UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-09255
Wells Fargo Variable 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: December 31
Registrant is making a filing for 6 of its series:
Wells Fargo VT Discovery Fund, Wells Fargo VT Index Asset Allocation Fund, Wells Fargo VT International Equity Fund, Wells Fargo VT Omega Growth Fund, Wells Fargo VT Opportunity Fund, and the Wells Fargo VT Small Cap Growth Fund.
Date of reporting period: December 31, 2020
ITEM 1. REPORT TO STOCKHOLDERS
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6 | |
10 | |
11 | |
Financial statements | |
15 | |
16 | |
17 | |
18 | |
19 | |
25 | |
26 |
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 (unhedged) 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 2021. ICE Data Indices, LLC. All rights reserved. |
President
Wells Fargo Funds
Christopher J. Warner, CFA®‡
Expense ratios1 (%) | ||||||
Inception date | 1 year | 5 year | 10 year | Gross | Net 2 | |
Class 2 | 5-8-1992 | 62.65 | 23.91 | 17.25 | 1.17 | 1.16 |
Russell 2500™ Growth Index3 | – | 40.47 | 18.68 | 15.00 | – | – |
Growth of $10,000 investment as of December 31, 20204 |
‡ | CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. |
1 | Reflects the expense ratios as stated in the most recent prospectus, which include the impact of 0.01% in acquired fund fees and expenses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report, which do not include acquired fund fees and expenses. |
2 | The manager has contractually committed through April 30, 2021, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 1.15% for Class 2. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses (if any), and extraordinary expenses are excluded from the expense cap. Prior to or after the commitment expiration date, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Without this cap, the Fund’s returns would have been lower. The expense ratio paid by an investor is the net expense ratio (the total annual fund operating expenses after fee waivers) as stated in the prospectus. |
3 | The Russell 2500TM Growth Index measures the performance of those Russell 2500 companies with higher price/book ratios and higher forecasted growth values. You cannot invest directly in an index. |
4 | The chart compares the performance of the Class 2 shares for the most recent ten years with the Russell 2500TM Growth Index. The chart assumes a hypothetical $10,000 investment and reflects all operating expenses of the Fund but does not reflect fees and expenses charged pursuant to the terms of variable life insurance policies and variable annuity contracts. |
5 | Figures represent the percentage of the Fund's net assets. Holdings are subject to change and may have changed since the date specified. |
6 | Figures represent the percentage of the Fund's long-term investments. These amounts are subject to change and may have changed since the date specified. |
■ | The Fund outperformed its benchmark, the Russell 2500TM Growth Index, for the 12-month period that ended December 31, 2020. |
■ | Stock selection in the health care and consumer discretionary sectors contributed to the Fund’s results. |
■ | Select holdings in the consumer staples sector hindered performance. |
Ten largest holdings (%) as of December 31, 20205 | |
MercadoLibre Incorporated | 3.01 |
StoneCo Limited Class A | 2.67 |
MongoDB Incorporated | 2.64 |
Five9 Incorporated | 2.23 |
Generac Holdings Incorporated | 2.16 |
Align Technology Incorporated | 2.05 |
Chipotle Mexican Grill Incorporated | 1.95 |
Casella Waste Systems Incorporated Class A | 1.91 |
Twilio Incorporated Class A | 1.89 |
Black Knight Incorporated | 1.88 |
Sector allocation as of December 31, 20206 |
Beginning account value 7-1-2020 | Ending account value 12-31-2020 | Expenses paid during the period1 | Annualized net expense ratio | |
Class 2 | ||||
Actual | $1,000.00 | $1,450.34 | $6.98 | 1.13% |
Hypothetical (5% return before expenses) | $1,000.00 | $1,019.44 | $5.75 | 1.13% |
Shares | Value | ||||
Common stocks: 98.09% | |||||
Communication services: 1.95% | |||||
Media: 1.95% | |||||
IAC/InterActiveCorp † | 6,001 | 1,136,289 | |||
Match Group Incorporated † | 25,400 | 3,840,226 | |||
4,976,515 | |||||
Consumer discretionary: 12.14% | |||||
Diversified consumer services: 3.01% | |||||
Bright Horizons Family Solutions Incorporated † | 22,804 | 3,944,864 | |||
Chegg Incorporated † | 41,600 | 3,757,728 | |||
7,702,592 | |||||
Hotels, restaurants & leisure: 3.06% | |||||
Chipotle Mexican Grill Incorporated † | 3,600 | 4,992,156 | |||
Domino's Pizza Incorporated | 7,394 | 2,835,303 | |||
7,827,459 | |||||
Internet & direct marketing retail: 6.07% | |||||
Chewy Incorporated Class A † | 36,700 | 3,298,963 | |||
Etsy Incorporated † | 25,511 | 4,538,662 | |||
MercadoLibre Incorporated † | 4,603 | 7,711,038 | |||
15,548,663 | |||||
Financials: 1.67% | |||||
Consumer finance: 1.67% | |||||
Foley Trasimene Acquisition Corporation † | 174,900 | 2,640,990 | |||
LendingTree Incorporated † | 6,000 | 1,642,740 | |||
4,283,730 | |||||
Health care: 33.43% | |||||
Biotechnology: 9.24% | |||||
Black Diamond Therapeutics Incorporated † | 24,000 | 769,200 | |||
CRISPR Therapeutics AG † | 10,527 | 1,611,789 | |||
Deciphera Pharmaceuticals Incorporated † | 19,211 | 1,096,372 | |||
Exact Sciences Corporation † | 28,800 | 3,815,712 | |||
Mirati Therapeutics Incorporated † | 5,900 | 1,295,876 | |||
Natera Incorporated † | 34,423 | 3,425,777 | |||
ORIC Pharmaceuticals Incorporated †« | 31,140 | 1,054,089 | |||
Sarepta Therapeutics Incorporated † | 14,550 | 2,480,630 | |||
Turning Point Therapeutics Incorporated † | 18,537 | 2,258,733 | |||
Twist Bioscience Corporation † | 19,610 | 2,770,697 | |||
Zai Lab Limited ADR † | 17,812 | 2,410,676 | |||
Zymeworks Incorporated † | 14,200 | 671,092 | |||
23,660,643 | |||||
Health care equipment & supplies: 11.37% | |||||
ABIOMED Incorporated † | 8,600 | 2,788,122 | |||
Align Technology Incorporated † | 9,800 | 5,236,924 | |||
DexCom Incorporated † | 5,700 | 2,107,404 | |||
Haemonetics Corporation † | 26,100 | 3,099,375 |
Shares | Value | ||||
Health care equipment & supplies (continued) | |||||
Inari Medical Incorporated † | 46,000 | $ 4,015,340 | |||
Insulet Corporation † | 12,699 | 3,246,245 | |||
iRhythm Technologies Incorporated † | 19,811 | 4,699,367 | |||
Shockwave Medical Incorporated † | 37,552 | 3,894,893 | |||
29,087,670 | |||||
Health care providers & services: 7.73% | |||||
Amedisys Incorporated † | 12,754 | 3,741,131 | |||
Chemed Corporation | 9,000 | 4,793,490 | |||
Guardant Health Incorporated † | 29,000 | 3,737,520 | |||
HealthEquity Incorporated † | 37,383 | 2,605,969 | |||
Molina Healthcare Incorporated † | 13,500 | 2,871,180 | |||
OAK Street Health Incorporated † | 33,407 | 2,043,172 | |||
19,792,462 | |||||
Health care technology: 1.64% | |||||
Veeva Systems Incorporated Class A † | 15,405 | 4,194,011 | |||
Life sciences tools & services: 2.08% | |||||
Berkeley Lights Incorporated † | 23,028 | 2,058,933 | |||
Bio-Rad Laboratories Incorporated Class A † | 5,600 | 3,264,464 | |||
5,323,397 | |||||
Pharmaceuticals: 1.37% | |||||
Catalent Incorporated † | 33,600 | 3,496,752 | |||
Industrials: 14.61% | |||||
Aerospace & defense: 3.48% | |||||
HEICO Corporation | 19,100 | 2,528,840 | |||
Mercury Systems Incorporated † | 40,400 | 3,557,624 | |||
Teledyne Technologies Incorporated † | 7,200 | 2,822,256 | |||
8,908,720 | |||||
Building products: 1.48% | |||||
Trex Company Incorporated † | 45,200 | 3,784,144 | |||
Commercial services & supplies: 3.50% | |||||
Casella Waste Systems Incorporated Class A † | 79,019 | 4,895,227 | |||
IAA Incorporated † | 59,000 | 3,833,820 | |||
Tetra Tech Incorporated | 1,981 | 229,360 | |||
8,958,407 | |||||
Electrical equipment: 2.16% | |||||
Generac Holdings Incorporated † | 24,300 | 5,526,063 | |||
Professional services: 1.30% | |||||
Clarivate Analytics plc † | 111,955 | 3,326,183 | |||
Road & rail: 1.37% | |||||
Saia Incorporated † | 19,500 | 3,525,600 | |||
Trading companies & distributors: 1.32% | |||||
SiteOne Landscape Supply Incorporated † | 21,261 | 3,372,632 |
Shares | Value | ||||
Information technology: 32.92% | |||||
Electronic equipment, instruments & components: 0.98% | |||||
Novanta Incorporated † | 21,200 | $ 2,506,264 | |||
IT services: 17.79% | |||||
Black Knight Incorporated † | 54,500 | 4,815,075 | |||
Booz Allen Hamilton Holding Corporation | 12,224 | 1,065,688 | |||
EPAM Systems Incorporated † | 10,719 | 3,841,154 | |||
Euronet Worldwide Incorporated † | 22,193 | 3,216,210 | |||
Globant SA † | 20,600 | 4,482,766 | |||
MongoDB Incorporated † | 18,800 | 6,749,952 | |||
Square Incorporated Class A † | 15,900 | 3,460,476 | |||
StoneCo Limited Class A † | 81,619 | 6,849,466 | |||
Twilio Incorporated Class A † | 14,298 | 4,839,873 | |||
WEX Incorporated † | 17,100 | 3,480,363 | |||
WNS Holdings Limited ADR † | 38,100 | 2,745,105 | |||
45,546,128 | |||||
Semiconductors & semiconductor equipment: 4.16% | |||||
Lattice Semiconductor Corporation † | 79,476 | 3,641,590 | |||
MKS Instruments Incorporated | 27,300 | 4,107,285 | |||
Universal Display Corporation | 12,600 | 2,895,480 | |||
10,644,355 | |||||
Software: 9.99% | |||||
Avalara Incorporated † | 26,800 | 4,419,052 | |||
Bill.com Holdings Incorporated † | 23,766 | 3,244,059 | |||
Crowdstrike Holdings Incorporated Class A † | 21,200 | 4,490,584 | |||
Elastic NV † | 31,000 | 4,530,030 | |||
Five9 Incorporated † | 32,718 | 5,706,019 | |||
Unity Software Incorporated †« | 20,723 | 3,180,359 | |||
25,570,103 | |||||
Real estate: 1.37% | |||||
Equity REITs: 1.37% | |||||
QTS Realty Trust Incorporated Class A | 56,700 | 3,508,596 | |||
Total Common stocks (Cost $132,342,237) | 251,071,089 |
Yield | |||||
Short-term investments: 2.82% | |||||
Investment companies: 2.82% | |||||
Securities Lending Cash Investments LLC ♠∩∞ | 0.16% | 3,816,800 | 3,816,800 | ||
Wells Fargo Government Money Market Fund Select Class ♠∞ | 0.03 | 3,400,578 | 3,400,578 | ||
Total Short-term investments (Cost $7,217,378) | 7,217,378 | ||||
Total investments in securities (Cost $139,559,615) | 100.91% | 258,288,467 | |||
Other assets and liabilities, net | (0.91) | (2,334,823) | |||
Total net assets | 100.00% | $ 255,953,644 |
† | Non-income-earning security |
« | All or a portion of this security is on loan. |
♠ | The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940. |
∩ | The investment is a non-registered investment company purchased with cash collateral received from securities on loan. |
∞ | The rate represents the 7-day annualized yield at period end. |
Abbreviations: | |
ADR | American depositary receipt |
REIT | Real estate investment trust |
Value, beginning of period | Purchases | Sales proceeds | Net realized gains (losses) | Net change in unrealized gains (losses) | Value, end of period | % of net assets | Shares, end of period | Income from affiliated securities | ||||
Short-term investments | ||||||||||||
Investment companies | ||||||||||||
Securities Lending Cash Investments LLC | $4,718,549 | $58,497,580 | $(59,399,385) | $275 | $ (219) | $ 3,816,800 | 3,816,800 | $ 20,198# | ||||
Wells Fargo Government Money Market Fund Select Class | 1,560,143 | 40,678,441 | (38,838,006) | 0 | 0 | 3,400,578 | 3,400,578 | 11,252 | ||||
$275 | $(219) | $7,217,378 | 2.82% | $31,450 |
# | Amount shown represents income before fees and rebates. |
Assets | |
Investments in unaffiliated securities (including $3,657,932 of securities loaned), at value (cost $132,342,237) | $ 251,071,089 |
Investments in affiliated securites, at value (cost $7,217,378) | 7,217,378 |
Receivable for investments sold | 1,118,029 |
Receivable for Fund shares sold | 732,129 |
Receivable for dividends | 26,709 |
Receivable for securities lending income, net | 2,050 |
Prepaid expenses and other assets | 3,845 |
Total assets | 260,171,229 |
Liabilities | |
Payable upon receipt of securities loaned | 3,816,800 |
Management fee payable | 172,578 |
Payable for Fund shares redeemed | 142,188 |
Distribution fee payable | 57,526 |
Administration fee payable | 18,408 |
Trustees’ fees and expenses payable | 3,877 |
Accrued expenses and other liabilities | 6,208 |
Total liabilities | 4,217,585 |
Total net assets | $255,953,644 |
Net assets consist of | |
Paid-in capital | $ 119,462,663 |
Total distributable earnings | 136,490,981 |
Total net assets | $255,953,644 |
Computation of net asset value per share | |
Net assets – Class 2 | $ 255,953,644 |
Share outstanding – Class 21 | 5,253,003 |
Net asset value per share – Class 2 | $48.73 |
1 | The Fund has an unlimited number of authorized shares |
Investment income | |
Dividends (net of foreign withholdings taxes of $2,768) | $ 350,783 |
Securities lending income from affiliates, net | 29,009 |
Income from affiliated securities | 11,252 |
Total investment income | 391,044 |
Expenses | |
Management fee | 1,418,034 |
Administration fee – Class 2 | 151,257 |
Distribution fee – Class 2 | 471,305 |
Custody and accounting fees | 22,294 |
Professional fees | 35,515 |
Shareholder report expenses | 32,161 |
Trustees’ fees and expenses | 19,862 |
Other fees and expenses | 9,425 |
Total expenses | 2,159,853 |
Less: Fee waivers and/or expense reimbursements | |
Fund-level | (4,327) |
Net expenses | 2,155,526 |
Net investment loss | (1,764,482) |
Realized and unrealized gains (losses) on investments | |
Net realized gains on | |
Unaffiliated securities | 17,877,459 |
Affiliated securities | 275 |
Net realized gains on investments | 17,877,734 |
Net change in unrealized gains (losses) on | |
Unaffiliated securities | 82,373,246 |
Affiliated securities | (219) |
Net change in unrealized gains (losses) on investments | 82,373,027 |
Net realized and unrealized gains (losses) on investments | 100,250,761 |
Net increase in net assets resulting from operations | $ 98,486,279 |
Year ended December 31, 2020 | Year ended December 31, 2019 | |||
Operations | ||||
Net investment loss | $ (1,764,482) | $ (1,259,354) | ||
Net realized gains on investments | 17,877,734 | 17,351,306 | ||
Net change in unrealized gains (losses) on investments | 82,373,027 | 32,290,402 | ||
Net increase in net assets resulting from operations | 98,486,279 | 48,382,354 | ||
Distributions to shareholders from | ||||
Net investment income and net realized gains – Class 2 | (16,114,396) | (17,124,790) | ||
Capital share transactions | Shares | Shares | ||
Proceeds from shares sold – Class 2 | 674,102 | 24,912,455 | 988,344 | 32,962,615 |
Reinvestment of distributions – Class 2 | 468,578 | 16,114,396 | 517,835 | 17,124,790 |
Payment for shares redeemed – Class 2 | (1,018,571) | (35,934,160) | (1,190,533) | (38,661,758) |
Net increase in net assets resulting from capital share transactions | 5,092,691 | 11,425,647 | ||
Total increase in net assets | 87,464,574 | 42,683,211 | ||
Net assets | ||||
Beginning of period | 168,489,070 | 125,805,859 | ||
End of period | $255,953,644 | $168,489,070 |
Year ended December 31 | |||||
Class 2 | 2020 | 2019 | 2018 | 2017 | 2016 |
Net asset value, beginning of period | $32.85 | $26.14 | $31.74 | $25.91 | $25.99 |
Net investment loss | (0.34) | (0.25) | (0.17) | (0.20) | (0.13) |
Net realized and unrealized gains (losses) on investments | 19.54 | 10.47 | (1.39) | 7.60 | 2.00 |
Total from investment operations | 19.20 | 10.22 | (1.56) | 7.40 | 1.87 |
Distributions to shareholders from | |||||
Net realized gains | (3.32) | (3.51) | (4.04) | (1.57) | (1.95) |
Net asset value, end of period | $48.73 | $32.85 | $26.14 | $31.74 | $25.91 |
Total return1 | 62.65% | 39.02% | (7.06)% | 29.13% | 7.65% |
Ratios to average net assets (annualized) | |||||
Gross expenses | 1.14% | 1.16% | 1.16% | 1.16% | 1.18% |
Net expenses | 1.14% | 1.15% | 1.15% | 1.15% | 1.15% |
Net investment loss | (0.93)% | (0.79)% | (0.55)% | (0.68)% | (0.52)% |
Supplemental data | |||||
Portfolio turnover rate | 47% | 71% | 60% | 75% | 85% |
Net assets, end of period (000s omitted) | $255,954 | $168,489 | $125,806 | $145,175 | $119,919 |
1 | Performance figures of the Fund do not reflect fees and expenses charged pursuant to the terms of variable life insurance policies and variable annuity contracts. |
Gross unrealized gains | $118,698,991 |
Gross unrealized losses | (150,837) |
Net unrealized gains | $118,548,154 |
Paid-in capital | Total distributable earnings |
$(1,773,526) | $1,773,526 |
■ | 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) |
Quoted prices (Level 1) | Other significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | |
Assets | ||||
Investments in: | ||||
Common stocks | ||||
Communication services | $ 4,976,515 | $0 | $0 | $ 4,976,515 |
Consumer discretionary | 31,078,714 | 0 | 0 | 31,078,714 |
Financials | 4,283,730 | 0 | 0 | 4,283,730 |
Health care | 85,554,935 | 0 | 0 | 85,554,935 |
Industrials | 37,401,749 | 0 | 0 | 37,401,749 |
Information technology | 84,266,850 | 0 | 0 | 84,266,850 |
Real estate | 3,508,596 | 0 | 0 | 3,508,596 |
Short-term investments | ||||
Investment companies | 7,217,378 | 0 | 0 | 7,217,378 |
Total assets | $258,288,467 | $0 | $0 | $258,288,467 |
Average daily net assets | Management fee |
First $500 million | 0.750% |
Next $500 million | 0.700 |
Next $1 billion | 0.650 |
Next $2 billion | 0.625 |
Next $1 billion | 0.600 |
Next $5 billion | 0.590 |
Over $10 billion | 0.580 |
Counterparty | Value of securities on loan | Collateral received1 | Net amount |
Barclays Capital Inc. | $3,008,012 | $(3,008,012) | $0 |
Bank of America Securities Inc. | 649,920 | (649,920) | $0 |
Year ended December 31 | ||
2020 | 2019 | |
Ordinary income | $ 688,096 | $ 2,914,486 |
Long-term capital gain | 15,426,300 | 14,210,304 |
Undistributed long-term gain | Unrealized gains |
$17,942,827 | $118,548,154 |
Wells Fargo Variable Trust:
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 Chair, 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). Mr. Harris is a certified public accountant (inactive status). | CIGNA Corporation |
Judith M. Johnson (Born 1949) | Trustee, since 2008 | 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 (Emeritus), 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 |
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; Chair, 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. Interim President of the McKnight Foundation from January to September 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 |
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. |
Jeremy DePalma1 (Born 1974) | Treasurer, since 2012 | 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. |
Michelle Rhee (Born 1966) | Chief Legal Officer, since 2019 | Secretary of Wells Fargo Funds Management, LLC and Chief Legal Counsel of Wells Fargo Asset Management since 2018. Deputy General Counsel of Wells Fargo Bank, N.A. since 2020 and Assistant General Counsel of Wells Fargo Bank, N.A. from 2018 to 2020. 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. |
P.O. Box 219967
Kansas City, MO 64121-9967
AVT1/AR147 12-20
VT Index Asset Allocation Fund
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6 | |
10 | |
11 | |
Financial statements | |
30 | |
31 | |
32 | |
33 | |
34 | |
41 | |
42 |
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 (unhedged) 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 2021. ICE Data Indices, LLC. All rights reserved. |
President
Wells Fargo Funds
Petros N. Bocray, CFA®‡FRM
Christian L. Chan, CFA®‡
Expense ratios1 (%) | ||||||
Inception date | 1 year | 5 year | 10 year | Gross | Net 2 | |
Class 2 | 4-15-1994 | 16.59 | 10.45 | 10.96 | 1.05 | 1.00 |
Index Asset Allocation Blended Index3 | – | 15.18 | 10.89 | 11.40 | – | – |
Bloomberg Barclays U.S. Treasury Index4 | – | 8.00 | 3.77 | 3.34 | – | – |
S&P 500 Index5 | – | 18.40 | 15.22 | 13.88 | – | – |
Growth of $10,000 investment as of December 31, 20206 |
‡ | CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. |
1 | Reflects the expense ratios as stated in the most recent prospectus. 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 April 30, 2021, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 1.00% for Class 2. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses (if any), and extraordinary expenses are excluded from the expense cap. Prior to or after the commitment expiration date, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Without this cap, the Fund’s returns would have been lower. The expense ratio paid by an investor is the net expense ratio (the total annual fund operating expenses after fee waivers) as stated in the prospectus. |
3 | Source: Wells Fargo Funds Management, LLC. The Index Asset Allocation Blended Index is weighted 60% in the S&P 500 Index and 40% in the Bloomberg Barclays U.S. Treasury Index. You cannot invest directly in an index. |
4 | The Bloomberg Barclays U.S. Treasury Index is an unmanaged index of prices of U.S. Treasury bonds with maturities of 1 to 30 years. You cannot invest directly in an index. |
5 | 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. |
6 | The chart compares the performance of Class 2 shares for the most recent ten years with the Index Asset Allocation Blended Index, Bloomberg Barclays U.S. Treasury Index, and the S&P 500 Index. The chart assumes a hypothetical $10,000 investment and reflects all operating expenses of the Fund but does not reflect fees and expenses charged pursuant to the terms of variable life insurance policies and variable annuity contracts. |
7 | 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 U.S. 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. |
8 | Bloomberg Barclays 20+ Year U.S. Treasury Index is an unmanaged index composed of securities in the U.S. Treasury Index with maturities of 20 years or greater. You cannot invest directly in an index. |
9 | Figures represent the percentage of the Fund's net assets. Holdings are subject to change and may have changed since the date specified. |
10 | Figures represent the percentage of the Fund's long-term investments. These amounts are subject to change and may have changed since the date specified. |
11 | Effective allocation includes the effect of any tactical futures overlay that may be in place. Effective cash, if any, represents the net offset to such future positions. The amounts are subject to change and may have changed since the date specified. |
■ | The Fund outperformed its benchmark, the Index Asset Allocation Blended Index, for the 12-month period that ended December 31, 2020. |
■ | The Fund’s tactical asset allocation overlay, which is implemented with liquid futures contracts, contributed to performance during the period. |
■ | The Fund’s stock allocation performed in line with its respective benchmark, the S&P 500 Index, while the Fund’s bond allocation outperformed its respective benchmark, the Bloomberg Barclays U.S. Treasury Index. |
Ten largest holdings (%) as of December 31, 20209 | |
Apple Incorporated | 4.02 |
Microsoft Corporation | 3.19 |
Amazon.com Incorporated | 2.63 |
Facebook Incorporated Class A | 1.24 |
Tesla Motors Incorporated | 1.03 |
Alphabet Incorporated Class A | 1.00 |
Alphabet Incorporated Class C | 0.97 |
Berkshire Hathaway Incorporated Class B | 0.86 |
Johnson & Johnson | 0.79 |
JPMorgan Chase & Company | 0.74 |
Sector distribution as of December 31, 202010 |
Allocation (%) as of December 31, 2020 | ||
Neutral allocation | Effective allocation11 | |
Stocks | 60 | 65 |
Bonds | 40 | 52 |
Effective cash | 0 | (17) |
Beginning account value 7-1-2020 | Ending account value 12-31-2020 | Expenses paid during the period1 | Annualized net expense ratio | |
Class 2 | ||||
Actual | $1,000.00 | $1,128.96 | $5.35 | 1.00% |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.11 | $5.08 | 1.00% |
Shares | Value | ||||
Common stocks: 60.19% | |||||
Communication services: 6.47% | |||||
Diversified telecommunication services: 0.87% | |||||
AT&T Incorporated | 10,682 | 307,214 | |||
CenturyLink Incorporated | 1,476 | 14,391 | |||
Verizon Communications Incorporated | 6,198 | 364,133 | |||
685,738 | |||||
Entertainment: 1.36% | |||||
Activision Blizzard Incorporated | 1,154 | 107,149 | |||
Electronic Arts Incorporated | 434 | 62,322 | |||
Live Nation Entertainment Incorporated † | 213 | 15,651 | |||
Netflix Incorporated † | 661 | 357,423 | |||
Take-Two Interactive Software Incorporated † | 171 | 35,532 | |||
The Walt Disney Company | 2,711 | 491,179 | |||
1,069,256 | |||||
Interactive media & services: 3.29% | |||||
Alphabet Incorporated Class A † | 450 | 788,688 | |||
Alphabet Incorporated Class C † | 435 | 762,068 | |||
Facebook Incorporated Class A † | 3,586 | 979,552 | |||
Twitter Incorporated † | 1,191 | 64,493 | |||
2,594,801 | |||||
Media: 0.80% | |||||
Charter Communications Incorporated Class A † | 218 | 144,218 | |||
Comcast Corporation Class A | 6,832 | 357,997 | |||
Discovery Incorporated Class A † | 240 | 7,222 | |||
Discovery Incorporated Class C † | 441 | 11,550 | |||
DISH Network Corporation Class A † | 367 | 11,869 | |||
Fox Corporation Class A | 504 | 14,676 | |||
Fox Corporation Class B | 231 | 6,671 | |||
Interpublic Group of Companies Incorporated | 582 | 13,689 | |||
News Corporation Class A | 584 | 10,494 | |||
News Corporation Class B | 182 | 3,234 | |||
Omnicom Group Incorporated | 322 | 20,083 | |||
ViacomCBS Incorporated Class B | 847 | 31,559 | |||
633,262 | |||||
Wireless telecommunication services: 0.15% | |||||
T-Mobile US Incorporated † | 874 | 117,859 | |||
Consumer discretionary: 7.66% | |||||
Auto components: 0.09% | |||||
Aptiv plc | 406 | 52,898 | |||
BorgWarner Incorporated | 367 | 14,181 | |||
67,079 | |||||
Automobiles: 1.20% | |||||
Ford Motor Company | 5,863 | 51,536 | |||
General Motors Company | 1,886 | 78,533 | |||
Tesla Motors Incorporated † | 1,155 | 815,049 | |||
945,118 |
Shares | Value | ||||
Distributors: 0.07% | |||||
Genuine Parts Company | 215 | $ 21,592 | |||
LKQ Corporation † | 420 | 14,801 | |||
Pool Corporation | 60 | 22,350 | |||
58,743 | |||||
Hotels, restaurants & leisure: 1.02% | |||||
Carnival Corporation | 1,116 | 24,173 | |||
Chipotle Mexican Grill Incorporated † | 42 | 58,242 | |||
Darden Restaurants Incorporated | 194 | 23,109 | |||
Domino's Pizza Incorporated | 59 | 22,624 | |||
Hilton Worldwide Holdings Incorporated | 416 | 46,284 | |||
Las Vegas Sands Corporation | 491 | 29,264 | |||
Marriott International Incorporated Class A | 398 | 52,504 | |||
McDonald's Corporation | 1,115 | 239,257 | |||
MGM Resorts International | 614 | 19,347 | |||
Norwegian Cruise Line Holdings Limited † | 472 | 12,003 | |||
Royal Caribbean Cruises Limited | 281 | 20,988 | |||
Starbucks Corporation | 1,758 | 188,071 | |||
Wynn Resorts Limited | 144 | 16,248 | |||
Yum! Brands Incorporated | 451 | 48,961 | |||
801,075 | |||||
Household durables: 0.23% | |||||
D.R. Horton Incorporated | 495 | 34,115 | |||
Garmin Limited | 223 | 26,684 | |||
Leggett & Platt Incorporated | 199 | 8,816 | |||
Lennar Corporation Class A | 410 | 31,254 | |||
Mohawk Industries Incorporated † | 89 | 12,545 | |||
Newell Rubbermaid Incorporated | 567 | 12,037 | |||
NVR Incorporated † | 5 | 20,399 | |||
Pulte Group Incorporated | 400 | 17,248 | |||
Whirlpool Corporation | 93 | 16,786 | |||
179,884 | |||||
Internet & direct marketing retail: 2.94% | |||||
Amazon.com Incorporated † | 636 | 2,071,407 | |||
Booking Holdings Incorporated † | 61 | 135,863 | |||
eBay Incorporated | 974 | 48,944 | |||
Etsy Incorporated † | 191 | 33,981 | |||
Expedia Group Incorporated | 203 | 26,877 | |||
2,317,072 | |||||
Leisure products: 0.02% | |||||
Hasbro Incorporated | 191 | 17,866 | |||
Multiline retail: 0.31% | |||||
Dollar General Corporation | 366 | 76,970 | |||
Dollar Tree Incorporated † | 351 | 37,922 | |||
Target Corporation | 751 | 132,574 | |||
247,466 | |||||
Specialty retail: 1.33% | |||||
Advance Auto Parts Incorporated | 100 | 15,751 | |||
AutoZone Incorporated † | 35 | 41,490 | |||
Best Buy Company Incorporated | 344 | 34,328 |
Shares | Value | ||||
Specialty retail (continued) | |||||
CarMax Incorporated † | 247 | $ 23,332 | |||
L Brands Incorporated | 349 | 12,979 | |||
Lowe's Companies Incorporated | 1,097 | 176,079 | |||
O'Reilly Automotive Incorporated † | 108 | 48,878 | |||
Ross Stores Incorporated | 533 | 65,458 | |||
The Gap Incorporated | 308 | 6,219 | |||
The Home Depot Incorporated | 1,613 | 428,445 | |||
The TJX Companies Incorporated | 1,799 | 122,854 | |||
Tiffany & Company | 161 | 21,163 | |||
Tractor Supply Company | 174 | 24,461 | |||
Ulta Beauty Incorporated † | 85 | 24,409 | |||
1,045,846 | |||||
Textiles, apparel & luxury goods: 0.45% | |||||
HanesBrands Incorporated | 523 | 7,625 | |||
Nike Incorporated Class B | 1,885 | 266,671 | |||
PVH Corporation | 105 | 9,858 | |||
Ralph Lauren Corporation | 71 | 7,366 | |||
Tapestry Incorporated | 418 | 12,991 | |||
Under Armour Incorporated Class A † | 286 | 4,911 | |||
Under Armour Incorporated Class C † | 294 | 4,375 | |||
VF Corporation | 480 | 40,997 | |||
354,794 | |||||
Consumer staples: 3.92% | |||||
Beverages: 0.97% | |||||
Brown-Forman Corporation Class B | 273 | 21,684 | |||
Constellation Brands Incorporated Class A | 253 | 55,420 | |||
Molson Coors Brewing Company Class B | 282 | 12,744 | |||
Monster Beverage Corporation † | 554 | 51,234 | |||
PepsiCo Incorporated | 2,072 | 307,278 | |||
The Coca-Cola Company | 5,803 | 318,237 | |||
766,597 | |||||
Food & staples retailing: 0.87% | |||||
Costco Wholesale Corporation | 663 | 249,805 | |||
Sysco Corporation | 765 | 56,809 | |||
The Kroger Company | 1,158 | 36,778 | |||
Walgreens Boots Alliance Incorporated | 1,076 | 42,911 | |||
Walmart Incorporated | 2,078 | 299,544 | |||
685,847 | |||||
Food products: 0.60% | |||||
Archer Daniels Midland Company | 835 | 42,092 | |||
Campbell Soup Company | 302 | 14,602 | |||
ConAgra Foods Incorporated | 731 | 26,506 | |||
General Mills Incorporated | 914 | 53,743 | |||
Hormel Foods Corporation | 420 | 19,576 | |||
Kellogg Company | 381 | 23,710 | |||
Lamb Weston Holdings Incorporated | 219 | 17,244 | |||
McCormick & Company Incorporated | 372 | 35,563 | |||
Mondelez International Incorporated Class A | 2,143 | 125,301 | |||
The Hershey Company | 220 | 33,513 | |||
The J.M. Smucker Company | 170 | 19,652 |
Shares | Value | ||||
Food products (continued) | |||||
The Kraft Heinz Company | 968 | $ 33,551 | |||
Tyson Foods Incorporated Class A | 440 | 28,354 | |||
473,407 | |||||
Household products: 0.97% | |||||
Church & Dwight Company Incorporated | 371 | 32,362 | |||
Colgate-Palmolive Company | 1,285 | 109,880 | |||
Kimberly-Clark Corporation | 509 | 68,628 | |||
The Clorox Company | 188 | 37,961 | |||
The Procter & Gamble Company | 3,716 | 517,044 | |||
765,875 | |||||
Personal products: 0.12% | |||||
The Estee Lauder Companies Incorporated Class A | 339 | 90,238 | |||
Tobacco: 0.39% | |||||
Altria Group Incorporated | 2,790 | 114,390 | |||
Philip Morris International Incorporated | 2,333 | 193,149 | |||
307,539 | |||||
Energy: 1.38% | |||||
Energy equipment & services: 0.14% | |||||
Baker Hughes Incorporated | 1,031 | 21,496 | |||
Halliburton Company | 1,333 | 25,194 | |||
NOV Incorporated | 585 | 8,032 | |||
Schlumberger Limited | 2,100 | 45,843 | |||
TechnipFMC plc | 631 | 5,931 | |||
106,496 | |||||
Oil, gas & consumable fuels: 1.24% | |||||
Apache Corporation | 568 | 8,060 | |||
Cabot Oil & Gas Corporation | 598 | 9,735 | |||
Chevron Corporation | 2,883 | 243,469 | |||
Concho Resources Incorporated | 295 | 17,213 | |||
ConocoPhillips | 1,612 | 64,464 | |||
Devon Energy Corporation | 578 | 9,138 | |||
Diamondback Energy Incorporated | 239 | 11,568 | |||
EOG Resources Incorporated | 882 | 43,985 | |||
Exxon Mobil Corporation | 6,318 | 260,428 | |||
Hess Corporation | 412 | 21,749 | |||
HollyFrontier Corporation | 223 | 5,765 | |||
Kinder Morgan Incorporated | 2,909 | 39,766 | |||
Marathon Oil Corporation | 1,190 | 7,937 | |||
Marathon Petroleum Corporation | 977 | 40,409 | |||
Occidental Petroleum Corporation | 1,264 | 21,880 | |||
ONEOK Incorporated | 665 | 25,523 | |||
Phillips 66 | 658 | 46,021 | |||
Pioneer Natural Resources Company | 247 | 28,131 | |||
The Williams Companies Incorporated | 1,813 | 36,351 | |||
Valero Energy Corporation | 614 | 34,734 | |||
976,326 |
Shares | Value | ||||
Financials: 6.29% | |||||
Banks: 2.33% | |||||
Bank of America Corporation | 11,406 | $ 345,716 | |||
Citigroup Incorporated | 3,122 | 192,503 | |||
Citizens Financial Group Incorporated | 643 | 22,994 | |||
Comerica Incorporated | 208 | 11,619 | |||
Fifth Third Bancorp | 1,069 | 29,472 | |||
First Republic Bank | 261 | 38,349 | |||
Huntington Bancshares Incorporated | 1,531 | 19,337 | |||
JPMorgan Chase & Company | 4,572 | 580,964 | |||
KeyCorp | 1,468 | 24,090 | |||
M&T Bank Corporation | 192 | 24,442 | |||
People's United Financial Incorporated | 639 | 8,262 | |||
PNC Financial Services Group Incorporated | 636 | 94,764 | |||
Regions Financial Corporation | 1,441 | 23,229 | |||
SVB Financial Group † | 78 | 30,251 | |||
Truist Financial Corporation | 2,025 | 97,058 | |||
US Bancorp | 2,058 | 95,882 | |||
Wells Fargo & Company ♠ | 6,199 | 187,086 | |||
Zions Bancorporation | 245 | 10,643 | |||
1,836,661 | |||||
Capital markets: 1.66% | |||||
Ameriprise Financial Incorporated | 176 | 34,202 | |||
Bank of New York Mellon Corporation | 1,222 | 51,862 | |||
BlackRock Incorporated | 212 | 152,966 | |||
Cboe Global Markets Incorporated | 161 | 14,992 | |||
CME Group Incorporated | 536 | 97,579 | |||
Franklin Resources Incorporated | 408 | 10,196 | |||
Intercontinental Exchange Incorporated | 842 | 97,074 | |||
Invesco Limited | 566 | 9,865 | |||
MarketAxess Holdings Incorporated | 56 | 31,951 | |||
Moody's Corporation | 243 | 70,528 | |||
Morgan Stanley | 2,142 | 146,791 | |||
MSCI Incorporated | 125 | 55,816 | |||
Northern Trust Corporation | 311 | 28,967 | |||
Raymond James Financial Incorporated | 182 | 17,412 | |||
S&P Global Incorporated | 362 | 119,000 | |||
State Street Corporation | 528 | 38,428 | |||
T. Rowe Price Group Incorporated | 338 | 51,170 | |||
The Charles Schwab Corporation | 2,233 | 118,438 | |||
The Goldman Sachs Group Incorporated | 517 | 136,338 | |||
The NASDAQ OMX Group Incorporated | 172 | 22,831 | |||
1,306,406 | |||||
Consumer finance: 0.33% | |||||
American Express Company | 978 | 118,250 | |||
Capital One Financial Corporation | 688 | 68,009 | |||
Discover Financial Services | 459 | 41,553 | |||
Synchrony Financial | 813 | 28,219 | |||
256,031 | |||||
Diversified financial services: 0.86% | |||||
Berkshire Hathaway Incorporated Class B † | 2,920 | 677,060 |
Shares | Value | ||||
Insurance: 1.11% | |||||
AFLAC Incorporated | 977 | $ 43,447 | |||
American International Group Incorporated | 1,291 | 48,877 | |||
Aon plc Class A | 341 | 72,043 | |||
Arthur J. Gallagher & Company | 288 | 35,628 | |||
Assurant Incorporated | 88 | 11,987 | |||
Chubb Limited | 676 | 104,050 | |||
Cincinnati Financial Corporation | 224 | 19,571 | |||
Everest Reinsurance Group Limited | 60 | 14,045 | |||
Globe Life Incorporated | 144 | 13,674 | |||
Lincoln National Corporation | 272 | 13,684 | |||
Loews Corporation | 350 | 15,757 | |||
Marsh & McLennan Companies Incorporated | 760 | 88,920 | |||
MetLife Incorporated | 1,145 | 53,758 | |||
Principal Financial Group Incorporated | 383 | 19,001 | |||
Progressive Corporation | 876 | 86,619 | |||
Prudential Financial Incorporated | 594 | 46,374 | |||
The Allstate Corporation | 455 | 50,018 | |||
The Hartford Financial Services Group Incorporated | 536 | 26,253 | |||
The Travelers Companies Incorporated | 379 | 53,200 | |||
UnumProvident Corporation | 305 | 6,997 | |||
W.R. Berkley Corporation | 210 | 13,948 | |||
Willis Towers Watson plc | 192 | 40,451 | |||
878,302 | |||||
Health care: 8.10% | |||||
Biotechnology: 1.13% | |||||
AbbVie Incorporated | 2,642 | 283,090 | |||
Alexion Pharmaceuticals Incorporated † | 327 | 51,090 | |||
Amgen Incorporated | 871 | 200,260 | |||
Biogen Incorporated † | 230 | 56,318 | |||
Gilead Sciences Incorporated | 1,878 | 109,412 | |||
Incyte Corporation † | 278 | 24,180 | |||
Regeneron Pharmaceuticals Incorporated † | 156 | 75,365 | |||
Vertex Pharmaceuticals Incorporated † | 388 | 91,700 | |||
891,415 | |||||
Health care equipment & supplies: 2.29% | |||||
Abbott Laboratories | 2,660 | 291,243 | |||
ABIOMED Incorporated † | 68 | 22,046 | |||
Align Technology Incorporated † | 108 | 57,713 | |||
Baxter International Incorporated | 765 | 61,384 | |||
Becton Dickinson & Company | 434 | 108,595 | |||
Boston Scientific Corporation † | 2,147 | 77,185 | |||
Danaher Corporation | 946 | 210,144 | |||
Dentsply Sirona Incorporated | 327 | 17,122 | |||
DexCom Incorporated † | 145 | 53,609 | |||
Edwards Lifesciences Corporation † | 933 | 85,118 | |||
Hologic Incorporated † | 385 | 28,040 | |||
IDEXX Laboratories Incorporated † | 128 | 63,983 | |||
Intuitive Surgical Incorporated † | 177 | 144,804 | |||
Medtronic plc | 2,018 | 236,389 | |||
ResMed Incorporated | 216 | 45,913 | |||
STERIS plc | 127 | 24,072 | |||
Stryker Corporation | 491 | 120,315 |
Shares | Value | ||||
Health care equipment & supplies (continued) | |||||
Teleflex Incorporated | 70 | $ 28,810 | |||
The Cooper Companies Incorporated | 74 | 26,886 | |||
Varian Medical Systems Incorporated † | 136 | 23,801 | |||
West Pharmaceutical Services Incorporated | 111 | 31,447 | |||
Zimmer Biomet Holdings Incorporated | 310 | 47,768 | |||
1,806,387 | |||||
Health care providers & services: 1.58% | |||||
AmerisourceBergen Corporation | 220 | 21,507 | |||
Anthem Incorporated | 373 | 119,767 | |||
Cardinal Health Incorporated | 440 | 23,566 | |||
Centene Corporation † | 868 | 52,106 | |||
Cigna Corporation | 540 | 112,417 | |||
CVS Health Corporation | 1,966 | 134,278 | |||
DaVita HealthCare Partners Incorporated † | 109 | 12,797 | |||
HCA Healthcare Incorporated | 394 | 64,797 | |||
Henry Schein Incorporated † | 213 | 14,241 | |||
Humana Incorporated | 198 | 81,233 | |||
Laboratory Corporation of America Holdings † | 146 | 29,718 | |||
McKesson Corporation | 240 | 41,741 | |||
Quest Diagnostics Incorporated | 201 | 23,953 | |||
UnitedHealth Group Incorporated | 1,420 | 497,966 | |||
Universal Health Services Incorporated Class B | 117 | 16,088 | |||
1,246,175 | |||||
Health care technology: 0.05% | |||||
Cerner Corporation | 458 | 35,944 | |||
Life sciences tools & services: 0.72% | |||||
Agilent Technologies Incorporated | 457 | 54,150 | |||
Bio-Rad Laboratories Incorporated Class A † | 32 | 18,654 | |||
Illumina Incorporated † | 219 | 81,030 | |||
IQVIA Holdings Incorporated † | 287 | 51,422 | |||
Mettler-Toledo International Incorporated † | 36 | 41,028 | |||
PerkinElmer Incorporated | 167 | 23,965 | |||
Thermo Fisher Scientific Incorporated | 593 | 276,208 | |||
Waters Corporation † | 92 | 22,763 | |||
569,220 | |||||
Pharmaceuticals: 2.33% | |||||
Bristol-Myers Squibb Company | 3,397 | 210,716 | |||
Catalent Incorporated † | 246 | 25,601 | |||
Eli Lilly & Company | 1,190 | 200,920 | |||
Johnson & Johnson | 3,955 | 622,438 | |||
Merck & Company Incorporated | 3,781 | 309,286 | |||
Perrigo Company plc | 203 | 9,078 | |||
Pfizer Incorporated | 8,301 | 305,560 | |||
Viatris Incorporated † | 1,829 | 34,275 | |||
Zoetis Incorporated | 713 | 118,002 | |||
1,835,876 | |||||
Industrials: 5.06% | |||||
Aerospace & defense: 0.97% | |||||
General Dynamics Corporation | 348 | 51,789 | |||
Howmet Aerospace Incorporated | 583 | 16,639 |
Shares | Value | ||||
Aerospace & defense (continued) | |||||
Huntington Ingalls Industries Incorporated | 61 | $ 10,399 | |||
L3Harris Technologies Incorporated | 314 | 59,352 | |||
Lockheed Martin Corporation | 369 | 130,988 | |||
Northrop Grumman Corporation | 233 | 71,000 | |||
Raytheon Technologies Corporation | 2,280 | 163,043 | |||
Teledyne Technologies Incorporated † | 55 | 21,559 | |||
Textron Incorporated | 343 | 16,577 | |||
The Boeing Company | 795 | 170,178 | |||
TransDigm Group Incorporated | 82 | 50,746 | |||
762,270 | |||||
Air freight & logistics: 0.40% | |||||
C.H. Robinson Worldwide Incorporated | 202 | 18,962 | |||
Expeditors International of Washington Incorporated | 253 | 24,063 | |||
FedEx Corporation | 363 | 94,242 | |||
United Parcel Service Incorporated Class B | 1,067 | 179,683 | |||
316,950 | |||||
Airlines: 0.16% | |||||
Alaska Air Group Incorporated | 186 | 9,672 | |||
American Airlines Group Incorporated | 924 | 14,571 | |||
Delta Air Lines Incorporated | 958 | 38,521 | |||
Southwest Airlines Company | 882 | 41,110 | |||
United Airlines Holdings Incorporated † | 441 | 19,073 | |||
122,947 | |||||
Building products: 0.27% | |||||
A.O. Smith Corporation | 202 | 11,074 | |||
Allegion plc | 138 | 16,060 | |||
Carrier Global Corporation | 1,229 | 46,358 | |||
Fortune Brands Home & Security Incorporated | 207 | 17,744 | |||
Johnson Controls International plc | 1,084 | 50,504 | |||
Masco Corporation | 391 | 21,478 | |||
Trane Technologies plc | 360 | 52,258 | |||
215,476 | |||||
Commercial services & supplies: 0.25% | |||||
Cintas Corporation | 132 | 46,657 | |||
Copart Incorporated † | 309 | 39,320 | |||
Republic Services Incorporated | 315 | 30,335 | |||
Rollins Incorporated | 331 | 12,932 | |||
Waste Management Incorporated | 583 | 68,753 | |||
197,997 | |||||
Construction & engineering: 0.05% | |||||
Jacobs Engineering Group Incorporated | 193 | 21,029 | |||
Quanta Services Incorporated | 207 | 14,908 | |||
35,937 | |||||
Electrical equipment: 0.29% | |||||
AMETEK Incorporated | 344 | 41,603 | |||
Eaton Corporation plc | 598 | 71,844 |
Shares | Value | ||||
Electrical equipment (continued) | |||||
Emerson Electric Company | 897 | $ 72,092 | |||
Rockwell Automation Incorporated | 175 | 43,892 | |||
229,431 | |||||
Industrial conglomerates: 0.74% | |||||
3M Company | 865 | 151,193 | |||
General Electric Company | 13,111 | 141,599 | |||
Honeywell International Incorporated | 1,053 | 223,973 | |||
Roper Technologies Incorporated | 157 | 67,681 | |||
584,446 | |||||
Machinery: 1.00% | |||||
Caterpillar Incorporated | 813 | 147,982 | |||
Cummins Incorporated | 222 | 50,416 | |||
Deere & Company | 470 | 126,454 | |||
Dover Corporation | 215 | 27,144 | |||
Flowserve Corporation | 194 | 7,149 | |||
Fortive Corporation | 506 | 35,835 | |||
IDEX Corporation | 113 | 22,510 | |||
Illinois Tool Works Incorporated | 432 | 88,076 | |||
Ingersoll Rand Incorporated † | 558 | 25,422 | |||
Otis Worldwide Corporation | 611 | 41,273 | |||
PACCAR Incorporated | 520 | 44,866 | |||
Parker-Hannifin Corporation | 193 | �� 52,575 | |||
Pentair plc | 249 | 13,219 | |||
Snap-on Incorporated | 81 | 13,862 | |||
Stanley Black & Decker Incorporated | 240 | 42,854 | |||
Wabtec Corporation | 267 | 19,544 | |||
Xylem Incorporated | 270 | 27,483 | |||
786,664 | |||||
Professional services: 0.20% | |||||
Equifax Incorporated | 182 | 35,097 | |||
IHS Markit Limited | 560 | 50,305 | |||
Nielsen Holdings plc | 533 | 11,124 | |||
Robert Half International Incorporated | 170 | 10,622 | |||
Verisk Analytics Incorporated | 242 | 50,237 | |||
157,385 | |||||
Road & rail: 0.61% | |||||
CSX Corporation | 1,149 | 104,272 | |||
J.B. Hunt Transport Services Incorporated | 124 | 16,945 | |||
Kansas City Southern | 140 | 28,578 | |||
Norfolk Southern Corporation | 381 | 90,529 | |||
Old Dominion Freight Line Incorporated | 144 | 28,106 | |||
Union Pacific Corporation | 1,011 | 210,510 | |||
478,940 | |||||
Trading companies & distributors: 0.12% | |||||
Fastenal Company | 859 | 41,945 | |||
United Rentals Incorporated † | 108 | 25,046 | |||
W.W. Grainger Incorporated | 68 | 27,767 | |||
94,758 |
Shares | Value | ||||
Information technology: 16.61% | |||||
Communications equipment: 0.48% | |||||
Arista Networks Incorporated † | 82 | $ 23,827 | |||
Cisco Systems Incorporated | 6,324 | 282,999 | |||
F5 Networks Incorporated † | 92 | 16,186 | |||
Juniper Networks Incorporated | 494 | 11,120 | |||
Motorola Solutions Incorporated | 253 | 43,025 | |||
377,157 | |||||
Electronic equipment, instruments & components: 0.36% | |||||
Amphenol Corporation Class A | 448 | 58,585 | |||
CDW Corporation of Delaware | 214 | 28,203 | |||
Corning Incorporated | 1,145 | 41,220 | |||
FLIR Systems Incorporated | 195 | 8,547 | |||
IPG Photonics Corporation † | 53 | 11,861 | |||
Keysight Technologies Incorporated † | 277 | 36,589 | |||
TE Connectivity Limited | 496 | 60,051 | |||
Vontier Corporation † | 201 | 6,713 | |||
Zebra Technologies Corporation Class A † | 80 | 30,746 | |||
282,515 | |||||
IT services: 3.31% | |||||
Accenture plc Class A | 949 | 247,888 | |||
Akamai Technologies Incorporated † | 243 | 25,513 | |||
Automatic Data Processing Incorporated | 642 | 113,120 | |||
Broadridge Financial Solutions Incorporated | 173 | 26,504 | |||
Cognizant Technology Solutions Corporation Class A | 801 | 65,642 | |||
DXC Technology Company | 380 | 9,785 | |||
Fidelity National Information Services Incorporated | 927 | 131,133 | |||
Fiserv Incorporated † | 862 | 98,147 | |||
FleetCor Technologies Incorporated † | 125 | 34,104 | |||
Gartner Incorporated † | 133 | 21,305 | |||
Global Payments Incorporated | 447 | 96,293 | |||
International Business Machines Corporation | 1,337 | 168,302 | |||
Jack Henry & Associates Incorporated | 113 | 18,305 | |||
Leidos Holdings Incorporated | 199 | 20,919 | |||
MasterCard Incorporated Class A | 1,324 | 472,589 | |||
Paychex Incorporated | 479 | 44,633 | |||
PayPal Holdings Incorporated † | 1,758 | 411,724 | |||
The Western Union Company | 616 | 13,515 | |||
VeriSign Incorporated † | 150 | 32,460 | |||
Visa Incorporated Class A | 2,540 | 555,574 | |||
2,607,455 | |||||
Semiconductors & semiconductor equipment: 3.09% | |||||
Advanced Micro Devices Incorporated † | 1,815 | 166,454 | |||
Analog Devices Incorporated | 554 | 81,842 | |||
Applied Materials Incorporated | 1,371 | 118,317 | |||
Broadcom Incorporated | 607 | 265,775 | |||
Intel Corporation | 6,145 | 306,144 | |||
KLA Corporation | 232 | 60,067 | |||
Lam Research Corporation | 216 | 102,010 | |||
Maxim Integrated Products Incorporated | 400 | 35,460 | |||
Microchip Technology Incorporated | 390 | 53,863 | |||
Micron Technology Incorporated † | 1,671 | 125,626 | |||
NVIDIA Corporation | 934 | 487,735 |
Shares | Value | ||||
Semiconductors & semiconductor equipment (continued) | |||||
Qorvo Incorporated † | 171 | $ 28,432 | |||
QUALCOMM Incorporated | 1,693 | 257,912 | |||
Skyworks Solutions Incorporated | 248 | 37,914 | |||
Teradyne Incorporated | 248 | 29,733 | |||
Texas Instruments Incorporated | 1,377 | 226,007 | |||
Xilinx Incorporated | 367 | 52,030 | |||
2,435,321 | |||||
Software: 5.16% | |||||
Adobe Incorporated † | 719 | 359,586 | |||
ANSYS Incorporated † | 129 | 46,930 | |||
Autodesk Incorporated † | 330 | 100,762 | |||
Cadence Design Systems Incorporated † | 418 | 57,028 | |||
Citrix Systems Incorporated | 184 | 23,938 | |||
Fortinet Incorporated † | 200 | 29,706 | |||
Intuit Incorporated | 392 | 148,901 | |||
Microsoft Corporation | 11,310 | 2,515,570 | |||
NortonLifeLock Incorporated | 885 | 18,390 | |||
Oracle Corporation | 2,838 | 183,590 | |||
Paycom Software Incorporated † | 73 | 33,014 | |||
Salesforce.com Incorporated † | 1,372 | 305,311 | |||
ServiceNow Incorporated † | 292 | 160,726 | |||
Synopsys Incorporated † | 229 | 59,366 | |||
Tyler Technologies Incorporated † | 60 | 26,191 | |||
4,069,009 | |||||
Technology hardware, storage & peripherals: 4.21% | |||||
Apple Incorporated | 23,883 | 3,169,032 | |||
Hewlett Packard Enterprise Company | 1,925 | 22,811 | |||
HP Incorporated | 2,051 | 50,434 | |||
NetApp Incorporated | 333 | 22,058 | |||
Seagate Technology plc | 334 | 20,761 | |||
Western Digital Corporation | 454 | 25,147 | |||
Xerox Holdings Corporation | 248 | 5,751 | |||
3,315,994 | |||||
Materials: 1.58% | |||||
Chemicals: 1.10% | |||||
Air Products & Chemicals Incorporated | 332 | 90,709 | |||
Albemarle Corporation | 158 | 23,308 | |||
Celanese Corporation Series A | 175 | 22,740 | |||
CF Industries Holdings Incorporated | 320 | 12,387 | |||
Corteva Incorporated | 1,119 | 43,328 | |||
Dow Incorporated | 1,114 | 61,827 | |||
DuPont de Nemours Incorporated | 1,105 | 78,577 | |||
Eastman Chemical Company | 202 | 20,257 | |||
Ecolab Incorporated | 371 | 80,270 | |||
FMC Corporation | 194 | 22,296 | |||
International Flavors & Fragrances Incorporated « | 160 | 17,414 | |||
Linde plc | 788 | 207,646 | |||
LyondellBasell Industries NV Class A | 385 | 35,289 | |||
PPG Industries Incorporated | 353 | 50,910 |
Shares | Value | ||||
Chemicals (continued) | |||||
The Mosaic Company | 518 | $ 11,919 | |||
The Sherwin-Williams Company | 122 | 89,659 | |||
868,536 | |||||
Construction materials: 0.07% | |||||
Martin Marietta Materials Incorporated | 94 | 26,693 | |||
Vulcan Materials Company | 198 | 29,365 | |||
56,058 | |||||
Containers & packaging: 0.21% | |||||
Amcor plc | 2,355 | 27,718 | |||
Avery Dennison Corporation | 125 | 19,389 | |||
Ball Corporation | 489 | 45,565 | |||
International Paper Company | 589 | 29,285 | |||
Packaging Corporation of America | 142 | 19,583 | |||
Sealed Air Corporation | 232 | 10,623 | |||
WestRock Company | 393 | 17,107 | |||
169,270 | |||||
Metals & mining: 0.20% | |||||
Freeport-McMoRan Incorporated | 2,193 | 57,062 | |||
Newmont Corporation | 1,210 | 72,467 | |||
Nucor Corporation | 453 | 24,095 | |||
153,624 | |||||
Real estate: 1.46% | |||||
Equity REITs: 1.42% | |||||
Alexandria Real Estate Equities Incorporated | 185 | 32,971 | |||
American Tower Corporation | 667 | 149,715 | |||
AvalonBay Communities Incorporated | 208 | 33,369 | |||
Boston Properties Incorporated | 212 | 20,040 | |||
Crown Castle International Corporation | 647 | 102,996 | |||
Digital Realty Trust Incorporated | 419 | 58,455 | |||
Duke Realty Corporation | 556 | 22,223 | |||
Equinix Incorporated | 133 | 94,986 | |||
Equity Residential | 514 | 30,470 | |||
Essex Property Trust Incorporated | 98 | 23,267 | |||
Extra Space Storage Incorporated | 193 | 22,361 | |||
Federal Realty Investment Trust | 102 | 8,682 | |||
Healthpeak Properties Incorporated | 804 | 24,305 | |||
Host Hotels & Resorts Incorporated | 1,055 | 15,435 | |||
Iron Mountain Incorporated | 432 | 12,735 | |||
Kimco Realty Corporation | 649 | 9,741 | |||
Mid-America Apartment Communities Incorporated | 171 | 21,664 | |||
Prologis Incorporated | 1,110 | 110,623 | |||
Public Storage Incorporated | 228 | 52,652 | |||
Realty Income Corporation | 526 | 32,701 | |||
Regency Centers Corporation | 235 | 10,714 | |||
SBA Communications Corporation | 167 | 47,116 | |||
Simon Property Group Incorporated | 489 | 41,702 | |||
SL Green Realty Corporation | 107 | 6,375 | |||
UDR Incorporated | 441 | 16,948 | |||
Ventas Incorporated | 560 | 27,462 | |||
Vornado Realty Trust | 235 | 8,775 |
Shares | Value | ||||
Equity REITs (continued) | |||||
Welltower Incorporated | 624 | $ 40,323 | |||
Weyerhaeuser Company | 1,119 | 37,520 | |||
1,116,326 | |||||
Real estate management & development: 0.04% | |||||
CBRE Group Incorporated Class A † | 502 | 31,485 | |||
Utilities: 1.66% | |||||
Electric utilities: 1.06% | |||||
Alliant Energy Corporation | 374 | 19,272 | |||
American Electric Power Company Incorporated | 745 | 62,036 | |||
Duke Energy Corporation | 1,103 | 100,991 | |||
Edison International | 567 | 35,619 | |||
Entergy Corporation | 300 | 29,952 | |||
Evergy Incorporated | 340 | 18,873 | |||
Eversource Energy | 514 | 44,466 | |||
Exelon Corporation | 1,461 | 61,683 | |||
FirstEnergy Corporation | 816 | 24,978 | |||
NextEra Energy Incorporated | 2,939 | 226,744 | |||
NRG Energy Incorporated | 365 | 13,706 | |||
Pinnacle West Capital Corporation | 168 | 13,432 | |||
PPL Corporation | 1,154 | 32,543 | |||
The Southern Company | 1,585 | 97,367 | |||
Xcel Energy Incorporated | 788 | 52,536 | |||
834,198 | |||||
Gas utilities: 0.02% | |||||
Atmos Energy Corporation | 188 | 17,941 | |||
Independent power & renewable electricity producers: 0.03% | |||||
AES Corporation | 997 | 23,430 | |||
Multi-utilities: 0.50% | |||||
Ameren Corporation | 370 | 28,882 | |||
CenterPoint Energy Incorporated | 817 | 17,680 | |||
CMS Energy Corporation | 430 | 26,234 | |||
Consolidated Edison Incorporated | 513 | 37,075 | |||
Dominion Energy Incorporated | 1,223 | 91,970 | |||
DTE Energy Company | 289 | 35,087 | |||
NiSource Incorporated | 575 | 13,191 | |||
Public Service Enterprise Group Incorporated | 759 | 44,250 | |||
Sempra Energy | 432 | 55,041 | |||
WEC Energy Group Incorporated | 473 | 43,530 | |||
392,940 | |||||
Water utilities: 0.05% | |||||
American Water Works Company Incorporated | 271 | 41,590 | |||
Total Common stocks (Cost $22,472,971) | 47,423,711 |
Interest rate | Maturity date | Principal | |||
U.S. Treasury securities: 36.82% | |||||
U.S. Treasury Bond | 1.13 | 5-15-2040 | $109,000 | 103,312 | |
U.S. Treasury Bond | 1.13 | 8-15-2040 | 145,000 | 137,048 |
Interest rate | Maturity date | Principal | Value | ||
U.S. Treasury securities (continued) | |||||
U.S. Treasury Bond | 1.25% | 5-15-2050 | $120,000 | $ 108,619 | |
U.S. Treasury Bond | 1.38 | 11-15-2040 | 87,000 | 85,872 | |
U.S. Treasury Bond | 1.38 | 8-15-2050 | 151,000 | 141,091 | |
U.S. Treasury Bond | 1.50 | 1-31-2027 | 98,000 | 103,838 | |
U.S. Treasury Bond | 1.50 | 2-15-2030 | 209,000 | 220,977 | |
U.S. Treasury Bond | 1.63 | 11-15-2050 | 87,000 | 86,483 | |
U.S. Treasury Bond | 2.00 | 2-15-2050 | 152,000 | 164,736 | |
U.S. Treasury Bond | 2.13 | 9-30-2024 | 118,000 | 126,297 | |
U.S. Treasury Bond | 2.13 | 11-30-2024 | 119,000 | 127,660 | |
U.S. Treasury Bond | 2.25 | 8-15-2046 | 106,000 | 120,757 | |
U.S. Treasury Bond | 2.25 | 8-15-2049 | 108,000 | 123,339 | |
U.S. Treasury Bond | 2.38 | 11-15-2049 | 127,000 | 148,883 | |
U.S. Treasury Bond | 2.50 | 2-15-2045 | 116,000 | 138,076 | |
U.S. Treasury Bond | 2.50 | 2-15-2046 | 106,000 | 126,393 | |
U.S. Treasury Bond | 2.50 | 5-15-2046 | 105,000 | 125,196 | |
U.S. Treasury Bond | 2.75 | 8-15-2042 | 66,000 | 81,688 | |
U.S. Treasury Bond | 2.75 | 11-15-2042 | 78,000 | 96,473 | |
U.S. Treasury Bond | 2.75 | 8-15-2047 | 101,000 | 126,376 | |
U.S. Treasury Bond | 2.75 | 11-15-2047 | 100,000 | 125,246 | |
U.S. Treasury Bond | 2.88 | 5-15-2028 | 178,000 | 206,139 | |
U.S. Treasury Bond | 2.88 | 5-15-2043 | 111,000 | 140,085 | |
U.S. Treasury Bond | 2.88 | 8-15-2045 | 115,000 | 146,046 | |
U.S. Treasury Bond | 2.88 | 11-15-2046 | 104,000 | 132,616 | |
U.S. Treasury Bond | 2.88 | 5-15-2049 | 140,000 | 180,392 | |
U.S. Treasury Bond | 3.00 | 5-15-2042 | 40,000 | 51,361 | |
U.S. Treasury Bond | 3.00 | 11-15-2044 | 114,000 | 147,274 | |
U.S. Treasury Bond | 3.00 | 5-15-2045 | 116,000 | 150,229 | |
U.S. Treasury Bond | 3.00 | 11-15-2045 | 115,000 | 149,379 | |
U.S. Treasury Bond | 3.00 | 2-15-2047 | 106,000 | 138,338 | |
U.S. Treasury Bond | 3.00 | 5-15-2047 | 104,000 | 135,935 | |
U.S. Treasury Bond | 3.00 | 2-15-2048 | 114,000 | 149,362 | |
U.S. Treasury Bond | 3.00 | 8-15-2048 | 121,000 | 158,864 | |
U.S. Treasury Bond | 3.00 | 2-15-2049 | 140,000 | 184,308 | |
U.S. Treasury Bond | 3.13 | 11-15-2041 | 37,000 | 48,314 | |
U.S. Treasury Bond | 3.13 | 2-15-2042 | 46,000 | 60,220 | |
U.S. Treasury Bond | 3.13 | 2-15-2043 | 79,000 | 103,444 | |
U.S. Treasury Bond | 3.13 | 8-15-2044 | 115,000 | 151,400 | |
U.S. Treasury Bond | 3.13 | 5-15-2048 | 123,000 | 164,791 | |
U.S. Treasury Bond | 3.38 | 5-15-2044 | 110,000 | 150,167 | |
U.S. Treasury Bond | 3.38 | 11-15-2048 | 135,000 | 189,253 | |
U.S. Treasury Bond | 3.50 | 2-15-2039 | 29,000 | 39,329 | |
U.S. Treasury Bond | 3.63 | 8-15-2043 | 88,000 | 124,073 | |
U.S. Treasury Bond | 3.63 | 2-15-2044 | 113,000 | 159,741 | |
U.S. Treasury Bond | 3.75 | 8-15-2041 | 36,000 | 51,078 | |
U.S. Treasury Bond | 3.75 | 11-15-2043 | 110,000 | 158,065 | |
U.S. Treasury Bond | 3.88 | 8-15-2040 | 37,000 | 52,953 | |
U.S. Treasury Bond | 4.25 | 5-15-2039 | 31,000 | 45,945 | |
U.S. Treasury Bond | 4.25 | 11-15-2040 | 40,000 | 59,997 | |
U.S. Treasury Bond | 4.38 | 2-15-2038 | 18,000 | 26,729 | |
U.S. Treasury Bond | 4.38 | 11-15-2039 | 35,000 | 52,860 | |
U.S. Treasury Bond | 4.38 | 5-15-2040 | 35,000 | 53,046 | |
U.S. Treasury Bond | 4.38 | 5-15-2041 | 33,000 | 50,514 | |
U.S. Treasury Bond | 4.50 | 2-15-2036 | 26,000 | 38,121 | |
U.S. Treasury Bond | 4.50 | 5-15-2038 | 21,000 | 31,678 | |
U.S. Treasury Bond | 4.50 | 8-15-2039 | 33,000 | 50,426 |
Interest rate | Maturity date | Principal | Value | ||
U.S. Treasury securities (continued) | |||||
U.S. Treasury Bond | 4.63% | 2-15-2040 | $ 38,000 | $ 59,161 | |
U.S. Treasury Bond | 4.75 | 2-15-2037 | 13,000 | 19,797 | |
U.S. Treasury Bond | 4.75 | 2-15-2041 | 44,000 | 70,190 | |
U.S. Treasury Bond | 5.00 | 5-15-2037 | 17,000 | 26,616 | |
U.S. Treasury Bond | 5.25 | 11-15-2028 | 45,000 | 60,645 | |
U.S. Treasury Bond | 5.25 | 2-15-2029 | 33,000 | 44,712 | |
U.S. Treasury Bond | 5.38 | 2-15-2031 | 31,000 | 44,539 | |
U.S. Treasury Bond | 5.50 | 8-15-2028 | 35,000 | 47,496 | |
U.S. Treasury Bond | 6.13 | 11-15-2027 | 49,000 | 67,275 | |
U.S. Treasury Bond | 6.13 | 8-15-2029 | 25,000 | 36,215 | |
U.S. Treasury Bond | 6.25 | 5-15-2030 | 21,000 | 31,283 | |
U.S. Treasury Bond | 6.38 | 8-15-2027 | 21,000 | 28,945 | |
U.S. Treasury Bond | 6.88 | 8-15-2025 | 21,000 | 27,308 | |
U.S. Treasury Note | 0.13 | 11-30-2022 | 178,000 | 178,014 | |
U.S. Treasury Note | 0.13 | 5-15-2023 | 117,000 | 116,959 | |
U.S. Treasury Note | 0.13 | 7-15-2023 | 123,000 | 122,933 | |
U.S. Treasury Note | 0.13 | 8-15-2023 | 128,000 | 127,920 | |
U.S. Treasury Note | 0.13 | 9-15-2023 | 143,000 | 142,888 | |
U.S. Treasury Note | 0.13 | 10-15-2023 | 146,000 | 145,886 | |
U.S. Treasury Note | 0.25 | 4-15-2023 | 119,000 | 119,284 | |
U.S. Treasury Note | 0.25 | 6-15-2023 | 122,000 | 122,305 | |
U.S. Treasury Note | 0.25 | 11-15-2023 | 172,000 | 172,470 | |
U.S. Treasury Note | 0.25 | 5-31-2025 | 132,000 | 131,727 | |
U.S. Treasury Note | 0.25 | 6-30-2025 | 142,000 | 141,612 | |
U.S. Treasury Note | 0.25 | 7-31-2025 | 147,000 | 146,541 | |
U.S. Treasury Note | 0.25 | 8-31-2025 | 153,000 | 152,474 | |
U.S. Treasury Note | 0.25 | 10-31-2025 | 176,000 | 175,203 | |
U.S. Treasury Note | 0.38 | 4-30-2025 | 126,000 | 126,438 | |
U.S. Treasury Note | 0.38 | 11-30-2025 | 181,000 | 181,212 | |
U.S. Treasury Note | 0.38 | 7-31-2027 | 134,000 | 132,189 | |
U.S. Treasury Note | 0.38 | 9-30-2027 | 155,000 | 152,566 | |
U.S. Treasury Note | 0.50 | 3-15-2023 | 104,000 | 104,837 | |
U.S. Treasury Note | 0.50 | 3-31-2025 | 120,000 | 121,088 | |
U.S. Treasury Note | 0.50 | 4-30-2027 | 98,000 | 97,721 | |
U.S. Treasury Note | 0.50 | 5-31-2027 | 111,000 | 110,566 | |
U.S. Treasury Note | 0.50 | 6-30-2027 | 122,000 | 121,442 | |
U.S. Treasury Note | 0.50 | 8-31-2027 | 142,000 | 141,079 | |
U.S. Treasury Note | 0.50 | 10-31-2027 | 168,000 | 166,609 | |
U.S. Treasury Note | 0.63 | 3-31-2027 | 81,000 | 81,456 | |
U.S. Treasury Note | 0.63 | 11-30-2027 | 179,000 | 178,888 | |
U.S. Treasury Note | 0.63 | 5-15-2030 | 178,000 | 173,912 | |
U.S. Treasury Note | 0.63 | 8-15-2030 | 222,000 | 216,311 | |
U.S. Treasury Note | 0.88 | 11-15-2030 | 132,000 | 131,484 | |
U.S. Treasury Note | 1.13 | 2-28-2025 | 118,000 | 122,144 | |
U.S. Treasury Note | 1.13 | 2-28-2027 | 47,000 | 48,722 | |
U.S. Treasury Note | 1.25 | 7-31-2023 | 67,000 | 68,903 | |
U.S. Treasury Note | 1.25 | 8-31-2024 | 104,000 | 107,872 | |
U.S. Treasury Note | 1.38 | 2-15-2023 | 82,000 | 84,156 | |
U.S. Treasury Note | 1.38 | 6-30-2023 | 64,000 | 65,955 | |
U.S. Treasury Note | 1.38 | 8-31-2023 | 124,000 | 128,040 | |
U.S. Treasury Note | 1.38 | 9-30-2023 | 90,000 | 93,020 | |
U.S. Treasury Note | 1.38 | 1-31-2025 | 105,000 | 109,709 | |
U.S. Treasury Note | 1.38 | 8-31-2026 | 95,000 | 99,898 | |
U.S. Treasury Note | 1.50 | 1-31-2022 | 128,000 | 129,900 | |
U.S. Treasury Note | 1.50 | 1-15-2023 | 79,000 | 81,197 |
Interest rate | Maturity date | Principal | Value | ||
U.S. Treasury securities (continued) | |||||
U.S. Treasury Note | 1.50% | 2-28-2023 | $126,000 | $ 129,701 | |
U.S. Treasury Note | 1.50 | 3-31-2023 | 126,000 | 129,829 | |
U.S. Treasury Note | 1.50 | 9-30-2024 | 108,000 | 113,079 | |
U.S. Treasury Note | 1.50 | 10-31-2024 | 114,000 | 119,464 | |
U.S. Treasury Note | 1.50 | 11-30-2024 | 122,000 | 127,914 | |
U.S. Treasury Note | 1.50 | 8-15-2026 | 102,000 | 107,977 | |
U.S. Treasury Note | 1.63 | 8-15-2022 | 117,000 | 119,838 | |
U.S. Treasury Note | 1.63 | 8-31-2022 | 151,000 | 154,746 | |
U.S. Treasury Note | 1.63 | 11-15-2022 | 150,000 | 154,172 | |
U.S. Treasury Note | 1.63 | 12-15-2022 | 104,000 | 107,031 | |
U.S. Treasury Note | 1.63 | 4-30-2023 | 66,000 | 68,271 | |
U.S. Treasury Note | 1.63 | 5-31-2023 | 64,000 | 66,278 | |
U.S. Treasury Note | 1.63 | 10-31-2023 | 90,000 | 93,748 | |
U.S. Treasury Note | 1.63 | 2-15-2026 | 102,000 | 108,463 | |
U.S. Treasury Note | 1.63 | 5-15-2026 | 105,000 | 111,772 | |
U.S. Treasury Note | 1.63 | 9-30-2026 | 97,000 | 103,381 | |
U.S. Treasury Note | 1.63 | 10-31-2026 | 94,000 | 100,220 | |
U.S. Treasury Note | 1.63 | 11-30-2026 | 97,000 | 103,449 | |
U.S. Treasury Note | 1.63 | 8-15-2029 | 157,000 | 167,855 | |
U.S. Treasury Note | 1.75 | 2-28-2022 | 129,000 | 131,439 | |
U.S. Treasury Note | 1.75 | 3-31-2022 | 128,000 | 130,600 | |
U.S. Treasury Note | 1.75 | 4-30-2022 | 126,000 | 128,737 | |
U.S. Treasury Note | 1.75 | 5-15-2022 | 111,000 | 113,471 | |
U.S. Treasury Note | 1.75 | 5-31-2022 | 149,000 | 152,428 | |
U.S. Treasury Note | 1.75 | 6-30-2022 | 149,000 | 152,620 | |
U.S. Treasury Note | 1.75 | 9-30-2022 | 144,000 | 148,061 | |
U.S. Treasury Note | 1.75 | 1-31-2023 | 129,000 | 133,334 | |
U.S. Treasury Note | 1.75 | 5-15-2023 | 113,000 | 117,290 | |
U.S. Treasury Note | 1.75 | 7-31-2024 | 110,000 | 116,011 | |
U.S. Treasury Note | 1.75 | 12-31-2024 | 99,000 | 104,859 | |
U.S. Treasury Note | 1.75 | 12-31-2026 | 99,000 | 106,355 | |
U.S. Treasury Note | 1.75 | 11-15-2029 | 178,000 | 192,261 | |
U.S. Treasury Note | 1.88 | 1-31-2022 | 157,000 | 159,968 | |
U.S. Treasury Note | 1.88 | 2-28-2022 | 153,000 | 156,108 | |
U.S. Treasury Note | 1.88 | 3-31-2022 | 153,000 | 156,347 | |
U.S. Treasury Note | 1.88 | 4-30-2022 | 153,000 | 156,562 | |
U.S. Treasury Note | 1.88 | 5-31-2022 | 128,000 | 131,170 | |
U.S. Treasury Note | 1.88 | 7-31-2022 | 149,000 | 153,109 | |
U.S. Treasury Note | 1.88 | 8-31-2022 | 142,000 | 146,110 | |
U.S. Treasury Note | 1.88 | 9-30-2022 | 144,000 | 148,365 | |
U.S. Treasury Note | 1.88 | 10-31-2022 | 143,000 | 147,564 | |
U.S. Treasury Note | 1.88 | 8-31-2024 | 125,000 | 132,524 | |
U.S. Treasury Note | 1.88 | 6-30-2026 | 98,000 | 105,718 | |
U.S. Treasury Note | 1.88 | 7-31-2026 | 99,000 | 106,854 | |
U.S. Treasury Note | 2.00 | 12-31-2021 | 155,000 | 157,894 | |
U.S. Treasury Note | 2.00 | 2-15-2022 | 133,000 | 135,790 | |
U.S. Treasury Note | 2.00 | 7-31-2022 | 144,000 | 148,236 | |
U.S. Treasury Note | 2.00 | 10-31-2022 | 143,000 | 147,882 | |
U.S. Treasury Note | 2.00 | 11-30-2022 | 129,000 | 133,616 | |
U.S. Treasury Note | 2.00 | 2-15-2023 | 118,000 | 122,637 | |
U.S. Treasury Note | 2.00 | 4-30-2024 | 123,000 | 130,356 | |
U.S. Treasury Note | 2.00 | 5-31-2024 | 123,000 | 130,519 | |
U.S. Treasury Note | 2.00 | 6-30-2024 | 123,000 | 130,678 | |
U.S. Treasury Note | 2.00 | 2-15-2025 | 289,000 | 309,377 | |
U.S. Treasury Note | 2.00 | 8-15-2025 | 220,000 | 236,921 |
Interest rate | Maturity date | Principal | Value | ||
U.S. Treasury securities (continued) | |||||
U.S. Treasury Note | 2.00% | 11-15-2026 | $170,000 | $ 184,975 | |
U.S. Treasury Note | 2.13 | 12-31-2021 | 126,000 | 128,510 | |
U.S. Treasury Note | 2.13 | 6-30-2022 | 126,000 | 129,765 | |
U.S. Treasury Note | 2.13 | 12-31-2022 | 129,000 | 134,125 | |
U.S. Treasury Note | 2.13 | 11-30-2023 | 110,000 | 116,291 | |
U.S. Treasury Note | 2.13 | 2-29-2024 | 128,000 | 135,835 | |
U.S. Treasury Note | 2.13 | 3-31-2024 | 127,000 | 134,918 | |
U.S. Treasury Note | 2.13 | 7-31-2024 | 123,000 | 131,389 | |
U.S. Treasury Note | 2.13 | 5-15-2025 | 234,000 | 252,519 | |
U.S. Treasury Note | 2.13 | 5-31-2026 | 97,000 | 105,866 | |
U.S. Treasury Note | 2.25 | 12-31-2023 | 127,000 | 134,913 | |
U.S. Treasury Note | 2.25 | 1-31-2024 | 127,000 | 135,101 | |
U.S. Treasury Note | 2.25 | 4-30-2024 | 120,000 | 128,161 | |
U.S. Treasury Note | 2.25 | 10-31-2024 | 121,000 | 130,255 | |
U.S. Treasury Note | 2.25 | 11-15-2024 | 290,000 | 312,362 | |
U.S. Treasury Note | 2.25 | 12-31-2024 | 118,000 | 127,329 | |
U.S. Treasury Note | 2.25 | 11-15-2025 | 219,000 | 239,104 | |
U.S. Treasury Note | 2.25 | 3-31-2026 | 99,000 | 108,552 | |
U.S. Treasury Note | 2.25 | 2-15-2027 | 196,000 | 216,580 | |
U.S. Treasury Note | 2.25 | 8-15-2027 | 101,000 | 111,948 | |
U.S. Treasury Note | 2.25 | 11-15-2027 | 99,000 | 109,882 | |
U.S. Treasury Note | 2.38 | 1-31-2023 | 144,000 | 150,694 | |
U.S. Treasury Note | 2.38 | 2-29-2024 | 84,000 | 89,782 | |
U.S. Treasury Note | 2.38 | 8-15-2024 | 289,000 | 311,443 | |
U.S. Treasury Note | 2.38 | 4-30-2026 | 98,000 | 108,190 | |
U.S. Treasury Note | 2.38 | 5-15-2027 | 164,000 | 182,866 | |
U.S. Treasury Note | 2.38 | 5-15-2029 | 90,000 | 101,658 | |
U.S. Treasury Note | 2.50 | 3-31-2023 | 83,000 | 87,390 | |
U.S. Treasury Note | 2.50 | 8-15-2023 | 102,000 | 108,263 | |
U.S. Treasury Note | 2.50 | 1-31-2024 | 103,000 | 110,343 | |
U.S. Treasury Note | 2.50 | 5-15-2024 | 281,000 | 302,767 | |
U.S. Treasury Note | 2.50 | 1-31-2025 | 116,000 | 126,499 | |
U.S. Treasury Note | 2.50 | 2-28-2026 | 97,000 | 107,511 | |
U.S. Treasury Note | 2.63 | 2-28-2023 | 146,000 | 153,819 | |
U.S. Treasury Note | 2.63 | 6-30-2023 | 83,000 | 88,103 | |
U.S. Treasury Note | 2.63 | 12-31-2023 | 97,000 | 104,101 | |
U.S. Treasury Note | 2.63 | 3-31-2025 | 114,000 | 125,231 | |
U.S. Treasury Note | 2.63 | 12-31-2025 | 97,000 | 107,848 | |
U.S. Treasury Note | 2.63 | 1-31-2026 | 95,000 | 105,784 | |
U.S. Treasury Note | 2.63 | 2-15-2029 | 181,000 | 207,676 | |
U.S. Treasury Note | 2.75 | 4-30-2023 | 82,000 | 86,952 | |
U.S. Treasury Note | 2.75 | 5-31-2023 | 82,000 | 87,131 | |
U.S. Treasury Note | 2.75 | 7-31-2023 | 80,000 | 85,350 | |
U.S. Treasury Note | 2.75 | 8-31-2023 | 145,000 | 154,974 | |
U.S. Treasury Note | 2.75 | 11-15-2023 | 134,000 | 143,930 | |
U.S. Treasury Note | 2.75 | 2-15-2024 | 217,000 | 234,377 | |
U.S. Treasury Note | 2.75 | 2-28-2025 | 121,000 | 133,351 | |
U.S. Treasury Note | 2.75 | 6-30-2025 | 119,000 | 131,932 | |
U.S. Treasury Note | 2.75 | 8-31-2025 | 122,000 | 135,625 | |
U.S. Treasury Note | 2.75 | 2-15-2028 | 189,000 | 216,641 | |
U.S. Treasury Note | 2.88 | 9-30-2023 | 148,000 | 158,979 | |
U.S. Treasury Note | 2.88 | 10-31-2023 | 84,000 | 90,418 | |
U.S. Treasury Note | 2.88 | 11-30-2023 | 76,000 | 81,970 | |
U.S. Treasury Note | 2.88 | 4-30-2025 | 114,000 | 126,638 | |
U.S. Treasury Note | 2.88 | 5-31-2025 | 117,000 | 130,158 |
Interest rate | Maturity date | Principal | Value | ||
U.S. Treasury securities (continued) | |||||
U.S. Treasury Note | 2.88% | 7-31-2025 | $118,000 | $ 131,694 | |
U.S. Treasury Note | 2.88 | 11-30-2025 | 96,000 | 107,764 | |
U.S. Treasury Note | 2.88 | 8-15-2028 | 190,000 | 220,600 | |
U.S. Treasury Note | 3.00 | 9-30-2025 | 121,000 | 136,139 | |
U.S. Treasury Note | 3.00 | 10-31-2025 | 76,000 | 85,654 | |
U.S. Treasury Note | 3.13 | 11-15-2028 | 226,000 | 267,448 | |
U.S. Treasury Note | 6.00 | 2-15-2026 | 42,000 | 54,016 | |
U.S. Treasury Note | 6.25 | 8-15-2023 | 17,000 | 19,717 | |
U.S. Treasury Note | 6.50 | 11-15-2026 | 28,000 | 37,763 | |
U.S. Treasury Note | 6.63 | 2-15-2027 | 18,000 | 24,660 | |
U.S. Treasury Note | 6.75 | 8-15-2026 | 21,000 | 28,355 | |
U.S. Treasury Note | 7.13 | 2-15-2023 | 24,000 | 27,553 | |
U.S. Treasury Note | 7.25 | 8-15-2022 | 24,000 | 26,771 | |
U.S. Treasury Note | 7.50 | 11-15-2024 | 22,000 | 28,164 | |
U.S. Treasury Note | 7.63 | 11-15-2022 | 12,000 | 13,681 | |
U.S. Treasury Note | 7.63 | 2-15-2025 | 20,000 | 26,028 | |
Total U.S. Treasury securities (Cost $26,878,451) | 29,010,284 |
Yield | Shares | ||||
Short-term investments: 1.15% | |||||
Investment companies: 1.15% | |||||
Securities Lending Cash Investments LLC ♠∩∞ | 0.16% | 11,350 | 11,350 | ||
Wells Fargo Government Money Market Fund Select Class ♠∞ | 0.03 | 898,399 | 898,399 | ||
Total Short-term investments (Cost $909,749) | 909,749 | ||||
Total investments in securities (Cost $50,261,171) | 98.16% | 77,343,744 | |||
Other assets and liabilities, net | 1.84 | 1,447,504 | |||
Total net assets | 100.00% | $ 78,791,248 |
† | Non-income-earning security |
« | All or a portion of this security is on loan. |
♠ | The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940. |
∩ | The investment is a non-registered investment company purchased with cash collateral received from securities on loan. |
∞ | The rate represents the 7-day annualized yield at period end. |
Abbreviations: | |
REIT | Real estate investment trust |
Value, beginning of period | Purchases | Sales proceeds | Net realized gains (losses) | Net change in unrealized gains (losses) | Value, end of period | % of net assets | Shares, end of period | Income from affiliated securities | ||||
Common stocks | ||||||||||||
Financials | ||||||||||||
Banks | ||||||||||||
Wells Fargo & Company | $337,379 | $ 29,044 | $ (34,927) | $ 1,734 | $ (146,144) | $ 187,086 | 0.24% | 6,199 | $ 7,596 | |||
Short-term investments | ||||||||||||
Investment companies | ||||||||||||
Securities Lending Cash Investments LLC | 0 | 85,300 | (73,950) | 0 | 0 | 11,350 | 11,350 | 35 # | ||||
Wells Fargo Government Money Market Fund Select Class | 126,233 | 19,657,510 | (18,885,344) | 0 | 0 | 898,399 | 898,399 | 3,963 | ||||
909,749 | 1.15 | |||||||||||
$1,734 | $(146,144) | $1,096,835 | 1.39% | $11,594 |
# | Amount shown represents income before fees and rebates. |
Description | Number of contracts | Expiration date | Notional cost | Notional value | Unrealized gains | Unrealized losses | |
Long | |||||||
E-Mini S&P 500 Index | 19 | 3-19-2021 | $3,477,899 | $3,561,360 | $ 83,461 | $ 0 | |
10-Year U.S. Treasury Notes | 71 | 3-22-2021 | 9,780,233 | 9,803,547 | 23,314 | 0 | |
U.S. Treasury Bond | 1 | 3-22-2021 | 173,034 | 173,187 | 153 | 0 | |
U.S. Ultra Bond | 2 | 3-22-2021 | 427,138 | 427,125 | 0 | (13) | |
2-Year U.S. Treasury Notes | 4 | 3-31-2021 | 883,546 | 883,906 | 360 | 0 | |
Short | |||||||
5-Year U.S. Treasury Notes | (2) | 3-31-2021 | (251,932) | (252,328) | 0 | (396) | |
$107,288 | $(409) |
Assets | |
Investments in unaffiliated securities (including $10,884 of securities loaned), at value (cost $49,162,371) | $ 76,246,909 |
Investments in affiliated securites, at value (cost $1,098,800) | 1,096,835 |
Receivable for investments sold | 1,029,511 |
Segregated cash for futures contracts | 290,981 |
Receivable for dividends and interest | 170,524 |
Receivable for daily variation margin on open futures contracts | 32,621 |
Receivable for Fund shares sold | 180 |
Receivable for securities lending income, net | 27 |
Prepaid expenses and other assets | 26,720 |
Total assets | 78,894,308 |
Liabilities | |
Management fee payable | 32,998 |
Payable for Fund shares redeemed | 22,948 |
Distribution fee payable | 18,201 |
Payable upon receipt of securities loaned | 11,350 |
Custodian and accounting fee payable | 7,554 |
Administration fee payable | 5,823 |
Trustees’ fees and expenses payable | 2,935 |
Payable for investments purchased | 1,251 |
Total liabilities | 103,060 |
Total net assets | $78,791,248 |
Net assets consist of | |
Paid-in capital | $ 45,589,576 |
Total distributable earnings | 33,201,672 |
Total net assets | $78,791,248 |
Computation of net asset value per share | |
Net assets - Class 2 | $ 78,791,248 |
Share outstanding - Class 21 | 3,600,515 |
Net asset value per share - Class 2 | $21.88 |
1 | The Fund has an unlimited number of authorized shares |
Investment income | |
Dividends | $ 780,403 |
Interest | 507,907 |
Income from affiliated securities | 11,735 |
Total investment income | 1,300,045 |
Expenses | |
Management fee | 437,643 |
Administration fee - Class 2 | 58,352 |
Distribution fee - Class 2 | 179,558 |
Custody and accounting fees | 36,470 |
Professional fees | 43,561 |
Shareholder report expenses | 29,533 |
Trustees’ fees and expenses | 19,134 |
Other fees and expenses | 25,320 |
Total expenses | 829,571 |
Less: Fee waivers and/or expense reimbursements | |
Fund-level | (100,166) |
Net expenses | 729,405 |
Net investment income | 570,640 |
Realized and unrealized gains (losses) on investments | |
Net realized gains on | |
Unaffiliated securities | 6,181,795 |
Affiliated securities | 1,734 |
Futures contracts | 1,348,498 |
Net realized gains on investments | 7,532,027 |
Net change in unrealized gains (losses) on | |
Unaffiliated securities | 3,210,348 |
Affiliated securities | (146,144) |
Futures contracts | 148,890 |
Net change in unrealized gains (losses) on investments | 3,213,094 |
Net realized and unrealized gains (losses) on investments | 10,745,121 |
Net increase in net assets resulting from operations | $11,315,761 |
Year ended December 31, 2020 | Year ended December 31, 2019 | |||
Operations | ||||
Net investment income | $ 570,640 | $ 779,366 | ||
Net realized gains on investments | 7,532,027 | 5,395,088 | ||
Net change in unrealized gains (losses) on investments | 3,213,094 | 7,066,026 | ||
Net increase in net assets resulting from operations | 11,315,761 | 13,240,480 | ||
Distributions to shareholders from | ||||
Net investment income and net realized gains - Class 2 | (6,314,848) | (5,335,197) | ||
Capital share transactions | Shares | Shares | ||
Proceeds from shares sold - Class 2 | 180,317 | 3,691,931 | 75,995 | 1,504,042 |
Reinvestment of distributions - Class 2 | 318,519 | 6,314,848 | 269,720 | 5,335,197 |
Payment for shares redeemed - Class 2 | (411,678) | (8,409,040) | (570,099) | (11,403,024) |
Net increase (decrease) in net assets resulting from capital share transactions | 1,597,739 | (4,563,785) | ||
Total increase in net assets | 6,598,652 | 3,341,498 | ||
Net assets | ||||
Beginning of period | 72,192,596 | 68,851,098 | ||
End of period | $78,791,248 | $ 72,192,596 |
Year ended December 31 | |||||
Class 2 | 2020 | 2019 | 2018 | 2017 | 2016 |
Net asset value, beginning of period | $20.55 | $18.42 | $20.45 | $19.16 | $18.47 |
Net investment income | 0.16 | 0.22 | 0.20 | 0.17 | 0.17 |
Net realized and unrealized gains (losses) on investments | 3.04 | 3.42 | (0.70) | 2.12 | 1.22 |
Total from investment operations | 3.20 | 3.64 | (0.50) | 2.29 | 1.39 |
Distributions to shareholders from | |||||
Net investment income | (0.17) | (0.22) | (0.20) | (0.15) | (0.17) |
Net realized gains | (1.70) | (1.29) | (1.33) | (0.85) | (0.53) |
Total distributions to shareholders | (1.87) | (1.51) | (1.53) | (1.00) | (0.70) |
Net asset value, end of period | $21.88 | $20.55 | $18.42 | $20.45 | $19.16 |
Total return1 | 16.59% | 20.16% | (2.90)% | 12.25% | 7.67% |
Ratios to average net assets (annualized) | |||||
Gross expenses | 1.14% | 1.05% | 1.05% | 1.16% | 1.10% |
Net expenses | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income | 0.78% | 1.07% | 0.94% | 0.86% | 0.93% |
Supplemental data | |||||
Portfolio turnover rate | 21% | 4% | 10% | 10% | 15% |
Net assets, end of period (000s omitted) | $78,791 | $72,193 | $68,851 | $81,956 | $81,505 |
1 | Performance figures of the Fund do not reflect fees and expenses charged pursuant to the terms of variable life insurance policies and variable annuity contracts. |
Gross unrealized gains | $26,586,884 |
Gross unrealized losses | (1,075,606) |
Net unrealized gains | $25,511,278 |
■ | 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) |
Quoted prices (Level 1) | Other significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | |
Assets | ||||
Investments in: | ||||
Common stocks | ||||
Communication services | $ 5,100,916 | $0 | $0 | $ 5,100,916 |
Consumer discretionary | 6,034,943 | 0 | 0 | 6,034,943 |
Consumer staples | 3,089,503 | 0 | 0 | 3,089,503 |
Energy | 1,082,822 | 0 | 0 | 1,082,822 |
Financials | 4,954,460 | 0 | 0 | 4,954,460 |
Health care | 6,385,017 | 0 | 0 | 6,385,017 |
Industrials | 3,983,201 | 0 | 0 | 3,983,201 |
Information technology | 13,087,451 | 0 | 0 | 13,087,451 |
Materials | 1,247,488 | 0 | 0 | 1,247,488 |
Real estate | 1,147,811 | 0 | 0 | 1,147,811 |
Utilities | 1,310,099 | 0 | 0 | 1,310,099 |
U.S. Treasury securities | 29,010,284 | 0 | 0 | 29,010,284 |
Short-term investments | ||||
Investment companies | 909,749 | 0 | 0 | 909,749 |
77,343,744 | 0 | 0 | 77,343,744 | |
Futures contracts | 107,288 | 0 | 0 | 107,288 |
Total assets | $77,451,032 | $0 | $0 | $77,451,032 |
Liabilities | ||||
Futures contracts | $ 409 | $0 | $0 | $ 409 |
Total liabilities | $ 409 | $0 | $0 | $ 409 |
Average daily net assets | Management fee |
First $500 million | 0.600% |
Next $500 million | 0.550 |
Next $2 billion | 0.500 |
Next $2 billion | 0.475 |
Next $5 billion | 0.440 |
Over $10 billion | 0.430 |
Purchases at cost | Sales proceeds | |||
U.S. government | Non-U.S. government | U.S. government | Non-U.S. government | |
$9,590,469 | $5,154,045 | $10,420,812 | $8,569,979 |
Counterparty | Value of securities on loan | Collateral received1 | Net amount |
Bank of America Securities Inc. | $10,884 | $(10,884) | $0 |
Amount of realized gains on derivatives | Change in unrealized gains (losses) on derivatives | |
Equity risk | $ 1,162,075 | $ 83,461 |
Interest rate risk | 186,423 | 65,429 |
$1,348,498 | $148,890 |
Year ended December 31 | ||
2020 | 2019 | |
Ordinary income | $ 769,127 | $ 801,395 |
Long-term capital gain | 5,545,721 | 4,533,802 |
Undistributed ordinary income | Undistributed long-term gain | Unrealized gains |
$755,191 | $6,935,203 | $25,511,278 |
Wells Fargo Variable Trust:
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 Chair, 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). Mr. Harris is a certified public accountant (inactive status). | CIGNA Corporation |
Judith M. Johnson (Born 1949) | Trustee, since 2008 | 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 (Emeritus), 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 |
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; Chair, 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. Interim President of the McKnight Foundation from January to September 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 |
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. |
Jeremy DePalma1 (Born 1974) | Treasurer, since 2012 | 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. |
Michelle Rhee (Born 1966) | Chief Legal Officer, since 2019 | Secretary of Wells Fargo Funds Management, LLC and Chief Legal Counsel of Wells Fargo Asset Management since 2018. Deputy General Counsel of Wells Fargo Bank, N.A. since 2020 and Assistant General Counsel of Wells Fargo Bank, N.A. from 2018 to 2020. 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. |
P.O. Box 219967
Kansas City, MO 64121-9967
AVT2/AR148 12-20
VT International Equity Fund
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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 (unhedged) 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 2021. ICE Data Indices, LLC. All rights reserved. |
President
Wells Fargo Funds
Dale A. Winner, CFA®‡
Expense ratios1 (%) | ||||||
Inception date | 1 year | 5 year | 10 year | Gross | Net 2 | |
Class 1 | 8-17-1998 | 4.89* | 5.36 | 4.11 | 1.13 | 0.69 |
Class 2 | 7-31-2002 | 4.93* | 5.18 | 3.89 | 1.38 | 0.94 |
MSCI ACWI ex USA Index (Net)3 | – | 10.65 | 8.93 | 4.92 | – | – |
MSCI ACWI ex USA Value Index (Net)4 | – | -0.77 | 5.70 | 2.78 | – | – |
Growth of $10,000 investment as of December 31, 20205 |
‡ | 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 April 30, 2021, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.69% for Class 1 and 0.94% for Class 2. 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. 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 | 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 indexes or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. You cannot invest directly in an index. |
4 | The MSCI ACWI ex USA Value Index (Net) measures the equity market performance of large- and mid-cap securities exhibiting overall value style characteristics across developed and emerging market countries, excluding the United States. The value investment style characteristics for index construction are defined using three variables: book value to price, 12-month forward earnings to price, and dividend yield. You cannot invest directly in an index. |
5 | The chart compares the performance of Class 2 shares for the most recent ten years with the MSCI ACWI ex USA Index (Net) and the MSCI ACWI ex USA Value Index (Net). The chart assumes a hypothetical $10,000 investment and reflects all operating expenses of the Fund but does not reflect fees and expenses charged pursuant to the terms of variable life insurance policies and variable annuity contracts. |
6 | The MSCI World Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of developed markets. You cannot invest directly in an index. |
7 | 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. |
8 | Figures represent the percentage of the Fund's net assets. Holdings are subject to change and may have changed since the date specified. |
9 | 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. |
10 | The Chicago Board Options Exchange (CBOE) Market Volatility Index (VIX) is a popular measure of the implied volatility of S&P 500 Index options. It represents one measure of the market's expectation of stock market volatility over the next 30-day period. You cannot invest directly in an index. |
11 | Figures represent the percentage of the Fund's long-term investments. These amounts are subject to change and may have changed since the date specified. |
■ | The Fund underperformed the MSCI ACWI ex USA Index (Net) while outperforming the MSCI ACWI ex USA Value Index (Net) for the 12-month period that ended December 31, 2020. |
■ | Information technology (IT), communication services, and consumer staples were relative performance laggards. Financials, consumer discretionary, and materials contributed to performance. |
■ | ▪ The Fund remained overweight Europe, including overweights to the Netherlands, the U.K., Norway, and Italy, partly offset by underweights to Sweden, Switzerland, Spain, and France. The Fund was underweight Asia on a regional basis, including average underweights to Japan, Taiwan, and Australia, partly offset by overweights to Korea, Singapore, and China/Hong Kong. |
Ten largest holdings (%) as of December 31, 20208 | |
LafargeHolcim Limited | 3.01 |
DNB ASA | 2.95 |
Hitachi Limited | 2.94 |
NN Group NV | 2.91 |
Rheinmetall AG | 2.86 |
Mobile TeleSystems PJSC ADR | 2.81 |
Hana Financial Group Incorporated | 2.80 |
Mitsubishi UFJ Financial Group Incorporated | 2.78 |
Samsung Electronics Company Limited GDR | 2.74 |
Nomad Foods Limited | 2.73 |
Sector distribution as of December 31, 202011 |
Geographic allocation as of December 31, 202011 |
Beginning account value 7-1-2020 | Ending account value 12-31-2020 | Expenses paid during the period1 | Annualized net expense ratio | |
Class 1 | ||||
Actual | $1,000.00 | $1,281.18 | $3.96 | 0.69% |
Hypothetical (5% return before expenses) | $1,000.00 | $1,021.67 | $3.51 | 0.69% |
Class 2 | ||||
Actual | $1,000.00 | $1,280.97 | $5.39 | 0.94% |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.41 | $4.77 | 0.94% |
Shares | Value | |||||
Common stocks: 97.89% | ||||||
Australia: 2.16% | ||||||
Qantas Airways Limited (Industrials, Airlines)† | 431,426 | 1,613,148 | ||||
Brazil: 1.76% | ||||||
Banco do Brasil SA (Financials, Banks) | 174,300 | 1,310,331 | ||||
Canada: 3.47% | ||||||
Home Capital Group Incorporated (Financials, Thrifts & mortgage finance)† | 40,500 | 944,968 | ||||
Lundin Mining Corporation (Materials, Metals & mining) | 185,172 | 1,643,840 | ||||
2,588,808 | ||||||
China: 9.02% | ||||||
Alibaba Group Holding Limited ADR (Consumer discretionary, Internet & direct marketing retail)† | 22,304 | 669,196 | ||||
HollySys Automation Technologies Limited (Information technology, Electronic equipment, instruments & components) | 39,681 | 582,914 | ||||
LONGi Green Energy Technology Company Limited Class A (Information technology, Semiconductors & semiconductor equipment) | 34,600 | 487,801 | ||||
Midea Group Company Limited Class A (Consumer discretionary, Household durables) | 83,798 | 1,261,365 | ||||
Oppein Home Group Incorporated Class A (Consumer discretionary, Household durables) | 45,640 | 938,650 | ||||
Shanghai Pharmaceuticals Holding Company Limited H Shares (Health care, Health care providers & services) | 756,000 | 1,332,090 | ||||
Topsports International Holdings Limited (Consumer discretionary, Specialty retail)144A | 978,000 | 1,463,383 | ||||
6,735,399 | ||||||
Denmark: 2.21% | ||||||
Danske Bank AS (Financials, Banks)† | 99,813 | 1,649,650 | ||||
France: 5.02% | ||||||
Compagnie de Saint-Gobain SA (Industrials, Building products)† | 40,102 | 1,837,148 | ||||
Sanofi SA (Health care, Pharmaceuticals) | 19,860 | 1,909,417 | ||||
3,746,565 | ||||||
Germany: 6.04% | ||||||
Muenchener Rueckversicherungs Gesellschaft AG (Financials, Insurance) | 5,050 | 1,500,487 | ||||
Rheinmetall AG (Industrials, Industrial conglomerates) | 20,122 | 2,130,467 | ||||
Siemens AG (Industrials, Industrial conglomerates) | 5,395 | 777,130 | ||||
Siemens Energy AG (Industrials, Electrical equipment)† | 2,697 | 98,844 | ||||
4,506,928 | ||||||
Hong Kong: 2.52% | ||||||
Xinyi Glass Holdings Limited (Consumer discretionary, Auto components) | 674,000 | 1,882,257 | ||||
India: 2.57% | ||||||
Tech Mahindra Limited (Information technology, IT services) | 144,228 | 1,921,000 | ||||
Ireland: 1.05% | ||||||
Greencore Group plc (Consumer staples, Food products) | 492,911 | 785,275 |
Shares | Value | |||||
Israel: 2.52% | ||||||
Check Point Software Technologies Limited (Information technology, Software)† | 14,141 | $ 1,879,480 | ||||
Italy: 1.33% | ||||||
Prysmian SpA (Industrials, Electrical equipment) | 27,800 | 989,475 | ||||
Japan: 11.62% | ||||||
Alps Electric Company Limited (Information technology, Electronic equipment, instruments & components) | 99,100 | 1,307,616 | ||||
Daiwa Securities Group Incorporated (Financials, Capital markets) | 346,100 | 1,576,428 | ||||
Hitachi Limited (Information technology, Electronic equipment, instruments & components) | 55,500 | 2,190,546 | ||||
Mitsubishi UFJ Financial Group Incorporated (Financials, Banks) | 467,600 | 2,070,354 | ||||
Takeda Pharmaceutical Company Limited (Health care, Pharmaceuticals) | 42,100 | 1,523,572 | ||||
8,668,516 | ||||||
Luxembourg: 0.89% | ||||||
ArcelorMittal (Materials, Metals & mining)† | 28,749 | 663,089 | ||||
Netherlands: 6.47% | ||||||
Koninklijke Philips NV (Health care, Health care equipment & supplies)† | 28,250 | 1,510,919 | ||||
NN Group NV (Financials, Insurance) | 50,031 | 2,171,607 | ||||
OCI NV (Materials, Chemicals)† | 59,628 | 1,145,116 | ||||
4,827,642 | ||||||
Norway: 2.95% | ||||||
DNB ASA (Financials, Banks)† | 112,471 | 2,203,938 | ||||
Russia: 2.81% | ||||||
Mobile TeleSystems PJSC ADR (Communication services, Wireless telecommunication services) | 234,316 | 2,097,128 | ||||
South Korea: 9.17% | ||||||
Coway Company Limited (Consumer discretionary, Household durables)† | 27,151 | 1,819,523 | ||||
Hana Financial Group Incorporated (Financials, Banks) | 65,656 | 2,091,232 | ||||
Samsung Electronics Company Limited GDR (Information technology, Technology hardware, storage & peripherals)144A | 1,120 | 2,044,000 | ||||
SK Telecom Company Limited (Communication services, Wireless telecommunication services) | 4,028 | 885,215 | ||||
6,839,970 | ||||||
Switzerland: 3.01% | ||||||
LafargeHolcim Limited (Materials, Construction materials) | 40,893 | 2,244,525 | ||||
Thailand: 0.87% | ||||||
Siam Commercial Bank plc (Financials, Banks) | 221,300 | 646,320 | ||||
United Kingdom: 13.09% | ||||||
ConvaTec Limited (Health care, Health care equipment & supplies)144A | 414,449 | 1,128,985 | ||||
Fresnillo plc (Materials, Metals & mining) | 22,634 | 349,603 | ||||
John Wood Group plc (Energy, Energy equipment & services)† | 229,919 | 975,314 | ||||
Kingfisher plc (Consumer discretionary, Specialty retail)† | 253,919 | 938,922 | ||||
Man Group plc (Financials, Capital markets) | 913,476 | 1,723,867 | ||||
Nomad Foods Limited (Consumer staples, Food products)† | 80,154 | 2,037,515 | ||||
Sensata Technologies Holding plc (Industrials, Electrical equipment)† | 16,927 | 892,730 | ||||
Smiths Group plc (Industrials, Industrial conglomerates) | 83,767 | 1,723,426 | ||||
9,770,362 |
Shares | Value | |||||
United States: 7.34% | ||||||
Advance Auto Parts Incorporated (Consumer discretionary, Specialty retail) | 5,250 | $ 826,928 | ||||
Berry Global Group Incorporated (Materials, Containers & packaging)† | 23,859 | 1,340,637 | ||||
Gentex Corporation (Consumer discretionary, Auto components) | 45,392 | 1,540,151 | ||||
Samsonite International SA (Consumer discretionary, Textiles, apparel & luxury goods)† | 999,000 | 1,770,569 | ||||
5,478,285 | ||||||
Total Common stocks (Cost $61,600,075) | 73,048,091 |
Yield | ||||||
Short-term investments: 2.02% | ||||||
Investment companies: 2.02% | ||||||
Wells Fargo Government Money Market Fund Select Class ♠∞ | 0.03% | 1,508,148 | 1,508,148 | |||
Total Short-term investments (Cost $1,508,148) | 1,508,148 | |||||
Total investments in securities (Cost $63,108,223) | 99.91% | 74,556,239 | ||||
Other assets and liabilities, net | 0.09 | 70,538 | ||||
Total net assets | 100.00% | $ 74,626,777 |
† | Non-income-earning security |
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 issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940. |
∞ | The rate represents the 7-day annualized yield at period end. |
Abbreviations: | |
ADR | American depositary receipt |
GDR | Global depositary receipt |
Value, beginning of period | Purchases | Sales proceeds | Net realized gains (losses) | Net change in unrealized gains (losses) | Value, end of period | % of net assets | Shares, end of period | Income from affiliated securities | ||||
Short-term investments | ||||||||||||
Investment companies | ||||||||||||
Securities Lending Cash Investments LLC* | $ 664,309 | $ 1,004,539 | $ (1,668,850) | $2 | $0 | $ 0 | 0 | $ 624# | ||||
Wells Fargo Government Money Market Fund Select Class | 1,474,228 | 30,103,401 | (30,069,481) | 0 | 0 | 1,508,148 | 1,508,148 | 7,134 | ||||
$2 | $0 | $1,508,148 | 2.02% | $7,758 |
* | No longer held at the end of period |
# | Amount shown represents income before fees and rebates. |
Currency to be received | Currency to be delivered | Counterparty | Settlement date | Unrealized gains | Unrealized losses | |
903,000 GBP | 1,200,602 USD | Barclays Bank plc | 2-18-2021 | $ 34,629 | $ 0 | |
1,191,864 USD | 903,000 GBP | Barclays Bank plc | 2-18-2021 | 0 | (43,367) | |
$34,629 | $(43,367) |
Assets | |
Investments in unaffiliated securities, at value (cost $61,600,075) | $ 73,048,091 |
Investments in affiliated securites, at value (cost $1,508,148) | 1,508,148 |
Cash | 90,678 |
Receivable for dividends | 355,223 |
Foreign currency, at value (cost $113,970) | 114,665 |
Unrealized gains on forward foreign currency contracts | 34,629 |
Receivable for Fund shares sold | 19 |
Prepaid expenses and other assets | 1,898 |
Total assets | 75,153,351 |
Liabilities | |
Payable for investments purchased | 189,066 |
Management fee payable | 174,449 |
Payable for Fund shares redeemed | 58,612 |
Unrealized losses on forward foreign currency contracts | 43,367 |
Distribution fee payable | 13,044 |
Administration fees payable | 5,479 |
Trustees’ fees and expenses payable | 4,009 |
Accrued expenses and other liabilities | 38,548 |
Total liabilities | 526,574 |
Total net assets | $74,626,777 |
Net assets consist of | |
Paid-in capital | $ 73,554,737 |
Total distributable earnings | 1,072,040 |
Total net assets | $74,626,777 |
Computation of net asset value per share | |
Net assets – Class 1 | $ 17,459,353 |
Shares outstanding – Class 11 | 9,438,883 |
Net asset value per share – Class 1 | $1.85 |
Net assets – Class 2 | $ 57,167,424 |
Shares outstanding – Class 21 | 29,870,506 |
Net asset value per share – Class 2 | $1.91 |
1 | The Fund has an unlimited number of authorized shares |
Investment income | |
Dividends (net of foreign withholdings taxes of $179,655) | $ 1,532,794 |
Income from affiliated securities | 7,757 |
Total investment income | 1,540,551 |
Expenses | |
Management fee | 540,905 |
Administration fees | |
Class 1 | 12,974 |
Class 2 | 41,116 |
Distribution fee | |
Class 2 | 128,266 |
Custody and accounting fees | 55,939 |
Professional fees | 46,311 |
Shareholder report expenses | 30,488 |
Trustees’ fees and expenses | 19,862 |
Other fees and expenses | 17,112 |
Total expenses | 892,973 |
Less: Fee waivers and/or expense reimbursements | |
Fund-level | (297,954) |
Net expenses | 595,019 |
Net investment income | 945,532 |
Realized and unrealized gains (losses) on investments | |
Net realized gains (losses) on | |
Unaffiliated securities | (9,172,080) |
Affiliated securities | 2 |
Forward foreign currency contracts | (240,342) |
Net realized losses on investments | (9,412,420) |
Net change in unrealized gains (losses) on | |
Unaffiliated securities | 10,480,272 |
Forward foreign currency contracts | 79,507 |
Net change in unrealized gains (losses) on investments | 10,559,779 |
Net realized and unrealized gains (losses) on investments | 1,147,359 |
Net increase in net assets resulting from operations | $ 2,092,891 |
Year ended December 31, 2020 | Year ended December 31, 2019 | |||
Operations | ||||
Net investment income | $ 945,532 | $ 1,907,276 | ||
Net realized losses on investments | (9,412,420) | (1,090,787) | ||
Net change in unrealized gains (losses) on investments | 10,559,779 | 10,994,817 | ||
Net increase in net assets resulting from operations | 2,092,891 | 11,811,306 | ||
Distributions to shareholders from | ||||
Net investment income and net realized gains | ||||
Class 1 | (472,932) | (9,077,111) | ||
Class 2 | (1,308,572) | (27,331,240) | ||
Total distributions to shareholders | (1,781,504) | (36,408,351) | ||
Capital share transactions | Shares | Shares | ||
Proceeds from shares sold | ||||
Class 1 | 514,844 | 744,962 | 386,051 | 874,936 |
Class 2 | 1,093,316 | 1,614,560 | 803,693 | 1,889,549 |
2,359,522 | 2,764,485 | |||
Reinvestment of distributions | ||||
Class 1 | 319,548 | 472,932 | 5,186,921 | 9,077,111 |
Class 2 | 849,722 | 1,308,572 | 15,100,133 | 27,331,240 |
1,781,504 | 36,408,351 | |||
Payment for shares redeemed | ||||
Class 1 | (2,281,763) | (3,640,125) | (1,474,212) | (3,230,199) |
Class 2 | (4,910,668) | (7,964,863) | (3,468,601) | (7,885,488) |
(11,604,988) | (11,115,687) | |||
Net increase (decrease) in net assets resulting from capital share transactions | (7,463,962) | 28,057,149 | ||
Total increase (decrease) in net assets | (7,152,575) | 3,460,104 | ||
Net assets | ||||
Beginning of period | 81,779,352 | 78,319,248 | ||
End of period | $ 74,626,777 | $ 81,779,352 |
Year ended December 31 | |||||
Class 1 | 2020 | 2019 | 2018 | 2017 | 2016 |
Net asset value, beginning of period | $1.83 | $2.85 | $5.34 | $4.41 | $4.82 |
Net investment income | 0.03 1 | 0.06 1 | 0.10 1 | 0.12 1 | 0.11 1 |
Net realized and unrealized gains (losses) on investments | 0.04 | 0.34 | (0.77) | 0.96 | (0.01) |
Total from investment operations | 0.07 | 0.40 | (0.67) | 1.08 | 0.10 |
Distributions to shareholders from | |||||
Net investment income | (0.05) | (0.13) | (0.61) | (0.15) | (0.15) |
Net realized gains | 0.00 | (1.29) | (1.21) | 0.00 | (0.36) |
Total distributions to shareholders | (0.05) | (1.42) | (1.82) | (0.15) | (0.51) |
Net asset value, end of period | $1.85 | $1.83 | $2.85 | $5.34 | $4.41 |
Total return2 | 4.31% | 16.14% | (16.86)% | 24.86% | 3.25% |
Ratios to average net assets (annualized) | |||||
Gross expenses | 1.13% | 1.13% | 1.12% | 0.95% | 0.95% |
Net expenses | 0.69% | 0.69% | 0.69% | 0.69% | 0.69% |
Net investment income | 1.59% | 2.55% | 2.41% | 2.41% | 2.49% |
Supplemental data | |||||
Portfolio turnover rate | 80% | 48% | 51% | 55% | 77% |
Net assets, end of period (000s omitted) | $17,459 | $19,872 | $19,315 | $28,001 | $25,137 |
1 | Calculated based upon average shares outstanding |
2 | Performance figures of the Fund do not reflect fees and expenses charged pursuant to the terms of variable life insurance policies and variable annuity contracts. |
Year ended December 31 | |||||
Class 2 | 2020 | 2019 | 2018 | 2017 | 2016 |
Net asset value, beginning of period | $1.89 | $2.89 | $5.38 | $4.45 | $4.84 |
Net investment income | 0.03 1 | 0.05 1 | 0.09 1 | 0.11 1 | 0.10 |
Net realized and unrealized gains (losses) on investments | 0.03 | 0.36 | (0.78) | 0.96 | 0.00 |
Total from investment operations | 0.06 | 0.41 | (0.69) | 1.07 | 0.10 |
Distributions to shareholders from | |||||
Net investment income | (0.04) | (0.12) | (0.59) | (0.14) | (0.13) |
Net realized gains | 0.00 | (1.29) | (1.21) | 0.00 | (0.36) |
Total distributions to shareholders | (0.04) | (1.41) | (1.80) | (0.14) | (0.49) |
Net asset value, end of period | $1.91 | $1.89 | $2.89 | $5.38 | $4.45 |
Total return2 | 3.83% | 16.10% | (17.28)% | 24.34% | 3.30% |
Ratios to average net assets (annualized) | |||||
Gross expenses | 1.38% | 1.38% | 1.30% | 1.20% | 1.20% |
Net expenses | 0.94% | 0.94% | 0.94% | 0.94% | 0.94% |
Net investment income | 1.34% | 2.30% | 1.82% | 2.18% | 2.25% |
Supplemental data | |||||
Portfolio turnover rate | 80% | 48% | 51% | 55% | 77% |
Net assets, end of period (000s omitted) | $57,167 | $61,907 | $59,004 | $318,202 | $288,628 |
1 | Calculated based upon average shares outstanding |
2 | Performance figures of the Fund do not reflect fees and expenses charged pursuant to the terms of variable life insurance policies and variable annuity contracts. |
Gross unrealized gains | $12,154,856 |
Gross unrealized losses | (2,588,830) |
Net unrealized gains | $ 9,566,026 |
■ | 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) |
Quoted prices (Level 1) | Other significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | |
Assets | ||||
Investments in: | ||||
Common stocks | ||||
Australia | $ 1,613,148 | $ 0 | $0 | $ 1,613,148 |
Brazil | 0 | 1,310,331 | 0 | 1,310,331 |
Canada | 2,588,808 | 0 | 0 | 2,588,808 |
China | 6,735,399 | 0 | 0 | 6,735,399 |
Denmark | 0 | 1,649,650 | 0 | 1,649,650 |
France | 3,746,565 | 0 | 0 | 3,746,565 |
Germany | 98,844 | 4,408,084 | 0 | 4,506,928 |
Hong Kong | 1,882,257 | 0 | 0 | 1,882,257 |
India | 1,921,000 | 0 | 0 | 1,921,000 |
Ireland | 785,275 | 0 | 0 | 785,275 |
Israel | 1,879,480 | 0 | 0 | 1,879,480 |
Italy | 0 | 989,475 | 0 | 989,475 |
Japan | 0 | 8,668,516 | 0 | 8,668,516 |
Luxembourg | 663,089 | 0 | 0 | 663,089 |
Netherlands | 4,827,642 | 0 | 0 | 4,827,642 |
Norway | 0 | 2,203,938 | 0 | 2,203,938 |
Russia | 2,097,128 | 0 | 0 | 2,097,128 |
South Korea | 2,044,000 | 4,795,970 | 0 | 6,839,970 |
Switzerland | 0 | 2,244,525 | 0 | 2,244,525 |
Thailand | 646,320 | 0 | 0 | 646,320 |
United Kingdom | 9,770,362 | 0 | 0 | 9,770,362 |
United States | 5,478,285 | 0 | 0 | 5,478,285 |
Short-term investments | ||||
Investment companies | 1,508,148 | 0 | 0 | 1,508,148 |
Forward foreign currency contract | 0 | 34,629 | 0 | 34,629 |
Total assets | $48,285,750 | $26,305,118 | $0 | $74,590,868 |
Liabilitites | ||||
Forward foreign currency contract | $ 0 | $ 43,367 | $0 | $ 43,367 |
Total liabilities | $ 0 | $ 43,367 | $0 | $ 43,367 |
Average daily net assets | Management fee |
First $500 million | 0.800% |
Next $500 million | 0.750 |
Next $1 billion | 0.700 |
Next $2 billion | 0.675 |
Next $1 billion | 0.650 |
Next $5 billion | 0.640 |
Over $10 billion | 0.630 |
Counterparty | Gross amounts of assets in the Statement of Assets and Liabilities | Amounts subject to netting agreements | Collateral received | Net amount of assets |
Barclays Bank plc | $34,629 | $(34,629) | $0 | $0 |
Counterparty | Gross amounts of liabilities in the Statement of Assets and Liabilities | Amounts subject to netting agreements | Collateral pledged | Net amount of liabilities |
Barclays Bank plc | $43,367 | $(34,629) | $0 | $8,738 |
Year ended December 31 | ||
2020 | 2019 | |
Ordinary income | $1,781,504 | $ 9,446,993 |
Long-term capital gain | 0 | 26,961,358 |
Undistributed ordinary income | Unrealized gains | Capital loss carryforward |
$870,186 | $9,566,722 | $(9,359,593) |
Wells Fargo Variable Trust:
Creditable foreign taxes paid | Per share amount | Foreign income as % of ordinary income distributions |
$153,330 | $$0.0039 | 100% |
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 Chair, 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). Mr. Harris is a certified public accountant (inactive status). | CIGNA Corporation |
Judith M. Johnson (Born 1949) | Trustee, since 2008 | 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 (Emeritus), 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 |
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; Chair, 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. Interim President of the McKnight Foundation from January to September 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 |
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. |
Jeremy DePalma1 (Born 1974) | Treasurer, since 2012 | 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. |
Michelle Rhee (Born 1966) | Chief Legal Officer, since 2019 | Secretary of Wells Fargo Funds Management, LLC and Chief Legal Counsel of Wells Fargo Asset Management since 2018. Deputy General Counsel of Wells Fargo Bank, N.A. since 2020 and Assistant General Counsel of Wells Fargo Bank, N.A. from 2018 to 2020. 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. |
P.O. Box 219967
Kansas City, MO 64121-9967
AVT3/AR149 12-20
VT Omega Growth Fund
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Financial statements | |
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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 (unhedged) 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 2021. ICE Data Indices, LLC. All rights reserved. |
President
Wells Fargo Funds
Christopher J. Warner, CFA®‡
Expense ratios1 (%) | ||||||
Inception date | 1 year | 5 year | 10 year | Gross | Net 2 | |
Class 1 | 3-6-1997 | 43.41 | 21.91 | 16.40 | 0.82 | 0.75 |
Class 2 | 7-31-2002 | 43.18 | 21.63 | 16.12 | 1.07 | 1.00 |
Russell 3000® Growth Index3 | – | 38.26 | 20.67 | 16.93 | – | – |
Growth of $10,000 investment as of December 31, 20204 |
‡ | 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 April 30, 2021, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.75% for Class 1 and 1.00% for Class 2. 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. 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 | The Russell 3000® Growth Index measures the performance of those Russell 3000® Index companies with higher price/book ratios and higher forecasted growth values. You cannot invest directly in an index. |
4 | The chart compares the performance of Class 2 shares for the most recent ten years with the Russell 3000® Growth Index. The chart assumes a hypothetical $10,000 investment and reflects all operating expenses of the Fund but does not reflect fees and expenses charged pursuant to the terms of variable life insurance policies and variable annuity contracts. |
5 | Figures represent the percentage of the Fund's net assets. Holdings are subject to change and may have changed since the date specified. |
6 | Figures represent the percentage of the Fund's long-term investments. These amounts are subject to change and may have changed since the date specified. |
■ | The Fund outperformed its benchmark, the Russell 3000® Growth Index, for the 12-month period that ended December 31, 2020. |
■ | Stock selection in the information technology (IT) and consumer discretionary sectors contributed to the Fund’s results. |
■ | Non-ownership and select positions in IT, along with holdings in the materials sector, detracted from relative performance. |
Ten largest holdings (%) as of December 31, 20205 | |
Microsoft Corporation | 8.71 |
Amazon.com Incorporated | 8.25 |
Alphabet Incorporated Class A | 4.09 |
Visa Incorporated Class A | 3.21 |
PayPal Holdings Incorporated | 2.93 |
UnitedHealth Group Incorporated | 2.76 |
MercadoLibre Incorporated | 2.54 |
Chipotle Mexican Grill Incorporated | 2.44 |
ServiceNow Incorporated | 2.42 |
Align Technology Incorporated | 2.28 |
Sector allocation as of December 31, 20206 |
Beginning account value 7-1-2020 | Ending account value 12-31-2020 | Expenses paid during the period1 | Annualized net expense ratio | |
Class 1 | ||||
Actual | $1,000.00 | $1,283.91 | $4.31 | 0.75% |
Hypothetical (5% return before expenses) | $1,000.00 | $1,021.37 | $3.81 | 0.75% |
Class 2 | ||||
Actual | $1,000.00 | $1,283.54 | $5.74 | 1.00% |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.11 | $5.08 | 1.00% |
Shares | Value | ||||
Common stocks: 99.50% | |||||
Communication services: 10.34% | |||||
Entertainment: 3.28% | |||||
Netflix Incorporated † | 3,700 | 2,000,701 | |||
Spotify Technology SA † | 4,900 | 1,541,834 | |||
3,542,535 | |||||
Interactive media & services: 4.48% | |||||
Alphabet Incorporated Class A † | 2,520 | 4,416,653 | |||
Alphabet Incorporated Class C † | 239 | 418,699 | |||
4,835,352 | |||||
Media: 2.58% | |||||
IAC/InterActiveCorp † | 6,000 | 1,136,100 | |||
Match Group Incorporated † | 10,887 | 1,646,006 | |||
2,782,106 | |||||
Consumer discretionary: 17.05% | |||||
Auto components: 1.34% | |||||
Aptiv plc | 11,100 | 1,446,219 | |||
Automobiles: 0.83% | |||||
Ferrari NV | 3,900 | 895,128 | |||
Hotels, restaurants & leisure: 2.44% | |||||
Chipotle Mexican Grill Incorporated † | 1,900 | 2,634,749 | |||
Internet & direct marketing retail: 10.79% | |||||
Amazon.com Incorporated † | 2,735 | 8,907,704 | |||
MercadoLibre Incorporated † | 1,640 | 2,747,361 | |||
11,655,065 | |||||
Specialty retail: 1.65% | |||||
The Home Depot Incorporated | 6,700 | 1,779,654 | |||
Financials: 2.99% | |||||
Capital markets: 2.99% | |||||
Intercontinental Exchange Incorporated | 14,200 | 1,637,118 | |||
MarketAxess Holdings Incorporated | 2,800 | 1,597,568 | |||
3,234,686 | |||||
Health care: 18.09% | |||||
Biotechnology: 2.28% | |||||
Exact Sciences Corporation † | 13,800 | 1,828,362 | |||
Sarepta Therapeutics Incorporated † | 3,700 | 630,813 | |||
2,459,175 | |||||
Health care equipment & supplies: 9.06% | |||||
ABIOMED Incorporated † | 3,400 | 1,102,280 | |||
Alcon Incorporated † | 20,300 | 1,339,394 | |||
Align Technology Incorporated † | 4,600 | 2,458,148 | |||
DexCom Incorporated † | 4,500 | 1,663,740 |
Shares | Value | ||||
Health care equipment & supplies (continued) | |||||
Edwards Lifesciences Corporation † | 12,400 | $ 1,131,252 | |||
Intuitive Surgical Incorporated † | 2,550 | 2,086,155 | |||
9,780,969 | |||||
Health care providers & services: 5.29% | |||||
Chemed Corporation | 3,200 | 1,704,352 | |||
HealthEquity Incorporated † | 14,755 | 1,028,571 | |||
UnitedHealth Group Incorporated | 8,500 | 2,980,780 | |||
5,713,703 | |||||
Health care technology: 1.46% | |||||
Veeva Systems Incorporated Class A † | 5,800 | 1,579,050 | |||
Industrials: 6.08% | |||||
Aerospace & defense: 0.73% | |||||
HEICO Corporation | 5,900 | 781,160 | |||
Air freight & logistics: 1.06% | |||||
United Parcel Service Incorporated Class B | 6,800 | 1,145,120 | |||
Commercial services & supplies: 2.69% | |||||
Cintas Corporation | 3,600 | 1,272,456 | |||
Waste Connections Incorporated | 15,946 | 1,635,581 | |||
2,908,037 | |||||
Road & rail: 1.60% | |||||
Union Pacific Corporation | 8,300 | 1,728,226 | |||
Information technology: 42.13% | |||||
Communications equipment: 1.16% | |||||
Motorola Solutions Incorporated | 7,400 | 1,258,444 | |||
Electronic equipment, instruments & components: 1.21% | |||||
Zebra Technologies Corporation Class A † | 3,400 | 1,306,722 | |||
IT services: 22.10% | |||||
Black Knight Incorporated † | 21,200 | 1,873,020 | |||
EPAM Systems Incorporated † | 6,615 | 2,370,485 | |||
Euronet Worldwide Incorporated † | 5,900 | 855,028 | |||
Fiserv Incorporated † | 15,395 | 1,752,875 | |||
Global Payments Incorporated | 7,271 | 1,566,319 | |||
MongoDB Incorporated † | 4,900 | 1,759,296 | |||
PayPal Holdings Incorporated † | 13,500 | 3,161,700 | |||
Shopify Incorporated Class A † | 1,400 | 1,584,730 | |||
Square Incorporated Class A † | 11,200 | 2,437,568 | |||
StoneCo Limited Class A † | 17,900 | 1,502,168 | |||
Visa Incorporated Class A | 15,844 | 3,465,558 | |||
WEX Incorporated † | 7,512 | 1,528,917 | |||
23,857,664 | |||||
Software: 17.66% | |||||
Atlassian Corporation plc Class A † | 5,800 | 1,356,446 | |||
Autodesk Incorporated † | 5,800 | 1,770,972 | |||
Cadence Design Systems Incorporated † | 13,200 | 1,800,876 | |||
Microsoft Corporation | 42,300 | 9,408,365 |
Shares | Value | ||||
Software (continued) | |||||
ServiceNow Incorporated † | 4,750 | $ 2,614,543 | |||
Unity Software Incorporated †« | 8,762 | 1,344,704 | |||
Zoom Video Communications Incorporated † | 2,280 | 769,090 | |||
19,064,996 | |||||
Materials: 1.63% | |||||
Chemicals: 1.63% | |||||
The Sherwin-Williams Company | 2,390 | 1,756,435 | |||
Real estate: 1.19% | |||||
Equity REITs: 1.19% | |||||
SBA Communications Corporation | 4,570 | 1,289,334 | |||
Total Common stocks (Cost $44,132,171) | 107,434,529 |
Yield | |||||
Short-term investments: 1.41% | |||||
Investment companies: 1.41% | |||||
Securities Lending Cash Investments LLC ♠∩∞ | 0.16% | 1,315,192 | 1,315,192 | ||
Wells Fargo Government Money Market Fund Select Class ♠∞ | 0.03 | 206,090 | 206,090 | ||
Total Short-term investments (Cost $1,521,282) | 1,521,282 | ||||
Total investments in securities (Cost $45,653,453) | 100.91% | 108,955,811 | |||
Other assets and liabilities, net | (0.91) | (983,744) | |||
Total net assets | 100.00% | $ 107,972,067 |
† | Non-income-earning security |
« | All or a portion of this security is on loan. |
♠ | The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940. |
∩ | The investment is a non-registered investment company purchased with cash collateral received from securities on loan. |
∞ | The rate represents the 7-day annualized yield at period end. |
Abbreviations: | |
REIT | Real estate investment trust |
Value, beginning of period | Purchases | Sales proceeds | Net realized gains (losses) | Net change in unrealized gains (losses) | Value, end of period | % of net assets | Shares, end of period | Income from affiliated securities | ||||
Short-term investments | ||||||||||||
Investment companies | ||||||||||||
Securities Lending Cash Investments LLC | $1,089,526 | $ 7,711,671 | $ (7,486,413) | $408 | $0 | $ 1,315,192 | 1,315,192 | $ 2,331# | ||||
Wells Fargo Government Money Market Fund Select Class | 515,647 | 19,321,852 | (19,631,409) | 0 | 0 | 206,090 | 206,090 | 4,385 | ||||
$408 | $0 | $1,521,282 | 1.41% | $6,716 |
# | Amount shown represents income before fees and rebates. |
Assets | |
Investments in unaffiliated securities (including $1,277,484 of securities loaned), at value (cost $44,132,171) | $ 107,434,529 |
Investments in affiliated securites, at value (cost $1,521,282) | 1,521,282 |
Receivable for investments sold | 1,662,134 |
Receivable for dividends | 7,255 |
Receivable for securities lending income, net | 623 |
Receivable for Fund shares sold | 111 |
Prepaid expenses and other assets | 1,583 |
Total assets | 110,627,517 |
Liabilities | |
Payable upon receipt of securities loaned | 1,315,192 |
Payable for investments purchased | 1,174,838 |
Payable for Fund shares redeemed | 75,412 |
Management fee payable | 53,150 |
Distribution fee payable | 13,216 |
Administration fees payable | 7,886 |
Trustees’ fees and expenses payable | 4,278 |
Accrued expenses and other liabilities | 11,478 |
Total liabilities | 2,655,450 |
Total net assets | $107,972,067 |
Net assets consist of | |
Paid-in capital | $ 33,276,331 |
Total distributable earnings | 74,695,736 |
Total net assets | $107,972,067 |
Computation of net asset value per share | |
Net assets – Class 1 | $ 50,122,455 |
Shares outstanding – Class 11 | 1,185,608 |
Net asset value per share – Class 1 | $42.28 |
Net assets – Class 2 | $ 57,849,612 |
Shares outstanding – Class 21 | 1,430,699 |
Net asset value per share – Class 2 | $40.43 |
1 | The Fund has an unlimited number of authorized shares |
Investment income | |
Dividends (net of foreign withholdings taxes of $6,293) | $ 448,180 |
Income from affiliated securities | 7,208 |
Total investment income | 455,388 |
Expenses | |
Management fee | 566,524 |
Administration fees | |
Class 1 | 33,235 |
Class 2 | 42,301 |
Distribution fee | |
Class 2 | 124,913 |
Custody and accounting fees | 14,780 |
Professional fees | 50,389 |
Shareholder report expenses | 22,545 |
Trustees’ fees and expenses | 19,862 |
Other fees and expenses | 8,035 |
Total expenses | 882,584 |
Less: Fee waivers and/or expense reimbursements | |
Fund-level | (38,105) |
Class 1 | (4,132) |
Net expenses | 840,347 |
Net investment loss | (384,959) |
Realized and unrealized gains (losses) on investments | |
Net realized gains on | |
Unaffiliated securities | 11,839,689 |
Affiliated securities | 408 |
Net realized gains on investments | 11,840,097 |
Net change in unrealized gains (losses) on investments | 23,208,430 |
Net realized and unrealized gains (losses) on investments | 35,048,527 |
Net increase in net assets resulting from operations | $34,663,568 |
Year ended December 31, 2020 | Year ended December 31, 2019 | |||
Operations | ||||
Net investment loss | $ (384,959) | $ (200,889) | ||
Net realized gains on investments | 11,840,097 | 7,507,542 | ||
Net change in unrealized gains (losses) on investments | 23,208,430 | 20,470,814 | ||
Net increase in net assets resulting from operations | 34,663,568 | 27,777,467 | ||
Distributions to shareholders from | ||||
Net investment income and net realized gains | ||||
Class 1 | (3,187,408) | (4,663,133) | ||
Class 2 | (4,101,867) | (6,195,458) | ||
Total distributions to shareholders | (7,289,275) | (10,858,591) | ||
Capital share transactions | Shares | Shares | ||
Proceeds from shares sold | ||||
Class 1 | 76,567 | 2,678,319 | 73,112 | 2,241,178 |
Class 2 | 102,999 | 3,489,523 | 114,807 | 3,406,537 |
6,167,842 | 5,647,715 | |||
Reinvestment of distributions | ||||
Class 1 | 92,792 | 3,187,408 | 152,191 | 4,663,133 |
Class 2 | 124,829 | 4,101,867 | 210,801 | 6,195,458 |
7,289,275 | 10,858,591 | |||
Payment for shares redeemed | ||||
Class 1 | (238,236) | (7,901,466) | (228,659) | (6,950,692) |
Class 2 | (461,624) | (15,801,257) | (583,624) | (17,173,879) |
(23,702,723) | (24,124,571) | |||
Net decrease in net assets resulting from capital share transactions | (10,245,606) | (7,618,265) | ||
Total increase in net assets | 17,128,687 | 9,300,611 | ||
Net assets | ||||
Beginning of period | 90,843,380 | 81,542,769 | ||
End of period | $107,972,067 | $ 90,843,380 |
Year ended December 31 | |||||
Class 1 | 2020 | 2019 | 2018 | 2017 | 2016 |
Net asset value, beginning of period | $31.89 | $26.27 | $28.99 | $22.20 | $23.30 |
Net investment income (loss) | (0.07) | (0.03) 1 | (0.03) 1 | (0.02) 1 | 0.10 |
Net realized and unrealized gains (losses) on investments | 13.27 | 9.69 | 0.62 | 7.68 | 0.05 |
Total from investment operations | 13.20 | 9.66 | 0.59 | 7.66 | 0.15 |
Distributions to shareholders from | |||||
Net investment income | 0.00 | 0.00 | 0.00 | (0.06) | 0.00 |
Net realized gains | (2.81) | (4.04) | (3.31) | (0.81) | (1.25) |
Total distributions to shareholders | (2.81) | (4.04) | (3.31) | (0.87) | (1.25) |
Net asset value, end of period | $42.28 | $31.89 | $26.27 | $28.99 | $22.20 |
Total return2 | 43.41% | 37.39% | 0.52% | 34.95% | 0.77% |
Ratios to average net assets (annualized) | |||||
Gross expenses | 0.80% | 0.82% | 0.81% | 0.82% | 0.82% |
Net expenses | 0.75% | 0.75% | 0.75% | 0.75% | 0.75% |
Net investment income (loss) | (0.27)% | (0.08)% | (0.10)% | (0.07)% | 0.26% |
Supplemental data | |||||
Portfolio turnover rate | 24% | 31% | 46% | 67% | 90% |
Net assets, end of period (000s omitted) | $50,122 | $40,001 | $33,043 | $38,687 | $33,373 |
1 | Calculated based upon average shares outstanding |
2 | Performance figures of the Fund do not reflect fees and expenses charged pursuant to the terms of variable life insurance policies and variable annuity contracts. |
Year ended December 31 | |||||
Class 2 | 2020 | 2019 | 2018 | 2017 | 2016 |
Net asset value, beginning of period | $30.55 | $25.23 | $27.91 | $21.38 | $22.54 |
Net investment income (loss) | (0.17) 1 | (0.10) 1 | (0.11) | (0.08) | 0.00 1,2 |
Net realized and unrealized gains (losses) on investments | 12.73 | 9.29 | 0.61 | 7.39 | 0.09 |
Total from investment operations | 12.56 | 9.19 | 0.50 | 7.31 | 0.09 |
Distributions to shareholders from | |||||
Net investment income | 0.00 | 0.00 | 0.00 | (0.00) 2 | 0.00 |
Net realized gains | (2.68) | (3.87) | (3.18) | (0.78) | (1.25) |
Total distributions to shareholders | (2.68) | (3.87) | (3.18) | (0.78) | (1.25) |
Net asset value, end of period | $40.43 | $30.55 | $25.23 | $27.91 | $21.38 |
Total return3 | 43.18% | 37.04% | 0.28% | 34.60% | 0.52% |
Ratios to average net assets (annualized) | |||||
Gross expenses | 1.04% | 1.06% | 1.06% | 1.07% | 1.07% |
Net expenses | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | (0.52)% | (0.33)% | (0.35)% | (0.31)% | 0.01% |
Supplemental data | |||||
Portfolio turnover rate | 24% | 31% | 46% | 67% | 90% |
Net assets, end of period (000s omitted) | $57,850 | $50,843 | $48,500 | $54,334 | $42,684 |
1 | Calculated based upon average shares outstanding |
2 | Amount is less than $0.005. |
3 | Performance figures of the Fund do not reflect fees and expenses charged pursuant to the terms of variable life insurance policies and variable annuity contracts. |
Gross unrealized gains | $63,183,872 |
Gross unrealized losses | 0 |
Net unrealized gains | $63,183,872 |
■ | 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) |
Quoted prices (Level 1) | Other significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | |
Assets | ||||
Investments in: | ||||
Common stocks | ||||
Communication services | $ 11,159,993 | $0 | $0 | $ 11,159,993 |
Consumer discretionary | 18,410,815 | 0 | 0 | 18,410,815 |
Financials | 3,234,686 | 0 | 0 | 3,234,686 |
Health care | 19,532,897 | 0 | 0 | 19,532,897 |
Industrials | 6,562,543 | 0 | 0 | 6,562,543 |
Information technology | 45,487,826 | 0 | 0 | 45,487,826 |
Materials | 1,756,435 | 0 | 0 | 1,756,435 |
Real estate | 1,289,334 | 0 | 0 | 1,289,334 |
Short-term investments | ||||
Investment companies | 1,521,282 | 0 | 0 | 1,521,282 |
Total assets | $108,955,811 | $0 | $0 | $108,955,811 |
Average daily net assets | Management fee |
First $500 million | 0.600% |
Next $500 million | 0.550 |
Next $1 billion | 0.500 |
Next $2 billion | 0.475 |
Next $1 billion | 0.450 |
Next $5 billion | 0.440 |
Over $10 billion | 0.430 |
Counterparty | Value of securities on loan | Collateral received1 | Net amount |
Barclays Capital Inc. | $1,277,484 | $(1,277,484) | $0 |
Year ended December 31 | ||
2020 | 2019 | |
Ordinary income | $ 728,859 | $1,104,228 |
Long-term capital gain | 6,560,416 | 9,754,363 |
Undistributed ordinary income | Undistributed long-term gain | Unrealized gains |
$1,131,692 | $10,381,397 | $63,183,872 |
Wells Fargo Variable Trust:
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 Chair, 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). Mr. Harris is a certified public accountant (inactive status). | CIGNA Corporation |
Judith M. Johnson (Born 1949) | Trustee, since 2008 | 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 (Emeritus), 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 |
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; Chair, 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. Interim President of the McKnight Foundation from January to September 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 |
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. |
Jeremy DePalma1 (Born 1974) | Treasurer, since 2012 | 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. |
Michelle Rhee (Born 1966) | Chief Legal Officer, since 2019 | Secretary of Wells Fargo Funds Management, LLC and Chief Legal Counsel of Wells Fargo Asset Management since 2018. Deputy General Counsel of Wells Fargo Bank, N.A. since 2020 and Assistant General Counsel of Wells Fargo Bank, N.A. from 2018 to 2020. 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. |
P.O. Box 219967
Kansas City, MO 64121-9967
AVT5/AR151 12-20
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Financial statements | |
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27 |
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 (unhedged) 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 2021. ICE Data Indices, LLC. All rights reserved. |
President
Wells Fargo Funds
Christopher J. Miller, CFA®‡
Expense ratios1 (%) | ||||||
Inception date | 1 year | 5 year | 10 year | Gross | Net 2 | |
Class 13 | 8-26-2011 | 21.32 | 15.12 | 12.05 | 0.85 | 0.75 |
Class 2 | 5-8-1992 | 21.00 | 14.83 | 11.79 | 1.10 | 1.00 |
Russell 3000® Index4 | – | 20.89 | 15.43 | 13.79 | – | – |
Growth of $10,000 investment as of December 31, 20205 |
‡ | CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. |
* | Mr. Gunderson became a portfolio manager of the Fund on February 1, 2021. |
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 April 30, 2021, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.75% for Class 1 and 1.00% for Class 2. 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. 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 Class 1 shares prior to their inception reflects the performance of the Class 2 shares, and includes the higher expenses applicable to the Class 2 shares. If these expenses had not been included, returns for the Class 1 shares would be higher. |
4 | The Russell 3000® Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market. You cannot invest directly in an index. |
5 | The chart compares the performance of Class 2 shares for the most recent ten years with the Russell 3000® Index. The chart assumes a hypothetical $10,000 investment and reflects all operating expenses of the Fund but does not reflect fees and expenses charged pursuant to the terms of variable life insurance policies and variable annuity contracts. |
6 | Figures represent the percentage of the Fund's net assets. Holdings are subject to change and may have changed since the date specified. |
7 | Figures represent the percentage of the Fund's long-term investments. These amounts are subject to change and may have changed since the date specified. |
■ | The Fund outperformed its benchmark, the Russell 3000® Index, for the 12-month period that ended December 31, 2020. |
■ | The Fund’s holdings in the financials and consumer staples sectors and an underexposure to the energy sector were the largest contributors to relative performance during the period. |
■ | The Fund’s holdings in the consumer discretionary, industrials, and materials sectors were the largest detractors from relative performance. |
Ten largest holdings (%) as of December 31, 20206 | |
Apple Incorporated | 4.30 |
Alphabet Incorporated Class C | 4.23 |
Amazon.com Incorporated | 3.93 |
Salesforce.com Incorporated | 2.82 |
Texas Instruments Incorporated | 2.70 |
MasterCard Incorporated Class A | 2.69 |
Facebook Incorporated Class A | 2.64 |
Carlisle Companies Incorporated | 2.16 |
Burlington Stores Incorporated | 2.08 |
UnitedHealth Group Incorporated | 1.94 |
Sector allocation as of December 31, 20207 |
Beginning account value 7-1-2020 | Ending account value 12-31-2020 | Expenses paid during the period1 | Annualized net expense ratio | |
Class 1 | ||||
Actual | $1,000.00 | $1,275.18 | $4.29 | 0.75% |
Hypothetical (5% return before expenses) | $1,000.00 | $1,021.37 | $3.81 | 0.75% |
Class 2 | ||||
Actual | $1,000.00 | $1,273.03 | $5.71 | 1.00% |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.11 | $5.08 | 1.00% |
Shares | Value | ||||
Common stocks: 98.82% | |||||
Communication services: 8.57% | |||||
Interactive media & services: 6.87% | |||||
Alphabet Incorporated Class C † | 4,811 | 8,428,295 | |||
Facebook Incorporated Class A † | 19,265 | 5,262,427 | |||
13,690,722 | |||||
Wireless telecommunication services: 1.70% | |||||
T-Mobile US Incorporated † | 25,113 | 3,386,488 | |||
Consumer discretionary: 10.58% | |||||
Automobiles: 1.90% | |||||
General Motors Company | 90,905 | 3,785,284 | |||
Internet & direct marketing retail: 3.93% | |||||
Amazon.com Incorporated † | 2,409 | 7,845,944 | |||
Multiline retail: 1.19% | |||||
Dollar General Corporation | 11,259 | 2,367,768 | |||
Specialty retail: 3.56% | |||||
Burlington Stores Incorporated † | 15,845 | 4,144,260 | |||
Ulta Beauty Incorporated † | 10,285 | 2,953,441 | |||
7,097,701 | |||||
Consumer staples: 2.58% | |||||
Food & staples retailing: 1.69% | |||||
Sysco Corporation | 45,426 | 3,373,335 | |||
Household products: 0.89% | |||||
Church & Dwight Company Incorporated | 20,363 | 1,776,264 | |||
Financials: 7.76% | |||||
Capital markets: 5.05% | |||||
CME Group Incorporated | 9,198 | 1,674,496 | |||
Intercontinental Exchange Incorporated | 32,431 | 3,738,970 | |||
S&P Global Incorporated | 7,260 | 2,386,580 | |||
The Charles Schwab Corporation | 42,932 | 2,277,113 | |||
10,077,159 | |||||
Insurance: 2.71% | |||||
Chubb Limited | 15,671 | 2,412,080 | |||
Marsh & McLennan Companies Incorporated | 25,474 | 2,980,458 | |||
5,392,538 | |||||
Health care: 16.65% | |||||
Biotechnology: 1.18% | |||||
Alexion Pharmaceuticals Incorporated † | 15,026 | 2,347,662 | |||
Health care equipment & supplies: 6.27% | |||||
Align Technology Incorporated † | 4,904 | 2,620,600 | |||
Boston Scientific Corporation † | 82,387 | 2,961,813 |
Shares | Value | ||||
Health care equipment & supplies (continued) | |||||
LivaNova plc † | 57,276 | $ 3,792,244 | |||
Medtronic plc | 26,786 | 3,137,712 | |||
12,512,369 | |||||
Health care providers & services: 1.94% | |||||
UnitedHealth Group Incorporated | 11,065 | 3,880,274 | |||
Life sciences tools & services: 4.90% | |||||
Agilent Technologies Incorporated | 26,949 | 3,193,187 | |||
Bio-Rad Laboratories Incorporated Class A † | 5,290 | 3,083,753 | |||
Thermo Fisher Scientific Incorporated | 7,484 | 3,485,898 | |||
9,762,838 | |||||
Pharmaceuticals: 2.36% | |||||
Novartis AG ADR | 36,187 | 3,417,138 | |||
Viatris Incorporated † | 68,591 | 1,285,395 | |||
4,702,533 | |||||
Industrials: 15.41% | |||||
Aerospace & defense: 2.59% | |||||
MTU Aero Engines AG † | 10,132 | 2,641,099 | |||
Teledyne Technologies Incorporated † | 6,409 | 2,512,200 | |||
5,153,299 | |||||
Commercial services & supplies: 1.10% | |||||
Republic Services Incorporated | 22,786 | 2,194,292 | |||
Electrical equipment: 1.26% | |||||
AMETEK Incorporated | 20,806 | 2,516,278 | |||
Industrial conglomerates: 2.16% | |||||
Carlisle Companies Incorporated | 27,555 | 4,303,540 | |||
Machinery: 5.58% | |||||
Fortive Corporation | 27,148 | 1,922,621 | |||
Ingersoll Rand Incorporated † | 47,724 | 2,174,305 | |||
ITT Incorporated | 33,807 | 2,603,815 | |||
Otis Worldwide Corporation | 32,675 | 2,207,196 | |||
SPX Corporation † | 40,802 | 2,225,341 | |||
11,133,278 | |||||
Trading companies & distributors: 2.72% | |||||
Air Lease Corporation | 63,494 | 2,820,403 | |||
United Rentals Incorporated † | 11,226 | 2,603,422 | |||
5,423,825 | |||||
Information technology: 28.22% | |||||
Electronic equipment, instruments & components: 1.80% | |||||
Amphenol Corporation Class A | 27,433 | 3,587,413 | |||
IT services: 5.47% | |||||
Fidelity National Information Services Incorporated | 21,046 | 2,977,167 |
Shares | Value | ||||
IT services (continued) | |||||
Genpact Limited | 61,963 | $ 2,562,790 | |||
MasterCard Incorporated Class A | 15,043 | 5,369,448 | |||
10,909,405 | |||||
Semiconductors & semiconductor equipment: 4.59% | |||||
Marvell Technology Group Limited | 79,329 | 3,771,301 | |||
Texas Instruments Incorporated | 32,786 | 5,381,166 | |||
9,152,467 | |||||
Software: 12.06% | |||||
Fair Isaac Corporation † | 5,591 | 2,857,225 | |||
Palo Alto Networks Incorporated † | 9,694 | 3,445,151 | |||
Proofpoint Incorporated † | 21,500 | 2,932,815 | |||
RealPage Incorporated † | 36,678 | 3,199,789 | |||
Salesforce.com Incorporated † | 25,272 | 5,623,778 | |||
ServiceNow Incorporated † | 3,913 | 2,153,833 | |||
Workday Incorporated Class A † | 15,998 | 3,833,281 | |||
24,045,872 | |||||
Technology hardware, storage & peripherals: 4.30% | |||||
Apple Incorporated | 64,666 | 8,580,532 | |||
Materials: 2.59% | |||||
Chemicals: 1.84% | |||||
The Sherwin-Williams Company | 2,631 | 1,933,548 | |||
Westlake Chemical Corporation | 21,190 | 1,729,104 | |||
3,662,652 | |||||
Metals & mining: 0.75% | |||||
Steel Dynamics Incorporated | 40,843 | 1,505,881 | |||
Real estate: 6.46% | |||||
Equity REITs: 6.46% | |||||
American Tower Corporation | 13,470 | 3,023,476 | |||
Equinix Incorporated | 4,190 | 2,992,414 | |||
Sun Communities Incorporated | 22,564 | 3,428,600 | |||
VICI Properties Incorporated | 135,044 | 3,443,622 | |||
12,888,112 | |||||
Total Common stocks (Cost $119,001,384) | 197,055,725 |
Yield | |||||
Short-term investments: 1.09% | |||||
Investment companies: 1.09% | |||||
Wells Fargo Government Money Market Fund Select Class ♠∞ | 0.03% | 2,161,993 | 2,161,993 | ||
Total Short-term investments (Cost $2,161,993) | 2,161,993 | ||||
Total investments in securities (Cost $121,163,377) | 99.91% | 199,217,718 | |||
Other assets and liabilities, net | 0.09 | 186,039 | |||
Total net assets | 100.00% | $ 199,403,757 |
† | Non-income-earning security |
♠ | The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940. |
∞ | The rate represents the 7-day annualized yield at period end. |
Abbreviations: | |
ADR | American depositary receipt |
REIT | Real estate investment trust |
Value, beginning of period | Purchases | Sales proceeds | Net realized gains (losses) | Net change in unrealized gains (losses) | Value, end of period | % of net assets | Shares, end of period | Income from affiliated securities | |
Short-term investments | |||||||||
Investment companies | |||||||||
Wells Fargo Government Money Market Fund Select Class | $1,838,788 | $38,439,636 | $(38,116,431) | $0 | $0 | $2,161,993 | 1.09% | 2,161,993 | $7,558 |
Assets | |
Investments in unaffiliated securities, at value (cost $119,001,384) | $ 197,055,725 |
Investments in affiliated securites, at value (cost $2,161,993) | 2,161,993 |
Receivable for investments sold | 415,675 |
Receivable for dividends | 254,085 |
Receivable for Fund shares sold | 1,087 |
Prepaid expenses and other assets | 2,144 |
Total assets | 199,890,709 |
Liabilities | |
Payable for investments purchased | 230,757 |
Management fee payable | 108,530 |
Payable for Fund shares redeemed | 90,908 |
Distribution fee payable | 38,155 |
Administration fees payable | 14,553 |
Trustees’ fees and expenses payable | 3,796 |
Accrued expenses and other liabilities | 253 |
Total liabilities | 486,952 |
Total net assets | $199,403,757 |
Net assets consist of | |
Paid-in capital | $ 111,452,141 |
Total distributable earnings | 87,951,616 |
Total net assets | $199,403,757 |
Computation of net asset value per share | |
Net assets – Class 1 | $ 32,065,941 |
Shares outstanding – Class 11 | 1,087,825 |
Net asset value per share – Class 1 | $29.48 |
Net assets – Class 2 | $ 167,337,816 |
Shares outstanding – Class 21 | 5,647,513 |
Net asset value per share – Class 2 | $29.63 |
1 | The Fund has an unlimited number of authorized shares |
Investment income | |
Dividends (net of foreign withholdings taxes of $21,415) | $ 1,860,416 |
Income from affiliated securities | 7,558 |
Total investment income | 1,867,974 |
Expenses | |
Management fee | 1,230,264 |
Administration fees | |
Class 1 | 22,723 |
Class 2 | 117,878 |
Distribution fee | |
Class 2 | 367,721 |
Custody and accounting fees | 18,613 |
Professional fees | 48,348 |
Shareholder report expenses | 36,627 |
Trustees’ fees and expenses | 19,862 |
Other fees and expenses | 14,379 |
Total expenses | 1,876,415 |
Less: Fee waivers and/or expense reimbursements | |
Fund-level | (189,905) |
Net expenses | 1,686,510 |
Net investment income | 181,464 |
Realized and unrealized gains (losses) on investments | |
Net realized gains on investments | 9,938,608 |
Net change in unrealized gains (losses) on investments | 24,029,460 |
Net realized and unrealized gains (losses) on investments | 33,968,068 |
Net increase in net assets resulting from operations | $34,149,532 |
Year ended December 31, 2020 | Year ended December 31, 2019 | |||
Operations | ||||
Net investment income | $ 181,464 | $ 836,348 | ||
Net realized gains on investments | 9,938,608 | 13,216,674 | ||
Net change in unrealized gains (losses) on investments | 24,029,460 | 34,750,912 | ||
Net increase in net assets resulting from operations | 34,149,532 | 48,803,934 | ||
Distributions to shareholders from | ||||
Net investment income and net realized gains | ||||
Class 1 | (2,328,698) | (3,501,610) | ||
Class 2 | (11,686,840) | (17,537,462) | ||
Total distributions to shareholders | (14,015,538) | (21,039,072) | ||
Capital share transactions | Shares | Shares | ||
Proceeds from shares sold | ||||
Class 1 | 21,174 | 498,604 | 16,098 | 390,406 |
Class 2 | 123,816 | 3,170,894 | 117,672 | 3,032,567 |
3,669,498 | 3,422,973 | |||
Reinvestment of distributions | ||||
Class 1 | 98,715 | 2,328,698 | 141,137 | 3,501,610 |
Class 2 | 492,285 | 11,686,840 | 702,904 | 17,537,462 |
14,015,538 | 21,039,072 | |||
Payment for shares redeemed | ||||
Class 1 | (192,184) | (4,908,447) | (190,606) | (4,880,882) |
Class 2 | (899,151) | (22,533,873) | (797,590) | (20,455,623) |
(27,442,320) | (25,336,505) | |||
Net decrease in net assets resulting from capital share transactions | (9,757,284) | (874,460) | ||
Total increase in net assets | 10,376,710 | 26,890,402 | ||
Net assets | ||||
Beginning of period | 189,027,047 | 162,136,645 | ||
End of period | $199,403,757 | $189,027,047 |
Year ended December 31 | |||||
Class 1 | 2020 | 2019 | 2018 | 2017 | 2016 |
Net asset value, beginning of period | $26.56 | $22.76 | $27.05 | $24.60 | $25.00 |
Net investment income | 0.09 | 0.17 | 0.15 | 0.13 | 0.22 |
Net realized and unrealized gains (losses) on investments | 5.03 | 6.84 | (1.69) | 4.77 | 2.59 |
Total from investment operations | 5.12 | 7.01 | (1.54) | 4.90 | 2.81 |
Distributions to shareholders from | |||||
Net investment income | (0.19) | (0.15) | (0.12) | (0.25) | (0.60) |
Net realized gains | (2.01) | (3.06) | (2.63) | (2.20) | (2.61) |
Total distributions to shareholders | (2.20) | (3.21) | (2.75) | (2.45) | (3.21) |
Net asset value, end of period | $29.48 | $26.56 | $22.76 | $27.05 | $24.60 |
Total return1 | 21.32% | 31.81% | (6.93)% | 20.72% | 12.52% |
Ratios to average net assets (annualized) | |||||
Gross expenses | 0.86% | 0.85% | 0.84% | 0.86% | 0.85% |
Net expenses | 0.75% | 0.75% | 0.75% | 0.75% | 0.75% |
Net investment income | 0.31% | 0.67% | 0.52% | 0.43% | 0.65% |
Supplemental data | |||||
Portfolio turnover rate | 42% | 25% | 31% | 36% | 47% |
Net assets, end of period (000s omitted) | $32,066 | $30,811 | $27,165 | $33,843 | $33,035 |
1 | Performance figures of the Fund do not reflect fees and expenses charged pursuant to the terms of variable life insurance policies and variable annuity contracts. |
Year ended December 31 | |||||
Class 2 | 2020 | 2019 | 2018 | 2017 | 2016 |
Net asset value, beginning of period | $26.68 | $22.85 | $27.14 | $24.67 | $25.05 |
Net investment income | 0.03 | 0.11 | 0.08 | 0.06 | 0.13 |
Net realized and unrealized gains (losses) on investments | 5.05 | 6.86 | (1.69) | 4.79 | 2.63 |
Total from investment operations | 5.08 | 6.97 | (1.61) | 4.85 | 2.76 |
Distributions to shareholders from | |||||
Net investment income | (0.12) | (0.08) | (0.05) | (0.18) | (0.53) |
Net realized gains | (2.01) | (3.06) | (2.63) | (2.20) | (2.61) |
Total distributions to shareholders | (2.13) | (3.14) | (2.68) | (2.38) | (3.14) |
Net asset value, end of period | $29.63 | $26.68 | $22.85 | $27.14 | $24.67 |
Total return1 | 21.00% | 31.46% | (7.15)% | 20.44% | 12.23% |
Ratios to average net assets (annualized) | |||||
Gross expenses | 1.11% | 1.10% | 1.09% | 1.11% | 1.10% |
Net expenses | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income | 0.06% | 0.42% | 0.27% | 0.18% | 0.39% |
Supplemental data | |||||
Portfolio turnover rate | 42% | 25% | 31% | 36% | 47% |
Net assets, end of period (000s omitted) | $167,338 | $158,216 | $134,972 | $165,992 | $158,783 |
1 | Performance figures of the Fund do not reflect fees and expenses charged pursuant to the terms of variable life insurance policies and variable annuity contracts. |
Gross unrealized gains | $78,556,020 |
Gross unrealized losses | (1,301,460) |
Net unrealized gains | $77,254,560 |
■ | 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) |
Quoted prices (Level 1) | Other significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | |
Assets | ||||
Investments in: | ||||
Common stocks | ||||
Communication services | $ 17,077,210 | $ 0 | $0 | $ 17,077,210 |
Consumer discretionary | 21,096,697 | 0 | 0 | 21,096,697 |
Consumer staples | 5,149,599 | 0 | 0 | 5,149,599 |
Financials | 15,469,697 | 0 | 0 | 15,469,697 |
Health care | 33,205,676 | 0 | 0 | 33,205,676 |
Industrials | 28,083,413 | 2,641,099 | 0 | 30,724,512 |
Information technology | 56,275,689 | 0 | 0 | 56,275,689 |
Materials | 5,168,533 | 0 | 0 | 5,168,533 |
Real estate | 12,888,112 | 0 | 0 | 12,888,112 |
Short-term investments | ||||
Investment companies | 2,161,993 | 0 | 0 | 2,161,993 |
Total assets | $196,576,619 | $2,641,099 | $0 | $199,217,718 |
Average daily net assets | Management fee |
First $500 million | 0.700% |
Next $500 million | 0.675 |
Next $1 billion | 0.650 |
Next $2 billion | 0.625 |
Next $1 billion | 0.600 |
Next $5 billion | 0.590 |
Over $10 billion | 0.580 |
Year ended December 31 | ||
2020 | 2019 | |
Ordinary income | $ 3,149,628 | $ 590,956 |
Long-term capital gain | 10,865,910 | 20,448,116 |
Undistributed ordinary income | Undistributed long-term gain | Unrealized gains |
$155,608 | $10,546,453 | $77,254,560 |
Wells Fargo Variable Trust:
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 Chair, 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). Mr. Harris is a certified public accountant (inactive status). | CIGNA Corporation |
Judith M. Johnson (Born 1949) | Trustee, since 2008 | 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 (Emeritus), 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 |
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; Chair, 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. Interim President of the McKnight Foundation from January to September 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 |
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. |
Jeremy DePalma1 (Born 1974) | Treasurer, since 2012 | 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. |
Michelle Rhee (Born 1966) | Chief Legal Officer, since 2019 | Secretary of Wells Fargo Funds Management, LLC and Chief Legal Counsel of Wells Fargo Asset Management since 2018. Deputy General Counsel of Wells Fargo Bank, N.A. since 2020 and Assistant General Counsel of Wells Fargo Bank, N.A. from 2018 to 2020. 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. |
P.O. Box 219967
Kansas City, MO 64121-9967
AVT6/AR152 12-20
VT Small Cap Growth Fund
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Financial statements | |
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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 (unhedged) 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 2021. ICE Data Indices, LLC. All rights reserved. |
President
Wells Fargo Funds
Robert Gruendyke, CFA®‡†
David Nazaret, CFA®‡†
Thomas C. Ognar, CFA®‡
Expense ratios1 (%) | ||||||
Inception date | 1 year | 5 year | 10 year | Gross | Net 2 | |
Class 1 | 7-16-2010 | 58.09 | 22.35 | 15.11 | 0.94 | 0.94 |
Class 2 | 5-1-1995 | 57.78 | 22.03 | 14.83 | 1.19 | 1.19 |
Russell 2000® Growth Index3 | – | 34.63 | 16.36 | 13.48 | – | – |
Growth of $10,000 investment as of December 31, 20206 |
‡ | CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. |
† | Mr. Gruendyke and Mr. Nazaret became portfolio managers of the Fund on July 28, 2020. |
1 | Reflects the expense ratios as stated in the most recent prospectuses, which include the impact of 0.01% in acquired fund fees and expenses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report, which do not include acquired fund fees and expenses. |
2 | The manager has contractually committed through April 30, 2021, to waive fees and/or reimburse expenses to the extent necessary to cap total annual fund operating expenses after fee waivers at 0.95% for Class 1 and 1.20% for Class 2. 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. 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 | The Russell 2000® Growth Index measures the performance of those Russell 2000 companies with higher price/book ratios and higher forecasted growth values. You cannot invest directly in an index |
4 | The chart compares the performance of Class 2 shares for the most recent ten years with the Russell 2000® Growth Index. The chart assumes a hypothetical $10,000 investment and reflects all operating expenses of the Fund but does not reflect fees and expenses charged pursuant to the terms of variable life insurance policies and variable annuity contracts. |
5 | Figures represent the percentage of the Fund's net assets. Holdings are subject to change and may have changed since the date specified. |
6 | Figures represent the percentage of the Fund's long-term investments. These amounts are subject to change and may have changed since the date specified. |
■ | The Fund outperformed its benchmark, the Russell 2000® Growth Index, for the 12-month period that ended December 31, 2020. |
■ | Stocks within the health care, information technology (IT), and consumer discretionary sectors aided relative performance during the period. |
■ | The industrials sector hindered relative performance during the period. |
Ten largest holdings (%) as of December 31, 20205 | |
Q2 Holdings Incorporated | 3.08 |
Rapid7 Incorporated | 3.05 |
Casella Waste Systems Incorporated Class A | 2.68 |
ASGN Incorporated | 2.63 |
iRhythm Technologies Incorporated | 2.52 |
Kinsale Capital Group Incorporated | 2.44 |
SPS Commerce Incorporated | 2.42 |
Rexnord Corporation | 2.41 |
Shockwave Medical Incorporated | 2.00 |
Castle Biosciences Incorporated | 1.91 |
Sector allocation as of December 31, 20206 |
Beginning account value 7-1-2020 | Ending account value 12-31-2020 | Expenses paid during the period1 | Annualized net expense ratio | |
Class 1 | ||||
Actual | $1,000.00 | $1,434.56 | $5.66 | 0.92% |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.49 | $4.69 | 0.92% |
Class 2 | ||||
Actual | $1,000.00 | $1,431.90 | $7.17 | 1.17% |
Hypothetical (5% return before expenses) | $1,000.00 | $1,019.24 | $5.95 | 1.17% |
Shares | Value | ||||
Common stocks: 99.96% | |||||
Communication services: 1.66% | |||||
Interactive media & services: 0.26% | |||||
EverQuote Incorporated Class A † | 30,300 | 1,131,705 | |||
Media: 1.40% | |||||
Cardlytics Incorporated † | 41,770 | 5,963,503 | |||
Consumer discretionary: 13.96% | |||||
Auto components: 1.19% | |||||
Fox Factory Holding Corporation † | 47,910 | 5,064,566 | |||
Hotels, restaurants & leisure: 2.47% | |||||
Papa John's International Incorporated | 53,420 | 4,532,687 | |||
Wingstop Incorporated | 45,569 | 6,040,171 | |||
10,572,858 | |||||
Household durables: 1.60% | |||||
Purple Innovation Incorporated † | 207,128 | 6,822,796 | |||
Internet & direct marketing retail: 1.91% | |||||
CarParts.com Incorporated †« | 164,310 | 2,035,801 | |||
Fiverr International Limited † | 31,450 | 6,135,895 | |||
8,171,696 | |||||
Leisure products: 1.41% | |||||
YETI Holdings Incorporated † | 87,696 | 6,004,545 | |||
Specialty retail: 2.95% | |||||
Boot Barn Holdings Incorporated † | 155,240 | 6,731,206 | |||
Leslie's Incorporated †« | 41,492 | 1,151,403 | |||
Lithia Motors Incorporated Class A | 16,220 | 4,747,107 | |||
12,629,716 | |||||
Textiles, apparel & luxury goods: 2.43% | |||||
Crocs Incorporated † | 111,180 | 6,966,539 | |||
Deckers Outdoor Corporation † | 11,980 | 3,435,624 | |||
10,402,163 | |||||
Consumer staples: 3.96% | |||||
Beverages: 0.96% | |||||
Celsius Holdings Incorporated † | 81,600 | 4,105,296 | |||
Food & staples retailing: 0.46% | |||||
The Chef's Warehouse Incorporated † | 76,470 | 1,964,514 | |||
Food products: 2.54% | |||||
Freshpet Incorporated † | 55,007 | 7,810,444 | |||
Vital Farms Incorporated †« | 120,749 | 3,056,157 | |||
10,866,601 |
Shares | Value | ||||
Financials: 5.61% | |||||
Capital markets: 1.60% | |||||
Assetmark Financial Holdings † | 90,215 | $ 2,183,203 | |||
Stifel Financial Corporation | 91,935 | 4,639,040 | |||
6,822,243 | |||||
Consumer finance: 0.95% | |||||
LendingTree Incorporated † | 14,878 | 4,073,448 | |||
Insurance: 3.06% | |||||
Goosehead Insurance Incorporated Class A | 21,407 | 2,670,737 | |||
Kinsale Capital Group Incorporated | 52,074 | 10,421,570 | |||
13,092,307 | |||||
Health care: 32.24% | |||||
Biotechnology: 9.67% | |||||
Arcutis Biotherapeutics Incorporated † | 139,346 | 3,919,803 | |||
Arena Pharmaceuticals Incorporated † | 38,920 | 2,990,224 | |||
Biohaven Pharmaceutical Holding Company † | 19,280 | 1,652,489 | |||
CareDx Incorporated † | 49,284 | 3,570,626 | |||
Chemocentryx Incorporated † | 19,100 | 1,182,672 | |||
Deciphera Pharmaceuticals Incorporated † | 29,100 | 1,660,737 | |||
Emergent BioSolutions Incorporated † | 19,370 | 1,735,552 | |||
Fate Therapeutics Incorporated † | 25,860 | 2,351,450 | |||
Halozyme Therapeutics Incorporated † | 147,340 | 6,292,891 | |||
Invitae Corporation †« | 47,160 | 1,971,760 | |||
Natera Incorporated † | 64,811 | 6,449,991 | |||
Vericel Corporation † | 244,890 | 7,562,203 | |||
41,340,398 | |||||
Health care equipment & supplies: 10.54% | |||||
Acutus Medical Incorporated †« | 81,266 | 2,341,273 | |||
iRhythm Technologies Incorporated † | 45,376 | 10,763,641 | |||
Mesa Laboratories Incorporated | 6,660 | 1,909,022 | |||
Orthopediatrics Corporation † | 83,001 | 3,423,791 | |||
Outset Medical Incorporated † | 32,743 | 1,861,112 | |||
Pulmonx Corporation † | 48,323 | 3,335,253 | |||
Shockwave Medical Incorporated † | 82,546 | 8,561,671 | |||
SI-BONE Incorporated † | 165,298 | 4,942,410 | |||
Silk Road Medical Incorporated † | 31,310 | 1,971,904 | |||
Tandem Diabetes Care Incorporated † | 27,380 | 2,619,718 | |||
Vapotherm Incorporated †« | 124,031 | 3,331,473 | |||
45,061,268 | |||||
Health care providers & services: 3.62% | |||||
Addus Homecare Corporation † | 62,330 | 7,298,220 | |||
Castle Biosciences Incorporated † | 121,918 | 8,186,794 | |||
15,485,014 | |||||
Health care technology: 2.63% | |||||
Inspire Medical Systems Incorporated † | 29,540 | 5,556,179 | |||
Phreesia Incorporated † | 104,796 | 5,686,231 | |||
11,242,410 |
Shares | Value | ||||
Life sciences tools & services: 4.00% | |||||
Adaptive Biotechnologies Corporation † | 31,431 | $ 1,858,515 | |||
Codexis Incorporated † | 359,567 | 7,849,348 | |||
Neogenomics Incorporated † | 137,462 | 7,400,954 | |||
17,108,817 | |||||
Pharmaceuticals: 1.78% | |||||
Pacira Pharmaceuticals Incorporated † | 92,690 | 5,546,570 | |||
Revance Therapeutics Incorporated † | 71,800 | 2,034,812 | |||
7,581,382 | |||||
Industrials: 13.88% | |||||
Aerospace & defense: 2.96% | |||||
Kratos Defense & Security Solutions Incorporated † | 212,830 | 5,837,927 | |||
Mercury Systems Incorporated † | 77,278 | 6,805,101 | |||
12,643,028 | |||||
Building products: 0.12% | |||||
The AZEK Company Incorporated † | 12,973 | 498,812 | |||
Commercial services & supplies: 2.68% | |||||
Casella Waste Systems Incorporated Class A † | 185,090 | 11,466,326 | |||
Construction & engineering: 0.29% | |||||
Construction Partners Incorporated Class A † | 42,600 | 1,240,086 | |||
Electrical equipment: 0.52% | |||||
Bloom Energy Corporation Class A † | 76,900 | 2,203,954 | |||
Machinery: 2.41% | |||||
Rexnord Corporation | 261,050 | 10,308,865 | |||
Professional services: 2.63% | |||||
ASGN Incorporated † | 134,541 | 11,238,206 | |||
Road & rail: 1.12% | |||||
Marten Transport Limited | 35,264 | 607,599 | |||
Saia Incorporated † | 23,092 | 4,175,034 | |||
4,782,633 | |||||
Trading companies & distributors: 1.15% | |||||
SiteOne Landscape Supply Incorporated † | 31,070 | 4,928,634 | |||
Information technology: 26.49% | |||||
Electronic equipment, instruments & components: 1.90% | |||||
Novanta Incorporated † | 68,790 | 8,132,354 | |||
IT services: 2.83% | |||||
Endava plc Sponsored ADR † | 64,634 | 4,960,660 | |||
EVO Payments Incorporated Class A † | 224,401 | 6,061,071 | |||
LiveRamp Holdings Incorporated † | 14,770 | 1,081,016 | |||
12,102,747 | |||||
Semiconductors & semiconductor equipment: 3.66% | |||||
Allegro MicroSystems Incorporated † | 100,816 | 2,687,755 | |||
Diodes Incorporated † | 73,090 | 5,152,845 |
Shares | Value | ||||
Semiconductors & semiconductor equipment (continued) | |||||
Semtech Corporation † | 86,450 | $ 6,232,181 | |||
Silicon Laboratories Incorporated † | 12,370 | 1,575,196 | |||
15,647,977 | |||||
Software: 18.10% | |||||
8x8 Incorporated † | 68,700 | 2,368,089 | |||
Envestnet Incorporated † | 90,251 | 7,426,755 | |||
Everbridge Incorporated † | 26,890 | 4,008,492 | |||
Jamf Holding Corporation † | 61,058 | 1,826,855 | |||
Mimecast Limited † | 69,860 | 3,970,842 | |||
Q2 Holdings Incorporated † | 104,196 | 13,183,920 | |||
Rapid7 Incorporated † | 144,418 | 13,020,727 | |||
Sprout Social Incorporated Class A † | 138,439 | 6,286,515 | |||
SPS Commerce Incorporated † | 95,274 | 10,345,804 | |||
Sumo Logic Incorporated †« | 122,630 | 3,504,765 | |||
Talend SA ADR † | 178,299 | 6,835,984 | |||
Vertex Incorporated Class A † | 60,355 | 2,103,372 | |||
Workiva Incorporated † | 26,800 | 2,455,416 | |||
77,337,536 | |||||
Real estate: 1.58% | |||||
Equity REITs: 1.58% | |||||
Community Healthcare Trust Incorporated | 69,380 | 3,268,492 | |||
QTS Realty Trust Incorporated Class A | 56,570 | 3,500,552 | |||
6,769,044 | |||||
Utilities: 0.58% | |||||
Independent power & renewable electricity producers: 0.58% | |||||
Sunnova Energy International Incorporated † | 54,724 | 2,469,694 | |||
Total Common stocks (Cost $250,565,537) | 427,277,142 |
Yield | |||||
Short-term investments: 3.23% | |||||
Investment companies: 3.23% | |||||
Securities Lending Cash Investments LLC ♠∩∞ | 0.16% | 13,231,250 | 13,231,250 | ||
Wells Fargo Government Money Market Fund Select Class ♠∞ | 0.03 | 555,598 | 555,598 | ||
Total Short-term investments (Cost $13,786,848) | 13,786,848 | ||||
Total investments in securities (Cost $264,352,385) | 103.19% | 441,063,990 | |||
Other assets and liabilities, net | (3.19) | (13,619,832) | |||
Total net assets | 100.00% | $ 427,444,158 |
† | Non-income-earning security |
« | All or a portion of this security is on loan. |
♠ | The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940. |
∩ | The investment is a non-registered investment company purchased with cash collateral received from securities on loan. |
∞ | The rate represents the 7-day annualized yield at period end. |
Abbreviations: | |
ADR | American depositary receipt |
REIT | Real estate investment trust |
Value, beginning of period | Purchases | Sales proceeds | Net realized gains (losses) | Net change in unrealized gains (losses) | Value, end of period | % of net assets | Shares, end of period | Income from affiliated securities | ||||
Short-term investments | ||||||||||||
Investment companies | ||||||||||||
Securities Lending Cash Investments LLC | $17,154,220 | $112,768,399 | $(116,692,047) | $ 1,535 | $ (857) | $ 13,231,250 | 13,231,250 | $ 71,956# | ||||
Wells Fargo Government Money Market Fund Select Class | 3,229,069 | 89,079,408 | (91,752,879) | 0 | 0 | 555,598 | 555,598 | 15,289 | ||||
$1,535 | $(857) | $13,786,848 | 3.23% | $87,245 |
# | Amount shown represents income before fees and rebates. |
Assets | |
Investments in unaffiliated securities (including $12,750,308 of securities loaned), at value (cost $250,565,537) | $ 427,277,142 |
Investments in affiliated securites, at value (cost $13,786,848) | 13,786,848 |
Receivable for investments sold | 452,456 |
Receivable for Fund shares sold | 192,797 |
Receivable for dividends | 26,707 |
Receivable for securities lending income, net | 17,916 |
Prepaid expenses and other assets | 26,986 |
Total assets | 441,780,852 |
Liabilities | |
Payable upon receipt of securities loaned | 13,231,250 |
Payable for Fund shares redeemed | 668,586 |
Management fee payable | 312,310 |
Distribution fee payable | 89,715 |
Administration fees payable | 31,231 |
Trustees’ fees and expenses payable | 3,602 |
Total liabilities | 14,336,694 |
Total net assets | $427,444,158 |
Net assets consist of | |
Paid-in capital | $ 200,922,446 |
Total distributable earnings | 226,521,712 |
Total net assets | $427,444,158 |
Computation of net asset value per share | |
Net assets – Class 1 | $ 35,127,886 |
Shares outstanding – Class 11 | 2,288,174 |
Net asset value per share – Class 1 | $15.35 |
Net assets – Class 2 | $ 392,316,272 |
Shares outstanding – Class 21 | 26,644,978 |
Net asset value per share – Class 2 | $14.72 |
1 | The Fund has an unlimited number of authorized shares |
Investment income | |
Dividends | $ 400,866 |
Securities lending income from affiliates, net | 133,168 |
Income from affiliated securities | 15,289 |
Total investment income | 549,323 |
Expenses | |
Management fee | 2,541,973 |
Administration fees | |
Class 1 | 20,560 |
Class 2 | 233,637 |
Distribution fee | |
Class 2 | 727,135 |
Custody and accounting fees | 35,078 |
Professional fees | 42,194 |
Shareholder report expenses | 41,957 |
Trustees’ fees and expenses | 19,862 |
Other fees and expenses | 12,983 |
Total expenses | 3,675,379 |
Less: Fee waivers and/or expense reimbursements | |
Fund-level | (372) |
Net expenses | 3,675,007 |
Net investment loss | (3,125,684) |
Realized and unrealized gains (losses) on investments | |
Net realized gains on | |
Unaffiliated securities | 53,244,180 |
Affiliated securities | 1,535 |
Net realized gains on investments | 53,245,715 |
Net change in unrealized gains (losses) on | |
Unaffiliated securities | 109,024,225 |
Affiliated securities | (857) |
Net change in unrealized gains (losses) on investments | 109,023,368 |
Net realized and unrealized gains (losses) on investments | 162,269,083 |
Net increase in net assets resulting from operations | $159,143,399 |
Year ended December 31, 2020 | Year ended December 31, 2019 | |||
Operations | ||||
Net investment loss | $ (3,125,684) | $ (2,708,593) | ||
Net realized gains on investments | 53,245,715 | 18,188,979 | ||
Net change in unrealized gains (losses) on investments | 109,023,368 | 48,624,852 | ||
Net increase in net assets resulting from operations | 159,143,399 | 64,105,238 | ||
Distributions to shareholders from | ||||
Net investment income and net realized gains | ||||
Class 1 | (1,435,682) | (3,689,450) | ||
Class 2 | (16,630,208) | (44,225,338) | ||
Total distributions to shareholders | (18,065,890) | (47,914,788) | ||
Capital share transactions | Shares | Shares | ||
Proceeds from shares sold | ||||
Class 1 | 604,357 | 6,902,098 | 343,664 | 3,528,410 |
Class 2 | 3,286,731 | 35,875,297 | 1,600,764 | 15,682,418 |
42,777,395 | 19,210,828 | |||
Reinvestment of distributions | ||||
Class 1 | 131,233 | 1,435,682 | 358,896 | 3,689,450 |
Class 2 | 1,582,322 | 16,630,208 | 4,458,199 | 44,225,338 |
18,065,890 | 47,914,788 | |||
Payment for shares redeemed | ||||
Class 1 | (675,964) | (7,532,393) | (523,347) | (5,516,594) |
Class 2 | (5,426,711) | (59,526,674) | (4,754,197) | (48,055,795) |
(67,059,067) | (53,572,389) | |||
Net increase (decrease) in net assets resulting from capital share transactions | (6,215,782) | 13,553,227 | ||
Total increase in net assets | 134,861,727 | 29,743,677 | ||
Net assets | ||||
Beginning of period | 292,582,431 | 262,838,754 | ||
End of period | $427,444,158 | $292,582,431 |
Year ended December 31 | |||||
Class 1 | 2020 | 2019 | 2018 | 2017 | 2016 |
Net asset value, beginning of period | $10.29 | $9.66 | $10.43 | $8.51 | $8.70 |
Net investment loss | (0.09) | (0.07) 1 | (0.05) | (0.04) | (0.01) 1 |
Net realized and unrealized gains (losses) on investments | 5.80 | 2.51 | 0.40 | 2.24 | 0.65 |
Total from investment operations | 5.71 | 2.44 | 0.35 | 2.20 | 0.64 |
Distributions to shareholders from | |||||
Net realized gains | (0.65) | (1.81) | (1.12) | (0.28) | (0.83) |
Net asset value, end of period | $15.35 | $10.29 | $9.66 | $10.43 | $8.51 |
Total return2 | 58.09% | 25.31% | 1.48% | 26.14% | 8.10% |
Ratios to average net assets (annualized) | |||||
Gross expenses | 0.93% | 0.93% | 0.92% | 0.94% | 0.94% |
Net expenses | 0.93% | 0.93% | 0.92% | 0.94% | 0.94% |
Net investment loss | (0.76)% | (0.69)% | (0.59)% | (0.65)% | (0.10)% |
Supplemental data | |||||
Portfolio turnover rate | 51% | 62% | 68% | 72% | 89% |
Net assets, end of period (000s omitted) | $35,128 | $22,925 | $19,801 | $22,591 | $20,554 |
1 | Calculated based upon average shares outstanding |
2 | Performance figures of the Fund do not reflect fees and expenses charged pursuant to the terms of variable life insurance policies and variable annuity contracts. |
Year ended December 31 | |||||
Class 2 | 2020 | 2019 | 2018 | 2017 | 2016 |
Net asset value, beginning of period | $9.91 | $9.38 | $10.18 | $8.33 | $8.56 |
Net investment loss | (0.11) | (0.09) | (0.09) | (0.09) | (0.03) |
Net realized and unrealized gains (losses) on investments | 5.57 | 2.43 | 0.41 | 2.22 | 0.63 |
Total from investment operations | 5.46 | 2.34 | 0.32 | 2.13 | 0.60 |
Distributions to shareholders from | |||||
Net realized gains | (0.65) | (1.81) | (1.12) | (0.28) | (0.83) |
Net asset value, end of period | $14.72 | $9.91 | $9.38 | $10.18 | $8.33 |
Total return1 | 57.78% | 24.83% | 1.20% | 25.86% | 7.75% |
Ratios to average net assets (annualized) | |||||
Gross expenses | 1.18% | 1.18% | 1.17% | 1.19% | 1.19% |
Net expenses | 1.18% | 1.18% | 1.17% | 1.19% | 1.19% |
Net investment loss | (1.00)% | (0.95)% | (0.84)% | (0.90)% | (0.35)% |
Supplemental data | |||||
Portfolio turnover rate | 51% | 62% | 68% | 72% | 89% |
Net assets, end of period (000s omitted) | $392,316 | $269,657 | $243,038 | $238,460 | $202,718 |
1 | Performance figures of the Fund do not reflect fees and expenses charged pursuant to the terms of variable life insurance policies and variable annuity contracts. |
Gross unrealized gains | $177,877,643 |
Gross unrealized losses | (1,442,997) |
Net unrealized gains | $176,434,646 |
■ | 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) |
Quoted prices (Level 1) | Other significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total | |
Assets | ||||
Investments in: | ||||
Common stocks | ||||
Communication services | $ 7,095,208 | $0 | $0 | $ 7,095,208 |
Consumer discretionary | 59,668,340 | 0 | 0 | 59,668,340 |
Consumer staples | 16,936,411 | 0 | 0 | 16,936,411 |
Financials | 23,987,998 | 0 | 0 | 23,987,998 |
Health care | 137,819,289 | 0 | 0 | 137,819,289 |
Industrials | 59,310,544 | 0 | 0 | 59,310,544 |
Information technology | 113,220,614 | 0 | 0 | 113,220,614 |
Real estate | 6,769,044 | 0 | 0 | 6,769,044 |
Utilities | 2,469,694 | 0 | 0 | 2,469,694 |
Short-term investments | ||||
Investment companies | 13,786,848 | 0 | 0 | 13,786,848 |
Total assets | $441,063,990 | $0 | $0 | $441,063,990 |
Average daily net assets | Management fee |
First $500 million | 0.800% |
Next $500 million | 0.750 |
Next $1 billion | 0.700 |
Next $1 billion | 0.675 |
Next $2 billion | 0.650 |
Next $5 billion | 0.640 |
Over $10 billion | 0.630 |
Counterparty | Value of securities on loan | Collateral received1 | Net amount |
Bank of America Securities Incorporated | $4,559,850 | $(4,559,850) | $0 |
Barclays Capital Incorporated | 1,243,538 | (1,243,538) | 0 |
Deutsche Bank Securities Incorporated | 139,672 | (139,672) | 0 |
ING Financial Markets LLC | 403,025 | (403,025) | 0 |
Morgan Stanley & Company LLC | 5,511,113 | (5,511,113) | 0 |
National Financial Services LLC | 893,110 | (893,110) | 0 |
Year ended December 31 | ||
2020 | 2019 | |
Ordinary income | $ 0 | $ 1,567,204 |
Long-term capital gain | 18,065,890 | 46,347,584 |
Undistributed ordinary income | Undistributed long-term gain | Unrealized gains |
$5,641,030 | $44,446,845 | $176,434,646 |
Wells Fargo Variable Trust:
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 Chair, 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). Mr. Harris is a certified public accountant (inactive status). | CIGNA Corporation |
Judith M. Johnson (Born 1949) | Trustee, since 2008 | 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 (Emeritus), 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 |
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; Chair, 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. Interim President of the McKnight Foundation from January to September 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 |
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. |
Jeremy DePalma1 (Born 1974) | Treasurer, since 2012 | 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. |
Michelle Rhee (Born 1966) | Chief Legal Officer, since 2019 | Secretary of Wells Fargo Funds Management, LLC and Chief Legal Counsel of Wells Fargo Asset Management since 2018. Deputy General Counsel of Wells Fargo Bank, N.A. since 2020 and Assistant General Counsel of Wells Fargo Bank, N.A. from 2018 to 2020. 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. |
P.O. Box 219967
Kansas City, MO 64121-9967
AVT7/AR153 12-20
ITEM 2. CODE OF ETHICS
(a) As of the end of the period, covered by the report, Wells Fargo Variable Trust has adopted a code of ethics that applies to its President and Treasurer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
(c) During the period covered by this report, there were no amendments to the provisions of the code of ethics adopted in Item 2(a) above.
(d) During the period covered by this report, there were no implicit or explicit waivers to the provisions of the code of ethics adopted in Item 2(a) above.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
The Board of Trustees of Wells Fargo Variable Trust has determined that Judith Johnson is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mrs. Johnson is independent for purposes of Item 3 of Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
(a), (b), (c), (d) The following table presents aggregate fees billed in each of the last two fiscal years for services rendered to the Registrant by the Registrant’s principal accountant. These fees were billed to the registrant and were approved by the Registrant’s audit committee.
Fiscal year ended December 31, 2020 | Fiscal year ended December 31, 2019 | |||||||
Audit fees | $ | 192,340 | $ | 188,560 | ||||
Audit-related fees | — | — | ||||||
Tax fees (1) | 16,910 | 16,305 | ||||||
All other fees | — | — | ||||||
|
|
|
| |||||
$ | 209,250 | $ | 204,865 | |||||
|
|
|
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(1) | Tax fees consist of fees for tax compliance, tax advice, tax planning and excise tax. |
(e) The Chair of the Audit Committees is authorized to pre-approve: (1) audit services to the mutual funds of the Wells Fargo Variable Trust; (2) non-audit tax or compliance consulting or training services provided to the Wells Fargo Multi-Sector Income Fund by the independent auditors (“Auditors”) if the fees for any particular engagement are not anticipated to exceed $50,000; and (3) non-audit tax or compliance consulting or training services provided by the Auditors to a Wells Fargo Multi-Sector Income Fund’s investment adviser and its controlling entities (where pre-approval is required because the engagement relates directly to the operations and financial reporting of the Wells Fargo Multi-Sector Income Fund) if the fee to the Auditors for any particular engagement is not anticipated to exceed $50,000. For any such pre-approval sought from the Chair, Management shall prepare a brief description of the proposed services. If the Chair approves of such service, he or she shall sign the statement prepared by Management. Such written statement shall be presented to the full Committees at their next regularly scheduled meetings.
(f) Not applicable
(g) Not applicable
(h) Not applicable
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable.
ITEM 6. INVESTMENTS
A Portfolio of Investments for each series of Wells Fargo Variable 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 MANAGEMENT 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.
ITEM 11. CONTROLS AND PROCEDURES
(a) The President and Treasurer have concluded that Wells Fargo Variable 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) Code of Ethics. |
(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. |
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 Variable Trust
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By: /s/ Andrew Owen | ||
Andrew Owen | ||
President
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Date: February 25, 2021 |
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 Variable Trust
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By: /s/ Andrew Owen |
Andrew Owen |
President
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Date: February 25, 2021
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By: /s/ Jeremy DePalma |
Jeremy DePalma |
Treasurer
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Date: February 25, 2021 |