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FEATURED INSIGHTS Market Optics Visualizing data to power decision-making Third quarter 2021 All data as of 9/30/2021 unless otherwise indicated. Wells Fargo Asset Management is a trade name used by certain asset management businesses of Wells Fargo & Company. INVESTMENT PRODUCTS: NOT FDIC INSURED – NO BANK GUARANTEE – MAY LOSE VALUE WFAM PAR-0921-01096 Market Optics 3Q2021 1
Global economy: Growth and inflation comparison
Latest GDP growth Consensus growth four quarters ahead
• Growth in the second quarter was 25 23.6
outstanding but then slowed in 20.1 19.6 19.3
20
the third quarter. The slowing was
Year-over-year growth (%)
likely due to caution by 15 14.3
12.2 12.4
households from the delta variant
10
and lingering supply chain issues. 7.6 7.9
5.5 6.0
We expect we could see a decent 5
2.4 2.9 2.8 2.5 2.4
re-acceleration of activity in the 1.3 1.9
fourth quarter. 0
U.S. Eurozone U.K. Japan China India Mexico Brazil South
Africa
• Growth momentum could spread
Latest inflation Consensus inflation four quarters ahead
globally helping to broaden the 12
economic recovery. 10 9.7
Year-over-year inflation (%)
8
• Inflation has been higher than
6 5.3 5.3 5.6
many feared, but we should get 4.8 4.8 4.9
3.8 4.1
3.7
more clarity over the fourth 4 3.4
2.3 2.2
quarter about exactly how 2 1.3
1.8
0.8
0.4
“transitory” inflation is as supply 0
chains recover. -2
-0.4
U.S. Eurozone U.K. Japan China India Mexico Brazil South
Africa
Sources: WFAM and Bloomberg. Consensus is from the Bloomberg survey. Data as of 9/30/2021.
Market Optics 3Q2021 WELLS FARGO ASSET MANAGEMENT | 2
Global economy: Monetary policy
• Crisis policies are slowly coming to an end. The Bank of England said it is ready to hike if the
economy continues to grow rapidly and inflationary pressures persist. The Federal Reserve has teed-
up tapering to start this year.
• Considering the supply chain issues, the choppy start-stop of the service sector recovery, and the
off-again on-again restrictions on activity, central bank policymakers are likely to err on the side of
being too slow to remove stimulus than too fast.
• Policy divergences could lead to large market divergences as well.
Federal Reserve European Central Bank Bank of Japan Policy rates
140
132.9 Mexico 0.50
4.75
Russia 2.50
120
South Africa 0.00
3.50
100 4.25
Brazil
Balance sheet as % of GDP
India 0.00
80 3.35
South Korea 0.25
69.7 0.75
60 China 0.00
4.35
Canada 0.00
0.25
40 37.8
Australia -0.15
0.10
United Kingdom 0.00
20 0.10
Eurozone 0.00
0.00
0 Japan 0.00
-0.10
9/1/2000
9/1/2001
9/1/2002
9/1/2003
9/1/2004
9/1/2005
9/1/2006
9/1/2007
9/1/2008
9/1/2009
9/1/2010
9/1/2011
9/1/2012
9/1/2013
9/1/2014
9/1/2015
9/1/2016
9/1/2017
9/1/2018
9/1/2019
9/1/2020
9/1/2021
United States 0.00
0.25
-4 -2 0 2 4 6
Change from 1 year ago (percentage point) Latest policy rate (%)
Sources: WFAM and Bloomberg. Based on monthly data from December 1999. Data as of 9/30/2021.
Market Optics 3Q2021 WELLS FARGO ASSET MANAGEMENT | 3Global economy: Fiscal policy
• With the COVID-19 crisis (hopefully) mostly behind us, fiscal policy is set to become less
accommodative over the next few years.
• The costs of debt are still low, but the bills will eventually need to get paid through faster growth, higher
taxes, or lower spending in the future. We could see a couple of years of well-above-trend growth as
economies reopen and we could even see trend growth inch higher with a capital spending spree by
businesses and governments that can improve productivity. We’re also already seeing proposals for
higher taxes, like in the U.K. and the U.S. with a variety of corporate and individual tax rate changes.
300 20
250 15
⬤ Deficit-to-GDP (%)
200 10
Debt-to-GDP (%)
150 5
100 0
50 (5)
0 (10)
Sources: WFAM and Bloomberg. Data as of 9/30/2021.
Market Optics 3Q2021 WELLS FARGO ASSET MANAGEMENT | 4Fixed income: Global yield curves
Yields curves remain flat in Q3
• Aggressive action by central banks around the world have pinned the front end of most yield curves at very low points.
• Faster economic growth coupled with higher inflation estimates sent sovereign yields higher in early 2021. After
moderating in the second quarter, U.S. Treasury yields rose late in the third quarter.
• Front-end rates have remained very low and curves have remained relatively flat.
3.0
2.5
2.0
1.5
Yield (%)
1.0
0.5
U.S.
0.0
Japan
-0.5
Eurozone
-1.0
1 5 10 15 20 30
Years to maturity
Source: Bloomberg. Data as of 9/30/2021.
Market Optics 3Q2021 WELLS FARGO ASSET MANAGEMENT | 5Fixed income: Spreads
Spreads remain extremely tight
• Most credit sector spreads are near their decade lows, with several sectors tightening to new post–great financial
crisis lows during the quarter, offering less incremental compensation for bearing risk.
• Sectors offering higher levels of spread, such as high-yield bonds, have delivered positive total returns year to date
despite the rise in Treasury yields.
• The rise in yields has caused more rate-sensitive sectors to deliver negative returns thus far in 2021.
Bloomberg indexes*
12
10
Option adjusted spread
8
6
4
2
0
U.S. High Yield Eurozone High Emerging MarketsU.S. Taxable Munis U.S. Investment Eurozone U.S. Commercial U.S. Asset Backed U.S. Mortgage
Yield U.S. Dollar Grade Investment Grade Mortgage Backed Securities Backed Securities
Securities
10-year high 10-year median 10-year low 3/31/2021
9/30/2021
Sources: Bloomberg and WFAM. Data as of 9/30/2021. Calculations are based on daily data over the trailing 10 years.
*Indexes are for the Bloomberg indexes as follows: U.S. high yield: U.S. Corporate High Yield Bond Index; Eurozone high yield: Pan-European Aggregate Index; Emerging markets (USD): Emerging Markets Hard Currency Aggregate
Index; U.S. taxable munis: Municipal Bond Index; U.S. investment grade: U.S. Aggregate Credit; Eurozone investment grade: Euro-Aggregate Corporates Index; U.S. commercial mortgage-backed securities (CMBS): U.S. Aggregate
CMBS Index; U.S. asset-backed securities (ABS): U.S. Aggregate ABS Index; U.S. mortgage-backed securities (MBS): MBS Conventional 30-Year Average.
Market Optics 3Q2021 WELLS FARGO ASSET MANAGEMENT | 6Fixed income: Municipal bonds
Strong demand pressures municipal yields lower
• Municipal bond yields have fallen year to date unlike U.S. Treasuries, supported by continued strong demand.
• Municipal-to-Treasury yield ratios have fallen, reaching historically low levels in 2021.
• The passage of the American Rescue Plan Act will provide additional stimulus to many municipalities. Even with this
additional support, thoughtful credit research and careful security selection will be key to driving total returns in 2021.
4
Muni-to-Treasury ratio standard deviations from
2
20-year average
0
-2
-4
2-year deviation 10-year deviation 30-year deviation
Source: Bloomberg, daily data over the past 20 years from the generic U.S. Treasury yields and the Bloomberg benchmark for tax-exempt AAA-rated municipal bonds. Data as of 9/30/2021.
Market Optics 3Q2021 WELLS FARGO ASSET MANAGEMENT | 7Equities: Relative returns
Investors pivot back to growth Performance Summary
• Shrugging off the sell-off to start the year, investors rotated back into growth due to concerns around Trailing
Index 1Q21 1 year
delta-variant-induced risks to the economy. This growth movement was especially pervasive in the large-
Russell 1000 0.21 30.96
cap space.
Russell 2000 -4.36 47.68
• After strong performance in Q3, small-cap stocks struggled in the most recent period. The Russell 2000
Russell 3000 Value -0.93 36.64
Index fell by over 4%.
Russell 3000 Growth 0.69 27.57
• Although emerging markets have outperformed non-U.S. developed markets for most of the past decade,
emerging markets have significantly underperformed in 2021 largely due to the impact of the delta variant MSCI EAFE (USD) -0.45 25.73
and continued noise of capital market issues in China. MSCI EM (USD) -8.09 18.20
250
200
Cumulative outperformance (%)
150
100
50
0
4/1/1981
4/1/1982
4/1/1983
4/1/1984
4/1/1985
4/1/1986
4/1/1987
4/1/1988
4/1/1989
4/1/1990
4/1/1991
4/1/1992
4/1/1993
4/1/1994
4/1/1995
4/1/1996
4/1/1997
4/1/1998
4/1/1999
4/1/2000
4/1/2001
4/1/2002
4/1/2003
4/1/2004
4/1/2005
4/1/2006
4/1/2007
4/1/2008
4/1/2009
4/1/2010
4/1/2011
4/1/2012
4/1/2013
4/1/2014
4/1/2015
4/1/2016
4/1/2017
4/1/2018
4/1/2019
4/1/2020
4/1/2021
U.S. recession Russell 2000/Russell 1000 Russell 3000 Value/Russell 3000 Growth Russell 1000/MSCI EAFE MSCI EAFE/MSCI EM
Source: Bloomberg. Data as of 9/30/2021. Chart (lower): Monthly data from February 1981. Summary table reflects the performance of each index for both the second quarter of 2021 and the trailing one year.
Market Optics 3Q2021 WELLS FARGO ASSET MANAGEMENT | 8Equities: Relative multiples
Market-multiple dislocations present opportunities
• With the relative underperformance by small caps since March, the valuation gap of U.S. small caps relative to U.S.
large-cap equities continues to widen.
• U.S. equities remain expensive compared with developed non-U.S. equities.
• Emerging markets are looking more inexpensive to developed non-U.S. markets.
4
3
Ratio of price-to-earnings where earnings are trailing
2
10-year average inflation adjusted
1
0
-1
-2
-3
5/1/2002
5/1/2003
5/1/2004
5/1/2005
5/1/2006
5/1/2007
5/1/2008
5/1/2009
5/1/2010
5/1/2011
5/1/2012
5/1/2013
5/1/2014
5/1/2015
5/1/2016
5/1/2017
5/1/2018
5/1/2019
5/1/2020
5/1/2021
11/1/2001
11/1/2002
11/1/2003
11/1/2004
11/1/2005
11/1/2006
11/1/2007
11/1/2008
11/1/2009
11/1/2010
11/1/2011
11/1/2012
11/1/2013
11/1/2014
11/1/2015
11/1/2016
11/1/2017
11/1/2018
11/1/2019
11/1/2020
U.S. recession Russell 2000/Russell 1000 Russell 3000 Value/Russell 3000 Growth Russell 1000/MSCI EAFE MSCI EAFE/MSCI EM
Source: Bloomberg. Data as of 6/30/2020. Monthly data from February 2001.
Market Optics 3Q2021 WELLS FARGO ASSET MANAGEMENT | 9Equities: Earnings growth
Earnings trends help explain past returns Russell Russell MSCI MSCI
Russell Russell
3000 3000 EAFE EM
• Within the U.S., price-to-earnings multiples 1000 2000
Value Growth (USD) (USD)
remain at some of the highest levels over the Trailing 12 month EPS as of
89.80 (5.13) 89.00 51.75 119.93 80.59
09/30/2021
past 25 years.
Price as of 09/30/2021 2,418.16 2,204.37 2,038.66 2,203.98 2,281.29 1,253.10
• As value and small-cap stock earnings continue Price-to-earnings based on trailing 12
26.93 0.00 22.91 42.59 19.02 15.55
to improve back to 2019 levels, current month earnings per share
valuations will look less overextended. Percent rank since 1995 87% NA 91% 91% 49% 72%
Maximum earnings per share since
• Developed non-U.S. and emerging market 1995
90.16 43.88 100.65 53.71 152.79 94.14
valuations are reasonable and even a little Price-to-earnings based on trailing
26.82 50.24 20.25 41.03 14.93 13.31
maximum earnings per share
cheap by most measures. Hypothetical percent rank since 1995 86% 82% 73% 89% 16% 42%
2.0
1.5
Trailing 12-month EPS indexed to 1.0 at
1.0
0.5
0.0
December 2019
-0.5
-1.0
-1.5
-2.0
-2.5
-3.0
-3.5
7/1/2002
5/1/2003
3/1/2004
8/1/2004
1/1/2005
6/1/2005
4/1/2006
9/1/2006
2/1/2007
7/1/2007
5/1/2008
3/1/2009
8/1/2009
1/1/2010
6/1/2010
4/1/2011
9/1/2011
2/1/2012
7/1/2012
5/1/2013
3/1/2014
8/1/2014
1/1/2015
6/1/2015
4/1/2016
9/1/2016
2/1/2017
7/1/2017
5/1/2018
3/1/2019
8/1/2019
1/1/2020
6/1/2020
4/1/2021
12/1/2002
10/1/2003
11/1/2005
12/1/2007
10/1/2008
11/1/2010
12/1/2012
10/1/2013
11/1/2015
12/1/2017
10/1/2018
11/1/2020
U.S. recession Russell 1000 Russell 2000 Russell 3000 Value Russell 3000 Growth MSCI EAFE (USD) MSCI EM (USD)
Source: Bloomberg. Data as of 9/30/2021. Top: Table shows monthly data from January 1995. Bottom: Chart shows data from January 2002.
*This measure is hypothetical as it represents the current price divided by the maximum trailing earnings to show what that would look like within the distribution of historical price-to-earnings.
Market Optics 3Q2021 WELLS FARGO ASSET MANAGEMENT | 10Equities: Value, growth, and yields
Lower Treasury yields have probably contributed to growth’s prior outperformance over value
• Growth equities typically have longer-dated cash flows as the basis for their valuations, so lower yields make those
cash flows more valuable. Lower yields coincided with the growth style outperforming the value style in 2020 and
again in the second and third quarters of 2021.
6.0 1.8
5.0 1.5
Ratio of S&P 500 Value to S&P 500 Growth
4.0 1.2
10-year Treasury yield (%)
3.0 0.9
2.0 0.6
1.0 0.3
0.0 0.0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
10-year Treasury (left) Value/growth (right)
Source: Bloomberg. Data as of 9/30/2021. Monthly data from February 2001.
Market Optics 3Q2021 WELLS FARGO ASSET MANAGEMENT | 11Diversification and factors
14
Annualized average monthly return (%)
Working over time, not 12
100% S&P 500
necessarily all of the time 10
Index
60% S&P 500 Low Volatility/
• Investing in factors is about 40% Bloomberg U.S. Aggregate
8 Bond Index 60% S&P 500 Pure Value/
trying to improve the ride 40% Bloomberg U.S.
100% Bloomberg U.S.
over long periods of time. 6
Aggregate Bond Index 60% S&P 500/ Aggregate Bond Index
40% Bloomberg U.S.
They come in and out of favor. 4 Aggregate Bond Index
2
• Diversification is about trying
0
to improve risk-adjusted 0 2 4 6 8 10 12 14 16
returns, not trying to shoot Annualized standard deviation of monthly returns (%)
6.5
the lights out with the highest 6.0
returns all of the time. The 5.5
Growth of a dollar ($)
5.0
longer perspective shows that 4.5
4.0
diversification and a bias 3.5
3.0
toward some factors have 2.5
2.0
improved risk-adjusted 1.5
returns. 1.0
0.5
0.0
100% Bloomberg U.S. Aggregate Bond Index
100% S&P 500 Index
60% S&P 500/40% Bloomberg U.S. Aggregate Bond Index
60% S&P 500 Pure Value/40% Bloomberg U.S. Aggregate Bond Index
60% S&P 500 Low Volatility/40% Bloomberg U.S. Aggregate Bond Index
Source: Bloomberg. Data as of 9/30/2021. Monthly data from February 2001. Factors, in this context, are features of companies.
Market Optics 3Q2021 WELLS FARGO ASSET MANAGEMENT | 12Index definitions
Bloomberg U.S. Aggregate ABS Index Bloomberg U.S. Aggregate CMBS Index
The Bloomberg Asset-Backed Securities (ABS) Index is the ABS component of the Bloomberg U.S. The Bloomberg U.S. Aggregate CMBS Index tracks commercial mortgage-backed securities issued
Aggregate Index. The index includes pass-through, bullet, and controlled amortization structures. both by agencies of the federal government and those issued by non-agencies. The index is
The ABS Index includes only the senior class of each ABS issue and the ERISA-eligible B and C market-cap weighted. You cannot invest directly in an index.
tranche. You cannot invest directly in an index.
Bloomberg U.S. Aggregate Credit Index
Bloomberg Emerging Markets Hard Currency (USD) Aggregate Index The Bloomberg U.S. Aggregate Credit Index is an unmanaged market-value-weighted index of
The Bloomberg Emerging Markets Hard Currency Aggregate Index is a flagship hard currency investment-grade corporate fixed-rate debt issues with maturities of one year or more. You cannot
emerging market (EM) debt benchmark that includes U.S.-dollar-denominated debt from invest directly in an index.
sovereign, quasi-sovereign, and corporate EM issuers. You cannot invest directly in an index.
Bloomberg U.S. Corporate High Yield Bond Index
Bloomberg Euro-Aggregate: Corporates Index The Bloomberg U.S. Corporate High Yield Bond Index is an unmanaged, U.S.-dollar-denominated,
The Bloomberg Euro-Aggregate: Corporates Index measures the corporate component of the nonconvertible, non-investment-grade debt index. The index consists of domestic corporate bonds
Euro-Aggregate Index. It includes investment-grade, euro-denominated, fixed-rate securities. The rated Ba and below with a minimum outstanding amount of $150 million. You cannot invest
Bloomberg Euro-Aggregate Index is a benchmark that measures the investment-grade, euro- directly in an index.
denominated, fixed-rate bond market, including Treasuries, government-related, corporate, and
securitized issues. Inclusion is based on currency denomination of a bond and not country of risk of Bloomberg U.S. Securitized Index (ABS/MBS/CMBS)
the issuer. It is a market-cap-weighted index. You cannot invest directly in an index. The Bloomberg U.S. Securitized Index is an unmanaged composite of asset-backed securities,
collateralized mortgage-backed securities (ERISA-eligible), and fixed-rate mortgage-backed
Bloomberg Euro High Yield Index securities. You cannot invest directly in an index.
The Bloomberg Euro High Yield Index measures the market of non-investment-grade, fixed-rate
corporate bonds denominated in euros. Inclusion is based on the currency of issue, not the domicile Bloomberg Benchmark for tax-exempt AAA-rated municipal bonds
of the issuer. The index excludes emerging market debt. You cannot invest directly in an index. The Bloomberg Benchmark for tax-exempt AAA-rated municipal bonds Is a market-cap-weighted
measure of the yield from high-quality U.S. municipal bonds with an average rating of AAA from
Bloomberg MBS Conventional 30-Year Average Index Moody’s and S&P.
The Bloomberg MBS Conventional 30-Year Average Index Is an unmanaged index that tracks
agency mortgage-backed pass-through securities (both fixed-rate and hybrid ARM) guaranteed by MSCI EAFE Index (USD)
GNMA, FNMA, and FHLM for mortgages with 30 years to maturity. You cannot invest directly in an The Morgan Stanley Capital International (MSCI) Europe, Australasia, Far East (EAFE) Index is a
index. free-float-adjusted market-capitalization-weighted index that is designed to measure the equity
market performance of developed markets, excluding the U.S. and Canada, when translated into
Bloomberg Municipal Bond Index U.S. dollars. You cannot invest directly in an index.
The Bloomberg Municipal Bond Index is an unmanaged index composed of long-term taxable
municipal bonds with a minimum credit rating of Baa. You cannot invest directly in an index. MSCI Emerging Markets Index (USD)
The Morgan Stanley Capital International (MSCI) Emerging Markets Index is a free-float-adjusted
Bloomberg Pan-European Aggregate Index market-capitalization-weighted index that is designed to measure the equity market performance
The Bloomberg Pan-European Aggregate Index tracks fixed-rate, investment-grade securities of emerging markets when translated into U.S. dollars. You cannot invest directly in an index.
issued in the following European currencies: euro, British pound, Norwegian krone, Danish krone,
Swedish krona, Czech koruna, Hungarian forint, Polish zloty, and Slovak koruna. You cannot invest For MSCI index data: MSCI makes no express or implied warranties or representations and
directly in an index. shall have no liability whatsoever with respect to any MSCI data contained herein. The
MSCI data may not be further redistributed or used as a basis for other indexes or any
Bloomberg U.S. Aggregate Bond Index securities or financial products. This report is not approved, reviewed, or produced by
The Bloomberg U.S. Aggregate Bond Index measures the performance of the U.S. investment- MSCI.
grade, fixed-rate bond markets. You cannot invest directly in an index.
Price/earnings (P/E)
P/E is the price of a share of a stock divided by EPS, usually calculated using the latest year’s
earnings.
Market Optics 3Q2021 WELLS FARGO ASSET MANAGEMENT | 13Index definitions (continued) Russell 1000® Index The Russell 1000® Index measures the performance of the 1,000 largest companies in the Russell 3000® Index, which represents approximately 92% of the total market capitalization of the Russell 3000 Index. You cannot invest directly in an index. Russell 2000® Index The Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000® Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index. You cannot invest directly in an index. Russell 3000® Growth Index The Russell 3000® Growth Index measures the performance of those Russell 3000® Index companies with higher price/book ratios and higher forecasted growth values. You cannot invest directly in an index. Russell 3000® Value Index The Russell 3000® Value Index measures the performance of those Russell 3000® Index companies with lower price/book ratios and lower forecasted growth values. You cannot invest directly in an index. Standard & Poor's 500 Index (S&P 500 Index) 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. Standard & Poor's 500 Low Volatility Index (S&P 500 Low Volatility Index) The S&P 500 Low Volatility Index consists of 100 stocks chosen from the S&P 500 Index that have the lowest trailing 252-day return volatility. 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. Standard & Poor's 500 Pure Growth Index (S&P 500 Pure Growth Index) The S&P 500 Pure Growth Index consists of stocks in the S&P 500 Index chosen for their growth characteristics as defined by the index committee. 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. Standard & Poor's 500 Pure Value Index (S&P 500 Pure Value Index) The S&P 500 Pure Value Index consists of stocks in the S&P 500 Index chosen for their value characteristics as defined by the index committee. 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. Market Optics 3Q2021 WELLS FARGO ASSET MANAGEMENT | 14
Disclosures All investing involves risks, including the possible loss of principal. There can be no assurance that any investment strategy will be successful. Investments fluctuate with changes in market and economic conditions and in different environments due to numerous factors, some of which may be unpredictable. Each asset class has its own risk and return characteristics. Diversification does not ensure or guarantee better performance and cannot eliminate the risk of investment losses. The ratings indicated are from Standard & Poor’s, Moody’s Investors Service, and/or Fitch Ratings Ltd. Credit-quality ratings: Credit-quality ratings apply to underlying holdings of the fund and not the fund itself. Standard & Poor's rates the creditworthiness of bonds 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. Moody’s rates the creditworthiness of bonds 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. Fitch rates the creditworthiness of bonds from AAA (highest) to D (lowest). All flag icons made by Freepik at flaticon.com. The views expressed and any forward-looking statements are as of September 30, 2021, and are those of the authors and/or Wells Fargo Asset Management. The information and statistics in this report have been obtained from sources we believe to be reliable but are not guaranteed by us to be accurate or complete. Any and all earnings, projections, and estimates assume certain conditions and industry developments, which are subject to change. The opinions stated are those of the author and are not intended to be used as investment advice. Discussions of individual securities or the markets generally are not intended as individual recommendations. The views and any forward-looking statements are subject to change at any time in response to changing circumstances in the market and are not intended to predict or guarantee the future performance of any individual security, market sector or the markets generally, or any mutual fund. Wells Fargo Asset Management disclaims any obligation to publicly update or revise any views expressed or forward-looking statements. 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, LLC. 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). INVESTMENT PRODUCTS: NOT FDIC INSURED – NO BANK GUARANTEE – MAY LOSE VALUE PAR-0921-01096 Market Optics 3Q2021 WELLS FARGO ASSET MANAGEMENT | 15
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