Certified Semi-annual Shareholder Report for Management Investment Companies (n-csrs)
July 06 2021 - 10:21AM
Edgar (US Regulatory)
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: 811-22005
Wells Fargo Global Dividend Opportunity Fund
(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)
Registrants telephone number, including area code:
800-222-8222
Date of fiscal year end: October 31
Date of reporting period: April 30, 2021
ITEM 1. REPORT TO STOCKHOLDERS
Semi-Annual Report
April 30, 2021
Wells Fargo Global
Dividend Opportunity Fund
(EOD)
Reduce
clutter.
Save trees.
Sign up for
electronic delivery of prospectuses and shareholder reports at wellsfargo.com/ advantagedelivery
The views expressed and any forward-looking
statements are as of April 30, 2021, unless otherwise noted, and are those of the Fund's portfolio managers and/or Wells Fargo Asset Management. Discussions of individual securities or the markets generally are not intended as individual
recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Asset
Management and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.
INVESTMENT
PRODUCTS: NOT FDIC INSURED ■ NO BANK GUARANTEE ■ MAY LOSE VALUE
Wells Fargo Global Dividend Opportunity
Fund | 1
Letter to shareholders
(unaudited)
Andrew Owen
President
Wells Fargo Funds
Dear Shareholder:
We are pleased to offer you this
semi-annual report for the Wells Fargo Global Dividend Opportunity Fund for the six-month period that ended April 30, 2021. Global stocks continued to rally as the global economy continued to work through the haze of COVID-19. Tailwinds were
provided by global stimulus programs, a rapid vaccination rollout, and recovering consumer and corporate sentiment. Bonds were mixed during the period, with global bonds, municipal bonds, and high-yield bonds delivering positive returns.
For the six-month period, U.S. stocks,
based on the S&P 500 Index,1 gained 28.85%. International stocks, as measured by the MSCI ACWI ex USA Index (Net),2 returned 27.40%, while the MSCI EM Index (Net),3 trailed its developed market counterparts with a 22.95% gain. Among bond indexes, the Bloomberg Barclays U.S. Aggregate Bond Index,4 returned -1.52%, the Bloomberg Barclays Global Aggregate ex-USD Index (unhedged),5 returned 0.68%, the Bloomberg Barclays Municipal Bond Index,6 returned 2.62%, and the ICE BofA U.S. High Yield Index,7 returned 8.12%.
Hope drove the stock markets to new
highs.
Global stocks rallied in
November, propelled by optimism over three promising COVID-19 vaccines. Reversing recent trends, value stocks outperformed growth stocks and cyclical stocks outpaced information technology (IT) stocks. However, U.S. unemployment remained elevated,
with a net job loss of 10 million since February. The eurozone services Purchasing Managers’ Index, a monthly survey of purchasing managers, contracted sharply while the region’s manufacturing activity grew. The U.S. election results
added to the upbeat mood as investors anticipated more consistent policies in the new administration.
Financial markets ended the year with
strength on high expectations for a rapid rollout of the COVID-19 vaccines, the successful passage of a $900 billion stimulus package, and rising expectations of additional economic support from a Democratic-led Congress. U.S. economic data were
mixed with still-elevated unemployment and weak retail sales but growth in manufacturing output. In contrast, China’s economic expansion continued in both manufacturing and nonmanufacturing. U.S. COVID-19 infection rates continued to rise even
as new state and local lockdown measures were implemented.
“Global stocks rallied in November, propelled by optimism over three promising COVID-19
vaccines.”
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.
|
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.
|
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.
|
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.
|
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.
|
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.
|
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.
|
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.
|
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.
|
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.
|
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.
|
2 | Wells Fargo Global Dividend
Opportunity Fund
Letter to shareholders
(unaudited)
The calendar year 2021 began with emerging market stocks
leading all major asset classes in January, driven by China’s strong economic growth and a broad recovery in corporate earnings, which propelled China’s stock market higher. In the U.S., positive news on vaccine trials and January's
expansion in both the manufacturing and services sectors were offset by a weak December monthly jobs report. This was compounded by technical factors as some hedge funds were forced to sell stocks to protect themselves against a well-publicized
short squeeze coordinated by a group of retail investors. Eurozone sentiment and economic growth were particularly weak, reflecting the impact of a new lockdown with stricter social distancing along with a slow vaccine rollout.
February saw major domestic equity indexes driven higher on the
hope of a new stimulus bill, improving COVID-19 vaccination numbers, and the gradual reopening of the economy. Most S&P 500 companies reported better-than-expected earnings, with positive surprises coming from the financials, IT, health care,
and materials sectors. Japan saw its economy strengthen as a result of strong export numbers. Meanwhile, crude-oil prices continued their climb, rising more than 25% for the year. Domestic government bonds experienced a sharp sell-off in late
February as markets priced in a more robust economic recovery and higher future growth and inflation expectations.
The passage of the massive domestic stimulus bill highlighted
March activity, leading to increased forecasts for U.S. growth in 2021. Domestic employment surged as COVID-19 vaccinations and an increasingly open economy spurred hiring. A majority of U.S. small companies reported they were operating at
pre-pandemic capacity or higher. Value continued its outperformance of growth in the month, continuing the trend that started in late 2020. Meanwhile, most major developed global equity indexes were up month to date on the back of rising optimism
regarding the outlook for global growth. While the U.S. and the U.K. have been the most successful in terms of the vaccine rollout, even within markets where the vaccine has lagged, such as the eurozone and Japan, equity indexes in many of those
countries are also in positive territory this year.
Equity markets produced another strong showing in April.
Domestically, the continued reopening of the economy had a strong impact on positive equity performance as people started leaving their households and jobless claims continued to fall. Domestic corporate bonds performed well and the U.S. dollar
weakened. Meanwhile, the U.S. government continued to seek to invest in the recovery, this time by outlining a package of over $2 billion to improve infrastructure. The primary headwind in April was inflation, as investors tried to determine the
breadth and longevity of recent price increases. Developed Europe has been supported by a meaningful increase in the pace of vaccinations. Unfortunately many emerging market countries have not been as successful. India in particular has seen
COVID-19 cases surge, serving as an example of the need to get vaccinations rolled out to less developed nations.
Don’t let short-term uncertainty derail long-term
investment goals.
Periods of investment uncertainty can
present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an
effective way to manage investment risk and potentially smooth out overall portfolio performance. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.
Thank you for choosing to invest with Wells Fargo Funds. We
appreciate your confidence in us and remain committed to helping you meet your financial needs.
Sincerely,
Andrew Owen
President
Wells Fargo Funds
“The passage of the massive domestic stimulus bill highlighted March activity, leading to
increased forecasts for U.S. growth in 2021.”
For further information about your Fund,
contact your investment professional, visit our website at wfam.com or call us directly at 1-800-222-8222.
Wells Fargo Global Dividend Opportunity
Fund | 3
Letter to shareholders
(unaudited)
Notice to Shareholders
■
|
On November 17, 2020, the Fund
announced a renewal of its open-market share repurchase program (the “Buyback Program”). Under the renewed Buyback Program, the Fund may repurchase up to 10% of its outstanding shares in open market transactions during the period
beginning on January 1, 2021 and ending on December 31, 2021. The Fund’s Board of Trustees has delegated to Wells Fargo Funds Management, LLC, the Fund’s adviser, discretion to administer the Buyback Program, including the determination
of the amount and timing of repurchases in accordance with the best interests of the Fund and subject to applicable legal limitations.
|
■
|
The
Fund’s managed distribution plan provides for the declaration of quarterly distributions to common shareholders of the Fund at an annual minimum fixed rate of 10% based on the Fund’s average monthly net asset value per share over the
prior 12 months. Under the managed distribution plan, quarterly distributions may be sourced from income, paid-in capital, and/or capital gains, if any. To the extent that sufficient investment income is not available on a quarterly basis, the Fund
may distribute paid-in capital and/or capital gains, if any, in order to maintain its managed distribution level. You should not draw any conclusions about the Fund’s investment performance from the amount of the Fund’s distributions or
from the terms of the managed distribution plan. Shareholders may elect to reinvest distributions received pursuant to the managed distribution plan in the Fund under the existing dividend reinvestment plan, which is described later in this report.
|
Preparing for LIBOR Transition
The global financial industry is preparing
to transition away from the London Interbank Offered Rate (LIBOR), a key benchmark interest rate, to new alternative rates. LIBOR underpins more than $350 trillion of financial contracts. It is the benchmark rate for a wide spectrum of products
ranging from residential mortgages to corporate bonds to derivatives. Regulators have called for a market-wide transition away from LIBOR to successor reference rates by the end of 2021 (expected to be extended through June 30, 2023 for most tenors
of the U.S. dollar LIBOR), which requires proactive steps be taken by issuers, counterparties, and asset managers to identify impacted products and adopt new reference rates.
The Fund holds at least one security that
uses LIBOR as a floating reference rate and has a maturity date after December 31, 2021.
Although the transition process away from
LIBOR has become increasingly well-defined in advance of the anticipated discontinuation date, there remains uncertainty regarding the nature of successor reference rates, and any potential effects of the transition away from LIBOR on investment
instruments that use it as a benchmark rate. The transition process may result in, among other things, increased volatility or illiquidity in markets for instruments that currently rely on LIBOR and could negatively impact the value of certain
instruments held by the Fund.
Wells
Fargo Asset Management is monitoring LIBOR exposure closely and has put resources and controls in place to manage this transition effectively. The Fund’s portfolio management team is evaluating LIBOR holdings to understand what happens to
those securities when LIBOR ceases to exist, including examining security documentation to identify the presence or absence of fallback language identifying a replacement rate to LIBOR.
While the pace of transition away from LIBOR
will differ by asset class and investment strategy, the portfolio management team will monitor market conditions for those holdings to identify and mitigate deterioration or volatility in pricing and liquidity and ensure appropriate actions are
taken in a timely manner.
4 | Wells Fargo Global Dividend
Opportunity Fund
This page is intentionally left blank.
Performance highlights
(unaudited)
Investment
objective
|
The Fund's primary investment
objective is to seek a high level of current income. The Fund's secondary objective is long-term growth of capital.
|
Strategy
summary
|
The Fund allocates its assets
between two separate investment strategies, or sleeves. Under normal market conditions, the Fund allocates approximately 80% of its total assets to an equity sleeve comprised primarily of common stocks and other equity securities that offer
above-average potential for current and/or future dividends. This sleeve invests normally in approximately 60 to 80 securities, broadly diversified among major sectors and regions. The sector and region weights are typically within +/- 5 percent of weights in the MSCI ACWI Index (Net). The remaining 20% of the Fund's total assets is allocated to a sleeve consisting of below investment grade (high yield) debt. The Fund also employs
an option strategy in an attempt to generate gains on call options written by the Fund.
|
Adviser
|
Wells Fargo Funds Management,
LLC
|
Subadviser
|
Wells Capital Management
Incorporated
|
Portfolio
managers
|
Dennis
Bein, CFA®‡, Justin P. Carr, CFA®‡*, Harindra de Silva, Ph.D, CFA®‡*, Vince Fioramonti, CFA®‡, Chris Lee, CFA®‡*, Megan Miller, CFA®‡, Michael J. Schueller, CFA®‡
|
Average
annual total returns (%) as of April 30, 20211
|
|
6
months
|
1
year
|
5
year
|
10
year
|
Based
on market value
|
40.88
|
50.68
|
9.39
|
4.94
|
Based
on net asset value (NAV)
|
29.26
|
45.71
|
7.95
|
5.24
|
Global
Dividend Opportunity Blended Index2
|
24.06
|
40.34
|
11.85
|
8.72
|
MSCI
ACWI Index (Net)3
|
28.29
|
45.75
|
13.85
|
9.17
|
ICE
BofA U.S. High Yield Constrained Index4
|
8.13
|
20.01
|
7.31
|
6.26
|
Figures quoted represent past
performance, which is no guarantee of future results, and do not reflect taxes that a shareholder may pay on an investment in a fund. Investment return and principal value of an investment will fluctuate so that an
investor’s shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted, which assumes the reinvestment of dividends and capital gains. Performance figures
of the Fund do not reflect brokerage commissions that a shareholder would pay on the purchase and sale of shares. If taxes and such brokerage commissions had been reflected, performance would have been lower. To obtain performance information
current to the most recent month-end, please call 1-800-222-8222.
Please keep in mind that high double-digit returns were
primarily achieved during favorable market conditions. You should not expect that such favorable returns can be consistently achieved. A fund’s performance, especially for short time periods, should not be the sole factor in making your
investment decision.
The Fund’s annualized expense
ratio for the six months ended April 30, 2021, was 1.37% which includes 0.16% of interest expense.
1
|
Total
returns based on market value are calculated assuming a purchase of common stock on the first day and a sale on the last day of the period reported. Total returns based on NAV are calculated based on the NAV at the beginning of the period and at the
end of the period. Dividends and distributions, if any, are assumed for the purposes of these calculations to be reinvested at prices obtained under the Fund’s Automatic Dividend Reinvestment Plan.
|
2
|
Source:
Wells Fargo Funds Management, LLC. The Global Dividend Opportunity Blended Index is composed of 80% Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) Index (Net) and 20% ICE BofA U.S. High Yield Constrained Index. Prior to
October 15, 2019, the Global Dividend Opportunity Blended Index was composed 65% of the MSCI ACWI Index (Net), 20% of the ICE BofA U.S. High Yield Constrained Index, and 15% of the ICE BofA Core Fixed Rate Preferred Securities Index. Prior to May 1,
2017, the Global Dividend Opportunity Blended Index was composed 65% of the MSCI ACWI Index (Net) and 35% of the ICE BofA Core Fixed Rate Preferred Securities Index. You cannot invest directly in an index.
|
3
|
The MSCI
ACWI 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. 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.
|
4
|
The
ICE BofA U.S. High Yield Constrained Index is a market-value-weighted index of all domestic and Yankee high-yield bonds, including deferred interest bonds and payment-in-kind securities. Issues included in the index have maturities of one year or
more and have a credit rating lower than BBB-/Baa3 but are not in default. The ICE BofA U.S. High Yield Constrained Index limits any individual issuer to a maximum of 2% benchmark exposure. You cannot invest directly in an index. Copyright 2021. ICE
Data Indices, LLC. All rights reserved.
|
‡
|
CFA® and Chartered
Financial Analyst® are trademarks owned by CFA Institute.
|
* Mr. Bein and Mr. de Silva became portfolio managers of the
Fund on May 3, 2021.
6 | Wells Fargo Global Dividend
Opportunity Fund
Performance highlights
(unaudited)
Comparison
of NAV vs. market value1
|
1
|
This chart does not reflect
any brokerage commissions charged on the purchase and sale of the Fund’s common stock. Dividends and distributions paid by the Fund are included in the Fund’s average annual total returns but have the effect of reducing the Fund’s
NAV.
|
More
detailed information about the Fund’s investment objective, principal investment strategies and the principal risks associated with investing in the Fund can be found on page 12.
Risk summary
This closed-end fund is no longer available as an initial
public offering and is only offered through broker-dealers on the secondary market. A closed-end fund is not required to buy its shares back from investors upon request. Shares of the Fund may trade at either a premium or discount relative to the
Fund’s net asset value, and there can be no assurance that any discount will decrease. The values of, and/or the income generated by, securities held by the Fund may decline due to general market conditions or other factors, including those
directly involving the issuers of such securities. Equity securities fluctuate in value in response to factors specific to the issuer of the security. Small and mid-cap securities may be subject to special risks associated with narrower product
lines and limited financial resources compared with their large-cap counterparts, and, as a result, small- and mid-cap securities may decline significantly in market downturns and may be more volatile than those of larger companies due to their
higher risk of failure. Debt securities are subject to credit risk and interest rate risk, and high yield securities and unrated securities of similar credit quality have a much greater risk of default and their values tend to be more volatile than
higher-rated securities with similar maturities. Foreign investments may contain more risk due to the inherent risks associated with changing political climates, foreign market instability, and foreign currency fluctuations. Risks of foreign
investing are magnified in emerging or developing markets. Derivatives involve risks, including interest-rate risk, credit risk, the risk of improper valuation, and the risk of non-correlation to the relevant instruments they are designed to hedge
or closely track. There are numerous risks associated with transactions in options on securities and/or indices. As a writer of an index call option, the Fund forgoes the opportunity to profit from increases in the values of securities held by the
Fund. However, the Fund has retained the risk of loss (net of premiums received) should the price of the Fund’s portfolio securities decline. Similar risks are involved with writing call options or secured put options on individual securities
and/or indices held in the Fund’s portfolio. This combination of potentially limited appreciation and potentially unlimited depreciation over time may lead to a decline in the net asset value of the Fund. The Fund is leveraged through a
revolving credit facility and also may incur leverage by issuing preferred shares in the future. The use of leverage results in certain risks, including, among others, the likelihood of greater volatility of the net asset value and the market value
of common shares.
Wells
Fargo Global Dividend Opportunity Fund | 7
Performance highlights
(unaudited)
MANAGER'S DISCUSSION
The Fund’s return based on market value was 40.88% for the six-month
period that ended April 30, 2021. During the same period, the Fund’s return based on its net asset value (NAV) was 29.26%. Based on its NAV return, the Fund outperformed the Global Dividend Opportunities Blended Index for the six-month period
that ended April 30, 2021.
Overview
The Fund’s equity sleeve outperformed the MSCI ACWI Index
(Net) for the period.
■
|
For the six-month period,
holdings within the information technology (IT), financials, and health care sectors contributed to relative performance.
|
■
|
Holdings
within the communication services, consumer staples, and energy sectors detracted from relative performance.
|
Global equities surged higher as the economy recovered from the COVID-19
recession.
Over the past six months, the resolution to
the 2020 U.S. election, the rollout of COVID-19 vaccines, and monetary and fiscal stimulus have strengthened both the economic recovery and the rally in risk assets. Cumulatively, these events have made what we call the “reflation” trade
a successful one. Themes arising from the reflation trade include: 1) rising long-term Treasury yields, 2) a recovery in the price of oil, and 3) the nearly complete normalization in valuations in COVID-19-affected sectors. By early fall of last
year, the portfolio repositioned to capture opportunities arising from reflation.
U.S. and international equities advanced on improving economic
data, reopening momentum, broadening vaccine distribution, and continued tailwinds from massive fiscal and monetary stimulus. Although the global health crisis persists, overall activity reaccelerated in the U.S. as restrictions were scaled back and
vaccinations neared a critical mass. International and emerging markets lagged the U.S. in terms of growth, reopening, and vaccination rollouts, tempering optimism over their recovery. Beginning last November, investors began a rotation into
cyclical value stocks and out of the secular growth, stay-at-home stocks that dominated most of 2020. This rotation was supported by challenging year-over-year comparables in the strongest-performing growth stocks, a weaker dollar, and a steepening
yield curve.
Ten
largest holdings (%) as of April 30, 20211
|
Microsoft
Corporation
|
3.27
|
Apple
Incorporated
|
2.93
|
JPMorgan
Chase & Company
|
1.90
|
Target
Corporation
|
1.84
|
Amazon.com
Incorporated
|
1.77
|
Verizon
Communications Incorporated
|
1.76
|
Texas
Instruments Incorporated
|
1.75
|
AbbVie
Incorporated
|
1.74
|
QUALCOMM
Incorporated
|
1.69
|
CVS
Health Corporation
|
1.65
|
1
|
Figures represent the
percentage of the Fund's net assets. Holdings are subject to change and may have changed since the date specified.
|
The Fund adapted to market volatility and an improving
environment for dividend-paying stocks.
To deliver a
higher dividend relative to the benchmark, the strategy had a higher exposure to dividend payers and a lower exposure to growth companies that do not pay dividends. The outperformance of cyclical value provided a favorable environment for
dividend-paying stocks, as many companies that suspended dividends in 2020 restored their dividend policy. The strategy’s turnover increased as market volatility required an elevated emphasis on risk controls, particularly as it relates to
interest rates, oil, and credit risk. Within sectors, investors favored stocks with positive economic exposure, and we were rewarded by overweighting financials and underweighting health care.
After seeing West Texas Intermediate (WTI) oil fall to
unprecedented lows, the Organization of Petroleum Exporting Countries agreed to supply reductions, which has gradually reduced oversupply and led to a dramatic recovery in WTI and energy bond prices. As a result, investments in the energy sector
proved to be the best performers for the past six months within the high yield fixed income portion of the strategy.
8 | Wells Fargo Global Dividend
Opportunity Fund
Performance highlights
(unaudited)
Long-term Treasury bond yields have also undergone a dramatic repricing in the
past six months with the 10-year yield rising from 0.88% to 1.63%. Just as the rapidly improving economic outlook pushed the 10-year Treasury yield higher, so too has it driven high-yield spreads tighter. The option-adjusted spread in the high-yield
market stood at 527 basis points (bps; 100 bps equal 1.00%) six months ago; it stood at 330 bps on April 30, 2021.
The option overlay* is a short-call strategy written on a
portion of the Fund’s global equity portfolio. The combined global equity and short option portfolio create a global covered call portfolio. Over the long run, a covered call strategy targets additional yield and lower risk compared with a
passive allocation to equity. The option overlay is expected to add value in flat-to-down markets and also in above-average-volatility environments. For the six-month period that ended April 30, 2021, the option overlay returned -1.32% to the Fund.
Over the same time period, the associated benchmarks, BXM Index** -adjusted and BXY Index** -adjusted, returned -4.94% and -2.84%, respectively.
Global equity markets performed strongly during the last
quarter of 2020 and first quarter of 2021, with the MSCI ACWI Index (Net) returning 28.29% over the six-month period that ended April 30, 2021. As a result of the increased price levels, average volatility declined to end the six-month period near
long-run averages at 18.61%. We saw a record-breaking global equity rally in November 2020, followed by persistently positive outlooks and new local highs across developed markets in April 2021. As expected, the option overlay detracted from Fund
performance during this time period when equity markets outperformed expectations, returning nearly 30%, and volatility declined, detracting value from the Fund by slightly capping the equity returns. We expect volatility to remain elevated compared
with long-run averages as the world grapples with the longer-run impact of the pandemic and newly elevated concerns in emerging markets. Higher levels of volatility should present a good opportunity for the option overlay strategy in the Fund.
Stock selection was strongest in the IT, industrials, and financials
sectors.
Within the IT sector, Lenovo Group Limited
shares surged on positive earnings trends from strong personal computer demand for remote work and e-learning. In the industrials sector, TFI International Incorporated shares rose significantly after the Canadian trucking company announced solid
earnings and the acquisition of UPS’s freight division. ING Groep N.V., a long-term financial holding, restored its dividend policy, benefiting from growth in fee income, digital banking trends, and a steepening yield curve.
Sector
allocation as of April 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.
|
*
|
The option overlay is
compared with the option-only returns of the U.S. based covered call benchmarks, BXM Index and BXY Index. We adjust the benchmark to assume 50% written on equity and report only the option return. The unadjusted BXM Index and BXY Index returned
18.97% and 23.17%, respectively, from October 31, 2020, to April 30, 2021.
|
**
|
The Chicago Board Options
Exchange (CBOE) S&P 500 BuyWrite (BXM) Index is a benchmark index designed to track the performance of a hypothetical buy-write strategy on the S&P 500 Index. The CBOE S&P 500 2% OTM BuyWrite (BXY) Index is a new index that uses the same
methodology as BXM, but is calculated using out-of-the-money S&P 500 Index (SPX) call options, rather than at-the-money SPX call options. You cannot invest directly in an index.
|
Wells Fargo Global Dividend Opportunity
Fund | 9
Performance highlights
(unaudited)
Credit
quality as of April 30, 20211
|
1
|
The credit quality
distribution of portfolio holdings reflected in the chart is based on ratings from Standard & Poor’s, Moody’s Investors Service, and/ or Fitch Ratings Ltd. Credit quality ratings apply to the underlying holdings of the Fund and not
to the Fund itself. The percentages of the Fund’s portfolio with the ratings depicted in the chart are calculated based on the market value of fixed income securities held by the Fund. If a security was rated by all three rating agencies, the
middle rating was utilized. If rated by two of the three rating agencies, the lower rating was utilized, and if rated by one of the rating agencies, that rating was utilized. Standard & Poor’s rates the creditworthiness of bonds, ranging
from AAA (highest) to D (lowest). Ratings from A to CCC may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the rating categories. Standard &
Poor’s rates the creditworthiness of short-term notes from SP-1 (highest) to SP-3 (lowest). Moody’s rates the creditworthiness of bonds, ranging from Aaa (highest) to C (lowest). Ratings Aa to B may be modified by the addition of a
number 1 (highest) to 3 (lowest) to show relative standing within the ratings categories. Moody’s rates the creditworthiness of short-term U.S. tax-exempt municipal securities from MIG 1/VMIG 1 (highest) to SG (lowest). Fitch rates the
creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Credit quality distribution is subject to change and may have changed since the date specified.
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Selection within energy in the high-yield sleeve added to
performance.
Last fall, there was lingering uncertainty
regarding the length and severity of the COVID-19 crisis and the extent to which businesses would suffer from it. Companies directly affected by COVID-19 had inverted credit curves (near-term maturities trading at higher yields than longer ones) and
traded at a significant discount to minimally disrupted companies. Today, while businesses anticipate a full recovery, the recovery in valuations in the capital markets is nearly complete. Credit curves have now normalized and the discount one earns
for investing in directly affected companies is very slight. Capturing this compression in several key investments in the leisure, air transportation, automotive, and media sectors contributed to outperformance. The Fund’s use of leverage had
a positive impact on total return performance during this reporting period.
Stock selection was weakest in the communication services, consumer staples,
and energy sectors.
Within the communication services
sector, Verizon Communications Incorporated produced earnings that beat expectations, but shares traded sideways due to growing wireless competition and delays in the 5G smartphone upgrade cycle. Despite strong earnings, Nintendo Company, Limited,
shares were weak as investors took a pause on some of the gaming stay-at-home stocks and moved into the cyclical recovery theme. Two consumer staples holdings, Walmart Incorporated and The Procter & Gamble Company, detracted from results as
investors rotated out of companies perceived to be significant beneficiaries of the pandemic.
Underweights to the metals and mining and the food and
beverage sectors detracted from high-yield sleeve performance.
The main detractors from performance over the past year came
from the Fund’s underweights to the metals and mining and the food and beverage sectors. While credit quality in both sectors is improving, the longer duration of the bonds in these sectors make them less attractive total-return opportunities
as spread compression is susceptible to being offset by rising long-term rates.
Geographic
allocation as of April 30, 20211
|
1
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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.
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10 | Wells Fargo Global Dividend
Opportunity Fund
Performance highlights
(unaudited)
Management outlook: Accommodative monetary and fiscal policy could rapidly
shift the economy into mid-cycle dynamics.
The recovery
from the pandemic will likely be unique and uneven as the world grapples with the repercussions of sacrificing economic health to preserve public health. A global economic reboot can occur quickly with ongoing tailwinds from prodigious monetary and
fiscal support, but not without a growing risk of inflation. Central banks acknowledge the risk of inflation, but most believe that any rise in inflation will be transitory.
Early-stage cyclical themes like small caps, value, and
emerging markets could continue to do well, but the market could also abruptly shift to higher-quality, lower-volatility, and more defensive names if the burst of post-pandemic growth leads to some excesses. The strongest gains within value have
likely already occurred, driven by short covering and investor repositioning. Growth is no longer scarce in this part of the economic cycle, and investors typically become more selective as the cycle matures. We expect the market environment that
transformed major equity factors into extreme bets for or against value will fade and our quantitative research model to exhibit stronger performance.
Rising inflation historically provides a tailwind for value-oriented firms,
which typically benefits our investment process. As we monitor the macroeconomic environment, we will continue to diligently focus on company fundamentals and disciplined portfolio risk management.
The current high-yield landscape features early-cycle fiscal
and monetary policies coupled with late-cycle valuations. The former makes us constructive on further improvement in issuer fundamentals, but the latter tempers return expectations. We believe the majority of the systemic spread tightening is behind
us and it’s critically important to get idiosyncratic credit issues correct to outperform. Always the hallmark of our investment process, security selection, comprehensive research, and tactical portfolio management will be ever more salient
in capitalizing on opportunities in these evolving credit markets.
Wells Fargo Global Dividend Opportunity
Fund | 11
Objective, strategies and risks
(unaudited)
Investment objective
The Fund’s primary investment objective is to seek a high level of
current income. The Fund’s secondary objective is long-term growth of capital. The Fund’s investment objectives are non-fundamental policies and may be changed by the Trustees without prior approval of the Fund’s
shareholders.
Principal investment strategies
The Fund allocates its assets between two separate investment strategies, or
sleeves, equity and high yield. Under normal market conditions, the Fund allocates approximately 80% of its total assets to an equity sleeve comprised primarily of a diversified portfolio of common stocks of U.S. and non-U.S. companies and other
equity securities that offer above-average potential for current and/or future dividends. The remaining 20% of the Fund’s total assets is allocated to a sleeve consisting of below investment-grade (high yield) debt securities, loans, and
preferred stocks. The Fund also employs an option strategy in an attempt to generate gains on call options written by the Fund.
Equity Sleeve. The
Fund’s equity sleeve invests normally in approximately 60 to 80 securities, broadly diversified among major sectors and regions. The sector and region weights are typically within +/- 5 percent of weights in the MSCI ACWI Index. Region weights are managed according to Wells Capital Management’s proprietary region
classification. We target an overall portfolio dividend yield higher than that of the MSCI ACWI Index. The equity sleeve of the Fund may hold equity securities of companies of any size, including companies with large, medium, and small market
capitalizations. The equity sleeve of the Fund may hold equity securities issued by domestic or foreign issuers, including emerging market issuers. The equity sleeve of the Fund will likely include primarily common stocks, although the Fund may also
invest in preferred stocks, and securities convertible into or exchangeable for common stock, such as convertible preferred stocks.
Our approach is to lever the best attributes of quantitative
tools and fundamental analysis. Our quantitative model casts a wide net to identify buy and sell candidates in our investment universe. Our fundamental overlay gives us the conviction that we need to build a portfolio that both targets high levels
of income while still maintaining a broad-based, well-diversified exposure.
We employ a proprietary, quantitative model to evaluate all
companies in the investment universe. The model draws from a factor library containing both cross-sectional and sector-specific factors. It seeks to identify companies that provide attractive dividend yields, but also have favorable quality
characteristics and growth potential. The model is comprised of three unique factor groupings: valuation, quality and momentum. The valuation factors identify companies that are undervalued relative to their peers; the quality factors identify
companies with strong management and profitability; and the momentum factors identify companies that have market support and positive investor sentiment. The factor composition of the model is reviewed and refreshed each quarter through a dynamic
process called re-specification. The process enhances the predictive power of the model by considering recent changes in the underlying drives of stock price movement.
As previously mentioned, the investment approach combines the
objectivity and repeatability of quantitative modeling with a qualitative review and validation of every stock that is added to the portfolio. The qualitative review helps us build conviction in the positions that we put into the portfolio by
considering data that is more difficult to process and consume systematically in a timely fashion. We use additional sources of information such as news sentiment data, research reports, short interest data and a multitude of other resources to
uncover nuances within companies that a traditional systematic strategy may not identify. Through this analysis we seek to verify that the financials driving the quantitative model reflect the true prospects of the business, identify
non-quantifiable opportunities and the risks in companies, and avoid value traps (which are ever-present risk in dividend strategies).
Material Changes During the Fiscal Year: As of the date of this
report, there have been no material changes made to the equity sleeve of the Fund during this fiscal year.
High Yield Sleeve. Under
normal market conditions, the Fund allocates approximately 20% of its total assets to an investment strategy that focuses on U.S. dollar-denominated below investment-grade bonds (including convertible bonds), debentures, and other income
obligations, including loans and preferred stocks (often called “high yield” securities or “junk bonds”). We may invest in below investment-grade debt securities of any credit quality, however, we may not purchase securities
rated CCC or below if 20% of the sleeve’s assets are already held with such a rating. We are not required to sell securities rated CCC or below if the 20% limit is exceeded due to security downgrades.
The sleeve will not invest more than 20% of its total assets in
convertible instruments (convertible bonds and preferred stocks). The sleeve may invest up to 10% of its total assets in U.S. dollar–denominated securities of foreign issuers, excluding emerging markets securities.
For purposes of the Fund’s credit quality policies, if a
security receives different ratings from nationally recognized securities rating organizations, the Fund will use the rating that the portfolio managers believe is most representative of the security’s
12 | Wells Fargo Global Dividend
Opportunity Fund
Objective, strategies and risks
(unaudited)
credit quality. The Fund’s high yield securities may have fixed or
variable principal payments and all types of interest rate and dividend payment and reset terms, including fixed rate, adjustable rate, contingent, deferred, payment in kind and auction rate features. The sleeve may invest in securities with a broad
range of maturities.
The Fund’s high yield sleeve
is managed following a rigorous investment process that emphasizes both quality and value. The research driven approach includes both a top-down review of macroeconomic factors and intensive, bottom-up scrutiny of individual securities. We consider
both broad economic and issuer specific factors in selecting securities for the high yield sleeve. In assessing the appropriate maturity and duration for the Fund’s high yield sleeve and the credit quality parameters and weighting objectives
for each sector and industry in this portion of the Fund’s portfolio, we consider a variety of factors that are expected to influence the economic environment and the dynamics of the high yield market. These factors include fundamental
economic indicators, such as interest rate trends, the rates of economic growth and inflation, the performance of equity markets, commodities prices, Federal Reserve monetary policy and the relative value of the U.S. dollar compared to other
currencies. Once we determine the preferable portfolio characteristics, we conduct further evaluation to determine capacity and inventory levels in each targeted industry. We also identify any circumstances that may lead to improved business
conditions, thus increasing the attractiveness of a particular industry. We select individual securities based upon the terms of the securities (such as yields compared to U.S. Treasuries or comparable issues), liquidity and rating, sector and
issuer diversification. We also employ due diligence and fundamental research to assess an issuer’s credit quality, taking into account financial condition and profitability, future capital needs, potential for change in rating, industry
outlook, the competitive environment and management ability.
The analysis of issuers may include, among other things,
historic and current financial conditions, current and anticipated cash flow and borrowing requirements, value of assets in relation to historical costs, strength of management, responsiveness to business conditions, credit standing, the
company’s leverage versus industry norms and current and anticipated results of operations. While we consider as one factor in our credit analysis the ratings assigned by the rating services, we perform our own independent credit analysis of
issuers.
In making decisions for the high yield sleeve,
we rely on the knowledge, experience and judgment of our team who have access to a wide variety of research. We apply a strict sell discipline, which is as important as purchase criteria in determining the performance of this portion of this
portfolio. We routinely meet to review profitability outlooks and discuss any deteriorating business fundamentals, as well as consider changes in equity valuations and market perceptions before selling securities.
We regularly review the investments of the portfolio and may
sell a portfolio holding when it has achieved its valuation target, there is deterioration in the underlying fundamental of the business, or we have identified a more attractive investment opportunity.
Material Changes During the Fiscal Year: As of the date of this
report, there have been no material changes made to the high yield sleeve of the Fund during this fiscal year.
Option Strategy. The Fund also
employs an option strategy in an attempt to generate gains from the premiums on call options written by it on selected U.S. and non-U.S.-based securities indices, on exchange-traded funds providing returns based on certain indices, countries, or
market sectors, and, to a lesser extent, on futures contracts and individual securities. The Fund may write covered call options or secured put options on individual securities and/or indexes. The Fund may also purchase call or put
options.
The Fund may write call options with an
aggregate net notional amount of up to 50% of the value of the equity sleeve’s total assets. The extent of the Fund’s use of written call options will vary over time based, in part, on our assessment of market conditions, pricing of
options, related risks, and other factors. The Fund will limit option writing to an aggregate net notional amount less than the value of the Fund’s equity securities in order to allow the Fund potentially to benefit from capital gains on its
equity sleeve. The aggregate net notional amount of the open option positions sold by the Fund will never exceed the market value of the Fund’s equity investments. For these purposes, the Fund treats options on indices as being written on
securities having an aggregate value equal to the face or notional amount of the index subject to the option. At any time we may limit, or temporarily suspend, the option strategy.
We will attempt to maintain for the Fund written call option
positions on equity indices whose price movements, taken in the aggregate, correlate to some degree with the price movements of some or all of the equity securities held in the Fund’s equity sleeve. The Fund may write index call options that
are “European style” options, meaning that the options may be exercised only on the expiration date of the option. The Fund also may write index call options that are “American style” options, meaning that the options may be
exercised at any point up to and including the expiration date. The Fund expects to use primarily listed/ exchange-traded options contracts and may also use unlisted (or “over-the-counter”) options.
Wells Fargo Global Dividend Opportunity
Fund | 13
Objective, strategies and risks
(unaudited)
We will actively manage the Fund’s options positions
using a proprietary quantitative and statistical analysis in an attempt to identify option transactions for the Fund that produce attractive current income for the Fund with appropriate limitations on the potential losses to the Fund from those
transactions. We may attempt to preserve for the Fund the potential to realize a portion of any increases in the values of its portfolio securities by writing options that are out-of-the-money (that is, whose strike price is higher than the current
market value or level of the underlying index), by limiting the amount of options the Fund writes, and by attempting, through use of quantitative and statistical analysis, to identify options that are likely to provide current income without undue
risk of an untimely exercise.
Material Changes During the
Fiscal Year: As of the date of this report, there have been no material changes made to the option sleeve of the Fund during this fiscal year.
The Fund’s Overall Portfolio. We monitor the weighting of each investment strategy within the Fund’s portfolio on an ongoing basis and rebalance the Fund’s assets when we determine that such a rebalancing is necessary to align the
portfolio in accordance with the investment strategies described above. From time to time, we may make adjustments to the weighting of each investment strategy. Such adjustments would be based on our review and consideration of the expected returns
for each investment strategy and would factor in the stock, bond and money markets, interest rate and corporate earnings growth trends, and economic conditions which support changing investment opportunities.
The Fund may enter into transactions including, among others,
options, futures and forward contracts, loans of portfolio securities, swap contracts, and other derivatives, as well as when-issued, delayed delivery, or forward commitment transactions, that may in some circumstances give rise to a form of
leverage. The Fund may use some or all of these transactions from time to time in the management of its portfolio, for hedging purposes, to adjust portfolio characteristics, or more generally for purposes of attempting to increase the Fund’s
investment return. There can be no assurance that the Fund will enter into any such transactions at any particular time or under any specific circumstances. The Fund expects to issue preferred shares or debt securities, or to borrow money, for
leveraging purposes. By using leverage, the Fund seeks to obtain a higher return for holders of common shares than if it did not use leverage. Leveraging is a speculative technique, and there are special risks involved. There can be no assurance
that any leveraging strategies, if employed by the Fund, will be successful, and such strategies can result in losses to the Fund.
The investment policies of the Fund described above are
non-fundamental and may be changed by the Board of Trustees of the Fund so long as shareholders are provided with at least 60 days prior written notice of any change to the extent required by the rules under the 1940 Act.
Other investment techniques and strategies
As part of or in addition to the principal investment strategies discussed
above, the Fund may at times invest a portion of its assets in the investment strategies and may use certain investment techniques as described below.
Preferred Shares. The Fund may
invest in preferred shares. Preferred shares are equity securities, but they have many characteristics of fixed income securities, such as a fixed dividend payment rate and/or a liquidity preference over the issuer’s common shares. However,
because preferred shares are equity securities, they may be more susceptible to risks traditionally associated with equity investments than the Fund’s fixed income securities.
Real Estate Investment Trusts.
The Fund may invest a portion of its assets in REITs. REITs primarily invest in income-producing real estate or real estate related loans or interests. REITs are generally classified as equity REITs, mortgage REITs, or a combination of equity and
mortgage REITs. Equity REITs invest the majority of their assets directly in real property and derive income primarily from the collection of rents. Equity REITs can also realize capital gains by selling properties that have appreciated in value.
Mortgage REITs invest the majority of their assets in real estate mortgages and derive income from the collection of interest payments. The Fund will indirectly bear its proportionate share of any management and other expenses paid by REITs in which
it invests in addition to the expenses paid by the Fund. Distributions received by the Fund from REITs may consist of dividends, capital gains, and/or return of capital.
Loans. The high yield sleeve
of the Fund may invest in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. The loans in which the sleeve invests primarily consist of direct obligations of a borrower. The high yield sleeve of
the Fund may invest in a loan at origination as a co-lender or by acquiring in the secondary market participations in, assignments of or novations of a corporate loan. By purchasing a participation, the high yield sleeve of the Fund acquires some or
all of the interest of a bank or other lending institution in a loan to a borrower. The participations typically will result in the Fund having a contractual relationship only with the lender, not the borrower. The Fund will have the right to
receive payments of principal, interest and any fees to which it is entitled only from the lender selling the participation and only upon receipt by the lender of the payments from the borrower. Many such loans are secured, although some may
be
14 | Wells Fargo Global Dividend
Opportunity Fund
Objective, strategies and risks
(unaudited)
unsecured. Loans that are fully secured offer the Fund more protection than an
unsecured loan in the event of non-payment of scheduled interest or principal. However, there is no assurance that the liquidation of collateral from a secured loan would satisfy the corporate borrower’s obligation, or that the collateral can
be liquidated. Direct debt instruments may involve a risk of loss in case of default or insolvency of the borrower and may offer less legal protection to the Fund in the event of fraud or misrepresentation. In addition, loan participations involve a
risk of insolvency of the lending bank or other financial intermediary. The markets in loans are not regulated by federal securities laws or the U.S. Securities and Exchange Commission.
Asset-backed securities: The
high-yield sleeve may invest in asset-backed securities but will not invest in mortgage-backed securities. Asset-backed securities represent participations in and are secured by and payable from assets such as installment sales or loan contracts,
leases, credit card receivables and other categories of receivables.
Derivatives. The Fund may
purchase and sell derivative instruments such as exchange-listed and over-the-counter put and call options on securities, financial futures, equity, fixed-income and interest rate indices, and other financial instruments, purchase and sell financial
futures contracts and options thereon, and enter into various interest rate transactions such as swaps, caps, floors or collars. The Fund also may purchase derivative instruments that combine features of these instruments. Collectively, all of the
above are referred to as “derivatives.” The Fund generally seeks to use derivatives as a portfolio management or hedging technique to seek to protect against possible adverse changes in the market value of securities held in or to be
purchased for the Fund’s portfolio, protect the value of the Fund’s portfolio, facilitate the sale of certain securities for investment purposes, manage the effective interest rate exposure of the Fund, manage the effective maturity or
duration of the Fund’s portfolio, or establish positions in the derivatives markets as a temporary substitute for purchasing or selling particular securities.
The Fund may use a variety of other derivative instruments
(including both long and short positions) for hedging purposes, to adjust portfolio characteristics, or more generally for purposes of attempting to increase the Fund’s investment return, including, for example, buying and selling call and put
options, buying and selling futures contracts and options on futures contracts, and entering into forward contracts and swap agreements with respect to securities, indices, and currencies. There can be no assurance that the Fund will enter into any
such transaction at any particular time or under any specific circumstances.
With respect to the high yield sleeve, investments in
derivatives are limited to 10% of the sleeve’s total assets in futures and options on securities and indices and in other derivatives. In addition, the sleeve may enter into interest rate swap transactions with respect to the total amount the
high yield sleeve is leveraged in order to hedge against adverse changes in interest rates affecting dividends payable on any preferred shares or interest payable on borrowings constituting leverage. In connection with any such swap transaction, the
Fund will segregate liquid securities in the amount of its obligations under the transaction.
The high yield sleeve does not use derivatives as a primary
investment technique and generally does not anticipate using derivatives for non-hedging purposes. In the event the sleeve uses derivatives for non-hedging purposes, no more than 3% of the sleeve’s total assets will be committed to initial
margin for derivatives for such purposes. The sleeve may use derivatives for a variety of purposes, including as a hedge against adverse changes in securities market prices or interest rates and as a substitute for purchasing or selling
securities.
Futures Contracts. In addition to the strategies described above, the Fund may purchase or sell futures contracts on foreign securities indices and other assets. The Fund may use futures contracts for hedging purposes, to adjust portfolio
characteristics, or more generally for purposes of attempting to increase the Fund’s investment return.
Other Investment Companies.
The Fund may invest in shares of other affiliated or unaffiliated open-end investment companies (i.e., mutual funds), closed-end funds, exchange-traded funds (“ETFs”), UCITS funds (pooled investment
vehicles established in accordance with the Undertaking for Collective Investment in Transferable Securities adopted by European Union member states) and business development companies. The Fund may invest in securities of other investment companies
up to the limits prescribed in Section 12(d) under the 1940 Act, the rules and regulations thereunder and any exemptive relief currently or in the future available to a Fund.
Repurchase Agreements. The
Fund may enter into repurchase agreements with broker-dealers, member banks of the Federal Reserve System and other financial institutions. Repurchase agreements are arrangements under which the Fund purchases securities and the seller agrees to
repurchase the securities within a specific time and at a specific price. We review and monitor the creditworthiness of any institution which enters into a repurchase agreement with the Fund. The counterparty’s obligations under the repurchase
agreement are collateralized with U.S. Treasury and/or agency obligations with a market value of not less than 100% of the obligations, valued daily. Collateral is held by the Fund’s custodian in a segregated, safekeeping account for the
benefit of the Fund. Repurchase agreements afford the Fund an opportunity to earn income on temporarily available cash
Wells Fargo Global Dividend Opportunity
Fund | 15
Objective, strategies and risks
(unaudited)
at low risk. In the event that the counterparty to a repurchase agreement is
unwilling or unable to fulfill its contractual obligations to repurchase the underlying security, the Fund may lose money, suffer delays, or incur costs arising from holding or selling the underlying security.
Reverse Repurchase Agreements.
The Fund may enter into reverse repurchase agreements under which the Fund sells portfolio securities and agrees to repurchase them at an agreed-upon future date and price. Use of a reverse repurchase agreement may be preferable to a regular sale
and later repurchase of securities, because it avoids certain market risks and transaction costs. At the time the Fund enters into a reverse repurchase agreement, it will segregate cash or other liquid assets having a value equal to or greater than
the repurchase price (including accrued interest), and will subsequently monitor the account to ensure that the value of such segregated assets continues to be equal to or greater than the repurchase price. In the event that the buyer of securities
under a reverse repurchase agreement files for bankruptcy or becomes insolvent, the Fund’s use of proceeds from the agreement may be restricted pending a determination by the other party, or its trustee or receiver, whether to enforce the
Fund’s obligation to repurchase the securities. Reverse repurchase agreements may be viewed as a form of borrowing.
Private Placements. The Fund
may invest in private placements and other “restricted” securities. Private placement securities are securities sold in offerings that are exempt from registration under the Securities Act of 1933, as amended (the “1933
Act”). They are generally eligible for sale only to certain eligible investors. Private placements often may offer attractive opportunities for investment not otherwise available on the open market. However, private placement and other
restricted securities typically cannot be resold without registration under the 1933 Act or the availability of an exemption from registration (such as Rules 144A), and may not be readily marketable because they are subject to legal or contractual
delays in or restrictions on resale. Because there may be relatively few potential qualified purchasers for such securities, especially under adverse market or economic conditions, or in the event of adverse changes in the financial condition of the
issuer, the Fund could find it more difficult to sell such securities when it may be advisable to do so or it may be able to sell such securities only at prices lower than if such securities were more widely held and traded. Delay or difficulty in
selling such securities may result in a loss to the Fund.
Securities Lending. The Fund
may lend its securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. When securities are on loan, the Fund receives
interest or dividends on those securities. In a securities lending transaction, the net asset value of the Fund is affected by an increase or decrease in the value of the securities loaned and by an increase or decrease in the value of the
instrument in which collateral is invested. The amount of securities lending activity undertaken by the Fund fluctuates from time to time. The Fund has the right under the lending agreement to recover the securities from the borrower on demand. In
the event of default or bankruptcy by the borrower, the Fund may be prevented from recovering the loaned securities or gaining access to the collateral or may experience delays or costs in doing so. In such an event, the terms of the agreement
allows the unaffiliated securities lending agent to use the collateral to purchase replacement securities on behalf of the Fund or pay the Fund the market value of the loaned securities. The Fund bears the risk of loss with respect to depreciation
of its investment of the cash collateral.
Defensive and Temporary Investments. The Fund may hold some of its assets in cash or in money market instruments, including U.S. Government obligations, shares of other mutual funds and repurchase agreements, or make other short-term investments for
purposes of maintaining liquidity or for short-term defensive purposes when we believe it is in the best interests of the shareholders to do so. During these periods, the Fund may not achieve its objective.
Portfolio Turnover. It is the
policy of the Fund not to engage in trading for short-term profits although portfolio turnover is not considered a limiting factor in the execution of investment decisions for the Fund.
Principal risks
An investment in the Fund may lose money, is not a deposit of Wells Fargo
Bank, N.A. or its affiliates, is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency, and is primarily subject to the risks briefly summarized below.
Market Risk. The values of,
and/or the income generated by, securities held by a Fund may decline due to general market conditions or other factors, including those directly involving the issuers of such securities. Securities markets are volatile and may decline significantly
in response to adverse issuer, regulatory, political, or economic developments. Different sectors of the market and different security types may react differently to such developments. Political, geopolitical, natural and other events, including
war, terrorism, trade disputes, government shutdowns, market closures, natural and environmental disasters, epidemics, pandemics and other public health crises and related events have led, and in the future may lead, to economic uncertainty,
decreased economic activity, increased market volatility and other disruptive effects on U.S. and global economies and markets. Such events may have significant adverse direct or indirect effects on a Fund and its investments. In
addition,
16 | Wells Fargo Global Dividend
Opportunity Fund
Objective, strategies and risks
(unaudited)
economies and financial markets throughout the world are becoming increasingly
interconnected, which increases the likelihood that events or conditions in one country or region will adversely impact markets or issuers in other countries or regions.
Equity Securities Risk. The
values of equity securities may experience periods of substantial price volatility and may decline significantly over short time periods. In general, the values of equity securities are more volatile than those of debt securities. Equity securities
fluctuate in value and price in response to factors specific to the issuer of the security, such as management performance, financial condition, and market demand for the issuer’s products or services, as well as factors unrelated to the
fundamental condition of the issuer, including general market, economic and political conditions. Different parts of a market, industry and sector may react differently to adverse issuer, market, regulatory, political, and economic
developments.
Foreign Investment Risk. Foreign investments may be subject to lower liquidity, greater price volatility and risks related to adverse political, regulatory, market or economic developments. Foreign companies may be subject to significantly higher
levels of taxation than U.S. companies, including potentially confiscatory levels of taxation, thereby reducing the earnings potential of such foreign companies. Foreign investments may involve exposure to changes in foreign currency exchange rates.
Such changes may reduce the U.S. dollar value of the investments. Foreign investments may be subject to additional risks such as potentially higher withholding and other taxes, and may also be subject to greater trade settlement, custodial, and
other operational risks than domestic investments. Certain foreign markets may also be characterized by less stringent investor protection and disclosure standards.
Debt Securities Risk. Debt
securities are subject to credit risk and interest rate risk. Credit risk is the possibility that the issuer or guarantor of a debt security may be unable, or perceived to be unable, to pay interest or repay principal when they become due. In these
instances, the value of an investment could decline and the Fund could lose money. Credit risk increases as an issuer’s credit quality or financial strength declines. Interest rate risk is the possibility that interest rates will change over
time. When interest rates rise, the value of debt securities tends to fall. The longer the terms of the debt securities held by a Fund, the more the Fund is subject to this risk. If interest rates decline, interest that the Fund is able to earn on
its investments in debt securities may also decline, which could cause the Fund to reduce the dividends it pays to shareholders, but the value of those securities may increase. Very low or negative interest rates may magnify interest rate
risk.
High Yield Securities Risk. High yield securities and unrated securities of similar credit quality (commonly known as “junk bonds”) have a much greater risk of default (or in the case of bonds currently in default, of not returning
principal) and their values tend to be more volatile than higher-rated securities with similar maturities. Additionally, these securities tend to be less liquid and more difficult to value than higher-rated securities.
Growth/Value Investing Risk.
Securities that exhibit growth or value characteristics tend to perform differently and shift into and out of favor with investors depending on changes in market and economic sentiment and conditions. As a result, a Fund’s performance may at
times be worse than the performance of other mutual funds that invest more broadly or in securities of a different investment style.
Leverage Risk. The use of
leverage through the issuance of preferred shares and/or debt securities, or from borrowing money, may result in certain risks to the Fund as described below. Certain transactions, such as derivatives, also may give rise to a form of economic
leverage. Leveraging is a speculative technique, and there are special risks involved, including the risk that downside outcomes for common shareholders are magnified as a result of losses and declines in value of portfolio securities purchased with
borrowed money. In addition, the costs of the financial leverage may exceed the income from investments made with such leverage, interest rates or dividends payable on the financial leverage may affect the yield and distributions to the common
shareholders, and the net asset value and market value of common shares may be more volatile than if the Fund had not been leveraged. The use of leverage may cause the Fund to have to liquidate portfolio positions when it may not be advantageous to
do so. There can be no assurance that any leveraging strategies will be successful.
Because many derivatives have a leverage component (i.e., a
notional value in excess of the assets needed to establish and/or maintain the derivative position), adverse changes in the value or level of the underlying asset, rate or index may result in a loss substantially greater than the amount invested in
the derivative itself.
Options Risk. A Fund that purchases options, which are a type of derivative, is subject to the risk that gains, if any, realized on the position, will be less than the amount paid as premiums to the writer of the option. A Fund that
writes options receives a premium that may be small relative to the loss realized in the event of adverse changes in the value of the underlying instruments. A Fund that writes covered call options gives up the opportunity to profit from any price
increase in the underlying security above the option exercise price while the option is in effect. Options may be more volatile than the underlying instruments. In addition, there may at times be an imperfect correlation between the movement in
values of options and their underlying securities and there may at times not be a liquid secondary market for certain options.
Wells Fargo Global Dividend Opportunity
Fund | 17
Objective, strategies and risks
(unaudited)
Quantitative Model Risk. Funds
that are managed according to a quantitative model can perform differently from the market as a whole based on the factors used in the model, the weight placed on each factor and changes from the factors’ historical trends. Due to the
significant role technology plays in a quantitative model, use of a quantitative model carries the risk of potential issues with the design, coding, implementation or maintenance of the computer programs, data and/or other technology used in the
quantitative model. These issues could negatively impact investment returns.
Anti-takeover Provisions Risk.
The Fund’s governing documents include provisions that could limit the ability of other entities or persons to acquire control of the Fund or to change the composition of its Board of Trustees. Such provisions could limit the ability of
shareholders to sell their shares at a premium over prevailing market prices by discouraging a third party from seeking to obtain control of the Fund. These provisions include staggered terms of office for the Trustees, advance notice requirements
for shareholder proposals, and super majority voting requirements for open-ending the Fund or a merger, liquidation, asset sale or similar transactions.
Closed-end Fund Risk.
Closed-end funds involve investment risks different from those associated with other investment companies. Shares of closed-end funds frequently trade at either a premium or discount relative to their net asset value
(“NAV”). There can be no assurance that the discount will decrease. It is possible that a market discount may increase and the Fund may suffer realized or unrealized capital losses due to further decline in the market price of the
securities held by the Fund, thereby adversely affecting the NAV of the Fund’s shares. Similarly, there can be no assurance that the Fund’s shares will trade at a premium, will continue to trade at a premium or that the premium will not
decrease over time.
Convertible Securities Risk. A convertible security has characteristics of both equity and debt securities and, as a result, is exposed to risks that are typically associated with both types of securities. The market value of a convertible security
tends to decline as interest rates increase but also tends to reflect changes in the market price of the common stock of the issuing company. A convertible security is also exposed to the risk that an issuer is unable to meet its obligation to make
dividend or interest and principal payments when due as a result of changing financial or market conditions. In the event of a liquidation of the issuer, holders of a convertible security would generally be paid only after holders of any senior debt
obligations. The Fund may be forced to convert a convertible security before it would otherwise choose to do so, which may decrease the Fund’s return.
Derivatives Risk. The use of
derivatives, such as futures, options and swap agreements, presents risks different from, and possibly greater than, the risks associated with investing directly in traditional securities. The use of derivatives can lead to losses because of adverse
movements in the price or value of the derivatives’ underlying assets, indexes or rates and the derivatives themselves, which may be magnified by certain features of the derivatives. These risks are heightened when derivatives are used to
enhance a Fund’s return or as a substitute for a position or security, rather than solely to hedge (or mitigate) the risk of a position or security held by the Fund. The success of a derivative strategy will be affected by the portfolio
manager’s ability to assess and predict market or economic developments and their impact on the derivatives’ underlying assets, indexes or rates and the derivatives themselves. Certain derivative instruments may become illiquid and, as a
result, may be difficult to sell when the portfolio manager believes it would be appropriate to do so. Certain derivatives create leverage, which can magnify the impact of a decline in the value of their underlying assets, indexes or rates and
increase the volatility of the Fund’s net asset value. Certain derivatives (e.g., over-the-counter swaps) are also subject to the risk that the counterparty to the derivative contract will be unwilling or unable to fulfill its contractual
obligations, which may cause a Fund to lose money, suffer delays or incur costs arising from holding or selling an underlying asset. Changes in laws or regulations may make the use of derivatives more costly, may limit the availability of
derivatives, or may otherwise adversely affect the use, value or performance of derivatives.
Emerging Markets Risk.
Emerging market securities typically present even greater exposure to the risks described under “Foreign Investment Risk” and may be particularly sensitive to global economic conditions. For example, emerging market countries are
typically more dependent on exports and are therefore more vulnerable to recessions in other countries. Emerging markets tend to have less developed legal and financial systems and a smaller market capitalization than markets in developed countries.
Some emerging markets are subject to greater political instability. Additionally, emerging markets may have more volatile currencies and be more sensitive than developed markets to a variety of economic factors, including inflation. Emerging market
securities are also typically less liquid than securities of developed countries and could be difficult to sell, particularly during a market downturn.
Foreign Currency Risk. The
Fund may invest in non-dollar-denominated investments. The Fund may be limited in its ability to hedge the value of its non-dollar denominated investments against currency fluctuations. As a result, a decline in the value of currencies in which the
Fund’s investments are denominated against the dollar will result in a corresponding decline in the dollar value of the Fund’s assets. These declines will in turn affect the Fund’s income and net asset value.
18 | Wells Fargo Global Dividend
Opportunity Fund
Objective, strategies and risks
(unaudited)
Fund Distributions Risk. The
distributions shareholders receive from the Fund are based primarily on the dividends it earns from its investments in equity securities as well as the gains the Fund receives from writing options and using other derivative instruments, selling
portfolio securities, and on the interest payments on debt securities held by the Fund, each of which can vary widely over the short and long term. The dividend and interest income from the Fund’s investments in equity and debt securities will
be influenced by both general economic activity and issuer specific factors. In the event of a recession or adverse events affecting a specific industry or issuer, an issuer of equity securities held by the Fund may reduce the dividends paid on such
securities. A decline in prevailing market interest rates would likely result in a decrease in shareholders’ income from the Fund. In addition, because of the variable tax treatment of the Fund’s positions in options (mark-to-market
treatment for gains or losses from options that qualify as “section 1256 contracts” and short-term capital gain or loss treatment generally for other options), and because of limits on the number of long-term capital gains distributions
that the Fund may make in a year, distributions from the Fund may also be variable. There can be no assurance as to any level of short-term or long-term capital gains distributions or as to any ratio of quarterly distributions to capital gain
distributions. Moreover, because it will not be possible to determine the nature or character of the Fund’s distributions until the end of its taxable year, it is possible that a portion of the Fund’s distributions may constitute returns
of capital that are not currently includible in income, but that reduce a shareholder’s tax basis in his or her shares. Further, certain of the Fund’s call writing activities and investments in futures contracts and foreign currency
contracts may affect the character, timing, and recognition of income and could cause the Fund to liquidate other investments and distribute more in gains in order to satisfy its distribution requirements.
Futures Contracts Risk. A Fund
that uses futures contracts, which are a type of derivative, is subject to the risk of loss caused by unanticipated market movements. In addition, there may at times be an imperfect correlation between the movement in the prices of futures contracts
and the value of their underlying instruments or indexes, and there may at times not be a liquid secondary market for certain futures contracts.
Inflation/Deflation Risk.
Inflation risk is the risk that the value of assets or income from the Fund’s investments will be worth less in the future as inflation decreases the value of money. As inflation increases, the real, or inflation-adjusted, value of the common
shares and distributions can decline and the dividend payments on the Fund’s preferred shares, if any, or interest payments on Fund borrowings, if any, may increase. Deflation risk is the risk that prices throughout the economy decline over
time. Deflation may have an adverse effect on the creditworthiness of issuers and may make issuer default more likely, which may result in a decline in the value of the Fund’s portfolio.
Investment Risk. An investment
in the Fund is subject to investment risk, including the possible loss of the entire principal amount that you invest. Your investment in the Fund represents an indirect investment in the securities owned by the Fund. The value of these securities
may increase or decrease, at times rapidly and unexpectedly. Your investment in the Fund may at any point in the future be worth less than your original investment even after taking into account the reinvestment of dividends and
distributions.
Issuer Risk. The value of corporate income-producing securities may decline for a number of reasons which directly relate to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s
goods and services.
Loan Risk. Loans may be unrated, less liquid and more difficult to value than traditional debt securities. Loans may be made to finance highly leveraged corporate operations or acquisitions. The highly leveraged capital structure
of the borrowers in such transactions may make such loans especially vulnerable to adverse changes in financial, economic or market conditions. Loans generally are subject to restrictions on transfer, and only limited opportunities may exist to sell
such loans in secondary markets. As a result, the Fund may be unable to sell loans at a desired time or price. If the Fund acquires only an assignment or a participation in a loan made by a third party, the Fund may not be able to control
amendments, waivers or the exercise of any remedies that a lender would have under a direct loan and may assume liability as a lender.
Management Risk. Investment
decisions, techniques, analyses or models implemented by a Fund’s manager or sub-advisor in seeking to achieve the Fund’s investment objective may not produce the returns expected, may cause the Fund’s shares to lose value or may
cause the Fund to underperform other funds with similar investment objectives.
Market Price of Shares Risk.
Whether investors will realize a gain or loss upon the sale of the Fund’s common shares will depend upon whether the market value of the shares at the time of sale is above or below the price the investor paid, taking into account transaction
costs, for the shares and is not directly dependent upon the Fund’s net asset value. Because the market value of the Fund’s shares will be determined by factors such as the relative demand for and supply of the shares in the market,
general market conditions and other factors beyond the control of the Fund, the Fund cannot predict whether its common shares will trade at, below or above net asset value, or below or above the initial offering price for the shares.
Preferred Stock Risk. The Fund
may purchase preferred stock. Preferred stock, unlike common stock, has a stated dividend rate payable from the corporation’s earnings. Preferred stock dividends may be cumulative or non-cumulative, participating, or
Wells Fargo Global Dividend Opportunity
Fund | 19
Objective, strategies and risks
(unaudited)
auction rate. “Cumulative” dividend provisions require all or a
portion of prior unpaid dividends to be paid. If interest rates rise, the fixed dividend on preferred stocks may be less attractive, causing the price of preferred stocks to decline. Preferred stock may have mandatory sinking fund provisions, as
well as call/redemption provisions prior to maturity, which can be a negative feature when interest rates decline. The rights of preferred stock on distribution of a corporation’s assets in the event of a liquidation are generally subordinate
to the rights associated with a corporation’s debt securities.
REIT Risk. REITs involve
certain unique risks in addition to those of investing in the real estate industry in general. REITs are subject to interest rate risk (especially mortgage REITs) and the risk of non-payment or default by lessees or borrowers. An equity REIT may be
affected by changes in the value of the underlying properties owned by the REIT. A mortgage REIT may be affected by the ability of the issuers of its portfolio mortgages to repay their obligations. REITs whose underlying assets are concentrated in
properties used by a particular industry are also subject to risks associated with such industry. REITs may have limited financial resources, may trade less frequently and in a more limited volume, and may be subject to more abrupt or erratic price
movements than other types of securities. Mortgage REITs are also subject to prepayment risk—the risk that borrowers may pay off their mortgages sooner than expected, particularly when interest rates decline. This can reduce a REIT’s
returns to the Fund or the value of the Fund’s investment in the REIT because the REIT may have to reinvest that money at lower prevailing interest rates. Dividends paid by REITs will generally not qualify for the reduced federal income tax
rates applicable to qualified dividends under the Code.
Smaller Company Securities Risk. Securities of companies with smaller market capitalizations tend to be more volatile and less liquid than those of larger companies. Smaller companies may have no or relatively short operating histories, limited financial
resources or may have recently become public companies. Some of these companies have aggressive capital structures, including high debt levels, or are involved in rapidly growing or changing industries and/or new technologies.
20 | Wells Fargo Global Dividend
Opportunity Fund
Portfolio of
investments—April 30, 2021 (unaudited)
|
|
|
|
|
Shares
|
Value
|
Common
stocks: 95.19%
|
|
|
|
|
|
|
Australia:
1.57%
|
|
|
|
|
|
|
Fortescue
Metals Group Limited (Materials, Metals & mining)
|
|
|
|
|
232,906
|
$ 4,053,079
|
Canada:
2.98%
|
|
|
|
|
|
|
Power
Corporation of Canada (Financials, Insurance)
|
|
|
|
|
90,673
|
2,640,925
|
Russell
Metals Incorporated (Industrials, Trading companies & distributors)
|
|
|
|
|
97,015
|
2,224,206
|
TFI
International Incorporated (Industrials, Road & rail)
|
|
|
|
|
32,131
|
2,815,367
|
|
|
|
|
|
|
7,680,498
|
China:
2.95%
|
|
|
|
|
|
|
Alibaba
Group Holding Limited ADR (Consumer discretionary, Internet & direct marketing retail) †
|
|
|
|
|
99,231
|
2,874,317
|
Lenovo
Group Limited (Information technology, Technology hardware, storage & peripherals)
|
|
|
|
|
1,822,000
|
2,505,096
|
Logan
Property Holdings Company Limited (Real estate, Real estate management & development)
|
|
|
|
|
1,390,241
|
2,212,144
|
|
|
|
|
|
|
7,591,557
|
France:
3.91%
|
|
|
|
|
|
|
BNP
Paribas SA (Financials, Banks) †
|
|
|
|
|
36,912
|
2,369,311
|
L'Oréal
SA (Consumer staples, Personal products)
|
|
|
|
|
5,740
|
2,357,697
|
Schneider
Electric SE (Industrials, Electrical equipment)
|
|
|
|
|
17,702
|
2,830,961
|
Total
SA (Energy, Oil, gas & consumable fuels)
|
|
|
|
|
56,945
|
2,521,117
|
|
|
|
|
|
|
10,079,086
|
Germany:
2.32%
|
|
|
|
|
|
|
Bayerische
Motoren Werke AG (Consumer discretionary, Automobiles)
|
|
|
|
|
33,257
|
3,334,600
|
Siemens
AG (Industrials, Industrial conglomerates)
|
|
|
|
|
15,768
|
2,631,621
|
|
|
|
|
|
|
5,966,221
|
Hong
Kong: 0.91%
|
|
|
|
|
|
|
WH
Group Limited (Consumer staples, Food products) 144A
|
|
|
|
|
2,689,049
|
2,350,570
|
Ireland:
1.38%
|
|
|
|
|
|
|
Seagate
Technology plc (Information technology, Technology hardware, storage & peripherals)
|
|
|
|
|
38,345
|
3,559,950
|
Italy:
0.92%
|
|
|
|
|
|
|
Unipol
Gruppo SpA (Financials, Insurance) †
|
|
|
|
|
434,111
|
2,377,299
|
Japan:
4.35%
|
|
|
|
|
|
|
Honda
Motor Company Limited (Consumer discretionary, Automobiles)
|
|
|
|
|
138,900
|
4,107,648
|
Nintendo
Company Limited (Communication services, Entertainment)
|
|
|
|
|
7,004
|
4,017,575
|
ORIX
Corporation (Financials, Diversified financial services)
|
|
|
|
|
191,825
|
3,084,751
|
|
|
|
|
|
|
11,209,974
|
Netherlands:
3.51%
|
|
|
|
|
|
|
ING
Groep NV (Financials, Banks)
|
|
|
|
|
260,392
|
3,327,787
|
The accompanying notes are an integral part of these financial
statements.
Wells Fargo Global Dividend Opportunity
Fund | 21
Portfolio of
investments—April 30, 2021 (unaudited)
|
|
|
|
|
Shares
|
Value
|
Netherlands:
(continued)
|
|
|
|
|
|
|
LyondellBasell
Industries NV Class A (Materials, Chemicals)
|
|
|
|
|
24,338
|
$
2,524,824
|
NN
Group NV (Financials, Insurance)
|
|
|
|
|
63,730
|
3,185,067
|
|
|
|
|
|
|
9,037,678
|
South
Africa: 1.18%
|
|
|
|
|
|
|
Vodacom
Group Limited (Communication services, Wireless telecommunication services)
|
|
|
|
|
351,108
|
3,043,945
|
South
Korea: 1.35%
|
|
|
|
|
|
|
Samsung
Electronics Company Limited GDR (Information technology, Technology hardware, storage & peripherals) 144A
|
|
|
|
|
1,906
|
3,470,826
|
Sweden:
4.22%
|
|
|
|
|
|
|
Epiroc
AB Class A (Industrials, Machinery)
|
|
|
|
|
113,084
|
2,451,219
|
Evolution
Gaming Group (Consumer discretionary, Hotels, restaurants & leisure) 144A
|
|
|
|
|
15,468
|
3,055,028
|
SKF
AB Class B (Industrials, Machinery)
|
|
|
|
|
111,791
|
2,886,701
|
Volvo
AB Class B (Industrials, Machinery)
|
|
|
|
|
101,942
|
2,490,884
|
|
|
|
|
|
|
10,883,832
|
Switzerland:
2.07%
|
|
|
|
|
|
|
Logitech
International SA (Information technology, Technology hardware, storage & peripherals)
|
|
|
|
|
25,662
|
2,877,404
|
UBS
Group AG (Financials, Capital markets)
|
|
|
|
|
161,020
|
2,455,191
|
|
|
|
|
|
|
5,332,595
|
Taiwan:
1.16%
|
|
|
|
|
|
|
Taiwan
Semiconductor Manufacturing Company Limited ADR (Information technology, Semiconductors & semiconductor equipment)
|
|
|
|
|
25,545
|
2,982,123
|
United
Kingdom: 7.73%
|
|
|
|
|
|
|
888
Holdings plc (Consumer discretionary, Hotels, restaurants & leisure)
|
|
|
|
|
377,733
|
2,225,436
|
Ferguson
plc (Industrials, Trading companies & distributors)
|
|
|
|
|
18,886
|
2,381,854
|
Rio
Tinto plc (Materials, Metals & mining)
|
|
|
|
|
49,076
|
4,118,093
|
Royal
Dutch Shell plc (Energy, Oil, gas & consumable fuels)
|
|
|
|
|
141,603
|
2,669,404
|
SSE
plc (Utilities, Electric utilities)
|
|
|
|
|
146,648
|
2,973,113
|
Tesco
plc (Consumer staples, Food & staples retailing)
|
|
|
|
|
628,620
|
1,918,623
|
Vodafone
Group plc (Communication services, Wireless telecommunication services)
|
|
|
|
|
1,914,641
|
3,617,285
|
|
|
|
|
|
|
19,903,808
|
United
States: 52.68%
|
|
|
|
|
|
|
Abbott
Laboratories (Health care, Health care equipment & supplies)
|
|
|
|
|
25,338
|
3,042,587
|
AbbVie
Incorporated (Health care, Biotechnology) #
|
|
|
|
|
40,194
|
4,481,631
|
AGNC
Investment Corporation (Financials, Mortgage REITs) #
|
|
|
|
|
194,463
|
3,486,722
|
Alphabet
Incorporated Class A (Communication services, Interactive media & services) †#
|
|
|
|
|
1,774
|
4,175,109
|
Amazon.com
Incorporated (Consumer discretionary, Internet & direct marketing retail) †#
|
|
|
|
|
1,314
|
4,556,190
|
Apple
Incorporated (Information technology, Technology hardware, storage & peripherals) #
|
|
|
|
|
57,494
|
7,558,161
|
Ares
Capital Corporation (Financials, Capital markets) #
|
|
|
|
|
174,617
|
3,361,377
|
The accompanying notes are an integral part of these financial
statements.
22 | Wells Fargo Global Dividend
Opportunity Fund
Portfolio of
investments—April 30, 2021 (unaudited)
|
|
|
|
|
Shares
|
Value
|
United
States: (continued)
|
|
|
|
|
|
|
Artisan
Partners Asset Management Incorporated Class A (Financials, Capital markets) #
|
|
|
|
|
35,220
|
$ 1,793,402
|
BlackRock
Incorporated (Financials, Capital markets) #
|
|
|
|
|
3,918
|
3,210,017
|
Bristol-Myers
Squibb Company (Health care, Pharmaceuticals) #
|
|
|
|
|
56,879
|
3,550,387
|
Bristow
Group Incorporated (Energy, Energy equipment & services) †
|
|
|
|
|
20,795
|
550,236
|
Cisco
Systems Incorporated (Information technology, Communications equipment)
|
|
|
|
|
58,810
|
2,994,017
|
Citizens
Financial Group Incorporated (Financials, Banks)
|
|
|
|
|
50,822
|
2,352,042
|
Compass
Diversified Holdings (Financials, Diversified financial services)
|
|
|
|
|
44,639
|
1,135,616
|
ConocoPhillips
(Energy, Oil, gas & consumable fuels) #
|
|
|
|
|
43,771
|
2,238,449
|
Cummins
Incorporated (Industrials, Machinery) #
|
|
|
|
|
13,703
|
3,453,704
|
CVS
Health Corporation (Health care, Health care providers & services) #
|
|
|
|
|
55,790
|
4,262,356
|
Denbury
Incorporated (Energy, Oil, gas & consumable fuels) †
|
|
|
|
|
7,875
|
428,479
|
Easterly
Government Properties Incorporated (Real estate, Equity REITs)
|
|
|
|
|
161,234
|
3,455,245
|
Emerson
Electric Company (Industrials, Electrical equipment)
|
|
|
|
|
42,138
|
3,813,068
|
Ford
Motor Company (Consumer discretionary, Automobiles) †
|
|
|
|
|
244,781
|
2,824,773
|
Honeywell
International Incorporated (Industrials, Industrial conglomerates)
|
|
|
|
|
13,250
|
2,955,280
|
International
Business Machines Corporation (Information technology, IT services)
|
|
|
|
|
18,244
|
2,588,459
|
JPMorgan
Chase & Company (Financials, Banks)
|
|
|
|
|
31,744
|
4,882,545
|
Keysight
Technologies Incorporated (Information technology, Electronic equipment, instruments & components) †
|
|
|
|
|
22,837
|
3,296,521
|
KLA
Corporation (Information technology, Semiconductors & semiconductor equipment)
|
|
|
|
|
7,909
|
2,494,103
|
Microsoft
Corporation (Information technology, Software)
|
|
|
|
|
33,449
|
8,435,169
|
Morgan
Stanley (Financials, Capital markets)
|
|
|
|
|
43,766
|
3,612,883
|
National
Fuel Gas Company (Utilities, Gas utilities)
|
|
|
|
|
23,241
|
1,154,148
|
New
Residential Investment Corporation (Financials, Mortgage REITs)
|
|
|
|
|
235,217
|
2,521,526
|
NVIDIA
Corporation (Information technology, Semiconductors & semiconductor equipment)
|
|
|
|
|
4,460
|
2,677,695
|
Patterson
Companies Incorporated (Health care, Health care providers & services)
|
|
|
|
|
110,204
|
3,541,957
|
QUALCOMM
Incorporated (Information technology, Semiconductors & semiconductor equipment)
|
|
|
|
|
31,318
|
4,346,938
|
Target
Corporation (Consumer discretionary, Multiline retail)
|
|
|
|
|
22,842
|
4,734,233
|
Tesla
Motors Incorporated (Consumer discretionary, Automobiles) †
|
|
|
|
|
2,721
|
1,930,386
|
Texas
Instruments Incorporated (Information technology, Semiconductors & semiconductor equipment)
|
|
|
|
|
24,958
|
4,505,169
|
The
Procter & Gamble Company (Consumer staples, Household products)
|
|
|
|
|
26,135
|
3,486,932
|
UnitedHealth
Group Incorporated (Health care, Health care providers & services)
|
|
|
|
|
9,537
|
3,803,356
|
Verizon
Communications Incorporated (Communication services, Diversified telecommunication services)
|
|
|
|
|
78,506
|
4,536,862
|
The accompanying notes are an integral part of these financial
statements.
Wells Fargo Global Dividend Opportunity
Fund | 23
Portfolio of
investments—April 30, 2021 (unaudited)
|
|
|
|
|
Shares
|
Value
|
United
States: (continued)
|
|
|
|
|
|
|
Walmart
Incorporated (Consumer staples, Food & staples retailing)
|
|
|
|
|
23,558
|
$
3,296,000
|
Whiting
Petroleum Corporation (Energy, Oil, gas & consumable fuels) †
|
|
|
|
|
5,052
|
202,434
|
|
|
|
|
|
|
135,726,164
|
Total
Common stocks (Cost $194,973,115)
|
|
|
|
|
|
245,249,205
|
|
|
Interest
rate
|
Maturity
date
|
|
Principal
|
|
Corporate
bonds and notes: 17.35%
|
|
|
|
|
|
|
United
States: 17.35%
|
|
|
|
|
|
|
AdaptHealth
LLC (Health care, Health care providers & services)
|
|
4.63%
|
8-1-2029
|
$
|
55,000
|
54,693
|
Aethon
United (Energy, Oil, gas & consumable fuels) 144A
|
|
8.25
|
2-15-2026
|
|
265,000
|
281,714
|
Air
Methods Corporation (Health care, Health care providers & services)
|
|
8.00
|
5-15-2025
|
|
140,000
|
131,216
|
American
Airlines Group Incorporated (Industrials, Airlines) 144A
|
|
3.75
|
3-1-2025
|
|
125,000
|
109,844
|
American
Airlines Group Incorporated (Industrials, Airlines) 144A
|
|
5.50
|
4-20-2026
|
|
275,000
|
288,750
|
American
Airlines Group Incorporated (Industrials, Airlines) 144A
|
|
5.75
|
4-20-2029
|
|
550,000
|
589,325
|
Amwins
Group Incorporated (Financials, Insurance)
|
|
7.75
|
7-1-2026
|
|
320,000
|
339,600
|
Antero
Resources Corporation (Energy, Oil, gas & consumable fuels)
|
|
5.00
|
3-1-2025
|
|
310,000
|
314,650
|
Antero
Resources Corporation (Energy, Oil, gas & consumable fuels) 144A
|
|
8.38
|
7-15-2026
|
|
40,000
|
44,915
|
Arches
Buyer Incorporated (Materials, Metals & mining) 144A
|
|
4.25
|
6-1-2028
|
|
35,000
|
34,869
|
Arches
Buyer Incorporated (Materials, Metals & mining)
|
|
6.13
|
12-1-2028
|
|
80,000
|
82,000
|
Archrock
Partners LP (Energy, Oil, gas & consumable fuels) 144A
|
|
6.25
|
4-1-2028
|
|
125,000
|
130,676
|
Archrock
Partners LP (Energy, Oil, gas & consumable fuels) 144A
|
|
6.88
|
4-1-2027
|
|
100,000
|
106,375
|
Asbury
Automotive Group Incorporated (Consumer discretionary, Specialty retail)
|
|
4.75
|
3-1-2030
|
|
83,000
|
86,735
|
Asbury
Automotive Group Incorporated (Consumer discretionary, Specialty retail)
|
|
4.50
|
3-1-2028
|
|
96,000
|
98,880
|
Berry
Global Incorporated (Materials, Containers & packaging) 144A
|
|
5.63
|
7-15-2027
|
|
25,000
|
26,625
|
Blackstone
Mortgage Trust Incorporated (Financials, Mortgage REITs)
|
|
4.38
|
5-5-2022
|
|
95,000
|
97,195
|
Block
Communications Incorporated (Communication services, Media)
|
|
4.88
|
3-1-2028
|
|
25,000
|
25,438
|
Bristow
Group Incorporated (Energy, Energy equipment & services) ♦†
|
|
6.25
|
10-15-2022
|
|
700,000
|
0
|
Bristow
Group Incorporated (Energy, Energy equipment & services)
|
|
6.88
|
3-1-2028
|
|
500,000
|
506,875
|
Broadstreet
Partners Incorporated (Financials, Insurance) 144A
|
|
5.88
|
4-15-2029
|
|
165,000
|
167,508
|
Buckeye
Partners LP (Energy, Oil, gas & consumable fuels)
|
|
5.85
|
11-15-2043
|
|
200,000
|
196,876
|
Cablevision
Lightpath LLC (Communication services, Diversified telecommunication services) 144A
|
|
5.63
|
9-15-2028
|
|
130,000
|
133,250
|
Cablevision
Lightpath LLC (Communication services, Diversified telecommunication services)
|
|
3.88
|
9-15-2027
|
|
40,000
|
39,450
|
The accompanying notes are an integral part of these financial
statements.
24 | Wells Fargo Global Dividend
Opportunity Fund
Portfolio of
investments—April 30, 2021 (unaudited)
|
|
Interest
rate
|
Maturity
date
|
|
Principal
|
Value
|
United
States: 17.35% (continued)
|
|
|
|
|
|
|
Cardtronics
Incorporated (Information technology, IT services)
|
|
5.50%
|
5-1-2025
|
$
|
370,000
|
$ 380,175
|
Carnival
Corporation (Consumer discretionary, Hotels, restaurants & leisure) 144A
|
|
10.50
|
2-1-2026
|
|
230,000
|
271,090
|
Carnival
Corporation (Consumer discretionary, Hotels, restaurants & leisure) 144A
|
|
5.75
|
3-1-2027
|
|
95,000
|
100,166
|
Carnival
Corporation (Consumer discretionary, Hotels, restaurants & leisure)
|
|
7.63
|
3-1-2026
|
|
284,000
|
310,980
|
Carnival
Corporation (Consumer discretionary, Hotels, restaurants & leisure) 144A
|
|
9.88
|
8-1-2027
|
|
100,000
|
117,500
|
Carnival
Corporation (Consumer discretionary, Hotels, restaurants & leisure) 144A
|
|
11.50
|
4-1-2023
|
|
250,000
|
287,300
|
Carriage
Services Incorporated (Consumer discretionary, Diversified consumer services) 144A
|
|
4.25
|
5-15-2029
|
|
170,000
|
168,938
|
Carriage
Services Incorporated (Consumer discretionary, Diversified consumer services) 144A
|
|
6.63
|
6-1-2026
|
|
450,000
|
473,850
|
CCM
Merger Incorporated (Consumer discretionary, Hotels, restaurants & leisure) 144A
|
|
6.38
|
5-1-2026
|
|
275,000
|
287,375
|
CCO
Holdings LLC (Communication services, Media) 144A
|
|
4.25
|
2-1-2031
|
|
500,000
|
500,000
|
CCO
Holdings LLC (Communication services, Media) 144A
|
|
4.50
|
8-15-2030
|
|
125,000
|
127,174
|
CCO
Holdings LLC (Communication services, Media) 144A
|
|
4.50
|
5-1-2032
|
|
75,000
|
75,750
|
CCO
Holdings LLC (Communication services, Media) 144A
|
|
5.00
|
2-1-2028
|
|
25,000
|
26,125
|
Centene
Corporation (Health care, Health care providers & services) 144A
|
|
5.38
|
8-15-2026
|
|
25,000
|
26,225
|
Change
Healthcare Holdings Incorporated (Health care, Health care technology) 144A
|
|
5.75
|
3-1-2025
|
|
550,000
|
558,938
|
Cheniere
Energy Partners LP (Energy, Oil, gas & consumable fuels)
|
|
4.50
|
10-1-2029
|
|
75,000
|
78,281
|
Cheniere
Energy Partners LP (Energy, Oil, gas & consumable fuels)
|
|
5.63
|
10-1-2026
|
|
100,000
|
104,250
|
CHS
Incorporated (Consumer staples, Food products) 144A
|
|
6.00
|
1-15-2029
|
|
10,000
|
10,527
|
CHS
Incorporated (Health care, Health care providers & services) 144A
|
|
6.63
|
2-15-2025
|
|
255,000
|
268,706
|
CHS
Incorporated (Consumer staples, Food products) 144A
|
|
6.88
|
4-15-2029
|
|
300,000
|
313,500
|
Cinemark
USA Incorporated (Communication services, Media)
|
|
4.88
|
6-1-2023
|
|
541,000
|
540,297
|
Cinemark
USA Incorporated (Communication services, Media) 144A
|
|
5.88
|
3-15-2026
|
|
40,000
|
41,450
|
Cinemark
USA Incorporated (Communication services, Media) 144A
|
|
8.75
|
5-1-2025
|
|
90,000
|
97,988
|
Clarios
Global LP (Consumer discretionary, Auto components) 144A
|
|
6.25
|
5-15-2026
|
|
25,000
|
26,517
|
Clarios
Global LP (Consumer discretionary, Auto components) 144A
|
|
6.75
|
5-15-2025
|
|
25,000
|
26,844
|
Clarios
Global LP (Consumer discretionary, Auto components) 144A
|
|
8.50
|
5-15-2027
|
|
300,000
|
324,000
|
Clearwater
Paper Corporation (Materials, Paper & forest products) 144A
|
|
5.38
|
2-1-2025
|
|
50,000
|
53,000
|
Clearwater
Paper Corporation (Materials, Paper & forest products) 144A
|
|
4.75
|
8-15-2028
|
|
50,000
|
50,379
|
Cleveland
Cliffs Incorporated (Materials, Metals & mining) 144A
|
|
4.88
|
3-1-2031
|
|
50,000
|
50,875
|
Cleveland
Cliffs Incorporated (Materials, Metals & mining)
|
|
5.88
|
6-1-2027
|
|
110,000
|
115,363
|
Cleveland
Cliffs Incorporated (Materials, Metals & mining) 144A
|
|
9.88
|
10-17-2025
|
|
76,000
|
89,205
|
The accompanying notes are an integral part of these financial
statements.
Wells Fargo Global Dividend Opportunity
Fund | 25
Portfolio of
investments—April 30, 2021 (unaudited)
|
|
Interest
rate
|
Maturity
date
|
|
Principal
|
Value
|
United
States: 17.35% (continued)
|
|
|
|
|
|
|
CommScope
Incorporated (Information technology, Communications equipment) 144A
|
|
8.25%
|
3-1-2027
|
$
|
225,000
|
$ 241,031
|
CommScope
Technologies Finance LLC (Information technology, Communications equipment) 144A
|
|
6.00
|
6-15-2025
|
|
109,000
|
110,908
|
Compression
Partners LP (Communication services, Media)
|
|
6.88
|
9-1-2027
|
|
55,000
|
57,871
|
Consolidated
Communications Holdings Incorporated (Communication services, Wireless telecommunication services) 144A
|
|
6.50
|
10-1-2028
|
|
130,000
|
140,056
|
Cooper
Tire & Rubber Company (Consumer discretionary, Auto components)
|
|
7.63
|
3-15-2027
|
|
475,000
|
555,261
|
Corecivic
Incorporated (Industrials, Commercial services & supplies)
|
|
8.25
|
4-15-2026
|
|
245,000
|
246,225
|
Crown
Cork & Seal Company Incorporated (Materials, Containers & packaging)
|
|
7.38
|
12-15-2026
|
|
150,000
|
182,250
|
CSC
Holdings LLC (Communication services, Media) 144A
|
|
4.13
|
12-1-2030
|
|
50,000
|
49,750
|
CSC
Holdings LLC (Communication services, Media) 144A
|
|
4.63
|
12-1-2030
|
|
450,000
|
439,875
|
CSC
Holdings LLC (Communication services, Media) 144A
|
|
7.50
|
4-1-2028
|
|
200,000
|
220,250
|
Dana
Incorporated (Consumer discretionary, Auto components)
|
|
4.25
|
9-1-2030
|
|
105,000
|
106,050
|
Davita
Incorporated (Health care, Health care providers & services) 144A
|
|
4.63
|
6-1-2030
|
|
125,000
|
126,563
|
DCP
Midstream Operating Company (Energy, Oil, gas & consumable fuels)
|
|
5.13
|
5-15-2029
|
|
375,000
|
400,313
|
Delta
Air Lines Incorporated (Industrials, Airlines)
|
|
3.75
|
10-28-2029
|
|
145,000
|
144,423
|
Delta
Air Lines Incorporated (Industrials, Airlines) 144A
|
|
4.75
|
10-20-2028
|
|
650,000
|
713,780
|
Diamond
Sports Group LLC (Communication services, Media) 144A
|
|
5.38
|
8-15-2026
|
|
100,000
|
73,000
|
Diamond
Sports Group LLC (Communication services, Media) 144A
|
|
6.63
|
8-15-2027
|
|
275,000
|
148,500
|
Encino
Acquisition Partners Company (Energy, Oil, gas & consumable fuels) 144A
|
|
8.50
|
5-1-2028
|
|
305,000
|
298,815
|
Encompass
Health Corporation (Health care, Health care providers & services)
|
|
4.50
|
2-1-2028
|
|
75,000
|
77,719
|
Encompass
Health Corporation (Health care, Health care providers & services)
|
|
4.75
|
2-1-2030
|
|
100,000
|
105,000
|
Encompass
Health Corporation (Health care, Health care providers & services)
|
|
4.63
|
4-1-2031
|
|
40,000
|
42,400
|
EnLink
Midstream LLC (Energy, Oil, gas & consumable fuels)
|
|
5.38
|
6-1-2029
|
|
350,000
|
350,000
|
EnLink
Midstream Partners LP (Energy, Oil, gas & consumable fuels)
|
|
4.40
|
4-1-2024
|
|
75,000
|
76,901
|
EnLink
Midstream Partners LP (Energy, Oil, gas & consumable fuels)
|
|
5.05
|
4-1-2045
|
|
275,000
|
226,188
|
EnLink
Midstream Partners LP (Energy, Oil, gas & consumable fuels)
|
|
5.60
|
4-1-2044
|
|
400,000
|
345,000
|
EnLink
Midstream Partners LP (Energy, Oil, gas & consumable fuels) 144A
|
|
5.63
|
1-15-2028
|
|
40,000
|
41,350
|
Enviva
Partners LP (Energy, Oil, gas & consumable fuels) 144A
|
|
6.50
|
1-15-2026
|
|
500,000
|
524,375
|
Fair
Isaac Corporation (Information technology, Software) 144A
|
|
5.25
|
5-15-2026
|
|
250,000
|
277,500
|
FirstCash
Incorporated (Financials, Consumer finance) 144A
|
|
4.63
|
9-1-2028
|
|
95,000
|
97,613
|
Flex
Acquisition Company Incorporated (Materials, Containers & packaging) 144A
|
|
6.88
|
1-15-2025
|
|
125,000
|
127,031
|
Flex
Acquisition Company Incorporated (Materials, Containers & packaging) 144A
|
|
7.88
|
7-15-2026
|
|
195,000
|
204,019
|
The accompanying notes are an integral part of these financial
statements.
26 | Wells Fargo Global Dividend
Opportunity Fund
Portfolio of
investments—April 30, 2021 (unaudited)
|
|
Interest
rate
|
Maturity
date
|
|
Principal
|
Value
|
United
States: 17.35% (continued)
|
|
|
|
|
|
|
Flexential
Intermediate Corporation (Information technology, IT services) 144A
|
|
11.25%
|
8-1-2024
|
$
|
90,000
|
$ 97,200
|
Ford
Motor Company (Consumer discretionary, Automobiles)
|
|
9.00
|
4-22-2025
|
|
25,000
|
30,531
|
Ford
Motor Company (Consumer discretionary, Automobiles)
|
|
9.63
|
4-22-2030
|
|
25,000
|
35,063
|
Ford
Motor Credit Company LLC (Financials, Consumer finance)
|
|
4.39
|
1-8-2026
|
|
325,000
|
346,938
|
Ford
Motor Credit Company LLC (Financials, Consumer finance)
|
|
5.11
|
5-3-2029
|
|
475,000
|
518,795
|
Ford
Motor Credit Company LLC (Financials, Consumer finance)
|
|
5.13
|
6-16-2025
|
|
75,000
|
81,930
|
Fortress
Transportation & Infrastructure Investors LLC (Industrials, Trading companies & distributors) 144A
|
|
5.50
|
5-1-2028
|
|
295,000
|
305,694
|
Fortress
Transportation & Infrastructure Investors LLC (Industrials, Trading companies & distributors) 144A
|
|
6.50
|
10-1-2025
|
|
285,000
|
296,400
|
Fortress
Transportation & Infrastructure Investors LLC (Industrials, Trading companies & distributors) 144A
|
|
9.75
|
8-1-2027
|
|
34,000
|
39,270
|
Frontier
Communications Corporation (Communication services, Diversified telecommunication services) 144A
|
|
5.88
|
10-15-2027
|
|
40,000
|
42,500
|
Genworth
Mortgage Holding (Financials, Insurance) 144A
|
|
6.50
|
8-15-2025
|
|
85,000
|
92,302
|
Goodyear
Tire & Rubber Company (Consumer discretionary, Auto components)
|
|
5.13
|
11-15-2023
|
|
100,000
|
100,010
|
Gray
Television Incorporated (Communication services, Media) 144A
|
|
7.00
|
5-15-2027
|
|
50,000
|
54,563
|
Gray
Television Incorporated (Communication services, Media) 144A
|
|
4.75
|
10-15-2030
|
|
200,000
|
200,000
|
Group
1 Automotive Incorporated (Consumer discretionary, Specialty retail) 144A
|
|
4.00
|
8-15-2028
|
|
100,000
|
99,875
|
Harvest
Midstream LP (Energy, Oil, gas & consumable fuels) 144A
|
|
7.50
|
9-1-2028
|
|
150,000
|
161,625
|
Hawaiian
Airlines Incorporated (Industrials, Airlines)
|
|
3.90
|
7-15-2027
|
|
98,763
|
96,836
|
Hawaiian
Brand Intellectual Property Limited (Financials, Consumer finance) 144A
|
|
5.75
|
1-20-2026
|
|
525,000
|
554,531
|
Hilcorp
Energy Company (Energy, Energy equipment & services) 144A
|
|
5.75
|
2-1-2029
|
|
60,000
|
61,050
|
Hilcorp
Energy Company (Energy, Energy equipment & services) 144A
|
|
6.00
|
2-1-2031
|
|
60,000
|
61,800
|
Hilcorp
Energy Company (Energy, Energy equipment & services) 144A
|
|
6.25
|
11-1-2028
|
|
50,000
|
51,899
|
HUB
International Limited (Financials, Insurance) 144A
|
|
7.00
|
5-1-2026
|
|
125,000
|
129,509
|
IAA
Spinco Incorporated (Industrials, Commercial services & supplies) 144A
|
|
5.50
|
6-15-2027
|
|
500,000
|
525,625
|
IQVIA
Incorporated (Information technology, Software) 144A
|
|
5.00
|
5-15-2027
|
|
125,000
|
130,781
|
Kaiser
Aluminum Corporation (Materials, Metals & mining) 144A
|
|
4.63
|
3-1-2028
|
|
75,000
|
77,063
|
Kaiser
Aluminum Corporation (Materials, Metals & mining) 144A
|
|
6.50
|
5-1-2025
|
|
25,000
|
26,500
|
Kraft
Heinz Foods Company (Consumer staples, Food products)
|
|
4.38
|
6-1-2046
|
|
195,000
|
208,982
|
Ladder
Capital Finance Holdings LP (Financials, Thrifts & mortgage finance) 144A
|
|
5.25
|
3-15-2022
|
|
50,000
|
50,188
|
Ladder
Capital Finance Holdings LP (Financials, Thrifts & mortgage finance) 144A
|
|
5.25
|
10-1-2025
|
|
400,000
|
404,000
|
The accompanying notes are an integral part of these financial
statements.
Wells Fargo Global Dividend Opportunity
Fund | 27
Portfolio of
investments—April 30, 2021 (unaudited)
|
|
Interest
rate
|
Maturity
date
|
|
Principal
|
Value
|
United
States: 17.35% (continued)
|
|
|
|
|
|
|
Level
3 Financing Incorporated (Communication services, Diversified telecommunication services) 144A
|
|
3.63%
|
1-15-2029
|
$
|
75,000
|
$ 72,656
|
Level
3 Financing Incorporated (Communication services, Diversified telecommunication services) 144A
|
|
4.25
|
7-1-2028
|
|
100,000
|
100,761
|
Lithia
Motors Incorporated (Consumer discretionary, Specialty retail) 144A
|
|
4.38
|
1-15-2031
|
|
40,000
|
42,100
|
Lithia
Motors Incorporated (Consumer discretionary, Specialty retail) 144A
|
|
4.63
|
12-15-2027
|
|
50,000
|
52,500
|
Lithia
Motors Incorporated (Consumer discretionary, Specialty retail) 144A
|
|
5.25
|
8-1-2025
|
|
325,000
|
335,563
|
Live
Nation Entertainment Incorporated (Communication services, Entertainment) 144A
|
|
3.75
|
1-15-2028
|
|
50,000
|
49,818
|
Live
Nation Entertainment Incorporated (Communication services, Entertainment) 144A
|
|
5.63
|
3-15-2026
|
|
55,000
|
57,200
|
Live
Nation Entertainment Incorporated (Communication services, Entertainment) 144A
|
|
6.50
|
5-15-2027
|
|
205,000
|
226,525
|
Logan
Merger Sub Incorporated (Information technology, Software) 144A
|
|
5.50
|
9-1-2027
|
|
65,000
|
67,747
|
LPL
Holdings Incorporated (Financials, Diversified financial services)
|
|
4.63
|
11-15-2027
|
|
50,000
|
52,125
|
Macy's
Incorporated (Consumer discretionary, Multiline retail) 144A
|
|
8.38
|
6-15-2025
|
|
100,000
|
110,323
|
Magellan
Health Incorporated (Health care, Health care providers & services)
|
|
4.90
|
9-22-2024
|
|
75,000
|
81,750
|
Meritor
Incorporated (Industrials, Machinery) 144A
|
|
4.50
|
12-15-2028
|
|
135,000
|
136,688
|
Mileage
Plus Holdings LLC (Industrials, Airlines) 144A
|
|
6.50
|
6-20-2027
|
|
500,000
|
548,750
|
MPH
Acquisition Holdings LLC (Information technology, Software) 144A
|
|
5.75
|
11-1-2028
|
|
270,000
|
266,244
|
MPT
Operating Partnership LP (Health care, Health care providers & services)
|
|
4.63
|
8-1-2029
|
|
75,000
|
79,406
|
Murphy
Oil Corporation (Energy, Oil, gas & consumable fuels)
|
|
5.75
|
8-15-2025
|
|
30,000
|
30,684
|
Murphy
Oil Corporation (Energy, Oil, gas & consumable fuels)
|
|
5.88
|
12-1-2027
|
|
50,000
|
50,250
|
Murphy
Oil Corporation (Energy, Oil, gas & consumable fuels)
|
|
6.38
|
7-15-2028
|
|
120,000
|
121,800
|
NCL
Corporation Limited (Consumer discretionary, Hotels, restaurants & leisure) 144A
|
|
5.88
|
3-15-2026
|
|
135,000
|
141,075
|
NCL
Corporation Limited (Consumer discretionary, Hotels, restaurants & leisure) 144A
|
|
12.25
|
5-15-2024
|
|
245,000
|
298,849
|
NCR
Corporation (Information technology, Technology hardware, storage & peripherals) 144A
|
|
5.13
|
4-15-2029
|
|
45,000
|
46,294
|
NCR
Corporation (Information technology, Technology hardware, storage & peripherals) 144A
|
|
6.13
|
9-1-2029
|
|
175,000
|
190,313
|
NCR
Corporation (Information technology, Technology hardware, storage & peripherals) 144A
|
|
8.13
|
4-15-2025
|
|
25,000
|
27,250
|
New
Fortress Energy Incorporated (Energy, Oil, gas & consumable fuels) 144A
|
|
6.50
|
9-30-2026
|
|
275,000
|
280,591
|
Nexstar
Broadcasting Incorporated (Communication services, Media) 144A
|
|
4.75
|
11-1-2028
|
|
105,000
|
106,969
|
Nexstar
Broadcasting Incorporated (Communication services, Media) 144A
|
|
5.63
|
7-15-2027
|
|
425,000
|
448,906
|
NextEra
Energy Operating Partners LP (Utilities, Electric utilities) 144A
|
|
4.25
|
9-15-2024
|
|
2,000
|
2,113
|
NextEra
Energy Operating Partners LP (Utilities, Electric utilities) 144A
|
|
4.50
|
9-15-2027
|
|
250,000
|
269,880
|
Nielsen
Finance LLC (Communication services, Media) 144A
|
|
5.63
|
10-1-2028
|
|
105,000
|
111,956
|
Nielsen
Finance LLC (Communication services, Media) 144A
|
|
5.88
|
10-1-2030
|
|
775,000
|
848,625
|
The accompanying notes are an integral part of these financial
statements.
28 | Wells Fargo Global Dividend
Opportunity Fund
Portfolio of
investments—April 30, 2021 (unaudited)
|
|
Interest
rate
|
Maturity
date
|
|
Principal
|
Value
|
United
States: 17.35% (continued)
|
|
|
|
|
|
|
NMG
Holding Company Incorporated (Consumer discretionary, Specialty retail) 144A
|
|
7.13%
|
4-1-2026
|
$
|
145,000
|
$ 148,318
|
NortonLifeLock
Incorporated (Information technology, Software) 144A
|
|
5.00
|
4-15-2025
|
|
75,000
|
75,969
|
Novelis
Corporation (Materials, Metals & mining) 144A
|
|
5.88
|
9-30-2026
|
|
100,000
|
104,319
|
NSG
Holdings LLC (Utilities, Independent power & renewable electricity producers) 144A
|
|
7.75
|
12-15-2025
|
|
434,163
|
462,384
|
Occidental
Petroleum Corporation (Energy, Oil, gas & consumable fuels)
|
|
4.63
|
6-15-2045
|
|
375,000
|
339,375
|
Occidental
Petroleum Corporation (Energy, Oil, gas & consumable fuels)
|
|
6.20
|
3-15-2040
|
|
125,000
|
132,813
|
Occidental
Petroleum Corporation (Energy, Oil, gas & consumable fuels)
|
|
6.45
|
9-15-2036
|
|
775,000
|
880,594
|
Occidental
Petroleum Corporation (Energy, Oil, gas & consumable fuels)
|
|
6.60
|
3-15-2046
|
|
75,000
|
82,688
|
Oceaneering
International Incorporated (Energy, Energy equipment & services)
|
|
4.65
|
11-15-2024
|
|
25,000
|
24,406
|
Oceaneering
International Incorporated (Energy, Energy equipment & services)
|
|
6.00
|
2-1-2028
|
|
275,000
|
268,730
|
Oppenheimer
Holdings Incorporated (Financials, Capital markets)
|
|
5.50
|
10-1-2025
|
|
265,000
|
274,938
|
Ortho-Clinical
Diagnostics Incorporated (Health care, Life sciences tools & services) 144A
|
|
7.25
|
2-1-2028
|
|
30,000
|
32,910
|
Ortho-Clinical
Diagnostics Incorporated (Health care, Life sciences tools & services) 144A
|
|
7.38
|
6-1-2025
|
|
90,000
|
96,975
|
Outfront
Media Capital Corporation (Communication services, Media) 144A
|
|
4.63
|
3-15-2030
|
|
200,000
|
198,000
|
Outfront
Media Capital Corporation (Communication services, Media) 144A
|
|
5.00
|
8-15-2027
|
|
75,000
|
77,344
|
Owens-Brockway
Packaging Incorporated (Materials, Containers & packaging) 144A
|
|
5.88
|
8-15-2023
|
|
100,000
|
108,250
|
Pattern
Energy Operations LP (Energy, Energy equipment & services) 144A
|
|
4.50
|
8-15-2028
|
|
525,000
|
531,563
|
PetSmart
Incorporated (Consumer staples, Food & staples retailing) 144A
|
|
4.75
|
2-15-2028
|
|
40,000
|
41,250
|
PetSmart
Incorporated (Consumer staples, Food & staples retailing) 144A
|
|
7.75
|
2-15-2029
|
|
40,000
|
43,339
|
PG&E
Corporation (Utilities, Electric utilities)
|
|
5.00
|
7-1-2028
|
|
25,000
|
26,188
|
PG&E
Corporation (Utilities, Electric utilities)
|
|
5.25
|
7-1-2030
|
|
150,000
|
160,125
|
Plastipak
Holdings Incorporated (Industrials, Commercial services & supplies) 144A
|
|
6.25
|
10-15-2025
|
|
225,000
|
231,188
|
Primo
Water Holdings Incorporated (Consumer staples, Beverages) 144A
|
|
5.50
|
4-1-2025
|
|
75,000
|
77,079
|
QORVO
Incorporated (Information technology, Semiconductors & semiconductor equipment)
|
|
4.38
|
10-15-2029
|
|
50,000
|
54,339
|
QVC
Incorporated (Communication services, Media)
|
|
4.75
|
2-15-2027
|
|
25,000
|
26,375
|
Rackspace
Technology Company (Communication services, Interactive media & services) 144A
|
|
5.38
|
12-1-2028
|
|
200,000
|
204,176
|
Range
Resources Corporation (Energy, Oil, gas & consumable fuels) 144A
|
|
8.25
|
1-15-2029
|
|
45,000
|
48,815
|
Range
Resources Corporation (Energy, Oil, gas & consumable fuels)
|
|
9.25
|
2-1-2026
|
|
250,000
|
274,520
|
RBS
Global & Rexnord LLC (Industrials, Aerospace & defense) 144A
|
|
4.88
|
12-15-2025
|
|
450,000
|
460,031
|
Rent-A-Center
Incorporated (Consumer discretionary, Specialty retail) 144A
|
|
6.38
|
2-15-2029
|
|
40,000
|
43,379
|
The accompanying notes are an integral part of these financial
statements.
Wells Fargo Global Dividend Opportunity
Fund | 29
Portfolio of
investments—April 30, 2021 (unaudited)
|
|
Interest
rate
|
Maturity
date
|
|
Principal
|
Value
|
United
States: 17.35% (continued)
|
|
|
|
|
|
|
Rockies
Express Pipeline LLC (Energy, Oil, gas & consumable fuels) 144A
|
|
6.88%
|
4-15-2040
|
$
|
250,000
|
$ 268,438
|
Royal
Caribbean Cruises Limited (Consumer discretionary, Hotels, restaurants & leisure) 144A
|
|
5.50
|
4-1-2028
|
|
235,000
|
246,445
|
Royal
Caribbean Cruises Limited (Consumer discretionary, Hotels, restaurants & leisure) 144A
|
|
9.13
|
6-15-2023
|
|
275,000
|
303,589
|
Royal
Caribbean Cruises Limited (Consumer discretionary, Hotels, restaurants & leisure) 144A
|
|
10.88
|
6-1-2023
|
|
125,000
|
143,500
|
Sabre
GLBL Incorporated (Information technology, IT services) 144A
|
|
9.25
|
4-15-2025
|
|
115,000
|
137,425
|
Salem
Media Group Incorporated (Communication services, Media) 144A
|
|
6.75
|
6-1-2024
|
|
500,000
|
493,750
|
Scripps
Escrow II Incorporated (Communication services, Media) 144A
|
|
5.38
|
1-15-2031
|
|
170,000
|
172,338
|
Scripps
Escrow II Incorporated (Communication services, Media) 144A
|
|
5.88
|
7-15-2027
|
|
25,000
|
26,306
|
Scripps
Escrow II Incorporated (Communication services, Media) 144A
|
|
3.88
|
1-15-2029
|
|
40,000
|
39,753
|
Select
Medical Corporation (Health care, Health care providers & services) 144A
|
|
6.25
|
8-15-2026
|
|
200,000
|
212,647
|
Sensata
Technologies BV (Industrials, Electrical equipment) 144A
|
|
4.00
|
4-15-2029
|
|
85,000
|
85,527
|
Service
Corporation International (Consumer discretionary, Diversified consumer services)
|
|
7.50
|
4-1-2027
|
|
25,000
|
30,188
|
Service
Corporation International (Consumer discretionary, Diversified consumer services)
|
|
8.00
|
11-15-2021
|
|
500,000
|
518,125
|
Service
Properties Trust Company (Real estate, Equity REITs)
|
|
3.95
|
1-15-2028
|
|
105,000
|
97,125
|
Service
Properties Trust Company (Real estate, Equity REITs)
|
|
4.38
|
2-15-2030
|
|
125,000
|
116,250
|
Service
Properties Trust Company (Real estate, Equity REITs)
|
|
4.75
|
10-1-2026
|
|
50,000
|
48,750
|
Service
Properties Trust Company (Real estate, Equity REITs)
|
|
4.95
|
2-15-2027
|
|
150,000
|
147,380
|
Service
Properties Trust Company (Real estate, Equity REITs)
|
|
5.25
|
2-15-2026
|
|
83,000
|
83,118
|
Service
Properties Trust Company (Real estate, Equity REITs)
|
|
7.50
|
9-15-2025
|
|
70,000
|
79,339
|
Signature
Aviation US Holdings Incorporated (Industrials, Aerospace & defense) 144A
|
|
4.00
|
3-1-2028
|
|
125,000
|
125,938
|
Signature
Aviation US Holdings Incorporated (Industrials, Aerospace & defense) 144A
|
|
5.38
|
5-1-2026
|
|
425,000
|
434,554
|
Southwestern
Energy Company (Energy, Oil, gas & consumable fuels)
|
|
7.50
|
4-1-2026
|
|
50,000
|
52,885
|
Southwestern
Energy Company (Energy, Oil, gas & consumable fuels)
|
|
7.75
|
10-1-2027
|
|
200,000
|
214,986
|
Southwestern
Energy Company (Energy, Oil, gas & consumable fuels)
|
|
8.38
|
9-15-2028
|
|
125,000
|
137,340
|
Spirit
AeroSystems Holdings Incorporated (Industrials, Aerospace & defense)
|
|
4.60
|
6-15-2028
|
|
135,000
|
131,963
|
Spirit
AeroSystems Holdings Incorporated (Industrials, Aerospace & defense) 144A
|
|
5.50
|
1-15-2025
|
|
70,000
|
74,025
|
Springleaf
Finance Corporation (Financials, Consumer finance)
|
|
5.38
|
11-15-2029
|
|
150,000
|
161,777
|
Springleaf
Finance Corporation (Financials, Consumer finance)
|
|
6.63
|
1-15-2028
|
|
25,000
|
28,438
|
Springleaf
Finance Corporation (Financials, Consumer finance)
|
|
7.13
|
3-15-2026
|
|
175,000
|
204,531
|
Springleaf
Finance Corporation (Financials, Consumer finance)
|
|
8.25
|
10-1-2023
|
|
100,000
|
113,125
|
Sprint
Capital Corporation (Communication services, Wireless telecommunication services)
|
|
8.75
|
3-15-2032
|
|
175,000
|
259,438
|
The accompanying notes are an integral part of these financial
statements.
30 | Wells Fargo Global Dividend
Opportunity Fund
Portfolio of
investments—April 30, 2021 (unaudited)
|
|
Interest
rate
|
Maturity
date
|
|
Principal
|
Value
|
United
States: 17.35% (continued)
|
|
|
|
|
|
|
SS&C
Technologies Incorporated (Information technology, Software) 144A
|
|
5.50%
|
9-30-2027
|
$
|
175,000
|
$ 185,916
|
Starwood
Property Trust Incorporated (Financials, Mortgage REITs)
|
|
4.75
|
3-15-2025
|
|
165,000
|
171,811
|
Starwood
Property Trust Incorporated (Financials, Mortgage REITs)
|
|
5.00
|
12-15-2021
|
|
85,000
|
85,808
|
Starwood
Property Trust Incorporated (Financials, Mortgage REITs) 144A
|
|
5.50
|
11-1-2023
|
|
145,000
|
152,250
|
Stevens
Holding Company Incorporated (Industrials, Machinery) 144A
|
|
6.13
|
10-1-2026
|
|
375,000
|
403,125
|
Surgery
Center Holdings Incorporated (Health care, Health care equipment & supplies) 144A
|
|
6.75
|
7-1-2025
|
|
205,000
|
207,819
|
Tallgrass
Energy Partners LP (Energy, Oil, gas & consumable fuels) 144A
|
|
5.50
|
9-15-2024
|
|
227,000
|
231,256
|
Tallgrass
Energy Partners LP (Energy, Oil, gas & consumable fuels) 144A
|
|
6.00
|
12-31-2030
|
|
252,000
|
252,630
|
Tenet
Healthcare Corporation (Health care, Health care providers & services) 144A
|
|
4.63
|
6-15-2028
|
|
25,000
|
25,831
|
Tenet
Healthcare Corporation (Health care, Health care providers & services) 144A
|
|
4.88
|
1-1-2026
|
|
150,000
|
155,850
|
Tenet
Healthcare Corporation (Health care, Health care providers & services) 144A
|
|
5.13
|
11-1-2027
|
|
25,000
|
26,220
|
Tenet
Healthcare Corporation (Health care, Health care providers & services) 144A
|
|
6.25
|
2-1-2027
|
|
125,000
|
131,094
|
Tenet
Healthcare Corporation (Health care, Health care providers & services) 144A
|
|
7.50
|
4-1-2025
|
|
25,000
|
26,938
|
Tenneco
Incorporated (Consumer discretionary, Auto components)
|
|
5.00
|
7-15-2026
|
|
10,000
|
9,686
|
TerraForm
Power Operating LLC (Utilities, Independent power & renewable electricity producers) 144A
|
|
4.75
|
1-15-2030
|
|
75,000
|
78,094
|
TerraForm
Power Operating LLC (Utilities, Independent power & renewable electricity producers) 144A
|
|
5.00
|
1-31-2028
|
|
550,000
|
589,875
|
The
E.W. Scripps Company (Communication services, Media) 144A
|
|
5.13
|
5-15-2025
|
|
387,000
|
397,174
|
The
Geo Group Incorporated (Real estate, Equity REITs)
|
|
5.88
|
10-15-2024
|
|
375,000
|
301,144
|
The
William Carter Company (Consumer discretionary, Textiles, apparel & luxury goods) 144A
|
|
5.50
|
5-15-2025
|
|
25,000
|
26,421
|
The
William Carter Company (Consumer discretionary, Textiles, apparel & luxury goods) 144A
|
|
5.63
|
3-15-2027
|
|
100,000
|
105,125
|
Townsquare
Media Incorporated (Communication services, Media) 144A
|
|
6.88
|
2-1-2026
|
|
315,000
|
328,388
|
TransDigm
Incorporated (Industrials, Aerospace & defense) 144A
|
|
6.25
|
3-15-2026
|
|
100,000
|
105,875
|
Uber
Technologies Incorporated (Industrials, Road & rail) 144A
|
|
8.00
|
11-1-2026
|
|
355,000
|
384,181
|
United
Airlines Incorporated (Industrials, Airlines) 144A
|
|
4.63
|
4-15-2029
|
|
225,000
|
233,820
|
United
Airlines Pass-Through Trust Certificates Series 2020-1 Class B (Industrials, Airlines)
|
|
4.88
|
7-15-2027
|
|
92,198
|
96,282
|
United
Shore Financial Services LLC (Financials, Diversified financial services) 144A
|
|
5.50
|
11-15-2025
|
|
133,000
|
138,154
|
United
Wholesale Mortgage LLC (Financials, Thrifts & mortgage finance) 144A
|
|
5.50
|
4-15-2029
|
|
280,000
|
275,178
|
USA
Compression Partners LP (Energy, Energy equipment & services)
|
|
6.88
|
4-1-2026
|
|
175,000
|
183,521
|
USI
Incorporated (Financials, Insurance) 144A
|
|
6.88
|
5-1-2025
|
|
125,000
|
127,031
|
The accompanying notes are an integral part of these financial
statements.
Wells Fargo Global Dividend Opportunity
Fund | 31
Portfolio of
investments—April 30, 2021 (unaudited)
|
|
Interest
rate
|
Maturity
date
|
|
Principal
|
Value
|
United
States: 17.35% (continued)
|
|
|
|
|
|
|
Vertical
US Newco Incorporated (Materials, Paper & forest products) 144A
|
|
5.25%
|
7-15-2027
|
$
|
300,000
|
$
314,064
|
Vistra
Operations Company LLC (Utilities, Independent power & renewable electricity producers) 144A
|
|
5.63
|
2-15-2027
|
|
140,000
|
145,600
|
Vizient
Incorporated (Health care, Health care providers & services) 144A
|
|
6.25
|
5-15-2027
|
|
275,000
|
291,291
|
WASH
Multifamily Acquisition Incorporated (Consumer discretionary, Household durables) 144A
|
|
5.75
|
4-15-2026
|
|
220,000
|
228,525
|
Werner
FinCo LP (Industrials, Machinery) 144A
|
|
8.75
|
7-15-2025
|
|
225,000
|
237,094
|
Western
Midstream Operating LP (Energy, Oil, gas & consumable fuels)
|
|
5.30
|
2-1-2030
|
|
150,000
|
163,688
|
Western
Midstream Operating LP (Energy, Oil, gas & consumable fuels)
|
|
5.30
|
3-1-2048
|
|
275,000
|
281,878
|
Western
Midstream Operating LP (Energy, Oil, gas & consumable fuels)
|
|
6.50
|
2-1-2050
|
|
25,000
|
28,287
|
Windstream
Corporation (Communication services, Diversified telecommunication services) 144A
|
|
7.75
|
8-15-2028
|
|
125,000
|
130,313
|
Yum!
Brands Incorporated (Consumer discretionary, Hotels, restaurants & leisure) 144A
|
|
7.75
|
4-1-2025
|
|
25,000
|
27,313
|
Total
Corporate bonds and notes (Cost $41,942,748)
|
|
|
|
|
|
44,681,338
|
Loans:
2.01%
|
|
|
|
|
|
|
AL
NGPL Holdings LLC (1 Month LIBOR +3.75%) (Energy, Oil, gas & consumable fuels)
‡<±%%
|
|
4.75
|
4-9-2028
|
|
140,000
|
139,913
|
Alliance
Laundry Systems LLC (1 Month LIBOR +3.50%) (Industrials, Machinery) ±
|
|
4.25
|
10-8-2027
|
|
49,875
|
49,839
|
Carnival
Corporation (1 Month LIBOR +7.50%) (Consumer discretionary, Hotels, restaurants & leisure) ±
|
|
8.50
|
6-30-2025
|
|
39,700
|
40,841
|
CCM
Merger Incorporated (1 Month LIBOR +3.75%) (Consumer discretionary, Hotels, restaurants & leisure) ±
|
|
4.50
|
11-4-2025
|
|
49,818
|
49,850
|
Clear
Channel Outdoor Holdings (1 Month LIBOR +3.50%) (Communication services, Media) ±
|
|
3.69
|
8-21-2026
|
|
184,532
|
178,586
|
Clearwater
Paper Corporation (1 Month LIBOR +3.00%) (Materials, Paper & forest products) ‡±
|
|
3.13
|
7-26-2026
|
|
21,542
|
21,542
|
Consolidated
Communications Holdings Incorporated (1 Month LIBOR +3.50%) (Communication services, Wireless telecommunication services) ±
|
|
4.25
|
10-2-2027
|
|
76,000
|
75,810
|
Emerald
Topco Incorporated (1 Month LIBOR +3.50%) (Information technology, Software) ±
|
|
3.61
|
7-24-2026
|
|
172,375
|
170,694
|
ExGen
Renewables IV LLC (1 Month LIBOR +2.75%) (Utilities, Electric utilities) ±
|
|
3.75
|
12-15-2027
|
|
259,350
|
259,285
|
Fiserv
Investment Solutions Incorporated (1 Month LIBOR +4.00%) (Information technology, IT services) ±
|
|
4.19
|
2-18-2027
|
|
59,575
|
59,600
|
Flex
Acquisition Company Incorporated (1 Month LIBOR +3.50%) (Materials, Containers & packaging) ±
|
|
4.00
|
2-23-2028
|
|
124,000
|
122,588
|
Flexential
Intermediate Corporation (3 Month LIBOR +3.50%) (Information technology, IT services) ±
|
|
3.70
|
8-1-2024
|
|
39,590
|
36,727
|
Flexential
Intermediate Corporation (3 Month LIBOR +7.25%) (Information technology, IT services) ±
|
|
7.43
|
8-1-2025
|
|
250,000
|
215,990
|
Frontier
Communications Corporation (1 Month LIBOR +3.75%) (Communication services, Diversified telecommunication services) <±%%
|
|
4.25
|
10-8-2027
|
|
18,889
|
18,810
|
Frontier
Communications Corporation (1 Month LIBOR +3.75%) (Communication services, Diversified telecommunication services) ±
|
|
4.50
|
10-8-2027
|
|
21,111
|
21,023
|
The accompanying notes are an integral part of these financial
statements.
32 | Wells Fargo Global Dividend
Opportunity Fund
Portfolio of
investments—April 30, 2021 (unaudited)
|
|
Interest
rate
|
Maturity
date
|
|
Principal
|
Value
|
Loans
(continued)
|
|
|
|
|
|
|
HUB
International Limited (1 Month LIBOR +3.25%) (Financials, Insurance) ±
|
|
4.00%
|
4-25-2025
|
$
|
118,703
|
$ 118,517
|
Hubbard
Radio LLC (3 Month LIBOR +4.25%) (Communication services, Media) ±
|
|
5.25
|
3-28-2025
|
|
195,550
|
192,944
|
I-Logic
Technologies Bidco Limited (1 Month LIBOR +4.00%) (Information technology, Software) ±
|
|
4.50
|
2-16-2028
|
|
85,000
|
85,000
|
JetBlue
Airways Corporation (1 Month LIBOR +5.25%) (Industrials, Airlines) <±%%
|
|
6.25
|
6-17-2024
|
|
227,051
|
232,889
|
Mallinckrodt
International Finance SA (3 Month LIBOR +4.75%) (Financials, Diversified financial services) <±%%
|
|
3.50
|
9-24-2024
|
|
280,593
|
272,352
|
Medrisk
Incorporated (1 Month LIBOR +3.75%) (Health care, Health care providers & services) <±%%
|
|
4.50
|
4-1-2028
|
|
60,000
|
59,675
|
Mileage
Plus Holdings LLC (1 Month LIBOR +5.25%) (Industrials, Airlines) ±
|
|
6.25
|
6-21-2027
|
|
295,000
|
314,597
|
National
Mentor Holdings Incorporated (1 Month LIBOR +3.75%) (Health care, Health care providers & services) ±
|
|
1.88
|
3-2-2028
|
|
16,356
|
16,328
|
National
Mentor Holdings Incorporated (1 Month LIBOR +3.75%) (Health care, Health care providers & services) ±
|
|
4.50
|
2-18-2028
|
|
148,688
|
148,440
|
National
Mentor Holdings Incorporated (1 Month LIBOR +3.75%) (Health care, Health care providers & services) ±
|
|
4.50
|
2-18-2028
|
|
4,956
|
4,948
|
Nexus
Buyer LLC (1 Month LIBOR +3.75%) (Financials, Capital markets) <±
|
|
3.86
|
11-9-2026
|
|
113,712
|
113,120
|
PetSmart
Incorporated (1 Month LIBOR +3.75%) (Consumer staples, Food & staples retailing) ±
|
|
4.50
|
2-12-2028
|
|
90,000
|
90,180
|
Project
Ruby Ultimate Parent Corporation (1 Month LIBOR +3.25%) (Health care, Health care technology) ±
|
|
4.00
|
3-3-2028
|
|
115,000
|
114,138
|
Rent-A-Center
Incorporated (3 Month LIBOR +4.00%) (Consumer discretionary, Specialty retail) ±
|
|
4.75
|
2-17-2028
|
|
105,000
|
105,612
|
Resolute
Investment Managers Incorporated (1 Month LIBOR +3.75%) (Financials, Diversified financial services) ‡<±
|
|
4.75
|
4-30-2024
|
|
44,877
|
44,821
|
Resolute
Investment Managers Incorporated (1 Month LIBOR +8.00%) (Financials, Diversified financial services) ‡±
|
|
9.00
|
4-30-2025
|
|
175,000
|
174,125
|
Reynolds
Group Holdings Incorporated (1 Month LIBOR +3.25%) (Materials, Containers & packaging) ±
|
|
2.86
|
2-5-2023
|
|
37,188
|
37,090
|
Russell
Investments US Institutional Holdco Incorporated (1 Month LIBOR +3.00%) (Financials, Diversified financial services) <±%%
|
|
4.00
|
5-30-2025
|
|
210,000
|
207,638
|
Sabre
GLBL Incorporated (1 Month LIBOR +4.00%) (Information technology, IT services) <±
|
|
4.75
|
12-17-2027
|
|
159,600
|
160,823
|
Spin
Holdco Incorporated (1 Month LIBOR +4.00%) (Consumer discretionary, Distributors) <±%%
|
|
4.75
|
3-1-2028
|
|
45,000
|
44,789
|
Stonepeak
Lonestar Holdings LLC (1 Month LIBOR +4.50%) (Financials, Diversified financial services) ±
|
|
4.69
|
10-19-2026
|
|
168,648
|
168,767
|
Surgery
Center Holdings Incorporated (3 Month LIBOR +3.25%) (Health care, Health care equipment & supplies) ±
|
|
4.25
|
9-3-2024
|
|
169,561
|
168,845
|
The
Dun & Bradstreet Corporation (1 Month LIBOR +3.25%) (Industrials, Professional services) ±
|
|
3.36
|
2-6-2026
|
|
124,374
|
123,635
|
Uber
Technologies Incorporated (1 Month LIBOR +3.50%) (Industrials, Road & rail) ±
|
|
3.61
|
4-4-2025
|
|
109,718
|
109,561
|
The accompanying notes are an integral part of these financial
statements.
Wells Fargo Global Dividend Opportunity
Fund | 33
Portfolio of
investments—April 30, 2021 (unaudited)
|
|
Interest
rate
|
Maturity
date
|
|
Principal
|
Value
|
Loans
(continued)
|
|
|
|
|
|
|
United
Airlines Incorporated (3 Month LIBOR +3.75%) (Industrials, Airlines) <±%%
|
|
4.50%
|
4-13-2028
|
$
|
70,000
|
$
70,775
|
USI
Incorporated (1 Month LIBOR +3.25%) (Financials, Insurance) <±
|
|
3.45
|
12-2-2026
|
|
54,363
|
53,829
|
Vertical
US Newco Incorporated (1 Month LIBOR +4.25%) (Materials, Paper & forest products) ±
|
|
4.48
|
7-30-2027
|
|
129,351
|
129,513
|
VFH
Parent LLC (1 Month LIBOR +3.00%) (Financials, Capital markets) ±
|
|
3.12
|
3-1-2026
|
|
105,540
|
105,254
|
Werner
Finco LP (3 Month LIBOR +4.00%) (Industrials, Industrial conglomerates) ‡±
|
|
5.00
|
7-24-2024
|
|
209,457
|
208,410
|
WestJet
Airlines Limited (3 Month LIBOR +3.00%) (Industrials, Airlines) ±
|
|
4.00
|
12-11-2026
|
|
39,899
|
38,540
|
Total
Loans (Cost $5,081,621)
|
|
|
|
|
|
5,176,253
|
|
|
Dividend
yield
|
|
|
Shares
|
|
Preferred
stocks: 0.19%
|
|
|
|
|
|
|
United
States: 0.19%
|
|
|
|
|
|
|
CoBank
ACB (3 Month LIBOR +1.18%) (Financials, Banks) 144A†±
|
|
2.03
|
|
|
750
|
495,000
|
Total
Preferred stocks (Cost $495,000)
|
|
|
|
|
|
495,000
|
|
|
|
Expiration
date
|
|
|
|
Warrants:
0.03%
|
|
|
|
|
|
|
United
States: 0.03%
|
|
|
|
|
|
|
Denbury
Incorporated (Energy, Oil, gas & consumable fuels)†
|
|
|
9-18-2025
|
|
2,542
|
69,117
|
Total
Warrants (Cost $41,029)
|
|
|
|
|
|
69,117
|
|
|
Interest
rate
|
Maturity
date
|
|
Principal
|
|
Yankee
corporate bonds and notes: 1.71%
|
|
|
|
|
|
|
Canada:
1.04%
|
|
|
|
|
|
|
Bausch
Health Companies Incorporated (Health care, Pharmaceuticals) 144A
|
|
5.25
|
1-30-2030
|
$
|
150,000
|
150,750
|
Bausch
Health Companies Incorporated (Health care, Pharmaceuticals) 144A
|
|
5.50
|
11-1-2025
|
|
75,000
|
77,344
|
Bausch
Health Companies Incorporated (Health care, Pharmaceuticals) 144A
|
|
6.13
|
4-15-2025
|
|
250,000
|
255,258
|
Bausch
Health Companies Incorporated (Health care, Pharmaceuticals) 144A
|
|
7.00
|
1-15-2028
|
|
25,000
|
27,188
|
Bausch
Health Companies Incorporated (Health care, Pharmaceuticals) 144A
|
|
7.25
|
5-30-2029
|
|
150,000
|
166,214
|
Bausch
Health Companies Incorporated (Health care, Pharmaceuticals) 144A
|
|
8.50
|
1-31-2027
|
|
50,000
|
55,688
|
Baytex
Energy Corporation (Energy, Oil, gas & consumable fuels)
|
|
5.63
|
6-1-2024
|
|
240,000
|
224,400
|
Baytex
Energy Corporation (Energy, Oil, gas & consumable fuels) 144A
|
|
8.75
|
4-1-2027
|
|
325,000
|
300,625
|
Bombardier
Incorporated (Industrials, Aerospace & defense)
|
|
7.88
|
4-15-2027
|
|
350,000
|
349,125
|
The accompanying notes are an integral part of these financial
statements.
34 | Wells Fargo Global Dividend
Opportunity Fund
Portfolio of
investments—April 30, 2021 (unaudited)
|
|
Interest
rate
|
Maturity
date
|
|
Principal
|
Value
|
Canada:
1.04% (continued)
|
|
|
|
|
|
|
Northriver
Midstream Finance LP (Energy, Oil, gas & consumable fuels) 144A
|
|
5.63%
|
2-15-2026
|
$
|
275,000
|
$
283,594
|
Ritchie
Brothers Auctioneers Incorporated (Industrials, Commercial services & supplies) 144A
|
|
5.38
|
1-15-2025
|
|
675,000
|
694,575
|
Telesat
Canada (Communication services, Wireless telecommunication services) 144A
|
|
5.63
|
12-6-2026
|
|
85,000
|
85,425
|
|
|
|
|
|
|
2,670,186
|
Ireland:
0.17%
|
|
|
|
|
|
|
Ardagh
Packaging Finance plc (Materials, Containers & packaging) 144A
|
|
5.25
|
4-30-2025
|
|
25,000
|
26,219
|
FLY
Leasing Limited (Industrials, Trading companies & distributors)
|
|
5.25
|
10-15-2024
|
|
415,000
|
423,300
|
|
|
|
|
|
|
449,519
|
Luxembourg:
0.17%
|
|
|
|
|
|
|
Endo
Luxembourg Finance I Company SARL (Health care, Pharmaceuticals) 144A
|
|
6.13
|
4-1-2029
|
|
35,000
|
34,650
|
Intelsat
Jackson Holdings SA (Communication services, Diversified telecommunication services) †
|
|
5.50
|
8-1-2023
|
|
650,000
|
397,725
|
|
|
|
|
|
|
432,375
|
Monaco:
0.05%
|
|
|
|
|
|
|
Navios
Maritime Holdings Incorporated (Industrials, Transportation infrastructure) ♦‡
|
|
9.75
|
4-15-2024
|
|
244,225
|
119,804
|
Netherlands:
0.28%
|
|
|
|
|
|
|
OI
European Group BV (Materials, Containers & packaging) 144A
|
|
4.00
|
3-15-2023
|
|
75,000
|
77,063
|
Sensata
Technologies BV (Industrials, Electrical equipment) 144A
|
|
5.00
|
10-1-2025
|
|
97,000
|
107,670
|
Sensata
Technologies BV (Industrials, Electrical equipment) 144A
|
|
5.63
|
11-1-2024
|
|
100,000
|
111,500
|
Teva
Pharmaceutical Finance Netherlands III BV (Health care, Pharmaceuticals)
|
|
6.75
|
3-1-2028
|
|
400,000
|
436,000
|
|
|
|
|
|
|
732,233
|
Total
Yankee corporate bonds and notes (Cost $4,511,058)
|
|
|
|
|
|
4,404,117
|
|
|
Yield
|
|
|
Shares
|
|
Short-term
investments: 2.21%
|
|
|
|
|
|
|
Investment
companies: 2.21%
|
|
|
|
|
|
|
Wells
Fargo Government Money Market Fund Select Class ♠∞##
|
|
0.03
|
|
|
5,700,004
|
5,700,004
|
Total
Short-term investments (Cost $5,700,004)
|
|
|
|
|
|
5,700,004
|
Total
investments in securities (Cost $252,744,575)
|
118.69%
|
|
|
|
|
305,775,034
|
Other
assets and liabilities, net
|
(18.69)
|
|
|
|
|
(48,141,254)
|
Total
net assets
|
100.00%
|
|
|
|
|
$257,633,780
|
The
accompanying notes are an integral part of these financial statements.
Wells
Fargo Global Dividend Opportunity Fund | 35
Portfolio of
investments—April 30, 2021 (unaudited)
†
|
Non-income-earning
security
|
144A
|
The
security may be resold in transactions exempt from registration, normally to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933.
|
♦
|
The
security is fair valued in accordance with procedures approved by the Board of Trustees.
|
‡
|
Security
is valued using significant unobservable inputs.
|
<
|
All or a
portion of the position represents an unfunded loan commitment. The rate represents current interest rate if the loan is partially funded.
|
±
|
Variable
rate investment. The rate shown is the rate in effect at period end.
|
##
|
All or a
portion of this security is segregated for when-issued and unfunded loans.
|
♠
|
The
issuer of the security is an affiliate of the Fund as defined in the Investment Company Act of 1940.
|
∞
|
The rate
represents the 7-day annualized yield at period end.
|
#
|
All or a
portion of this security is segregated as collateral for investments in derivative instruments.
|
%%
|
The
security is purchased on a when-issued basis.
|
Abbreviations:
|
ADR
|
American
depositary receipt
|
GDR
|
Global
depositary receipt
|
LIBOR
|
London
Interbank Offered Rate
|
REIT
|
Real
estate investment trust
|
Investments in affiliates
An
affiliated investment is an investment in which the Fund owns at least 5% of the outstanding voting shares of the issuer or as a result of other relationships, such as the Fund and the issuer having the same adviser or investment manager.
Transactions with issuers that were either affiliates of the Fund at the beginning of the period or the end of the period were as follows:
|
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
|
$3,940,442
|
$57,198,073
|
$(55,438,511)
|
$0
|
$0
|
$5,700,004
|
2.21%
|
5,700,004
|
$481
|
Written options
Description
|
Counterparty
|
Number
of
contracts
|
Notional
amount
|
Exercise
price
|
Expiration
date
|
Value
|
Call
|
|
|
|
|
|
|
Dow
Jones Industrial Average
|
Morgan
Stanley Company Incorporated
|
(18)
|
$
(621,000)
|
$
345.00
|
5-21-2021
|
$
(2,817)
|
Dow
Jones Industrial Average
|
Morgan
Stanley Company Incorporated
|
(227)
|
(8,058,500)
|
355.00
|
5-21-2021
|
(3,973)
|
Dow
Jones Industrial Average
|
Morgan
Stanley Company Incorporated
|
(654)
|
(23,544,000)
|
360.00
|
6-18-2021
|
(40,875)
|
iShares
MSCI EAFE ETF
|
Morgan
Stanley Company Incorporated
|
(72)
|
(5,436,000)
|
75.50
|
5-7-2021
|
(21,780)
|
iShares
MSCI EAFE ETF
|
Morgan
Stanley Company Incorporated
|
(2,600)
|
(21,840,000)
|
84.00
|
6-18-2021
|
(18,200)
|
iShares
MSCI EAFE ETF
|
Morgan
Stanley Company Incorporated
|
(791)
|
(5,695,200)
|
72.00
|
6-18-2021
|
(500,308)
|
iShares
MSCI EAFE ETF
|
Morgan
Stanley Company Incorporated
|
(635)
|
(4,762,500)
|
75.00
|
6-18-2021
|
(234,950)
|
iShares
MSCI EAFE ETF
|
Morgan
Stanley Company Incorporated
|
(160)
|
(1,232,000)
|
77.00
|
6-18-2021
|
(28,080)
|
iShares
MSCI EAFE ETF
|
Morgan
Stanley Company Incorporated
|
(108)
|
(799,200)
|
74.00
|
7-16-2021
|
(51,570)
|
The accompanying notes are an integral part of these financial
statements.
36 | Wells Fargo Global Dividend
Opportunity Fund
Portfolio of
investments—April 30, 2021 (unaudited)
Written options (continued)
Description
|
Counterparty
|
Number
of
contracts
|
Notional
amount
|
Exercise
price
|
Expiration
date
|
Value
|
Call
(continued)
|
|
|
|
|
|
|
iShares
MSCI Emerging Markets ETF
|
Morgan
Stanley Company Incorporated
|
(513)
|
$
(2,949,750)
|
$
57.50
|
5-7-2021
|
$
(49)
|
iShares
MSCI Emerging Markets ETF
|
Morgan
Stanley Company Incorporated
|
(1,036)
|
(6,008,800)
|
58.00
|
5-14-2021
|
(793)
|
iShares
MSCI Emerging Markets ETF
|
Morgan
Stanley Company Incorporated
|
(1,102)
|
(6,391,600)
|
58.00
|
5-21-2021
|
(4,959)
|
iShares
MSCI Emerging Markets ETF
|
Morgan
Stanley Company Incorporated
|
(523)
|
(2,981,100)
|
57.00
|
5-28-2021
|
(6,538)
|
iShares
MSCI Emerging Markets ETF
|
Morgan
Stanley Company Incorporated
|
(122)
|
(12,248)
|
48.00
|
6-18-2021
|
(76,555)
|
iShares
MSCI Emerging Markets ETF
|
Morgan
Stanley Company Incorporated
|
(129)
|
(632,100)
|
49.00
|
6-18-2021
|
(67,403)
|
iShares
MSCI Emerging Markets ETF
|
Morgan
Stanley Company Incorporated
|
(120)
|
(600,000)
|
50.00
|
6-18-2021
|
(51,900)
|
Russell
2000 Index
|
Morgan
Stanley Company Incorporated
|
(1)
|
(213,000)
|
2,130.00
|
5-21-2021
|
(15,080)
|
S&P
500 Index
|
Morgan
Stanley Company Incorporated
|
(3)
|
(1,107,000)
|
3,690.00
|
4-30-2021
|
(147,351)
|
S&P
500 Index
|
Morgan
Stanley Company Incorporated
|
(1)
|
(361,500)
|
3,615.00
|
4-30-2021
|
(56,617)
|
S&P
500 Index
|
Morgan
Stanley Company Incorporated
|
(7)
|
(2,705,500)
|
3,865.00
|
4-30-2021
|
(221,319)
|
S&P
500 Index
|
Morgan
Stanley Company Incorporated
|
(44)
|
(18,612,000)
|
4,230.00
|
4-30-2021
|
0
|
S&P
500 Index
|
Morgan
Stanley Company Incorporated
|
(3)
|
(1,189,500)
|
3,965.00
|
5-7-2021
|
(67,305)
|
S&P
500 Index
|
Morgan
Stanley Company Incorporated
|
(11)
|
(4,757,500)
|
4,325.00
|
5-7-2021
|
(220)
|
S&P
500 Index
|
Morgan
Stanley Company Incorporated
|
(23)
|
(10,062,500)
|
4,375.00
|
5-14-2021
|
(1,265)
|
S&P
500 Index
|
Morgan
Stanley Company Incorporated
|
(4)
|
(1,756,000)
|
4,390.00
|
5-21-2021
|
(600)
|
S&P
500 Index
|
Morgan
Stanley Company Incorporated
|
(1)
|
(430,000)
|
4,300.00
|
5-28-2021
|
(1,580)
|
S&P
500 Index
|
Morgan
Stanley Company Incorporated
|
(5)
|
(2,027,500)
|
4,055.00
|
5-28-2021
|
(81,850)
|
S&P
500 Index
|
Morgan
Stanley Company Incorporated
|
(25)
|
(10,975,000)
|
4,390.00
|
5-28-2021
|
(8,623)
|
S&P
500 Index
|
Morgan
Stanley Company Incorporated
|
(6)
|
(2,184,000)
|
3,640.00
|
6-18-2021
|
(333,300)
|
S&P
500 Index
|
Morgan
Stanley Company Incorporated
|
(4)
|
(1,840,000)
|
4,600.00
|
7-16-2021
|
(2,080)
|
S&P
500 Index
|
Morgan
Stanley Company Incorporated
|
(10)
|
(4,590,000)
|
4,590.00
|
7-16-2021
|
(5,600)
|
|
|
|
|
|
|
$(2,053,540)
|
The accompanying notes are an integral part of these
financial statements.
Wells Fargo Global Dividend Opportunity
Fund | 37
Statement of assets and
liabilities—April 30, 2021 (unaudited)
|
|
Assets
|
|
Investments in unaffiliated securities, at value (cost
$247,044,571)
|
$
300,075,030
|
Investments in affiliated securites, at value (cost
$5,700,004)
|
5,700,004
|
Cash
|
2,381
|
Foreign currency, at value (cost
$2,692,162)
|
2,692,184
|
Receivable for investments
sold
|
6,768,189
|
Receivable for dividends and
interest
|
1,593,505
|
Prepaid expenses and other
assets
|
8,368
|
Total
assets
|
316,839,661
|
Liabilities
|
|
Secured borrowing
payable
|
47,500,000
|
Payable for investments
purchased
|
9,337,075
|
Written options at value (premiums received
$1,840,685)
|
2,053,540
|
Advisory fee
payable
|
226,597
|
Administration fee
payable
|
13,329
|
Trustees’ fees and expenses
payable
|
2,373
|
Accrued expenses and other
liabilities
|
72,967
|
Total
liabilities
|
59,205,881
|
Total net
assets
|
$
257,633,780
|
Net
assets consist of
|
|
Paid-in
capital
|
$
376,639,505
|
Total distributable
loss
|
(119,005,725)
|
Total net
assets
|
$
257,633,780
|
Net
asset value per share
|
|
Based on $257,633,780 divided by 43,290,733 shares issued and outstanding (unlimited number of shares
authorized)
|
$5.95
|
The accompanying notes are an integral part of these financial
statements.
38 | Wells Fargo Global Dividend
Opportunity Fund
Statement of
operations—six months ended April 30, 2021 (unaudited)
|
|
Investment
income
|
|
Dividends (net of foreign withholdings taxes of
$214,700)
|
$
4,159,727
|
Interest
|
1,531,931
|
Income from affiliated
securities
|
481
|
Total investment
income
|
5,692,139
|
Expenses
|
|
Advisory
fee
|
1,238,454
|
Administration
fee
|
72,850
|
Custody and accounting
fees
|
25,609
|
Professional
fees
|
42,921
|
Shareholder report
expenses
|
36,161
|
Trustees’ fees and
expenses
|
9,610
|
Transfer agent
fees
|
19,465
|
Interest
expense
|
199,522
|
Other fees and
expenses
|
32,595
|
Total
expenses
|
1,677,187
|
Net investment
income
|
4,014,952
|
Realized
and unrealized gains (losses) on investments
|
|
Net
realized gains (losses) on
|
|
Unaffiliated
securities
|
15,394,005
|
Foreign currency and foreign currency
translations
|
3,315
|
Forward foreign currency
contracts
|
(1,894)
|
Written
options
|
(652,279)
|
Net realized gains on
investments
|
14,743,147
|
Net
change in unrealized gains (losses) on
|
|
Unaffiliated
securities
|
41,519,787
|
Foreign currency and foreign currency
translations
|
1,384
|
Written
options
|
(937,519)
|
Net change in unrealized gains (losses) on
investments
|
40,583,652
|
Net realized and unrealized gains (losses) on
investments
|
55,326,799
|
Net increase in net assets resulting from
operations
|
$59,341,751
|
The accompanying notes are an integral part of these
financial statements.
Wells Fargo Global Dividend Opportunity
Fund | 39
Statement of changes in net
assets
|
|
|
|
Six
months ended
April 30, 2021
(unaudited)
|
Year
ended
October 31, 2020
|
Operations
|
|
|
Net investment
income
|
$
4,014,952
|
$
7,246,069
|
Net realized gains (losses) on
investments
|
14,743,147
|
(35,791,231)
|
Net change in unrealized gains (losses) on
investments
|
40,583,652
|
7,856,566
|
Net increase (decrease) in net assets resulting from
operations
|
59,341,751
|
(20,688,596)
|
Distributions
to shareholders from
|
|
|
Net investment income and net realized
gains
|
(11,166,244)
|
(7,799,656)
|
Tax basis return of
capital
|
0
|
(17,127,977)
|
Total distributions to
shareholders
|
(11,166,244)
|
(24,927,633)
|
Capital
share transactions
|
|
|
Cost of shares
repurchased
|
(1,707,304)
|
(1,208,232)
|
Total increase (decrease) in net
assets
|
46,468,203
|
(46,824,461)
|
Net
assets
|
|
|
Beginning of
period
|
211,165,577
|
257,990,038
|
End of
period
|
$257,633,780
|
$211,165,577
|
The accompanying notes are an integral part of these financial
statements.
40 | Wells Fargo Global Dividend
Opportunity Fund
Statement of cash
flows—six months ended April 30, 2021 (unaudited)
|
|
Cash
flows from operating activities:
|
|
Net increase in net assets resulting from
operations
|
$
59,341,751
|
Adjustments
to reconcile net increase in net assets from operations to net cash provided by operating activities:
|
|
Purchase of long-term
securities
|
(169,220,470)
|
Proceeds from the sales of long-term
securities
|
180,755,064
|
Amortization
|
(18,230)
|
Purchases and sales of short-term securities,
net
|
(1,759,562)
|
Proceeds from premiums received from written
options
|
6,025,443
|
Payments to close written
options
|
(6,374,731)
|
Increase in receivable for investments
sold
|
(6,511,099)
|
Increase in receivable for dividends and
interest
|
(103,097)
|
Decrease in prepaid expenses and other
assets
|
2,119
|
Increase in payable for investments
purchased
|
8,528,544
|
Decrease in trustees’ fees and expenses
payable
|
(843)
|
Increase in advisory fee
payable
|
28,336
|
Increase in administration fee
payable
|
1,667
|
Increase in accrued expenses and other
liabilities
|
8,982
|
Litigation payments
received
|
35
|
Net realized gains on
investments
|
(15,394,005)
|
Net realized losses from written
options
|
652,279
|
Net change in unrealized gains (losses) on
investments
|
(40,583,652)
|
Net cash provided by operating
activities
|
15,378,531
|
Cash
flows from financing activities:
|
|
Cost of shares
repurchased
|
(1,707,304)
|
Cash distributions
paid
|
(11,166,244)
|
Net cash used in financing
activities
|
(12,873,548)
|
Net increase in
cash
|
2,504,983
|
Cash
(including foreign currency):
|
|
Beginning of
period
|
189,582
|
End of
period
|
$
2,694,565
|
Supplemental
cash disclosure
|
|
Cash paid for
interest
|
$
198,856
|
The accompanying notes are an integral part of these financial
statements.
Wells Fargo Global Dividend Opportunity
Fund | 41
Financial highlights
(For a share outstanding throughout each period)
|
|
Year
ended October 31
|
|
Six
months ended
April 30, 2021
(unaudited)
|
2020
|
2019
|
2018
|
2017
|
2016
|
Net asset value, beginning of
period
|
$4.84
|
$5.87
|
$5.61
|
$6.68
|
$6.51
|
$7.47
|
Net investment
income
|
0.09
|
0.16
|
0.17
|
0.23
|
0.30
|
0.62
|
Net realized and unrealized gains (losses) on
investments
|
1.28
|
(0.63)
|
0.68
|
(0.66)
|
0.46
|
(1.09)
|
Total from investment
operations
|
1.37
|
(0.47)
|
0.85
|
(0.43)
|
0.76
|
(0.47)
|
Distributions
to shareholders from
|
|
|
|
|
|
|
Net investment
income
|
(0.26)
|
(0.18)
|
(0.20)
|
(0.22)
|
(0.32)
|
(0.59)
|
Tax basis return of
capital
|
0.00
|
(0.39)
|
(0.40)
|
(0.43)
|
(0.28)
|
0.00
|
Total distributions to
shareholders
|
(0.26)
|
(0.57)
|
(0.60)
|
(0.65)
|
(0.60)
|
(0.59)
|
Anti-dilutive effect of shares
repurchased
|
0.00
1
|
0.01
|
0.01
|
0.01
|
0.01
|
0.10
|
Net asset value, end of
period
|
$5.95
|
$4.84
|
$5.87
|
$5.61
|
$6.68
|
$6.51
|
Market value, end of
period
|
$5.48
|
$4.09
|
$5.55
|
$4.94
|
$6.26
|
$5.54
|
Total return based on market
value2
|
40.88%
|
(16.35)%
|
25.71%
|
(11.55)%
|
24.77%
|
(3.40)%
|
Ratios
to average net assets (annualized)
|
|
|
|
|
|
|
Expenses
|
1.37%
3
|
1.60%
3
|
1.89%
3
|
1.84%
3
|
1.34%
3
|
1.09%
|
Net investment
income
|
3.37%
3
|
3.17%
3
|
2.96%
3
|
3.70%
3
|
4.64%
3
|
9.00%
|
Supplemental
data
|
|
|
|
|
|
|
Portfolio turnover
rate
|
59%
|
108%
|
109%
|
45%
|
79%
|
134%
|
Net assets, end of period (000s
omitted)
|
$257,634
|
$211,166
|
$257,990
|
$253,389
|
$303,664
|
$298,914
|
Borrowings outstanding, end of period (000s
omitted)
|
$47,500
|
$47,500
|
$47,500
|
$47,500
|
$47,500
|
N/A
|
Asset coverage per $1,000 of borrowing, end of
period
|
$6,424
|
$5,446
|
$6,431
|
$6,335
|
$7,393
|
N/A
|
1
|
Amount is
less than $0.005.
|
2
|
Total
return is calculated assuming a purchase of common stock on the first day and a sale on the last day of the period reported. Dividends and distributions, if any, are assumed for purposes of these calculations to be reinvested at prices obtained
under the Fund’s Automatic Dividend Reinvestment Plan. Total return does not reflect brokerage commissions that a shareholder would pay on the purchase and sale of shares.
|
3
|
Ratios
include interest expense associated with borrowings and/or leverage transactions as follows:
|
Six
months ended April 30, 2021 (unaudited)
|
0.16%
|
Year
ended October 31, 2020
|
0.38%
|
Year
ended October 31, 2019
|
0.57%
|
Year
ended October 31, 2018
|
0.45%
|
Year
ended October 31, 2017
|
0.15%
|
The accompanying notes are an integral part of these financial
statements.
42 | Wells Fargo Global Dividend
Opportunity Fund
Notes to financial statements
(unaudited)
1. ORGANIZATION
Wells Fargo Global Dividend Opportunity Fund (the
“Fund”) was organized as a statutory trust under the laws of the state of Delaware on December 21, 2006 and is registered as a diversified closed-end management investment company under the Investment Company Act of 1940, as amended (the
“1940 Act”). As an investment company, the Fund follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946,
Financial Services – Investment Companies.
On February 23, 2021, Wells Fargo & Company announced that
it has entered into a definitive agreement to sell Wells Fargo Asset Management (“WFAM”) to GTCR LLC and Reverence Capital Partners, L.P. WFAM is the trade name used by the asset management businesses of Wells Fargo & Company and
includes Wells Fargo Funds Management, LLC, the adviser to the Fund and Wells Capital Management Incorporated, the subadviser to the Fund. As part of the transaction, Wells Fargo & Company would own a 9.9% equity interest. Consummation of the
transaction will result in the automatic termination of the Fund’s investment advisory agreement and subadvisory agreement. The Fund’s Board of Trustees has approved a new investment advisory agreement and a new subadvisory agreement and
approved submitting the agreements to the Fund’s shareholders for approval at a special meeting of shareholders, expected to be held on August 16, 2021. Shareholders of record of the Fund at the close of business on May 28, 2021, are entitled
to vote at the meeting. If shareholders approve the new agreements, they would take effect upon the closing of the transaction. The transaction is expected to close in the second half of 2021, subject to customary closing conditions.
This shareholder report is not asking you for a proxy. A
separate proxy statement with more detailed information about the transaction will be provided to Fund shareholders and should be reviewed carefully.
2. SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies, which are
consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of
assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Securities valuation
All investments are valued each business day as of the close of regular
trading on the New York Stock Exchange (generally 4 p.m. Eastern Time), although the Fund may deviate from this calculation time under unusual or unexpected circumstances.
Equity securities that are listed on a foreign or domestic
exchange or market are valued at the official closing price or, if none, the last sales price. If no sale occurs on the principal exchange or market that day, a fair value price will be determined in accordance with the Fund’s Valuation
Procedures.
The values of securities denominated in
foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Wells Fargo Asset Management Pricing Committee at Wells Fargo Funds Management, LLC
("Funds Management").
Many securities markets and
exchanges outside the U.S. close prior to the close of the New York Stock Exchange and therefore may not fully reflect trading or events that occur after the close of the principal exchange in which the foreign securities are traded, but before the
close of the New York Stock Exchange. If such trading or events are expected to materially affect the value of such securities, then fair value pricing procedures approved by the Board of Trustees of the Fund are applied. These procedures take into
account multiple factors including movements in U.S. securities markets after foreign exchanges close. Foreign securities that are fair valued under these procedures are categorized as Level 2 and the application of these procedures may result in
transfers between Level 1 and Level 2. Depending on market activity, such fair valuations may be frequent. Such fair value pricing may result in net asset values that are higher or lower than net asset values based on the last reported sales price
or latest quoted bid price. On April 30, 2021, such fair value pricing was not used in pricing foreign securities.
Debt securities are valued at the evaluated bid price provided
by an independent pricing service (e.g. taking into account various factors, including yields, maturities, or credit ratings) or, if a reliable price is not available, the quoted bid price from an independent broker-dealer.
Forward foreign currency contracts are recorded at the forward
rate provided by an independent foreign currency pricing source at a time each business day specified by the Wells Fargo Asset Management Pricing Committee.
Wells Fargo Global Dividend Opportunity
Fund | 43
Notes to financial statements
(unaudited)
Options that are listed on a foreign or domestic exchange or
market are valued at the closing mid-price. Non-listed options are valued at the evaluated price provided by an independent pricing service or, if a reliable price is not available, the quoted bid price from an independent broker-dealer.
Investments in registered open-end investment companies are
valued at net asset value.
Investments which are not
valued using any of the methods discussed above are valued at their fair value, as determined in good faith by the Board of Trustees. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the
authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to
the Wells Fargo Asset Management Pricing Committee. The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of
Trustees receives reports on any valuation actions taken by the Valuation Committee or the Wells Fargo Asset Management Pricing Committee which may include items for ratification.
Foreign currency translation
The accounting records of the Fund are maintained in U.S. dollars. The values
of other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Wells Fargo Asset Management Pricing
Committee. Purchases and sales of securities, and income and expenses are converted at the rate of exchange on the respective dates of such transactions. Net realized foreign exchange gains or losses arise from sales of foreign currencies, currency
gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded and the U.S. dollar equivalent of the amounts actually
paid or received. Net unrealized foreign exchange gains and losses arise from changes in the fair value of assets and liabilities other than investments in securities resulting from changes in exchange rates. The changes in net assets arising from
changes in exchange rates of securities and the changes in net assets resulting from changes in market prices of securities are not separately presented. Such changes are included in net realized and unrealized gains or losses from
investments.
When-issued transactions
The Fund may purchase securities on a forward commitment or when-issued basis.
The Fund records a when-issued transaction on the trade date and will segregate assets in an amount at least equal in value to the Fund's commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market
daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.
Loans
The Fund may invest in direct debt instruments which are interests in amounts
owed to lenders by corporate or other borrowers. The loans pay interest at rates which are periodically reset by reference to a base lending rate plus a spread. Investments in loans may be in the form of participations in loans or assignments of all
or a portion of loans from third parties. When the Fund purchases participations, it generally has no rights to enforce compliance with the terms of the loan agreement with the borrower. As a result, the Fund assumes the credit risk of both the
borrower and the lender that is selling the participation. When the Fund purchases assignments from lenders, it acquires direct rights against the borrower on the loan and may enforce compliance by the borrower with the terms of the loan agreement.
Loans may include fully funded term loans or unfunded loan commitments, which are contractual obligations for future funding.
Forward foreign currency contracts
A forward foreign currency contract is an agreement between two parties to
purchase or sell a specific currency for an agreed-upon price at a future date. The Fund enters into forward foreign currency contracts to facilitate transactions in foreign-denominated securities and to attempt to minimize the risk to the Fund from
adverse changes in the relationship between currencies. Forward foreign currency contracts are recorded at the forward rate and marked-to-market daily. When the contracts are closed, realized gains and losses arising from such transactions are
recorded as realized gains or losses on forward foreign currency contracts. The Fund is subject to foreign currency risk and may be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts or if the
value of the foreign currency changes unfavorably. The Fund's maximum risk of loss from counterparty credit risk is the unrealized gains on the contracts. This risk may be mitigated if there is a master netting arrangement between the Fund and the
counterparty.
Options
The Fund may write covered call options or secured put options on individual
securities and/or indexes. When the Fund writes an option, an amount equal to the premium received is recorded as a liability and is subsequently adjusted to the current market
44 | Wells Fargo Global Dividend
Opportunity Fund
Notes to financial statements
(unaudited)
value of the written option. Premiums received from written options that
expire unexercised are recognized as realized gains on the expiration date. For exercised options, the difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is
treated as a realized gain or loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security in calculating the realized gain or loss on the sale. If a put option is exercised, the premium reduces
the cost of the security purchased. The Fund, as a writer of an option, bears the market risk of an unfavorable change in the price of the security and/or index underlying the written option.
The Fund may also purchase call or put options. Premiums paid
are included in the Statement of Assets and Liabilities as investments, the values of which are subsequently adjusted based on the current market values of the options. Premiums paid for purchased options that expire are recognized as realized
losses on the expiration date. Premiums paid for purchased options that are exercised or closed are added to the amount paid or offset against the proceeds received for the underlying security to determine the realized gain or loss. The risk of loss
associated with purchased options is limited to the premium paid.
Options traded on an exchange are regulated and terms of the
options are standardized. The Fund is subject to equity price risk. Purchased options traded over-the-counter expose the Fund to counterparty risk in the event the counterparty does not perform. This risk can be mitigated by having a master netting
arrangement between the Fund and the counterparty and by having the counterparty post collateral to cover the Fund’s exposure to the counterparty. The Fund may also purchase call or put options. Premiums paid are included in the Statement of
Assets and Liabilities as investments, the values of which are subsequently adjusted based on the current market values of the options. Premiums paid for purchased options that expire are recognized as realized losses on the expiration date.
Premiums paid for purchased options that are exercised or closed are added to the amount paid or offset against the proceeds received for the underlying security to determine the realized gain or loss. The risk of loss associated with purchased
options is limited to the premium paid.
Security
transactions and income recognition
Securities transactions are recorded
on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.
Dividend income is recognized on the ex-dividend date, except
for certain dividends from foreign securities, which are recorded as soon as the custodian verifies the ex-dividend date.
Interest income is accrued daily and bond discounts are
accreted and premiums are amortized daily. To the extent debt obligations are placed on non-accrual status, any related interest income may be reduced by writing off interest receivables when the collection of all or a portion of interest has been
determined to be doubtful based on consistently applied procedures and the fair value has decreased. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed
from non-accrual status.
Income is recorded net of
foreign taxes withheld where recovery of such taxes is not assured.
Distributions to shareholders
Under a managed distribution plan, the Fund pays quarterly distributions to
shareholders at an annual minimum fixed rate of 10% based on the Fund’s average monthly net asset value per share over the prior 12 months. The quarterly distributions may be sourced from income, paid-in capital, and/or capital gains, if any.
To the extent that sufficient investment income is not available on a quarterly basis, the Fund may distribute paid-in capital and/ or capital gains, if any, in order to maintain its managed distribution level.
Distributions to shareholders from net investment income and
net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in accordance with income tax regulations and may differ from U.S. generally accepted accounting principles. Dividend sources are estimated at the
time of declaration. The tax character of distributions is determined as of the Fund’s fiscal year end. Therefore, a portion of the Fund’s distributions made prior to the Fund’s fiscal year end may be categorized as a tax return of
capital at year end.
Federal and other taxes
The Fund intends to continue to qualify as a regulated investment company by
distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly,
no provision for federal income taxes was required.
The
Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund's tax
positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.
Wells Fargo Global Dividend Opportunity
Fund | 45
Notes to financial statements
(unaudited)
As of April 30, 2021, the aggregate cost of all investments for
federal income tax purposes was $254,063,482 and the unrealized gains (losses) consisted of:
Gross
unrealized gains
|
$56,480,497
|
Gross
unrealized losses
|
(4,981,800)
|
Net
unrealized gains
|
$51,498,697
|
As of October 31, 2020, the Fund
had capital loss carryforwards which consisted of $146,851,964 in short-term capital losses and $30,942,628 in long-term capital losses.
3. FAIR VALUATION MEASUREMENTS
Fair value measurements of investments are determined within a
framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active
markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the
fair value measurement. The inputs are summarized into three broad levels as follows:
■
|
Level 1 – quoted prices
in active markets for identical securities
|
■
|
Level 2 – other
significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
|
■
|
Level 3
– significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
|
The inputs or methodologies used for valuing investments in
securities are not necessarily an indication of the risk associated with investing in those securities.
46 | Wells Fargo Global Dividend
Opportunity Fund
Notes to financial statements
(unaudited)
The following is a summary of the inputs used in valuing the
Fund’s assets and liabilities as of April 30, 2021:
|
Quoted
prices
(Level 1)
|
Other
significant
observable inputs
(Level 2)
|
Significant
unobservable inputs
(Level 3)
|
Total
|
Assets
|
|
|
|
|
Investments
in:
|
|
|
|
|
Common
stocks
|
|
|
|
|
Australia
|
$
4,053,079
|
$
0
|
$
0
|
$
4,053,079
|
Canada
|
7,680,498
|
0
|
0
|
7,680,498
|
China
|
7,591,557
|
0
|
0
|
7,591,557
|
France
|
10,079,086
|
0
|
0
|
10,079,086
|
Germany
|
5,966,221
|
0
|
0
|
5,966,221
|
Hong
Kong
|
2,350,570
|
0
|
0
|
2,350,570
|
Ireland
|
3,559,950
|
0
|
0
|
3,559,950
|
Italy
|
2,377,299
|
0
|
0
|
2,377,299
|
Japan
|
11,209,974
|
0
|
0
|
11,209,974
|
Netherlands
|
9,037,678
|
0
|
0
|
9,037,678
|
South
Africa
|
3,043,945
|
0
|
0
|
3,043,945
|
South
Korea
|
3,470,826
|
0
|
0
|
3,470,826
|
Sweden
|
10,883,832
|
0
|
0
|
10,883,832
|
Switzerland
|
5,332,595
|
0
|
0
|
5,332,595
|
Taiwan
|
2,982,123
|
0
|
0
|
2,982,123
|
United
Kingdom
|
19,903,808
|
0
|
0
|
19,903,808
|
United
States
|
135,726,164
|
0
|
0
|
135,726,164
|
Corporate
bonds and notes
|
0
|
44,681,338
|
0
|
44,681,338
|
Loans
|
0
|
4,587,442
|
588,811
|
5,176,253
|
Preferred
stocks
|
|
|
|
|
United
States
|
0
|
495,000
|
0
|
495,000
|
Warrants
|
|
|
|
|
United
States
|
0
|
69,117
|
0
|
69,117
|
Yankee
corporate bonds and notes
|
0
|
4,284,313
|
119,804
|
4,404,117
|
Short-term
investments
|
|
|
|
|
Investment
companies
|
5,700,004
|
0
|
0
|
5,700,004
|
Total
assets
|
$250,949,209
|
$54,117,210
|
$708,615
|
$305,775,034
|
Liabilities
|
|
|
|
|
Written
options
|
$
0
|
$
2,053,540
|
$
0
|
$
2,053,540
|
Total
liabilities
|
$
0
|
$
2,053,540
|
$
0
|
$
2,053,540
|
Additional sector, industry or geographic detail, if any, is
included in the Portfolio of Investments.
For the six
months ended April 30, 2021, the Fund did not have any transfers into/out of Level 3.
4. TRANSACTIONS WITH AFFILIATES
Advisory fee
Funds Management, an indirect wholly owned subsidiary of Wells Fargo &
Company ("Wells Fargo"), is the adviser to the Fund and is entitled to receive a fee at an annual rate of 0.85% of the Fund’s average daily total assets. Total assets consist of the net assets of the Fund plus borrowings or other leverage for
investment purposes to the extent excluded in calculating net assets.
Funds Management has retained the services of a subadviser to
provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. Wells Capital Management Incorporated, an affiliate of Funds Management and an indirect wholly owned subsidiary of Wells Fargo, is the
subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate of 0.40% of the Fund’s average daily total assets.
Wells Fargo Global Dividend Opportunity
Fund | 47
Notes to financial statements
(unaudited)
Administration fee
Funds Management also serves as the administrator to the Fund, providing the
Fund with a wide range of administrative services necessary to the operation of the Fund. Funds Management is entitled to receive an annual administration fee from the Fund equal to 0.05% of the Fund’s average daily total assets.
Interfund transactions
The Fund may purchase or sell portfolio investment securities to certain other
Wells Fargo affiliates pursuant to Rule 17a-7 under the 1940 Act and under procedures adopted by the Board of Trustees. The procedures have been designed to ensure that these interfund transactions, which do not incur broker commissions, are
effected at current market prices.
5. CAPITAL SHARE
TRANSACTIONS
The Fund has authorized an unlimited number
of shares with no par value. For the six months ended April 30, 2021 and year ended October 31, 2020, the Fund did not issue any shares.
On November 17, 2020, the Fund announced a renewal of its
open-market share repurchase program (the “Buyback Program”). Under the Buyback Program, the Fund is authorized to repurchase up to 10% of its outstanding shares in open market transactions during the period beginning on January 1, 2021
and ending on December 31, 2021. The Fund’s Board of Trustees has delegated to Funds Management full discretion to administer the Buyback Program including the determination of the amount and timing of repurchases in accordance with the best
interests of the Fund and subject to applicable legal limitations. During the six months ended April 30, 2021, the Fund purchased 360,047 of its shares on the open market at a total cost of $1,707,304 (weighted average price per share of $4.73). The
weighted average discount of these repurchased shares was 13.05%.
6. BORROWINGS
The Fund has borrowed $47,500,000 through a revolving credit
facility administered by a major financial institution (the “Facility”). The Facility has a commitment amount of $47,500,000 . The Fund is charged interest at the 30 day London Interbank Offered Rate (LIBOR) plus 0.70% or the 1 Month
LIBOR plus 0.70% and a commitment fee of 0.15% per annum of the unutilized amount of the commitment amount. With the market-wide transition away from LIBOR, the Fund expects to negotiate a new interest rate for the Facility by the date the 1 Month
LIBOR ceases to be published, which is currently by the end of 2021 but which is expected to be extended through June 30, 2023. The financial institution holds a security interest in all the assets of the Fund as collateral for the borrowing. Based
on the nature of the terms of the Facility and comparative market rates, the carrying amount of the borrowings at April 30, 2021 approximates its fair value. If measured at fair value, the borrowings would be categorized as a Level 2 under the fair
value hierarchy.
During the six months ended April 30,
2021, the Fund had average borrowings outstanding of $47,500,000 at an average interest rate of 0.84% and paid interest in the amount of $199,522, which represents 0.16% of its average daily net assets (annualized).
7. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments, excluding U.S. government
obligations (if any) and short-term securities, for the six months ended April 30, 2021 were $167,599,036 and $177,077,190, respectively.
As of April 30, 2021, the Fund had unfunded loan commitments of
$991,942.
8. DERIVATIVE TRANSACTIONS
During the six months ended April 30, 2021, the Fund entered
into forward foreign currency contracts for economic hedging purposes. The Fund had average contract amounts of $2,799 in forward foreign currency contracts to sell during the six months ended April 30, 2021.
During the six months ended April 30, 2021, the Fund entered
into written options for income generation and hedging purposes and had an average of 11,036 written option contracts.
A summary of the location of derivative instruments on the
financial statements by primary risk exposure is outlined in the following tables.
48 | Wells Fargo Global Dividend
Opportunity Fund
Notes to financial statements
(unaudited)
|
Realized
losses on
derivatives
|
Change
in unrealized
gains (losses) on
derivatives
|
Equity
risk
|
$(652,279)
|
$(937,519)
|
Foreign
currency risk
|
(1,894)
|
0
|
|
$(654,173)
|
$(937,519)
|
The Fund's written option contracts
are subject to a master netting arrangement. As of April 30, 2021, the Fund had written options contracts with the following counterparty which are subject to offset:
Counterparty
|
Value
of
written
options
|
Collateral
pledged1
|
Net
amount
|
Morgan
Stanley Company Incorporated
|
$2,053,540
|
$(2,053,540)
|
$0
|
1 Collateral pledged within this table is limited to the collateral for the net
transaction with the counterparty.
9.
INDEMNIFICATION
Under the Fund's organizational
documents, the officers and Trustees have been granted certain indemnification rights against certain liabilities that may arise out of performance of their duties to the Fund. The Fund has entered into a separate agreement with each Trustee that
converts indemnification rights currently existing under the Fund’s organizational documents into contractual rights that cannot be changed in the future without the consent of the Trustee. Additionally, in the normal course of business, the
Fund may enter into contracts with service providers that contain a variety of indemnification clauses. The Fund’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot
be estimated.
10. SUBSEQUENT DISTRIBUTIONS
Under the managed distribution plan, on May 18, 2021 , the Fund
declared a distribution of $0.13217 per share payable on July 1, 2021 to common shareholders of record on June 14, 2021. This distribution is not reflected in the accompanying financial statements.
11. CORONAVIRUS (COVID-19) PANDEMIC
On March 11, 2020, the World Health Organization announced that
it had made the assessment that coronavirus disease 2019 (“COVID-19”) is a pandemic. The impacts of COVID-19 are affecting the entire global economy, individual companies and investment products, the funds, and the market in general.
There is significant uncertainty around the extent and duration of business disruptions related to COVID-19 and the impacts may last for an extended period of time. COVID-19 has led to significant uncertainty and volatility in the financial
markets.
Wells Fargo Global Dividend Opportunity
Fund | 49
Other information
(unaudited)
PROXY VOTING INFORMATION
A description of the policies and procedures used to determine
how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-800-222-8222, visiting our website at wfam.com, or visiting
the SEC website at sec.gov. Information regarding how the proxies related to portfolio securities were voted during the most recent 12-month period ended June 30 is available on the website at wfam.com or by
visiting the SEC website at sec.gov.
ANNUAL MEETING OF
SHAREHOLDERS
On February 8, 2021, an Annual Meeting of
Shareholders for the Fund was held to consider the following proposal. The results of the proposal are indicated below.
Proposal 1 – Election of
trustees:
Shares
voted “For”
|
William
R. Ebsworth
|
32,221,688
|
Shares
voted “Withhold”
|
|
3,574,023
|
Shares
voted “For”
|
Jane
A. Freeman
|
32,233,741
|
Shares
voted “Withhold”
|
|
3,561,970
|
Shares
voted “For”
|
Judith
M. Johnson
|
32,206,363
|
Shares
voted “Withhold”
|
|
3,589,348
|
QUARTERLY PORTFOLIO HOLDINGS
INFORMATION
The Fund files its complete schedule of
portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. Shareholders may view the filed Form N-PORT by visiting the SEC website at sec.gov.
50 | Wells Fargo Global Dividend
Opportunity Fund
Other information
(unaudited)
BOARD OF TRUSTEES AND OFFICERS
The following table provides basic information about the Board
of Trustees (the “Trustees”) and Officers of the Fund. Each of the Trustees and Officers listed below acts in identical capacities for each fund in the Wells Fargo family of funds, which consists of 139 mutual funds comprising the Wells
Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust, and four closed-end funds, including the Fund (collectively the “Fund Complex”). The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor,
San Francisco, CA 94105. The Board of Trustees is classified into three classes of which one is elected annually. Each Trustee serves a three-year term concurrent with the class from which the Trustee is elected. Each Officer serves an indefinite
term.
Independent Trustees
Name
and
year of birth
|
Position
held and
length of service*
|
Principal
occupations during past five years or longer
|
Current
other
public company or
investment company
directorships
|
Class
I - Non-Interested Trustees to serve until 2023 Annual Meeting of Shareholders
|
Isaiah
Harris, Jr.
(Born 1952)
|
Trustee,
since 2010;
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
|
David
F. Larcker
(Born 1950)
|
Trustee,
since 2010
|
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
|
Olivia
S. Mitchell
(Born 1953)
|
Trustee,
since 2010;
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
|
Class
II - Non-Interested Trustees to serve until 2024 Annual Meeting of Shareholders
|
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
|
Wells Fargo Global Dividend Opportunity
Fund | 51
Other information
(unaudited)
Name
and
year of birth
|
Position
held and
length of service*
|
Principal
occupations during past five years or longer
|
Current
other
public company or
investment company
directorships
|
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
|
Judith
M. Johnson
(Born 1949)
|
Trustee,
since 2010
|
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
|
Class
III - Non-Interested Trustees to serve until 2022 Annual Meeting of Shareholders
|
Timothy
J. Penny
(Born 1951)
|
Trustee,
since 2010;
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
|
* Length of service dates reflect the
Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.
52 | Wells Fargo Global Dividend
Opportunity Fund
Other information
(unaudited)
Officers
Name
and
year of birth
|
Position
held and
length of service
|
Principal
occupations during past five years or longer
|
Andrew
Owen
(Born 1960)
|
President,
since 2017
|
Executive
Vice President of Wells Fargo & Company and Head of Affiliated Managers, Wells Fargo Asset Management, since 2014. In addition, Mr. Owen is currently President, Chief Executive Officer and Director of Wells Fargo Funds Management, LLC since
2017. Prior thereto, Executive Vice President responsible for marketing, investments and product development for Wells Fargo Funds Management, LLC, from 2009 to 2014.
|
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.
|
Wells Fargo Global Dividend Opportunity
Fund | 53
Automatic dividend reinvestment
plan
AUTOMATIC DIVIDEND REINVESTMENT PLAN
All common shareholders are eligible to participate in the
Automatic Dividend Reinvestment Plan (“the Plan”). Pursuant to the Plan, unless a common shareholder is ineligible or elects otherwise, all cash dividends and capital gains distributions are automatically reinvested by Computershare
Trust Company, N.A., as agent for shareholders in administering the Plan (“Plan Agent”), in additional common shares of the Fund. Whenever the Fund declares an ordinary income dividend or a capital gain dividend (collectively referred to
as “dividends”) payable either in shares or in cash, nonparticipants in the Plan will receive cash, and participants in the Plan will receive the equivalent in common shares. The shares are acquired by the Plan Agent for the
participant’s account, depending upon the circumstances described below, either (i) through receipt of additional unissued but authorized common shares from the Fund (“newly issued common shares”) or (ii) by purchase of outstanding
common shares on the open-market (open-market purchases) on the NYSE Amex or elsewhere. If, on the payment date for any dividend or distribution, the net asset value per share of the common shares is equal to or less than the market price per common
share plus estimated brokerage commissions (“market premium”), the Plan Agent will invest the amount of such dividend or distribution in newly issued shares on behalf of the participant. The number of newly issued common shares to be
credited to the participant’s account will be determined by dividing the dollar amount of the dividend by the net asset value per share on the date the shares are issued, provided that the maximum discount from the then current market price
per share on the date of issuance may not exceed 5%. If on the dividend payment date the net asset value per share is greater than the market value (“market discount”), the Plan Agent will invest the dividend amount in shares acquired on
behalf of the participant in open-market purchases. There will be no brokerage charges with respect to shares issued directly by the Fund as a result of dividends or capital gains distributions payable either in shares or in cash. However, each
participant will pay a pro rata share of brokerage commissions incurred with respect to the Plan Agent’s open-market purchases in connection with the reinvestment of dividends. The automatic reinvestment of dividends and distributions will not
relieve participants of any federal, state or local income tax that may be payable (or required to be withheld) on such dividends. All correspondence concerning the Plan should be directed to the Plan Agent at P.O. Box 505000, Louisville, Kentucky
40233 or by calling 1-800-730-6001.
54 | Wells Fargo Global Dividend
Opportunity Fund
Transfer Agent, Registrar, Shareholder Servicing
Agent
& Dividend Disbursing Agent
Computershare Trust
Company, N.A.
P.O. Box 505000
Louisville, Kentucky 40233
1-800-730-6001
Website: wfam.com
Wells Fargo Asset
Management (WFAM) is the trade name for certain investment advisory/management firms owned by Wells Fargo & Company. These firms include but are not limited to Wells Capital Management Incorporated and Wells Fargo Funds Management, LLC. Certain
products managed by WFAM entities are distributed by Wells Fargo Funds Distributor, LLC (a broker-dealer and Member FINRA).
This material is for general informational and educational
purposes only and is NOT intended to provide investment advice or a recommendation of any kind—including a recommendation for any specific investment, strategy, or plan.
INVESTMENT
PRODUCTS: NOT FDIC INSURED ■ NO BANK GUARANTEE ■ MAY LOSE VALUE
© 2021 Wells Fargo & Company. All rights
reserved.
PAR-0521-00319 06-21
SGDO/SAR158 04-21
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 Wells Fargo Global Dividend Opportunity Fund 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 PORTFOLIO MANAGERS
Dennis Bein, CFA
Portfolio Manager, Analytic Investors
Dennis Bein is a portfolio
manager for the Analytic Investors team at Wells Fargo Asset Management (WFAM). He focuses on day-to-day portfolio management and research related to equity-based
investment strategies. Prior to joining Analytic Investors, Dennis was a senior consultant for Analysis Group, Inc., where he provided investment consulting services for institutional investors and plan sponsors. He began his investment industry
career in 1990. Dennis earned a bachelors degree in business administration and a masters degree in business administration with an emphasis in finance from the University of California, Riverside. He has earned the right to use the
Chartered Financial Analyst® (CFA®) designation.
Justin Carr, CFA
Senior Portfolio Manager, Golden
Capital Equity
Justin Carr is a senior portfolio manager for the Golden Capital Equity team at Wells Fargo Asset Management. Prior to joining the team in
2011, Justin served as an analyst for the Global Strategic Products team at Wells Capital Management. He began his investment industry career in 2000 at Evergreen Investments. Justin earned a bachelors degree in business administration with an
emphasis in finance from the University of Vermont and a masters degree in mathematical finance from Worcester Polytechnic Institute. He has earned the right to use the Chartered Financial
Analyst® (CFA®) designation and is a member of CFA Society Boston and CFA Institute.
Harindra de Silva, Ph.D., CFA
Portfolio Manager, Analytic Investors
Harindra
(Harin) de Silva is and portfolio manager with the Analytic Investors team at Wells Fargo Asset Management (WFAM). Before joining the team, Harin was a principal at Analysis Group, Inc., where he was responsible for providing economic
research services to institutional investors including investment managers, large pension funds, and endowments. He focuses on the ongoing research effort for equity and factor-based asset allocation strategies. Harin has authored several articles
and studies on finance-related topics including stock market anomalies, market volatility, and asset valuation. He was recognized with the prestigious Graham and Dodd Award of Excellence for their research published in the Financial Analysts Journal
in 2002 and 2005. Harin earned a bachelors degree in mechanical engineering from the University of Manchester Institute of Science and Technology, a masters degree in business administration with an emphasis in finance, a masters
degree in econometrics from the University of Rochester, and a Ph.D. in finance from the University of California, Irvine. He has earned the right to use the Chartered Financial Analyst® (CFA®) designation.
Vince Fioramonti, CFA
Senior Portfolio Manager, Golden Capital Equity
Vince Fioramonti
is a senior portfolio manager for the Golden Capital Equity team at Wells Fargo Asset Management (WFAM). Prior to joining the team in 2012, Vince served as a partner at Alpha Equity Management, LLC, where he managed the firms international
equity strategies and was responsible for its technology infrastructure. Before that, he worked with ING and its predecessor Aetna organizations as the lead portfolio manager for the Aetna International Fund. Vince began his career in investment
management in 1988 with Travelers Investment Management. He earned a bachelors degree in finance from the University of Dayton and a masters degree in business administration from the University of Rochester. Vince has earned the right
to use the Chartered Financial Analyst® (CFA®) designation and is a member of CFA Society North Carolina and CFA Institute.
Chris Lee, CFA
Senior Portfolio Manager, Head of Multi
Sector Fixed IncomePlus and High Yield, WFAM Global Fixed Income Chris Lee is a senior portfolio manager for the Wells Fargo Asset Management (WFAM) Multi Sector Fixed IncomePlus and High Yield team. He has served as head of high yield
trading for the WFAM U.S. High Yield Fixed Income team. In 2012, he rejoined the firm after serving as a managing director, co-portfolio manager, and head of trading for Silver Lake Credit. Preceding this, he
was a senior analyst and portfolio manager for the U.S. High Yield team. Earlier in his career, Chris served as a senior research analyst with Wells Fargos Proprietary Investment Group. He has been in the investment industry since 2001. He
earned a bachelors degree in political science from University of California, Irvine, where he graduated magna cum laude. Chris also earned a masters degree in business administration from the Graduate School of Management at the
University of California, Davis. He is a graduate of Wells Fargos Credit Management Training Program and has earned the right to use the Chartered Financial Analyst® (CFA®) designation.
Megan Miller, CFA
Portfolio Manager, Analytic Investors
Megan Miller is a
portfolio manager with the Analytic Investors team at Wells Fargo Asset Management (WFAM). She is responsible for portfolio management and trading support for derivatives-based investment strategies. Megan is involved in both research and the
portfolio construction of client portfolios. Specifically, she researches new models and ways to enhance existing models used in the investment process, develops and maintains optimization inputs and volatility forecasts, and develops and maintains
optimization frameworks used to create client portfolios. Megan joined Analytic Investors in 2008. She earned a bachelors degree in applied mathematics from the University of California, Los Angeles and a masters in business
administration with an emphasis in finance from the University of California, Berkeley. Megan has earned the right to use the Chartered Financial Analyst® (CFA®) designation.
Michael Schueller, CFA
Senior Portfolio Manager, Multi Sector Fixed IncomePlus and High Yield, WFAM Global Fixed Income Mike Schueller is a senior portfolio manager with the
Multi Sector Fixed IncomePlus and High Yield team at Wells Fargo Asset Management (WFAM). He joined WFAM as a senior investment research analyst from Strong Capital Management where he held a similar position. Mike rejoined Strong in 2000,
having left the firm to start a trust department for Community Bank & Trust in Sheboygan, WI. He first joined Strong in 1998 as associate counsel in the legal department. Prior to this, he practiced law with Reinhart, Boerner, Van Deuren,
Norris & Rieselbach, S.C. in Milwaukee, WI, specializing in corporate reorganizations, mergers and acquisitions. Mike earned a bachelors degree in economics from the University of Minnesota and a law degree from the University of
Wisconsin, Madison. He has earned the right to use the Chartered Financial Analyst® (CFA®) designation.
OTHER FUNDS AND ACCOUNTS MANAGED
The following table provides
information about the registered investment companies and other pooled investment vehicles and accounts managed by the portfolio manager of the Fund as of the Funds most recent period ended April 30, 2021.
Dennis Bein
|
|
|
|
|
|
|
|
|
|
|
|
|
I manage the following types of accounts:
|
|
Other Registered
Investment Companies
|
|
|
Other Pooled
Investment Vehicles
|
|
|
Other Accounts
|
|
Number of above accounts
|
|
|
15
|
|
|
|
14
|
|
|
|
12
|
|
Total assets of above accounts (millions)
|
|
$
|
4,758.09
|
|
|
$
|
4,808.26
|
|
|
$
|
3,495.15
|
|
performance based fee accounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
I manage the following types of accounts:
|
|
Other Registered
Investment Companies
|
|
|
Other Pooled
Investment Vehicles
|
|
|
Other Accounts
|
|
Number of above accounts
|
|
|
0
|
|
|
|
3
|
|
|
|
1
|
|
Total assets of above accounts (millions)
|
|
|
0
|
|
|
|
155.68
|
|
|
|
21.42
|
|
Justin P. Carr
|
|
|
|
|
|
|
|
|
|
|
|
|
I manage the following types of accounts:
|
|
Other Registered
Investment Companies
|
|
|
Other Pooled
Investment Vehicles
|
|
|
Other Accounts
|
|
Number of above accounts
|
|
|
4
|
|
|
|
2
|
|
|
|
25
|
|
Total assets of above accounts (millions)
|
|
$
|
1,415.40
|
|
|
$
|
386.51
|
|
|
$
|
1,031.73
|
|
performance based fee accounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
I manage the following types of accounts:
|
|
Other Registered
Investment Companies
|
|
|
Other Pooled
Investment Vehicles
|
|
|
Other Accounts
|
|
Number of above accounts
|
|
|
0
|
|
|
|
0
|
|
|
|
1
|
|
Total assets of above accounts (millions)
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
87.04
|
|
Harindra de Silva
|
|
|
|
|
|
|
|
|
|
|
|
|
I manage the following types of accounts:
|
|
Other Registered
Investment Companies
|
|
|
Other Pooled
Investment Vehicles
|
|
|
Other Accounts
|
|
Number of above accounts
|
|
|
16
|
|
|
|
16
|
|
|
|
14
|
|
Total assets of above accounts (millions)
|
|
|
5,126.70
|
|
|
|
4,939.65
|
|
|
|
3,458.82
|
|
performance based fee accounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
I manage the following types of accounts:
|
|
Other Registered
Investment Companies
|
|
|
Other Pooled
Investment Vehicles
|
|
|
Other Accounts
|
|
Number of above accounts
|
|
|
0
|
|
|
|
3
|
|
|
|
1
|
|
Total assets of above accounts (millions)
|
|
$
|
0
|
|
|
$
|
155.68
|
|
|
$
|
21.42
|
|
Vince Fioramonti
|
|
|
|
|
|
|
|
|
|
|
|
|
I manage the following types of accounts:
|
|
Other Registered
Investment Companies
|
|
|
Other Pooled
Investment Vehicles
|
|
|
Other Accounts
|
|
Number of above accounts
|
|
|
4
|
|
|
|
2
|
|
|
|
0
|
|
Total assets of above accounts (millions)
|
|
$
|
909.10
|
|
|
$
|
46.32
|
|
|
$
|
0
|
|
performance based fee accounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
I manage the following types of accounts:
|
|
Other Registered
Investment Companies
|
|
|
Other Pooled
Investment Vehicles
|
|
|
Other Accounts
|
|
Number of above accounts
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
Total assets of above accounts (millions)
|
|
$
|
0
|
|
|
$
|
00
|
|
|
$
|
|
|
Chris Lee
|
|
|
|
|
|
|
|
|
|
|
|
|
I manage the following types of accounts:
|
|
Other Registered
Investment Companies
|
|
|
Other Pooled
Investment Vehicles
|
|
|
Other Accounts
|
|
Number of above accounts
|
|
|
2
|
|
|
|
0
|
|
|
|
0
|
|
Total assets of above accounts (millions)
|
|
$
|
224.78
|
|
|
$
|
0
|
|
|
$
|
0
|
|
performance based fee accounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
I manage the following types of accounts:
|
|
Other Registered
Investment Companies
|
|
|
Other Pooled
Investment Vehicles
|
|
|
Other Accounts
|
|
Number of above accounts
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
Total assets of above accounts (millions)
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
Megan Miller
|
|
|
|
|
|
|
|
|
|
|
|
|
I manage the following types of accounts:
|
|
Other Registered
Investment Companies
|
|
|
Other Pooled
Investment Vehicles
|
|
|
Other Accounts
|
|
Number of above accounts
|
|
|
3
|
|
|
|
2
|
|
|
|
3
|
|
Total assets of above accounts (millions)
|
|
$
|
358.37
|
|
|
$
|
131.39
|
|
|
$
|
93.14
|
|
performance based fee accounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
I manage the following types of accounts:
|
|
Other Registered
Investment Companies
|
|
|
Other Pooled
Investment Vehicles
|
|
|
Other Accounts
|
|
Number of above accounts
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
Total assets of above accounts (millions)
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
Michael J. Schueller
|
|
|
|
|
|
|
|
|
|
|
|
|
I manage the following types of accounts:
|
|
Other Registered
Investment Companies
|
|
|
Other Pooled
Investment Vehicles
|
|
|
Other Accounts
|
|
Number of above accounts
|
|
|
8
|
|
|
|
2
|
|
|
|
2
|
|
Total assets of above accounts (millions)
|
|
|
6,107.72
|
|
|
|
197.02
|
|
|
|
207.47
|
|
performance based fee accounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
I manage the following types of accounts:
|
|
Other Registered
Investment Companies
|
|
|
Other Pooled
Investment Vehicles
|
|
|
Other Accounts
|
|
Number of above accounts
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
Total assets of above accounts (millions)
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
MATERIAL CONFLICTS OF INTEREST
The Portfolio Managers face inherent conflicts of interest in their day-to-day
management of the Funds and other accounts because the Funds may have different investment objectives, strategies and risk profiles than the other accounts managed by the Portfolio Managers. For instance, to the extent that the Portfolio Managers
manage accounts with different investment strategies than the Funds, they may from time to time be inclined to purchase securities, including initial public offerings, for one account but not for a Fund. Additionally, some of the accounts managed by
the Portfolio Managers may have different fee structures, including performance fees, which are or have the potential to be higher or lower, in some cases significantly higher or lower, than the fees paid by the Funds. The differences in fee
structures may provide an incentive to the Portfolio Managers to allocate more favorable trades to the higher-paying accounts.
To minimize the effects of
these inherent conflicts of interest, the Sub-Advisers have adopted and implemented policies and procedures, including brokerage and trade allocation policies and procedures, that they believe address the
potential conflicts associated with managing portfolios for multiple clients and ensure that all clients are treated fairly and equitably. Additionally, some of the Sub-Advisers minimize inherent conflicts of
interest by assigning the Portfolio Managers to accounts having similar objectives. Accordingly, security block purchases are allocated to all accounts with similar objectives in proportionate weightings. Furthermore, the Sub-Advisers have adopted a Code of Ethics under Rule 17j-1 of the 1940 Act and Rule 204A-1 under the Investment Advisers Act of 1940
(the Advisers Act) to address potential conflicts associated with managing the Funds and any personal accounts the Portfolio Managers may maintain.
Wells Capital Management
Wells Capital Managements Portfolio Managers often provide investment management for separate accounts advised in the same or similar investment style as
that provided to mutual funds. While management of multiple accounts could potentially lead to conflicts of interest over various issues such as trade allocation, fee disparities and research acquisition, Wells Capital Management has implemented
policies and procedures for the express purpose of ensuring that clients are treated fairly and that potential conflicts of interest are minimized.
COMPENSATION
The Portfolio Managers were compensated by their
employing sub-adviser from the fees the Adviser paid the Sub-Adviser using the following compensation structure:
Wells Capital Management Compensation. The compensation structure for Wells Capital Managements Portfolio Managers includes a competitive fixed
base salary plus variable incentives (Wells Capital Management utilizes investment management compensation surveys as confirmation). Incentive bonuses are typically tied to pretax relative investment performance of all accounts under his or her
management within acceptable risk parameters. Relative investment performance is generally evaluated for 1, 3, and 5 year performance results, with a predominant weighting on the 3- and 5- year time periods, versus the relevant benchmarks and/or peer groups consistent with the investment style. This evaluation takes into account relative performance of the accounts to each accounts individual
benchmark and/or the relative composite performance of all accounts to one or more relevant benchmarks consistent with the overall investment style. In the case of each Fund, the benchmark(s) against which the performance of the Funds
portfolio may be compared for these purposes generally are indicated in the Performance sections of the Prospectuses.
BENEFICIAL OWNERSHIP OF THE
FUND
The following table shows for each Portfolio Manager the dollar value of the Fund beneficially owned by the Portfolio Manager as of April 30,
2021:
|
|
|
Dennis Bein
|
|
None
|
Justin P. Carr
|
|
None
|
Harindra de Silva
|
|
None
|
Vince Fioramonti
|
|
None
|
Chris Lee
|
|
$50,001-$100,000
|
Megan Miller
|
|
None
|
Michael Schueller
|
|
None
|
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMEENT
INVESTMENT COMPANY AND AFFILIATED PURCHASERS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period
|
|
(a) Total
Number
of Shares
Purchased
|
|
|
(b)
Average
Price
Paid per
Share
|
|
|
(c) Total
Number of
Shares
Purchased as
Part of Publicly
Announced
Plans or
Programs
|
|
|
(d) Maximum
Number of
Shares that May
Yet Be Purchased
Under the Plans
or Programs
|
|
11/1/2020 to 11/30/2020
|
|
|
125,162
|
|
|
|
4.34
|
|
|
|
125,162
|
|
|
|
3,958,010
|
|
12/1/2020 to 12/31/2020
|
|
|
120,953
|
|
|
|
4.83
|
|
|
|
120,953
|
|
|
|
3,837,057
|
|
1/1/2021 to 1/31/2021
|
|
|
59,499
|
|
|
|
4.96
|
|
|
|
59,499
|
|
|
|
4,280,968
|
|
2/1/2021 to 2/28/2021
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
4,280,968
|
|
3/1/2021 to 3/31/2021
|
|
|
54,433
|
|
|
|
5.12
|
|
|
|
54,433
|
|
|
|
4,226,535
|
|
4/1/2021 to 4/30/2021
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
|
4,226,535
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
360,047
|
|
|
|
4.72
|
|
|
|
360,047
|
|
|
|
4,226,535
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
On November 17, 2020, the Fund announced a renewal of its open-market share repurchase program (the
Buyback Program). Under the renewed Buyback Program, the Fund may repurchase up to 10% of its outstanding shares in open market transactions during the period beginning on January 1, 2021 and ending on
December 31, 2021. The Funds Board of Trustees has delegated to Wells Fargo Funds Management, LLC, the Funds adviser, discretion to administer the Buyback Program, including the determination of the amount and timing of repurchases
in accordance with the best interests of the Fund and subject to applicable legal limitations.
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 registrants Board of
Trustees that have been implemented since the registrants 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 Global Dividend Opportunity Fund 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 registrants 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 registrants 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 Global Dividend Opportunity Fund
|
|
|
By:
|
|
|
|
|
/s/ Andrew Owen
|
|
|
|
|
Andrew Owen
|
|
|
President
|
|
|
Date:
|
|
June 25, 2021
|
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of
1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the date indicated.
|
|
|
Wells Fargo Global Dividend Opportunity Fund
|
|
|
By:
|
|
|
|
|
/s/ Andrew Owen
|
|
|
|
|
Andrew Owen
President
|
|
|
Date:
|
|
June 25, 2021
|
|
|
By:
|
|
|
|
|
/s/ Jeremy DePalma
|
|
|
|
|
Jeremy DePalma
Treasurer
|
|
|
Date:
|
|
June 25, 2021
|
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