UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-09255
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 VT Small Cap Growth Fund.
Date of reporting period: June 30, 2021
ITEM 1. REPORT TO STOCKHOLDERS
2 | |
4 | |
6 | |
7 | |
Financial statements | |
11 | |
12 | |
13 | |
14 | |
15 | |
20 | |
Board considerations | |
24 | |
27 | |
32 |
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
Investment objective | The Fund seeks long-term capital appreciation. |
Manager | Wells Fargo Funds Management, LLC |
Subadviser | Wells Capital Management, LLC |
Portfolio managers | Michael T. Smith, CFA®‡, Christopher J. Warner, CFA®‡ |
Average annual total returns (%) as of June 30, 2021 | ||||||
Expense ratios1 (%) | ||||||
Inception date | 1 year | 5 year | 10 year | Gross | Net 2 | |
Class 2 | 5-8-1992 | 47.59 | 24.14 | 16.34 | 1.14 | 1.14 |
Russell 2500™ Growth Index3 | – | 49.63 | 20.68 | 14.83 | – | – |
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, 2022, 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 shares. 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 2500™ 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. |
‡ | CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. |
Ten largest holdings (%) as of June 30, 20211 | |
MercadoLibre Incorporated | 2.72 |
MongoDB Incorporated | 2.63 |
Five9 Incorporated | 2.30 |
Avalara Incorporated | 2.27 |
Chipotle Mexican Grill Incorporated | 2.20 |
Twilio Incorporated Class A | 2.18 |
Align Technology Incorporated | 2.08 |
Black Knight Incorporated | 2.08 |
Generac Holdings Incorporated | 2.07 |
Crowdstrike Holdings Incorporated Class A | 2.05 |
1 | Figures represent the percentage of the Fund's net assets. Holdings are subject to change and may have changed since the date specified. |
Sector allocation as of June 30, 20211 |
1 | 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. |
Beginning account value 1-1-2021 | Ending account value 6-30-2021 | Expenses paid during the period1 | Annualized net expense ratio | |
Class 2 | ||||
Actual | $1,000.00 | $1,017.65 | $5.65 | 1.13% |
Hypothetical (5% return before expenses) | $1,000.00 | $1,019.19 | $5.66 | 1.13% |
Shares | Value | ||||
Common stocks: 97.73% | |||||
Communication services: 5.46% | |||||
Interactive media & services: 3.86% | |||||
Bumble Incorporated Class A † | 34,000 | $ 1,958,400 | |||
IAC/InterActiveCorp | 16,272 | 2,508,654 | |||
Vimeo Incorporated † | 49,217 | 2,411,633 | |||
ZoomInfo Technologies Incorporated † | 50,500 | 2,634,585 | |||
9,513,272 | |||||
Media: 1.60% | |||||
Magnite Incorporated † | 57,600 | 1,949,184 | |||
Match Group Incorporated † | 12,400 | 1,999,500 | |||
3,948,684 | |||||
Consumer discretionary: 11.96% | |||||
Diversified consumer services: 2.39% | |||||
Chegg Incorporated † | 50,600 | 4,205,366 | |||
Mister Car Wash Incorporated † | 78,346 | 1,686,789 | |||
5,892,155 | |||||
Hotels, restaurants & leisure: 3.53% | |||||
Chipotle Mexican Grill Incorporated † | 3,500 | 5,426,190 | |||
Domino's Pizza Incorporated | 6,994 | 3,262,631 | |||
8,688,821 | |||||
Internet & direct marketing retail: 4.44% | |||||
Etsy Incorporated † | 20,611 | 4,242,568 | |||
MercadoLibre Incorporated † | 4,303 | 6,703,170 | |||
10,945,738 | |||||
Leisure products: 1.60% | |||||
Callaway Golf Company † | 117,110 | 3,950,120 | |||
Financials: 3.12% | |||||
Capital markets: 1.53% | |||||
MarketAxess Holdings Incorporated | 8,100 | 3,755,079 | |||
Consumer finance: 0.66% | |||||
LendingTree Incorporated † | 7,700 | 1,631,476 | |||
Insurance: 0.93% | |||||
Goosehead Insurance Incorporated Class A | 18,024 | 2,294,455 | |||
Health care: 29.74% | |||||
Biotechnology: 6.21% | |||||
CRISPR Therapeutics AG † | 9,027 | 1,461,381 | |||
Deciphera Pharmaceuticals Incorporated † | 6,335 | 231,924 | |||
Mirati Therapeutics Incorporated † | 9,300 | 1,502,229 | |||
Natera Incorporated † | 36,323 | 4,123,750 | |||
ORIC Pharmaceuticals Incorporated † | 41,640 | 736,612 | |||
Turning Point Therapeutics Incorporated † | 17,837 | 1,391,643 | |||
Twist Bioscience Corporation † | 14,510 | 1,933,458 |
Shares | Value | ||||
Biotechnology (continued) | |||||
Zai Lab Limited ADR † | 17,112 | $ 3,028,653 | |||
Zentalis Pharmaceuticals Incorporated † | 16,800 | 893,760 | |||
15,303,410 | |||||
Health care equipment & supplies: 10.12% | |||||
ABIOMED Incorporated † | 5,800 | 1,810,238 | |||
Align Technology Incorporated † | 8,400 | 5,132,400 | |||
DexCom Incorporated † | 9,200 | 3,928,400 | |||
Heska Corporation † | 7,538 | 1,731,705 | |||
Inari Medical Incorporated † | 43,600 | 4,067,008 | |||
Insulet Corporation † | 12,199 | 3,348,747 | |||
Shockwave Medical Incorporated † | 25,952 | 4,923,873 | |||
24,942,371 | |||||
Health care providers & services: 8.16% | |||||
Amedisys Incorporated † | 12,254 | 3,001,372 | |||
Chemed Corporation | 6,500 | 3,084,250 | |||
Guardant Health Incorporated † | 29,200 | 3,626,348 | |||
HealthEquity Incorporated † | 43,183 | 3,475,368 | |||
Oak Street Health Incorporated † | 55,824 | 3,269,612 | |||
Option Care Health Incorporated † | 167,900 | 3,671,973 | |||
20,128,923 | |||||
Health care technology: 1.01% | |||||
Doximity Incorporated Class A †« | 21,851 | 1,271,728 | |||
Schrodinger Incorporated † | 16,100 | 1,217,321 | |||
2,489,049 | |||||
Life sciences tools & services: 4.24% | |||||
10x Genomics Incorporated Class A † | 22,300 | 4,366,786 | |||
Berkeley Lights Incorporated † | 49,328 | 2,210,388 | |||
Bio-Rad Laboratories Incorporated Class A † | 6,000 | 3,865,740 | |||
10,442,914 | |||||
Industrials: 13.64% | |||||
Aerospace & defense: 2.82% | |||||
Axon Enterprise Incorporated † | 15,846 | 2,801,573 | |||
Teledyne Technologies Incorporated † | 9,900 | 4,146,417 | |||
6,947,990 | |||||
Building products: 1.78% | |||||
Trex Company Incorporated † | 43,000 | 4,395,030 | |||
Commercial services & supplies: 1.93% | |||||
Casella Waste Systems Incorporated Class A † | 75,119 | 4,764,798 | |||
Electrical equipment: 2.07% | |||||
Generac Holdings Incorporated † | 12,300 | 5,106,345 | |||
Machinery: 0.28% | |||||
Desktop Metal Incorporated †« | 58,700 | 675,050 | |||
Professional services: 1.63% | |||||
Clarivate plc † | 145,811 | 4,014,177 |
Shares | Value | ||||
Road & rail: 1.59% | |||||
Saia Incorporated † | 18,700 | $ 3,917,463 | |||
Trading companies & distributors: 1.54% | |||||
SiteOne Landscape Supply Incorporated † | 22,461 | 3,801,749 | |||
Information technology: 33.81% | |||||
Electronic equipment, instruments & components: 1.11% | |||||
Novanta Incorporated † | 20,300 | 2,735,628 | |||
IT services: 15.54% | |||||
Black Knight Incorporated † | 65,800 | 5,131,084 | |||
EPAM Systems Incorporated † | 6,619 | 3,382,044 | |||
Globant SA † | 19,600 | 4,295,928 | |||
Marqeta Incorporated †« | 14,014 | 393,373 | |||
MongoDB Incorporated † | 17,900 | 6,471,208 | |||
Paysafe Limited †« | 223,300 | 2,704,163 | |||
Shift4 Payments Incorporated Class A † | 29,500 | 2,764,740 | |||
StoneCo Limited Class A † | 66,619 | 4,467,470 | |||
Twilio Incorporated Class A † | 13,598 | 5,359,788 | |||
WNS Holdings Limited ADR † | 41,800 | 3,338,566 | |||
38,308,364 | |||||
Semiconductors & semiconductor equipment: 4.96% | |||||
Enphase Energy Incorporated † | 24,000 | 4,407,120 | |||
MKS Instruments Incorporated | 25,900 | 4,608,905 | |||
Universal Display Corporation | 14,400 | 3,201,553 | |||
12,217,578 | |||||
Software: 12.20% | |||||
Avalara Incorporated † | 34,600 | 5,598,280 | |||
Bill.com Holdings Incorporated † | 25,666 | 4,701,498 | |||
Crowdstrike Holdings Incorporated Class A † | 20,100 | 5,051,331 | |||
Elastic NV † | 34,100 | 4,970,416 | |||
Five9 Incorporated † | 30,918 | 5,670,052 | |||
Lightspeed POS Incorporated † | 48,700 | 4,071,807 | |||
30,063,384 | |||||
Total Common stocks (Cost $153,839,196) | 240,874,023 |
Yield | |||||
Short-term investments: 5.14% | |||||
Investment companies: 5.14% | |||||
Securities Lending Cash Investments LLC ♠∩∞ | 0.03% | 4,735,575 | 4,735,575 | ||
Wells Fargo Government Money Market Fund Select Class ♠∞ | 0.03 | 7,920,281 | 7,920,281 | ||
Total Short-term investments (Cost $12,655,856) | 12,655,856 | ||||
Total investments in securities (Cost $166,495,052) | 102.87% | 253,529,879 | |||
Other assets and liabilities, net | (2.87) | (7,064,044) | |||
Total net assets | 100.00% | $246,465,835 |
† | 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 |
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 | $3,816,800 | $40,557,494 | $(39,638,719) | $0 | $0 | $ 4,735,575 | 4,735,575 | $ 1,202# | ||||
Wells Fargo Government Money Market Fund Select Class | 3,400,578 | 29,518,500 | (24,998,797) | 0 | 0 | 7,920,281 | 7,920,281 | 400 | ||||
$0 | $0 | $12,655,856 | 5.14% | $1,602 |
# | Amount shown represents income before fees and rebates. |
Assets | |
Investments in unaffiliated securities (including $4,574,169 of securities loaned), at value (cost $153,839,196) | $ 240,874,023 |
Investments in affiliated securites, at value (cost $12,655,856) | 12,655,856 |
Receivable for Fund shares sold | 104,428 |
Receivable for investments sold | 77,401 |
Receivable for dividends | 23,422 |
Receivable for securities lending income, net | 4,145 |
Prepaid expenses and other assets | 2,713 |
Total assets | 253,741,988 |
Liabilities | |
Payable upon receipt of securities loaned | 4,735,575 |
Payable for investments purchased | 2,196,703 |
Management fee payable | 145,134 |
Payable for Fund shares redeemed | 114,476 |
Distribution fee payable | 48,237 |
Administration fee payable | 15,481 |
Trustees’ fees and expenses payable | 1,980 |
Accrued expenses and other liabilities | 18,567 |
Total liabilities | 7,276,153 |
Total net assets | $246,465,835 |
Net assets consist of | |
Paid-in capital | $ 105,983,444 |
Total distributable earnings | 140,482,391 |
Total net assets | $246,465,835 |
Computation of net asset value per share | |
Net assets – Class 2 | $ 246,465,835 |
Share outstanding – Class 21 | 4,970,456 |
Net asset value per share – Class 2 | $49.59 |
1 | The Fund has an unlimited number of authorized shares |
Investment income | |
Dividends | $ 95,621 |
Securities lending income from affiliates, net | 20,395 |
Income from affiliated securities | 400 |
Total investment income | 116,416 |
Expenses | |
Management fee | 895,834 |
Administration fee – Class 2 | 95,556 |
Distribution fee – Class 2 | 298,422 |
Custody and accounting fees | 11,321 |
Professional fees | 22,370 |
Shareholder report expenses | 12,596 |
Trustees’ fees and expenses | 9,398 |
Other fees and expenses | 3,207 |
Total expenses | 1,348,704 |
Net investment loss | (1,232,288) |
Realized and unrealized gains (losses) on investments | |
Net realized gains on investments | 36,917,723 |
Net change in unrealized gains (losses) on investments | (31,694,025) |
Net realized and unrealized gains (losses) on investments | 5,223,698 |
Net increase in net assets resulting from operations | $ 3,991,410 |
Six months ended June 30, 2021 (unaudited) | Year ended December 31, 2020 | |||
Operations | ||||
Net investment loss | $ (1,232,288) | $ (1,764,482) | ||
Net realized gains on investments | 36,917,723 | 17,877,734 | ||
Net change in unrealized gains (losses) on investments | (31,694,025) | 82,373,027 | ||
Net increase in net assets resulting from operations | 3,991,410 | 98,486,279 | ||
Distributions to shareholders from | ||||
Net investment income and net realized gains – Class 2 | 0 | (16,114,396) | ||
Capital share transactions | Shares | Shares | ||
Proceeds from shares sold – Class 2 | 285,002 | 13,849,511 | 674,102 | 24,912,455 |
Reinvestment of distributions – Class 2 | 0 | 0 | 468,578 | 16,114,396 |
Payment for shares redeemed – Class 2 | (567,549) | (27,328,730) | (1,018,571) | (35,934,160) |
Net increase (decrease) in net assets resulting from capital share transactions | (13,479,219) | 5,092,691 | ||
Total increase (decrease) in net assets | (9,487,809) | 87,464,574 | ||
Net assets | ||||
Beginning of period | 255,953,644 | 168,489,070 | ||
End of period | $246,465,835 | $255,953,644 |
Year ended December 31 | ||||||
Class 2 | Six months ended June 30, 2021 (unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 |
Net asset value, beginning of period | $48.73 | $32.85 | $26.14 | $31.74 | $25.91 | $25.99 |
Net investment loss | (0.25) | (0.34) | (0.25) | (0.17) | (0.20) | (0.13) |
Net realized and unrealized gains (losses) on investments | 1.11 | 19.54 | 10.47 | (1.39) | 7.60 | 2.00 |
Total from investment operations | 0.86 | 19.20 | 10.22 | (1.56) | 7.40 | 1.87 |
Distributions to shareholders from | ||||||
Net realized gains | 0.00 | (3.32) | (3.51) | (4.04) | (1.57) | (1.95) |
Net asset value, end of period | $49.59 | $48.73 | $32.85 | $26.14 | $31.74 | $25.91 |
Total return1 | 1.76% | 62.65% | 39.02% | (7.06)% | 29.13% | 7.65% |
Ratios to average net assets (annualized) | ||||||
Gross expenses | 1.13% | 1.14% | 1.16% | 1.16% | 1.16% | 1.18% |
Net expenses | 1.13% | 1.14% | 1.15% | 1.15% | 1.15% | 1.15% |
Net investment loss | (1.03)% | (0.93)% | (0.79)% | (0.55)% | (0.68)% | (0.52)% |
Supplemental data | ||||||
Portfolio turnover rate | 29% | 47% | 71% | 60% | 75% | 85% |
Net assets, end of period (000s omitted) | $246,466 | $255,954 | $168,489 | $125,806 | $145,175 | $119,919 |
1 | Returns for periods of less than one year are not annualized. Returns do not reflect fees and expenses charged pursuant to the terms of variable life insurance policies and variable annuity contracts. |
Gross unrealized gains | $92,475,685 |
Gross unrealized losses | (5,283,374) |
Net unrealized gains | $87,192,311 |
■ | 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 | $ 13,461,956 | $0 | $0 | $ 13,461,956 |
Consumer discretionary | 29,476,834 | 0 | 0 | 29,476,834 |
Financials | 7,681,010 | 0 | 0 | 7,681,010 |
Health care | 73,306,667 | 0 | 0 | 73,306,667 |
Industrials | 33,622,602 | 0 | 0 | 33,622,602 |
Information technology | 83,324,954 | 0 | 0 | 83,324,954 |
Short-term investments | ||||
Investment companies | 12,655,856 | 0 | 0 | 12,655,856 |
Total assets | $253,529,879 | $0 | $0 | $253,529,879 |
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 Incorporated | $ 749,424 | $ (749,424) | $0 |
BNP Paribas Securities Corporation | 1,897,176 | (1,897,176) | 0 |
Morgan Stanley & Company LLC | 945,187 | (945,187) | 0 |
UBS Securities LLC | 982,382 | (982,382) | 0 |
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 DePalma (Born 1974) | Treasurer, since 2012 (for certain funds in the Fund Complex); since 2021 (for the remaining funds in the Fund Complex) | 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. |
■ | Information regarding the Transaction: information about the structure, financing sources and material terms and conditions of the Transaction, including the expected impact on the businesses conducted by the Advisers and by Wells Fargo Funds Distributor LLC, as the distributor of Fund shares. |
■ | Information regarding NewCo, GTCR and Reverence Capital: (i) information about NewCo, including information about its expected financial condition and access to capital, and senior leadership team; (ii) the experience of senior management at GTCR and Reverence Capital in acquiring portfolio companies; (iii) the plan to operationalize NewCo, including the transition of necessary infrastructure services through a transition services agreement with Wells Fargo under which Wells Fargo will continue to provide NewCo with certain services for a specified period of time after the closing; and (iv) information regarding regulatory matters, compliance, and risk management functions at NewCo, including resources to be dedicated thereto. |
■ | Impact of the Transaction on WFAM and Service Providers: (i) information regarding any changes to personnel and/or other resources of the Advisers as a result of the Transaction, including assurances regarding comparable and competitive compensation arrangements to attract and retain highly qualified personnel; and (ii) information about the organizational and operating structure with respect to NewCo, the Advisers and the Funds. |
■ | Impact of the Transaction on the Funds and their Shareholders: (i) information regarding anticipated benefits to the Funds as a result of the Transaction; (ii) a commitment that the Funds would not bear any expenses, directly or indirectly, in connection with the Transaction; (iii) confirmation that the Advisers intend to continue to manage the Funds in a manner consistent with each Fund’s current investment objectives and principal investments strategies; and (iv) a commitment that neither NewCo nor WFAM will take any steps that would impose any “unfair burden” (as that term is used in section 15(f)(1)(B) of the 1940 Act) on the Funds as a result of the Transaction. |
P.O. Box 219967
Kansas City, MO 64121-9967
SVT1/SAR138 06-21
VT Index Asset Allocation Fund
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Financial statements | |
28 | |
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Board considerations | |
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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
Investment objective | The Fund seeks long-term total return, consisting of capital appreciation and current income. |
Manager | Wells Fargo Funds Management, LLC |
Subadviser | Wells Capital Management, LLC |
Portfolio managers | Kandarp R. Acharya, CFA®‡, FRM, Petros N. Bocray, CFA®‡, FRM, Christian L. Chan, CFA®‡ |
Average annual total returns (%) as of June 30, 2021 | ||||||
Expense ratios1 (%) | ||||||
Inception date | 1 year | 5 year | 10 year | Gross | Net 2 | |
Class 2 | 4-15-1994 | 22.30 | 11.44 | 11.36 | 1.14 | 1.00 |
Index Asset Allocation Blended Index3 | – | 21.62 | 11.58 | 11.77 | – | – |
Bloomberg Barclays U.S. Treasury Index4 | – | -3.22 | 2.15 | 2.84 | – | – |
S&P 500 Index5 | – | 40.79 | 17.65 | 14.84 | – | – |
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, 2022, 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 shares. 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. Index Asset Allocation Blended Index is composed 60% of the S&P 500 Index and 40% of the Bloomberg Barclays U.S. Treasury Index. Prior to April 1, 2015, the Index Asset Allocation Blended Index was composed 60% of the S&P 500 Index and 40% of the Bloomberg Barclays U.S. Treasury 20+ Year 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. |
‡ | CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. |
Ten largest holdings (%) as of June 30, 20211 | |
Apple Incorporated | 3.57 |
Microsoft Corporation | 3.39 |
Amazon.com Incorporated | 2.45 |
Facebook Incorporated Class A | 1.38 |
Alphabet Incorporated Class A | 1.22 |
Alphabet Incorporated Class C | 1.18 |
Berkshire Hathaway Incorporated Class B | 0.87 |
Tesla Motors Incorporated | 0.87 |
Nvidia Corporation | 0.83 |
JPMorgan Chase & Company | 0.78 |
1 | Figures represent the percentage of the Fund's net assets. Holdings are subject to change and may have changed since the date specified. |
Sector allocation as of June 30, 20211 |
1 | 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. |
Allocation (%) as of June 30, 2021 | ||
Neutral allocation | Effective allocation1 | |
Stocks | 60 | 67 |
Bonds | 40 | 37 |
Effective cash | 0 | (4) |
1 | Effective allocation reflects the effect of the tactical futures overlay that may be in place. Effective cash, if any, represents the net offset to such future positions. Effective allocations are subject to change and may have changed since the date specified. |
Beginning account value 1-1-2021 | Ending account value 6-30-2021 | Expenses paid during the period1 | Annualized net expense ratio | |
Class 2 | ||||
Actual | $1,000.00 | $1,083.29 | $5.17 | 1.00% |
Hypothetical (5% return before expenses) | $1,000.00 | $1,019.84 | $5.01 | 1.00% |
Shares | Value | ||||
Common stocks: 60.08% | |||||
Communication services: 6.69% | |||||
Diversified telecommunication services: 0.74% | |||||
AT&T Incorporated | 9,646 | $ 277,612 | |||
Lumen Technologies Incorporated | 1,338 | 18,183 | |||
Verizon Communications Incorporated | 5,597 | 313,600 | |||
609,395 | |||||
Entertainment: 1.16% | |||||
Activision Blizzard Incorporated | 1,058 | 100,976 | |||
Electronic Arts Incorporated | 388 | 55,806 | |||
Live Nation Entertainment Incorporated † | 195 | 17,080 | |||
Netflix Incorporated † | 603 | 318,511 | |||
Take-Two Interactive Software Incorporated † | 156 | 27,615 | |||
The Walt Disney Company † | 2,454 | 431,340 | |||
951,328 | |||||
Interactive media & services: 3.87% | |||||
Alphabet Incorporated Class A † | 408 | 996,250 | |||
Alphabet Incorporated Class C † | 386 | 967,440 | |||
Facebook Incorporated Class A † | 3,251 | 1,130,405 | |||
Twitter Incorporated † | 1,086 | 74,728 | |||
3,168,823 | |||||
Media: 0.78% | |||||
Charter Communications Incorporated Class A † | 187 | 134,911 | |||
Comcast Corporation Class A | 6,208 | 353,980 | |||
Discovery Incorporated Class A † | 228 | 6,995 | |||
Discovery Incorporated Class C † | 406 | 11,766 | |||
DISH Network Corporation Class A † | 334 | 13,961 | |||
Fox Corporation Class A | 439 | 16,300 | |||
Fox Corporation Class B | 204 | 7,181 | |||
Interpublic Group of Companies Incorporated | 532 | 17,285 | |||
News Corporation Class A | 526 | 13,555 | |||
News Corporation Class B | 163 | 3,969 | |||
Omnicom Group Incorporated | 291 | 23,277 | |||
ViacomCBS Incorporated Class B | 810 | 36,612 | |||
639,792 | |||||
Wireless telecommunication services: 0.14% | |||||
T-Mobile US Incorporated † | 795 | 115,140 | |||
Consumer discretionary: 7.38% | |||||
Auto components: 0.09% | |||||
Aptiv plc † | 368 | 57,897 | |||
BorgWarner Incorporated | 325 | 15,776 | |||
73,673 | |||||
Automobiles: 1.09% | |||||
Ford Motor Company † | 5,318 | 79,025 | |||
General Motors Company † | 1,727 | 102,187 | |||
Tesla Motors Incorporated | 1,046 | 710,966 | |||
892,178 |
Shares | Value | ||||
Distributors: 0.08% | |||||
Genuine Parts Company | 195 | $ 24,662 | |||
LKQ Corporation † | 376 | 18,507 | |||
Pool Corporation | 55 | 25,226 | |||
68,395 | |||||
Hotels, restaurants & leisure: 1.21% | |||||
Booking Holdings Incorporated † | 56 | 122,533 | |||
Caesars Entertainment Incorporated † | 282 | 29,258 | |||
Carnival Corporation † | 1,073 | 28,284 | |||
Chipotle Mexican Grill Incorporated † | 38 | 58,913 | |||
Darden Restaurants Incorporated | 177 | 25,840 | |||
Domino's Pizza Incorporated | 53 | 24,724 | |||
Expedia Group Incorporated † | 190 | 31,105 | |||
Hilton Worldwide Holdings Incorporated † | 375 | 45,233 | |||
Las Vegas Sands Corporation † | 442 | 23,289 | |||
Marriott International Incorporated Class A † | 360 | 49,147 | |||
McDonald's Corporation | 1,010 | 233,300 | |||
MGM Resorts International | 548 | 23,372 | |||
Norwegian Cruise Line Holdings Limited † | 496 | 14,587 | |||
Penn National Gaming Incorporated † | 200 | 15,298 | |||
Royal Caribbean Cruises Limited † | 295 | 25,158 | |||
Starbucks Corporation | 1,599 | 178,784 | |||
Wynn Resorts Limited † | 142 | 17,367 | |||
Yum! Brands Incorporated | 402 | 46,242 | |||
992,434 | |||||
Household durables: 0.25% | |||||
D.R. Horton Incorporated | 444 | 40,124 | |||
Garmin Limited | 203 | 29,362 | |||
Leggett & Platt Incorporated | 179 | 9,274 | |||
Lennar Corporation Class A | 372 | 36,958 | |||
Mohawk Industries Incorporated † | 79 | 15,183 | |||
Newell Rubbermaid Incorporated | 510 | 14,010 | |||
NVR Incorporated † | 4 | 19,893 | |||
PulteGroup Incorporated | 357 | 19,481 | |||
Whirlpool Corporation | 84 | 18,314 | |||
202,599 | |||||
Internet & direct marketing retail: 2.57% | |||||
Amazon.com Incorporated † | 583 | 2,005,613 | |||
eBay Incorporated | 884 | 62,066 | |||
Etsy Incorporated † | 173 | 35,610 | |||
2,103,289 | |||||
Leisure products: 0.02% | |||||
Hasbro Incorporated | 172 | 16,257 | |||
Multiline retail: 0.32% | |||||
Dollar General Corporation | 318 | 68,812 | |||
Dollar Tree Incorporated † | 313 | 31,144 | |||
Target Corporation | 670 | 161,966 | |||
261,922 | |||||
Specialty retail: 1.32% | |||||
Advance Auto Parts Incorporated | 88 | 18,052 |
Shares | Value | ||||
Specialty retail (continued) | |||||
AutoZone Incorporated † | 29 | $ 43,274 | |||
Best Buy Company Incorporated | 300 | 34,494 | |||
CarMax Incorporated † | 221 | 28,542 | |||
L Brands Incorporated | 315 | 22,699 | |||
Lowe's Companies Incorporated | 956 | 185,435 | |||
O'Reilly Automotive Incorporated † | 94 | 53,224 | |||
Ross Stores Incorporated | 482 | 59,768 | |||
The Gap Incorporated | 280 | 9,422 | |||
The Home Depot Incorporated | 1,442 | 459,839 | |||
The TJX Companies Incorporated | 1,631 | 109,962 | |||
Tractor Supply Company | 155 | 28,839 | |||
Ulta Beauty Incorporated † | 75 | 25,933 | |||
1,079,483 | |||||
Textiles, apparel & luxury goods: 0.43% | |||||
HanesBrands Incorporated | 469 | 8,756 | |||
Nike Incorporated Class B | 1,736 | 268,195 | |||
PVH Corporation † | 95 | 10,221 | |||
Ralph Lauren Corporation | 65 | 7,658 | |||
Tapestry Incorporated † | 375 | 16,305 | |||
Under Armour Incorporated Class A † | 254 | 5,372 | |||
Under Armour Incorporated Class C † | 264 | 4,902 | |||
VF Corporation | 434 | 35,605 | |||
357,014 | |||||
Consumer staples: 3.52% | |||||
Beverages: 0.85% | |||||
Brown-Forman Corporation Class B | 246 | 18,435 | |||
Constellation Brands Incorporated Class A | 229 | 53,561 | |||
Molson Coors Brewing Company Class B † | 253 | 13,584 | |||
Monster Beverage Corporation † | 502 | 45,858 | |||
PepsiCo Incorporated | 1,874 | 277,671 | |||
The Coca-Cola Company | 5,255 | 284,348 | |||
693,457 | |||||
Food & staples retailing: 0.78% | |||||
Costco Wholesale Corporation | 601 | 237,798 | |||
Sysco Corporation | 690 | 53,648 | |||
The Kroger Company | 1,019 | 39,038 | |||
Walgreens Boots Alliance Incorporated | 967 | 50,874 | |||
Walmart Incorporated | 1,859 | 262,156 | |||
643,514 | |||||
Food products: 0.56% | |||||
Archer Daniels Midland Company | 756 | 45,814 | |||
Campbell Soup Company | 274 | 12,492 | |||
ConAgra Foods Incorporated | 650 | 23,647 | |||
General Mills Incorporated | 825 | 50,267 | |||
Hormel Foods Corporation | 382 | 18,241 | |||
Kellogg Company | 340 | 21,872 | |||
Lamb Weston Holdings Incorporated | 197 | 15,890 | |||
McCormick & Company Incorporated | 336 | 29,676 | |||
Mondelez International Incorporated Class A | 1,903 | 118,823 | |||
The Hershey Company | 197 | 34,313 |
Shares | Value | ||||
Food products (continued) | |||||
The J.M. Smucker Company | 148 | $ 19,176 | |||
The Kraft Heinz Company | 877 | 35,764 | |||
Tyson Foods Incorporated Class A | 398 | 29,356 | |||
455,331 | |||||
Household products: 0.81% | |||||
Church & Dwight Company Incorporated | 331 | 28,208 | |||
Colgate-Palmolive Company | 1,145 | 93,146 | |||
Kimberly-Clark Corporation | 457 | 61,137 | |||
The Clorox Company | 167 | 30,045 | |||
The Procter & Gamble Company | 3,316 | 447,428 | |||
659,964 | |||||
Personal products: 0.12% | |||||
The Estee Lauder Companies Incorporated Class A | 314 | 99,877 | |||
Tobacco: 0.40% | |||||
Altria Group Incorporated | 2,502 | 119,295 | |||
Philip Morris International Incorporated | 2,111 | 209,221 | |||
328,516 | |||||
Energy: 1.71% | |||||
Energy equipment & services: 0.15% | |||||
Baker Hughes Incorporated | 981 | 22,435 | |||
Halliburton Company | 1,194 | 27,605 | |||
NOV Incorporated † | 526 | 8,058 | |||
Schlumberger Limited | 1,881 | 60,211 | |||
118,309 | |||||
Oil, gas & consumable fuels: 1.56% | |||||
APA Corporation | 508 | 10,988 | |||
Cabot Oil & Gas Corporation | 537 | 9,376 | |||
Chevron Corporation | 2,614 | 273,790 | |||
ConocoPhillips | 1,821 | 110,899 | |||
Devon Energy Corporation | 799 | 23,323 | |||
Diamondback Energy Incorporated | 242 | 22,721 | |||
EOG Resources Incorporated | 787 | 65,667 | |||
Exxon Mobil Corporation | 5,711 | 360,250 | |||
Hess Corporation | 368 | 32,134 | |||
Kinder Morgan Incorporated | 2,630 | 47,945 | |||
Marathon Oil Corporation | 1,060 | 14,437 | |||
Marathon Petroleum Corporation | 859 | 51,901 | |||
Occidental Petroleum Corporation | 1,124 | 35,147 | |||
ONEOK Incorporated | 602 | 33,495 | |||
Phillips 66 | 593 | 50,891 | |||
Pioneer Natural Resources Company | 312 | 50,706 | |||
The Williams Companies Incorporated | 1,646 | 43,701 | |||
Valero Energy Corporation | 549 | 42,866 | |||
1,280,237 | |||||
Financials: 6.76% | |||||
Banks: 2.57% | |||||
Bank of America Corporation | 10,162 | 418,979 | |||
Citigroup Incorporated | 2,779 | 196,614 |
Shares | Value | ||||
Banks (continued) | |||||
Citizens Financial Group Incorporated | 574 | $ 26,329 | |||
Comerica Incorporated | 188 | 13,412 | |||
Fifth Third Bancorp | 949 | 36,280 | |||
First Republic Bank | 237 | 44,359 | |||
Huntington Bancshares Incorporated | 1,999 | 28,526 | |||
JPMorgan Chase & Company | 4,090 | 636,159 | |||
KeyCorp | 1,310 | 27,052 | |||
M&T Bank Corporation | 173 | 25,139 | |||
People's United Financial Incorporated | 577 | 9,890 | |||
PNC Financial Services Group Incorporated | 573 | 109,305 | |||
Regions Financial Corporation | 1,293 | 26,093 | |||
SVB Financial Group † | 74 | 41,176 | |||
Truist Financial Corporation | 1,815 | 100,733 | |||
US Bancorp | 1,834 | 104,483 | |||
Wells Fargo & Company ♠ | 5,569 | 252,220 | |||
Zions Bancorporation | 220 | 11,629 | |||
2,108,378 | |||||
Capital markets: 1.81% | |||||
Ameriprise Financial Incorporated | 157 | 39,074 | |||
Bank of New York Mellon Corporation | 1,090 | 55,841 | |||
BlackRock Incorporated | 192 | 167,994 | |||
Cboe Global Markets Incorporated | 144 | 17,143 | |||
CME Group Incorporated | 484 | 102,937 | |||
Franklin Resources Incorporated | 368 | 11,772 | |||
Intercontinental Exchange Incorporated | 762 | 90,449 | |||
Invesco Limited | 509 | 13,606 | |||
MarketAxess Holdings Incorporated | 52 | 24,107 | |||
Moody's Corporation | 219 | 79,359 | |||
Morgan Stanley | 2,016 | 184,847 | |||
MSCI Incorporated | 112 | 59,705 | |||
Northern Trust Corporation | 281 | 32,489 | |||
Raymond James Financial Incorporated | 165 | 21,434 | |||
S&P Global Incorporated | 328 | 134,628 | |||
State Street Corporation | 469 | 38,589 | |||
T. Rowe Price Group Incorporated | 307 | 60,777 | |||
The Charles Schwab Corporation | 2,028 | 147,659 | |||
The Goldman Sachs Group Incorporated | 460 | 174,584 | |||
The NASDAQ Incorporated | 154 | 27,073 | |||
1,484,067 | |||||
Consumer finance: 0.40% | |||||
American Express Company | 881 | 145,568 | |||
Capital One Financial Corporation | 609 | 94,206 | |||
Discover Financial Services | 411 | 48,617 | |||
Synchrony Financial | 731 | 35,468 | |||
323,859 | |||||
Diversified financial services: 0.87% | |||||
Berkshire Hathaway Incorporated Class B † | 2,570 | 714,254 | |||
Insurance: 1.11% | |||||
AFLAC Incorporated | 856 | 45,933 | |||
American International Group Incorporated | 1,158 | 55,121 | |||
Aon plc Class A | 306 | 73,061 | |||
Arthur J. Gallagher & Company | 277 | 38,802 |
Shares | Value | ||||
Insurance (continued) | |||||
Assurant Incorporated | 80 | $ 12,494 | |||
Chubb Limited | 609 | 96,794 | |||
Cincinnati Financial Corporation | 202 | 23,557 | |||
Everest Reinsurance Group Limited | 55 | 13,861 | |||
Globe Life Incorporated | 127 | 12,097 | |||
Lincoln National Corporation | 240 | 15,082 | |||
Loews Corporation | 302 | 16,504 | |||
Marsh & McLennan Companies Incorporated | 689 | 96,929 | |||
MetLife Incorporated | 1,005 | 60,149 | |||
Principal Financial Group Incorporated | 341 | 21,548 | |||
Progressive Corporation | 793 | 77,881 | |||
Prudential Financial Incorporated | 533 | 54,617 | |||
The Allstate Corporation | 404 | 52,698 | |||
The Hartford Financial Services Group Incorporated | 483 | 29,932 | |||
The Travelers Companies Incorporated | 340 | 50,901 | |||
UnumProvident Corporation | 274 | 7,782 | |||
W.R. Berkley Corporation | 189 | 14,067 | |||
Willis Towers Watson plc | 173 | 39,793 | |||
909,603 | |||||
Health care: 7.80% | |||||
Biotechnology: 1.07% | |||||
AbbVie Incorporated | 2,400 | 270,336 | |||
Alexion Pharmaceuticals Incorporated † | 299 | 54,929 | |||
Amgen Incorporated | 778 | 189,638 | |||
Biogen Incorporated † | 206 | 71,332 | |||
Gilead Sciences Incorporated | 1,704 | 117,337 | |||
Incyte Corporation † | 252 | 21,201 | |||
Regeneron Pharmaceuticals Incorporated † | 143 | 79,871 | |||
Vertex Pharmaceuticals Incorporated † | 349 | 70,369 | |||
875,013 | |||||
Health care equipment & supplies: 2.17% | |||||
Abbott Laboratories | 2,402 | 278,464 | |||
ABIOMED Incorporated † | 62 | 19,351 | |||
Align Technology Incorporated † | 97 | 59,267 | |||
Baxter International Incorporated | 683 | 54,982 | |||
Becton Dickinson & Company | 394 | 95,817 | |||
Boston Scientific Corporation † | 1,928 | 82,441 | |||
Danaher Corporation | 862 | 231,326 | |||
Dentsply Sirona Incorporated | 296 | 18,725 | |||
DexCom Incorporated † | 132 | 56,364 | |||
Edwards Lifesciences Corporation † | 844 | 87,413 | |||
Hologic Incorporated † | 347 | 23,152 | |||
IDEXX Laboratories Incorporated † | 116 | 73,260 | |||
Intuitive Surgical Incorporated † | 160 | 147,142 | |||
Medtronic plc | 1,827 | 226,786 | |||
ResMed Incorporated | 196 | 48,318 | |||
STERIS plc | 132 | 27,232 | |||
Stryker Corporation | 443 | 115,060 | |||
Teleflex Incorporated | 64 | 25,715 | |||
The Cooper Companies Incorporated | 67 | 26,550 |
Shares | Value | ||||
Health care equipment & supplies (continued) | |||||
West Pharmaceutical Services Incorporated | 100 | $ 35,910 | |||
Zimmer Biomet Holdings Incorporated | 281 | 45,190 | |||
1,778,465 | |||||
Health care providers & services: 1.57% | |||||
AmerisourceBergen Corporation | 199 | 22,784 | |||
Anthem Incorporated | 332 | 126,758 | |||
Cardinal Health Incorporated | 391 | 22,322 | |||
Centene Corporation † | 789 | 57,542 | |||
Cigna Corporation | 461 | 109,289 | |||
CVS Health Corporation | 1,774 | 148,023 | |||
DaVita HealthCare Partners Incorporated † | 94 | 11,320 | |||
HCA Healthcare Incorporated | 354 | 73,186 | |||
Henry Schein Incorporated † | 189 | 14,022 | |||
Humana Incorporated | 175 | 77,476 | |||
Laboratory Corporation of America Holdings † | 132 | 36,412 | |||
McKesson Corporation | 213 | 40,734 | |||
Quest Diagnostics Incorporated | 176 | 23,227 | |||
UnitedHealth Group Incorporated | 1,277 | 511,362 | |||
Universal Health Services Incorporated Class B | 105 | 15,375 | |||
1,289,832 | |||||
Health care technology: 0.04% | |||||
Cerner Corporation | 408 | 31,889 | |||
Life sciences tools & services: 0.77% | |||||
Agilent Technologies Incorporated | 411 | 60,750 | |||
Bio-Rad Laboratories Incorporated Class A † | 29 | 18,684 | |||
Charles River Laboratories International Incorporated † | 69 | 25,524 | |||
Illumina Incorporated † | 198 | 93,696 | |||
IQVIA Holdings Incorporated † | 258 | 62,519 | |||
Mettler-Toledo International Incorporated † | 32 | 44,331 | |||
PerkinElmer Incorporated | 151 | 23,316 | |||
Thermo Fisher Scientific Incorporated | 534 | 269,387 | |||
Waters Corporation † | 84 | 29,031 | |||
627,238 | |||||
Pharmaceuticals: 2.18% | |||||
Bristol-Myers Squibb Company | 3,029 | 202,398 | |||
Catalent Incorporated † | 229 | 24,759 | |||
Eli Lilly & Company | 1,078 | 247,423 | |||
Johnson & Johnson | 3,573 | 588,616 | |||
Merck & Company Incorporated | 3,442 | 267,684 | |||
Organon & Company † | 341 | 10,319 | |||
Perrigo Company plc | 180 | 8,253 | |||
Pfizer Incorporated | 7,596 | 297,459 | |||
Viatris Incorporated | 1,644 | 23,493 | |||
Zoetis Incorporated | 644 | 120,016 | |||
1,790,420 | |||||
Industrials: 5.12% | |||||
Aerospace & defense: 0.96% | |||||
General Dynamics Corporation | 308 | 57,984 | |||
Howmet Aerospace Incorporated † | 526 | 18,131 | |||
Huntington Ingalls Industries Incorporated | 54 | 11,381 |
Shares | Value | ||||
Aerospace & defense (continued) | |||||
L3Harris Technologies Incorporated | 275 | $ 59,441 | |||
Lockheed Martin Corporation | 330 | 124,856 | |||
Northrop Grumman Corporation | 202 | 73,413 | |||
Raytheon Technologies Corporation | 2,047 | 174,630 | |||
Teledyne Technologies Incorporated † | 63 | 26,386 | |||
Textron Incorporated | 302 | 20,769 | |||
The Boeing Company † | 732 | 175,358 | |||
TransDigm Group Incorporated † | 75 | 48,547 | |||
790,896 | |||||
Air freight & logistics: 0.43% | |||||
C.H. Robinson Worldwide Incorporated | 179 | 16,767 | |||
Expeditors International of Washington Incorporated | 229 | 28,991 | |||
FedEx Corporation | 331 | 98,747 | |||
United Parcel Service Incorporated Class B | 983 | 204,435 | |||
348,940 | |||||
Airlines: 0.16% | |||||
Alaska Air Group Incorporated † | 167 | 10,072 | |||
American Airlines Group Incorporated † | 865 | 18,347 | |||
Delta Air Lines Incorporated † | 862 | 37,290 | |||
Southwest Airlines Company † | 798 | 42,366 | |||
United Airlines Holdings Incorporated † | 435 | 22,746 | |||
130,821 | |||||
Building products: 0.30% | |||||
A.O. Smith Corporation | 182 | 13,115 | |||
Allegion plc | 121 | 16,855 | |||
Carrier Global Corporation | 1,106 | 53,752 | |||
Fortune Brands Home & Security Incorporated | 186 | 18,527 | |||
Johnson Controls International plc | 972 | 66,708 | |||
Masco Corporation | 342 | 20,147 | |||
Trane Technologies plc | 322 | 59,293 | |||
248,397 | |||||
Commercial services & supplies: 0.24% | |||||
Cintas Corporation | 120 | 45,840 | |||
Copart Incorporated † | 282 | 37,176 | |||
Republic Services Incorporated | 285 | 31,353 | |||
Rollins Incorporated | 300 | 10,260 | |||
Waste Management Incorporated | 526 | 73,698 | |||
198,327 | |||||
Construction & engineering: 0.02% | |||||
Quanta Services Incorporated | 188 | 17,027 | |||
Electrical equipment: 0.34% | |||||
AMETEK Incorporated | 311 | 41,519 | |||
Eaton Corporation plc | 538 | 79,721 | |||
Emerson Electric Company | 811 | 78,051 | |||
Generac Holdings Incorporated † | 85 | 35,288 | |||
Rockwell Automation Incorporated | 157 | 44,905 | |||
279,484 |
Shares | Value | ||||
Industrial conglomerates: 0.72% | |||||
3M Company | 784 | $ 155,726 | |||
General Electric Company | 11,903 | 160,214 | |||
Honeywell International Incorporated | 939 | 205,970 | |||
Roper Technologies Incorporated | 143 | 67,239 | |||
589,149 | |||||
Machinery: 1.00% | |||||
Caterpillar Incorporated | 741 | 161,264 | |||
Cummins Incorporated | 197 | 48,031 | |||
Deere & Company | 423 | 149,196 | |||
Dover Corporation | 194 | 29,216 | |||
Fortive Corporation | 459 | 32,011 | |||
IDEX Corporation | 102 | 22,445 | |||
Illinois Tool Works Incorporated | 388 | 86,741 | |||
Ingersoll Rand Incorporated † | 503 | 24,551 | |||
Otis Worldwide Corporation | 546 | 44,646 | |||
PACCAR Incorporated | 470 | 41,948 | |||
Parker-Hannifin Corporation | 174 | 53,437 | |||
Pentair plc | 225 | 15,185 | |||
Snap-on Incorporated | 73 | 16,310 | |||
Stanley Black & Decker Incorporated | 218 | 44,688 | |||
Wabtec Corporation | 239 | 19,670 | |||
Xylem Incorporated | 243 | 29,150 | |||
818,489 | |||||
Professional services: 0.25% | |||||
Equifax Incorporated | 164 | 39,280 | |||
IHS Markit Limited | 511 | 57,569 | |||
Jacobs Engineering Group Incorporated | 175 | 23,349 | |||
Leidos Holdings Incorporated | 179 | 18,097 | |||
Nielsen Holdings plc | 483 | 11,916 | |||
Robert Half International Incorporated | 152 | 13,523 | |||
Verisk Analytics Incorporated | 219 | 38,264 | |||
201,998 | |||||
Road & rail: 0.58% | |||||
CSX Corporation | 3,123 | 100,186 | |||
J.B. Hunt Transport Services Incorporated | 113 | 18,413 | |||
Kansas City Southern | 123 | 34,855 | |||
Norfolk Southern Corporation | 338 | 89,709 | |||
Old Dominion Freight Line Incorporated | 128 | 32,486 | |||
Union Pacific Corporation | 899 | 197,717 | |||
473,366 | |||||
Trading companies & distributors: 0.12% | |||||
Fastenal Company | 778 | 40,456 | |||
United Rentals Incorporated † | 97 | 30,944 | |||
W.W. Grainger Incorporated | 60 | 26,280 | |||
97,680 | |||||
Information technology: 16.53% | |||||
Communications equipment: 0.50% | |||||
Arista Networks Incorporated † | 75 | 27,173 | |||
Cisco Systems Incorporated | 5,716 | 302,948 |
Shares | Value | ||||
Communications equipment (continued) | |||||
F5 Networks Incorporated † | 81 | $ 15,119 | |||
Juniper Networks Incorporated | 444 | 12,143 | |||
Motorola Solutions Incorporated | 229 | 49,659 | |||
407,042 | |||||
Electronic equipment, instruments & components: 0.37% | |||||
Amphenol Corporation Class A | 808 | 55,275 | |||
CDW Corporation of Delaware | 190 | 33,184 | |||
Corning Incorporated | 1,047 | 42,822 | |||
IPG Photonics Corporation † | 48 | 10,117 | |||
Keysight Technologies Incorporated † | 249 | 38,448 | |||
TE Connectivity Limited | 448 | 60,574 | |||
Trimble Incorporated † | 340 | 27,822 | |||
Zebra Technologies Corporation Class A † | 73 | 38,653 | |||
306,895 | |||||
IT services: 3.09% | |||||
Accenture plc Class A | 861 | 253,814 | |||
Akamai Technologies Incorporated † | 221 | 25,769 | |||
Automatic Data Processing Incorporated | 576 | 114,405 | |||
Broadridge Financial Solutions Incorporated | 156 | 25,199 | |||
Cognizant Technology Solutions Corporation Class A | 712 | 49,313 | |||
DXC Technology Company † | 343 | 13,356 | |||
Fidelity National Information Services Incorporated | 837 | 118,578 | |||
Fiserv Incorporated † | 802 | 85,726 | |||
FleetCor Technologies Incorporated † | 112 | 28,679 | |||
Gartner Incorporated † | 116 | 28,095 | |||
Global Payments Incorporated | 398 | 74,641 | |||
International Business Machines Corporation | 1,210 | 177,374 | |||
Jack Henry & Associates Incorporated | 99 | 16,187 | |||
MasterCard Incorporated Class A | 1,183 | 431,901 | |||
Paychex Incorporated | 435 | 46,676 | |||
PayPal Holdings Incorporated † | 1,592 | 464,036 | |||
The Western Union Company | 552 | 12,679 | |||
VeriSign Incorporated † | 134 | 30,510 | |||
Visa Incorporated Class A | 2,297 | 537,085 | |||
2,534,023 | |||||
Semiconductors & semiconductor equipment: 3.46% | |||||
Advanced Micro Devices Incorporated † | 1,652 | 155,172 | |||
Analog Devices Incorporated | 500 | 86,080 | |||
Applied Materials Incorporated | 1,247 | 177,573 | |||
Broadcom Incorporated | 556 | 265,123 | |||
Enphase Energy Incorporated † | 181 | 33,237 | |||
Intel Corporation | 5,500 | 308,770 | |||
KLA Corporation | 209 | 67,760 | |||
Lam Research Corporation | 194 | 126,236 | |||
Maxim Integrated Products Incorporated | 364 | 38,351 | |||
Microchip Technology Incorporated | 372 | 55,703 | |||
Micron Technology Incorporated † | 1,524 | 129,510 | |||
Monolithic Power Systems Incorporated | 59 | 22,034 | |||
Nvidia Corporation | 851 | 680,885 | |||
NXP Semiconductors NV | 375 | 77,145 | |||
Qorvo Incorporated † | 153 | 29,934 | |||
QUALCOMM Incorporated | 1,538 | 219,826 |
Shares | Value | ||||
Semiconductors & semiconductor equipment (continued) | |||||
Skyworks Solutions Incorporated | 225 | $ 43,144 | |||
Teradyne Incorporated | 225 | 30,141 | |||
Texas Instruments Incorporated | 1,254 | 241,144 | |||
Xilinx Incorporated | 334 | 48,310 | |||
2,836,078 | |||||
Software: 5.35% | |||||
Adobe Incorporated † | 650 | 380,666 | |||
ANSYS Incorporated † | 119 | 41,300 | |||
Autodesk Incorporated † | 299 | 87,278 | |||
Cadence Design Systems Incorporated † | 379 | 51,855 | |||
Citrix Systems Incorporated | 168 | 19,701 | |||
Fortinet Incorporated † | 183 | 43,589 | |||
Intuit Incorporated | 372 | 182,343 | |||
Microsoft Corporation | 10,253 | 2,777,538 | |||
NortonLifeLock Incorporated | 787 | 21,422 | |||
Oracle Corporation | 2,461 | 191,564 | |||
Paycom Software Incorporated † | 67 | 24,352 | |||
PTC Incorporated † | 143 | 20,200 | |||
Salesforce.com Incorporated † | 1,259 | 307,536 | |||
ServiceNow Incorporated † | 268 | 147,279 | |||
Synopsys Incorporated † | 207 | 57,089 | |||
Tyler Technologies Incorporated † | 56 | 25,333 | |||
4,379,045 | |||||
Technology hardware, storage & peripherals: 3.76% | |||||
Apple Incorporated | 21,348 | 2,923,819 | |||
Hewlett Packard Enterprise Company | 1,769 | 25,792 | |||
HP Incorporated | 1,629 | 49,180 | |||
NetApp Incorporated | 302 | 24,710 | |||
Seagate Technology Holdings plc | 270 | 23,741 | |||
Western Digital Corporation † | 416 | 29,607 | |||
3,076,849 | |||||
Materials: 1.56% | |||||
Chemicals: 1.06% | |||||
Air Products & Chemicals Incorporated | 300 | 86,304 | |||
Albemarle Corporation | 157 | 26,448 | |||
Celanese Corporation Series A | 152 | 23,043 | |||
CF Industries Holdings Incorporated | 290 | 14,921 | |||
Corteva Incorporated | 996 | 44,173 | |||
Dow Incorporated | 1,012 | 64,039 | |||
DuPont de Nemours Incorporated | 721 | 55,813 | |||
Eastman Chemical Company | 184 | 21,482 | |||
Ecolab Incorporated | 336 | 69,206 | |||
FMC Corporation | 173 | 18,719 | |||
International Flavors & Fragrances Incorporated | 336 | 50,198 | |||
Linde plc | 704 | 203,526 | |||
LyondellBasell Industries NV Class A | 349 | 35,902 | |||
PPG Industries Incorporated | 320 | 54,326 | |||
The Mosaic Company | 469 | 14,966 | |||
The Sherwin-Williams Company | 323 | 88,001 | |||
871,067 |
Shares | Value | ||||
Construction materials: 0.08% | |||||
Martin Marietta Materials Incorporated | 84 | $ 29,552 | |||
Vulcan Materials Company | 179 | 31,159 | |||
60,711 | |||||
Containers & packaging: 0.20% | |||||
Amcor plc | 2,085 | 23,894 | |||
Avery Dennison Corporation | 111 | 23,337 | |||
Ball Corporation | 444 | 35,973 | |||
International Paper Company | 530 | 32,494 | |||
Packaging Corporation of America | 128 | 17,334 | |||
Sealed Air Corporation | 205 | 12,146 | |||
WestRock Company | 360 | 19,159 | |||
164,337 | |||||
Metals & mining: 0.22% | |||||
Freeport-McMoRan Incorporated | 1,986 | 73,700 | |||
Newmont Corporation | 1,087 | 68,894 | |||
Nucor Corporation | 403 | 38,660 | |||
181,254 | |||||
Real estate: 1.54% | |||||
Equity REITs: 1.49% | |||||
Alexandria Real Estate Equities Incorporated | 185 | 33,659 | |||
American Tower Corporation | 616 | 166,406 | |||
AvalonBay Communities Incorporated | 188 | 39,234 | |||
Boston Properties Incorporated | 191 | ��21,887 | |||
Crown Castle International Corporation | 585 | 114,134 | |||
Digital Realty Trust Incorporated | 381 | 57,325 | |||
Duke Realty Corporation | 507 | 24,006 | |||
Equinix Incorporated | 122 | 97,917 | |||
Equity Residential | 464 | 35,728 | |||
Essex Property Trust Incorporated | 88 | 26,401 | |||
Extra Space Storage Incorporated | 180 | 29,488 | |||
Federal Realty Investment Trust | 95 | 11,131 | |||
Healthpeak Properties Incorporated | 731 | 24,335 | |||
Host Hotels & Resorts Incorporated † | 953 | 16,287 | |||
Iron Mountain Incorporated | 389 | 16,462 | |||
Kimco Realty Corporation | 584 | 12,176 | |||
Mid-America Apartment Communities Incorporated | 154 | 25,937 | |||
Prologis Incorporated | 1,000 | 119,530 | |||
Public Storage Incorporated | 205 | 61,641 | |||
Realty Income Corporation | 505 | 33,704 | |||
Regency Centers Corporation | 213 | 13,647 | |||
SBA Communications Corporation | 148 | 47,168 | |||
Simon Property Group Incorporated | 444 | 57,933 | |||
UDR Incorporated | 400 | 19,592 | |||
Ventas Incorporated | 509 | 29,064 | |||
Vornado Realty Trust | 211 | 9,847 | |||
Welltower Incorporated | 566 | 47,035 | |||
Weyerhaeuser Company | 1,013 | 34,867 | |||
1,226,541 | |||||
Real estate management & development: 0.05% | |||||
CBRE Group Incorporated Class A † | 453 | 38,836 |
Shares | Value | ||||
Utilities: 1.47% | |||||
Electric utilities: 0.93% | |||||
Alliant Energy Corporation | 337 | $ 18,791 | |||
American Electric Power Company Incorporated | 675 | 57,098 | |||
Duke Energy Corporation | 1,037 | 102,373 | |||
Edison International | 512 | 29,604 | |||
Entergy Corporation | 270 | 26,919 | |||
Evergy Incorporated | 308 | 18,612 | |||
Eversource Energy | 462 | 37,071 | |||
Exelon Corporation | 1,319 | 58,445 | |||
FirstEnergy Corporation | 732 | 27,238 | |||
NextEra Energy Incorporated | 2,642 | 193,606 | |||
NRG Energy Incorporated | 327 | 13,178 | |||
Pinnacle West Capital Corporation | 152 | 12,459 | |||
PPL Corporation | 1,037 | 29,005 | |||
The Southern Company | 1,429 | 86,469 | |||
Xcel Energy Incorporated | 725 | 47,763 | |||
758,631 | |||||
Gas utilities: 0.02% | |||||
Atmos Energy Corporation | 175 | 16,819 | |||
Independent power & renewable electricity producers: 0.03% | |||||
AES Corporation | 897 | 23,385 | |||
Multi-utilities: 0.44% | |||||
Ameren Corporation | 344 | 27,534 | |||
CenterPoint Energy Incorporated | 784 | 19,224 | |||
CMS Energy Corporation | 389 | 22,982 | |||
Consolidated Edison Incorporated | 461 | 33,063 | |||
Dominion Energy Incorporated | 1,088 | 80,044 | |||
DTE Energy Company | 261 | 33,826 | |||
NiSource Incorporated | 529 | 12,961 | |||
Public Service Enterprise Group Incorporated | 683 | 40,802 | |||
Sempra Energy | 426 | 56,436 | |||
WEC Energy Group Incorporated | 424 | 37,715 | |||
364,587 | |||||
Water utilities: 0.05% | |||||
American Water Works Company Incorporated | 244 | 37,608 | |||
Total Common stocks (Cost $21,198,428) | 49,222,227 |
Interest rate | Maturity date | Principal | |||
U.S. Treasury securities: 34.21% | |||||
U.S. Treasury Bond | 1.13% | 5-15-2040 | $ 109,000 | 94,098 | |
U.S. Treasury Bond | 1.13 | 8-15-2040 | 145,000 | 124,745 | |
U.S. Treasury Bond | 1.25 | 5-15-2050 | 120,000 | 97,983 | |
U.S. Treasury Bond | 1.38 | 11-15-2040 | 87,000 | 78,150 | |
U.S. Treasury Bond | 1.38 | 8-15-2050 | 151,000 | 127,294 | |
U.S. Treasury Bond | 1.63 | 11-15-2050 | 87,000 | 78,137 | |
U.S. Treasury Bond | 2.00 | 2-15-2050 | 152,000 | 149,328 | |
U.S. Treasury Bond | 2.25 | 8-15-2046 | 106,000 | 109,602 | |
U.S. Treasury Bond | 2.25 | 8-15-2049 | 108,000 | 111,881 | |
U.S. Treasury Bond | 2.38 | 11-15-2049 | 127,000 | 135,235 |
Interest rate | Maturity date | Principal | Value | ||
U.S. Treasury securities (continued) | |||||
U.S. Treasury Bond | 2.50% | 2-15-2045 | $ 116,000 | $ 125,507 | |
U.S. Treasury Bond | 2.50 | 2-15-2046 | 106,000 | 114,828 | |
U.S. Treasury Bond | 2.50 | 5-15-2046 | 105,000 | 113,753 | |
U.S. Treasury Bond | 2.75 | 8-15-2042 | 66,000 | 74,371 | |
U.S. Treasury Bond | 2.75 | 11-15-2042 | 78,000 | 87,832 | |
U.S. Treasury Bond | 2.75 | 8-15-2047 | 101,000 | 114,888 | |
U.S. Treasury Bond | 2.75 | 11-15-2047 | 100,000 | 113,836 | |
U.S. Treasury Bond | 2.88 | 5-15-2043 | 111,000 | 127,659 | |
U.S. Treasury Bond | 2.88 | 8-15-2045 | 115,000 | 132,942 | |
U.S. Treasury Bond | 2.88 | 11-15-2046 | 104,000 | 120,705 | |
U.S. Treasury Bond | 2.88 | 5-15-2049 | 140,000 | 163,937 | |
U.S. Treasury Bond | 3.00 | 5-15-2042 | 40,000 | 46,822 | |
U.S. Treasury Bond | 3.00 | 11-15-2044 | 114,000 | 134,208 | |
U.S. Treasury Bond | 3.00 | 5-15-2045 | 116,000 | 136,798 | |
U.S. Treasury Bond | 3.00 | 11-15-2045 | 115,000 | 135,965 | |
U.S. Treasury Bond | 3.00 | 2-15-2047 | 106,000 | 125,925 | |
U.S. Treasury Bond | 3.00 | 5-15-2047 | 104,000 | 123,667 | |
U.S. Treasury Bond | 3.00 | 2-15-2048 | 114,000 | 135,892 | |
U.S. Treasury Bond | 3.00 | 8-15-2048 | 121,000 | 144,472 | |
U.S. Treasury Bond | 3.00 | 2-15-2049 | 140,000 | 167,612 | |
U.S. Treasury Bond | 3.13 | 11-15-2041 | 37,000 | 44,105 | |
U.S. Treasury Bond | 3.13 | 2-15-2042 | 46,000 | 54,871 | |
U.S. Treasury Bond | 3.13 | 2-15-2043 | 79,000 | 94,393 | |
U.S. Treasury Bond | 3.13 | 8-15-2044 | 115,000 | 138,013 | |
U.S. Treasury Bond | 3.13 | 5-15-2048 | 123,000 | 150,007 | |
U.S. Treasury Bond | 3.38 | 5-15-2044 | 110,000 | 137,161 | |
U.S. Treasury Bond | 3.38 | 11-15-2048 | 135,000 | 172,368 | |
U.S. Treasury Bond | 3.50 | 2-15-2039 | 29,000 | 36,276 | |
U.S. Treasury Bond | 3.63 | 8-15-2043 | 88,000 | 113,341 | |
U.S. Treasury Bond | 3.63 | 2-15-2044 | 113,000 | 146,057 | |
U.S. Treasury Bond | 3.75 | 8-15-2041 | 36,000 | 46,769 | |
U.S. Treasury Bond | 3.75 | 11-15-2043 | 110,000 | 144,392 | |
U.S. Treasury Bond | 3.88 | 8-15-2040 | 37,000 | 48,645 | |
U.S. Treasury Bond | 4.25 | 5-15-2039 | 31,000 | 42,423 | |
U.S. Treasury Bond | 4.25 | 11-15-2040 | 40,000 | 55,178 | |
U.S. Treasury Bond | 4.38 | 2-15-2038 | 18,000 | 24,777 | |
U.S. Treasury Bond | 4.38 | 11-15-2039 | 35,000 | 48,690 | |
U.S. Treasury Bond | 4.38 | 5-15-2040 | 35,000 | 48,911 | |
U.S. Treasury Bond | 4.38 | 5-15-2041 | 33,000 | 46,364 | |
U.S. Treasury Bond | 4.50 | 2-15-2036 | 26,000 | 35,693 | |
U.S. Treasury Bond | 4.50 | 5-15-2038 | 21,000 | 29,331 | |
U.S. Treasury Bond | 4.50 | 8-15-2039 | 33,000 | 46,527 | |
U.S. Treasury Bond | 4.63 | 2-15-2040 | 38,000 | 54,548 | |
U.S. Treasury Bond | 4.75 | 2-15-2037 | 13,000 | 18,454 | |
U.S. Treasury Bond | 4.75 | 2-15-2041 | 44,000 | 64,524 | |
U.S. Treasury Bond | 5.00 | 5-15-2037 | 17,000 | 24,776 | |
U.S. Treasury Bond | 5.25 | 11-15-2028 | 45,000 | 57,762 | |
U.S. Treasury Bond | 5.25 | 2-15-2029 | 33,000 | 42,557 | |
U.S. Treasury Bond | 5.38 | 2-15-2031 | 31,000 | 42,155 | |
U.S. Treasury Bond | 5.50 | 8-15-2028 | 35,000 | 45,274 | |
U.S. Treasury Bond | 6.13 | 11-15-2027 | 49,000 | 64,211 | |
U.S. Treasury Bond | 6.13 | 8-15-2029 | 25,000 | 34,363 | |
U.S. Treasury Bond | 6.25 | 5-15-2030 | 21,000 | 29,633 | |
U.S. Treasury Bond | 6.38 | 8-15-2027 | 21,000 | 27,636 | |
U.S. Treasury Bond | 6.88 | 8-15-2025 | 21,000 | 26,269 |
Interest rate | Maturity date | Principal | Value | ||
U.S. Treasury securities (continued) | |||||
U.S. Treasury Note | 0.13% | 11-30-2022 | $ 178,000 | $ 177,882 | |
U.S. Treasury Note | 0.13 | 5-15-2023 | 117,000 | 116,781 | |
U.S. Treasury Note | 0.13 | 7-15-2023 | 123,000 | 122,678 | |
U.S. Treasury Note | 0.13 | 8-15-2023 | 128,000 | 127,605 | |
U.S. Treasury Note | 0.13 | 9-15-2023 | 143,000 | 142,475 | |
U.S. Treasury Note | 0.13 | 10-15-2023 | 146,000 | 145,373 | |
U.S. Treasury Note | 0.25 | 4-15-2023 | 119,000 | 119,065 | |
U.S. Treasury Note | 0.25 | 6-15-2023 | 122,000 | 122,010 | |
U.S. Treasury Note | 0.25 | 11-15-2023 | 172,000 | 171,711 | |
U.S. Treasury Note | 0.25 | 5-31-2025 | 132,000 | 129,783 | |
U.S. Treasury Note | 0.25 | 6-30-2025 | 142,000 | 139,482 | |
U.S. Treasury Note | 0.25 | 7-31-2025 | 147,000 | 144,221 | |
U.S. Treasury Note | 0.25 | 8-31-2025 | 153,000 | 149,928 | |
U.S. Treasury Note | 0.25 | 10-31-2025 | 176,000 | 172,074 | |
U.S. Treasury Note | 0.38 | 4-30-2025 | 126,000 | 124,646 | |
U.S. Treasury Note | 0.38 | 11-30-2025 | 181,000 | 177,741 | |
U.S. Treasury Note | 0.38 | 7-31-2027 | 134,000 | 128,431 | |
U.S. Treasury Note | 0.38 | 9-30-2027 | 155,000 | 148,073 | |
U.S. Treasury Note | 0.50 | 3-15-2023 | 104,000 | 104,528 | |
U.S. Treasury Note | 0.50 | 3-31-2025 | 120,000 | 119,405 | |
U.S. Treasury Note | 0.50 | 4-30-2027 | 98,000 | 95,049 | |
U.S. Treasury Note | 0.50 | 5-31-2027 | 111,000 | 107,462 | |
U.S. Treasury Note | 0.50 | 6-30-2027 | 122,000 | 117,997 | |
U.S. Treasury Note | 0.50 | 8-31-2027 | 142,000 | 136,930 | |
U.S. Treasury Note | 0.50 | 10-31-2027 | 168,000 | 161,523 | |
U.S. Treasury Note | 0.63 | 3-31-2027 | 81,000 | 79,247 | |
U.S. Treasury Note | 0.63 | 11-30-2027 | 179,000 | 173,266 | |
U.S. Treasury Note | 0.63 | 5-15-2030 | 178,000 | 166,381 | |
U.S. Treasury Note | 0.63 | 8-15-2030 | 222,000 | 206,824 | |
U.S. Treasury Note | 0.88 | 11-15-2030 | 132,000 | 125,524 | |
U.S. Treasury Note | 1.13 | 2-28-2025 | 118,000 | 120,157 | |
U.S. Treasury Note | 1.13 | 2-28-2027 | 47,000 | 47,336 | |
U.S. Treasury Note | 1.25 | 7-31-2023 | 67,000 | 68,371 | |
U.S. Treasury Note | 1.25 | 8-31-2024 | 104,000 | 106,454 | |
U.S. Treasury Note | 1.38 | 2-15-2023 | 82,000 | 83,576 | |
U.S. Treasury Note | 1.38 | 6-30-2023 | 64,000 | 65,438 | |
U.S. Treasury Note | 1.38 | 8-31-2023 | 124,000 | 126,930 | |
U.S. Treasury Note | 1.38 | 9-30-2023 | 90,000 | 92,169 | |
U.S. Treasury Note | 1.38 | 1-31-2025 | 105,000 | 107,883 | |
U.S. Treasury Note | 1.38 | 8-31-2026 | 95,000 | 97,253 | |
U.S. Treasury Note | 1.50 | 1-31-2022 | 128,000 | 129,080 | |
U.S. Treasury Note | 1.50 | 1-15-2023 | 79,000 | 80,602 | |
U.S. Treasury Note | 1.50 | 2-28-2023 | 126,000 | 128,712 | |
U.S. Treasury Note | 1.50 | 3-31-2023 | 126,000 | 128,810 | |
U.S. Treasury Note | 1.50 | 9-30-2024 | 108,000 | 111,421 | |
U.S. Treasury Note | 1.50 | 10-31-2024 | 114,000 | 117,634 | |
U.S. Treasury Note | 1.50 | 11-30-2024 | 122,000 | 125,884 | |
U.S. Treasury Note | 1.50 | 8-15-2026 | 102,000 | 105,028 | |
U.S. Treasury Note | 1.50 | 1-31-2027 | 98,000 | 100,745 | |
U.S. Treasury Note | 1.50 | 2-15-2030 | 209,000 | 211,066 | |
U.S. Treasury Note | 1.63 | 8-15-2022 | 117,000 | 118,993 | |
U.S. Treasury Note | 1.63 | 8-31-2022 | 151,000 | 153,613 | |
U.S. Treasury Note | 1.63 | 11-15-2022 | 150,000 | 153,023 | |
U.S. Treasury Note | 1.63 | 12-15-2022 | 104,000 | 106,210 | |
U.S. Treasury Note | 1.63 | 4-30-2023 | 66,000 | 67,671 |
Interest rate | Maturity date | Principal | Value | ||
U.S. Treasury securities (continued) | |||||
U.S. Treasury Note | 1.63% | 5-31-2023 | $ 64,000 | $ 65,690 | |
U.S. Treasury Note | 1.63 | 10-31-2023 | 90,000 | 92,735 | |
U.S. Treasury Note | 1.63 | 2-15-2026 | 102,000 | 105,729 | |
U.S. Treasury Note | 1.63 | 5-15-2026 | 105,000 | 108,835 | |
U.S. Treasury Note | 1.63 | 9-30-2026 | 97,000 | 100,497 | |
U.S. Treasury Note | 1.63 | 10-31-2026 | 94,000 | 97,360 | |
U.S. Treasury Note | 1.63 | 11-30-2026 | 97,000 | 100,452 | |
U.S. Treasury Note | 1.63 | 8-15-2029 | 157,000 | 160,575 | |
U.S. Treasury Note | 1.75 | 2-28-2022 | 129,000 | 130,441 | |
U.S. Treasury Note | 1.75 | 3-31-2022 | 128,000 | 129,600 | |
U.S. Treasury Note | 1.75 | 4-30-2022 | 126,000 | 127,742 | |
U.S. Treasury Note | 1.75 | 5-15-2022 | 111,000 | 112,613 | |
U.S. Treasury Note | 1.75 | 5-31-2022 | 149,000 | 151,258 | |
U.S. Treasury Note | 1.75 | 6-30-2022 | 149,000 | 151,445 | |
U.S. Treasury Note | 1.75 | 9-30-2022 | 144,000 | 146,897 | |
U.S. Treasury Note | 1.75 | 1-31-2023 | 129,000 | 132,159 | |
U.S. Treasury Note | 1.75 | 5-15-2023 | 113,000 | 116,178 | |
U.S. Treasury Note | 1.75 | 7-31-2024 | 110,000 | 114,310 | |
U.S. Treasury Note | 1.75 | 12-31-2024 | 99,000 | 103,022 | |
U.S. Treasury Note | 1.75 | 12-31-2026 | 99,000 | 103,184 | |
U.S. Treasury Note | 1.75 | 11-15-2029 | 178,000 | 183,729 | |
U.S. Treasury Note | 1.88 | 1-31-2022 | 157,000 | 158,662 | |
U.S. Treasury Note | 1.88 | 2-28-2022 | 153,000 | 154,841 | |
U.S. Treasury Note | 1.88 | 3-31-2022 | 153,000 | 155,056 | |
U.S. Treasury Note | 1.88 | 4-30-2022 | 153,000 | 155,271 | |
U.S. Treasury Note | 1.88 | 5-31-2022 | 128,000 | 130,090 | |
U.S. Treasury Note | 1.88 | 7-31-2022 | 149,000 | 151,840 | |
U.S. Treasury Note | 1.88 | 8-31-2022 | 142,000 | 144,873 | |
U.S. Treasury Note | 1.88 | 9-30-2022 | 144,000 | 147,116 | |
U.S. Treasury Note | 1.88 | 10-31-2022 | 143,000 | 146,285 | |
U.S. Treasury Note | 1.88 | 8-31-2024 | 125,000 | 130,400 | |
U.S. Treasury Note | 1.88 | 6-30-2026 | 98,000 | 102,758 | |
U.S. Treasury Note | 1.88 | 7-31-2026 | 99,000 | 103,861 | |
U.S. Treasury Note | 2.00 | 12-31-2021 | 155,000 | 156,489 | |
U.S. Treasury Note | 2.00 | 2-15-2022 | 133,000 | 134,611 | |
U.S. Treasury Note | 2.00 | 7-31-2022 | 144,000 | 146,948 | |
U.S. Treasury Note | 2.00 | 10-31-2022 | 143,000 | 146,525 | |
U.S. Treasury Note | 2.00 | 11-30-2022 | 129,000 | 132,336 | |
U.S. Treasury Note | 2.00 | 2-15-2023 | 118,000 | 121,448 | |
U.S. Treasury Note | 2.00 | 4-30-2024 | 123,000 | 128,458 | |
U.S. Treasury Note | 2.00 | 5-31-2024 | 123,000 | 128,540 | |
U.S. Treasury Note | 2.00 | 6-30-2024 | 123,000 | 128,631 | |
U.S. Treasury Note | 2.00 | 2-15-2025 | 289,000 | 303,450 | |
U.S. Treasury Note | 2.00 | 8-15-2025 | 220,000 | 231,516 | |
U.S. Treasury Note | 2.00 | 11-15-2026 | 170,000 | 179,403 | |
U.S. Treasury Note | 2.13 | 12-31-2021 | 126,000 | 127,290 | |
U.S. Treasury Note | 2.13 | 6-30-2022 | 126,000 | 128,545 | |
U.S. Treasury Note | 2.13 | 12-31-2022 | 129,000 | 132,749 | |
U.S. Treasury Note | 2.13 | 11-30-2023 | 110,000 | 114,757 | |
U.S. Treasury Note | 2.13 | 2-29-2024 | 128,000 | 133,925 | |
U.S. Treasury Note | 2.13 | 3-31-2024 | 127,000 | 132,963 | |
U.S. Treasury Note | 2.13 | 7-31-2024 | 123,000 | 129,188 | |
U.S. Treasury Note | 2.13 | 9-30-2024 | 118,000 | 124,112 | |
U.S. Treasury Note | 2.13 | 11-30-2024 | 119,000 | 125,340 | |
U.S. Treasury Note | 2.13 | 5-15-2025 | 234,000 | 247,080 |
Interest rate | Maturity date | Principal | Value | ||
U.S. Treasury securities (continued) | |||||
U.S. Treasury Note | 2.13% | 5-31-2026 | $ 97,000 | $ 102,873 | |
U.S. Treasury Note | 2.25 | 12-31-2023 | 127,000 | 132,988 | |
U.S. Treasury Note | 2.25 | 1-31-2024 | 127,000 | 133,157 | |
U.S. Treasury Note | 2.25 | 4-30-2024 | 120,000 | 126,150 | |
U.S. Treasury Note | 2.25 | 10-31-2024 | 121,000 | 127,858 | |
U.S. Treasury Note | 2.25 | 11-15-2024 | 290,000 | 306,562 | |
U.S. Treasury Note | 2.25 | 12-31-2024 | 118,000 | 124,868 | |
U.S. Treasury Note | 2.25 | 11-15-2025 | 219,000 | 232,995 | |
U.S. Treasury Note | 2.25 | 3-31-2026 | 99,000 | 105,512 | |
U.S. Treasury Note | 2.25 | 2-15-2027 | 196,000 | 209,483 | |
U.S. Treasury Note | 2.25 | 8-15-2027 | 101,000 | 108,015 | |
U.S. Treasury Note | 2.25 | 11-15-2027 | 99,000 | 105,899 | |
U.S. Treasury Note | 2.38 | 1-31-2023 | 144,000 | 148,978 | |
U.S. Treasury Note | 2.38 | 2-29-2024 | 84,000 | 88,426 | |
U.S. Treasury Note | 2.38 | 8-15-2024 | 289,000 | 305,967 | |
U.S. Treasury Note | 2.38 | 4-30-2026 | 98,000 | 105,074 | |
U.S. Treasury Note | 2.38 | 5-15-2027 | 164,000 | 176,550 | |
U.S. Treasury Note | 2.38 | 5-15-2029 | 90,000 | 97,119 | |
U.S. Treasury Note | 2.50 | 3-31-2023 | 83,000 | 86,310 | |
U.S. Treasury Note | 2.50 | 8-15-2023 | 102,000 | 106,793 | |
U.S. Treasury Note | 2.50 | 1-31-2024 | 103,000 | 108,669 | |
U.S. Treasury Note | 2.50 | 5-15-2024 | 281,000 | 297,651 | |
U.S. Treasury Note | 2.50 | 1-31-2025 | 116,000 | 123,880 | |
U.S. Treasury Note | 2.50 | 2-28-2026 | 97,000 | 104,442 | |
U.S. Treasury Note | 2.63 | 2-28-2023 | 146,000 | 151,891 | |
U.S. Treasury Note | 2.63 | 6-30-2023 | 83,000 | 86,917 | |
U.S. Treasury Note | 2.63 | 12-31-2023 | 97,000 | 102,490 | |
U.S. Treasury Note | 2.63 | 3-31-2025 | 114,000 | 122,448 | |
U.S. Treasury Note | 2.63 | 12-31-2025 | 97,000 | 104,859 | |
U.S. Treasury Note | 2.63 | 1-31-2026 | 95,000 | 102,763 | |
U.S. Treasury Note | 2.63 | 2-15-2029 | 181,000 | 198,478 | |
U.S. Treasury Note | 2.75 | 4-30-2023 | 82,000 | 85,764 | |
U.S. Treasury Note | 2.75 | 5-31-2023 | 82,000 | 85,933 | |
U.S. Treasury Note | 2.75 | 7-31-2023 | 80,000 | 84,131 | |
U.S. Treasury Note | 2.75 | 8-31-2023 | 145,000 | 152,720 | |
U.S. Treasury Note | 2.75 | 11-15-2023 | 134,000 | 141,689 | |
U.S. Treasury Note | 2.75 | 2-15-2024 | 217,000 | 230,452 | |
U.S. Treasury Note | 2.75 | 2-28-2025 | 121,000 | 130,392 | |
U.S. Treasury Note | 2.75 | 6-30-2025 | 119,000 | 128,701 | |
U.S. Treasury Note | 2.75 | 8-31-2025 | 122,000 | 132,146 | |
U.S. Treasury Note | 2.75 | 2-15-2028 | 189,000 | 208,247 | |
U.S. Treasury Note | 2.88 | 9-30-2023 | 148,000 | 156,550 | |
U.S. Treasury Note | 2.88 | 10-31-2023 | 84,000 | 88,988 | |
U.S. Treasury Note | 2.88 | 11-30-2023 | 76,000 | 80,649 | |
U.S. Treasury Note | 2.88 | 4-30-2025 | 114,000 | 123,645 | |
U.S. Treasury Note | 2.88 | 5-31-2025 | 117,000 | 127,018 | |
U.S. Treasury Note | 2.88 | 7-31-2025 | 118,000 | 128,288 | |
U.S. Treasury Note | 2.88 | 11-30-2025 | 96,000 | 104,745 | |
U.S. Treasury Note | 2.88 | 5-15-2028 | 178,000 | 197,733 | |
U.S. Treasury Note | 2.88 | 8-15-2028 | 190,000 | 211,308 | |
U.S. Treasury Note | 3.00 | 9-30-2025 | 121,000 | 132,462 | |
U.S. Treasury Note | 3.00 | 10-31-2025 | 76,000 | 83,262 | |
U.S. Treasury Note | 3.13 | 11-15-2028 | 226,000 | 255,671 | |
U.S. Treasury Note | 6.00 | 2-15-2026 | 42,000 | 51,923 | |
U.S. Treasury Note | 6.25 | 8-15-2023 | 17,000 | 19,146 |
Interest rate | Maturity date | Principal | Value | ||
U.S. Treasury securities (continued) | |||||
U.S. Treasury Note | 6.50% | 11-15-2026 | $ 28,000 | $ 36,173 | |
U.S. Treasury Note | 6.63 | 2-15-2027 | 18,000 | 23,578 | |
U.S. Treasury Note | 6.75 | 8-15-2026 | 21,000 | 27,165 | |
U.S. Treasury Note | 7.13 | 2-15-2023 | 24,000 | 26,698 | |
U.S. Treasury Note | 7.25 | 8-15-2022 | 24,000 | 25,913 | |
U.S. Treasury Note | 7.50 | 11-15-2024 | 22,000 | 27,159 | |
U.S. Treasury Note | 7.63 | 11-15-2022 | 12,000 | 13,223 | |
U.S. Treasury Note | 7.63 | 2-15-2025 | 20,000 | 25,059 | |
Total U.S. Treasury securities (Cost $26,847,150) | 28,025,084 |
Yield | Shares | ||||
Short-term investments: 4.27% | |||||
Investment companies: 4.27% | |||||
Wells Fargo Government Money Market Fund Select Class ♠∞ | 0.03 | 3,499,550 | 3,499,550 | ||
Total Short-term investments (Cost $3,499,550) | 3,499,550 | ||||
Total investments in securities (Cost $51,545,128) | 98.56% | 80,746,861 | |||
Other assets and liabilities, net | 1.44 | 1,182,273 | |||
Total net assets | 100.00% | $81,929,134 |
† | 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: | |
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 | $187,086 | $ 83 | $ (26,061) | $ 9,130 | $ 81,982 | $ 252,220 | 0.31% | 5,569 | $ 1,193 | |||
Short-term investments | ||||||||||||
Investment companies | ||||||||||||
Securities Lending Cash Investments LLC | 11,350 | 14,207 | (25,557) | 0 | 0 | 0 | 0 | 2 # | ||||
Wells Fargo Government Money Market Fund Select Class | 898,399 | 6,985,540 | (4,384,389) | 0 | 0 | 3,499,550 | 3,499,550 | 397 | ||||
3,499,550 | 4.27 | |||||||||||
$9,130 | $81,982 | $3,751,770 | 4.58% | $1,592 |
# | 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 | 29 | 9-17-2021 | $ 6,143,210 | $ 6,218,470 | $ 75,260 | $ 0 | |
U.S. Treasury Bonds | 2 | 9-21-2021 | 316,521 | 321,500 | 4,979 | 0 | |
Ultra U.S. Treasury Bonds | 4 | 9-21-2021 | 744,758 | 770,750 | 25,992 | 0 | |
2-Year U.S. Treasury Notes | 3 | 9-30-2021 | 661,906 | 660,961 | 0 | (945) | |
5-Year U.S. Treasury Notes | 10 | 9-30-2021 | 1,236,067 | 1,234,297 | 0 | (1,770) | |
Short | |||||||
10-Year U.S. Treasury Notes | (15) | 9-21-2021 | (1,973,824) | (1,987,500) | 0 | (13,676) | |
$106,231 | $(16,391) |
Assets | |
Investments in unaffiliated securities, at value (cost $47,873,375) | $ 76,995,091 |
Investments in affiliated securites, at value (cost $3,671,753) | 3,751,770 |
Cash | 238 |
Cash at broker segregated for futures contracts | 410,981 |
Receivable for investments sold | 690,525 |
Receivable for dividends and interest | 157,779 |
Receivable for daily variation margin on open futures contracts | 9,815 |
Prepaid expenses and other assets | 25,805 |
Total assets | 82,042,004 |
Liabilities | |
Payable for Fund shares redeemed | 35,604 |
Management fee payable | 31,834 |
Professional fees payable | 17,855 |
Distribution fee payable | 16,446 |
Administration fee payable | 5,350 |
Payable for investments purchased | 1,834 |
Trustees’ fees and expenses payable | 1,039 |
Accrued expenses and other liabilities | 2,908 |
Total liabilities | 112,870 |
Total net assets | $81,929,134 |
Net assets consist of | |
Paid-in capital | $ 42,598,944 |
Total distributable earnings | 39,330,190 |
Total net assets | $81,929,134 |
Computation of net asset value per share | |
Net assets - Class 2 | $ 81,929,134 |
Share outstanding - Class 21 | 3,469,496 |
Net asset value per share - Class 2 | $23.61 |
1 | The Fund has an unlimited number of authorized shares |
Investment income | |
Dividends (net of foreign withholdings taxes of $32) | $ 353,936 |
Interest | 231,821 |
Income from affiliated securities | 1,638 |
Total investment income | 587,395 |
Expenses | |
Management fee | 234,485 |
Administration fee - Class 2 | 31,265 |
Distribution fee - Class 2 | 96,467 |
Custody and accounting fees | 17,775 |
Professional fees | 24,646 |
Shareholder report expenses | 14,242 |
Trustees’ fees and expenses | 9,398 |
Other fees and expenses | 14,610 |
Total expenses | 442,888 |
Less: Fee waivers and/or expense reimbursements | |
Fund-level | (52,423) |
Net expenses | 390,465 |
Net investment income | 196,930 |
Realized and unrealized gains (losses) on investments | |
Net realized gains on | |
Unaffiliated securities | 3,455,693 |
Affiliated securities | 9,130 |
Futures contracts | 674,305 |
Net realized gains on investments | 4,139,128 |
Net change in unrealized gains (losses) on | |
Unaffiliated securities | 2,037,178 |
Affiliated securities | 81,982 |
Futures contracts | (17,039) |
Net change in unrealized gains (losses) on investments | 2,102,121 |
Net realized and unrealized gains (losses) on investments | 6,241,249 |
Net increase in net assets resulting from operations | $6,438,179 |
Six months ended June 30, 2021 (unaudited) | Year ended December 31, 2020 | |||
Operations | ||||
Net investment income | $ 196,930 | $ 570,640 | ||
Net realized gains on investments | 4,139,128 | 7,532,027 | ||
Net change in unrealized gains (losses) on investments | 2,102,121 | 3,213,094 | ||
Net increase in net assets resulting from operations | 6,438,179 | 11,315,761 | ||
Distributions to shareholders from | ||||
Net investment income and net realized gains - Class 2 | (309,661) | (6,314,848) | ||
Capital share transactions | Shares | Shares | ||
Proceeds from shares sold - Class 2 | 46,434 | 1,030,630 | 180,317 | 3,691,931 |
Reinvestment of distributions - Class 2 | 13,774 | 309,661 | 318,519 | 6,314,848 |
Payment for shares redeemed - Class 2 | (191,227) | (4,330,923) | (411,678) | (8,409,040) |
Net increase (decrease) in net assets resulting from capital share transactions | (2,990,632) | 1,597,739 | ||
Total increase in net assets | 3,137,886 | 6,598,652 | ||
Net assets | ||||
Beginning of period | 78,791,248 | 72,192,596 | ||
End of period | $81,929,134 | $78,791,248 |
Year ended December 31 | ||||||
Class 2 | Six months ended June 30, 2021 (unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 |
Net asset value, beginning of period | $21.88 | $20.55 | $18.42 | $20.45 | $19.16 | $18.47 |
Net investment income | 0.06 | 0.16 | 0.22 | 0.20 | 0.17 | 0.17 |
Net realized and unrealized gains (losses) on investments | 1.76 | 3.04 | 3.42 | (0.70) | 2.12 | 1.22 |
Total from investment operations | 1.82 | 3.20 | 3.64 | (0.50) | 2.29 | 1.39 |
Distributions to shareholders from | ||||||
Net investment income | (0.09) | (0.17) | (0.22) | (0.20) | (0.15) | (0.17) |
Net realized gains | 0.00 | (1.70) | (1.29) | (1.33) | (0.85) | (0.53) |
Total distributions to shareholders | (0.09) | (1.87) | (1.51) | (1.53) | (1.00) | (0.70) |
Net asset value, end of period | $23.61 | $21.88 | $20.55 | $18.42 | $20.45 | $19.16 |
Total return1 | 8.33% | 16.59% | 20.16% | (2.90)% | 12.25% | 7.67% |
Ratios to average net assets (annualized) | ||||||
Gross expenses | 1.13% | 1.14% | 1.05% | 1.05% | 1.16% | 1.10% |
Net expenses | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income | 0.50% | 0.78% | 1.07% | 0.94% | 0.86% | 0.93% |
Supplemental data | ||||||
Portfolio turnover rate | 1% | 21% | 4% | 10% | 10% | 15% |
Net assets, end of period (000s omitted) | $81,929 | $78,791 | $72,193 | $68,851 | $81,956 | $81,505 |
1 | Returns for periods of less than one year are not annualized. Returns do not reflect fees and expenses charged pursuant to the terms of variable life insurance policies and variable annuity contracts. |
Gross unrealized gains | $29,936,443 |
Gross unrealized losses | (1,289,654) |
Net unrealized gains | $28,646,789 |
■ | 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 | $ 5,484,478 | $0 | $0 | $ 5,484,478 |
Consumer discretionary | 6,047,244 | 0 | 0 | 6,047,244 |
Consumer staples | 2,880,659 | 0 | 0 | 2,880,659 |
Energy | 1,398,546 | 0 | 0 | 1,398,546 |
Financials | 5,540,161 | 0 | 0 | 5,540,161 |
Health care | 6,392,857 | 0 | 0 | 6,392,857 |
Industrials | 4,194,574 | 0 | 0 | 4,194,574 |
Information technology | 13,539,932 | 0 | 0 | 13,539,932 |
Materials | 1,277,369 | 0 | 0 | 1,277,369 |
Real estate | 1,265,377 | 0 | 0 | 1,265,377 |
Utilities | 1,201,030 | 0 | 0 | 1,201,030 |
U.S. Treasury securities | 28,025,084 | 0 | 0 | 28,025,084 |
Short-term investments | ||||
Investment companies | 3,499,550 | 0 | 0 | 3,499,550 |
80,746,861 | 0 | 0 | 80,746,861 | |
Futures contracts | 106,231 | 0 | 0 | 106,231 |
Total assets | $80,853,092 | $0 | $0 | $80,853,092 |
Liabilities | ||||
Futures contracts | $ 16,391 | $0 | $0 | $ 16,391 |
Total liabilities | $ 16,391 | $0 | $0 | $ 16,391 |
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 |
Amount of realized gains (losses) on derivatives | Change in unrealized gains (losses) on derivatives | |
Equity risk | $ 690,024 | $ (8,201) |
Interest rate risk | (15,719) | (8,838) |
$674,305 | $(17,039) |
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 DePalma (Born 1974) | Treasurer, since 2012 (for certain funds in the Fund Complex); since 2021 (for the remaining funds in the Fund Complex) | 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. |
■ | Information regarding the Transaction: information about the structure, financing sources and material terms and conditions of the Transaction, including the expected impact on the businesses conducted by the Advisers and by Wells Fargo Funds Distributor LLC, as the distributor of Fund shares. |
■ | Information regarding NewCo, GTCR and Reverence Capital: (i) information about NewCo, including information about its expected financial condition and access to capital, and senior leadership team; (ii) the experience of senior management at GTCR and Reverence Capital in acquiring portfolio companies; (iii) the plan to operationalize NewCo, including the transition of necessary infrastructure services through a transition services agreement with Wells Fargo under which Wells Fargo will continue to provide NewCo with certain services for a specified period of time after the closing; and (iv) information regarding regulatory matters, compliance, and risk management functions at NewCo, including resources to be dedicated thereto. |
■ | Impact of the Transaction on WFAM and Service Providers: (i) information regarding any changes to personnel and/or other resources of the Advisers as a result of the Transaction, including assurances regarding comparable and competitive compensation arrangements to attract and retain highly qualified personnel; and (ii) information about the organizational and operating structure with respect to NewCo, the Advisers and the Funds. |
■ | Impact of the Transaction on the Funds and their Shareholders: (i) information regarding anticipated benefits to the Funds as a result of the Transaction; (ii) a commitment that the Funds would not bear any expenses, directly or indirectly, in connection with the Transaction; (iii) confirmation that the Advisers intend to continue to manage the Funds in a manner consistent with each Fund’s current investment objectives and principal investments strategies; and (iv) a commitment that neither NewCo nor WFAM will take any steps that would impose any “unfair burden” (as that term is used in section 15(f)(1)(B) of the 1940 Act) on the Funds as a result of the Transaction. |
P.O. Box 219967
Kansas City, MO 64121-9967
SVT2/SAR136 06-21
VT International Equity Fund
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Financial statements | |
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Board considerations | |
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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
Investment objective | The Fund seeks long-term capital appreciation. |
Manager | Wells Fargo Funds Management, LLC |
Subadviser | Wells Capital Management, LLC |
Portfolio managers | Venkateshwar (Venk) Lal, Dale A. Winner, CFA®‡ |
Average annual total returns (%) as of June 30, 2021 | ||||||
Expense ratios1 (%) | ||||||
Inception date | 1 year | 5 year | 10 year | Gross | Net 2 | |
Class 1 | 8-17-1998 | 42.66 | 9.00 | 4.86 | 1.13 | 0.69 |
Class 2 | 7-31-2002 | 42.11 | 8.73 | 4.60 | 1.38 | 0.94 |
MSCI ACWI ex USA Index (Net)3 | – | 35.72 | 11.08 | 5.45 | – | – |
MSCI ACWI ex USA Value Index (Net)4 | – | 37.56 | 8.54 | 3.48 | – | – |
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, 2022, 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 shares and 0.94% for Class 2 shares. 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 U.S. 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. |
‡ | CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. |
Ten largest holdings (%) as of June 30, 20211 | |
Hitachi Limited | 3.09 |
Tech Mahindra Limited | 3.02 |
Stellantis NV | 3.00 |
Compagnie de Saint-Gobain SA | 3.00 |
Xinyi Glass Holdings Limited | 3.00 |
LafargeHolcim Limited | 2.99 |
LONGi Green Energy Technology Company Limited Class A | 2.81 |
Mitsubishi UFJ Financial Group Incorporated | 2.56 |
Smiths Group plc | 2.52 |
Samsonite International SA | 2.52 |
1 | Figures represent the percentage of the Fund's net assets. Holdings are subject to change and may have changed since the date specified. |
Sector allocation as of June 30, 20211 |
1 | 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. |
Geographic allocation as of June 30, 20211 |
1 | 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. |
Beginning account value 1-1-2021 | Ending account value 6-30-2021 | Expenses paid during the period1 | Annualized net expense ratio | |
Class 1 | ||||
Actual | $1,000.00 | $1,113.51 | $3.62 | 0.69% |
Hypothetical (5% return before expenses) | $1,000.00 | $1,021.37 | $3.46 | 0.69% |
Class 2 | ||||
Actual | $1,000.00 | $1,109.37 | $4.92 | 0.94% |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.13 | $4.71 | 0.94% |
Shares | Value | |||||
Common stocks: 96.34% | ||||||
Australia: 2.33% | ||||||
Qantas Airways Limited (Industrials, Airlines) † | 524,885 | $ 1,834,351 | ||||
Brazil: 0.85% | ||||||
CPFL Energia SA (Utilities, Electric utilities) | 123,200 | 666,555 | ||||
Canada: 2.50% | ||||||
Home Capital Group Incorporated (Financials, Thrifts & mortgage finance) † | 38,900 | 1,167,377 | ||||
Lundin Mining Corporation (Materials, Metals & mining) | 88,572 | 798,834 | ||||
1,966,211 | ||||||
China: 16.59% | ||||||
Alibaba Group Holding Limited ADR (Consumer discretionary, Internet & direct marketing retail) † | 66,104 | 1,873,045 | ||||
China Resources Land Limited (Real estate, Real estate management & development) | 346,000 | 1,401,504 | ||||
LONGi Green Energy Technology Company Limited Class A (Information technology, Semiconductors & semiconductor equipment) | 160,600 | 2,208,127 | ||||
Midea Group Company Limited Class A (Consumer discretionary, Household durables) | 149,398 | 1,650,177 | ||||
Oppein Home Group Incorporated Class A (Consumer discretionary, Household durables) | 43,740 | 960,981 | ||||
Sands China Limited (Consumer discretionary, Hotels, restaurants & leisure) † | 370,800 | 1,561,655 | ||||
Shanghai Pharmaceuticals Holding Company Limited Class H (Health care, Health care providers & services) | 725,300 | 1,584,314 | ||||
Topsports International Holdings Limited (Consumer discretionary, Specialty retail) 144A | 1,104,000 | 1,808,647 | ||||
13,048,450 | ||||||
Denmark: 1.76% | ||||||
Danske Bank AS (Financials, Banks) | 78,749 | 1,385,681 | ||||
France: 3.64% | ||||||
Compagnie de Saint-Gobain SA (Industrials, Building products) | 35,791 | 2,357,072 | ||||
Faurecia SE (Consumer discretionary, Auto components) | 1,821 | 89,069 | ||||
Sanofi SA (Health care, Pharmaceuticals) | 3,984 | 417,415 | ||||
2,863,556 | ||||||
Germany: 2.29% | ||||||
Rheinmetall AG (Industrials, Industrial conglomerates) | 9,157 | 904,464 | ||||
Siemens AG (Industrials, Industrial conglomerates) | 5,178 | 820,402 | ||||
Siemens Energy AG (Industrials, Electrical equipment) † | 2,589 | 78,037 | ||||
1,802,903 | ||||||
Hong Kong: 3.00% | ||||||
Xinyi Glass Holdings Limited (Consumer discretionary, Auto components) | 578,000 | 2,356,130 | ||||
India: 3.02% | ||||||
Tech Mahindra Limited (Information technology, IT services) | 161,129 | 2,374,664 | ||||
Ireland: 1.04% | ||||||
Greencore Group plc (Consumer staples, Food products) † | 472,935 | 821,689 | ||||
Israel: 0.90% | ||||||
Check Point Software Technologies Limited (Information technology, Software) † | 6,091 | 707,348 |
Shares | Value | |||||
Italy: 0.57% | ||||||
Prysmian SpA (Industrials, Electrical equipment) | 12,493 | $ 447,814 | ||||
Japan: 11.88% | ||||||
Daiwa Securities Group Incorporated (Financials, Capital markets) | 332,000 | 1,823,243 | ||||
Hitachi Limited (Industrials, Industrial conglomerates) | 42,500 | 2,433,435 | ||||
Mitsubishi UFJ Financial Group Incorporated (Financials, Banks) | 372,400 | 2,011,592 | ||||
ORIX Corporation (Financials, Diversified financial services) | 102,100 | 1,722,728 | ||||
Takeda Pharmaceutical Company Limited (Health care, Pharmaceuticals) | 40,500 | 1,355,772 | ||||
9,346,770 | ||||||
Luxembourg: 1.19% | ||||||
ArcelorMittal SA (Materials, Metals & mining) | 30,655 | 939,626 | ||||
Mexico: 0.29% | ||||||
Fresnillo plc (Materials, Metals & mining) | 21,717 | 231,797 | ||||
Netherlands: 8.26% | ||||||
Koninklijke Philips NV (Health care, Health care equipment & supplies) « | 27,608 | 1,368,045 | ||||
NN Group NV (Financials, Insurance) | 40,131 | 1,892,945 | ||||
OCI NV (Materials, Chemicals) † | 35,980 | 875,451 | ||||
Stellantis NV (Consumer discretionary, Automobiles) | 120,460 | 2,364,498 | ||||
6,500,939 | ||||||
Norway: 2.07% | ||||||
Den Norske Bank ASA (Financials, Banks) | 74,658 | 1,626,666 | ||||
South Korea: 8.11% | ||||||
Coway Company Limited (Consumer discretionary, Household durables) | 26,051 | 1,820,551 | ||||
Hana Financial Group Incorporated (Financials, Banks) | 43,378 | 1,773,793 | ||||
Samsung Electronics Company Limited GDR (Information technology, Technology hardware, storage & peripherals) 144A | 946 | 1,687,191 | ||||
SK Telecom Company Limited (Communication services, Wireless telecommunication services) | 3,866 | 1,098,539 | ||||
6,380,074 | ||||||
Switzerland: 2.99% | ||||||
LafargeHolcim Limited (Materials, Construction materials) | 39,237 | 2,353,584 | ||||
Thailand: 2.40% | ||||||
Siam Commercial Bank plc (Financials, Banks) | 616,700 | 1,885,697 | ||||
United Kingdom: 11.41% | ||||||
ConvaTec Group plc (Health care, Health care equipment & supplies) 144A | 351,420 | 1,169,603 | ||||
Kingfisher plc (Consumer discretionary, Specialty retail) | 243,629 | 1,228,409 | ||||
Man Group plc (Financials, Capital markets) | 736,171 | 1,832,512 | ||||
Nomad Foods Limited (Consumer staples, Food products) † | 64,389 | 1,820,277 | ||||
Sensata Technologies Holding plc (Industrials, Electrical equipment) † | 16,242 | 941,549 | ||||
Smiths Group plc (Industrials, Industrial conglomerates) | 90,165 | 1,983,131 | ||||
8,975,481 | ||||||
United States: 9.25% | ||||||
Advance Auto Parts Incorporated (Consumer discretionary, Specialty retail) | 5,038 | 1,033,495 | ||||
Baker Hughes Incorporated (Energy, Energy equipment & services) | 71,189 | 1,628,092 | ||||
Berry Global Group Incorporated (Materials, Containers & packaging) † | 22,893 | 1,493,081 |
Shares | Value | |||||
United States: (continued) | ||||||
Gentex Corporation (Consumer discretionary, Auto components) | 34,492 | $ 1,141,340 | ||||
Samsonite International SA (Consumer discretionary, Textiles, apparel & luxury goods) 144A† | 969,000 | 1,981,855 | ||||
7,277,863 | ||||||
Total Common stocks (Cost $60,135,870) | 75,793,849 |
Yield | ||||||
Short-term investments: 2.79% | ||||||
Investment companies: 2.79% | ||||||
Securities Lending Cash Investments LLC ♠∩∞ | 0.03% | 24,995 | 24,995 | |||
Wells Fargo Government Money Market Fund Select Class ♠∞ | 0.03 | 2,169,753 | 2,169,753 | |||
Total Short-term investments (Cost $2,194,748) | 2,194,748 | |||||
Total investments in securities (Cost $62,330,618) | 99.13% | 77,988,597 | ||||
Other assets and liabilities, net | 0.87 | 682,765 | ||||
Total net assets | 100.00% | $78,671,362 |
† | 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. |
« | 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 |
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 | $ 0 | $ 5,377,739 | $ (5,352,744) | $0 | $0 | $ 24,995 | 24,995 | $ 38# | ||||
Wells Fargo Government Money Market Fund Select Class | 1,508,148 | 13,922,829 | (13,261,224) | 0 | 0 | 2,169,753 | 2,169,753 | 142 | ||||
$0 | $0 | $2,194,748 | 2.79% | $180 |
# | Amount shown represents income before fees and rebates. |
Assets | |
Investments in unaffiliated securities (including $23,797 of securities loaned), at value (cost $60,135,870) | $ 75,793,849 |
Investments in affiliated securites, at value (cost $2,194,748) | 2,194,748 |
Foreign currency, at value (cost $238,255) | 236,713 |
Receivable for dividends | 476,963 |
Receivable for investments sold | 67,209 |
Receivable for Fund shares sold | 4,007 |
Receivable for securities lending income, net | 7 |
Prepaid expenses and other assets | 89,131 |
Total assets | 78,862,627 |
Liabilities | |
Payable for Fund shares redeemed | 99,683 |
Payable upon receipt of securities loaned | 24,995 |
Management fee payable | 24,492 |
Professional fees payable | 21,889 |
Distribution fee payable | 12,797 |
Administration fees payable | 5,297 |
Trustees’ fees and expenses payable | 2,112 |
Total liabilities | 191,265 |
Total net assets | $78,671,362 |
Net assets consist of | |
Paid-in capital | $ 69,481,092 |
Total distributable earnings | 9,190,270 |
Total net assets | $78,671,362 |
Computation of net asset value per share | |
Net assets – Class 1 | $ 17,779,081 |
Shares outstanding – Class 11 | 8,638,474 |
Net asset value per share – Class 1 | $2.06 |
Net assets – Class 2 | $ 60,892,281 |
Shares outstanding – Class 21 | 28,628,030 |
Net asset value per share – Class 2 | $2.13 |
1 | The Fund has an unlimited number of authorized shares |
Investment income | |
Dividends (net of foreign withholdings taxes of $110,724) | $ 1,230,993 |
Income from affiliated securities | 6,251 |
Total investment income | 1,237,244 |
Expenses | |
Management fee | 303,150 |
Administration fees | |
Class 1 | 6,924 |
Class 2 | 23,391 |
Distribution fee | |
Class 2 | 73,092 |
Custody and accounting fees | 26,291 |
Professional fees | 26,741 |
Shareholder report expenses | 9,884 |
Trustees’ fees and expenses | 9,399 |
Other fees and expenses | 9,469 |
Total expenses | 488,341 |
Less: Fee waivers and/or expense reimbursements | |
Fund-level | (153,777) |
Net expenses | 334,564 |
Net investment income | 902,680 |
Realized and unrealized gains (losses) on investments | |
Net realized gains (losses) on | |
Unaffiliated securities | 2,845,164 |
Forward foreign currency contracts | (8,714) |
Net realized gains on investments | 2,836,450 |
Net change in unrealized gains (losses) on | |
Unaffiliated securities (net of deferred foreign capital gain tax refund of $(3,138)) | 4,370,362 |
Forward foreign currency contracts | 8,738 |
Net change in unrealized gains (losses) on investments | 4,379,100 |
Net realized and unrealized gains (losses) on investments | 7,215,550 |
Net increase in net assets resulting from operations | $8,118,230 |
Six months ended June 30, 2021 (unaudited) | Year ended December 31, 2020 | |||
Operations | ||||
Net investment income | $ 902,680 | $ 945,532 | ||
Net realized gains (losses) on investments | 2,836,450 | (9,412,420) | ||
Net change in unrealized gains (losses) on investments | 4,379,100 | 10,559,779 | ||
Net increase in net assets resulting from operations | 8,118,230 | 2,092,891 | ||
Distributions to shareholders from | ||||
Net investment income and net realized gains | ||||
Class 1 | 0 | (472,932) | ||
Class 2 | 0 | (1,308,572) | ||
Total distributions to shareholders | 0 | (1,781,504) | ||
Capital share transactions | Shares | Shares | ||
Proceeds from shares sold | ||||
Class 1 | 300,670 | 597,937 | 514,844 | 744,962 |
Class 2 | 581,081 | 1,207,440 | 1,093,316 | 1,614,560 |
1,805,377 | 2,359,522 | |||
Reinvestment of distributions | ||||
Class 1 | 0 | 0 | 319,548 | 472,932 |
Class 2 | 0 | 0 | 849,722 | 1,308,572 |
0 | 1,781,504 | |||
Payment for shares redeemed | ||||
Class 1 | (1,101,079) | (2,157,673) | (2,281,763) | (3,640,125) |
Class 2 | (1,823,557) | (3,721,349) | (4,910,668) | (7,964,863) |
(5,879,022) | (11,604,988) | |||
Net decrease in net assets resulting from capital share transactions | (4,073,645) | (7,463,962) | ||
Total increase (decrease) in net assets | 4,044,585 | (7,152,575) | ||
Net assets | ||||
Beginning of period | 74,626,777 | 81,779,352 | ||
End of period | $78,671,362 | $ 74,626,777 |
Year ended December 31 | ||||||
Class 1 | Six months ended June 30, 2021 (unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 |
Net asset value, beginning of period | $1.85 | $1.83 | $2.85 | $5.34 | $4.41 | $4.82 |
Net investment income | 0.04 | 0.03 1 | 0.06 1 | 0.10 1 | 0.12 1 | 0.11 1 |
Net realized and unrealized gains (losses) on investments | 0.17 | 0.04 | 0.34 | (0.77) | 0.96 | (0.01) |
Total from investment operations | 0.21 | 0.07 | 0.40 | (0.67) | 1.08 | 0.10 |
Distributions to shareholders from | ||||||
Net investment income | 0.00 | (0.05) | (0.13) | (0.61) | (0.15) | (0.15) |
Net realized gains | 0.00 | 0.00 | (1.29) | (1.21) | 0.00 | (0.36) |
Total distributions to shareholders | 0.00 | (0.05) | (1.42) | (1.82) | (0.15) | (0.51) |
Net asset value, end of period | $2.06 | $1.85 | $1.83 | $2.85 | $5.34 | $4.41 |
Total return2 | 11.35% | 4.31% | 16.14% | (16.86)% | 24.86% | 3.25% |
Ratios to average net assets (annualized) | ||||||
Gross expenses | 1.10% | 1.13% | 1.13% | 1.12% | 0.95% | 0.95% |
Net expenses | 0.69% | 0.69% | 0.69% | 0.69% | 0.69% | 0.69% |
Net investment income | 2.57% | 1.59% | 2.55% | 2.41% | 2.41% | 2.49% |
Supplemental data | ||||||
Portfolio turnover rate | 24% | 80% | 48% | 51% | 55% | 77% |
Net assets, end of period (000s omitted) | $17,779 | $17,459 | $19,872 | $19,315 | $28,001 | $25,137 |
1 | Calculated based upon average shares outstanding |
2 | Returns for periods of less than one year are not annualized. Returns 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 | Six months ended June 30, 2021 (unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 |
Net asset value, beginning of period | $1.91 | $1.89 | $2.89 | $5.38 | $4.45 | $4.84 |
Net investment income | 0.03 | 0.03 1 | 0.05 1 | 0.09 1 | 0.11 1 | 0.10 |
Net realized and unrealized gains (losses) on investments | 0.19 | 0.03 | 0.36 | (0.78) | 0.96 | 0.00 |
Total from investment operations | 0.22 | 0.06 | 0.41 | (0.69) | 1.07 | 0.10 |
Distributions to shareholders from | ||||||
Net investment income | 0.00 | (0.04) | (0.12) | (0.59) | (0.14) | (0.13) |
Net realized gains | 0.00 | 0.00 | (1.29) | (1.21) | 0.00 | (0.36) |
Total distributions to shareholders | 0.00 | (0.04) | (1.41) | (1.80) | (0.14) | (0.49) |
Net asset value, end of period | $2.13 | $1.91 | $1.89 | $2.89 | $5.38 | $4.45 |
Total return2 | 11.52% | 3.83% | 16.10% | (17.28)% | 24.34% | 3.30% |
Ratios to average net assets (annualized) | ||||||
Gross expenses | 1.35% | 1.38% | 1.38% | 1.30% | 1.20% | 1.20% |
Net expenses | 0.94% | 0.94% | 0.94% | 0.94% | 0.94% | 0.94% |
Net investment income | 2.33% | 1.34% | 2.30% | 1.82% | 2.18% | 2.25% |
Supplemental data | ||||||
Portfolio turnover rate | 24% | 80% | 48% | 51% | 55% | 77% |
Net assets, end of period (000s omitted) | $60,892 | $57,167 | $61,907 | $59,004 | $318,202 | $288,628 |
1 | Calculated based upon average shares outstanding |
2 | Returns for periods of less than one year are not annualized. Returns do not reflect fees and expenses charged pursuant to the terms of variable life insurance policies and variable annuity contracts. |
Gross unrealized gains | $19,519,138 |
Gross unrealized losses | (1,136,713) |
Net unrealized gains | $18,382,425 |
■ | 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 | $ 1,834,351 | $0 | $0 | $ 1,834,351 |
Brazil | 666,555 | 0 | 0 | 666,555 |
Canada | 1,966,211 | 0 | 0 | 1,966,211 |
China | 13,048,450 | 0 | 0 | 13,048,450 |
Denmark | 1,385,681 | 0 | 0 | 1,385,681 |
France | 2,863,556 | 0 | 0 | 2,863,556 |
Germany | 1,802,903 | 0 | 0 | 1,802,903 |
Hong Kong | 2,356,130 | 0 | 0 | 2,356,130 |
India | 2,374,664 | 0 | 0 | 2,374,664 |
Ireland | 821,689 | 0 | 0 | 821,689 |
Israel | 707,348 | 0 | 0 | 707,348 |
Italy | 447,814 | 0 | 0 | 447,814 |
Japan | 9,346,770 | 0 | 0 | 9,346,770 |
Luxembourg | 939,626 | 0 | 0 | 939,626 |
Mexico | 231,797 | 0 | 0 | 231,797 |
Netherlands | 6,500,939 | 0 | 0 | 6,500,939 |
Norway | 1,626,666 | 0 | 0 | 1,626,666 |
South Korea | 6,380,074 | 0 | 0 | 6,380,074 |
Switzerland | 2,353,584 | 0 | 0 | 2,353,584 |
Thailand | 1,885,697 | 0 | 0 | 1,885,697 |
United Kingdom | 8,975,481 | 0 | 0 | 8,975,481 |
United States | 7,277,863 | 0 | 0 | 7,277,863 |
Short-term investments | ||||
Investment companies | 2,194,748 | 0 | 0 | 2,194,748 |
Total assets | $77,988,597 | $0 | $0 | $77,988,597 |
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 |
Expense ratio caps | |
Class 1 | 0.69% |
Class 2 | 0.94 |
Counterparty | Value of securities on loan | Collateral received1 | Net amount |
BMO Capital Markets Corp. | $23,797 | $(23,797) | $0 |
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 DePalma (Born 1974) | Treasurer, since 2012 (for certain funds in the Fund Complex); since 2021 (for the remaining funds in the Fund Complex) | 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. |
■ | Information regarding the Transaction: information about the structure, financing sources and material terms and conditions of the Transaction, including the expected impact on the businesses conducted by the Advisers and by Wells Fargo Funds Distributor LLC, as the distributor of Fund shares. |
■ | Information regarding NewCo, GTCR and Reverence Capital: (i) information about NewCo, including information about its expected financial condition and access to capital, and senior leadership team; (ii) the experience of senior management at GTCR and Reverence Capital in acquiring portfolio companies; (iii) the plan to operationalize NewCo, including the transition of necessary infrastructure services through a transition services agreement with Wells Fargo under which Wells Fargo will continue to provide NewCo with certain services for a specified period of time after the closing; and (iv) information regarding regulatory matters, compliance, and risk management functions at NewCo, including resources to be dedicated thereto. |
■ | Impact of the Transaction on WFAM and Service Providers: (i) information regarding any changes to personnel and/or other resources of the Advisers as a result of the Transaction, including assurances regarding comparable and competitive compensation arrangements to attract and retain highly qualified personnel; and (ii) information about the organizational and operating structure with respect to NewCo, the Advisers and the Funds. |
■ | Impact of the Transaction on the Funds and their Shareholders: (i) information regarding anticipated benefits to the Funds as a result of the Transaction; (ii) a commitment that the Funds would not bear any expenses, directly or indirectly, in connection with the Transaction; (iii) confirmation that the Advisers intend to continue to manage the Funds in a manner consistent with each Fund’s current investment objectives and principal investments strategies; and (iv) a commitment that neither NewCo nor WFAM will take any steps that would impose any “unfair burden” (as that term is used in section 15(f)(1)(B) of the 1940 Act) on the Funds as a result of the Transaction. |
P.O. Box 219967
Kansas City, MO 64121-9967
SVT3/SAR140 06-21
VT Omega Growth Fund
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Board considerations | |
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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
Investment objective | The Fund seeks long-term capital appreciation. |
Manager | Wells Fargo Funds Management, LLC |
Subadviser | Wells Capital Management, LLC |
Portfolio managers | Michael T. Smith, CFA®‡, Christopher J. Warner, CFA®‡ |
Average annual total returns (%) as of June 30, 2021 | ||||||
Expense ratios1 (%) | ||||||
Inception date | 1 year | 5 year | 10 year | Gross | Net 2 | |
Class 1 | 3-6-1997 | 40.81 | 24.76 | 16.72 | 0.81 | 0.76 |
Class 2 | 7-31-2002 | 40.57 | 24.47 | 16.44 | 1.06 | 1.01 |
Russell 3000® Growth Index3 | – | 42.99 | 23.31 | 17.54 | – | – |
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, 2022, 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 shares and 1.00% for Class 2 shares. 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. |
‡ | CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. |
Ten largest holdings (%) as of June 30, 20211 | |
Microsoft Corporation | 9.87 |
Amazon.com Incorporated | 8.05 |
Alphabet Incorporated Class A | 5.12 |
Visa Incorporated Class A | 3.47 |
PayPal Holdings Incorporated | 3.32 |
UnitedHealth Group Incorporated | 2.84 |
Chipotle Mexican Grill Incorporated | 2.39 |
ServiceNow Incorporated | 2.23 |
Align Technology Incorporated | 2.14 |
MercadoLibre Incorporated | 2.11 |
1 | Figures represent the percentage of the Fund's net assets. Holdings are subject to change and may have changed since the date specified. |
Sector allocation as of June 30, 20211 |
1 | 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. |
Beginning account value 1-1-2021 | Ending account value 6-30-2021 | Expenses paid during the period1 | Annualized net expense ratio | |
Class 1 | ||||
Actual | $1,000.00 | $1,096.74 | $3.90 | 0.75% |
Hypothetical (5% return before expenses) | $1,000.00 | $1,021.08 | $3.76 | 0.75% |
Class 2 | ||||
Actual | $1,000.00 | $1,095.20 | $5.19 | 1.00% |
Hypothetical (5% return before expenses) | $1,000.00 | $1,019.84 | $5.01 | 1.00% |
Shares | Value | ||||
Common stocks: 99.45% | |||||
Communication services: 13.09% | |||||
Entertainment: 4.41% | |||||
Netflix Incorporated † | 3,600 | $ 1,901,556 | |||
Roku Incorporated † | 2,900 | 1,331,825 | |||
Spotify Technology SA † | 6,100 | 1,681,099 | |||
4,914,480 | |||||
Interactive media & services: 7.19% | |||||
Alphabet Incorporated Class A † | 2,335 | 5,701,580 | |||
Alphabet Incorporated Class C † | 194 | 486,226 | |||
IAC/InterActiveCorp | 5,700 | 878,769 | |||
Pinterest Incorporated Class A † | 12,000 | 947,400 | |||
8,013,975 | |||||
Media: 1.49% | |||||
Match Group Incorporated † | 10,287 | 1,658,779 | |||
Consumer discretionary: 16.74% | |||||
Auto components: 1.50% | |||||
Aptiv plc † | 10,600 | 1,667,698 | |||
Automobiles: 0.87% | |||||
Ferrari NV | 4,700 | 968,435 | |||
Hotels, restaurants & leisure: 2.39% | |||||
Chipotle Mexican Grill Incorporated † | 1,720 | 2,666,585 | |||
Internet & direct marketing retail: 10.16% | |||||
Amazon.com Incorporated † | 2,607 | 8,968,497 | |||
MercadoLibre Incorporated † | 1,508 | 2,349,147 | |||
11,317,644 | |||||
Specialty retail: 1.82% | |||||
The Home Depot Incorporated | 6,351 | 2,025,270 | |||
Financials: 2.80% | |||||
Capital markets: 2.80% | |||||
Intercontinental Exchange Incorporated | 13,400 | 1,590,580 | |||
MarketAxess Holdings Incorporated | 3,299 | 1,529,383 | |||
3,119,963 | |||||
Health care: 16.92% | |||||
Biotechnology: 0.84% | |||||
Natera Incorporated † | 8,200 | 930,946 | |||
Health care equipment & supplies: 9.85% | |||||
ABIOMED Incorporated † | 3,200 | 998,752 | |||
Alcon Incorporated | 19,312 | 1,356,861 | |||
Align Technology Incorporated † | 3,900 | 2,382,900 | |||
DexCom Incorporated † | 4,600 | 1,964,200 | |||
Edwards Lifesciences Corporation † | 11,600 | 1,201,412 |
Shares | Value | ||||
Health care equipment & supplies (continued) | |||||
Inari Medical Incorporated † | 8,800 | $ 820,864 | |||
Intuitive Surgical Incorporated † | 2,450 | 2,253,118 | |||
10,978,107 | |||||
Health care providers & services: 4.15% | |||||
Chemed Corporation | 3,070 | 1,456,715 | |||
UnitedHealth Group Incorporated | 7,900 | 3,163,476 | |||
4,620,191 | |||||
Health care technology: 2.08% | |||||
Doximity Incorporated Class A †« | 9,848 | 573,154 | |||
Veeva Systems Incorporated Class A † | 5,600 | 1,741,320 | |||
2,314,474 | |||||
Industrials: 7.44% | |||||
Aerospace & defense: 1.28% | |||||
Teledyne Technologies Incorporated † | 3,400 | 1,424,022 | |||
Air freight & logistics: 1.67% | |||||
United Parcel Service Incorporated Class B | 8,930 | 1,857,172 | |||
Commercial services & supplies: 1.62% | |||||
Waste Connections Incorporated | 15,146 | 1,808,887 | |||
Professional services: 1.31% | |||||
Equifax Incorporated | 6,100 | 1,461,011 | |||
Road & rail: 1.56% | |||||
Union Pacific Corporation | 7,900 | 1,737,447 | |||
Information technology: 40.83% | |||||
Communications equipment: 1.46% | |||||
Motorola Solutions Incorporated | 7,500 | 1,626,375 | |||
Electronic equipment, instruments & components: 1.52% | |||||
Zebra Technologies Corporation Class A † | 3,200 | 1,694,368 | |||
IT services: 19.50% | |||||
Black Knight Incorporated † | 22,100 | 1,723,358 | |||
EPAM Systems Incorporated † | 3,715 | 1,898,216 | |||
Euronet Worldwide Incorporated † | 10,962 | 1,483,707 | |||
Fiserv Incorporated † | 14,660 | 1,567,007 | |||
MongoDB Incorporated † | 4,600 | 1,662,992 | |||
PayPal Holdings Incorporated † | 12,700 | 3,701,796 | |||
Shopify Incorporated Class A † | 1,250 | 1,826,225 | |||
Snowflake Incorporated Class A † | 3,300 | 797,940 | |||
Square Incorporated Class A † | 8,440 | 2,057,672 | |||
StoneCo Limited Class A † | 16,900 | 1,133,314 | |||
Visa Incorporated Class A | 16,544 | 3,868,318 | |||
21,720,545 | |||||
Software: 18.35% | |||||
Atlassian Corporation plc Class A † | 5,600 | 1,438,416 | |||
Autodesk Incorporated † | 5,500 | 1,605,450 | |||
Cadence Design Systems Incorporated † | 12,500 | 1,710,250 |
Shares | Value | ||||
Software (continued) | |||||
Microsoft Corporation | 40,600 | $ 10,998,540 | |||
ServiceNow Incorporated † | 4,510 | 2,478,471 | |||
Unity Software Incorporated † | 8,262 | 907,415 | |||
Zoom Video Communications Incorporated † | 3,380 | 1,308,161 | |||
20,446,703 | |||||
Materials: 1.63% | |||||
Chemicals: 1.63% | |||||
The Sherwin-Williams Company | 6,670 | 1,817,242 | |||
Total Common stocks (Cost $44,767,905) | 110,790,319 |
Yield | |||||
Short-term investments: 1.15% | |||||
Investment companies: 1.15% | |||||
Securities Lending Cash Investments LLC ♠∩∞ | 0.03% | 452,000 | 452,000 | ||
Wells Fargo Government Money Market Fund Select Class ♠∞ | 0.03 | 832,531 | 832,531 | ||
Total Short-term investments (Cost $1,284,531) | 1,284,531 | ||||
Total investments in securities (Cost $46,052,436) | 100.60% | 112,074,850 | |||
Other assets and liabilities, net | (0.60) | (669,072) | |||
Total net assets | 100.00% | $111,405,778 |
† | 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. |
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 | $1,315,192 | $ 6,668,762 | $ (7,531,954) | $0 | $0 | $ 452,000 | 452,000 | $245 # | ||||
Wells Fargo Government Money Market Fund Select Class | 206,090 | 12,066,749 | (11,440,308) | 0 | 0 | 832,531 | 832,531 | 131 | ||||
$0 | $0 | $1,284,531 | 1.15% | $376 |
# | Amount shown represents income before fees and rebates. |
Assets | |
Investments in unaffiliated securities (including $441,520 of securities loaned), at value (cost $44,767,905) | $ 110,790,319 |
Investments in affiliated securites, at value (cost $1,284,531) | 1,284,531 |
Receivable for dividends | 7,767 |
Receivable for Fund shares sold | 70 |
Prepaid expenses and other assets | 842 |
Total assets | 112,083,529 |
Liabilities | |
Payable upon receipt of securities loaned | 452,000 |
Payable for Fund shares redeemed | 70,249 |
Management fee payable | 51,872 |
Payable for investments purchased | 48,299 |
Distribution fee payable | 11,215 |
Administration fees payable | 7,088 |
Trustees’ fees and expenses payable | 2,381 |
Accrued expenses and other liabilities | 34,647 |
Total liabilities | 677,751 |
Total net assets | $111,405,778 |
Net assets consist of | |
Paid-in capital | $ 26,849,203 |
Total distributable earnings | 84,556,575 |
Total net assets | $111,405,778 |
Computation of net asset value per share | |
Net assets – Class 1 | $ 51,095,386 |
Shares outstanding – Class 11 | 1,102,005 |
Net asset value per share – Class 1 | $46.37 |
Net assets – Class 2 | $ 60,310,392 |
Shares outstanding – Class 21 | 1,361,636 |
Net asset value per share – Class 2 | $44.29 |
1 | The Fund has an unlimited number of authorized shares |
Investment income | |
Dividends (net of foreign withholdings taxes of $2,558) | $ 183,394 |
Income from affiliated securities | 2,094 |
Total investment income | 185,488 |
Expenses | |
Management fee | 313,048 |
Administration fees | |
Class 1 | 19,146 |
Class 2 | 22,594 |
Distribution fee | |
Class 2 | 66,758 |
Custody and accounting fees | 6,913 |
Professional fees | 30,672 |
Shareholder report expenses | 10,859 |
Trustees’ fees and expenses | 9,398 |
Other fees and expenses | 3,165 |
Total expenses | 482,553 |
Less: Fee waivers and/or expense reimbursements | |
Fund-level | (17,619) |
Class 1 | (3,021) |
Net expenses | 461,913 |
Net investment loss | (276,425) |
Realized and unrealized gains (losses) on investments | |
Net realized gains on investments | 7,417,208 |
Net change in unrealized gains (losses) on investments | 2,720,056 |
Net realized and unrealized gains (losses) on investments | 10,137,264 |
Net increase in net assets resulting from operations | $ 9,860,839 |
Six months ended June 30, 2021 (unaudited) | Year ended December 31, 2020 | |||
Operations | ||||
Net investment loss | $ (276,425) | $ (384,959) | ||
Net realized gains on investments | 7,417,208 | 11,840,097 | ||
Net change in unrealized gains (losses) on investments | 2,720,056 | 23,208,430 | ||
Net increase in net assets resulting from operations | 9,860,839 | 34,663,568 | ||
Distributions to shareholders from | ||||
Net investment income and net realized gains | ||||
Class 1 | 0 | (3,187,408) | ||
Class 2 | 0 | (4,101,867) | ||
Total distributions to shareholders | 0 | (7,289,275) | ||
Capital share transactions | Shares | Shares | ||
Proceeds from shares sold | ||||
Class 1 | 31,529 | 1,378,647 | 76,567 | 2,678,319 |
Class 2 | 55,154 | 2,250,323 | 102,999 | 3,489,523 |
3,628,970 | 6,167,842 | |||
Reinvestment of distributions | ||||
Class 1 | 0 | 0 | 92,792 | 3,187,408 |
Class 2 | 0 | 0 | 124,829 | 4,101,867 |
0 | 7,289,275 | |||
Payment for shares redeemed | ||||
Class 1 | (115,132) | (4,978,428) | (238,236) | (7,901,466) |
Class 2 | (124,217) | (5,077,670) | (461,624) | (15,801,257) |
(10,056,098) | (23,702,723) | |||
Net decrease in net assets resulting from capital share transactions | (6,427,128) | (10,245,606) | ||
Total increase in net assets | 3,433,711 | 17,128,687 | ||
Net assets | ||||
Beginning of period | 107,972,067 | 90,843,380 | ||
End of period | $111,405,778 | $107,972,067 |
Year ended December 31 | ||||||
Class 1 | Six months ended June 30, 2021 (unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 |
Net asset value, beginning of period | $42.28 | $31.89 | $26.27 | $28.99 | $22.20 | $23.30 |
Net investment income (loss) | (0.04) | (0.07) | (0.03) 1 | (0.03) 1 | (0.02) 1 | 0.10 |
Net realized and unrealized gains (losses) on investments | 4.13 | 13.27 | 9.69 | 0.62 | 7.68 | 0.05 |
Total from investment operations | 4.09 | 13.20 | 9.66 | 0.59 | 7.66 | 0.15 |
Distributions to shareholders from | ||||||
Net investment income | 0.00 | 0.00 | 0.00 | 0.00 | (0.06) | 0.00 |
Net realized gains | 0.00 | (2.81) | (4.04) | (3.31) | (0.81) | (1.25) |
Total distributions to shareholders | 0.00 | (2.81) | (4.04) | (3.31) | (0.87) | (1.25) |
Net asset value, end of period | $46.37 | $42.28 | $31.89 | $26.27 | $28.99 | $22.20 |
Total return2 | 9.67% | 43.41% | 37.39% | 0.52% | 34.95% | 0.77% |
Ratios to average net assets (annualized) | ||||||
Gross expenses | 0.80% | 0.80% | 0.82% | 0.81% | 0.82% | 0.82% |
Net expenses | 0.75% | 0.75% | 0.75% | 0.75% | 0.75% | 0.75% |
Net investment income (loss) | (0.39)% | (0.27)% | (0.08)% | (0.10)% | (0.07)% | 0.26% |
Supplemental data | ||||||
Portfolio turnover rate | 11% | 24% | 31% | 46% | 67% | 90% |
Net assets, end of period (000s omitted) | $51,095 | $50,122 | $40,001 | $33,043 | $38,687 | $33,373 |
1 | Calculated based upon average shares outstanding |
2 | Returns for periods of less than one year are not annualized. Returns 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 | Six months ended June 30, 2021 (unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 |
Net asset value, beginning of period | $40.43 | $30.55 | $25.23 | $27.91 | $21.38 | $22.54 |
Net investment income (loss) | (0.16) | (0.17) 1 | (0.10) 1 | (0.11) | (0.08) 1 | 0.00 1,2 |
Net realized and unrealized gains (losses) on investments | 4.02 | 12.73 | 9.29 | 0.61 | 7.39 | 0.09 |
Total from investment operations | 3.86 | 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 | (0.00) 2 | 0.00 |
Net realized gains | 0.00 | (2.68) | (3.87) | (3.18) | (0.78) | (1.25) |
Total distributions to shareholders | 0.00 | (2.68) | (3.87) | (3.18) | (0.78) | (1.25) |
Net asset value, end of period | $44.29 | $40.43 | $30.55 | $25.23 | $27.91 | $21.38 |
Total return3 | 9.52% | 43.18% | 37.04% | 0.28% | 34.60% | 0.52% |
Ratios to average net assets (annualized) | ||||||
Gross expenses | 1.03% | 1.04% | 1.06% | 1.06% | 1.07% | 1.07% |
Net expenses | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | (0.64)% | (0.52)% | (0.33)% | (0.35)% | (0.31)% | 0.01% |
Supplemental data | ||||||
Portfolio turnover rate | 11% | 24% | 31% | 46% | 67% | 90% |
Net assets, end of period (000s omitted) | $60,310 | $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 | Returns for periods of less than one year are not annualized. Returns do not reflect fees and expenses charged pursuant to the terms of variable life insurance policies and variable annuity contracts. |
Gross unrealized gains | $66,152,694 |
Gross unrealized losses | (129,997) |
Net unrealized gains | $66,022,697 |
■ | 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 | $ 14,587,234 | $0 | $0 | $ 14,587,234 |
Consumer discretionary | 18,645,632 | 0 | 0 | 18,645,632 |
Financials | 3,119,963 | 0 | 0 | 3,119,963 |
Health care | 18,843,718 | 0 | 0 | 18,843,718 |
Industrials | 8,288,539 | 0 | 0 | 8,288,539 |
Information technology | 45,487,991 | 0 | 0 | 45,487,991 |
Materials | 1,817,242 | 0 | 0 | 1,817,242 |
Short-term investments | ||||
Investment companies | 1,284,531 | 0 | 0 | 1,284,531 |
Total assets | $112,074,850 | $0 | $0 | $112,074,850 |
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 |
Expense ratio caps | |
Class 1 | 0.75% |
Class 2 | 1.00 |
Counterparty | Value of securities on loan | Collateral received1 | Net amount |
UBS Securities LLC | $441,520 | $(441,520) | $0 |
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 DePalma (Born 1974) | Treasurer, since 2012 (for certain funds in the Fund Complex); since 2021 (for the remaining funds in the Fund Complex) | 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. |
■ | Information regarding the Transaction: information about the structure, financing sources and material terms and conditions of the Transaction, including the expected impact on the businesses conducted by the Advisers and by Wells Fargo Funds Distributor LLC, as the distributor of Fund shares. |
■ | Information regarding NewCo, GTCR and Reverence Capital: (i) information about NewCo, including information about its expected financial condition and access to capital, and senior leadership team; (ii) the experience of senior management at GTCR and Reverence Capital in acquiring portfolio companies; (iii) the plan to operationalize NewCo, including the transition of necessary infrastructure services through a transition services agreement with Wells Fargo under which Wells Fargo will continue to provide NewCo with certain services for a specified period of time after the closing; and (iv) information regarding regulatory matters, compliance, and risk management functions at NewCo, including resources to be dedicated thereto. |
■ | Impact of the Transaction on WFAM and Service Providers: (i) information regarding any changes to personnel and/or other resources of the Advisers as a result of the Transaction, including assurances regarding comparable and competitive compensation arrangements to attract and retain highly qualified personnel; and (ii) information about the organizational and operating structure with respect to NewCo, the Advisers and the Funds. |
■ | Impact of the Transaction on the Funds and their Shareholders: (i) information regarding anticipated benefits to the Funds as a result of the Transaction; (ii) a commitment that the Funds would not bear any expenses, directly or indirectly, in connection with the Transaction; (iii) confirmation that the Advisers intend to continue to manage the Funds in a manner consistent with each Fund’s current investment objectives and principal investments strategies; and (iv) a commitment that neither NewCo nor WFAM will take any steps that would impose any “unfair burden” (as that term is used in section 15(f)(1)(B) of the 1940 Act) on the Funds as a result of the Transaction. |
P.O. Box 219967
Kansas City, MO 64121-9967
SVT5/SAR142 06-21
2 | |
4 | |
6 | |
7 | |
Financial statements | |
11 | |
12 | |
13 | |
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16 | |
21 | |
Board considerations | |
25 | |
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33 |
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
Investment objective | The Fund seeks long-term capital appreciation. |
Manager | Wells Fargo Funds Management, LLC |
Subadviser | Wells Capital Management, LLC |
Portfolio managers | Kurt Gunderson*, Christopher G. Miller, CFA®‡ |
Average annual total returns (%) as of June 30, 2021 | ||||||
Expense ratios1 (%) | ||||||
Inception date | 1 year | 5 year | 10 year | Gross | Net 2 | |
Class 1 3 | 8-26-2011 | 45.82 | 17.58 | 12.79 | 0.86 | 0.75 |
Class 2 | 5-8-1992 | 45.43 | 17.29 | 12.51 | 1.11 | 1.00 |
Russell 3000® Index4 | – | 44.16 | 17.89 | 14.70 | – | – |
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, 2022, 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 shares and 1.00% for Class 2 shares. 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. |
‡ | CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. |
* | Mr. Gunderson became a portfolio manager of the Fund on February 1, 2021. |
Ten largest holdings (%) as of June 30, 20211 | |
Alphabet Incorporated Class C | 5.58 |
Apple Incorporated | 3.89 |
Amazon.com Incorporated | 3.65 |
Facebook Incorporated Class A | 3.34 |
Salesforce.com Incorporated | 3.14 |
Texas Instruments Incorporated | 2.77 |
MasterCard Incorporated Class A | 2.59 |
Carlisle Companies Incorporated | 2.32 |
Marvell Technology Incorporated | 2.22 |
Equinix Incorporated | 1.96 |
1 | Figures represent the percentage of the Fund's net assets. Holdings are subject to change and may have changed since the date specified. |
Sector allocation as of June 30, 20211 |
1 | 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. |
Beginning account value 1-1-2021 | Ending account value 6-30-2021 | Expenses paid during the period1 | Annualized net expense ratio | |
Class 1 | ||||
Actual | $1,000.00 | $1,143.49 | $3.99 | 0.75% |
Hypothetical (5% return before expenses) | $1,000.00 | $1,021.08 | $3.76 | 0.75% |
Class 2 | ||||
Actual | $1,000.00 | $1,142.42 | $5.31 | 1.00% |
Hypothetical (5% return before expenses) | $1,000.00 | $1,019.84 | $5.01 | 1.00% |
Shares | Value | ||||
Common stocks: 98.52% | |||||
Communication services: 10.80% | |||||
Interactive media & services: 8.92% | |||||
Alphabet Incorporated Class C † | 4,758 | $ 11,925,071 | |||
Facebook Incorporated Class A † | 20,540 | 7,141,963 | |||
19,067,034 | |||||
Wireless telecommunication services: 1.88% | |||||
T-Mobile US Incorporated † | 27,797 | 4,025,840 | |||
Consumer discretionary: 11.37% | |||||
Automobiles: 1.80% | |||||
General Motors Company † | 65,062 | 3,849,719 | |||
Internet & direct marketing retail: 4.81% | |||||
Amazon.com Incorporated † | 2,266 | 7,795,403 | |||
Farfetch Limited Class A † | 49,477 | 2,491,662 | |||
10,287,065 | |||||
Multiline retail: 1.65% | |||||
Dollar General Corporation | 16,257 | 3,517,852 | |||
Specialty retail: 3.11% | |||||
Burlington Stores Incorporated † | 10,285 | 3,311,667 | |||
Ulta Beauty Incorporated † | 9,662 | 3,340,830 | |||
6,652,497 | |||||
Consumer staples: 2.46% | |||||
Food & staples retailing: 1.38% | |||||
Sysco Corporation | 37,884 | 2,945,481 | |||
Household products: 1.08% | |||||
Church & Dwight Company Incorporated | 26,973 | 2,298,639 | |||
Financials: 7.42% | |||||
Capital markets: 4.89% | |||||
CME Group Incorporated | 6,412 | 1,363,704 | |||
Intercontinental Exchange Incorporated | 26,283 | 3,119,792 | |||
S&P Global Incorporated | 8,977 | 3,684,610 | |||
The Charles Schwab Corporation | 31,472 | 2,291,476 | |||
10,459,582 | |||||
Insurance: 2.53% | |||||
Chubb Limited | 12,818 | 2,037,293 | |||
Marsh & McLennan Companies Incorporated | 23,933 | 3,366,894 | |||
5,404,187 | |||||
Health care: 13.73% | |||||
Health care equipment & supplies: 6.22% | |||||
Align Technology Incorporated † | 5,392 | 3,294,512 | |||
Boston Scientific Corporation † | 77,408 | 3,309,966 |
Shares | Value | ||||
Health care equipment & supplies (continued) | |||||
LivaNova plc † | 42,380 | $ 3,564,582 | |||
Medtronic plc | 25,166 | 3,123,856 | |||
13,292,916 | |||||
Health care providers & services: 1.95% | |||||
UnitedHealth Group Incorporated | 10,394 | 4,162,173 | |||
Health care technology: 0.47% | |||||
Schrodinger Incorporated † | 13,341 | 1,008,713 | |||
Life sciences tools & services: 4.61% | |||||
Agilent Technologies Incorporated | 20,325 | 3,004,238 | |||
Bio-Rad Laboratories Incorporated Class A † | 4,973 | 3,204,054 | |||
Thermo Fisher Scientific Incorporated | 7,255 | 3,659,930 | |||
9,868,222 | |||||
Pharmaceuticals: 0.48% | |||||
Viatris Incorporated | 71,591 | 1,023,035 | |||
Industrials: 17.22% | |||||
Aerospace & defense: 3.05% | |||||
MTU Aero Engines AG | 10,000 | 2,477,032 | |||
Teledyne Technologies Incorporated † | 9,651 | 4,042,128 | |||
6,519,160 | |||||
Commercial services & supplies: 1.69% | |||||
Republic Services Incorporated | 32,891 | 3,618,339 | |||
Industrial conglomerates: 2.32% | |||||
Carlisle Companies Incorporated | 25,888 | 4,954,445 | |||
Machinery: 6.54% | |||||
Fortive Corporation | 54,701 | 3,814,848 | |||
Ingersoll Rand Incorporated † | 53,549 | 2,613,727 | |||
Otis Worldwide Corporation | 36,754 | 3,005,375 | |||
Rexnord Corporation | 50,414 | 2,522,717 | |||
SPX Corporation † | 33,287 | 2,033,170 | |||
13,989,837 | |||||
Professional services: 1.41% | |||||
Dun & Bradstreet Holdings Incorporated † | 140,634 | 3,005,349 | |||
Trading companies & distributors: 2.21% | |||||
Air Lease Corporation | 58,193 | 2,428,976 | |||
United Rentals Incorporated † | 7,211 | 2,300,377 | |||
4,729,353 | |||||
Information technology: 25.72% | |||||
Electronic equipment, instruments & components: 1.65% | |||||
Amphenol Corporation Class A | 51,549 | 3,526,467 | |||
IT services: 5.68% | |||||
Fidelity National Information Services Incorporated | 22,908 | 3,245,376 |
Shares | Value | ||||
IT services (continued) | |||||
Genpact Limited | 73,882 | $ 3,356,459 | |||
MasterCard Incorporated Class A | 15,151 | 5,531,479 | |||
12,133,314 | |||||
Semiconductors & semiconductor equipment: 4.99% | |||||
Marvell Technology Incorporated | 81,320 | 4,743,396 | |||
Texas Instruments Incorporated | 30,802 | 5,923,225 | |||
10,666,621 | |||||
Software: 9.51% | |||||
Fair Isaac Corporation † | 6,227 | 3,130,188 | |||
Palo Alto Networks Incorporated † | 9,853 | 3,655,956 | |||
Salesforce.com Incorporated † | 27,480 | 6,712,540 | |||
ServiceNow Incorporated † | 5,553 | 3,051,651 | |||
Workday Incorporated Class A † | 15,790 | 3,769,705 | |||
20,320,040 | |||||
Technology hardware, storage & peripherals: 3.89% | |||||
Apple Incorporated | 60,756 | 8,321,142 | |||
Materials: 2.45% | |||||
Chemicals: 1.65% | |||||
Ashland Global Holdings Incorporated | 22,821 | 1,996,838 | |||
The Sherwin-Williams Company | 5,660 | 1,542,067 | |||
3,538,905 | |||||
Metals & mining: 0.80% | |||||
Steel Dynamics Incorporated | 28,579 | 1,703,308 | |||
Real estate: 7.35% | |||||
Equity REITs: 7.35% | |||||
American Tower Corporation | 14,398 | 3,889,476 | |||
Equinix Incorporated | 5,225 | 4,193,585 | |||
Sun Communities Incorporated | 22,708 | 3,892,151 | |||
VICI Properties Incorporated | 120,049 | 3,723,920 | |||
15,699,132 | |||||
Total Common stocks (Cost $121,787,536) | 210,588,367 |
Yield | |||||
Short-term investments: 1.50% | |||||
Investment companies: 1.50% | |||||
Wells Fargo Government Money Market Fund Select Class ♠∞ | 0.03% | 3,214,729 | 3,214,729 | ||
Total Short-term investments (Cost $3,214,729) | 3,214,729 | ||||
Total investments in securities (Cost $125,002,265) | 100.02% | 213,803,096 | |||
Other assets and liabilities, net | (0.02) | (40,045) | |||
Total net assets | 100.00% | $213,763,051 |
† | 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: | |
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 | $2,161,993 | $18,752,918 | $(17,700,182) | $0 | $0 | $3,214,729 | 1.50% | 3,214,729 | $290 |
Assets | |
Investments in unaffiliated securities, at value (cost $121,787,536) | $ 210,588,367 |
Investments in affiliated securites, at value (cost $3,214,729) | 3,214,729 |
Receivable for dividends | 227,296 |
Receivable for investments sold | 69,873 |
Receivable for Fund shares sold | 586 |
Prepaid expenses and other assets | 108 |
Total assets | 214,100,959 |
Liabilities | |
Management fee payable | 106,038 |
Payable for Fund shares redeemed | 101,615 |
Payable for investments purchased | 52,857 |
Distribution fee payable | 36,742 |
Professional fees payable | 18,123 |
Administration fees payable | 13,927 |
Trustees’ fees and expenses payable | 1,900 |
Accrued expenses and other liabilities | 6,706 |
Total liabilities | 337,908 |
Total net assets | $213,763,051 |
Net assets consist of | |
Paid-in capital | $ 98,501,729 |
Total distributable earnings | 115,261,322 |
Total net assets | $213,763,051 |
Computation of net asset value per share | |
Net assets – Class 1 | $ 33,350,912 |
Shares outstanding – Class 11 | 989,230 |
Net asset value per share – Class 1 | $33.71 |
Net assets – Class 2 | $ 180,412,139 |
Shares outstanding – Class 21 | 5,330,078 |
Net asset value per share – Class 2 | $33.85 |
1 | The Fund has an unlimited number of authorized shares |
Investment income | |
Dividends (net of foreign withholdings taxes of $17,823) | $ 841,427 |
Income from affiliated securities | 290 |
Total investment income | 841,717 |
Expenses | |
Management fee | 698,083 |
Administration fees | |
Class 1 | 12,766 |
Class 2 | 67,015 |
Distribution fee | |
Class 2 | 209,421 |
Custody and accounting fees | 9,493 |
Professional fees | 26,839 |
Shareholder report expenses | 16,515 |
Trustees’ fees and expenses | 9,398 |
Other fees and expenses | 5,175 |
Total expenses | 1,054,705 |
Less: Fee waivers and/or expense reimbursements | |
Fund-level | (97,338) |
Net expenses | 957,367 |
Net investment loss | (115,650) |
Realized and unrealized gains (losses) on investments | |
Net realized gains on investments | 16,678,888 |
Net change in unrealized gains (losses) on investments | 10,746,468 |
Net realized and unrealized gains (losses) on investments | 27,425,356 |
Net increase in net assets resulting from operations | $27,309,706 |
Six months ended June 30, 2021 (unaudited) | Year ended December 31, 2020 | |||
Operations | ||||
Net investment income (loss) | $ (115,650) | $ 181,464 | ||
Net realized gains on investments | 16,678,888 | 9,938,608 | ||
Net change in unrealized gains (losses) on investments | 10,746,468 | 24,029,460 | ||
Net increase in net assets resulting from operations | 27,309,706 | 34,149,532 | ||
Distributions to shareholders from | ||||
Net investment income and net realized gains | ||||
Class 1 | 0 | (2,328,698) | ||
Class 2 | 0 | (11,686,840) | ||
Total distributions to shareholders | 0 | (14,015,538) | ||
Capital share transactions | Shares | Shares | ||
Proceeds from shares sold | ||||
Class 1 | 7,923 | 257,159 | 21,174 | 498,604 |
Class 2 | 40,293 | 1,290,250 | 123,816 | 3,170,894 |
1,547,409 | 3,669,498 | |||
Reinvestment of distributions | ||||
Class 1 | 0 | 0 | 98,715 | 2,328,698 |
Class 2 | 0 | 0 | 492,285 | 11,686,840 |
0 | 14,015,538 | |||
Payment for shares redeemed | ||||
Class 1 | (106,518) | (3,373,328) | (192,184) | (4,908,447) |
Class 2 | (357,728) | (11,124,493) | (899,151) | (22,533,873) |
(14,497,821) | (27,442,320) | |||
Net decrease in net assets resulting from capital share transactions | (12,950,412) | (9,757,284) | ||
Total increase in net assets | 14,359,294 | 10,376,710 | ||
Net assets | ||||
Beginning of period | 199,403,757 | 189,027,047 | ||
End of period | $213,763,051 | $199,403,757 |
Year ended December 31 | ||||||
Class 1 | Six months ended June 30, 2021 (unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 |
Net asset value, beginning of period | $29.48 | $26.56 | $22.76 | $27.05 | $24.60 | $25.00 |
Net investment income | 0.01 | 0.09 | 0.17 | 0.15 | 0.13 | 0.22 |
Net realized and unrealized gains (losses) on investments | 4.22 | 5.03 | 6.84 | (1.69) | 4.77 | 2.59 |
Total from investment operations | 4.23 | 5.12 | 7.01 | (1.54) | 4.90 | 2.81 |
Distributions to shareholders from | ||||||
Net investment income | 0.00 | (0.19) | (0.15) | (0.12) | (0.25) | (0.60) |
Net realized gains | 0.00 | (2.01) | (3.06) | (2.63) | (2.20) | (2.61) |
Total distributions to shareholders | 0.00 | (2.20) | (3.21) | (2.75) | (2.45) | (3.21) |
Net asset value, end of period | $33.71 | $29.48 | $26.56 | $22.76 | $27.05 | $24.60 |
Total return1 | 14.35% | 21.32% | 31.81% | (6.93)% | 20.72% | 12.52% |
Ratios to average net assets (annualized) | ||||||
Gross expenses | 0.85% | 0.86% | 0.85% | 0.84% | 0.86% | 0.85% |
Net expenses | 0.75% | 0.75% | 0.75% | 0.75% | 0.75% | 0.75% |
Net investment income | 0.09% | 0.31% | 0.67% | 0.52% | 0.43% | 0.65% |
Supplemental data | ||||||
Portfolio turnover rate | 15% | 42% | 25% | 31% | 36% | 47% |
Net assets, end of period (000s omitted) | $33,351 | $32,066 | $30,811 | $27,165 | $33,843 | $33,035 |
1 | Returns for periods of less than one year are not annualized. Returns 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 | Six months ended June 30, 2021 (unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 |
Net asset value, beginning of period | $29.63 | $26.68 | $22.85 | $27.14 | $24.67 | $25.05 |
Net investment income (loss) | (0.02) | 0.03 | 0.11 | 0.08 | 0.06 | 0.13 |
Net realized and unrealized gains (losses) on investments | 4.24 | 5.05 | 6.86 | (1.69) | 4.79 | 2.63 |
Total from investment operations | 4.22 | 5.08 | 6.97 | (1.61) | 4.85 | 2.76 |
Distributions to shareholders from | ||||||
Net investment income | 0.00 | (0.12) | (0.08) | (0.05) | (0.18) | (0.53) |
Net realized gains | 0.00 | (2.01) | (3.06) | (2.63) | (2.20) | (2.61) |
Total distributions to shareholders | 0.00 | (2.13) | (3.14) | (2.68) | (2.38) | (3.14) |
Net asset value, end of period | $33.85 | $29.63 | $26.68 | $22.85 | $27.14 | $24.67 |
Total return1 | 14.24% | 21.00% | 31.46% | (7.15)% | 20.44% | 12.23% |
Ratios to average net assets (annualized) | ||||||
Gross expenses | 1.10% | 1.11% | 1.10% | 1.09% | 1.11% | 1.10% |
Net expenses | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | (0.16)% | 0.06% | 0.42% | 0.27% | 0.18% | 0.39% |
Supplemental data | ||||||
Portfolio turnover rate | 15% | 42% | 25% | 31% | 36% | 47% |
Net assets, end of period (000s omitted) | $180,412 | $167,338 | $158,216 | $134,972 | $165,992 | $158,783 |
1 | Returns for periods of less than one year are not annualized. Returns do not reflect fees and expenses charged pursuant to the terms of variable life insurance policies and variable annuity contracts. |
Gross unrealized gains | $88,705,038 |
Gross unrealized losses | 0 |
Net unrealized gains | $88,705,038 |
■ | 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 | $ 23,092,874 | $0 | $0 | $ 23,092,874 |
Consumer discretionary | 24,307,133 | 0 | 0 | 24,307,133 |
Consumer staples | 5,244,120 | 0 | 0 | 5,244,120 |
Financials | 15,863,769 | 0 | 0 | 15,863,769 |
Health care | 29,355,059 | 0 | 0 | 29,355,059 |
Industrials | 36,816,483 | 0 | 0 | 36,816,483 |
Information technology | 54,967,584 | 0 | 0 | 54,967,584 |
Materials | 5,242,213 | 0 | 0 | 5,242,213 |
Real estate | 15,699,132 | 0 | 0 | 15,699,132 |
Short-term investments | ||||
Investment companies | 3,214,729 | 0 | 0 | 3,214,729 |
Total assets | $213,803,096 | $0 | $0 | $213,803,096 |
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 |
Expense ratio caps | |
Class 1 | 0.75% |
Class 2 | 1.00 |
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 DePalma (Born 1974) | Treasurer, since 2012 (for certain funds in the Fund Complex); since 2021 (for the remaining funds in the Fund Complex) | 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. |
■ | Information regarding the Transaction: information about the structure, financing sources and material terms and conditions of the Transaction, including the expected impact on the businesses conducted by the Advisers and by Wells Fargo Funds Distributor LLC, as the distributor of Fund shares. |
■ | Information regarding NewCo, GTCR and Reverence Capital: (i) information about NewCo, including information about its expected financial condition and access to capital, and senior leadership team; (ii) the experience of senior management at GTCR and Reverence Capital in acquiring portfolio companies; (iii) the plan to operationalize NewCo, including the transition of necessary infrastructure services through a transition services agreement with Wells Fargo under which Wells Fargo will continue to provide NewCo with certain services for a specified period of time after the closing; and (iv) information regarding regulatory matters, compliance, and risk management functions at NewCo, including resources to be dedicated thereto. |
■ | Impact of the Transaction on WFAM and Service Providers: (i) information regarding any changes to personnel and/or other resources of the Advisers as a result of the Transaction, including assurances regarding comparable and competitive compensation arrangements to attract and retain highly qualified personnel; and (ii) information about the organizational and operating structure with respect to NewCo, the Advisers and the Funds. |
■ | Impact of the Transaction on the Funds and their Shareholders: (i) information regarding anticipated benefits to the Funds as a result of the Transaction; (ii) a commitment that the Funds would not bear any expenses, directly or indirectly, in connection with the Transaction; (iii) confirmation that the Advisers intend to continue to manage the Funds in a manner consistent with each Fund’s current investment objectives and principal investments strategies; and (iv) a commitment that neither NewCo nor WFAM will take any steps that would impose any “unfair burden” (as that term is used in section 15(f)(1)(B) of the 1940 Act) on the Funds as a result of the Transaction. |
P.O. Box 219967
Kansas City, MO 64121-9967
SVT6/SAR143 06-21
VT Small Cap Growth Fund
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Financial statements | |
12 | |
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23 | |
Board considerations | |
27 | |
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35 |
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
Investment objective | The Fund seeks long-term capital appreciation. |
Manager | Wells Fargo Funds Management, LLC |
Subadviser | Wells Capital Management, LLC |
Portfolio managers | Robert Gruendyke, CFA®‡†, David Nazaret, CFA®‡†, Thomas C. Ognar, CFA®‡ |
Average annual total returns (%) as of June 30, 2021 | ||||||
Expense ratios1 (%) | ||||||
Inception date | 1 year | 5 year | 10 year | Gross | Net 2 | |
Class 1 | 7-16-2010 | 56.73 | 24.85 | 15.56 | 0.93 | 0.93 |
Class 2 | 5-1-1995 | 56.32 | 24.57 | 15.28 | 1.18 | 1.18 |
Russell 2000® Growth Index3 | – | 51.36 | 18.76 | 13.52 | – | – |
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, 2022, 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 shares and 1.20% for Class 2 shares. 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. |
‡ | CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute. |
Ten largest holdings (%) as of June 30, 20211 | |
Shockwave Medical Incorporated | 2.90 |
Rapid7 Incorporated | 2.85 |
Crocs Incorporated | 2.73 |
ASGN Incorporated | 2.72 |
Boot Barn Holdings Incorporated | 2.34 |
Vericel Corporation | 2.27 |
SPS Commerce Incorporated | 2.24 |
Q2 Holdings Incorporated | 2.23 |
Rexnord Corporation | 2.22 |
Sprout Social Incorporated Class A | 1.95 |
1 | Figures represent the percentage of the Fund's net assets. Holdings are subject to change and may have changed since the date specified. |
Sector allocation as of June 30, 20211 |
1 | 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. |
Beginning account value 1-1-2021 | Ending account value 6-30-2021 | Expenses paid during the period1 | Annualized net expense ratio | |
Class 1 | ||||
Actual | $1,000.00 | $1,092.51 | $4.77 | 0.92% |
Hypothetical (5% return before expenses) | $1,000.00 | $1,020.23 | $4.61 | 0.92% |
Class 2 | ||||
Actual | $1,000.00 | $1,091.71 | $6.07 | 1.17% |
Hypothetical (5% return before expenses) | $1,000.00 | $1,018.99 | $5.86 | 1.17% |
Shares | Value | ||||
Common stocks: 98.78% | |||||
Communication services: 3.80% | |||||
Diversified telecommunication services: 1.76% | |||||
Bandwidth Incorporated Class A † | 59,200 | $ 8,164,864 | |||
Interactive media & services: 0.62% | |||||
EverQuote Incorporated Class A † | 87,751 | 2,867,703 | |||
Media: 1.42% | |||||
Cardlytics Incorporated † | 51,870 | 6,583,859 | |||
Consumer discretionary: 18.02% | |||||
Auto components: 1.40% | |||||
Fox Factory Holding Corporation † | 41,810 | 6,508,145 | |||
Hotels, restaurants & leisure: 3.65% | |||||
Bally's Corporation † | 71,709 | 3,880,174 | |||
Papa John's International Incorporated | 52,520 | 5,485,189 | |||
Wingstop Incorporated | 47,969 | 7,561,353 | |||
16,926,716 | |||||
Household durables: 0.48% | |||||
Purple Innovation Incorporated † | 83,928 | 2,216,538 | |||
Internet & direct marketing retail: 2.22% | |||||
CarParts.com Incorporated † | 118,210 | 2,406,756 | |||
Fiverr International Limited † | 18,950 | 4,595,186 | |||
The RealReal Incorporated † | 166,900 | 3,297,944 | |||
10,299,886 | |||||
Leisure products: 1.65% | |||||
YETI Holdings Incorporated † | 83,396 | 7,657,421 | |||
Specialty retail: 5.07% | |||||
Boot Barn Holdings Incorporated † | 129,240 | 10,862,622 | |||
Cricut Incorporated Class A †« | 51,924 | 2,211,962 | |||
Leslie's Incorporated † | 160,292 | 4,406,427 | |||
Lithia Motors Incorporated Class A | 15,920 | 5,470,749 | |||
Petco Health & Wellness Company † | 26,127 | 585,506 | |||
23,537,266 | |||||
Textiles, apparel & luxury goods: 3.55% | |||||
Crocs Incorporated † | 108,780 | 12,675,046 | |||
Deckers Outdoor Corporation † | 9,980 | 3,833,019 | |||
16,508,065 | |||||
Consumer staples: 4.86% | |||||
Beverages: 1.78% | |||||
Celsius Holdings Incorporated † | 108,700 | 8,270,983 | |||
Food & staples retailing: 0.51% | |||||
The Chef's Warehouse Incorporated † | 73,870 | 2,351,282 |
Shares | Value | ||||
Food products: 2.28% | |||||
Freshpet Incorporated † | 50,707 | $ 8,263,213 | |||
Vital Farms Incorporated †« | 116,749 | 2,330,310 | |||
10,593,523 | |||||
Personal products: 0.29% | |||||
The Honest Company Incorporated †« | 83,004 | 1,343,835 | |||
Financials: 4.34% | |||||
Capital markets: 1.53% | |||||
Assetmark Financial Holdings † | 16,515 | 413,866 | |||
Stifel Financial Corporation | 103,135 | 6,689,336 | |||
7,103,202 | |||||
Diversified financial services: 0.20% | |||||
VPC Impact Acquisition Holdings †« | 94,800 | 948,948 | |||
Insurance: 2.61% | |||||
Goosehead Insurance Incorporated Class A | 29,307 | 3,730,781 | |||
Kinsale Capital Group Incorporated | 50,776 | 8,366,362 | |||
12,097,143 | |||||
Health care: 29.84% | |||||
Biotechnology: 8.97% | |||||
Arcutis Biotherapeutics Incorporated † | 196,246 | 5,355,553 | |||
Arena Pharmaceuticals Incorporated † | 25,520 | 1,740,464 | |||
Biohaven Pharmaceutical Holding Company † | 18,680 | 1,813,454 | |||
CareDx Incorporated † | 59,284 | 5,425,672 | |||
Fate Therapeutics Incorporated † | 46,060 | 3,997,547 | |||
Halozyme Therapeutics Incorporated † | 142,240 | 6,459,118 | |||
Natera Incorporated † | 55,611 | 6,313,517 | |||
Vericel Corporation † | 200,390 | 10,520,475 | |||
41,625,800 | |||||
Health care equipment & supplies: 8.67% | |||||
Axonics Modulation Technologies Incorporated † | 18,500 | 1,173,085 | |||
Figs Incorporated Class A † | 34,730 | 1,739,973 | |||
Neuronetics Incorporated †« | 94,322 | 1,511,038 | |||
Orthopediatrics Corporation † | 80,201 | 5,067,099 | |||
Outset Medical Incorporated † | 56,468 | 2,822,271 | |||
Pulmonx Corporation † | 46,623 | 2,057,007 | |||
Shockwave Medical Incorporated † | 70,946 | 13,460,585 | |||
SI-BONE Incorporated † | 177,698 | 5,592,156 | |||
Silk Road Medical Incorporated † | 30,110 | 1,441,065 | |||
Tandem Diabetes Care Incorporated † | 26,480 | 2,579,152 | |||
Vapotherm Incorporated † | 119,931 | 2,835,169 | |||
40,278,600 | |||||
Health care providers & services: 3.72% | |||||
Accolade Incorporated † | 52,800 | 2,867,568 | |||
Addus Homecare Corporation † | 45,530 | 3,972,037 | |||
Castle Biosciences Incorporated † | 108,618 | 7,964,958 |
Shares | Value | ||||
Health care providers & services (continued) | |||||
Privia Health Group Incorporated † | 33,594 | $ 1,490,566 | |||
Talkspace Incorporated † | 119,100 | 989,721 | |||
17,284,850 | |||||
Health care technology: 3.47% | |||||
CVRx Incorporated † | 59,980 | 1,679,440 | |||
Doximity Incorporated Class A † | 8,336 | 485,155 | |||
Inspire Medical Systems Incorporated † | 33,540 | 6,481,940 | |||
Phreesia Incorporated † | 121,456 | 7,445,253 | |||
16,091,788 | |||||
Life sciences tools & services: 3.28% | |||||
Akoya Biosciences Incorporated † | 48,052 | 929,326 | |||
Alpha Teknova Incorporated † | 34,013 | 807,128 | |||
Codexis Incorporated † | 330,867 | 7,497,446 | |||
Neogenomics Incorporated † | 132,962 | 6,005,894 | |||
15,239,794 | |||||
Pharmaceuticals: 1.73% | |||||
Pacira Pharmaceuticals Incorporated † | 94,390 | 5,727,585 | |||
Revance Therapeutics Incorporated † | 77,700 | 2,303,028 | |||
8,030,613 | |||||
Industrials: 12.32% | |||||
Aerospace & defense: 0.94% | |||||
Kratos Defense & Security Solutions Incorporated † | 152,530 | 4,345,580 | |||
Building products: 0.55% | |||||
The AZEK Company Incorporated † | 59,773 | 2,537,962 | |||
Commercial services & supplies: 1.99% | |||||
ACV Auctions Incorporated Class A † | 95,392 | 2,444,896 | |||
Casella Waste Systems Incorporated Class A † | 107,390 | 6,811,748 | |||
9,256,644 | |||||
Construction & engineering: 0.62% | |||||
Construction Partners Incorporated Class A † | 91,800 | 2,882,520 | |||
Electrical equipment: 0.43% | |||||
Bloom Energy Corporation Class A † | 74,300 | 1,996,441 | |||
Internet & direct marketing retail: 0.11% | |||||
Xometry Incorporated Class A † | 5,851 | 511,319 | |||
Machinery: 2.22% | |||||
Rexnord Corporation | 205,750 | 10,295,730 | |||
Professional services: 2.76% | |||||
ASGN Incorporated † | 130,141 | 12,614,567 | |||
Legalzoom.com Incorporated † | 5,617 | 212,603 | |||
12,827,170 | |||||
Road & rail: 1.33% | |||||
Saia Incorporated † | 29,592 | 6,199,228 |
Shares | Value | ||||
Trading companies & distributors: 1.37% | |||||
SiteOne Landscape Supply Incorporated † | 37,470 | $ 6,342,172 | |||
Information technology: 25.01% | |||||
Electronic equipment, instruments & components: 2.29% | |||||
Novanta Incorporated † | 64,690 | 8,717,624 | |||
Par Technology Corporation †« | 27,100 | 1,895,374 | |||
10,612,998 | |||||
IT services: 3.98% | |||||
Digitalocean Holdings Incorporated † | 27,500 | 1,528,725 | |||
Endava plc ADR † | 56,434 | 6,398,487 | |||
EVO Payments Incorporated Class A † | 263,001 | 7,295,648 | |||
Flywire Corporation † | 57,250 | 2,103,365 | |||
Paymentus Holdings Incorporated A † | 32,329 | 1,147,680 | |||
18,473,905 | |||||
Semiconductors & semiconductor equipment: 4.54% | |||||
Allegro MicroSystems Incorporated † | 160,216 | 4,437,983 | |||
Diodes Incorporated † | 75,690 | 6,037,791 | |||
Semtech Corporation † | 86,850 | 5,975,280 | |||
Silicon Laboratories Incorporated † | 12,070 | 1,849,728 | |||
Skywater Technology Incorporated †« | 97,829 | 2,802,801 | |||
21,103,583 | |||||
Software: 14.20% | |||||
8x8 Incorporated † | 166,200 | 4,613,709 | |||
Alkami Technology Incorporated † | 45,819 | 1,634,364 | |||
Envestnet Incorporated † | 16,551 | 1,255,559 | |||
Everbridge Incorporated † | 26,290 | 3,577,543 | |||
Jamf Holding Corporation † | 84,158 | 2,825,184 | |||
Olo Incorporated Class A †« | 10,534 | 393,866 | |||
ON24 Incorporated †« | 37,064 | 1,315,031 | |||
Q2 Holdings Incorporated † | 100,996 | 10,360,170 | |||
Rapid7 Incorporated † | 139,718 | 13,221,514 | |||
Sprout Social Incorporated Class A † | 101,439 | 9,070,675 | |||
SPS Commerce Incorporated † | 103,874 | 10,371,819 | |||
Workiva Incorporated † | 65,500 | 7,292,115 | |||
65,931,549 | |||||
Utilities: 0.59% | |||||
Independent power & renewable electricity producers: 0.59% | |||||
Sunnova Energy International Incorporated † | 73,024 | 2,750,084 | |||
Total Common stocks (Cost $274,210,900) | 458,597,709 |
Yield | Shares | Value | |||
Short-term investments: 3.30% | |||||
Investment companies: 3.30% | |||||
Securities Lending Cash Investments LLC ♠∩∞ | 0.03% | 11,377,650 | $ 11,377,650 | ||
Wells Fargo Government Money Market Fund Select Class ♠∞ | 0.03 | 3,953,852 | 3,953,852 | ||
Total Short-term investments (Cost $15,331,502) | 15,331,502 | ||||
Total investments in securities (Cost $289,542,402) | 102.08% | 473,929,211 | |||
Other assets and liabilities, net | (2.08) | (9,648,067) | |||
Total net assets | 100.00% | $464,281,144 |
† | 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 |
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 | $13,231,250 | $48,223,648 | $(50,077,248) | $0 | $0 | $ 11,377,650 | 11,377,650 | $ 3,014# | ||||
Wells Fargo Government Money Market Fund Select Class | 555,598 | 50,648,802 | (47,250,548) | 0 | 0 | 3,953,852 | 3,953,852 | 921 | ||||
$0 | $0 | $15,331,502 | 3.30% | $3,935 |
# | Amount shown represents income before fees and rebates. |
Assets | |
Investments in unaffiliated securities (including $11,081,433 of securities loaned), at value (cost $274,210,900) | $ 458,597,709 |
Investments in affiliated securites, at value (cost $15,331,502) | 15,331,502 |
Receivable for investments sold | 4,781,782 |
Receivable for Fund shares sold | 390,786 |
Receivable for dividends | 14,487 |
Receivable for securities lending income, net | 4,127 |
Prepaid expenses and other assets | 3,115 |
Total assets | 479,123,508 |
Liabilities | |
Payable upon receipt of securities loaned | 11,377,650 |
Payable for investments purchased | 2,782,117 |
Management fee payable | 295,057 |
Payable for Fund shares redeemed | 271,422 |
Distribution fee payable | 84,554 |
Administration fees payable | 29,506 |
Trustees’ fees and expenses payable | 1,705 |
Accrued expenses and other liabilities | 353 |
Total liabilities | 14,842,364 |
Total net assets | $464,281,144 |
Net assets consist of | |
Paid-in capital | $ 198,416,110 |
Total distributable earnings | 265,865,034 |
Total net assets | $464,281,144 |
Computation of net asset value per share | |
Net assets – Class 1 | $ 37,257,146 |
Shares outstanding – Class 11 | 2,217,174 |
Net asset value per share – Class 1 | $16.80 |
Net assets – Class 2 | $ 427,023,998 |
Shares outstanding – Class 21 | 26,528,342 |
Net asset value per share – Class 2 | $16.10 |
1 | The Fund has an unlimited number of authorized shares |
Investment income | |
Dividends | $ 191,673 |
Securities lending income from affiliates, net | 49,023 |
Income from affiliated securities | 921 |
Total investment income | 241,617 |
Expenses | |
Management fee | 1,733,882 |
Administration fees | |
Class 1 | 14,061 |
Class 2 | 159,327 |
Distribution fee | |
Class 2 | 497,003 |
Custody and accounting fees | 21,577 |
Professional fees | 27,273 |
Shareholder report expenses | 20,771 |
Trustees’ fees and expenses | 9,398 |
Other fees and expenses | 4,917 |
Total expenses | 2,488,209 |
Net investment loss | (2,246,592) |
Realized and unrealized gains (losses) on investments | |
Net realized gains on investments | 33,914,710 |
Net change in unrealized gains (losses) on investments | 7,675,204 |
Net realized and unrealized gains (losses) on investments | 41,589,914 |
Net increase in net assets resulting from operations | $39,343,322 |
Six months ended June 30, 2021 (unaudited) | Year ended December 31, 2020 | |||
Operations | ||||
Net investment loss | $ (2,246,592) | $ (3,125,684) | ||
Net realized gains on investments | 33,914,710 | 53,245,715 | ||
Net change in unrealized gains (losses) on investments | 7,675,204 | 109,023,368 | ||
Net increase in net assets resulting from operations | 39,343,322 | 159,143,399 | ||
Distributions to shareholders from | ||||
Net investment income and net realized gains | ||||
Class 1 | 0 | (1,435,682) | ||
Class 2 | 0 | (16,630,208) | ||
Total distributions to shareholders | 0 | (18,065,890) | ||
Capital share transactions | Shares | Shares | ||
Proceeds from shares sold | ||||
Class 1 | 236,622 | 3,755,075 | 604,357 | 6,902,098 |
Class 2 | 1,939,472 | 30,089,381 | 3,286,731 | 35,875,297 |
33,844,456 | 42,777,395 | |||
Reinvestment of distributions | ||||
Class 1 | 0 | 0 | 131,233 | 1,435,682 |
Class 2 | 0 | 0 | 1,582,322 | 16,630,208 |
0 | 18,065,890 | |||
Payment for shares redeemed | ||||
Class 1 | (307,622) | (4,904,551) | (675,964) | (7,532,393) |
Class 2 | (2,056,108) | (31,446,241) | (5,426,711) | (59,526,674) |
(36,350,792) | (67,059,067) | |||
Net decrease in net assets resulting from capital share transactions | (2,506,336) | (6,215,782) | ||
Total increase in net assets | 36,836,986 | 134,861,727 | ||
Net assets | ||||
Beginning of period | 427,444,158 | 292,582,431 | ||
End of period | $464,281,144 | $427,444,158 |
Year ended December 31 | ||||||
Class 1 | Six months ended June 30, 2021 (unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 |
Net asset value, beginning of period | $15.35 | $10.29 | $9.66 | $10.43 | $8.51 | $8.70 |
Net investment loss | (0.05) | (0.09) | (0.07) 1 | (0.05) | (0.04) | (0.01) 1 |
Net realized and unrealized gains (losses) on investments | 1.50 | 5.80 | 2.51 | 0.40 | 2.24 | 0.65 |
Total from investment operations | 1.45 | 5.71 | 2.44 | 0.35 | 2.20 | 0.64 |
Distributions to shareholders from | ||||||
Net realized gains | 0.00 | (0.65) | (1.81) | (1.12) | (0.28) | (0.83) |
Net asset value, end of period | $16.80 | $15.35 | $10.29 | $9.66 | $10.43 | $8.51 |
Total return2 | 9.45% | 58.09% | 25.31% | 1.48% | 26.14% | 8.10% |
Ratios to average net assets (annualized) | ||||||
Gross expenses | 0.92% | 0.93% | 0.93% | 0.92% | 0.94% | 0.94% |
Net expenses | 0.92% | 0.93% | 0.93% | 0.92% | 0.94% | 0.94% |
Net investment loss | (0.81)% | (0.76)% | (0.69)% | (0.59)% | (0.65)% | (0.10)% |
Supplemental data | ||||||
Portfolio turnover rate | 23% | 51% | 62% | 68% | 72% | 89% |
Net assets, end of period (000s omitted) | $37,257 | $35,128 | $22,925 | $19,801 | $22,591 | $20,554 |
1 | Calculated based upon average shares outstanding |
2 | Returns for periods of less than one year are not annualized. Returns 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 | Six months ended June 30, 2021 (unaudited) | 2020 | 2019 | 2018 | 2017 | 2016 |
Net asset value, beginning of period | $14.72 | $9.91 | $9.38 | $10.18 | $8.33 | $8.56 |
Net investment loss | (0.08) | (0.11) | (0.09) | (0.09) | (0.09) | (0.03) |
Net realized and unrealized gains (losses) on investments | 1.46 | 5.57 | 2.43 | 0.41 | 2.22 | 0.63 |
Total from investment operations | 1.38 | 5.46 | 2.34 | 0.32 | 2.13 | 0.60 |
Distributions to shareholders from | ||||||
Net realized gains | 0.00 | (0.65) | (1.81) | (1.12) | (0.28) | (0.83) |
Net asset value, end of period | $16.10 | $14.72 | $9.91 | $9.38 | $10.18 | $8.33 |
Total return1 | 9.38% | 57.78% | 24.83% | 1.20% | 25.86% | 7.75% |
Ratios to average net assets (annualized) | ||||||
Gross expenses | 1.17% | 1.18% | 1.18% | 1.17% | 1.19% | 1.19% |
Net expenses | 1.17% | 1.18% | 1.18% | 1.17% | 1.19% | 1.19% |
Net investment loss | (1.06)% | (1.00)% | (0.95)% | (0.84)% | (0.90)% | (0.35)% |
Supplemental data | ||||||
Portfolio turnover rate | 23% | 51% | 62% | 68% | 72% | 89% |
Net assets, end of period (000s omitted) | $427,024 | $392,316 | $269,657 | $243,038 | $238,460 | $202,718 |
1 | Returns for periods of less than one year are not annualized. Returns do not reflect fees and expenses charged pursuant to the terms of variable life insurance policies and variable annuity contracts. |
Gross unrealized gains | $189,838,370 |
Gross unrealized losses | (5,468,635) |
Net unrealized gains | $184,369,735 |
■ | 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 | $ 17,616,426 | $0 | $0 | $ 17,616,426 |
Consumer discretionary | 83,654,037 | 0 | 0 | 83,654,037 |
Consumer staples | 22,559,623 | 0 | 0 | 22,559,623 |
Financials | 20,149,293 | 0 | 0 | 20,149,293 |
Health care | 138,551,445 | 0 | 0 | 138,551,445 |
Industrials | 57,194,766 | 0 | 0 | 57,194,766 |
Information technology | 116,122,035 | 0 | 0 | 116,122,035 |
Utilities | 2,750,084 | 0 | 0 | 2,750,084 |
Short-term investments | ||||
Investment companies | 15,331,502 | 0 | 0 | 15,331,502 |
Total assets | $473,929,211 | $0 | $0 | $473,929,211 |
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 |
Expense ratio caps | |
Class 1 | 0.95% |
Class 2 | 1.20 |
Counterparty | Value of securities on loan | Collateral received1 | Net amount |
Bank of America Securities Incorporated | $4,176,769 | $(4,176,769) | $0 |
Barclays Capital Incorporated | 105,336 | (105,336) | 0 |
Deutsche Bank Securities Incorporated | 1,786,664 | (1,786,664) | 0 |
JPMorgan Securties LLC | 3,147,244 | (3,147,244) | 0 |
Morgan Stanley & Company LLC | 966,320 | (966,320) | 0 |
UBS Securities LLC | 899,100 | (899,100) | 0 |
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 DePalma (Born 1974) | Treasurer, since 2012 (for certain funds in the Fund Complex); since 2021 (for the remaining funds in the Fund Complex) | 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. |
■ | Information regarding the Transaction: information about the structure, financing sources and material terms and conditions of the Transaction, including the expected impact on the businesses conducted by the Advisers and by Wells Fargo Funds Distributor LLC, as the distributor of Fund shares. |
■ | Information regarding NewCo, GTCR and Reverence Capital: (i) information about NewCo, including information about its expected financial condition and access to capital, and senior leadership team; (ii) the experience of senior management at GTCR and Reverence Capital in acquiring portfolio companies; (iii) the plan to operationalize NewCo, including the transition of necessary infrastructure services through a transition services agreement with Wells Fargo under which Wells Fargo will continue to provide NewCo with certain services for a specified period of time after the closing; and (iv) information regarding regulatory matters, compliance, and risk management functions at NewCo, including resources to be dedicated thereto. |
■ | Impact of the Transaction on WFAM and Service Providers: (i) information regarding any changes to personnel and/or other resources of the Advisers as a result of the Transaction, including assurances regarding comparable and competitive compensation arrangements to attract and retain highly qualified personnel; and (ii) information about the organizational and operating structure with respect to NewCo, the Advisers and the Funds. |
■ | Impact of the Transaction on the Funds and their Shareholders: (i) information regarding anticipated benefits to the Funds as a result of the Transaction; (ii) a commitment that the Funds would not bear any expenses, directly or indirectly, in connection with the Transaction; (iii) confirmation that the Advisers intend to continue to manage the Funds in a manner consistent with each Fund’s current investment objectives and principal investments strategies; and (iv) a commitment that neither NewCo nor WFAM will take any steps that would impose any “unfair burden” (as that term is used in section 15(f)(1)(B) of the 1940 Act) on the Funds as a result of the Transaction. |
P.O. Box 219967
Kansas City, MO 64121-9967
SVT7/SAR144 06-21
ITEM 2. CODE OF ETHICS
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable.
ITEM 6. INVESTMENTS
A Portfolio of Investments for each series of Wells Fargo 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 the 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) Not applicable.
(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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
|
By: | ||
/s/ Andrew Owen
| ||
Andrew Owen | ||
President
| ||
Date: | August 27, 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
|
By: | ||
/s/ Andrew Owen
| ||
Andrew Owen | ||
President
| ||
Date: | August 27, 2021
| |
By: | ||
/s/ Jeremy DePalma
| ||
Jeremy DePalma | ||
Treasurer
| ||
Date: | August 27, 2021 |