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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-CSRS

 

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-21331

 

 

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)

 

 

C. David Messman

Wells Fargo Funds Management, LLC

525 Market St., San Francisco, CA 94105

(Name and address of agent for service)

 

 

Registrant’s telephone number, including area code: 800-222-8222

Date of fiscal year end: October 31

Date of reporting period: April 30, 2016

 

 

 

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ITEM 1.

REPORT TO STOCKHOLDERS

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Semi-Annual Report

April 30, 2016

 

 

Wells Fargo

Global Dividend Opportunity Fund (EOD)

 

 

 

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Contents

 

 

 

Letter to shareholders			2
Performance highlights			4
Portfolio of investments			7
Financial statements
Statement of assets and liabilities			11
Statement of operations			12
Statement of changes in net assets			13
Financial highlights			14
Notes to financial statements			15
Other information			21
Automatic dividend reinvestment plan			24
List of abbreviations			25

 

The views expressed and any forward-looking statements are as of April 30, 2016, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements. The views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

 

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2		Wells Fargo Global Dividend Opportunity Fund		Letter to shareholders (unaudited)

 

 

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 S&P 500 Utilities Index is a market-value-weighted index that measures the performance of all stocks within the utilities sector of the S&P 500 Index. You cannot invest directly in an index.

 

3

The Morgan Stanley Capital International (MSCI) Europe, Australasia, Far East (EAFE) Index (Net) is a 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. The MSCI EAFE Index (Net) consists of the following 21 developed markets country indexes: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. You cannot invest directly in an index.

 

4

The MSCI Emerging Markets (EM) Index (Net) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of emerging markets. The MSCI EM Index consists of the following 23 emerging markets country indexes: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, the Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey, and United Arab Emirates. You cannot invest directly in an index.

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Letter to shareholders (unaudited)		Wells Fargo Global Dividend Opportunity Fund			3

Central-bank policies demonstrate resolve to reignite global economic growth.

As the end of 2015 approached, investors did take some reassurance from the decision of the European Central Bank (ECB) to push the deposit interest rate further into negative territory. Negative interest rates are intended to encourage banks to lend assets held in reserve rather than keep them on deposit, which could help spark business activity. The ECB also expanded and extended its bond-buying program, which has helped inject liquidity into the markets and encourage investment. As anticipated, the Fed announced the long-awaited increase to the federal funds rate and suggested it planned to pursue additional increases in 2016. In January, the Bank of Japan followed the ECB’s lead by setting a negative deposit rate.

The Fed acknowledged that risks to global growth existed and indicated it would base further rate increases on data indicating the risks were being successfully addressed. Counterbalancing the accommodation of central banks were industrial production slowdowns stemming from plant closures in China due to elevated air pollution levels, the lack of further accommodative action by the ECB in January, and fresh declines in oil prices. Stocks worldwide entered correction territory once more.

In February, investors reacted positively when measurements of manufacturing activity in Japan, the U.S., and China indicated growth. The PBOC reduced reserve ratios in February, which encouraged banks to increase lending. Investors also were favorably influenced by further accommodation by the ECB in March when the bank pushed negative interest rates lower, ratcheting up pressure on banks to lend; expanded its bond-buying program once again; and took steps to further ease costs for borrowers.

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,

 

Karla M. Rabusch

President

Wells Fargo Funds

 

Notice to shareholders

On December 17, 2015, the Fund announced an open-market share repurchase program (the “Buyback Program”). Under the Buyback Program, the Fund may repurchase up to 10% of its outstanding shares within one year of December 17, 2015. The Fund’s Board of Trustees has delegated to Wells Fargo Funds Management, LLC, the Fund’s adviser, 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.

 

For further information about your Fund, contact your investment professional, visit our website at wellsfargofunds.com, or call us directly at 1-800-222-8222. We are available 24 hours a day, 7 days a week.

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4		Wells Fargo Global Dividend Opportunity Fund		Performance highlights (unaudited)

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 indexes. 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 indexes 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’s dividend capture strategy may lead to a similar result. Dividend capture strategies involve the Fund purchasing a stock before an ex-dividend date so it becomes entitled to the dividend and then typically selling the stock on or after the stock’s ex-dividend date. Any decline in the value of the stock reflecting the dividend payment may over time lead to a decline in the net asset value of the Fund. Dividend capture also increases the portfolio turnover rate and related transaction costs of the Fund. 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. 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. High-yield, lower-rated bonds may contain more risk due to the increased possibility of default. Illiquid securities may be subject to wide fluctuations in market value. The Fund may be subject to significant delays in disposing of illiquid securities. Accordingly, the Fund may be forced to sell these securities at less than fair market value or may not be able to sell them when the adviser or subadviser believes that it is desirable to do so. This closed-end fund is no longer offered as an initial public offering and is only available through broker/dealers on the secondary market. A closed-end fund is not required to buy its shares back from investors upon request.

 

 

1

Total returns based on market value are calculated assuming a purchase of common stock on the first day and 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 end of 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	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.

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Performance highlights (unaudited)		Wells Fargo Global Dividend Opportunity Fund			5

MANAGERS’ DISCUSSION

The Fund’s return based on market value was 0.81% during the six-month period that ended April 30, 2016. During the same period, the Fund’s return based on its net asset value was -0.74%. The Fund underperformed relative to a blended index (consisting of 65% Morgan Stanley Capital International (MSCI) All Country World Index (ACWI) Index (Net)³ and 35% BofA Merrill Lynch Core Fixed Rate Preferred Securities Index⁴) which gained 1.00%.

Overview

During the period, the Fund’s allocation to preferred stock was somewhat lower than is typical. On average, the Fund had a greater foreign exposure than domestic, primarily due to European investments.

The U.S. economy continued to grow during the period and remained stronger than the weak economies of Europe and Japan. U.S. unemployment is declining and now stands below 5%, which looks healthy, but labor force participation has fallen to levels last seen in the 1970s. Job growth remains depressed in the U.S., stuck at or below 200,000 per month. After several years of near-depression, economic growth in Europe and Japan remains elusive despite massive monetary stimulus. The Fund maintained significant exposure to European equities in anticipation of a nascent economic recovery that remains elusive.

During the half year, we initiated positions in ITV plc; InterContinental Hotels Group PLC; and CenturyLink, Incorporated. We sold positions in Endurance Specialty Holdings Limited, Enbridge Incorporated, Veresen Incorporated, and Vanguard Natural Resources LLC preferred shares. We added to an existing position in Spark Energy Incorporated and reduced holdings of Jernigan Capital Incorporated, Pennon Group plc, United Utilities Group PLC, SSE plc, Enel S.p.A., and Northstar Realty Finance Corporation.

 

 

 

 

3

The Morgan Stanley Capital International (MSCI) All Country World Index (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. The index consists of 46 country indexes comprising 23 developed and 23 emerging market country indexes. The developed market country indexes included are: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom and the United States. The emerging market country indexes included are: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates. You cannot invest directly in an index.

 

4

The BofA Merrill Lynch Core Fixed Rate Preferred Securities Index tracks the performance of fixed rate U.S. dollar denominated preferred securities issued in the U.S. domestic market. Qualifying securities must have an investment grade rating (based on an average of Moody’s, S&P 500, and Fitch) and must have an investment grade rated country of risk (based on an average of Moody’s, S&P 500, and Fitch foreign currency long term sovereign debt ratings). In addition, qualifying securities must be issued as public securities or through a 144A filing, must be issued in $25, $50, or $100 par/liquidation preference increments, must have a fixed coupon or dividend schedule and must have a minimum amount outstanding of $100 million. Fixed-to-floating rate securities also qualify provided they are callable within the fixed rate period and are at least one year from the last call prior to the date the bond transitions from a fixed to a floating rate security. You cannot invest directly in an index.

 

5	The ten largest holdings, excluding cash and cash equivalents, are calculated based on the value of the securities divided by total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

 

6	Amounts are subject to change and are calculated based on the total long-term investments of the Fund. These amounts are subject to change and may have changed since the date specified.

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6		Wells Fargo Global Dividend Opportunity Fund		Performance highlights (unaudited)

  

 

 

since its initial public offering (IPO), and Preferred Apartment Communities Incorporated.

Detractors from performance

Energy-sensitive holdings lagged during the past six months. Other performance detractors included Vivendi, a French media company, and four REITs: Jernigan Capital Incorporated, Northstar Realty Finance Corporation, Chatham Lodging Trust, and Summit Hotel Properties Incorporated.

The portfolio’s options overlay strategy did not have much effect on Fund performance during the period. In order to mitigate the adverse impact of sharp swings in the prices of financial assets during a volatile period, the portfolio management team limited the number of options it wrote. The team found opportunities to write options on a few select markets in Europe and Asia, which generated a modest amount of premium income that was offset by a loss related to a position in Japan.

Outlook

We are now seeing what appears to be a modest but reasonably solid economic recovery in the U.S. While stronger economic growth will be positive for the economy and for equity investors, stronger economic growth may also eventually result in rising interest rates as monetary stimulus is withdrawn, and this would be a headwind for preferred and high-yielding common stocks.

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Portfolio of investments—April 30, 2016 (unaudited)		Wells Fargo Global Dividend Opportunity Fund			7

      

 

 

Security name						Shares				Value
Common Stocks: 79.92%
Belgium: 0.68%
Proximus SA (Telecommunication Services, Diversified Telecommunication Services)							68,500			$	2,304,056
France: 6.34%
Veolia Environnement SA (Utilities, Multi-Utilities)							326,573				8,022,937
Vivendi SA (Consumer Discretionary, Media)							700,000				13,433,731
											21,456,668
Germany: 9.32%
BASF SE (Materials, Chemicals)							210,000				17,349,231
Deutsche Post AG (Industrials, Air Freight & Logistics)							480,000				14,092,364
Telefonica Deutschland Holding AG (Telecommunication Services, Diversified Telecommunication Services)							25,000				126,929
											31,568,524
Israel: 0.02%
Cellcom Israel Limited (Telecommunication Services, Wireless Telecommunication Services)							6,800				50,489
Italy: 19.63%
Enel SpA (Utilities, Electric Utilities)							3,750,000				16,995,411
Eni SpA (Energy, Oil, Gas & Consumable Fuels)							50,000				812,986
Hera SpA (Utilities, Multi-Utilities)							5,000,000				15,034,512
Snam SpA (Utilities, Gas Utilities)							3,200,000				19,529,980
Terna SpA (Utilities, Electric Utilities)							2,500,000				14,095,570
											66,468,459
Spain: 5.89%
Endesa SA (Utilities, Electric Utilities)							100,000				2,099,450
Red Electrica Corporacion SA (Utilities, Electric Utilities)							200,000				17,855,916
											19,955,366
United Kingdom: 16.40%
Intercontinental Hotels ADR (Consumer Discretionary, Hotels, Restaurants & Leisure)							275,700				11,066,598
Intercontinental Hotels Group plc (Consumer Discretionary, Hotels, Restaurants & Leisure)							134,691				5,415,445
ITV plc (Consumer Discretionary, Media)							5,000,000				16,452,559
National Grid plc (Utilities, Multi-Utilities)							250,000				3,560,825
Pennon Group plc (Utilities, Water Utilities)							200,000				2,372,909
SSE plc (Utilities, Electric Utilities)							200,000				4,412,676
Severn Trent plc (Utilities, Water Utilities)							250,000				8,134,958
United Utilities Group plc (Utilities, Water Utilities)							300,000				4,118,254
											55,534,224
United States: 21.64%
Armada Hoffler Properties Incorporated (Financials, REITs)							10,000				117,000
CenturyLink Incorporated (Telecommunication Services, Diversified Telecommunication Services)							100,000				3,095,000
Chatham Lodging Trust (Financials, REITs)							600,000				12,786,000
CorEnergy Infrastructure Trust Incorporated (Financials, REITs)							18,000				383,220
Equinix Incorporated (Financials, REITs)							2,427				801,759
Frontier Communications Corporation (Telecommunication Services, Diversified Telecommunication Services)							2,000,000				11,120,000

 

The accompanying notes are an integral part of these financial statements.

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8		Wells Fargo Global Dividend Opportunity Fund		Portfolio of investments—April 30, 2016 (unaudited)

      

 

 

Security name										Shares				Value
United States (continued)
Jernigan Capital Incorporated (Financials, REITs)											100,000			$	1,131,000
NorthStar Asset Management Group Incorporated (Financials, Capital Markets)											62,500				777,500
NorthStar Realty Europe Corporation (Financials, REITs)											22,916				273,388
NorthStar Realty Finance Corporation (Financials, REITs)											68,750				879,313
Physicians Realty Trust (Financials, REITs)											275,000				4,985,750
PNM Resources Incorporated (Utilities, Electric Utilities)											100,000				3,168,000
Preferred Apartment Communities Incorporated (Financials, REITs)											150,000				1,851,000
Public Storage (Financials, REITs)											30,000				782,700
SCANA Corporation (Utilities, Multi-Utilities)											50,000				3,434,500
Shenandoah Telecommunications Company (Telecommunication Services, Wireless Telecommunication Services)											400,000				11,476,000
Spark Energy Incorporated Class A (Utilities, Electric Utilities)											201,700				5,199,826
Summit Hotel Properties Incorporated (Financials, REITs)											397,833				4,535,296
UMH Properties Incorporated (Financials, REITs)											50,000				1,395,500
Verizon Communications Incorporated (Telecommunication Services, Diversified Telecommunication Services)											100,000				5,094,000
															73,286,752
Total Common Stocks (Cost $236,925,772)															270,624,538
		Interest rate				Maturity date				Principal
Corporate Bonds and Notes: 0.12%
United States: 0.12%
BreitBurn Energy Partners LP (Energy, Oil, Gas & Consumable Fuels )			8.63	%			10-15-2020			$	5,680,000				411,800
Energy & Exploration Partners Incorporated (Energy, Oil, Gas & Consumable Fuels) (i)(s)144A			8.00				7-1-2019				5,000,000				5,000
Total Corporate Bonds and Notes (Cost $9,826,076)															416,800
		Dividend yield								Shares
Preferred Stocks: 11.15%
Marshall Islands: 4.75%
Diana Shipping Incorporated (Industrials, Marine)			8.50								150,000				3,355,500
Navios Maritime Holdings Incorporated (Industrials, Marine)			8.63								59,000				233,050
Safe Bulkers Incorporated (Industrials, Marine)			8.00								50,000				734,000
Scorpio Bulkers Incorporated (Industrials, Marine)			7.50								105,000				1,837,500
Scorpio Tankers Incorporated (Energy, Oil, Gas & Consumable Fuels)			6.75								40,000				920,000
Scorpio Tankers Incorporated (Energy, Oil, Gas & Consumable Fuels)			7.50								223,707				5,603,860
Seaspan Corporation (Industrials, Marine)			6.38								63,600				1,588,728
Seaspan Corporation Series E (Industrials, Marine)			8.25								75,000				1,815,000
															16,087,638
Monaco: 0.17%
GasLog Limited Series A (Energy, Oil, Gas & Consumable Fuels)			8.75								25,000				573,750
United States: 6.23%
Arlington Asset Investment Corporation (Financials, Capital Markets)			6.63								106,080				2,094,019
Arlington Asset Investment Corporation (Financials, Capital Markets)			6.75								17,500				341,250
Ashford Hospitality Prime Incorporated (Financials, REITs)			5.50								11,000				189,640
Customers Bancorp Incorporated (Financials, Banks)			6.38								450				11,993

 

The accompanying notes are an integral part of these financial statements.

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Portfolio of investments—April 30, 2016 (unaudited)		Wells Fargo Global Dividend Opportunity Fund			9

      

 

 

Security name		Dividend yield								Shares				Value
United States (continued)
DTE Energy Company Series Z (Utilities, Multi-Utilities)			6.50	%							1,900			$	49,590
Eagle Point Credit Company Incorporated (Financials, Capital Markets)			7.00								25,000				628,250
Gastar Exploration Incorporated Series B (Energy, Oil, Gas & Consumable Fuels)			10.75								56,900				805,135
GreenHunter Resources Incorporated Series C (Energy, Energy Equipment & Services)			10.00								61,786				24,714
IBERIABANK Corporation (Financials, Banks) ±			5.30								43,200				1,108,512
Integrys Holding Incorporated (Utilities, Multi-Utilities) ±			5.76								118,000				3,071,693
Landmark Infrastructure Partners LP (Financials, Real Estate Management & Development)			8.00								25,000				615,000
Medley Capital Corporation (Financials, Capital Markets)			6.50								25,000				600,000
Qwest Corporation (Telecommunication Services, Diversified Telecommunication Services)			6.63								40,000				1,006,800
Qwest Corporation (Telecommunication Services, Diversified Telecommunication Services)			7.00								31,000				794,530
Sotherly Hotels LP (Financials, REITs)			7.00								42,599				1,075,625
Sotherly Hotels LP (Financials, REITs)			8.00								245,000				6,239,856
United States Cellular Corporation (Telecommunication Services, Wireless Telecommunication Services)			7.25								95,000				2,422,500
															21,079,107
Total Preferred Stocks (Cost $42,905,733)															37,740,495
						Expiration date
Rights: 0.00%
United States: 0.00%
Safeway Casa Ley Contingent Value Rights (Consumer Staples, Food & Staples Retailing) †(a)(i)							1-30-2019				750,000				1
Safeway PDC Contingent Value Rights (Consumer Staples, Food & Staples Retailing) †(a)(i)							1-30-2017				750,000				1
Total Rights (Cost $795,000)															2
Warrants: 0.00%
United States: 0.00%
GreenHunter Water LLC (Energy, Energy Equipment & Services) †(a)							12-31-2049				96,112				102
Total Warrants (Cost $0)															102
		Yield
Short-Term Investments: 14.11%
Investment Companies: 14.11%
Wells Fargo Cash Investment Money Market Fund Select Class (l)(u)			0.43								47,773,595				47,773,595
Total Short-Term Investments (Cost $47,773,595)															47,773,595

 

Total investments in securities (Cost $338,226,176) *			105.30	%			356,555,532
Other assets and liabilities, net			(5.30	)			(17,950,990	)
Total net assets			100.00	%		$	338,604,542

 

The accompanying notes are an integral part of these financial statements.

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10		Wells Fargo Global Dividend Opportunity Fund		Portfolio of investments—April 30, 2016 (unaudited)

      

 

 

 

 

 

(i)	Illiquid security

 

(s)	The security is currently in default with regards to scheduled interest and/or principal payments. The Fund has stopped accruing interest on the 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.

 

±	Variable rate investment. The rate shown is the rate in effect at period end.

 

†	Non-income-earning security

 

(a)	The security is fair valued in accordance with procedures approved by the Board of Trustees.

 

(l)	The issuer of the security is an affiliated person of the Fund as defined in the Investment Company Act of 1940.

 

(u)	The rate represents the 7-day annualized yield at period end.

 

*	Cost for federal income tax purposes is $337,162,159 and unrealized gains (losses) consists of:

 

Gross unrealized gains		$	47,538,796
Gross unrealized losses			(28,145,423	)
Net unrealized gains		$	19,393,373

 

The accompanying notes are an integral part of these financial statements.

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Statement of assets and liabilities—April 30, 2016 (unaudited)		Wells Fargo Global Dividend Opportunity Fund			11

Assets
Investments
In unaffiliated securities, at value (cost $290,452,581)		$	308,781,937
In affiliated securities, at value (cost $47,773,595)			47,773,595
Total investments, at value (cost $338,226,176)			356,555,532
Cash			551,297
Segregated cash			280,000
Foreign currency, at value (cost $4,098,488)			4,127,362
Receivable for investments sold			7,415,229
Receivable for dividends and interest			2,764,382
Prepaid expenses and other assets			892
Total assets			371,694,694
Liabilities
Payable for investments purchased			32,378,251
Payable for Fund shares redeemed			305,290
Written options, at value (premiums received $50,529)			41,055
Advisory fee payable			269,638
Administration fee payable			14,191
Accrued expenses and other liabilities			81,727
Total liabilities			33,090,152
Total net assets		$	338,604,542
NET ASSETS CONSIST OF
Paid-in capital		$	845,711,439
Overdistributed net investment income			(4,324,309	)
Accumulated net realized losses on investments			(521,255,363	)
Net unrealized gains on investments			18,472,775
Total net assets		$	338,604,542
NET ASSET VALUE PER SHARE
Based on $338,604,542 divided by 48,227,805 shares issued and outstanding (unlimited shares authorized)			$7.02

 

 

 

The accompanying notes are an integral part of these financial statements.

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12		Wells Fargo Global Dividend Opportunity Fund		Statement of operations—six months ended April 30, 2016 (unaudited)

Investment income
Dividends (net of foreign withholding taxes of $599,291)		$	12,657,446
Interest			176,443
Income from affiliated securities			22,912
Total investment income			12,856,801
Expenses
Advisory fee			1,583,271
Administration fee			83,330
Custody and accounting fees			33,497
Professional fees			34,019
Shareholder report expenses			22,715
Trustees’ fees and expenses			8,631
Transfer agent fees			13,950
Other fees and expenses			2,133
Total expenses			1,781,546
Net investment income			11,075,255
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized losses on:
Unaffiliated securities			(39,451,510	)
Written options			(46,144	)
Net realized losses on investments			(39,497,654	)
Net change in unrealized gains (losses) on:
Unaffiliated securities			20,890,481
Written options			(51,057	)
Net change in unrealized gains (losses) on investments			20,839,424
Net realized and unrealized gains (losses) on investments			(18,658,230	)
Net decrease in net assets resulting from operations		$	(7,582,975	)

 

 

 

The accompanying notes are an integral part of these financial statements.

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Statement of changes in net assets		Wells Fargo Global Dividend Opportunity Fund			13

		Six months ended April 30, 2016 (unaudited)								Year ended October 31, 2015
Operations
Net investment income						$	11,075,255							$	33,476,270
Net realized losses on investments							(39,497,654	)							(28,455,849	)
Net change in unrealized gains (losses) on investments							20,839,424								(21,892,602	)
Net decrease in net assets resulting from operations							(7,582,975	)							(16,872,181	)
Distributions to shareholders from
Net investment income							(15,395,713	)							(30,622,769	)
Tax basis return of capital							0								(4,773,025	)
Total distributions to shareholders							(15,395,713	)							(35,395,794	)
Capital share transactions			Shares								Shares
Cost of shares repurchased			(933,020	)			(5,406,079	)			0				0
Total decrease in net assets							(28,384,767	)							(52,267,975	)
Net assets
Beginning of period							366,989,309								419,257,284
End of period						$	338,604,542							$	366,989,309
Overdistributed net investment income						$	(4,324,309	)						$	(3,851	)

 

 

 

The accompanying notes are an integral part of these financial statements.

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14		Wells Fargo Global Dividend Opportunity Fund		Financial highlights

(For a share outstanding throughout each period)

 

		Six months ended April 30, 2016 (unaudited)				Year ended October 31
						2015				2014				2013				2012				2011
Net asset value, beginning of period			$7.47				$8.53				$8.40				$8.25				$8.92				$10.36
Net investment income			0.23				0.68				0.78				0.84				0.91				1.00
Net realized and unrealized gains (losses) on investments			(0.39	)			(1.02	)			0.07				0.15				(0.46	)			(1.32	)
Total from investment operations			(0.16	)			(0.34	)			0.85				0.99				0.45				(0.32	)
Distributions to shareholders from
Net investment income			(0.32	)			(0.62	)			(0.72	)			(0.83	)			(0.86	)			(1.12	)
Tax basis return of capital			0.00				(0.10	)			0.00				(0.01	)			(0.26	)			0.00
Total distributions to shareholders			(0.32	)			(0.72	)			(0.72	)			(0.84	)			(1.12	)			(1.12	)
Anti-dilutive effect of shares repurchased			0.03	1			0.00				0.00				0.00				0.00				0.00
Net asset value, end of period			$7.02				$7.47				$8.53				$8.40				$8.25				$8.92
Market value, end of period			$6.05				$6.33				$7.96				$7.56				$7.98				$8.32
Total return based on market value2			0.81	%			(11.80	)%			15.29	%			5.55	%			9.79	%			(9.76	)%
Ratios to average net assets (annualized)
Net expenses			1.07	%			1.10	%			1.07	%			1.08	%			1.08	%			1.05	%
Net investment income			6.65	%			8.52	%			9.02	%			10.26	%			10.82	%			10.16	%
Supplemental data
Portfolio turnover rate			45	%			141	%			76	%			163	%			93	%			129	%
Net assets, end of period (000s omitted)			$338,605				$366,989				$419,257				$412,920				$405,457				$438,084

 

 

1	Calculated based upon average shares outstanding

 

2

Total return is calculated assuming a purchase of common stock on the first day and 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.

 

The accompanying notes are an integral part of these financial statements.

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Notes to financial statements (unaudited)		Wells Fargo Global Dividend Opportunity Fund			15

1. ORGANIZATION

The 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. As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies.

2. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies, which are consistently followed in the preparation of the financial statements of the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Securities valuation

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 under unusual or unexpected circumstances.

Equity securities and options 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, the prior day’s price will be deemed “stale” and a fair value price will be determined in accordance with the Fund’s Valuation Procedures.

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.

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 Management Valuation Team of 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, 2016, 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 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 Management Valuation Team. 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 Management Valuation Team which may include items for ratification.

Valuations of fair valued securities are compared to the next actual sales price when available, or other appropriate market values, to assess the continued appropriateness of the fair valuation methodologies used. These securities are fair valued on a day-to-day basis, taking into consideration changes to appropriate market information and any significant changes to the inputs considered in the valuation process until there is a readily available price provided on an exchange

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16		Wells Fargo Global Dividend Opportunity Fund		Notes to financial statements (unaudited)

or by an independent pricing service. Valuations received from an independent pricing service or independent broker-dealer quotes are periodically validated by comparisons to most recent trades and valuations provided by other independent pricing services in addition to the review of prices by the adviser and/or subadviser. Unobservable inputs used in determining fair valuations are identified based on the type of security, taking into consideration factors utilized by market participants in valuing the investment, knowledge about the issuer and the current market environment.

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 Management Valuation Team. 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 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.

Options

The Fund is subject to equity price risk and foreign currency exchange rate risk in the normal course of pursuing its investment objectives. 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 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. The premium is included in the Statement of Assets and Liabilities as an investment, the value of which is subsequently adjusted based on the current market value of the option. 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. 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.

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. Dividend income from foreign securities is recorded net of foreign taxes withheld where recovery of such taxes is not assured.

Interest income is accrued daily and bond discounts are accreted and premiums are amortized daily based on the effective interest method. 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 become doubtful based on consistently applied procedures. If the issuer subsequently resumes interest payments or when the collectability of interest is reasonably assured, the debt obligation is removed from non-accrual status.

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Notes to financial statements (unaudited)		Wells Fargo Global Dividend Opportunity Fund			17

Distributions to shareholders

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 conformity with federal income tax regulations, which may differ in amount or character from net investment income and realized gains recognized for purposes of U.S. generally accepted accounting principles.

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.

Capital loss carryforwards that do not expire are required to be utilized prior to capital loss carryforwards that expire. As of October 31, 2015, capital loss carryforwards available to offset future net realized capital gains were as follows through the indicated expiration dates:

 

						No expiration
2016		2017		2018		Short-term		Long-term
$164,388,931		$193,644,982		$17,121,810		$76,083,877		$31,787,272

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 significant 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:

 

n	Level 1 – quoted prices in active markets for identical securities

 

n	Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, use of amortized cost, etc.)

 

n	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.

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18		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, 2016:

 

		Quoted prices (Level 1)				Other significant observable inputs (Level 2)				Significant unobservable inputs (Level 3)				Total
Assets
Investments in:
Common stocks
Belgium		$	2,304,056			$	0			$	0			$	2,304,056
France			21,456,668				0				0				21,456,668
Germany			31,568,524				0				0				31,568,524
Israel			50,489				0				0				50,489
Italy			66,468,459				0				0				66,468,459
Spain			19,955,366				0				0				19,955,366
United Kingdom			55,534,224				0				0				55,534,224
United States			73,286,752				0				0				73,286,752
Corporate bonds and notes			0				416,800				0				416,800
Preferred stocks
Marshall Islands			16,087,638				0				0				16,087,638
Monaco			573,750				0				0				573,750
United States			10,691,933				10,387,174				0				21,079,107
Rights
United States			0				2				0				2
Warrants
United States			0				102				0				102
Short-term investments
Investment companies			47,773,595				0				0				47,773,595
Total assets		$	345,751,454			$	10,804,078			$	0			$	356,555,532
Liabilities
Written options		$	0			$	41,055			$	0			$	41,055
Total liabilities		$	0			$	41,055			$	0			$	41,055

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. Fair value pricing that was used in pricing certain foreign securities at the previous period end was not used at April 30, 2016. As a result, common stocks valued at $136,726,960 were transferred from Level 2 to Level 1 within the fair value hierarchy. The Fund did not have any transfers into/out of Level 3.

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

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 0.95% 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 certain subadvisers to provide daily portfolio management to the Fund. The fees for subadvisory services are borne by Funds Management. Wells Capital Management Incorporated, an affiliate of Funds Management and an indirect, wholly owned subsidiary of Wells Fargo, is a subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate of 0.10% of the Fund’s average daily total assets. Crow Point Partners, LLC is also a subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate of 0.20% of the Fund’s average daily total assets.

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Notes to financial statements (unaudited)		Wells Fargo Global Dividend Opportunity Fund			19

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.

5. CAPITAL SHARE TRANSACTIONS

The Fund has authorized an unlimited number of shares with no par value. For the six months ended April 30, 2016 and the year ended October 31, 2015, the Fund did not issue any shares.

On December 17, 2015, the Fund announced an open-market share repurchase program (the “Buyback Program”). Under the Buyback Program, the Fund may repurchase up to 10% of its outstanding shares within one year of December 17, 2015. 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, 2016, the Fund purchased 933,020 of its shares on the open market at a total cost of $5,406,079 (weighted average price per share of $5.79). The weighted average discount of these repurchased shares was 14.97%.

6. 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, 2016 were $147,189,341 and $167,260,167, respectively.

7. DERIVATIVE TRANSACTIONS

During the six months ended April 30, 2016, the Fund entered into written options for income generating purposes.

During the six months ended April 30, 2016, the Fund had written call option activity as follows:

 

		Number of contracts				Premiums received
Options outstanding at October 31, 2015			389				$ 105,077
Options written			906				182,760
Options expired			(930	)			(178,406	)
Options closed			(93	)			(58,902	)
Options exercised			0				0
Options outstanding at April 30, 2016			272				$   50,529

Open written call options at April 30, 2016 were as follow for the Fund:

 

Expiration date

Counterparty

Description

Number of contracts

Strike price

Value

5-20-2016

Goldman Sachs

FTSE MIB Index

272

19,703 EUR

$

(41,055

)

The Fund had an average of 156 written call option contracts during the six months ended April 30, 2016. As of April 30, 2016, the Fund had segregated $280,000 as cash collateral for written options.

The fair value, realized gains or losses and change in unrealized gains or losses, if any, on derivative instruments are reflected in the appropriate financial statements.

For certain types of derivative transactions, the Fund has entered into International Swaps and Derivatives Association, Inc. master agreements (“ISDA Master Agreements”) or similar agreements with approved counterparties. The ISDA Master Agreements or similar agreements may have requirements to deliver/deposit securities or cash to/with an exchange or broker-dealer as collateral and allows the Fund to offset, with each counterparty, certain derivative financial instrument’s assets and/or liabilities with collateral held or pledged. Collateral requirements differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives while collateral terms are contract specific for over-the-counter traded derivatives. Cash collateral that has been pledged to cover obligations of the Fund under ISDA Master Agreements or similar agreements, if any, are reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, are noted in the Portfolio of Investments. With respect to balance sheet offsetting, absent an event of default by the counterparty or a termination of the agreement, the

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20		Wells Fargo Global Dividend Opportunity Fund		Notes to financial statements (unaudited)

reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities are not offset across transactions between the Fund and the applicable counterparty. A reconciliation of the gross amounts on the Statement of Assets and Liabilities to the net amounts by derivative type, including any collateral exposure, is as follows:

 

Derivative type		Counterparty		Gross amounts of liabilities in the Statement of Assets and Liabilities		Amounts subject to netting agreements				Collateral pledged1				Net amount of liabilities
Written options		Goldman Sachs		$41,055		$	0			$	(41,055	)		$	0

1

Collateral pledged within this table is limited to the collateral for the net transaction with the counterparty.

8. CONCENTRATION RISK

Concentration risks result from exposure to a limited number of sectors. A fund that invests a substantial portion of its assets in any sector may be more affected by changes in that sector than would be a fund whose investments are not heavily weighted in any sector.

9. INDEMNIFICATION

Under the Trust’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 Trust. Additionally, in the normal course of business, the Trust may enter into contracts with service providers that contain a variety of indemnification clauses. The Trust’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 DISTRIBUTION

On May 25, 2016, the Fund declared a distribution from of $0.135 per share payable on July 1, 2016 to shareholders of record on June 15, 2016.

This distribution is not reflected in the accompanying financial statements. The final determination of the source of all distributions is subject to change and made after the Fund’s tax year-end.

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Other information (unaudited)		Wells Fargo Global Dividend Opportunity Fund			21

TAX INFORMATION

Pursuant to Section 853 of the Internal Revenue Code, the following amounts were designated as foreign taxes paid for the fiscal year ended October 30, 2015. These amounts may be less than the actual foreign taxes paid for financial statement purposes. Foreign taxes paid or withheld should be included in taxable income with an offsetting deduction from gross income or as a credit for taxes paid to foreign governments. None of the income was derived from ineligible foreign sources as defined under Section 901(j) of the Internal Revenue Code.

 

Creditable foreign taxes paid		Per share amount		Foreign income as % of ordinary income distributions
$1,554,049		$0.0316		69.63%

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at wellsfargofunds.com, or visiting the SEC website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website at wellsfargofunds.com or by visiting the SEC website at sec.gov.

ANNUAL MEETING OF SHAREHOLDERS

On February 8, 2016, 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”		Peter G. Gordon			39,959,545
Shares voted “Withhold”					4,449,448
Shares voted “For”		Timothy J. Penny			39,913,265
Shares voted “Withhold”					4,495,728
Shares voted “For”		Michael S. Scofield			40,042,188
Shares voted “Withhold”					4,366,805

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available monthly on the Fund’s website (wellsfargofunds.com), on a one-month delayed basis. The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q, which is available by visiting the SEC website at sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at 233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

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22		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 141 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
William R. Ebsworth (Born 1957)		Trustee, since 2015		Retired. From 1984 to 2013, equities analyst, portfolio manager, research director and chief financial 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 lead 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. Mr. Ebsworth is a CFA® charterholder and an Adjunct Lecturer, Finance, at Babson College.		Asset Allocation Trust
Jane A. Freeman (Born 1953)		Trustee, since 2015		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 Chair of Taproot Foundation (non-profit organization), a Board Member of Ruth Bancroft Garden (non-profit organization) and an inactive chartered financial analyst.		Asset Allocation Trust
Peter G. Gordon (Born 1942)		Trustee, since 2010; Chairman, since 2010		Co-Founder, Retired Chairman, President and CEO of Crystal Geyser Water Company. Trustee Emeritus, Colby College.		Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)		Trustee, since 2010		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 (charter school). Advisory Board Member, Child Evangelism Fellowship (non-profit). Mr. Harris is a certified public accountant (inactive status).		CIGNA Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)		Trustee, since 2010; Audit Committee Chairman, 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.		Asset Allocation Trust
David F. Larcker (Born 1950)		Trustee, since 2010		James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of the Corporate Governance Research Initiative and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.		Asset Allocation Trust
Olivia S. Mitchell (Born 1953)		Trustee, since 2010		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.		Asset Allocation Trust

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Other information (unaudited)		Wells Fargo Global Dividend Opportunity Fund			23

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
Timothy J. Penny (Born 1951)		Trustee, since 2010		President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.		Asset Allocation Trust
Michael S. Scofield (Born 1943)		Trustee, since 2007		Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.		Asset Allocation Trust

Officers

 

Name and year of birth		Position held and length of service		Principal occupations during past five years or longer
Karla M. Rabusch (Born 1959)		President, since 2010		Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo Funds Management, LLC since 2003.
Nancy Wiser1 (Born 1967)		Treasurer, since 2012		Executive Vice President of Wells Fargo Funds Management, LLC since 2011. Chief Operating Officer and Chief Compliance Officer at LightBox Capital Management LLC, from 2008 to 2011.
C. David Messman (Born 1960)		Secretary, since 2010; Chief Legal Officer, since 2010		Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001. Assistant General Counsel of Wells Fargo Bank, N.A. since 2013 and Vice President and Managing Counsel of Wells Fargo Bank, N.A. from 1996 to 2013.
Michael Whitaker (Born 1967)		Chief Compliance Officer, since 2016*		Executive Vice President of Wells Fargo Funds Management, LLC since 2016. Chief Compliance Officer of Fidelity’s Fixed Income Funds and Asset Allocation Funds from 2008 to 2016, Compliance Officer of FMR Co., Inc. from 2014 to 2016, Fidelity Investments Money Management, Inc. from 2014 to 2016, Fidelity Investments from 2007 to 2016.
Debra Ann Early (Born 1964)		Chief Compliance Officer, since 2010**		Executive Vice President of Wells Fargo Funds Management, LLC since 2014, Senior Vice President and Chief Compliance Officer from 2007 to 2014.
David Berardi (Born 1975)		Assistant Treasurer, since 2009		Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.
Jeremy DePalma1 (Born 1974)		Assistant Treasurer, since 2007		Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010 and head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.

 

 

1	Nancy Wiser acts as Treasurer of 72 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 69 funds and Assistant Treasurer of 72 funds in the Fund Complex.

 

*	Michael Whitaker became Chief Compliance Officer effective May 16, 2016.

 

**	Debra Ann Early was the Chief Compliance Officer until May 15, 2016.

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24		Wells Fargo Global Dividend Opportunity Fund		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 30170, College Station, Texas 77842-3170 or by calling 1-800-730-6001.

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List of abbreviations		Wells Fargo Global Dividend Opportunity Fund			25

The following is a list of common abbreviations for terms and entities that may have appeared in this report.

 

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Transfer Agent, Registrar, Shareholder Servicing

Agent & Dividend Disbursing Agent

Computershare Trust Company, N.A.

P.O. Box 30170

College Station, TX 77842-3170

1-800-730-6001

Website: wellsfargofunds.com

Wells Fargo Funds Management, LLC, is a subsidiary of Wells Fargo & Company and is an affiliate of Wells Fargo & Company’s broker/dealer subsidiaries. Certain material contained in this report may be considered marketing material and has been reviewed by Wells Fargo Funds Distributor, LLC, Member FINRA, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

© 2016 Wells Fargo Funds Management, LLC. All rights reserved.

 

		242223 06-16 SGDO/SAR158 04-16

 

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ITEM 2.

CODE OF ETHICS

Not applicable.

 

ITEM 3.

AUDIT COMMITTEE FINANCIAL EXPERT

Not applicable.

 

ITEM 4.

PRINCIPAL ACCOUNTANT FEES AND SERVICES

Not applicable.

 

ITEM 5.

AUDIT COMMITTEE OF LISTED REGISTRANTS

Not applicable.

 

ITEM 6.

INVESTMENTS

A Portfolio of Investments for Wells Fargo Global Dividend Opportunity Fund is included as part of the report to shareholders filed under Item 1 of this Form.

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ITEM 7.

DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.

 

ITEM 8.

PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.

 

ITEM 9.

PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMEENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS

 

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
November 1 through November 30			—				—				—				—
December 1 through December 31			—				—				—				4,916,082
January 1 through January 31			—				—				—				4,916,082
February 1 through February 29			397,105			$	5.62				397,105				4,518,977
March 1 through March 31			269,172			$	5.82				269,172				4,249,805
April 1 through April 30			266,743			$	6.02				266,743				3,983,062
Total			933,020			$	5.79				933,020				3,983,062

On December 17, 2015, the Fund announced an open-market share repurchase program (the “Buyback Program”). Under the Buyback Program, the Fund may repurchase up to 4,916,082 or 10% of its outstanding shares within one year of December 17, 2015.

 

ITEM 10.

SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees that have been implemented since the registrant’s last provided disclosure in response to the requirements of this Item.

 

ITEM 11.

CONTROLS AND PROCEDURES

(a) The President and Treasurer have concluded that the Wells Fargo Global Dividend Opportunity Fund (the “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 Fund 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 Fund’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the second fiscal quarter of the period covered by this report that materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

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ITEM 12.

EXHIBITS

(a)(1) Not applicable

(a)(2) Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.

(a)(3) Not applicable.

(b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is filed and attached hereto as Exhibit 99.906CERT

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

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.