund is permitted to impose a liquidity fee on redemptions from the Fund or a redemption gate (i.e., a suspension of the right to redeem) in the event that the Fund’s liquidity falls below required minimums because of market conditions or other factors. If the Fund’s weekly liquid assets (as defined in Rule 2a-7(34)) fall below 30% of the Fund’s total assets, the Board of Trustees is permitted, but not required, to: (i) impose a liquidity fee of no more than 2% of the amount redeemed; and/or (ii) impose a redemption gate. If the Fund’s weekly liquid assets fall below 10% of the Fund’s total assets, the Fund must impose, generally as of the beginning of the next business day, a liquidity fee of 1% of the amount redeemed unless the Board of Trustees determines that such a fee is not in the best interest of the Fund or determines that a lower or higher fee (subject to the 2% limit) is in the best interest of the Fund. Liquidity fees reduce the amount a shareholder receives upon redemption of its shares. The Fund retains any liquidity fees for the benefit of remaining shareholders. The Board of Trustees did not impose any liquidity fees and/or redemption gates during the six months ended July 31, 2020.
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Securities valuation
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.
Investments which are not valued using the method discussed above are valued at their fair value, as determined in good faith by the Board of Trustees. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Wells Fargo Asset Management Pricing Committee at Wells Fargo Funds Management, LLC (“Funds Management”). The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Wells Fargo Asset Management Pricing Committee which may include items for ratification.
Repurchase agreements
The Fund may invest in repurchase agreements and may participate in pooled repurchase agreement transactions with other funds advised by Funds Management. Repurchase agreements are agreements where the seller of a security to the Fund agrees to repurchase that security from the Fund at a mutually agreed upon time and price. The repurchase agreements must be fully collateralized based on values that are marked-to-market daily. The collateral may be held by an agent bank under a tri-party agreement. It is the custodian’s responsibility to value collateral daily and to take action to obtain additional collateral as necessary to maintain a market value equal to or greater than the resale price. The repurchase agreements are collateralized by securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities. There could be potential loss to the Fund in the event that the Fund is delayed or prevented from exercising its rights to dispose of the collateral, including the risk of a possible decline in the value of the underlying obligations during the period in which the Fund seeks to assert its rights.
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.
Institutional Money Market Funds | 25
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Notes to financial statements (unaudited)
Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has been determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.
Distributions to shareholders
Distributions to shareholders from net investment income are declared daily and paid monthly. Distributions from net realized gains, if any, are recorded on the ex-dividend date and paid at least annually. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior to the Fund’s fiscal year end may be categorized as a tax return of capital at year end.
Federal and other taxes
The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.
The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.
As of July 31, 2020, the aggregate cost of all investments for federal income tax purposes was $1,955,207,451 and the unrealized gains (losses) consisted of:
Gross unrealized gains | $ | 533,410 | ||
Gross unrealized losses | (6,530 | ) | ||
Net unrealized gains | $ | 526,880 |
Class allocations
The separate classes of shares offered by the Fund differ principally in shareholder servicing and administration fees. Class specific expenses are charged directly to that share class. Investment income, common fund-level expenses, and realized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.
3. FAIR VALUATION MEASUREMENTS
Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:
∎ | Level 1 – quoted prices in active markets for identical securities |
∎ | Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
∎ | Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
The inputs or methodologies used for valuing investments in securities are not necessarily an indication of the risk associated with investing in those securities.
26 | Institutional Money Market Funds
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Notes to financial statements (unaudited)
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of July 31, 2020:
Quoted prices (Level 1) | Other significant observable inputs (Level 2) | Significant (Level 3) | Total | |||||||||||||
Assets | ||||||||||||||||
Investments in: | ||||||||||||||||
Certificates of deposit | $ | 0 | $ | 279,333,751 | $ | 0 | $ | 279,333,751 | ||||||||
Commercial paper | 0 | 710,194,104 | 0 | 710,194,104 | ||||||||||||
Municipal obligations | 0 | 464,546,689 | 0 | 464,546,689 | ||||||||||||
Closed end municipal bond fund obligations | 0 | 13,000,000 | 0 | 13,000,000 | ||||||||||||
Other instruments | 0 | 15,350,000 | 0 | 15,350,000 | ||||||||||||
Other notes | 0 | 18,000,000 | 0 | 18,000,000 | ||||||||||||
Repurchase agreements | 0 | 162,375,000 | 0 | 162,375,000 | ||||||||||||
Treasury debt | 0 | 292,934,787 | 0 | 292,934,787 | ||||||||||||
Total assets | $ | 0 | $ | 1,955,734,331 | $ | 0 | $ | 1,955,734,331 |
Additional sector, industry or geographic detail is included in the Portfolio of Investments.
For the six months ended July 31, 2020, the Fund did not have any transfers into/out of Level 3.
4. TRANSACTIONS WITH AFFILIATES
Management fee
Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadvisers and providing fund-level administrative services in connection with the Fund’s operations. As compensation for its services under the investment management agreement, Funds Management is entitled to receive a management fee at the following annual rate based on the Fund’s average daily net assets:
Average daily net assets | Management fee | |||
First $5 billion | 0.15 | % | ||
Next $5 billion | 0.14 | |||
Over $10 billion | 0.13 |
For the six months ended July 31, 2020, the management fee was equivalent to an annual rate of 0.15% of the Fund’s average daily net assets.
Funds Management has retained the services of certain subadvisers to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. Wells Capital Management Incorporated, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is a subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.05% and declining to 0.01% as the average daily net assets of the Fund increase. Wells Capital Management Singapore, a separately identifiable department of Wells Fargo Bank, N.A., an affiliate of Funds Management and wholly owned subsidiary of Wells Fargo, is also a subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.0025% and declining to 0.0005% as the average daily net assets of the Fund increase.
Administration fees
Under a class-level administration agreement, Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account
Institutional Money Market Funds | 27
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Notes to financial statements (unaudited)
servicers and record-keepers. As compensation for its services under the class-level administration agreement, Funds Management receives an annual fee which is calculated based on the average daily net assets of each class as follows:
Class-level administration fee | ||||
Administrator Class | 0.10 | % | ||
Institutional Class | 0.08 | |||
Select Class | 0.04 | |||
Service Class | 0.12 |
Waivers and/or expense reimbursements
Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. When each class of the Fund has exceeded its expense cap, Funds Management has waived fees and/or reimbursed expenses from fund-level expenses on a proportionate basis and then from class specific expenses. When only certain classes exceed their expense caps, waivers and/or reimbursements are applied against class specific expenses before fund-level expenses. Funds Management has committed through May 31, 2021 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.33% for Administrator Class shares, 0.20% for Institutional Class shares, 0.13% for Select Class shares, and 0.45% for Service Class shares. 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. Prior to June 1, 2020, the Fund’s expenses were capped at 0.50% for Service Class shares.
During the six months ended July 31, 2020, Funds Management also voluntarily waived class-level expenses which represent 0.01% of the average daily net assets (on an annualized basis) of Service Class.
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing agents, whereby Service Class of the Fund is charged a fee at an annual rate of 0.25% of its average daily net assets. Administrator Class is charged a fee at an annual rate of 0.10% of its average daily net assets. A portion of these total shareholder servicing fees were paid to affiliates of Wells Fargo.
Interfund transactions
The Fund may purchase or sell portfolio investment securities to certain other Wells Fargo affiliates pursuant to Rule 17a-7 under the 1940 Act and under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which do not incur broker commissions, are effected at current market prices.
5. INDEMNIFICATION
Under the Fund’s organizational documents, the officers and Trustees have been granted certain indemnification rights against certain liabilities that may arise out of performance of their duties to the Fund. The Fund has entered into a separate agreement with each Trustee that converts indemnification rights currently existing under the Fund’s organizational documents into contractual rights that cannot be changed in the future without the consent of the Trustee. Additionally, in the normal course of business, the Fund may enter into contracts with service providers that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated.
6. NEW ACCOUNTING PRONOUNCEMENT
In August 2018, FASB issued Accounting Standards Update (“ASU”) No. 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 updates the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurements. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Management has adopted this guidance which did not have a material impact on the financial statements.
7. CORONAVIRUS (COVID-19) PANDEMIC
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 are 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 impacts 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.
28 | Institutional Money Market Funds
Table of Contents
PROXY VOTING INFORMATION
A description of the policies and procedures used to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at wfam.com, or visiting the SEC website at sec.gov. Information regarding how the proxies related to portfolio securities were voted during the most recent 12-month period ended June 30 is available on the website at wfam.com or by visiting the SEC website at sec.gov.
PORTFOLIO HOLDINGS INFORMATION
The Fund files its complete schedule of portfolio holdings with the SEC each month on Form N-MFP. Shareholders may view the filed Form N-MFP by visiting the SEC website at sec.gov. The Fund’s portfolio holdings information is also available on our website at wfam.com.
Institutional Money Market Funds | 29
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Other information (unaudited)
BOARD OF TRUSTEES AND OFFICERS
Each of the Trustees and Officers1 listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 147 mutual funds comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information2. The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.
Independent Trustees
Name and year of birth | Position held and length of service* | Principal occupations during past five years or longer | Current other public company or investment company directorships | |||
William R. Ebsworth (Born 1957) | Trustee, since 2015 | Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief investment officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong, and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he led a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Endowment (non-profit organization). Mr. Ebsworth is a CFA® charterholder. | N/A | |||
Jane A. Freeman (Born 1953) | Trustee, since 2015; Chair Liaison, since 2018 | Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is also an inactive Chartered Financial Analyst. | N/A | |||
Isaiah Harris, Jr. (Born 1952) | Trustee, since 2009; Audit Committee Chairman, since 2019 | Retired. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (private school). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status). | CIGNA Corporation | |||
Judith M. Johnson (Born 1949) | Trustee, since 2008; Audit Committee Chairman, from 2009 to 2018 | Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant. | N/A |
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Other information (unaudited)
Name and year of birth | Position held and length of service* | Principal occupations during past five years or longer | Current other public company or investment company directorships | |||
David F. Larcker (Born 1950) | Trustee, since 2009 | James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005. | N/A | |||
Olivia S. Mitchell (Born 1953) | Trustee, since 2006; Nominating and Governance Committee Chair, since 2018 | International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993. | N/A | |||
Timothy J. Penny (Born 1951) | Trustee, since 1996; Chairman, since 2018 | President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007. | N/A | |||
James G. Polisson (Born 1959) | Trustee, since 2018 | Retired. Chief Marketing Officer, Source (ETF) UK Services, Ltd, from 2015 to 2017. From 2012 to 2015, Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing company. Chief Executive Officer and Managing Director at Russell Investments, Global Exchange Traded Funds from 2010 to 2012. Managing Director of Barclays Global Investors from 1998 to 2010 and Global Chief Marketing Officer for iShares and Barclays Global Investors from 2000 to 2010. Trustee of the San Francisco Mechanics’ Institute, a non-profit organization, from 2013 to 2015. Board member of the Russell Exchange Traded Fund Trust from 2011 to 2012. Director of Barclays Global Investors Holdings Deutschland GmbH from 2006 to 2009. Mr. Polisson is an attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations. | N/A | |||
Pamela Wheelock (Born 1959) | Trustee, since January 2020; previously Trustee from January 2018 to July 2019 | Board member of the Destination Medical Center Economic Development Agency, Rochester, Minnesota since 2019 and Interim President of the McKnight Foundation since 2020. Acting Commissioner, Minnesota Department of Human Services, July 2019 through September 2019. Human Services Manager (part-time), Minnesota Department of Human Services, October 2019 through December 2019. Chief Operating Officer, Twin Cities Habitat for Humanity from 2017 to 2019. Vice President of University Services, University of Minnesota from 2012 to 2016. Prior thereto, on the Board of Directors, Governance Committee and Finance Committee for the Minnesota Philanthropy Partners (Saint Paul Foundation) from 2012 to 2018, Interim Chief Executive Officer of Blue Cross Blue Shield of Minnesota from 2011 to 2012, Chairman of the Board from 2009 to 2012 and Board Director from 2003 to 2015. Vice President, Leadership and Community Engagement, Bush Foundation, Saint Paul, Minnesota (a private foundation) from 2009 to 2011. Executive Vice President and Chief Financial Officer, Minnesota Sports and Entertainment from 2004 to 2009 and Senior Vice President from 2002 to 2004. Executive Vice President of the Minnesota Wild Foundation from 2004 to 2008. Commissioner of Finance, State of Minnesota, from 1999 to 2002. Currently Board Chair of the Minnesota Wild Foundation since 2010. | N/A |
* | Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable. |
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Other information (unaudited)
Officers
Name and year of birth | Position held and length of service | Principal occupations during past five years or longer | ||
Andrew Owen (Born 1960) | President, since 2017 | Executive Vice President of Wells Fargo & Company and Head of Affiliated Managers, Wells Fargo Asset Management, since 2014. In addition, Mr. Owen is currently President, Chief Executive Officer and Director of Wells Fargo Funds Management, LLC since 2017. Prior thereto, Executive Vice President responsible for marketing, investments and product development for Wells Fargo Funds Management, LLC, from 2009 to 2014. | ||
Nancy Wiser1 (Born 1967) | Treasurer, since 2012 | Executive Vice President of Wells Fargo Funds Management, LLC since 2011. Chief Operating Officer and Chief Compliance Officer at LightBox Capital Management LLC, from 2008 to 2011. | ||
Michelle Rhee (Born 1966) | Chief Legal Officer, since 2019 | Secretary of Wells Fargo Funds Management, LLC, Chief Legal Counsel of Wells Fargo Asset Management and Assistant General Counsel of Wells Fargo Bank, N.A. since 2018. Associate General Counsel and Managing Director of Bank of America Corporation from 2004 to 2018. | ||
Catherine Kennedy (Born 1969) | Secretary, since 2019 | Vice President of Wells Fargo Funds Management, LLC and Senior Counsel of the Wells Fargo Legal Department since 2010. Vice President and Senior Counsel of Evergreen Investment Management Company, LLC from 1998 to 2010. | ||
Michael H. Whitaker (Born 1967) | Chief Compliance Officer, since 2016 | Chief Compliance Officer of Wells Fargo Asset Management since 2016. Senior Vice President and Chief Compliance Officer for Fidelity Investments from 2007 to 2016. | ||
David Berardi (Born 1975) | Assistant Treasurer, since 2009 | Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010. | ||
Jeremy DePalma1 (Born 1974) | Assistant Treasurer, since 2009 | Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010 and head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010. |
1 | Nancy Wiser acts as Treasurer of 65 funds in the Fund Complex. Jeremy DePalma acts as the Treasurer of 82 funds and Assistant Treasurer of 65 funds in the Fund Complex. |
2 | The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at wfam.com. |
32 | Institutional Money Market Funds
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Other information (unaudited)
BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:
Wells Fargo Cash Investment Money Market Fund
Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at a Board meeting held on May 26, 2020 and May 28, 2020 (together, the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo Cash Investment Money Market Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); (ii) an investment sub-advisory agreement (the “WellsCap Sub-Advisory Agreement”) with Wells Capital Management Incorporated (“WellsCap”); and (iii) an investment sub-advisory agreement (the “WellsCap Singapore Sub-Advisory Agreement,” and together with the WellsCap Sub-Advisory Agreement, the “Sub-Advisory Agreements”) with Wells Capital Management Singapore (together with WellsCap, each a “Sub-Adviser” and collectively, the “Sub-Advisers”), each an affiliate of Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”
At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at a Board meeting held in April 2020, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing investment performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.
In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2020. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and investment performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.
After its deliberations, the Board unanimously approved the continuation of the Advisory Agreements for a one-year term and determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.
Nature, extent and quality of services
The Board received and considered various information regarding the nature, extent and quality of services provided to the Fund by Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Wells Fargo Asset Management (“WFAM”), of which Funds Management and the Sub-Adviser are a part, and a summary of investments made in the business of WFAM. The Board also received a description of Funds Management’s and the Sub-Adviser’s business continuity plans and of their approaches to data privacy and cybersecurity, and related testing. The Board also received and reviewed information about Funds Management’s role as administrator of the Fund’s liquidity risk management program, Funds Management’s approach to risk management, and Funds Management’s intermediary and vendor oversight program.
The Board also considered the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund. The Board evaluated the ability of Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory and supervisory personnel. The Board further considered the compliance programs and compliance records of Funds Management and the Sub-Adviser. In addition, the Board took into account the full range of services provided to the Fund by Funds Management and its affiliates.
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Other information (unaudited)
Fund investment performance and expenses
The Board considered the investment performance results for the Fund over various time periods ended December 31, 2019. The Board also considered more current results for various time periods ended March 31, 2020. The Board considered these results in comparison to the investment performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the investment performance of the Fund (Administrator Class) was higher than the average investment performance of the Universe for the one-, three-, and five-year periods ended December 31, 2019, and in range of the average investment performance of the Universe for the ten-year period ended December 31, 2019. The Board also noted that the investment performance of the Fund (Administrator Class) was higher than the average investment performance of the Universe for the one-, three-, and five-year periods ended March 31, 2020, and equal to the average investment performance of the Universe for the ten-year period ended March 31, 2020. The Board also noted that the investment performance of the Fund was in range of its benchmark index, the Lipper Institutional Money Market Fund Index, for all periods ended December 31, 2019.
The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were lower than, equal to or in range of the median net operating expense ratios of the expense Groups for each share class.
The Board took into account the Fund’s investment performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.
Investment management and sub-advisory fee rates
The Board reviewed and considered the contractual fee rates payable by the Fund to Funds Management under the Management Agreement, as well as the contractual fee rates payable by the Fund to Funds Management for class-level administrative services under a Class-Level Administration Agreement, which include, among other things, class-level transfer agency and sub-transfer agency costs (collectively, the “Management Rates”). The Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Funds Management to the Sub-Adviser for investment sub-advisory services.
Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were lower than or in range of the sum of these average rates for the Fund’s expense Groups for all share classes.
The Board also received and considered information about the portion of the total management fee that was retained by Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Funds Management and not delegated to or assumed by the Sub-Adviser, and about Funds Management’s on-going oversight services. Given the affiliation between Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of fees between them.
The Board also received and considered information about the nature and extent of services offered and fee rates charged by Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing proprietary mutual funds compared with those associated with managing assets of other types of clients, including third-party sub-advised fund clients and non-mutual fund clients such as institutional separate accounts.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Funds Management under the Management Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable.
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Other information (unaudited)
Profitability
The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of both WFAM and Wells Fargo & Co. (“Wells Fargo”) from providing services to the fund family as a whole. The Board noted that the Sub-Adviser’s profitability information with respect to providing services to the Fund and other funds in the family was subsumed in the WFAM and Wells Fargo profitability analysis.
Funds Management reported on the methodologies and estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size, type and age of fund.
Based on its review, the Board did not deem the profits reported by Funds Management, WFAM or Wells Fargo from services provided to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.
Economies of scale
The Board received and considered information about the potential for Funds Management to experience economies of scale in the provision of management services to the Fund, the difficulties of calculating economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with shareholders. The Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size, and the size of the Fund in relation to such breakpoints. The Board considered that in addition to management fee breakpoints, Funds Management shares potential economies of scale from its management business in a variety of ways, including through fee waiver and expense reimbursement arrangements, services that benefit shareholders, competitive management fee rates set at the outset without regard to breakpoints, and investments in the business intended to enhance services available to shareholders.
The Board concluded that Funds Management’s arrangements with respect to the Fund, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.
Other benefits to Funds Management and the Sub-Adviser
The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that various affiliates of Funds Management may receive distribution-related fees, shareholder servicing payments and sub-transfer agency fees in respect of shares sold or held through them and services provided.
The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser, fees earned by Funds Management and the Sub-Adviser from managing a private investment vehicle for the fund family’s securities lending collateral, and commissions earned by an affiliated broker from portfolio transactions.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.
Conclusion
At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory Agreements for a one-year term and determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable.
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Other information (unaudited)
LIQUIDITY RISK MANAGEMENT PROGRAM
In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), Wells Fargo Funds Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) on behalf of each of its series, including the Fund, which is reasonably designed to assess and manage the Fund’s liquidity risk. “Liquidity risk” is defined as the risk that the Fund is unable to meet redemption requests without significantly diluting remaining investors’ interests in the Fund. The Trust’s Board of Trustees (the “Board”) previously approved the designation of Wells Fargo Funds Management, LLC (“Funds Management”), the Fund’s investment manager, as the administrator of the Program, and Funds Management has established a Liquidity Risk Management Council composed of personnel from multiple departments within Funds Management and its affiliates to assist Funds Management in the implementation and on-going administration of the Program.
The Program is comprised of various components designed to support the assessment and/or management of liquidity risk, including: (1) the periodic assessment (no less frequently than annually) of certain factors that influence the Fund’s liquidity risk; (2) the periodic classification (no less frequently than monthly) of the Fund’s investments into one of four liquidity categories that reflect an estimate of their liquidity under current market conditions; (3) a 15% limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); (4) to the extent the Fund does not invest primarily in “highly liquid investments” (as defined under the Liquidity Rule), the determination of a minimum percentage of the Fund’s assets that generally will be invested in highly liquid investments (an “HLIM”); (5) if the Fund has established an HLIM, the periodic review (no less frequently than annually) of the HLIM and the adoption of policies and procedures for responding to a shortfall of the Fund’s “highly liquid investments” below its HLIM; and (6) periodic reporting to the Board.
At a meeting of the Board held on May 26 and 28, 2020, the Board received a written report (the “Report”) from Funds Management that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation. The Report covered the initial period from December 1, 2018 through December 31, 2019 (the “Reporting Period”). No significant liquidity events impacting the Fund were noted in the Report. There were no material changes to the Program during the Reporting Period. The Report concluded that the Program is operating effectively to assess and manage the Fund’s liquidity risk, and that the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund’s liquidity developments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other risks to which an investment in the Fund may be subject.
36 | Institutional Money Market Funds
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For more information
More information about Wells Fargo Funds is available free upon request. To obtain literature, please write, visit the Fund’s website, or call:
Wells Fargo Funds
P.O. Box 219967
Kansas City, MO 64121-9967
Website: wfam.com
Individual investors: 1-800-222-8222
Retail investment professionals: 1-888-877-9275
Institutional investment professionals: 1-866-765-0778
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-260-5969 or visit the Fund’s website at wfam.com. Read the prospectus carefully before you invest or send money.
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).
This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind—including a recommendation for any specific investment, strategy, or plan.
INVESTMENT PRODUCTS: NOT FDIC INSURED ◾ NO BANK GUARANTEE ◾ MAY LOSE VALUE
© 2020 Wells Fargo & Company. All rights reserved
PAR-0820-01046 09-20
SA302/SAR302 07-20
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Semi-Annual Report
July 31, 2020
Government Money Market Funds
∎ | Wells Fargo Government Money Market Fund |
Beginning on January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, paper copies of the Wells Fargo Funds’ annual and semi-annual shareholder reports issued after this date will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Funds’ website, and you will be notified by mail each time a report is posted and provided with a website address to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling 1-800-222-8222 or by enrolling at wellsfargo.com/advantagedelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports; if you invest directly with the Fund, you can call 1-800-222-8222. Your election to receive reports in paper will apply to all Wells Fargo Funds held in your account with your financial intermediary or, if you are a direct investor, to all Wells Fargo Funds that you hold.
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The views expressed and any forward-looking statements are as of July 31, 2020, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Asset Management. Discussions of individual securities, or the markets generally, or any Wells Fargo Fund 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 and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.
INVESTMENT PRODUCTS: NOT FDIC INSURED ◾ NO BANK GUARANTEE ◾ MAY LOSE VALUE
Government Money Market Funds | 1
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Letter to shareholders (unaudited)
Andrew Owen
President
Wells Fargo Funds
Dear Shareholder:
We are pleased to offer you this semi-annual report for the Wells Fargo Government Money Market Fund for the six-month period that ended July 31, 2020. Global stock markets tumbled in February and March as governments took unprecedented measures to stop the spread of the coronavirus at the expense of short-term economic output. However, most markets rebounded from April on to offset much of the losses as central banks attempted to bolster capital markets and confidence. Fixed-income markets generally performed well, with the exception of high-yield bonds, as U.S. bonds overall achieved modest gains. U.S. and emerging market equities outperformed international developed market equities over the six-month period.
For the period, U.S. stocks, based on the S&P 500 Index,1 returned 2.42% and international stocks, as measured by the MSCI ACWI ex USA Index (Net),2 fell 4.47%. The MSCI EM Index (Net)3 gained 3.08%. For bond investors, the Bloomberg Barclays U.S. Aggregate Bond Index4 added 5.69%, the Bloomberg Barclays Global Aggregate ex-USD Index5 returned 4.29%, the Bloomberg Barclays Municipal Bond Index6 returned 1.96%, and the ICE BofA U.S. High Yield Index7 lost 0.23%.
Concerns about the coronavirus took over the market.
In February, the coronavirus became the major market focus. Fears of the virus’s impact on global growth led to expectations of increased global central bank monetary policy support. That led the 10-year U.S. Treasury yield to fall to an all-time low of 1.1% by the end of the month. Although equity markets initially shrugged off concerns about the outbreak, focusing instead on strong fourth-quarter earnings and improving business confidence in January, market sentiment turned sharply lower toward month-end. Oil prices tumbled as Russia and the Organization of the Petroleum Exporting Countries compounded a major decline in oil demand with a brutal price war, causing the price of West Texas Intermediate crude oil to plummet.
1 | The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock’s weight in the index proportionate to its market value. You cannot invest directly in an index. |
2 | The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the United States. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. You cannot invest directly in an index. |
3 | The MSCI Emerging Markets (EM) Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure equity market performance of emerging markets. You cannot invest directly in an index. |
4 | The Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. You cannot invest directly in an index. |
5 | The Bloomberg Barclays Global Aggregate ex-USD Index is an unmanaged index that provides a broad-based measure of the global investment-grade fixed-income markets excluding the U.S.-dollar-denominated debt market. You cannot invest directly in an index. |
6 | 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. |
7 | The ICE BofA U.S. High Yield Index is a market-capitalization-weighted index of domestic and Yankee high-yield bonds. The index tracks the performance of high-yield securities traded in the U.S. bond market. You cannot invest directly in an index. Copyright 2020. ICE Data Indices, LLC. All rights reserved. |
2 | Government Money Market Funds
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Letter to shareholders (unaudited)
The global spread of the coronavirus led many countries to clamp down on social and business-related activity in order to contain the virus from causing even greater devastation and overwhelming the health care system. This abrupt stoppage of economic activity led to the sharp deceleration of global output, sending economies into a deep contraction. Central bank responses were swift, as they slashed interest rates and expanded quantitative easing programs to restore liquidity and confidence to the markets. In the U.S., the Federal Reserve launched several lending programs, funding investment-grade bonds, money market mutual funds, and commercial paper while purchasing Treasuries, mortgage-backed securities, and overnight repurchase agreements. Meanwhile, stock markets tumbled quickly into a bear market, ending the longest bull stock market in U.S. history.
Markets rebounded strongly in April, fueled by unprecedented government and central bank stimulus measures. The U.S. economy contracted by an annualized 5.0% pace in the first quarter, with 30 million new unemployment insurance claims in six weeks. In the eurozone, first-quarter real gross domestic product (GDP) shrank 3.8%, with the composite April Flash Purchasing Managers’ Index, a monthly survey of purchasing managers, falling to an all-time low of 13.5. The European Central Bank expanded its quantitative easing to include the purchase of additional government bonds of countries with the greatest virus-related need, including Italy and Spain. China’s first-quarter GDP fell by 6.8% year over year. However, retail sales, production, and investment showed signs of recovery. Extreme oil-price volatility continued as global supply far exceeded demand.
In May, the equity market rebound continued, with widespread strong monthly gains. Investors regained confidence on reports of early signs of success in human trials of a coronavirus vaccine. Growth stocks continued to outperform value stocks while returns on global government bonds were generally flat. In the U.S., a gap grew between the stock market rebound and devastating economic data points, including an April unemployment rate of 14.7%, the highest level since World War II. Purchasing managers’ indices continued to reflect weakening activity in May in both the manufacturing and services sectors. U.S. corporate earnings reports indicated a 14% year-over-year contraction in earnings from the first quarter of 2019. However, high demand for technology, driven by remote activity, helped maintain robust information technology sector earnings, which helped drive powerful well-known technology stocks higher.
Financial markets posted widely positive returns in June despite ongoing economic weakness and high levels of uncertainty on the containment of the coronavirus and the timing of an effective vaccine. There were hopeful signs as economies reopened, with both U.S. and U.K. retail sales rebounding substantially in May. However, year over year, sales remained depressed. Vitally important to market sentiment was the ongoing commitment by central banks globally to do all they could to provide economic support through liquidity and low borrowing costs. U.S. economic activity was aided by one-time $1,200 stimulus checks and $600 bonus weekly unemployment benefits due to expire at the end of July. However, unemployment remained in the double digits, easing somewhat from 14.7% in April to 11.1% in June. During June, numerous states reported alarming increases in coronavirus cases. China’s economic recovery picked up momentum in June, though it remained far from a full recovery.
July was a broadly positive month for both global equities and fixed income. However, economic data and a resurgence of coronavirus cases pointed to the vulnerability of the global economy and the ongoing imperative to regain control of the pandemic. Second-quarter GDP shrank by 9.5% and 12.1% in the U.S. and eurozone, respectively, from the previous quarter. In contrast, China reported a 3.2% year-over-year expansion in its second-quarter GDP. U.S. unemployment remained historically high despite adding 1.8 million jobs in July, with a double-digit jobless rate persisting. However, manufacturing activity grew in both the U.S. and eurozone. In Asia, while China’s manufacturing sector
“The global spread of the coronavirus led many countries to clamp down on social and business-related activity in order to contain the virus from causing even greater devastation and overwhelming the health care system.”
“Financial markets posted widely positive returns in June despite ongoing economic weakness and high levels of uncertainty on the containment of the coronavirus and the timing of an effective vaccine.”
Government Money Market Funds | 3
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Letter to shareholders (unaudited)
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For further information about your Fund, contact your investment professional, visit our website at wfam.com, or call us directly at 1-800-222-8222. |
continued to expand, activity in Japan and South Korea contracted. In July, a rising concern was the rapid and broad reemergence of coronavirus infections. Despite the ongoing promise of positive early-stage vaccine trial results, economic activity could be held back by the continued spread of the virus and the end of a widely received $600-a-week bonus unemployment benefit in late July.
Don’t let short-term uncertainty derail long-term investment goals.
Periods of investment uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Funds offers more than 100 mutual funds spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.
Thank you for choosing to invest with Wells Fargo Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.
Sincerely,
Andrew Owen
President
Wells Fargo Funds
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Performance highlights (unaudited)
Investment objective
The Fund seeks current income, while preserving capital and liquidity.
Manager
Wells Fargo Funds Management, LLC
Subadviser
Wells Capital Management Incorporated
Portfolio managers
Michael C. Bird, CFA®‡
Jeffrey L. Weaver, CFA®‡
Laurie White
Average annual total returns (%) as of July 31, 2020
Expense ratios1 (%) | ||||||||||||||||||||||
Inception date | 1 year | 5 year | 10 year | Gross | Net2 | |||||||||||||||||
Class A (WFGXX) | 11-8-1999 | 0.78 | 0.70 | 0.35 | 0.61 | 0.60 | ||||||||||||||||
Administrator Class (WGAXX) | 7-31-2003 | 0.95 | 0.88 | 0.45 | 0.34 | 0.34 | ||||||||||||||||
Institutional Class (GVIXX) | 7-28-2003 | 1.07 | 1.01 | 0.51 | 0.22 | 0.20 | ||||||||||||||||
Select Class (WFFXX)3 | 6-30-2015 | 1.13 | 1.06 | 0.54 | 0.18 | 0.14 | ||||||||||||||||
Service Class (NWGXX) | 11-16-1987 | 0.84 | 0.76 | 0.39 | 0.51 | 0.50 | ||||||||||||||||
Sweep Class4 | 7-31-2020 | 0.57 | 0.35 | (0.11 | ) | 0.77 | 0.77 |
Yield summary (%) as of July 31, 20202
Class A | Administrator Class | Institutional Class | Select Class | Service Class | Sweep Class | |||||||||||||||||
7-day current yield | 0.01 | 0.01 | 0.04 | 0.10 | 0.01 | 0.00 | ||||||||||||||||
7-day compound yield | 0.01 | 0.01 | 0.04 | 0.10 | 0.01 | 0.00 | ||||||||||||||||
30-day simple yield | 0.01 | 0.01 | 0.05 | 0.11 | 0.01 | 0.00 | ||||||||||||||||
30-day compound yield | 0.01 | 0.01 | 0.05 | 0.11 | 0.01 | 0.00 |
Figures quoted represent past performance, which is no guarantee of future results, and do not reflect taxes that a shareholder may pay on an investment in a fund. Investment returns will fluctuate. The Fund’s yield figures more closely reflect the current earnings of the Fund than the total return figures. Current performance may be lower or higher than the performance data quoted, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s website, wfam.com.
Money market funds are sold without a front-end sales charge or contingent deferred sales charge. Other fees and expenses apply to an investment in the Fund and are described in the Fund’s current prospectus.
For government money market funds: You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
Please see footnotes on page 7.
6 | Government Money Market Funds
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Performance highlights (unaudited)
Portfolio composition as of July 31, 20205 |
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Effective maturity distribution as of July 31, 20205 |
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Weighted average maturity as of July 31, 20206 |
40 days |
Weighted average life as of July 31, 20207 |
99 days |
‡ | CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. |
1 | Reflects the expense ratios as stated in the most recent prospectuses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report. |
2 | The manager has contractually committed through May 31, 2021, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.60% for Class A, 0.34% for Administrator Class, 0.20% for Institutional Class, 0.14% for Select Class, 0.50% for Service Class, and 0.77% for Sweep Class. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses (if any), and extraordinary expenses are excluded from the expense caps. Prior to or after the commitment expiration date, the caps may be increased or the commitment to maintain the caps may be terminated only with the approval of the Board of Trustees. Without these caps, the Fund’s returns would have been lower. Without waived fees and/or reimbursed expenses, the Fund’s 7-day current yield would have been -0.36%, -0.10%, 0.02%, 0.06%, -0.27%, 0.00% for Class A, Administrator Class, Institutional Class, Select Class, Service Class, and Sweep Class respectively. 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 prospectuses. |
3 | Historical performance shown for the Select Class shares prior to their inception reflects the performance of the Institutional Class shares, and includes the higher expenses applicable to Institutional Class shares. If these expenses had not been included, returns for Select Class shares would be higher. |
4 | Historical performance shown for the Sweep Class shares prior to their inception reflects the performance of the Service Class shares, and includes the higher expenses applicable to Sweep Class shares. |
5 | Amounts are calculated based on the total investments of the Fund. These amounts are subject to change and may have changed since the date specified. |
6 | Weighted Average Maturity (WAM): WAM is an average of the effective maturities of all securities held in the portfolio, weighted by each security’s percentage of total investments. The maturity of a portfolio security is the period remaining until the date on which the principal amount is unconditionally required to be paid, or in the case of a security called for redemption, the date on which the redemption payment is unconditionally required to be made. WAM calculations allow for the maturities of certain securities with demand features or periodic interest rate resets to be shortened. WAM is a way to measure a fund’s sensitivity to potential interest rate changes. WAM is subject to change and may have changed since the date specified. |
7 | Weighted Average Life (WAL): WAL is an average of the final maturities of all securities held in the portfolio, weighted by their percentage of total investments. The maturity of a portfolio security is the period remaining until the date on which the principal amount is unconditionally required to be paid, or in the case of a security called for redemption, the date on which the redemption payment is unconditionally required to be made. In contrast to WAM, the calculation of WAL allows for the maturities of certain securities with demand features to be shortened, but not the periodic interest rate resets. WAL is a way to measure a fund’s potential sensitivity to credit spread changes. WAL is subject to change and may have changed since the date specified. |
Government Money Market Funds | 7
Table of Contents
As a shareholder of the Fund, you incur ongoing costs, including management fees, distribution (12b-1) and/or shareholder servicing fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from February 1, 2020 to July 31, 2020.
Actual expenses
The “Actual” line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Actual” line under the heading entitled “Expenses paid during period” for your applicable class of shares to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The “Hypothetical” line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds.
Beginning account value 2-1-2020 | Ending account value 7-31-2020 | Expenses paid during the period1 | Annualized net expense ratio | |||||||||||||
Class A | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,001.22 | $ | 1.89 | 0.38 | % | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.97 | $ | 1.91 | 0.38 | % | ||||||||
Administrator Class | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,001.66 | $ | 1.44 | 0.29 | % | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.42 | $ | 1.46 | 0.29 | % | ||||||||
Institutional Class | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,002.12 | $ | 1.00 | 0.20 | % | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.87 | $ | 1.01 | 0.20 | % | ||||||||
Select Class | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,002.42 | $ | 0.70 | 0.14 | % | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,024.17 | $ | 0.70 | 0.14 | % | ||||||||
Service Class | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,001.36 | $ | 1.74 | 0.35 | % | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.12 | $ | 1.76 | 0.35 | % | ||||||||
Sweep Class | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,000.00 | $ | 0.00 | 0.00 | % | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,000.00 | $ | 0.00 | 0.00 | % |
1 | Expenses paid is equal to the annualized net expense ratio of each class multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one-half-year period). |
8 | Government Money Market Funds
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Government Agency Debt: 23.85% | ||||||||||||||||
FFCB (1 Month LIBOR +0.03%) ± | 0.20 | % | 8-25-2020 | $ | 150,000,000 | $ | 149,999,541 | |||||||||
FFCB (1 Month LIBOR +0.04%) ± | 0.21 | 2-11-2021 | 175,000,000 | 175,000,000 | ||||||||||||
FFCB (1 Month LIBOR +0.08%) ± | 0.24 | 3-29-2021 | 250,000,000 | 249,994,367 | ||||||||||||
FFCB (3 Month LIBOR -0.07%) ± | 0.25 | 12-7-2020 | 25,000,000 | 24,999,659 | ||||||||||||
FFCB (3 Month LIBOR -0.06%) ± | 0.26 | 3-15-2021 | 75,000,000 | 74,998,187 | ||||||||||||
FFCB (U.S. Treasury 3 Month Bill Money Market Yield +0.16%) ± | 0.27 | 1-19-2021 | 73,500,000 | 73,493,275 | ||||||||||||
FFCB (U.S. Treasury 3 Month Bill Money Market Yield +0.22%) ± | 0.33 | 2-2-2021 | 300,000,000 | 299,994,069 | ||||||||||||
FFCB (1 Month LIBOR -0.07%) ± | 0.11 | 9-16-2020 | 250,000,000 | 249,945,109 | ||||||||||||
FFCB (1 Month LIBOR -0.05%) ± | 0.12 | 8-27-2020 | 25,000,000 | 24,999,412 | ||||||||||||
FFCB (3 Month LIBOR -0.14%) ± | 0.13 | 10-29-2020 | 50,000,000 | 49,991,853 | ||||||||||||
FFCB (1 Month LIBOR -0.02%) ± | 0.14 | 8-5-2020 | 140,000,000 | 139,999,785 | ||||||||||||
FFCB (U.S. Treasury 3 Month Bill Money Market Yield +0.05%) ± | 0.16 | 10-21-2020 | 100,000,000 | 99,998,931 | ||||||||||||
FFCB (U.S. Treasury 3 Month Bill Money Market Yield +0.06%) ± | 0.16 | 8-6-2020 | 150,000,000 | 149,999,982 | ||||||||||||
FFCB (U.S. Treasury 3 Month Bill Money Market Yield +0.06%) ± | 0.16 | 9-4-2020 | 150,000,000 | 149,999,409 | ||||||||||||
FFCB (U.S. Treasury 3 Month Bill Money Market Yield +0.06%) ± | 0.17 | 10-15-2020 | 100,000,000 | 99,999,012 | ||||||||||||
FFCB (U.S. SOFR +0.07%) ± | 0.17 | 8-20-2021 | 42,000,000 | 42,000,000 | ||||||||||||
FFCB (1 Month LIBOR +0.01%) ± | 0.18 | 11-27-2020 | 100,000,000 | 99,999,215 | ||||||||||||
FFCB (1 Month LIBOR +0.00%) ± | 0.18 | 7-16-2021 | 20,000,000 | 19,978,591 | ||||||||||||
FFCB (U.S. SOFR +0.08%) ± | 0.18 | 6-10-2021 | 40,000,000 | 40,000,000 | ||||||||||||
FFCB (3 Month LIBOR -0.08%) ± | 0.20 | 1-15-2021 | 75,300,000 | 75,300,038 | ||||||||||||
FFCB (1 Month LIBOR +0.02%) ± | 0.20 | 6-14-2021 | 295,855,000 | 295,832,997 | ||||||||||||
FFCB (1 Month LIBOR +0.01%) ± | 0.20 | 8-19-2020 | 250,000,000 | 249,999,213 | ||||||||||||
FFCB (U.S. SOFR +0.10%) ± | 0.20 | 5-7-2021 | 84,000,000 | 84,000,000 | ||||||||||||
FFCB (1 Month LIBOR +0.03%) ± | 0.20 | 12-14-2020 | 50,000,000 | 49,999,258 | ||||||||||||
FFCB (3 Month LIBOR -0.13%) ± | 0.20 | 9-4-2020 | 115,000,000 | 115,000,000 | ||||||||||||
FFCB (1 Month LIBOR +0.02%) ± | 0.20 | 9-9-2020 | 100,000,000 | 99,993,666 | ||||||||||||
FFCB (3 Month LIBOR -0.10%) ± | 0.21 | 12-28-2020 | 235,000,000 | 234,996,286 | ||||||||||||
FFCB (1 Month LIBOR +0.04%) ± | 0.21 | 6-3-2021 | 50,000,000 | 50,006,778 | ||||||||||||
FFCB (1 Month LIBOR +0.04%) ± | 0.21 | 1-26-2021 | 35,000,000 | 34,997,823 | ||||||||||||
FFCB (1 Month LIBOR +0.03%) ± | 0.21 | 7-13-2021 | 300,000,000 | 299,991,529 | ||||||||||||
FFCB (1 Month LIBOR +0.04%) ± | 0.21 | 2-1-2021 | 133,000,000 | 132,994,839 | ||||||||||||
FFCB (1 Month LIBOR +0.03%) ± | 0.21 | 5-20-2021 | 37,500,000 | 37,498,101 | ||||||||||||
FFCB (1 Month LIBOR +0.04%) ± | 0.21 | 1-28-2021 | 207,500,000 | 207,500,071 | ||||||||||||
FFCB (1 Month LIBOR +0.04%) ± | 0.21 | 1-11-2021 | 89,500,000 | 89,498,012 | ||||||||||||
FFCB (U.S. Treasury 3 Month Bill Money Market Yield +0.11%) ± | 0.22 | 12-28-2020 | 84,000,000 | 83,993,257 | ||||||||||||
FFCB (1 Month LIBOR +0.04%) ± | 0.22 | 12-16-2020 | 300,000,000 | 299,996,678 | ||||||||||||
FFCB (U.S. SOFR +0.12%) ± | 0.22 | 6-11-2021 | 445,000,000 | 444,922,768 | ||||||||||||
FFCB (3 Month LIBOR -0.12%) ± | 0.23 | 11-30-2020 | 75,000,000 | 75,000,000 | ||||||||||||
FFCB (U.S. SOFR +0.13%) ± | 0.23 | 2-11-2022 | 173,400,000 | 173,127,484 | ||||||||||||
FFCB (3 Month LIBOR -0.08%) ± | 0.23 | 9-15-2021 | 50,000,000 | 49,992,897 | ||||||||||||
FFCB (U.S. Treasury 3 Month Bill Money Market Yield +0.13%) ± | 0.24 | 2-8-2021 | 100,000,000 | 99,969,051 | ||||||||||||
FFCB (1 Month LIBOR +0.07%) ± | 0.24 | 1-8-2021 | 300,000,000 | 299,982,065 | ||||||||||||
FFCB (1 Month LIBOR +0.07%) ± | 0.24 | 4-29-2021 | 225,000,000 | 224,993,411 | ||||||||||||
FFCB (1 Month LIBOR +0.07%) ± | 0.24 | 12-28-2020 | 250,000,000 | 250,000,000 | ||||||||||||
FFCB (U.S. SOFR +0.14%) ± | 0.24 | 9-24-2021 | 240,000,000 | 240,000,000 | ||||||||||||
FFCB (U.S. Treasury 3 Month Bill Money Market Yield +0.14%) ± | 0.25 | 9-17-2021 | 29,600,000 | 29,547,112 | ||||||||||||
FFCB (1 Month LIBOR +0.08%) ± | 0.25 | 7-8-2021 | 225,000,000 | 224,987,584 | ||||||||||||
FFCB (1 Month LIBOR +0.07%) ± | 0.25 | 6-24-2021 | 323,000,000 | 322,988,195 | ||||||||||||
FFCB (1 Month LIBOR +0.08%) ± | 0.25 | 5-27-2021 | 300,000,000 | 299,992,757 | ||||||||||||
FFCB (1 Month LIBOR +0.08%) ± | 0.25 | 8-25-2021 | 150,000,000 | 150,000,000 | ||||||||||||
FFCB (1 Month LIBOR +0.09%) ± | 0.25 | 5-4-2021 | 75,000,000 | 75,000,000 | ||||||||||||
FFCB (3 Month LIBOR -0.13%) ± | 0.26 | 11-16-2020 | 130,000,000 | 129,997,908 | ||||||||||||
FFCB (1 Month LIBOR +0.10%) ± | 0.26 | 8-5-2021 | 130,000,000 | 130,000,000 | ||||||||||||
FFCB (1 Month LIBOR +0.09%) ± | 0.27 | 9-13-2021 | 90,000,000 | 90,000,000 | ||||||||||||
FFCB (U.S. SOFR +0.17%) ± | 0.27 | 3-15-2022 | 200,000,000 | 199,999,985 | ||||||||||||
FFCB (3 Month LIBOR -0.03%) ± | 0.28 | 9-27-2021 | 75,000,000 | 74,996,565 |
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 9
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Government Agency Debt (continued) | ||||||||||||||||
FFCB (1 Month LIBOR +0.11%) ± | 0.28 | % | 3-25-2021 | $ | 200,000,000 | $ | 199,987,180 | |||||||||
FFCB (1 Month LIBOR +0.10%) ± | 0.28 | 9-9-2021 | 144,000,000 | 144,017,469 | ||||||||||||
FFCB (1 Month LIBOR +0.11%) ± | 0.29 | 9-24-2021 | 14,140,000 | 14,133,940 | ||||||||||||
FFCB (U.S. SOFR +0.19%) ± | 0.29 | 11-18-2021 | 181,000,000 | 181,000,000 | ||||||||||||
FFCB (U.S. SOFR +0.19%) ± | 0.29 | 7-14-2022 | 100,000,000 | 100,000,000 | ||||||||||||
FFCB (z) | 0.29 | 9-15-2020 | 50,000,000 | 49,982,681 | ||||||||||||
FFCB (z) | 0.29 | 2-22-2021 | 100,000,000 | 99,836,472 | ||||||||||||
FFCB (3 Month LIBOR -0.21%) ± | 0.30 | 8-6-2020 | 16,500,000 | 16,499,901 | ||||||||||||
FFCB (U.S. SOFR +0.20%) ± | 0.30 | 4-22-2022 | 181,500,000 | 181,058,871 | ||||||||||||
FFCB (3 Month LIBOR +0.01%) ± | 0.32 | 9-20-2021 | 38,600,000 | 38,607,934 | ||||||||||||
FFCB (z) | 0.32 | 11-16-2020 | 98,000,000 | 97,908,533 | ||||||||||||
FFCB (3 Month LIBOR +0.01%) ± | 0.32 | 9-13-2021 | 19,600,000 | 19,612,322 | ||||||||||||
FFCB (1 Month LIBOR +0.16%) ± | 0.33 | 7-1-2021 | 60,000,000 | 60,018,267 | ||||||||||||
FFCB (U.S. Treasury 3 Month Bill Money Market Yield +0.24%) ± | 0.34 | 8-20-2021 | 225,000,000 | 224,990,688 | ||||||||||||
FFCB (U.S. Treasury 3 Month Bill Money Market Yield +0.24%) ± | 0.35 | 8-2-2021 | 150,000,000 | 150,000,000 | ||||||||||||
FFCB (z) | 0.35 | 3-9-2021 | 50,000,000 | 49,894,028 | ||||||||||||
FFCB (z) | 0.36 | 3-15-2021 | 200,000,000 | 199,552,000 | ||||||||||||
FFCB (U.S. Treasury 3 Month Bill Money Market Yield +0.26%) ± | 0.37 | 5-17-2021 | 98,700,000 | 98,684,492 | ||||||||||||
FFCB (z) | 0.37 | 10-13-2020 | 180,000,000 | 179,869,834 | ||||||||||||
FFCB (3 Month LIBOR -0.08%) ± | 0.37 | 8-10-2021 | 100,000,000 | 99,995,930 | ||||||||||||
FFCB (3 Month LIBOR -0.06%) ± | 0.38 | 5-13-2021 | 25,000,000 | 24,999,269 | ||||||||||||
FFCB (U.S. SOFR +0.28%) ± | 0.38 | 10-1-2021 | 200,000,000 | 200,000,000 | ||||||||||||
FFCB (U.S. SOFR +0.29%) ± | 0.39 | 4-23-2021 | 200,000,000 | 200,000,000 | ||||||||||||
FFCB (U.S. SOFR +0.29%) ± | 0.39 | 6-25-2021 | 200,000,000 | 200,000,000 | ||||||||||||
FFCB (U.S. SOFR +0.30%) ± | 0.40 | 7-2-2021 | 250,000,000 | 250,000,000 | ||||||||||||
FFCB (z) | 0.40 | 9-2-2020 | 55,000,000 | 54,981,667 | ||||||||||||
FFCB (z) | 0.40 | 12-15-2020 | 25,000,000 | 24,962,778 | ||||||||||||
FFCB (z) | 0.40 | 12-22-2020 | 33,000,000 | 32,948,300 | ||||||||||||
FFCB (z) | 0.40 | 3-10-2021 | 200,000,000 | 199,513,333 | ||||||||||||
FFCB (z) | 0.40 | 3-18-2021 | 200,000,000 | 199,495,556 | ||||||||||||
FFCB (z) | 0.40 | 3-19-2021 | 50,000,000 | 49,873,333 | ||||||||||||
FFCB (U.S. SOFR +0.32%) ± | 0.42 | 1-12-2022 | 125,000,000 | 125,000,000 | ||||||||||||
FFCB (z) | 0.44 | 3-25-2021 | 300,000,000 | 299,142,000 | ||||||||||||
FFCB (z) | 0.44 | 3-25-2021 | 200,000,000 | 199,428,000 | ||||||||||||
FFCB (z) | 0.46 | 1-12-2021 | 75,000,000 | 74,844,750 | ||||||||||||
FFCB (z) | 0.46 | 1-20-2021 | 50,000,000 | 49,891,389 | ||||||||||||
FFCB (z) | 0.46 | 1-25-2021 | 50,000,000 | 49,888,194 | ||||||||||||
FFCB (z) | 0.46 | 2-11-2021 | 50,000,000 | 49,877,333 | ||||||||||||
FFCB (U.S. SOFR +0.38%) ± | 0.48 | 4-22-2022 | 365,000,000 | 365,000,000 | ||||||||||||
FFCB (z) | 0.48 | 11-12-2020 | 75,000,000 | 74,899,000 | ||||||||||||
FFCB (z) | 0.49 | 2-17-2021 | 201,000,000 | 200,455,665 | ||||||||||||
FFCB (z) | 0.52 | 9-8-2020 | 42,200,000 | 42,178,056 | ||||||||||||
FFCB (z) | 0.52 | 9-29-2020 | 200,000,000 | 199,835,333 | ||||||||||||
FFCB (z) | 0.52 | 10-27-2020 | 300,000,000 | 299,631,666 | ||||||||||||
FFCB (z) | 0.52 | 10-30-2020 | 200,000,000 | 199,745,778 | ||||||||||||
FFCB (z) | 0.52 | 11-27-2020 | 400,000,000 | 399,329,777 | ||||||||||||
FFCB (z) | 0.52 | 12-11-2020 | 50,000,000 | 49,906,111 | ||||||||||||
FFCB (z) | 0.53 | 11-18-2020 | 50,000,000 | 49,921,236 | ||||||||||||
FFCB (z) | 0.55 | 3-16-2021 | 150,000,000 | 149,484,375 | ||||||||||||
FFCB (z) | 0.60 | 10-5-2020 | 110,000,000 | 109,884,150 | ||||||||||||
FFCB (3 Month LIBOR -0.07%) ± | 0.62 | 2-1-2021 | 50,000,000 | 49,999,009 | ||||||||||||
FFCB | 0.70 | 4-12-2021 | 161,200,000 | 161,503,358 | ||||||||||||
FFCB (z) | 0.81 | 12-14-2020 | 125,000,000 | 124,630,556 | ||||||||||||
FFCB (z) | 1.06 | 9-8-2020 | 44,000,000 | 43,953,800 | ||||||||||||
FFCB (z) | 1.54 | 1-27-2021 | 67,000,000 | 66,499,287 | ||||||||||||
FFCB (z) | 1.54 | 2-2-2021 | 15,000,000 | 14,884,100 |
The accompanying notes are an integral part of these financial statements.
10 | Government Money Market Funds
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Government Agency Debt (continued) | ||||||||||||||||
FFCB (z) | 1.55 | % | 8-14-2020 | $ | 42,000,000 | $ | 41,980,301 | |||||||||
FFCB (z) | 1.55 | 1-26-2021 | 30,000,000 | 29,775,600 | ||||||||||||
FFCB (z) | 1.57 | 8-3-2020 | 50,000,000 | 50,000,000 | ||||||||||||
FFCB (z) | 1.61 | 10-26-2020 | 150,000,000 | 149,447,000 | ||||||||||||
FFCB (z) | 1.64 | 10-19-2020 | 50,000,000 | 49,826,750 | ||||||||||||
FFCB (z) | 1.65 | 11-30-2020 | 28,000,000 | 27,850,060 | ||||||||||||
FHLB (U.S. SOFR +0.03%) ± | 0.13 | 8-5-2020 | 207,000,000 | 207,000,000 | ||||||||||||
FHLB (U.S. SOFR +0.03%) ± | 0.13 | 11-6-2020 | 137,000,000 | 137,000,000 | ||||||||||||
FHLB (3 Month LIBOR -0.11%) ± | 0.14 | 1-25-2021 | 50,000,000 | 50,000,186 | ||||||||||||
FHLB (1 Month LIBOR -0.03%) ± | 0.14 | 3-26-2021 | 240,000,000 | 239,946,952 | ||||||||||||
FHLB (3 Month LIBOR -0.13%) ± | 0.14 | 4-14-2021 | 225,000,000 | 225,000,000 | ||||||||||||
FHLB (U.S. SOFR +0.05%) ± | 0.15 | 9-28-2020 | 420,000,000 | 420,000,000 | ||||||||||||
FHLB (1 Month LIBOR -0.03%) ± | 0.15 | 2-11-2021 | 500,000,000 | 499,962,567 | ||||||||||||
FHLB (1 Month LIBOR -0.03%) ± | 0.15 | 2-12-2021 | 163,000,000 | 162,975,691 | ||||||||||||
FHLB (1 Month LIBOR -0.03%) ± | 0.15 | 3-24-2021 | 125,000,000 | 124,972,962 | ||||||||||||
FHLB (U.S. SOFR +0.05%) ± | 0.15 | 1-28-2021 | 260,000,000 | 260,000,000 | ||||||||||||
FHLB (3 Month LIBOR -0.12%) ± | 0.15 | 4-30-2021 | 200,000,000 | 200,000,000 | ||||||||||||
FHLB (1 Month LIBOR -0.01%) ± | 0.16 | 5-3-2021 | 83,800,000 | 83,783,655 | ||||||||||||
FHLB (1 Month LIBOR +0.00%) ± | 0.17 | 10-26-2020 | 268,800,000 | 268,799,126 | ||||||||||||
FHLB (3 Month LIBOR -0.14%) ± | 0.17 | 12-18-2020 | 14,010,000 | 14,006,469 | ||||||||||||
FHLB (U.S. SOFR +0.08%) ± | 0.18 | 6-11-2021 | 713,000,000 | 712,834,940 | ||||||||||||
FHLB (U.S. SOFR +0.08%) ± | 0.18 | 3-4-2021 | 648,000,000 | 647,972,347 | ||||||||||||
FHLB (1 Month LIBOR +0.01%) ± | 0.18 | 9-28-2021 | 425,000,000 | 425,000,000 | ||||||||||||
FHLB (U.S. SOFR +0.09%) ± | 0.19 | 9-11-2020 | 779,000,000 | 779,001,700 | ||||||||||||
FHLB (1 Month LIBOR +0.00%) ± | 0.19 | 11-20-2020 | 109,000,000 | 108,971,930 | ||||||||||||
FHLB (U.S. SOFR +0.09%) ± | 0.19 | 12-4-2020 | 154,000,000 | 153,994,745 | ||||||||||||
FHLB (1 Month LIBOR +0.02%) ± | 0.19 | 7-14-2021 | 50,000,000 | 50,000,000 | ||||||||||||
FHLB | 0.20 | 1-19-2021 | 200,000,000 | 200,001,208 | ||||||||||||
FHLB (1 Month LIBOR +0.02%) ± | 0.21 | 3-19-2021 | 101,000,000 | 101,014,163 | ||||||||||||
FHLB (U.S. SOFR +0.11%) ± | 0.21 | 12-10-2020 | 300,000,000 | 300,000,000 | ||||||||||||
FHLB (U.S. SOFR +0.12%) ± | 0.22 | 2-10-2022 | 48,000,000 | 48,000,000 | ||||||||||||
FHLB (3 Month LIBOR -0.10%) ± | 0.22 | 9-13-2021 | 48,535,000 | 48,486,560 | ||||||||||||
FHLB (U.S. SOFR +0.12%) ± | 0.22 | 12-11-2020 | 300,000,000 | 300,000,000 | ||||||||||||
FHLB (U.S. SOFR +0.12%) ± | 0.22 | 12-15-2020 | 300,000,000 | 300,000,000 | ||||||||||||
FHLB (U.S. SOFR +0.13%) ± | 0.23 | 10-16-2020 | 250,000,000 | 250,000,000 | ||||||||||||
FHLB (1 Month LIBOR +0.07%) ± | 0.25 | 1-22-2021 | 192,000,000 | 192,066,597 | ||||||||||||
FHLB (U.S. SOFR +0.17%) ± | 0.27 | 4-9-2021 | 189,000,000 | 189,000,000 | ||||||||||||
FHLB (3 Month LIBOR -0.08%) ± | 0.28 | 8-24-2021 | 24,520,000 | 24,541,396 | ||||||||||||
FHLB (z) | 0.29 | 9-1-2020 | 350,000,000 | 349,918,236 | ||||||||||||
FHLB (z) | 0.30 | 10-5-2020 | 100,000,000 | 99,947,500 | ||||||||||||
FHLB (z) | 0.30 | 10-26-2020 | 100,000,000 | 99,930,000 | ||||||||||||
FHLB (U.S. SOFR +0.21%) ± | 0.31 | 9-25-2020 | 600,000,000 | 600,026,363 | ||||||||||||
FHLB (U.S. SOFR +0.23%) ± | 0.33 | 9-25-2020 | 400,000,000 | 400,000,000 | ||||||||||||
FHLB (U.S. SOFR +0.24%) ± | 0.34 | 12-24-2020 | 200,000,000 | 200,000,000 | ||||||||||||
FHLB (U.S. SOFR +0.27%) ± | 0.37 | 7-14-2021 | 300,000,000 | 300,000,000 | ||||||||||||
FHLB (U.S. SOFR +0.31%) ± | 0.41 | 9-24-2021 | 150,000,000 | 150,000,000 | ||||||||||||
FHLB (z) | 0.42 | 12-14-2020 | 200,000,000 | 199,689,667 | ||||||||||||
FHLB (3 Month LIBOR -0.12%) ± | 0.44 | 5-3-2021 | 200,000,000 | 200,000,000 | ||||||||||||
FHLB (U.S. SOFR +0.35%) ± | 0.45 | 3-28-2022 | 50,000,000 | 50,000,000 | ||||||||||||
FHLB (3 Month LIBOR -0.11%) ± | 0.45 | 8-4-2021 | 56,040,000 | 56,069,539 | ||||||||||||
FHLB (z) | 0.46 | 9-9-2020 | 600,000,000 | 599,716,848 | ||||||||||||
FHLB (z) | 0.92 | 9-2-2020 | 100,000,000 | 99,923,333 | ||||||||||||
FHLB (z) | 1.10 | 8-17-2020 | 100,000,000 | 99,957,417 | ||||||||||||
FHLB (z) | 1.14 | 8-3-2020 | 88,000,000 | 88,000,000 | ||||||||||||
FHLB | 1.50 | 2-18-2021 | 25,000,000 | 24,994,712 | ||||||||||||
FHLB (z) | 1.55 | 8-12-2020 | 50,000,000 | 49,980,750 |
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 11
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Government Agency Debt (continued) | ||||||||||||||||
FHLB (z) | 1.61 | % | 8-4-2020 | $ | 50,000,000 | $ | 49,997,792 | |||||||||
FHLMC (U.S. SOFR +0.04%) ± | 0.14 | 9-10-2020 | 476,000,000 | 475,980,011 | ||||||||||||
FHLMC (U.S. SOFR +0.05%) ± | 0.15 | 8-27-2021 | 190,000,000 | 189,807,018 | ||||||||||||
FHLMC (U.S. SOFR +0.14%) ± | 0.24 | 4-22-2022 | 648,000,000 | 648,000,000 | ||||||||||||
FHLMC (U.S. SOFR +0.19%) ± | 0.29 | 6-3-2022 | 200,000,000 | 200,000,000 | ||||||||||||
FHLMC (U.S. SOFR +0.32%) ± | 0.42 | 9-23-2021 | 250,000,000 | 250,000,000 | ||||||||||||
FHLMC | 1.88 | 11-17-2020 | 328,834,000 | 329,034,032 | ||||||||||||
FNMA (U.S. SOFR +0.07%) ± | 0.17 | 12-11-2020 | 200,000,000 | 200,000,000 | ||||||||||||
FNMA (U.S. SOFR +0.10%) ± | 0.20 | 9-7-2021 | 50,000,000 | 49,983,348 | ||||||||||||
FNMA (U.S. SOFR +0.17%) ± | 0.27 | 3-9-2022 | 100,000,000 | 100,000,000 | ||||||||||||
FNMA (U.S. SOFR +0.18%) ± | 0.28 | 6-3-2022 | 200,000,000 | 200,000,000 | ||||||||||||
FNMA (U.S. SOFR +0.20%) ± | 0.30 | 6-15-2022 | 200,000,000 | 200,000,000 | ||||||||||||
FNMA (U.S. SOFR +0.22%) ± | 0.32 | 3-16-2022 | 200,000,000 | 200,000,000 | ||||||||||||
FNMA (U.S. SOFR +0.23%) ± | 0.33 | 5-6-2022 | 200,000,000 | 200,106,658 | ||||||||||||
FNMA (U.S. SOFR +0.27%) ± | 0.37 | 6-24-2021 | 200,000,000 | 200,000,000 | ||||||||||||
FNMA (U.S. SOFR +0.30%) ± | 0.40 | 1-27-2022 | 200,000,000 | 200,000,000 | ||||||||||||
FNMA (U.S. SOFR +0.30%) ± | 0.40 | 4-28-2022 | 300,000,000 | 300,000,000 | ||||||||||||
FNMA (U.S. SOFR +0.32%) ± | 0.42 | 4-28-2022 | 200,000,000 | 200,000,000 | ||||||||||||
FNMA (U.S. SOFR +0.34%) ± | 0.44 | 1-21-2022 | 200,000,000 | 200,000,000 | ||||||||||||
FNMA (U.S. SOFR +0.35%) ± | 0.45 | 10-15-2021 | 300,000,000 | 300,000,000 | ||||||||||||
FNMA (U.S. SOFR +0.35%) ± | 0.45 | 4-7-2022 | 400,000,000 | 400,000,000 | ||||||||||||
FNMA (U.S. SOFR +0.36%) ± | 0.46 | 1-20-2022 | 300,000,000 | 300,000,000 | ||||||||||||
FNMA (U.S. SOFR +0.37%) ± | 0.47 | 3-30-2022 | 250,000,000 | 250,000,000 | ||||||||||||
FNMA (U.S. SOFR +0.39%) ± | 0.49 | 4-15-2022 | 450,000,000 | 450,000,000 | ||||||||||||
FNMA | 1.50 | 11-30-2020 | 25,000,000 | 24,988,198 | ||||||||||||
Overseas Private Investment Corporation (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.20 | 1-20-2027 | 68,000,000 | 68,000,000 | ||||||||||||
Overseas Private Investment Corporation (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.18 | 7-9-2026 | 56,361,000 | 56,361,000 | ||||||||||||
Overseas Private Investment Corporation (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.18 | 1-15-2030 | 14,339,623 | 14,339,623 | ||||||||||||
Overseas Private Investment Corporation (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.20 | 11-15-2022 | 13,562,500 | 13,562,500 | ||||||||||||
Overseas Private Investment Corporation (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.20 | 11-15-2023 | 17,500,000 | 17,500,000 | ||||||||||||
Overseas Private Investment Corporation (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.20 | 11-15-2025 | 6,600,000 | 6,600,000 | ||||||||||||
Overseas Private Investment Corporation (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.20 | 8-15-2026 | 1,457,504 | 1,457,504 | ||||||||||||
Overseas Private Investment Corporation (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.20 | 7-19-2027 | 9,333,333 | 9,333,333 | ||||||||||||
Overseas Private Investment Corporation (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.20 | 9-20-2027 | 25,000,000 | 25,000,000 | ||||||||||||
Overseas Private Investment Corporation (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.20 | 3-15-2030 | 18,000,000 | 18,000,000 | ||||||||||||
Overseas Private Investment Corporation (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.20 | 6-28-2032 | 28,359,768 | 28,359,768 | ||||||||||||
Overseas Private Investment Corporation (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.20 | 10-15-2032 | 20,228,205 | 20,228,205 | ||||||||||||
Overseas Private Investment Corporation (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.20 | 6-15-2034 | 16,628,633 | 16,628,633 | ||||||||||||
Overseas Private Investment Corporation (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.20 | 1-20-2035 | 12,000,000 | 12,000,000 | ||||||||||||
Overseas Private Investment Corporation (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.20 | 1-20-2035 | 10,400,000 | 10,400,000 |
The accompanying notes are an integral part of these financial statements.
12 | Government Money Market Funds
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Government Agency Debt (continued) | ||||||||||||||||
Overseas Private Investment Corporation (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.20 | % | 1-20-2035 | $ | 9,900,000 | $ | 9,900,000 | |||||||||
Overseas Private Investment Corporation (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.20 | 1-20-2035 | 4,000,000 | 4,000,000 | ||||||||||||
Overseas Private Investment Corporation (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.20 | 4-20-2035 | 17,500,000 | 17,500,000 | ||||||||||||
Overseas Private Investment Corporation (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.20 | 4-20-2035 | 5,000,000 | 5,000,000 | ||||||||||||
Overseas Private Investment Corporation (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.20 | 4-20-2035 | 5,000,000 | 5,000,000 | ||||||||||||
Overseas Private Investment Corporation (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.20 | 10-15-2039 | 14,965,000 | 14,965,000 | ||||||||||||
Overseas Private Investment Corporation (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.20 | 10-15-2039 | 15,000,000 | 15,000,000 | ||||||||||||
Overseas Private Investment Corporation (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.20 | 7-7-2040 | 19,429,200 | 19,429,200 | ||||||||||||
Overseas Private Investment Corporation (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.20 | 7-7-2040 | 8,354,556 | 8,354,556 | ||||||||||||
Overseas Private Investment Corporation (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.20 | 7-7-2040 | 14,086,170 | 14,086,170 | ||||||||||||
Overseas Private Investment Corporation (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.20 | 7-7-2040 | 10,686,060 | 10,686,060 | ||||||||||||
Overseas Private Investment Corporation (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.20 | 10-15-2040 | 7,000,000 | 7,000,000 | ||||||||||||
Overseas Private Investment Corporation (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.22 | 7-15-2026 | 6,668,000 | 6,668,000 | ||||||||||||
Overseas Private Investment Corporation (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.22 | 9-2-2031 | 10,932,150 | 10,932,150 | ||||||||||||
Overseas Private Investment Corporation (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.22 | 9-2-2031 | 16,581,900 | 16,581,900 | ||||||||||||
Overseas Private Investment Corporation (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.22 | 9-2-2031 | 12,489,900 | 12,489,900 | ||||||||||||
Overseas Private Investment Corporation (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.22 | 9-2-2031 | 10,927,500 | 10,927,500 | ||||||||||||
Overseas Private Investment Corporation (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.22 | 9-2-2031 | 18,600,000 | 18,600,000 | ||||||||||||
Overseas Private Investment Corporation (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.22 | 9-30-2031 | 10,857,230 | 10,857,230 | ||||||||||||
Overseas Private Investment Corporation (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.22 | 12-20-2031 | 35,000,000 | 35,000,000 | ||||||||||||
Overseas Private Investment Corporation (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.22 | 5-15-2033 | 3,693,205 | 3,693,205 | ||||||||||||
Overseas Private Investment Corporation (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.22 | 7-5-2038 | 8,150,000 | 8,150,000 | ||||||||||||
Overseas Private Investment Corporation (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.22 | 1-15-2040 | 11,808,000 | 11,808,000 | ||||||||||||
Overseas Private Investment Corporation (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.22 | 1-15-2040 | 7,872,000 | 7,872,000 | ||||||||||||
Overseas Private Investment Corporation (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.22 | 7-15-2040 | 19,462,200 | 19,462,200 | ||||||||||||
Overseas Private Investment Corporation Series 1 (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.20 | 8-15-2026 | 27,401,075 | 27,401,075 | ||||||||||||
Overseas Private Investment Corporation Series 1 (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.22 | 9-30-2031 | 4,274,500 | 4,274,500 | ||||||||||||
Overseas Private Investment Corporation Series 1 (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.22 | 1-15-2040 | 19,680,000 | 19,680,000 |
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 13
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Government Agency Debt (continued) | ||||||||||||||||
Overseas Private Investment Corporation Series 2 (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.20 | % | 10-10-2025 | $ | 5,255,190 | $ | 5,255,190 | |||||||||
Overseas Private Investment Corporation Series 2 (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.20 | 9-20-2038 | 3,773,157 | 3,773,157 | ||||||||||||
Overseas Private Investment Corporation Series 2 (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.22 | 9-30-2031 | 10,002,330 | 10,002,330 | ||||||||||||
Overseas Private Investment Corporation Series 2-2 (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.22 | 7-15-2040 | 6,846,000 | 6,846,000 | ||||||||||||
Overseas Private Investment Corporation Series 3 (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.20 | 10-10-2025 | 6,831,747 | 6,831,747 | ||||||||||||
Overseas Private Investment Corporation Series 3 (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.22 | 7-15-2026 | 8,735,080 | 8,735,080 | ||||||||||||
Overseas Private Investment Corporation Series 4 (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.20 | 11-15-2033 | 21,880,342 | 21,880,342 | ||||||||||||
Overseas Private Investment Corporation Series 4 (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.20 | 1-20-2035 | 9,000,000 | 9,000,000 | ||||||||||||
Overseas Private Investment Corporation Series 4 (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.22 | 9-2-2031 | 3,255,000 | 3,255,000 | ||||||||||||
Overseas Private Investment Corporation Series 4 (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.22 | 9-30-2031 | 5,813,320 | 5,813,320 | ||||||||||||
Overseas Private Investment Corporation Series 5 (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.22 | 9-30-2031 | 5,984,300 | 5,984,300 | ||||||||||||
Overseas Private Investment Corporation Series 6 (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.20 | 4-20-2035 | 8,900,000 | 8,900,000 | ||||||||||||
Overseas Private Investment Corporation Series 6 (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.20 | 7-7-2040 | 4,760,154 | 4,760,154 | ||||||||||||
Overseas Private Investment Corporation Series 6 (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.22 | 9-30-2031 | 17,354,470 | 17,354,470 | ||||||||||||
Overseas Private Investment Corporation Series 7 (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.20 | 1-20-2035 | 2,900,000 | 2,900,000 | ||||||||||||
Overseas Private Investment Corporation Series 7 (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.22 | 9-30-2031 | 6,839,200 | 6,839,200 | ||||||||||||
Overseas Private Investment Corporation Series 8 (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.22 | 9-30-2031 | 12,823,500 | 12,823,500 | ||||||||||||
Overseas Private Investment Corporation Series 9 (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.20 | 5-15-2030 | 22,338,000 | 22,338,000 | ||||||||||||
Overseas Private Investment Corporation Series 9 (U.S. Treasury 3 Month Bill +0.00%) ±§ | 0.22 | 9-30-2031 | 3,982,780 | 3,982,780 | ||||||||||||
Total Government Agency Debt (Cost $34,034,352,535) | 34,034,352,535 | |||||||||||||||
|
| |||||||||||||||
Municipal Obligations: 1.14% | ||||||||||||||||
California: 0.26% | ||||||||||||||||
Variable Rate Demand Notes ø: 0.26% | ||||||||||||||||
Association of Bay Area Governments Finance Authority for Nonprofit Corporation California Crossing Apartments Series A (Housing Revenue, FNMA LOC, FNMA LIQ) | 0.13 | 12-15-2037 | 64,450,000 | 64,450,000 | ||||||||||||
California CDA MFHR Bay Vista Meadow Park Project (Housing Revenue, FNMA LOC, FNMA LIQ) | 0.13 | 11-15-2037 | 28,920,000 | 28,920,000 | ||||||||||||
California Statewide Community Development Authority Uptown Newport Apartments Series 2017 AA & BB (Housing Revenue, FHLB LOC) | 0.21 | 3-1-2057 | 28,200,000 | 28,200,000 | ||||||||||||
California Statewide Community Development Authority Wilshire Court Apartments Series M (Housing Revenue, FNMA LOC, FNMA LIQ) | 0.13 | 5-15-2037 | 20,290,000 | 20,290,000 |
The accompanying notes are an integral part of these financial statements.
14 | Government Money Market Funds
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Variable Rate Demand Notes ø (continued) | ||||||||||||||||
Chula Vista CA Teresina Apartments Series A (Housing Revenue, FNMA LOC, FNMA LIQ) | 0.12 | % | 5-15-2036 | $ | 37,940,000 | $ | 37,940,000 | |||||||||
Contra Costa County MFHR (Housing Revenue, FNMA LOC, FNMA LIQ) | 0.12 | 10-15-2033 | 50,000,000 | 50,000,000 | ||||||||||||
Richmond CA Baycliff Apartments Series A (Housing Revenue, FNMA LOC, FNMA LIQ) | 0.13 | 8-15-2037 | 26,490,000 | 26,490,000 | ||||||||||||
San Francisco CA City & County RDA (Housing Revenue, FNMA LOC) | 0.12 | 6-15-2034 | 100,000,000 | 100,000,000 | ||||||||||||
Santa Cruz CA Redevelopment Agency 1010 Pacific Investers LP Series B (Housing Revenue, FNMA LOC, FNMA LIQ) | 0.13 | 8-15-2035 | 19,495,000 | 19,495,000 | ||||||||||||
375,785,000 | ||||||||||||||||
|
| |||||||||||||||
Florida: 0.01% | ||||||||||||||||
Variable Rate Demand Note ø: 0.01% | ||||||||||||||||
Orange County HFA Post Fountains Project (Housing Revenue, FNMA Insured, FNMA LIQ) | 0.13 | 6-1-2025 | 15,170,000 | 15,170,000 | ||||||||||||
|
| |||||||||||||||
Louisiana: 0.02% | ||||||||||||||||
Variable Rate Demand Notes ø: 0.02% | ||||||||||||||||
Louisiana HFA Canterbury House Apartments (Housing Revenue, FNMA LOC) | 0.15 | 9-15-2040 | 14,220,000 | 14,220,000 | ||||||||||||
Louisiana Public Facilities Authority MFHR River View Apartments Project (Housing Revenue, FHLMC LOC) | 0.13 | 4-1-2036 | 11,350,000 | 11,350,000 | ||||||||||||
25,570,000 | ||||||||||||||||
|
| |||||||||||||||
Minnesota: 0.04% | ||||||||||||||||
Variable Rate Demand Notes ø: 0.04% | ||||||||||||||||
Bloomington MN Presbyterian Homes Project Series 2008 (Health Revenue, FHLMC LIQ) | 0.15 | 7-1-2038 | 12,935,000 | 12,935,000 | ||||||||||||
Edina MN Edina Park Plaza Project Series 1999 (Housing Revenue, FHLMC LIQ) | 0.13 | 12-1-2029 | 4,000,000 | 4,000,000 | ||||||||||||
Hennepin County Housing & RDA Stone Arch Apartments Project (Housing Revenue, FNMA LOC, FNMA LIQ) | 0.20 | 4-15-2035 | 17,215,000 | 17,215,000 | ||||||||||||
Inver Grove Heights MN Inver Grove Incorporated Project Series 2005 (Housing Revenue, FNMA LOC, FNMA LIQ) | 0.15 | 5-15-2035 | 16,175,000 | 16,175,000 | ||||||||||||
Roseville MN Senior Housing Various Refunding Bonds Eaglecrest Project (Housing Revenue, FHLMC LOC) | 0.15 | 7-1-2039 | 9,075,000 | 9,075,000 | ||||||||||||
59,400,000 | ||||||||||||||||
|
| |||||||||||||||
Nebraska: 0.02% | ||||||||||||||||
Variable Rate Demand Note ø: 0.02% | ||||||||||||||||
Nebraska Investment Finance Authority Single Family Housing Series F (Housing Revenue, GNMA/FNMA/FHLMC Insured, FHLB SPA) | 0.18 | 3-1-2038 | 20,155,000 | 20,155,000 | ||||||||||||
|
| |||||||||||||||
New York: 0.57% | ||||||||||||||||
Variable Rate Demand Notes ø: 0.57% | ||||||||||||||||
New York HFA 1500 Lexington Avenue Series A (Housing Revenue, FNMA LOC, FNMA LIQ) | 0.15 | 5-15-2034 | 18,000,000 | 18,000,000 | ||||||||||||
New York HFA 316 11th Avenue Housing Series A (Housing Revenue, FNMA LOC, FNMA LIQ) | 0.16 | 5-15-2041 | 31,150,000 | 31,150,000 | ||||||||||||
New York HFA 42/9 Residential Series A (Housing Revenue, FNMA LOC, FNMA LIQ) | 0.16 | 11-15-2033 | 26,600,000 | 26,600,000 | ||||||||||||
New York HFA 55 West 25th Street Series A (Housing Revenue, FNMA LOC) | 0.14 | 11-15-2038 | 142,100,000 | 142,100,000 |
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 15
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Variable Rate Demand Notes ø (continued) | ||||||||||||||||
New York HFA 750 6th Avenue Series A (Housing Revenue, FNMA LOC, FNMA LIQ) | 0.16 | % | 5-15-2031 | $ | 22,600,000 | $ | 22,600,000 | |||||||||
New York HFA Eleventh Avenue Housing Project Series A (Housing Revenue, FNMA LOC, FNMA LIQ) | 0.16 | 5-15-2041 | 53,870,000 | 53,870,000 | ||||||||||||
New York HFA MFHR Second Mortgage Series A (Housing Revenue, FNMA LOC, FNMA LIQ) | 0.14 | 5-1-2029 | 51,895,000 | 51,895,000 | ||||||||||||
New York HFA Saville Housing 2002 Series A (Housing Revenue, FNMA LIQ) | 0.14 | 11-1-2035 | 55,000,000 | 55,000,000 | ||||||||||||
New York HFA Theater Row Series A (Housing Revenue, FHLMC LOC, FHLMC LIQ) | 0.24 | 11-1-2032 | 14,800,000 | 14,800,000 | ||||||||||||
New York HFA Tribeca Pointe LLC Series A (Housing Revenue, FNMA LOC, FHLMC LIQ) | 0.16 | 5-15-2029 | 29,400,000 | 29,400,000 | ||||||||||||
New York HFA Tribeca Pointe LLC Series A (Housing Revenue, FNMA LOC, FNMA LIQ) | 0.22 | 11-15-2029 | 32,900,000 | 32,900,000 | ||||||||||||
New York HFA West 23rd Street Series 2002-A (Housing Revenue, FNMA LOC, FNMA LIQ) | 0.13 | 5-15-2033 | 41,700,000 | 41,700,000 | ||||||||||||
New York HFA Worth Street Series A (Housing Revenue, FNMA LOC, FNMA LIQ) | 0.16 | 5-15-2033 | 33,300,000 | 33,300,000 | ||||||||||||
New York Housing Development Corporation Sierra Series A (Housing Revenue, FNMA LOC) | 0.14 | 3-15-2033 | 56,000,000 | 56,000,000 | ||||||||||||
New York NY Housing Development Corporation 89 Murray Street Series A (Housing Revenue, FNMA LOC) | 0.14 | 6-15-2039 | 44,250,000 | 44,250,000 | ||||||||||||
New York NY Housing Development Corporation Brittany Development Series A (Housing Revenue, FNMA LOC, FNMA Insured) | 0.14 | 6-15-2029 | 19,200,000 | 19,200,000 | ||||||||||||
New York NY Housing Development Corporation Multifamily Rental Housing Lyric Development Series A (Housing Revenue, FNMA LOC, FNMA LIQ) | 0.14 | 11-15-2031 | 24,800,000 | 24,800,000 | ||||||||||||
New York NY Housing Development Corporation Multifamily Rental Housing Westport Development Series A (Housing Revenue, FNMA LOC) | 0.14 | 6-15-2034 | 65,000,000 | 65,000,000 | ||||||||||||
New York NY Housing Development Corporation Royal Properties Series A (Housing Revenue, FNMA LOC) | 0.12 | 4-15-2035 | 20,490,000 | 20,490,000 | ||||||||||||
New York NY Housing Development Corporation West 89th Street Series A (Housing Revenue, FNMA LOC, FHLMC LIQ) | 0.16 | 11-15-2029 | 27,000,000 | 27,000,000 | ||||||||||||
New York State 240 East 39th Street Housing (Housing Revenue, FNMA Insured) (Housing Revenue, FNMA LOC, FNMA LIQ) | 0.14 | 5-15-2030 | 6,800,000 | 6,800,000 | ||||||||||||
816,855,000 | ||||||||||||||||
|
| |||||||||||||||
Ohio: 0.01% | ||||||||||||||||
Variable Rate Demand Note ø: 0.01% | ||||||||||||||||
Ohio HFA Mortgage Backed Securities Program Series H (Housing Revenue, GNMA/FNMA/FHLMC Insured, FHLB SPA) | 0.17 | 3-1-2036 | 15,930,000 | 15,930,000 | ||||||||||||
|
| |||||||||||||||
Other: 0.11% | ||||||||||||||||
Variable Rate Demand Notes ø: 0.11% | ||||||||||||||||
FHLMC MFHR Series M004 Class A (Housing Revenue, FHLMC LIQ) ±± | 0.27 | 1-15-2042 | 36,103,514 | 36,103,514 | ||||||||||||
FHLMC MFHR Series M006 Class A (Housing Revenue, FHLMC LIQ) ±± | 0.27 | 10-15-2045 | 12,952,746 | 12,952,746 | ||||||||||||
FHLMC MFHR Series M028 (Housing Revenue, FHLMC LIQ) 144A | 0.21 | 9-15-2024 | 44,790,000 | 44,790,000 | ||||||||||||
Steadfast Crestavilla LLC Series A (Health Revenue, FHLB LOC) | 0.22 | 2-1-2056 | 40,560,000 | 40,560,000 | ||||||||||||
Steadfast Crestavilla LLC Series B (Health Revenue, FHLB LOC) | 0.22 | 2-1-2056 | 27,040,000 | 27,040,000 | ||||||||||||
161,446,260 | ||||||||||||||||
|
|
The accompanying notes are an integral part of these financial statements.
16 | Government Money Market Funds
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Texas: 0.02% | ||||||||||||||||
Variable Rate Demand Notes ø: 0.02% | ||||||||||||||||
Harris County Housing Finance Corporation Lafayette Village Apartments (Housing Revenue, FNMA LOC, FNMA LIQ) | 0.13 | % | 6-15-2038 | $ | 11,915,000 | $ | 11,915,000 | |||||||||
Texas Department of Housing & Community Affairs Reading Road Apartments Series A (Housing Revenue, FHLMC LOC, FHLMC LIQ) | 0.14 | 7-1-2036 | 7,450,000 | 7,450,000 | ||||||||||||
Texas Department of Housing & Community Affairs Windshire Apartments (Housing Revenue, FNMA LOC, FNMA LIQ) | 0.13 | 1-15-2041 | 10,000,000 | 10,000,000 | ||||||||||||
29,365,000 | ||||||||||||||||
|
| |||||||||||||||
Virginia: 0.02% | ||||||||||||||||
Variable Rate Demand Note ø: 0.02% | ||||||||||||||||
Alexandria VA Redevelopment & Housing Authority Fairfield Village Square Project Series A (Housing Revenue, FNMA LOC, FNMA LIQ) | 0.13 | 1-15-2039 | 21,720,000 | 21,720,000 | ||||||||||||
|
| |||||||||||||||
Washington: 0.06% | ||||||||||||||||
Variable Rate Demand Notes ø: 0.06% | ||||||||||||||||
Washington Housing Finance Commission Artspace Everett Lofts Series B (Housing Revenue, FHLB LIQ) | 0.13 | 12-1-2041 | 2,300,000 | 2,300,000 | ||||||||||||
Washington Housing Finance Commission Queen Anne Project Series A (Housing Revenue, FNMA LOC, FNMA LIQ) | 0.13 | 9-1-2038 | 27,180,000 | 27,180,000 | ||||||||||||
Washington Housing Finance Commission Seasons Apartments Project (Housing Revenue, FNMA LOC, FNMA LIQ) | 0.20 | 12-15-2040 | 20,190,000 | 20,190,000 | ||||||||||||
Washington Housing Finance Commission Vintage Spokane Project Series A (Miscellaneous Revenue, FNMA LOC, FNMA LIQ) | 0.13 | 8-15-2040 | 16,295,000 | 16,295,000 | ||||||||||||
Washington Housing Finance Commission Multifamily Fairwinds Redmond Senior Living Apartments Project (Housing Revenue, FHLB LOC) | 0.13 | 7-1-2041 | 19,250,000 | 19,250,000 | ||||||||||||
85,215,000 | ||||||||||||||||
|
| |||||||||||||||
Total Municipal Obligations (Cost $1,626,611,260) | 1,626,611,260 | |||||||||||||||
|
| |||||||||||||||
Other Instruments: 0.16% | ||||||||||||||||
ASC Admiral Way LLC §øø | 0.22 | 8-1-2056 | 22,270,000 | 22,270,000 | ||||||||||||
ASC Mercer Island LLC §øø | 0.22 | 6-1-2057 | 33,900,000 | 33,900,000 | ||||||||||||
Brandon Place Partners Series 2018 §øø | 0.22 | 12-1-2058 | 15,335,000 | 15,335,000 | ||||||||||||
Hacienda Senior Villas Series C §øø | 0.22 | 12-1-2058 | 18,050,000 | 18,050,000 | ||||||||||||
La Mesa Senior Living LP §øø | 0.22 | 8-1-2057 | 25,925,000 | 25,925,000 | ||||||||||||
Plaza Patria Court Limited §øø | 0.22 | 12-1-2058 | 17,115,000 | 17,115,000 | ||||||||||||
ROC III California Crossings Chino Hills LLC Series A §øø | 0.22 | 1-1-2057 | 39,660,000 | 39,660,000 | ||||||||||||
ROC III California Crossings Chino Hills LLC Series B §øø | 0.22 | 1-1-2057 | 26,440,000 | 26,440,000 | ||||||||||||
Rohnert Park 668 LP Series A §øø | 0.22 | 6-1-2058 | 20,920,000 | 20,920,000 | ||||||||||||
Southside Brookshore §øø | 0.22 | 9-1-2059 | 5,000,000 | 5,000,000 | ||||||||||||
Total Other Instruments (Cost $224,615,000) | 224,615,000 | |||||||||||||||
|
| |||||||||||||||
Other Notes: 0.01% | ||||||||||||||||
Corporate Bonds and Notes: 0.01% | ||||||||||||||||
Mitchell 2019 Irrevocable Life Insurance Trust § | 0.22 | 9-1-2059 | 18,495,000 | 18,495,000 | ||||||||||||
|
| |||||||||||||||
Total Other Notes (Cost $18,495,000) | 18,495,000 | |||||||||||||||
|
|
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 17
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Repurchase Agreements: 37.02% | ||||||||||||||||
ANZ Bank New Zealand, dated 7-31-2020, maturity value $850,006,782 (1) | 0.10 | % | 8-3-2020 | $ | 849,999,699 | $ | 849,999,699 | |||||||||
Bank of America Corporation, dated 7-31-2020, maturity value $1,000,008,333 (2) | 0.10 | 8-3-2020 | 1,000,000,000 | 1,000,000,000 | ||||||||||||
Bank of Montreal, dated 7-27-2020, maturity value $150,003,208 (3) | 0.11 | 8-3-2020 | 150,000,000 | 150,000,000 | ||||||||||||
Bank of Montreal, dated 7-31-2020, maturity value $140,000,583 (4) | 0.05 | 8-3-2020 | 140,000,000 | 140,000,000 | ||||||||||||
Bank of Montreal, dated 7-31-2020, maturity value $700,005,833 (5) | 0.10 | 8-3-2020 | 700,000,000 | 700,000,000 | ||||||||||||
Bank of Montreal, dated 7-31-2020, maturity value $75,000,625 (6) | 0.10 | 8-3-2020 | 75,000,000 | 75,000,000 | ||||||||||||
Barclays Capital Incorporated, dated 7-27-2020, maturity value $250,005,347 (7) | 0.11 | 8-3-2020 | 250,000,000 | 250,000,000 | ||||||||||||
Barclays Capital Incorporated, dated 7-28-2020, maturity value $250,005,347 (8) | 0.11 | 8-4-2020 | 250,000,000 | 250,000,000 | ||||||||||||
Barclays Capital Incorporated, dated 7-30-2020, maturity value $500,009,722 (9) | 0.10 | 8-6-2020 | 500,000,000 | 500,000,000 | ||||||||||||
Barclays Capital Incorporated, dated 7-31-2020, maturity value $1,000,006,667 (10) | 0.08 | 8-3-2020 | 1,000,000,000 | 1,000,000,000 | ||||||||||||
Barclays Capital Incorporated, dated 7-31-2020, maturity value $1,080,007,200 (11) | 0.08 | 8-3-2020 | 1,080,000,000 | 1,080,000,000 | ||||||||||||
BNP Paribas Securities Corporation, dated 7-1-2020, maturity value $550,075,625 (12) | 0.15 | 8-3-2020 | 550,000,000 | 550,000,000 | ||||||||||||
BNP Paribas Securities Corporation, dated 7-23-2020, maturity value $500,057,778 (13) | 0.13 | 8-24-2020 | 500,000,000 | 500,000,000 | ||||||||||||
BNP Paribas Securities Corporation, dated 7-31-2020, maturity value $100,000,833 (14) | 0.10 | 8-3-2020 | 100,000,000 | 100,000,000 | ||||||||||||
BNP Paribas Securities Corporation, dated 7-6-2020, maturity value $650,083,958 (15) | 0.15 | 8-6-2020 | 650,000,000 | 650,000,000 | ||||||||||||
Canadian Imperial Bank of Commerce, dated 7-31-2020, maturity value $300,002,500 (16) | 0.10 | 8-3-2020 | 300,000,000 | 300,000,000 | ||||||||||||
Citibank NA, dated 7-30-2020, maturity value $250,004,861 (17) | 0.10 | 8-6-2020 | 250,000,000 | 250,000,000 | ||||||||||||
Citibank NA, dated 7-31-2020, maturity value $250,002,083 (18) | 0.10 | 8-3-2020 | 250,000,000 | 250,000,000 | ||||||||||||
Citigroup Global Markets Incorporated, dated 7-28-2020, maturity value $250,005,833 (19) | 0.12 | 8-4-2020 | 250,000,000 | 250,000,000 | ||||||||||||
Citigroup Global Markets Incorporated, dated 7-31-2020, maturity value $2,250,018,750 (20) | 0.10 | 8-3-2020 | 2,250,000,000 | 2,250,000,000 | ||||||||||||
Credit Agricole SA, dated 7-31-2020, maturity value $500,003,333 (21) | 0.08 | 8-3-2020 | 500,000,000 | 500,000,000 | ||||||||||||
Credit Agricole SA, dated 7-31-2020, maturity value $1,152,434,604 (22) | 0.10 | 8-3-2020 | 1,152,425,000 | 1,152,425,000 | ||||||||||||
Credit Suisse Group AG, dated 7-31-2020, maturity value $500,003,333 (23) | 0.08 | 8-3-2020 | 500,000,000 | 500,000,000 | ||||||||||||
Credit Suisse Group AG, dated 7-31-2020, maturity value $1,000,006,667 (24) | 0.08 | 8-3-2020 | 1,000,000,000 | 1,000,000,000 | ||||||||||||
Daiwa Capital Markets America Incorporated, dated 7-31-2020, maturity value $1,000,008,333 (25) | 0.10 | 8-3-2020 | 1,000,000,000 | 1,000,000,000 | ||||||||||||
Deutsche Bank Securities, dated 7-31-2020, maturity value $145,000,725 (26) | 0.06 | 8-3-2020 | 145,000,000 | 145,000,000 | ||||||||||||
Deutsche Bank Securities, dated 7-31-2020, maturity value $1,000,006,667 (27) | 0.08 | 8-3-2020 | 1,000,000,000 | 1,000,000,000 | ||||||||||||
Deutsche Bank Securities, dated 7-31-2020, maturity value $2,000,016,667 (28) | 0.10 | 8-3-2020 | 2,000,000,000 | 2,000,000,000 | ||||||||||||
Fixed Income Clearing Corporation, dated 7-31-2020, maturity value $855,006,413 (29) | 0.09 | 8-3-2020 | 855,000,000 | 855,000,000 | ||||||||||||
Fixed Income Clearing Corporation, dated 7-31-2020, maturity value $3,250,027,783 (30) | 0.10 | 8-3-2020 | 3,250,000,700 | 3,250,000,700 | ||||||||||||
Fixed Income Clearing Corporation, dated 7-31-2020, maturity value $1,750,014,583 (31) | 0.10 | 8-3-2020 | 1,750,000,000 | 1,750,000,000 | ||||||||||||
Fixed Income Clearing Corporation, dated 7-31-2020, maturity value $2,250,018,750 (32) | 0.10 | 8-3-2020 | 2,250,000,000 | 2,250,000,000 |
The accompanying notes are an integral part of these financial statements.
18 | Government Money Market Funds
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Repurchase Agreements (continued) | ||||||||||||||||
Fixed Income Clearing Corporation, dated 7-31-2020, maturity value $887,352,395 (33) | 0.10 | % | 8-3-2020 | $ | 887,345,000 | $ | 887,345,000 | |||||||||
Goldman Sachs & Company, dated 7-31-2020, maturity value $200,000,667 (34) | 0.04 | 8-3-2020 | 200,000,000 | 200,000,000 | ||||||||||||
ING Financial Markets LLC, dated 6-17-2020, maturity value $500,160,972 (35) | 0.19 | 8-17-2020 | 500,000,000 | 500,000,000 | ||||||||||||
ING Financial Markets LLC, dated 6-17-2020, maturity value $500,160,972 (36) | 0.19 | 8-17-2020 | 500,000,000 | 500,000,000 | ||||||||||||
ING Financial Markets LLC, dated 7-15-2020, maturity value $350,053,958 (37) | 0.15 | 8-21-2020 | 350,000,000 | 350,000,000 | ||||||||||||
ING Financial Markets LLC, dated 7-31-2020, maturity value $400,009,275 (38) | 0.10 | 8-3-2020 | 400,005,941 | 400,005,941 | ||||||||||||
ING Financial Markets LLC, dated 7-31-2020, maturity value $250,002,083 (39) | 0.10 | 8-3-2020 | 250,000,000 | 250,000,000 | ||||||||||||
JP Morgan Securities, dated 5-24-2019, maturity value $500,910,417 (40)§¢øø | 0.15 | 8-3-2020 | 500,000,000 | 500,000,000 | ||||||||||||
JP Morgan Securities, dated 7-31-2020, maturity value $500,004,167 (41) | 0.10 | 8-3-2020 | 500,000,000 | 500,000,000 | ||||||||||||
Mitsubishi Bank, dated 7-31-2020, maturity value $75,000,500 (42) | 0.08 | 8-3-2020 | 75,000,000 | 75,000,000 | ||||||||||||
Mitsubishi Bank, dated 7-31-2020, maturity value $750,006,250 (43) | 0.10 | 8-3-2020 | 750,000,000 | 750,000,000 | ||||||||||||
Mizuho Bank, dated 7-31-2020, maturity value $250,002,083 (44) | 0.10 | 8-3-2020 | 250,000,000 | 250,000,000 | ||||||||||||
MUFG Securities Canada Limited, dated 11-13-2019, maturity value $250,275,000 (45)§¢øø | 0.15 | 8-3-2020 | 250,000,000 | 250,000,000 | ||||||||||||
MUFG Securities Canada Limited, dated 7-31-2020, maturity value $3,900,032,500 (46) | 0.10 | 8-3-2020 | 3,900,000,000 | 3,900,000,000 | ||||||||||||
Nomura Securities Canada Limited, dated 7-31-2020, maturity value $3,000,025,000 (47) | 0.10 | 8-3-2020 | 3,000,000,000 | 3,000,000,000 | ||||||||||||
Prudential Insurance Company of America, dated 7-31-2020, maturity value $376,634,452 (48) | 0.11 | 8-3-2020 | 376,631,000 | 376,631,000 | ||||||||||||
Prudential Insurance Company of America, dated 7-31-2020, maturity value $207,680,904 (49) | 0.11 | 8-3-2020 | 207,679,000 | 207,679,000 | ||||||||||||
RBC Capital Markets, dated 7-29-2020, maturity value $500,009,722 (50) | 0.10 | 8-5-2020 | 500,000,000 | 500,000,000 | ||||||||||||
RBC Capital Markets, dated 7-31-2020, maturity value $200,001,167 (51) | 0.07 | 8-3-2020 | 200,000,000 | 200,000,000 | ||||||||||||
RBC Capital Markets, dated 7-31-2020, maturity value $2,750,022,917 (52) | 0.10 | 8-3-2020 | 2,750,000,000 | 2,750,000,000 | ||||||||||||
RBS Securities Incorporated, dated 7-31-2020, maturity value $250,001,875 (53) | 0.09 | 8-3-2020 | 250,000,000 | 250,000,000 | ||||||||||||
Royal Bank of Canada, dated 7-27-2020, maturity value $250,005,347 (54) | 0.11 | 8-3-2020 | 250,000,000 | 250,000,000 | ||||||||||||
Royal Bank of Canada, dated 7-29-2020, maturity value $1,450,028,194 (55) | 0.10 | 8-5-2020 | 1,450,000,000 | 1,450,000,000 | ||||||||||||
Royal Bank of Canada, dated 7-30-2020, maturity value $300,005,833 (56) | 0.10 | 8-6-2020 | 300,000,000 | 300,000,000 | ||||||||||||
Royal Bank of Canada, dated 7-31-2020, maturity value $1,250,010,417 (57) | 0.10 | 8-3-2020 | 1,250,000,000 | 1,250,000,000 | ||||||||||||
Societe Generale, dated 7-6-2020, maturity value $250,032,292 (58) | 0.15 | 8-6-2020 | 250,000,000 | 250,000,000 | ||||||||||||
Standard Chartered Bank, dated 7-31-2020, maturity value $1,500,012,500 (59) | 0.10 | 8-3-2020 | 1,500,000,000 | 1,500,000,000 | ||||||||||||
State Street Corporation, dated 7-31-2020, maturity value $1,000,008,333 (60) | 0.10 | 8-3-2020 | 1,000,000,000 | 1,000,000,000 | ||||||||||||
Sumitomo Mitsui Banking Corporation, dated 5-19-2020, maturity value $290,524,227 (61)§¢øø | 0.20 | 8-4-2020 | 290,400,000 | 290,400,000 | ||||||||||||
Sumitomo Mitsui Banking Corporation, dated 5-22-2020, maturity value $273,028,644 (62)§¢øø | 0.20 | 9-2-2020 | 272,872,500 | 272,872,500 |
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 19
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Repurchase Agreements (continued) | ||||||||||||||||
Sumitomo Mitsui Banking Corporation, dated 7-15-2020, maturity value $620,148,885 (63)§¢øø | 0.21 | % | 10-15-2020 | $ | 619,816,250 | $ | 619,816,250 | |||||||||
Sumitomo Mitsui Banking Corporation, dated 7-16-2020, maturity value $619,639,308 (64)§¢øø | 0.21 | 10-2-2020 | 619,357,500 | 619,357,500 | ||||||||||||
Sumitomo Mitsui Banking Corporation, dated 7-29-2020, maturity value $216,266,819 (65) | 0.20 | 8-12-2020 | 216,250,000 | 216,250,000 | ||||||||||||
Sumitomo Mitsui Banking Corporation, dated 7-29-2020, maturity value $436,458,944 (66) | 0.20 | 8-12-2020 | 436,425,000 | 436,425,000 | ||||||||||||
Sumitomo Mitsui Banking Corporation, dated 7-30-2020, maturity value $258,991,713 (67)§¢øø | 0.19 | 11-2-2020 | 258,868,750 | 258,868,750 | ||||||||||||
TD Securities, dated 7-31-2020, maturity value $1,000,008,333 (68) | 0.10 | 8-3-2020 | 1,000,000,000 | 1,000,000,000 | ||||||||||||
Total Repurchase Agreements (Cost $52,808,076,340) | 52,808,076,340 | |||||||||||||||
|
| |||||||||||||||
Treasury Debt: 37.84% | ||||||||||||||||
U.S. Cash Management Bill (z)%% | 0.11 | 1-5-2021 | 800,000,000 | 799,612,433 | ||||||||||||
U.S. Cash Management Bill (z) | 0.12 | 9-29-2020 | 1,100,000,000 | 1,099,736,523 | ||||||||||||
U.S. Cash Management Bill (z) | 0.13 | 12-29-2020 | 500,000,000 | 499,728,667 | ||||||||||||
U.S. Cash Management Bill (z) | 0.13 | 8-4-2020 | 1,410,000,000 | 1,409,994,728 | ||||||||||||
U.S. Cash Management Bill (z) | 0.14 | 9-8-2020 | 1,350,000,000 | 1,349,812,325 | ||||||||||||
U.S. Cash Management Bill (z) | 0.15 | 10-13-2020 | 950,000,000 | 949,726,650 | ||||||||||||
U.S. Cash Management Bill (z) | 0.15 | 12-22-2020 | 900,000,000 | 899,480,944 | ||||||||||||
U.S. Cash Management Bill (z) | 0.15 | 10-27-2020 | 1,300,000,000 | 1,299,544,763 | ||||||||||||
U.S. Cash Management Bill (z) | 0.15 | 11-10-2020 | 1,200,000,000 | 1,199,501,425 | ||||||||||||
U.S. Cash Management Bill (z) | 0.15 | 10-20-2020 | 1,400,000,000 | 1,399,537,806 | ||||||||||||
U.S. Cash Management Bill (z) | 0.16 | 12-15-2020 | 850,000,000 | 849,502,805 | ||||||||||||
U.S. Cash Management Bill (z) | 0.16 | 12-8-2020 | 800,000,000 | 799,556,382 | ||||||||||||
U.S. Cash Management Bill (z)## | 0.16 | 11-17-2020 | 1,200,000,000 | 1,199,376,388 | ||||||||||||
U.S. Cash Management Bill (z) | 0.16 | 10-6-2020 | 900,000,000 | 899,746,133 | ||||||||||||
U.S. Cash Management Bill (z) | 0.16 | 12-1-2020 | 300,000,000 | 299,838,000 | ||||||||||||
U.S. Cash Management Bill (z) | 0.16 | 11-3-2020 | 1,400,000,000 | 1,399,414,905 | ||||||||||||
U.S. Cash Management Bill (z) | 0.17 | 9-22-2020 | 400,000,000 | 399,904,583 | ||||||||||||
U.S. Cash Management Bill (z) | 0.18 | 9-15-2020 | 850,000,000 | 849,812,980 | ||||||||||||
U.S. Cash Management Bill (z) | 0.19 | 11-24-2020 | 600,000,000 | 599,650,124 | ||||||||||||
U.S. Treasury Bill (z) | 0.12 | 8-27-2020 | 1,745,000,000 | 1,744,854,929 | ||||||||||||
U.S. Treasury Bill (z) | 0.13 | 8-20-2020 | 1,450,000,000 | 1,449,912,958 | ||||||||||||
U.S. Treasury Bill (z) | 0.13 | 8-25-2020 | 1,430,000,000 | 1,429,888,832 | ||||||||||||
U.S. Treasury Bill (z) | 0.13 | 10-22-2020 | 270,000,000 | 269,922,644 | ||||||||||||
U.S. Treasury Bill (z) | 0.13 | 1-21-2021 | 500,000,000 | 499,690,063 | ||||||||||||
U.S. Treasury Bill (z) | 0.13 | 8-13-2020 | 1,100,000,000 | 1,099,959,532 | ||||||||||||
U.S. Treasury Bill (z) | 0.13 | 1-28-2021 | 605,000,000 | 604,599,179 | ||||||||||||
U.S. Treasury Bill (z) | 0.14 | 11-19-2020 | 1,000,000,000 | 999,592,000 | ||||||||||||
U.S. Treasury Bill (z) | 0.14 | 11-27-2020 | 900,000,000 | 899,605,278 | ||||||||||||
U.S. Treasury Bill (z) | 0.14 | 8-18-2020 | 1,000,000,000 | 999,942,688 | ||||||||||||
U.S. Treasury Bill (z) | 0.14 | 9-17-2020 | 800,000,000 | 799,861,500 | ||||||||||||
U.S. Treasury Bill (z) | 0.14 | 8-6-2020 | 600,000,000 | 599,992,833 | ||||||||||||
U.S. Treasury Bill (z) | 0.14 | 11-12-2020 | 1,600,000,000 | 1,599,356,756 | ||||||||||||
U.S. Treasury Bill (z) | 0.14 | 9-1-2020 | 1,200,000,000 | 1,199,860,800 | ||||||||||||
U.S. Treasury Bill (z) | 0.15 | 9-10-2020 | 1,260,530,000 | 1,260,335,987 | ||||||||||||
U.S. Treasury Bill (z) | 0.15 | 11-5-2020 | 1,300,000,000 | 1,299,499,320 | ||||||||||||
U.S. Treasury Bill (z) | 0.15 | 8-11-2020 | 1,245,000,000 | 1,244,959,009 | ||||||||||||
U.S. Treasury Bill (z) | 0.15 | 1-14-2021 | 900,000,000 | 899,368,646 | ||||||||||||
U.S. Treasury Bill (z) | 0.15 | 10-29-2020 | 750,000,000 | 749,719,425 | ||||||||||||
U.S. Treasury Bill (z) | 0.16 | 9-24-2020 | 1,200,000,000 | 1,199,724,833 | ||||||||||||
U.S. Treasury Bill (z) | 0.16 | 10-1-2020 | 950,000,000 | 949,751,709 | ||||||||||||
U.S. Treasury Bill (z) | 0.16 | 1-7-2021 | 600,000,000 | 599,581,333 |
The accompanying notes are an integral part of these financial statements.
20 | Government Money Market Funds
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Treasury Debt (continued) | ||||||||||||||||
U.S. Treasury Bill (z) | 0.17 | % | 12-31-2020 | $ | 300,000,000 | $ | 299,792,500 | |||||||||
U.S. Treasury Bill (z) | 0.17 | 12-3-2020 | 445,000,000 | 444,748,849 | ||||||||||||
U.S. Treasury Bill (z) | 0.18 | 10-8-2020 | 1,300,000,000 | 1,299,570,304 | ||||||||||||
U.S. Treasury Bill (z) | 0.18 | 10-15-2020 | 950,000,000 | 949,649,397 | ||||||||||||
U.S. Treasury Bill (z) | 0.19 | 12-10-2020 | 300,000,000 | 299,795,750 | ||||||||||||
U.S. Treasury Bill (z) | 0.19 | 12-17-2020 | 300,000,000 | 299,784,667 | ||||||||||||
U.S. Treasury Bill (z) | 0.27 | 9-3-2020 | 930,000,000 | 929,788,012 | ||||||||||||
U.S. Treasury Note (U.S. Treasury 3 Month Bill Money Market Yield +0.05%) ± | 0.15 | 10-31-2020 | 390,000,000 | 389,925,062 | ||||||||||||
U.S. Treasury Note (U.S. Treasury 3 Month Bill Money Market Yield +0.12%) ± | 0.22 | 1-31-2021 | 1,120,000,000 | 1,119,791,624 | ||||||||||||
U.S. Treasury Note (U.S. Treasury 3 Month Bill Money Market Yield +0.14%) ± | 0.24 | 4-30-2021 | 920,000,000 | 919,976,821 | ||||||||||||
U.S. Treasury Note (U.S. Treasury 3 Month Bill Money Market Yield +0.22%) ± | 0.33 | 7-31-2021 | 120,017,000 | 120,001,659 | ||||||||||||
U.S. Treasury Note (U.S. Treasury 3 Month Bill Money Market Yield +0.30%) ± | 0.41 | 10-31-2021 | 740,000,000 | 740,390,867 | ||||||||||||
U.S. Treasury Note | 1.13 | 2-28-2021 | 110,000,000 | 110,330,201 | ||||||||||||
U.S. Treasury Note | 1.13 | 7-31-2021 | 120,000,000 | 121,192,344 | ||||||||||||
U.S. Treasury Note | 1.38 | 8-31-2020 | 193,613,000 | 193,547,185 | ||||||||||||
U.S. Treasury Note | 1.38 | 9-15-2020 | 70,000,000 | 69,977,138 | ||||||||||||
U.S. Treasury Note | 1.38 | 9-30-2020 | 200,000,000 | 199,954,481 | ||||||||||||
U.S. Treasury Note | 1.38 | 10-31-2020 | 100,000,000 | 99,940,277 | ||||||||||||
U.S. Treasury Note | 1.50 | 8-15-2020 | 50,000,000 | 50,006,574 | ||||||||||||
U.S. Treasury Note | 1.63 | 10-15-2020 | 250,000,000 | 250,003,092 | ||||||||||||
U.S. Treasury Note | 1.63 | 11-30-2020 | 80,000,000 | 79,995,885 | ||||||||||||
U.S. Treasury Note | 1.75 | 11-15-2020 | 184,000,000 | 184,064,900 | ||||||||||||
U.S. Treasury Note | 1.75 | 12-31-2020 | 230,000,000 | 230,450,124 | ||||||||||||
U.S. Treasury Note | 1.88 | 12-15-2020 | 130,000,000 | 130,677,444 | ||||||||||||
U.S. Treasury Note | 2.00 | 11-30-2020 | 90,000,000 | 90,104,866 | ||||||||||||
U.S. Treasury Note | 2.00 | 1-15-2021 | 40,000,000 | 40,177,864 | ||||||||||||
U.S. Treasury Note | 2.00 | 2-28-2021 | 295,000,000 | 296,645,054 | ||||||||||||
U.S. Treasury Note | 2.13 | 8-31-2020 | 150,000,000 | 150,053,486 | ||||||||||||
U.S. Treasury Note | 2.13 | 1-31-2021 | 130,000,000 | 130,646,056 | ||||||||||||
U.S. Treasury Note | 2.25 | 2-15-2021 | 110,000,000 | 110,405,276 | ||||||||||||
U.S. Treasury Note | 2.25 | 3-31-2021 | 250,000,000 | 252,890,416 | ||||||||||||
U.S. Treasury Note | 2.38 | 12-31-2020 | 220,000,000 | 221,146,455 | ||||||||||||
U.S. Treasury Note | 2.38 | 4-15-2021 | 140,000,000 | 141,970,149 | ||||||||||||
U.S. Treasury Note | 2.50 | 12-31-2020 | 200,000,000 | 200,962,083 | ||||||||||||
U.S. Treasury Note | 2.50 | 2-28-2021 | 220,000,000 | 221,386,004 | ||||||||||||
U.S. Treasury Note | 2.63 | 11-15-2020 | 651,900,000 | 654,071,544 | ||||||||||||
U.S. Treasury Note | 2.75 | 9-30-2020 | 340,861,000 | 341,471,021 | ||||||||||||
U.S. Treasury Note | 2.75 | 11-30-2020 | 295,000,000 | 296,041,391 | ||||||||||||
U.S. Treasury Note | 2.88 | 10-31-2020 | 200,000,000 | 200,584,412 | ||||||||||||
U.S. Treasury Note | 3.63 | 2-15-2021 | 270,000,000 | 272,983,366 | ||||||||||||
U.S. Treasury Note | 8.13 | 5-15-2021 | 213,975,000 | 227,327,211 | ||||||||||||
Total Treasury Debt (Cost $53,985,680,629) | 53,985,680,629 | |||||||||||||||
|
|
Total investments in securities (Cost $142,697,830,764) | 100.02 | % | 142,697,830,764 | |||||
Other assets and liabilities, net | (0.02 | ) | (33,664,206 | ) | ||||
|
|
|
| |||||
Total net assets | 100.00 | % | $ | 142,664,166,558 | ||||
|
|
|
|
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 21
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
± | Variable rate investment. The rate shown is the rate in effect at period end. |
(z) | Zero coupon security. The rate represents the current yield to maturity. |
§ | The security is subject to a demand feature which reduces the effective maturity. |
ø | Variable rate demand notes are subject to a demand feature which reduces the effective maturity. The maturity date shown represents the final maturity date of the security. The interest rate is determined and reset by the issuer daily, weekly, or monthly depending upon the terms of the security. The rate shown is the rate in effect at period end. |
±± | The coupon of the security is adjusted based on the principal and interest payments received from the underlying pool of mortgages as well as the credit quality and the actual prepayment speed of the underlying mortgages. |
144A | The security may be resold in transactions exempt from registration, normally to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933. |
øø | The interest rate is determined and reset by the issuer periodically depending upon the terms of the security. The rate shown is the rate in effect at period end. |
¢ | The security represents a long-dated and extendible repurchase agreement which automatically renews on previously set terms. The maturity date represents the next put date. |
%% | The security is purchased on a when-issued basis. |
## | All or a portion of this security is segregated for when-issued securities. |
^^ | Collateralized by: |
(1) | U.S. government securities, 1.50% to 6.00%, 9-30-2021 to 2-15-2026, fair value including accrued interest is $861,851,218. |
(2) | U.S. government securities, 3.00%, 9-20-2046 to 7-20-2049, fair value including accrued interest is $1,030,000,000. |
(3) | U.S. government securities, 1.32% to 4.50%, 7-1-2030 to 7-20-2069, fair value including accrued interest is $154,500,000. |
(4) | U.S. government securities, 1.38%, 10-15-2022, fair value including accrued interest is $142,800,026. |
(5) | U.S. government securities, 2.50% to 4.00%, 10-1-2047 to 6-1-2050, fair value including accrued interest is $721,000,000. |
(6) | U.S. government securities, 2.00% to 6.50%, 1-1-2027 to 8-1-2050, fair value including accrued interest is $77,231,610. |
(7) | U.S. government securities, 3.50% to 4.00%, 4-20-2047 to 5-20-2047, fair value including accrued interest is $257,500,000. |
(8) | U.S. government securities, 3.00% to 3.50%, 5-20-2047 to 6-20-2050, fair value including accrued interest is $257,500,000. |
(9) | U.S. government securities, 3.50% to 4.00%, 10-20-2043 to 5-20-2049, fair value including accrued interest is $515,000,000. |
(10) | U.S. government securities, 0.25% to 3.00%, 4-15-2023 to 8-15-2049, fair value including accrued interest is $1,020,000,016. |
(11) | U.S. government securities, 0.15% to 3.13%, 10-31-2020 to 5-15-2049, fair value including accrued interest is $1,101,600,067. |
(12) | U.S. government securities, 0.00% to 9.50%, 9-17-2020 to 5-20-2050, fair value including accrued interest is $561,921,316. |
(13) | U.S. government securities, 0.00% to 2.88%, 8-20-2020 to 8-15-2049, fair value including accrued interest is $510,000,001. |
(14) | U.S. government securities, 0.00% to 3.50%, 3-25-2021 to 6-20-2049, fair value including accrued interest is $102,117,041. |
(15) | U.S. government securities, 0.00% to 8.75%, 8-15-2020 to 5-20-2050, fair value including accrued interest is $663,011,683. |
(16) | U.S. government securities, 2.45% to 5.00%, 10-1-2027 to 12-20-2067, fair value including accrued interest is $309,000,001. |
(17) | U.S. government securities, 0.00% to 9.50%, 8-28-2020 to 9-15-2065, fair value including accrued interest is $255,034,721. |
(18) | U.S. government securities, 0.00% to 9.00%, 9-15-2020 to 9-15-2065, fair value including accrued interest is $255,148,599. |
(19) | U.S. government securities, 3.00% to 5.50%, 5-1-2027 to 9-1-2042, fair value including accrued interest is $257,500,805. |
(20) | U.S. government securities, 0.13% to 8.50%, 4-15-2021 to 11-20-2047, fair value including accrued interest is $2,314,322,138. |
(21) | U.S. government securities, 0.75% to 2.00%, 7-31-2022 to 7-15-2028, fair value including accrued interest is $510,000,091. |
(22) | U.S. government securities, 3.00% to 4.50%, 12-1-2040 to 1-20-2050, fair value including accrued interest is $1,186,997,751. |
(23) | U.S. government securities, 0.00% to 2.75%, 9-30-2020 to 11-30-2026, fair value including accrued interest is $510,003,413. |
(24) | U.S. government securities, 0.00% to 2.63%, 8-31-2020 to 6-30-2027, fair value including accrued interest is $1,020,006,800. |
(25) | U.S. government securities, 0.00% to 6.50%, 8-6-2020 to 3-1-2052, fair value including accrued interest is $1,028,288,249. |
(26) | U.S. government securities, 0.00% to 2.25%, 11-10-2020 to 12-31-2024, fair value including accrued interest is $147,900,067. |
(27) | U.S. government securities, 0.00% to 2.88%, 9-1-2020 to 5-15-2049, fair value including accrued interest is $1,020,000,036. |
(28) | U.S. government securities, 0.00% to 7.50%, 9-24-2020 to 7-1-2050, fair value including accrued interest is $2,044,176,468. |
(29) | U.S. government securities, 0.75% to 3.38%, 2-15-2040 to 2-15-2045, fair value including accrued interest is $872,100,081. |
(30) | U.S. government securities, 2.75% to 3.75%, 2-15-2047 to 5-15-2049, fair value including accrued interest is $3,315,000,714. |
(31) | U.S. government securities, 0.50% to 3.63%, 7-15-2022 to 8-15-2043, fair value including accrued interest is $1,774,901,974. |
(32) | U.S. government securities, 0.00% to 4.63%, 9-24-2020 to 2-15-2049, fair value including accrued interest is $2,295,000,066. |
(33) | U.S. government securities, 1.50% to 1.88%, 9-30-2024 to 6-30-2026, fair value including accrued interest is $902,037,055. |
(34) | U.S. government securities, 2.50% to 6.00%, 9-1-2026 to 7-1-2050, fair value including accrued interest is $206,000,000. |
(35) | U.S. government securities, 2.50% to 4.00%, 5-1-2027 to 9-1-2042, fair value including accrued interest is $515,000,000. |
(36) | U.S. government securities, 1.97% to 7.50%, 6-1-2027 to 7-1-2050, fair value including accrued interest is $515,000,000. |
(37) | U.S. government securities, 2.50% to 5.50%, 10-1-2028 to 3-15-2060, fair value including accrued interest is $360,500,000. |
(38) | U.S. government securities, 1.50% to 2.63%, 12-31-2021 to 12-31-2026, fair value including accrued interest is $408,169,328. |
(39) | U.S. government securities, 3.09% to 4.50%, 5-1-2035 to 9-1-2049, fair value including accrued interest is $257,500,000. |
(40) | U.S. government securities, 0.00% to 7.50%, 2-1-2025 to 6-1-2053, fair value including accrued interest is $513,791,545. |
(41) | U.S. government securities, 0.00% to 6.25%, 7-15-2022 to 1-1-2059, fair value including accrued interest is $512,194,084. |
(42) | U.S. government securities, 0.00% to 4.75%, 8-6-2020 to 2-15-2050, fair value including accrued interest is $76,500,000. |
(43) | U.S. government securities, 1.50% to 6.00%, 8-1-2022 to 8-1-2050, fair value including accrued interest is $771,030,064. |
(44) | U.S. government securities, 2.33% to 2.50%, 5-1-2027 to 7-1-2050, fair value including accrued interest is $257,500,001. |
(45) | U.S. government securities, 4.50%, 11-1-2047, fair value including accrued interest is $257,500,001. |
(46) | U.S. government securities, 0.00% to 5.00%, 12-3-2020 to 5-1-2050, fair value including accrued interest is $4,016,955,160. |
(47) | U.S. government securities, 0.00% to 8.88%, 9-11-2020 to 2-20-2070, fair value including accrued interest is $3,064,834,961. |
(48) | U.S. government securities, 0.00%, 2-15-2027 to 2-15-2045, fair value is $384,163,620. |
The accompanying notes are an integral part of these financial statements.
22 | Government Money Market Funds
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
(49) | U.S. government securities, 0.00% to 3.00%, 11-15-2021 to 5-15-2045, fair value including accrued interest is $211,832,580. |
(50) | U.S. government securities, 3.00%, 6-20-2050, fair value including accrued interest is $515,000,001. |
(51) | U.S. government securities, 2.50% to 4.50%, 8-20-2046 to 7-1-2050, fair value including accrued interest is $206,000,000. |
(52) | U.S. government securities, 0.00% to 6.00%, 8-20-2020 to 7-20-2050, fair value including accrued interest is $2,829,743,173. |
(53) | U.S. government securities, 0.00%, 8-15-2020 to 5-15-2050, fair value is $255,000,008. |
(54) | U.S. government securities, 2.22% to 5.50%, 2-1-2031 to 6-1-2051, fair value including accrued interest is $257,500,001. |
(55) | U.S. government securities, 0.13% to 2.13%, 4-15-2021 to 1-15-2029, fair value including accrued interest is $1,479,000,006. |
(56) | U.S. government securities, 2.50% to 5.50%, 7-1-2028 to 7-20-2050, fair value including accrued interest is $309,000,000. |
(57) | U.S. government securities, 0.13% to 3.00%, 4-15-2021 to 2-1-2050, fair value including accrued interest is $1,275,061,867. |
(58) | U.S. government securities, 0.00% to 8.00%, 9-10-2020 to 2-1-2057, fair value including accrued interest is $255,621,238. |
(59) | U.S. government securities, 0.00% to 6.25%, 8-13-2020 to 6-20-2050, fair value including accrued interest is $1,531,238,784. |
(60) | U.S. government securities, 3.00% to 4.00%, 5-1-2043 to 2-1-2050, fair value including accrued interest is $1,030,000,763. |
(61) | U.S. government securities, 1.13% to 3.50%, 1-15-2021 to 12-1-2047, fair value including accrued interest is $299,280,415. |
(62) | U.S. government securities, 1.38% to 3.50%, 1-15-2021 to 2-1-2047, fair value including accrued interest is $281,251,547. |
(63) | U.S. government securities, 3.50%, 7-1-2047 to 5-1-2048, fair value including accrued interest is $638,632,981. |
(64) | U.S. government securities, 3.00% to 3.50%, 12-1-2046 to 11-1-2047, fair value including accrued interest is $638,277,751. |
(65) | U.S. government securities, 1.63%, 8-15-2029, fair value including accrued interest is $221,224,671. |
(66) | U.S. government securities, 2.75%, 11-15-2047, fair value including accrued interest is $445,424,662. |
(67) | U.S. government securities, 1.13% to 3.50%, 1-15-2021 to 12-1-2047, fair value including accrued interest is $299,621,833. |
(68) | U.S. government securities, 2.50% to 5.00%, 3-20-2041 to 8-1-2050, fair value including accrued interest is $1,030,000,001. |
Abbreviations:
CDA | Community Development Authority |
FFCB | Federal Farm Credit Banks |
FHLB | Federal Home Loan Bank |
FHLMC | Federal Home Loan Mortgage Corporation |
FNMA | Federal National Mortgage Association |
GNMA | Government National Mortgage Association |
HFA | Housing Finance Authority |
LIBOR | London Interbank Offered Rate |
LIQ | Liquidity agreement |
LOC | Letter of credit |
MFHR | Multifamily housing revenue |
RDA | Redevelopment Authority |
SOFR | Secured Overnight Financing Rate |
SPA | Standby purchase agreement |
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 23
Table of Contents
Statement of assets and liabilities—July 31, 2020 (unaudited)
Assets | ||||
Investments in unaffiliated securities, at amortized cost | $ | 89,889,754,424 | ||
Investments in repurchase agreements, at amortized cost | 52,808,076,340 | |||
Cash | 1,672,184,027 | |||
Receivable for investments sold | 205,000 | |||
Receivable for Fund shares sold | 3,971,437 | |||
Receivable for interest | 46,933,279 | |||
Prepaid expenses and other assets | 1,371,504 | |||
|
| |||
Total assets | 144,422,496,011 | |||
|
| |||
Liabilities | ||||
Payable for investments purchased | 1,729,570,005 | |||
Payable for Fund shares redeemed | 3,917,919 | |||
Management fee payable | 12,287,526 | |||
Dividends payable | 4,799,105 | |||
Administration fees payable | 7,053,200 | |||
Trustees’ fees and expenses payable | 1,843 | |||
Accrued expenses and other liabilities | 699,855 | |||
|
| |||
Total liabilities | 1,758,329,453 | |||
|
| |||
Total net assets | $ | 142,664,166,558 | ||
|
| |||
Net assets consist of | ||||
Paid-in capital | $ | 142,663,641,865 | ||
Total distributable earnings | 524,693 | |||
|
| |||
Total net assets | $ | 142,664,166,558 | ||
|
| |||
Computation of net asset value per share | ||||
Net assets – Class A | $ | 306,990,640 | ||
Shares outstanding – Class A1 | 306,989,219 | |||
Net asset value per share – Class A | $1.00 | |||
Net assets – Administrator Class | $ | 4,345,170,524 | ||
Shares outstanding – Administrator Class1 | 4,345,037,466 | |||
Net asset value per share – Administrator Class | $1.00 | |||
Net assets – Institutional Class | $ | 42,699,775,528 | ||
Shares outstanding – Institutional Class1 | 42,699,441,192 | |||
Net asset value per share – Institutional Class | $1.00 | |||
Net assets – Select Class | $ | 93,194,031,872 | ||
Shares outstanding – Select Class1 | 93,194,052,537 | |||
Net asset value per share – Select Class | $1.00 | |||
Net assets – Service Class | $ | 2,118,172,994 | ||
Shares outstanding – Service Class1 | 2,118,158,355 | |||
Net asset value per share – Service Class | $1.00 | |||
Net assets – Sweep Class | $ | 25,000 | ||
Shares outstanding – Sweep Class1 | 25,000 | |||
Net asset value per share – Sweep Class | $1.00 |
1 | The Fund has an unlimited number of authorized shares. |
The accompanying notes are an integral part of these financial statements.
24 | Government Money Market Funds
Table of Contents
Statement of operations—six months ended July 31, 2020 (unaudited)
Investment income | ||||
Interest | $ | 311,842,057 | ||
|
| |||
Expenses | ||||
Management fee | 78,229,289 | |||
Administration fees | ||||
Class A | 402,078 | |||
Administrator Class | 1,772,454 | |||
Institutional Class | 15,739,286 | |||
Select Class | 14,755,739 | |||
Service Class | 1,300,721 | |||
Shareholder servicing fees | ||||
Class A | 454,713 | |||
Administrator Class | 1,772,454 | |||
Service Class | 2,709,611 | |||
Custody and accounting fees | 1,468,071 | |||
Professional fees | 29,793 | |||
Registration fees | 94,805 | |||
Shareholder report expenses | 58,585 | |||
Trustees’ fees and expenses | 9,790 | |||
Other fees and expenses | 350,142 | |||
|
| |||
Total expenses | 119,147,531 | |||
Less: Fee waivers and/or expense reimbursements | ||||
Fund-level | (10,746,122 | ) | ||
Class A | (204,263 | ) | ||
Administrator Class | (424,596 | ) | ||
Select Class | (6,386,002 | ) | ||
Service Class | (859,238 | ) | ||
|
| |||
Net expenses | 100,527,310 | |||
|
| |||
Net investment income | 211,314,747 | |||
Net realized gains on investments | 356,022 | |||
|
| |||
Net increase in net assets resulting from operations | $ | 211,670,769 | ||
|
|
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 25
Table of Contents
Statement of changes in net assets
Six months ended (unaudited) | Year ended January 31, 2020 | |||||||||||||||
Operations | ||||||||||||||||
Net investment income | $ | 211,314,747 | $ | 1,604,569,693 | ||||||||||||
Net realized gains on investments | 356,022 | 123,388 | ||||||||||||||
|
| |||||||||||||||
Net increase in net assets resulting from operations | 211,670,769 | 1,604,693,081 | ||||||||||||||
|
| |||||||||||||||
Distributions to shareholders from net investment income and net realized gains | ||||||||||||||||
Class A | (427,562 | ) | (5,339,379 | ) | ||||||||||||
Administrator Class | (4,847,262 | ) | (51,521,355 | ) | ||||||||||||
Institutional Class | (62,750,558 | ) | (543,232,986 | ) | ||||||||||||
Select Class | (140,614,383 | ) | (971,999,530 | ) | ||||||||||||
Service Class | (2,681,648 | ) | (32,589,068 | ) | ||||||||||||
Sweep Class | 0 | 2 | (1,259 | )1 | ||||||||||||
|
| |||||||||||||||
Total distributions to shareholders | (211,321,413 | ) | (1,604,683,577 | ) | ||||||||||||
|
| |||||||||||||||
Capital share transactions | Shares | Shares | ||||||||||||||
Proceeds from shares sold | ||||||||||||||||
Class A | 157,715,657 | 157,715,657 | 361,105,716 | 361,105,716 | ||||||||||||
Administrator Class | 10,509,951,997 | 10,509,951,997 | 15,322,500,119 | 15,322,500,119 | ||||||||||||
Institutional Class | 134,818,873,289 | 134,818,873,289 | 194,991,151,341 | 194,991,151,341 | ||||||||||||
Select Class | 306,809,642,643 | 306,809,642,643 | 507,196,735,507 | 507,196,735,507 | ||||||||||||
Service Class | 40,041,106,438 | 40,041,106,438 | 61,032,711,500 | 61,032,711,500 | ||||||||||||
Sweep Class | 25,000 | 2 | 25,000 | 2 | 0 | 1 | 0 | 1 | ||||||||
|
| |||||||||||||||
492,337,315,024 | 778,904,204,183 | |||||||||||||||
|
| |||||||||||||||
Reinvestment of distributions | ||||||||||||||||
Class A | 445,169 | 445,169 | 5,298,655 | 5,298,655 | ||||||||||||
Administrator Class | 1,838,299 | 1,838,299 | 17,301,405 | 17,301,405 | ||||||||||||
Institutional Class | 21,645,441 | 21,645,441 | 171,548,607 | 171,548,607 | ||||||||||||
Select Class | 90,527,918 | 90,527,918 | 629,171,721 | 629,171,721 | ||||||||||||
Service Class | 252,475 | 252,475 | 3,567,610 | 3,567,610 | ||||||||||||
Sweep Class | 0 | 2 | 0 | 2 | 0 | 1 | 0 | 1 | ||||||||
|
| |||||||||||||||
114,709,302 | 826,887,998 | |||||||||||||||
|
| |||||||||||||||
Payment for shares redeemed | ||||||||||||||||
Class A | (217,770,890 | ) | (217,770,890 | ) | (311,423,075 | ) | (311,423,075 | ) | ||||||||
Administrator Class | (10,060,667,512 | ) | (10,060,667,512 | ) | (13,857,369,572 | ) | (13,857,369,572 | ) | ||||||||
Institutional Class | (121,169,688,672 | ) | (121,169,688,672 | ) | (192,134,616,614 | ) | (192,134,616,614 | ) | ||||||||
Select Class | (265,660,659,929 | ) | (265,660,659,929 | ) | (501,206,742,646 | ) | (501,206,742,646 | ) | ||||||||
Service Class | (39,918,108,089 | ) | (39,918,108,089 | ) | (60,897,748,273 | ) | (60,897,748,273 | ) | ||||||||
Sweep Class | 0 | 2 | 0 | 2 | (100,075 | )1 | (100,075 | )1 | ||||||||
|
| |||||||||||||||
(437,026,895,092 | ) | (768,408,000,255 | ) | |||||||||||||
|
| |||||||||||||||
Net increase in net assets resulting from capital share transactions | 55,425,129,234 | 11,323,091,926 | ||||||||||||||
|
| |||||||||||||||
Total increase in net assets | 55,425,478,590 | 11,323,101,430 | ||||||||||||||
|
| |||||||||||||||
Net assets | ||||||||||||||||
Beginning of period | 87,238,687,968 | 75,915,586,538 | ||||||||||||||
|
| |||||||||||||||
End of period | $ | 142,664,166,558 | $ | 87,238,687,968 | ||||||||||||
|
|
1 | For the period from February 1, 2019 to November 29, 2019. Effective at the close of business on November 29, 2019, Sweep Class shares were liquidated and the class was subsequently closed. |
2 | For the period from July 31, 2020 (commencement of class operations) to July 31, 2020. Sweep Class shares were relaunched on July 31, 2020. |
The accompanying notes are an integral part of these financial statements.
26 | Government Money Market Funds
Table of Contents
(For a share outstanding throughout each period)
Six months ended July 31, 2020 (unaudited) | Year ended January 31 | |||||||||||||||||||||||
CLASS A | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Net investment income | 0.00 | 1 | 0.02 | 0.01 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | ||||||||||||||
Net realized gains on investments | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 0.00 | 1 | 0.02 | 0.01 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | ||||||||||||||
Distributions to shareholders from | ||||||||||||||||||||||||
Net investment income | (0.00 | )1 | (0.02 | ) | (0.01 | ) | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | ||||||||||||
Net realized gains | 0.00 | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | 0.00 | 0.00 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions to shareholders | (0.00 | )1 | (0.02 | ) | (0.01 | ) | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | ||||||||||||
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Total return2 | 0.12 | % | 1.59 | % | 1.38 | % | 0.38 | % | 0.01 | % | 0.01 | % | ||||||||||||
Ratios to average net assets (annualized) | ||||||||||||||||||||||||
Gross expenses | 0.60 | % | 0.61 | % | 0.61 | % | 0.61 | % | 0.61 | % | 0.61 | % | ||||||||||||
Net expenses | 0.38 | % | 0.60 | % | 0.60 | % | 0.61 | % | 0.41 | % | 0.13 | % | ||||||||||||
Net investment income | 0.23 | % | 1.56 | % | 1.39 | % | 0.38 | % | 0.01 | % | 0.01 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (000s omitted) | $306,991 | $366,601 | $311,616 | $264,735 | $274,083 | $265,119 |
1 | Amount is less than $0.005. |
2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 27
Table of Contents
Financial highlights
(For a share outstanding throughout each period)
Six months ended July 31, 2020 (unaudited) | Year ended January 31 | |||||||||||||||||||||||
ADMINISTRATOR CLASS | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Net investment income | 0.00 | 1 | 0.02 | 0.02 | 0.01 | 0.00 | 1 | 0.00 | 1 | |||||||||||||||
Net realized gains on investments | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 0.00 | 1 | 0.02 | 0.02 | 0.01 | 0.00 | 1 | 0.00 | 1 | |||||||||||||||
Distributions to shareholders from | ||||||||||||||||||||||||
Net investment income | (0.00 | )1 | (0.02 | ) | (0.02 | ) | (0.01 | ) | (0.00 | )1 | (0.00 | )1 | ||||||||||||
Net realized gains | 0.00 | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | 0.00 | 0.00 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions to shareholders | (0.00 | )1 | (0.02 | ) | (0.02 | ) | (0.01 | ) | (0.00 | )1 | (0.00 | )1 | ||||||||||||
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Total return2 | 0.17 | % | 1.85 | % | 1.65 | % | 0.65 | % | 0.10 | % | 0.01 | % | ||||||||||||
Ratios to average net assets (annualized) | ||||||||||||||||||||||||
Gross expenses | 0.33 | % | 0.34 | % | 0.34 | % | 0.34 | % | 0.34 | % | 0.34 | % | ||||||||||||
Net expenses | 0.29 | % | 0.34 | % | 0.34 | % | 0.34 | % | 0.31 | % | 0.12 | % | ||||||||||||
Net investment income | 0.27 | % | 1.81 | % | 1.67 | % | 0.72 | % | 0.11 | % | 0.01 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (000s omitted) | $4,345,171 | $3,893,928 | $2,411,490 | $1,554,764 | $443,500 | $382,043 |
1 | Amount is less than $0.005. |
2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
28 | Government Money Market Funds
Table of Contents
Financial highlights
(For a share outstanding throughout each period)
Six months ended July 31, 2020 (unaudited) | Year ended January 31 | |||||||||||||||||||||||
INSTITUTIONAL CLASS | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Net investment income | 0.00 | 1 | 0.02 | 0.02 | 0.01 | 0.00 | 1 | 0.00 | 1 | |||||||||||||||
Net realized gains on investments | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 0.00 | 1 | 0.02 | 0.02 | 0.01 | 0.00 | 1 | 0.00 | 1 | |||||||||||||||
Distributions to shareholders from | ||||||||||||||||||||||||
Net investment income | (0.00 | )1 | (0.02 | ) | (0.02 | ) | (0.01 | ) | (0.00 | )1 | (0.00 | )1 | ||||||||||||
Net realized gains | 0.00 | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | 0.00 | 0.00 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions to shareholders | (0.00 | )1 | (0.02 | ) | (0.02 | ) | (0.01 | ) | (0.00 | )1 | (0.00 | )1 | ||||||||||||
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Total return2 | 0.21 | % | 1.99 | % | 1.79 | % | 0.79 | % | 0.24 | % | 0.02 | % | ||||||||||||
Ratios to average net assets (annualized) | ||||||||||||||||||||||||
Gross expenses | 0.21 | % | 0.22 | % | 0.22 | % | 0.22 | % | 0.22 | % | 0.22 | % | ||||||||||||
Net expenses | 0.20 | % | 0.20 | % | 0.20 | % | 0.20 | % | 0.17 | % | 0.12 | % | ||||||||||||
Net investment income | 0.32 | % | 1.97 | % | 1.79 | % | 0.79 | % | 0.25 | % | 0.02 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (000s omitted) | $42,699,776 | $29,289,517 | $26,000,569 | $21,931,321 | $23,242,417 | $14,212,988 |
1 | Amount is less than $0.005. |
2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 29
Table of Contents
Financial highlights
(For a share outstanding throughout each period)
Six months ended July 31, 2020 (unaudited) | Year ended January 31 | |||||||||||||||||||||||
SELECT CLASS | 2020 | 2019 | 2018 | 2017 | 20161 | |||||||||||||||||||
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Net investment income | 0.00 | 2 | 0.02 | 0.02 | 0.01 | 0.00 | 2 | 0.00 | 2 | |||||||||||||||
Net realized gains on investments | 0.00 | 2 | 0.00 | 2 | 0.00 | 2 | 0.00 | 2 | 0.00 | 2 | 0.00 | 2 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 0.00 | 2 | 0.02 | 0.02 | 0.01 | 0.00 | 2 | 0.00 | 2 | |||||||||||||||
Distributions to shareholders from | ||||||||||||||||||||||||
Net investment income | (0.00 | )2 | (0.02 | ) | (0.02 | ) | (0.01 | ) | (0.00 | )2 | (0.00 | )2 | ||||||||||||
Net realized gains | 0.00 | (0.00 | )2 | (0.00 | )2 | (0.00 | )2 | 0.00 | 0.00 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions to shareholders | (0.00 | )2 | (0.02 | ) | (0.02 | ) | (0.01 | ) | (0.00 | )2 | (0.00 | )2 | ||||||||||||
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Total return3 | 0.24 | % | 2.05 | % | 1.85 | % | 0.85 | % | 0.30 | % | 0.04 | % | ||||||||||||
Ratios to average net assets (annualized) | ||||||||||||||||||||||||
Gross expenses | 0.17 | % | 0.18 | % | 0.18 | % | 0.18 | % | 0.18 | % | 0.18 | % | ||||||||||||
Net expenses | 0.14 | % | 0.14 | % | 0.14 | % | 0.14 | % | 0.11 | % | 0.10 | % | ||||||||||||
Net investment income | 0.38 | % | 2.02 | % | 1.82 | % | 0.86 | % | 0.34 | % | 0.08 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (000s omitted) | $93,194,032 | $51,954,718 | $45,335,385 | $46,288,730 | $38,999,425 | $7,985,195 |
1 | For the period from June 30, 2015 (commencement of class operations) to January 31, 2016 |
2 | Amount is less than $0.005. |
3 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
30 | Government Money Market Funds
Table of Contents
Financial highlights
(For a share outstanding throughout each period)
Six months ended July 31, 2020 (unaudited) | Year ended January 31 | |||||||||||||||||||||||
SERVICE CLASS | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Net investment income | 0.00 | 1 | 0.02 | 0.01 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | ||||||||||||||
Net realized gains on investments | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 0.00 | 1 | 0.02 | 0.01 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | ||||||||||||||
Distributions to shareholders from | ||||||||||||||||||||||||
Net investment income | (0.00 | )1 | (0.02 | ) | (0.01 | ) | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | ||||||||||||
Net realized gains | 0.00 | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | 0.00 | 0.00 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions to shareholders | (0.00 | )1 | (0.02 | ) | (0.01 | ) | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | ||||||||||||
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Total return2 | 0.14 | % | 1.69 | % | 1.48 | % | 0.49 | % | 0.02 | % | 0.01 | % | ||||||||||||
Ratios to average net assets (annualized) | ||||||||||||||||||||||||
Gross expenses | 0.50 | % | 0.51 | % | 0.51 | % | 0.51 | % | 0.51 | % | 0.51 | % | ||||||||||||
Net expenses | 0.35 | % | 0.50 | % | 0.50 | % | 0.50 | % | 0.40 | % | 0.13 | % | ||||||||||||
Net investment income | 0.25 | % | 1.67 | % | 1.45 | % | 0.48 | % | 0.02 | % | 0.01 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (000s omitted) | $2,118,173 | $1,994,923 | $1,856,426 | $2,506,898 | $2,992,780 | $2,963,813 |
1 | Amount is less than $0.005. |
2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 31
Table of Contents
Financial highlights
(For a share outstanding throughout the period)
Period ended July 31, 20201 (unaudited) | ||||
SWEEP CLASS | ||||
Net asset value, beginning of period | $1.00 | |||
Net investment income | 0.00 | |||
Net realized gains (losses) on investments | 0.00 | |||
|
| |||
Total from investment operations | 0.00 | |||
Net asset value, end of period | $1.00 | |||
Total return2 | 0.00 | % | ||
Ratios to average net assets (annualized) | ||||
Gross expenses | 0.00 | % | ||
Net expenses | 0.00 | % | ||
Net investment income | 0.00 | % | ||
Supplemental data | ||||
Net assets, end of period (000s omitted) | $25 |
1 | For the period from July 31, 2020 (commencement of class operations) to July 31, 2020 |
2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
32 | Government Money Market Funds
Table of Contents
Notes to financial statements (unaudited)
1. ORGANIZATION
Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo Government Money Market Fund (the “Fund”) which is a diversified series of the Trust.
Effective at the close of business on November 29, 2019, Sweep Class shares were liquidated and the class was closed and then relaunched on July 31, 2020.
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Securities valuation
As permitted under Rule 2a-7 of the 1940 Act, portfolio securities are valued at amortized cost, which approximates fair value. The amortized cost method involves valuing a security at its cost, plus accretion of discount or minus amortization of premium over the period until maturity.
Investments which are not valued using the method discussed above are valued at their fair value, as determined in good faith by the Board of Trustees of the Fund. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Wells Fargo Asset Management Pricing Committee at Wells Fargo Funds Management, LLC (“Funds Management”). The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Wells Fargo Asset Management Pricing Committee which may include items for ratification.
Repurchase agreements
The Fund may invest in repurchase agreements and may participate in pooled repurchase agreement transactions with other funds advised by Funds Management. Repurchase agreements are agreements where the seller of a security to the Fund agrees to repurchase that security from the Fund at a mutually agreed upon time and price. The repurchase agreements must be fully collateralized based on values that are marked-to-market daily. The collateral may be held by an agent bank under a tri-party agreement. It is the custodian’s responsibility to value collateral daily and to take action to obtain additional collateral as necessary to maintain a market value equal to or greater than the resale price. The repurchase agreements are collateralized by securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities. There could be potential loss to the Fund in the event that the Fund is delayed or prevented from exercising its rights to dispose of the collateral, including the risk of a possible decline in the value of the underlying obligations during the period in which the Fund seeks to assert its rights.
When-issued transactions
The Fund may purchase securities on a forward commitment or when-issued basis. The Fund records a when-issued transaction on the trade date and will segregate assets in an amount at least equal in value to the Fund’s commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.
Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has been determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.
Government Money Market Funds | 33
Table of Contents
Notes to financial statements (unaudited)
Distributions to shareholders
Distributions to shareholders from net investment income are declared daily and paid monthly. Distributions from net realized gains, if any, are recorded on the ex-dividend date and paid at least annually. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior to the Fund’s fiscal year end may be categorized as a tax return of capital at year end.
Federal and other taxes
The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.
The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.
As of July 31, 2020, the cost of investments for federal income tax purposes is substantially the same as for financial reporting purposes.
Class allocations
The separate classes of shares offered by the Fund differ principally in distribution, shareholder servicing, and administration fees. Class specific expenses are charged directly to that share class. Investment income, common fund-level expenses, and realized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.
3. FAIR VALUATION MEASUREMENTS
Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:
∎ | Level 1 – quoted prices in active markets for identical securities |
∎ | Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
∎ | Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
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 is a summary of the inputs used in valuing the Fund’s assets and liabilities as of July 31, 2020:
Quoted prices (Level 1) | Other significant observable inputs (Level 2) | Significant (Level 3) | Total | |||||||||||||
Assets | ||||||||||||||||
Investments in: | ||||||||||||||||
Government agency debt | $ | 0 | $ | 34,034,352,535 | $ | 0 | $ | 34,034,352,535 | ||||||||
Municipal obligations | 0 | 1,626,611,260 | 0 | 1,626,611,260 | ||||||||||||
Other instruments | 0 | 224,615,000 | 0 | 224,615,000 | ||||||||||||
Other notes | 0 | 18,495,000 | 0 | 18,495,000 | ||||||||||||
Repurchase agreements | 0 | 52,808,076,340 | 0 | 52,808,076,340 | ||||||||||||
Treasury debt | 0 | 53,985,680,629 | 0 | 53,985,680,629 | ||||||||||||
Total assets | $ | 0 | $ | 142,697,830,764 | $ | 0 | $ | 142,697,830,764 |
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Notes to financial statements (unaudited)
Additional sector, industry or geographic detail is included in the Portfolio of Investments.
For the six months ended July 31, 2020, the Fund did not have any transfers into/out of Level 3.
4. TRANSACTIONS WITH AFFILIATES
Management fee
Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadviser and providing fund-level administrative services in connection with the Fund’s operations. As compensation for its services under the investment management agreement, Funds Management is entitled to receive a management fee at the following annual rate based on the Fund’s average daily net assets:
Average daily net assets | Management fee | |||
First $5 billion | 0.15 | % | ||
Next $5 billion | 0.14 | |||
Over $10 billion | 0.13 |
For the six months ended July 31, 2020, the management fee was equivalent to an annual rate of 0.13% of the Fund’s average daily net assets.
Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. Wells Capital Management Incorporated, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.05% and declining to 0.01% as the average daily net assets of the Fund increase.
Administration fees
Under a class-level administration agreement, Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Funds Management receives an annual fee which is calculated based on the average daily net assets of each class as follows:
Class-level administration fee | ||||
Class A | 0.22 | % | ||
Administrator Class | 0.10 | |||
Institutional Class | 0.08 | |||
Select Class | 0.04 | |||
Service Class | 0.12 | |||
Sweep Class | 0.03 |
Waivers and/or expense reimbursements
Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. When each class of the Fund has exceeded its expense cap, Funds Management has waived fees and/or reimbursed expenses from fund-level expenses on a proportionate basis and then from class specific expenses. When only certain classes exceed their expense caps, waivers and/or reimbursements are applied against class specific expenses before fund-level expenses. Funds Management has committed through May 31, 2021 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.60% for Class A shares, 0.34% for Administrator Class shares, 0.20% for Institutional Class shares, 0.14% for Select Class shares, 0.50% for Service Class shares, and 0.77% for Sweep Class shares. 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.
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Notes to financial statements (unaudited)
During the six months ended July 31, 2020, Funds Management also voluntarily waived class-level expenses which represent 0.04% of the average daily net assets (on an annualized basis) of Administrator Class and 0.15% of the average daily net assets (on an annualized basis) of Service Class.
Distribution fee
The Trust has adopted a distribution plan for Sweep Class shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Sweep Class shares and paid to Wells Fargo Funds Distributor, LLC (“Funds Distributor”), the principal underwriter, at an annual rate of 0.35% of the average daily net assets of Sweep Class shares.
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Service Class, and Sweep Class of the Fund are charged a fee at an annual rate of 0.25% of the respective average daily net assets of each class. Administrator Class is charged a fee at an annual rate of 0.10% of its average daily net assets. A portion of these total shareholder servicing fees were paid to affiliates of Wells Fargo.
Interfund transactions
The Fund may purchase or sell portfolio investment securities to certain other Wells Fargo affiliates pursuant to Rule 17a-7 under the 1940 Act and under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which do not incur broker commissions, are effected at current market prices.
5. INDEMNIFICATION
Under the Fund’s organizational documents, the officers and Trustees have been granted certain indemnification rights against certain liabilities that may arise out of performance of their duties to the Fund. The Fund has entered into a separate agreement with each Trustee that converts indemnification rights currently existing under the Fund’s organizational documents into contractual rights that cannot be changed in the future without the consent of the Trustee. Additionally, in the normal course of business, the Fund may enter into contracts with service providers that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated.
6. NEW ACCOUNTING PRONOUNCEMENT
In August 2018, FASB issued Accounting Standards Update (“ASU”) No. 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 updates the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurements. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Management has adopted this guidance which did not have a material impact on the financial statements.
7. CORONAVIRUS (COVID-19) PANDEMIC
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 are 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 impacts 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.
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PROXY VOTING INFORMATION
A description of the policies and procedures used to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at wfam.com, or visiting the SEC website at sec.gov. Information regarding how the proxies related to portfolio securities were voted during the most recent 12-month period ended June 30 is available on the website at wfam.com or by visiting the SEC website at sec.gov.
PORTFOLIO HOLDINGS INFORMATION
The Fund files its complete schedule of portfolio holdings with the SEC each month on Form N-MFP. Shareholders may view the filed Form N-MFP by visiting the SEC website at sec.gov. The Fund’s portfolio holdings information is also available on our website at wfam.com.
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Other information (unaudited)
BOARD OF TRUSTEES AND OFFICERS
Each of the Trustees and Officers1 listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 147 mutual funds comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information2. The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.
Independent Trustees
Name and year of birth | Position held and length of service* | Principal occupations during past five years or longer | Current other public company or investment company directorships | |||
William R. Ebsworth (Born 1957) | Trustee, since 2015 | Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief investment officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong, and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he led a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Endowment (non-profit organization). Mr. Ebsworth is a CFA® charterholder. | N/A | |||
Jane A. Freeman (Born 1953) | Trustee, since 2015; Chair Liaison, since 2018 | Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is also an inactive Chartered Financial Analyst. | N/A | |||
Isaiah Harris, Jr. (Born 1952) | Trustee, since 2009; Audit Committee Chairman, since 2019 | Retired. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (private school). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status). | CIGNA Corporation | |||
Judith M. Johnson (Born 1949) | Trustee, since 2008; Audit Committee Chairman, from 2009 to 2018 | Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant. | N/A |
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Other information (unaudited)
Name and year of birth | Position held and length of service* | Principal occupations during past five years or longer | Current other public company or investment company directorships | |||
David F. Larcker (Born 1950) | Trustee, since 2009 | James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005. | N/A | |||
Olivia S. Mitchell (Born 1953) | Trustee, since 2006; Nominating and Governance Committee Chair, since 2018 | International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993. | N/A | |||
Timothy J. Penny (Born 1951) | Trustee, since 1996; Chairman, since 2018 | President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007. | N/A | |||
James G. Polisson (Born 1959) | Trustee, since 2018 | Retired. Chief Marketing Officer, Source (ETF) UK Services, Ltd, from 2015 to 2017. From 2012 to 2015, Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing company. Chief Executive Officer and Managing Director at Russell Investments, Global Exchange Traded Funds from 2010 to 2012. Managing Director of Barclays Global Investors from 1998 to 2010 and Global Chief Marketing Officer for iShares and Barclays Global Investors from 2000 to 2010. Trustee of the San Francisco Mechanics’ Institute, a non-profit organization, from 2013 to 2015. Board member of the Russell Exchange Traded Fund Trust from 2011 to 2012. Director of Barclays Global Investors Holdings Deutschland GmbH from 2006 to 2009. Mr. Polisson is an attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations. | N/A | |||
Pamela Wheelock (Born 1959) | Trustee, since January 2020; previously Trustee from January 2018 to July 2019 | Board member of the Destination Medical Center Economic Development Agency, Rochester, Minnesota since 2019 and Interim President of the McKnight Foundation since 2020. Acting Commissioner, Minnesota Department of Human Services, July 2019 through September 2019. Human Services Manager (part-time), Minnesota Department of Human Services, October 2019 through December 2019. Chief Operating Officer, Twin Cities Habitat for Humanity from 2017 to 2019. Vice President of University Services, University of Minnesota from 2012 to 2016. Prior thereto, on the Board of Directors, Governance Committee and Finance Committee for the Minnesota Philanthropy Partners (Saint Paul Foundation) from 2012 to 2018, Interim Chief Executive Officer of Blue Cross Blue Shield of Minnesota from 2011 to 2012, Chairman of the Board from 2009 to 2012 and Board Director from 2003 to 2015. Vice President, Leadership and Community Engagement, Bush Foundation, Saint Paul, Minnesota (a private foundation) from 2009 to 2011. Executive Vice President and Chief Financial Officer, Minnesota Sports and Entertainment from 2004 to 2009 and Senior Vice President from 2002 to 2004. Executive Vice President of the Minnesota Wild Foundation from 2004 to 2008. Commissioner of Finance, State of Minnesota, from 1999 to 2002. Currently Board Chair of the Minnesota Wild Foundation since 2010. | N/A |
* | Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable. |
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Other information (unaudited)
Officers
Name and year of birth | Position held and length of service | Principal occupations during past five years or longer | ||
Andrew Owen (Born 1960) | President, since 2017 | Executive Vice President of Wells Fargo & Company and Head of Affiliated Managers, Wells Fargo Asset Management, since 2014. In addition, Mr. Owen is currently President, Chief Executive Officer and Director of Wells Fargo Funds Management, LLC since 2017. Prior thereto, Executive Vice President responsible for marketing, investments and product development for Wells Fargo Funds Management, LLC, from 2009 to 2014. | ||
Nancy Wiser1 (Born 1967) | Treasurer, since 2012 | Executive Vice President of Wells Fargo Funds Management, LLC since 2011. Chief Operating Officer and Chief Compliance Officer at LightBox Capital Management LLC, from 2008 to 2011. | ||
Michelle Rhee (Born 1966) | Chief Legal Officer, since 2019 | Secretary of Wells Fargo Funds Management, LLC, Chief Legal Counsel of Wells Fargo Asset Management and Assistant General Counsel of Wells Fargo Bank, N.A. since 2018. Associate General Counsel and Managing Director of Bank of America Corporation from 2004 to 2018. | ||
Catherine Kennedy (Born 1969) | Secretary, since 2019 | Vice President of Wells Fargo Funds Management, LLC and Senior Counsel of the Wells Fargo Legal Department since 2010. Vice President and Senior Counsel of Evergreen Investment Management Company, LLC from 1998 to 2010. | ||
Michael H. Whitaker (Born 1967) | Chief Compliance Officer, since 2016 | Chief Compliance Officer of Wells Fargo Asset Management since 2016. Senior Vice President and Chief Compliance Officer for Fidelity Investments from 2007 to 2016. | ||
David Berardi (Born 1975) | Assistant Treasurer, since 2009 | Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010. | ||
Jeremy DePalma1 (Born 1974) | Assistant Treasurer, since 2009 | Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010 and head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010. |
1 | Nancy Wiser acts as Treasurer of 65 funds in the Fund Complex. Jeremy DePalma acts as the Treasurer of 82 funds and Assistant Treasurer of 65 funds in the Fund Complex. |
2 | The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at wfam.com. |
40 | Government Money Market Funds
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Other information (unaudited)
BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:
Wells Fargo Government Money Market Fund
Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at a Board meeting held on May 26, 2020 and May 28, 2020 (together, the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo Government Money Market Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the “Sub-Adviser”), an affiliate of Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”
At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at a Board meeting held in April 2020, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing investment performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.
In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2020. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and investment performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.
After its deliberations, the Board unanimously approved the continuation of the Advisory Agreements for a one-year term and determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.
Nature, extent and quality of services
The Board received and considered various information regarding the nature, extent and quality of services provided to the Fund by Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Wells Fargo Asset Management (“WFAM”), of which Funds Management and the Sub-Adviser are a part, and a summary of investments made in the business of WFAM. The Board also received a description of Funds Management’s and the Sub-Adviser’s business continuity plans and of their approaches to data privacy and cybersecurity, and related testing. The Board also received and reviewed information about Funds Management’s role as administrator of the Fund’s liquidity risk management program, Funds Management’s approach to risk management, and Funds Management’s intermediary and vendor oversight program.
The Board also considered the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund. The Board evaluated the ability of Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory and supervisory personnel. The Board further considered the compliance programs and compliance records of Funds Management and the Sub-Adviser. In addition, the Board took into account the full range of services provided to the Fund by Funds Management and its affiliates.
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Other information (unaudited)
Fund investment performance and expenses
The Board considered the investment performance results for the Fund over various time periods ended December 31, 2019. The Board also considered more current results for various time periods ended March 31, 2020. The Board considered these results in comparison to the investment performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the investment performance of the Fund (Administrator Class) was higher than the average investment performance of the Universe for the one-, three-, five- and ten-year periods ended December 31, 2019. The Board also noted that the investment performance of the Fund (Administrator Class) was higher than the average investment performance of the Universe for all periods ended March 31, 2020. The Board also noted that the investment performance of the Fund was higher than its benchmark index, the Lipper U.S. Government Money Market Funds Index, for all periods ended December 31, 2019.
The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were lower than or in range of the median net operating expense ratios of the expense Groups for each share class.
The Board took into account the Fund’s investment performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.
Investment management and sub-advisory fee rates
The Board reviewed and considered the contractual fee rates payable by the Fund to Funds Management under the Management Agreement, as well as the contractual fee rates payable by the Fund to Funds Management for class-level administrative services under a Class-Level Administration Agreement, which include, among other things, class-level transfer agency and sub-transfer agency costs (collectively, the “Management Rates”). The Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Funds Management to the Sub-Adviser for investment sub-advisory services.
Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were lower than or in range of the sum of these average rates for the Fund’s expense Groups for all share classes.
The Board also received and considered information about the portion of the total management fee that was retained by Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Funds Management and not delegated to or assumed by the Sub-Adviser, and about Funds Management’s on-going oversight services. Given the affiliation between Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of fees between them.
The Board also received and considered information about the nature and extent of services offered and fee rates charged by Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing proprietary mutual funds compared with those associated with managing assets of other types of clients, including third-party sub-advised fund clients and non-mutual fund clients such as institutional separate accounts.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Funds Management under the Management Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable.
Profitability
The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of both WFAM and Wells Fargo & Co. (“Wells Fargo”) from providing services to the fund family as a whole. The Board noted that the Sub-Adviser’s profitability information with respect to providing services to the Fund and other funds in the family was subsumed in the WFAM and Wells Fargo profitability analysis.
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Other information (unaudited)
Funds Management reported on the methodologies and estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size, type and age of fund.
Based on its review, the Board did not deem the profits reported by Funds Management, WFAM or Wells Fargo from services provided to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.
Economies of scale
The Board received and considered information about the potential for Funds Management to experience economies of scale in the provision of management services to the Fund, the difficulties of calculating economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with shareholders. The Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size, and the size of the Fund in relation to such breakpoints. The Board considered that in addition to management fee breakpoints, Funds Management shares potential economies of scale from its management business in a variety of ways, including through fee waiver and expense reimbursement arrangements, services that benefit shareholders, competitive management fee rates set at the outset without regard to breakpoints, and investments in the business intended to enhance services available to shareholders.
The Board concluded that Funds Management’s arrangements with respect to the Fund, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.
Other benefits to Funds Management and the Sub-Adviser
The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that various affiliates of Funds Management may receive distribution-related fees, shareholder servicing payments and sub-transfer agency fees in respect of shares sold or held through them and services provided.
The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser, fees earned by Funds Management and the Sub-Adviser from managing a private investment vehicle for the fund family’s securities lending collateral, and commissions earned by an affiliated broker from portfolio transactions.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.
Conclusion
At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory Agreements for a one-year term and determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable.
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Other information (unaudited)
LIQUIDITY RISK MANAGEMENT PROGRAM
In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), Wells Fargo Funds Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) on behalf of each of its series, including the Fund, which is reasonably designed to assess and manage the Fund’s liquidity risk. “Liquidity risk” is defined as the risk that the Fund is unable to meet redemption requests without significantly diluting remaining investors’ interests in the Fund. The Trust’s Board of Trustees (the “Board”) previously approved the designation of Wells Fargo Funds Management, LLC (“Funds Management”), the Fund’s investment manager, as the administrator of the Program, and Funds Management has established a Liquidity Risk Management Council composed of personnel from multiple departments within Funds Management and its affiliates to assist Funds Management in the implementation and on-going administration of the Program.
The Program is comprised of various components designed to support the assessment and/or management of liquidity risk, including: (1) the periodic assessment (no less frequently than annually) of certain factors that influence the Fund’s liquidity risk; (2) the periodic classification (no less frequently than monthly) of the Fund’s investments into one of four liquidity categories that reflect an estimate of their liquidity under current market conditions; (3) a 15% limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); (4) to the extent the Fund does not invest primarily in “highly liquid investments” (as defined under the Liquidity Rule), the determination of a minimum percentage of the Fund’s assets that generally will be invested in highly liquid investments (an “HLIM”); (5) if the Fund has established an HLIM, the periodic review (no less frequently than annually) of the HLIM and the adoption of policies and procedures for responding to a shortfall of the Fund’s “highly liquid investments” below its HLIM; and (6) periodic reporting to the Board.
At a meeting of the Board held on May 26 and 28, 2020, the Board received a written report (the “Report”) from Funds Management that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation. The Report covered the initial period from December 1, 2018 through December 31, 2019 (the “Reporting Period”). No significant liquidity events impacting the Fund were noted in the Report. There were no material changes to the Program during the Reporting Period. The Report concluded that the Program is operating effectively to assess and manage the Fund’s liquidity risk, and that the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund’s liquidity developments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other risks to which an investment in the Fund may be subject.
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For more information
More information about Wells Fargo Funds is available free upon request. To obtain literature, please write, visit the Fund’s website, or call:
Wells Fargo Funds
P.O. Box 219967
Kansas City, MO 64121-9967
Website: wfam.com
Individual investors: 1-800-222-8222
Retail investment professionals: 1-888-877-9275
Institutional investment professionals: 1-866-765-0778
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-260-5969 or visit the Fund’s website at wfam.com. Read the prospectus carefully before you invest or send money.
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).
This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind—including a recommendation for any specific investment, strategy, or plan.
INVESTMENT PRODUCTS: NOT FDIC INSURED ◾ NO BANK GUARANTEE ◾ MAY LOSE VALUE
© 2020 Wells Fargo & Company. All rights reserved
PAR-0820-01049 09-20
SA303/SAR303 07-20
Table of Contents
Semi-Annual Report
July 31, 2020
Institutional Money Market Funds
∎ | Wells Fargo Heritage Money Market Fund |
Beginning on January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, paper copies of the Wells Fargo Funds’ annual and semi-annual shareholder reports issued after this date will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Funds’ website, and you will be notified by mail each time a report is posted and provided with a website address to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling 1-800-222-8222 or by enrolling at wellsfargo.com/advantagedelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports; if you invest directly with the Fund, you can call 1-800-222-8222. Your election to receive reports in paper will apply to all Wells Fargo Funds held in your account with your financial intermediary or, if you are a direct investor, to all Wells Fargo Funds that you hold.
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Sign up for electronic delivery of prospectuses and shareholder reports at wellsfargo.com/advantagedelivery |
The views expressed and any forward-looking statements are as of July 31, 2020, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Asset Management. Discussions of individual securities, or the markets generally, or any Wells Fargo Fund 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 and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.
INVESTMENT PRODUCTS: NOT FDIC INSURED ◾ NO BANK GUARANTEE ◾ MAY LOSE VALUE
Institutional Money Market Funds | 1
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Letter to shareholders (unaudited)
Andrew Owen
President
Wells Fargo Funds
Dear Shareholder:
We are pleased to offer you this semi-annual report for the Wells Fargo Heritage Money Market Fund for the six-month period that ended July 31, 2020. Global stock markets tumbled in February and March as governments took unprecedented measures to stop the spread of the coronavirus at the expense of short-term economic output. However, most markets rebounded from April on to offset much of the losses as central banks attempted to bolster capital markets and confidence. Fixed-income markets generally performed well, with the exception of high-yield bonds, as U.S. bonds overall achieved modest gains. U.S. and emerging market equities outperformed international developed market equities over the six-month period.
For the period, U.S. stocks, based on the S&P 500 Index,1 returned 2.42% and international stocks, as measured by the MSCI ACWI ex USA Index (Net),2 fell 4.47%. The MSCI EM Index (Net)3 gained 3.08%. For bond investors, the Bloomberg Barclays U.S. Aggregate Bond Index4 added 5.69%, the Bloomberg Barclays Global Aggregate ex-USD Index5 returned 4.29%, the Bloomberg Barclays Municipal Bond Index6 returned 1.96%, and the ICE BofA U.S. High Yield Index7 lost 0.23%.
Concerns about the coronavirus took over the market.
In February, the coronavirus became the major market focus. Fears of the virus’s impact on global growth led to expectations of increased global central bank monetary policy support. That led the 10-year U.S. Treasury yield to fall to an all-time low of 1.1% by the end of the month. Although equity markets initially shrugged off concerns about the outbreak, focusing instead on strong fourth-quarter earnings and improving business confidence in January, market sentiment turned sharply lower toward month-end. Oil prices tumbled as Russia and the Organization of the Petroleum Exporting Countries compounded a major decline in oil demand with a brutal price war, causing the price of West Texas Intermediate crude oil to plummet.
1 | The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock’s weight in the index proportionate to its market value. You cannot invest directly in an index. |
2 | The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the United States. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. You cannot invest directly in an index. |
3 | The MSCI Emerging Markets (EM) Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure equity market performance of emerging markets. You cannot invest directly in an index. |
4 | The Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. You cannot invest directly in an index. |
5 | The Bloomberg Barclays Global Aggregate ex-USD Index is an unmanaged index that provides a broad-based measure of the global investment-grade fixed-income markets excluding the U.S.-dollar-denominated debt market. You cannot invest directly in an index. |
6 | 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. |
7 | The ICE BofA U.S. High Yield Index is a market-capitalization-weighted index of domestic and Yankee high-yield bonds. The index tracks the performance of high-yield securities traded in the U.S. bond market. You cannot invest directly in an index. Copyright 2020. ICE Data Indices, LLC. All rights reserved. |
2 | Institutional Money Market Funds
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Letter to shareholders (unaudited)
The global spread of the coronavirus led many countries to clamp down on social and business-related activity in order to contain the virus from causing even greater devastation and overwhelming the health care system. This abrupt stoppage of economic activity led to the sharp deceleration of global output, sending economies into a deep contraction. Central bank responses were swift, as they slashed interest rates and expanded quantitative easing programs to restore liquidity and confidence to the markets. In the U.S., the Federal Reserve launched several lending programs, funding investment-grade bonds, money market mutual funds, and commercial paper while purchasing Treasuries, mortgage-backed securities, and overnight repurchase agreements. Meanwhile, stock markets tumbled quickly into a bear market, ending the longest bull stock market in U.S. history.
Markets rebounded strongly in April, fueled by unprecedented government and central bank stimulus measures. The U.S. economy contracted by an annualized 5.0% pace in the first quarter, with 30 million new unemployment insurance claims in six weeks. In the eurozone, first-quarter real gross domestic product (GDP) shrank 3.8%, with the composite April Flash Purchasing Managers’ Index, a monthly survey of purchasing managers, falling to an all-time low of 13.5. The European Central Bank expanded its quantitative easing to include the purchase of additional government bonds of countries with the greatest virus-related need, including Italy and Spain. China’s first-quarter GDP fell by 6.8% year over year. However, retail sales, production, and investment showed signs of recovery. Extreme oil-price volatility continued as global supply far exceeded demand.
In May, the equity market rebound continued, with widespread strong monthly gains. Investors regained confidence on reports of early signs of success in human trials of a coronavirus vaccine. Growth stocks continued to outperform value stocks while returns on global government bonds were generally flat. In the U.S., a gap grew between the stock market rebound and devastating economic data points, including an April unemployment rate of 14.7%, the highest level since World War II. Purchasing managers’ indices continued to reflect weakening activity in May in both the manufacturing and services sectors. U.S. corporate earnings reports indicated a 14% year-over-year contraction in earnings from the first quarter of 2019. However, high demand for technology, driven by remote activity, helped maintain robust information technology sector earnings, which helped drive powerful well-known technology stocks higher.
Financial markets posted widely positive returns in June despite ongoing economic weakness and high levels of uncertainty on the containment of the coronavirus and the timing of an effective vaccine. There were hopeful signs as economies reopened, with both U.S. and U.K. retail sales rebounding substantially in May. However, year over year, sales remained depressed. Vitally important to market sentiment was the ongoing commitment by central banks globally to do all they could to provide economic support through liquidity and low borrowing costs. U.S. economic activity was aided by one-time $1,200 stimulus checks and $600 bonus weekly unemployment benefits due to expire at the end of July. However, unemployment remained in the double digits, easing somewhat from 14.7% in April to 11.1% in June. During June, numerous states reported alarming increases in coronavirus cases. China’s economic recovery picked up momentum in June, though it remained far from a full recovery.
July was a broadly positive month for both global equities and fixed income. However, economic data and a resurgence of coronavirus cases pointed to the vulnerability of the global economy and the ongoing imperative to regain control of the pandemic. Second-quarter GDP shrank by 9.5% and 12.1% in the U.S. and eurozone, respectively, from the previous quarter. In contrast, China reported a 3.2% year-over-year expansion in its second-quarter GDP. U.S. unemployment remained historically high despite adding 1.8 million jobs in July, with a double-digit jobless rate persisting. However, manufacturing activity grew in both the U.S. and eurozone. In Asia, while China’s manufacturing sector
“The global spread of the coronavirus led many countries to clamp down on social and business-related activity in order to contain the virus from causing even greater devastation and overwhelming the health care system.”
“Financial markets posted widely positive returns in June despite ongoing economic weakness and high levels of uncertainty on the containment of the coronavirus and the timing of an effective vaccine.”
Institutional Money Market Funds | 3
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Letter to shareholders (unaudited)
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For further information about your Fund, contact your investment professional, visit our website at wfam.com, or call us directly at 1-800-222-8222. |
continued to expand, activity in Japan and South Korea contracted. In July, a rising concern was the rapid and broad reemergence of coronavirus infections. Despite the ongoing promise of positive early-stage vaccine trial results, economic activity could be held back by the continued spread of the virus and the end of a widely received $600-a-week bonus unemployment benefit in late July.
Don’t let short-term uncertainty derail long-term investment goals.
Periods of investment uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Funds offers more than 100 mutual funds spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.
Thank you for choosing to invest with Wells Fargo Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.
Sincerely,
Andrew Owen
President
Wells Fargo Funds
4 | Institutional Money Market Funds
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Performance highlights (unaudited)
Investment objective
The Fund seeks current income, while preserving capital and liquidity.
Manager
Wells Fargo Funds Management, LLC
Subadvisers
Wells Capital Management Incorporated
Wells Capital Management Singapore
Portfolio managers
Michael C. Bird, CFA®‡
Jeffrey L. Weaver, CFA®‡
Laurie White
Average annual total returns (%) as of July 31, 2020
Expense ratios1 (%) | ||||||||||||||||||||||
Inception date | 1 year | 5 year | 10 year | Gross | Net2 | |||||||||||||||||
Administrator Class (SHMXX) | 6-29-1995 | 1.25 | 1.12 | 0.56 | 0.35 | 0.33 | ||||||||||||||||
Institutional Class (SHIXX) | 3-31-2000 | 1.37 | 1.24 | 0.64 | 0.23 | 0.20 | ||||||||||||||||
Select Class (WFJXX) | 6-29-2007 | 1.43 | 1.31 | 0.71 | 0.19 | 0.13 | ||||||||||||||||
Service Class (WHTXX) | 6-30-2010 | 1.14 | 1.02 | 0.51 | 0.52 | 0.43 |
Yield summary (%) as of July 31, 20202
Administrator Class | Institutional Class | Select Class | Service Class | |||||||||||
7-day current yield | 0.03 | 0.15 | 0.22 | 0.01 | ||||||||||
7-day compound yield | 0.03 | 0.15 | 0.22 | 0.01 | ||||||||||
30-day simple yield | 0.05 | 0.18 | 0.25 | 0.01 | ||||||||||
30-day compound yield | 0.05 | 0.18 | 0.25 | 0.01 |
Figures quoted represent past performance, which is no guarantee of future results, and do not reflect taxes that a shareholder may pay on an investment in a fund. Investment returns will fluctuate. The Fund’s yield figures more closely reflect the current earnings of the Fund than the total return figures. Current performance may be lower or higher than the performance data quoted, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s website, wfam.com.
Money market funds are sold without a front-end sales charge or contingent deferred sales charge. Other fees and expenses apply to an investment in the Fund and are described in the Fund’s current prospectus.
For floating NAV money market funds: You could lose money by investing in the Fund. Because the share price of the Fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
Please see footnotes on page 7.
6 | Institutional Money Market Funds
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Performance highlights (unaudited)
Portfolio composition as of July 31, 20203 |
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Effective maturity distribution as of July 31, 20203 |
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Weighted average maturity as of July 31, 20204 |
43 days |
Weighted average life as of July 31, 20205 |
48 days |
‡ | CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. |
1 | Reflects the expense ratios as stated in the most recent prospectuses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report. |
2 | The manager has contractually committed through May 31, 2021, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.33% for Administrator Class, 0.20% for Institutional Class, 0.13% for Select Class, and 0.43% for Service Class. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses (if any), and extraordinary expenses are excluded from the expense caps. Prior to or after the commitment expiration date, the caps may be increased or the commitment to maintain the caps may be terminated only with the approval of the Board of Trustees. Without these caps, the Fund’s returns would have been lower. Without waived fees and/or reimbursed expenses, the Fund’s 7-day current yield would have been 0.01%, 0.13%, 0.17%, and -0.13% for Administrator Class, Institutional Class, Select Class, and Service Class, respectively. 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 prospectuses. |
3 | Amounts are calculated based on the total investments of the Fund. These amounts are subject to change and may have changed since the date specified. |
4 | Weighted Average Maturity (WAM): WAM is an average of the effective maturities of all securities held in the portfolio, weighted by each security’s percentage of total investments. The maturity of a portfolio security is the period remaining until the date on which the principal amount is unconditionally required to be paid, or in the case of a security called for redemption, the date on which the redemption payment is unconditionally required to be made. WAM calculations allow for the maturities of certain securities with demand features or periodic interest rate resets to be shortened. WAM is a way to measure a fund’s sensitivity to potential interest rate changes. WAM is subject to change and may have changed since the date specified. |
5 | Weighted Average Life (WAL): WAL is an average of the final maturities of all securities held in the portfolio, weighted by their percentage of total investments. The maturity of a portfolio security is the period remaining until the date on which the principal amount is unconditionally required to be paid, or in the case of a security called for redemption, the date on which the redemption payment is unconditionally required to be made. In contrast to WAM, the calculation of WAL allows for the maturities of certain securities with demand features to be shortened, but not the periodic interest rate resets. WAL is a way to measure a fund’s potential sensitivity to credit spread changes. WAL is subject to change and may have changed since the date specified. |
Institutional Money Market Funds | 7
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As a shareholder of the Fund, you incur ongoing costs, including management fees, shareholder servicing fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from February 1, 2020 to July 31, 2020.
Actual expenses
The “Actual” line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Actual” line under the heading entitled “Expenses paid during period” for your applicable class of shares to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The “Hypothetical” line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning account value 2-1-2020 | Ending account value 7-31-2020 | Expenses paid during the period1 | Annualized net expense ratio | |||||||||||||
Administrator Class | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,003.47 | $ | 1.59 | 0.32 | % | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.27 | $ | 1.61 | 0.32 | % | ||||||||
Institutional Class | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,004.08 | $ | 1.00 | 0.20 | % | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.87 | $ | 1.01 | 0.20 | % | ||||||||
Select Class | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,004.33 | $ | 0.65 | 0.13 | % | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,024.22 | $ | 0.65 | 0.13 | % | ||||||||
Service Class | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,002.89 | $ | 2.09 | 0.42 | % | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.77 | $ | 2.11 | 0.42 | % |
1 | Expenses paid is equal to the annualized net expense ratio of each class multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one-half-year period). |
8 | Institutional Money Market Funds
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Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Certificates of Deposit: 15.41% | ||||||||||||||||
ABN Amro Bank NV | 0.11 | % | 8-3-2020 | $ | 125,000,000 | $ | 125,000,000 | |||||||||
Banco Santander | 1.26 | 12-9-2020 | 47,000,000 | 47,124,812 | ||||||||||||
Banco Santander | 1.83 | 1-25-2021 | 25,000,000 | 25,159,014 | ||||||||||||
Bank of Montreal | 1.25 | 1-11-2021 | 60,000,000 | 60,275,517 | ||||||||||||
Bank of Nova Scotia (3 Month LIBOR +0.09%) ± | 0.52 | 2-10-2021 | 30,000,000 | 30,009,290 | ||||||||||||
Bank of Nova Scotia (3 Month LIBOR +0.13%) 144A± | 0.58 | 11-9-2020 | 17,000,000 | 17,006,408 | ||||||||||||
Citibank N.A. | 1.40 | 9-30-2020 | 30,000,000 | 30,064,973 | ||||||||||||
Credit Suisse New York (3 Month LIBOR +0.24%) ± | 0.57 | 12-4-2020 | 39,000,000 | 39,028,812 | ||||||||||||
Credit Suisse New York | 1.28 | 1-25-2021 | 45,000,000 | 45,211,674 | ||||||||||||
HSBC Bank USA NA | 0.11 | 8-3-2020 | 125,000,000 | 125,000,000 | ||||||||||||
Mitsubishi Trust & Bank Company | 0.39 | 1-21-2021 | 60,000,000 | 60,032,998 | ||||||||||||
MUFG Bank Limited of New York | 0.98 | 8-28-2020 | 60,000,000 | 60,040,717 | ||||||||||||
Nordea Bank AB (3 Month LIBOR +0.15%) ± | 0.42 | 10-13-2020 | 31,000,000 | 31,010,239 | ||||||||||||
Norinchukin Bank | 0.30 | 8-18-2020 | 90,000,000 | 90,006,385 | ||||||||||||
Norinchukin Bank | 0.30 | 9-1-2020 | 81,000,000 | 81,006,397 | ||||||||||||
Oversea-Chinese Banking | 0.20 | 9-3-2020 | 55,000,000 | 54,999,529 | ||||||||||||
Oversea-Chinese Banking | 1.25 | 10-8-2020 | 113,000,000 | 113,226,501 | ||||||||||||
Skandinaviska Enskilda Bank AB (3 Month LIBOR +0.15%) ± | 0.45 | 10-2-2020 | 35,000,000 | 35,009,743 | ||||||||||||
Standard Chartered Bank | 1.25 | 11-23-2020 | 75,000,000 | 75,227,140 | ||||||||||||
Sumitomo Mitsui Banking Corporation | 0.30 | 9-25-2020 | 60,000,000 | 60,010,908 | ||||||||||||
Sumitomo Mitsui Banking Corporation (1 Month LIBOR +0.18%) ± | 0.37 | 1-21-2021 | 60,000,000 | 59,996,390 | ||||||||||||
Sumitomo Mitsui Trust NY | 0.30 | 9-1-2020 | 45,000,000 | 45,006,276 | ||||||||||||
Sumitomo Mitsui Trust NY | 0.30 | 9-4-2020 | 65,000,000 | 65,009,599 | ||||||||||||
Sumitomo Mitsui Trust NY | 0.30 | 9-16-2020 | 55,000,000 | 55,009,470 | ||||||||||||
Sumitomo Mitsui Trust NY | 0.30 | 10-9-2020 | 52,000,000 | 52,010,098 | ||||||||||||
Svenska Handelsbanken (3 Month LIBOR +0.16%) ± | 0.43 | 10-16-2020 | 38,000,000 | 38,013,860 | ||||||||||||
Toronto Dominion Bank | 1.30 | 11-27-2020 | 30,000,000 | 30,107,023 | ||||||||||||
Toronto Dominion Bank | 1.30 | 12-30-2020 | 37,000,000 | 37,166,679 | ||||||||||||
Toronto Dominion Bank | 1.30 | 2-26-2021 | 30,000,000 | 30,183,284 | ||||||||||||
UBS AG Stamford Branch (1 Month LIBOR +1.25%) ± | 1.41 | 11-3-2020 | 65,000,000 | 65,184,887 | ||||||||||||
UBS AG Stamford Branch (1 Month LIBOR +1.25%) ± | 1.44 | 2-10-2021 | 70,000,000 | 70,379,086 | ||||||||||||
Total Certificates of Deposit (Cost $1,750,031,936) | 1,752,517,709 | |||||||||||||||
|
| |||||||||||||||
Commercial Paper: 38.96% | ||||||||||||||||
Asset-Backed Commercial Paper: 23.18% | ||||||||||||||||
Alpine Securitization LLC (3 Month LIBOR +0.08%) 144A± | 0.46 | 11-19-2020 | 25,000,000 | 25,002,185 | ||||||||||||
Anglesea Funding LLC 144A | 0.20 | 11-25-2020 | 58,000,000 | 58,012,050 | ||||||||||||
Anglesea Funding LLC 144A(z) | 0.22 | 8-3-2020 | 57,000,000 | 56,999,383 | ||||||||||||
Anglesea Funding LLC 144A(z) | 0.29 | 10-1-2020 | 30,000,000 | 29,988,995 | ||||||||||||
Anglesea Funding LLC 144A(z) | 0.30 | 9-1-2020 | 45,000,000 | 44,993,080 | ||||||||||||
Anglesea Funding LLC (1 Month LIBOR +0.45%) 144A± | 0.62 | 10-26-2020 | 35,000,000 | 35,010,611 | ||||||||||||
Anglesea Funding LLC (1 Month LIBOR +0.55%) 144A± | 0.73 | 10-21-2020 | 64,000,000 | 64,025,573 | ||||||||||||
Antalis SA 144A(z) | 0.28 | 10-15-2020 | 27,000,000 | 26,988,885 | ||||||||||||
Atlantic Asset Securization Corporation (z) | 1.36 | 8-4-2020 | 36,000,000 | 35,999,640 | ||||||||||||
Bedford Row Funding Corporation (3 Month LIBOR +0.09%) 144A± | 0.37 | 10-7-2020 | 33,000,000 | 33,006,447 | ||||||||||||
Bedford Row Funding Corporation (3 Month LIBOR +0.13%) 144A± | 0.49 | 11-24-2020 | 12,000,000 | 12,004,763 | ||||||||||||
Bennington Sark Cap Company 144A(z) | 0.20 | 8-13-2020 | 125,000,000 | 124,994,764 | ||||||||||||
Chesham Finance Limited 144A(z) | 0.10 | 8-3-2020 | 55,000,000 | 54,999,344 | ||||||||||||
Chesham Finance Limited 144A(z) | 0.10 | 8-3-2020 | 145,000,000 | 144,998,430 | ||||||||||||
Chesham Finance Limited 144A(z) | 0.10 | 8-3-2020 | 52,000,000 | 51,999,437 | ||||||||||||
Collateralized Commercial Paper V Company LLC (z) | 0.25 | 8-7-2020 | 53,300,000 | 53,298,653 | ||||||||||||
Collateralized Commercial Paper V Company LLC (z) | 0.25 | 8-12-2020 | 27,000,000 | 26,998,767 | ||||||||||||
Collateralized Commercial Paper V Company LLC (3 Month LIBOR | 0.29 | 10-27-2020 | 25,000,000 | 25,001,748 |
The accompanying notes are an integral part of these financial statements.
Institutional Money Market Funds | 9
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Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Asset-Backed Commercial Paper (continued) | ||||||||||||||||
Collateralized Commercial Paper V Company LLC (3 Month LIBOR | 0.41 | % | 9-28-2020 | $ | 65,000,000 | $ | 65,014,884 | |||||||||
Columbia Funding Company 144A(z) | 0.30 | 10-22-2020 | 25,000,000 | 24,984,149 | ||||||||||||
Concord Minutemen Capital Company 144A(z) | 0.26 | 8-10-2020 | 106,310,000 | 106,308,080 | ||||||||||||
Concord Minutemen Capital Company 144A(z) | 0.28 | 10-5-2020 | 19,000,000 | 18,992,894 | ||||||||||||
Concord Minutemen Capital Company 144A(z) | 0.30 | 8-24-2020 | 51,000,000 | 50,995,818 | ||||||||||||
Concord Minutemen Capital Company 144A(z) | 0.32 | 9-1-2020 | 32,000,000 | 31,995,725 | ||||||||||||
CRC Funding LLC 144A(z) | 1.26 | 10-9-2020 | 36,000,000 | 35,985,510 | ||||||||||||
Crown Point Capital Company 144A(z) | 1.26 | 10-15-2020 | 45,000,000 | 44,979,005 | ||||||||||||
Crown Point Capital Company 144A(z) | 1.76 | 8-3-2020 | 50,000,000 | 49,999,459 | ||||||||||||
Glencove Funding LLC 144A | 0.20 | 1-14-2021 | 30,000,000 | 29,982,348 | ||||||||||||
Great Bridge Capital Company LLC 144A(z) | 0.28 | 8-6-2020 | 72,000,000 | 71,998,920 | ||||||||||||
Great Bridge Capital Company LLC 144A(z) | 0.28 | 10-28-2020 | 55,000,000 | 54,975,661 | ||||||||||||
Institutional Secured Funding LLC 144A(z) | 0.25 | 8-3-2020 | 12,000,000 | 11,999,809 | ||||||||||||
Institutional Secured Funding LLC 144A(z) | 0.25 | 8-7-2020 | 64,000,000 | 63,997,262 | ||||||||||||
Ionic Capital Management LLC (z) | 0.35 | 9-18-2020 | 22,500,000 | 22,489,496 | ||||||||||||
Kells Funding LLC 144A(z) | 0.25 | 9-11-2020 | 60,000,000 | 59,995,380 | ||||||||||||
Kells Funding LLC 144A(z) | 0.25 | 10-8-2020 | 50,000,000 | 49,982,654 | ||||||||||||
Lexington Parker Capital Company LLC 144A(z) | 0.28 | 10-23-2020 | 15,000,000 | 14,992,090 | ||||||||||||
Lexington Parker Capital Company LLC 144A(z) | 0.28 | 10-26-2020 | 105,000,000 | 104,942,145 | ||||||||||||
Lexington Parker Capital Company LLC (z) | 0.29 | 10-20-2020 | 51,034,000 | 51,008,279 | ||||||||||||
Lexington Parker Capital Company LLC 144A(z) | 0.33 | 8-10-2020 | 35,000,000 | 34,998,658 | ||||||||||||
Lexington Parker Capital Company LLC 144A(z) | 0.37 | 9-8-2020 | 35,000,000 | 34,993,099 | ||||||||||||
LMA Americas LLC 144A(z) | 0.32 | 9-10-2020 | 46,400,000 | 46,388,216 | ||||||||||||
Mackinac Funding Company LLC 144A(z) | 0.34 | 10-8-2020 | 30,000,000 | 29,982,750 | ||||||||||||
Mackinac Funding Company LLC 144A(z) | 0.36 | 10-13-2020 | 48,000,000 | 47,970,400 | ||||||||||||
Mackinac Funding Company LLC 144A(z) | 0.36 | 10-20-2020 | 26,000,000 | 25,982,450 | ||||||||||||
Manhattan Asset Funding Company LLC 144A(z) | 0.16 | 8-21-2020 | 36,000,000 | 35,997,480 | ||||||||||||
Matchpoint Finance plc 144A(z) | 0.10 | 8-3-2020 | 130,000,000 | 129,998,905 | ||||||||||||
Mountcliff Funding LLC 144A(z) | 0.22 | 8-6-2020 | 45,000,000 | 44,999,025 | ||||||||||||
Mountcliff Funding LLC 144A(z) | 0.31 | 10-6-2020 | 65,000,000 | 64,968,426 | ||||||||||||
Mountcliff Funding LLC 144A(z) | 0.31 | 10-19-2020 | 22,000,000 | 21,985,333 | ||||||||||||
Mountcliff Funding LLC 144A(z) | 0.34 | 9-9-2020 | 27,000,000 | 26,994,510 | ||||||||||||
Mountcliff Funding LLC 144A(z) | 0.57 | 8-3-2020 | 122,000,000 | 121,998,678 | ||||||||||||
Old Line Funding LLC (1 Month LIBOR +0.14%) 144A± | 0.32 | 10-22-2020 | 15,000,000 | 15,000,008 | ||||||||||||
Ridgefield Funding Company 144A(z) | 0.31 | 9-2-2020 | 55,000,000 | 54,991,228 | ||||||||||||
Thunder Bay Funding LLC 144A(z) | 1.43 | 10-5-2020 | 30,000,000 | 29,991,530 | ||||||||||||
2,637,183,019 | ||||||||||||||||
|
| |||||||||||||||
Financial Company Commercial Paper: 6.21% | ||||||||||||||||
Australia & New Zealand Banking Group Limited (1 Month LIBOR | 0.22 | 8-28-2020 | 34,000,000 | 34,001,444 | ||||||||||||
Banco Santander Chile 144A(z) | 0.29 | 8-4-2020 | 15,000,000 | 14,999,517 | ||||||||||||
Citigroup Global Markets Incorporated 144A(z) | 1.31 | 9-3-2020 | 32,000,000 | 31,996,222 | ||||||||||||
Commonwealth Bank of Australia (3 Month LIBOR +0.15%) 144A± | 0.45 | 9-24-2020 | 35,000,000 | 35,009,910 | ||||||||||||
Commonwealth Bank of Australia (3 Month LIBOR +0.12%) 144A± | 0.57 | 11-9-2020 | 34,000,000 | 34,010,985 | ||||||||||||
DBS Bank Limited 144A(z) | 0.17 | 8-6-2020 | 50,000,000 | 49,998,834 | ||||||||||||
Dexia Credit Local SA 144A(z) | 0.22 | 10-19-2020 | 41,000,000 | 40,987,518 | ||||||||||||
Dexia Credit Local SA 144A(z) | 0.22 | 12-3-2020 | 30,000,000 | 29,980,104 | ||||||||||||
Dexia Credit Local SA 144A(z) | 0.23 | 10-16-2020 | 35,000,000 | 34,989,594 | ||||||||||||
Dexia Credit Local SA 144A(z) | 0.33 | 8-18-2020 | 105,000,000 | 104,994,225 | ||||||||||||
Federation des Caisses 144A(z) | 0.17 | 9-8-2020 | 35,000,000 | 34,994,995 | ||||||||||||
Federation des Caisses 144A(z) | 0.22 | 10-13-2020 | 26,300,000 | 26,291,134 | ||||||||||||
Federation des Caisses (3 Month LIBOR +0.10%) 144A± | 0.41 | 9-9-2020 | 70,000,000 | 70,010,490 | ||||||||||||
ING US Funding LLC (3 Month LIBOR +0.19%) 144A± | 0.49 | 10-1-2020 | 35,000,000 | 35,007,884 | ||||||||||||
National Australia Bank Limited (3 Month LIBOR +0.12%) 144A± | 0.43 | 12-11-2020 | 34,000,000 | 34,011,934 |
The accompanying notes are an integral part of these financial statements.
10 | Institutional Money Market Funds
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Financial Company Commercial Paper (continued) | ||||||||||||||||
National Securities Clearing Corporation 144A(z) | 0.17 | % | 8-21-2020 | $ | 35,000,000 | $ | 34,997,958 | |||||||||
National Securities Clearing Corporation 144A(z) | 0.17 | 8-25-2020 | 45,000,000 | 44,996,875 | ||||||||||||
Oversea-Chinese Banking Corporation Limited 144A(z) | 0.89 | 9-14-2020 | 15,000,000 | 14,996,156 | ||||||||||||
706,275,779 | ||||||||||||||||
|
| |||||||||||||||
Other Commercial Paper: 9.57% | ||||||||||||||||
BNG Bank NV 144A(z) | 0.16 | 8-31-2020 | 55,000,000 | 54,995,123 | ||||||||||||
BNG Bank NV (1 Month LIBOR +0.10%) 144A± | 0.26 | 11-6-2020 | 37,000,000 | 36,994,002 | ||||||||||||
Chevron Corporation 144A(z) | 1.26 | 9-15-2020 | 53,000,000 | 52,991,806 | ||||||||||||
China International Marine Containers (z) | 0.75 | 8-3-2020 | 100,000,000 | 99,999,250 | ||||||||||||
COFCO Capital Corporation (z) | 0.25 | 8-18-2020 | 27,030,000 | 27,028,027 | ||||||||||||
Erste Abwicklungsanstalt 144A(z) | 0.20 | 11-5-2020 | 60,000,000 | 59,971,061 | ||||||||||||
Erste Abwicklungsanstalt 144A(z) | 0.22 | 10-8-2020 | 55,000,000 | 54,984,714 | ||||||||||||
Erste Abwicklungsanstalt 144A(z) | 0.22 | 10-13-2020 | 88,900,000 | 88,872,041 | ||||||||||||
Exxon Mobil Corporation (z) | 0.50 | 9-23-2020 | 32,000,000 | 31,993,952 | ||||||||||||
Exxon Mobil Corporation (z) | 0.74 | 8-5-2020 | 10,000,000 | 9,999,881 | ||||||||||||
Exxon Mobil Corporation (z) | 0.82 | 9-22-2020 | 48,000,000 | 47,991,167 | ||||||||||||
Exxon Mobil Corporation (z) | 2.12 | 8-17-2020 | 60,000,000 | 59,997,649 | ||||||||||||
GlaxoSmithKline LLC 144A(z) | 1.41 | 8-14-2020 | 30,000,000 | 29,995,345 | ||||||||||||
Koch Industries Incorporated (z) | 0.22 | 8-3-2020 | 40,000,000 | 39,999,833 | ||||||||||||
Koch Industries Incorporated (z) | 0.30 | 9-21-2020 | 62,000,000 | 61,988,805 | ||||||||||||
Nederlandse Waterschapsbank NV 144A(z) | 0.19 | 11-2-2020 | 92,000,000 | 91,954,838 | ||||||||||||
Nederlandse Waterschapsbank NV 144A(z) | 0.20 | 10-28-2020 | 34,000,000 | 33,984,030 | ||||||||||||
Nederlandse Waterschapsbank NV 144A(z) | 0.21 | 10-8-2020 | 39,600,000 | 39,586,110 | ||||||||||||
Nederlandse Waterschapsbank NV 144A(z) | 0.22 | 10-13-2020 | 59,000,000 | 58,977,563 | ||||||||||||
Nederlandse Waterschapsbank NV 144A(z) | 0.30 | 10-5-2020 | 50,000,000 | 49,983,317 | ||||||||||||
Province of Alberta 144A(z) | 1.43 | 2-11-2021 | 16,000,000 | 15,979,200 | ||||||||||||
Toyota Credit Canada Incorporated (z) | 0.31 | 11-30-2020 | 30,000,000 | 29,968,077 | ||||||||||||
1,088,235,041 | ||||||||||||||||
|
| |||||||||||||||
Total Commercial Paper (Cost $4,430,846,174) |
| 4,431,693,839 | ||||||||||||||
|
| |||||||||||||||
Municipal Obligations: 20.71% |
| |||||||||||||||
Arizona: 0.14% |
| |||||||||||||||
Variable Rate Demand Note ø: 0.14% |
| |||||||||||||||
Arizona Health Facility Authority Floater Series 2015 XF 2050 (Health Revenue, Morgan Stanley Bank LIQ) 144A | 0.19 | 1-1-2037 | 16,000,000 | 16,000,000 | ||||||||||||
|
| |||||||||||||||
Arkansas: 0.27% |
| |||||||||||||||
Variable Rate Demand Note ø: 0.27% | ||||||||||||||||
Osceola AR Point Energy Association LLC Project (Water & Sewer Revenue, Goldman Sachs Bank USA LOC) | 0.18 | 4-1-2036 | 31,000,000 | 31,000,000 | ||||||||||||
|
| |||||||||||||||
California: 4.24% |
| |||||||||||||||
Other Municipal Debt: 1.76% | ||||||||||||||||
California Department of Water Resources Series 1 (Water & Sewer Revenue, Bank of America NA LIQ) | 0.15 | 8-14-2020 | 11,411,000 | 11,411,219 | ||||||||||||
California Department of Water Resources Series 1 (Water & Sewer Revenue, Bank of America NA LIQ) | 0.15 | 8-14-2020 | 25,614,000 | 25,614,492 | ||||||||||||
California Department of Water Resources Series 1 (Water & Sewer Revenue, Bank of America NA SPA) | 0.21 | 8-14-2020 | 9,324,000 | 9,324,035 | ||||||||||||
California Department of Water Resources Series 1 (Water & Sewer Revenue, Bank of America NA LIQ) | 0.21 | 8-14-2020 | 30,356,000 | 30,356,000 | ||||||||||||
California Series B-2 (GO Revenue) | 0.23 | 10-15-2020 | 12,000,000 | 12,000,000 |
The accompanying notes are an integral part of these financial statements.
Institutional Money Market Funds | 11
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Other Municipal Debt (continued) | ||||||||||||||||
California Series B-2 (GO Revenue) | 0.28 | % | 9-10-2020 | $ | 21,000,000 | $ | 21,000,932 | |||||||||
California Series B-2 (GO Revenue) | 0.33 | 8-6-2020 | 20,000,000 | 20,000,666 | ||||||||||||
California Series B-7 (GO Revenue, State Street Bank & Trust Company LOC) | 0.30 | 9-3-2020 | 16,480,000 | 16,480,300 | ||||||||||||
Los Angeles County Metropolitan Transportation Authority Series A (Tax Revenue) | 0.26 | 8-17-2020 | 10,500,000 | 10,500,198 | ||||||||||||
San Francisco CA Public Utilities Commission of the City & County Tender Option Bond Trust Receipts/Certificates Series A (Water & Sewer Revenue) | 0.25 | 9-17-2020 | 16,000,000 | 16,001,045 | ||||||||||||
San Jose CA International Airport Subordinated Series B (Airport Revenue) | 0.35 | 8-12-2020 | 11,912,000 | 11,912,783 | ||||||||||||
University of California Series A (Education Revenue) | 0.22 | 8-7-2020 | 15,000,000 | 15,000,086 | ||||||||||||
199,601,756 | ||||||||||||||||
|
| |||||||||||||||
Variable Rate Demand Notes ø: 2.48% | ||||||||||||||||
California Kindergarten Series A1 (GO Revenue, Citibank NA LOC) | 0.11 | 5-1-2034 | 31,000,000 | 31,000,000 | ||||||||||||
California Kindergarten University Public Education Facilities Series 2003-A (GO Revenue, Bank of Montreal LOC) | 0.11 | 5-1-2033 | 29,380,000 | 29,380,000 | ||||||||||||
Mizuho Tender Option Bond Trust Receipts/Floater Certificates Series 2019-MIZ9003 (Tax Revenue, Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ) 144A | 0.38 | 3-1-2036 | 8,500,000 | 8,500,000 | ||||||||||||
San Diego CA Housing Revenue Park and Market Apartments Series A (Housing Revenue, Bank of Tokyo-Mitsubishi LOC) | 0.17 | 6-1-2057 | 33,600,000 | 33,600,000 | ||||||||||||
San Francisco CA City & County Apartments Community International Revenue Series C (Airport Revenue, Sumitomo Mitsui Banking LOC) | 0.17 | 5-1-2058 | 43,330,000 | 43,330,000 | ||||||||||||
San Francisco CA City & County Housing Revenue Block 8 Tower Apartments Series H1 (Housing Revenue, Bank of China LOC) | 0.27 | 11-1-2056 | 41,935,000 | 41,935,000 | ||||||||||||
San Francisco CA City & County Housing Revenue Block 8 Tower Apartments Series H2 (Housing Revenue, Bank of China LOC) | 0.25 | 11-1-2056 | 50,870,000 | 50,870,000 | ||||||||||||
Tender Option Bond Trust Receipts/Various States (Transportation Revenue, Bank of America NA LIQ) 144A | 0.16 | 4-1-2049 | 14,400,000 | 14,400,000 | ||||||||||||
University of California Revenues Series AL1 (Education Revenue) | 0.11 | 5-15-2048 | 29,325,000 | 29,325,000 | ||||||||||||
282,340,000 | ||||||||||||||||
|
| |||||||||||||||
Colorado: 0.96% |
| |||||||||||||||
Variable Rate Demand Notes ø: 0.96% | ||||||||||||||||
Colorado HFA Adjusted Taxable Single Family Mortgage (Housing Revenue, GNMA/FNMA/FHLMC Insured, FHLB SPA) | 0.20 | 11-1-2050 | 15,000,000 | 15,000,000 | ||||||||||||
Colorado HFA MFHR Class II Series B (Housing Revenue, FHLB SPA) | 0.27 | 5-1-2052 | 68,390,000 | 68,390,000 | ||||||||||||
Colorado Southern Ute Indian Tribe Reservation Series 2007 (Miscellaneous Revenue) 144A | 0.17 | 1-1-2027 | 26,000,000 | 26,000,000 | ||||||||||||
109,390,000 | ||||||||||||||||
|
| |||||||||||||||
District of Columbia: 0.13% |
| |||||||||||||||
Other Municipal Debt: 0.13% | ||||||||||||||||
District of Columbia (GO Revenue) (z) | 0.30 | 9-1-2020 | 15,000,000 | 14,995,478 | ||||||||||||
|
| |||||||||||||||
Florida: 0.51% |
| |||||||||||||||
Variable Rate Demand Notes ø: 0.51% | ||||||||||||||||
Miami-Dade County FL Water and Wastewater System (Water & Sewer Revenue, AGM Insured, Credit Suisse LIQ) 144A | 0.19 | 10-1-2033 | 23,750,000 | 23,750,000 | ||||||||||||
Orlando FL Utilities Commission Series 1 (Utilities Revenue, TD Bank NA SPA) | 0.15 | 10-1-2033 | 34,010,000 | 34,010,000 | ||||||||||||
57,760,000 | ||||||||||||||||
|
|
The accompanying notes are an integral part of these financial statements.
12 | Institutional Money Market Funds
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Georgia: 0.83% |
| |||||||||||||||
Variable Rate Demand Notes ø: 0.83% | ||||||||||||||||
Macon-Bibb County GA Industrial Authority Kumho Tire Georgia Incorporated Series A (Industrial Development Revenue, Korea Development Bank LOC) | 0.38 | % | 12-1-2022 | $ | 34,000,000 | $ | 34,000,000 | |||||||||
Macon-Bibb County GA Industrial Authority Kumho Tire Georgia Incorporated Series A (Industrial Development Revenue, Korea Development Bank LOC) | 0.38 | 12-1-2022 | 61,000,000 | 61,000,000 | ||||||||||||
95,000,000 | ||||||||||||||||
|
| |||||||||||||||
Illinois: 1.03% | ||||||||||||||||
Variable Rate Demand Notes ø: 1.03% | ||||||||||||||||
Illinois Development Finance Authority YMCA Metropolitan Chicago Project Series 2001 Illinois Development Finance Authority (Miscellaneous Revenue, BMO Harris Bank NA LOC) | 0.18 | 6-1-2029 | 27,600,000 | 27,600,000 | ||||||||||||
Illinois Finance Authority North Park University Project (Education Revenue, U.S. Bank NA LOC) | 0.14 | 10-1-2029 | 12,000,000 | 12,000,000 | ||||||||||||
Illinois Finance Authority Revenue University of Chicago Series 2008 (Education Revenue, U.S. Bank NA SPA) | 0.16 | 7-1-2038 | 40,243,000 | 40,243,000 | ||||||||||||
Illinois Finance Authority Revenue Various North Shore University Health System Series B (Health Revenue, JPMorgan Chase & Company SPA) | 0.14 | 8-15-2049 | 37,000,000 | 37,000,000 | ||||||||||||
116,843,000 | ||||||||||||||||
|
| |||||||||||||||
Indiana: 0.36% |
| |||||||||||||||
Other Municipal Debt: 0.36% | ||||||||||||||||
Indiana Finance Authority Trinity Health Credit Group Series D-2 (Miscellaneous Revenue) | 0.21 | 8-18-2020 | 40,710,000 | 40,709,397 | ||||||||||||
|
| |||||||||||||||
Kansas: 0.08% |
| |||||||||||||||
Variable Rate Demand Note ø: 0.08% | ||||||||||||||||
Olathe KS Multi-Modal-Diamant Boart Series B (Industrial Development Revenue, Svenska HandelsBanken LOC) | 0.68 | 3-1-2027 | 8,900,000 | 8,900,000 | ||||||||||||
|
| |||||||||||||||
Kentucky: 0.37% |
| |||||||||||||||
Variable Rate Demand Notes ø: 0.37% | ||||||||||||||||
Daviess County KY Waste Disposal Facility Revenue Scott Paper Company Project B (Industrial Development Revenue) | 0.19 | 12-1-2023 | 25,000,000 | 25,000,000 | ||||||||||||
Kentucky Housing Corporation Series O (Housing Revenue, Kentucky Housing Corporation SPA) | 0.21 | 1-1-2036 | 9,855,000 | 9,855,000 | ||||||||||||
Kentucky Housing Corporation Series T (Housing Revenue, Kentucky Housing Corporation SPA) | 0.21 | 7-1-2037 | 6,775,000 | 6,775,000 | ||||||||||||
41,630,000 | ||||||||||||||||
|
| |||||||||||||||
Maine: 0.62% |
| |||||||||||||||
Variable Rate Demand Notes ø: 0.62% | ||||||||||||||||
Maine Housing Authority Mortgage Purchase Various Taxable Series E (Housing Revenue, Barclays Bank plc SPA) | 0.18 | 11-15-2052 | 50,300,000 | 50,300,000 | ||||||||||||
Portland ME Pension Bonds (GO Revenue, Sumitomo Mitsui Banking SPA) | 0.25 | 6-1-2026 | 19,845,000 | 19,845,000 | ||||||||||||
70,145,000 | ||||||||||||||||
|
|
The accompanying notes are an integral part of these financial statements.
Institutional Money Market Funds | 13
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Maryland: 0.26% |
| |||||||||||||||
Other Municipal Debt: 0.13% | ||||||||||||||||
Montgomery County MD BAN Series 2009A (GO Revenue, JPMorgan Chase & Company LIQ) | 0.20 | % | 8-25-2020 | $ | 15,000,000 | $ | 15,000,206 | |||||||||
|
| |||||||||||||||
Variable Rate Demand Note ø: 0.13% |
| |||||||||||||||
Tender Option Bond Trust Receipts/Certificates(Miscellaneous Revenue, JPMorgan Chase & Company LIQ) 144A | 0.20 | 5-1-2026 | 15,000,000 | 15,000,000 | ||||||||||||
|
| |||||||||||||||
Massachusetts: 0.15% |
| |||||||||||||||
Other Municipal Debt: 0.15% | ||||||||||||||||
Massachusetts Educational Financing Authority Series A (Education Revenue, Royal Bank of Canada LOC) | 0.25 | 9-10-2020 | 17,000,000 | 17,000,377 | ||||||||||||
|
| |||||||||||||||
Michigan: 0.31% |
| |||||||||||||||
Variable Rate Demand Note ø: 0.31% | ||||||||||||||||
Michigan Housing Development AMT Refunding Bond Series B (Housing Revenue, Industrial & Commercial Bank of China Limited SPA) | 0.29 | 6-1-2038 | 35,340,000 | 35,340,000 | ||||||||||||
|
| |||||||||||||||
Missouri: 0.25% |
| |||||||||||||||
Variable Rate Demand Note ø: 0.25% | ||||||||||||||||
Missouri HEFA Series 2018E (Health Revenue) | 0.14 | 6-1-2036 | 28,110,000 | 28,110,000 | ||||||||||||
|
| |||||||||||||||
New Hampshire: 0.40% |
| |||||||||||||||
Variable Rate Demand Note ø: 0.40% | ||||||||||||||||
New Hampshire Business Finance Authority CJ Foods Manufacturing Beaumont Corporation Series A (Industrial Development Revenue, Kookmin Bank LOC) 144A | 0.38 | 10-1-2028 | 45,000,000 | 45,000,000 | ||||||||||||
|
| |||||||||||||||
New Jersey: 0.41% |
| |||||||||||||||
Variable Rate Demand Note ø: 0.41% | ||||||||||||||||
Jets Stadium Development Series A-4B (Miscellaneous Revenue, Sumitomo Mitsui Banking Corporation LOC) 144A | 0.29 | 4-1-2047 | 46,900,000 | 46,900,000 | ||||||||||||
|
| |||||||||||||||
New York: 3.17% |
| |||||||||||||||
Other Municipal Debt: 1.02% | ||||||||||||||||
Long Island Power Authority Series 2015-GR1A (Utilities Revenue, TD Bank NA LOC) | 0.16 | 9-1-2020 | 15,000,000 | 15,000,000 | ||||||||||||
Long Island Power Authority Series 2015-GR5A (Utilities Revenue) | 0.21 | 8-5-2020 | 40,000,000 | 40,000,056 | ||||||||||||
New York Dormitory Authority Personal Income Tax Revenue Series B (Tax Revenue) | 5.00 | 3-31-2021 | 43,000,000 | 44,371,610 | ||||||||||||
Port Authority of NY & NJ Series C (Airport Revenue) | 0.45 | 10-15-2020 | 4,000,000 | 4,000,166 | ||||||||||||
Port Authority of NY & NJ Series C (Airport Revenue) | 0.50 | 9-24-2020 | 8,000,000 | 8,000,358 | ||||||||||||
Port Authority of NY & NJ Series C (Airport Revenue) | 0.55 | 9-3-2020 | 4,000,000 | 4,000,371 | ||||||||||||
115,372,561 | ||||||||||||||||
|
| |||||||||||||||
Variable Rate Demand Notes ø: 2.15% | ||||||||||||||||
Metropolitan Transportation Authority Revenue Series 2012G (Transportation Revenue, Barclays Bank plc LOC) | 0.14 | 11-1-2032 | 45,100,000 | 45,100,000 | ||||||||||||
New York Dormitory Authority Personal Income Tax Revenue Series XFT910 (Tax Revenue, Citibank NA LIQ) 144A | 0.33 | 3-15-2040 | 4,000,000 | 4,000,000 | ||||||||||||
New York Dormitory Authority Secondary Issues Floater Series B-4 (Tax Revenue, Morgan Stanley Bank LIQ) 144A | 0.55 | 3-15-2040 | 16,000,000 | 16,000,000 |
The accompanying notes are an integral part of these financial statements.
14 | Institutional Money Market Funds
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Variable Rate Demand Notes ø (continued) | ||||||||||||||||
New York City NY Transitional Finance Authority Revenue Variable Subordinate Bonds Future Tax Secured Fiscal 2018 Series C-6 (Tax Revenue, Sumitomo Mitsui Banking SPA) | 0.19 | % | 5-1-2047 | $ | 36,195,000 | $ | 36,195,000 | |||||||||
New York HFA 222 East 44th Street Series B (Housing Revenue, Bank of China LOC) | 0.22 | 5-1-2050 | 11,165,000 | 11,165,000 | ||||||||||||
New York Municipal Water Finance Authority Series T-30001-I (Water & Sewer Revenue, Citibank NA LIQ) 144A | 0.33 | 6-15-2044 | 16,000,000 | 16,000,000 | ||||||||||||
New York NY Adjusted Fiscal 2017 Subordinate Bonds Series A-4 (GO Revenue, Citibank NA LOC) | 0.14 | 8-1-2044 | 14,355,000 | 14,355,000 | ||||||||||||
New York NY Municipal Water Finance Authority Fiscal 2015 Series BB-2 (Water & Sewer Revenue, Mizuho Bank Limited SPA) | 0.14 | 6-15-2049 | 29,570,000 | 29,570,000 | ||||||||||||
New York NY Transitional Finance Authority Future Tax Secured Tax-Exempt Bond Fiscal 2015 Subordinate Bonds Series A-3 (Tax Revenue, Mizuho Bank Limited SPA) | 0.16 | 8-1-2043 | 37,425,000 | 37,425,000 | ||||||||||||
New York State Housing Finance Agency (Housing Revenue, FHLMC LIQ) | 0.24 | 11-1-2036 | 10,000,000 | 10,000,000 | ||||||||||||
New York Various Fiscal 2014 Series I Subordinated Series (GO Revenue, Citibank NA LOC) | 0.15 | 3-1-2044 | 25,000,000 | 25,000,000 | ||||||||||||
244,810,000 | ||||||||||||||||
|
| |||||||||||||||
North Carolina: 0.26% |
| |||||||||||||||
Variable Rate Demand Note ø: 0.26% | ||||||||||||||||
North Carolina Medical Care Commission Novant Health Obligated Group Series A (Health Revenue, JPMorgan Chase & Company SPA) | 0.18 | 11-1-2034 | 30,000,000 | 30,000,000 | ||||||||||||
|
| |||||||||||||||
Oregon: 0.13% |
| |||||||||||||||
Variable Rate Demand Note ø: 0.13% | ||||||||||||||||
Portland OR Portland International Airport (Airport Revenue, Bank of China LOC) | 0.25 | 7-1-2026 | 14,685,000 | 14,685,000 | ||||||||||||
|
| |||||||||||||||
Other: 2.15% |
| |||||||||||||||
Variable Rate Demand Notes ø: 1.91% | ||||||||||||||||
Fortenbery Children 2017 Irrevocable Trust (Miscellaneous Revenue, FHLB LOC) | 0.22 | 5-1-2037 | 12,275,000 | 12,275,000 | ||||||||||||
JPMorgan Chase Puttable Tax-Exempt ReceiptsTrust Various Series 5039 (JPMorgan Chase & Company LIQ, JPMorgan Chase & Company LOC) | 0.42 | 11-16-2022 | 70,000,000 | 70,000,000 | ||||||||||||
Taxable Municipal Funding Trust Various States Floaters Series 2019-007 (GO Revenue, Barclays Bank plc LOC) 144A | 0.56 | 5/1/2029 | 11,000,000 | 11,000,000 | ||||||||||||
Taxable Municipal Funding Trust Various States Floaters Series 2019-014 (GO Revenue, Barclays Bank plc LOC) 144A | 0.56 | 9-1-2027 | 20,985,000 | 20,985,000 | ||||||||||||
Taxable Municipal Funding Trust Various States Series 2019-019 (Utilities Revenue, Barclays Bank plc LOC) 144A | 0.56 | 11-26-2020 | 57,985,000 | 57,985,000 | ||||||||||||
Taxable Municipal Funding Trust Various States Floaters Series 2020-003 (GO Revenue, Barclays Bank plc LOC) 144A | 0.56 | 1-16-2025 | 14,645,000 | 14,645,000 | ||||||||||||
Taxable Municipal Funding Trust Various States Floaters Series 2020-008 (GO Revenue, Barclays Bank plc LOC) 144A | 0.56 | 5-1-2024 | 30,000,000 | 30,000,000 | ||||||||||||
216,890,000 | ||||||||||||||||
|
| |||||||||||||||
Tennessee: 0.40% |
| |||||||||||||||
Variable Rate Demand Note ø: 0.40% | ||||||||||||||||
Shelby County TN Various Public Improvement and School Series B (GO Revenue) | 0.16 | 3-1-2031 | 45,320,000 | 45,320,000 | ||||||||||||
|
|
The accompanying notes are an integral part of these financial statements.
Institutional Money Market Funds | 15
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Texas: 3.34% |
| |||||||||||||||
Other Municipal Debt: 1.73% | ||||||||||||||||
Dallas Fort Worth TX International Airport Series I (Airport Revenue) | 0.65 | % | 8-28-2020 | $ | 13,225,000 | $ | 13,224,879 | |||||||||
Dallas Fort Worth TX International Airport Series I (Airport Revenue) | 0.65 | 9-8-2020 | 9,000,000 | 9,001,136 | ||||||||||||
Harris County TX Flood Control District Series H (Miscellaneous Revenue) | 0.25 | 9-17-2020 | 55,000,000 | 54,999,274 | ||||||||||||
Houston TX Series B-1 (Utilities Revenue, Bank of America NA LIQ) | 0.25 | 10-1-2020 | 15,000,000 | 15,000,764 | ||||||||||||
Texas PFA (Miscellaneous Revenue) | 0.45 | 8-4-2020 | 17,000,000 | 17,000,670 | ||||||||||||
Texas Tax & Revenue Anticipation Notes (GO Revenue) | 4.00 | 8-27-2020 | 57,165,000 | 57,311,611 | ||||||||||||
University of Texas Permanent University Fund Series A (Education Revenue) | 0.16 | 9-9-2020 | 15,000,000 | 15,000,329 | ||||||||||||
University of Texas Permanent University Fund Series A (Education Revenue) | 0.17 | 8-12-2020 | 15,000,000 | 15,000,149 | ||||||||||||
196,538,812 | ||||||||||||||||
|
| |||||||||||||||
Variable Rate Demand Notes ø: 1.61% | ||||||||||||||||
Gulf Coast TX IDA ExxonMobil Project Series 2012 (Industrial Development Revenue) | 0.14 | 11-1-2041 | 65,840,000 | 65,840,000 | ||||||||||||
Lower Neches Valley TX Authority Industrial Development Corporation ExxonMobil Project Series 2010 (Industrial Development Revenue, Exxon Mobil Corporation) | 0.12 | 11-1-2038 | 24,600,000 | 24,600,000 | ||||||||||||
Texas Multi-Mode Mobility Fund Series B (Transportation Revenue) | 0.15 | 4-1-2036 | 50,560,000 | 50,560,000 | ||||||||||||
University of Texas Permanent University Funding System Series A (Education Revenue) | 0.13 | 7-1-2037 | 42,650,000 | 42,650,000 | ||||||||||||
183,650,000 | ||||||||||||||||
|
| |||||||||||||||
Virginia: 0.18% | ||||||||||||||||
Other Municipal Debt: 0.18% | ||||||||||||||||
Staunton City VA IDA Series 8-A1 (Industrial Development Revenue) | 0.21 | 8-6-2020 | 20,825,000 | 20,824,931 | ||||||||||||
|
| |||||||||||||||
Total Municipal Obligations (Cost $2,354,620,721) | 2,354,756,518 | |||||||||||||||
|
| |||||||||||||||
Closed End Municipal Bond Fund Obligations: 0.26% | ||||||||||||||||
Invesco Dynamic Credit Opportunities Fund Variable Rate Demand Preferred Shares Series W-7 (300 shares) 0.36% 144A§øø | 30,000,000 | 30,000,000 | ||||||||||||||
|
| |||||||||||||||
Total Closed End Municipal Bond Fund Obligations (Cost $30,000,000) | 30,000,000 | |||||||||||||||
|
| |||||||||||||||
Other Instruments: 1.07% | ||||||||||||||||
Altoona Blair County Development Corporation 144A§øø | 0.22 | 9-1-2038 | 14,850,000 | 14,850,000 | ||||||||||||
Altoona Blair County Development Corporation 144A§øø | 0.22 | 9-1-2038 | 39,350,000 | 39,350,000 | ||||||||||||
Gerald J Rubin Special Trust §øø | 0.22 | 12-1-2048 | 14,215,000 | 14,215,000 | ||||||||||||
Keep Memory Alive §øø | 0.20 | 5-1-2037 | 33,210,000 | 33,210,000 | ||||||||||||
Ken-Vin Life Company LLC §øø | 0.22 | 12-1-2059 | 19,645,000 | 19,645,000 | ||||||||||||
Total Other Instruments (Cost $121,270,000) | 121,270,000 | |||||||||||||||
|
| |||||||||||||||
Other Notes: 0.72% | ||||||||||||||||
Corporate Bonds and Notes: 0.96% | ||||||||||||||||
American Association of Retired Persons § | 0.17 | 5-1-2031 | 45,000,000 | 45,000,000 | ||||||||||||
Cellmark Incorporated Taxable Notes Series 2018A § | 0.22 | 6-1-2038 | 37,000,000 | 37,000,000 | ||||||||||||
SSAB AB Series A §øø | 0.22 | 6-1-2035 | 28,000,000 | 28,000,000 | ||||||||||||
Total Other Notes (Cost $110,000,000) | 110,000,000 | |||||||||||||||
|
| |||||||||||||||
Repurchase Agreements ^^: 6.81% | ||||||||||||||||
Credit Agricole, dated 7-31-2020, maturity value $194,176,618 (1) | 0.10 | 8-3-2020 | 194,175,000 | 194,175,000 | ||||||||||||
Standard Chartered Bank, dated 7-31-2020, maturity value $580,004,833 (2) | 0.10 | 8-3-2020 | 580,000,000 | 580,000,000 | ||||||||||||
Total Repurchase Agreements (Cost $774,175,000) | 774,175,000 | |||||||||||||||
|
|
The accompanying notes are an integral part of these financial statements.
16 | Institutional Money Market Funds
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Treasury Debt: 15.78% | ||||||||||||||||
U.S. Cash Management Bill (z) | 0.15 | % | 10-27-2020 | $ | 200,000,000 | $ | 199,955,138 | |||||||||
U.S. Cash Management Bill (z) | 0.15 | 10-20-2020 | 192,000,000 | 191,962,560 | ||||||||||||
U.S. Cash Management Bill (z) | 0.16 | 12-15-2020 | 110,000,000 | 109,959,056 | ||||||||||||
U.S. Cash Management Bill (z) | 0.16 | 8-11-2020 | 105,000,000 | 104,998,016 | ||||||||||||
U.S. Cash Management Bill (z) | 0.17 | 11-3-2020 | 126,000,000 | 125,969,410 | ||||||||||||
U.S. Cash Management Bill (z) | 0.18 | 11-10-2020 | 125,000,000 | 124,974,219 | ||||||||||||
U.S. Cash Management Bill (z) | 0.25 | 9-15-2020 | 118,000,000 | 117,986,258 | ||||||||||||
U.S. Treasury Bill (z) | 0.14 | 9-17-2020 | 130,000,000 | 129,984,562 | ||||||||||||
U.S. Treasury Bill (z) | 0.15 | 11-5-2020 | 140,000,000 | 139,965,272 | ||||||||||||
U.S. Treasury Bill (z) | 0.16 | 9-24-2020 | 130,000,000 | 129,981,223 | ||||||||||||
U.S. Treasury Bill (z) | 0.16 | 11-19-2020 | 135,000,000 | 134,958,488 | ||||||||||||
U.S. Treasury Bill (z) | 0.16 | 11-27-2020 | 96,000,000 | 95,967,520 | ||||||||||||
U.S. Treasury Bill (z) | 0.17 | 12-3-2020 | 96,000,000 | 95,965,026 | ||||||||||||
U.S. Treasury Bill (z) | 0.19 | 12-10-2020 | 92,000,000 | 91,965,385 | ||||||||||||
Total Treasury Debt (Cost $1,794,310,209) | 1,794,592,133 | |||||||||||||||
|
|
Total investments in securities (Cost $11,365,254,040) | 99.96 | % | 11,369,005,199 | |||||
Other assets and liabilities, net | 0.04 | 4,901,375 | ||||||
|
|
|
| |||||
Total net assets | 100.00 | % | $ | 11,373,906,574 | ||||
|
|
|
|
± | Variable rate investment. The rate shown is the rate in effect at period end. |
144A | The security may be resold in transactions exempt from registration, normally to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933. |
(z) | Zero coupon security. The rate represents the current yield to maturity. |
ø | Variable rate demand notes are subject to a demand feature which reduces the effective maturity. The maturity date shown represents the final maturity date of the security. The interest rate is determined and reset by the issuer daily, weekly, or monthly depending upon the terms of the security. The rate shown is the rate in effect at period end. |
§ | The security is subject to a demand feature which reduces the effective maturity. |
øø | The interest rate is determined and reset by the issuer periodically depending upon the terms of the security. The rate shown is the rate in effect at period end. |
^^ | Collateralized by: |
(1) | U.S. government securities, 3.00% to 4.50%, 12-1-2040 to 1-20-2050, fair value including accrued interest is $200,000,250. |
(2) | U.S. government securities, 0.00% to 6.25%, 8-13-2020 to 6-20-2050, fair value including accrued interest is $592,078,996. |
Abbreviations:
AGM | Assured Guaranty Municipal |
AMT | Alternative minimum tax |
BAN | Bond anticipation notes |
FHLB | Federal Home Loan Bank |
FHLMC | Federal Home Loan Mortgage Corporation |
FNMA | Federal National Mortgage Association |
GNMA | Government National Mortgage Association |
GO | General obligation |
HEFA | Health & Educational Facilities Authority |
HFA | Housing Finance Authority |
IDA | Industrial Development Authority |
LIBOR | London Interbank Offered Rate |
LIQ | Liquidity agreement |
LOC | Letter of credit |
MFHR | Multifamily housing revenue |
PFA | Public Finance Authority |
SPA | Standby purchase agreement |
The accompanying notes are an integral part of these financial statements.
Institutional Money Market Funds | 17
Table of Contents
Statement of assets and liabilities—July 31, 2020 (unaudited)
Assets | ||||
Investments in unaffiliated securities, at value (cost $11,365,254,040) | $ | 11,369,005,199 | ||
Cash | 27,741 | |||
Receivable for investments sold | 2,660,000 | |||
Receivable for Fund shares sold | 150 | |||
Receivable for interest | 6,592,449 | |||
Prepaid expenses and other assets | 216,275 | |||
|
| |||
Total assets | 11,378,501,814 | |||
|
| |||
Liabilities | ||||
Payable for Fund shares redeemed | 100,000 | |||
Management fee payable | 2,972,026 | |||
Dividends payable | 573,554 | |||
Administration fees payable | 488,549 | |||
Shareholder report expenses payable | 257,310 | |||
Custody and accounting fees payable | 110,019 | |||
Trustees’ fees and expenses payable | 2,843 | |||
Accrued expenses and other liabilities | 90,939 | |||
|
| |||
Total liabilities | 4,595,240 | |||
|
| |||
Total net assets | $ | 11,373,906,574 | ||
|
| |||
Net assets consist of | ||||
Paid-in capital | $ | 11,374,067,754 | ||
Total distributable loss | (161,180 | ) | ||
|
| |||
Total net assets | $ | 11,373,906,574 | ||
|
| |||
Computation of net asset value per share | ||||
Net assets – Administrator Class | $ | 124,019,238 | ||
Shares outstanding – Administrator Class1 | 123,951,847 | |||
Net asset value per share – Administrator Class | $1.0005 | |||
Net assets – Institutional Class | $ | 1,563,654,395 | ||
Shares outstanding – Institutional Class1 | 1,562,805,043 | |||
Net asset value per share – Institutional Class | $1.0005 | |||
Net assets – Select Class | $ | 9,641,511,483 | ||
Shares outstanding – Select Class1 | 9,635,616,860 | |||
Net asset value per share – Select Class | $1.0006 | |||
Net assets – Service Class | $ | 44,721,458 | ||
Shares outstanding – Service Class1 | 44,700,688 | |||
Net asset value per share – Service Class | $1.0005 |
1 | The Fund has an unlimited number of authorized shares. |
The accompanying notes are an integral part of these financial statements.
18 | Institutional Money Market Funds
Table of Contents
Statement of operations—six months ended July 31, 2020 (unaudited)
Investment income | ||||
Interest | $ | 42,941,789 | ||
|
| |||
Expenses | ||||
Management fee | 6,832,205 | |||
Administration fees | ||||
Administrator Class | 64,585 | |||
Institutional Class | 657,146 | |||
Select Class | 1,524,225 | |||
Service Class | 30,311 | |||
Shareholder servicing fees | ||||
Administrator Class | 64,562 | |||
Service Class | 56,800 | |||
Custody and accounting fees | 159,605 | |||
Professional fees | 31,392 | |||
Registration fees | 42,262 | |||
Shareholder report expenses | 16,467 | |||
Trustees’ fees and expenses | 9,493 | |||
Other fees and expenses | 65,838 | |||
|
| |||
Total expenses | 9,554,891 | |||
Less: Fee waivers and/or expense reimbursements | ||||
Fund-level | (1,457,307 | ) | ||
Select Class | (1,176,594 | ) | ||
Service Class | (10,127 | ) | ||
|
| |||
Net expenses | 6,910,863 | |||
|
| |||
Net investment income | 36,030,926 | |||
|
| |||
Realized and unrealized gains (losses) on investments | ||||
Net realized losses on investments | (3,674,945 | ) | ||
Net change in unrealized gains (losses) on investments | 2,294,396 | |||
|
| |||
Net realized and unrealized gains (losses) on investments | (1,380,549 | ) | ||
|
| |||
Net increase in net assets resulting from operations | $ | 34,650,377 | ||
|
|
The accompanying notes are an integral part of these financial statements.
Institutional Money Market Funds | 19
Table of Contents
Statement of changes in net assets
Six months ended July 31, 2020 (unaudited) | Year ended January 31, 2020 | |||||||||||||||
Operations | ||||||||||||||||
Net investment income | $ | 36,030,926 | $ | 200,536,454 | ||||||||||||
Net realized gains (losses) on investments | (3,674,945 | ) | 115,159 | |||||||||||||
Net change in unrealized gains (losses) on investments | 2,294,396 | 519,257 | ||||||||||||||
|
| |||||||||||||||
Net increase in net assets resulting from operations | 34,650,377 | 201,170,870 | ||||||||||||||
|
| |||||||||||||||
Distributions to shareholders from net investment income and net realized gains | ||||||||||||||||
Administrator Class | (430,858 | ) | (2,463,061 | ) | ||||||||||||
Institutional Class | (6,138,238 | ) | (34,480,790 | ) | ||||||||||||
Select Class | (29,307,743 | ) | (162,480,176 | ) | ||||||||||||
Service Class | (154,087 | ) | (1,169,303 | ) | ||||||||||||
|
| |||||||||||||||
Total distributions to shareholders | (36,030,926 | ) | (200,593,330 | ) | ||||||||||||
|
| |||||||||||||||
Capital share transactions | Shares | Shares | ||||||||||||||
Proceeds from shares sold | ||||||||||||||||
Administrator Class | 105,693,237 | 105,747,824 | 304,292,625 | 304,417,847 | ||||||||||||
Institutional Class | 5,583,200,583 | 5,585,757,506 | 7,307,497,722 | 7,310,378,605 | ||||||||||||
Select Class | 30,473,287,470 | 30,491,414,132 | 43,141,092,358 | 43,162,070,083 | ||||||||||||
Service Class | 107,230,315 | 107,265,008 | 284,421,114 | 284,525,386 | ||||||||||||
|
| |||||||||||||||
36,290,184,470 | 51,061,391,921 | |||||||||||||||
|
| |||||||||||||||
Reinvestment of distributions | ||||||||||||||||
Administrator Class | 428,921 | 429,038 | 2,286,271 | 2,287,236 | ||||||||||||
Institutional Class | 5,029,376 | 5,031,082 | 31,083,601 | 31,095,996 | ||||||||||||
Select Class | 23,417,874 | 23,428,574 | 133,529,867 | 133,596,397 | ||||||||||||
Service Class | 123,568 | 123,584 | 805,331 | 805,647 | ||||||||||||
|
| |||||||||||||||
29,012,278 | 167,785,276 | |||||||||||||||
|
| |||||||||||||||
Payment for shares redeemed | ||||||||||||||||
Administrator Class | (95,671,728 | ) | (95,711,192 | ) | (285,711,749 | ) | (285,829,450 | ) | ||||||||
Institutional Class | (5,729,595,114 | ) | (5,731,957,236 | ) | (7,207,293,293 | ) | (7,210,108,091 | ) | ||||||||
Select Class | (27,976,994,156 | ) | (27,991,753,136 | ) | (42,615,048,851 | ) | (42,635,758,688 | ) | ||||||||
Service Class | (118,522,616 | ) | (118,553,117 | ) | (299,657,734 | ) | (299,770,183 | ) | ||||||||
|
| |||||||||||||||
(33,937,974,681 | ) | (50,431,466,412 | ) | |||||||||||||
|
| |||||||||||||||
Net increase in net assets resulting from capital share transactions | 2,381,222,067 | 797,710,785 | ||||||||||||||
|
| |||||||||||||||
Total increase in net assets | 2,379,841,518 | 798,288,325 | ||||||||||||||
|
| |||||||||||||||
Net assets | ||||||||||||||||
Beginning of period | 8,994,065,056 | 8,195,776,731 | ||||||||||||||
|
| |||||||||||||||
End of period | $ | 11,373,906,574 | $ | 8,994,065,056 | ||||||||||||
|
|
The accompanying notes are an integral part of these financial statements.
20 | Institutional Money Market Funds
Table of Contents
(For a share outstanding throughout each period)
Six months ended July 31, 2020 (unaudited) | Year ended January 31 | |||||||||||||||||||||||
ADMINISTRATOR CLASS | 2020 | 2019 | 2018 | 2017 | 20161 | |||||||||||||||||||
Net asset value, beginning of period | $1.0005 | $1.0004 | $1.0003 | $1.0003 | $1.0000 | $1.00 | ||||||||||||||||||
Net investment income | 0.0033 | 0.0203 | 0.0188 | 0.0096 | 0.0028 | 0.00 | 2 | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.0000 | 3 | 0.0001 | 0.0001 | 0.0000 | 3 | 0.0003 | 0.00 | 2 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 0.0033 | 0.0204 | 0.0189 | 0.0096 | 0.0031 | 0.00 | 2 | |||||||||||||||||
Distributions to shareholders from | ||||||||||||||||||||||||
Net investment income | (0.0033 | ) | (0.0203 | ) | (0.0188 | ) | (0.0096 | ) | (0.0028 | ) | (0.00 | )2 | ||||||||||||
Net realized gains | 0.0000 | (0.0000 | )3 | 0.0000 | (0.0000 | )3 | 0.0000 | 0.00 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions to shareholders | (0.0033 | ) | (0.0203 | ) | (0.0188 | ) | (0.0096 | ) | (0.0028 | ) | (0.00 | )2 | ||||||||||||
Net asset value, end of period | $1.0005 | $1.0005 | $1.0004 | $1.0003 | $1.0003 | $1.00 | ||||||||||||||||||
Total return4 | 0.35 | % | 2.05 | % | 1.91 | % | 0.96 | % | 0.31 | % | 0.03 | % | ||||||||||||
Ratios to average net assets (annualized) | ||||||||||||||||||||||||
Gross expenses | 0.35 | % | 0.35 | % | 0.36 | % | 0.40 | % | 0.35 | % | 0.34 | % | ||||||||||||
Net expenses | 0.32 | % | 0.33 | % | 0.33 | % | 0.32 | % | 0.33 | % | 0.25 | % | ||||||||||||
Net investment income | 0.67 | % | 2.01 | % | 1.87 | % | 0.96 | % | 0.24 | % | 0.03 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (000s omitted) | $124,019 | $113,555 | $92,671 | $92,542 | $82,591 | $258,152 |
1 | Amounts reflect the Fund transacting shares at a fixed NAV rounded to two decimal places. Beginning October 11, 2016, the Fund began selling and redeeming shares of the Fund at a floating NAV rounded to the fourth decimal place. |
2 | Amount is less than $0.005. |
3 | Amount is less than $0.00005. |
4 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Institutional Money Market Funds | 21
Table of Contents
Financial highlights
(For a share outstanding throughout each period)
Six months ended July 31, 2020 (unaudited) | Year ended January 31 | |||||||||||||||||||||||
INSTITUTIONAL CLASS | 2020 | 2019 | 2018 | 2017 | 20161 | |||||||||||||||||||
Net asset value, beginning of period | $1.0004 | $1.0004 | $1.0003 | $1.0003 | $1.0000 | $1.00 | ||||||||||||||||||
Net investment income | 0.0039 | 0.0216 | 0.0202 | 0.0108 | 0.0039 | 0.00 | 2 | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.0001 | 0.0000 | 3 | 0.0000 | 3 | 0.0000 | 3 | 0.0005 | 0.00 | 2 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 0.0040 | 0.0216 | 0.0202 | 0.0108 | 0.0044 | 0.00 | 2 | |||||||||||||||||
Distributions to shareholders from | ||||||||||||||||||||||||
Net investment income | (0.0039 | ) | (0.0216 | ) | (0.0201 | ) | (0.0108 | ) | (0.0041 | ) | (0.00 | )2 | ||||||||||||
Net realized gains | 0.0000 | (0.0000 | )3 | 0.0000 | (0.0000 | )3 | 0.0000 | 0.00 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions to shareholders | (0.0039 | ) | (0.0216 | ) | (0.0201 | ) | (0.0108 | ) | (0.0041 | ) | (0.00 | )2 | ||||||||||||
Net asset value, end of period | $1.0005 | $1.0004 | $1.0004 | $1.0003 | $1.0003 | $1.00 | ||||||||||||||||||
Total return4 | 0.41 | % | 2.18 | % | 2.04 | % | 1.09 | % | 0.44 | % | 0.08 | % | ||||||||||||
Ratios to average net assets (annualized) | ||||||||||||||||||||||||
Gross expenses | 0.23 | % | 0.23 | % | 0.24 | % | 0.28 | % | 0.23 | % | 0.22 | % | ||||||||||||
Net expenses | 0.20 | % | 0.20 | % | 0.20 | % | 0.20 | % | 0.20 | % | 0.20 | % | ||||||||||||
Net investment income | 0.75 | % | 2.14 | % | 2.03 | % | 1.11 | % | 0.36 | % | 0.08 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (000s omitted) | $1,563,654 | $1,704,936 | $1,573,458 | $1,104,814 | $749,052 | $8,252,614 |
1 | Amounts reflect the Fund transacting shares at a fixed NAV rounded to two decimal places. Beginning October 11, 2016, the Fund began selling and redeeming shares of the Fund at a floating NAV rounded to the fourth decimal place. |
2 | Amount is less than $0.005. |
3 | Amount is less than $0.00005. |
4 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
22 | Institutional Money Market Funds
Table of Contents
Financial highlights
(For a share outstanding throughout each period)
Six months ended July 31, 2020 (unaudited) | Year ended January 31 | |||||||||||||||||||||||
SELECT CLASS | 2020 | 2019 | 2018 | 2017 | 20161 | |||||||||||||||||||
Net asset value, beginning of period | $1.0005 | $1.0005 | $1.0004 | $1.0004 | $1.0000 | $1.00 | ||||||||||||||||||
Net investment income | 0.0043 | 0.0223 | 0.0208 | 0.0116 | 0.0048 | 0.00 | 2 | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.0000 | )3 | 0.0000 | 4 | 0.0001 | 0.0000 | 4 | 0.0004 | 0.00 | 2 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 0.0043 | 0.0223 | 0.0209 | 0.0116 | 0.0052 | 0.00 | 2 | |||||||||||||||||
Distributions to shareholders from | ||||||||||||||||||||||||
Net investment income | (0.0042 | ) | (0.0223 | ) | (0.0208 | ) | (0.0116 | ) | (0.0048 | ) | (0.00 | )2 | ||||||||||||
Net realized gains | 0.0000 | (0.0000 | )4 | 0.0000 | (0.0000 | )4 | 0.0000 | 0.00 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions to shareholders | (0.0042 | ) | (0.0223 | ) | (0.0208 | ) | (0.0116 | ) | (0.0048 | ) | 0.00 | 2 | ||||||||||||
Net asset value, end of period | $1.0006 | $1.0005 | $1.0005 | $1.0004 | $1.0004 | $1.00 | ||||||||||||||||||
Total return5 | 0.43 | % | 2.25 | % | 2.11 | % | 1.16 | % | 0.52 | % | 0.15 | % | ||||||||||||
Ratios to average net assets (annualized) | ||||||||||||||||||||||||
Gross expenses | 0.19 | % | 0.19 | % | 0.20 | % | 0.24 | % | 0.19 | % | 0.18 | % | ||||||||||||
Net expenses | 0.13 | % | 0.13 | % | 0.13 | % | 0.12 | % | 0.13 | % | 0.13 | % | ||||||||||||
Net investment income | 0.77 | % | 2.21 | % | 2.10 | % | 1.19 | % | 0.43 | % | 0.16 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (000s omitted) | $9,641,511 | $7,119,681 | $6,459,320 | $5,717,659 | $3,386,093 | $37,219,390 |
1 | Amounts reflect the Fund transacting shares at a fixed NAV rounded to two decimal places. Beginning October 11, 2016, the Fund began selling and redeeming shares of the Fund at a floating NAV rounded to the fourth decimal place. |
2 | Amount is less than $0.005. |
3 | Amount is more than $(0.00005) |
4 | Amount is less than $0.00005. |
5 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Institutional Money Market Funds | 23
Table of Contents
Financial highlights
(For a share outstanding throughout each period)
Six months ended July 31, 2020 (unaudited) | Year ended January 31 | |||||||||||||||||||||||
SERVICE CLASS | 2020 | 2019 | 2018 | 2017 | 20161 | |||||||||||||||||||
Net asset value, beginning of period | $1.0004 | $1.0004 | $1.0003 | $1.0003 | $1.0000 | $1.00 | ||||||||||||||||||
Net investment income | 0.0029 | 0.0194 | 0.0177 | 0.0085 | 0.0016 | 0.00 | 2 | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.0000 | 3 | (0.0001 | ) | 0.0002 | 0.0000 | 3 | 0.0005 | 0.00 | 2 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 0.0029 | 0.0193 | 0.0179 | 0.0085 | 0.0021 | 0.00 | 2 | |||||||||||||||||
Distributions to shareholders from | ||||||||||||||||||||||||
Net investment income | (0.0028 | ) | (0.0193 | ) | (0.0178 | ) | (0.0085 | ) | (0.0018 | ) | (0.00 | )2 | ||||||||||||
Net realized gains | 0.0000 | (0.0000 | )3 | 0.0000 | (0.0000 | )3 | 0.0000 | 0.00 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions to shareholders | (0.0028 | ) | (0.0193 | ) | (0.0178 | ) | (0.0085 | ) | (0.0018 | ) | (0.00 | )2 | ||||||||||||
Net asset value, end of period | $1.0005 | $1.0004 | $1.0004 | $1.0003 | $1.0003 | $1.00 | ||||||||||||||||||
Total return4 | 0.29 | % | 1.95 | % | 1.81 | % | 0.85 | % | 0.21 | % | 0.02 | % | ||||||||||||
Ratios to average net assets (annualized) | ||||||||||||||||||||||||
Gross expenses | 0.50 | % | 0.51 | % | 0.51 | % | 0.55 | % | 0.52 | % | 0.51 | % | ||||||||||||
Net expenses | 0.42 | % | 0.43 | % | 0.43 | % | 0.43 | % | 0.43 | % | 0.27 | % | ||||||||||||
Net investment income | 0.61 | % | 1.92 | % | 1.79 | % | 0.84 | % | 0.13 | % | 0.02 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (000s omitted) | $44,721 | $55,893 | $70,327 | $61,415 | $67,439 | $898,288 |
1 | Amounts reflect the Fund transacting shares at a fixed NAV rounded to two decimal places. Beginning October 11, 2016, the Fund began selling and redeeming shares of the Fund at a floating NAV rounded to the fourth decimal place. |
2 | Amount is less than $0.005. |
3 | Amount is less than $0.00005. |
4 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
24 | Institutional Money Market Funds
Table of Contents
Notes to financial statements (unaudited)
1. ORGANIZATION
Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo Heritage Money Market Fund (the “Fund”) which is a diversified series of the Trust.
The Fund operates as an institutional non-government money market fund. As an institutional non-government money market fund, shareholders will transact at a floating net asset value (NAV) rounded to four decimal places in accordance with the valuation policies below.
Consistent with Rule 2a-7, the Board of Trustees of the Fund is permitted to impose a liquidity fee on redemptions from the Fund or a redemption gate (i.e., a suspension of the right to redeem) in the event that the Fund’s liquidity falls below required minimums because of market conditions or other factors. If the Fund’s weekly liquid assets (as defined in Rule 2a-7(34)) fall below 30% of the Fund’s total assets, the Board of Trustees is permitted, but not required, to: (i) impose a liquidity fee of no more than 2% of the amount redeemed; and/or (ii) impose a redemption gate. If the Fund’s weekly liquid assets fall below 10% of the Fund’s total assets, the Fund must impose, generally as of the beginning of the next business day, a liquidity fee of 1% of the amount redeemed unless the Board of Trustees determines that such a fee is not in the best interest of the Fund or determines that a lower or higher fee (subject to the 2% limit) is in the best interest of the Fund. Liquidity fees reduce the amount a shareholder receives upon redemption of its shares. The Fund retains any liquidity fees for the benefit of remaining shareholders. The Board of Trustees did not impose any liquidity fees and/or redemption gates during the six months ended July 31, 2020.
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Securities valuation
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.
Investments which are not valued using the method discussed above are valued at their fair value, as determined in good faith by the Board of Trustees. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Wells Fargo Asset Management Pricing Committee at Wells Fargo Funds Management, LLC (“Funds Management”). The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Wells Fargo Asset Management Pricing Committee which may include items for ratification.
Repurchase agreements
The Fund may invest in repurchase agreements and may participate in pooled repurchase agreement transactions with other funds advised by Funds Management. Repurchase agreements are agreements where the seller of a security to the Fund agrees to repurchase that security from the Fund at a mutually agreed upon time and price. The repurchase agreements must be fully collateralized based on values that are marked-to-market daily. The collateral may be held by an agent bank under a tri-party agreement. It is the custodian’s responsibility to value collateral daily and to take action to obtain additional collateral as necessary to maintain a market value equal to or greater than the resale price. The repurchase agreements are collateralized by securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities. There could be potential loss to the Fund in the event that the Fund is delayed or prevented from exercising its rights to dispose of the collateral, including the risk of a possible decline in the value of the underlying obligations during the period in which the Fund seeks to assert its rights.
When-issued transactions
The Fund may purchase securities on a forward commitment or when-issued basis. The Fund records a when-issued transaction on the trade date and will segregate assets in an amount at least equal in value to the Fund’s commitment to purchase when-issued
Institutional Money Market Funds | 25
Table of Contents
Notes to financial statements (unaudited)
securities. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.
Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has been determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.
Distributions to shareholders
Distributions to shareholders from net investment income are declared daily and paid monthly. Distributions from net realized gains, if any, are recorded on the ex-dividend date and paid at least annually. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior to the Fund’s fiscal year end may be categorized as a tax return of capital at year end.
Federal and other taxes
The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.
The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.
As of July 31, 2020, the aggregate cost of all investments for federal income tax purposes was $11,365,254,043 and the unrealized gains (losses) consisted of:
Gross unrealized gains | $ | 3,793,049 | ||
Gross unrealized losses | (41,893 | ) | ||
Net unrealized gains | $ | 3,751,156 |
Class allocations
The separate classes of shares offered by the Fund differ principally in shareholder servicing and administration fees. Class specific expenses are charged directly to that share class. Investment income, common fund-level expenses, and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.
3. FAIR VALUATION MEASUREMENTS
Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:
∎ | Level 1 – quoted prices in active markets for identical securities |
∎ | Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
∎ | Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
The inputs or methodologies used for valuing investments in securities are not necessarily an indication of the risk associated with investing in those securities.
26 | Institutional Money Market Funds
Table of Contents
Notes to financial statements (unaudited)
The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of July 31, 2020:
Quoted prices (Level 1) | Other significant observable inputs (Level 2) | Significant (Level 3) | Total | |||||||||||||
Assets | ||||||||||||||||
Investments in: | ||||||||||||||||
Certificates of deposit | $ | 0 | $ | 1,752,517,709 | $ | 0 | $ | 1,752,517,709 | ||||||||
Commercial paper | 0 | 4,431,693,839 | 0 | 4,431,693,839 | ||||||||||||
Municipal obligations | 0 | 2,354,756,518 | 0 | 2,354,756,518 | ||||||||||||
Closed end municipal bond fund obligations | 0 | 30,000,000 | 0 | 30,000,000 | ||||||||||||
Other instruments | 0 | 121,270,000 | 0 | 121,270,000 | ||||||||||||
Other notes | 0 | 110,000,000 | 0 | 110,000,000 | ||||||||||||
Repurchase agreements | 0 | 774,175,000 | 0 | 774,175,000 | ||||||||||||
Treasury debt | 0 | 1,794,592,133 | 0 | 1,794,592,133 | ||||||||||||
Total assets | $ | 0 | $ | 11,369,005,199 | $ | 0 | $ | 11,369,005,199 |
Additional sector, industry or geographic detail is included in the Portfolio of Investments.
For the six months ended July 31, 2020, the Fund did not have any transfers into/out of Level 3.
4. TRANSACTIONS WITH AFFILIATES
Management fee
Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadvisers and providing fund-level administrative services in connection with the Fund’s operations. As compensation for its services under the investment management agreement, Funds Management is entitled to receive a management fee at the following annual rate based on the Fund’s average daily net assets:
Average daily net assets | Management fee | |
First $5 billion | 0.15% | |
Next $5 billion | 0.14 | |
Over $10 billion | 0.13 |
For the six months ended July 31, 2020, the management fee was equivalent to an annual rate of 0.15% of the Fund’s average daily net assets.
Funds Management has retained the services of certain subadvisers to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. Wells Capital Management Incorporated, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is a subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.05% and declining to 0.01% as the average daily net assets of the Fund increase. Wells Capital Management Singapore, a separately identifiable department of Wells Fargo Bank, N.A, an affiliate of Funds Management and wholly owned subsidiary of Wells Fargo, is also a subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.0025% and declining to 0.0005% as the average daily net assets of the Fund increase.
Institutional Money Market Funds | 27
Table of Contents
Notes to financial statements (unaudited)
Administration fees
Under a class-level administration agreement, Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Funds Management receives an annual fee which is calculated based on the average daily net assets of each class as follows:
Class-level administration fee | ||||
Administrator Class | 0.10 | % | ||
Institutional Class | 0.08 | |||
Select Class | 0.04 | |||
Service Class | 0.12 |
Waivers and/or expense reimbursements
Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. When each class of the Fund has exceeded its expense cap, Funds Management has waived fees and/or reimbursed expenses from fund-level expenses on a proportionate basis and then from class specific expenses. When only certain classes exceed their expense caps, waivers and/or reimbursements are applied against class specific expenses before fund-level expenses. Funds Management has committed through May 31, 2021 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.33% for Administrator Class shares, 0.20% for Institutional Class shares, 0.13% for Select Class shares, and 0.43% for Service Class shares. 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.
During the six months ended July 31, 2020, Funds Management also voluntarily waived class-level expenses which represent 0.01% of the average daily net assets (on an annualized basis) of Administrator Class and 0.01% of the average daily net assets (on an annualized basis) of Service Class.
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing agents, whereby Service Class of the Fund is charged a fee at an annual rate of 0.25% of its average daily net assets. Administrator Class is charged a fee at an annual rate of 0.10% of its average daily net assets. A portion of these total shareholder servicing fees were paid to affiliates of Wells Fargo.
Interfund transactions
The Fund may purchase or sell portfolio investment securities to certain other Wells Fargo affiliates pursuant to Rule 17a-7 under the 1940 Act and under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which do not incur broker commissions, are effected at current market prices.
5. INDEMNIFICATION
Under the Fund’s organizational documents, the officers and Trustees have been granted certain indemnification rights against certain liabilities that may arise out of performance of their duties to the Fund. The Fund has entered into a separate agreement with each Trustee that converts indemnification rights currently existing under the Fund’s organizational documents into contractual rights that cannot be changed in the future without the consent of the Trustee. Additionally, in the normal course of business, the Fund may enter into contracts with service providers that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated.
6. NEW ACCOUNTING PRONOUNCEMENT
In August 2018, FASB issued Accounting Standards Update (“ASU”) No. 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 updates the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurements. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Management has adopted this guidance which did not have a material impact on the financial statements.
28 | Institutional Money Market Funds
Table of Contents
Notes to financial statements (unaudited)
7. CORONAVIRUS (COVID-19) PANDEMIC
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 are 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 impacts 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.
Institutional Money Market Funds | 29
Table of Contents
PROXY VOTING INFORMATION
A description of the policies and procedures used to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at wfam.com, or visiting the SEC website at sec.gov. Information regarding how the proxies related to portfolio securities were voted during the most recent 12-month period ended June 30 is available on the website at wfam.com or by visiting the SEC website at sec.gov.
PORTFOLIO HOLDINGS INFORMATION
The Fund files its complete schedule of portfolio holdings with the SEC each month on Form N-MFP. Shareholders may view the filed Form N-MFP by visiting the SEC website at sec.gov. The Fund’s portfolio holdings information is also available on our website at wfam.com.
30 | Institutional Money Market Funds
Table of Contents
Other information (unaudited)
BOARD OF TRUSTEES AND OFFICERS
Each of the Trustees and Officers1 listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 147 mutual funds comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information2. The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.
Independent Trustees
Name and year of birth | Position held and length of service* | Principal occupations during past five years or longer | Current other public company or investment company directorships | |||
William R. Ebsworth (Born 1957) | Trustee, since 2015 | Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief investment officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong, and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he led a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Endowment (non-profit organization). Mr. Ebsworth is a CFA® charterholder. | N/A | |||
Jane A. Freeman (Born 1953) | Trustee, since 2015; Chair Liaison, | Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is also an inactive Chartered Financial Analyst. | N/A | |||
Isaiah Harris, Jr. (Born 1952) | Trustee, since 2009; Audit Committee Chairman, since 2019 | Retired. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (private school). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status). | CIGNA Corporation | |||
Judith M. Johnson (Born 1949) | Trustee, since 2008; Audit Committee Chairman, from 2009 to 2018 | Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant. | N/A |
Institutional Money Market Funds | 31
Table of Contents
Other information (unaudited)
Name and year of birth | Position held and length of service* | Principal occupations during past five years or longer | Current other public company or investment company directorships | |||
David F. Larcker (Born 1950) | Trustee, since 2009 | James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005. | N/A | |||
Olivia S. Mitchell (Born 1953) | Trustee, since 2006; Nominating and Governance Committee Chair, since 2018 | International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993. | N/A | |||
Timothy J. Penny (Born 1951) | Trustee, since 1996; Chairman, since 2018 | President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007. | N/A | |||
James G. Polisson (Born 1959) | Trustee, since 2018 | Retired. Chief Marketing Officer, Source (ETF) UK Services, Ltd, from 2015 to 2017. From 2012 to 2015, Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing company. Chief Executive Officer and Managing Director at Russell Investments, Global Exchange Traded Funds from 2010 to 2012. Managing Director of Barclays Global Investors from 1998 to 2010 and Global Chief Marketing Officer for iShares and Barclays Global Investors from 2000 to 2010. Trustee of the San Francisco Mechanics’ Institute, a non-profit organization, from 2013 to 2015. Board member of the Russell Exchange Traded Fund Trust from 2011 to 2012. Director of Barclays Global Investors Holdings Deutschland GmbH from 2006 to 2009. Mr. Polisson is an attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations. | N/A | |||
Pamela Wheelock (Born 1959) | Trustee, since January 2020; previously Trustee from January 2018 to July 2019 | Board member of the Destination Medical Center Economic Development Agency, Rochester, Minnesota since 2019 and Interim President of the McKnight Foundation since 2020. Acting Commissioner, Minnesota Department of Human Services, July 2019 through September 2019. Human Services Manager (part-time), Minnesota Department of Human Services, October 2019 through December 2019. Chief Operating Officer, Twin Cities Habitat for Humanity from 2017 to 2019. Vice President of University Services, University of Minnesota from 2012 to 2016. Prior thereto, on the Board of Directors, Governance Committee and Finance Committee for the Minnesota Philanthropy Partners (Saint Paul Foundation) from 2012 to 2018, Interim Chief Executive Officer of Blue Cross Blue Shield of Minnesota from 2011 to 2012, Chairman of the Board from 2009 to 2012 and Board Director from 2003 to 2015. Vice President, Leadership and Community Engagement, Bush Foundation, Saint Paul, Minnesota (a private foundation) from 2009 to 2011. Executive Vice President and Chief Financial Officer, Minnesota Sports and Entertainment from 2004 to 2009 and Senior Vice President from 2002 to 2004. Executive Vice President of the Minnesota Wild Foundation from 2004 to 2008. Commissioner of Finance, State of Minnesota, from 1999 to 2002. Currently Board Chair of the Minnesota Wild Foundation since 2010. | N/A |
* | Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable. |
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Officers
Name and year of birth | Position held and length of service | Principal occupations during past five years or longer | ||
Andrew Owen (Born 1960) | President, since 2017 | Executive Vice President of Wells Fargo & Company and Head of Affiliated Managers, Wells Fargo Asset Management, since 2014. In addition, Mr. Owen is currently President, Chief Executive Officer and Director of Wells Fargo Funds Management, LLC since 2017. Prior thereto, Executive Vice President responsible for marketing, investments and product development for Wells Fargo Funds Management, LLC, from 2009 to 2014. | ||
Nancy Wiser1 (Born 1967) | Treasurer, since 2012 | Executive Vice President of Wells Fargo Funds Management, LLC since 2011. Chief Operating Officer and Chief Compliance Officer at LightBox Capital Management LLC, from 2008 to 2011. | ||
Michelle Rhee (Born 1966) | Chief Legal Officer, since 2019 | Secretary of Wells Fargo Funds Management, LLC, Chief Legal Counsel of Wells Fargo Asset Management and Assistant General Counsel of Wells Fargo Bank, N.A. since 2018. Associate General Counsel and Managing Director of Bank of America Corporation from 2004 to 2018. | ||
Catherine Kennedy (Born 1969) | Secretary, since 2019 | Vice President of Wells Fargo Funds Management, LLC and Senior Counsel of the Wells Fargo Legal Department since 2010. Vice President and Senior Counsel of Evergreen Investment Management Company, LLC from 1998 to 2010. | ||
Michael H. Whitaker (Born 1967) | Chief Compliance Officer, since 2016 | Chief Compliance Officer of Wells Fargo Asset Management since 2016. Senior Vice President and Chief Compliance Officer for Fidelity Investments from 2007 to 2016. | ||
David Berardi (Born 1975) | Assistant Treasurer, since 2009 | Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010. | ||
Jeremy DePalma1 (Born 1974) | Assistant Treasurer, since 2009 | Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010 and head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010. |
1 | Nancy Wiser acts as Treasurer of 65 funds in the Fund Complex. Jeremy DePalma acts as the Treasurer of 82 funds and Assistant Treasurer of 65 funds in the Fund Complex. |
2 | The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at wfam.com. |
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BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:
Wells Fargo Heritage Money Market Fund
Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at a Board meeting held on May 26, 2020 and May 28, 2020 (together, the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo Heritage Money Market Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); (ii) an investment sub-advisory agreement (the “WellsCap Sub-Advisory Agreement”) with Wells Capital Management Incorporated (“WellsCap”); and (iii) an investment sub-advisory agreement (the “WellsCap Singapore Sub-Advisory Agreement,” and together with the WellsCap Sub-Advisory Agreement, the “Sub-Advisory Agreements”) with Wells Capital Management Singapore (together with WellsCap, each a “Sub-Adviser” and collectively, the “Sub-Advisers”), each an affiliate of Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”
At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at a Board meeting held in April 2020, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing investment performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.
In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2020. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and investment performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.
After its deliberations, the Board unanimously approved the continuation of the Advisory Agreements for a one-year term and determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.
Nature, extent and quality of services
The Board received and considered various information regarding the nature, extent and quality of services provided to the Fund by Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Wells Fargo Asset Management (“WFAM”), of which Funds Management and the Sub-Adviser are a part, and a summary of investments made in the business of WFAM. The Board also received a description of Funds Management’s and the Sub-Adviser’s business continuity plans and of their approaches to data privacy and cybersecurity, and related testing. The Board also received and reviewed information about Funds Management’s role as administrator of the Fund’s liquidity risk management program, Funds Management’s approach to risk management, and Funds Management’s intermediary and vendor oversight program.
The Board also considered the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund. The Board evaluated the ability of Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory and
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Other information (unaudited)
supervisory personnel. The Board further considered the compliance programs and compliance records of Funds Management and the Sub-Adviser. In addition, the Board took into account the full range of services provided to the Fund by Funds Management and its affiliates.
Fund investment performance and expenses
The Board considered the investment performance results for the Fund over various time periods ended December 31, 2019. The Board also considered more current results for various time periods ended March 31, 2020. The Board considered these results in comparison to the investment performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the investment performance of the Fund (Administrator Class) was higher than the average investment performance of the Universe for the one-, three- and five-year periods ended December 31, 2019, and in range of the average investment performance of the Universe for the ten-year period ended December 31, 2019. The Board also noted that the investment performance of the Fund (Administrator Class) was higher than the average investment performance of the Universe for one-, three- and five-year periods ended March 31, 2020, and in range of the average investment performance of the Universe for the ten-year period ended March 31, 2020. The Board also noted that the investment performance of the Fund was in range of its benchmark, the Lipper Institutional Money Market Index, for all periods ended December 31, 2019.
The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were lower than, equal to or in range of the median net operating expense ratios of the expense Groups for each share class.
The Board took into account the Fund’s investment performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.
Investment management and sub-advisory fee rates
The Board reviewed and considered the contractual fee rates payable by the Fund to Funds Management under the Management Agreement, as well as the contractual fee rates payable by the Fund to Funds Management for class-level administrative services under a Class-Level Administration Agreement, which include, among other things, class-level transfer agency and sub-transfer agency costs (collectively, the “Management Rates”). The Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Funds Management to the Sub-Adviser for investment sub-advisory services.
Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were lower than or in range of the sum of these average rates for the Fund’s expense Groups for all share classes.
The Board also received and considered information about the portion of the total management fee that was retained by Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Funds Management and not delegated to or assumed by the Sub-Adviser, and about Funds Management’s on-going oversight services. Given the affiliation between Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of fees between them.
The Board also received and considered information about the nature and extent of services offered and fee rates charged by Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing proprietary mutual funds compared with those associated with managing assets of other types of clients, including third-party sub-advised fund clients and non-mutual fund clients such as institutional separate accounts.
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Other information (unaudited)
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Funds Management under the Management Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable.
Profitability
The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of both WFAM and Wells Fargo & Co. (“Wells Fargo”) from providing services to the fund family as a whole. The Board noted that the Sub-Adviser’s profitability information with respect to providing services to the Fund and other funds in the family was subsumed in the WFAM and Wells Fargo profitability analysis.
Funds Management reported on the methodologies and estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size, type and age of fund.
Based on its review, the Board did not deem the profits reported by Funds Management, WFAM or Wells Fargo from services provided to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.
Economies of scale
The Board received and considered information about the potential for Funds Management to experience economies of scale in the provision of management services to the Fund, the difficulties of calculating economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with shareholders. The Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size, and the size of the Fund in relation to such breakpoints. The Board considered that in addition to management fee breakpoints, Funds Management shares potential economies of scale from its management business in a variety of ways, including through fee waiver and expense reimbursement arrangements, services that benefit shareholders, competitive management fee rates set at the outset without regard to breakpoints, and investments in the business intended to enhance services available to shareholders.
The Board concluded that Funds Management’s arrangements with respect to the Fund, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.
Other benefits to Funds Management and the Sub-Adviser
The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that various affiliates of Funds Management may receive distribution-related fees, shareholder servicing payments and sub-transfer agency fees in respect of shares sold or held through them and services provided.
The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser, fees earned by Funds Management and the Sub-Adviser from managing a private investment vehicle for the fund family’s securities lending collateral, and commissions earned by an affiliated broker from portfolio transactions.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.
Conclusion
At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory Agreements for a one-year term and determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable.
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Other information (unaudited)
LIQUIDITY RISK MANAGEMENT PROGRAM
In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), Wells Fargo Funds Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) on behalf of each of its series, including the Fund, which is reasonably designed to assess and manage the Fund’s liquidity risk. “Liquidity risk” is defined as the risk that the Fund is unable to meet redemption requests without significantly diluting remaining investors’ interests in the Fund. The Trust’s Board of Trustees (the “Board”) previously approved the designation of Wells Fargo Funds Management, LLC (“Funds Management”), the Fund’s investment manager, as the administrator of the Program, and Funds Management has established a Liquidity Risk Management Council composed of personnel from multiple departments within Funds Management and its affiliates to assist Funds Management in the implementation and on-going administration of the Program.
The Program is comprised of various components designed to support the assessment and/or management of liquidity risk, including: (1) the periodic assessment (no less frequently than annually) of certain factors that influence the Fund’s liquidity risk; (2) the periodic classification (no less frequently than monthly) of the Fund’s investments into one of four liquidity categories that reflect an estimate of their liquidity under current market conditions; (3) a 15% limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); (4) to the extent the Fund does not invest primarily in “highly liquid investments” (as defined under the Liquidity Rule), the determination of a minimum percentage of the Fund’s assets that generally will be invested in highly liquid investments (an “HLIM”); (5) if the Fund has established an HLIM, the periodic review (no less frequently than annually) of the HLIM and the adoption of policies and procedures for responding to a shortfall of the Fund’s “highly liquid investments” below its HLIM; and (6) periodic reporting to the Board.
At a meeting of the Board held on May 26 and 28, 2020, the Board received a written report (the “Report”) from Funds Management that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation. The Report covered the initial period from December 1, 2018 through December 31, 2019 (the “Reporting Period”). No significant liquidity events impacting the Fund were noted in the Report. There were no material changes to the Program during the Reporting Period. The Report concluded that the Program is operating effectively to assess and manage the Fund’s liquidity risk, and that the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund’s liquidity developments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other risks to which an investment in the Fund may be subject.
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For more information
More information about Wells Fargo Funds is available free upon request. To obtain literature, please write, visit the Fund’s website, or call:
Wells Fargo Funds
P.O. Box 219967
Kansas City, MO 64121-9967
Website: wfam.com
Individual investors: 1-800-222-8222
Retail investment professionals: 1-888-877-9275
Institutional investment professionals: 1-866-765-0778
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-260-5969 or visit the Fund’s website at wfam.com. Read the prospectus carefully before you invest or send money.
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).
This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind—including a recommendation for any specific investment, strategy, or plan.
INVESTMENT PRODUCTS: NOT FDIC INSURED ◾ NO BANK GUARANTEE ◾ MAY LOSE VALUE
© 2020 Wells Fargo & Company. All rights reserved
PAR-0820-01047 09-20
SA304/SAR304 07-20
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Semi-Annual Report
July 31, 2020
Retail Money Market Funds
∎ | Wells Fargo Money Market Fund |
Beginning on January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, paper copies of the Wells Fargo Funds’ annual and semi-annual shareholder reports issued after this date will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Funds’ website, and you will be notified by mail each time a report is posted and provided with a website address to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling 1-800-222-8222 or by enrolling at wellsfargo.com/advantagedelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports; if you invest directly with the Fund, you can call 1-800-222-8222. Your election to receive reports in paper will apply to all Wells Fargo Funds held in your account with your financial intermediary or, if you are a direct investor, to all Wells Fargo Funds that you hold.
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The views expressed and any forward-looking statements are as of July 31, 2020, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Asset Management. Discussions of individual securities, or the markets generally, or any Wells Fargo Fund 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 and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.
INVESTMENT PRODUCTS: NOT FDIC INSURED ◾ NO BANK GUARANTEE ◾ MAY LOSE VALUE
Retail Money Market Funds | 1
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Letter to shareholders (unaudited)
Andrew Owen
President
Wells Fargo Funds
Dear Shareholder:
We are pleased to offer you this semi-annual report for the Wells Fargo Money Market Fund for the six-month period that ended July 31, 2020. Global stock markets tumbled in February and March as governments took unprecedented measures to stop the spread of the coronavirus at the expense of short-term economic output. However, most markets rebounded from April on to offset much of the losses as central banks attempted to bolster capital markets and confidence. Fixed-income markets generally performed well, with the exception of high-yield bonds, as U.S. bonds overall achieved modest gains. U.S. and emerging market equities outperformed international developed market equities over the six-month period.
For the period, U.S. stocks, based on the S&P 500 Index,1 returned 2.42% and international stocks, as measured by the MSCI ACWI ex USA Index (Net),2 fell 4.47%. The MSCI EM Index (Net)3 gained 3.08%. For bond investors, the Bloomberg Barclays U.S. Aggregate Bond Index4 added 5.69%, the Bloomberg Barclays Global Aggregate ex-USD Index5 returned 4.29%, the Bloomberg Barclays Municipal Bond Index6 returned 1.96%, and the ICE BofA U.S. High Yield Index7 lost 0.23%.
Concerns about the coronavirus took over the market.
In February, the coronavirus became the major market focus. Fears of the virus’s impact on global growth led to expectations of increased global central bank monetary policy support. That led the 10-year U.S. Treasury yield to fall to an all-time low of 1.1% by the end of the month. Although equity markets initially shrugged off concerns about the outbreak, focusing instead on strong fourth-quarter earnings and improving business confidence in January, market sentiment turned sharply lower toward month-end. Oil prices tumbled as Russia and the Organization of the Petroleum Exporting Countries compounded a major decline in oil demand with a brutal price war, causing the price of West Texas Intermediate crude oil to plummet.
1 | The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock’s weight in the index proportionate to its market value. You cannot invest directly in an index. |
2 | The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the United States. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. You cannot invest directly in an index. |
3 | The MSCI Emerging Markets (EM) Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure equity market performance of emerging markets. You cannot invest directly in an index. |
4 | The Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. You cannot invest directly in an index. |
5 | The Bloomberg Barclays Global Aggregate ex-USD Index is an unmanaged index that provides a broad-based measure of the global investment-grade fixed-income markets excluding the U.S.-dollar-denominated debt market. You cannot invest directly in an index. |
6 | 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. |
7 | The ICE BofA U.S. High Yield Index is a market-capitalization-weighted index of domestic and Yankee high-yield bonds. The index tracks the performance of high-yield securities traded in the U.S. bond market. You cannot invest directly in an index. Copyright 2020. ICE Data Indices, LLC. All rights reserved. |
2 | Retail Money Market Funds
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Letter to shareholders (unaudited)
The global spread of the coronavirus led many countries to clamp down on social and business-related activity in order to contain the virus from causing even greater devastation and overwhelming the health care system. This abrupt stoppage of economic activity led to the sharp deceleration of global output, sending economies into a deep contraction. Central bank responses were swift, as they slashed interest rates and expanded quantitative easing programs to restore liquidity and confidence to the markets. In the U.S., the Federal Reserve launched several lending programs, funding investment-grade bonds, money market mutual funds, and commercial paper while purchasing Treasuries, mortgage-backed securities, and overnight repurchase agreements. Meanwhile, stock markets tumbled quickly into a bear market, ending the longest bull stock market in U.S. history.
Markets rebounded strongly in April, fueled by unprecedented government and central bank stimulus measures. The U.S. economy contracted by an annualized 5.0% pace in the first quarter, with 30 million new unemployment insurance claims in six weeks. In the eurozone, first-quarter real gross domestic product (GDP) shrank 3.8%, with the composite April Flash Purchasing Managers’ Index, a monthly survey of purchasing managers, falling to an all-time low of 13.5. The European Central Bank expanded its quantitative easing to include the purchase of additional government bonds of countries with the greatest virus-related need, including Italy and Spain. China’s first-quarter GDP fell by 6.8% year over year. However, retail sales, production, and investment showed signs of recovery. Extreme oil-price volatility continued as global supply far exceeded demand.
In May, the equity market rebound continued, with widespread strong monthly gains. Investors regained confidence on reports of early signs of success in human trials of a coronavirus vaccine. Growth stocks continued to outperform value stocks while returns on global government bonds were generally flat. In the U.S., a gap grew between the stock market rebound and devastating economic data points, including an April unemployment rate of 14.7%, the highest level since World War II. Purchasing managers’ indices continued to reflect weakening activity in May in both the manufacturing and services sectors. U.S. corporate earnings reports indicated a 14% year-over-year contraction in earnings from the first quarter of 2019. However, high demand for technology, driven by remote activity, helped maintain robust information technology sector earnings, which helped drive powerful well-known technology stocks higher.
Financial markets posted widely positive returns in June despite ongoing economic weakness and high levels of uncertainty on the containment of the coronavirus and the timing of an effective vaccine. There were hopeful signs as economies reopened, with both U.S. and U.K. retail sales rebounding substantially in May. However, year over year, sales remained depressed. Vitally important to market sentiment was the ongoing commitment by central banks globally to do all they could to provide economic support through liquidity and low borrowing costs. U.S. economic activity was aided by one-time $1,200 stimulus checks and $600 bonus weekly unemployment benefits due to expire at the end of July. However, unemployment remained in the double digits, easing somewhat from 14.7% in April to 11.1% in June. During June, numerous states reported alarming increases in coronavirus cases. China’s economic recovery picked up momentum in June, though it remained far from a full recovery.
July was a broadly positive month for both global equities and fixed income. However, economic data and a resurgence of coronavirus cases pointed to the vulnerability of the global economy and the ongoing imperative to regain control of the pandemic. Second-quarter GDP shrank by 9.5% and 12.1% in the U.S. and eurozone, respectively, from the previous quarter. In contrast, China reported a 3.2% year-over-year expansion in its second-quarter GDP. U.S. unemployment remained historically high despite adding 1.8 million jobs in July, with a double-digit jobless rate persisting. However, manufacturing activity grew in both the U.S. and eurozone. In Asia, while China’s manufacturing sector
“The global spread of the coronavirus led many countries to clamp down on social and business-related activity in order to contain the virus from causing even greater devastation and overwhelming the health care system.”
“Financial markets posted widely positive returns in June despite ongoing economic weakness and high levels of uncertainty on the containment of the coronavirus and the timing of an effective vaccine.”
Retail Money Market Funds | 3
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Letter to shareholders (unaudited)
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For further information about your Fund, contact your investment professional, visit our website at wfam.com, or call us directly at 1-800-222-8222. |
continued to expand, activity in Japan and South Korea contracted. In July, a rising concern was the rapid and broad reemergence of coronavirus infections. Despite the ongoing promise of positive early-stage vaccine trial results, economic activity could be held back by the continued spread of the virus and the end of a widely received $600-a-week bonus unemployment benefit in late July.
Don’t let short-term uncertainty derail long-term investment goals.
Periods of investment uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Funds offers more than 100 mutual funds spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.
Thank you for choosing to invest with Wells Fargo Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.
Sincerely,
Andrew Owen
President
Wells Fargo Funds
4 | Retail Money Market Funds
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Table of Contents
Performance highlights (unaudited)
Investment objective
The Fund seeks current income, while preserving capital and liquidity.
Manager
Wells Fargo Funds Management, LLC
Subadvisers
Wells Capital Management Incorporated
Wells Capital Management Singapore
Portfolio managers
Michael C. Bird, CFA®‡
Jeffrey L. Weaver, CFA®‡
Laurie White
Average annual total returns (%) as of July 31, 2020
Including sales charge | Excluding sales charge | Expense ratios1 (%) | ||||||||||||||||||||||||||||||||
Inception date | 1 year | 5 year | 10 year | 1 year | 5 year | 10 year | Gross | Net2 | ||||||||||||||||||||||||||
Class A (STGXX) | 7-1-1992 | – | – | – | 1.01 | 0.86 | 0.44 | 0.69 | 0.60 | |||||||||||||||||||||||||
Class C* | 6-30-2010 | -0.56 | 0.39 | 0.20 | 0.44 | 0.39 | 0.20 | 1.44 | 1.35 | |||||||||||||||||||||||||
Premier Class (WMPXX)3 | 3-31-2016 | – | – | – | 1.46 | 1.23 | 0.62 | 0.30 | 0.20 | |||||||||||||||||||||||||
Service Class (WMOXX) | 6-30-2010 | – | – | – | 1.10 | 0.96 | 0.48 | 0.59 | 0.50 |
Yield summary (%) as of July 31, 20202
Class A | Class C* | Premier Class | Service Class | |||||||||||
7-day current yield | 0.01 | 0.01 | 0.24 | 0.01 | ||||||||||
7-day compound yield | 0.01 | 0.01 | 0.24 | 0.01 | ||||||||||
30-day simple yield | 0.01 | 0.01 | 0.27 | 0.01 | ||||||||||
30-day compound yield | 0.01 | 0.01 | 0.27 | 0.01 |
* | Class C shares are available only to shareholders making an exchange out of Class C shares of another mutual fund within the Wells Fargo family of funds. |
Figures quoted represent past performance, which is no guarantee of future results, and do not reflect taxes that a shareholder may pay on an investment in a fund. Investment returns will fluctuate. The Fund’s yield figures more closely reflect the current earnings of the Fund than the total return figures. Current performance may be lower or higher than the performance data quoted, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s website, wfam.com.
Class A shares, Premier Class shares, and Service Class shares are sold without a front-end sales charge or contingent deferred sales charge. For Class C shares, the maximum contingent deferred sales charge is 1.00%. Performance including a contingent deferred sales charge assumes the sales charge for the corresponding time period.
For retail money market funds: You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
Please see footnotes on page 7.
6 | Retail Money Market Funds
Table of Contents
Performance highlights (unaudited)
Effective maturity distribution as of July 31, 20204 |
![]() |
Weighted average maturity as of July 31, 20205 |
42 days |
Weighted average life as of July 31, 20206 |
47 days |
‡ | CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. |
1 | Reflects the expense ratios as stated in the most recent prospectuses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report. |
2 | The manager has contractually committed through May 31, 2021, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.60% for Class A, 1.35% for Class C, 0.20% for Premier Class, and 0.50% for Service Class. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses (if any), and extraordinary expenses are excluded from the expense caps. Prior to or after the commitment expiration date, the caps may be increased or the commitment to maintain the caps may be terminated only with the approval of the Board of Trustees. Without these caps, the Fund’s returns would have been lower. Without waived fees and/or reimbursed expenses, the Fund’s 7-day current yield would have been -0.31%, -1.05%, 0.08%, and -0.21% for Class A, Class C, Premier Class, and Service Class, respectively. 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 prospectuses. |
3 | Historical performance shown for the Premier Class shares prior to their inception reflects the performance of the Class A shares, and includes the higher expenses applicable to Class A shares. If these expenses had not been included, returns for Premier Class shares would be higher. |
4 | Amounts are calculated based on the total investments of the Fund. These amounts are subject to change and may have changed since the date specified. |
5 | Weighted Average Maturity (WAM): WAM is an average of the effective maturities of all securities held in the portfolio, weighted by each security’s percentage of total investments. The maturity of a portfolio security is the period remaining until the date on which the principal amount is unconditionally required to be paid, or in the case of a security called for redemption, the date on which the redemption payment is unconditionally required to be made. WAM calculations allow for the maturities of certain securities with demand features or periodic interest rate resets to be shortened. WAM is a way to measure a fund’s sensitivity to potential interest rate changes. WAM is subject to change and may have changed since the date specified. |
6 | Weighted Average Life (WAL): WAL is an average of the final maturities of all securities held in the portfolio, weighted by their percentage of total investments. The maturity of a portfolio security is the period remaining until the date on which the principal amount is unconditionally required to be paid, or in the case of a security called for redemption, the date on which the redemption payment is unconditionally required to be made. In contrast to WAM, the calculation of WAL allows for the maturities of certain securities with demand features to be shortened, but not the periodic interest rate resets. WAL is a way to measure a fund’s potential sensitivity to credit spread changes. WAL is subject to change and may have changed since the date specified. |
Retail Money Market Funds | 7
Table of Contents
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including contingent deferred sales charges (if any) on redemptions and (2) ongoing costs, including management fees, distribution (12b-1) and/or shareholder servicing fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from February 1, 2020 to July 31, 2020.
Actual expenses
The “Actual” line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Actual” line under the heading entitled “Expenses paid during period” for your applicable class of shares to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The “Hypothetical” line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning account value 2-1-2020 | Ending account value 7-31-2020 | Expenses paid during the period1 | Annualized net expense ratio | |||||||||||||
Class A | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,002.66 | $ | 2.74 | 0.55 | % | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.13 | $ | 2.77 | 0.55 | % | ||||||||
Class C | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,000.73 | $ | 4.38 | 0.88 | % | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.49 | $ | 4.42 | 0.88 | % | ||||||||
Premier Class | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,004.75 | $ | 0.65 | 0.13 | % | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,024.22 | $ | 0.65 | 0.13 | % | ||||||||
Service Class | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,003.05 | $ | 2.34 | 0.47 | % | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.53 | $ | 2.36 | 0.47 | % |
1 | Expenses paid is equal to the annualized net expense ratio of each class multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one-half-year period). |
8 | Retail Money Market Funds
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Certificates of Deposit: 14.76% |
| |||||||||||||||
ABN Amro Bank NV | 0.11 | % | 8-3-2020 | $ | 50,000,000 | $ | 50,000,000 | |||||||||
Banco Santander | 1.26 | 12-9-2020 | 20,000,000 | 20,000,000 | ||||||||||||
Bank of Montreal | 1.25 | 1-11-2021 | 28,000,000 | 28,000,000 | ||||||||||||
Bank of Nova Scotia (3 Month LIBOR +0.09%) ± | 0.52 | 2-10-2021 | 10,000,000 | 10,000,000 | ||||||||||||
Bank of Nova Scotia (3 Month LIBOR +0.13%) 144A± | 0.58 | 11-9-2020 | 4,000,000 | 4,000,000 | ||||||||||||
Citibank NA | 1.40 | 9-2-2020 | 25,000,000 | 25,000,000 | ||||||||||||
Citibank NA | 1.40 | 9-30-2020 | 14,000,000 | 14,000,000 | ||||||||||||
Credit Suisse New York (3 Month LIBOR +0.24%) ± | 0.57 | 12-4-2020 | 9,000,000 | 9,000,000 | ||||||||||||
Credit Suisse New York | 1.28 | 1-25-2021 | 22,000,000 | 22,000,000 | ||||||||||||
HSBC Bank USA NA | 0.11 | 8-3-2020 | 50,000,000 | 50,000,000 | ||||||||||||
Mitsubishi Trust & Bank Company | 0.39 | 1-21-2021 | 30,000,000 | 30,000,000 | ||||||||||||
MUFG Bank Limited of New York | 0.98 | 8-28-2020 | 30,000,000 | 30,016,231 | ||||||||||||
Nordea Bank AB (3 Month LIBOR +0.15%) ± | 0.42 | 10-13-2020 | 13,000,000 | 13,000,000 | ||||||||||||
Norinchukin Bank | 0.30 | 8-18-2020 | 30,000,000 | 30,000,000 | ||||||||||||
Norinchukin Bank | 0.30 | 9-1-2020 | 42,000,000 | 41,999,999 | ||||||||||||
Oversea-Chinese Banking | 0.20 | 9-3-2020 | 30,000,000 | 29,999,484 | ||||||||||||
Oversea-Chinese Banking | 0.25 | 8-12-2020 | 24,000,000 | 24,000,000 | ||||||||||||
Oversea-Chinese Banking | 1.22 | 9-8-2020 | 10,000,000 | 10,000,000 | ||||||||||||
Oversea-Chinese Banking | 1.25 | 10-8-2020 | 22,000,000 | 22,000,000 | ||||||||||||
Skandinaviska Enskilda Bank AB (3 Month LIBOR +0.15%) ± | 0.45 | 10-2-2020 | 8,000,000 | 8,000,000 | ||||||||||||
Skandinaviska Enskilda Bank AB (3 Month LIBOR +0.27%) ± | 0.54 | 10-20-2020 | 4,000,000 | 4,000,926 | ||||||||||||
Standard Chartered Bank | 1.25 | 11-23-2020 | 20,000,000 | 20,000,000 | ||||||||||||
Sumitomo Mitsui Banking Corporation | 0.30 | 9-25-2020 | 28,000,000 | 28,000,000 | ||||||||||||
Sumitomo Mitsui Banking Corporation (1 Month LIBOR +0.18%) ± | 0.37 | 1-21-2021 | 30,000,000 | 30,000,000 | ||||||||||||
Sumitomo Mitsui Trust NY | 0.30 | 9-1-2020 | 22,000,000 | 22,000,000 | ||||||||||||
Sumitomo Mitsui Trust NY | 0.30 | 9-8-2020 | 25,000,000 | 25,000,000 | ||||||||||||
Sumitomo Mitsui Trust NY | 0.30 | 9-16-2020 | 30,000,000 | 30,000,000 | ||||||||||||
Sumitomo Mitsui Trust NY | 0.30 | 10-9-2020 | 18,000,000 | 18,000,000 | ||||||||||||
Svenska Handelsbanken (3 Month LIBOR +0.16%) ± | 0.43 | 10-16-2020 | 5,000,000 | 5,000,000 | ||||||||||||
Svenska Handelsbanken Series A (3 Month LIBOR +0.15%) ± | 0.43 | 10-15-2020 | 11,000,000 | 11,000,000 | ||||||||||||
Toronto Dominion Bank | 1.30 | 11-27-2020 | 15,000,000 | 15,000,000 | ||||||||||||
Toronto Dominion Bank | 1.30 | 12-30-2020 | 10,000,000 | 10,000,000 | ||||||||||||
Toronto Dominion Bank | 1.30 | 2-26-2021 | 15,000,000 | 15,000,000 | ||||||||||||
UBS AG Stamford Branch (1 Month LIBOR +1.25%) ± | 1.41 | 11-3-2020 | 25,000,000 | 25,000,000 | ||||||||||||
UBS AG Stamford Branch (1 Month LIBOR +1.25%) ± | 1.44 | 2-10-2021 | 23,000,000 | 23,000,000 | ||||||||||||
Total Certificates of Deposit (Cost $752,016,640) |
| 752,016,640 | ||||||||||||||
|
| |||||||||||||||
Commercial Paper: 39.31% |
| |||||||||||||||
Asset-Backed Commercial Paper: 22.31% | ||||||||||||||||
Alpine Securitization LLC (3 Month LIBOR +0.08%) 144A± | 0.46 | 11-19-2020 | 15,000,000 | 15,000,000 | ||||||||||||
Anglesea Funding LLC 144A | 0.20 | 11-25-2020 | 27,000,000 | 27,000,000 | ||||||||||||
Anglesea Funding LLC 144A(z) | 0.22 | 8-3-2020 | 25,340,000 | 25,340,000 | ||||||||||||
Anglesea Funding LLC 144A(z) | 0.29 | 10-1-2020 | 15,000,000 | 14,992,871 | ||||||||||||
Anglesea Funding LLC 144A(z) | 0.30 | 9-1-2020 | 25,000,000 | 24,993,958 | ||||||||||||
Anglesea Funding LLC (1 Month LIBOR +0.45%) 144A± | 0.62 | 10-26-2020 | 10,000,000 | 10,000,000 | ||||||||||||
Anglesea Funding LLC (1 Month LIBOR +0.55%) 144A± | 0.73 | 10-21-2020 | 26,000,000 | 26,000,000 | ||||||||||||
Antalis SA 144A(z) | 0.28 | 10-15-2020 | 12,410,000 | 12,402,954 | ||||||||||||
Atlantic Asset Securization Corporation (z) | 1.36 | 8-4-2020 | 7,000,000 | 6,999,738 | ||||||||||||
Bedford Row Funding Corporation (3 Month LIBOR +0.09%) 144A± | 0.37 | 10-7-2020 | 10,000,000 | 10,000,000 | ||||||||||||
Bedford Row Funding Corporation (3 Month LIBOR +0.13%) 144A± | 0.49 | 11-24-2020 | 5,000,000 | 5,000,000 | ||||||||||||
Bennington Sark Cap Company 144A(z) | 0.20 | 8-13-2020 | 55,000,000 | 54,996,944 | ||||||||||||
Chesham Finance Limited 144A(z) | 0.10 | 8-3-2020 | 20,000,000 | 20,000,000 | ||||||||||||
Chesham Finance Limited 144A(z) | 0.10 | 8-3-2020 | 20,000,000 | 20,000,000 | ||||||||||||
Chesham Finance Limited 144A(z) | 0.10 | 8-3-2020 | 20,000,000 | 20,000,000 | ||||||||||||
Collateralized Commercial Paper V Company LLC (z) | 0.25 | 8-7-2020 | 20,000,000 | 19,999,444 |
The accompanying notes are an integral part of these financial statements.
Retail Money Market Funds | 9
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Asset-Backed Commercial Paper (continued) | ||||||||||||||||
Collateralized Commercial Paper V Company LLC (z) | 0.25 | % | 8-12-2020 | $ | 18,000,000 | $ | 17,998,875 | |||||||||
Collateralized Commercial Paper V Company LLC (3 Month LIBOR +0.05%) ± | 0.29 | 10-27-2020 | 15,000,000 | 15,000,000 | ||||||||||||
Collateralized Commercial Paper V Company LLC (3 Month LIBOR +0.10%) ± | 0.41 | 9-28-2020 | 5,000,000 | 5,000,000 | ||||||||||||
Columbia Funding Company 144A(z) | 0.30 | 10-22-2020 | 18,000,000 | 17,988,000 | ||||||||||||
Concord Minutemen Capital Company 144A(z) | 0.25 | 8-10-2020 | 47,000,000 | 46,997,678 | ||||||||||||
Concord Minutemen Capital Company 144A(z) | 0.30 | 8-24-2020 | 18,000,000 | 17,996,850 | ||||||||||||
Concord Minutemen Capital Company 144A(z) | 0.32 | 9-1-2020 | 20,000,000 | 19,994,844 | ||||||||||||
CRC Funding LLC 144A(z) | 1.26 | 10-9-2020 | 10,000,000 | 9,976,736 | ||||||||||||
Crown Point Capital Company 144A(z) | 0.37 | 8-6-2020 | 25,000,000 | 24,999,229 | ||||||||||||
Crown Point Capital Company 144A(z) | 1.26 | 10-15-2020 | 23,000,000 | 22,941,701 | ||||||||||||
Crown Point Capital Company 144A(z) | 1.76 | 8-3-2020 | 15,000,000 | 15,000,000 | ||||||||||||
Glencove Funding LLC 144A | 0.20 | 1-14-2021 | 15,000,000 | 15,000,000 | ||||||||||||
Great Bridge Capital Company LLC 144A(z) | 0.28 | 8-6-2020 | 20,000,000 | 19,999,533 | ||||||||||||
Great Bridge Capital Company LLC 144A(z) | 0.28 | 10-28-2020 | 35,000,000 | 34,976,589 | ||||||||||||
Institutional Secured Funding LLC 144A(z) | 0.25 | 8-3-2020 | 6,000,000 | 6,000,000 | ||||||||||||
Institutional Secured Funding LLC 144A(z) | 0.25 | 8-7-2020 | 29,060,000 | 29,059,193 | ||||||||||||
Ionic Capital Management LLC (z) | 0.44 | 10-8-2020 | 33,000,000 | 32,973,179 | ||||||||||||
Ionic Capital Management LLC (z) | 0.33 | 9-18-2020 | 15,000,000 | 14,993,675 | ||||||||||||
Kells Funding LLC 144A(z) | 0.25 | 9-11-2020 | 28,000,000 | 27,992,417 | ||||||||||||
Kells Funding LLC 144A(z) | 0.25 | 10-8-2020 | 25,000,000 | 24,988,542 | ||||||||||||
Lexington Parker Capital Company LLC 144A(z) | 0.28 | 10-23-2020 | 5,585,000 | 5,581,481 | ||||||||||||
Lexington Parker Capital Company LLC 144A(z) | 0.28 | 10-26-2020 | 50,000,000 | 49,967,333 | ||||||||||||
Lexington Parker Capital Company LLC (z) | 0.29 | 10-20-2020 | 25,000,000 | 24,984,508 | ||||||||||||
Lexington Parker Capital Company LLC 144A(z) | 0.33 | 8-10-2020 | 10,000,000 | 9,999,358 | ||||||||||||
Lexington Parker Capital Company LLC 144A(z) | 0.37 | 9-8-2020 | 10,000,000 | 9,996,300 | ||||||||||||
LMA Americas LLC (z) | 0.23 | 10-6-2020 | 15,000,000 | 14,993,867 | ||||||||||||
LMA Americas LLC 144A(z) | 0.32 | 9-10-2020 | 21,000,000 | 20,992,907 | ||||||||||||
Mackinac Funding Company LLC 144A(z) | 0.34 | 10-8-2020 | 14,000,000 | 13,991,273 | ||||||||||||
Mackinac Funding Company LLC 144A(z) | 0.36 | 10-13-2020 | 20,000,000 | 19,985,800 | ||||||||||||
Mackinac Funding Company LLC 144A(z) | 0.36 | 10-20-2020 | 20,000,000 | 19,984,400 | ||||||||||||
Manhattan Asset Funding Company LLC 144A(z) | 0.16 | 8-21-2020 | 17,227,000 | 17,225,622 | ||||||||||||
Matchpoint Finance plc 144A(z) | 0.10 | 8-3-2020 | 50,000,000 | 50,000,000 | ||||||||||||
Mountcliff Funding LLC 144A(z) | 0.22 | 8-6-2020 | 20,000,000 | 19,999,633 | ||||||||||||
Mountcliff Funding LLC 144A(z) | 0.31 | 10-19-2020 | 20,000,000 | 19,986,739 | ||||||||||||
Mountcliff Funding LLC 144A(z) | 0.34 | 9-9-2020 | 17,000,000 | 16,994,059 | ||||||||||||
Mountcliff Funding LLC 144A(z) | 0.50 | 8-3-2020 | 40,000,000 | 40,000,000 | ||||||||||||
Old Line Funding LLC (1 Month LIBOR +0.14%) 144A± | 0.32 | 10-22-2020 | 5,000,000 | 5,000,000 | ||||||||||||
Ridgefield Funding Company 144A(z) | 0.31 | 9-2-2020 | 30,000,000 | 29,992,250 | ||||||||||||
Thunder Bay Funding LLC 144A(z) | 1.43 | 10-5-2020 | 14,000,000 | 13,965,210 | ||||||||||||
1,136,243,690 | ||||||||||||||||
|
| |||||||||||||||
Financial Company Commercial Paper: 6.12% | ||||||||||||||||
Australia & New Zealand Banking Group Limited (1 Month LIBOR +0.05%) 144A± | 0.22 | 8-28-2020 | 10,000,000 | 10,000,000 | ||||||||||||
Australia & New Zealand Banking Group Limited (3 Month LIBOR +0.11%) 144A± | 0.48 | 11-27-2020 | 5,000,000 | 5,000,000 | ||||||||||||
Banco Santander Chile 144A(z) | 0.29 | 8-4-2020 | 7,000,000 | 6,999,944 | ||||||||||||
Citigroup Global Markets Incorporated 144A(z) | 1.31 | 9-3-2020 | 10,000,000 | 9,988,806 | ||||||||||||
Commonwealth Bank of Australia (3 Month LIBOR +0.15%) 144A± | 0.45 | 9-24-2020 | 8,000,000 | 8,000,000 | ||||||||||||
Commonwealth Bank of Australia (3 Month LIBOR +0.12%) 144A± | 0.57 | 11-9-2020 | 10,000,000 | 10,000,000 | ||||||||||||
DBS Bank Limited 144A(z) | 0.17 | 8-6-2020 | 15,000,000 | 14,999,788 | ||||||||||||
Dexia Credit Local SA 144A(z) | 0.22 | 10-19-2020 | 22,000,000 | 21,989,648 | ||||||||||||
Dexia Credit Local SA 144A(z) | 0.22 | 12-3-2020 | 15,000,000 | 14,988,817 | ||||||||||||
Dexia Credit Local SA 144A(z) | 0.23 | 10-16-2020 | 18,000,000 | 17,991,490 | ||||||||||||
Dexia Credit Local SA 144A(z) | 0.33 | 8-18-2020 | 40,000,000 | 39,994,500 |
The accompanying notes are an integral part of these financial statements.
10 | Retail Money Market Funds
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Financial Company Commercial Paper (continued) | ||||||||||||||||
Dexia Credit Local SA 144A(z) | 1.65 | % | 8-17-2020 | $ | 13,000,000 | $ | 12,991,709 | |||||||||
Federation des Caisses 144A(z) | 0.17 | 9-8-2020 | 15,600,000 | 15,597,348 | ||||||||||||
Federation des Caisses 144A(z) | 0.22 | 10-13-2020 | 15,000,000 | 14,993,492 | ||||||||||||
Federation des Caisses (3 Month LIBOR +0.10%) 144A± | 0.41 | 9-9-2020 | 17,000,000 | 17,000,000 | ||||||||||||
ING US Funding LLC (3 Month LIBOR +0.19%) 144A± | 0.49 | 10-1-2020 | 8,000,000 | 8,000,000 | ||||||||||||
National Australia Bank Limited (3 Month LIBOR +0.12%) 144A± | 0.43 | 12-11-2020 | 9,000,000 | 9,000,000 | ||||||||||||
National Securities Clearing Corporation 144A(z) | 0.17 | 8-21-2020 | 10,000,000 | 9,999,150 | ||||||||||||
National Securities Clearing Corporation 144A(z) | 0.17 | 8-25-2020 | 15,000,000 | 14,998,442 | ||||||||||||
Ontario Teachers Finance Trust 144A(z) | 1.62 | 8-27-2020 | 8,000,000 | 7,991,413 | ||||||||||||
Oversea-Chinese Banking Corporation Limited 144A(z) | 0.89 | 9-14-2020 | 10,000,000 | 9,989,617 | ||||||||||||
Sumitomo Mitsui Banking Corporation 144A(z) | 0.30 | 9-16-2020 | 6,200,000 | 6,197,727 | ||||||||||||
UBS AG (3 Month LIBOR +0.20%) 144A± | 0.54 | 11-30-2020 | 25,000,000 | 25,006,939 | ||||||||||||
311,718,830 | ||||||||||||||||
|
| |||||||||||||||
Other Commercial Paper: 10.88% | ||||||||||||||||
BNG Bank NV 144A(z) | 1.65 | 8-21-2020 | 5,000,000 | 4,995,900 | ||||||||||||
BNG Bank NV 144A(z) | 0.16 | 8-27-2020 | 9,336,000 | 9,335,004 | ||||||||||||
BNG Bank NV 144A(z) | 0.16 | 8-31-2020 | 34,000,000 | 33,995,769 | ||||||||||||
BNG Bank NV (1 Month LIBOR +0.10%) 144A± | 0.26 | 11-6-2020 | 8,000,000 | 8,000,000 | ||||||||||||
Chevron Corporation 144A(z) | 1.26 | 9-15-2020 | 15,000,000 | 14,977,604 | ||||||||||||
China International Marine Containers (z) | 0.75 | 8-3-2020 | 42,000,000 | 42,000,000 | ||||||||||||
COFCO Capital Corporation (z) | 0.25 | 8-18-2020 | 10,000,000 | 9,998,958 | ||||||||||||
Erste Abwicklungsanstalt 144A(z) | 0.20 | 11-5-2020 | 30,000,000 | 29,984,333 | ||||||||||||
Erste Abwicklungsanstalt 144A(z) | 0.22 | 10-8-2020 | 35,000,000 | 34,985,883 | ||||||||||||
Erste Abwicklungsanstalt 144A(z) | 0.22 | 10-13-2020 | 25,000,000 | 24,989,153 | ||||||||||||
Exxon Mobil Corporation (z) | 0.50 | 9-23-2020 | 7,000,000 | 6,995,042 | ||||||||||||
Exxon Mobil Corporation (z) | 0.74 | 8-5-2020 | 20,000,000 | 19,999,183 | ||||||||||||
Exxon Mobil Corporation (z) | 0.82 | 9-22-2020 | 20,000,000 | 19,977,222 | ||||||||||||
Exxon Mobil Corporation (z) | 2.12 | 8-17-2020 | 30,000,000 | 29,975,500 | ||||||||||||
GlaxoSmithKline LLC 144A(z) | 1.41 | 8-14-2020 | 15,000,000 | 14,993,583 | ||||||||||||
Koch Industries Incorporated (z) | 0.22 | 8-3-2020 | 22,000,000 | 22,000,000 | ||||||||||||
Koch Industries Incorporated (z) | 0.30 | 9-21-2020 | 28,000,000 | 27,988,567 | ||||||||||||
Nederlandse Waterschapsbank NV 144A(z) | 0.19 | 11-2-2020 | 38,000,000 | 37,981,749 | ||||||||||||
Nederlandse Waterschapsbank NV 144A(z) | 0.20 | 10-28-2020 | 22,000,000 | 21,989,752 | ||||||||||||
Nederlandse Waterschapsbank NV 144A(z) | 0.21 | 10-8-2020 | 30,000,000 | 29,988,450 | ||||||||||||
Nederlandse Waterschapsbank NV 144A(z) | 0.22 | 10-13-2020 | 20,000,000 | 19,991,519 | ||||||||||||
Nederlandse Waterschapsbank NV 144A(z) | 0.30 | 10-5-2020 | 20,000,000 | 19,989,500 | ||||||||||||
NRW Bank 144A(z) | 0.19 | 10-21-2020 | 14,000,000 | 13,994,163 | ||||||||||||
Province of Alberta 144A(z) | 1.43 | 2-11-2021 | 9,000,000 | 8,932,320 | ||||||||||||
Province of Alberta 144A(z) | 1.61 | 8-13-2020 | 16,000,000 | 15,992,888 | ||||||||||||
Toyota Credit Canada Incorporated (z) | 0.31 | 11-30-2020 | 15,000,000 | 14,984,629 | ||||||||||||
University of Chicago (z) | 0.40 | 8-5-2020 | 15,000,000 | 14,999,667 | ||||||||||||
554,036,338 | ||||||||||||||||
|
| |||||||||||||||
Total Commercial Paper (Cost $2,001,998,858) |
| 2,001,998,858 | ||||||||||||||
|
| |||||||||||||||
Municipal Obligations: 23.02% |
| |||||||||||||||
Arkansas: 0.39% |
| |||||||||||||||
Variable Rate Demand Note ø: 0.39% | ||||||||||||||||
Osceola AR Point Energy Association LLC Project (Water & Sewer Revenue, Goldman Sachs Bank USA LOC) | 0.18 | 4-1-2036 | 20,000,000 | 20,000,000 | ||||||||||||
|
| |||||||||||||||
California: 5.64% |
| |||||||||||||||
Other Municipal Debt: 2.70% | ||||||||||||||||
California Department of Water Resources Series 1 (Water & Sewer Revenue, Bank of America NA SPA) | 0.15 | 8-14-2020 | 12,000,000 | 11,999,505 |
The accompanying notes are an integral part of these financial statements.
Retail Money Market Funds | 11
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Other Municipal Debt (continued) | ||||||||||||||||
California Department of Water Resources Series 1 (Water & Sewer Revenue, Bank of America NA SPA) | 0.21 | % | 8-14-2020 | $ | 14,000,000 | $ | 14,000,000 | |||||||||
Los Angeles County CA Metropolitan Transportation Authority Series A (Tax Revenue, Barclays Bank LOC) | 0.26 | 8-17-2020 | 5,000,000 | 5,000,000 | ||||||||||||
Orange County CA Municipal Water District Series 94B-T (Water & Sewer Revenue, Sumitomo Mitsui Banking Corporation LOC) | 0.25 | 8-12-2020 | 16,000,000 | 16,000,000 | ||||||||||||
San Francisco CA Public Utilities Commission of the City & County Tender Option Bond Trust Receipts/Certificates Series A (Water & Sewer Revenue, Bank of America NA LOC) | 0.25 | 9-17-2020 | 7,566,000 | 7,566,000 | ||||||||||||
San Jose CA International Airport Subordinated Series B (Airport Revenue, Bank of America NA LOC) | 0.35 | 8-12-2020 | 5,000,000 | 5,000,000 | ||||||||||||
State of California Series B-2 (GO Revenue, Royal Bank of Canada LOC) | 0.23 | 10-15-2020 | 6,320,000 | 6,320,000 | ||||||||||||
State of California Series B-2 (GO Revenue, Royal Bank of Canada LOC) | 0.28 | 9-10-2020 | 10,000,000 | 10,000,000 | ||||||||||||
State of California Series B-2 (GO Revenue, Royal Bank of Canada LOC) | 0.33 | 8-6-2020 | 8,760,000 | 8,760,000 | ||||||||||||
State of California Series B-4 (GO Revenue, TD Bank NA LOC) | 0.25 | 8-19-2020 | 15,655,000 | 15,655,000 | ||||||||||||
State of California Series B-5 (GO Revenue, U.S. Bank NA LOC) | 0.40 | 8-10-2020 | 8,095,000 | 8,095,000 | ||||||||||||
State of California Series B-7 (GO Revenue, State Street Bank & Trust Company LOC) | 0.30 | 9-3-2020 | 8,000,000 | 8,000,000 | ||||||||||||
University of California Series A (Education Revenue) | 0.15 | 9-4-2020 | 13,900,000 | 13,898,573 | ||||||||||||
University of California Series A (Education Revenue) | 0.22 | 8-7-2020 | 7,000,000 | 7,000,000 | ||||||||||||
137,294,078 | ||||||||||||||||
|
| |||||||||||||||
Variable Rate Demand Notes ø: 2.94% | ||||||||||||||||
California Department of Water Resources (Water & Sewer Revenue, Bank of America NA SPA) | 0.21 | 8-14-2020 | 7,967,000 | 7,967,000 | ||||||||||||
California Kindergarten Series A1 (GO Revenue, Citibank NA LOC) | 0.11 | 5-1-2034 | 14,600,000 | 14,600,000 | ||||||||||||
California State Kindergarten University Public Education Facilities Series 2003-A (GO Revenue, Bank of Montreal LOC) | 0.11 | 5-1-2033 | 16,220,000 | 16,220,000 | ||||||||||||
California Tender Option Bond Trust Receipts/Certificates Los Angeles Community College District Series 2016-TXG002 (GO Revenue, Bank of America NA LIQ) 144A | 0.58 | 8-1-2049 | 10,500,000 | 10,500,000 | ||||||||||||
Mizuho Tender Option Bond Trust Receipts/Floater Certificates Series 2019-MIZ9003 (Tax Revenue, Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ) 144A | 0.38 | 3-1-2036 | 3,965,000 | 3,965,000 | ||||||||||||
San Diego CA Housing Revenue Park & Market Apartments Series A (Housing Revenue, Bank of Tokyo-Mitsubishi LOC) | 0.17 | 6-1-2057 | 15,000,000 | 15,000,000 | ||||||||||||
San Francisco CA City & County Apartments Community International Revenue Series C (Airport Revenue, Sumitomo Mitsui Banking LOC) | 0.17 | 5-1-2058 | 19,000,000 | 19,000,000 | ||||||||||||
San Francisco CA City & County Certificate of Participation Series B001 (Miscellaneous Revenue, Morgan Stanley Bank LIQ) 144A | 0.55 | 11-1-2041 | 10,000,000 | 10,000,000 | ||||||||||||
San Francisco CA City & County Housing Revenue Block 8 Tower Apartments Series H1 (Housing Revenue, Bank of China LOC) | 0.27 | 11-1-2056 | 18,000,000 | 18,000,000 | ||||||||||||
San Francisco CA City & County Housing Revenue Block 8 Tower Apartments Series H2 (Housing Revenue, Bank of China LOC) | 0.25 | 11-1-2056 | 22,600,000 | 22,600,000 | ||||||||||||
University of California Revenues Series AL1 (Education Revenue) | 0.11 | 5-15-2048 | 12,000,000 | 12,000,000 | ||||||||||||
149,852,000 | ||||||||||||||||
|
| |||||||||||||||
Colorado: 1.29% |
| |||||||||||||||
Variable Rate Demand Notes ø: 1.29% | ||||||||||||||||
Colorado HFA Adjusted Taxable Single Family Mortgage (Housing Revenue, GNMA Insured, Royal Bank of Canada SPA) | 0.17 | 11-1-2050 | 14,000,000 | 14,000,000 | ||||||||||||
Colorado HFA MFHR Class II Series B (Housing Revenue, FHLB SPA) | 0.27 | 5-1-2052 | 37,000,000 | 37,000,000 | ||||||||||||
Colorado Southern Ute Indian Tribe Reservation Series 2007 (Miscellaneous Revenue) 144A | 0.17 | 1-1-2027 | 14,490,000 | 14,490,000 | ||||||||||||
65,490,000 | ||||||||||||||||
|
|
The accompanying notes are an integral part of these financial statements.
12 | Retail Money Market Funds
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Delaware: 0.19% |
| |||||||||||||||
Variable Rate Demand Note ø: 0.19% | ||||||||||||||||
Delaware Tender Option Bond Trust Receipts/Floater Certificates Series 2020 TPG015 (Miscellaneous Revenue, Bank of America NA LIQ) 144A | 0.82 | % | 2-1-2038 | $ | 9,580,000 | $ | 9,580,000 | |||||||||
|
| |||||||||||||||
District of Columbia: 0.14% |
| |||||||||||||||
Other Municipal Debt: 0.14% | ||||||||||||||||
District of Columbia (GO Revenue, Barclays Bank LOC) (z) | 0.30 | 9-1-2020 | 7,000,000 | 6,998,308 | ||||||||||||
|
| |||||||||||||||
Florida: 0.19% |
| |||||||||||||||
Variable Rate Demand Note ø: 0.19% | ||||||||||||||||
Orlando FL Utilities Commission Series 1 (Utilities Revenue, TD Bank NA SPA) | 0.15 | 10-1-2033 | 9,600,000 | 9,600,000 | ||||||||||||
|
| |||||||||||||||
Georgia: 0.88% |
| |||||||||||||||
Variable Rate Demand Notes ø: 0.88% | ||||||||||||||||
Macon-Bibb County GA Industrial Authority Kumho Tire Georgia Incorporated Series A (Industrial Development Revenue, Korea Development Bank LOC) | 0.38 | 12-1-2022 | 18,000,000 | 18,000,000 | ||||||||||||
Macon-Bibb County GA Industrial Authority Kumho Tire Georgia Incorporated Series A (Industrial Development Revenue, Korea Development Bank LOC) | 0.38 | 12-1-2022 | 27,000,000 | 27,000,000 | ||||||||||||
45,000,000 | ||||||||||||||||
|
| |||||||||||||||
Idaho: 0.25% |
| |||||||||||||||
Other Municipal Debt: 0.25% | ||||||||||||||||
Idaho Housing & Finance Association (Housing Revenue, Barclays Bank LOC) | 0.55 | 8-5-2020 | 7,000,000 | 7,000,000 | ||||||||||||
Idaho Housing Agency (Housing Revenue, Barclays Bank LOC) | 0.80 | 8-4-2020 | 6,000,000 | 6,000,000 | ||||||||||||
13,000,000 | ||||||||||||||||
|
| |||||||||||||||
Illinois: 0.37% |
| |||||||||||||||
Variable Rate Demand Note ø: 0.37% | ||||||||||||||||
Illinois State Finance Authority Revenue Various Northshore University Health System Series B (Health Revenue, JPMorgan Chase & Company SPA) | 0.14 | 8-15-2049 | 18,640,000 | 18,640,000 | ||||||||||||
|
| |||||||||||||||
Indiana: 0.39% |
| |||||||||||||||
Other Municipal Debt: 0.39% | ||||||||||||||||
Indiana State Finance Authority Trinity Health Credit Group Series D-2 (Miscellaneous Revenue) | 0.21 | 8-18-2020 | 20,000,000 | 20,000,000 | ||||||||||||
|
| |||||||||||||||
Kentucky: 0.64% |
| |||||||||||||||
Variable Rate Demand Notes ø: 0.64% | ||||||||||||||||
Daviess County KY Waste Disposal Facility Revenue Scott Paper Company Project B (Industrial Development Revenue) | 0.19 | 12-1-2023 | 11,000,000 | 11,000,000 | ||||||||||||
Kentucky Housing Corporation Series O (Housing Revenue, Kentucky Housing Corporation SPA) | 0.21 | 1-1-2036 | 3,790,000 | 3,790,000 | ||||||||||||
Kentucky Tender Option Bond Trust Receipts/Floater Certificates Series 2020-TPG016 (Miscellaneous Revenue, Bank of America NA LIQ) 144A | 0.68 | 2-16-2021 | 17,750,000 | 17,750,000 | ||||||||||||
32,540,000 | ||||||||||||||||
|
| |||||||||||||||
Maryland: 0.29% |
| |||||||||||||||
Other Municipal Debt: 0.29% | ||||||||||||||||
Montgomery County MD BAN Series 2009A (GO Revenue, JPMorgan Chase & Company LIQ) | 0.20 | 8-25-2020 | 15,000,000 | 15,000,000 | ||||||||||||
|
|
The accompanying notes are an integral part of these financial statements.
Retail Money Market Funds | 13
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Massachusetts: 0.20% |
| |||||||||||||||
Other Municipal Debt: 0.20% | ||||||||||||||||
Massachusetts Educational Financing Authority Series A (Education Revenue, Royal Bank of Canada LOC) | 0.25 | % | 9-10-2020 | $ | 10,000,000 | $ | 10,000,000 | |||||||||
|
| |||||||||||||||
Michigan: 0.24% |
| |||||||||||||||
Variable Rate Demand Note ø: 0.24% | ||||||||||||||||
Michigan State Housing Development AMT Refunding Bond Series B (Housing Revenue, Industrial & Commercial Bank of China Limited SPA) | 0.29 | 6-1-2038 | 12,435,000 | 12,435,000 | ||||||||||||
|
| |||||||||||||||
Missouri: 0.31% |
| |||||||||||||||
Variable Rate Demand Notes ø: 0.31% | ||||||||||||||||
Bridgeton MO IDA Stolze Printing (Industrial Development Revenue, Carrollton Bank LOC) | 0.22 | 12-1-2047 | 3,800,000 | 3,800,000 | ||||||||||||
Missouri HEFA Series 2018E (Health Revenue) | 0.14 | 6-1-2036 | 11,780,000 | 11,780,000 | ||||||||||||
15,580,000 | ||||||||||||||||
|
| |||||||||||||||
New Hampshire: 0.95% |
| |||||||||||||||
Variable Rate Demand Notes ø: 0.95% | ||||||||||||||||
New Hampshire Business Finance Authority CJ Foods Manufacturing Beaumont Corporation Series A (Industrial Development Revenue, Kookmin Bank LOC) 144A | 0.38 | 10-1-2028 | 24,000,000 | 24,000,000 | ||||||||||||
New Hampshire National Finance Authority Industrial Development Revenue Series A (Industrial Development Revenue, Kookmin Bank LOC) 144A | 0.38 | 7-1-2029 | 24,500,000 | 24,500,000 | ||||||||||||
48,500,000 | ||||||||||||||||
|
| |||||||||||||||
New Jersey: 0.20% |
| |||||||||||||||
Variable Rate Demand Note ø: 0.20% | ||||||||||||||||
Jets Stadium Development Series A-4B (Miscellaneous Revenue, Sumitomo Mitsui Banking Corporation LOC) 144A | 0.29 | 4-1-2047 | 10,000,000 | 10,000,000 | ||||||||||||
|
| |||||||||||||||
New York: 3.10% |
| |||||||||||||||
Other Municipal Debt: 1.28% | ||||||||||||||||
Long Island Power Authority Series 2015-GR1A (Utilities Revenue, TD Bank NA LOC) | 0.16 | 9-1-2020 | 7,000,000 | 7,000,000 | ||||||||||||
Long Island Power Authority Series 2015-GR5A (Utilities Revenue) | 0.21 | 8-5-2020 | 25,000,000 | 25,000,000 | ||||||||||||
New York Dormitory Authority Personal Income Tax Revenue Series B (Tax Revenue) | 5.00 | 3-31-2021 | 20,000,000 | 20,584,559 | ||||||||||||
Port Authority of NY & NJ Series C (Airport Revenue) | 0.45 | 10-15-2020 | 6,055,000 | 6,055,000 | ||||||||||||
Port Authority of NY & NJ Series C (Airport Revenue) | 0.50 | 9-24-2020 | 4,000,000 | 4,000,000 | ||||||||||||
Port Authority of NY & NJ Series C (Airport Revenue) | 0.55 | 9-3-2020 | 2,400,000 | 2,400,000 | ||||||||||||
65,039,559 | ||||||||||||||||
|
| |||||||||||||||
Variable Rate Demand Notes ø: 1.82% | ||||||||||||||||
Metropolitan Transportation Authority Revenue Series 2012G (Transportation Revenue, Barclays Bank plc LOC) | 0.14 | 11-1-2032 | 20,000,000 | 20,000,000 | ||||||||||||
New York City NY Housing Development Corporation Multifamily Mortgage Revenue Susans Court Series A (Housing Revenue, Citibank NA LOC) | 0.16 | 11-1-2039 | 21,600,000 | 21,600,000 | ||||||||||||
New York City NY Transitional Finance Authority Revenue Variable Subordinate Bonds Future Tax Secured Fiscal 2018 Series C-6 (Tax Revenue, Sumitomo Mitsui Banking SPA) | 0.19 | 5-1-2047 | 15,000,000 | 15,000,000 | ||||||||||||
New York HFA 222 East 44th Street Series B (Housing Revenue, Bank of China LOC) | 0.22 | 5-1-2050 | 4,000,000 | 4,000,000 |
The accompanying notes are an integral part of these financial statements.
14 | Retail Money Market Funds
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Variable Rate Demand Notes ø (continued) | ||||||||||||||||
New York NY Adjusted Fiscal 2017 Subordinate Bonds Series A-4 (GO Revenue, Citibank NA LOC) | 0.14 | % | 8-1-2044 | $ | 9,000,000 | $ | 9,000,000 | |||||||||
New York NY Municipal Water Finance Authority Fiscal 2015 Series BB-2 (Water & Sewer Revenue, Mizuho Bank Limited SPA) | 0.14 | 6-15-2049 | 6,880,000 | 6,880,000 | ||||||||||||
New York NY Transitional Finance Authority Future Tax Secured Tax-Exempt Bond Fiscal 2015 Subordinate Bonds Series A-3 (Tax Revenue, Mizuho Bank Limited SPA) | 0.16 | 8-1-2043 | 16,000,000 | 16,000,000 | ||||||||||||
92,480,000 | ||||||||||||||||
|
| |||||||||||||||
North Carolina: 0.62% |
| |||||||||||||||
Variable Rate Demand Note ø: 0.62% | ||||||||||||||||
North Carolina Medical Care Commission Novant Health Obligated Group Series A (Health Revenue, JPMorgan Chase & Company SPA) | 0.18 | 11-1-2034 | 31,630,000 | 31,630,000 | ||||||||||||
|
| |||||||||||||||
Ohio: 0.17% |
| |||||||||||||||
Variable Rate Demand Note ø: 0.17% | ||||||||||||||||
Ohio Tender Option Bond Trust Receipts/Floater Certificates Series 2020-TPG017 (Miscellaneous Revenue, Bank of America NA LIQ) 144A | 0.54 | 12-1-2049 | 8,810,000 | 8,810,000 | ||||||||||||
|
| |||||||||||||||
Oregon: 0.12% |
| |||||||||||||||
Variable Rate Demand Note ø: 0.12% | ||||||||||||||||
Portland OR Portland International Airport (Airport Revenue, Bank of China LOC) | 0.25 | 7-1-2026 | 6,000,000 | 6,000,000 | ||||||||||||
|
| |||||||||||||||
Other: 2.44% |
| |||||||||||||||
Variable Rate Demand Notes ø: 2.44% | ||||||||||||||||
JPMorgan Chase Puttable Tax-Exempt Receipts Derivative Inverse Tax-Exempt Receipts & Custodial Receipts Trust Series 5039 (JPMorgan Chase & Company LIQ, JPMorgan Chase & Company LOC) | 0.42 | 11-16-2022 | 37,000,000 | 37,000,000 | ||||||||||||
Taxable Municipal Funding Trust Various States Floaters Series 2019-014 (GO Revenue, Barclays Bank plc LOC) 144A | 0.56 | 9-1-2027 | 45,000,000 | 45,000,000 | ||||||||||||
Taxable Municipal Funding Trust Various States Floaters Series 2019-BTMFT (GO Revenue, Barclays Bank plc LOC) 144A | 0.26 | 9-1-2026 | 12,390,000 | 12,390,000 | ||||||||||||
Taxable Municipal Funding Trust Various States Floaters Series 2020-003 (GO Revenue, Barclays Bank plc LOC) 144A | 0.56 | 1-16-2025 | 1,420,000 | 1,420,000 | ||||||||||||
Taxable Municipal Funding Trust Various States Floaters Series 2020-008 (GO Revenue, Barclays Bank plc LOC) 144A | 0.56 | 5-1-2024 | 14,540,000 | 14,540,000 | ||||||||||||
Taxable Municipal Funding Trust Various States Series 2019-019 (Utilities Revenue, Barclays Bank plc LOC) 144A | 0.56 | 11-26-2020 | 13,835,000 | 13,835,000 | ||||||||||||
124,185,000 | ||||||||||||||||
|
| |||||||||||||||
Tennessee: 0.78% |
| |||||||||||||||
Variable Rate Demand Note ø: 0.78% | ||||||||||||||||
Shelby County TN Various Public Improvement and School Series B (GO Revenue, State Street Bank & Trust Company SPA) | 0.16 | 3-1-2031 | 40,000,000 | 40,000,000 | ||||||||||||
|
| |||||||||||||||
Texas: 3.03% |
| |||||||||||||||
Other Municipal Debt: 2.03% | ||||||||||||||||
Austin TX (Utilities Revenue, JPMorgan Chase & Company LIQ) | 0.21 | 8-18-2020 | 13,960,000 | 13,960,000 | ||||||||||||
Dallas Forth Worth TX International Airport Series I (Airport Revenue) | 0.65 | 8-28-2020 | 7,000,000 | 7,000,000 | ||||||||||||
Dallas Forth Worth TX International Airport Series I (Airport Revenue) | 0.65 | 9-8-2020 | 4,000,000 | 4,000,000 |
The accompanying notes are an integral part of these financial statements.
Retail Money Market Funds | 15
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Other Municipal Debt (continued) | ||||||||||||||||
Harris County TX Flood Control District Series H (Miscellaneous Revenue, JPMorgan Chase & Company LOC) | 0.18 | % | 9-17-2020 | $ | 4,730,000 | $ | 4,730,000 | |||||||||
Harris County TX Flood Control District Series H (Miscellaneous Revenue, JPMorgan Chase & Company LOC) | 0.25 | 9-17-2020 | 20,660,000 | 20,660,000 | ||||||||||||
Harris County TX Flood Control District Series H (Miscellaneous Revenue, JPMorgan Chase & Company LOC) | 0.47 | 8-6-2020 | 3,000,000 | 3,000,000 | ||||||||||||
Houston TX Series B-1 (Utilities Revenue, Bank of America NA SPA) | 0.25 | 10-1-2020 | 5,000,000 | 5,000,000 | ||||||||||||
Texas PFA (Miscellaneous Revenue) | 0.45 | 8-4-2020 | 7,000,000 | 7,000,000 | ||||||||||||
Texas Tax & Revenue Anticipation Notes (GO Revenue) | 4.00 | 8-27-2020 | 31,000,000 | 31,073,460 | ||||||||||||
University of Texas Permanent University Fund Series A (Education Revenue) | 0.17 | 8-12-2020 | 7,000,000 | 6,999,848 | ||||||||||||
103,423,308 | ||||||||||||||||
|
| |||||||||||||||
Variable Rate Demand Notes ø: 1.00% | ||||||||||||||||
Gulf Coast TX IDA Exxon Mobil Project Series 2012 (Industrial Development Revenue) | 0.14 | 11-1-2041 | 28,000,000 | 28,000,000 | ||||||||||||
Lower Neches Valley TX Authority Industrial Development Corporation Exxon Mobil Project Series 2010 (Industrial Development Revenue, Exxon Mobil Corporation) | 0.12 | 11-1-2038 | 5,000,000 | 5,000,000 | ||||||||||||
University of Texas Permanent University Funding System Series A (Education Revenue) | 0.13 | 7-1-2037 | 18,000,000 | 18,000,000 | ||||||||||||
51,000,000 | ||||||||||||||||
|
| |||||||||||||||
Virginia: 0.20% |
| |||||||||||||||
Other Municipal Debt: 0.20% | ||||||||||||||||
Staunton City VA IDA Series 8-A1 (Industrial Development Revenue, Bank of America NA LOC) | 0.21 | 8-6-2020 | 10,100,000 | 10,100,000 | ||||||||||||
|
| |||||||||||||||
Total Municipal Obligations (Cost $1,172,177,253) |
| 1,172,177,253 | ||||||||||||||
|
| |||||||||||||||
Closed End Municipal Bond Fund Obligations: 0.58% | ||||||||||||||||
Invesco Dynamic Credit Opportunities Fund Variable Rate Demand Preferred Shares Series W-7 (140 shares) 0.36% 144A§øø | 14,000,000 | |||||||||||||||
Nuveen Short Duration Credit Opportunities Fund Taxable Fund Preferred Shares Series A (16,000 shares) 0.36% 144Aø | 16,000,000 | 16,000,000 | ||||||||||||||
Total Closed End Municipal Bond Fund Obligations (Cost $30,000,000) | 30,000,000 | |||||||||||||||
|
| |||||||||||||||
Other Instruments: 0.37% | ||||||||||||||||
Altoona Blair County Development Corporation 144A§øø | 0.22 | 4-1-2035 | 5,850,000 | 5,850,000 | ||||||||||||
Altoona Blair County Development Corporation 144A§øø | 0.22 | 9-1-2038 | 3,000,000 | 3,000,000 | ||||||||||||
Fiddyment Ranch Apartments LP §øø | 0.22 | 9-1-2057 | 2,000,000 | 2,000,000 | ||||||||||||
Fiddyment Ranch Apartments LP §øø | 0.22 | 9-1-2057 | 2,000,000 | 2,000,000 | ||||||||||||
Keep Memory Alive §øø | 0.20 | 5-1-2037 | 2,890,000 | 2,890,000 | ||||||||||||
Southside Brookshore §øø | 0.22 | 9-1-2059 | 2,640,000 | 2,640,000 | ||||||||||||
Total Other Instruments (Cost $18,380,000) |
| 18,380,000 | ||||||||||||||
|
| |||||||||||||||
Other Notes: 0.33% |
| |||||||||||||||
Corporate Bonds and Notes: 0.33% | ||||||||||||||||
Cellmark Incorporated §ø | 0.22 | 6-1-2038 | 16,000,000 | 16,000,000 | ||||||||||||
SSAB AB Series A §øø | 0.22 | 6-1-2035 | 1,000,000 | 1,000,000 | ||||||||||||
Total Other Notes (Cost $17,000,000) |
| 17,000,000 | ||||||||||||||
|
|
The accompanying notes are an integral part of these financial statements.
16 | Retail Money Market Funds
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Repurchase Agreements^^: 8.07% | ||||||||||||||||
Credit Agricole SA, dated 7-31-2020, maturity value $111,025,925 (1) | 0.10 | % | 8-3-2020 | $ | 111,025,000 | $ | 111,025,000 | |||||||||
Standard Chartered Bank, dated 7-31-2020, maturity value $300,002,500 (2) | 0.10 | 8-3-2020 | 300,000,000 | 300,000,000 | ||||||||||||
Total Repurchase Agreements (Cost $411,025,000) |
| 411,025,000 | ||||||||||||||
|
| |||||||||||||||
Treasury Debt: 12.99% | ||||||||||||||||
U.S. Cash Management Bill (z) | 0.15 | 10-27-2020 | 70,000,000 | 69,975,539 | ||||||||||||
U.S. Cash Management Bill (z) | 0.15 | 10-20-2020 | 80,000,000 | 79,973,480 | ||||||||||||
U.S. Cash Management Bill (z) | 0.16 | 12-15-2020 | 25,000,000 | 24,985,344 | ||||||||||||
U.S. Cash Management Bill (z) | 0.17 | 11-3-2020 | 50,000,000 | 49,977,798 | ||||||||||||
U.S. Cash Management Bill (z) | 0.18 | 11-10-2020 | 53,000,000 | 52,974,260 | ||||||||||||
U.S. Cash Management Bill (z) | 0.25 | 9-15-2020 | 56,000,000 | 55,983,612 | ||||||||||||
U.S. Treasury Bill (z) | 0.14 | 9-17-2020 | 50,000,000 | 49,991,345 | ||||||||||||
U.S. Treasury Bill (z) | 0.15 | 11-5-2020 | 40,000,000 | 39,984,203 | ||||||||||||
U.S. Treasury Bill (z) | 0.16 | 9-24-2020 | 50,000,000 | 49,988,806 | ||||||||||||
U.S. Treasury Bill (z) | 0.16 | 11-19-2020 | 45,000,000 | 44,979,075 | ||||||||||||
U.S. Treasury Bill (z) | 0.16 | 8-11-2020 | 25,000,000 | 24,999,114 | ||||||||||||
U.S. Treasury Bill (z) | 0.16 | 11-27-2020 | 38,000,000 | 37,980,103 | ||||||||||||
U.S. Treasury Bill (z) | 0.17 | 12-3-2020 | 40,000,000 | 39,977,430 | ||||||||||||
U.S. Treasury Bill (z) | 0.19 | 12-10-2020 | 40,000,000 | 39,972,767 | ||||||||||||
Total Treasury Debt (Cost $661,742,876) |
| 661,742,876 | ||||||||||||||
|
|
Total investments in securities (Cost $5,064,340,627) | 99.43 | % | 5,064,340,627 | |||||
Other assets and liabilities, net | 0.57 | 28,873,694 | ||||||
|
|
|
| |||||
Total net assets | 100.00 | % | $ | 5,093,214,321 | ||||
|
|
|
|
± | Variable rate investment. The rate shown is the rate in effect at period end. |
144A | The security may be resold in transactions exempt from registration, normally to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933. |
(z) | Zero coupon security. The rate represents the current yield to maturity. |
ø | Variable rate demand notes are subject to a demand feature which reduces the effective maturity. The maturity date shown represents the final maturity date of the security. The interest rate is determined and reset by the issuer daily, weekly, or monthly depending upon the terms of the security. The rate shown is the rate in effect at period end. |
§ | The security is subject to a demand feature which reduces the effective maturity. |
øø | The interest rate is determined and reset by the issuer periodically depending upon the terms of the security. The rate shown is the rate in effect at period end. |
^^ | Collateralized by: |
(1) | U.S. government securities, 3.00% to 4.50%, 12-1-2040 to 1-20-2050, fair value including accrued interest is $114,355,750. |
(2) | U.S. government securities, 0.00% to 6.25%, 8-13-2020 to 6-20-2050, fair value including accrued interest is $306,247,757. |
Abbreviations:
AMT | Alternative minimum tax |
BAN | Bond anticipation notes |
FHLB | Federal Home Loan Bank |
GNMA | Government National Mortgage Association |
GO | General Obligation |
HEFA | Health & Educational Facilities Authority |
HFA | Housing Finance Authority |
IDA | Industrial Development Authority |
LIBOR | London Interbank Offered Rate |
LIQ | Liquidity agreement |
LOC | Letter of credit |
MFHR | Multifamily housing revenue |
PFA | Public Finance Authority |
SPA | Standby purchase agreement |
The accompanying notes are an integral part of these financial statements.
Retail Money Market Funds | 17
Table of Contents
Statement of assets and liabilities—July 31, 2020 (unaudited)
Assets | ||||
Investments in unaffiliated securities, at amortized cost | $ | 5,064,340,627 | ||
Cash | 15,018 | |||
Receivable for investments sold | 17,161,529 | |||
Receivable for Fund shares sold | 23,131,725 | |||
Receivable for interest | 3,357,464 | |||
Prepaid expenses and other assets | 935,021 | |||
|
| |||
Total assets | 5,108,941,384 | |||
|
| |||
Liabilities | ||||
Payable for Fund shares redeemed | 14,992,689 | |||
Management fee payable | 133,483 | |||
Dividends payable | 84,259 | |||
Administration fees payable | 432,872 | |||
Distribution fee payable | 3,285 | |||
Trustees’ fees and expenses payable | 2,168 | |||
Accrued expenses and other liabilities | 78,307 | |||
|
| |||
Total liabilities | 15,727,063 | |||
|
| |||
Total net assets | $ | 5,093,214,321 | ||
|
| |||
Net assets consist of | ||||
Paid-in capital | $ | 5,094,025,308 | ||
Total distributable loss | (810,987 | ) | ||
|
| |||
Total net assets | $ | 5,093,214,321 | ||
|
| |||
Computation of net asset value per share | ||||
Net assets – Class A | $ | 469,049,825 | ||
Shares outstanding – Class A1 | 469,062,409 | |||
Net asset value per share – Class A | $1.00 | |||
Net assets – Class C | $ | 4,874,893 | ||
Shares outstanding – Class C1 | 4,875,057 | |||
Net asset value per share – Class C | $1.00 | |||
Net assets – Premier Class | $ | 4,607,249,785 | ||
Shares outstanding – Premier Class1 | $ | 4,607,373,482 | ||
Net asset value per share – Premier Class | $1.00 | |||
Net assets – Service Class | $ | 12,039,818 | ||
Shares outstanding – Service Class1 | 12,040,148 | |||
Net asset value per share – Service Class | $1.00 |
1 | The Fund has an unlimited number of authorized shares. |
The accompanying notes are an integral part of these financial statements.
18 | Retail Money Market Funds
Table of Contents
Statement of operations—six months ended July 31, 2020 (unaudited)
Investment income | ||||
Interest | $ | 18,008,153 | ||
|
| |||
Expenses | ||||
Management fee | 3,867,899 | |||
Administration fees | ||||
Class A | 526,169 | |||
Class C | 4,952 | |||
Premier Class | 1,349,950 | |||
Service Class | 7,351 | |||
Shareholder servicing fees | ||||
Class A | 596,421 | |||
Class C | 5,627 | |||
Service Class | 15,312 | |||
Distribution fee | ||||
Class C | 16,861 | |||
Custody and accounting fees | 30,390 | |||
Professional fees | 22,854 | |||
Registration fees | 87,556 | |||
Shareholder report expenses | 35,960 | |||
Trustees’ fees and expenses | 10,289 | |||
Other fees and expenses | 23,699 | |||
|
| |||
Total expenses | 6,601,290 | |||
Less: Fee waivers and/or expense reimbursements | ||||
Fund-level | (2,174,769 | ) | ||
Class A | (51,501 | ) | ||
Class C | (7,739 | ) | ||
Premier Class | (816,171 | ) | ||
Service Class | (669 | ) | ||
|
| |||
Net expenses | 3,550,441 | |||
|
| |||
Net investment income | 14,457,712 | |||
Net realized losses on investments | (492,099 | ) | ||
|
| |||
Net increase in net assets resulting from operations | $ | 13,965,613 | ||
|
|
The accompanying notes are an integral part of these financial statements.
Retail Money Market Funds | 19
Table of Contents
Statement of changes in net assets
Six months ended July 31, 2020 (unaudited) | Year ended January 31, 2020 | |||||||||||||||
Operations | ||||||||||||||||
Net investment income | $ | 14,457,712 | $ | 26,833,839 | ||||||||||||
Net realized gains (losses) on investments | (492,099 | ) | 16,052 | |||||||||||||
|
| |||||||||||||||
Net increase in net assets resulting from operations | 13,965,613 | 26,849,891 | ||||||||||||||
|
| |||||||||||||||
Distributions to shareholders from net investment income and net realized gains | ||||||||||||||||
Class A | (1,243,370 | ) | (8,361,607 | ) | ||||||||||||
Class C | (2,593 | ) | (37,781 | ) | ||||||||||||
Premier Class | (13,175,093 | ) | (18,212,417 | ) | ||||||||||||
Service Class | (36,656 | ) | (222,034 | ) | ||||||||||||
|
| |||||||||||||||
Total distributions to shareholders | (14,457,712 | ) | (26,833,839 | ) | ||||||||||||
|
| |||||||||||||||
Capital share transactions | Shares | Shares | ||||||||||||||
Proceeds from shares sold | ||||||||||||||||
Class A | 137,526,421 | 137,526,421 | 160,152,326 | 160,152,326 | ||||||||||||
Class C | 4,040,901 | 4,040,901 | 1,340,300 | 1,340,300 | ||||||||||||
Premier Class | 5,208,018,752 | 5,208,018,752 | 2,910,104,056 | 2,910,104,056 | ||||||||||||
Service Class | 1,039,901 | 1,039,901 | 1,520,533 | 1,520,533 | ||||||||||||
|
| |||||||||||||||
5,350,625,975 | 3,073,117,215 | |||||||||||||||
|
| |||||||||||||||
Reinvestment of distributions | ||||||||||||||||
Class A | 1,243,370 | 1,243,370 | 8,230,315 | 8,230,315 | ||||||||||||
Class C | 2,593 | 2,593 | 37,442 | 37,442 | ||||||||||||
Premier Class | 13,175,093 | 13,175,093 | 17,829,814 | 17,829,814 | ||||||||||||
Service Class | 36,656 | 36,656 | 215,827 | 215,827 | ||||||||||||
|
| |||||||||||||||
14,457,712 | 26,313,398 | |||||||||||||||
|
| |||||||||||||||
Payment for shares redeemed | ||||||||||||||||
Class A | (144,820,900 | ) | (144,820,900 | ) | (167,103,886 | ) | (167,103,886 | ) | ||||||||
Class C | (2,321,291 | ) | (2,321,291 | ) | (6,449,887 | ) | (6,449,887 | ) | ||||||||
Premier Class | (2,797,116,067 | ) | (2,797,116,067 | ) | (1,040,475,070 | ) | (1,040,475,070 | ) | ||||||||
Service Class | (1,072,243 | ) | (1,072,243 | ) | (1,579,489 | ) | (1,579,489 | ) | ||||||||
|
| |||||||||||||||
(2,945,330,501 | ) | (1,215,608,332 | ) | |||||||||||||
|
| |||||||||||||||
Net increase in net assets resulting from capital share transactions | 2,419,753,186 | 1,883,822,281 | ||||||||||||||
|
| |||||||||||||||
Total increase in net assets | 2,419,261,087 | 1,883,838,333 | ||||||||||||||
|
| |||||||||||||||
Net assets | ||||||||||||||||
Beginning of period | 2,673,953,234 | 790,114,901 | ||||||||||||||
|
| |||||||||||||||
End of period | $ | 5,093,214,321 | $ | 2,673,953,234 | ||||||||||||
|
|
The accompanying notes are an integral part of these financial statements.
20 | Retail Money Market Funds
Table of Contents
(For a share outstanding throughout each period)
Six months ended July 31, 2020 (unaudited) | Year ended January 31 | |||||||||||||||||||||||
CLASS A | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Net investment income | 0.001 | 0.02 | 0.02 | 0.01 | 0.00 | 1 | 0.00 | 1 | ||||||||||||||||
Net realized gains on investments | 0.001 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 0.001 | 0.02 | 0.02 | 0.01 | 0.00 | 1 | 0.00 | 1 | ||||||||||||||||
Distributions to shareholders from | ||||||||||||||||||||||||
Net investment income | (0.00)1 | (0.02 | ) | (0.02 | ) | (0.01 | ) | (0.00 | )1 | (0.00 | )1 | |||||||||||||
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Total return2 | 0.27 | % | 1.76 | % | 1.61 | % | 0.64 | % | 0.05 | % | 0.01 | % | ||||||||||||
Ratios to average net assets (annualized) | ||||||||||||||||||||||||
Gross expenses | 0.68 | % | 0.70 | % | 0.76 | % | 0.85 | % | 0.83 | % | 0.82 | % | ||||||||||||
Net expenses | 0.55 | % | 0.60 | % | 0.62 | % | 0.65 | % | 0.55 | % | 0.29 | % | ||||||||||||
Net investment income | 0.52 | % | 1.74 | % | 1.60 | % | 0.63 | % | 0.03 | % | 0.01 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (000s omitted) | $469,050 | $475,180 | $474,040 | $462,416 | $539,989 | $1,205,785 |
1 | Amount is less than $0.005. |
2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Retail Money Market Funds | 21
Table of Contents
Financial highlights
(For a share outstanding throughout each period)
Six months ended July 31, 2020 (unaudited) | Year ended January 31 | |||||||||||||||||||||||
CLASS C | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Net investment income | 0.001 | 0.01 | 0.01 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | |||||||||||||||
Net realized gains on investments | 0.001 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 0.001 | 0.01 | 0.01 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | |||||||||||||||
Distributions to shareholders from | ||||||||||||||||||||||||
Net investment income | (0.00)1 | (0.01 | ) | (0.01 | ) | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | |||||||||||||
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Total return2 | 0.07 | % | 1.00 | % | 0.84 | % | 0.04 | % | 0.01 | % | 0.01 | % | ||||||||||||
Ratios to average net assets (annualized) | ||||||||||||||||||||||||
Gross expenses | 1.43 | % | 1.45 | % | 1.51 | % | 1.60 | % | 1.58 | % | 1.57 | % | ||||||||||||
Net expenses | 0.88 | % | 1.35 | % | 1.37 | % | 1.23 | % | 0.60 | % | 0.29 | % | ||||||||||||
Net investment income | 0.12 | % | 1.03 | % | 0.87 | % | 0.03 | % | 0.01 | % | 0.01 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (000s omitted) | $4,875 | $3,153 | $8,229 | $7,763 | $13,293 | $16,617 |
1 | Amount is less than $0.005. |
2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
22 | Retail Money Market Funds
Table of Contents
Financial highlights
(For a share outstanding throughout each period)
Six months ended July 31, 2020 (unaudited) | Year ended January 31 | |||||||||||||||||||
PREMIER CLASS | 2020 | 2019 | 2018 | 20171 | ||||||||||||||||
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | |||||||||||||||
Net investment income | 0.01 | 0.02 | 0.02 | 0.01 | 0.00 | 2 | ||||||||||||||
Net realized gains on investments | 0.00 | 2 | 0.00 | 2 | 0.00 | 2 | 0.00 | 2 | 0.00 | 2 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total from investment operations | 0.01 | 0.02 | 0.02 | 0.01 | 0.00 | 2 | ||||||||||||||
Distributions to shareholders from | ||||||||||||||||||||
Net investment income | (0.01 | ) | (0.02 | ) | (0.02 | ) | (0.01 | ) | (0.00 | )2 | ||||||||||
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | |||||||||||||||
Total return3 | 0.48 | % | 2.20 | % | 2.03 | % | 1.09 | % | 0.36 | % | ||||||||||
Ratios to average net assets (annualized) | ||||||||||||||||||||
Gross expenses | 0.29 | % | 0.30 | % | 0.33 | % | 0.45 | % | 0.45 | % | ||||||||||
Net expenses | 0.13 | % | 0.15 | % | 0.20 | % | 0.20 | % | 0.20 | % | ||||||||||
Net investment income | 0.78 | % | 1.99 | % | 2.26 | % | 1.08 | % | 0.43 | % | ||||||||||
Supplemental data | ||||||||||||||||||||
Net assets, end of period (000s omitted) | $4,607,250 | $2,183,582 | $295,962 | $101 | $100 |
1 | For the period from March 31, 2016 (commencement of class operations) to January 31, 2017 |
2 | Amount is less than $0.005. |
3 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Retail Money Market Funds | 23
Table of Contents
Financial highlights
(For a share outstanding throughout each period)
Six months ended July 31, 2020 (unaudited) | Year ended January 31 | |||||||||||||||||||||||
SERVICE CLASS | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Net investment income | 0.001 | 0.02 | 0.02 | 0.01 | 0.00 | 1 | 0.00 | 1 | ||||||||||||||||
Net realized gains on investments | 0.001 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 0.001 | 0.02 | 0.02 | 0.01 | 0.00 | 1 | 0.00 | 1 | ||||||||||||||||
Distributions to shareholders from | ||||||||||||||||||||||||
Net investment income | (0.00)1 | (0.02 | ) | (0.02 | ) | (0.01 | ) | (0.00 | )1 | (0.00 | )1 | |||||||||||||
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Total return2 | 0.31 | % | 1.86 | % | 1.72 | % | 0.79 | % | 0.11 | % | 0.01 | % | ||||||||||||
Ratios to average net assets (annualized) | ||||||||||||||||||||||||
Gross expenses | 0.58 | % | 0.60 | % | 0.66 | % | 0.74 | % | 0.72 | % | 0.72 | % | ||||||||||||
Net expenses | 0.47 | % | 0.50 | % | 0.50 | % | 0.50 | % | 0.50 | % | 0.28 | % | ||||||||||||
Net investment income | 0.60 | % | 1.84 | % | 1.71 | % | 0.74 | % | 0.05 | % | 0.01 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (000s omitted) | $12,040 | $12,038 | $11,884 | $11,910 | $21,602 | $274,245 |
1 | Amount is less than $0.005. |
2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
24 | Retail Money Market Funds
Table of Contents
Notes to financial statements (unaudited)
1. ORGANIZATION
Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo Money Market Fund (the “Fund”) which is a diversified series of the Trust.
Consistent with Rule 2a-7, the Board of Trustees of the Fund is permitted to impose a liquidity fee on redemptions from the Fund or a redemption gate (i.e., a suspension of the right to redeem) in the event that the Fund’s liquidity falls below required minimums because of market conditions or other factors. If the Fund’s weekly liquid assets (as defined in Rule 2a-7(34)) fall below 30% of the Fund’s total assets, the Board of Trustees is permitted, but not required, to: (i) impose a liquidity fee of no more than 2% of the amount redeemed; and/or (ii) impose a redemption gate. If the Fund’s weekly liquid assets fall below 10% of the Fund’s total assets, the Fund must impose, generally as of the beginning of the next business day, a liquidity fee of 1% of the amount redeemed unless the Board of Trustees determines that such a fee is not in the best interest of the Fund or determines that a lower or higher fee (subject to the 2% limit) is in the best interest of the Fund. Liquidity fees reduce the amount a shareholder receives upon redemption of its shares. The Fund retains any liquidity fees for the benefit of remaining shareholders. The Board of Trustees did not impose any liquidity fees and/or redemption gates during the six months ended July 31, 2020.
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Securities valuation
As permitted under Rule 2a-7 of the 1940 Act, portfolio securities are valued at amortized cost, which approximates fair value. The amortized cost method involves valuing a security at its cost, plus accretion of discount or minus amortization of premium over the period until maturity.
Investments which are not valued using the method discussed above are valued at their fair value, as determined in good faith by the Board of Trustees. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Wells Fargo Asset Management Pricing Committee at Wells Fargo Funds Management, LLC (“Funds Management”). The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Wells Fargo Asset Management Pricing Committee which may include items for ratification.
Repurchase agreements
The Fund may invest in repurchase agreements and may participate in pooled repurchase agreement transactions with other funds advised by Funds Management. Repurchase agreements are agreements where the seller of a security to the Fund agrees to repurchase that security from the Fund at a mutually agreed upon time and price. The repurchase agreements must be fully collateralized based on values that are marked-to-market daily. The collateral may be held by an agent bank under a tri-party agreement. It is the custodian’s responsibility to value collateral daily and to take action to obtain additional collateral as necessary to maintain a market value equal to or greater than the resale price. The repurchase agreements are collateralized by securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities. There could be potential loss to the Fund in the event that the Fund is delayed or prevented from exercising its rights to dispose of the collateral, including the risk of a possible decline in the value of the underlying obligations during the period in which the Fund seeks to assert its rights.
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.
Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has been determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.
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Notes to financial statements (unaudited)
Distributions to shareholders
Distributions to shareholders from net investment income are declared daily and paid monthly. Distributions from net realized gains, if any, are recorded on the ex-dividend date and paid at least annually. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior to the Fund’s fiscal year end may be categorized as a tax return of capital at year end.
Federal and other taxes
The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.
The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.
As of July 31, 2020, the cost of investments for federal income tax purposes is substantially the same as for financial reporting purposes.
Class allocations
The separate classes of shares offered by the Fund differ principally in applicable sales charges, distribution, shareholder servicing, and administration fees. Class specific expenses are charged directly to that share class. Investment income, common fund-level expenses, and realized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.
3. FAIR VALUATION MEASUREMENTS
Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:
∎ | Level 1 – quoted prices in active markets for identical securities |
∎ | Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
∎ | Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
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 is a summary of the inputs used in valuing the Fund’s assets and liabilities as of July 31, 2020:
Quoted prices (Level 1) | Other significant observable inputs (Level 2) | Significant (Level 3) | Total | |||||||||||||
Assets | ||||||||||||||||
Investments in: | ||||||||||||||||
Certificate of deposit | $ | 0 | $ | 752,016,640 | $ | 0 | $ | 752,016,640 | ||||||||
Commercial paper | 0 | 2,001,998,858 | 0 | 2,001,998,858 | ||||||||||||
Municipal obligations | 0 | 1,172,177,253 | 0 | 1,172,177,253 | ||||||||||||
Closed end municipal bond fund obligations | 0 | 30,000,000 | 0 | 30,000,000 | ||||||||||||
Other instruments | 0 | 18,380,000 | 0 | 18,380,000 | ||||||||||||
Other notes | 0 | 17,000,000 | 0 | 17,000,000 | ||||||||||||
Repurchase agreements | 0 | 411,025,000 | 0 | 411,025,000 | ||||||||||||
Treasury debt | 0 | 661,742,876 | 0 | 661,742,876 | ||||||||||||
Total assets | $ | 0 | $ | 5,064,340,627 | $ | 0 | $ | 5,064,340,627 |
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Notes to financial statements (unaudited)
Additional sector, industry or geographic detail is included in the Portfolio of Investments.
For the six months ended July 31, 2020, the Fund did not have any transfers into/out of Level 3.
4. TRANSACTIONS WITH AFFILIATES
Management fee
Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadvisers and providing fund-level administrative services in connection with the Fund’s operations. As compensation for its services under the investment management agreement, Funds Management is entitled to receive a management fee at the following annual rate based on the Fund’s average daily net assets:
Average daily net assets | Management fee | |||
First $5 billion | 0.20 | % | ||
Next $5 billion | 0.19 | |||
Over $10 billion | 0.18 |
For the six months ended July 31, 2020, the management fee was equivalent to an annual rate of 0.20% of the Fund’s average daily net assets.
Funds Management has retained the services of certain subadvisers to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. Wells Capital Management Incorporated, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is a subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.05% and declining to 0.01% as the average daily net assets of the Fund increase. Wells Capital Management Singapore, a separately identifiable department of Wells Fargo Bank, N.A, an affiliate of Funds Management and wholly owned subsidiary of Wells Fargo, is also a subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.0025% and declining to 0.0005% as the average daily net assets of the Fund increase.
Administration fees
Under a class-level administration agreement, Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Funds Management receives an annual fee which is calculated based on the average daily net assets of each class as follows:
Class-level administration fee | ||||
Class A, Class C | 0.22 | % | ||
Premier Class | 0.08 | |||
Service Class | 0.12 |
Waivers and/or expense reimbursements
Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. When each class of the Fund has exceeded its expense cap, Funds Management has waived fees and/or reimbursed expenses from fund-level expenses on a proportionate basis and then from class specific expenses. When only certain classes exceed their expense caps, waivers and/or reimbursements are applied against class specific expenses before fund-level expenses. Funds Management has committed through May 31, 2021 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.60% for Class A shares, 1.35% for Class C shares, 0.20% for Premier Class shares and 0.50% for Service Class shares. 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.
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Notes to financial statements (unaudited)
During the six months ended July 31, 2020, Funds Management also voluntarily waived class-level expenses as follows:
% of average daily net assets (annualized) | ||
Class A | 0.05% | |
Class C | 0.47 | |
Service Class | 0.03 |
Distribution fee
The Trust has adopted a distribution plan for Class C shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class C shares and paid to Wells Fargo Funds Distributor, LLC (“Funds Distributor”), the principal underwriter, at an annual rate of 0.75% of the average daily net assets of Class C shares.
In addition, Funds Distributor is entitled to receive the contingent deferred sales charge on the redemption of certain Class C shares. No contingent deferred sales charges were incurred by Class C shares for the six months ended July 31, 2020.
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class C, and Service Class of the Fund are charged a fee at an annual rate of 0.25% of the respective average daily net assets of each class. A portion of these total shareholder servicing fees were paid to affiliates of Wells Fargo.
Interfund transactions
The Fund may purchase or sell portfolio investment securities to certain other Wells Fargo affiliates pursuant to Rule 17a-7 under the 1940 Act and under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which do not incur broker commissions, are effected at current market prices.
5. INDEMNIFICATION
Under the Fund’s organizational documents, the officers and Trustees have been granted certain indemnification rights against certain liabilities that may arise out of performance of their duties to the Fund. The Fund has entered into a separate agreement with each Trustee that converts indemnification rights currently existing under the Fund’s organizational documents into contractual rights that cannot be changed in the future without the consent of the Trustee. Additionally, in the normal course of business, the Fund may enter into contracts with service providers that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated.
6. NEW ACCOUNTING PRONOUNCEMENT
In August 2018, FASB issued Accounting Standards Update (“ASU”) No. 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 updates the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurements. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Management has adopted this guidance which did not have a material impact on the financial statements.
7. CORONAVIRUS (COVID-19) PANDEMIC
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 are 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 impacts 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.
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PROXY VOTING INFORMATION
A description of the policies and procedures used to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at wfam.com, or visiting the SEC website at sec.gov. Information regarding how the proxies related to portfolio securities were voted during the most recent 12-month period ended June 30 is available on the website at wfam.com or by visiting the SEC website at sec.gov.
PORTFOLIO HOLDINGS INFORMATION
The Fund files its complete schedule of portfolio holdings with the SEC each month on Form N-MFP. Shareholders may view the filed Form N-MFP by visiting the SEC website at sec.gov. The Fund’s portfolio holdings information is also available on our website at wfam.com.
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Other information (unaudited)
BOARD OF TRUSTEES AND OFFICERS
Each of the Trustees and Officers1 listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 147 mutual funds comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information2. The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.
Independent Trustees
Name and year of birth | Position held and length of service* | Principal occupations during past five years or longer | Current other public company or investment company directorships | |||
William R. Ebsworth (Born 1957) | Trustee, since 2015 | Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief investment officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong, and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he led a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Endowment (non-profit organization). Mr. Ebsworth is a CFA® charterholder. | N/A | |||
Jane A. Freeman (Born 1953) | Trustee, since 2015; Chair Liaison, since 2018 | Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is also an inactive Chartered Financial Analyst. | N/A | |||
Isaiah Harris, Jr. (Born 1952) | Trustee, since 2009; Audit Committee Chairman, since 2019 | Retired. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (private school). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status). | CIGNA Corporation | |||
Judith M. Johnson (Born 1949) | Trustee, since 2008; Audit Committee Chairman, from 2009 to 2018 | Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant. | N/A |
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Other information (unaudited)
Name and year of birth | Position held and length of service* | Principal occupations during past five years or longer | Current other public company or investment company directorships | |||
David F. Larcker (Born 1950) | Trustee, since 2009 | James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005. | N/A | |||
Olivia S. Mitchell (Born 1953) | Trustee, since 2006; Nominating and Governance Committee Chair, since 2018 | International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993. | N/A | |||
Timothy J. Penny (Born 1951) | Trustee, since 1996; Chairman, since 2018 | President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007. | N/A | |||
James G. Polisson (Born 1959) | Trustee, since 2018 | Retired. Chief Marketing Officer, Source (ETF) UK Services, Ltd, from 2015 to 2017. From 2012 to 2015, Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing company. Chief Executive Officer and Managing Director at Russell Investments, Global Exchange Traded Funds from 2010 to 2012. Managing Director of Barclays Global Investors from 1998 to 2010 and Global Chief Marketing Officer for iShares and Barclays Global Investors from 2000 to 2010. Trustee of the San Francisco Mechanics’ Institute, a non-profit organization, from 2013 to 2015. Board member of the Russell Exchange Traded Fund Trust from 2011 to 2012. Director of Barclays Global Investors Holdings Deutschland GmbH from 2006 to 2009. Mr. Polisson is an attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations. | N/A | |||
Pamela Wheelock (Born 1959) | Trustee, since January 2020; previously Trustee from January 2018 to July 2019 | Board member of the Destination Medical Center Economic Development Agency, Rochester, Minnesota since 2019 and Interim President of the McKnight Foundation since 2020. Acting Commissioner, Minnesota Department of Human Services, July 2019 through September 2019. Human Services Manager (part-time), Minnesota Department of Human Services, October 2019 through December 2019. Chief Operating Officer, Twin Cities Habitat for Humanity from 2017 to 2019. Vice President of University Services, University of Minnesota from 2012 to 2016. Prior thereto, on the Board of Directors, Governance Committee and Finance Committee for the Minnesota Philanthropy Partners (Saint Paul Foundation) from 2012 to 2018, Interim Chief Executive Officer of Blue Cross Blue Shield of Minnesota from 2011 to 2012, Chairman of the Board from 2009 to 2012 and Board Director from 2003 to 2015. Vice President, Leadership and Community Engagement, Bush Foundation, Saint Paul, Minnesota (a private foundation) from 2009 to 2011. Executive Vice President and Chief Financial Officer, Minnesota Sports and Entertainment from 2004 to 2009 and Senior Vice President from 2002 to 2004. Executive Vice President of the Minnesota Wild Foundation from 2004 to 2008. Commissioner of Finance, State of Minnesota, from 1999 to 2002. Currently Board Chair of the Minnesota Wild Foundation since 2010. | N/A |
* | Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable. |
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Other information (unaudited)
Officers
Name and year of birth | Position held and length of service | Principal occupations during past five years or longer | ||
Andrew Owen (Born 1960) | President, since 2017 | Executive Vice President of Wells Fargo & Company and Head of Affiliated Managers, Wells Fargo Asset Management, since 2014. In addition, Mr. Owen is currently President, Chief Executive Officer and Director of Wells Fargo Funds Management, LLC since 2017. Prior thereto, Executive Vice President responsible for marketing, investments and product development for Wells Fargo Funds Management, LLC, from 2009 to 2014. | ||
Nancy Wiser1 (Born 1967) | Treasurer, since 2012 | Executive Vice President of Wells Fargo Funds Management, LLC since 2011. Chief Operating Officer and Chief Compliance Officer at LightBox Capital Management LLC, from 2008 to 2011. | ||
Michelle Rhee (Born 1966) | Chief Legal Officer, since 2019 | Secretary of Wells Fargo Funds Management, LLC, Chief Legal Counsel of Wells Fargo Asset Management and Assistant General Counsel of Wells Fargo Bank, N.A. since 2018. Associate General Counsel and Managing Director of Bank of America Corporation from 2004 to 2018. | ||
Catherine Kennedy (Born 1969) | Secretary, since 2019 | Vice President of Wells Fargo Funds Management, LLC and Senior Counsel of the Wells Fargo Legal Department since 2010. Vice President and Senior Counsel of Evergreen Investment Management Company, LLC from 1998 to 2010. | ||
Michael H. Whitaker (Born 1967) | Chief Compliance Officer, since 2016 | Chief Compliance Officer of Wells Fargo Asset Management since 2016. Senior Vice President and Chief Compliance Officer for Fidelity Investments from 2007 to 2016. | ||
David Berardi (Born 1975) | Assistant Treasurer, since 2009 | Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010. | ||
Jeremy DePalma1 (Born 1974) | Assistant Treasurer, since 2009 | Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010 and head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010. |
1 | Nancy Wiser acts as Treasurer of 65 funds in the Fund Complex. Jeremy DePalma acts as the Treasurer of 82 funds and Assistant Treasurer of 65 funds in the Fund Complex. |
2 | The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at wfam.com. |
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Other information (unaudited)
BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:
Wells Fargo Money Market Fund
Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at a Board meeting held on May 26, 2020 and May 28, 2020 (together, the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo Money Market Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); (ii) an investment sub-advisory agreement (the “WellsCap Sub-Advisory Agreement”) with Wells Capital Management Incorporated (“WellsCap”); and (iii) an investment sub-advisory agreement (the “WellsCap Singapore Sub-Advisory Agreement,” and together with the WellsCap Sub-Advisory Agreement, the “Sub-Advisory Agreements”) with Wells Capital Management Singapore (together with WellsCap, each a “Sub-Adviser” and collectively, the “Sub-Advisers”), each an affiliate of Funds Management. The Management Agreement and the Sub-Advisory Agreements are collectively referred to as the “Advisory Agreements.”
At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Advisers and the approval of the Advisory Agreements. Prior to the Meeting, including at a Board meeting held in April 2020, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing investment performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.
In providing information to the Board, Funds Management and the Sub-Advisers were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2020. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Advisers about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and investment performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.
After its deliberations, the Board unanimously approved the continuation of the Advisory Agreements for a one-year term and determined that the compensation payable to Funds Management and the Sub-Advisers under each of the Advisory Agreements was reasonable. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.
Nature, extent and quality of services
The Board received and considered various information regarding the nature, extent and quality of services provided to the Fund by Funds Management and the Sub-Advisers under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Wells Fargo Asset Management (“WFAM”), of which Funds Management and the Sub-Advisers are a part, and a summary of investments made in the business of WFAM. The Board also received a description of Funds Management’s and the Sub-Advisers’ business continuity plans and of their approaches to data privacy and cybersecurity, and related testing. The Board also received and reviewed information about Funds Management’s role as administrator of the Fund’s liquidity risk management program, Funds Management’s approach to risk management, and Funds Management’s intermediary and vendor oversight program.
The Board also considered the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund. The Board evaluated the ability of Funds Management and the Sub-Advisers to attract and retain qualified investment professionals, including research, advisory and
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Other information (unaudited)
supervisory personnel. The Board further considered the compliance programs and compliance records of Funds Management and the Sub-Advisers. In addition, the Board took into account the full range of services provided to the Fund by Funds Management and its affiliates.
Fund investment performance and expenses
The Board considered the investment performance results for the Fund over various time periods ended December 31, 2019. The Board also considered more current results for various time periods ended March 31, 2020. The Board considered these results in comparison to the investment performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the investment performance of the Fund (Class A) was in range of the average investment performance of the Universe for the one-, three-, five- and ten-year periods ended December 31, 2019. The Board also noted that the investment performance of the Fund (Class A) was higher than or in range of the average investment performance of the Universe for all periods ended March 31, 2020. The Board also noted that the investment performance of the Fund was in range of its benchmark, the Lipper Money Market Fund Index, for all periods ended December 31, 2019.
The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were lower than, equal to or in range of the median net operating expense ratios of the expense Groups for all share classes.
The Board took into account the Fund’s investment performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.
Investment management and sub-advisory fee rates
The Board reviewed and considered the contractual fee rates payable by the Fund to Funds Management under the Management Agreement, as well as the contractual fee rates payable by the Fund to Funds Management for class-level administrative services under a Class-Level Administration Agreement, which include, among other things, class-level transfer agency and sub-transfer agency costs (collectively, the “Management Rates”). The Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Funds Management to the Sub-Advisers for investment sub-advisory services.
Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were lower than or in range of the sum of these average rates for the Fund’s expense Groups for all share classes.
The Board also received and considered information about the portion of the total management fee that was retained by Funds Management after payment of the fee to the Sub-Advisers for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Funds Management and not delegated to or assumed by either of the Sub-Advisers, and about Funds Management’s on-going oversight services. Given the affiliation between Funds Management and the Sub-Advisers, the Board ascribed limited relevance to the allocation of fees between them.
The Board also received and considered information about the nature and extent of services offered and fee rates charged by Funds Management and the Sub-Advisers to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing proprietary mutual funds compared with those associated with managing assets of other types of clients, including third-party sub-advised fund clients and non-mutual fund clients such as institutional separate accounts.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Funds Management under the Management Agreement and to the Sub-Advisers under the Sub-Advisory Agreements was reasonable.
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Other information (unaudited)
Profitability
The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of both WFAM and Wells Fargo & Co. (“Wells Fargo”) from providing services to the fund family as a whole. The Board noted that the Sub-Advisers’ profitability information with respect to providing services to the Fund and other funds in the family was subsumed in the WFAM and Wells Fargo profitability analysis.
Funds Management reported on the methodologies and estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size, type and age of fund.
Based on its review, the Board did not deem the profits reported by Funds Management, WFAM or Wells Fargo from services provided to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.
Economies of scale
The Board received and considered information about the potential for Funds Management to experience economies of scale in the provision of management services to the Fund, the difficulties of calculating economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with shareholders. The Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size, and the size of the Fund in relation to such breakpoints. The Board considered that in addition to management fee breakpoints, Funds Management shares potential economies of scale from its management business in a variety of ways, including through fee waiver and expense reimbursement arrangements, services that benefit shareholders, competitive management fee rates set at the outset without regard to breakpoints, and investments in the business intended to enhance services available to shareholders.
The Board concluded that Funds Management’s arrangements with respect to the Fund, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.
Other benefits to Funds Management and the Sub-Advisers
The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Funds Management and its affiliates, including the Sub-Advisers, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Funds Management’s and the Sub-Advisers’ business as a result of their relationships with the Fund. The Board noted that various affiliates of Funds Management may receive distribution-related fees, shareholder servicing payments and sub-transfer agency fees in respect of shares sold or held through them and services provided.
The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Advisers, fees earned by Funds Management and the Sub-Advisers from managing a private investment vehicle for the fund family’s securities lending collateral, and commissions earned by an affiliated broker from portfolio transactions.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Funds Management and its affiliates, including the Sub-Advisers, were unreasonable.
Conclusion
At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory Agreements for a one-year term and determined that the compensation payable to Funds Management and the Sub-Advisers under each of the Advisory Agreements was reasonable.
Retail Money Market Funds | 35
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Other information (unaudited)
LIQUIDITY RISK MANAGEMENT PROGRAM
In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), Wells Fargo Funds Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) on behalf of each of its series, including the Fund, which is reasonably designed to assess and manage the Fund’s liquidity risk. “Liquidity risk” is defined as the risk that the Fund is unable to meet redemption requests without significantly diluting remaining investors’ interests in the Fund. The Trust’s Board of Trustees (the “Board”) previously approved the designation of Wells Fargo Funds Management, LLC (“Funds Management”), the Fund’s investment manager, as the administrator of the Program, and Funds Management has established a Liquidity Risk Management Council composed of personnel from multiple departments within Funds Management and its affiliates to assist Funds Management in the implementation and on-going administration of the Program.
The Program is comprised of various components designed to support the assessment and/or management of liquidity risk, including: (1) the periodic assessment (no less frequently than annually) of certain factors that influence the Fund’s liquidity risk; (2) the periodic classification (no less frequently than monthly) of the Fund’s investments into one of four liquidity categories that reflect an estimate of their liquidity under current market conditions; (3) a 15% limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); (4) to the extent the Fund does not invest primarily in “highly liquid investments” (as defined under the Liquidity Rule), the determination of a minimum percentage of the Fund’s assets that generally will be invested in highly liquid investments (an “HLIM”); (5) if the Fund has established an HLIM, the periodic review (no less frequently than annually) of the HLIM and the adoption of policies and procedures for responding to a shortfall of the Fund’s “highly liquid investments” below its HLIM; and (6) periodic reporting to the Board.
At a meeting of the Board held on May 26 and 28, 2020, the Board received a written report (the “Report”) from Funds Management that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation. The Report covered the initial period from December 1, 2018 through December 31, 2019 (the “Reporting Period”). No significant liquidity events impacting the Fund were noted in the Report. There were no material changes to the Program during the Reporting Period. The Report concluded that the Program is operating effectively to assess and manage the Fund’s liquidity risk, and that the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund’s liquidity developments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other risks to which an investment in the Fund may be subject.
36 | Retail Money Market Funds
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For more information
More information about Wells Fargo Funds is available free upon request. To obtain literature, please write, visit the Fund’s website, or call:
Wells Fargo Funds
P.O. Box 219967
Kansas City, MO 64121-9967
Website: wfam.com
Individual investors: 1-800-222-8222
Retail investment professionals: 1-888-877-9275
Institutional investment professionals: 1-866-765-0778
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-260-5969 or visit the Fund’s website at wfam.com. Read the prospectus carefully before you invest or send money.
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).
This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind—including a recommendation for any specific investment, strategy, or plan.
INVESTMENT PRODUCTS: NOT FDIC INSURED ◾ NO BANK GUARANTEE ◾ MAY LOSE VALUE
© 2020 Wells Fargo & Company. All rights reserved
PAR-0820-01044 09-20
SA306/SAR306 07-20
Table of Contents
Semi-Annual Report
July 31, 2020
Institutional Money Market Funds
∎ | Wells Fargo Municipal Cash Management Money Market Fund |
Beginning on January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, paper copies of the Wells Fargo Funds’ annual and semi-annual shareholder reports issued after this date will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Funds’ website, and you will be notified by mail each time a report is posted and provided with a website address to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling 1-800-222-8222 or by enrolling at wellsfargo.com/advantagedelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports; if you invest directly with the Fund, you can call 1-800-222-8222. Your election to receive reports in paper will apply to all Wells Fargo Funds held in your account with your financial intermediary or, if you are a direct investor, to all Wells Fargo Funds that you hold.
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Reduce clutter. Save trees. |
Sign up for electronic delivery of prospectuses and shareholder reports at wellsfargo.com/ |
The views expressed and any forward-looking statements are as of July 31, 2020, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Asset Management. Discussions of individual securities, or the markets generally, or any Wells Fargo Fund 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 and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.
INVESTMENT PRODUCTS: NOT FDIC INSURED ◾ NO BANK GUARANTEE ◾ MAY LOSE VALUE
Institutional Money Market Funds | 1
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Letter to shareholders (unaudited)
Andrew Owen
President
Wells Fargo Funds
Dear Shareholder:
We are pleased to offer you this semi-annual report for the Wells Fargo Municipal Cash Management Money Market Fund for the six-month period that ended July 31, 2020. Global stock markets tumbled in February and March as governments took unprecedented measures to stop the spread of the coronavirus at the expense of short-term economic output. However, most markets rebounded from April on to offset much of the losses as central banks attempted to bolster capital markets and confidence. Fixed-income markets generally performed well, with the exception of high-yield bonds, as U.S. bonds overall achieved modest gains. U.S. and emerging market equities outperformed international developed market equities over the six-month period.
For the period, U.S. stocks, based on the S&P 500 Index,1 returned 2.42% and international stocks, as measured by the MSCI ACWI ex USA Index (Net),2 fell 4.47%. The MSCI EM Index (Net)3 gained 3.08%. For bond investors, the Bloomberg Barclays U.S. Aggregate Bond Index4 added 5.69%, the Bloomberg Barclays Global Aggregate ex-USD Index5 returned 4.29%, the Bloomberg Barclays Municipal Bond Index6 returned 1.96%, and the ICE BofA U.S. High Yield Index7 lost 0.23%.
Concerns about the coronavirus took over the market.
In February, the coronavirus became the major market focus. Fears of the virus’s impact on global growth led to expectations of increased global central bank monetary policy support. That led the 10-year U.S. Treasury yield to fall to an all-time low of 1.1% by the end of the month. Although equity markets initially shrugged off concerns about the outbreak, focusing instead on strong fourth-quarter earnings and improving business confidence in January, market sentiment turned sharply lower toward month-end. Oil prices tumbled as Russia and the Organization of the Petroleum Exporting Countries compounded a major decline in oil demand with a brutal price war, causing the price of West Texas Intermediate crude oil to plummet.
1 | The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock’s weight in the index proportionate to its market value. You cannot invest directly in an index. |
2 | The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the United States. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. You cannot invest directly in an index. |
3 | The MSCI Emerging Markets (EM) Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure equity market performance of emerging markets. You cannot invest directly in an index. |
4 | The Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. You cannot invest directly in an index. |
5 | The Bloomberg Barclays Global Aggregate ex-USD Index is an unmanaged index that provides a broad-based measure of the global investment-grade fixed-income markets excluding the U.S.-dollar-denominated debt market. You cannot invest directly in an index. |
6 | 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. |
7 | The ICE BofA U.S. High Yield Index is a market-capitalization-weighted index of domestic and Yankee high-yield bonds. The index tracks the performance of high-yield securities traded in the U.S. bond market. You cannot invest directly in an index. Copyright 2020. ICE Data Indices, LLC. All rights reserved. |
2 | Institutional Money Market Funds
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Letter to shareholders (unaudited)
The global spread of the coronavirus led many countries to clamp down on social and business-related activity in order to contain the virus from causing even greater devastation and overwhelming the health care system. This abrupt stoppage of economic activity led to the sharp deceleration of global output, sending economies into a deep contraction. Central bank responses were swift, as they slashed interest rates and expanded quantitative easing programs to restore liquidity and confidence to the markets. In the U.S., the Federal Reserve launched several lending programs, funding investment-grade bonds, money market mutual funds, and commercial paper while purchasing Treasuries, mortgage-backed securities, and overnight repurchase agreements. Meanwhile, stock markets tumbled quickly into a bear market, ending the longest bull stock market in U.S. history.
Markets rebounded strongly in April, fueled by unprecedented government and central bank stimulus measures. The U.S. economy contracted by an annualized 5.0% pace in the first quarter, with 30 million new unemployment insurance claims in six weeks. In the eurozone, first-quarter real gross domestic product (GDP) shrank 3.8%, with the composite April Flash Purchasing Managers’ Index, a monthly survey of purchasing managers, falling to an all-time low of 13.5. The European Central Bank expanded its quantitative easing to include the purchase of additional government bonds of countries with the greatest virus-related need, including Italy and Spain. China’s first-quarter GDP fell by 6.8% year over year. However, retail sales, production, and investment showed signs of recovery. Extreme oil-price volatility continued as global supply far exceeded demand.
In May, the equity market rebound continued, with widespread strong monthly gains. Investors regained confidence on reports of early signs of success in human trials of a coronavirus vaccine. Growth stocks continued to outperform value stocks while returns on global government bonds were generally flat. In the U.S., a gap grew between the stock market rebound and devastating economic data points, including an April unemployment rate of 14.7%, the highest level since World War II. Purchasing managers’ indices continued to reflect weakening activity in May in both the manufacturing and services sectors. U.S. corporate earnings reports indicated a 14% year-over-year contraction in earnings from the first quarter of 2019. However, high demand for technology, driven by remote activity, helped maintain robust information technology sector earnings, which helped drive powerful well-known technology stocks higher.
Financial markets posted widely positive returns in June despite ongoing economic weakness and high levels of uncertainty on the containment of the coronavirus and the timing of an effective vaccine. There were hopeful signs as economies reopened, with both U.S. and U.K. retail sales rebounding substantially in May. However, year over year, sales remained depressed. Vitally important to market sentiment was the ongoing commitment by central banks globally to do all they could to provide economic support through liquidity and low borrowing costs. U.S. economic activity was aided by one-time $1,200 stimulus checks and $600 bonus weekly unemployment benefits due to expire at the end of July. However, unemployment remained in the double digits, easing somewhat from 14.7% in April to 11.1% in June. During June, numerous states reported alarming increases in coronavirus cases. China’s economic recovery picked up momentum in June, though it remained far from a full recovery.
July was a broadly positive month for both global equities and fixed income. However, economic data and a resurgence of coronavirus cases pointed to the vulnerability of the global economy and the ongoing imperative to regain control of the pandemic. Second-quarter GDP shrank by 9.5% and 12.1% in the U.S. and eurozone, respectively, from the previous quarter. In contrast, China reported a 3.2% year-over-year expansion in its second-quarter GDP. U.S. unemployment remained historically high despite adding 1.8 million jobs in July, with a double-digit jobless rate persisting. However, manufacturing activity grew in both the U.S. and eurozone. In Asia, while China’s manufacturing sector
“The global spread of the coronavirus led many countries to clamp down on social and business-related activity in order to contain the virus from causing even greater devastation and overwhelming the health care system.”
“Financial markets posted widely positive returns in June despite ongoing economic weakness and high levels of uncertainty on the containment of the coronavirus and the timing of an effective vaccine.”
Institutional Money Market Funds | 3
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Letter to shareholders (unaudited)
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For further information about your Fund, contact your investment professional, visit our website at wfam.com, or call us directly at 1-800-222-8222. |
continued to expand, activity in Japan and South Korea contracted. In July, a rising concern was the rapid and broad reemergence of coronavirus infections. Despite the ongoing promise of positive early-stage vaccine trial results, economic activity could be held back by the continued spread of the virus and the end of a widely received $600-a-week bonus unemployment benefit in late July.
Don’t let short-term uncertainty derail long-term investment goals.
Periods of investment uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Funds offers more than 100 mutual funds spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.
Thank you for choosing to invest with Wells Fargo Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.
Sincerely,
Andrew Owen
President
Wells Fargo Funds
4 | Institutional Money Market Funds
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Performance highlights (unaudited)
Investment objective
The Fund seeks current income exempt from regular federal income tax, while preserving capital and liquidity.
Manager
Wells Fargo Funds Management, LLC
Subadviser
Wells Capital Management Incorporated
Portfolio managers
James Randazzo
Jeffrey L. Weaver, CFA®‡
Average annual total returns (%) as of July 31, 2020
Expense ratios1 (%) | ||||||||||||||||||||||
Inception date | 1 year | 5 year | 10 year | Gross | Net2 | |||||||||||||||||
Administrator Class (WUCXX) | 7-9-2010 | 0.88 | 0.79 | 0.41 | 0.43 | 0.30 | ||||||||||||||||
Institutional Class (EMMXX) | 11-20-1996 | 0.95 | 0.88 | 0.46 | 0.31 | 0.20 | ||||||||||||||||
Service Class (EISXX) | 11-25-1996 | 0.75 | 0.67 | 0.35 | 0.60 | 0.45 |
Yield summary (%) as of July 31, 20202
Administrator Class | Institutional Class | Service Class | ||||||||
7-day current yield | 0.01 | 0.11 | 0.01 | |||||||
7-day compound yield | 0.01 | 0.11 | 0.01 | |||||||
30-day simple yield | 0.02 | 0.09 | 0.01 | |||||||
30-day compound yield | 0.02 | 0.09 | 0.01 |
Figures quoted represent past performance, which is no guarantee of future results, and do not reflect taxes that a shareholder may pay on an investment in a fund. Investment returns will fluctuate. The Fund’s yield figures more closely reflect the current earnings of the Fund than the total return figures. Current performance may be lower or higher than the performance data quoted, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s website, wfam.com.
Money market funds are sold without a front-end sales charge or contingent deferred sales charge. Other fees and expenses apply to an investment in the Fund and are described in the Fund’s current prospectus.
For floating NAV money market funds: You could lose money by investing in the Fund. Because the share price of the Fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
Please see footnotes on page 7.
6 | Institutional Money Market Funds
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Performance highlights (unaudited)
Revenue source as of July 31, 20203 |
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Effective maturity distribution as of July 31, 20203 |
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Weighted average maturity as of July 31, 20204 |
18 days |
Weighted average life as of July 31, 20205 |
20 days |
‡ | CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. |
1 | Reflects the expense ratios as stated in the most recent prospectuses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report. |
2 | The manager has contractually committed through May 31, 2021, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.30% for Administrator Class, 0.20% for Institutional Class, and 0.45% for Service Class. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses (if any), and extraordinary expenses are excluded from the expense caps. Prior to or after the commitment expiration date, the caps may be increased or the commitment to maintain the caps may be terminated only with the approval of the Board of Trustees. Without these caps, the Fund’s returns would have been lower. Without waived fees and/or reimbursed expenses, the Fund’s 7-day current yield would have been -0.15%, -0.03%, and -0.32% for Administrator Class, Institutional Class, and Service Class, respectively. 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 prospectuses. |
3 | Amounts are calculated based on the total investments of the Fund. These amounts are subject to change and may have changed since the date specified. |
4 | Weighted Average Maturity (WAM): WAM is an average of the effective maturities of all securities held in the portfolio, weighted by each security’s percentage of total investments. The maturity of a portfolio security is the period remaining until the date on which the principal amount is unconditionally required to be paid, or in the case of a security called for redemption, the date on which the redemption payment is unconditionally required to be made. WAM calculations allow for the maturities of certain securities with demand features or periodic interest rate resets to be shortened. WAM is a way to measure a fund’s sensitivity to potential interest rate changes. WAM is subject to change and may have changed since the date specified. |
5 | Weighted Average Life (WAL): WAL is an average of the final maturities of all securities held in the portfolio, weighted by their percentage of total investments. The maturity of a portfolio security is the period remaining until the date on which the principal amount is unconditionally required to be paid, or in the case of a security called for redemption, the date on which the redemption payment is unconditionally required to be made. In contrast to WAM, the calculation of WAL allows for the maturities of certain securities with demand features to be shortened, but not the periodic interest rate resets. WAL is a way to measure a fund’s potential sensitivity to credit spread changes. WAL is subject to change and may have changed since the date specified. |
Institutional Money Market Funds | 7
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As a shareholder of the Fund, you incur ongoing costs, including management fees, shareholder servicing fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from February 1, 2020 to July 31, 2020.
Actual expenses
The “Actual” line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Actual” line under the heading entitled “Expenses paid during period” for your applicable class of shares to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The “Hypothetical” line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds.
Beginning account value 2-1-2020 | Ending account value 7-31-2020 | Expenses paid during the period1 | Annualized net expense ratio | |||||||||||||
Administrator Class | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,003.37 | $ | 1.44 | 0.29 | % | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.42 | $ | 1.46 | 0.29 | % | ||||||||
Institutional Class | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,003.58 | $ | 1.00 | 0.20 | % | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.87 | $ | 1.01 | 0.20 | % | ||||||||
Service Class | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,003.00 | $ | 1.74 | 0.35 | % | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.12 | $ | 1.76 | 0.35 | % |
1 | Expenses paid is equal to the annualized net expense ratio of each class multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one-half-year period). |
8 | Institutional Money Market Funds
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Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Municipal Obligations: 94.62% | ||||||||||||||||
Arizona: 10.13% | ||||||||||||||||
Variable Rate Demand Notes ø: 10.13% | ||||||||||||||||
Arizona HEFA Banner Health Series E (Health Revenue, Bank of America NA LOC) | 0.17 | % | 1-1-2029 | $ | 2,500,000 | $ | 2,500,000 | |||||||||
Arizona IDA Phoenix Childrens Hospital (Health Revenue, JPMorgan Chase & Company LOC) | 0.17 | 2-1-2048 | 3,500,000 | 3,500,000 | ||||||||||||
Arizona Tender Option Bond Trust Receipts/Floater Certificates Series 2020-XF2862 (Education Revenue, Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ) 144A | 0.36 | 12-15-2047 | 2,000,000 | 2,000,000 | ||||||||||||
Maricopa County AZ IDA Solid Waste Disposal Series 2006 (Resource Recovery Revenue, Farm Credit Services America LOC) | 0.26 | 8-1-2026 | 2,500,000 | 2,500,000 | ||||||||||||
Phoenix AZ IDA Various Mayo Clinic Series A (Health Revenue, Bank of America NA SPA) | 0.12 | 11-15-2052 | 5,000,000 | 5,000,000 | ||||||||||||
Pinal County AZ IDA Shamrock Farms Project (Resource Recovery Revenue, Farm Credit Services America LOC) | 0.25 | 8-1-2022 | 3,700,000 | 3,700,000 | ||||||||||||
Pinal County AZ IDA Solid Waste Disposal Feenstra Investments LLC Project Series 2002 (Resource Recovery Revenue, Farm Credit Services America LOC) | 0.25 | 8-1-2027 | 1,250,000 | 1,250,000 | ||||||||||||
20,450,000 | ||||||||||||||||
|
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California: 15.41% | ||||||||||||||||
Other Municipal Debt: 0.76% | ||||||||||||||||
Los Angeles CA Tax & Revenue Anticipation Notes (GO Revenue) | 4.00 | 6-24-2021 | 500,000 | 517,192 | ||||||||||||
Los Angeles CA Tax & Revenue Anticipation Notes Series A (GO Revenue) | 4.00 | 6-30-2021 | 500,000 | 517,280 | ||||||||||||
Napa Valley CA Unified School District Tax & Revenue Anticipation Notes (GO Revenue) | 4.00 | 2-26-2021 | 500,000 | 510,644 | ||||||||||||
1,545,116 | ||||||||||||||||
|
| |||||||||||||||
Variable Rate Demand Notes ø: 14.65% | ||||||||||||||||
California HFFA Adventist Hospital Project Series B (Health Revenue, U.S. Bank NA LOC) | 0.10 | 9-1-2028 | 5,000,000 | 5,000,000 | ||||||||||||
California Series A-2 (GO Revenue, Bank of Montreal LOC) | 0.11 | 5-1-2033 | 1,500,000 | 1,500,000 | ||||||||||||
California Statewide Community Development Authority Uptown Newport Apartments Series 2017 AA & BB (Housing Revenue, East West Bank LOC) | 0.21 | 3-1-2057 | 4,900,000 | 4,900,000 | ||||||||||||
California Tender Option Bond Trust Receipts/Floater Certificates Series 2017-XF2466 (GO Revenue, BAM Insured, Citibank NA LIQ) 144A | 0.20 | 8-1-2024 | 4,700,000 | 4,700,000 | ||||||||||||
California Tender Option Bond Trust Receipts/Floater Certificates Series 2020-YX1142 (Tax Revenue, Barclays Bank plc LOC, Barclays Bank plc LIQ) 144A | 0.26 | 10-1-2049 | 1,000,000 | 1,000,000 | ||||||||||||
Irvine CA Improvement Bond Act of 1915 Reassessment District #85-7 Series A (Miscellaneous Revenue, Bank of Tokyo-Mitsubishi LOC) | 0.10 | 9-2-2032 | 3,400,000 | 3,400,000 | ||||||||||||
Los Angeles CA Municipal Improvement Bond Series A-3 (GO Revenue) | 0.20 | 8-6-2020 | 250,000 | 250,000 | ||||||||||||
Mizuho Floater/Residual Interest Bond Series 2019-MIZ9007 (Housing Revenue, Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ) 144A | 0.41 | 1-1-2040 | 4,500,000 | 4,500,000 | ||||||||||||
Modesto CA MFHR Live Oak Apartments Project (Tax Revenue, FNMA Insured, FNMA LIQ) | 0.27 | 9-15-2024 | 410,000 | 410,000 | ||||||||||||
Sacramento CA Transportation Authority Sales Tax Refunding Bond Series A (Tax Revenue, Sumitomo Mitsui Banking LOC) | 0.17 | 10-1-2038 | 1,500,000 | 1,500,000 | ||||||||||||
San Joaquin CA Delta Community College Tender Option Bond Trust Receipts/Floater Certificates Series 2015-ZF0180 (GO Revenue, JPMorgan Chase & Company LIQ) 144A | 0.20 | 8-1-2022 | 2,415,000 | 2,415,000 | ||||||||||||
29,575,000 | ||||||||||||||||
|
|
The accompanying notes are an integral part of these financial statements.
Institutional Money Market Funds | 9
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Colorado: 0.30% | ||||||||||||||||
Other Municipal Debt: 0.25% | ||||||||||||||||
Colorado General Fund Tax & Revenue Anticipation Notes (GO Revenue) %% | 4.00 | % | 6-25-2021 | $ | 500,000 | $ | 516,903 | |||||||||
|
| |||||||||||||||
Variable Rate Demand Note ø: 0.05% | ||||||||||||||||
Town of Hudson CO Series A (Industrial Development Revenue, U.S. Bank NA LOC) | 0.50 | 11-1-2020 | 100,000 | 100,000 | ||||||||||||
|
| |||||||||||||||
Connecticut: 1.50% | ||||||||||||||||
Other Municipal Debt: 1.50% | ||||||||||||||||
New London CT BAN (GO Revenue) | 1.50 | 3-18-2021 | 3,000,000 | 3,022,082 | ||||||||||||
|
| |||||||||||||||
Florida: 4.28% | ||||||||||||||||
Other Municipal Debt: 2.30% | ||||||||||||||||
Broward County FL Main Courthouse Project Series A (Tax Revenue) | 5.25 | 10-1-2020 | 2,000,000 | 2,016,268 | ||||||||||||
Florida Local Government Financial Commission (GO Revenue) | 0.19 | 9-1-2020 | 2,632,000 | 2,632,092 | ||||||||||||
4,648,360 | ||||||||||||||||
|
| |||||||||||||||
Variable Rate Demand Note ø: 1.98% | ||||||||||||||||
St. Lucie County FL Florida Power & Light Company (Industrial Development Revenue) | 0.19 | 9-1-2028 | 4,000,000 | 4,000,000 | ||||||||||||
|
| |||||||||||||||
Idaho: 0.24% | ||||||||||||||||
Variable Rate Demand Note ø: 0.24% | ||||||||||||||||
Idaho Health Facilities Authority Hospital Trinity Health Credit Group Series D (Health Revenue) %% | 0.70 | 12-1-2048 | 485,000 | 485,000 | ||||||||||||
|
| |||||||||||||||
Illinois: 5.30% | ||||||||||||||||
Variable Rate Demand Notes ø: 5.30% | ||||||||||||||||
Chicago IL Enterprise Zone Gardner Gibson Project (Industrial Development Revenue, BMO Harris Bank NA LOC) | 0.32 | 7-1-2033 | 1,780,000 | 1,780,000 | ||||||||||||
Lake County IL Multi-Family Housing (Housing Revenue, FHLMC LIQ) | 0.28 | 11-1-2034 | 4,620,000 | 4,620,000 | ||||||||||||
Peoria County IL Caterpillar Incorporated Project (Industrial Development Revenue, Caterpillar Incorporated LOC) | 0.41 | 2-1-2030 | 4,300,000 | 4,300,000 | ||||||||||||
10,700,000 | ||||||||||||||||
|
| |||||||||||||||
Indiana: 5.91% | ||||||||||||||||
Variable Rate Demand Notes ø: 5.91% | ||||||||||||||||
Indiana Certificate of Participation Clipper Tax-Exempt Certificate Trust Series 2009-34 (Miscellaneous Revenue, State Street Bank & Trust Company LIQ) | 0.20 | 7-1-2023 | 1,380,000 | 1,380,000 | ||||||||||||
Indiana Finance Authority Duke Energy Indiana Incorporated Series 2009A-4 (Industrial Development Revenue, Sumitomo Mitsui Banking LOC) | 0.17 | 12-1-2039 | 4,000,000 | 4,000,000 | ||||||||||||
Indiana Tender Option Bond Trust Receipts/Certificates Series 2019-XF0756 (Miscellaneous Revenue, Bank of America NA LIQ) 144A | 0.32 | 2-1-2049 | 1,875,000 | 1,875,000 | ||||||||||||
Jeffersonville IN Economic Development Eagle Steel Products Incorporated Project (Industrial Development Revenue, Bank of America NA LOC) | 0.28 | 12-1-2027 | 2,540,000 | 2,540,000 | ||||||||||||
Noblesville IN Greystone Apartments Project Series B (Housing Revenue, FHLB LOC) | 0.23 | 3-1-2041 | 1,350,000 | 1,350,000 | ||||||||||||
St. Joseph County IN Midcorr Land Development LLC Project (Industrial Development Revenue, PNC Bank NA LOC) | 0.19 | 10-1-2023 | 800,000 | 800,000 | ||||||||||||
11,945,000 | ||||||||||||||||
|
|
The accompanying notes are an integral part of these financial statements.
10 | Institutional Money Market Funds
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Iowa: 1.03% | ||||||||||||||||
Variable Rate Demand Note ø: 1.03% | ||||||||||||||||
Iowa Finance Authority John Maassen & Sons Project (Industrial Development Revenue, Farm Credit Services America LOC) | 0.25 | % | 11-1-2035 | $ | 2,075,000 | $ | 2,075,000 | |||||||||
|
| |||||||||||||||
Kansas: 0.65% | ||||||||||||||||
Other Municipal Debt: 0.50% | ||||||||||||||||
Leawood KS Series 1 (GO Revenue) ## | 2.50 | 9-1-2020 | 1,000,000 | 1,001,842 | ||||||||||||
|
| |||||||||||||||
Variable Rate Demand Note ø: 0.15% | ||||||||||||||||
Nemaha County KS Midwest AG Services LLC Project (Industrial Development Revenue, CoBank ACB LOC) | 0.30 | 11-1-2020 | 315,000 | 315,000 | ||||||||||||
|
| |||||||||||||||
Kentucky: 1.09% | ||||||||||||||||
Variable Rate Demand Notes ø: 1.09% | ||||||||||||||||
Jefferson County KY Industrial Building Dant Growth LLC Project Series 2002 (Industrial Development Revenue, Stock Yards Bank & Trust LOC) | 0.19 | 9-1-2022 | 700,000 | 700,000 | ||||||||||||
Louisville & Jefferson Counties KY Regional Airport Authority UPS Worldwide Forwarding Series B (Industrial Development Revenue) | 0.20 | 1-1-2029 | 1,500,000 | 1,500,000 | ||||||||||||
2,200,000 | ||||||||||||||||
|
| |||||||||||||||
Louisiana: 2.48% | ||||||||||||||||
Other Municipal Debt: 0.50% | ||||||||||||||||
Louisiana Series A (GO Revenue) | 5.00 | 9-1-2020 | 1,000,000 | 1,003,588 | ||||||||||||
|
| |||||||||||||||
Variable Rate Demand Note ø: 1.98% | ||||||||||||||||
Louisiana Local Government Environmental Facilities CDA Honeywell International Incorporated Project (Industrial Development Revenue, Honeywell International Incorporated LOC) | 0.41 | 12-1-2036 | 4,000,000 | 4,000,000 | ||||||||||||
|
| |||||||||||||||
Michigan: 2.16% | ||||||||||||||||
Other Municipal Debt: 0.26% | ||||||||||||||||
Michigan Finance Auhority State Aid Series A-2 (Miscellaneous Revenue, JPMorgan Chase & Company LOC) %% | 4.00 | 8-20-2021 | 500,000 | 518,700 | ||||||||||||
|
| |||||||||||||||
Variable Rate Demand Note ø: 1.90% | ||||||||||||||||
Michigan Tender Option Bond Trust Receipts/Certificates Series 2018-ZM0614 (Education Revenue, Morgan Stanley Bank LIQ) 144A | 0.34 | 11-1-2028 | 3,835,000 | 3,835,000 | ||||||||||||
|
| |||||||||||||||
Minnesota: 4.89% | ||||||||||||||||
Variable Rate Demand Notes ø: 4.89% | ||||||||||||||||
Forest Lake MN Kilkenny Court Apartments Project Series 2008 (Housing Revenue, FNMA LOC, FNMA LIQ) | 0.25 | 8-15-2038 | 735,000 | 735,000 | ||||||||||||
JPMorgan Chase Puttable Tax-Exempt Receipts Trust Series 5027 (GO Revenue, JPMorgan Chase & Company LIQ) 144A | 0.42 | 6-1-2021 | 4,000,000 | 4,000,000 | ||||||||||||
Minnesota HEFAR Concordia University Series 6Q (Education Revenue, U.S. Bank NA LOC) | 0.17 | 4-1-2037 | 1,000,000 | 1,000,000 | ||||||||||||
Minnesota Tender Option Bond Trust Receipts/Certificates Series 2018-XF2760 (Education Revenue, Morgan Stanley Bank LIQ) 144A | 0.36 | 11-1-2037 | 4,140,000 | 4,140,000 | ||||||||||||
9,875,000 | ||||||||||||||||
|
|
The accompanying notes are an integral part of these financial statements.
Institutional Money Market Funds | 11
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Missouri: 0.84% | ||||||||||||||||
Variable Rate Demand Notes ø: 0.84% | ||||||||||||||||
RBC Municipal Products Incorporated (Health Revenue, Royal Bank of Canada LOC, Royal Bank of Canada LIQ) 144A | 0.23 | % | 9-1-2039 | $ | 1,000,000 | $ | 1,000,000 | |||||||||
St. Charles County MO IDA Kuenz Heating & Sheet Metal Series 2001 (Industrial Development Revenue, U.S. Bank NA LOC) | 0.39 | 4-1-2026 | 690,000 | 690,000 | ||||||||||||
1,690,000 | ||||||||||||||||
|
| |||||||||||||||
New Hampshire: 2.47% | ||||||||||||||||
Variable Rate Demand Note ø: 2.47% | ||||||||||||||||
New Hampshire Finance Authority Lonza Biologics Incorporated (Industrial Development Revenue, Landesbank Hessen-Thüringen LOC) | 0.23 | 9-1-2030 | 5,000,000 | 5,000,000 | ||||||||||||
|
| |||||||||||||||
New Jersey: 1.02% | ||||||||||||||||
Variable Rate Demand Note ø: 1.02% | ||||||||||||||||
New Jersey Tender Option Bond Trust Receipts/Floater Certificates Series 2019-XG0258 (Tax Revenue, Barclays Bank plc LOC, Barclays Bank plc LIQ) 144A | 0.19 | 6-15-2050 | 2,055,000 | 2,055,000 | ||||||||||||
|
| |||||||||||||||
New York: 4.16% | ||||||||||||||||
Other Municipal Debt: 0.77% | ||||||||||||||||
Erie County NY Revenue Anticipation Notes (GO Revenue) | 3.00 | 6-24-2021 | 500,000 | 511,649 | ||||||||||||
New York Dormitory Authority Personal Income Tax Revenue Series B (Tax Revenue) | 5.00 | 3-31-2021 | 1,000,000 | 1,031,898 | ||||||||||||
1,543,547 | ||||||||||||||||
|
| |||||||||||||||
Variable Rate Demand Notes ø: 3.39% | ||||||||||||||||
New York NY Fiscal Subordinate Bond Series 2017A-6 (GO Revenue, Landesbank Hessen-Thüringen SPA) | 0.15 | 8-1-2044 | 4,500,000 | 4,500,000 | ||||||||||||
New York NY Housing Development Corporation Multifamily Housing Series 2015-F (Water & Sewer Revenue, Bank of America NA SPA) | 0.16 | 6-15-2048 | 1,100,000 | 1,100,000 | ||||||||||||
New York NY Municipal Water Authority Series BB-1 (Water & Sewer Revenue, State Street Bank & Trust Company SPA) | 0.14 | 6-15-2049 | 1,250,000 | 1,250,000 | ||||||||||||
6,850,000 | ||||||||||||||||
|
| |||||||||||||||
North Carolina: 0.67% | ||||||||||||||||
Variable Rate Demand Note ø: 0.67% | ||||||||||||||||
Rockingham County NC Industrial Facilities & PCFA Innofa USA Project Series 2007 (Industrial Development Revenue, Truist Bank LOC) | 0.23 | 1-1-2027 | 1,350,000 | 1,350,000 | ||||||||||||
|
| |||||||||||||||
North Dakota: 0.27% | ||||||||||||||||
Variable Rate Demand Note ø: 0.27% | ||||||||||||||||
Mandan ND IDA Cloverdale Foods Company Project (Industrial Development Revenue, BNC National Bank LOC) | 0.35 | 12-1-2022 | 550,000 | 550,000 | ||||||||||||
|
| |||||||||||||||
Ohio: 0.74% | ||||||||||||||||
Variable Rate Demand Notes ø: 0.74% | ||||||||||||||||
Franklin County OH Trinity Health Group (Health Revenue) %% | 0.70 | 12-1-2046 | 500,000 | 500,000 | ||||||||||||
Mizuho Floater/Residual Trust Various States Series 2019-MIZ9001 (Housing Revenue, Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ) 144A | 0.36 | 7-1-2059 | 990,000 | 990,000 | ||||||||||||
1,490,000 | ||||||||||||||||
|
|
The accompanying notes are an integral part of these financial statements.
12 | Institutional Money Market Funds
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Oregon: 2.92% | ||||||||||||||||
Variable Rate Demand Notes ø: 2.92% | ||||||||||||||||
Oregon Refunding Bond Series 106-C (GO Revenue, U.S. Bank NA SPA) | 0.13 | % | 12-1-2044 | $ | 800,000 | $ | 800,000 | |||||||||
Oregon Tender Option Bond Trust Receipts/Floater Certificates Series 2020-XM0814 (Education Revenue, Royal Bank of Canada LIQ) 144A | 0.19 | 1-1-2028 | 4,800,000 | 4,800,000 | ||||||||||||
Portland OR Portland International Airport Series 18-A (Airport Revenue, Bank of China LOC) | 0.24 | 7-1-2026 | 300,000 | 300,000 | ||||||||||||
5,900,000 | ||||||||||||||||
|
| |||||||||||||||
Other: 1.02% | ||||||||||||||||
Variable Rate Demand Note ø: 1.02% | ||||||||||||||||
FHLMC MFHR Series M-031 Class A (Housing Revenue, FHLMC LIQ) 144A | 0.19 | 12-15-2045 | 2,060,000 | 2,060,000 | ||||||||||||
|
| |||||||||||||||
Pennsylvania: 3.68% | ||||||||||||||||
Other Municipal Debt: 0.26% | ||||||||||||||||
Philadelphia PA School District AMT Series A (Tax Revenue) | 4.00 | 6-30-2021 | 500,000 | 516,582 | ||||||||||||
|
| |||||||||||||||
Variable Rate Demand Notes ø: 3.42% | ||||||||||||||||
Allegheny County PA Hospital Development Authority Series E (Health Revenue, Royal Bank of Canada LOC, Royal Bank of Canada LIQ) 144A | 0.19 | 4-1-2022 | 4,000,000 | 4,000,000 | ||||||||||||
Pennsylvania EDFA Series D-7 (Industrial Development Revenue, PNC Bank NA LOC) | 0.19 | 8-1-2022 | 300,000 | 300,000 | ||||||||||||
Westmoreland County PA Municipal Authority Service Series 2016 Tender Option Bond Trust Receipts/Floater Certificates Series 2017-ZF0539 (Water & Sewer Revenue, BAM Insured, TD Bank NA LIQ) 144A | 0.31 | 8-15-2038 | 2,615,000 | 2,615,000 | ||||||||||||
6,915,000 | ||||||||||||||||
|
| |||||||||||||||
Tennessee: 2.23% | ||||||||||||||||
Variable Rate Demand Note ø: 2.23% | ||||||||||||||||
Blount County TN Public Building Authority Various Local Government Public Improvements Series (Miscellaneous Revenue, Bank of America NA SPA) | 0.15 | 6-1-2034 | 4,500,000 | 4,500,000 | ||||||||||||
|
| |||||||||||||||
Texas: 5.94% | ||||||||||||||||
Other Municipal Debt: 2.38% | ||||||||||||||||
Dallas TX Series A (GO Revenue) | 0.25 | 9-3-2020 | 1,000,000 | 1,000,001 | ||||||||||||
Texas Tax Revenue Anticipation Notes (GO Revenue) | 4.00 | 8-27-2020 | 3,795,000 | 3,804,733 | ||||||||||||
4,804,734 | ||||||||||||||||
|
| |||||||||||||||
Variable Rate Demand Notes ø: 3.56% | ||||||||||||||||
Dallam County TX Industrial Development Corporation Dalhart Jersey Ranch Incorporated Series 2008 (Resource Recovery Revenue, CoBank ACB LOC) | 0.25 | 8-1-2039 | 1,185,000 | 1,185,000 | ||||||||||||
Mizuho Tender Option Bond Trust Receipts/Floater Certificates Series 2019-MIZ9010 (Housing Revenue, Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ) 144A | 0.51 | 4-1-2034 | 3,000,000 | 3,000,000 | ||||||||||||
Port Arthur TX Navigation District Jefferson County Total Petrochemicals USA Incorporated Project Series 2003-C (Industrial Development Revenue, Total SA LOC) | 0.26 | 4-1-2027 | 3,000,000 | 3,000,000 | ||||||||||||
7,185,000 | ||||||||||||||||
|
| |||||||||||||||
Utah: 2.97% | ||||||||||||||||
Other Municipal Debt: 0.50% | ||||||||||||||||
Salt Lake County Tax Anticipation Notes (GO Revenue) | 1.00 | 12-30-2020 | 1,000,000 | 1,003,550 | ||||||||||||
|
|
The accompanying notes are an integral part of these financial statements.
Institutional Money Market Funds | 13
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Variable Rate Demand Note ø: 2.47% | ||||||||||||||||
University of Utah (Education Revenue, Citibank NA LIQ) 144A | 0.21 | % | 8-1-2021 | $ | 5,000,000 | $ | 5,000,000 | |||||||||
|
| |||||||||||||||
Virginia: 2.43% | ||||||||||||||||
Variable Rate Demand Notes ø: 2.43% | ||||||||||||||||
Albemarle County VA EDA Series 2018A & 2018B (Health Revenue, TD Bank NA SPA) | 0.14 | 10-1-2048 | 4,200,000 | 4,200,000 | ||||||||||||
Chesterfield County VA IDA Super Radiator Coils Project Series A (Industrial Development Revenue, BMO Harris Bank NA LOC) | 0.23 | 4-1-2026 | 700,000 | 700,000 | ||||||||||||
4,900,000 | ||||||||||||||||
|
| |||||||||||||||
Washington: 5.58% | ||||||||||||||||
Variable Rate Demand Notes ø: 5.58% | ||||||||||||||||
Eclipse Funding Trust (Water & Sewer Revenue, U.S. Bank NA LIQ) 144A | 0.19 | 7-1-2042 | 4,500,000 | 4,500,000 | ||||||||||||
Washington Finance Authority Smith Brothers Farms Incorporated Series 2001 (Industrial Development Revenue, Northwest Farm Credit LOC) | 0.25 | 9-1-2021 | 1,715,000 | 1,715,000 | ||||||||||||
Washington Tender Option Bond Trust Receipts/Floater Certificates Series 2016-XM0424 (Health Revenue, JPMorgan Chase & Company LIQ) 144A## | 0.53 | 9-6-2020 | 4,500,000 | 4,500,000 | ||||||||||||
Yakima County WA Solid Waste Disposal George Deruyter & Son Project Series 2006 (Resource Recovery Revenue, Northwest Farm Credit LOC) | 0.25 | 8-1-2026 | 565,000 | 565,000 | ||||||||||||
11,280,000 | ||||||||||||||||
|
| |||||||||||||||
Wisconsin: 0.73% | ||||||||||||||||
Variable Rate Demand Notes ø: 0.73% | ||||||||||||||||
Manitowoc WI CDA Regency House Project (Housing Revenue, Bank First National LOC) | 0.39 | 11-1-2020 | 925,000 | 925,000 | ||||||||||||
Sheboygan WI Vortex Liquid Color Project (Industrial Development Revenue, Bank First National LOC) | 0.39 | 11-1-2020 | 550,000 | 550,000 | ||||||||||||
1,475,000 | ||||||||||||||||
|
| |||||||||||||||
Wyoming: 1.58% | ||||||||||||||||
Variable Rate Demand Note ø: 1.58% | ||||||||||||||||
Sublette County WY ExxonMobil Project (Industrial Development Revenue) | 0.14 | 10-1-2044 | 3,200,000 | 3,200,000 | ||||||||||||
|
| |||||||||||||||
Total Municipal Obligations (Cost $191,061,058) | 191,080,004 | |||||||||||||||
|
| |||||||||||||||
Closed End Municipal Bond Fund Obligations: 3.47% | ||||||||||||||||
Nuveen AMT-Free Municipal Credit Income Fund MuniFund Preferred Shares Series B (40 shares) 0.25% 144Aø | 4,000,000 | 4,000,000 | ||||||||||||||
Nuveen California AMT-Free Quality Municipal Income Fund MuniFund Preferred Shares Series A (30 shares) 0.22% 144Aø | 3,000,000 | 3,000,000 | ||||||||||||||
Total Closed End Municipal Bond Fund Obligations (Cost $7,000,000) | 7,000,000 | |||||||||||||||
|
|
Total investments in securities (Cost $198,061,058) | 98.09 | % | 198,080,004 | |||||
Other assets and liabilities, net | 1.91 | 3,858,157 | ||||||
|
|
|
| |||||
Total net assets | 100.00 | % | $ | 201,938,161 | ||||
|
|
|
|
The accompanying notes are an integral part of these financial statements.
14 | Institutional Money Market Funds
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
ø | Variable rate demand notes are subject to a demand feature which reduces the effective maturity. The maturity date shown represents the final maturity date of the security. The interest rate is determined and reset by the issuer daily, weekly, or monthly depending upon the terms of the security. The rate shown is the rate in effect at period end. |
144A | The security may be resold in transactions exempt from registration, normally to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933. |
%% | The security is purchased on a when-issued basis. |
## | All or a portion of this security is segregated for when-issued securities. |
Abbreviations:
AMT | Alternative minimum tax |
BAM | Build America Mutual Assurance Company |
BAN | Bond anticipation notes |
CDA | Community Development Authority |
EDA | Economic Development Authority |
EDFA | Economic Development Finance Authority |
FHLB | Federal Home Loan Bank |
FHLMC | Federal Home Loan Mortgage Corporation |
FNMA | Federal National Mortgage Association |
HEFA | Health & Educational Facilities Authority |
HEFAR | Higher Education Facilities Authority Revenue |
HFFA | Health Facilities Financing Authority |
IDA | Industrial Development Authority |
LIQ | Liquidity agreement |
LOC | Letter of credit |
MFHR | Multifamily housing revenue |
PCFA | Pollution Control Financing Authority |
SPA | Standby purchase agreement |
The accompanying notes are an integral part of these financial statements.
Institutional Money Market Funds | 15
Table of Contents
Statement of assets and liabilities—July 31, 2020 (unaudited)
Assets | ||||
Investments in unaffiliated securities, at value (cost $198,061,058) | $ | 198,080,004 | ||
Cash | 331,371 | |||
Receivable for investments sold | 5,144,025 | |||
Receivable for interest | 427,520 | |||
Receivable from manager | 2,265 | |||
Prepaid expenses and other assets | 12,117 | |||
|
| |||
Total assets | 203,997,302 | |||
|
| |||
Liabilities | ||||
Payable for investments purchased | 2,020,595 | |||
Payable for Fund shares redeemed | 229 | |||
Dividends payable | 928 | |||
Administration fees payable | 14,369 | |||
Accrued expenses and other liabilities | 23,020 | |||
|
| |||
Total liabilities | 2,059,141 | |||
|
| |||
Total net assets | $ | 201,938,161 | ||
|
| |||
Net assets consist of | ||||
Paid-in capital | $ | 201,989,486 | ||
Total distributable loss | (51,325 | ) | ||
|
| |||
Total net assets | $ | 201,938,161 | ||
|
| |||
Computation of net asset value per share | ||||
Net assets – Administrator Class | $ | 1,276,829 | ||
Shares outstanding – Administrator Class1 | 1,276,365 | |||
Net asset value per share – Administrator Class | $1.0004 | |||
Net assets – Institutional Class | $ | 181,983,337 | ||
Shares outstanding – Institutional Class1 | 181,936,796 | |||
Net asset value per share – Institutional Class | $1.0003 | |||
Net assets – Service Class | $ | 18,677,995 | ||
Shares outstanding – Service Class1 | 18,671,704 | |||
Net asset value per share – Service Class | $1.0003 |
1 | The Fund has an unlimited number of authorized shares. |
The accompanying notes are an integral part of these financial statements.
16 | Institutional Money Market Funds
Table of Contents
Statement of operations—six months ended July 31, 2020 (unaudited)
Investment income | ||||
Interest | $ | 1,163,377 | ||
|
| |||
Expenses | ||||
Management fee | 176,078 | |||
Administration fees | ||||
Administrator Class | 781 | |||
Institutional Class | 86,565 | |||
Service Class | 10,078 | |||
Shareholder servicing fees | ||||
Administrator Class | 775 | |||
Service Class | 20,996 | |||
Custody and accounting fees | 25,676 | |||
Professional fees | 19,819 | |||
Registration fees | 21,256 | |||
Shareholder report expenses | 12,120 | |||
Trustees’ fees and expenses | 10,187 | |||
Other fees and expenses | 17,067 | |||
|
| |||
Total expenses | 401,398 | |||
Less: Fee waivers and/or expense reimbursements | ||||
Fund-level | (142,010 | ) | ||
Administrator Class | (281 | ) | ||
Service Class | (11,106 | ) | ||
|
| |||
Net expenses | 248,001 | |||
|
| |||
Net investment income | 915,376 | |||
|
| |||
Realized and unrealized gains (losses) on investments | ||||
Net realized gains on investments | 4,585 | |||
Net change in unrealized gains (losses) on investments | 17,955 | |||
|
| |||
Net realized and unrealized gains (losses) on investments | 22,540 | |||
|
| |||
Net increase in net assets resulting from operations | $ | 937,916 | ||
|
|
The accompanying notes are an integral part of these financial statements.
Institutional Money Market Funds | 17
Table of Contents
Statement of changes in net assets
Six months ended July 31, 2020 (unaudited) | Year ended January 31, 2020 | |||||||||||||||
Operations | ||||||||||||||||
Net investment income | $ | 915,376 | $ | 3,789,568 | ||||||||||||
Net realized gains on investments | 4,585 | 71,923 | ||||||||||||||
Net change in unrealized gains (losses) on investments | 17,955 | 991 | ||||||||||||||
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Net increase in net assets resulting from operations | 937,916 | 3,862,482 | ||||||||||||||
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Distributions to shareholders from net investment income and net realized gains | ||||||||||||||||
Administrator Class | (6,412 | ) | (77,076 | ) | ||||||||||||
Institutional Class | (861,873 | ) | (3,595,687 | ) | ||||||||||||
Service Class | (47,092 | ) | (190,180 | ) | ||||||||||||
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Total distributions to shareholders | (915,377 | ) | (3,862,943 | ) | ||||||||||||
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Capital share transactions | Shares | Shares | ||||||||||||||
Proceeds from shares sold | ||||||||||||||||
Administrator Class | 72,278 | 72,278 | 1,285,229 | 1,286,000 | ||||||||||||
Institutional Class | 2,394,976,179 | 2,395,503,720 | 4,876,264,698 | 4,879,042,051 | ||||||||||||
Service Class | 4,499,158 | 4,500,616 | 8,258,192 | 8,262,648 | ||||||||||||
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2,400,076,614 | 4,888,590,699 | |||||||||||||||
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Reinvestment of distributions | ||||||||||||||||
Administrator Class | 6,168 | 6,170 | 74,357 | 74,399 | ||||||||||||
Institutional Class | 862,331 | 862,496 | 3,580,990 | 3,583,043 | ||||||||||||
Service Class | 35,712 | 35,721 | 138,321 | 138,396 | ||||||||||||
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904,387 | 3,795,838 | |||||||||||||||
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Payment for shares redeemed | ||||||||||||||||
Administrator Class | (1,039,021 | ) | (1,039,037 | ) | (5,433,717 | ) | (5,436,590 | ) | ||||||||
Institutional Class | (2,438,065,318 | ) | (2,438,652,654 | ) | (4,821,641,033 | ) | (4,824,401,081 | ) | ||||||||
Service Class | (1,112,687 | ) | (1,113,038 | ) | (12,141,730 | ) | (12,147,898 | ) | ||||||||
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(2,440,804,729 | ) | (4,841,985,569 | ) | |||||||||||||
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Net increase (decrease) in net assets resulting from capital share transactions | (39,823,728 | ) | 50,400,968 | |||||||||||||
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Total increase (decrease) in net assets | (39,801,189 | ) | 50,400,507 | |||||||||||||
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Net assets | ||||||||||||||||
Beginning of period | 241,739,350 | 191,338,843 | ||||||||||||||
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End of period | $ | 201,938,161 | $ | 241,739,350 | ||||||||||||
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The accompanying notes are an integral part of these financial statements.
18 | Institutional Money Market Funds
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(For a share outstanding throughout each period)
Six months ended July 31, 2020 (unaudited) | Year ended January 31 | |||||||||||||||||||||||
ADMINISTRATOR CLASS | 2020 | 2019 | 2018 | 2017 | 20161 | |||||||||||||||||||
Net asset value, beginning of period | $1.0004 | $1.0003 | $1.0010 | $1.0005 | $1.0000 | $1.00 | ||||||||||||||||||
Net investment income | 0.0033 | 0.0124 | 0.0125 | 0.0069 | 0.0031 | 0.00 | 3 | |||||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.0000 | 2 | 0.0005 | (0.0001 | ) | 0.0005 | 0.0008 | 0.00 | 3 | |||||||||||||||
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Total from investment operations | 0.0033 | 0.0129 | 0.0124 | 0.0074 | 0.0039 | 0.00 | 3 | |||||||||||||||||
Distributions to shareholders from | ||||||||||||||||||||||||
Net investment income | (0.0033 | ) | (0.0125 | ) | (0.0124 | ) | (0.0069 | ) | (0.0030 | ) | (0.00 | )3 | ||||||||||||
Net realized gains | 0.0000 | (0.0003 | ) | (0.0007 | ) | (0.0000 | )2 | (0.0004 | ) | (0.00 | )3 | |||||||||||||
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Total distributions to shareholders | (0.0033 | ) | (0.0128 | ) | (0.0131 | ) | (0.0069 | ) | (0.0034 | ) | (0.00 | )3 | ||||||||||||
Net asset value, end of period | $1.0004 | $1.0004 | $1.0003 | $1.0010 | $1.0005 | $1.00 | ||||||||||||||||||
Total return4 | 0.34 | % | 1.29 | % | 1.25 | % | 0.74 | % | 0.35 | % | 0.02 | % | ||||||||||||
Ratios to average net assets (annualized) | ||||||||||||||||||||||||
Gross expenses | 0.44 | % | 0.43 | % | 0.44 | % | 0.41 | % | 0.39 | % | 0.37 | % | ||||||||||||
Net expenses | 0.29 | % | 0.30 | % | 0.30 | % | 0.30 | % | 0.27 | % | 0.10 | % | ||||||||||||
Net investment income | 0.82 | % | 1.28 | % | 1.25 | % | 0.68 | % | 0.29 | % | 0.01 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (000s omitted) | $1,277 | $2,238 | $6,313 | $3,247 | $3,223 | $3,537 |
1 | Amounts reflect the Fund transacting shares at a fixed NAV rounded to two decimal places. Beginning October 11, 2016, the Fund began selling and redeeming shares of the Fund at a floating NAV rounded to the fourth decimal place. |
2 | Amount is less than $0.00005. |
3 | Amount is less than $0.005. |
4 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Institutional Money Market Funds | 19
Table of Contents
Financial highlights
(For a share outstanding throughout each period)
Six months ended July 31, 2020 (unaudited) | Year ended January 31 | |||||||||||||||||||||||
INSTITUTIONAL CLASS | 2020 | 2019 | 2018 | 2017 | 20161 | |||||||||||||||||||
Net asset value, beginning of period | $1.0004 | $1.0004 | $1.0011 | $1.0005 | $1.0000 | $1.00 | ||||||||||||||||||
Net investment income | 0.0040 | 2 | 0.0137 | 0.0133 | 2 | 0.0080 | 0.0035 | 0.00 | 3 | |||||||||||||||
Net realized and unrealized gains (losses) on investments | (0.0004 | ) | 0.0001 | 0.0001 | 0.0005 | 0.0012 | 0.00 | 3 | ||||||||||||||||
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Total from investment operations | 0.0036 | 0.0138 | 0.0134 | 0.0085 | 0.0047 | 0.00 | 3 | |||||||||||||||||
Distributions to shareholders from | ||||||||||||||||||||||||
Net investment income | (0.0037 | ) | (0.0135 | ) | (0.0134 | ) | (0.0079 | ) | (0.0038 | ) | (0.00 | )3 | ||||||||||||
Net realized gains | 0.0000 | (0.0003 | ) | (0.0007 | ) | (0.0000 | )4 | (0.0004 | ) | (0.00 | )3 | |||||||||||||
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Total distributions to shareholders | (0.0037 | ) | (0.0138 | ) | (0.0141 | ) | (0.0079 | ) | (0.0042 | ) | (0.00 | )3 | ||||||||||||
Net asset value, end of period | $1.0003 | $1.0004 | $1.0004 | $1.0011 | $1.0005 | $1.00 | ||||||||||||||||||
Total return5 | 0.36 | % | 1.38 | % | 1.35 | % | 0.85 | % | 0.44 | % | 0.02 | % | ||||||||||||
Ratios to average net assets (annualized) | ||||||||||||||||||||||||
Gross expenses | 0.32 | % | 0.31 | % | 0.31 | % | 0.29 | % | 0.26 | % | 0.25 | % | ||||||||||||
Net expenses | 0.20 | % | 0.20 | % | 0.20 | % | 0.20 | % | 0.18 | % | 0.10 | % | ||||||||||||
Net investment income | 0.80 | % | 1.34 | % | 1.32 | % | 0.79 | % | 0.27 | % | 0.01 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (000s omitted) | $181,983 | $224,247 | $166,024 | $336,215 | $262,511 | $953,036 |
1 | Amounts reflect the Fund transacting shares at a fixed NAV rounded to two decimal places. Beginning October 11, 2016, the Fund began selling and redeeming shares of the Fund at a floating NAV rounded to the fourth decimal place. |
2 | Calculated based upon average shares outstanding |
3 | Amount is less than $0.005. |
4 | Amount is less than $0.00005. |
5 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
20 | Institutional Money Market Funds
Table of Contents
Financial highlights
(For a share outstanding throughout each period)
Six months ended July 31, 2020 (unaudited) | Year ended January 31 | |||||||||||||||||||||||
SERVICE CLASS | 2020 | 2019 | 2018 | 2017 | 20161 | |||||||||||||||||||
Net asset value, beginning of period | $1.0003 | $1.0004 | $1.0010 | $1.0005 | $1.0000 | $1.00 | ||||||||||||||||||
Net investment income | 0.0028 | 2 | 0.0110 | 2 | 0.0109 | 2 | 0.0059 | 0.0037 | 0.00 | 3 | ||||||||||||||
Net realized and unrealized gains (losses) on investments | 0.0002 | 0.0002 | 0.0001 | 0.0000 | 4 | (0.0010 | ) | 0.00 | 3 | |||||||||||||||
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Total from investment operations | 0.0030 | 0.0112 | 0.0110 | 0.0059 | 0.0027 | 0.00 | 3 | |||||||||||||||||
Distributions to shareholders from | ||||||||||||||||||||||||
Net investment income | (0.0030 | ) | (0.0110 | ) | (0.0109 | ) | (0.0054 | ) | (0.0018 | ) | (0.00 | )3 | ||||||||||||
Net realized gains | 0.0000 | (0.0003 | ) | (0.0007 | ) | (0.0000 | )4 | (0.0004 | ) | (0.00 | )3 | |||||||||||||
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Total distributions to shareholders | (0.0030 | ) | (0.0113 | ) | (0.0116 | ) | (0.0054 | ) | (0.0022 | ) | (0.00 | )3 | ||||||||||||
Net asset value, end of period | $1.0003 | $1.0003 | $1.0004 | $1.0010 | $1.0005 | $1.00 | ||||||||||||||||||
Total return5 | 0.30 | % | 1.12 | % | 1.11 | % | 0.59 | % | 0.23 | % | 0.02 | % | ||||||||||||
Ratios to average net assets (annualized) | ||||||||||||||||||||||||
Gross expenses | 0.61 | % | 0.60 | % | 0.61 | % | 0.58 | % | 0.49 | % | 0.48 | % | ||||||||||||
Net expenses | 0.35 | % | 0.45 | % | 0.45 | % | 0.45 | % | 0.35 | % | 0.10 | % | ||||||||||||
Net investment income | 0.56 | % | 1.09 | % | 1.09 | % | 0.53 | % | 0.09 | % | 0.01 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (000s omitted) | $18,678 | $15,255 | $19,001 | $19,355 | $23,962 | $108,484 |
1 | Amounts reflect the Fund transacting shares at a fixed NAV rounded to two decimal places. Beginning October 11, 2016, the Fund began selling and redeeming shares of the Fund at a floating NAV rounded to the fourth decimal place. |
2 | Calculated based upon average shares outstanding |
3 | Amount is less than $0.005. |
4 | Amount is less than $0.00005. |
5 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Institutional Money Market Funds | 21
Table of Contents
Notes to financial statements (unaudited)
1. ORGANIZATION
Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo Municipal Cash Management Money Market Fund (the “Fund”) which is a diversified series of the Trust.
The Fund operates as an institutional non-government money market fund. As an institutional non-government money market fund, shareholders will transact at a floating net asset value (NAV) rounded to four decimal places in accordance with the valuation policies below.
Consistent with Rule 2a-7, the Board of Trustees of the Fund is permitted to impose a liquidity fee on redemptions from the Fund or a redemption gate (i.e., a suspension of the right to redeem) in the event that the Fund’s liquidity falls below required minimums because of market conditions or other factors. If the Fund’s weekly liquid assets (as defined in Rule 2a-7(34)) fall below 30% of the Fund’s total assets, the Board of Trustees is permitted, but not required, to: (i) impose a liquidity fee of no more than 2% of the amount redeemed; and/or (ii) impose a redemption gate. If the Fund’s weekly liquid assets fall below 10% of the Fund’s total assets, the Fund must impose, generally as of the beginning of the next business day, a liquidity fee of 1% of the amount redeemed unless the Board of Trustees determines that such a fee is not in the best interest of the Fund or determines that a lower or higher fee (subject to the 2% limit) is in the best interest of the Fund. Liquidity fees reduce the amount a shareholder receives upon redemption of its shares. The Fund retains any liquidity fees for the benefit of remaining shareholders. The Board of Trustees did not impose any liquidity fees and/or redemption gates during the six months ended July 31, 2020.
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Securities valuation
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.
Investments which are not valued using the method discussed above are valued at their fair value, as determined in good faith by the Board of Trustees. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Wells Fargo Asset Management Pricing Committee at Wells Fargo Funds Management, LLC (“Funds Management”). The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Wells Fargo Asset Management Pricing Committee which may include items for ratification.
Repurchase agreements
The Fund may invest in repurchase agreements and may participate in pooled repurchase agreement transactions with other funds advised by Funds Management. Repurchase agreements are agreements where the seller of a security to the Fund agrees to repurchase that security from the Fund at a mutually agreed upon time and price. The repurchase agreements must be fully collateralized based on values that are marked-to-market daily. The collateral may be held by an agent bank under a tri-party agreement. It is the custodian’s responsibility to value collateral daily and to take action to obtain additional collateral as necessary to maintain a market value equal to or greater than the resale price. The repurchase agreements are collateralized by securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities. There could be potential loss to the Fund in the event that the Fund is delayed or prevented from exercising its rights to dispose of the collateral, including the risk of a possible decline in the value of the underlying obligations during the period in which the Fund seeks to assert its rights.
22 | Institutional Money Market Funds
Table of Contents
Notes to financial statements (unaudited)
When-issued transactions
The Fund may purchase securities on a forward commitment or when-issued basis. The Fund records a when-issued transaction on the trade date and will segregate assets in an amount at least equal in value to the Fund’s commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.
Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has been determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.
Distributions to shareholders
Distributions to shareholders from net investment income are declared daily and paid monthly. Distributions from net realized gains, if any, are recorded on the ex-dividend date and paid at least annually. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior to the Fund’s fiscal year end may be categorized as a tax return of capital at year end.
Federal and other taxes
The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable and tax-exempt income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.
The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.
As of July 31, 2020, the aggregate cost of all investments for federal income tax purposes was $198,061,058 and the unrealized gains (losses) consisted of:
Gross unrealized gains | $ | 18,946 | ||
Gross unrealized losses | 0 | |||
Net unrealized gains | $ | 18,946 |
Class allocations
The separate classes of shares offered by the Fund differ principally in shareholder servicing and administration fees. Class specific expenses are charged directly to that share class. Investment income, common fund-level expenses, and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.
3. FAIR VALUATION MEASUREMENTS
Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:
∎ | Level 1 – quoted prices in active markets for identical securities |
∎ | Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
∎ | Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
Institutional Money Market Funds | 23
Table of Contents
Notes to financial statements (unaudited)
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 is a summary of the inputs used in valuing the Fund’s assets and liabilities as of July 31, 2020:
Quoted prices (Level 1) | Other significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | |||||||||||||
Assets | ||||||||||||||||
Investments in: | ||||||||||||||||
Municipal obligations | $ | 0 | $ | 191,080,004 | $ | 0 | $ | 191,080,004 | ||||||||
Closed end municipal bond fund obligations | 0 | 7,000,000 | 0 | 7,000,000 | ||||||||||||
Total assets | $ | 0 | $ | 198,080,004 | $ | 0 | $ | 198,080,004 |
Additional sector, industry or geographic detail is included in the Portfolio of Investments.
For the six months ended July 31, 2020, the Fund did not have any transfers into/out of Level 3.
4. TRANSACTIONS WITH AFFILIATES
Management fee
Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadviser and providing fund-level administrative services in connection with the Fund’s operations. As compensation for its services under the investment management agreement, Funds Management is entitled to receive a management fee at the following annual rate based on the Fund’s average daily net assets:
Average daily net assets | Management fee | |||
First $5 billion | 0.15 | % | ||
Next $5 billion | 0.14 | |||
Over $10 billion | 0.13 |
For the six months ended July 31, 2020, the management fee was equivalent to an annual rate of 0.15% of the Fund’s average daily net assets.
Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. Wells Capital Management Incorporated, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.05% and declining to 0.01% as the average daily net assets of the Fund increase.
Administration fees
Under a class-level administration agreement, Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Funds Management receives an annual fee which is calculated based on the average daily net assets of each class as follows:
Class-level administration fee | ||||
Administrator Class | 0.10 | % | ||
Institutional Class | 0.08 | |||
Service Class | 0.12 |
24 | Institutional Money Market Funds
Table of Contents
Notes to financial statements (unaudited)
Waivers and/or expense reimbursements
Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. When each class of the Fund has exceeded its expense cap, Funds Management has waived fees and/or reimbursed expenses from fund-level expenses on a proportionate basis and then from class specific expenses. When only certain classes exceed their expense caps, waivers and/or reimbursements are applied against class specific expenses before fund-level expenses. Funds Management has committed through May 31, 2021 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.30% for Administrator Class shares, 0.20% for Institutional Class shares, and 0.45% for Service Class shares. 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.
During the six months ended July 31, 2020, Funds Management also voluntarily waived class-level expenses which represent 0.01% of the average daily net assets (on an annualized basis) of Administrator Class and 0.10% of the average daily net assets (on an annualized basis) of Service Class.
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing agents, whereby Service Class of the Fund is charged a fee at an annual rate of 0.25% of its average daily net assets. Administrator Class is charged a fee at an annual rate of 0.10% of its average daily net assets. A portion of these total shareholder servicing fees were paid to affiliates of Wells Fargo.
Interfund transactions
The Fund may purchase or sell portfolio investment securities to certain other Wells Fargo affiliates pursuant to Rule 17a-7 under the 1940 Act and under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which do not incur broker commissions, are effected at current market prices.
5. INDEMNIFICATION
Under the Fund’s organizational documents, the officers and Trustees have been granted certain indemnification rights against certain liabilities that may arise out of performance of their duties to the Fund. The Fund has entered into a separate agreement with each Trustee that converts indemnification rights currently existing under the Fund’s organizational documents into contractual rights that cannot be changed in the future without the consent of the Trustee. Additionally, in the normal course of business, the Fund may enter into contracts with service providers that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated.
6. NEW ACCOUNTING PRONOUNCEMENT
In August 2018, FASB issued Accounting Standards Update (“ASU”) No. 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 updates the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurements. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Management has adopted this guidance which did not have a material impact on the financial statements.
7. CORONAVIRUS (COVID-19) PANDEMIC
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 are 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 impacts 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.
Institutional Money Market Funds | 25
Table of Contents
PROXY VOTING INFORMATION
A description of the policies and procedures used to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at wfam.com, or visiting the SEC website at sec.gov. Information regarding how the proxies related to portfolio securities were voted during the most recent 12-month period ended June 30 is available on the website at wfam.com or by visiting the SEC website at sec.gov.
PORTFOLIO HOLDINGS INFORMATION
The Fund files its complete schedule of portfolio holdings with the SEC each month on Form N-MFP. Shareholders may view the filed Form N-MFP by visiting the SEC website at sec.gov. The Fund’s portfolio holdings information is also available on our website at wfam.com.
26 | Institutional Money Market Funds
Table of Contents
Other information (unaudited)
BOARD OF TRUSTEES AND OFFICERS
Each of the Trustees and Officers1 listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 147 mutual funds comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information2. The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.
Independent Trustees
Name and year of birth | Position held and length of service* | Principal occupations during past five years or longer | Current other public company or investment company directorships | |||
William R. Ebsworth (Born 1957) | Trustee, since 2015 | Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief investment officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong, and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he led a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Endowment (non-profit organization). Mr. Ebsworth is a CFA® charterholder. | N/A | |||
Jane A. Freeman (Born 1953) | Trustee, since 2015; Chair Liaison, since 2018 | Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is also an inactive Chartered Financial Analyst. | N/A | |||
Isaiah Harris, Jr. (Born 1952) | Trustee, since 2009; Audit Committee Chairman, since 2019 | Retired. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (private school). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status). | CIGNA Corporation | |||
Judith M. Johnson (Born 1949) | Trustee, since 2008; Audit Committee Chairman, from 2009 to 2018 | Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant. | N/A |
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Other information (unaudited)
Name and year of birth | Position held and length of service* | Principal occupations during past five years or longer | Current other public company or investment company directorships | |||
David F. Larcker (Born 1950) | Trustee, since 2009 | James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005. | N/A | |||
Olivia S. Mitchell (Born 1953) | Trustee, since 2006; Nominating and Governance Committee Chair, since 2018 | International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993. | N/A | |||
Timothy J. Penny (Born 1951) | Trustee, since 1996; Chairman, since 2018 | President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007. | N/A | |||
James G. Polisson (Born 1959) | Trustee, since 2018 | Retired. Chief Marketing Officer, Source (ETF) UK Services, Ltd, from 2015 to 2017. From 2012 to 2015, Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing company. Chief Executive Officer and Managing Director at Russell Investments, Global Exchange Traded Funds from 2010 to 2012. Managing Director of Barclays Global Investors from 1998 to 2010 and Global Chief Marketing Officer for iShares and Barclays Global Investors from 2000 to 2010. Trustee of the San Francisco Mechanics’ Institute, a non-profit organization, from 2013 to 2015. Board member of the Russell Exchange Traded Fund Trust from 2011 to 2012. Director of Barclays Global Investors Holdings Deutschland GmbH from 2006 to 2009. Mr. Polisson is an attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations. | N/A | |||
Pamela Wheelock (Born 1959) | Trustee, since January 2020; previously Trustee from January 2018 to July 2019 | Board member of the Destination Medical Center Economic Development Agency, Rochester, Minnesota since 2019 and Interim President of the McKnight Foundation since 2020. Acting Commissioner, Minnesota Department of Human Services, July 2019 through September 2019. Human Services Manager (part-time), Minnesota Department of Human Services, October 2019 through December 2019. Chief Operating Officer, Twin Cities Habitat for Humanity from 2017 to 2019. Vice President of University Services, University of Minnesota from 2012 to 2016. Prior thereto, on the Board of Directors, Governance Committee and Finance Committee for the Minnesota Philanthropy Partners (Saint Paul Foundation) from 2012 to 2018, Interim Chief Executive Officer of Blue Cross Blue Shield of Minnesota from 2011 to 2012, Chairman of the Board from 2009 to 2012 and Board Director from 2003 to 2015. Vice President, Leadership and Community Engagement, Bush Foundation, Saint Paul, Minnesota (a private foundation) from 2009 to 2011. Executive Vice President and Chief Financial Officer, Minnesota Sports and Entertainment from 2004 to 2009 and Senior Vice President from 2002 to 2004. Executive Vice President of the Minnesota Wild Foundation from 2004 to 2008. Commissioner of Finance, State of Minnesota, from 1999 to 2002. Currently Board Chair of the Minnesota Wild Foundation since 2010. | N/A |
* | Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable. |
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Other information (unaudited)
Officers
Name and year of birth | Position held and length of service | Principal occupations during past five years or longer | ||
Andrew Owen (Born 1960) | President, since 2017 | Executive Vice President of Wells Fargo & Company and Head of Affiliated Managers, Wells Fargo Asset Management, since 2014. In addition, Mr. Owen is currently President, Chief Executive Officer and Director of Wells Fargo Funds Management, LLC since 2017. Prior thereto, Executive Vice President responsible for marketing, investments and product development for Wells Fargo Funds Management, LLC, from 2009 to 2014. | ||
Nancy Wiser1 (Born 1967) | Treasurer, since 2012 | Executive Vice President of Wells Fargo Funds Management, LLC since 2011. Chief Operating Officer and Chief Compliance Officer at LightBox Capital Management LLC, from 2008 to 2011. | ||
Michelle Rhee (Born 1966) | Chief Legal Officer, since 2019 | Secretary of Wells Fargo Funds Management, LLC, Chief Legal Counsel of Wells Fargo Asset Management and Assistant General Counsel of Wells Fargo Bank, N.A. since 2018. Associate General Counsel and Managing Director of Bank of America Corporation from 2004 to 2018. | ||
Catherine Kennedy (Born 1969) | Secretary, since 2019 | Vice President of Wells Fargo Funds Management, LLC and Senior Counsel of the Wells Fargo Legal Department since 2010. Vice President and Senior Counsel of Evergreen Investment Management Company, LLC from 1998 to 2010. | ||
Michael H. Whitaker (Born 1967) | Chief Compliance Officer, since 2016 | Chief Compliance Officer of Wells Fargo Asset Management since 2016. Senior Vice President and Chief Compliance Officer for Fidelity Investments from 2007 to 2016. | ||
David Berardi (Born 1975) | Assistant Treasurer, since 2009 | Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010. | ||
Jeremy DePalma1 (Born 1974) | Assistant Treasurer, since 2009 | Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010 and head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010. |
1 | Nancy Wiser acts as Treasurer of 65 funds in the Fund Complex. Jeremy DePalma acts as the Treasurer of 82 funds and Assistant Treasurer of 65 funds in the Fund Complex. |
2 | The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at wfam.com. |
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Other information (unaudited)
BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:
Wells Fargo Municipal Cash Management Money Market Fund
Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at a Board meeting held on May 26, 2020 and May 28, 2020 (together, the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo Municipal Cash Management Money Market Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the “Sub-Adviser”), an affiliate of Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”
At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at a Board meeting held in April 2020, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing investment performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.
In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2020. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and investment performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.
After its deliberations, the Board unanimously approved the continuation of the Advisory Agreements for a one-year term and determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.
Nature, extent and quality of services
The Board received and considered various information regarding the nature, extent and quality of services provided to the Fund by Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Wells Fargo Asset Management (“WFAM”), of which Funds Management and the Sub-Adviser are a part, and a summary of investments made in the business of WFAM. The Board also received a description of Funds Management’s and the Sub-Adviser’s business continuity plans and of their approaches to data privacy and cybersecurity, and related testing. The Board also received and reviewed information about Funds Management’s role as administrator of the Fund’s liquidity risk management program, Funds Management’s approach to risk management, and Funds Management’s intermediary and vendor oversight program.
The Board also considered the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund. The Board evaluated the ability of Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory and supervisory personnel. The Board further considered the compliance programs and compliance records of Funds Management and the Sub-Adviser. In addition, the Board took into account the full range of services provided to the Fund by Funds Management and its affiliates.
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Other information (unaudited)
Fund investment performance and expenses
The Board considered the investment performance results for the Fund over various time periods ended December 31, 2019. The Board also considered more current results for various time periods ended March 31, 2020. The Board considered these results in comparison to the investment performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the investment performance of the Fund (Class I) was higher than the average investment performance of the Universe for the one-, three-, five- and ten-year periods ended December 31, 2019. The Board also noted that the investment performance of the Fund (Class I) was higher than the average investment performance of the Universe for all periods ended March 31, 2020. The Board also noted that the investment performance of the Fund was higher than its benchmark index, the Lipper Institutional Tax-Exempt Money Market Index, for all periods ended December 31, 2019.
The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were equal to or in range of the median net operating expense ratio of the expense Groups for all share classes.
The Board took into account the Fund’s investment performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.
Investment management and sub-advisory fee rates
The Board reviewed and considered the contractual fee rates payable by the Fund to Funds Management under the Management Agreement, as well as the contractual fee rates payable by the Fund to Funds Management for class-level administrative services under a Class-Level Administration Agreement, which include, among other things, class-level transfer agency and sub-transfer agency costs (collectively, the “Management Rates”). The Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Funds Management to the Sub-Adviser for investment sub-advisory services.
Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were equal to or in range of the sum of these average rates for the Fund’s expense Groups for all share classes.
The Board also received and considered information about the portion of the total management fee that was retained by Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Funds Management and not delegated to or assumed by the Sub-Adviser, and about Funds Management’s on-going oversight services. Given the affiliation between Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of fees between them.
The Board also received and considered information about the nature and extent of services offered and fee rates charged by Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing proprietary mutual funds compared with those associated with managing assets of other types of clients, including third-party sub-advised fund clients and non-mutual fund clients such as institutional separate accounts.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Funds Management under the Management Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable.
Profitability
The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of both WFAM and Wells Fargo & Co. (“Wells Fargo”) from providing services to the fund family as a whole. The Board noted that the Sub-Adviser’s profitability information with respect to providing services to the Fund and other funds in the family was subsumed in the WFAM and Wells Fargo profitability analysis.
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Other information (unaudited)
Funds Management reported on the methodologies and estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size, type and age of fund.
Based on its review, the Board did not deem the profits reported by Funds Management, WFAM or Wells Fargo from services provided to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.
Economies of scale
The Board received and considered information about the potential for Funds Management to experience economies of scale in the provision of management services to the Fund, the difficulties of calculating economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with shareholders. The Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size, and the size of the Fund in relation to such breakpoints. The Board considered that in addition to management fee breakpoints, Funds Management shares potential economies of scale from its management business in a variety of ways, including through fee waiver and expense reimbursement arrangements, services that benefit shareholders, competitive management fee rates set at the outset without regard to breakpoints, and investments in the business intended to enhance services available to shareholders.
The Board concluded that Funds Management’s arrangements with respect to the Fund, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.
Other benefits to Funds Management and the Sub-Adviser
The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that various affiliates of Funds Management may receive distribution-related fees, shareholder servicing payments and sub-transfer agency fees in respect of shares sold or held through them and services provided.
The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser, fees earned by Funds Management and the Sub-Adviser from managing a private investment vehicle for the fund family’s securities lending collateral, and commissions earned by an affiliated broker from portfolio transactions.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.
Conclusion
At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory Agreements for a one-year term and determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable.
32 | Institutional Money Market Funds
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Other information (unaudited)
LIQUIDITY RISK MANAGEMENT PROGRAM
In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), Wells Fargo Funds Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) on behalf of each of its series, including the Fund, which is reasonably designed to assess and manage the Fund’s liquidity risk. “Liquidity risk” is defined as the risk that the Fund is unable to meet redemption requests without significantly diluting remaining investors’ interests in the Fund. The Trust’s Board of Trustees (the “Board”) previously approved the designation of Wells Fargo Funds Management, LLC (“Funds Management”), the Fund’s investment manager, as the administrator of the Program, and Funds Management has established a Liquidity Risk Management Council composed of personnel from multiple departments within Funds Management and its affiliates to assist Funds Management in the implementation and on-going administration of the Program.
The Program is comprised of various components designed to support the assessment and/or management of liquidity risk, including: (1) the periodic assessment (no less frequently than annually) of certain factors that influence the Fund’s liquidity risk; (2) the periodic classification (no less frequently than monthly) of the Fund’s investments into one of four liquidity categories that reflect an estimate of their liquidity under current market conditions; (3) a 15% limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); (4) to the extent the Fund does not invest primarily in “highly liquid investments” (as defined under the Liquidity Rule), the determination of a minimum percentage of the Fund’s assets that generally will be invested in highly liquid investments (an “HLIM”); (5) if the Fund has established an HLIM, the periodic review (no less frequently than annually) of the HLIM and the adoption of policies and procedures for responding to a shortfall of the Fund’s “highly liquid investments” below its HLIM; and (6) periodic reporting to the Board.
At a meeting of the Board held on May 26 and 28, 2020, the Board received a written report (the “Report”) from Funds Management that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation. The Report covered the initial period from December 1, 2018 through December 31, 2019 (the “Reporting Period”). No significant liquidity events impacting the Fund were noted in the Report. There were no material changes to the Program during the Reporting Period. The Report concluded that the Program is operating effectively to assess and manage the Fund’s liquidity risk, and that the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund’s liquidity developments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other risks to which an investment in the Fund may be subject.
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For more information
More information about Wells Fargo Funds is available free upon request. To obtain literature, please write, visit the Fund’s website, or call:
Wells Fargo Funds
P.O. Box 219967
Kansas City, MO 64121-9967
Website: wfam.com
Individual investors: 1-800-222-8222
Retail investment professionals: 1-888-877-9275
Institutional investment professionals: 1-866-765-0778
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-260-5969 or visit the Fund’s website at wfam.com. Read the prospectus carefully before you invest or send money.
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).
This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind—including a recommendation for any specific investment, strategy, or plan.
INVESTMENT PRODUCTS: NOT FDIC INSURED ◾ NO BANK GUARANTEE ◾ MAY LOSE VALUE
© 2020 Wells Fargo & Company. All rights reserved
PAR-0820-01048 09-20
SA307/SAR307 07-20
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Semi-Annual Report
July 31, 2020
Retail Money Market Funds
∎ | Wells Fargo National Tax-Free Money Market Fund |
Beginning on January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, paper copies of the Wells Fargo Funds’ annual and semi-annual shareholder reports issued after this date will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Funds’ website, and you will be notified by mail each time a report is posted and provided with a website address to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling 1-800-222-8222 or by enrolling at wellsfargo.com/advantagedelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports; if you invest directly with the Fund, you can call 1-800-222-8222. Your election to receive reports in paper will apply to all Wells Fargo Funds held in your account with your financial intermediary or, if you are a direct investor, to all Wells Fargo Funds that you hold.
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The views expressed and any forward-looking statements are as of July 31, 2020, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Asset Management. Discussions of individual securities, or the markets generally, or any Wells Fargo Fund 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 and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.
INVESTMENT PRODUCTS: NOT FDIC INSURED ◾ NO BANK GUARANTEE ◾ MAY LOSE VALUE
Retail Money Market Funds | 1
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Letter to shareholders (unaudited)
Andrew Owen
President
Wells Fargo Funds
Dear Shareholder:
We are pleased to offer you this semi-annual report for the Wells Fargo National Tax-Free Money Market Fund for the six-month period that ended July 31, 2020. Global stock markets tumbled in February and March as governments took unprecedented measures to stop the spread of the coronavirus at the expense of short-term economic output. However, most markets rebounded from April on to offset much of the losses as central banks attempted to bolster capital markets and confidence. Fixed-income markets generally performed well, with the exception of high-yield bonds, as U.S. bonds overall achieved modest gains. U.S. and emerging market equities outperformed international developed market equities over the six-month period.
For the period, U.S. stocks, based on the S&P 500 Index,1 returned 2.42% and international stocks, as measured by the MSCI ACWI ex USA Index (Net),2 fell 4.47%. The MSCI EM Index (Net)3 gained 3.08%. For bond investors, the Bloomberg Barclays U.S. Aggregate Bond Index4 added 5.69%, the Bloomberg Barclays Global Aggregate ex-USD Index5 returned 4.29%, the Bloomberg Barclays Municipal Bond Index6 returned 1.96%, and the ICE BofA U.S. High Yield Index7 lost 0.23%.
Concerns about the coronavirus took over the market.
In February, the coronavirus became the major market focus. Fears of the virus’s impact on global growth led to expectations of increased global central bank monetary policy support. That led the 10-year U.S. Treasury yield to fall to an all-time low of 1.1% by the end of the month. Although equity markets initially shrugged off concerns about the outbreak, focusing instead on strong fourth-quarter earnings and improving business confidence in January, market sentiment turned sharply lower toward month-end. Oil prices tumbled as Russia and the Organization of the Petroleum Exporting Countries compounded a major decline in oil demand with a brutal price war, causing the price of West Texas Intermediate crude oil to plummet.
1 | The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock’s weight in the index proportionate to its market value. You cannot invest directly in an index. |
2 | The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the United States. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. You cannot invest directly in an index. |
3 | The MSCI Emerging Markets (EM) Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure equity market performance of emerging markets. You cannot invest directly in an index. |
4 | The Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. You cannot invest directly in an index. |
5 | The Bloomberg Barclays Global Aggregate ex-USD Index is an unmanaged index that provides a broad-based measure of the global investment-grade fixed-income markets excluding the U.S.-dollar-denominated debt market. You cannot invest directly in an index. |
6 | 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. |
7 | The ICE BofA U.S. High Yield Index is a market-capitalization-weighted index of domestic and Yankee high-yield bonds. The index tracks the performance of high-yield securities traded in the U.S. bond market. You cannot invest directly in an index. Copyright 2020. ICE Data Indices, LLC. All rights reserved. |
2 | Retail Money Market Funds
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Letter to shareholders (unaudited)
The global spread of the coronavirus led many countries to clamp down on social and business-related activity in order to contain the virus from causing even greater devastation and overwhelming the health care system. This abrupt stoppage of economic activity led to the sharp deceleration of global output, sending economies into a deep contraction. Central bank responses were swift, as they slashed interest rates and expanded quantitative easing programs to restore liquidity and confidence to the markets. In the U.S., the Federal Reserve launched several lending programs, funding investment-grade bonds, money market mutual funds, and commercial paper while purchasing Treasuries, mortgage-backed securities, and overnight repurchase agreements. Meanwhile, stock markets tumbled quickly into a bear market, ending the longest bull stock market in U.S. history.
Markets rebounded strongly in April, fueled by unprecedented government and central bank stimulus measures. The U.S. economy contracted by an annualized 5.0% pace in the first quarter, with 30 million new unemployment insurance claims in six weeks. In the eurozone, first-quarter real gross domestic product (GDP) shrank 3.8%, with the composite April Flash Purchasing Managers’ Index, a monthly survey of purchasing managers, falling to an all-time low of 13.5. The European Central Bank expanded its quantitative easing to include the purchase of additional government bonds of countries with the greatest virus-related need, including Italy and Spain. China’s first-quarter GDP fell by 6.8% year over year. However, retail sales, production, and investment showed signs of recovery. Extreme oil-price volatility continued as global supply far exceeded demand.
In May, the equity market rebound continued, with widespread strong monthly gains. Investors regained confidence on reports of early signs of success in human trials of a coronavirus vaccine. Growth stocks continued to outperform value stocks while returns on global government bonds were generally flat. In the U.S., a gap grew between the stock market rebound and devastating economic data points, including an April unemployment rate of 14.7%, the highest level since World War II. Purchasing managers’ indices continued to reflect weakening activity in May in both the manufacturing and services sectors. U.S. corporate earnings reports indicated a 14% year-over-year contraction in earnings from the first quarter of 2019. However, high demand for technology, driven by remote activity, helped maintain robust information technology sector earnings, which helped drive powerful well-known technology stocks higher.
Financial markets posted widely positive returns in June despite ongoing economic weakness and high levels of uncertainty on the containment of the coronavirus and the timing of an effective vaccine. There were hopeful signs as economies reopened, with both U.S. and U.K. retail sales rebounding substantially in May. However, year over year, sales remained depressed. Vitally important to market sentiment was the ongoing commitment by central banks globally to do all they could to provide economic support through liquidity and low borrowing costs. U.S. economic activity was aided by one-time $1,200 stimulus checks and $600 bonus weekly unemployment benefits due to expire at the end of July. However, unemployment remained in the double digits, easing somewhat from 14.7% in April to 11.1% in June. During June, numerous states reported alarming increases in coronavirus cases. China’s economic recovery picked up momentum in June, though it remained far from a full recovery.
July was a broadly positive month for both global equities and fixed income. However, economic data and a resurgence of coronavirus cases pointed to the vulnerability of the global economy and the ongoing imperative to regain control of the pandemic. Second-quarter GDP shrank by 9.5% and 12.1% in the U.S. and eurozone, respectively, from the previous quarter. In contrast, China reported a 3.2% year-over-year expansion in its second-quarter GDP. U.S. unemployment remained historically high despite adding 1.8 million jobs in July, with a double-digit jobless rate persisting. However, manufacturing activity grew in both the U.S. and eurozone. In Asia, while China’s manufacturing sector
“The global spread of the coronavirus led many countries to clamp down on social and business-related activity in order to contain the virus from causing even greater devastation and overwhelming the health care system.”
“Financial markets posted widely positive returns in June despite ongoing economic weakness and high levels of uncertainty on the containment of the coronavirus and the timing of an effective vaccine.”
Retail Money Market Funds | 3
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Letter to shareholders (unaudited)
|
For further information about your Fund, contact your investment professional, visit our website at wfam.com, or call us directly at 1-800-222-8222. |
continued to expand, activity in Japan and South Korea contracted. In July, a rising concern was the rapid and broad reemergence of coronavirus infections. Despite the ongoing promise of positive early-stage vaccine trial results, economic activity could be held back by the continued spread of the virus and the end of a widely received $600-a-week bonus unemployment benefit in late July.
Don’t let short-term uncertainty derail long-term investment goals.
Periods of investment uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Funds offers more than 100 mutual funds spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.
Thank you for choosing to invest with Wells Fargo Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.
Sincerely,
Andrew Owen
President
Wells Fargo Funds
4 | Retail Money Market Funds
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Table of Contents
Performance highlights (unaudited)
Investment objective
The Fund seeks current income exempt from federal income tax, while preserving capital and liquidity.
Manager
Wells Fargo Funds Management, LLC
Subadviser
Wells Capital Management Incorporated
Portfolio managers
James Randazzo
Jeffrey L. Weaver, CFA®‡
Average annual total returns (%) as of July 31, 2020
Expense ratios1 (%) | ||||||||||||||||||||||
Inception date | 1 year | 5 year | 10 year | Gross | Net2 | |||||||||||||||||
Class A (NWMXX) | 7-28-2003 | 0.63 | 0.51 | 0.26 | 0.66 | 0.60 | ||||||||||||||||
Administrator Class (WNTXX) | 4-8-2005 | 0.86 | 0.76 | 0.39 | 0.39 | 0.30 | ||||||||||||||||
Premier Class (WFNXX) | 11-8-1999 | 0.95 | 0.84 | 0.44 | 0.27 | 0.20 | ||||||||||||||||
Service Class (MMIXX) | 8-3-1993 | 0.73 | 0.63 | 0.33 | 0.56 | 0.45 |
Yield summary (%) as of July 31, 20202
Class A | Administrator Class | Premier Class | Service Class | |||||||||||
7-day current yield | 0.01 | 0.03 | 0.12 | 0.01 | ||||||||||
7-day compound yield | 0.01 | 0.03 | 0.12 | 0.01 | ||||||||||
30-day simple yield | 0.01 | 0.03 | 0.11 | 0.01 | ||||||||||
30-day compound yield | 0.01 | 0.03 | 0.11 | 0.01 |
Figures quoted represent past performance, which is no guarantee of future results, and do not reflect taxes that a shareholder may pay on an investment in a fund. Investment returns will fluctuate. The Fund’s yield figures more closely reflect the current earnings of the Fund than the total return figures. Current performance may be lower or higher than the performance data quoted, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s website, wfam.com.
Money market funds are sold without a front-end sales charge or contingent deferred sales charge. Other fees and expenses apply to an investment in the Fund and are described in the Fund’s current prospectus.
For retail money market funds: You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
Please see footnotes on page 7.
6 | Retail Money Market Funds
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Performance highlights (unaudited)
Revenue source distribution as of July 31, 20203 |
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Effective maturity distribution as of July 31, 20203 | ||
![]() |
Weighted average maturity as of July 31, 20204 |
43 days |
Weighted average life as of July 31, 20205 |
45 days |
‡ | CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. |
1 | Reflects the expense ratios as stated in the most recent prospectuses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report. |
2 | The manager has contractually committed through May 31, 2021, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.60% for Class A, 0.30% for Administrator Class, 0.20% for Premier Class, and 0.45% for Service Class. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses (if any), and extraordinary expenses are excluded from the expense caps. Prior to or after the commitment expiration date, the caps may be increased or the commitment to maintain the caps may be terminated only with the approval of the Board of Trustees. Without these caps, the Fund’s returns would have been lower. Without waived fees and/or reimbursed expenses, the Fund’s 7-day current yield would have been -0.31%, -0.04%, 0.07%, and -0.21% for Class A, Administrator Class, Premier Class, and Service Class, respectively. 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 prospectuses. |
3 | Amounts are calculated based on the total investments of the Fund. These amounts are subject to change and may have changed since the date specified. |
4 | Weighted Average Maturity (WAM): WAM is an average of the effective maturities of all securities held in the portfolio, weighted by each security’s percentage of total investments. The maturity of a portfolio security is the period remaining until the date on which the principal amount is unconditionally required to be paid, or in the case of a security called for redemption, the date on which the redemption payment is unconditionally required to be made. WAM calculations allow for the maturities of certain securities with demand features or periodic interest rate resets to be shortened. WAM is a way to measure a fund’s sensitivity to potential interest rate changes. WAM is subject to change and may have changed since the date specified. |
5 | Weighted Average Life (WAL): WAL is an average of the final maturities of all securities held in the portfolio, weighted by their percentage of total investments. The maturity of a portfolio security is the period remaining until the date on which the principal amount is unconditionally required to be paid, or in the case of a security called for redemption, the date on which the redemption payment is unconditionally required to be made. In contrast to WAM, the calculation of WAL allows for the maturities of certain securities with demand features to be shortened, but not the periodic interest rate resets. WAL is a way to measure a fund’s potential sensitivity to credit spread changes. WAL is subject to change and may have changed since the date specified. |
Retail Money Market Funds | 7
Table of Contents
As a shareholder of the Fund, you incur ongoing costs, including management fees, shareholder servicing fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from February 1, 2020 to July 31, 2020.
Actual expenses
The “Actual” line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Actual” line under the heading entitled “Expenses paid during period” for your applicable class of shares to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The “Hypothetical” line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds.
Beginning account value 2-1-2020 | Ending account value 7-31-2020 | Expenses paid during the period1 | Annualized net expense ratio | |||||||||||||
Class A | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,002.47 | $ | 2.14 | 0.43 | % | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.73 | $ | 2.16 | 0.43 | % | ||||||||
Administrator Class | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,003.23 | $ | 1.44 | 0.29 | % | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.42 | $ | 1.46 | 0.29 | % | ||||||||
Premier Class | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,003.66 | $ | 1.00 | 0.20 | % | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.87 | $ | 1.01 | 0.20 | % | ||||||||
Service Class | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,002.78 | $ | 1.89 | 0.38 | % | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.97 | $ | 1.91 | 0.38 | % |
1 | Expenses paid is equal to the annualized net expense ratio of each class multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one-half-year period). |
8 | Retail Money Market Funds
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Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Municipal Obligations: 97.78% |
| |||||||||||||||
Alabama: 0.73% |
| |||||||||||||||
Variable Rate Demand Notes ø: 0.73% | ||||||||||||||||
Alabama Tender Option Bond Trust Receipts/Floater Certificates Series 2018-XL0098 (Utilities Revenue, Royal Bank of Canada LIQ) 144A | 0.27 | % | 12-1-2022 | $ | 4,500,000 | $ | 4,500,000 | |||||||||
Mobile AL Downtown RDA Gulf Opportunity Zone Austal USA LLC Project Series B (Industrial Development Revenue, Citibank NA LOC) 144A | 0.20 | 5-1-2041 | 3,500,000 | 3,500,000 | ||||||||||||
8,000,000 | ||||||||||||||||
|
| |||||||||||||||
Arizona: 2.81% |
| |||||||||||||||
Variable Rate Demand Notes ø: 2.81% | ||||||||||||||||
Arizona Tender Option Bond Trust Receipts/Floater Certificates Series 2018-XF2537 (Utilities Revenue, Barclays Bank plc LOC, Barclays Bank plc LIQ) 144A | 0.20 | 12-1-2037 | 3,215,000 | 3,215,000 | ||||||||||||
Arizona Tender Option Bond Trust Receipts/Floater Certificates Series 2020-XF2862 (Education Revenue, Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ) 144A | 0.36 | 12-15-2047 | 13,535,000 | 13,535,000 | ||||||||||||
Mesa AZ Utility System Clipper Tax-Exempt Certificate Trust Series 2009-33 (Miscellaneous Revenue, State Street Bank & Trust Company LIQ) | 0.19 | 7-1-2024 | 10,055,000 | 10,055,000 | ||||||||||||
Phoenix AZ IDA Various Mayo Clinic Series A (Health Revenue, Bank of America NA SPA) | 0.12 | 11-15-2052 | 4,000,000 | 4,000,000 | ||||||||||||
30,805,000 | ||||||||||||||||
|
| |||||||||||||||
California: 11.09% |
| |||||||||||||||
Other Municipal Debt: 3.72% | ||||||||||||||||
Los Angeles CA Tax & Revenue Anticipation Notes (GO Revenue) | 4.00 | 6-24-2021 | 14,500,000 | 14,975,880 | ||||||||||||
Los Angeles CA Tax & Revenue Anticipation Notes Series A (GO Revenue) | 4.00 | 6-30-2021 | 19,500,000 | 20,155,632 | ||||||||||||
Napa Valley CA Unified School District Tax & Revenue Anticipation Notes (GO Revenue) | 4.00 | 2-26-2021 | 5,500,000 | 5,614,920 | ||||||||||||
40,746,432 | ||||||||||||||||
|
| |||||||||||||||
Variable Rate Demand Notes ø: 7.37% | ||||||||||||||||
California Series A-5 (GO Revenue) | 0.20 | 8-12-2020 | 5,500,000 | 5,500,000 | ||||||||||||
California Statewide Community Development Authority Uptown Newport Apartments Series 2017 AA & BB (Housing Revenue, East West Bank LOC) | 0.21 | 3-1-2057 | 575,000 | 575,000 | ||||||||||||
California Tender Option Bond Trust Receipts/Floater Certificates Series 2015-ZF0179 (GO Revenue, JPMorgan Chase & Company LIQ) 144A | 0.20 | 8-1-2022 | 2,050,000 | 2,050,000 | ||||||||||||
California Tender Option Bond Trust Receipts/Floater Certificates Series 2017-XF2466 (GO Revenue, BAM Insured, Citibank NA LIQ) 144A | 0.20 | 8-1-2024 | 8,500,000 | 8,500,000 | ||||||||||||
California Tender Option Bond Trust Receipts/Floater Certificates Series 2018-XG0188 (GO Revenue, Royal Bank of Canada LIQ) 144A | 0.20 | 2-1-2026 | 1,600,000 | 1,600,000 | ||||||||||||
California Tender Option Bond Trust Receipts/Floater Certificates Series 2018-ZP0159 (GO Revenue, JPMorgan Chase & Company LIQ) 144A | 0.18 | 8-1-2022 | 4,500,000 | 4,500,000 | ||||||||||||
California Tender Option Bond Trust Receipts/Floater Certificates Series 2019-XF2830 (GO Revenue, Mizuho Capital Markets LLC LIQ) 144A | 0.46 | 10-1-2034 | 3,460,000 | 3,460,000 | ||||||||||||
California Tender Option Bond Trust Receipts/Floater Certificates Series 2020-YX1142 (Tax Revenue, Barclays Bank plc LOC, Barclays Bank plc LIQ) 144A | 0.26 | 10-1-2049 | 1,555,000 | 1,555,000 | ||||||||||||
Irvine CA Improvement Bond Act of 1915 Reassessment District #85-7 Series A (Miscellaneous Revenue, Bank of Tokyo-Mitsubishi LOC) | 0.10 | 9-2-2032 | 7,100,000 | 7,100,000 | ||||||||||||
Los Angeles CA Department of Water & Power Series B (Water & Sewer Revenue, Citibank NA SPA) | 0.13 | 7-1-2035 | 2,500,000 | 2,500,000 |
The accompanying notes are an integral part of these financial statements.
Retail Money Market Funds | 9
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Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Variable Rate Demand Notes ø (continued) | ||||||||||||||||
Los Angeles CA Municipal Improvement Bond Series A-3 (GO Revenue) | 0.20 | % | 8-6-2020 | $ | 1,000,000 | $ | 1,000,000 | |||||||||
Mizuho Floater/Residual Interest Bond Series 2019-MIZ9007 (Housing Revenue, Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ) 144A | 0.41 | 1-1-2040 | 24,000,000 | 24,000,000 | ||||||||||||
Mizuho Tender Option Bond Trust Receipts/Floater Certificates Series 2019-MIZ9002 (Tax Revenue, Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ) 144A | 0.38 | 3-1-2021 | 17,000,000 | 17,000,000 | ||||||||||||
Sacramento CA Transportation Authority Sales Tax Refunding Bond Series A (Tax Revenue, Sumitomo Mitsui Banking LOC) | 0.17 | 10-1-2038 | 1,500,000 | 1,500,000 | ||||||||||||
80,840,000 | ||||||||||||||||
|
| |||||||||||||||
Colorado: 1.13% |
| |||||||||||||||
Other Municipal Debt: 0.43% | ||||||||||||||||
Colorado General Fund Tax & Revenue Anticipation Notes (GO Revenue) %% | 4.00 | 6-25-2021 | 4,500,000 | 4,652,055 | ||||||||||||
|
| |||||||||||||||
Variable Rate Demand Notes ø: 0.70% | ||||||||||||||||
Colorado ECFA Variable Nature Conservancy Project Series 2012 (Miscellaneous Revenue) | 0.21 | 7-1-2033 | 3,815,000 | 3,815,000 | ||||||||||||
Colorado Tender Option Bond Trust Receipts/Floater Certificates Series 2020-XX1130 (Health Revenue, Barclays Bank plc LIQ) 144A | 0.20 | 8-1-2044 | 3,880,000 | 3,880,000 | ||||||||||||
7,695,000 | ||||||||||||||||
|
| |||||||||||||||
Connecticut: 2.46% |
| |||||||||||||||
Other Municipal Debt: 1.79% | ||||||||||||||||
New London CT BAN (GO Revenue) | 1.50 | 3-18-2021 | 19,520,000 | 19,616,412 | ||||||||||||
|
| |||||||||||||||
Variable Rate Demand Notes ø: 0.67% | ||||||||||||||||
Connecticut Residual Interest Bond Floater Trust Series 2017-016 (Miscellaneous Revenue, Barclays Bank plc LOC, Barclays Bank plc LIQ) 144A | 0.20 | 6-1-2037 | 2,800,000 | 2,800,000 | ||||||||||||
Connecticut Tender Option Bond Trust Receipts/Floater Certificates Series 2017-YX1077 (Tax Revenue, Barclays Bank plc LIQ) 144A | 0.24 | 1-1-2036 | 4,550,000 | 4,550,000 | ||||||||||||
7,350,000 | ||||||||||||||||
|
| |||||||||||||||
District of Columbia: 1.08% |
| |||||||||||||||
Variable Rate Demand Notes ø: 1.08% | ||||||||||||||||
District of Columbia Community Connection Real Estate Foundation Issue Series 2007-A (Miscellaneous Revenue, Manufacturers & Traders LOC) | 0.21 | 7-1-2032 | 2,920,000 | 2,920,000 | ||||||||||||
District of Columbia Tender Option Bond Trust Receipts/Floater Certificates Series 2018-XF0621 (Water & Sewer Revenue, Royal Bank of Canada LIQ) 144A | 0.19 | 4-1-2026 | 4,000,000 | 4,000,000 | ||||||||||||
District of Columbia Tender Option Bond Trust Receipts/Floater Certificates Series 2019-ZF2784 (Housing Revenue, FHA Insured, Morgan Stanley Bank LIQ) 144A | 0.20 | 9-1-2039 | 2,800,000 | 2,800,000 | ||||||||||||
District of Columbia Tender Option Bond Trust Receipts/Floater Certificates Series 2019-ZF2785 (Housing Revenue, FHA Insured, Morgan Stanley Bank LIQ) 144A | 0.20 | 9-1-2039 | 2,070,000 | 2,070,000 | ||||||||||||
11,790,000 | ||||||||||||||||
|
| |||||||||||||||
Florida: 10.72% |
| |||||||||||||||
Other Municipal Debt: 2.02% | ||||||||||||||||
Broward County Main Courthouse Project Series A (Tax Revenue) | 5.25 | 10-1-2020 | 22,000,000 | 22,154,933 | ||||||||||||
|
|
The accompanying notes are an integral part of these financial statements.
10 | Retail Money Market Funds
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Variable Rate Demand Notes ø: 8.70% | ||||||||||||||||
Florida Local Government Financial Commission (GO Revenue) | 0.19 | % | 9-1-2020 | $ | 9,000,000 | $ | 9,000,000 | |||||||||
Florida Tender Option Bond Trust Receipts/Floater Certificates Series 2017-TX1073 (Housing Revenue, GNMA/FNMA/FHLMC Insured, Barclays Bank plc LIQ) 144A | 0.26 | 7-1-2037 | 10,695,000 | 10,695,000 | ||||||||||||
Florida Tender Option Bond Trust Receipts/Floater Certificates Series 2017-XF2517 (Health Revenue, Morgan Stanley Bank LIQ) 144A | 0.36 | 8-15-2047 | 10,130,000 | 10,130,000 | ||||||||||||
Florida Tender Option Bond Trust Receipts/Floater Certificates Series 2018-XF2523 (Health Revenue, Barclays Bank plc LIQ) 144A | 0.26 | 8-15-2047 | 5,090,000 | 5,090,000 | ||||||||||||
Florida Tender Option Bond Trust Receipts/Floater Certificates Series 2018-XG0173 (Health Revenue, Credit Suisse LIQ) 144A | 0.26 | 10-1-2025 | 11,000,000 | 11,000,000 | ||||||||||||
Florida Tender Option Bond Trust Receipts/Floater Certificates Series 2020-XX1136 (Transportation Revenue, Barclays Bank plc LOC, Barclays Bank plc LIQ) 144A | 0.20 | 7-1-2049 | 2,375,000 | 2,375,000 | ||||||||||||
Highlands County Health Facilities Authority Adventist Health System Series A-2 (Health Revenue) | 0.16 | 11-15-2037 | 8,500,000 | 8,500,000 | ||||||||||||
Highlands County Health Facilities Authority Adventist Health System Sunbelt Obligated Group Series 2012 I-2 (Health Revenue, Adventist Health System) | 0.14 | 11-15-2032 | 600,000 | 600,000 | ||||||||||||
Highlands County HFA Adventist Health System Series I5 (Health Revenue) | 0.16 | 11-15-2035 | 13,050,000 | 13,050,000 | ||||||||||||
Hillsborough County FL IDA BayCare Health System Series C (Health Revenue, TD Bank NA LOC) | 0.14 | 11-1-2038 | 8,500,000 | 8,500,000 | ||||||||||||
Orange County Health Facilities Authority Lakeside Behavioral Healthcare Incorporated Project (Health Revenue, Truist Bank LOC) | 0.18 | 7-1-2027 | 1,430,000 | 1,430,000 | ||||||||||||
Saint Lucie County Florida Power & Light Company (Industrial Development Revenue) | 0.19 | 9-1-2028 | 9,685,000 | 9,685,000 | ||||||||||||
Seminole County Tender Option Bond Trust Receipts/Floater Certificates Series 2016-ZF0444 (Tax Revenue, National Insured, JPMorgan Chase & Company LIQ) 144A | 0.31 | 4-1-2027 | 5,250,000 | 5,250,000 | ||||||||||||
95,305,000 | ||||||||||||||||
|
| |||||||||||||||
Georgia: 0.74% |
| |||||||||||||||
Variable Rate Demand Notes ø: 0.74% | ||||||||||||||||
Georgia Tender Option Bond Trust Receipts/Floater Certificates Series 2017-ZF0589 (Education Revenue, Bank of America NA LIQ) 144A | 0.20 | 6-1-2049 | 3,750,000 | 3,750,000 | ||||||||||||
Georgia Tender Option Bond Trust Receipts/Floater Certificates Series 2019-XF2847 (Education Revenue, Barclays Bank plc LOC, Barclays Bank plc LIQ) 144A | 0.20 | 1-1-2056 | 4,315,000 | 4,315,000 | ||||||||||||
8,065,000 | ||||||||||||||||
|
| |||||||||||||||
Idaho: 0.46% |
| |||||||||||||||
Variable Rate Demand Note ø: 0.46% | ||||||||||||||||
Idaho Health Facilities Authority Hospital CHE Trinity Health Credit Group Series D (Health Revenue) | 0.70 | 12-1-2048 | 5,000,000 | 5,000,000 | ||||||||||||
|
| |||||||||||||||
Illinois: 9.42% |
| |||||||||||||||
Variable Rate Demand Notes ø: 9.42% | ||||||||||||||||
Chicago IL Education Marine Project Series 1984 (Industrial Development Revenue, FHLB LOC) | 0.50 | 7-1-2023 | 4,200,000 | 4,200,000 | ||||||||||||
Illinois Educational Facilities Authority Aurora University (Education Revenue, BMO Harris Bank NA LOC) | 0.16 | 3-1-2032 | 2,500,000 | 2,500,000 | ||||||||||||
Illinois Finance Authority Bradley University Series B (Education Revenue, PNC Bank NA LOC) | 0.16 | 4-1-2038 | 11,100,000 | 11,100,000 | ||||||||||||
Illinois Tender Option Bond Trust Receipts/Floater Certificates Series 2015-XF2202 (Transportation Revenue, TD Bank NA LIQ) 144A | 0.20 | 1-1-2037 | 1,140,000 | 1,140,000 |
The accompanying notes are an integral part of these financial statements.
Retail Money Market Funds | 11
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Variable Rate Demand Notes ø (continued) | ||||||||||||||||
Illinois Tender Option Bond Trust Receipts/Floater Certificates Series 2015-ZM0120 (Transportation Revenue, Royal Bank of Canada LIQ) 144A | 0.37 | % | 7-1-2023 | $ | 3,100,000 | $ | 3,100,000 | |||||||||
Illinois Tender Option Bond Trust Receipts/Floater Certificates Series 2017-XF2406 (Tax Revenue, Barclays Bank plc LOC, Barclays Bank plc LIQ) 144A | 0.34 | 6-15-2031 | 7,055,000 | 7,055,000 | ||||||||||||
Illinois Tender Option Bond Trust Receipts/Floater Certificates Series 2017-XG0108 (Tax Revenue, Barclays Bank plc LOC, Barclays Bank plc LIQ) 144A | 0.31 | 4-1-2046 | 8,735,000 | 8,735,000 | ||||||||||||
Illinois Tender Option Bond Trust Receipts/Floater Certificates Series 2018-XF0603 (Tax Revenue, Royal Bank of Canada LIQ) 144A | 0.42 | 1-1-2026 | 13,615,000 | 13,615,000 | ||||||||||||
Illinois Tender Option Bond Trust Receipts/Floater Certificates Series 2018-XF0722 (Tax Revenue, Royal Bank of Canada LIQ) 144A | 0.42 | 7-1-2026 | 7,900,000 | 7,900,000 | ||||||||||||
Illinois Tender Option Bond Trust Receipts/Floater Certificates Series 2018-XF2547 (Tax Revenue, Barclays Bank plc LOC, Barclays Bank plc LIQ) 144A | 0.34 | 6-15-2031 | 4,355,000 | 4,355,000 | ||||||||||||
Illinois Tender Option Bond Trust Receipts/Floater Certificates Series 2018-XM0683 (Tax Revenue, Bank of America NA LIQ) 144A | 0.43 | 1-1-2048 | 8,340,000 | 8,340,000 | ||||||||||||
Illinois Tender Option Bond Trust Receipts/Floater Certificates Series 2018-XX1081 (Miscellaneous Revenue, Barclays Bank plc LOC, Barclays Bank plc LIQ) 144A | 0.22 | 11-1-2023 | 6,000,000 | 6,000,000 | ||||||||||||
Illinois Tender Option Bond Trust Receipts/Floater Certificates Series 2019-XF0779 (Tax Revenue, BAM Insured, TD Bank NA LIQ) 144A | 0.21 | 1-1-2048 | 16,000,000 | 16,000,000 | ||||||||||||
Illinois Tender Option Bond Trust Receipts/Floater Certificates Series 2020-YX1119 (Housing Revenue, GNMA/FNMA/FHLMC Insured, Barclays Bank plc LIQ) 144A | 0.21 | 4-1-2041 | 6,060,000 | 6,060,000 | ||||||||||||
Quad Cities Illinois Regional EDA Augustana College Series 2005 (Education Revenue, BMO Harris Bank NA LOC) | 0.16 | 10-1-2035 | 3,200,000 | 3,200,000 | ||||||||||||
103,300,000 | ||||||||||||||||
|
| |||||||||||||||
Indiana: 1.82% |
| |||||||||||||||
Variable Rate Demand Notes ø: 1.82% | ||||||||||||||||
Indiana Certificate of Participation Clipper Tax-Exempt Certificate Trust Series 2009-34 (Miscellaneous Revenue, State Street Bank & Trust Company LIQ) | 0.20 | 7-1-2023 | 9,915,000 | 9,915,000 | ||||||||||||
Indiana Finance Authority Duke Energy Indiana Incorporated Series 2009A-4 (Industrial Development Revenue, Sumitomo Mitsui Banking LOC) | 0.17 | 12-1-2039 | 7,155,000 | 7,155,000 | ||||||||||||
Indiana Finance Authority Stadium Project Series A-5 (Miscellaneous Revenue, U.S. Bank NA SPA) | 0.15 | 2-1-2035 | 1,000,000 | 1,000,000 | ||||||||||||
Indiana Tender Option Bond Trust Receipts/Certificates Series 2019-XF0756 (Miscellaneous Revenue, Bank of America NA LIQ) 144A | 0.32 | 2-1-2049 | 1,875,000 | 1,875,000 | ||||||||||||
19,945,000 | ||||||||||||||||
|
| |||||||||||||||
Iowa: 3.81% |
| |||||||||||||||
Variable Rate Demand Notes ø: 3.81% | ||||||||||||||||
Iowa Finance Authority Midwestern EDA CJ Bio America Incorporated Project (Industrial Development Revenue, Korea Development Bank LOC) | 0.37 | 4-1-2022 | 33,215,000 | 33,215,000 | ||||||||||||
Iowa Finance Authority Mortgage Securities Program Series D (Housing Revenue, GNMA/FNMA/FHLMC Insured, FNMA LIQ, FHLB SPA) | 0.14 | 1-1-2047 | 5,500,000 | 5,500,000 | ||||||||||||
Iowa Finance Authority Single Family Mortgage Bonds Series B (Housing Revenue, GNMA/FNMA/FHLMC Insured, TD Bank NA SPA) | 0.15 | 7-1-2049 | 3,000,000 | 3,000,000 | ||||||||||||
41,715,000 | ||||||||||||||||
|
| |||||||||||||||
Kansas: 0.91% |
| |||||||||||||||
Other Municipal Debt : 0.91% | ||||||||||||||||
Leawood KS Series 1 (GO Revenue) ## | 2.50 | 9-1-2020 | 10,000,000 | 10,012,849 | ||||||||||||
|
|
The accompanying notes are an integral part of these financial statements.
12 | Retail Money Market Funds
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Kentucky: 0.50% |
| |||||||||||||||
Variable Rate Demand Note ø: 0.50% | ||||||||||||||||
Kentucky Tender Option Bond Trust Receipts/Floater Certificates Series 2018-XG0161 (Tax Revenue, Bank of America NA LOC, AGM Insured, Bank of America NA LIQ) 144A | 0.19 | % | 12-1-2041 | $ | 5,460,000 | $ | 5,460,000 | |||||||||
|
| |||||||||||||||
Louisiana: 2.22% |
| |||||||||||||||
Other Municipal Debt: 1.95% | ||||||||||||||||
Louisiana Series A (GO Revenue) | 5.00 | 9-1-2020 | 21,310,000 | 21,380,218 | ||||||||||||
|
| |||||||||||||||
Variable Rate Demand Note ø: 0.27% | ||||||||||||||||
Louisiana Tender Option Bond Trust Receipts/Floater Certificates Series 2019-XM0735 (Water & Sewer Revenue, Bank of America NA LOC, Bank of America NA LIQ) 144A | 0.21 | 12-1-2045 | 3,000,000 | 3,000,000 | ||||||||||||
|
| |||||||||||||||
Maryland: 0.30% |
| |||||||||||||||
Variable Rate Demand Note ø: 0.30% | ||||||||||||||||
Maryland Tender Option Bond Trust Receipts/Floater Certificates Series 2018-XF0605 (Miscellaneous Revenue, Bank of America NA LIQ) 144A | 0.21 | 5-1-2047 | 3,300,000 | 3,300,000 | ||||||||||||
|
| |||||||||||||||
Massachusetts: 0.89% |
| |||||||||||||||
Variable Rate Demand Notes ø: 0.89% | ||||||||||||||||
Massachusetts HEFA Partners Healthcare Systems Series F3 (Health Revenue, TD Bank NA LOC) | 0.14 | 7-1-2040 | 875,000 | 875,000 | ||||||||||||
Massachusetts Tender Option Bond Trust Receipts/Floater Certificates Series 2018-XF2655 (Health Revenue, Citibank NA LIQ) 144A | 0.17 | 7-1-2024 | 4,740,000 | 4,740,000 | ||||||||||||
Massachusetts Tender Option Bond Trust Receipts/Floater Certificates Series 2018-XF2692 (Education Revenue, Citibank NA LIQ) 144A | 0.18 | 7-1-2025 | 4,190,000 | 4,190,000 | ||||||||||||
9,805,000 | ||||||||||||||||
|
| |||||||||||||||
Michigan: 3.08% |
| |||||||||||||||
Other Municipal Debt: 1.90% | ||||||||||||||||
Michigan Finance Auhority State Aid Series A-2 (Miscellaneous Revenue, JPMorgan Chase & Company LOC) %% | 4.00 | 8-20-2021 | 20,000,000 | 20,748,000 | ||||||||||||
|
| |||||||||||||||
Variable Rate Demand Notes ø: 1.18% | ||||||||||||||||
Michigan Housing Development Authority Series D (Housing Revenue, Industrial & Commercial Bank of China Limited SPA) | 0.24 | 6-1-2030 | 1,845,000 | 1,845,000 | ||||||||||||
RBC Municipal Products Incorporated Trust Series E-127 (Education Revenue, Royal Bank of Canada LOC, Royal Bank of Canada LIQ) 144A | 0.19 | 12-4-2020 | 1,950,000 | 1,950,000 | ||||||||||||
Regents of the University of MIchigan Series 2008B (Education Revenue) | 0.15 | 4-1-2028 | 305,000 | 305,000 | ||||||||||||
St. Joseph MI Hospital Finance Authority Lakeland Hospital Niles & St. Joseph Obligated Group Series 2002 (Health Revenue, AGM Insured, JPMorgan Chase & Company SPA) | 0.26 | 1-1-2032 | 8,855,000 | 8,855,000 | ||||||||||||
12,955,000 | ||||||||||||||||
|
| |||||||||||||||
Minnesota: 1.44% |
| |||||||||||||||
Variable Rate Demand Notes ø: 1.44% | ||||||||||||||||
Burnsville MN Bridgeway Apartments Project Series 2003 (Housing Revenue, FNMA LOC, FNMA LIQ) | 0.24 | 10-15-2033 | 2,375,000 | 2,375,000 | ||||||||||||
Forest Lake MN Kilkenny Court Apartments Project Series 2008 (Housing Revenue, FNMA LOC, FNMA LIQ) | 0.25 | 8-15-2038 | 4,415,000 | 4,415,000 | ||||||||||||
Minneapolis & St. Paul MN Housing & RDA Allina Health Systems Series B-1 (Health Revenue, JPMorgan Chase & Company LOC) | 0.14 | 11-15-2035 | 3,500,000 | 3,500,000 |
The accompanying notes are an integral part of these financial statements.
Retail Money Market Funds | 13
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Variable Rate Demand Notes ø (continued) | ||||||||||||||||
Minnesota HEFAR Concordia University Series 6Q (Education Revenue, U.S. Bank NA LOC) | 0.17 | % | 4-1-2037 | $ | 200,000 | $ | 200,000 | |||||||||
Oak Park Heights MN Boutwells Landing Project Series 2005 (Housing Revenue, FHLMC LIQ) | 0.15 | 11-1-2035 | 2,455,000 | 2,455,000 | ||||||||||||
Plymouth MN Lancaster Village Apartments Project Series 2001 (Housing Revenue, FNMA LOC, FNMA LIQ) | 0.24 | 9-15-2031 | 2,865,000 | 2,865,000 | ||||||||||||
15,810,000 | ||||||||||||||||
|
| |||||||||||||||
Mississippi: 0.32% |
| |||||||||||||||
Variable Rate Demand Note ø: 0.32% | ||||||||||||||||
Mississippi Business Finance Commission Gulf Opportunity Zone Chevron USA Incorporated Project Series D (Industrial Development Revenue) | 0.14 | 12-1-2030 | 3,500,000 | 3,500,000 | ||||||||||||
|
| |||||||||||||||
Missouri: 1.95% |
| |||||||||||||||
Variable Rate Demand Notes ø: 1.95% | ||||||||||||||||
Missouri Tender Option Bond Trust Receipts/Floater Certificates Series 2015-XF2198 (Water & Sewer Revenue, Citibank NA LIQ) 144A | 0.19 | 5-1-2023 | 2,670,000 | 2,670,000 | ||||||||||||
RBC Municipal Products Incorporated (Health Revenue, Royal Bank of Canada LOC, Royal Bank of Canada LIQ) 144A | 0.23 | 9-1-2039 | 11,200,000 | 11,200,000 | ||||||||||||
St. Louis MO Sewer District Wastewater System Series 2013-B (Water & Sewer Revenue, Morgan Stanley Bank LIQ) 144A | 0.19 | 5-1-2043 | 7,500,000 | 7,500,000 | ||||||||||||
21,370,000 | ||||||||||||||||
|
| |||||||||||||||
Nebraska: 0.96% |
| |||||||||||||||
Variable Rate Demand Note ø: 0.96% | ||||||||||||||||
Nebraska Investment Finance Authority MFHR Apple Creek Associates Project Series 1985-A (Housing Revenue, Northern Trust Company LOC) | 0.70 | 9-1-2031 | 10,500,000 | 10,500,000 | ||||||||||||
|
| |||||||||||||||
Nevada: 1.04% |
| |||||||||||||||
Variable Rate Demand Notes ø: 1.04% | ||||||||||||||||
Nevada Tender Option Bond Trust Receipts/Floater Certificates Series 2018-ZM0634 (GO Revenue, Royal Bank of Canada LIQ) 144A | 0.19 | 12-1-2025 | 3,330,000 | 3,330,000 | ||||||||||||
Nevada Tender Option Bond Trust Receipts/Floater Certificates Series 2018-ZM0639 (GO Revenue, JPMorgan Chase & Company LIQ) 144A | 0.20 | 12-1-2025 | 3,240,000 | 3,240,000 | ||||||||||||
Nevada Tender Option Bond Trust Receipts/Floater Certificates Series 2020-XM0845 (GO Revenue, BAM Insured, JPMorgan Chase & Company LIQ) 144A | 0.31 | 6-15-2026 | 3,870,000 | 3,870,000 | ||||||||||||
Nevada Tender Option Bond Trust Receipts/Floater Certificates Series 2020-XM0866 (Tax Revenue, Royal Bank of Canada LOC, Royal Bank of Canada LIQ) 144A | 0.20 | 7-1-2026 | 1,000,000 | 1,000,000 | ||||||||||||
11,440,000 | ||||||||||||||||
|
| |||||||||||||||
New Jersey: 4.24% |
| |||||||||||||||
Variable Rate Demand Notes ø: 4.24% | ||||||||||||||||
New Jersey Tender Option Bond Trust Receipts/Floater Certificates Series 2016-XM0226 (Miscellaneous Revenue, BHAC/National Insured, Bank of America NA LIQ) 144A | 0.16 | 7-1-2026 | 10,220,000 | 10,220,000 | ||||||||||||
New Jersey Tender Option Bond Trust Receipts/Floater Certificates Series 2017-XF2495 (Miscellaneous Revenue, BAM Insured, Morgan Stanley Bank LIQ) 144A | 0.31 | 7-1-2031 | 8,450,000 | 8,450,000 | ||||||||||||
New Jersey Tender Option Bond Trust Receipts/Floater Certificates Series 2018-XF2538 (Miscellaneous Revenue, Barclays Bank plc LOC, Barclays Bank plc LIQ) 144A | 0.19 | 6-15-2040 | 2,810,000 | 2,810,000 |
The accompanying notes are an integral part of these financial statements.
14 | Retail Money Market Funds
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Variable Rate Demand Notes ø (continued) | ||||||||||||||||
New Jersey Tender Option Bond Trust Receipts/Floater Certificates Series 2018-XG0205 (Miscellaneous Revenue, Barclays Bank plc LOC, Barclays Bank plc LIQ) 144A | 0.19 | % | 12-15-2034 | $ | 5,600,000 | $ | 5,600,000 | |||||||||
New Jersey Tender Option Bond Trust Receipts/Floater Certificates Series 2018-XX1093 (Miscellaneous Revenue, Barclays Bank plc LOC, Barclays Bank plc LIQ) 144A | 0.19 | 6-15-2031 | 9,500,000 | 9,500,000 | ||||||||||||
New Jersey Tender Option Bond Trust Receipts/Floater Certificates Series 2019-XG0258 (Tax Revenue, Barclays Bank plc LOC, Barclays Bank plc LIQ) 144A | 0.19 | 6-15-2050 | 9,885,000 | 9,885,000 | ||||||||||||
46,465,000 | ||||||||||||||||
|
| |||||||||||||||
New York: 7.75% |
| |||||||||||||||
Other Municipal Debt: 1.82% | ||||||||||||||||
Erie Cnty NY Revenue Anticipation Notes (GO Revenue) | 3.00 | 6-24-2021 | 6,500,000 | 6,643,929 | ||||||||||||
New York Dormitory Authority Personal Income Tax Revenue Series B (Tax Revenue) | 5.00 | 3-31-2021 | 11,500,000 | 11,842,308 | ||||||||||||
New York Sales Tax Asset Receivable Corporation Series A (Tax Revenue) | 5.00 | 10-15-2020 | 1,425,000 | 1,437,007 | ||||||||||||
19,923,244 | ||||||||||||||||
|
| |||||||||||||||
Variable Rate Demand Notes ø: 5.93% | ||||||||||||||||
New York Dormitory Authority Catholic Health Systems Obligated Group Revenue Bond Series 2019B (Health Revenue, Manufacturers & Traders LOC) | 0.21 | 7-1-2048 | 9,925,000 | 9,925,000 | ||||||||||||
New York Dormitory Authority Series 12 Clipper Tax-Exempt Certificate Trust Series 2009-35 (Miscellaneous Revenue, State Street Bank & Trust Company LIQ) 144A | 0.19 | 3-15-2022 | 3,770,000 | 3,770,000 | ||||||||||||
New York Metropolitan Transportation Authority Revenue Bond Subordinate Series 2012A-2 (Transportation Revenue, Bank of Montreal LOC) | 0.05 | 11-15-2041 | 15,500,000 | 15,500,000 | ||||||||||||
New York Metropolitan Transportation Authority Revenue Bond Subordinate Series 2015E (Transportation Revenue, PNC Bank NA LOC) | 0.17 | 11-15-2045 | 1,700,000 | 1,700,000 | ||||||||||||
New York NY Fiscal Subordinate Bond Series 2017A-6 (GO Revenue, Landesbank Hessen-Thüringen SPA) | 0.15 | 8-1-2044 | 8,680,000 | 8,680,000 | ||||||||||||
New York NY Municipal Water Authority Series BB-1 (Water & Sewer Revenue, State Street Bank & Trust Company SPA) | 0.14 | 6-15-2049 | 2,850,000 | 2,850,000 | ||||||||||||
New York NY Transitional Finance Authority Future Tax Secured Tax-Exempt Bond Fiscal 2015 Subordinate Bonds Series A-3 (Tax Revenue, Mizuho Bank Limited SPA) | 0.16 | 8-1-2043 | 8,890,000 | 8,890,000 | ||||||||||||
New York Tender Option Bond Trust Receipts/Floater Certificates Series 2018-XF2556 (Tax Revenue, Morgan Stanley Bank LIQ) 144A | 0.18 | 9-15-2025 | 6,720,000 | 6,720,000 | ||||||||||||
New York Tender Option Bond Trust Receipts/Floater Certificates Series 2020-ZF0950 (Utilities Revenue, TD Bank NA LIQ) 144A | 0.20 | 11-15-2060 | 7,020,000 | 7,020,000 | ||||||||||||
65,055,000 | ||||||||||||||||
|
| |||||||||||||||
North Carolina: 0.43% |
| |||||||||||||||
Variable Rate Demand Notes ø: 0.43% | ||||||||||||||||
Charlotte NC Water & Sewer Tender Option Bond Trust Receipts/Certificates Series 2018-XG0170 (Water & Sewer Revenue, Royal Bank of Canada LIQ) 144A | 0.19 | 1-1-2026 | 2,430,000 | 2,430,000 | ||||||||||||
North Carolina Tender Option Bond Trust Receipts/Floater Certificates Series 2015-ZM0105 (Education Revenue, Morgan Stanley Bank LIQ) 144A | 0.19 | 10-1-2055 | 2,250,500 | 2,250,500 | ||||||||||||
4,680,500 | ||||||||||||||||
|
|
The accompanying notes are an integral part of these financial statements.
Retail Money Market Funds | 15
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Ohio: 4.08% |
| |||||||||||||||
Variable Rate Demand Notes ø: 4.08% | ||||||||||||||||
Franklin County Trinity Health Group (Health Revenue) | 0.70 | % | 12-1-2046 | $ | 10,000,000 | $ | 10,000,000 | |||||||||
Mizuho Floater/Residual Trust Various States Series 2019-MIZ9001 (Housing Revenue, Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ) 144A | 0.36 | 7-1-2059 | 3,970,000 | 3,970,000 | ||||||||||||
Ohio Capital Facilities Lease Adult Correctional Building Fund Series C (Miscellaneous Revenue) | 0.14 | 10-1-2036 | 10,100,000 | 10,100,000 | ||||||||||||
Ohio Tender Option Bond Trust Receipts/Floater Certificates Northeast Regional Ohio Sewer District Wastewater Series 2015-XF0225 (Water & Sewer Revenue, TD Bank NA LIQ) 144A | 0.21 | 3-1-2021 | 9,375,000 | 9,375,000 | ||||||||||||
Ohio Tender Option Bond Trust Receipts/Floater Certificates Series 2017-XF2438 (Education Revenue, JPMorgan Chase & Company LIQ) 144A | 0.20 | 12-1-2024 | 2,000,000 | 2,000,000 | ||||||||||||
Ohio Tender Option Bond Trust Receipts/Floater Certificates Series 2018-XL0074 (Health Revenue, JPMorgan Chase & Company LIQ) 144A | 0.36 | 8-1-2024 | 5,580,000 | 5,580,000 | ||||||||||||
Ohio Tender Option Bond Trust Receipts/Floater Certificates Series 2020-XX1133 (Health Revenue, Barclays Bank plc LOC, Barclays Bank plc LIQ) 144A | 0.20 | 11-15-2042 | 3,730,000 | 3,730,000 | ||||||||||||
44,755,000 | ||||||||||||||||
|
| |||||||||||||||
Oregon: 1.00% |
| |||||||||||||||
Variable Rate Demand Notes ø: 1.00% | ||||||||||||||||
Oregon Department of Veterans Affairs Series J (GO Revenue, U.S. Bank NA SPA) | 0.13 | 6-1-2039 | 1,000,000 | 1,000,000 | ||||||||||||
Oregon Refunding Bond Series 106-C (GO Revenue, U.S. Bank NA SPA) | 0.13 | 12-1-2044 | 2,600,000 | 2,600,000 | ||||||||||||
Oregon Tender Option Bond Trust Receipts/Floater Certificates Series 2020-XM0813 (Health Revenue, Royal Bank of Canada LIQ) 144A | 0.22 | 5-15-2027 | 4,895,000 | 4,895,000 | ||||||||||||
Oregon Tender Option Bond Trust Receipts/Floater Certificates Series 2020-XM0814 (Education Revenue, Royal Bank of Canada LIQ) 144A | 0.19 | 1-1-2028 | 2,505,000 | 2,505,000 | ||||||||||||
11,000,000 | ||||||||||||||||
|
| |||||||||||||||
Other: 1.32% |
| |||||||||||||||
Variable Rate Demand Notes ø: 1.32% | ||||||||||||||||
Clipper Tax-Exempt Certificate Trust AMT Series 2009-54 (Miscellaneous Revenue, State Street Bank & Trust Company LIQ) | 0.21 | 2-15-2028 | 13,500,000 | 13,500,000 | ||||||||||||
FHLMC MFHR Series M-031 Class A (Housing Revenue, FHLMC LIQ) 144A | 0.19 | 12-15-2045 | 980,000 | 980,000 | ||||||||||||
14,480,000 | ||||||||||||||||
|
| |||||||||||||||
Pennsylvania: 2.71% |
| |||||||||||||||
Other Municipal Debt: 0.47% | ||||||||||||||||
Philadelphia PA School District AMT Series A (Tax Revenue) | 4.00 | 6-30-2021 | 5,000,000 | 5,155,551 | ||||||||||||
|
| |||||||||||||||
Variable Rate Demand Notes ø: 2.24% | ||||||||||||||||
Allegheny County Hospital Development Authority Series E (Health Revenue, Royal Bank of Canada LOC, Royal Bank of Canada LIQ) 144A | 0.19 | 4-1-2022 | 3,820,000 | 3,820,000 | ||||||||||||
Butler County Hospital Authority Series A (Health Revenue, BMO Harris Bank NA LOC) | 0.17 | 10-1-2042 | 700,000 | 700,000 | ||||||||||||
Mizuho Floater/Residual Trust Series 2020-MIZ9009 (Housing Revenue, Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ) 144A | 0.41 | 12-1-2036 | 6,650,000 | 6,650,000 | ||||||||||||
Pennsylvania Public School Building Authority Series A (Miscellaneous Revenue, AGM Insured, Citibank NA LIQ) 144A | 0.28 | 12-1-2023 | 5,000,000 | 5,000,000 | ||||||||||||
Pennsylvania Tender Option Bond Trust Receipts/Floater Certificates Series 2015-ZM0081 (Health Revenue, Morgan Stanley Bank LIQ) 144A | 0.19 | 6-1-2044 | 3,000,000 | 3,000,000 |
The accompanying notes are an integral part of these financial statements.
16 | Retail Money Market Funds
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Variable Rate Demand Notes ø (continued) | ||||||||||||||||
Pennsylvania Tender Option Bond Trust Receipts/Floater Certificates Series 2016-ZF0504 (Water & Sewer Revenue, TD Bank NA LIQ) 144A | 0.31 | % | 8-15-2042 | $ | 4,875,000 | $ | 4,875,000 | |||||||||
South Central Pennsylvania General Authority WellSpan Health Obligated Group Series 2019E (Health Revenue, U.S. Bank NA SPA) | 0.14 | 6-1-2035 | 500,000 | 500,000 | ||||||||||||
24,545,000 | ||||||||||||||||
|
| |||||||||||||||
South Carolina: 0.42% |
| |||||||||||||||
Variable Rate Demand Notes ø: 0.42% | ||||||||||||||||
South Carolina EDA Brashier Charter LLC Project (Education Revenue, Truist Bank LOC) | 0.18 | 12-1-2038 | 1,810,000 | 1,810,000 | ||||||||||||
South Carolina Educational Facilities Authority for Private Non-Profit Institutions Higher Learning Educational Facilities Spartanburg Methodist Series 2005 (Education Revenue, Truist Bank LOC) | 0.20 | 8-1-2025 | 1,750,000 | 1,750,000 | ||||||||||||
South Carolina Jobs EDA Institutional Business & Home Safety Project Series 2009 (Industrial Development Revenue, Truist Bank LOC) | 0.22 | 11-1-2034 | 1,075,000 | 1,075,000 | ||||||||||||
4,635,000 | ||||||||||||||||
|
| |||||||||||||||
Tennessee: 0.68% |
| |||||||||||||||
Variable Rate Demand Notes ø: 0.68% | ||||||||||||||||
Blount County Public Building Authority Various Local Government Public Improvements Series (Miscellaneous Revenue, Bank of America NA SPA) | 0.15 | 6-1-2034 | 6,000,000 | 6,000,000 | ||||||||||||
Sevier County Public Building Authority Local Government Public Improvement Series 6-A1 (Miscellaneous Revenue, Branch Banking & Trust SPA) | 0.23 | 6-1-2029 | 1,460,000 | 1,460,000 | ||||||||||||
7,460,000 | ||||||||||||||||
|
| |||||||||||||||
Texas: 6.55% |
| |||||||||||||||
Other Municipal Debt: 1.75% | ||||||||||||||||
Texas Tax & Revenue Anticipation Notes (GO Revenue) | 4.00 | 8-27-2020 | 19,150,000 | 19,186,031 | ||||||||||||
|
| |||||||||||||||
Variable Rate Demand Notes ø: 4.80% | ||||||||||||||||
Bexar County Housing Finance Corporation Palisades Park Apartments Project Series 2009 (Housing Revenue, FHLMC LIQ) | 0.24 | 9-1-2039 | 3,600,000 | 3,600,000 | ||||||||||||
Dallas TX Series A (GO Revenue) | 0.25 | 9-3-2020 | 24,000,000 | 24,000,000 | ||||||||||||
Port Arthur TX Navigation District Industrial Development Corporation Total Petrochemicals USA Incorporated Project (Industrial Development Revenue) | 0.26 | 6-1-2041 | 5,000,000 | 5,000,000 | ||||||||||||
Port Corpus Christi TX Solid Waste Disposal Flint Hills Resources Project Series 2002-B (Resource Recovery Revenue, Flint Hills Resources LLC) | 0.27 | 7-1-2029 | 4,200,000 | 4,200,000 | ||||||||||||
Texas A&M University Series B (Education Revenue) ## | 0.20 | 10-5-2020 | 15,000,000 | 15,000,000 | ||||||||||||
Texas Veterans Bonds (Miscellaneous Revenue, Sumitomo Mitsui Banking SPA) | 0.23 | 12-1-2047 | 790,000 | 790,000 | ||||||||||||
52,590,000 | ||||||||||||||||
|
| |||||||||||||||
Utah: 2.05% |
| |||||||||||||||
Other Municipal Debt: 1.28% | ||||||||||||||||
Salt Lake County TAN (GO Revenue) | 1.00 | 12-30-2020 | 14,000,000 | 14,047,151 | ||||||||||||
|
| |||||||||||||||
Variable Rate Demand Notes ø: 0.77% | ||||||||||||||||
RBC Municipal Products Incorporated Trust Series E-142 (Utilities Revenue, Royal Bank of Canada LOC, Royal Bank of Canada LIQ) 144A | 0.19 | 5-1-2022 | 5,450,000 | 5,450,000 | ||||||||||||
Utah Tender Option Bond Trust Receipts/Floater Certificates Series 2018-XG0171 (Health Revenue, Royal Bank of Canada LIQ) 144A | 0.22 | 11-15-2022 | 3,000,000 | 3,000,000 | ||||||||||||
8,450,000 | ||||||||||||||||
|
|
The accompanying notes are an integral part of these financial statements.
Retail Money Market Funds | 17
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Vermont: 0.21% |
| |||||||||||||||
Variable Rate Demand Note ø: 0.21% | ||||||||||||||||
Vermont Educational & Health Buildings Financing Agency Landmark College Project Series 2008-A (Education Revenue, TD Bank NA LOC) | 0.16 | % | 7-1-2033 | $ | 2,350,000 | $ | 2,350,000 | |||||||||
|
| |||||||||||||||
Virginia: 0.32% |
| |||||||||||||||
Variable Rate Demand Notes ø: 0.32% | ||||||||||||||||
Albemarle County EDA Series 2018A & 2018B (Health Revenue, TD Bank NA SPA) | 0.14 | 10-1-2048 | 2,800,000 | 2,800,000 | ||||||||||||
Fairfax County EDA Mount Vernon Ladies Association Project (Industrial Development Revenue, Truist Bank LOC) | 0.18 | 6-1-2037 | 740,000 | 740,000 | ||||||||||||
3,540,000 | ||||||||||||||||
|
| |||||||||||||||
Washington: 0.05% |
| |||||||||||||||
Variable Rate Demand Note ø: 0.05% | ||||||||||||||||
Washington Tender Option Bond Trust Receipts/Floater Certificates Series 2016-XM0424 (Health Revenue, JPMorgan Chase & Company LIQ) 144A | 0.53 | 9-6-2020 | 500,000 | 500,000 | ||||||||||||
|
| |||||||||||||||
Wisconsin: 4.70% |
| |||||||||||||||
Variable Rate Demand Notes ø: 4.70% | ||||||||||||||||
Appleton WI Recovery Zone Facilities Foremost Farms Project Series 2010 (Industrial Development Revenue, CoBank ACB LOC) | 0.21 | 5-1-2037 | 14,700,000 | 14,700,000 | ||||||||||||
Wisconsin PFA Hospital WakeMed Obligated Group Series B (Health Revenue, Barclays Bank plc LOC) | 0.16 | 10-1-2049 | 100,000 | 100,000 | ||||||||||||
Wisconsin PFA Midwestern Disaster Area Program Series 2011 (Industrial Development Revenue, Farm Credit Services America LOC) | 0.21 | 9-1-2036 | 2,965,000 | 2,965,000 | ||||||||||||
Wisconsin Series 2019A (GO Revenue) | 0.16 | 5-1-2029 | 10,100,000 | 10,100,000 | ||||||||||||
Wisconsin Tender Option Bond Trust Receipts/Floater Certificates Series 2015-XF0127 (Health Revenue, JPMorgan Chase & Company LIQ) 144A | 0.34 | 10-1-2020 | 3,815,000 | 3,815,000 | ||||||||||||
Wisconsin Tender Option Bond Trust Receipts/Floater Certificates Series 2018-XF2634 (Health Revenue, Credit Suisse LIQ) 144A | 0.19 | 8-15-2025 | 2,000,000 | 2,000,000 | ||||||||||||
Wisconsin Tender Option Bond Trust Receipts/Floater Certificates Series 2019-XF2823 (Housing Revenue, Mizuho Capital Markets LLC LOC, Mizuho Capital Markets LLC LIQ) 144A | 0.36 | 1-1-2026 | 9,015,000 | 9,015,000 | ||||||||||||
Wisconsin Tender Option Bond Trust Receipts/Floater Certificates Series 2019-XF2831 (Housing Revenue, Mizuho Capital Markets LLC LIQ) 144A | 0.46 | 7-1-2029 | 1,800,000 | 1,800,000 | ||||||||||||
Wisconsin Tender Option Bond Trust Receipts/Floater Certificates Series 2020-YX1129 (GO Revenue, Barclays Bank plc LIQ) 144A | 0.31 | 4-1-2035 | 6,980,000 | 6,980,000 | ||||||||||||
51,475,000 | ||||||||||||||||
|
| |||||||||||||||
Wyoming: 1.39% |
| |||||||||||||||
Variable Rate Demand Notes ø: 1.39% | ||||||||||||||||
Sublette County ExxonMobile Project (Industrial Development Revenue) | 0.14 | 10-1-2044 | 1,900,000 | 1,900,000 | ||||||||||||
Wyoming Tender Option Bond Trust Receipts/Floater Certificates Series 2018-XL0070 (Utilities Revenue, BAM Insured, JPMorgan Chase & Company LIQ) 144A | 0.20 | 1-1-2025 | 13,330,000 | 13,330,000 | ||||||||||||
15,230,000 | ||||||||||||||||
|
| |||||||||||||||
Total Municipal Obligations (Cost $1,071,783,376) |
| 1,071,783,376 | ||||||||||||||
|
|
Total investments in securities (Cost $1,071,783,376) | 97.78 | % | 1,071,783,376 | |||||
Other assets and liabilities, net | 2.22 | 24,341,906 | ||||||
|
|
|
| |||||
Total net assets | 100.00 | % | $ | 1,096,125,282 | ||||
|
|
|
|
The accompanying notes are an integral part of these financial statements.
18 | Retail Money Market Funds
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
ø | Variable rate demand notes are subject to a demand feature which reduces the effective maturity. The maturity date shown represents the final maturity date of the security. The interest rate is determined and reset by the issuer daily, weekly, or monthly depending upon the terms of the security. The rate shown is the rate in effect at period end. |
144A | The security may be resold in transactions exempt from registration, normally to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933. |
%% | The security is purchased on a when-issued basis. |
## | All or a portion of this security is segregated for when-issued securities. |
Abbreviations:
AGM | Assured Guaranty Municipal |
AMT | Alternative minimum tax |
BAM | Build America Mutual Assurance Company |
BAN | Bond anticipation notes |
BHAC | Berkshire Hathaway Assurance Corporation |
ECFA | Educational & Cultural Facilities Authority |
EDA | Economic Development Authority |
FHA | Federal Housing Administration |
FHLB | Federal Home Loan Bank |
FHLMC | Federal Home Loan Mortgage Corporation |
FNMA | Federal National Mortgage Association |
GNMA | Government National Mortgage Association |
GO | General Obligation |
HEFA | Health & Educational Facilities Authority |
HEFAR | Higher Education Facilities Authority Revenue |
HFA | Housing Finance Authority |
IDA | Industrial Development Authority |
LIQ | Liquidity agreement |
LOC | Letter of credit |
MFHR | Multifamily housing revenue |
National | National Public Finance Guarantee Corporation |
PFA | Public Finance Authority |
RDA | Redevelopment Authority |
SPA | Standby purchase agreement |
The accompanying notes are an integral part of these financial statements.
Retail Money Market Funds | 19
Table of Contents
Statement of assets and liabilities—July 31, 2020 (unaudited)
Assets | ||||
Investments in unaffiliated securities, at amortized cost | $ | 1,071,783,376 | ||
Cash | 591,337 | |||
Receivable for investments sold | 61,980,862 | |||
Receivable for Fund shares sold | 607,442 | |||
Receivable for interest | 3,326,443 | |||
Prepaid expenses and other assets | 116,076 | |||
|
| |||
Total assets | 1,138,405,536 | |||
|
| |||
Liabilities | ||||
Payable for investments purchased | 40,400,055 | |||
Payable for Fund shares redeemed | 1,515,411 | |||
Management fee payable | 57,778 | |||
Dividends payable | 29,878 | |||
Administration fees payable | 99,244 | |||
Trustees’ fees and expenses payable | 2,177 | |||
Accrued expenses and other liabilities | 175,711 | |||
|
| |||
Total liabilities | 42,280,254 | |||
|
| |||
Total net assets | $ | 1,096,125,282 | ||
|
| |||
Net assets consist of | ||||
Paid-in capital | $ | 1,096,050,473 | ||
Total distributable earnings | 74,809 | |||
|
| |||
Total net assets | $ | 1,096,125,282 | ||
|
| |||
Computation of net asset value per share | ||||
Net assets – Class A | $ | 109,905,678 | ||
Shares outstanding – Class A1 | 109,883,465 | |||
Net asset value per share – Class A | $1.00 | |||
Net assets – Administrator Class | $ | 95,581,800 | ||
Shares outstanding – Administrator Class1 | 95,562,319 | |||
Net asset value per share – Administrator Class | $1.00 | |||
Net assets – Premier Class | $ | 825,137,232 | ||
Shares outstanding – Premier Class1 | 824,970,919 | |||
Net asset value per share – Premier Class | $1.00 | |||
Net assets – Service Class | $ | 65,500,572 | ||
Shares outstanding – Service Class1 | 65,487,334 | |||
Net asset value per share – Service Class | $1.00 |
1 | The Fund has an unlimited number of authorized shares. |
The accompanying notes are an integral part of these financial statements.
20 | Retail Money Market Funds
Table of Contents
Statement of operations—six months ended July 31, 2020 (unaudited)
Investment income | ||||
Interest | $ | 5,148,081 | ||
|
| |||
Expenses | ||||
Management fee | 873,793 | |||
Administration fees |
| |||
Class A | 120,134 | |||
Administrator Class | 50,981 | |||
Premier Class | 355,550 | |||
Service Class | 39,005 | |||
Shareholder servicing fees |
| |||
Class A | 136,004 | |||
Administrator Class | 50,900 | |||
Service Class | 81,257 | |||
Custody and accounting fees | 21,074 | |||
Professional fees | 20,470 | |||
Registration fees | 29,216 | |||
Shareholder report expenses | 21,807 | |||
Trustees’ fees and expenses | 9,844 | |||
Other fees and expenses | 16,159 | |||
|
| |||
Total expenses | 1,826,194 | |||
Less: Fee waivers and/or expense reimbursements |
| |||
Fund-level | (328,017 | ) | ||
Class A | (59,708 | ) | ||
Administrator Class | (17,180 | ) | ||
Service Class | (28,561 | ) | ||
|
| |||
Net expenses | 1,392,728 | |||
|
| |||
Net investment income | 3,755,353 | |||
Net realized gains on investments | 139,822 | |||
|
| |||
Net increase in net assets resulting from operations | $ | 3,895,175 | ||
|
|
The accompanying notes are an integral part of these financial statements.
Retail Money Market Funds | 21
Table of Contents
Statement of changes in net assets
Six months ended July 31, 2020 (unaudited) | Year ended January 31, 2020 | |||||||||||||||
Operations |
| |||||||||||||||
Net investment income | $ | 3,755,353 | $ | 11,333,376 | ||||||||||||
Net realized gains on investments | 139,822 | 155,732 | ||||||||||||||
|
| |||||||||||||||
Net increase in net assets resulting from operations | 3,895,175 | 11,489,108 | ||||||||||||||
|
| |||||||||||||||
Distributions to shareholders from net investment income and net realized gains | ||||||||||||||||
Class A | (264,015 | ) | (900,478 | ) | ||||||||||||
Administrator Class | (329,357 | ) | (1,516,842 | ) | ||||||||||||
Premier Class | (2,982,744 | ) | (8,389,054 | ) | ||||||||||||
Service Class | (179,235 | ) | (700,424 | ) | ||||||||||||
|
| |||||||||||||||
Total distributions to shareholders | (3,755,351 | ) | (11,506,798 | ) | ||||||||||||
|
| |||||||||||||||
Capital share transactions | Shares | Shares | ||||||||||||||
Proceeds from shares sold |
| |||||||||||||||
Class A | 37,074,731 | 37,074,731 | 27,183,406 | 27,183,406 | ||||||||||||
Administrator Class | 11,814,586 | 11,814,586 | 33,693,350 | 33,693,350 | ||||||||||||
Premier Class | 636,264,993 | 636,264,993 | 951,883,288 | 951,883,288 | ||||||||||||
Service Class | 1,942,232 | 1,942,232 | 4,331,878 | 4,331,878 | ||||||||||||
|
| |||||||||||||||
687,096,542 | 1,017,091,922 | |||||||||||||||
|
| |||||||||||||||
Reinvestment of distributions |
| |||||||||||||||
Class A | 259,894 | 259,894 | 874,165 | 874,165 | ||||||||||||
Administrator Class | 323,662 | 323,662 | 1,477,726 | 1,477,726 | ||||||||||||
Premier Class | 2,039,546 | 2,039,546 | 6,873,538 | 6,873,538 | ||||||||||||
Service Class | 52,478 | 52,478 | 213,497 | 213,497 | ||||||||||||
|
| |||||||||||||||
2,675,580 | 9,438,926 | |||||||||||||||
|
| |||||||||||||||
Payment for shares redeemed |
| |||||||||||||||
Class A | (23,076,494 | ) | (23,076,494 | ) | (34,097,192 | ) | (34,097,192 | ) | ||||||||
Administrator Class | (24,024,589 | ) | (24,024,589 | ) | (59,099,979 | ) | (59,099,979 | ) | ||||||||
Premier Class | (661,143,378 | ) | (661,143,378 | ) | (704,849,931 | ) | (704,849,931 | ) | ||||||||
Service Class | (1,304,686 | ) | (1,304,686 | ) | (5,421,874 | ) | (5,421,874 | ) | ||||||||
|
| |||||||||||||||
(709,549,147 | ) | (803,468,976 | ) | |||||||||||||
|
| |||||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions | (19,777,025 | ) | 223,061,872 | |||||||||||||
|
| |||||||||||||||
Total increase (decrease) in net assets | (19,637,201 | ) | 223,044,182 | |||||||||||||
|
| |||||||||||||||
Net assets | ||||||||||||||||
Beginning of period | 1,115,762,483 | 892,718,301 | ||||||||||||||
|
| |||||||||||||||
End of period | $ | 1,096,125,282 | $ | 1,115,762,483 | ||||||||||||
|
|
The accompanying notes are an integral part of these financial statements.
22 | Retail Money Market Funds
Table of Contents
(For a share outstanding throughout each period)
Six months ended July 31, 2020 (unaudited) | Year ended January 31 | |||||||||||||||||||||||
CLASS A | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Net investment income | 0.00 | 1 | 0.01 | 0.01 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | ||||||||||||||
Net realized gains on investments | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 0.00 | 1 | 0.01 | 0.01 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | ||||||||||||||
Distributions to shareholders from | ||||||||||||||||||||||||
Net investment income | (0.00 | )1 | (0.01 | ) | (0.01 | ) | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | ||||||||||||
Net realized gains | 0.00 | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions to shareholders | (0.00 | ) | (0.01 | ) | (0.01 | ) | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | ||||||||||||
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Total return2 | 0.25 | % | 0.93 | % | 0.89 | % | 0.35 | % | 0.13 | % | 0.02 | % | ||||||||||||
Ratios to average net assets (annualized) | ||||||||||||||||||||||||
Gross expenses | 0.64 | % | 0.66 | % | 0.66 | % | 0.68 | % | 0.65 | % | 0.63 | % | ||||||||||||
Net expenses | 0.43 | % | 0.60 | % | 0.61 | % | 0.64 | % | 0.39 | % | 0.08 | % | ||||||||||||
Net investment income | 0.48 | % | 0.92 | % | 0.88 | % | 0.30 | % | 0.02 | % | 0.01 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (000s omitted) | $109,906 | $95,632 | $101,680 | $119,524 | $135,704 | $172,725 |
1 | Amount is less than $0.005. |
2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Retail Money Market Funds | 23
Table of Contents
Financial highlights
(For a share outstanding throughout each period)
Six months ended July 31, 2020 (unaudited) | Year ended January 31 | |||||||||||||||||||||||
ADMINISTRATOR CLASS | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Net investment income | 0.00 | 1 | 0.01 | 0.01 | 0.01 | 0.00 | 1 | 0.00 | 1 | |||||||||||||||
Net realized gains on investments | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 0.00 | 1 | 0.00 | 0.01 | 0.01 | 0.00 | 1 | 0.00 | 1 | |||||||||||||||
Distributions to shareholders from | ||||||||||||||||||||||||
Net investment income | (0.00 | )1 | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.00 | )1 | (0.00 | )1 | ||||||||||||
Net realized gains | 0.00 | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions to shareholders | (0.00 | ) | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.00 | )1 | (0.00 | )1 | ||||||||||||
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Total return2 | 0.32 | % | 1.23 | % | 1.21 | % | 0.69 | % | 0.33 | % | 0.02 | % | ||||||||||||
Ratios to average net assets (annualized) | ||||||||||||||||||||||||
Gross expenses | 0.37 | % | 0.39 | % | 0.39 | % | 0.41 | % | 0.40 | % | 0.36 | % | ||||||||||||
Net expenses | 0.29 | % | 0.30 | % | 0.30 | % | 0.30 | % | 0.27 | % | 0.08 | % | ||||||||||||
Net investment income | 0.65 | % | 1.22 | % | 1.21 | % | 0.64 | % | 0.22 | % | 0.01 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (000s omitted) | $95,582 | $107,457 | $131,395 | $132,964 | $155,448 | $179,171 |
1 | Amount is less than $0.005. |
2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
24 | Retail Money Market Funds
Table of Contents
Financial highlights
(For a share outstanding throughout each period)
Six months ended July 31, 2020 (unaudited) | Year ended January 31 | |||||||||||||||||||||||
PREMIER CLASS1 | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Net investment income | 0.00 | 2 | 0.01 | 0.01 | 0.01 | 0.00 | 2 | 0.00 | 2 | |||||||||||||||
Net realized gains on investments | 0.00 | 2 | 0.00 | 2 | 0.00 | 2 | 0.00 | 2 | 0.00 | 2 | 0.00 | 2 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 0.00 | 2 | 0.01 | 0.01 | 0.01 | 0.00 | 2 | 0.00 | 2 | |||||||||||||||
Distributions to shareholders from | ||||||||||||||||||||||||
Net investment income | (0.00 | )2 | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.00 | )2 | (0.00 | )2 | ||||||||||||
Net realized gains | (0.00 | ) | (0.00 | )2 | (0.00 | )2 | (0.00 | )2 | (0.00 | )2 | (0.00 | )2 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions to shareholders | (0.00 | )2 | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.00 | )2 | (0.00 | )2 | ||||||||||||
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Total return3 | 0.37 | % | 1.33 | % | 1.31 | % | 0.79 | % | 0.41 | % | 0.02 | % | ||||||||||||
Ratios to average net assets (annualized) | ||||||||||||||||||||||||
Gross expenses | 0.25 | % | 0.27 | % | 0.27 | % | 0.28 | % | 0.25 | % | 0.24 | % | ||||||||||||
Net expenses | 0.20 | % | 0.20 | % | 0.20 | % | 0.20 | % | 0.18 | % | 0.08 | % | ||||||||||||
Net investment income | 0.67 | % | 1.28 | % | 1.31 | % | 0.79 | % | 0.18 | % | 0.01 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (000s omitted) | $825,137 | $847,871 | $593,961 | $339,331 | $105,881 | $1,677,748 |
1 | Effective April 1, 2016, Institutional Class was renamed Premier Class. |
2 | Amount is less than $0.005. |
3 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Retail Money Market Funds | 25
Table of Contents
Financial highlights
(For a share outstanding throughout each period)
Six months ended July 31, 2020 (unaudited) | Year ended January 31 | |||||||||||||||||||||||
SERVICE CLASS | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Net investment income | 0.00 | 1 | 0.01 | 0.01 | 0.01 | 0.00 | 1 | 0.00 | 1 | |||||||||||||||
Net realized gains on investments | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 0.00 | 1 | 0.01 | 0.01 | 0.01 | 0.00 | 1 | 0.00 | 1 | |||||||||||||||
Distributions to shareholders from | ||||||||||||||||||||||||
Net investment income | (0.00 | )1 | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.00 | )1 | (0.00 | )1 | ||||||||||||
Net realized gains | (0.00 | ) | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | ||||||||||||
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Total distributions to shareholders | (0.00 | )1 | (0.01 | ) | (0.01 | ) | (0.01 | ) | (0.00 | )1 | (0.00 | )1 | ||||||||||||
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Total return2 | 0.28 | % | 1.08 | % | 1.06 | % | 0.54 | % | 0.20 | % | 0.02 | % | ||||||||||||
Ratios to average net assets (annualized) | ||||||||||||||||||||||||
Gross expenses | 0.54 | % | 0.56 | % | 0.56 | % | 0.58 | % | 0.54 | % | 0.53 | % | ||||||||||||
Net expenses | 0.38 | % | 0.45 | % | 0.45 | % | 0.45 | % | 0.32 | % | 0.08 | % | ||||||||||||
Net investment income | 0.55 | % | 1.06 | % | 1.05 | % | 0.49 | % | 0.03 | % | 0.01 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (000s omitted) | $65,501 | $64,802 | $65,682 | $66,460 | $73,472 | $162,593 |
1 | Amount is less than $0.005. |
2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
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Notes to financial statements (unaudited)
1. ORGANIZATION
Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo National Tax-Free Money Market Fund (the “Fund”) which is a diversified series of the Trust.
Consistent with Rule 2a-7, the Board of Trustees of the Fund is permitted to impose a liquidity fee on redemptions from the Fund or a redemption gate (i.e., a suspension of the right to redeem) in the event that the Fund’s liquidity falls below required minimums because of market conditions or other factors. If the Fund’s weekly liquid assets (as defined in Rule 2a-7(34)) fall below 30% of the Fund’s total assets, the Board of Trustees is permitted, but not required, to: (i) impose a liquidity fee of no more than 2% of the amount redeemed; and/or (ii) impose a redemption gate. If the Fund’s weekly liquid assets fall below 10% of the Fund’s total assets, the Fund must impose, generally as of the beginning of the next business day, a liquidity fee of 1% of the amount redeemed unless the Board of Trustees determines that such a fee is not in the best interest of the Fund or determines that a lower or higher fee (subject to the 2% limit) is in the best interest of the Fund. Liquidity fees reduce the amount a shareholder receives upon redemption of its shares. The Fund retains any liquidity fees for the benefit of remaining shareholders. The Board of Trustees did not impose any liquidity fees and/or redemption gates during the six months ended July 31, 2020.
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Securities valuation
As permitted under Rule 2a-7 of the 1940 Act, portfolio securities are valued at amortized cost, which approximates fair value. The amortized cost method involves valuing a security at its cost, plus accretion of discount or minus amortization of premium over the period until maturity.
Investments which are not valued using the method discussed above are valued at their fair value, as determined in good faith by the Board of Trustees of the Fund. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Wells Fargo Asset Management Pricing Committee at Wells Fargo Funds Management, LLC (“Funds Management”). The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Wells Fargo Asset Management Pricing Committee which may include items for ratification.
Repurchase agreements
The Fund may invest in repurchase agreements and may participate in pooled repurchase agreement transactions with other funds advised by Funds Management. Repurchase agreements are agreements where the seller of a security to the Fund agrees to repurchase that security from the Fund at a mutually agreed upon time and price. The repurchase agreements must be fully collateralized based on values that are marked-to-market daily. The collateral may be held by an agent bank under a tri-party agreement. It is the custodian’s responsibility to value collateral daily and to take action to obtain additional collateral as necessary to maintain a market value equal to or greater than the resale price. The repurchase agreements are collateralized by securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities. There could be potential loss to the Fund in the event that the Fund is delayed or prevented from exercising its rights to dispose of the collateral, including the risk of a possible decline in the value of the underlying obligations during the period in which the Fund seeks to assert its rights.
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.
Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has been determined to be doubtful based on consistently applied procedures
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Notes to financial statements (unaudited)
and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.
Distributions to shareholders
Distributions to shareholders from net investment income are declared daily and paid monthly. Distributions from net realized gains, if any, are recorded on the ex-dividend date and paid at least annually. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior to the Fund’s fiscal year end may be categorized as a tax return of capital at year end.
Federal and other taxes
The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable and tax-exempt income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.
The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.
As of July 31, 2020, the cost of investments for federal income tax purposes is substantially the same as for financial reporting purposes.
Class allocations
The separate classes of shares offered by the Fund differ principally in shareholder servicing and administration fees. Class specific expenses are charged directly to that share class. Investment income, common fund-level expenses, and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.
3. FAIR VALUATION MEASUREMENTS
Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:
∎ | Level 1 – quoted prices in active markets for identical securities |
∎ | Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
∎ | Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
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 is a summary of the inputs used in valuing the Fund’s assets and liabilities as of July 31, 2020:
Quoted prices (Level 1) | Other significant observable inputs (Level 2) | Significant (Level 3) | Total | |||||||||||||
Assets | ||||||||||||||||
Investments in municipal obligations | $ | 0 | $ | 1,071,783,376 | $ | 0 | $ | 1,071,783,376 |
Additional sector, industry or geographic detail is included in the Portfolio of Investments.
For the six months ended July 31, 2020, the Fund did not have any transfers into/out of Level 3.
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Notes to financial statements (unaudited)
4. TRANSACTIONS WITH AFFILIATES
Management fee
Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadviser and providing fund-level administrative services in connection with the Fund’s operations. As compensation for its services under the investment management agreement, Funds Management is entitled to receive a management fee at the following annual rate based on the Fund’s average daily net assets:
Average daily net assets | Management fee | |||
First $5 billion | 0.15 | % | ||
Next $5 billion | 0.14 | |||
Over $10 billion | 0.13 |
For the six months ended July 31, 2020, the management fee was equivalent to an annual rate of 0.15% of the Fund’s average daily net assets.
Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. Wells Capital Management Incorporated, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.05% and declining to 0.01% as the average daily net assets of the Fund increase.
Administration fees
Under a class-level administration agreement, Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Funds Management receives an annual fee which is calculated based on the average daily net assets of each class as follows:
Class-level administration fee | ||||
Class A | 0.22 | % | ||
Administrator Class | 0.10 | |||
Premier Class | 0.08 | |||
Service Class | 0.12 |
Waivers and/or expense reimbursements
Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. When each class of the Fund has exceeded its expense cap, Funds Management has waived fees and/or reimbursed expenses from fund-level expenses on a proportionate basis and then from class specific expenses. When only certain classes exceed their expense caps, waivers and/or reimbursements are applied against class specific expenses before fund-level expenses. Funds Management has committed through May 31, 2021 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.60% for Class A shares, 0.30% for Administrator Class shares, 0.20% for Premier Class shares, and 0.45% for Service Class shares. 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.
During the six months ended July 31, 2020, Funds Management also voluntarily waived class-level expenses as follows:
% of average daily net assets (annualized) | ||||
Class A | 0.17 | % | ||
Administrator Class | 0.01 | |||
Service Class | 0.07 |
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Notes to financial statements (unaudited)
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A and Service Class of the Fund are charged a fee at an annual rate of 0.25% of the respective average daily net assets of each class. Administrator Class is charged a fee at an annual rate of 0.10% of its average daily net assets. A portion of these total shareholder servicing fees were paid to affiliates of Wells Fargo.
Interfund transactions
The Fund may purchase or sell portfolio investment securities to certain other Wells Fargo affiliates pursuant to Rule 17a-7 under the 1940 Act and under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which do not incur broker commissions, are effected at current market prices. Pursuant to these procedures, the Fund had $492,400,000 and $495,415,000 in interfund purchases and sales, respectively, during the six months ended July 31, 2020.
5. INDEMNIFICATION
Under the Fund’s organizational documents, the officers and Trustees have been granted certain indemnification rights against certain liabilities that may arise out of performance of their duties to the Fund. The Fund has entered into a separate agreement with each Trustee that converts indemnification rights currently existing under the Fund’s organizational documents into contractual rights that cannot be changed in the future without the consent of the Trustee. Additionally, in the normal course of business, the Fund may enter into contracts with service providers that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated.
6. NEW ACCOUNTING PRONOUNCEMENT
In August 2018, FASB issued Accounting Standards Update (“ASU”) No. 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 updates the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurements. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Management has adopted this guidance which did not have a material impact on the financial statements.
7. CORONAVIRUS (COVID-19) PANDEMIC
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 are 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 impacts 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.
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PROXY VOTING INFORMATION
A description of the policies and procedures used to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at wfam.com, or visiting the SEC website at sec.gov. Information regarding how the proxies related to portfolio securities were voted during the most recent 12-month period ended June 30 is available on the website at wfam.com or by visiting the SEC website at sec.gov.
PORTFOLIO HOLDINGS INFORMATION
The Fund files its complete schedule of portfolio holdings with the SEC each month on Form N-MFP. Shareholders may view the filed Form N-MFP by visiting the SEC website at sec.gov. The Fund’s portfolio holdings information is also available on our website at wfam.com.
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Other information (unaudited)
BOARD OF TRUSTEES AND OFFICERS
Each of the Trustees and Officers1 listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 147 mutual funds comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information2. The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.
Independent Trustees
Name and year of birth | Position held and length of service* | Principal occupations during past five years or longer | Current other public company or investment company directorships | |||
William R. Ebsworth (Born 1957) | Trustee, since 2015 | Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief investment officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong, and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he led a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Endowment (non-profit organization). Mr. Ebsworth is a CFA® charterholder. | N/A | |||
Jane A. Freeman (Born 1953) | Trustee, since 2015; Chair Liaison, since 2018 | Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is also an inactive Chartered Financial Analyst. | N/A | |||
Isaiah Harris, Jr. (Born 1952) | Trustee, since 2009; Audit Committee Chairman, since 2019 | Retired. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (private school). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status). | CIGNA Corporation | |||
Judith M. Johnson (Born 1949) | Trustee, since 2008; Audit Committee Chairman, from 2009 to 2018 | Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant. | N/A |
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Other information (unaudited)
Name and year of birth | Position held and length of service* | Principal occupations during past five years or longer | Current other public company or investment company directorships | |||
David F. Larcker (Born 1950) | Trustee, since 2009 | James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005. | N/A | |||
Olivia S. Mitchell (Born 1953) | Trustee, since 2006; Nominating and Governance Committee Chair, since 2018 | International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993. | N/A | |||
Timothy J. Penny (Born 1951) | Trustee, since 1996; Chairman, since 2018 | President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007. | N/A | |||
James G. Polisson (Born 1959) | Trustee, since 2018 | Retired. Chief Marketing Officer, Source (ETF) UK Services, Ltd, from 2015 to 2017. From 2012 to 2015, Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing company. Chief Executive Officer and Managing Director at Russell Investments, Global Exchange Traded Funds from 2010 to 2012. Managing Director of Barclays Global Investors from 1998 to 2010 and Global Chief Marketing Officer for iShares and Barclays Global Investors from 2000 to 2010. Trustee of the San Francisco Mechanics’ Institute, a non-profit organization, from 2013 to 2015. Board member of the Russell Exchange Traded Fund Trust from 2011 to 2012. Director of Barclays Global Investors Holdings Deutschland GmbH from 2006 to 2009. Mr. Polisson is an attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations. | N/A | |||
Pamela Wheelock (Born 1959) | Trustee, since January 2020; previously Trustee from January 2018 to July 2019 | Board member of the Destination Medical Center Economic Development Agency, Rochester, Minnesota since 2019 and Interim President of the McKnight Foundation since 2020. Acting Commissioner, Minnesota Department of Human Services, July 2019 through September 2019. Human Services Manager (part-time), Minnesota Department of Human Services, October 2019 through December 2019. Chief Operating Officer, Twin Cities Habitat for Humanity from 2017 to 2019. Vice President of University Services, University of Minnesota from 2012 to 2016. Prior thereto, on the Board of Directors, Governance Committee and Finance Committee for the Minnesota Philanthropy Partners (Saint Paul Foundation) from 2012 to 2018, Interim Chief Executive Officer of Blue Cross Blue Shield of Minnesota from 2011 to 2012, Chairman of the Board from 2009 to 2012 and Board Director from 2003 to 2015. Vice President, Leadership and Community Engagement, Bush Foundation, Saint Paul, Minnesota (a private foundation) from 2009 to 2011. Executive Vice President and Chief Financial Officer, Minnesota Sports and Entertainment from 2004 to 2009 and Senior Vice President from 2002 to 2004. Executive Vice President of the Minnesota Wild Foundation from 2004 to 2008. Commissioner of Finance, State of Minnesota, from 1999 to 2002. Currently Board Chair of the Minnesota Wild Foundation since 2010. | N/A |
* | Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable. |
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Other information (unaudited)
Officers
Name and year of birth | Position held and length of service | Principal occupations during past five years or longer | ||
Andrew Owen (Born 1960) | President, since 2017 | Executive Vice President of Wells Fargo & Company and Head of Affiliated Managers, Wells Fargo Asset Management, since 2014. In addition, Mr. Owen is currently President, Chief Executive Officer and Director of Wells Fargo Funds Management, LLC since 2017. Prior thereto, Executive Vice President responsible for marketing, investments and product development for Wells Fargo Funds Management, LLC, from 2009 to 2014. | ||
Nancy Wiser1 (Born 1967) | Treasurer, since 2012 | Executive Vice President of Wells Fargo Funds Management, LLC since 2011. Chief Operating Officer and Chief Compliance Officer at LightBox Capital Management LLC, from 2008 to 2011. | ||
Michelle Rhee (Born 1966) | Chief Legal Officer, since 2019 | Secretary of Wells Fargo Funds Management, LLC, Chief Legal Counsel of Wells Fargo Asset Management and Assistant General Counsel of Wells Fargo Bank, N.A. since 2018. Associate General Counsel and Managing Director of Bank of America Corporation from 2004 to 2018. | ||
Catherine Kennedy (Born 1969) | Secretary, since 2019 | Vice President of Wells Fargo Funds Management, LLC and Senior Counsel of the Wells Fargo Legal Department since 2010. Vice President and Senior Counsel of Evergreen Investment Management Company, LLC from 1998 to 2010. | ||
Michael H. Whitaker (Born 1967) | Chief Compliance Officer, since 2016 | Chief Compliance Officer of Wells Fargo Asset Management since 2016. Senior Vice President and Chief Compliance Officer for Fidelity Investments from 2007 to 2016. | ||
David Berardi (Born 1975) | Assistant Treasurer, since 2009 | Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010. | ||
Jeremy DePalma1 (Born 1974) | Assistant Treasurer, since 2009 | Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010 and head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010. |
1 | Nancy Wiser acts as Treasurer of 65 funds in the Fund Complex. Jeremy DePalma acts as the Treasurer of 82 funds and Assistant Treasurer of 65 funds in the Fund Complex. |
2 | The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at wfam.com. |
34 | Retail Money Market Funds
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Other information (unaudited)
BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:
Wells Fargo National Tax-Free Money Market Fund
Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at a Board meeting held on May 26, 2020 and May 28, 2020 (together, the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo National Tax-Free Money Market Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the “Sub-Adviser”), an affiliate of Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”
At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at a Board meeting held in April 2020, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing investment performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.
In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2020. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and investment performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.
After its deliberations, the Board unanimously approved the continuation of the Advisory Agreements for a one-year term and determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.
Nature, extent and quality of services
The Board received and considered various information regarding the nature, extent and quality of services provided to the Fund by Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Wells Fargo Asset Management (“WFAM”), of which Funds Management and the Sub-Adviser are a part, and a summary of investments made in the business of WFAM. The Board also received a description of Funds Management’s and the Sub-Adviser’s business continuity plans and of their approaches to data privacy and cybersecurity, and related testing. The Board also received and reviewed information about Funds Management’s role as administrator of the Fund’s liquidity risk management program, Funds Management’s approach to risk management, and Funds Management’s intermediary and vendor oversight program.
The Board also considered the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund. The Board evaluated the ability of Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory and supervisory personnel. The Board further considered the compliance programs and compliance records of Funds Management and the Sub-Adviser. In addition, the Board took into account the full range of services provided to the Fund by Funds Management and its affiliates.
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Other information (unaudited)
Fund investment performance and expenses
The Board considered the investment performance results for the Fund over various time periods ended December 31, 2019. The Board also considered more current results for various time periods ended March 31, 2020. The Board considered these results in comparison to the investment performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the investment performance of the Fund (Administrator Class) was higher than the average investment performance of the Universe for the one-, three-, five- and ten-year periods ended December 31, 2019. The Board also noted that the investment performance of the Fund (Administrator Class) was higher than the average investment performance of the Universe for all periods ended March 31, 2020. The Board also noted that the investment performance of the Fund was higher than its benchmark index, the Lipper Tax Exempt Money Market Index, for all periods ended December 31, 2019.
The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were lower than, equal to or in range of the median net operating expense ratios of the expense Groups for all share classes, except Class A. The Board received information concerning, and discussed factors contributing to, the expense analysis results for Class A and noted that the net operating expense ratio cap for Class A of the Fund had been lowered in 2018.
The Board took into account the Fund’s investment performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.
Investment management and sub-advisory fee rates
The Board reviewed and considered the contractual fee rates payable by the Fund to Funds Management under the Management Agreement, as well as the contractual fee rates payable by the Fund to Funds Management for class-level administrative services under a Class-Level Administration Agreement, which include, among other things, class-level transfer agency and sub-transfer agency costs (collectively, the “Management Rates”). The Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Funds Management to the Sub-Adviser for investment sub-advisory services.
Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were lower than, equal to or in range of the sum of these average rates for the Fund’s expense Groups for all share classes.
The Board also received and considered information about the portion of the total management fee that was retained by Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Funds Management and not delegated to or assumed by the Sub-Adviser, and about Funds Management’s on-going oversight services. Given the affiliation between Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of fees between them.
The Board also received and considered information about the nature and extent of services offered and fee rates charged by Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing proprietary mutual funds compared with those associated with managing assets of other types of clients, including third-party sub-advised fund clients and non-mutual fund clients such as institutional separate accounts.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Funds Management under the Management Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable.
36 | Retail Money Market Funds
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Other information (unaudited)
Profitability
The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of both WFAM and Wells Fargo & Co. (“Wells Fargo”) from providing services to the fund family as a whole. The Board noted that the Sub-Adviser’s profitability information with respect to providing services to the Fund and other funds in the family was subsumed in the WFAM and Wells Fargo profitability analysis.
Funds Management reported on the methodologies and estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size, type and age of fund.
Based on its review, the Board did not deem the profits reported by Funds Management, WFAM or Wells Fargo from services provided to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.
Economies of scale
The Board received and considered information about the potential for Funds Management to experience economies of scale in the provision of management services to the Fund, the difficulties of calculating economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with shareholders. The Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size, and the size of the Fund in relation to such breakpoints. The Board considered that in addition to management fee breakpoints, Funds Management shares potential economies of scale from its management business in a variety of ways, including through fee waiver and expense reimbursement arrangements, services that benefit shareholders, competitive management fee rates set at the outset without regard to breakpoints, and investments in the business intended to enhance services available to shareholders.
The Board concluded that Funds Management’s arrangements with respect to the Fund, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.
Other benefits to Funds Management and the Sub-Adviser
The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that various affiliates of Funds Management may receive distribution-related fees, shareholder servicing payments and sub-transfer agency fees in respect of shares sold or held through them and services provided.
The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser, fees earned by Funds Management and the Sub-Adviser from managing a private investment vehicle for the fund family’s securities lending collateral, and commissions earned by an affiliated broker from portfolio transactions.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.
Conclusion
At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory Agreements for a one-year term and determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable.
Retail Money Market Funds | 37
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Other information (unaudited)
LIQUIDITY RISK MANAGEMENT PROGRAM
In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), Wells Fargo Funds Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) on behalf of each of its series, including the Fund, which is reasonably designed to assess and manage the Fund’s liquidity risk. “Liquidity risk” is defined as the risk that the Fund is unable to meet redemption requests without significantly diluting remaining investors’ interests in the Fund. The Trust’s Board of Trustees (the “Board”) previously approved the designation of Wells Fargo Funds Management, LLC (“Funds Management”), the Fund’s investment manager, as the administrator of the Program, and Funds Management has established a Liquidity Risk Management Council composed of personnel from multiple departments within Funds Management and its affiliates to assist Funds Management in the implementation and on-going administration of the Program.
The Program is comprised of various components designed to support the assessment and/or management of liquidity risk, including: (1) the periodic assessment (no less frequently than annually) of certain factors that influence the Fund’s liquidity risk; (2) the periodic classification (no less frequently than monthly) of the Fund’s investments into one of four liquidity categories that reflect an estimate of their liquidity under current market conditions; (3) a 15% limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); (4) to the extent the Fund does not invest primarily in “highly liquid investments” (as defined under the Liquidity Rule), the determination of a minimum percentage of the Fund’s assets that generally will be invested in highly liquid investments (an “HLIM”); (5) if the Fund has established an HLIM, the periodic review (no less frequently than annually) of the HLIM and the adoption of policies and procedures for responding to a shortfall of the Fund’s “highly liquid investments” below its HLIM; and (6) periodic reporting to the Board.
At a meeting of the Board held on May 26 and 28, 2020, the Board received a written report (the “Report”) from Funds Management that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation. The Report covered the initial period from December 1, 2018 through December 31, 2019 (the “Reporting Period”). No significant liquidity events impacting the Fund were noted in the Report. There were no material changes to the Program during the Reporting Period. The Report concluded that the Program is operating effectively to assess and manage the Fund’s liquidity risk, and that the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund’s liquidity developments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other risks to which an investment in the Fund may be subject.
38 | Retail Money Market Funds
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For more information
More information about Wells Fargo Funds is available free upon request. To obtain literature, please write, visit the Fund’s website, or call:
Wells Fargo Funds
P.O. Box 219967
Kansas City, MO 64121-9967
Website: wfam.com
Individual investors: 1-800-222-8222
Retail investment professionals: 1-888-877-9275
Institutional investment professionals: 1-866-765-0778
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-260-5969 or visit the Fund’s website at wfam.com. Read the prospectus carefully before you invest or send money.
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).
This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind—including a recommendation for any specific investment, strategy, or plan.
INVESTMENT PRODUCTS: NOT FDIC INSURED ◾ NO BANK GUARANTEE ◾ MAY LOSE VALUE
© 2020 Wells Fargo & Company. All rights reserved
PAR-0820-01045 09-20
SA309/SAR309 07-20
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Semi-Annual Report
July 31, 2020
Government Money Market Funds
∎ | Wells Fargo Treasury Plus Money Market Fund |
Beginning on January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, paper copies of the Wells Fargo Funds’ annual and semi-annual shareholder reports issued after this date will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Funds’ website, and you will be notified by mail each time a report is posted and provided with a website address to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling 1-800-222-8222 or by enrolling at wellsfargo.com/advantagedelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports; if you invest directly with the Fund, you can call 1-800-222-8222. Your election to receive reports in paper will apply to all Wells Fargo Funds held in your account with your financial intermediary or, if you are a direct investor, to all Wells Fargo Funds that you hold.
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Sign up for electronic delivery of prospectuses and shareholder reports at wellsfargo.com/ |
The views expressed and any forward-looking statements are as of July 31, 2020, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Asset Management. Discussions of individual securities, or the markets generally, or any Wells Fargo Fund 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 and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.
INVESTMENT PRODUCTS: NOT FDIC INSURED ◾ NO BANK GUARANTEE ◾ MAY LOSE VALUE
Government Money Market Funds | 1
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Letter to shareholders (unaudited)
Andrew Owen
President
Wells Fargo Funds
Dear Shareholder:
We are pleased to offer you this semi-annual report for the Wells Fargo Treasury Plus Money Market Fund for the six-month period that ended July 31, 2020. Global stock markets tumbled in February and March as governments took unprecedented measures to stop the spread of the coronavirus at the expense of short-term economic output. However, most markets rebounded from April on to offset much of the losses as central banks attempted to bolster capital markets and confidence. Fixed-income markets generally performed well, with the exception of high-yield bonds, as U.S. bonds overall achieved modest gains. U.S. and emerging market equities outperformed international developed market equities over the six-month period.
For the period, U.S. stocks, based on the S&P 500 Index,1 returned 2.42% and international stocks, as measured by the MSCI ACWI ex USA Index (Net),2 fell 4.47%. The MSCI EM Index (Net)3 gained 3.08%. For bond investors, the Bloomberg Barclays U.S. Aggregate Bond Index4 added 5.69%, the Bloomberg Barclays Global Aggregate ex-USD Index5 returned 4.29%, the Bloomberg Barclays Municipal Bond Index6 returned 1.96%, and the ICE BofA U.S. High Yield Index7 lost 0.23%.
Concerns about the coronavirus took over the market.
In February, the coronavirus became the major market focus. Fears of the virus’s impact on global growth led to expectations of increased global central bank monetary policy support. That led the 10-year U.S. Treasury yield to fall to an all-time low of 1.1% by the end of the month. Although equity markets initially shrugged off concerns about the outbreak, focusing instead on strong fourth-quarter earnings and improving business confidence in January, market sentiment turned sharply lower toward month-end. Oil prices tumbled as Russia and the Organization of the Petroleum Exporting Countries compounded a major decline in oil demand with a brutal price war, causing the price of West Texas Intermediate crude oil to plummet.
1 | The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock’s weight in the index proportionate to its market value. You cannot invest directly in an index. |
2 | The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the United States. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. You cannot invest directly in an index. |
3 | The MSCI Emerging Markets (EM) Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure equity market performance of emerging markets. You cannot invest directly in an index. |
4 | The Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. You cannot invest directly in an index. |
5 | The Bloomberg Barclays Global Aggregate ex-USD Index is an unmanaged index that provides a broad-based measure of the global investment-grade fixed-income markets excluding the U.S.-dollar-denominated debt market. You cannot invest directly in an index. |
6 | 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. |
7 | The ICE BofA U.S. High Yield Index is a market-capitalization-weighted index of domestic and Yankee high-yield bonds. The index tracks the performance of high-yield securities traded in the U.S. bond market. You cannot invest directly in an index. Copyright 2020. ICE Data Indices, LLC. All rights reserved. |
2 | Government Money Market Funds
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Letter to shareholders (unaudited)
The global spread of the coronavirus led many countries to clamp down on social and business-related activity in order to contain the virus from causing even greater devastation and overwhelming the health care system. This abrupt stoppage of economic activity led to the sharp deceleration of global output, sending economies into a deep contraction. Central bank responses were swift, as they slashed interest rates and expanded quantitative easing programs to restore liquidity and confidence to the markets. In the U.S., the Federal Reserve launched several lending programs, funding investment-grade bonds, money market mutual funds, and commercial paper while purchasing Treasuries, mortgage-backed securities, and overnight repurchase agreements. Meanwhile, stock markets tumbled quickly into a bear market, ending the longest bull stock market in U.S. history.
Markets rebounded strongly in April, fueled by unprecedented government and central bank stimulus measures. The U.S. economy contracted by an annualized 5.0% pace in the first quarter, with 30 million new unemployment insurance claims in six weeks. In the eurozone, first-quarter real gross domestic product (GDP) shrank 3.8%, with the composite April Flash Purchasing Managers’ Index, a monthly survey of purchasing managers, falling to an all-time low of 13.5. The European Central Bank expanded its quantitative easing to include the purchase of additional government bonds of countries with the greatest virus-related need, including Italy and Spain. China’s first-quarter GDP fell by 6.8% year over year. However, retail sales, production, and investment showed signs of recovery. Extreme oil-price volatility continued as global supply far exceeded demand.
In May, the equity market rebound continued, with widespread strong monthly gains. Investors regained confidence on reports of early signs of success in human trials of a coronavirus vaccine. Growth stocks continued to outperform value stocks while returns on global government bonds were generally flat. In the U.S., a gap grew between the stock market rebound and devastating economic data points, including an April unemployment rate of 14.7%, the highest level since World War II. Purchasing managers’ indices continued to reflect weakening activity in May in both the manufacturing and services sectors. U.S. corporate earnings reports indicated a 14% year-over-year contraction in earnings from the first quarter of 2019. However, high demand for technology, driven by remote activity, helped maintain robust information technology sector earnings, which helped drive powerful well-known technology stocks higher.
Financial markets posted widely positive returns in June despite ongoing economic weakness and high levels of uncertainty on the containment of the coronavirus and the timing of an effective vaccine. There were hopeful signs as economies reopened, with both U.S. and U.K. retail sales rebounding substantially in May. However, year over year, sales remained depressed. Vitally important to market sentiment was the ongoing commitment by central banks globally to do all they could to provide economic support through liquidity and low borrowing costs. U.S. economic activity was aided by one-time $1,200 stimulus checks and $600 bonus weekly unemployment benefits due to expire at the end of July. However, unemployment remained in the double digits, easing somewhat from 14.7% in April to 11.1% in June. During June, numerous states reported alarming increases in coronavirus cases. China’s economic recovery picked up momentum in June, though it remained far from a full recovery.
July was a broadly positive month for both global equities and fixed income. However, economic data and a resurgence of coronavirus cases pointed to the vulnerability of the global economy and the ongoing imperative to regain control of the pandemic. Second-quarter GDP shrank by 9.5% and 12.1% in the U.S. and eurozone, respectively, from the previous quarter. In contrast, China reported a 3.2% year-over-year expansion in its second-quarter GDP. U.S. unemployment remained historically high despite adding 1.8 million jobs in July, with a double-digit jobless rate persisting. However, manufacturing activity grew in both the U.S. and eurozone. In Asia, while China’s manufacturing sector
“The global spread of the coronavirus led many countries to clamp down on social and business-related activity in order to contain the virus from causing even greater devastation and overwhelming the health care system.”
“Financial markets posted widely positive returns in June despite ongoing economic weakness and high levels of uncertainty on the containment of the coronavirus and the timing of an effective vaccine.”
Government Money Market Funds | 3
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Letter to shareholders (unaudited)
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For further information about your Fund, contact your investment professional, visit our website at wfam.com, or call us directly at 1-800-222-8222. |
continued to expand, activity in Japan and South Korea contracted. In July, a rising concern was the rapid and broad reemergence of coronavirus infections. Despite the ongoing promise of positive early-stage vaccine trial results, economic activity could be held back by the continued spread of the virus and the end of a widely received $600-a-week bonus unemployment benefit in late July.
Don’t let short-term uncertainty derail long-term investment goals.
Periods of investment uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Funds offers more than 100 mutual funds spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.
Thank you for choosing to invest with Wells Fargo Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.
Sincerely,
Andrew Owen
President
Wells Fargo Funds
4 | Government Money Market Funds
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Performance highlights (unaudited)
Investment objective
The Fund seeks current income, while preserving capital and liquidity.
Manager
Wells Fargo Funds Management, LLC
Subadviser
Wells Capital Management Incorporated
Portfolio managers
Michael C. Bird, CFA®‡
Jeffrey L. Weaver, CFA®‡
Laurie White
Average annual total returns (%) as of July 31, 2020
Expense ratios1 (%) | ||||||||||||||||||||||
Inception date | 1 year | 5 year | 10 year | Gross | Net2 | |||||||||||||||||
Class A (PIVXX) | 7-28-2003 | 0.76 | 0.69 | 0.35 | 0.61 | 0.60 | ||||||||||||||||
Administrator Class (WTPXX) | 3-31-2008 | 0.93 | 0.86 | 0.44 | 0.34 | 0.34 | ||||||||||||||||
Institutional Class (PISXX) | 8-11-1995 | 1.04 | 0.99 | 0.50 | 0.22 | 0.20 | ||||||||||||||||
Select Class3 | 3-15-2019 | 1.10 | 1.00 | 0.51 | 0.18 | 0.14 | ||||||||||||||||
Service Class (PRVXX) | 10-1-1985 | 0.85 | 0.79 | 0.40 | 0.51 | 0.45 |
Yield summary (%) as of July 31, 20202
Class A | Administrator Class | Institutional Class | Select Class | Service Class | ||||||||||||||
7-day current yield | 0.01 | 0.01 | 0.04 | 0.10 | 0.01 | |||||||||||||
7-day compound yield | 0.01 | 0.01 | 0.04 | 0.10 | 0.01 | |||||||||||||
30-day simple yield | 0.01 | 0.01 | 0.05 | 0.11 | 0.01 | |||||||||||||
30-day compound yield | 0.01 | 0.01 | 0.05 | 0.11 | 0.01 |
Figures quoted represent past performance, which is no guarantee of future results, and do not reflect taxes that a shareholder may pay on an investment in a fund. Investment returns will fluctuate. The Fund’s yield figures more closely reflect the current earnings of the Fund than the total return figures. Current performance may be lower or higher than the performance data quoted, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s website, wfam.com.
Money market funds are sold without a front-end sales charge or contingent deferred sales charge. Other fees and expenses apply to an investment in the Fund and are described in the Fund’s current prospectus.
For government money market funds: You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
Please see footnotes on page 7.
6 | Government Money Market Funds
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Performance highlights (unaudited)
Portfolio composition as of July 31, 20204 |
|
Effective maturity distribution as of July 31, 20204 |
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Weighted average maturity as of July 31, 20205 | ||||
38 days |
Weighted average life as of July 31, 20206 | ||||
93 days |
‡ | CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. |
1 | Reflects the expense ratios as stated in the most recent prospectuses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report. |
2 | The manager has contractually committed through May 31, 2021, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.60% for Class A, 0.34% for Administrator Class, 0.20% for Institutional Class, 0.14% for Select Class, and 0.45% for Service Class. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses (if any), and extraordinary expenses are excluded from the expense caps. Prior to or after the commitment expiration date, the caps may be increased or the commitment to maintain the caps may be terminated only with the approval of the Board of Trustees. Without these caps, the Fund’s returns would have been lower. Without waived fees and/or reimbursed expenses, the Fund’s 7-day current yield would have been -0.37%, -0.10%, 0.02%, 0.06%, and -0.27% for Class A, Administrator Class, Institutional Class, Select Class, and Service Class, respectively. 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 prospectuses. |
3 | Historical performance shown for the Select Class shares prior to their inception reflects the performance of the Institutional Class shares, and includes the higher expenses applicable to Institutional Class shares. If these expenses had not been included, returns for Select Class shares would be higher. |
4 | Amounts are calculated based on the total investments of the Fund. These amounts are subject to change and may have changed since the date specified. |
5 | Weighted Average Maturity (WAM): WAM is an average of the effective maturities of all securities held in the portfolio, weighted by each security’s percentage of total investments. The maturity of a portfolio security is the period remaining until the date on which the principal amount is unconditionally required to be paid, or in the case of a security called for redemption, the date on which the redemption payment is unconditionally required to be made. WAM calculations allow for the maturities of certain securities with demand features or periodic interest rate resets to be shortened. WAM is a way to measure a fund’s sensitivity to potential interest rate changes. WAM is subject to change and may have changed since the date specified. |
6 | Weighted Average Life (WAL): WAL is an average of the final maturities of all securities held in the portfolio, weighted by their percentage of total investments. The maturity of a portfolio security is the period remaining until the date on which the principal amount is unconditionally required to be paid, or in the case of a security called for redemption, the date on which the redemption payment is unconditionally required to be made. In contrast to WAM, the calculation of WAL allows for the maturities of certain securities with demand features to be shortened, but not the periodic interest rate resets. WAL is a way to measure a fund’s potential sensitivity to credit spread changes. WAL is subject to change and may have changed since the date specified. |
Government Money Market Funds | 7
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As a shareholder of the Fund, you incur ongoing costs, including management fees, shareholder servicing fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from February 1, 2020 to July 31, 2020.
Actual expenses
The “Actual” line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Actual” line under the heading entitled “Expenses paid during period” for your applicable class of shares to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The “Hypothetical” line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds.
Beginning account value 2-1-2020 | Ending account value 7-31-2020 | Expenses paid during the period1 | Annualized net expense ratio | |||||||||||||
Class A | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,001.17 | $ | 1.79 | 0.36 | % | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.07 | $ | 1.81 | 0.36 | % | ||||||||
Administrator Class | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,001.56 | $ | 1.39 | 0.28 | % | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.47 | $ | 1.41 | 0.28 | % | ||||||||
Institutional Class | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,002.00 | $ | 1.00 | 0.20 | % | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.87 | $ | 1.01 | 0.20 | % | ||||||||
Select Class | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,002.29 | $ | 0.70 | 0.14 | % | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,024.17 | $ | 0.70 | 0.14 | % | ||||||||
Service Class | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,001.37 | $ | 1.59 | 0.32 | % | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.27 | $ | 1.61 | 0.32 | % |
1 | Expenses paid is equal to the annualized net expense ratio of each class multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one-half-year period). |
8 | Government Money Market Funds
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Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Repurchase Agreements ^^: 42.20% | ||||||||||||||||
ANZ Bank, dated 7-31-2020, maturity value $255,001,542 (1) | 0.10 | % | 8-3-2020 | $ | 254,999,417 | $ | 254,999,417 | |||||||||
Bank of America, dated 7-31-2020, maturity value $200,001,333 (2) | 0.08 | 8-3-2020 | 200,000,000 | 200,000,000 | ||||||||||||
Barclays Bank plc, dated 7-31-2020, maturity value $350,002,333 (3) | 0.08 | 8-3-2020 | 350,000,000 | 350,000,000 | ||||||||||||
Barclays Bank plc, dated 7-31-2020, maturity value $500,004,167 (4) | 0.10 | 8-3-2020 | 500,000,000 | 500,000,000 | ||||||||||||
BNP Paribas, dated 7-31-2020, maturity value $1,000,007,500 (5) | 0.09 | 8-3-2020 | 1,000,000,000 | 1,000,000,000 | ||||||||||||
BNP Paribas, dated 7-31-2020, maturity value $750,006,250 (6) | 0.10 | 8-3-2020 | 750,000,000 | 750,000,000 | ||||||||||||
BNYM, dated 7-31-2020, maturity value $750,006,250 (7) | 0.10 | 8-3-2020 | 750,000,000 | 750,000,000 | ||||||||||||
Citigroup Global Markets Incorporated, dated 7-30-2020, maturity value $250,003,889 (8) | 0.08 | 8-6-2020 | 250,000,000 | 250,000,000 | ||||||||||||
Credit Suisse, dated 7-31-2020, maturity value $1,750,011,667 (9) | 0.08 | 8-3-2020 | 1,750,000,000 | 1,750,000,000 | ||||||||||||
Fixed Income Clearing Corporation, dated 7-31-2020, maturity value $645,004,838 (10) | 0.09 | 8-3-2020 | 645,000,000 | 645,000,000 | ||||||||||||
Fixed Income Clearing Corporation, dated 7-31-2020, maturity value $750,006,413 (11) | 0.10 | 8-3-2020 | 750,000,163 | 750,000,163 | ||||||||||||
ING Financial Markets LLC, dated 7-31-2020, maturity value $100,010,813 (12) | 0.10 | 8-3-2020 | 100,009,980 | 100,009,980 | ||||||||||||
JPMorgan Securities, dated 7-27-2020, maturity value $200,003,889 (13) | 0.10 | 8-3-2020 | 200,000,000 | 200,000,000 | ||||||||||||
JPMorgan Securities, dated 7-1-2020, maturity value $100,011,917 (14)¢øø§ | 0.13 | 8-3-2020 | 100,000,000 | 100,000,000 | ||||||||||||
MetLife Incorporated, dated 7-31-2020, maturity value $250,005,764 (15) | 0.10 | 8-3-2020 | 250,003,681 | 250,003,681 | ||||||||||||
MUFG Securities Canada Limited, dated 7-31-2020, maturity value $250,001,667 (16) | 0.08 | 8-3-2020 | 250,000,000 | 250,000,000 | ||||||||||||
MUFG Securities Canada Limited, dated 7-30-2020, maturity value $250,003,889 (17) | 0.08 | 8-6-2020 | 250,000,000 | 250,000,000 | ||||||||||||
Prudential, dated 7-31-2020, maturity value $58,158,033 (18) | 0.11 | 8-3-2020 | 58,157,500 | 58,157,500 | ||||||||||||
Prudential, dated 7-31-2020, maturity value $6,676,311 (19) | 0.11 | 8-3-2020 | 6,676,250 | 6,676,250 | ||||||||||||
RBC Dominion Securities Incorporated, dated 7-27-2020, maturity value $250,004,375 (20) | 0.09 | 8-3-2020 | 250,000,000 | 250,000,000 | ||||||||||||
RBS Securities Incorporated, dated 7-31-2020, maturity value $1,000,007,500 (21) | 0.09 | 8-3-2020 | 1,000,000,000 | 1,000,000,000 | ||||||||||||
Societe Generale NY, dated 7-6-2020, maturity value $200,022,389 (22) | 0.13 | 8-6-2020 | 200,000,000 | 200,000,000 | ||||||||||||
Societe Generale NY, dated 7-14-2020, maturity value $150,016,250 (23) | 0.13 | 8-13-2020 | 150,000,000 | 150,000,000 | ||||||||||||
Standard Chartered Bank, dated 7-31-2020, maturity value $250,001,667 (24) | 0.08 | 8-3-2020 | 250,000,000 | 250,000,000 | ||||||||||||
Standard Chartered Bank, dated 7-29-2020, maturity value $500,007,778 (25) | 0.08 | 8-5-2020 | 500,000,000 | 500,000,000 | ||||||||||||
Standard Chartered Bank, dated 7-31-2020, maturity value $147,031,225 (26) | 0.10 | 8-3-2020 | 147,030,000 | 147,030,000 | ||||||||||||
Total Repurchase Agreements (Cost $10,911,876,991) |
| 10,911,876,991 | ||||||||||||||
|
| |||||||||||||||
Treasury Debt : 58.35% | ||||||||||||||||
U.S. Cash Management Bill %%(z) | 0.11 | 1-5-2021 | 150,000,000 | 149,927,331 | ||||||||||||
U.S. Cash Management Bill (z)## | 0.13 | 11-17-2020 | 150,000,000 | 149,928,014 | ||||||||||||
U.S. Cash Management Bill (z) | 0.13 | 12-29-2020 | 100,000,000 | 99,945,733 | ||||||||||||
U.S. Cash Management Bill (z) | 0.13 | 8-4-2020 | 280,000,000 | 279,998,969 | ||||||||||||
U.S. Cash Management Bill (z) | 0.14 | 9-29-2020 | 250,000,000 | 249,938,063 | ||||||||||||
U.S. Cash Management Bill (z) | 0.14 | 9-8-2020 | 295,000,000 | 294,958,453 | ||||||||||||
U.S. Cash Management Bill (z) | 0.14 | 10-13-2020 | 225,000,000 | 224,935,952 | ||||||||||||
U.S. Cash Management Bill (z) | 0.15 | 11-10-2020 | 200,000,000 | 199,919,425 | ||||||||||||
U.S. Cash Management Bill (z) | 0.15 | 12-22-2020 | 150,000,000 | 149,913,491 | ||||||||||||
U.S. Cash Management Bill (z) | 0.15 | 10-27-2020 | 300,000,000 | 299,894,694 |
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 9
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Treasury Debt (continued) | ||||||||||||||||
U.S. Cash Management Bill (z) | 0.15 | % | 8-11-2020 | $ | 250,000,000 | $ | 249,991,672 | |||||||||
U.S. Cash Management Bill (z) | 0.15 | 10-20-2020 | 300,000,000 | 299,901,763 | ||||||||||||
U.S. Cash Management Bill (z) | 0.16 | 12-8-2020 | 150,000,000 | 149,916,656 | ||||||||||||
U.S. Cash Management Bill (z) | 0.16 | 12-15-2020 | 100,000,000 | 99,941,375 | ||||||||||||
U.S. Cash Management Bill (z) | 0.16 | 10-6-2020 | 150,000,000 | 149,957,689 | ||||||||||||
U.S. Cash Management Bill (z) | 0.16 | 11-3-2020 | 300,000,000 | 299,875,928 | ||||||||||||
U.S. Cash Management Bill (z) | 0.16 | 12-1-2020 | 50,000,000 | 49,973,000 | ||||||||||||
U.S. Cash Management Bill (z) | 0.17 | 9-22-2020 | 150,000,000 | 149,963,854 | ||||||||||||
U.S. Cash Management Bill (z) | 0.19 | 11-24-2020 | 100,000,000 | 99,941,640 | ||||||||||||
U.S. Cash Management Bill (z) | 0.19 | 9-15-2020 | 250,000,000 | 249,943,831 | ||||||||||||
U.S. Treasury Bill (z) | 0.12 | 8-27-2020 | 350,000,000 | 349,970,925 | ||||||||||||
U.S. Treasury Bill (z) | 0.13 | 8-20-2020 | 300,000,000 | 299,982,139 | ||||||||||||
U.S. Treasury Bill (z) | 0.13 | 8-25-2020 | 310,000,000 | 309,975,732 | ||||||||||||
U.S. Treasury Bill (z) | 0.13 | 1-21-2021 | 100,000,000 | 99,938,013 | ||||||||||||
U.S. Treasury Bill (z) | 0.13 | 8-13-2020 | 150,000,000 | 149,994,507 | ||||||||||||
U.S. Treasury Bill (z) | 0.13 | 10-22-2020 | 80,000,000 | 79,976,411 | ||||||||||||
U.S. Treasury Bill (z) | 0.13 | 1-28-2021 | 120,000,000 | 119,920,592 | ||||||||||||
U.S. Treasury Bill (z) | 0.14 | 11-19-2020 | 200,000,000 | 199,918,400 | ||||||||||||
U.S. Treasury Bill (z) | 0.14 | 9-17-2020 | 200,000,000 | 199,965,375 | ||||||||||||
U.S. Treasury Bill (z) | 0.14 | 8-18-2020 | 250,000,000 | 249,985,553 | ||||||||||||
U.S. Treasury Bill (z) | 0.14 | 11-27-2020 | 200,000,000 | 199,910,583 | ||||||||||||
U.S. Treasury Bill (z) | 0.14 | 9-1-2020 | 200,000,000 | 199,976,800 | ||||||||||||
U.S. Treasury Bill (z) | 0.14 | 11-12-2020 | 350,000,000 | 349,858,495 | ||||||||||||
U.S. Treasury Bill (z) | 0.14 | 11-5-2020 | 250,000,000 | 249,905,510 | ||||||||||||
U.S. Treasury Bill (z) | 0.15 | 10-1-2020 | 250,000,000 | 249,939,157 | ||||||||||||
U.S. Treasury Bill (z) | 0.15 | 1-14-2021 | 200,000,000 | 199,859,689 | ||||||||||||
U.S. Treasury Bill (z) | 0.16 | 9-24-2020 | 250,000,000 | 249,942,944 | ||||||||||||
U.S. Treasury Bill (z) | 0.16 | 10-29-2020 | 150,000,000 | 149,942,363 | ||||||||||||
U.S. Treasury Bill (z) | 0.16 | 1-7-2021 | 100,000,000 | 99,930,222 | ||||||||||||
U.S. Treasury Bill (z) | 0.17 | 12-31-2020 | 50,000,000 | 49,965,417 | ||||||||||||
U.S. Treasury Bill (z) | 0.17 | 12-3-2020 | 50,000,000 | 49,971,787 | ||||||||||||
U.S. Treasury Bill (z) | 0.18 | 10-8-2020 | 300,000,000 | 299,902,861 | ||||||||||||
U.S. Treasury Bill (z) | 0.19 | 12-10-2020 | 100,000,000 | 99,931,917 | ||||||||||||
U.S. Treasury Bill (z) | 0.19 | 12-17-2020 | 50,000,000 | 49,964,111 | ||||||||||||
U.S. Treasury Bill (z) | 0.22 | 9-10-2020 | 270,000,000 | 269,936,773 | ||||||||||||
U.S. Treasury Bill (z) | 0.24 | 10-15-2020 | 300,000,000 | 299,852,327 | ||||||||||||
U.S. Treasury Bill (z) | 0.40 | 8-6-2020 | 250,000,000 | 249,991,667 | ||||||||||||
U.S. Treasury Bill (z) | 0.47 | 9-3-2020 | 320,000,000 | 319,870,842 | ||||||||||||
U.S. Treasury Note | 1.63 | 11-30-2020 | 10,000,000 | 9,999,486 | ||||||||||||
U.S. Treasury Note (U.S. Treasury 3 Month Bill Money Market Yield +0.05%) ± | 0.15 | 10-31-2020 | 528,000,000 | 527,940,292 | ||||||||||||
U.S. Treasury Note (U.S. Treasury 3 Month Bill Money Market Yield +0.06%) ± | 0.16 | 7-31-2022 | 200,000,000 | 200,000,000 | ||||||||||||
U.S. Treasury Note (U.S. Treasury 3 Month Bill Money Market Yield +0.11%) ± | 0.22 | 4-30-2022 | 730,000,000 | 730,142,521 | ||||||||||||
U.S. Treasury Note (U.S. Treasury 3 Month Bill Money Market Yield +0.12%) ± | 0.22 | 1-31-2021 | 520,000,000 | 519,897,895 | ||||||||||||
U.S. Treasury Note (U.S. Treasury 3 Month Bill Money Market Yield +0.14%) ± | 0.24 | 4-30-2021 | 490,000,000 | 489,903,033 | ||||||||||||
U.S. Treasury Note (U.S. Treasury 3 Month Bill Money Market Yield +0.15%) ± | 0.26 | 1-31-2022 | 405,000,000 | 404,826,308 | ||||||||||||
U.S. Treasury Note (U.S. Treasury 3 Month Bill Money Market Yield +0.22%) ± | 0.33 | 7-31-2021 | 370,000,000 | 369,867,627 | ||||||||||||
U.S. Treasury Note (U.S. Treasury 3 Month Bill Money Market Yield +0.30%) ± | 0.41 | 10-31-2021 | 415,000,000 | 415,225,861 |
The accompanying notes are an integral part of these financial statements.
10 | Government Money Market Funds
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Treasury Debt (continued) | ||||||||||||||||
U.S. Treasury Note | 1.13 | % | 2-28-2021 | $ | 55,000,000 | $ | 55,193,438 | |||||||||
U.S. Treasury Note | 1.13 | 7-31-2021 | 30,000,000 | 30,298,086 | ||||||||||||
U.S. Treasury Note | 1.38 | 8-31-2020 | 90,000,000 | 89,976,750 | ||||||||||||
U.S. Treasury Note | 1.38 | 9-15-2020 | 120,000,000 | 119,967,464 | ||||||||||||
U.S. Treasury Note | 1.38 | 9-30-2020 | 50,000,000 | 49,988,620 | ||||||||||||
U.S. Treasury Note | 1.50 | 8-15-2020 | 30,000,000 | 30,003,944 | ||||||||||||
U.S. Treasury Note | 1.63 | 10-15-2020 | 10,000,000 | 9,999,842 | ||||||||||||
U.S. Treasury Note | 1.75 | 12-31-2020 | 90,000,000 | 90,220,889 | ||||||||||||
U.S. Treasury Note | 1.88 | 12-15-2020 | 40,000,000 | 40,208,444 | ||||||||||||
U.S. Treasury Note | 2.00 | 11-30-2020 | 20,000,000 | 20,022,376 | ||||||||||||
U.S. Treasury Note | 2.00 | 1-15-2021 | 40,000,000 | 40,177,864 | ||||||||||||
U.S. Treasury Note | 2.00 | 2-28-2021 | 154,000,000 | 155,231,952 | ||||||||||||
U.S. Treasury Note | 2.13 | 8-31-2020 | 30,000,000 | 30,010,697 | ||||||||||||
U.S. Treasury Note | 2.25 | 2-15-2021 | 105,000,000 | 105,960,559 | ||||||||||||
U.S. Treasury Note | 2.25 | 3-31-2021 | 80,000,000 | 80,818,813 | ||||||||||||
U.S. Treasury Note | 2.38 | 12-31-2020 | 30,000,000 | 30,203,322 | ||||||||||||
U.S. Treasury Note | 2.38 | 3-15-2021 | 30,000,000 | 30,361,587 | ||||||||||||
U.S. Treasury Note | 2.38 | 4-15-2021 | 80,000,000 | 81,125,789 | ||||||||||||
U.S. Treasury Note | 2.50 | 12-31-2020 | 60,000,000 | 60,217,023 | ||||||||||||
U.S. Treasury Note | 2.50 | 2-28-2021 | 20,000,000 | 20,108,797 | ||||||||||||
U.S. Treasury Note | 2.63 | 8-15-2020 | 45,000,000 | 45,014,480 | ||||||||||||
U.S. Treasury Note | 2.63 | 8-31-2020 | 30,000,000 | 30,022,158 | ||||||||||||
U.S. Treasury Note | 2.63 | 11-15-2020 | 165,000,000 | 165,748,282 | ||||||||||||
U.S. Treasury Note | 2.75 | 9-30-2020 | 170,000,000 | 170,300,195 | ||||||||||||
U.S. Treasury Note | 2.75 | 11-30-2020 | 65,000,000 | 65,230,739 | ||||||||||||
U.S. Treasury Note | 2.88 | 10-31-2020 | 90,000,000 | 90,267,554 | ||||||||||||
U.S. Treasury Note | 3.63 | 2-15-2021 | 45,000,000 | 45,498,239 | ||||||||||||
U.S. Treasury Note | 8.13 | 5-15-2021 | 40,000,000 | 42,496,032 | ||||||||||||
Total Treasury Debt (Cost $15,089,525,603) |
| 15,089,525,603 | ||||||||||||||
|
|
Total investments in securities (Cost $26,001,402,594) | 100.55 | % | 26,001,402,594 | |||||
Other assets and liabilities, net | (0.55 | ) | (142,431,650 | ) | ||||
|
|
|
| |||||
Total net assets | 100.00 | % | $ | 25,858,970,944 | ||||
|
|
|
|
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 11
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
^^ | Collateralized by: |
(1) | U.S. government securities, 2.13%, 12-31-2021 to 2-29-2024, fair value including accrued interest is $259,100,915. |
(2) | U.S. government securities, 1.00% to 1.88%, 7-31-2022 to 2-15-2046, fair value including accrued interest is $204,000,017. |
(3) | U.S. government securities, 0.15% to 3.13%, 10-31-2020 to 5-15-2049, fair value including accrued interest is $357,000,022. |
(4) | U.S. government securities, 2.25% to 3.75%, 8-15-2027 to 11-15-2048, fair value including accrued interest is $510,000,044. |
(5) | U.S. government securities, 0.00% to 5.25%, 8-15-2020 to 2-15-2046, fair value including accrued interest is $1,020,000,043. |
(6) | U.S. government securities, 0.00% to 2.50%, 7-15-2021 to 2-28-2026, fair value including accrued interest is $765,000,094. |
(7) | U.S. government securities, 0.25% to 3.63%, 7-31-2025 to 5-15-2046, fair value including accrued interest is $762,838,958. |
(8) | U.S. government securities, 4.25% to 4.50%, 5-15-2039 to 11-15-2039, fair value including accrued interest is $255,000,066. |
(9) | U.S. government securities, 0.00% to 2.63%, 8-31-2020 to 6-30-2027, fair value including accrued interest is $1,785,011,900. |
(10) | U.S. government securities, 0.75% to 3.38%, 2-15-2045 to 11-15-2049, fair value including accrued interest is $657,900,062. |
(11) | U.S. government securities, 0.88% to 3.00%, 2-15-2046 to 2-15-2047, fair value including accrued interest is $765,000,167. |
(12) | U.S. government securities, 2.25% to 2.88%, 5-15-2043 to 8-15-2046, fair value including accrued interest is $102,051,000. |
(13) | U.S. government securities, 1.88%, 11-30-2021, fair value including accrued interest is $204,000,166. |
(14) | U.S. government securities, 1.63%, 11-15-2022, fair value including accrued interest is $102,000,014. |
(15) | U.S. government securities, 1.38% to 4.50%, 1-31-2021 to 2-15-2036, fair value including accrued interest is $253,115,594. |
(16) | U.S. government securities, 0.00% to 3.00%, 12-3-2020 to 2-15-2049, fair value including accrued interest is $255,000,030. |
(17) | U.S. government securities, 0.75% to 4.25%, 11-15-2040 to 8-15-2048, fair value including accrued interest is $255,000,021. |
(18) | U.S. government securities, 0.00% to 3.00%, 11-15-2025 to 11-15-2047, fair value including accrued interest is $59,320,650. |
(19) | U.S. government securities, 0.00%, 11-15-2026, fair value is $6,809,775. |
(20) | U.S. government securities, 0.00% to 3.00%, 9-17-2020 to 5-15-2045, fair value including accrued interest is $255,000,004. |
(21) | U.S. government securities, 0.00%, 8-15-2020 to 5-15-2050, fair value is $1,020,000,030. |
(22) | U.S. government securities, 0.00% to 8.13%, 8-31-2020 to 11-15-2043, fair value including accrued interest is $204,000,000. |
(23) | U.S. government securities, 0.00% to 8.13%, 8-31-2020 to 5-15-2046, fair value including accrued interest is $153,000,000. |
(24) | U.S. government securities, 0.00% to 4.50%, 8-13-2020 to 11-15-2049, fair value including accrued interest is $255,000,033. |
(25) | U.S. government securities, 0.00% to 6.00%, 8-13-2020 to 2-15-2050, fair value including accrued interest is $510,000,002. |
(26) | U.S. government securities, 0.13%, 5-31-2022, fair value including accrued interest is $150,000,588. |
¢ | The security represents a long-dated and extendible repurchase agreement which automatically renews on previously set terms. The maturity date represents the next put date. |
øø | The interest rate is determined and reset by the issuer periodically depending upon the terms of the security. The rate shown is the rate in effect at period end. |
§ | The security is subject to a demand feature which reduces the effective maturity. |
%% | The security is purchased on a when-issued basis. |
(z) | Zero coupon security. The rate represents the current yield to maturity. |
## | All or a portion of this security is segregated for when-issued securities. |
± | Variable rate investment. The rate shown is the rate in effect at period end. |
The accompanying notes are an integral part of these financial statements.
12 | Government Money Market Funds
Table of Contents
Statement of assets and liabilities—July 31, 2020 (unaudited)
Assets | ||||
Investments in unaffiliated securities, at amortized cost | $ | 15,089,525,603 | ||
Investments in repurchase agreements, at amortized cost | 10,911,876,991 | |||
Cash | 128,130,003 | |||
Receivable for Fund shares sold | 702,092 | |||
Receivable for interest | 12,933,219 | |||
Prepaid expenses and other assets | 1,125,787 | |||
|
| |||
Total assets | 26,144,293,695 | |||
|
| |||
Liabilities | ||||
Payable for investments purchased | 280,204,933 | |||
Payable for Fund shares redeemed | 693,395 | |||
Management fee payable | 1,641,309 | |||
Dividends payable | 534,180 | |||
Administration fees payable | 1,825,429 | |||
Trustees’ fees and expenses payable | 1,461 | |||
Accrued expenses and other liabilities | 422,044 | |||
|
| |||
Total liabilities | 285,322,751 | |||
|
| |||
Total net assets | $ | 25,858,970,944 | ||
|
| |||
Net assets consist of | ||||
Paid-in capital | $ | 25,859,171,141 | ||
Total distributable loss | (200,197 | ) | ||
|
| |||
Total net assets | $ | 25,858,970,944 | ||
|
| |||
Computation of net asset value per share | ||||
Net assets – Class A | $ | 1,243,688,768 | ||
Shares outstanding – Class A1 | 1,243,630,646 | |||
Net asset value per share – Class A | $1.00 | |||
Net assets – Administrator Class | $ | 194,837,606 | ||
Shares outstanding – Administrator Class1 | 194,827,492 | |||
Net asset value per share – Administrator Class | $1.00 | |||
Net assets – Institutional Class | $ | 19,334,809,835 | ||
Shares outstanding – Institutional Class1 | 19,333,222,738 | |||
Net asset value per share – Institutional Class | $1.00 | |||
Net assets – Select Class | $ | 3,566,989,004 | ||
Shares outstanding – Select Class1 | 3,566,803,152 | |||
Net asset value per share – Select Class | $1.00 | |||
Net assets – Service Class | $ | 1,518,645,731 | ||
Shares outstanding – Service Class1 | 1,518,568,515 | |||
Net asset value per share – Service Class | $1.00 |
1 | The Fund has an unlimited number of authorized shares. |
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 13
Table of Contents
Statement of operations—six months ended July 31, 2020 (unaudited)
Investment income | ||||
Interest | $ | 51,133,490 | ||
|
| |||
Expenses | ||||
Management fee | 13,786,055 | |||
Administration fees |
| |||
Class A | 1,520,929 | |||
Administrator Class | 108,360 | |||
Institutional Class | 6,005,270 | |||
Select Class | 423,148 | |||
Service Class | 800,087 | |||
Shareholder servicing fees |
| |||
Class A | 1,728,211 | |||
Administrator Class | 108,161 | |||
Service Class | 1,666,611 | |||
Custody and accounting fees | 271,865 | |||
Professional fees | 25,572 | |||
Registration fees | 22,029 | |||
Shareholder report expenses | 26,277 | |||
Trustees’ fees and expenses | 10,339 | |||
Other fees and expenses | 110,152 | |||
|
| |||
Total expenses | 26,613,066 | |||
Less: Fee waivers and/or expense reimbursements |
| |||
Fund-level | (3,455,767 | ) | ||
Class A | (874,952 | ) | ||
Administrator Class | (32,219 | ) | ||
Select Class | (202,031 | ) | ||
Service Class | (657,943 | ) | ||
|
| |||
Net expenses | 21,390,154 | |||
|
| |||
Net investment income | 29,743,336 | |||
Net realized gains on investments | 12,367 | |||
|
| |||
Net increase in net assets resulting from operations | $ | 29,755,703 | ||
|
|
The accompanying notes are an integral part of these financial statements.
14 | Government Money Market Funds
Table of Contents
Statement of changes in net assets
Six months ended (unaudited) | Year ended January 31, 2020 | |||||||||||||||
Operations |
| |||||||||||||||
Net investment income | $ | 29,743,336 | $ | 293,902,436 | ||||||||||||
Net realized gains on investments | 12,367 | 77,169 | ||||||||||||||
|
| |||||||||||||||
Net increase in net assets resulting from operations | 29,755,703 | 293,979,605 | ||||||||||||||
|
| |||||||||||||||
Distributions to shareholders from net investment income and net realized gains | ||||||||||||||||
Class A | (1,489,616 | ) | (19,977,039 | ) | ||||||||||||
Administrator Class | (268,018 | ) | (1,774,446 | ) | ||||||||||||
Institutional Class | (24,009,198 | ) | (233,671,816 | ) | ||||||||||||
Select Class | (2,406,961 | ) | (14,829,426 | )1 | ||||||||||||
Service Class | (1,569,543 | ) | (23,697,019 | ) | ||||||||||||
Sweep Class | N/A | (1,237 | )2 | |||||||||||||
|
| |||||||||||||||
Total distributions to shareholders | (29,743,336 | ) | (293,950,983 | ) | ||||||||||||
|
| |||||||||||||||
Capital share transactions | Shares | Shares | ||||||||||||||
Proceeds from shares sold |
| |||||||||||||||
Class A | 4,555,105,409 | 4,555,105,409 | 8,983,130,114 | 8,983,130,114 | ||||||||||||
Administrator Class | 333,014,480 | 333,014,480 | 648,439,409 | 648,439,409 | ||||||||||||
Institutional Class | 50,205,789,564 | 50,205,789,564 | 92,366,552,858 | 92,366,552,858 | ||||||||||||
Select Class | 8,014,718,169 | 8,014,718,169 | 4,951,631,188 | 1 | 4,951,631,188 | 1 | ||||||||||
Service Class | 3,201,440,216 | 3,201,440,216 | 7,712,455,249 | 7,712,455,249 | ||||||||||||
|
| |||||||||||||||
66,310,067,838 | 114,662,208,818 | |||||||||||||||
|
| |||||||||||||||
Reinvestment of distributions |
| |||||||||||||||
Class A | 786,101 | 786,101 | 10,091,843 | 10,091,843 | ||||||||||||
Administrator Class | 277,651 | 277,651 | 1,739,531 | 1,739,531 | ||||||||||||
Institutional Class | 8,862,296 | 8,862,296 | 86,905,773 | 86,905,773 | ||||||||||||
Select Class | 2,017,859 | 2,017,859 | 11,537,230 | 1 | 11,537,230 | 1 | ||||||||||
Service Class | 384,484 | 384,484 | 5,190,841 | 5,190,841 | ||||||||||||
|
| |||||||||||||||
12,328,391 | 115,465,218 | |||||||||||||||
|
| |||||||||||||||
Payment for shares redeemed |
| |||||||||||||||
Class A | (4,691,145,946 | ) | (4,691,145,946 | ) | (8,816,940,672 | ) | (8,816,940,672 | ) | ||||||||
Administrator Class | (275,549,206 | ) | (275,549,206 | ) | (614,418,973 | ) | (614,418,973 | ) | ||||||||
Institutional Class | (42,175,164,799 | ) | (42,175,164,799 | ) | (93,625,030,718 | ) | (93,625,030,718 | ) | ||||||||
Select Class | (5,141,682,966 | ) | (5,141,682,966 | ) | (4,271,418,328 | )1 | (4,271,418,328 | )1 | ||||||||
Service Class | (2,852,007,937 | ) | (2,852,007,937 | ) | (7,980,153,399 | ) | (7,980,153,399 | ) | ||||||||
Sweep Class | N/A | N/A | (100,073 | )2 | (100,073 | )2 | ||||||||||
|
| |||||||||||||||
(55,135,550,854 | ) | (115,308,062,163 | ) | |||||||||||||
|
| |||||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions | 11,186,845,375 | (530,388,127 | ) | |||||||||||||
|
| |||||||||||||||
Total increase (decrease) in net assets | 11,186,857,742 | (530,359,505 | ) | |||||||||||||
|
| |||||||||||||||
Net assets | ||||||||||||||||
Beginning of period | 14,672,113,202 | 15,202,472,707 | ||||||||||||||
|
| |||||||||||||||
End of period | $ | 25,858,970,944 | $ | 14,672,113,202 | ||||||||||||
|
|
1 | For the period from March 15, 2019 (commencement of class operations) to January 31, 2020 |
2 | For the period from February 1, 2019 to November 29, 2019. Effective at the close of business on November 29, 2019, Sweep Class shares were liquidated and the class was subsequently closed. Sweep Class shares are no longer offered by the Fund. |
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 15
Table of Contents
(For a share outstanding throughout each period)
Six months ended July 31, 2020 (unaudited) | Year ended January 31 | |||||||||||||||||||||||
CLASS A | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Net investment income | 0.00 | 1 | 0.02 | 0.01 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | ||||||||||||||
Net realized gains on investments | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 0.00 | 1 | 0.02 | 0.01 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | ||||||||||||||
Distributions to shareholders from | ||||||||||||||||||||||||
Net investment income | (0.00 | )1 | (0.02 | ) | (0.01 | ) | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | ||||||||||||
Net realized gains | 0.00 | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | 0.00 | 0.00 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions to shareholders | (0.00 | )1 | (0.02 | ) | (0.01 | ) | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | ||||||||||||
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Total return2 | 0.12 | % | 1.56 | % | 1.37 | % | 0.38 | % | 0.01 | % | 0.01 | % | ||||||||||||
Ratios to average net assets (annualized) | ||||||||||||||||||||||||
Gross expenses | 0.61 | % | 0.61 | % | 0.61 | % | 0.62 | % | 0.62 | % | 0.62 | % | ||||||||||||
Net expenses | 0.36 | % | 0.60 | % | 0.60 | % | 0.61 | % | 0.39 | % | 0.11 | % | ||||||||||||
Net investment income | 0.22 | % | 1.53 | % | 1.36 | % | 0.38 | % | 0.01 | % | 0.01 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (000s omitted) | $1,243,689 | $1,379,059 | $1,202,749 | $1,291,723 | $1,745,419 | $1,956,626 |
1 | Amount is less than $0.005. |
2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
16 | Government Money Market Funds
Table of Contents
Financial highlights
(For a share outstanding throughout each period)
Six months ended July 31, 2020 (unaudited) | Year ended January 31 | |||||||||||||||||||||||
ADMINISTRATOR CLASS | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Net investment income | 0.00 | 1 | 0.02 | 0.02 | 0.01 | 0.00 | 1 | 0.00 | 1 | |||||||||||||||
Net realized gains on investments | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 0.00 | 1 | 0.02 | 0.02 | 0.01 | 0.00 | 1 | 0.00 | 1 | |||||||||||||||
Distributions to shareholders from | ||||||||||||||||||||||||
Net investment income | (0.00 | )1 | (0.02 | ) | (0.02 | ) | (0.01 | ) | (0.00 | )1 | (0.00 | )1 | ||||||||||||
Net realized gains | 0.00 | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | 0.00 | 0.00 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions to shareholders | (0.00 | )1 | (0.02 | ) | (0.02 | ) | (0.01 | ) | (0.00 | )1 | (0.00 | )1 | ||||||||||||
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Total return2 | 0.16 | % | 1.83 | % | 1.63 | % | 0.65 | % | 0.06 | % | 0.01 | % | ||||||||||||
Ratios to average net assets (annualized) | ||||||||||||||||||||||||
Gross expenses | 0.34 | % | 0.34 | % | 0.35 | % | 0.35 | % | 0.34 | % | 0.34 | % | ||||||||||||
Net expenses | 0.28 | % | 0.34 | % | 0.35 | % | 0.35 | % | 0.34 | % | 0.10 | % | ||||||||||||
Net investment income | 0.25 | % | 1.84 | % | 1.48 | % | 0.61 | % | 0.05 | % | 0.01 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (000s omitted) | $194,838 | $137,102 | $101,340 | $142,198 | $106,246 | $101,432 |
1 | Amount is less than $0.005. |
2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 17
Table of Contents
Financial highlights
(For a share outstanding throughout each period)
Six months ended July 31, 2020 (unaudited) | Year ended January 31 | |||||||||||||||||||||||
INSTITUTIONAL CLASS | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Net investment income | 0.00 | 1 | 0.02 | 0.02 | 0.01 | 0.00 | 1 | 0.00 | 1 | |||||||||||||||
Net realized gains on investments | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 0.00 | 1 | 0.02 | 0.02 | 0.01 | 0.00 | 1 | 0.00 | 1 | |||||||||||||||
Distributions to shareholders from | ||||||||||||||||||||||||
Net investment income | (0.00 | )1 | (0.02 | ) | (0.02 | ) | (0.01 | ) | (0.00 | )1 | (0.00 | )1 | ||||||||||||
Net realized gains | 0.00 | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | 0.00 | 0.00 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions to shareholders | (0.00 | )1 | (0.02 | ) | (0.02 | ) | (0.01 | ) | (0.00 | )1 | (0.00 | )1 | ||||||||||||
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Total return2 | 0.20 | % | 1.97 | % | 1.78 | % | 0.79 | % | 0.20 | % | 0.02 | % | ||||||||||||
Ratios to average net assets (annualized) | ||||||||||||||||||||||||
Gross expenses | 0.22 | % | 0.22 | % | 0.22 | % | 0.23 | % | 0.23 | % | 0.23 | % | ||||||||||||
Net expenses | 0.20 | % | 0.20 | % | 0.20 | % | 0.20 | % | 0.20 | % | 0.10 | % | ||||||||||||
Net investment income | 0.32 | % | 1.95 | % | 1.77 | % | 0.81 | % | 0.20 | % | 0.02 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (000s omitted) | $19,334,810 | $11,295,226 | $12,466,864 | $13,085,244 | $11,489,674 | $12,617,153 |
1 | Amount is less than $0.005. |
2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
18 | Government Money Market Funds
Table of Contents
Financial highlights
(For a share outstanding throughout each period)
SELECT CLASS | Six months ended (unaudited) | Year ended January 31, 20201 | ||||||
Net asset value, beginning of period | $1.00 | $1.00 | ||||||
Net investment income | 0.00 | 2 | 0.02 | |||||
Net realized gains on investments | 0.00 | 2 | 0.00 | 2 | ||||
|
|
|
| |||||
Total from investment operations | 0.00 | 2 | 0.02 | |||||
Distributions to shareholders from | ||||||||
Net investment income | (0.00 | )2 | (0.02 | ) | ||||
Net realized gains | 0.00 | (0.00 | )2 | |||||
|
|
|
| |||||
Total distributions to shareholders | (0.00 | )2 | (0.02 | ) | ||||
Net asset value, end of period | $1.00 | $1.00 | ||||||
Total return3 | 0.23 | % | 1.74 | % | ||||
Ratios to average net assets (annualized) | ||||||||
Gross expenses | 0.18 | % | 0.18 | % | ||||
Net expenses | 0.14 | % | 0.14 | % | ||||
Net investment income | 0.23 | % | 1.81 | % | ||||
Supplemental data | ||||||||
Net assets, end of period (000s omitted) | $3,566,989 | $691,825 |
1 | For the period from March 15, 2019 (commencement of class operations) to January 31, 2020 |
2 | Amount is less than $0.005. |
3 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 19
Table of Contents
Financial highlights
(For a share outstanding throughout each period)
Six months ended July 31, 2020 (unaudited) | Year ended January 31 | |||||||||||||||||||||||
SERVICE CLASS | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Net investment income | 0.00 | 1 | 0.02 | 0.02 | 0.01 | 0.00 | 1 | 0.00 | 1 | |||||||||||||||
Net realized gains on investments | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 0.00 | 1 | 0.02 | 0.02 | 0.01 | 0.00 | 1 | 0.00 | 1 | |||||||||||||||
Distributions to shareholders from | ||||||||||||||||||||||||
Net investment income | (0.00 | )1 | (0.02 | ) | (0.02 | ) | (0.01 | ) | (0.00 | )1 | (0.00 | )1 | ||||||||||||
Net realized gains | 0.00 | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | 0.00 | 0.00 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions to shareholders | (0.00 | )1 | (0.02 | ) | (0.02 | ) | (0.01 | ) | (0.00 | )1 | (0.00 | )1 | ||||||||||||
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Total return2 | 0.14 | % | 1.72 | % | 1.53 | % | 0.54 | % | 0.02 | % | 0.01 | % | ||||||||||||
Ratios to average net assets (annualized) | ||||||||||||||||||||||||
Gross expenses | 0.51 | % | 0.51 | % | 0.51 | % | 0.52 | % | 0.52 | % | 0.52 | % | ||||||||||||
Net expenses | 0.32 | % | 0.45 | % | 0.45 | % | 0.45 | % | 0.38 | % | 0.11 | % | ||||||||||||
Net investment income | 0.24 | % | 1.71 | % | 1.51 | % | 0.54 | % | 0.03 | % | 0.01 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (000s omitted) | $1,518,646 | $1,168,901 | $1,431,420 | $1,459,295 | $1,500,467 | $1,339,895 |
1 | Amount is less than $0.005. |
2 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
20 | Government Money Market Funds
Table of Contents
Notes to financial statements (unaudited)
1. ORGANIZATION
Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo Treasury Plus Money Market Fund (the “Fund”) which is a diversified series of the Trust.
Effective at the close of business on November 29, 2019, Sweep Class shares of the Fund were liquidated and the class was subsequently closed. Sweep class shares are no longer offered by the Fund. Information for Sweep Class shares reflected in the financial statements represents activity through November 29, 2019.
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Securities valuation
As permitted under Rule 2a-7 of the 1940 Act, portfolio securities are valued at amortized cost, which approximates fair value. The amortized cost method involves valuing a security at its cost, plus accretion of discount or minus amortization of premium over the period until maturity.
Investments which are not valued using the method discussed above are valued at their fair value, as determined in good faith by the Board of Trustees of the Fund. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Wells Fargo Asset Management Pricing Committee at Wells Fargo Funds Management, LLC (“Funds Management”). The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Wells Fargo Asset Management Pricing Committee which may include items for ratification.
Repurchase agreements
The Fund may invest in repurchase agreements and may participate in pooled repurchase agreement transactions with other funds advised by Funds Management. Repurchase agreements are agreements where the seller of a security to the Fund agrees to repurchase that security from the Fund at a mutually agreed upon time and price. The repurchase agreements must be fully collateralized based on values that are marked-to-market daily. The collateral may be held by an agent bank under a tri-party agreement. It is the custodian’s responsibility to value collateral daily and to take action to obtain additional collateral as necessary to maintain a market value equal to or greater than the resale price. The repurchase agreements are collateralized by securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities. There could be potential loss to the Fund in the event that the Fund is delayed or prevented from exercising its rights to dispose of the collateral, including the risk of a possible decline in the value of the underlying obligations during the period in which the Fund seeks to assert its rights.
When-issued transactions
The Fund may purchase securities on a forward commitment or when-issued basis. The Fund records a when-issued transaction on the trade date and will segregate assets in an amount at least equal in value to the Fund’s commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.
Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has been determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.
Government Money Market Funds | 21
Table of Contents
Notes to financial statements (unaudited)
Distributions to shareholders
Distributions to shareholders from net investment income are declared daily and paid monthly. Distributions from net realized gains, if any, are recorded on the ex-dividend date and paid at least annually. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior to the Fund’s fiscal year end may be categorized as a tax return of capital at year end.
Federal and other taxes
The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.
The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.
As of July 31, 2020, the cost of investments for federal income tax purposes is substantially the same as for financial reporting purposes.
Class allocations
The separate classes of shares offered by the Fund differ principally in distribution, shareholder servicing, and administration fees. Class specific expenses are charged directly to that share class. Investment income, common fund-level expenses, and realized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.
3. FAIR VALUATION MEASUREMENTS
Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:
∎ | Level 1 – quoted prices in active markets for identical securities |
∎ | Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
∎ | Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
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 is a summary of the inputs used in valuing the Fund’s assets and liabilities as of July 31, 2020:
Quoted prices (Level 1) | Other significant observable inputs (Level 2) | Significant (Level 3) | Total | |||||||||||||
Assets | ||||||||||||||||
Investments in: | ||||||||||||||||
Repurchase agreements | $ | 0 | $ | 10,911,876,991 | $ | 0 | $ | 10,911,876,991 | ||||||||
Treasury debt | 0 | 15,089,525,603 | 0 | 15,089,525,603 | ||||||||||||
Total assets | $ | 0 | $ | 26,001,402,594 | $ | 0 | $ | 26,001,402,594 |
Additional sector, industry or geographic detail is included in the Portfolio of Investments.
For the six months ended July 31, 2020, the Fund did not have any transfers into/out of Level 3.
22 | Government Money Market Funds
Table of Contents
Notes to financial statements (unaudited)
4. TRANSACTIONS WITH AFFILIATES
Management fee
Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadviser and providing fund-level administrative services in connection with the Fund’s operations. As compensation for its services under the investment management agreement, Funds Management is entitled to receive a management fee at the following annual rate based on the Fund’s average daily net assets:
Average daily net assets | Management fee | |||
First $5 billion | 0.15 | % | ||
Next $5 billion | 0.14 | |||
Over $10 billion | 0.13 |
For the six months ended July 31, 2020, the management fee was equivalent to an annual rate of 0.14% of the Fund’s average daily net assets.
Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. Wells Capital Management Incorporated, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.05% and declining to 0.01% as the average daily net assets of the Fund increase.
Administration fees
Under a class-level administration agreement, Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Funds Management receives an annual fee which is calculated based on the average daily net assets of each class as follows:
Class-level administration fee | ||||
Class A | 0.22 | % | ||
Administrator Class | 0.10 | |||
Institutional Class | 0.08 | |||
Select Class | 0.04 | |||
Service Class | 0.12 |
Waivers and/or expense reimbursements
Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. When each class of the Fund has exceeded its expense cap, Funds Management has waived fees and/or reimbursed expenses from fund-level expenses on a proportionate basis and then from class specific expenses. When only certain classes exceed their expense caps, waivers and/or reimbursements are applied against class specific expenses before fund-level expenses. Funds Management has committed through May 31, 2021 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses 0.60% for Class A shares, 0.34% for Administrator Class shares, 0.20% for Institutional Class shares, 0.14% for Select Class shares, and 0.45% for Service Class shares. 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.
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Notes to financial statements (unaudited)
During the six months ended July 31, 2020, Funds Management also voluntarily waived class-level expenses as follows:
% of average daily net assets (annualized) | ||||
Class A | 0.24 | % | ||
Administrator Class | 0.06 | |||
Service Class | 0.13 |
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A and Service Class of the Fund are charged a fee at an annual rate of 0.25% of the respective average daily net assets of each class. Administrator Class is charged a fee at an annual rate of 0.10% of its average daily net assets. A portion of these total shareholder servicing fees were paid to affiliates of Wells Fargo.
Interfund transactions
The Fund may purchase or sell portfolio investment securities to certain other Wells Fargo affiliates pursuant to Rule 17a-7 under the 1940 Act and under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which do not incur broker commissions, are effected at current market prices.
5. INDEMNIFICATION
Under the Fund’s organizational documents, the officers and Trustees have been granted certain indemnification rights against certain liabilities that may arise out of performance of their duties to the Fund. The Fund has entered into a separate agreement with each Trustee that converts indemnification rights currently existing under the Fund’s organizational documents into contractual rights that cannot be changed in the future without the consent of the Trustee. Additionally, in the normal course of business, the Fund may enter into contracts with service providers that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated.
6. NEW ACCOUNTING PRONOUNCEMENT
In August 2018, FASB issued Accounting Standards Update (“ASU”) No. 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 updates the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurements. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Management has adopted this guidance which did not have a material impact on the financial statements.
7. CORONAVIRUS (COVID-19) PANDEMIC
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 are 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 impacts 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.
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PROXY VOTING INFORMATION
A description of the policies and procedures used to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at wfam.com, or visiting the SEC website at sec.gov. Information regarding how the proxies related to portfolio securities were voted during the most recent 12-month period ended June 30 is available on the website at wfam.com or by visiting the SEC website at sec.gov.
PORTFOLIO HOLDINGS INFORMATION
The Fund files its complete schedule of portfolio holdings with the SEC each month on Form N-MFP. Shareholders may view the filed Form N-MFP by visiting the SEC website at sec.gov. The Fund’s portfolio holdings information is also available on our website at wfam.com.
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Other information (unaudited)
BOARD OF TRUSTEES AND OFFICERS
Each of the Trustees and Officers1 listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 147 mutual funds comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information2. The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.
Independent Trustees
Name and year of birth | Position held and length of service* | Principal occupations during past five years or longer | Current other public company or investment company directorships | |||
William R. Ebsworth (Born 1957) | Trustee, since 2015 | Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief investment officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong, and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he led a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Endowment (non-profit organization). Mr. Ebsworth is a CFA® charterholder. | N/A | |||
Jane A. Freeman (Born 1953) | Trustee, since 2015; Chair Liaison, since 2018 | Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is also an inactive Chartered Financial Analyst. | N/A | |||
Isaiah Harris, Jr. (Born 1952) | Trustee, since 2009; Audit Committee Chairman, since 2019 | Retired. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (private school). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status). | CIGNA Corporation | |||
Judith M. Johnson (Born 1949) | Trustee, since 2008; Audit Committee Chairman, from 2009 to 2018 | Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant. | N/A | |||
David F. Larcker (Born 1950) | Trustee, since 2009 | James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005. | N/A |
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Other information (unaudited)
Name and year of birth | Position held and length of service* | Principal occupations during past five years or longer | Current other public company or investment company directorships | |||
Olivia S. Mitchell (Born 1953) | Trustee, since 2006; Nominating and Governance Committee Chair, since 2018 | International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993. | N/A | |||
Timothy J. Penny (Born 1951) | Trustee, since 1996; Chairman, since 2018 | President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007. | N/A | |||
James G. Polisson (Born 1959) | Trustee, since 2018 | Retired. Chief Marketing Officer, Source (ETF) UK Services, Ltd, from 2015 to 2017. From 2012 to 2015, Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing company. Chief Executive Officer and Managing Director at Russell Investments, Global Exchange Traded Funds from 2010 to 2012. Managing Director of Barclays Global Investors from 1998 to 2010 and Global Chief Marketing Officer for iShares and Barclays Global Investors from 2000 to 2010. Trustee of the San Francisco Mechanics’ Institute, a non-profit organization, from 2013 to 2015. Board member of the Russell Exchange Traded Fund Trust from 2011 to 2012. Director of Barclays Global Investors Holdings Deutschland GmbH from 2006 to 2009. Mr. Polisson is an attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations. | N/A | |||
Pamela Wheelock (Born 1959) | Trustee, since January 2020; previously Trustee from January 2018 to July 2019 | Board member of the Destination Medical Center Economic Development Agency, Rochester, Minnesota since 2019 and Interim President of the McKnight Foundation since 2020. Acting Commissioner, Minnesota Department of Human Services, July 2019 through September 2019. Human Services Manager (part-time), Minnesota Department of Human Services, October 2019 through December 2019. Chief Operating Officer, Twin Cities Habitat for Humanity from 2017 to 2019. Vice President of University Services, University of Minnesota from 2012 to 2016. Prior thereto, on the Board of Directors, Governance Committee and Finance Committee for the Minnesota Philanthropy Partners (Saint Paul Foundation) from 2012 to 2018, Interim Chief Executive Officer of Blue Cross Blue Shield of Minnesota from 2011 to 2012, Chairman of the Board from 2009 to 2012 and Board Director from 2003 to 2015. Vice President, Leadership and Community Engagement, Bush Foundation, Saint Paul, Minnesota (a private foundation) from 2009 to 2011. Executive Vice President and Chief Financial Officer, Minnesota Sports and Entertainment from 2004 to 2009 and Senior Vice President from 2002 to 2004. Executive Vice President of the Minnesota Wild Foundation from 2004 to 2008. Commissioner of Finance, State of Minnesota, from 1999 to 2002. Currently Board Chair of the Minnesota Wild Foundation since 2010. | N/A |
* | Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable. |
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Other information (unaudited)
Officers
Name and year of birth | Position held and length of service | Principal occupations during past five years or longer | ||
Andrew Owen (Born 1960) | President, since 2017 | Executive Vice President of Wells Fargo & Company and Head of Affiliated Managers, Wells Fargo Asset Management, since 2014. In addition, Mr. Owen is currently President, Chief Executive Officer and Director of Wells Fargo Funds Management, LLC since 2017. Prior thereto, Executive Vice President responsible for marketing, investments and product development for Wells Fargo Funds Management, LLC, from 2009 to 2014. | ||
Nancy Wiser1 (Born 1967) | Treasurer, since 2012 | Executive Vice President of Wells Fargo Funds Management, LLC since 2011. Chief Operating Officer and Chief Compliance Officer at LightBox Capital Management LLC, from 2008 to 2011. | ||
Michelle Rhee (Born 1966) | Chief Legal Officer, since 2019 | Secretary of Wells Fargo Funds Management, LLC, Chief Legal Counsel of Wells Fargo Asset Management and Assistant General Counsel of Wells Fargo Bank, N.A. since 2018. Associate General Counsel and Managing Director of Bank of America Corporation from 2004 to 2018. | ||
Catherine Kennedy (Born 1969) | Secretary, since 2019 | Vice President of Wells Fargo Funds Management, LLC and Senior Counsel of the Wells Fargo Legal Department since 2010. Vice President and Senior Counsel of Evergreen Investment Management Company, LLC from 1998 to 2010. | ||
Michael H. Whitaker (Born 1967) | Chief Compliance Officer, since 2016 | Chief Compliance Officer of Wells Fargo Asset Management since 2016. Senior Vice President and Chief Compliance Officer for Fidelity Investments from 2007 to 2016. | ||
David Berardi (Born 1975) | Assistant Treasurer, since 2009 | Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010. | ||
Jeremy DePalma1 (Born 1974) | Assistant Treasurer, since 2009 | Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010 and head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010. |
1 | Nancy Wiser acts as Treasurer of 65 funds in the Fund Complex. Jeremy DePalma acts as the Treasurer of 82 funds and Assistant Treasurer of 65 funds in the Fund Complex. |
2 | The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at wfam.com. |
28 | Government Money Market Funds
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Other information (unaudited)
BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:
Wells Fargo Treasury Plus Money Market Fund
Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at a Board meeting held on May 26, 2020 and May 28, 2020 (together, the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo Treasury Plus Money Market Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the “Sub-Adviser”), an affiliate of Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”
At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at a Board meeting held in April 2020, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing investment performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.
In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2020. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and investment performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.
After its deliberations, the Board unanimously approved the continuation of the Advisory Agreements for a one-year term and determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.
Nature, extent and quality of services
The Board received and considered various information regarding the nature, extent and quality of services provided to the Fund by Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Wells Fargo Asset Management (“WFAM”), of which Funds Management and the Sub-Adviser are a part, and a summary of investments made in the business of WFAM. The Board also received a description of Funds Management’s and the Sub-Adviser’s business continuity plans and of their approaches to data privacy and cybersecurity, and related testing. The Board also received and reviewed information about Funds Management’s role as administrator of the Fund’s liquidity risk management program, Funds Management’s approach to risk management, and Funds Management’s intermediary and vendor oversight program.
The Board also considered the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund. The Board evaluated the ability of Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory and supervisory personnel. The Board further considered the compliance programs and compliance records of Funds Management and the Sub-Adviser. In addition, the Board took into account the full range of services provided to the Fund by Funds Management and its affiliates.
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Other information (unaudited)
Fund investment performance and expenses
The Board considered the investment performance results for the Fund over various time periods ended December 31, 2019. The Board also considered more current results for various time periods ended March 31, 2020. The Board considered these results in comparison to the investment performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the investment performance of the Fund (Class I) was higher than the average investment performance of the Universe for the one-, three-, five- and ten-year periods ended December 31, 2019. The Board also noted that the investment performance of the Fund (Class I) was higher than the average investment performance of the Universe for all periods ended March 31, 2020. The Board also noted that the investment performance of the Fund was higher than its benchmark index, the Lipper U.S. Treasury Money Market Funds Index, for all periods ended December 31, 2019.
The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were lower than, equal to or in range of the median net operating expense ratios of the expense Groups for all share classes.
The Board took into account the Fund’s investment performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.
Investment management and sub-advisory fee rates
The Board reviewed and considered the contractual fee rates payable by the Fund to Funds Management under the Management Agreement, as well as the contractual fee rates payable by the Fund to Funds Management for class-level administrative services under a Class-Level Administration Agreement, which include, among other things, class-level transfer agency and sub-transfer agency costs (collectively, the “Management Rates”). The Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Funds Management to the Sub-Adviser for investment sub-advisory services.
Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were lower than or in range of the sum of these average rates for the Fund’s expense Groups for all share classes.
The Board also received and considered information about the portion of the total management fee that was retained by Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Funds Management and not delegated to or assumed by the Sub-Adviser, and about Funds Management’s on-going oversight services. Given the affiliation between Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of fees between them.
The Board also received and considered information about the nature and extent of services offered and fee rates charged by Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing proprietary mutual funds compared with those associated with managing assets of other types of clients, including third-party sub-advised fund clients and non-mutual fund clients such as institutional separate accounts.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Funds Management under the Management Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable.
Profitability
The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of both WFAM and Wells Fargo & Co. (“Wells Fargo”) from providing services to the fund family as a whole. The Board noted that the Sub-Adviser’s profitability information with respect to providing services to the Fund and other funds in the family was subsumed in the WFAM and Wells Fargo profitability analysis.
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Other information (unaudited)
Funds Management reported on the methodologies and estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size, type and age of fund.
Based on its review, the Board did not deem the profits reported by Funds Management, WFAM or Wells Fargo from services provided to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.
Economies of scale
The Board received and considered information about the potential for Funds Management to experience economies of scale in the provision of management services to the Fund, the difficulties of calculating economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with shareholders. The Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size, and the size of the Fund in relation to such breakpoints. The Board considered that in addition to management fee breakpoints, Funds Management shares potential economies of scale from its management business in a variety of ways, including through fee waiver and expense reimbursement arrangements, services that benefit shareholders, competitive management fee rates set at the outset without regard to breakpoints, and investments in the business intended to enhance services available to shareholders.
The Board concluded that Funds Management’s arrangements with respect to the Fund, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.
Other benefits to Funds Management and the Sub-Adviser
The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that various affiliates of Funds Management may receive distribution-related fees, shareholder servicing payments and sub-transfer agency fees in respect of shares sold or held through them and services provided.
The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser, fees earned by Funds Management and the Sub-Adviser from managing a private investment vehicle for the fund family’s securities lending collateral, and commissions earned by an affiliated broker from portfolio transactions.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.
Conclusion
At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory Agreements for a one-year term and determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable.
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Other information (unaudited)
LIQUIDITY RISK MANAGEMENT PROGRAM
In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), Wells Fargo Funds Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) on behalf of each of its series, including the Fund, which is reasonably designed to assess and manage the Fund’s liquidity risk. “Liquidity risk” is defined as the risk that the Fund is unable to meet redemption requests without significantly diluting remaining investors’ interests in the Fund. The Trust’s Board of Trustees (the “Board”) previously approved the designation of Wells Fargo Funds Management, LLC (“Funds Management”), the Fund’s investment manager, as the administrator of the Program, and Funds Management has established a Liquidity Risk Management Council composed of personnel from multiple departments within Funds Management and its affiliates to assist Funds Management in the implementation and on-going administration of the Program.
The Program is comprised of various components designed to support the assessment and/or management of liquidity risk, including: (1) the periodic assessment (no less frequently than annually) of certain factors that influence the Fund’s liquidity risk; (2) the periodic classification (no less frequently than monthly) of the Fund’s investments into one of four liquidity categories that reflect an estimate of their liquidity under current market conditions; (3) a 15% limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); (4) to the extent the Fund does not invest primarily in “highly liquid investments” (as defined under the Liquidity Rule), the determination of a minimum percentage of the Fund’s assets that generally will be invested in highly liquid investments (an “HLIM”); (5) if the Fund has established an HLIM, the periodic review (no less frequently than annually) of the HLIM and the adoption of policies and procedures for responding to a shortfall of the Fund’s “highly liquid investments” below its HLIM; and (6) periodic reporting to the Board.
At a meeting of the Board held on May 26 and 28, 2020, the Board received a written report (the “Report”) from Funds Management that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation. The Report covered the initial period from December 1, 2018 through December 31, 2019 (the “Reporting Period”). No significant liquidity events impacting the Fund were noted in the Report. There were no material changes to the Program during the Reporting Period. The Report concluded that the Program is operating effectively to assess and manage the Fund’s liquidity risk, and that the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund’s liquidity developments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other risks to which an investment in the Fund may be subject.
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For more information
More information about Wells Fargo Funds is available free upon request. To obtain literature, please write, visit the Fund’s website, or call:
Wells Fargo Funds
P.O. Box 219967
Kansas City, MO 64121-9967
Website: wfam.com
Individual investors: 1-800-222-8222
Retail investment professionals: 1-888-877-9275
Institutional investment professionals: 1-866-765-0778
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-260-5969 or visit the Fund’s website at wfam.com. Read the prospectus carefully before you invest or send money.
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).
This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind—including a recommendation for any specific investment, strategy, or plan.
INVESTMENT PRODUCTS: NOT FDIC INSURED ◾ NO BANK GUARANTEE ◾ MAY LOSE VALUE
© 2020 Wells Fargo & Company. All rights reserved
PAR-0820-01051 09-20
SA314/SAR314 07-20
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Semi-Annual Report
July 31, 2020
Government Money Market Funds
∎ | Wells Fargo 100% Treasury Money Market Fund |
Beginning on January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, paper copies of the Wells Fargo Funds’ annual and semi-annual shareholder reports issued after this date will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Funds’ website, and you will be notified by mail each time a report is posted and provided with a website address to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling 1-800-222-8222 or by enrolling at wellsfargo.com/advantagedelivery.
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports; if you invest directly with the Fund, you can call 1-800-222-8222. Your election to receive reports in paper will apply to all Wells Fargo Funds held in your account with your financial intermediary or, if you are a direct investor, to all Wells Fargo Funds that you hold.
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The views expressed and any forward-looking statements are as of July 31, 2020, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Asset Management. Discussions of individual securities, or the markets generally, or any Wells Fargo Fund 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 and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.
INVESTMENT PRODUCTS: NOT FDIC INSURED ◾ NO BANK GUARANTEE ◾ MAY LOSE VALUE
Government Money Market Funds | 1
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Letter to shareholders (unaudited)
Andrew Owen
President
Wells Fargo Funds
Dear Shareholder:
We are pleased to offer you this semi-annual report for the Wells Fargo 100% Treasury Money Market Fund for the six-month period that ended July 31, 2020. Global stock markets tumbled in February and March as governments took unprecedented measures to stop the spread of the coronavirus at the expense of short-term economic output. However, most markets rebounded from April on to offset much of the losses as central banks attempted to bolster capital markets and confidence. Fixed-income markets generally performed well, with the exception of high-yield bonds, as U.S. bonds overall achieved modest gains. U.S. and emerging market equities outperformed international developed market equities over the six-month period.
For the period, U.S. stocks, based on the S&P 500 Index,1 returned 2.42% and international stocks, as measured by the MSCI ACWI ex USA Index (Net),2 fell 4.47%. The MSCI EM Index (Net)3 gained 3.08%. For bond investors, the Bloomberg Barclays U.S. Aggregate Bond Index4 added 5.69%, the Bloomberg Barclays Global Aggregate ex-USD Index5 returned 4.29%, the Bloomberg Barclays Municipal Bond Index6 returned 1.96%, and the ICE BofA U.S. High Yield Index7 lost 0.23%.
Concerns about the coronavirus took over the market.
In February, the coronavirus became the major market focus. Fears of the virus’s impact on global growth led to expectations of increased global central bank monetary policy support. That led the 10-year U.S. Treasury yield to fall to an all-time low of 1.1% by the end of the month. Although equity markets initially shrugged off concerns about the outbreak, focusing instead on strong fourth-quarter earnings and improving business confidence in January, market sentiment turned sharply lower toward month-end. Oil prices tumbled as Russia and the Organization of the Petroleum Exporting Countries compounded a major decline in oil demand with a brutal price war, causing the price of West Texas Intermediate crude oil to plummet.
1 | The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock’s weight in the index proportionate to its market value. You cannot invest directly in an index. |
2 | The Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) ex USA Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the United States. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. You cannot invest directly in an index. |
3 | The MSCI Emerging Markets (EM) Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure equity market performance of emerging markets. You cannot invest directly in an index. |
4 | The Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities, and commercial mortgage-backed securities. You cannot invest directly in an index. |
5 | The Bloomberg Barclays Global Aggregate ex-USD Index is an unmanaged index that provides a broad-based measure of the global investment-grade fixed-income markets excluding the U.S.-dollar-denominated debt market. You cannot invest directly in an index. |
6 | 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. |
7 | The ICE BofA U.S. High Yield Index is a market-capitalization-weighted index of domestic and Yankee high-yield bonds. The index tracks the performance of high-yield securities traded in the U.S. bond market. You cannot invest directly in an index. Copyright 2020. ICE Data Indices, LLC. All rights reserved. |
2 | Government Money Market Funds
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Letter to shareholders (unaudited)
The global spread of the coronavirus led many countries to clamp down on social and business-related activity in order to contain the virus from causing even greater devastation and overwhelming the health care system. This abrupt stoppage of economic activity led to the sharp deceleration of global output, sending economies into a deep contraction. Central bank responses were swift, as they slashed interest rates and expanded quantitative easing programs to restore liquidity and confidence to the markets. In the U.S., the Federal Reserve launched several lending programs, funding investment-grade bonds, money market mutual funds, and commercial paper while purchasing Treasuries, mortgage-backed securities, and overnight repurchase agreements. Meanwhile, stock markets tumbled quickly into a bear market, ending the longest bull stock market in U.S. history.
Markets rebounded strongly in April, fueled by unprecedented government and central bank stimulus measures. The U.S. economy contracted by an annualized 5.0% pace in the first quarter, with 30 million new unemployment insurance claims in six weeks. In the eurozone, first-quarter real gross domestic product (GDP) shrank 3.8%, with the composite April Flash Purchasing Managers’ Index, a monthly survey of purchasing managers, falling to an all-time low of 13.5. The European Central Bank expanded its quantitative easing to include the purchase of additional government bonds of countries with the greatest virus-related need, including Italy and Spain. China’s first-quarter GDP fell by 6.8% year over year. However, retail sales, production, and investment showed signs of recovery. Extreme oil-price volatility continued as global supply far exceeded demand.
In May, the equity market rebound continued, with widespread strong monthly gains. Investors regained confidence on reports of early signs of success in human trials of a coronavirus vaccine. Growth stocks continued to outperform value stocks while returns on global government bonds were generally flat. In the U.S., a gap grew between the stock market rebound and devastating economic data points, including an April unemployment rate of 14.7%, the highest level since World War II. Purchasing managers’ indices continued to reflect weakening activity in May in both the manufacturing and services sectors. U.S. corporate earnings reports indicated a 14% year-over-year contraction in earnings from the first quarter of 2019. However, high demand for technology, driven by remote activity, helped maintain robust information technology sector earnings, which helped drive powerful well-known technology stocks higher.
Financial markets posted widely positive returns in June despite ongoing economic weakness and high levels of uncertainty on the containment of the coronavirus and the timing of an effective vaccine. There were hopeful signs as economies reopened, with both U.S. and U.K. retail sales rebounding substantially in May. However, year over year, sales remained depressed. Vitally important to market sentiment was the ongoing commitment by central banks globally to do all they could to provide economic support through liquidity and low borrowing costs. U.S. economic activity was aided by one-time $1,200 stimulus checks and $600 bonus weekly unemployment benefits due to expire at the end of July. However, unemployment remained in the double digits, easing somewhat from 14.7% in April to 11.1% in June. During June, numerous states reported alarming increases in coronavirus cases. China’s economic recovery picked up momentum in June, though it remained far from a full recovery.
July was a broadly positive month for both global equities and fixed income. However, economic data and a resurgence of coronavirus cases pointed to the vulnerability of the global economy and the ongoing imperative to regain control of the pandemic. Second-quarter GDP shrank by 9.5% and 12.1% in the U.S. and eurozone, respectively, from the previous quarter. In contrast, China reported a 3.2% year-over-year expansion in its second-quarter GDP. U.S. unemployment remained historically high despite adding 1.8 million jobs in July, with a double-digit jobless rate persisting. However, manufacturing activity grew in both the U.S. and eurozone. In Asia, while China’s manufacturing sector
“The global spread of the coronavirus led many countries to clamp down on social and business-related activity in order to contain the virus from causing even greater devastation and overwhelming the health care system.”
“Financial markets posted widely positive returns in June despite ongoing economic weakness and high levels of uncertainty on the containment of the coronavirus and the timing of an effective vaccine.”
Government Money Market Funds | 3
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Letter to shareholders (unaudited)
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For further information about your Fund, contact your investment professional, visit our website at wfam.com, or call us directly at 1-800-222-8222. |
continued to expand, activity in Japan and South Korea contracted. In July, a rising concern was the rapid and broad reemergence of coronavirus infections. Despite the ongoing promise of positive early-stage vaccine trial results, economic activity could be held back by the continued spread of the virus and the end of a widely received $600-a-week bonus unemployment benefit in late July.
Don’t let short-term uncertainty derail long-term investment goals.
Periods of investment uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Funds offers more than 100 mutual funds spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.
Thank you for choosing to invest with Wells Fargo Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.
Sincerely,
Andrew Owen
President
Wells Fargo Funds
4 | Government Money Market Funds
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Performance highlights (unaudited)
Investment objective
The Fund seeks current income exempt from most state and local individual income taxes, while preserving capital and liquidity.
Manager
Wells Fargo Funds Management, LLC
Subadviser
Wells Capital Management Incorporated
Portfolio managers
Michael C. Bird, CFA®‡
Jeffrey L. Weaver, CFA®‡
Laurie White
Average annual total returns (%) as of July 31, 2020
Expense ratios1 (%) | ||||||||||||||||||||||
Inception date | 1 year | 5 year | 10 year | Gross | Net2 | |||||||||||||||||
Class A (WFTXX) | 11-8-1999 | 0.76 | 0.67 | 0.34 | 0.62 | 0.60 | ||||||||||||||||
Administrator Class (WTRXX) | 6-30-2010 | 0.98 | 0.88 | 0.44 | 0.35 | 0.30 | ||||||||||||||||
Institutional Class (WOTXX)3 | 10-31-2014 | 1.07 | 0.97 | 0.49 | 0.23 | 0.20 | ||||||||||||||||
Service Class (NWTXX) | 12-3-1990 | 0.83 | 0.74 | 0.37 | 0.52 | 0.50 | ||||||||||||||||
Sweep Class | 6-30-2010 | 0.65 | 0.55 | 0.28 | 0.78 | 0.78 |
Yield summary (%) as of July 31, 20202
Class A | Administrator Class | Institutional Class | Service Class | Sweep Class | ||||||||||||||||
7-day current yield | 0.01 | 0.01 | 0.05 | 0.01 | 0.01 | |||||||||||||||
7-day compound yield | 0.01 | 0.01 | 0.05 | 0.01 | 0.01 | |||||||||||||||
30-day simple yield | 0.01 | 0.01 | 0.05 | 0.01 | 0.01 | |||||||||||||||
30-day compound yield | 0.01 | 0.01 | 0.05 | 0.01 | 0.01 |
Figures quoted represent past performance, which is no guarantee of future results, and do not reflect taxes that a shareholder may pay on an investment in a fund. Investment returns will fluctuate. The Fund’s yield figures more closely reflect the current earnings of the Fund than the total return figures. Current performance may be lower or higher than the performance data quoted, which assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s website, wfam.com.
Money market funds are sold without a front-end sales charge or contingent deferred sales charge. Other fees and expenses apply to an investment in the Fund and are described in the Fund’s current prospectus.
For government money market funds: You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.
Please see footnotes on page 7.
6 | Government Money Market Funds
Table of Contents
Performance highlights (unaudited)
Portfolio composition as of July 31, 20204 |
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Effective maturity distribution as of July 31, 20204 |
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Weighted average maturity as of July 31, 20205 |
48 days |
Weighted average life as of July 31, 20206 |
102 days |
‡ | CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. |
1 | Reflects the expense ratios as stated in the most recent prospectuses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report. |
2 | The manager has contractually committed through May 31, 2021, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.60% for Class A, 0.30% for Administrator Class, 0.20% for Institutional Class, 0.50% for Service Class, and 0.78% for Sweep Class. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses (if any), and extraordinary expenses are excluded from the expense caps. Prior to or after the commitment expiration date, the caps may be increased or the commitment to maintain the caps may be terminated only with the approval of the Board of Trustees. Without these caps, the Fund’s returns would have been lower. Without waived fees and/or reimbursed expenses, the Fund’s 7-day current yield would have been -0.37%, -0.10%, 0.02%, -0.27%, and -0.53% for Class A, Administrator Class, Institutional Class, Service Class, and Sweep Class, respectively. 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 prospectuses. |
3 | Historical performance shown for the Institutional Class shares prior to their inception reflects the performance of Administrator Class shares, and includes the higher expenses applicable to Administrator Class shares. If these expenses had not been included, returns for Institutional Class shares would be higher. |
4 | Amounts are calculated based on the total investments of the Fund. These amounts are subject to change and may have changed since the date specified. |
5 | Weighted Average Maturity (WAM): WAM is an average of the effective maturities of all securities held in the portfolio, weighted by each security’s percentage of total investments. The maturity of a portfolio security is the period remaining until the date on which the principal amount is unconditionally required to be paid, or in the case of a security called for redemption, the date on which the redemption payment is unconditionally required to be made. WAM calculations allow for the maturities of certain securities with demand features or periodic interest rate resets to be shortened. WAM is a way to measure a fund’s sensitivity to potential interest rate changes. WAM is subject to change and may have changed since the date specified. |
6 | Weighted Average Life (WAL): WAL is an average of the final maturities of all securities held in the portfolio, weighted by their percentage of total investments. The maturity of a portfolio security is the period remaining until the date on which the principal amount is unconditionally required to be paid, or in the case of a security called for redemption, the date on which the redemption payment is unconditionally required to be made. In contrast to WAM, the calculation of WAL allows for the maturities of certain securities with demand features to be shortened, but not the periodic interest rate resets. WAL is a way to measure a fund’s potential sensitivity to credit spread changes. WAL is subject to change and may have changed since the date specified. |
Government Money Market Funds | 7
Table of Contents
As a shareholder of the Fund, you incur ongoing costs, including management fees, distribution (12b-1) and/or shareholder servicing fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from February 1, 2020 to July 31, 2020.
Actual expenses
The “Actual” line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Actual” line under the heading entitled “Expenses paid during period” for your applicable class of shares to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The “Hypothetical” line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds.
Beginning account value 2-1-2020 | Ending account value 7-31-2020 | Expenses paid during the period1 | Annualized net expense ratio | |||||||||||||
Class A | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,001.28 | $ | 1.99 | 0.40 | % | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.87 | $ | 2.01 | 0.40 | % | ||||||||
Administrator Class | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,001.90 | $ | 1.39 | 0.28 | % | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.47 | $ | 1.41 | 0.28 | % | ||||||||
Institutional Class | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,002.28 | $ | 1.00 | 0.20 | % | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.87 | $ | 1.01 | 0.20 | % | ||||||||
Service Class | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,001.45 | $ | 1.74 | 0.35 | % | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.12 | $ | 1.76 | 0.35 | % | ||||||||
Sweep Class | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,001.02 | $ | 2.04 | 0.41 | % | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.82 | $ | 2.06 | 0.41 | % |
1 | Expenses paid is equal to the annualized net expense ratio of each class multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one-half-year period). |
8 | Government Money Market Funds
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Treasury Debt: 99.86% | ||||||||||||||||
U.S. Cash Management Bill (z) | 0.07 | % | 9-29-2020 | $ | 335,000,000 | $ | 334,933,755 | |||||||||
U.S. Cash Management Bill (z)%% | 0.11 | 1-5-2021 | 45,000,000 | 44,978,216 | ||||||||||||
U.S. Cash Management Bill (z)## | 0.13 | 8-11-2020 | 1,011,280,000 | 1,011,251,701 | ||||||||||||
U.S. Cash Management Bill (z) | 0.13 | 9-8-2020 | 540,000,000 | 539,930,225 | ||||||||||||
U.S. Cash Management Bill (z) | 0.13 | 9-22-2020 | 445,000,000 | 444,922,472 | ||||||||||||
U.S. Cash Management Bill (z) | 0.13 | 11-17-2020 | 140,000,000 | 139,932,416 | ||||||||||||
U.S. Cash Management Bill (z) | 0.13 | 12-29-2020 | 45,000,000 | 44,975,580 | ||||||||||||
U.S. Cash Management Bill (z) | 0.14 | 8-4-2020 | 711,475,000 | 711,472,283 | ||||||||||||
U.S. Cash Management Bill (z) | 0.14 | 10-13-2020 | 215,000,000 | 214,938,733 | ||||||||||||
U.S. Cash Management Bill (z) | 0.15 | 9-15-2020 | 495,000,000 | 494,914,328 | ||||||||||||
U.S. Cash Management Bill (z) | 0.15 | 10-20-2020 | 190,000,000 | 189,937,936 | ||||||||||||
U.S. Cash Management Bill (z) | 0.15 | 10-27-2020 | 295,000,000 | 294,896,465 | ||||||||||||
U.S. Cash Management Bill (z) | 0.15 | 12-22-2020 | 45,000,000 | 44,974,052 | ||||||||||||
U.S. Cash Management Bill (z) | 0.16 | 10-6-2020 | 140,000,000 | 139,960,800 | ||||||||||||
U.S. Cash Management Bill (z) | 0.16 | 11-3-2020 | 195,000,000 | 194,922,566 | ||||||||||||
U.S. Cash Management Bill (z) | 0.16 | 11-10-2020 | 150,000,000 | 149,935,375 | ||||||||||||
U.S. Cash Management Bill (z) | 0.16 | 12-1-2020 | 45,000,000 | 44,975,700 | ||||||||||||
U.S. Cash Management Bill (z) | 0.16 | 12-8-2020 | 50,000,000 | 49,972,219 | ||||||||||||
U.S. Cash Management Bill (z) | 0.16 | 12-15-2020 | 95,000,000 | 94,944,306 | ||||||||||||
U.S. Cash Management Bill (z) | 0.19 | 11-24-2020 | 100,000,000 | 99,941,640 | ||||||||||||
U.S. Treasury Bill (z) | 0.08 | 9-1-2020 | 985,000,000 | 984,910,224 | ||||||||||||
U.S. Treasury Bill (z) | 0.11 | 8-25-2020 | 895,000,000 | 894,939,592 | ||||||||||||
U.S. Treasury Bill (z) | 0.12 | 10-29-2020 | 440,000,000 | 439,873,778 | ||||||||||||
U.S. Treasury Bill (z) | 0.13 | 8-18-2020 | 765,770,000 | 765,729,522 | ||||||||||||
U.S. Treasury Bill (z) | 0.13 | 9-17-2020 | 428,590,000 | 428,519,209 | ||||||||||||
U.S. Treasury Bill (z) | 0.13 | 10-22-2020 | 485,000,000 | 484,855,350 | ||||||||||||
U.S. Treasury Bill (z) | 0.13 | 1-21-2021 | 45,000,000 | 44,972,106 | ||||||||||||
U.S. Treasury Bill (z) | 0.14 | 10-1-2020 | 385,000,000 | 384,913,003 | ||||||||||||
U.S. Treasury Bill (z) | 0.14 | 11-5-2020 | 140,000,000 | 139,948,757 | ||||||||||||
U.S. Treasury Bill (z) | 0.14 | 11-19-2020 | 140,000,000 | 139,940,030 | ||||||||||||
U.S. Treasury Bill (z) | 0.14 | 11-27-2020 | 185,000,000 | 184,916,907 | ||||||||||||
U.S. Treasury Bill (z) | 0.14 | 1-28-2021 | 65,000,000 | 64,955,945 | ||||||||||||
U.S. Treasury Bill (z) | 0.15 | 9-24-2020 | 490,000,000 | 489,895,960 | ||||||||||||
U.S. Treasury Bill (z) | 0.15 | 11-12-2020 | 140,000,000 | 139,942,240 | ||||||||||||
U.S. Treasury Bill (z) | 0.15 | 1-14-2021 | 95,000,000 | 94,933,329 | ||||||||||||
U.S. Treasury Bill (z) | 0.16 | 10-8-2020 | 430,000,000 | 429,872,478 | ||||||||||||
U.S. Treasury Bill (z) | 0.16 | 1-7-2021 | 40,000,000 | 39,972,089 | ||||||||||||
U.S. Treasury Bill (z) | 0.17 | 12-3-2020 | 50,000,000 | 49,971,787 | ||||||||||||
U.S. Treasury Bill (z) | 0.17 | 12-31-2020 | 45,000,000 | 44,968,875 | ||||||||||||
U.S. Treasury Bill (z) | 0.19 | 10-15-2020 | 580,000,000 | 579,782,177 | ||||||||||||
U.S. Treasury Bill (z) | 0.19 | 12-10-2020 | 95,000,000 | 94,935,321 | ||||||||||||
U.S. Treasury Bill (z) | 0.19 | 12-17-2020 | 45,000,000 | 44,967,700 | ||||||||||||
U.S. Treasury Bill (z) | 0.20 | 9-10-2020 | 554,470,000 | 554,355,028 | ||||||||||||
U.S. Treasury Bill (z) | 0.21 | 9-3-2020 | 955,000,000 | 954,831,842 | ||||||||||||
U.S. Treasury Bill (z) | 0.25 | 8-27-2020 | 600,000,000 | 599,899,280 | ||||||||||||
U.S. Treasury Bill (z) | 0.28 | 8-20-2020 | 555,000,000 | 554,927,443 | ||||||||||||
U.S. Treasury Bill (z) | 0.34 | 8-6-2020 | 585,000,000 | 584,983,510 | ||||||||||||
U.S. Treasury Bill (z) | 0.40 | 8-13-2020 | 550,000,000 | 549,939,314 | ||||||||||||
U.S. Treasury Note (U.S. Treasury 3 Month Bill Money Market Yield +0.05%) ± | 0.15 | 10-31-2020 | 335,000,000 | 334,963,526 | ||||||||||||
U.S. Treasury Note (U.S. Treasury 3 Month Bill Money Market Yield +0.11%) ± | 0.22 | 4-30-2022 | 738,000,000 | 738,141,327 | ||||||||||||
U.S. Treasury Note (U.S. Treasury 3 Month Bill Money Market Yield +0.12%) ± | 0.22 | 1-31-2021 | 390,000,000 | 389,922,488 | ||||||||||||
U.S. Treasury Note (U.S. Treasury 3 Month Bill Money Market Yield +0.14%) ± | 0.24 | 4-30-2021 | 340,000,000 | 339,941,927 |
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 9
Table of Contents
Portfolio of investments—July 31, 2020 (unaudited)
Interest rate | Maturity date | Principal | Value | |||||||||||||
Treasury Debt (continued) | ||||||||||||||||
U.S. Treasury Note (U.S. Treasury 3 Month Bill Money Market Yield +0.15%) ± | 0.26 | % | 1-31-2022 | $ | 365,000,000 | $ | 364,828,154 | |||||||||
U.S. Treasury Note (U.S. Treasury 3 Month Bill Money Market Yield +0.22%) ± | 0.33 | 7-31-2021 | 170,000,000 | 169,978,083 | ||||||||||||
U.S. Treasury Note (U.S. Treasury 3 Month Bill Money Market Yield +0.30%) ± | 0.41 | 10-31-2021 | 310,000,000 | 310,172,816 | ||||||||||||
U.S. Treasury Note | 1.13 | 2-28-2021 | 85,000,000 | 85,336,560 | ||||||||||||
U.S. Treasury Note | 1.38 | 8-31-2020 | 120,000,000 | 120,091,469 | ||||||||||||
U.S. Treasury Note | 1.38 | 9-15-2020 | 10,000,000 | 9,996,734 | ||||||||||||
U.S. Treasury Note | 1.50 | 8-15-2020 | 20,000,000 | 20,002,630 | ||||||||||||
U.S. Treasury Note | 1.63 | 10-15-2020 | 10,000,000 | 9,999,842 | ||||||||||||
U.S. Treasury Note | 1.63 | 11-30-2020 | 10,000,000 | 9,999,486 | ||||||||||||
U.S. Treasury Note | 1.75 | 11-15-2020 | 20,000,000 | 20,007,054 | ||||||||||||
U.S. Treasury Note | 1.75 | 12-31-2020 | 80,000,000 | 80,167,753 | ||||||||||||
U.S. Treasury Note | 1.88 | 12-15-2020 | 30,000,000 | 30,156,333 | ||||||||||||
U.S. Treasury Note | 2.00 | 11-30-2020 | 15,000,000 | 15,016,782 | ||||||||||||
U.S. Treasury Note | 2.00 | 1-15-2021 | 20,000,000 | 20,088,932 | ||||||||||||
U.S. Treasury Note | 2.00 | 2-28-2021 | 45,000,000 | 45,281,982 | ||||||||||||
U.S. Treasury Note | 2.13 | 8-31-2020 | 20,000,000 | 20,007,131 | ||||||||||||
U.S. Treasury Note | 2.13 | 1-31-2021 | 40,000,000 | 40,379,088 | ||||||||||||
U.S. Treasury Note | 2.25 | 2-15-2021 | 85,000,000 | 85,766,141 | ||||||||||||
U.S. Treasury Note | 2.25 | 3-31-2021 | 40,000,000 | 40,393,744 | ||||||||||||
U.S. Treasury Note | 2.38 | 3-15-2021 | 20,000,000 | 20,241,058 | ||||||||||||
U.S. Treasury Note | 2.38 | 4-15-2021 | 30,000,000 | 30,422,171 | ||||||||||||
U.S. Treasury Note | 2.50 | 12-31-2020 | 20,000,000 | 20,071,814 | ||||||||||||
U.S. Treasury Note | 2.50 | 2-28-2021 | 20,000,000 | 20,108,797 | ||||||||||||
U.S. Treasury Note | 2.63 | 11-15-2020 | 170,000,000 | 170,544,060 | ||||||||||||
U.S. Treasury Note | 2.75 | 11-30-2020 | 20,000,000 | 20,071,094 | ||||||||||||
U.S. Treasury Note | 2.88 | 10-31-2020 | 60,000,000 | 60,178,370 | ||||||||||||
U.S. Treasury Note | 3.63 | 2-15-2021 | 30,000,000 | 30,331,870 | ||||||||||||
Total Treasury Debt (Cost $19,725,972,780) |
| 19,725,972,780 | ||||||||||||||
|
|
Total investments in securities (Cost $19,725,972,780) | 99.86 | % | 19,725,972,780 | |||||
Other assets and liabilities, net | 0.14 | 28,483,595 | ||||||
|
|
|
| |||||
Total net assets | 100.00 | % | $ | 19,754,456,375 | ||||
|
|
|
|
(z) | Zero coupon security. The rate represents the current yield to maturity. |
%% | The security is purchased on a when-issued basis. |
## | All or a portion of this security is segregated for when-issued securities. |
± | Variable rate investment. The rate shown is the rate in effect at period end. |
The accompanying notes are an integral part of these financial statements.
10 | Government Money Market Funds
Table of Contents
Statement of assets and liabilities—July 31, 2020 (unaudited)
Assets | ||||
Investments in unaffiliated securities, at amortized cost | $ | 19,725,972,780 | ||
Cash | 1,616 | |||
Receivable for investments sold | 749,526,037 | |||
Receivable for Fund shares sold | 9,647,781 | |||
Receivable for interest | 6,226,369 | |||
Prepaid expenses and other assets | 322,664 | |||
|
| |||
Total assets | 20,491,697,247 | |||
|
| |||
Liabilities | ||||
Payable for investments purchased | 724,906,154 | |||
Payable for Fund shares redeemed | 8,127,832 | |||
Management fee payable | 466,015 | |||
Dividends payable | 280,275 | |||
Administration fees payable | 1,649,351 | |||
Distribution fee payable | 254,517 | |||
Trustees’ fees and expenses payable | 2,658 | |||
Accrued expenses and other liabilities | 1,554,070 | |||
|
| |||
Total liabilities | 737,240,872 | |||
|
| |||
Total net assets | $ | 19,754,456,375 | ||
|
| |||
Net assets consist of | ||||
Paid-in capital | $ | 19,753,644,151 | ||
Total distributable earnings | 812,224 | |||
|
| |||
Total net assets | $ | 19,754,456,375 | ||
|
| |||
Computation of net asset value per share | ||||
Net assets – Class A | $ | 230,735,701 | ||
Shares outstanding – Class A1 | 230,718,365 | |||
Net asset value per share – Class A | $1.00 | |||
Net assets – Administrator Class | $ | 490,315,744 | ||
Shares outstanding – Administrator Class1 | 490,284,205 | |||
Net asset value per share – Administrator Class | $1.00 | |||
Net assets – Institutional Class | $ | 13,081,279,680 | ||
Shares outstanding – Institutional Class1 | 13,080,462,355 | |||
Net asset value per share – Institutional Class | $1.00 | |||
Net assets – Service Class | $ | 5,160,816,217 | ||
Shares outstanding – Service Class1 | 5,160,417,369 | |||
Net asset value per share – Service Class | $1.00 | |||
Net assets – Sweep Class | $ | 791,309,033 | ||
Shares outstanding – Sweep Class1 | 791,251,405 | |||
Net asset value per share – Sweep Class | $1.00 |
1 | The Fund has an unlimited number of authorized shares. |
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 11
Table of Contents
Statement of operations—six months ended July 31, 2020 (unaudited)
Investment income | ||||
Interest | $ | 52,043,175 | ||
|
| |||
Expenses | ||||
Management fee | 13,071,093 | |||
Administration fees |
| |||
Class A | 439,137 | |||
Administrator Class | 270,900 | |||
Institutional Class | 4,976,069 | |||
Service Class | 2,933,636 | |||
Sweep Class | 103,688 | |||
Shareholder servicing fees |
| |||
Class A | 498,913 | |||
Administrator Class | 270,836 | |||
Service Class | 6,111,667 | |||
Sweep Class | 864,065 | |||
Distribution fee |
| |||
Sweep Class | 1,209,692 | |||
Custody and accounting fees | 173,349 | |||
Professional fees | 26,209 | |||
Registration fees | 116,364 | |||
Shareholder report expenses | 25,451 | |||
Trustees’ fees and expenses | 9,313 | |||
Other fees and expenses | 79,883 | |||
|
| |||
Total expenses | 31,180,265 | |||
Less: Fee waivers and/or expense reimbursements |
| |||
Fund-level | (4,090,979 | ) | ||
Class A | (216,431 | ) | ||
Administrator Class | (89,624 | ) | ||
Service Class | (1,928,854 | ) | ||
Sweep Class | (764,382 | ) | ||
|
| |||
Net expenses | 24,089,995 | |||
|
| |||
Net investment income | 27,953,180 | |||
Net realized gains on investments | 199,474 | |||
|
| |||
Net increase in net assets resulting from operations | $ | 28,152,654 | ||
|
|
The accompanying notes are an integral part of these financial statements.
12 | Government Money Market Funds
Table of Contents
Statement of changes in net assets
Six months ended (unaudited) | Year ended January 31, 2020 | |||||||||||||||
Operations |
| |||||||||||||||
Net investment income | $ | 27,953,180 | $ | 220,324,593 | ||||||||||||
Net realized gains on investments | 199,474 | 1,197,710 | ||||||||||||||
|
| |||||||||||||||
Net increase in net assets resulting from operations | 28,152,654 | 221,522,303 | ||||||||||||||
|
| |||||||||||||||
Distributions to shareholders from net investment income and net realized gains | ||||||||||||||||
Class A | (453,966 | ) | (5,743,559 | ) | ||||||||||||
Administrator Class | (989,481 | ) | (11,061,889 | ) | ||||||||||||
Institutional Class | (19,882,676 | ) | (141,126,498 | ) | ||||||||||||
Service Class | (6,088,963 | ) | (56,995,623 | ) | ||||||||||||
Sweep Class | (538,094 | ) | (6,082,256 | ) | ||||||||||||
|
| |||||||||||||||
Total distributions to shareholders | (27,953,180 | ) | (221,009,825 | ) | ||||||||||||
|
| |||||||||||||||
Capital share transactions | Shares | Shares | ||||||||||||||
Proceeds from shares sold |
| |||||||||||||||
Class A | 593,765,222 | 593,765,222 | 1,190,400,202 | 1,190,400,202 | ||||||||||||
Administrator Class | 1,113,605,493 | 1,113,605,493 | 2,451,512,619 | 2,451,512,619 | ||||||||||||
Institutional Class | 25,403,622,373 | 25,403,622,373 | 25,146,673,331 | 25,146,673,331 | ||||||||||||
Service Class | 12,038,879,629 | 12,038,879,629 | 18,262,618,012 | 18,262,618,012 | ||||||||||||
Sweep Class | 3,754,830,488 | 3,754,830,488 | 4,752,687,515 | 4,752,687,515 | ||||||||||||
|
| |||||||||||||||
42,904,703,205 | 51,803,891,679 | |||||||||||||||
|
| |||||||||||||||
Reinvestment of distributions |
| |||||||||||||||
Class A | 477,408 | 477,408 | 5,712,034 | 5,712,034 | ||||||||||||
Administrator Class | 792,548 | 792,548 | 6,629,965 | 6,629,965 | ||||||||||||
Institutional Class | 12,136,093 | 12,136,093 | 90,583,672 | 90,583,672 | ||||||||||||
Service Class | 2,148,519 | 2,148,519 | 17,911,478 | 17,911,478 | ||||||||||||
Sweep Class | 562,253 | 562,253 | 6,057,655 | 6,057,655 | ||||||||||||
|
| |||||||||||||||
16,116,821 | 126,894,804 | |||||||||||||||
|
| |||||||||||||||
Payment for shares redeemed |
| |||||||||||||||
Class A | (831,848,358 | ) | (831,848,358 | ) | (1,111,780,649 | ) | (1,111,780,649 | ) | ||||||||
Administrator Class | (1,178,509,768 | ) | (1,178,509,768 | ) | (2,595,952,750 | ) | (2,595,952,750 | ) | ||||||||
Institutional Class | (19,899,149,674 | ) | (19,899,149,674 | ) | (24,969,710,678 | ) | (24,969,710,678 | ) | ||||||||
Service Class | (11,110,784,852 | ) | (11,110,784,852 | ) | (16,846,608,441 | ) | (16,846,608,441 | ) | ||||||||
Sweep Class | (3,506,965,419 | ) | (3,506,965,419 | ) | (4,634,944,630 | ) | (4,634,944,630 | ) | ||||||||
|
| |||||||||||||||
(36,527,258,071 | ) | (50,158,997,148 | ) | |||||||||||||
|
| |||||||||||||||
Net increase in net assets resulting from capital share transactions | 6,393,561,955 | 1,771,789,335 | ||||||||||||||
|
| |||||||||||||||
Total increase in net assets | 6,393,761,429 | 1,772,301,813 | ||||||||||||||
|
| |||||||||||||||
Net assets | ||||||||||||||||
Beginning of period | 13,360,694,946 | 11,588,393,133 | ||||||||||||||
|
| |||||||||||||||
End of period | $ | 19,754,456,375 | $ | 13,360,694,946 | ||||||||||||
|
|
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 13
Table of Contents
(For a share outstanding throughout each period)
Six months ended July 31, 2020 (unaudited) | Year ended January 31 | |||||||||||||||||||||||
CLASS A | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Net investment income | 0.00 | 1 | 0.02 | 0.01 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1,2 | ||||||||||||||
Net realized gains (losses) on investments | 0.00 | 1 | 0.00 | 1 | (0.00 | )3 | (0.00 | )3 | 0.00 | 1 | (0.00 | )3 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 0.00 | 1 | 0.02 | 0.01 | 0.00 | 1 | 0.00 | 1 | (0.00 | )3 | ||||||||||||||
Distributions to shareholders from | ||||||||||||||||||||||||
Net investment income | (0.00 | )1 | (0.02 | ) | (0.01 | ) | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | ||||||||||||
Net realized gains | 0.00 | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions to shareholders | (0.00 | )1 | (0.02 | ) | (0.01 | ) | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | ||||||||||||
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Total return4 | 0.13 | % | 1.54 | % | 1.35 | % | 0.32 | % | 0.01 | % | 0.00 | % | ||||||||||||
Ratios to average net assets (annualized) | ||||||||||||||||||||||||
Gross expenses | 0.61 | % | 0.63 | % | 0.71 | % | 0.79 | % | 0.79 | % | 0.79 | % | ||||||||||||
Net expenses | 0.40 | % | 0.60 | % | 0.62 | % | 0.64 | % | 0.36 | % | 0.08 | % | ||||||||||||
Net investment income | 0.23 | % | 1.49 | % | 1.35 | % | 0.31 | % | 0.00 | % | 0.00 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (000s omitted) | $230,736 | $468,360 | $384,013 | $291,246 | $363,639 | $464,176 |
1 | Amount is less than $0.005. |
2 | Calculated based upon average shares outstanding |
3 | Amount is more than $(0.005). |
4 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
14 | Government Money Market Funds
Table of Contents
Financial highlights
(For a share outstanding throughout each period)
Six months ended July 31, 2020 (unaudited) | Year ended January 31 | |||||||||||||||||||||||
ADMINISTRATOR CLASS | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Net investment income | 0.00 | 1 | 0.02 | 0.02 | 0.01 | 0.00 | 1 | 0.00 | 1 | |||||||||||||||
Net realized gains (losses) on investments | 0.00 | 1 | 0.00 | 1 | (0.00 | )2 | (0.00 | )2 | 0.00 | 1 | (0.00 | )2 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 0.00 | 1 | 0.02 | 0.02 | 0.01 | 0.00 | 1 | (0.00 | )2 | |||||||||||||||
Distributions to shareholders from | ||||||||||||||||||||||||
Net investment income | (0.00 | )1 | (0.02 | ) | (0.02 | ) | (0.01 | ) | (0.00 | )1 | (0.00 | )1 | ||||||||||||
Net realized gains | 0.00 | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions to shareholders | (0.00 | )1 | (0.02 | ) | (0.02 | ) | (0.01 | ) | (0.00 | )1 | (0.00 | )1 | ||||||||||||
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Total return3 | 0.19 | % | 1.84 | % | 1.67 | % | 0.67 | % | 0.07 | % | 0.00 | % | ||||||||||||
Ratios to average net assets (annualized) | ||||||||||||||||||||||||
Gross expenses | 0.34 | % | 0.36 | % | 0.44 | % | 0.52 | % | 0.52 | % | 0.51 | % | ||||||||||||
Net expenses | 0.28 | % | 0.30 | % | 0.30 | % | 0.30 | % | 0.30 | % | 0.08 | % | ||||||||||||
Net investment income | 0.37 | % | 1.85 | % | 1.63 | % | 0.65 | % | 0.06 | % | 0.00 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (000s omitted) | $490,316 | $554,447 | $692,247 | $914,471 | $1,226,947 | $1,945,991 |
1 | Amount is less than $0.005. |
2 | Amount is more than $(0.005). |
3 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 15
Table of Contents
Financial highlights
(For a share outstanding throughout each period)
Six months ended July 31, 2020 (unaudited) | Year ended January 31 | |||||||||||||||||||||||
INSTITUTIONAL CLASS | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Net investment income | 0.00 | 1 | 0.02 | 0.02 | 0.01 | 0.00 | 1 | 0.00 | 1 | |||||||||||||||
Net realized gains (losses) on investments | 0.00 | 1 | 0.00 | 1 | (0.00 | )2 | (0.00 | )2 | 0.00 | 1 | (0.00 | )2 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 0.00 | 1 | 0.02 | 0.02 | 0.01 | 0.00 | 1 | 0.00 | 1 | |||||||||||||||
Distributions to shareholders from | ||||||||||||||||||||||||
Net investment income | (0.00 | )1 | (0.02 | ) | (0.02 | ) | (0.01 | ) | (0.00 | )1 | (0.00 | )1 | ||||||||||||
Net realized gains | 0.00 | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions to shareholders | (0.00 | )1 | (0.02 | ) | (0.02 | ) | (0.01 | ) | (0.00 | )1 | (0.00 | )1 | ||||||||||||
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Total return3 | 0.23 | % | 1.95 | % | 1.77 | % | 0.77 | % | 0.17 | % | 0.01 | % | ||||||||||||
Ratios to average net assets (annualized) | ||||||||||||||||||||||||
Gross expenses | 0.22 | % | 0.24 | % | 0.31 | % | 0.40 | % | 0.40 | % | 0.40 | % | ||||||||||||
Net expenses | 0.20 | % | 0.20 | % | 0.20 | % | 0.20 | % | 0.20 | % | 0.11 | % | ||||||||||||
Net investment income | 0.32 | % | 1.92 | % | 1.79 | % | 0.78 | % | 0.18 | % | 0.01 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (000s omitted) | $13,081,280 | $7,564,485 | $7,296,690 | $4,700,731 | $3,566,678 | $632,263 |
1 | Amount is less than $0.005. |
2 | Amount is more than $(0.005). |
3 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
16 | Government Money Market Funds
Table of Contents
Financial highlights
(For a share outstanding throughout each period)
Six months ended July 31, 2020 (unaudited) | Year ended January 31 | |||||||||||||||||||||||
SERVICE CLASS | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Net investment income | 0.00 | 1 | 0.02 | 0.01 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | ||||||||||||||
Net realized gains (losses) on investments | 0.00 | 1 | 0.00 | 1 | (0.00 | )2 | (0.00 | )2 | 0.00 | 1 | (0.00 | )2 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 0.00 | 1 | 0.02 | 0.01 | 0.00 | 1 | 0.00 | 1 | (0.00 | )2 | ||||||||||||||
Distributions to shareholders from | ||||||||||||||||||||||||
Net investment income | (0.00 | )1 | (0.02 | ) | (0.01 | ) | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | ||||||||||||
Net realized gains | 0.00 | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions to shareholders | (0.00 | )1 | (0.02 | ) | (0.01 | ) | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | ||||||||||||
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Total return3 | 0.15 | % | 1.64 | % | 1.46 | % | 0.46 | % | 0.01 | % | 0.00 | % | ||||||||||||
Ratios to average net assets (annualized) | ||||||||||||||||||||||||
Gross expenses | 0.51 | % | 0.53 | % | 0.61 | % | 0.69 | % | 0.69 | % | 0.69 | % | ||||||||||||
Net expenses | 0.35 | % | 0.50 | % | 0.50 | % | 0.50 | % | 0.36 | % | 0.09 | % | ||||||||||||
Net investment income | 0.25 | % | 1.58 | % | 1.45 | % | 0.45 | % | 0.00 | % | 0.00 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (000s omitted) | $5,160,816 | $4,230,537 | $2,796,397 | $2,945,498 | $3,337,172 | $5,614,425 |
1 | Amount is less than $0.005. |
2 | Amount is more than $(0.005). |
3 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Government Money Market Funds | 17
Table of Contents
Financial highlights
(For a share outstanding throughout each period)
Six months ended July 31, 2020 (unaudited) | Year ended January 31 | |||||||||||||||||||||||
SWEEP CLASS | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Net investment income | 0.00 | 1 | 0.01 | 0.01 | 0.00 | 1 | 0.00 | 1 | 0.00 | 1 | ||||||||||||||
Net realized gains (losses) on investments | 0.00 | 1 | 0.00 | 1 | (0.00 | )2 | (0.00 | )2 | 0.00 | 1 | (0.00 | )2 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total from investment operations | 0.00 | 1 | 0.01 | 0.01 | 0.00 | 1 | 0.00 | 1 | (0.00 | )2 | ||||||||||||||
Distributions to shareholders from | ||||||||||||||||||||||||
Net investment income | (0.00 | )1 | (0.01 | ) | (0.01 | ) | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | ||||||||||||
Net realized gains | 0.00 | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total distributions to shareholders | (0.00 | )1 | (0.01 | ) | (0.01 | ) | (0.00 | )1 | (0.00 | )1 | (0.00 | )1 | ||||||||||||
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||
Total return3 | 0.10 | % | 1.34 | % | 1.13 | % | 0.18 | % | 0.01 | % | 0.00 | % | ||||||||||||
Ratios to average net assets (annualized) | ||||||||||||||||||||||||
Gross expenses | 0.77 | % | 0.79 | % | 0.87 | % | 0.95 | % | 1.11 | % | 1.14 | % | ||||||||||||
Net expenses | 0.41 | % | 0.79 | % | 0.83 | % | 0.77 | % | 0.36 | % | 0.09 | % | ||||||||||||
Net investment income | 0.16 | % | 1.30 | % | 1.14 | % | 0.16 | % | 0.00 | % | 0.00 | % | ||||||||||||
Supplemental data | ||||||||||||||||||||||||
Net assets, end of period (000s omitted) | $791,309 | $542,866 | $419,046 | $481,702 | $672,256 | $473,246 |
1 | Amount is less than $0.005. |
2 | Amount is more than $(0.005). |
3 | Returns for periods of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
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Notes to financial statements (unaudited)
1. ORGANIZATION
Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. These financial statements report on the Wells Fargo 100% Treasury Money Market Fund (the “Fund”) which is a diversified series of the Trust.
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Securities valuation
As permitted under Rule 2a-7 of the 1940 Act, portfolio securities are valued at amortized cost, which approximates fair value. The amortized cost method involves valuing a security at its cost, plus accretion of discount or minus amortization of premium over the period until maturity.
Investments which are not valued using the method discussed above are valued at their fair value, as determined in good faith by the Board of Trustees of the Fund. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Wells Fargo Asset Management Pricing Committee at Wells Fargo Funds Management, LLC (“Funds Management”). The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Wells Fargo Asset Management Pricing Committee which may include items for ratification.
When-issued transactions
The Fund may purchase securities on a forward commitment or when-issued basis. The Fund records a when-issued transaction on the trade date and will segregate assets in an amount at least equal in value to the Fund’s commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.
Security transactions and income recognition
Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.
Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has been determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.
Distributions to shareholders
Distributions to shareholders from net investment income are declared daily and paid monthly. Distributions from net realized gains, if any, are recorded on the ex-dividend date and paid at least annually. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior to the Fund’s fiscal year end may be categorized as a tax return of capital at year end.
Federal and other taxes
The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.
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Notes to financial statements (unaudited)
The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.
As of July 31, 2020, the cost of investments for federal income tax purposes is substantially the same as for financial reporting purposes.
Class allocations
The separate classes of shares offered by the Fund differ principally in applicable distribution, shareholder servicing, and administration fees. Class specific expenses are charged directly to that share class. Investment income, common fund-level expenses, and realized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.
3. FAIR VALUATION MEASUREMENTS
Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:
∎ | Level 1 – quoted prices in active markets for identical securities |
∎ | Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
∎ | Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
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 is a summary of the inputs used in valuing the Fund’s assets and liabilities as of July 31, 2020:
Quoted prices (Level 1) | Other significant observable inputs (Level 2) | Significant (Level 3) | Total | |||||||||||||
Assets | ||||||||||||||||
Investments in treasury debt | $ | 0 | $ | 19,725,972,780 | $ | 0 | $ | 19,725,972,780 |
Additional sector, industry or geographic detail is included in the Portfolio of Investments.
For the six months ended July 31, 2020, the Fund did not have any transfers into/out of Level 3.
4. TRANSACTIONS WITH AFFILIATES
Management fee
Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the subadviser and providing fund-level administrative services in connection with the Fund’s operations. As compensation for its services under the investment management agreement, Funds Management is entitled to receive a management fee at the following annual rate based on the Fund’s average daily net assets:
Average daily net assets | Management fee | |||
First $5 billion | 0.15 | % | ||
Next $5 million | 0.14 | |||
Over $10 billion | 0.13 |
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Notes to financial statements (unaudited)
For the six months ended July 31, 2020, the management fee was equivalent to an annual rate of 0.14% of the Fund’s average daily net assets.
Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. Wells Capital Management Incorporated, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.05% and declining to 0.01% as the average daily net assets of the Fund increase.
Administration fees
Under a class-level administration agreement, Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Funds Management receives an annual fee which is calculated based on the average daily net assets of each class as follows:
Class-level administration fee | ||||
Class A | 0.22 | % | ||
Administrator Class | 0.10 | |||
Institutional Class | 0.08 | |||
Service Class | 0.12 | |||
Sweep Class | 0.03 |
Waivers and/or expense reimbursements
Funds Management has contractually waived and/or reimbursed management and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. When each class of the Fund has exceeded its expense cap, Funds Management has waived fees and/or reimbursed expenses from fund-level expenses on a proportionate basis and then from class specific expenses. When only certain classes exceed their expense caps, waivers and/or reimbursements are applied against class specific expenses before fund-level expenses. Funds Management has committed through May 31, 2021 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.60% for Class A shares, 0.30% for Administrator Class shares, 0.20% for Institutional Class shares, 0.50% for Service Class shares, and 0.78% for Sweep Class shares. 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. Prior to June 1, 2020, the Fund’s expenses were capped at 0.83% for Sweep Class shares.
During the six months ended July 31, 2020, Funds Management also voluntarily waived class-level expenses as follows:
% of average daily net assets (annualized) | ||||
Class A | 0.20 | % | ||
Administrator Class | 0.02 | |||
Service Class | 0.15 | |||
Sweep Class | 0.36 |
Distribution fee
The Trust has adopted a distribution plan for Sweep Class shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Sweep Class shares and paid to Wells Fargo Funds Distributor, LLC, the principal underwriter, at an annual rate of 0.35% of the average daily net assets of Sweep Class shares.
Shareholder servicing fees
The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Service Class, and Sweep Class of the Fund are charged a fee at an annual rate of 0.25% of the respective average daily net assets of each class. Administrator Class is charged a fee at an annual rate of 0.10% of its average daily net assets. A portion of these total shareholder servicing fees were paid to affiliates of Wells Fargo.
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Notes to financial statements (unaudited)
Interfund transactions
The Fund may purchase or sell portfolio investment securities to certain other Wells Fargo affiliates pursuant to Rule 17a-7 under the 1940 Act and under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which do not incur broker commissions, are effected at current market prices.
5. INDEMNIFICATION
Under the Fund’s organizational documents, the officers and Trustees have been granted certain indemnification rights against certain liabilities that may arise out of performance of their duties to the Fund. The Fund has entered into a separate agreement with each Trustee that converts indemnification rights currently existing under the Fund’s organizational documents into contractual rights that cannot be changed in the future without the consent of the Trustee. Additionally, in the normal course of business, the Fund may enter into contracts with service providers that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated.
6. NEW ACCOUNTING PRONOUNCEMENT
In August 2018, FASB issued Accounting Standards Update (“ASU”) No. 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 updates the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurements. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Management has adopted this guidance which did not have a material impact on the financial statements.
7. CORONAVIRUS (COVID-19) PANDEMIC
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 are 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 impacts 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.
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PROXY VOTING INFORMATION
A description of the policies and procedures used to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at wfam.com, or visiting the SEC website at sec.gov. Information regarding how the proxies related to portfolio securities were voted during the most recent 12-month period ended June 30 is available on the website at wfam.com or by visiting the SEC website at sec.gov.
PORTFOLIO HOLDINGS INFORMATION
The Fund files its complete schedule of portfolio holdings with the SEC each month on Form N-MFP. Shareholders may view the filed Form N-MFP by visiting the SEC website at sec.gov. The Fund’s portfolio holdings information is also available on our website at wfam.com.
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Other information (unaudited)
BOARD OF TRUSTEES AND OFFICERS
Each of the Trustees and Officers1 listed in the table below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 147 mutual funds comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information2. The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.
Independent Trustees
Name and year of birth | Position held and length of service* | Principal occupations during past five years or longer | Current other public company or investment company directorships | |||
William R. Ebsworth (Born 1957) | Trustee, since 2015 | Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief investment officer at Fidelity Management and Research Company in Boston, Tokyo, and Hong Kong, and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. where he led a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Audit Committee Chair and Investment Committee Chair of the Vincent Memorial Hospital Endowment (non-profit organization). Mr. Ebsworth is a CFA® charterholder. | N/A | |||
Jane A. Freeman (Born 1953) | Trustee, since 2015; Chair Liaison, since 2018 | Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is also an inactive Chartered Financial Analyst. | N/A | |||
Isaiah Harris, Jr. (Born 1952) | Trustee, since 2009; Audit Committee Chairman, since 2019 | Retired. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (private school). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status). | CIGNA Corporation | |||
Judith M. Johnson (Born 1949) | Trustee, since 2008; Audit Committee Chairman, from 2009 to 2018 | Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant. | N/A |
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Other information (unaudited)
Name and year of birth | Position held and length of service* | Principal occupations during past five years or longer | Current other public company or investment company directorships | |||
David F. Larcker (Born 1950) | Trustee, since 2009 | James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005. | N/A | |||
Olivia S. Mitchell (Born 1953) | Trustee, since 2006; Nominating and Governance Committee Chair, since 2018 | International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993. | N/A | |||
Timothy J. Penny (Born 1951) | Trustee, since 1996; Chairman, since 2018 | President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007. | N/A | |||
James G. Polisson (Born 1959) | Trustee, since 2018 | Retired. Chief Marketing Officer, Source (ETF) UK Services, Ltd, from 2015 to 2017. From 2012 to 2015, Principal of The Polisson Group, LLC, a management consulting, corporate advisory and principal investing company. Chief Executive Officer and Managing Director at Russell Investments, Global Exchange Traded Funds from 2010 to 2012. Managing Director of Barclays Global Investors from 1998 to 2010 and Global Chief Marketing Officer for iShares and Barclays Global Investors from 2000 to 2010. Trustee of the San Francisco Mechanics’ Institute, a non-profit organization, from 2013 to 2015. Board member of the Russell Exchange Traded Fund Trust from 2011 to 2012. Director of Barclays Global Investors Holdings Deutschland GmbH from 2006 to 2009. Mr. Polisson is an attorney and has a retired status with the Massachusetts and District of Columbia Bar Associations. | N/A | |||
Pamela Wheelock (Born 1959) | Trustee, since January 2020; previously Trustee from January 2018 to July 2019 | Board member of the Destination Medical Center Economic Development Agency, Rochester, Minnesota since 2019 and Interim President of the McKnight Foundation since 2020. Acting Commissioner, Minnesota Department of Human Services, July 2019 through September 2019. Human Services Manager (part-time), Minnesota Department of Human Services, October 2019 through December 2019. Chief Operating Officer, Twin Cities Habitat for Humanity from 2017 to 2019. Vice President of University Services, University of Minnesota from 2012 to 2016. Prior thereto, on the Board of Directors, Governance Committee and Finance Committee for the Minnesota Philanthropy Partners (Saint Paul Foundation) from 2012 to 2018, Interim Chief Executive Officer of Blue Cross Blue Shield of Minnesota from 2011 to 2012, Chairman of the Board from 2009 to 2012 and Board Director from 2003 to 2015. Vice President, Leadership and Community Engagement, Bush Foundation, Saint Paul, Minnesota (a private foundation) from 2009 to 2011. Executive Vice President and Chief Financial Officer, Minnesota Sports and Entertainment from 2004 to 2009 and Senior Vice President from 2002 to 2004. Executive Vice President of the Minnesota Wild Foundation from 2004 to 2008. Commissioner of Finance, State of Minnesota, from 1999 to 2002. Currently Board Chair of the Minnesota Wild Foundation since 2010. | N/A |
* | Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable. |
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Other information (unaudited)
Officers
Name and year of birth | Position held and length of service | Principal occupations during past five years or longer | ||
Andrew Owen (Born 1960) | President, since 2017 | Executive Vice President of Wells Fargo & Company and Head of Affiliated Managers, Wells Fargo Asset Management, since 2014. In addition, Mr. Owen is currently President, Chief Executive Officer and Director of Wells Fargo Funds Management, LLC since 2017. Prior thereto, Executive Vice President responsible for marketing, investments and product development for Wells Fargo Funds Management, LLC, from 2009 to 2014. | ||
Nancy Wiser1 (Born 1967) | Treasurer, since 2012 | Executive Vice President of Wells Fargo Funds Management, LLC since 2011. Chief Operating Officer and Chief Compliance Officer at LightBox Capital Management LLC, from 2008 to 2011. | ||
Michelle Rhee (Born 1966) | Chief Legal Officer, since 2019 | Secretary of Wells Fargo Funds Management, LLC, Chief Legal Counsel of Wells Fargo Asset Management and Assistant General Counsel of Wells Fargo Bank, N.A. since 2018. Associate General Counsel and Managing Director of Bank of America Corporation from 2004 to 2018. | ||
Catherine Kennedy (Born 1969) | Secretary, since 2019 | Vice President of Wells Fargo Funds Management, LLC and Senior Counsel of the Wells Fargo Legal Department since 2010. Vice President and Senior Counsel of Evergreen Investment Management Company, LLC from 1998 to 2010. | ||
Michael H. Whitaker (Born 1967) | Chief Compliance Officer, since 2016 | Chief Compliance Officer of Wells Fargo Asset Management since 2016. Senior Vice President and Chief Compliance Officer for Fidelity Investments from 2007 to 2016. | ||
David Berardi (Born 1975) | Assistant Treasurer, since 2009 | Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010. | ||
Jeremy DePalma1 (Born 1974) | Assistant Treasurer, since 2009 | Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010 and head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010. |
1 | Nancy Wiser acts as Treasurer of 65 funds in the Fund Complex. Jeremy DePalma acts as the Treasurer of 82 funds and Assistant Treasurer of 65 funds in the Fund Complex. |
2 | The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at wfam.com. |
26 | Government Money Market Funds
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Other information (unaudited)
BOARD CONSIDERATION OF INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:
Wells Fargo 100% Treasury Money Market Fund
Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment management and sub-advisory agreements. In this regard, at a Board meeting held on May 26, 2020 and May 28, 2020 (together, the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment management and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo 100% Treasury Money Market Fund (the “Fund”): (i) an investment management agreement (the “Management Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); and (ii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the “Sub-Adviser”), an affiliate of Funds Management. The Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”
At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at a Board meeting held in April 2020, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing investment performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.
In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2020. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and investment performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.
After its deliberations, the Board unanimously approved the continuation of the Advisory Agreements for a one-year term and determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.
Nature, extent and quality of services
The Board received and considered various information regarding the nature, extent and quality of services provided to the Fund by Funds Management and the Sub-Adviser under the Advisory Agreements. This information included a description of the investment advisory services and Fund-level administrative services covered by the Management Agreement, as well as, among other things, a summary of the background and experience of senior management of Wells Fargo Asset Management (“WFAM”), of which Funds Management and the Sub-Adviser are a part, and a summary of investments made in the business of WFAM. The Board also received a description of Funds Management’s and the Sub-Adviser’s business continuity plans and of their approaches to data privacy and cybersecurity, and related testing. The Board also received and reviewed information about Funds Management’s role as administrator of the Fund’s liquidity risk management program, Funds Management’s approach to risk management, and Funds Management’s intermediary and vendor oversight program.
The Board also considered the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund. The Board evaluated the ability of Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory and supervisory personnel. The Board further considered the compliance programs and compliance records of Funds Management and the Sub-Adviser. In addition, the Board took into account the full range of services provided to the Fund by Funds Management and its affiliates.
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Other information (unaudited)
Fund investment performance and expenses
The Board considered the investment performance results for the Fund over various time periods ended December 31, 2019. The Board also considered more current results for various time periods ended March 31, 2020. The Board considered these results in comparison to the investment performance of funds in a universe that was determined by Broadridge Inc. (“Broadridge”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Broadridge is an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds in the performance Universe. The Board noted that the investment performance of the Fund (Service Class) was higher than the average investment performance of the Universe for the one-, three-, five- and ten-year periods ended December 31, 2019. The Board also noted that the investment performance of the Fund (Service Class) was higher than the average investment performance of the Universe for all periods ended March 31, 2020. The Board also noted that the investment performance of the Fund was in range of its benchmark index, the Lipper U.S. Treasury Money Market Funds Index, for all periods ended December 31, 2019.
The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees, custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 shareholder service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Broadridge to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Broadridge to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Broadridge reports, the Board noted that the net operating expense ratios of the Fund were lower than or in range of the median net operating expense ratios of the expense Groups for each share class.
The Board took into account the Fund’s investment performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreements.
Investment management and sub-advisory fee rates
The Board reviewed and considered the contractual fee rates payable by the Fund to Funds Management under the Management Agreement, as well as the contractual fee rates payable by the Fund to Funds Management for class-level administrative services under a Class-Level Administration Agreement, which include, among other things, class-level transfer agency and sub-transfer agency costs (collectively, the “Management Rates”). The Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Funds Management to the Sub-Adviser for investment sub-advisory services.
Among other information reviewed by the Board was a comparison of the Fund’s Management Rates with the average contractual investment management fee rates of funds in the expense Groups at a common asset level as well as transfer agency costs of the funds in the expense Groups. The Board noted that the Management Rates of the Fund were lower than or in range of the sum of these average rates for the Fund’s expense Groups for all share classes.
The Board also received and considered information about the portion of the total management fee that was retained by Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Funds Management and not delegated to or assumed by the Sub-Adviser, and about Funds Management’s on-going oversight services. Given the affiliation between Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of fees between them.
The Board also received and considered information about the nature and extent of services offered and fee rates charged by Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing proprietary mutual funds compared with those associated with managing assets of other types of clients, including third-party sub-advised fund clients and non-mutual fund clients such as institutional separate accounts.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Funds Management under the Management Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable.
Profitability
The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of both WFAM and Wells Fargo & Co. (“Wells Fargo”) from providing services to the fund family as a whole. The Board noted that the Sub-Adviser’s profitability information with respect to providing services to the Fund and other funds in the family was subsumed in the WFAM and Wells Fargo profitability analysis.
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Other information (unaudited)
Funds Management reported on the methodologies and estimates used in calculating profitability, including a description of the methodology used to allocate certain expenses. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size, type and age of fund.
Based on its review, the Board did not deem the profits reported by Funds Management, WFAM or Wells Fargo from services provided to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.
Economies of scale
The Board received and considered information about the potential for Funds Management to experience economies of scale in the provision of management services to the Fund, the difficulties of calculating economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with shareholders. The Board noted the existence of breakpoints in the Fund’s management fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size, and the size of the Fund in relation to such breakpoints. The Board considered that in addition to management fee breakpoints, Funds Management shares potential economies of scale from its management business in a variety of ways, including through fee waiver and expense reimbursement arrangements, services that benefit shareholders, competitive management fee rates set at the outset without regard to breakpoints, and investments in the business intended to enhance services available to shareholders.
The Board concluded that Funds Management’s arrangements with respect to the Fund, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.
Other benefits to Funds Management and the Sub-Adviser
The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that various affiliates of Funds Management may receive distribution-related fees, shareholder servicing payments and sub-transfer agency fees in respect of shares sold or held through them and services provided.
The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser, fees earned by Funds Management and the Sub-Adviser from managing a private investment vehicle for the fund family’s securities lending collateral, and commissions earned by an affiliated broker from portfolio transactions.
Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.
Conclusion
At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory Agreements for a one-year term and determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable.
Government Money Market Funds | 29
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Other information (unaudited)
LIQUIDITY RISK MANAGEMENT PROGRAM
In accordance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), Wells Fargo Funds Trust (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) on behalf of each of its series, including the Fund, which is reasonably designed to assess and manage the Fund’s liquidity risk. “Liquidity risk” is defined as the risk that the Fund is unable to meet redemption requests without significantly diluting remaining investors’ interests in the Fund. The Trust’s Board of Trustees (the “Board”) previously approved the designation of Wells Fargo Funds Management, LLC (“Funds Management”), the Fund’s investment manager, as the administrator of the Program, and Funds Management has established a Liquidity Risk Management Council composed of personnel from multiple departments within Funds Management and its affiliates to assist Funds Management in the implementation and on-going administration of the Program.
The Program is comprised of various components designed to support the assessment and/or management of liquidity risk, including: (1) the periodic assessment (no less frequently than annually) of certain factors that influence the Fund’s liquidity risk; (2) the periodic classification (no less frequently than monthly) of the Fund’s investments into one of four liquidity categories that reflect an estimate of their liquidity under current market conditions; (3) a 15% limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); (4) to the extent the Fund does not invest primarily in “highly liquid investments” (as defined under the Liquidity Rule), the determination of a minimum percentage of the Fund’s assets that generally will be invested in highly liquid investments (an “HLIM”); (5) if the Fund has established an HLIM, the periodic review (no less frequently than annually) of the HLIM and the adoption of policies and procedures for responding to a shortfall of the Fund’s “highly liquid investments” below its HLIM; and (6) periodic reporting to the Board.
At a meeting of the Board held on May 26 and 28, 2020, the Board received a written report (the “Report”) from Funds Management that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation. The Report covered the initial period from December 1, 2018 through December 31, 2019 (the “Reporting Period”). No significant liquidity events impacting the Fund were noted in the Report. There were no material changes to the Program during the Reporting Period. The Report concluded that the Program is operating effectively to assess and manage the Fund’s liquidity risk, and that the Program has been and continues to be adequately and effectively implemented to monitor and, as applicable, respond to the Fund’s liquidity developments.
There can be no assurance that the Program will achieve its objectives under all circumstances in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other risks to which an investment in the Fund may be subject.
30 | Government Money Market Funds
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For more information
More information about Wells Fargo Funds is available free upon request. To obtain literature, please write, visit the Fund’s website, or call:
Wells Fargo Funds
P.O. Box 219967
Kansas City, MO 64121-9967
Website: wfam.com
Individual investors: 1-800-222-8222
Retail investment professionals: 1-888-877-9275
Institutional investment professionals: 1-866-765-0778
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-260-5969 or visit the Fund’s website at wfam.com. Read the prospectus carefully before you invest or send money.
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).
This material is for general informational and educational purposes only and is NOT intended to provide investment advice or a recommendation of any kind—including a recommendation for any specific investment, strategy, or plan.
INVESTMENT PRODUCTS: NOT FDIC INSURED ◾ NO BANK GUARANTEE ◾ MAY LOSE VALUE
© 2020 Wells Fargo & Company. All rights reserved
PAR-0820-01050 09-20
SA300/SAR300 07-20
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ITEM 2. CODE OF ETHICS
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable.
ITEM 6. INVESTMENTS
A Portfolio of Investments for each series of Wells Fargo Funds Trust is included as part of the report to shareholders filed under Item 1 of this Form.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMEENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees that have been implemented since the registrant’s last provided disclosure in response to the requirements of this Item.
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ITEM 11. CONTROLS AND PROCEDURES
(a) The President and Treasurer have concluded that the Wells Fargo Funds Trust disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) provide reasonable assurances that material information relating to the registrant is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing of this report.
(b) There were no significant changes in the registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the most recent fiscal half-year of the period covered by this report that materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
ITEM 12. DISCLOSURES OF SECURITIES LENDING ACTIVITES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 13. EXHIBITS
(a)(1) Not applicable.
(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Wells Fargo Funds Trust | ||
By: | ||
/s/ Andrew Owen | ||
Andrew Owen | ||
President | ||
Date: | September 25, 2020 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the date indicated.
Wells Fargo Funds Trust | ||
By: | ||
/s/ Andrew Owen | ||
Andrew Owen | ||
President | ||
Date: | September 25, 2020 | |
By: | ||
/s/ Nancy Wiser | ||
Nancy Wiser | ||
Treasurer | ||
Date: | September 25, 2020 |