Allspring Special Mid Cap Value Fund NCSRS Certified semi-annual shareholder report (management investment company)

Allspring Special Mid Cap Value Fund (WFMDX) N-CSRSCertified semi-annual shareholder report (management investment company)

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: 811-09253

Wells Fargo Funds Trust

(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: 800-643-9691

Date of fiscal year end: August 31, 2010

Date of reporting period: February 28, 2011


ITEM 1.		REPORT TO SHAREHOLDERS

WELLS FARGO ADVANTAGE INCOME FUNDS

§ Wells Fargo Advantage Adjustable Rate Government Fund

§ Wells Fargo Advantage Government Securities Fund

§ Wells Fargo Advantage High Income Fund

§ Wells Fargo Advantage High Yield Bond Fund

§ Wells Fargo Advantage Income Plus Fund

§ Wells Fargo Advantage Short Duration Government Bond Fund

§ Wells Fargo Advantage Short-Term Bond Fund

§ Wells Fargo Advantage Short-Term High Yield Bond Fund

§ Wells Fargo Advantage Ultra Short-Term Income Fund

Reduce clutter. Save trees.

Contents


Letter to Shareholders			2

Performance Highlights
Wells Fargo Advantage Adjustable Rate Government Fund			6
Wells Fargo Advantage Government Securities Fund			8
Wells Fargo Advantage High Income Fund			10
Wells Fargo Advantage High Yield Bond Fund			12
Wells Fargo Advantage Income Plus Fund			14
Wells Fargo Advantage Short Duration Government Bond Fund			16
Wells Fargo Advantage Short-Term Bond Fund			18
Wells Fargo Advantage Short-Term High Yield Bond Fund			20
Wells Fargo Advantage Ultra Short-Term Income Fund			22

Fund Expenses			24

Portfolio of Investments
Wells Fargo Advantage Adjustable Rate Government Fund			28
Wells Fargo Advantage Government Securities Fund			44
Wells Fargo Advantage High Income Fund			56
Wells Fargo Advantage High Yield Bond Fund			64
Wells Fargo Advantage Income Plus Fund			73
Wells Fargo Advantage Short Duration Government Bond Fund			82
Wells Fargo Advantage Short-Term Bond Fund			86
Wells Fargo Advantage Short-Term High Yield Bond Fund			97
Wells Fargo Advantage Ultra Short-Term Income Fund			104

Financial Statements
Statements of Assets and Liabilities			116
Statements of Operations			118
Statements of Changes in Net Assets			120
Financial Highlights			136

Notes to Financial Statements			149

Other Information			165

List of Abbreviations			169

The views expressed are as of February 28, 2011, and are those of the Fund managers. Any reference to a specific security in this report is not a recommendation to purchase or sell any specific security or adopt any investment strategy. The views 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 the Wells Fargo Advantage Income Funds.

NOT FDIC INSURED § NO BANK GUARANTEE § MAY LOSE VALUE

WELLS FARGO INVESTMENT HISTORY


1932		Keystone creates one of the first mutual fund families.

1971		Wells Fargo & Company introduces one of the first institutional index funds.

1978		Wells Fargo applies Markowitz and Sharpe’s research on Modern Portfolio Theory to introduce one of the industry’s first Tactical Asset Allocation (TAA) models in institutional separately managed accounts.

1984		Wells Fargo Stagecoach Funds launches its first asset allocation fund.

1989		The Tactical Asset Allocation (TAA) Model is first applied to Wells Fargo’s asset allocation mutual funds.

1994		Wells Fargo introduces the LifePath Funds, one of the first suites of target date funds (now the Wells Fargo *Advantage Dow Jones Target Date Funds*^SM).

1996		Evergreen Investments and Keystone Funds merge.

1997		Wells Fargo launches Wells Fargo *Advantage WealthBuilder Portfolios*^SM, a fund-of-funds suite of products that includes the use of quantitative models to shift assets among investment styles.

1999		Norwest Advantage Funds and Stagecoach Funds are reorganized into Wells Fargo Funds after the merger of Norwest and Wells Fargo.

2002		Evergreen Retail and Evergreen Institutional companies form the umbrella asset management company, Evergreen Investments.

2005		The integration of Strong Funds with Wells Fargo Funds creates Wells Fargo *Advantage Funds, resulting in one of* the top 20 mutual fund companies in the United States.

2006		*Wells Fargo Advantage Funds* relaunches the target date product line as Wells Fargo Advantage Dow Jones *Target Date Funds.*

2010		The mergers and reorganizations of Evergreen and Wells Fargo Advantage mutual funds are completed, unifying the families under the brand of *Wells Fargo Advantage Funds.*

Wells Fargo Advantage Funds^®

Wells Fargo Advantage Funds skillfully guides institutions, financial advisors, and individuals through the investment terrain to help them reach their financial objectives. Everything we do on behalf of investors is backed by our unique combination of qualifications.

Strength

Our organization is built on the standards of integrity and service established by our parent company—Wells Fargo & Company—more than 150 years ago. And, because we’re part of a highly diversified financial enterprise, we offer the depth of resources to help investors succeed.

Expertise

Our multi-boutique model offers investors access to the independent thinking of premier investment managers that have been chosen for their time-tested strategies. While each team specializes in a specific investment strategy, collectively they provide investors a wide choice of distinct investment styles. Our dedication to investment excellence doesn’t end with our expertise in manager selection—risk management, analysis, and rigorous ongoing review seek to ensure each manager’s investment process remains consistent.

Partnership

Our collaborative approach is built around understanding the needs and goals of our clients. By adhering to core principles of sound judgment and steady guidance, we support you through every stage of the investment decision process.

Carefully consider the investment objectives, risks, charges, and expenses before investing. For a current prospectus for Wells Fargo Advantage Funds containing this and other information, visit wellsfargo.com/advantagefunds. Read it carefully before investing.

Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Advantage Funds^®. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the Funds. The Funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA/SIPC, an affiliate of Wells Fargo & Company.

The “Dow Jones Target Date Indexes” are a product of Dow Jones Indexes, a licensed trademark of CME Group Index Services LLC (“CME”). “Dow Jones” and “Dow Jones Target Date Indexes” are service marks of Dow Jones Trademark Holdings, LLC, and have been licensed for use for certain purposes by CME and sublicensed for use by Global Index Advisors, Inc., and Wells Fargo Funds Management, LLC. The Dow Jones Target Date Indexes are based in part on the Barclays Capital Bond Indexes, which are published by Barclays Capital Inc. The Wells Fargo Advantage Dow Jones Target Date Funds, based on the Dow Jones Target Date Indexes, are not sponsored, endorsed, sold, or promoted by Dow Jones, CME or Barclays Capital or any of their respective affiliates, and neither Dow Jones, CME nor Barclays Capital nor any of their respective affiliates makes any representation regarding the advisability of investing in such product(s) and/or about the quality, accuracy, and/or completeness of the Dow Jones Target Date Indexes or the Barclays Capital Bond Indexes. IN NO EVENT SHALL DOW JONES, CME, BARCLAYS CAPITAL, OR ANY OF THEIR LICENSORS HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.

NOT FDIC INSURED § NO BANK GUARANTEE § MAY LOSE VALUE

Not part of the semi-annual report.

Wells Fargo Advantage Funds offers more than 120 mutual funds across a wide range of asset classes, representing over $236 billion in assets under management, as of February 28, 2011.


Equity Funds
Asia Pacific Fund	Enterprise Fund^†	Opportunity Fund^†
C&B Large Cap Value Fund	Equity Value Fund	Precious Metals Fund
C&B Mid Cap Value Fund	Global Opportunities Fund	Premier Large Company Growth Fund
Capital Growth Fund	Growth Fund	Small Cap Growth Fund
Classic Value Fund	Growth Opportunities Fund	Small Cap Opportunities Fund
Common Stock Fund	Health Care Fund	Small Cap Value Fund
Core Equity Fund	Index Fund	Small Company Growth Fund
Disciplined Global Equity Fund	International Equity Fund	Small Company Value Fund
Disciplined U.S. Core Fund	International Value Fund	Small/Mid Cap Core Fund
Disciplined Value Fund	Intrinsic Small Cap Value Fund	Small/Mid Cap Value Fund
Discovery Fund^†	Intrinsic Value Fund	Social Sustainability Fund^†
Diversified Equity Fund	Intrinsic World Equity Fund	Special Mid Cap Value Fund
Diversified International Fund	Large Cap Core Fund	Special Small Cap Value Fund
Diversified Small Cap Fund	Large Cap Growth Fund	Specialized Technology Fund
Emerging Growth Fund	Large Company Value Fund	Strategic Large Cap Growth Fund
Emerging Markets Equity Fund	Mid Cap Growth Fund	Traditional Small Cap Growth Fund
Endeavor Select Fund^†	Omega Growth Fund	Utility and Telecommunications Fund

Bond Funds
Adjustable Rate Government Fund	Inflation-Protected Bond Fund	Short-Term Bond Fund
California Limited-Term Tax-Free Fund	Intermediate Tax/AMT-Free Fund	Short-Term High Yield Bond Fund
California Tax-Free Fund	International Bond Fund	Short-Term Municipal Bond Fund
Colorado Tax-Free Fund	Minnesota Tax-Free Fund	Strategic Municipal Bond Fund
Government Securities Fund	Municipal Bond Fund	Total Return Bond Fund
High Income Fund	North Carolina Tax-Free Fund	Ultra Short-Term Income Fund
High Yield Bond Fund	Pennsylvania Tax-Free Fund	Ultra Short-Term Municipal Income Fund
Income Plus Fund	Short Duration Government Bond Fund	Wisconsin Tax-Free Fund

Asset Allocation Funds
Asset Allocation Fund	WealthBuilder Equity Portfolio^†	Target 2020 Fund^†
Conservative Allocation Fund	WealthBuilder Growth Allocation Portfolio^†	Target 2025 Fund^†
Diversified Capital Builder Fund	WealthBuilder Growth Balanced Portfolio^†	Target 2030 Fund^†
Diversified Income Builder Fund	WealthBuilder Moderate Balanced Portfolio^†	Target 2035 Fund^†
Growth Balanced Fund	WealthBuilder Tactical Equity Portfolio^†	Target 2040 Fund^†
Index Asset Allocation Fund	Target Today Fund^†	Target 2045 Fund^†
Moderate Balanced Fund	Target 2010 Fund^†	Target 2050 Fund^†
WealthBuilder Conservative Allocation Portfolio^†	Target 2015 Fund^†

Money Market Funds
100% Treasury Money Market Fund	Minnesota Money Market Fund	New Jersey Municipal Money Market Fund
California Municipal Money Market Fund	Money Market Fund	New York Municipal Money Market Fund
Cash Investment Money Market Fund	Municipal Cash Management Money Market Fund	Pennsylvania Municipal Money Market Fund
Government Money Market Fund	Municipal Money Market Fund	Prime Investment Money Market Fund
Heritage Money Market Fund^†	National Tax-Free Money Market Fund	Treasury Plus Money Market Fund

Variable Trust Funds¹
VT Core Equity Fund	VT Intrinsic Value Fund	VT Small Cap Value Fund
VT Discovery Fund^†	VT Omega Growth Fund	VT Total Return Bond Fund
VT Index Asset Allocation Fund	VT Opportunity Fund^†
VT International Equity Fund	VT Small Cap Growth Fund


An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Wells Fargo Advantage Money Market Funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in a money market fund.

1.		The Variable Trust Funds are generally available only through insurance company variable contracts.

†		In this report, the Wells Fargo Advantage Discovery Fund^SM, Wells Fargo Advantage Endeavor Select Fund^SM, Wells Fargo Advantage Enterprise Fund^SM, Wells Fargo Advantage Opportunity Fund^SM, Wells Fargo Advantage Social Sustainability Fund^SM, Wells Fargo Advantage WealthBuilder Conservative Allocation Portfolio^SM, Wells Fargo Advantage WealthBuilder Equity Portfolio^SM, Wells Fargo Advantage WealthBuilder Growth Allocation Portfolio^SM, Wells Fargo Advantage WealthBuilder Growth Balanced Portfolio^SM, Wells Fargo Advantage WealthBuilder Moderate Balanced Portfolio^SM, Wells Fargo Advantage WealthBuilder Tactical Equity Portfolio^SM, Wells Fargo Advantage Dow Jones Target Today Fund^SM, Wells Fargo Advantage Dow Jones Target 2010 Fund^SM, Wells Fargo Advantage Dow Jones Target 2015 Fund^SM, Wells Fargo Advantage Dow Jones Target 2020 Fund^SM, Wells Fargo Advantage Dow Jones Target 2025 Fund^SM, Wells Fargo Advantage Dow Jones Target 2030 Fund^SM, Wells Fargo Advantage Dow Jones Target 2035 Fund^SM, Wells Fargo Advantage Dow Jones Target 2040 Fund^SM, Wells Fargo Advantage Dow Jones Target 2045 Fund^SM, Wells Fargo Advantage Dow Jones Target 2050 Fund^SM, Wells Fargo Advantage Heritage Money Market Fund^SM, Wells Fargo Advantage VT Discovery Fund^SM, and Wells Fargo Advantage VT Opportunity Fund^SMare referred to as the Discovery Fund, Endeavor Select Fund, Enterprise Fund, Opportunity Fund, Social Sustainability Fund, WealthBuilder Conservative Allocation Portfolio, WealthBuilder Equity Portfolio, WealthBuilder Growth Allocation Portfolio, WealthBuilder Growth Balanced Portfolio, WealthBuilder Moderate Balanced Portfolio, WealthBuilder Tactical Equity Portfolio, Target Today Fund, Target 2010 Fund, Target 2015 Fund, Target 2020 Fund, Target 2025 Fund, Target 2030 Fund, Target 2035 Fund, Target 2040 Fund, Target 2045 Fund, Target 2050 Fund, Heritage Money Market Fund, VT Discovery Fund, and VT Opportunity Fund, respectively.

Not part of the semi-annual report.



2 Wells Fargo Advantage Income Funds		Letter to Shareholders

Karla M. Rabusch,
President
Wells Fargo Advantage Funds

Corporate bonds and mortgage-backed securities (MBS) generally had positive returns for the full period, as high-yield corporate bonds and commercial mortgage-backed securities (CMBS) continued to perform strongly.

Dear Valued Shareholder,

We are pleased to offer you this semi-annual report for the Wells Fargo Advantage Income Funds, which covers the six-month period that ended February 28, 2011. Performance from the fixed-income asset classes was mixed during the period. Strategies that were broadly diversified across various sectors and credit-quality tiers generally outperformed strategies that were more heavily focused on U.S. Treasuries and the highest-quality¹fixed-income securities. U.S. Treasury yields shifted higher, resulting in declining prices in the Treasury and agency sectors. Lower-rated credit-quality sectors, however, performed well, as investor confidence continued to strengthen and economic optimism fortified throughout the final months of 2010 and into 2011. Corporate bonds and mortgage-backed securities (MBS) generally had positive returns for the full period, as high-yield corporate bonds and commercial mortgage-backed securities (CMBS) continued to perform strongly. High-yield corporate bonds continued to be the best-performing fixed-income asset class—as they have been throughout several prior periods—and CMBS continued to be the best-performing investment-grade fixed-income sector.

The low-yield environment resulting from highly accommodative monetary policy, low interest rates, and low Treasury yields continued to create an environment of relatively scarce opportunities for higher-yielding assets. As such, investors continued to move down the credit-quality tiers to add yield and a bit more risk. Consequently, the riskier areas of the fixed-income markets continued to provide some of the best six-month returns. High-yield bonds performed strongly, with CCC-rated, B-rated, and BB-rated securities outperforming the investment-grade credit tiers. The Barclays Capital High-Yield Bond Index²returned more than 10% during the period, with the CCC-rated subsector of that index returning more than 14%. By contrast, the BBB-rated credit tier of the Barclays Capital U.S. Aggregate Bond Index³was the best-performing investment-grade credit tier, returning 1% for the period. The AAA-rated and AA-rated credit tiers declined in value by 1% and 0.6%, respectively.

CMBS spreads continued to tighten significantly as investors continued to shift into the highest-yielding areas of the market. CMBS spreads remained higher than mortgage-backed, asset-backed, and corporate bond spreads during the period, as


1.		The ratings indicated are from Standard & Poor’s and/or Moody’s Investors Service. Credit Quality Ratings: Credit quality ratings apply to corporate and municipal bond issues. Standard & Poor’s rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Ratings from A to CCC may be modified by the addition of a plus (+) or minus (—) sign to show relative standing within the rating categories. Moody’s rates the creditworthiness of bonds, ranging from Aaa (highest) to C (lowest). Ratings Aa to B may be modified by the addition of a number 1 (highest) to 3 (lowest) to show relative standing within the ratings categories. We generally define higher quality fixed income issues as BBB/Baa and above and lower quality fixed income issues as below BBB/Baa.

2.		Barclays Capital High-Yield Bond Index is an index consisting of all domestic and yankee bonds, rated below investment grade, with a minimum outstanding amount of $100 million and maturing over one year. You cannot invest directly in an index.

3.		The Barclays Capital U.S. Aggregate Bond Index is composed of the Barclays Capital Government/Credit Index and the Barclays Capital U.S. Mortgage-Backed Securities Index and includes U.S. Treasury issues, agency issues, corporate bond issues, and mortgage-backed securities. You cannot invest directly in an index.



Letter to Shareholders		Wells Fargo Advantage Income Funds 3

they have been since 2008; however, they finished at their closest levels to those asset classes in three years.

MBS generally produced positive returns during the period, performing strongly on tightening spreads in October 2010 but giving back some performance with the shift higher in Treasury yields in November and December. Asset-backed securities declined a little more than MBS during that period, resulting in a slightly negative return from the asset class during the period. U.S. Treasuries were the lowest-returning broad fixed-income asset class, as the Barclays Capital U.S. Treasury Index⁴declined by 2.72% during the period. The 10-year U.S. Treasury note hit a low yield of 2.39% on October 7, 2010—its lowest yield since the 1950s—before shifting much higher in subsequent months, running up to 3.52% in December and then marking a high of 3.73% on February 8, 2011, before finishing the period at 3.41%.

The Federal Reserve launched a second round of quantitative easing in November.

In early November, the Federal Reserve (Fed) formally announced the launch of its second quantitative easing program (QE2) since the credit crisis of 2008, seeking to spur lending and economic growth. The program intends to build federal reserves and keep long-term yields relatively low by purchasing another $600 billion in U.S. Treasuries over an eight-month period—from November 2010 through June 2011—at a pace of $75 billion per month. Part of the restraint on the economy is the fact that private lending has recently contracted and remained constrained during the period. Despite the massive scale of these programs, quantitative easing has thus far not resulted in significant credit expansion, monetary supply expansion, or increased inflation. When those effects begin to take hold, the Fed will likely begin to draw down its reserves by selling U.S. Treasuries back to the market. Before the program was officially announced, U.S. Treasuries rallied through October, driving already-low nominal yields even lower. However, once QE2 commenced in November, U.S. Treasury yields began to rise again, apparently on the conviction that growth may take hold and that inflation may begin to move higher in upcoming quarters. This effect influenced yields to move higher in several fixed-income classes, resulting in some price declines across the fixed-income asset classes.

Growth expectations appeared to strengthen late in the period.

For the first half of the period, growth expectations remained constrained and inflation lingered at some of its lowest levels on record. These conditions helped extend the U.S. Treasury rally in the opening months of the period; however, as growth expectations seemed to improve in November, investors appeared to look toward the next phase of the economic cycle. This economic optimism appeared to fortify in December, as Treasury yields continued to rise, lower-quality bonds continued to outperform, and growth expectations notably improved. Several economic figures demonstrated continued resiliency during the period, particularly manufacturing indexes, which reached some of their highest


4.		The Barclays Capital U.S. Treasury Index is an index of U.S. Treasury securities. You cannot invest directly in an index.



4 Wells Fargo Advantage Income Funds		Letter to Shareholders

While we cannot say definitively what near-term performance will look like, we continue to encourage investors to maintain fully diversified, actively managed portfolios, which may provide better protection from risk and added opportunities to capture relative value.

expansionary points on record. Unemployment showed signs of healing, with the national unemployment figure shifting below 9% for the first time since the recession began. However, housing data continued to disappoint and energy prices once again surged higher late in the period on heightened political turmoil in the Middle East. Thus, the positive economic optimism continued to face some headwinds in the form of higher commodity prices, languishing housing values, and elevated levels of unemployment, creating some volatility in securities markets during the period. While we cannot say definitively what near-term performance will look like, we continue to encourage investors to maintain fully diversified, actively managed portfolios, which may provide better protection from risk and added opportunities to capture relative value.

In our opinion, diligent and earnest assessment of the fundamental risks in individual fixed-income securities will be a key differentiating factor between which investment strategies perform well and which do not. At Wells Fargo Advantage Funds^®, we intend to continue measuring relative-value opportunities in the fixed-income markets and across our lineup of Wells Fargo Advantage Income Funds. We believe it is particularly important to have diligent investment analysts in charge of investor assets in changing markets. As evidenced by the performance of fixed-income assets during the recent six-month period, heightened risks also often accompany such opportunities.

Don’t let short-term uncertainty derail long-term investment goals.

While periods of uncertainty can present challenges, experience has taught us that maintaining a long-term investment strategy based on individual goals and risk tolerance can be an effective way to plan for the future. As a whole, Wells Fargo Advantage Funds represents investments across a broad range of asset classes and investment styles, giving you an opportunity to create a diversified investment portfolio. While diversification may not prevent losses in a downturn, it may help to reduce them and provide you with one way of managing risk. Our diverse family of mutual funds may also help. We offer more than 120 funds that cover a broad spectrum of investment styles and asset classes.

Thank you for choosing Wells Fargo Advantage Funds. We appreciate your confidence in us. Through each market cycle, we are committed to helping you meet your financial needs. If you have any questions about your investment, please contact your investment professional or call us at 1-800-222-8222. We are available 24 hours a day, 7 days a week. You may also visit our website at www.wellsfargo.com/advantagefunds.

Sincerely,

Karla M. Rabusch
President
Wells Fargo Advantage Funds

This page is intentionally left blank.



6 Wells Fargo Advantage Income Funds		Performance Highlights

Wells Fargo Advantage Adjustable Rate Government Fund

INVESTMENT OBJECTIVE
The Fund seeks current income consistent with capital preservation.

INVESTMENT ADVISER
Wells Fargo Funds Management, LLC

SUB-ADVISER
Wells Capital Management Incorporated

PORTFOLIO MANAGERS
Michael J. Bray, CFA
Christopher Kauffman, CFA

FUND INCEPTION
October 1, 1991


1.		Portfolio allocation is subject to change and is calculated based on the total investments of the Fund.



Performance Highlights		Wells Fargo Advantage Income Funds 7

Wells Fargo Advantage Adjustable Rate Government Fund (continued)

AVERAGE ANNUAL TOTAL RETURN² (%) (AS OF FEBRUARY 28, 2011)


			Including Sales Charge									Excluding Sales Charge								Expense Ratios³
	Inception Date		6 Months*			1 Year		5 Year		10 Year		6 Months*		1 Year		5 Year		10 Year		Gross			Net⁴
Class A (ESAAX)		6/30/2000		(1.07	)		0.95		2.93		3.11		0.99		2.96		3.35		3.32		0.89	%		0.75	%
Class B (ESABX)**		6/30/2000		(0.78	)		0.80		2.74		3.02		0.72		2.30		2.74		3.02		1.64	%		1.50	%
Class C (ESACX)		6/30/2000		(0.28	)		1.30		2.61		2.58		0.72		2.30		2.61		2.58		1.64	%		1.50	%
Administrator Class (ESADX)		7/30/2010											1.06		3.09		3.50		3.48		0.83	%		0.61	%
Institutional Class (EKIZX)		10/1/1991											1.22		3.33		3.64		3.61		0.56	%		0.50	%
Barclays Capital 6-Month Treasury Bill Index⁵													0.15		0.34		2.87		2.67


*		Returns for periods of less than one year are not annualized.

**		Class B shares are closed to investment, except in connection with the reinvestment of any distributions and permitted exchanges.

Figures quoted represent past performance, which is no guarantee of future results and do not reflect the deduction of taxes that a shareholder may pay on fund distributions or the redemption of fund shares. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Performance shown without sales charges would be lower if sales charges were reflected. Current performance may be lower or higher than the performance data quoted. Current month-end performance is available on the Fund’s Web site — www.wellsfargo.com/advantagefunds.

For Class A shares, the maximum front-end sales charge is 2.00%. For Class B shares, the maximum contingent deferred sales charge is 1.50%. For Class C shares the maximum contingent deferred sales charge is 1.00%. Performance including sales charges assumes the sales charge for the corresponding time period. Performance shown without sales charges would be lower if sales charges were reflected. Administrator Class and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.

Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses or any taxes. It is not possible to invest directly in an index.

Bond fund values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. In general, when interest rates rise, bond fund values fall and investors may lose principal value. The use of derivatives may reduce returns and/or increase volatility. Securities issued by U.S. government agencies or government-sponsored entities may not be guaranteed by the U.S. Treasury. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). This Fund is exposed to mortgage- and asset-backed securities risk. Consult the Fund’s prospectus for additional information on these and other risks. The U.S. government guarantee applies to certain underlying securities and not to shares of the Fund.


2.		Performance shown for the Administrator Class shares prior to its inception reflects the performance of the Institutional Class shares, adjusted to reflect the higher expenses applicable to the Administrator Class shares. Historical performance shown for all classes of the Fund prior to July 12, 2010 is based on the performance of the Fund’s predecessor, Evergreen Adjustable Rate Fund.

3.		Reflects the expense ratios as stated in the January 1, 2011 prospectuses.

4.		The investment adviser has contractually committed through July 11, 2013 to waive fees and/or reimburse expenses to the extent necessary to maintain the contractual expense ratio at 0.74% for Class A shares, 1.49% for Class B shares, 1.49% for Class C shares, 0.60% for Administrator Class shares and 0.49% for Institutional Class shares, excluding acquired fund fees and certain other expenses. Without these reductions, the Fund’s returns would have been lower.

5.		The Barclays Capital 6-Month Treasury Bill Index tracks the performance and attributes of recently issued 6-month U.S. Treasury Bills. The index follows Barclays Capital’s monthly rebalancing conventions. You cannot invest directly in an index.



8 Wells Fargo Advantage Income Funds		Performance Highlights

Wells Fargo Advantage Government Securities Fund

INVESTMENT OBJECTIVE
The Fund seeks current income.

INVESTMENT ADVISER
Wells Fargo Funds Management, LLC

SUB-ADVISER
Wells Capital Management Incorporated

PORTFOLIO MANAGERS
Michael J. Bray, CFA
Christopher Kauffman, CFA

FUND INCEPTION
October 29, 1986


1.		Portfolio allocation is subject to change and is calculated based on the total investments of the Fund.



Performance Highlights		Wells Fargo Advantage Income Funds 9

Wells Fargo Advantage Government Securities Fund (continued)

AVERAGE ANNUAL TOTAL RETURN² (%) (AS OF FEBRUARY 28, 2011)


			Including Sales Charge										Excluding Sales Charge									Expense Ratios³
	Inception Date		6 Months*			1 Year			5 Year		10 Year		6 Months*			1 Year		5 Year		10 Year		Gross			Net⁴
Class A (SGVDX)		8/31/1999		(5.89	)		(1.06	)		4.43		4.64		(1.45	)		3.60		5.39		5.12		0.88	%		0.88	%
Class B (WGSBX)**		7/18/2008		(6.82	)		(2.17	)		4.27		4.67		(1.82	)		2.83		4.61		4.67		1.63	%		1.63	%
Class C (WGSCX)		12/26/2002		(2.82	)		1.83			4.59		4.27		(1.82	)		2.83		4.59		4.27		1.63	%		1.63	%
Administrator Class (WGSDX)		4/8/2005												(1.35	)		3.80		5.61		5.42		0.82	%		0.67	%
Institutional Class (SGVIX)		8/31/1999												(1.28	)		3.99		5.83		5.65		0.55	%		0.51	%
Investor Class (STVSX)		10/29/1986												(1.46	)		3.56		5.34		5.17		0.91	%		0.91	%
Barclays Capital U.S. Aggregate Excluding Credit Bond Index⁵														(0.99	)		4.22		5.72	NA
Barclays Capital Intermediate U.S. Government Bond Index⁶														(1.23	)		3.25		5.42		4.89


*		Returns for periods of less than one year are not annualized.

**		Class B shares are closed to investment, except in connection with the reinvestment of any distributions and permitted exchanges.

For Class A shares, the maximum front-end sales charge is 4.50%. For Class B shares, the maximum contingent deferred sales charge is 5.00%. For Class C shares the maximum contingent deferred sales charge is 1.00%. Performance including sales charges assumes the sales charge for the corresponding time period. Administrator Class, Institutional Class, and Investor Class shares are sold without a front-end sales charge or contingent deferred sales charge.

Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses or any taxes. It is not possible to invest directly in an index.

Bond fund values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. In general, when interest rates rise, bond fund values fall and investors may lose principal value. The use of derivatives may reduce returns and/or increase volatility. Securities issued by U.S. government agencies or government sponsored entities may not be guaranteed by the U.S. Treasury. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). This Fund is exposed to active trading risk and mortgage- and asset-backed securities risk. Consult the Fund’s prospectus for additional information on these and other risks. The U.S. government guarantee applies to certain of the underlying securities and not to shares of the Fund.


2.		Effective June 20, 2008, the Advisor Class was renamed Class A and modified to assume the features and attributes of Class A. Performance shown for the Class A shares through June 19, 2008 includes Advisor Class expenses. Performance shown for the Class B and Class C shares prior to their inception reflects the performance of the Investor Class shares, adjusted to reflect the higher expenses applicable to Class B and Class C shares. Performance shown for the Administrator Class shares prior to its inception reflects the performance of the Institutional Class shares, adjusted to reflect the higher expenses applicable to the Administrator Class shares.

3.		Reflects the expense ratios as stated in the January 1, 2011 prospectuses.

4.		The investment adviser has contractually committed through July 11, 2013 to waive fees and/or reimburse expenses to the extent necessary to maintain the contractual expense ratio at 0.89% for Class A shares, 1.64% for Class B shares, 1.64% for Class C shares, 0.64% for Administrator Class shares, 0.48% for Institutional Class shares and 0.92% for Investor Class shares, excluding acquired fund fees and certain other expenses. Without these reductions, the Fund’s returns would have been lower.

5.		The Barclays Capital U.S. Aggregate Excluding Credit Bond Index is composed of the Barclays Capital U.S. Government Bond Index and the Barclays Capital U.S. Mortgage-Backed Securities Index and includes Treasury issues, agency issues, and mortgage-backed securities. The limited performance history of the Barclays Capital U.S. Aggregate Excluding Credit Bond Index does not allow for comparison to all periods of the Fund’s performance. This index has an inception date of May 1, 2001. You cannot invest directly in an index.

6.		The Barclays Capital Intermediate U.S. Government Bond Index is an unmanaged index composed of U.S. Government securities with maturities in the one to ten-year range, including securities issued by the U.S. Treasury and U.S. Government agencies. You cannot invest directly in an index.



10 Wells Fargo Advantage Income Funds		Performance Highlights

Wells Fargo Advantage High Income Fund

INVESTMENT OBJECTIVE
The Fund seeks total return, consisting of a high level of current income and capital appreciation.

INVESTMENT ADVISER
Wells Fargo Funds Management, LLC

SUB-ADVISER
Wells Capital Management Incorporated

PORTFOLIO MANAGERS
Kevin J. Maas, CFA
Thomas M. Price, CFA
Michael J. Schueller, CFA

FUND INCEPTION
December 28, 1995


1.		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 and Poor’s rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Ratings from A to CCC may be modified by the addition of a plus (+) or minus (—) sign to show relative standing within the rating categories. Moody’s rates the creditworthiness of bonds, ranging from Aaa (highest) to C (lowest). Ratings Aa to B may be modified by the addition of a number 1 (highest) to 3 (lowest) to show relative standing within the ratings categories. Fitch rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). If a security was rated by all three rating agencies, the middle rating was utilized. If rated by two of three rating agencies, the lower rating was utilized and if rated by one of the agencies that rating was utilized. Credit quality is subject to change and is calculated based on the total investments of the Fund.



Performance Highlights		Wells Fargo Advantage Income Funds 11

Wells Fargo Advantage High Income Fund (continued)

AVERAGE ANNUAL TOTAL RETURN² (%) (AS OF FEBRUARY 28, 2011)


			Including Sales Charge								Excluding Sales Charge								Expense Ratios³
	Inception Date		6 Months*		1 Year		5 Year		10 Year		6 Months*		1 Year		5 Year		10 Year		Gross			Net⁴
Class A (SHBAX)		2/29/2000		4.10		11.03		6.12		4.96		9.00		16.26		7.10		5.44		1.00	%		0.91	%
Class B (WFNBX)**		7/18/2008		3.75		10.39		6.00		4.97		8.75		15.39		6.32		4.97		1.75	%		1.66	%
Class C (WFNCX)		7/18/2008		7.60		14.40		6.32		4.73		8.60		15.40		6.32		4.73		1.75	%		1.66	%
Administrator Class (WFNDX)		7/30/2010										9.15		16.41		7.24		5.74		0.94	%		0.81	%
Institutional Class (SHYYX)		7/31/2001										9.31		16.80		7.57		6.06		0.67	%		0.51	%
Investor Class (STHYX)		12/28/1995										9.11		16.18		7.11		5.54		1.03	%		0.94	%
Barclays Capital U.S. Corporate High Yield Bond Index⁵												10.10		17.51		9.18		8.33


*		Returns for periods of less than one year are not annualized.

**		Class B shares are closed to investment, except in connection with the reinvestment of any distributions and permitted exchanges.

Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses or any taxes. It is not possible to invest directly in an index.

Bond fund values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. In general, when interest rates rise, bond fund values fall and investors may lose principal value. High-yield securities have a greater risk of default and tend to be more volatile than higher-rated debt securities. Loans are subject to risks similar to those associated with other below investment grade bond investments, such as credit risk (e.g. risk of issuer default), below investment grade bond risk (e.g. risk of greater volatility in value) and risk that the loan may become illiquid or difficult to price. The use of derivatives may reduce returns and/or increase volatility. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). This Fund is exposed to foreign investment risk. Consult the Fund’s prospectus for additional information on these and other risks.


2.		Effective June 20, 2008, the Advisor Class was renamed Class A and modified to assume the features and attributes of Class A. Performance shown for the Class A shares from February 29, 2000, through June 19, 2008, includes Advisor Class expenses. Performance shown for the Class B and Class C shares prior to their inception reflects the performance of the Investor Class shares, adjusted to reflect the higher expenses applicable to Class B and Class C shares. Performance shown for the Administrator Class shares prior to its inception reflects the performance of the Institutional Class shares, adjusted to reflect the higher expenses applicable to the Administrator Class shares. Performance shown for the Institutional Class shares prior to its inception reflects the performance of the Investor Class shares and includes the higher expenses applicable to the Investor Class shares. If these expenses had not been included, returns would be higher.

3.		Reflects the expense ratios as stated in the January 1, 2011 prospectuses.

4.		The investment adviser has contractually committed through July 11, 2013 to waive fees and/or reimburse expenses to the extent necessary to maintain the contractual expense ratio at 0.90% for Class A shares, 1.65% for Class B shares, 1.65% for Class C shares, 0.80% for Administrator Class shares, 0.50% for Institutional Class shares, and 0.93% for Investor Class shares, excluding acquired fund fees and certain other expenses. Without these reductions, the Fund’s returns would have been lower.

5.		The Barclays Capital U.S. Corporate High Yield Bond Index is an unmanaged, U.S. dollar-denominated, nonconvertible, non-investment grade debt index. The index consists of domestic and corporate bonds rated Ba and below with a minimum outstanding amount of $150 million. You cannot invest directly in an index.



12 Wells Fargo Advantage Income Funds		Performance Highlights

Wells Fargo Advantage High Yield Bond Fund

INVESTMENT OBJECTIVE
The Fund seeks total return, consisting of a high level of current income and capital appreciation.

INVESTMENT ADVISER
Wells Fargo Funds Management, LLC

SUB-ADVISER
Wells Capital Management Incorporated

PORTFOLIO MANAGERS
Niklas Nordenfelt, CFA
Phillip Susser

FUND INCEPTION
September 11, 1935


1.		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 and Poor’s rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Ratings from A to CCC may be modified by the addition of a plus (+) or minus (—) sign to show relative standing within the rating categories. Moody’s rates the creditworthiness of bonds, ranging from Aaa (highest) to C (lowest). Ratings Aa to B may be modified by the addition of a number 1 (highest) to 3 (lowest) to show relative standing within the ratings categories. Fitch rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). If a security was rated by all three rating agencies, the middle rating was utilized. If rated by two of three rating agencies, the lower rating was utilized and if rated by one of the agencies that rating was utilized. Credit quality is subject to change and is calculated based on the total investments of the Fund.



Performance Highlights		Wells Fargo Advantage Income Funds 13

Wells Fargo Advantage High Yield Bond Fund (continued)

AVERAGE ANNUAL TOTAL RETURN² (%) (AS OF FEBRUARY 28, 2011)


			Including Sales Charge								Excluding Sales Charge								Expense Ratios³
	Inception Date		6 Months*		1 Year		5 Year		10 Year		6 Months*		1 Year		5 Year		10 Year		Gross			Net⁴
Class A (EKHAX)		1/20/1998		3.00		9.59		6.53		6.93		7.72		14.73		7.53		7.41		1.10	%		1.10	%
Class B (EKHBX)**		9/11/1935		2.33		8.88		6.45		6.87		7.33		13.88		6.74		6.87		1.85	%		1.85	%
Class C (EKHCX)		1/21/1998		6.33		12.88		6.74		6.63		7.33		13.88		6.74		6.63		1.85	%		1.85	%
Administrator Class (EKHYX)		4/14/1998										7.85		15.00		7.81		7.70		1.04	%		0.88	%
BofA Merrill Lynch High Yield Master Index⁵												9.63		17.23		8.93		8.28
BofA Merrill Lynch U.S. High Yield Master II Constrained Index⁶												9.75		17.10		9.11		8.29


*		Returns for periods of less than one year are not annualized.

**		Class B shares are closed to investment, except in connection with the reinvestment of any distributions and permitted exchanges.

For Class A shares, the maximum front-end sales charge is 4.50%. For Class B shares, the maximum contingent deferred sales charge is 5.00%. For Class C shares the maximum contingent deferred sales charge is 1.00%. Performance including sales charges assumes the sales charge for the corresponding time period. Administrator Class shares are sold without a front-end sales charge or contingent deferred sales charge.

Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses or any taxes. It is not possible to invest directly in an index.

Bond fund values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. In general, when interest rates rise, bond fund values fall and investors may lose principal value. High-yield securities have a greater risk of default and tend to be more volatile than higher-rated debt securities. Loans are subject to risks similar to those associated with other below investment grade bond investments, such as credit risk (e.g. risk of issuer default), below investment grade bond risk (e.g. risk of greater volatility in value) and risk that the loan may become illiquid or difficult to price. The use of derivatives may reduce returns and/or increase volatility. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). This Fund is exposed to active trading risk. Consult the Fund’s prospectus for additional information on these and other risks.


2.		Historical performance shown for all classes of the Fund prior to July 12, 2010 is based on the performance of the fund’s predecessor, Evergreen High Income Fund.

3.		Reflects the expense ratios as stated in the January 1, 2011 prospectuses.

4.		The investment adviser has contractually committed through July 11, 2013 to waive fees and/or reimburse expenses to the extent necessary to maintain the contractual expense ratio at 1.03% for Class A shares, 1.78% for Class B shares, 1.78% for Class C shares and 0.80% for Administrator Class shares, excluding acquired fund fees and certain other expenses. Without these reductions, the Fund’s returns would have been lower.

5.		The BofA Merrill Lynch High Yield Master Index is a market capitalization-weighted index of domestic and Yankee high-yield bonds. The index tracks the performance of high-yield securities traded in the U.S. bond market. The primary index was changed from BofA Merrill Lynch High Yield Master Index to BofA Merrill Lynch U.S. High Yield Master II Constrained Index. You cannot invest directly in an index.

6.		The BofA Merrill Lynch U.S. High Yield Master II Constrained Index is a market value-weighted index of all domestic and yankee high-yield bonds, including deferred interest bonds and payment-inkind securities. Issues included in the index have maturities of one year or more and have a credit rating lower than BBB—/Baa3, but are not in default. The BofA Merrill Lynch U.S. High Yield Master II Constrained Index limits any individual issuer to a maximum of 2% benchmark exposure. You cannot invest directly in an index.



14 Wells Fargo Advantage Income Funds		Performance Highlights

Wells Fargo Advantage Income Plus Fund

INVESTMENT OBJECTIVE
The Fund seeks total return, consisting of income and capital appreciation.

INVESTMENT ADVISER
Wells Fargo Funds Management, LLC

SUB-ADVISER
Wells Capital Management Incorporated

PORTFOLIO MANAGERS
Michael J. Bray, CFA
D. James Newton II, CFA, CPA
Thomas M. Price, CFA
Janet S. Rilling, CFA, CPA

FUND INCEPTION
July 13, 1998


1.		Portfolio allocation is subject to change and is calculated based on the total investments of the Fund.



Performance Highlights		Wells Fargo Advantage Income Funds 15

Wells Fargo Advantage Income Plus Fund (continued)

AVERAGE ANNUAL TOTAL RETURN² (%) (AS OF FEBRUARY 28, 2011)


			Including Sales Charge									Excluding Sales Charge									Expense Ratios³
	Inception Date		6 Months*			1 Year		5 Year		10 Year		6 Months*			1 Year		5 Year		10 Year		Gross			Net⁴
Class A (STYAX)		7/13/1998		(4.56	)		1.63		5.71		5.68		(0.03	)		6.40		6.68		6.17		0.91	%		0.91	%
Class B (STYBX)**		7/13/1998		(5.33	)		0.64		5.55		5.61		(0.33	)		5.64		5.87		5.61		1.66	%		1.66	%
Class C (WFIPX)		7/13/1998		(1.40	)		4.69		5.88		5.38		(0.40	)		5.69		5.88		5.38		1.66	%		1.66	%
Administrator Class (WIPDX)		7/30/2010											(0.02	)		6.49		6.69		6.10		0.85	%		0.78	%
Institutional Class (WIPIX)		7/18/2008											0.14			6.73		6.85		6.25		0.58	%		0.58	%
Investor Class (WIPNX)		7/18/2008											(0.05	)		6.36		6.66		6.16		0.94	%		0.94	%
Barclays Capital U.S. Universal Bond Index⁵													(0.17	)		5.75		5.91		5.85


*		Returns for periods of less than one year are not annualized.

**		Class B shares are closed to investment, except in connection with the reinvestment of any distributions and permitted exchanges.

For Class A shares, the maximum front-end sales charge is 4.50%. For Class B shares, the maximum contingent deferred sales charge is 5.00%. For Class C shares, the maximum contingent deferred sales charge is 1.00%. Performance including sales charges assumes the sales charge for the corresponding time period. Administrator Class, Institutional Class, and Investor Class shares are sold without a front-end sales charge or contingent deferred sales charge.

Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses or any taxes. It is not possible to invest directly in an index.

Bond fund values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. In general, when interest rates rise, bond fund values fall and investors may lose principal value. The use of derivatives may reduce returns and/or increase volatility. Active trading results in increased turnover and trading expenses and may generate higher short-term capital gains. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). This Fund is exposed to foreign investment risk, high-yield securities risk, and mortgage and asset-backed securities risk. Consult the Fund’s prospectus for additional information on these and other risks.


2.		Performance shown for the Administrator Class shares prior to its inception reflects the performance of the Institutional Class shares, adjusted to include the higher expenses applicable to the Administrator Class shares. Performance shown for the Institutional Class shares prior to its inception reflects the performance of the Class A shares, and includes the higher expenses applicable to the Class A shares. If these expenses had not been included, returns would be higher. Performance shown for the Investor Class shares prior to its inception reflects the performance of the Class A shares, adjusted to include the higher expenses applicable to the Investor Class shares.

3.		Reflects the expense ratios as stated in the January 1, 2011 prospectuses.

4.		The investment adviser has contractually committed through July 11, 2013 to waive fees and/or reimburse expenses to the extent necessary to maintain the contractual expense ratio at 0.90% for Class A shares, 1.65% for Class B shares, 1.65% for Class C shares, 0.75% for Administrator Class shares, 0.61% for Institutional Class shares and 0.93% for Investor Class shares, excluding acquired fund fees and certain other expenses. Without these waivers and/or reimbursements, the Fund’s returns would have been lower.

5.		The Barclays Capital U.S. Universal Bond Index is an unmanaged market value-weighted performance benchmark for the U.S. dollar denominated bond market, which includes investment-grade, high yield, and emerging market debt securities with maturities of one year or more. You cannot invest directly in an index.



16 Wells Fargo Advantage Income Funds		Performance Highlights

Wells Fargo Advantage Short Duration Government Bond Fund

INVESTMENT OBJECTIVE
The Fund seeks to provide current income consistent with capital preservation.

INVESTMENT ADVISER
Wells Fargo Funds Management, LLC

SUB-ADVISER
Wells Capital Management Incorporated

PORTFOLIO MANAGERS
Thomas O’Connor, CFA
Troy Ludgood

FUND INCEPTION
December 18, 1992


1.		Portfolio allocation is subject to change and is calculated based on the total investments of the Fund.


Performance Highlights		Wells Fargo Advantage Income Funds 17

Wells Fargo Advantage Short Duration Government Bond Fund (continued)

AVERAGE ANNUAL TOTAL RETURN²(%) (AS OF FEBRUARY 28, 2011)


			Including Sales Charge										Excluding Sales Charge								Expense Ratios³
	Inception Date		6 Months*			1 Year			5 Year		10 Year		6 Months*		1 Year		5 Year		10 Year		Gross			Net⁴
Class A (MSDAX)		3/11/1996		(2.46	)		(0.40	)		4.13		3.69		0.56		2.68		4.76		4.00		0.87	%		0.84	%
Class B (MSDBX)**		5/31/2002		(2.81	)		(1.09	)		4.14		3.73		0.19		1.91		4.14		3.73		1.62	%		1.59	%
Class C (MSDCX)		5/31/2002		(0.81	)		0.81			3.96		3.26		0.19		1.81		3.96		3.26		1.62	%		1.59	%
Administrator Class (MNSGX)		12/18/1992												0.67		2.82		5.00		4.27		0.81	%		0.61	%
Institutional Class (WSGIX)		4/8/2005												0.76		3.01		5.19		4.38		0.54	%		0.43	%
Barclays Capital 1-3 Year U.S. Government Bond Index⁵														0.14		1.53		4.27		3.88


*		Returns for periods of less than one year are not annualized.

**		Class B shares are closed to investment, except in connection with the reinvestment of any distributions and permitted exchanges.

For Class A shares, the maximum front-end sales charge is 3.00%. For Class B shares, the maximum contingent deferred sales charge is 3.00%. For Class C shares, the maximum contingent deferred sales charge is 1.00%. Performance including sales charges assumes the sales charge for the corresponding time period. Administrator Class and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.

Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses or any taxes. It is not possible to invest directly in an index.

Bond fund values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. In general, when interest rates rise, bond fund values fall and investors may lose principal value. The use of derivatives may reduce returns and/or increase volatility. Securities issued by U.S. government agencies or government sponsored entities may not be guaranteed by the U.S. Treasury. Active trading results in increased turnover and trading expenses and may generate higher short-term capital gains. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). This Fund is exposed to mortgage- and asset-backed securities risk. Consult the Fund’s prospectus for additional information on these and other risks. The U.S. government guarantee applies to certain underlying securities and not to shares of the Fund.


2.		Performance shown for the Class B and Class C shares prior to their inception reflects the performance of the Administrator Class shares, adjusted to include the higher expenses applicable to Class B and Class C shares. Performance shown for the Institutional Class shares prior to its inception reflects the performance of the Administrator Class shares, and includes the higher expenses applicable to the Administrator Class shares. If these expenses had not been included, returns would be higher.

3.		Reflects the expense ratios as stated in the January 1, 2011 prospectuses.

4.		The investment adviser has contractually committed through December 31, 2011 to waive fees and/or reimburse expenses to the extent necessary to maintain the contractual expense ratio at 0.83% for Class A shares, 1.58% for Class B shares, 1.58% for Class C shares, 0.60% for Administrator Class shares and 0.42% for Institutional Class shares, excluding acquired fund fees and certain other expenses. Without these reductions, the Fund’s returns would have been lower.

5.		The Barclays Capital 1-3 Year U.S. Government Bond Index is the 1-3 year component of the Barclays Capital U.S. Government Bond Index and is composed of all publicly issued, non-convertible domestic debt of the U.S. Government and its agencies. The Barclays Capital 1-3 Year U.S. Government Bond Index also includes corporate debt guaranteed by the U.S. Government. Only notes and bonds with a minimum maturity of one year up to a maximum maturity of 2.9 years are included. You cannot invest directly in an index.


18 Wells Fargo Advantage Income Funds		Performance Highlights

Wells Fargo Advantage Short-Term Bond Fund

INVESTMENT OBJECTIVE

The Fund seeks current income consistent with capital preservation.

INVESTMENT ADVISER

Wells Fargo Funds Management, LLC

SUB-ADVISER

Wells Capital Management Incorporated

PORTFOLIO MANAGERS

Jay N. Mueller, CFA
D. James Newton II, CFA, CPA
Christopher Kauffman, CFA

FUND INCEPTION

August 31, 1987


1.		Portfolio allocation is subject to change and is calculated based on the total investments of the Fund.


Performance Highlights		Wells Fargo Advantage Income Funds 19

Wells Fargo Advantage Short-Term Bond Fund (continued)

AVERAGE ANNUAL TOTAL RETURN²(%) (AS OF FEBRUARY 28, 2011)


			Including Sales Charge									Excluding Sales Charge								Expense Ratios³
	Inception Date		6 Months*			1 Year		5 Year		10 Year		6 Months*		1 Year		5 Year		10 Year		Gross			Net⁴
Class A (SSTVX)		8/31/1999		(2.02	)		0.03		3.81		2.91		1.01		3.12		4.45		3.22		0.91	%		0.81	%
Class C (WFSHX)		3/31/2008		(0.48	)		1.35		3.64		2.55		0.52		2.35		3.64		2.55		1.66	%		1.56	%
Institutional Class (SSHIX)		8/31/1999											1.05		3.45		4.77		3.70		0.58	%		0.49	%
Investor Class (SSTBX)		8/31/1987											0.88		3.08		4.38		3.27		0.94	%		0.84	%
Barclays Capital 1-3 Year U.S. Government/Credit Bond Index⁵													0.38		1.98		4.50		4.14


*		Returns for periods of less than one year are not annualized.

For Class A shares, the maximum front-end sales charge is 3.00%. For Class C shares the maximum contingent deferred sales charge is 1.00%. Performance including sales charges assumes the sales charge for the corresponding time period. Institutional Class and Investor Class shares are sold without a front-end sales charge or contingent deferred sales charge.

Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses or any taxes. It is not possible to invest directly in an index.


2.		Effective June 20, 2008, the Advisor Class was renamed Class A and modified to assume the features and attributes of Class A. Performance shown for the Class A shares through June 19, 2008 includes Advisor Class expenses. Performance shown for the Class C shares prior to its inception reflects the performance of the Investor Class shares, adjusted to include the higher expenses applicable to Class C shares.

3.		Reflects the expense ratios as stated in the January 1, 2011 prospectuses.

4.		The investment adviser has contractually committed through December 31, 2011 to waive fees and/or reimburse expenses to the extent necessary to maintain the contractual expense ratio at 0.80% for Class A shares, 1.55% for Class C shares, 0.48% for Institutional Class shares and 0.83% for Investor Class shares, excluding acquired fund fees and certain other expenses. Without these reductions, the Fund’s returns would have been lower.

5.		The Barclays Capital 1-3 Year U.S. Government/Credit Bond Index is a subset of the Barclays Capital U.S. Government/Credit Bond Index that only includes those securities with maturities between one and three years. The Barclays Capital U.S. Government/Credit Bond Index includes treasuries (i.e., publicly issued debt of U.S. Government agencies, quasi-federal corporations, and corporate or foreign debt guaranteed by the U.S. Government), and publicly issued U.S. corporate and foreign debentures and secured notes that meet specified maturity, liquidity, and quality requirements. You cannot invest directly in an index.


20 Wells Fargo Advantage Income Funds		Performance Highlights

Wells Fargo Advantage Short-Term High Yield Bond Fund

INVESTMENT OBJECTIVE

The Fund seeks total return, consisting of a high level of current income and capital appreciation.

INVESTMENT ADVISER

Wells Fargo Funds Management, LLC

SUB-ADVISER

Wells Capital Management Incorporated

PORTFOLIO MANAGERS

Kevin J. Maas, CFA
Thomas M. Price, CFA
Michael J. Schueller, CFA

FUND INCEPTION

June 30, 1997


1.		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 and Poor’s rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Ratings from A to CCC may be modified by the addition of a plus (+) or minus (—) sign to show relative standing within the rating categories. Moody’s rates the creditworthiness of bonds, ranging from Aaa (highest) to C (lowest). Ratings Aa to B may be modified by the addition of a number 1 (highest) to 3 (lowest) to show relative standing within the ratings categories. Fitch rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). If a security was rated by all three rating agencies, the middle rating was utilized. If rated by two of three rating agencies, the lower rating was utilized and if rated by one of the agencies that rating was utilized. Credit quality is subject to change and is calculated based on the total investments of the Fund.


Performance Highlights		Wells Fargo Advantage Income Funds 21

Wells Fargo Advantage Short-Term High Yield Bond Fund (continued)

AVERAGE ANNUAL TOTAL RETURN²(%) (AS OF FEBRUARY 28, 2011)


			Including Sales Charge								Excluding Sales Charge								Expense Ratios³
	Inception Date		6 Months*		1 Year		5 Year		10 Year		6 Months*		1 Year		5 Year		10 Year		Gross			Net⁴
Class A (SSTHX)		2/29/2000		1.00		4.06		4.35		3.40		4.13		7.27		4.99		3.72		1.01	%		0.82	%
Class C (WFHYX)		3/31/2008		2.74		5.47		4.21		3.05		3.74		6.47		4.21		3.05		1.76	%		1.57	%
Administrator Class (WDHYX)		7/30/2010										4.22		7.34		5.00		3.72		0.95	%		0.66	%
Investor Class (STHBX)		6/30/1997										4.11		7.24		4.97		3.78		1.04	%		0.85	%
Short-Term High Yield Bond Index III⁵												6.92		13.53		8.39		7.56
BofA Merrill Lynch High Yield U.S. Corporates, Cash Pay, BB Rated, 1-5 Year Index⁶												6.37		12.94		8.19		7.14


*		Returns for periods of less than one year are not annualized.

For Class A shares, the maximum front-end sales charge is 3.00%. For Class C shares the maximum contingent deferred sales charge is 1.00%. Performance including sales charges assumes the sales charge for the corresponding time period. Administrator Class and Investor Class shares are sold without a front-end sales charge or contingent deferred sales charge

Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses or any taxes. It is not possible to invest directly in an index.


2.		Effective June 20, 2008, the Advisor Class was renamed Class A and modified to assume the features and attributes of Class A. Performance shown for the Class A shares from February 29, 2000 through June 19, 2008 includes Advisor Class expenses. Performance shown for the Class C shares prior to its inception reflects the performance of the Investor Class shares, adjusted to include the higher expenses applicable to Class C shares. Performance shown for the Administrator Class shares prior to its inception reflects the performance of the Class A shares, and includes the higher expenses applicable to Class A. If these expenses had not been included, returns would be higher.

3.		Reflects the expense ratios as stated in the January 1, 2011 prospectuses.

4.		The investment adviser has contractually committed through December 31, 2011 to waive fees and/or reimburse expenses to the extent necessary to maintain the contractual expense ratio at 0.81% for Class A shares, 1.56% for Class C shares, 0.65% for Administrator Class shares, and 0.84% for Investor Class shares, excluding acquired fund fees and certain other expenses. Without these reductions, the Fund’s returns would have been lower.

5.		The Short-Term High Yield Bond Index III is comprised of 70% BofA Merrill Lynch High Yield U.S. Corporates, Cash Pay, BB Rated, 1-5 Year Index and the 30% BofA Merrill Lynch High Yield U.S. Corporates, Cash Pay, B Rated, 1-5 Year Index. The BofA Merrill Lynch High Yield U.S. Corporates, Cash Pay, BB Rated, 1-5 Year Index is an unmanaged index that generally tracks the performance of BB rated US dollar-denominated corporate bonds publicly issued in the U.S. domestic market with maturities of one to five years. The BofA Merrill Lynch High Yield U.S. Corporates, Cash Pay, B Rated, 1-5 Year Index is an unmanaged index that generally tracks the performance of B rated US dollar-denominated corporate bonds publicly issued in the US domestic market with maturities of one to five years. You cannot invest directly in an index.

6.		The BofA Merrill Lynch High Yield U.S. Corporates, Cash Pay, BB Rated, 1-5 Year Index is an unmanaged index that generally tracks the performance of BB rated U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market with maturities of one to five years. You cannot invest directly in an index.


22 Wells Fargo Advantage Income Funds		Performance Highlights

Wells Fargo Advantage Ultra Short-Term Income Fund

INVESTMENT OBJECTIVE

The Fund seeks current income consistent with capital preservation.

INVESTMENT ADVISER

Wells Fargo Funds Management, LLC

SUB-ADVISER

Wells Capital Management Incorporated

PORTFOLIO MANAGERS

Christopher Kauffman, CFA
Jay N. Mueller, CFA
D. James Newton II, CFA, CPA
Thomas M. Price, CFA

FUND INCEPTION

November 25, 1988


1.		Portfolio allocation is subject to change and is calculated based on the total investments of the Fund.

2.		Effective June 20, 2008, the Advisor Class was renamed Class A and modified to assume the features and attributes of Class A. Performance shown for the Class A shares from August 31, 1999 through June 19, 2008 includes Advisor Class expenses. Performance shown for the Class C shares prior to its inception reflects the performance of the Investor Class shares, adjusted to include the higher expenses applicable to Class C shares. Performance shown for the Administrator Class shares prior to its inception reflects the performance of the Institutional Class shares, adjusted to include the higher expenses applicable to the Administrator Class shares.

3.		Reflects the expense ratios as stated in the January 1, 2011 prospectuses.

4.		The investment adviser has contractually committed through July 11, 2013 to waive fees and/or reimburse expenses to the extent necessary to maintain the contractual expense ratio at 0.70% for Class A shares, 1.45% for Class C shares, 0.55% for Administrator Class shares, 0.35% for Institutional Class shares and 0.73% for Investor Class shares, excluding acquired fund fees and certain other expenses. Without these reductions, the Fund’s returns would have been lower.


Performance Highlights		Wells Fargo Advantage Income Funds 23

Wells Fargo Advantage Ultra Short-Term Income Fund (continued)

AVERAGE ANNUAL TOTAL RETURN²(%) (AS OF FEBRUARY 28, 2011)


			Including Sales Charge									Excluding Sales Charge								Expense Ratios³
	Inception Date		6 Months*			1 Year		5 Year		10 Year		6 Months*		1 Year		5 Year		10 Year		Gross			Net⁴
Class A (SADAX)		8/31/1999		(0.73	)		0.70		2.12		2.13		1.30		2.76		2.54		2.34		0.89	%		0.71	%
Class C (WUSTX)		7/18/2008		(0.07	)		1.11		1.77		1.71		0.93		2.11		1.77		1.71		1.64	%		1.46	%
Administrator Class (WUSDX)		4/8/2005											1.50		2.91		2.70		2.61		0.83	%		0.56	%
Institutional Class (SADIX)		8/31/1999											1.60		3.24		2.93		2.89		0.56	%		0.36	%
Investor Class (STADX)		11/25/1988											1.29		2.72		2.49		2.43		0.92	%		0.74	%
Barclays Capital Short-Term U.S. Government/Credit Bond Index⁵													0.30		0.88		3.40	NA
Barclays Capital 9-12 Month U.S. Short Treasury Index⁶													0.21		0.55		3.17		2.91
Barclays Capital 1-3 Year U.S. Government/Credit Bond Index⁷													0.38		1.98		4.50		4.14


*		Returns for periods of less than one year are not annualized.

For Class A shares, the maximum front-end sales charge is 2.00%. For Class C shares the maximum contingent deferred sales charge is 1.00%. Performance including sales charges assumes the sales charge for the corresponding time period. Administrator Class, Institutional Class, and Investor Class shares are sold without a front-end sales charge or contingent deferred sales charge.

Index returns do not include transaction costs associated with buying and selling securities, any mutual fund fees or expenses or any taxes. It is not possible to invest directly in an index.


5.		The Barclays Capital Short-Term U.S. Government/Credit Bond Index contains securities that have fallen out of the U.S. Government/Credit Index because of the standard minimum one-year to maturity constraint. Securities in the Short-Term U.S. Government/Credit Bond Index must have a maturity from 1 up to (but not including) 12 months. However, the limited performance history of the index does not allow for comparison to all periods of the Fund’s performance. This index has an inception date of August 1, 2004. You cannot invest directly in an index.

6.		The Barclays Capital 9-12 Month U.S. Short Treasury Index includes aged U.S. treasury bills, notes and bonds with a remaining maturity from 9 up to (but not including) 12 months. It excludes zero coupon strips. You cannot invest directly in an index.

7.		The Barclays Capital 1-3 Year U.S. Government/Credit Bond Index is the 1-3 year component of the Barclays Capital Government/Credit Bond Index which includes securities in the Government and Credit Indices. The Government Index includes treasuries (i.e., public obligations of the U.S. Treasury that have remaining maturities of more than one year) and agencies (i.e., publicly issued debt of U.S. Government agencies, quasi-federal corporations, and corporate or foreign debt guaranteed by the U.S. Government). The Credit Index includes publicly issued U.S. corporate and foreign debentures and secured notes that meet specified maturity, liquidity, and quality requirements. You cannot invest directly in an index.


24 Wells Fargo Advantage Income Funds		Fund Expenses

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, redemption fees (if any) and exchange fees (if any); and (2) ongoing costs, including management fees; distribution (12b-1) and/or shareholder service fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from September 1, 2010 to February 28, 2011.

Actual expenses

The “Actual” line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the “Actual” line under the heading entitled “Expenses Paid During Period” for your applicable class of shares to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes

The “Hypothetical” line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund with other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the “Hypothetical” line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.


	Beginning		Ending		Expenses
	Account Value		Account Value		Paid During		Net Annual
	09-01-2010		02-28-2011		the Period¹		Expense Ratio
Wells Fargo Advantage Adjustable Rate Government Fund

Class A
Actual	$	1,000.00	$	1,009.88	$	3.69		0.74	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.12	$	3.71		0.74	%

Class B
Actual	$	1,000.00	$	1,007.23	$	7.42		1.49	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.41	$	7.45		1.49	%

Class C
Actual	$	1,000.00	$	1,007.24	$	7.42		1.49	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.41	$	7.45		1.49	%

Administrator Class
Actual	$	1,000.00	$	1,010.56	$	2.99		0.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.82	$	3.01		0.60	%

Institutional Class
Actual	$	1,000.00	$	1,012.24	$	2.44		0.49	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.36	$	2.46		0.49	%


Fund Expenses		Wells Fargo Advantage Income Funds 25


	Beginning		Ending		Expenses
	Account Value		Account Value		Paid During		Net Annual
	09-01-2010		02-28-2011		the Period¹		Expense Ratio
Wells Fargo Advantage Government Securities Fund

Class A
Actual	$	1,000.00	$	985.47	$	4.14		0.84	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.63	$	4.21		0.84	%

Class B
Actual	$	1,000.00	$	981.83	$	7.81		1.59	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.91	$	7.95		1.59	%

Class C
Actual	$	1,000.00	$	981.82	$	7.81		1.59	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.91	$	7.95		1.59	%

Administrator Class
Actual	$	1,000.00	$	986.45	$	3.15		0.64	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.62	$	3.21		0.64	%

Institutional Class
Actual	$	1,000.00	$	987.23	$	2.37		0.48	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.41	$	2.41		0.48	%

Investor Class
Actual	$	1,000.00	$	985.36	$	4.28		0.87	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.48	$	4.36		0.87	%

Wells Fargo Advantage High Income Fund

Class A
Actual	$	1,000.00	$	1,090.00	$	4.66		0.90	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.33	$	4.51		0.90	%

Class B
Actual	$	1,000.00	$	1,087.50	$	8.54		1.65	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.61	$	8.25		1.65	%

Class C
Actual	$	1,000.00	$	1,085.99	$	8.53		1.65	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.61	$	8.25		1.65	%

Administrator Class
Actual	$	1,000.00	$	1,091.53	$	4.15		0.80	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.83	$	4.01		0.80	%

Institutional Class
Actual	$	1,000.00	$	1,093.12	$	2.59		0.50	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.32	$	2.51		0.50	%

Investor Class
Actual	$	1,000.00	$	1,091.12	$	4.82		0.93	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.18	$	4.66		0.93	%

Wells Fargo Advantage High Yield Bond Fund

Class A
Actual	$	1,000.00	$	1,077.25	$	5.30		1.03	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.69	$	5.16		1.03	%

Class B
Actual	$	1,000.00	$	1,073.27	$	9.15		1.78	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.97	$	8.90		1.78	%

Class C
Actual	$	1,000.00	$	1,073.28	$	9.15		1.78	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.97	$	8.90		1.78	%

Administrator Class
Actual	$	1,000.00	$	1,078.45	$	4.12		0.80	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.83	$	4.01		0.80	%


26 Wells Fargo Advantage Income Funds		Fund Expenses


	Beginning		Ending		Expenses
	Account Value		Account Value		Paid During		Net Annual
	09-01-2010		02-28-2011		the Period¹		Expense Ratio
Wells Fargo Advantage Income Plus Fund

Class A
Actual	$	1,000.00	$	999.71	$	4.31		0.87	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.48	$	4.36		0.87	%

Class B
Actual	$	1,000.00	$	996.72	$	8.02		1.62	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.76	$	8.10		1.62	%

Class C
Actual	$	1,000.00	$	995.98	$	8.02		1.62	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.76	$	8.10		1.62	%

Administrator Class
Actual	$	1,000.00	$	999.82	$	3.72		0.75	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.08	$	3.76		0.75	%

Institutional Class
Actual	$	1,000.00	$	1,001.37	$	2.68		0.54	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.12	$	2.71		0.54	%

Investor Class
Actual	$	1,000.00	$	999.55	$	4.46		0.90	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.33	$	4.51		0.90	%

Wells Fargo Advantage Short Duration Government Bond Fund

Class A
Actual	$	1,000.00	$	1,005.58	$	4.13		0.83	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.68	$	4.16		0.83	%

Class B
Actual	$	1,000.00	$	1,001.87	$	7.84		1.58	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.96	$	7.90		1.58	%

Class C
Actual	$	1,000.00	$	1,001.86	$	7.84		1.58	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.96	$	7.90		1.58	%

Administrator Class									��
Actual	$	1,000.00	$	1,006.73	$	2.99		0.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.82	$	3.01		0.60	%

Institutional Class
Actual	$	1,000.00	$	1,007.63	$	2.09		0.42	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.71	$	2.11		0.42	%

Wells Fargo Advantage Short-Term Bond Fund

Class A
Actual	$	1,000.00	$	1,010.09	$	3.99		0.80	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.83	$	4.01		0.80	%

Class C
Actual	$	1,000.00	$	1,005.19	$	7.71		1.55	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.11	$	7.75		1.55	%

Institutional Class
Actual	$	1,000.00	$	1,010.53	$	2.39		0.48	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.41	$	2.41		0.48	%

Investor Class
Actual	$	1,000.00	$	1,008.78	$	4.13		0.83	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.68	$	4.16		0.83	%


Fund Expenses		Wells Fargo Advantage Income Funds 27


	Beginning		Ending		Expenses
	Account Value		Account Value		Paid During		Net Annual
	09-01-2010		02-28-2011		the Period¹		Expense Ratio
Wells Fargo Advantage Short-Term High Yield Bond Fund

Class A
Actual	$	1,000.00	$	1,041.25	$	4.10		0.81	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.78	$	4.06		0.81	%

Class C
Actual	$	1,000.00	$	1,037.40	$	7.88		1.56	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.06	$	7.80		1.56	%

Administrator Class
Actual	$	1,000.00	$	1,042.16	$	3.29		0.65	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.57	$	3.26		0.65	%

Investor Class
Actual	$	1,000.00	$	1,041.12	$	4.25		0.84	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.63	$	4.21		0.84	%

Wells Fargo Advantage Ultra Short-Term Income Fund

Class A
Actual	$	1,000.00	$	1,013.01	$	3.49		0.70	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.32	$	3.51		0.70	%

Class C
Actual	$	1,000.00	$	1,009.26	$	7.22		1.45	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.60	$	7.25		1.45	%

Administrator Class
Actual	$	1,000.00	$	1,014.99	$	2.75		0.55	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.07	$	2.76		0.55	%

Institutional Class
Actual	$	1,000.00	$	1,015.96	$	1.75		0.35	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.06	$	1.76		0.35	%

Investor Class
Actual	$	1,000.00	$	1,012.87	$	3.64		0.73	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.17	$	3.66		0.73	%


1.		Expenses paid is equal to each class’ annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half year divided by the number of days in the fiscal year (to reflect the one-half year period).


28 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

ADJUSTABLE RATE GOVERNMENT FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Agency Securities: 95.55%

Federal Agricultural Mortgage Corporation: 0.22%
$	2,741,370	FAMC Series 2000-A Class A±		6.78	%		12/15/2039	$	2,748,153


Federal Home Loan Bank: 2.71%
	2,835,743	FHLB±		2.57			06/01/2026		3,001,509
	3,263,581	FHLB±		3.78			06/01/2029		3,441,805
	279,443	FHLB±		2.98			06/01/2032		281,546
	514,734	FHLB±		2.65			05/01/2033		537,963
	4,856,285	FHLB±		2.45			08/01/2033		5,081,624
	5,082,342	FHLB±		2.67			05/01/2034		5,339,454
	2,570,743	FHLB±		2.78			07/01/2034		2,698,989
	7,686,936	FHLB±		2.67			06/01/2035		8,119,090
	3,985,801	FHLB±		5.02			06/01/2035		4,202,651
	403,540	FHLB±		2.70			08/01/2035		408,114

									33,112,745


Federal Home Loan Mortgage Corporation: 26.07%
	95,735	FHLMC		7.00			11/01/2012		100,481
	62,073	FHLMC		7.50			01/01/2016		67,832
	105,249	FHLMC		7.50			06/01/2016		113,939
	12,130	FHLMC±		2.96			09/01/2016		12,310
	179,582	FHLMC±		4.01			09/01/2016		181,331
	201,905	FHLMC±		2.96			11/01/2016		207,881
	5,629	FHLMC±		3.92			01/01/2017		5,641
	96,451	FHLMC±		3.24			07/01/2017		100,940
	70,929	FHLMC±		3.00			12/01/2017		73,048
	30,838	FHLMC±		3.92			12/01/2017		32,327
	13,677	FHLMC±		3.66			02/01/2018		13,773
	42,161	FHLMC±		3.15			03/01/2018		43,830
	337,405	FHLMC		6.50			04/01/2018		371,769
	1,622	FHLMC±		3.00			05/01/2018		1,668
	47,054	FHLMC±		3.00			06/01/2018		48,411
	7,253	FHLMC±		2.96			07/01/2018		7,281
	334,216	FHLMC±		4.25			07/01/2018		350,486
	7,163	FHLMC±		3.21			08/01/2018		7,400
	5,345	FHLMC±		3.28			08/01/2018		5,347
	3,989	FHLMC±		3.00			09/01/2018		4,099
	140,902	FHLMC±		3.49			10/01/2018		147,383
	28,078	FHLMC±		2.75			11/01/2018		29,186
	61,361	FHLMC±		3.64			12/01/2018		62,049
	81,889	FHLMC±		3.66			12/01/2018		82,549
	15,806	FHLMC±		2.96			01/01/2019		16,277
	2,088	FHLMC±		4.49			01/01/2019		2,091
	21,490	FHLMC±		2.96			02/01/2019		22,130
	1,184	FHLMC±		2.96			03/01/2019		1,220
	43,676	FHLMC±		3.84			04/01/2019		43,900
	11,778	FHLMC±		3.00			05/01/2019		12,115
	202,516	FHLMC±		3.66			06/01/2019		206,996
	342,781	FHLMC±		4.10			06/01/2019		345,983
	3,079	FHLMC±		2.76			07/01/2019		3,227
	31,194	FHLMC±		4.13			08/01/2019		31,160
	48,791	FHLMC±		3.63			10/01/2019		48,831
	3,956	FHLMC±		2.37			03/01/2020		3,964
	114,901	FHLMC±		2.70			04/01/2020		121,312
	1,501	FHLMC±		3.74			05/01/2020		1,511


Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 29

ADJUSTABLE RATE GOVERNMENT FUND


Principal			Security Name	Interest Rate			Maturity Date		Value
Federal Home Loan Mortgage Corporation (continued)
$	3,601		FHLMC±		4.27	%		05/01/2020	$	3,606
	294,710		FHLMC		8.50			05/01/2020		341,624
	223,345		FHLMC±		3.04			06/01/2020		233,214
	3,914		FHLMC±		3.76			06/01/2020		3,934
	64,715		FHLMC±		4.89			02/01/2021		64,802
	295,935		FHLMC±		4.25			06/01/2021		307,746
	49,822		FHLMC±		3.25			01/01/2022		51,826
	5,162		FHLMC±		4.86			06/01/2022		5,419
	7,067		FHLMC		8.50			06/01/2022		7,111
	38,567		FHLMC		8.50			09/01/2022		45,139
	85,749		FHLMC±		2.60			01/01/2023		87,653
	322,347		FHLMC±		4.41			04/01/2023		324,618
	116,234		FHLMC±		2.79			05/01/2023		117,050
	102,671		FHLMC±		3.53			01/01/2024		103,390
	47,182		FHLMC±		3.13			02/01/2024		47,198
	64,609	��	FHLMC±		2.53			06/01/2024		68,022
	68,879		FHLMC±		2.56			07/01/2024		70,251
	425,456		FHLMC±		2.92			10/01/2024		447,505
	8,191,597		FHLMC±		3.69			03/01/2025		8,493,666
	202,785		FHLMC±		3.99			03/01/2025		205,278
	152,747		FHLMC±		2.55			05/01/2025		161,283
	148,185		FHLMC±		2.86			06/01/2025		155,946
	57,057		FHLMC±		2.85			10/01/2025		59,870
	254,209		FHLMC±		2.93			10/01/2025		256,123
	1,139,121		FHLMC±		4.00			12/01/2025		1,157,079
	31,001		FHLMC±		3.61			01/01/2026		31,469
	627,597		FHLMC±		2.80			11/01/2026		637,989
	226,500		FHLMC±		5.12			02/01/2027		237,122
	1,378,533		FHLMC±		2.74			07/01/2027		1,453,894
	13,824		FHLMC±		2.64			08/01/2027		14,553
	94,054		FHLMC±		7.22			08/01/2027		97,783
	1,730,858		FHLMC±		2.64			11/01/2027		1,824,776
	60,974		FHLMC±		2.68			01/01/2028		64,310
	10,748		FHLMC±		2.70			01/01/2028		11,335
	684,703		FHLMC±		2.42			05/01/2028		715,529
	573,317		FHLMC±		2.88			05/01/2028		578,897
	622,486		FHLMC±		2.80			06/01/2028		655,270
	193,461		FHLMC±		3.94			07/01/2028		194,820
	32,613		FHLMC±		2.42			01/01/2029		34,001
	456,164		FHLMC±		5.01			02/01/2029		460,226
	517,869		FHLMC±		7.00			04/01/2029		539,690
	45,002		FHLMC±		1.37			07/01/2029		45,136
	148,727		FHLMC±		2.78			07/01/2029		156,014
	228,471		FHLMC±		2.80			08/01/2029		230,759
	52,734		FHLMC±		4.41			08/01/2029		52,870
	455,303		FHLMC±		4.96			08/01/2029		457,012
	169,987		FHLMC±		2.79			10/01/2029		178,677
	180,395		FHLMC±		4.79			10/01/2029		180,847
	571,992		FHLMC±		2.61			11/01/2029		601,867
	240,012		FHLMC±		2.61			11/01/2029		252,678
	430,695		FHLMC±		4.00			11/01/2029		435,523
	69,448		FHLMC±		2.52			01/01/2030		73,248
	13,788		FHLMC±		3.00			01/01/2030		14,203
	29,631		FHLMC±		3.00			01/01/2030		30,526
	113,792		FHLMC±		2.88			02/01/2030		119,236
	979,555		FHLMC±		2.84			06/01/2030		1,031,055


30 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

ADJUSTABLE RATE GOVERNMENT FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Federal Home Loan Mortgage Corporation (continued)
$	172,279	FHLMC±		2.85	%		06/01/2030	$	181,460
	220,091	FHLMC±		2.88			06/01/2030		221,638
	37,650	FHLMC±		2.31			07/01/2030		38,961
	249,010	FHLMC±		3.00			07/01/2030		257,059
	12,296,687	FHLMC±		2.88			08/01/2030		12,939,825
	1,100,223	FHLMC±		2.60			09/01/2030		1,159,083
	24,068,824	FHLMC±		2.68			09/01/2030		25,420,622
	210,825	FHLMC±		4.43			09/01/2030		212,566
	5,359,101	FHLMC±		2.71			10/01/2030		5,656,360
	43,110	FHLMC±		3.07			10/01/2030		44,340
	319,646	FHLMC±		5.60			05/01/2031		324,303
	691,439	FHLMC±		2.69			07/01/2031		728,205
	404,618	FHLMC±		5.22			09/01/2031		405,351
	7,708	FHLMC±		2.85			03/01/2032		7,762
	188,089	FHLMC±		5.68			04/01/2032		188,799
	92,100	FHLMC±		2.60			05/01/2032		96,146
	350,520	FHLMC±		4.98			05/01/2032		368,112
	5,863,266	FHLMC±		2.65			09/01/2032		6,168,171
	399,068	FHLMC±		2.81			11/01/2032		418,756
	8,001,976	FHLMC±		2.59			12/01/2032		8,409,243
	4,885,388	FHLMC±		2.61			12/01/2032		5,111,962
	4,776,957	FHLMC±		2.64			06/01/2033		5,003,420
	1,805,064	FHLMC±		5.49			06/01/2033		1,911,004
	75,299	FHLMC±		2.60			10/01/2033		78,953
	5,240,998	FHLMC±		2.68			10/01/2033		5,519,501
	7,129,359	FHLMC±		2.61			02/01/2034		7,469,739
	8,415,037	FHLMC±		2.56			04/01/2034		8,840,439
	3,499,260	FHLMC±		2.48			02/01/2035		3,645,213
	840,927	FHLMC±		2.96			02/01/2035		866,028
	12,514,843	FHLMC±		2.66			04/01/2035		13,145,450
	4,888,191	FHLMC±		2.80			04/01/2035		5,068,879
	2,581,934	FHLMC±		3.03			04/01/2035		2,725,973
	2,674,733	FHLMC±		2.63			08/01/2035		2,810,565
	5,039,707	FHLMC±		2.59			09/01/2035		5,280,798
	9,540,428	FHLMC±		2.76			09/01/2035		10,062,972
	411,076	FHLMC		7.00			09/01/2035		465,471
	9,257,525	FHLMC±		2.63			10/01/2035		9,699,459
	12,263,664	FHLMC±		3.19			02/01/2036		12,979,239
	23,439,018	FHLMC±		3.20			03/25/2036		24,270,372
	9,723,619	FHLMC±		2.89			08/01/2036		10,219,993
	3,091,416	FHLMC±		5.74			11/01/2036		3,257,146
	5,187,425	FHLMC±		4.12			01/01/2037		5,425,683
	3,597,068	FHLMC±		5.39			04/01/2037		3,796,569
	7,346,694	FHLMC 1Q0156±		2.83			10/01/2035		7,717,011
	1,110,837	FHLMC 785342±		5.50			08/01/2024		1,174,620
	420,467	FHLMC 785952±		2.64			03/01/2027		442,959
	15,711,667	FHLMC 847431±		2.83			08/01/2035		16,533,777
	590,190	FHLMC Series 1671 Class QA±		2.46			02/15/2024		594,934
	57,056	FHLMC Series 1686 Class FE±		2.61			02/15/2024		58,928
	720,626	FHLMC Series 1730 Class FA±		2.82			05/15/2024		750,534
	422,781	FHLMC Series 2315 Class FW±		0.82			04/15/2027		424,547
	424,084	FHLMC Series 2391 Class EF±		0.77			06/15/2031		425,014
	1,009,144	FHLMC Series 2454 Class SL(c)±		7.73			03/15/2032		194,356
	601,314	FHLMC Series 2461 Class FI±		0.77			04/15/2028		603,964
	657,735	FHLMC Series 2464 Class FE±		1.27			03/15/2032		666,648
	872,238	FHLMC Series 2466 Class FV±		0.82			03/15/2032		876,528


Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 31

ADJUSTABLE RATE GOVERNMENT FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Federal Home Loan Mortgage Corporation (continued)
$	832,156	FHLMC Series 2527 Class SX(c)±		7.28	%		02/15/2032	$	42,114
	235,449	FHLMC Series 3190 Class SN±		83.00			03/15/2032		294,588
	68,559	FHLMC Series R007 Class AC		5.88			05/15/2016		68,901
	4,704,823	FHLMC Series T-48 Class 2A±		4.05			11/25/2032		4,945,210
	3,293,056	FHLMC Series T-54 Class 4A±		3.96			02/25/2043		3,437,642
	164,599	FHLMC Series T-55 Class 1A1		6.50			03/25/2043		183,320
	8,108,823	FHLMC Series T-66 Class 2A1±		3.09			01/25/2036		8,526,634
	31,761,907	FHLMC Series T-67 Class 1A1C±		3.24			03/25/2036		32,888,464

									318,914,629


Federal National Mortgage Association: 63.28%
	763	FNMA±		4.65			03/01/2014		763
	27,063	FNMA±		5.85			03/01/2014		28,473
	8,154	FNMA±		5.34			11/01/2014		8,428
	16,246	FNMA		7.00			11/01/2014		17,646
	48,576	FNMA±		1.92			03/01/2015		49,202
	12,690	FNMA		12.50			07/01/2015		14,343
	495,541	FNMA		7.50			02/01/2016		550,808
	246,834	FNMA±		3.38			06/01/2016		253,546
	46,560	FNMA±		3.38			07/01/2016		47,806
	535	FNMA±		3.75			09/01/2016		536
	2,410	FNMA±		2.75			12/01/2016		2,428
	4,667	FNMA±		4.15			12/01/2016		4,849
	3,246	FNMA±		3.73			01/01/2017		3,334
	8,100	FNMA		6.00			02/01/2017		8,252
	126,222	FNMA±		2.82			05/01/2017		127,449
	93,920	FNMA±		3.25			05/01/2017		94,972
	190,341	FNMA±		3.99			05/01/2017		200,042
	3,484	FNMA±		4.83			05/01/2017		3,505
	56,825	FNMA±		3.11			06/01/2017		57,455
	312,247	FNMA±		2.86			07/01/2017		315,574
	7,083	FNMA±		2.88			07/01/2017		7,146
	216,925	FNMA±		3.37			07/01/2017		217,641
	14,748	FNMA±		3.38			07/01/2017		14,915
	2,784	FNMA±		3.38			07/01/2017		2,887
	105,170	FNMA±		4.17			07/01/2017		110,012
	1,019,662	FNMA±		2.83			08/01/2017		1,031,118
	2,270	FNMA±		3.13			08/01/2017		2,295
	57,522	FNMA±		4.26			08/01/2017		59,171
	802,691	FNMA±		2.82			09/01/2017		816,837
	5,310	FNMA±		3.25			09/01/2017		5,332
	11,586	FNMA±		4.25			09/01/2017		11,597
	1,422	FNMA±		6.01			09/01/2017		1,449
	138,272	FNMA±		2.58			10/01/2017		139,940
	653,962	FNMA±		3.58			10/01/2017		659,087
	14,783	FNMA±		3.67			10/01/2017		15,056
	19,013	FNMA±		4.10			10/01/2017		19,802
	405,459	FNMA±		2.33			11/01/2017		422,099
	168,140	FNMA±		3.32			11/01/2017		170,032
	47,348	FNMA		7.00			11/01/2017		51,944
	186,781	FNMA±		2.97			12/01/2017		188,453
	116,922	FNMA±		2.60			01/01/2018		118,732
	1,611,281	FNMA±		2.88			01/01/2018		1,658,301
	2,067	FNMA±		4.30			01/01/2018		2,132
	1,399	FNMA±		4.55			01/01/2018		1,425
	15,376	FNMA		11.00			01/01/2018		16,220


32 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

ADJUSTABLE RATE GOVERNMENT FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Federal National Mortgage Association (continued)
$	24,353	FNMA±		3.22	%		02/01/2018	$	24,641
	32,049	FNMA±		4.13			03/01/2018		33,546
	893,246	FNMA±		2.32			04/01/2018		917,652
	1,408,715	FNMA±		2.82			04/01/2018		1,421,119
	14,386	FNMA±		3.13			04/01/2018		14,555
	57	FNMA±		4.81			04/01/2018		58
	748,609	FNMA±		4.99			04/01/2018		791,801
	381,647	FNMA±		2.56			05/01/2018		403,049
	947,538	FNMA±		2.91			05/01/2018		964,941
	13,925	FNMA±		3.49			05/01/2018		13,954
	2,127	FNMA±		4.54			05/01/2018		2,175
	63,558	FNMA±		3.38			06/01/2018		64,318
	4,387	FNMA±		4.10			06/01/2018		4,590
	6,843	FNMA±		2.17			07/01/2018		6,999
	1,052,105	FNMA±		2.33			07/01/2018		1,080,886
	179,630	FNMA±		3.38			08/01/2018		184,097
	25,387	FNMA±		3.34			09/01/2018		26,496
	257,302	FNMA±		2.18			10/01/2018		266,153
	1,270,623	FNMA±		2.91			10/01/2018		1,280,735
	372,440	FNMA±		2.92			10/01/2018		376,769
	128	FNMA±		5.56			10/01/2018		135
	26,178	FNMA±		3.40			11/01/2018		27,342
	274,314	FNMA±		3.13			01/01/2019		280,294
	8,496	FNMA±		4.33			01/01/2019		8,537
	1,347,597	FNMA±		4.87			01/01/2019		1,418,860
	295,745	FNMA±		5.47			01/01/2019		311,615
	3,415	FNMA±		2.50			02/01/2019		3,458
	729,613	FNMA±		4.61			02/01/2019		766,423
	16,088	FNMA±		2.93			04/01/2019		16,244
	2,762	FNMA±		5.04			04/01/2019		2,767
	12,924	FNMA		10.50			04/01/2019		13,021
	3,989	FNMA±		3.16			05/01/2019		4,011
	16,359	FNMA±		2.66			06/01/2019		16,657
	26,503	FNMA±		3.33			06/01/2019		26,603
	1,718	FNMA±		3.34			06/01/2019		1,738
	9,604	FNMA±		5.58			06/01/2019		9,646
	5,888	FNMA±		4.71			07/01/2019		6,144
	107,378	FNMA±		3.67			09/01/2019		109,813
	19,456	FNMA±		3.79			09/01/2019		20,429
	584	FNMA±		6.56			11/01/2019		603
	17,459	FNMA±		6.00			01/01/2020		18,360
	28,071	FNMA±		2.25			02/01/2020		29,088
	3,033,065	FNMA±		3.86			04/01/2020		3,156,253
	27,173	FNMA±		4.49			04/01/2020		27,446
	27,005	FNMA±		1.93			07/01/2020		27,354
	457,749	FNMA±		2.83			07/01/2020		474,978
	3,593,551	FNMA±		2.88			07/01/2020		3,626,291
	10,000,000	FNMA±		1.02			09/01/2020		10,218,917
	1,761,077	FNMA±		2.91			11/01/2020		1,784,327
	83,750	FNMA±		1.66			12/01/2020		83,424
	9,761	FNMA±		1.63			01/01/2021		9,823
	15,309	FNMA±		1.63			01/01/2021		15,494
	1,298,660	FNMA±		3.97			01/01/2021		1,337,817
	46,642	FNMA		10.00			01/01/2021		53,542
	1,722	FNMA±		2.88			03/01/2021		1,739
	149,219	FNMA±		2.92			04/01/2021		150,738


Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 33

ADJUSTABLE RATE GOVERNMENT FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Federal National Mortgage Association (continued)
$	6,764	FNMA		9.00	%		05/01/2021	$	7,748
	176,842	FNMA±		1.70			06/01/2021		176,731
	484,056	FNMA±		4.23			07/01/2021		494,771
	117,634	FNMA		9.50			08/01/2021		133,335
	314,033	FNMA±		3.69			09/01/2021		329,988
	25,937	FNMA±		6.25			10/01/2021		25,873
	15,883	FNMA		6.00			11/01/2021		15,848
	238,259	FNMA±		2.66			12/01/2021		241,629
	17,682	FNMA±		2.00			01/01/2022		18,079
	53,587	FNMA±		1.83			06/01/2022		54,241
	1,145,240	FNMA±		2.73			09/01/2022		1,212,335
	357,810	FNMA±		3.82			11/01/2022		363,726
	22,658	FNMA±		2.55			12/01/2022		23,232
	49,194	FNMA±		5.08			01/01/2023		52,100
	11,083	FNMA		5.00			03/01/2023		11,547
	7,865	FNMA±		6.72			03/01/2023		8,324
	1,356,769	FNMA±		2.95			04/25/2023		1,425,922
	1,062	FNMA±		3.82			06/01/2023		1,115
	11,842	FNMA±		5.20			09/01/2023		11,868
	56,403	FNMA±		2.90			11/01/2023		57,574
	23,327	FNMA±		2.34			12/01/2023		24,409
	1,586	FNMA±		7.75			02/01/2024		1,575
	1,988	FNMA±		7.63			03/01/2024		1,972
	62,431	FNMA±		2.57			04/01/2024		65,973
	107,187	FNMA±		2.65			04/01/2024		113,179
	645,843	FNMA±		3.41			04/01/2024		674,799
	76,297	FNMA±		2.65			06/01/2024		79,552
	152,468	FNMA±		4.73			06/01/2024		153,007
	103	FNMA±		7.75			06/01/2024		103
	20,944	FNMA±		2.53			07/01/2024		21,759
	155,120	FNMA±		8.55			08/01/2024		182,132
	76,120	FNMA±		2.24			10/01/2024		79,492
	666,323	FNMA±		2.39			10/01/2024		700,305
	36,485	FNMA±		3.64			10/01/2024		37,644
	66,930	FNMA±		4.40			10/01/2024		67,373
	2,555	FNMA±		9.10			10/01/2024		2,537
	322,905	FNMA±		2.64			11/01/2024		340,299
	186,904	FNMA±		2.77			11/01/2024		197,332
	21,746	FNMA±		2.91			11/01/2024		22,184
	212,311	FNMA±		3.86			11/01/2024		213,691
	65,275	FNMA		7.06			11/01/2024		74,644
	121,845	FNMA±		2.24			12/01/2024		127,205
	47,134	FNMA±		2.43			12/01/2024		49,255
	62,953	FNMA		7.06			12/01/2024		71,988
	2,603	FNMA±		8.38			12/01/2024		2,595
	63,104	FNMA		9.50			12/01/2024		74,380
	88,270	FNMA±		2.80			01/01/2025		92,816
	41,466	FNMA		7.06			01/01/2025		47,417
	123,836	FNMA		7.06			03/01/2025		141,609
	16,419	FNMA		7.06			03/01/2025		18,776
	27,915 2	FNMA		7.06			04/01/2025		31,959
	139,665	FNMA±		2.63			05/01/2025		147,329
	1,495	FNMA±		5.96			05/01/2025		1,501
	12,097	FNMA±		2.63			06/01/2025		12,702
	46,809	FNMA±		4.85			06/01/2025		46,898
	8,088	FNMA±		2.41			07/01/2025		8,154


34 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

ADJUSTABLE RATE GOVERNMENT FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Federal National Mortgage Association (continued)
$	106,152	FNMA±		2.53	%		08/01/2025	$	111,952
	201,830	FNMA±		2.45			10/01/2025		211,891
	24,643	FNMA±		2.85			10/01/2025		26,012
	18,145	FNMA±		4.72			10/01/2025		19,141
	30,278	FNMA±		2.49			12/01/2025		30,286
	943	FNMA±		7.75			01/01/2026		947
	11,113	FNMA±		2.97			04/01/2026		11,663
	149,008	FNMA±		2.50			06/01/2026		157,012
	159,400	FNMA±		3.79			08/01/2026		167,405
	1,794,124	FNMA±		3.83			08/01/2026		1,883,892
	267,877	FNMA±		2.60			09/01/2026		271,933
	25,124	FNMA		8.50			10/01/2026		29,363
	260,797	FNMA		8.00			12/01/2026		303,842
	54,581	FNMA±		2.38			01/01/2027		56,833
	1,447,904	FNMA±		2.53			01/01/2027		1,527,640
	71,871	FNMA		7.06			01/01/2027		81,927
	104,939	FNMA		8.50			02/01/2027		122,044
	241,888	FNMA±		2.71			03/01/2027		243,653
	138,377	FNMA±		2.73			05/01/2027		145,795
	5,063	FNMA±		2.50			06/01/2027		5,305
	149,180	FNMA±		2.60			06/01/2027		157,622
	170,030	FNMA±		2.77			06/01/2027		179,369
	222,817	FNMA±		2.67			07/01/2027		235,285
	580,598	FNMA±		2.70			07/01/2027		613,348
	77,511	FNMA±		3.21			11/01/2027		81,129
	4,248	FNMA±		3.38			11/01/2027		4,301
	15,012	FNMA±		2.59			01/01/2028		15,821
	57,977	FNMA±		2.85			02/01/2028		61,015
	182,557	FNMA±		2.50			03/01/2028		182,294
	55,308	FNMA±		2.54			04/01/2028		58,269
	715,941	FNMA±		2.70			04/01/2028		754,965
	164,804	FNMA±		3.51			05/01/2028		166,866
	484,787	FNMA±		3.61			05/01/2028		498,201
	84,127	FNMA±		5.16			06/01/2028		86,637
	144,594	FNMA		6.00			06/01/2028		154,344
	409	FNMA±		2.66			07/01/2028		429
	500,994	FNMA±		3.09			07/01/2028		526,267
	209,168	FNMA±		3.73			07/01/2028		214,977
	1,215,672	FNMA		6.50			08/01/2028		1,382,393
	138,802	FNMA±		2.63			09/01/2028		140,240
	21,882	FNMA±		4.38			09/01/2028		22,592
	393,463	FNMA±		3.07			10/01/2028		414,203
	519,390	FNMA±		3.84			11/01/2028		548,113
	153,900	FNMA±		2.63			12/01/2028		162,658
	366,893	FNMA±		3.38			12/01/2028		376,074
	45,742	FNMA±		3.38			01/01/2029		46,875
	78,244	FNMA±		3.80			01/01/2029		82,297
	241,838	FNMA±		3.79			02/01/2029		253,896
	4,173,726	FNMA±		3.89			02/01/2029		4,416,632
	568,488	FNMA±		1.85			05/01/2029		590,661
	1,871,454	FNMA±		3.90			08/01/2029		1,970,196
	782,171	FNMA±		2.83			10/01/2029		825,701
	307,432	FNMA±		3.90			10/01/2029		311,477
	15,800	FNMA±		3.38			11/01/2029		16,575
	924	FNMA		8.00			02/01/2030		1,074
	67,941	FNMA±		2.88			03/01/2030		69,683


Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 35

ADJUSTABLE RATE GOVERNMENT FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Federal National Mortgage Association (continued)
$	378,238	FNMA±		3.19	%		03/01/2030	$	398,194
	28,103	FNMA±		3.82			03/01/2030		28,288
	1,130	FNMA		8.00			03/01/2030		1,311
	299,237	FNMA±		2.42			04/01/2030		313,216
	140,760	FNMA±		2.59			04/01/2030		148,300
	77,046	FNMA±		3.27			04/01/2030		79,688
	462,127	FNMA±		2.83			06/01/2030		486,387
	160,094	FNMA		8.50			06/01/2030		187,092
	140,462	FNMA±		2.59			07/01/2030		147,266
	62,462	FNMA		9.00			07/01/2030		72,791
	289,687	FNMA±		3.20			08/01/2030		303,176
	23,510	FNMA±		2.60			09/01/2030		24,765
	415,501	FNMA±		2.66			09/01/2030		438,432
	269,020	FNMA±		1.73			12/01/2030		272,970
	99,003	FNMA±		2.58			12/01/2030		100,064
	1,597,679	FNMA±		2.72			12/01/2030		1,680,825
	97,225	FNMA±		3.14			01/01/2031		97,319
	307,980	FNMA		7.50			01/01/2031		355,611
	15,627	FNMA		8.00			02/01/2031		18,170
	113,980	FNMA±		2.43			03/01/2031		119,737
	283,147	FNMA		6.50			05/01/2031		322,068
	377,149	FNMA±		2.07			06/01/2031		393,259
	57,564	FNMA		8.00			07/01/2031		67,010
	185,756	FNMA±		2.13			08/01/2031		189,263
	181,736	FNMA±		2.17			08/01/2031		180,651
	87,936	FNMA±		2.33			08/01/2031		88,425
	156,606	FNMA±		2.47			08/01/2031		158,212
	80,347	FNMA±		5.09			08/01/2031		85,327
	485,200	FNMA±		2.14			09/01/2031		500,755
	512,108	FNMA±		4.38			09/01/2031		512,793
	116,894	FNMA±		3.02			11/01/2031		122,129
	51,912	FNMA±		3.70			11/01/2031		53,465
	288,252	FNMA±		4.13			11/01/2031		298,284
	218,930	FNMA±		1.98			12/01/2031		226,508
	194,404	FNMA±		2.00			12/01/2031		201,034
	483,051	FNMA±		2.03			12/01/2031		500,302
	512,243	FNMA±		1.86			01/01/2032		523,145
	44,248	FNMA±		1.99			01/01/2032		43,996
	289,624	FNMA±		2.78			01/01/2032		305,695
	4,375,768	FNMA±		2.59			02/01/2032		4,555,891
	161,841	FNMA±		2.85			03/01/2032		171,011
	136,216	FNMA±		2.49			04/01/2032		141,733
	289,927	FNMA±		4.23			04/01/2032		297,371
	133,263	FNMA±		2.15			05/01/2032		138,652
	417,953	FNMA±		2.58			05/01/2032		435,647
	200,804	FNMA±		2.27			06/01/2032		201,522
	185,289	FNMA±		2.43			06/01/2032		194,757
	411,227	FNMA±		2.43			06/01/2032		432,369
	63,117	FNMA±		2.57			06/01/2032		66,198
	328,735	FNMA±		2.76			06/01/2032		346,923
	248,809	FNMA±		2.26			07/01/2032		249,204
	310,498	FNMA±		1.65			08/01/2032		311,799
	193,502	FNMA±		2.16			08/01/2032		199,098
	74,961	FNMA±		1.83			09/01/2032		75,298
	160,646	FNMA±		2.59			09/01/2032		162,253
	2,624,076	FNMA±		3.19			09/01/2032		2,777,716


36 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

ADJUSTABLE RATE GOVERNMENT FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Federal National Mortgage Association (continued)
$	12,629,677	FNMA±		3.43	%		09/01/2032	$	13,214,693
	219,850	FNMA±		3.47			09/01/2032		222,749
	35,287	FNMA±		2.46			11/01/2032		36,961
	485,194	FNMA±		3.73			12/01/2032		501,040
	190,275	FNMA±		2.91			01/01/2033		198,229
	79,491	FNMA±		3.42			01/01/2033		79,417
	517,704	FNMA		7.50			01/01/2033		598,537
	281,120	FNMA±		2.06			02/01/2033		292,126
	187,202	FNMA±		2.59			02/01/2033		192,043
	633,428	FNMA±		2.62			02/01/2033		666,960
	110,900	FNMA±		4.04			02/01/2033		111,634
	9,368	FNMA±		2.58			03/01/2033		9,813
	4,974,416	FNMA±		2.71			03/01/2033		5,186,270
	1,501,312	FNMA±		3.32			03/01/2033		1,556,412
	1,821,052	FNMA±		2.04			04/01/2033		1,870,830
	2,367,003	FNMA±		2.58			04/01/2033		2,484,572
	1,439,759	FNMA±		2.79			04/01/2033		1,510,485
	1,010,972	FNMA±		2.86			04/01/2033		1,058,443
	1,462,883	FNMA±		2.52			05/01/2033		1,543,773
	550,383	FNMA		7.50			05/01/2033		636,595
	327,904	FNMA		7.50			05/01/2033		377,708
	422,119	FNMA		8.00			05/01/2033		490,821
	790,122	FNMA±		2.74			06/01/2033		832,378
	434,336	FNMA±		5.59			06/01/2033		450,345
	319,585	FNMA		7.50			06/01/2033		368,830
	65,729	FNMA±		2.62			07/01/2033		65,942
	361,115	FNMA		7.50			07/01/2033		417,565
	4,598	FNMA±		1.87			08/01/2033		4,656
	722,554	FNMA±		2.00			08/01/2033		735,581
	286,622	FNMA		7.50			08/01/2033		331,519
	261,280	FNMA±		2.22			09/01/2033		271,207
	71,517	FNMA±		2.73			09/01/2033		74,634
	47,382	FNMA±		2.98			09/01/2033		47,582
	15,193,727	FNMA±		3.05			09/01/2033		15,942,629
	207,680	FNMA±		3.54			09/01/2033		207,678
	107,075	FNMA±		3.85			09/01/2033		110,068
	36,705,634	FNMA±		2.98			10/01/2033		38,578,358
	3,055,271	FNMA±		2.45			12/01/2033		3,209,511
	100,325	FNMA±		6.45			02/01/2034		104,438
	8,514,816	FNMA±		2.49			04/01/2034		8,962,244
	2,639,737	FNMA±		3.88			04/01/2034		2,750,894
	1,562,661	FNMA±		4.73			05/01/2034		1,627,093
	8,134,000	FNMA±		2.60			06/01/2034		8,531,896
	807,956	FNMA±		4.19			06/01/2034		841,916
	1,138,835	FNMA±		3.96			10/01/2034		1,148,225
	5,748,193	FNMA±		2.69			11/01/2034		6,057,049
	2,190,914	FNMA±		2.90			01/01/2035		2,239,815
	15,785,167	FNMA±		2.45			02/01/2035		16,497,719
	11,086,394	FNMA±		2.55			02/01/2035		11,708,315
	3,783,802	FNMA±		3.26			02/01/2035		3,831,309
	10,838,504	FNMA±		2.64			03/01/2035		11,370,440
	7,310,966	FNMA±		2.73			03/01/2035		7,697,243
	6,193,463	FNMA±		2.43			04/01/2035		6,489,588
	6,188,963	FNMA±		2.55			05/01/2035		6,491,769
	13,011,868	FNMA±		2.65			05/01/2035		13,656,330
	5,035,259	FNMA±		2.69			05/01/2035		5,289,921


Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 37

ADJUSTABLE RATE GOVERNMENT FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Federal National Mortgage Association (continued)
$	6,216,839	FNMA±		2.46	%		06/01/2035	$	6,510,168
	4,409,627	FNMA±		2.36			07/01/2035		4,546,253
	3,170,200	FNMA±		2.40			07/01/2035		3,268,988
	1,089,379	FNMA±		2.45			08/01/2035		1,120,645
	2,402,130	FNMA±		2.58			08/01/2035		2,477,606
	6,864,405	FNMA±		2.93			08/01/2035		7,213,598
	7,725,344	FNMA±		2.98			08/01/2035		8,153,250
	1,866,107	FNMA±		3.15			09/01/2035		1,956,255
	19,295,282	FNMA±		2.25			10/01/2035		19,840,213
	7,740,129	FNMA±		2.59			10/01/2035		8,142,591
	25,776,938	FNMA±		2.99			11/01/2035		27,286,900
	20,150,758	FNMA±		2.27			12/01/2035		20,747,010
	9,817,473	FNMA±		2.26			01/01/2036		10,128,994
	791,057	FNMA±		3.15			01/01/2036		797,542
	320,400	FNMA±		3.35			01/01/2036		323,071
	11,261,439	FNMA±		2.71			02/01/2036		11,803,941
	8,038,802	FNMA±		2.73			02/01/2036		8,383,801
	653,252	FNMA±		2.80			04/01/2036		675,254
	8,417,281	FNMA±		3.01			05/01/2036		8,819,715
	7,139,419	FNMA±		2.46			08/01/2036		7,333,879
	2,830,242	FNMA±		2.87			09/01/2036		2,980,145
	310,404	FNMA±		4.59			12/01/2036		324,250
	17,125,493	FNMA±		2.90			07/01/2037		18,026,653
	11,629,457	FNMA±		3.18			09/01/2037		12,263,612
	1,795,849	FNMA±		2.94			01/01/2038		1,831,059
	3,053,136	FNMA±		2.45			07/01/2038		3,196,611
	2,386,363	FNMA±		2.50			07/01/2038		2,508,710
	6,875,715	FNMA±		2.54			07/01/2038		7,253,239
	4,619,194	FNMA±		3.02			07/01/2039		4,912,648
	14,080,316	FNMA±		2.62			08/01/2039		14,768,514
	301,756	FNMA±		2.31			11/01/2039		303,656
	509,598	FNMA±		2.41			12/01/2039		533,443
	4,739,302	FNMA±		3.18			04/01/2040		5,034,500
	510,503	FNMA±		3.19			04/01/2040		536,292
	1,791,180	FNMA±		2.91			06/01/2040		1,851,961
	1,969,766	FNMA±		2.75			08/01/2040		2,076,345
	19,570,654	FNMA±		2.56			12/01/2040		20,575,996
	10,947,275	FNMA±		2.65			12/01/2040		11,529,628
	5,747,490	FNMA±		2.83			04/01/2042		5,877,259
	9,960,936	FNMA±		2.54			07/01/2048		10,482,959
	13,692,152	FNMA±		2.61			07/01/2048		14,395,315
	291,321	FNMA±		3.68			12/01/2050		304,368
	77,488	FNMA Series 1989-74 Class J		9.80			10/25/2019		92,240
	26,630	FNMA Series 1989-96 Class H		9.00			12/25/2019		29,985
	500,977	FNMA Series 1992-039 Class FA±		3.02			03/25/2022		529,799
	93,761	FNMA Series 1992-045 Class F±		3.02			04/25/2022		98,373
	70,463	FNMA Series 1992-87 Class Z		8.00			05/25/2022		79,334
	412,089	FNMA Series 1993-113 Class FA±		2.95			07/25/2023		430,057
	856,781	FNMA Series 1994-14 Class F±		3.11			10/25/2023		895,544
	362,691	FNMA Series 1998-M5 Class D		6.35			06/25/2020		378,465
	2,207,086	FNMA Series 1998-T2 Class A5±		2.89			01/25/2032		2,241,477
	551,972	FNMA Series 2001-50 Class BA		7.00			10/25/2041		610,326
	598,396	FNMA Series 2001-63 Class FD±		0.86			12/18/2031		602,914
	426,688	FNMA Series 2001-81 Class F±		0.81			01/25/2032		429,028
	8,702,629	FNMA Series 2001-T10 Class A2		7.50			12/25/2041		10,163,039
	663,366	FNMA Series 2001-T12 Class A2		7.50			08/25/2041		757,261


38 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

ADJUSTABLE RATE GOVERNMENT FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Federal National Mortgage Association (continued)
$	12,806,113	FNMA Series 2001-T12 Class A4±		4.11	%		08/25/2041	$	13,368,381
	366,265	FNMA Series 2001-T8 Class A1		7.50			07/25/2041		415,469
	1,677,195	FNMA Series 2001-W03 Class A		7.00			09/25/2041		1,939,571
	911,076	FNMA Series 2002-05 Class FD±		1.16			02/25/2032		924,046
	16,846,472	FNMA Series 2002-66 Class A3±		3.81			04/25/2042		17,417,672
	3,309,304	FNMA Series 2002-D12 Class A5±		4.06			10/25/2041		3,310,161
	2,044,149	FNMA Series 2002-T12 Class A3		7.50			05/25/2042		2,382,072
	246,179	FNMA Series 2002-T19 Class A4±		3.93			03/25/2042		247,417
	5,068,348	FNMA Series 2002-W04 Class A6±		4.25			05/25/2042		5,290,880
	2,810,609	FNMA Series 2002-W1 Class 3A±		3.86			04/25/2042		2,879,158
	2,109,011	FNMA Series 2003-07 Class A2±		3.25			05/25/2042		2,170,634
	2,936,995	FNMA Series 2003-63 Class A8±		3.22			01/25/2043		3,040,248
	776,171	FNMA Series 2003-W02 Class 1A3		7.50			07/25/2042		910,303
	2,678,728	FNMA Series 2003-W04 Class 5A±		4.06			10/25/2042		2,801,363
	3,354,657	FNMA Series 2003-W08 Class 4A±		3.96			11/25/2042		3,320,110
	6,378,687	FNMA Series 2003-W10 Class 2A±		3.92			06/25/2043		6,658,751
	26,028,823	FNMA Series 2003-W18 Class 2A±		4.18			06/25/2043		27,171,650
	3,790,522	FNMA Series 2004-T03 Class 2A±		4.34			08/25/2043		3,862,878
	1,312,473	FNMA Series 2004-T3 Class 1A3		7.00			02/25/2044		1,523,699
	667,330	FNMA Series 2004-W1 Class 2A2		7.00			12/25/2033		771,726
	11,608,501	FNMA Series 2004-W12 Class 2A±		4.14			06/25/2044		12,184,937
	17,271,071	FNMA Series 2004-W15 Class 3A±		3.72			06/25/2044		18,156,753
	559,940	FNMA Series 2004-W2 Class 5A		7.50			03/25/2044		646,906
	3,150,713	FNMA Series 2005-W3 Class 3A±		3.71			04/25/2045		3,204,891
	18,496,200	FNMA Series 2006-W1 Class 3A±		3.14			10/25/2045		19,152,238
	422,046	FNMA Series G92-20 Class FB±		3.02			04/25/2022		443,461
	1,442,860	FNMA Series G93-1 Class K		6.68			01/25/2023		1,584,233
	223,969	FNMA Whole Loan Series 2004-W1 Class 3A±		4.32			01/25/2043		229,936

									774,129,431


Government National Mortgage Association: 3.27%
	9,094	GNMA		5.00			08/20/2015		9,543
	10,735	GNMA		5.00			09/20/2015		11,265
	10,897	GNMA		5.00			10/20/2015		11,438
	372,942	GNMA±		4.00			01/20/2016		389,659
	21,820	GNMA±		3.38			02/20/2016		22,720
	48,810	GNMA±		3.38			03/20/2016		50,825
	60,177	GNMA±		4.00			03/20/2016		62,875
	36,420	GNMA±		3.38			04/20/2016		37,921
	8,125	GNMA±		4.00			04/20/2016		8,485
	12,175	GNMA		9.00			05/15/2016		12,316
	3,227	GNMA±		3.38			05/20/2016		3,360
	1,234	GNMA±		4.00			05/20/2016		1,289
	2,054	GNMA		9.00			07/15/2016		2,089
	22,131	GNMA±		2.63			07/20/2016		22,960
	23,180	GNMA		9.00			08/15/2016		26,160
	9,448	GNMA		9.00			11/15/2016		9,514
	10,449	GNMA		9.00			11/15/2016		11,792
	43,690	GNMA		9.00			11/15/2016		49,306
	633	GNMA		9.00			12/15/2016		644
	23,368	GNMA±		3.38			01/20/2017		24,333
	10,577	GNMA		9.00			02/15/2017		12,037
	1,875	GNMA		9.00			02/15/2017		2,134
	29,965	GNMA±		3.38			02/20/2017		31,202
	126,289	GNMA±		3.38			02/20/2017		131,503
	37,577	GNMA±		3.38			03/20/2017		39,128


Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 39

ADJUSTABLE RATE GOVERNMENT FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Government National Mortgage Association (continued)
$	22,071	GNMA±		3.38	%		03/20/2017	$	22,982
	2,006	GNMA		9.00			05/15/2017		2,020
	101,112	GNMA±		3.38			05/20/2017		105,278
	37,488	GNMA±		3.38			05/20/2017		39,033
	8,572	GNMA±		3.38			06/20/2017		8,925
	41,459	GNMA		7.25			07/15/2017		46,158
	14,230	GNMA		9.00			07/15/2017		16,195
	22,828	GNMA±		3.00			07/20/2017		23,726
	62,135	GNMA		7.25			08/15/2017		68,937
	49,161	GNMA		7.25			08/15/2017		54,484
	16,573	GNMA		7.25			08/15/2017		18,451
	34,438	GNMA±		2.63			08/20/2017		35,727
	204,202	GNMA±		3.00			08/20/2017		212,232
	15,531	GNMA±		3.00			08/20/2017		16,134
	63,206	GNMA		7.25			09/15/2017		70,370
	43,664	GNMA±		2.13			09/20/2017		45,175
	7,205	GNMA±		2.63			09/20/2017		7,475
	8,020	GNMA±		2.63			09/20/2017		8,320
	219,967	GNMA±		3.00			09/20/2017		228,617
	32,857	GNMA±		3.50			09/20/2017		34,232
	115,596	GNMA		7.25			10/15/2017		128,288
	67,363	GNMA		7.25			10/15/2017		74,698
	15,023	GNMA±		2.50			10/20/2017		15,571
	91,587	GNMA±		2.75			10/20/2017		95,044
	521	GNMA±		3.50			10/20/2017		542
	43,083	GNMA		7.25			11/15/2017		47,516
	43,108	GNMA±		2.50			11/20/2017		44,681
	41,749	GNMA±		3.00			11/20/2017		43,377
	95,388	GNMA±		3.50			11/20/2017		99,346
	39,341	GNMA±		4.00			11/20/2017		41,071
	31,774	GNMA±		2.50			12/20/2017		32,934
	243,733	GNMA±		3.00			12/20/2017		253,237
	4,666	GNMA±		4.50			12/20/2017		4,883
	31,592	GNMA		7.25			01/15/2018		35,193
	33,581	GNMA		7.25			01/15/2018		37,597
	78,125	GNMA±		3.38			01/20/2018		81,351
	34,199	GNMA		7.25			02/15/2018		38,054
	74,609	GNMA±		3.50			02/20/2018		77,767
	9,387	GNMA±		3.50			03/20/2018		9,784
	9,898	GNMA±		3.50			04/20/2018		10,312
	19,208	GNMA±		4.00			04/20/2018		20,059
	17,692	GNMA		7.25			05/15/2018		19,430
	3,705	GNMA±		3.50			05/20/2018		3,860
	13,864	GNMA±		3.38			06/20/2018		14,435
	824	GNMA±		2.63			07/20/2018		855
	79,636	GNMA±		2.63			07/20/2018		82,618
	50,450	GNMA±		2.63			08/20/2018		52,339
	12,146	GNMA±		2.63			08/20/2018		12,601
	9,333	GNMA±		3.50			09/20/2018		9,723
	6,611	GNMA±		3.00			11/20/2018		6,869
	124,327	GNMA±		4.00			11/20/2018		129,796
	3,008	GNMA±		3.00			12/20/2018		3,125
	5,794	GNMA±		3.38			01/20/2019		6,034
	160,909	GNMA±		4.00			01/20/2019		162,984
	14,183	GNMA±		3.38			02/20/2019		14,769
	52,818	GNMA±		3.50			02/20/2019		55,054


40 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

ADJUSTABLE RATE GOVERNMENT FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Government National Mortgage Association (continued)
$	4,755	GNMA±		3.38	%		03/20/2019	$	4,951
	26,212	GNMA±		3.38			03/20/2019		27,294
	33,338	GNMA±		3.38			05/20/2019		34,712
	10,558	GNMA±		4.00			05/20/2019		11,026
	64,769	GNMA±		3.38			06/20/2019		67,438
	5,278	GNMA±		4.50			06/20/2019		5,526
	43,052	GNMA±		3.00			08/20/2019		44,745
	85,383	GNMA±		3.50			09/20/2019		88,955
	17,703	GNMA±		3.50			01/20/2020		18,452
	5,949	GNMA		9.00			03/15/2020		6,979
	15,796	GNMA±		3.38			06/20/2020		16,446
	57,743	GNMA±		3.50			06/20/2020		60,158
	1,804	GNMA±		3.50			07/20/2020		1,880
	29,763	GNMA±		2.50			11/20/2020		30,849
	19,160	GNMA±		2.50			12/20/2020		19,859
	31,298	GNMA±		3.38			01/20/2021		32,591
	401	GNMA±		3.38			01/20/2021		417
	90,300	GNMA±		3.38			02/20/2021		94,028
	602	GNMA±		3.38			02/20/2021		627
	17,847	GNMA±		3.38			05/20/2021		18,583
	107,996	GNMA±		3.38			06/20/2021		112,445
	1,116	GNMA		9.00			08/15/2021		1,136
	39,509	GNMA±		2.63			08/20/2021		40,988
	84,199	GNMA±		2.63			08/20/2021		87,353
	19,395	GNMA±		2.63			08/20/2021		20,121
	436,459	GNMA±		2.13			10/20/2021		451,568
	46,443	GNMA±		2.13			11/20/2021		48,050
	17,482	GNMA±		2.13			12/20/2021		18,087
	47,513	GNMA±		2.50			12/20/2021		49,247
	213,898	GNMA±		3.38			01/20/2022		222,728
	6,794	GNMA±		3.88			01/20/2022		7,098
	74,543	GNMA±		3.38			02/20/2022		77,620
	182,137	GNMA±		3.38			02/20/2022		189,657
	10,245	GNMA±		3.38			02/20/2022		10,668
	7,867	GNMA±		3.38			02/20/2022		8,192
	198,999	GNMA±		3.38			03/20/2022		207,214
	362,854	GNMA±		3.38			03/20/2022		377,834
	59,007	GNMA±		3.38			03/20/2022		61,443
	580,804	GNMA±		3.38			04/20/2022		604,734
	547,373	GNMA±		3.38			04/20/2022		569,925
	72,883	GNMA±		3.38			05/20/2022		75,886
	535,613	GNMA±		3.38			05/20/2022		557,680
	142,967	GNMA±		3.38			05/20/2022		148,857
	31,241	GNMA±		3.38			05/20/2022		32,528
	7,378	GNMA±		3.38			06/20/2022		7,682
	41,677	GNMA±		3.38			06/20/2022		43,394
	21,796	GNMA±		2.63			07/20/2022		22,613
	12,347	GNMA±		2.63			07/20/2022		12,809
	14,497	GNMA±		2.63			07/20/2022		15,040
	7,351	GNMA±		3.13			07/20/2022		7,648
	8,571	GNMA±		3.13			07/20/2022		8,918
	157,111	GNMA±		2.63			09/20/2022		162,995
	81,056	GNMA±		2.63			09/20/2022		84,092
	17,079	GNMA±		2.63			09/20/2022		17,719
	62,919	GNMA±		2.13			10/20/2022		65,097
	213,858	GNMA±		2.13			10/20/2022		221,261


Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 41

ADJUSTABLE RATE GOVERNMENT FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Government National Mortgage Association (continued)
$	127,400	GNMA±		2.13	%		11/20/2022	$	131,810
	169,104	GNMA±		2.13			11/20/2022		174,958
	48,920	GNMA±		2.13			12/20/2022		50,613
	657,456	GNMA±		2.13			12/20/2022		680,215
	12,481	GNMA±		2.13			12/20/2022		12,913
	105,108	GNMA±		2.13			12/20/2022		108,746
	1,505,310	GNMA±		3.38			01/20/2023		1,567,456
	104,832	GNMA±		3.38			01/20/2023		109,160
	129,048	GNMA±		3.38			02/20/2023		134,376
	76,805	GNMA±		3.38			02/20/2023		79,976
	139,045	GNMA±		3.38			02/20/2023		144,786
	26,514	GNMA±		3.38			02/20/2023		27,609
	150,813	GNMA±		3.38			03/20/2023		157,039
	24,344	GNMA±		3.38			04/20/2023		25,347
	54,159	GNMA±		3.38			04/20/2023		56,390
	17,815	GNMA±		3.38			05/20/2023		18,549
	52,284	GNMA±		3.38			05/20/2023		54,438
	508,344	GNMA±		3.38			06/20/2023		529,288
	231,416	GNMA±		3.38			06/20/2023		240,951
	9,201	GNMA±		2.63			07/20/2023		9,545
	712,578	GNMA±		2.63			09/20/2023		739,265
	156,979	GNMA±		2.63			09/20/2023		162,858
	565,123	GNMA±		2.63			09/20/2023		586,287
	1,420,261	GNMA±		2.13			10/20/2023		1,469,427
	1,076,072	GNMA±		2.13			11/20/2023		1,113,323
	1,064,611	GNMA±		2.13			11/20/2023		1,101,465
	51,701	GNMA±		2.13			12/20/2023		53,490
	176,806	GNMA±		2.13			12/20/2023		182,927
	1,516,803	GNMA±		2.13			12/20/2023		1,569,311
	37,655	GNMA±		3.38			04/20/2024		39,207
	391,008	GNMA±		3.38			04/20/2024		407,118
	346,841	GNMA±		3.38			05/20/2024		361,131
	30,944	GNMA±		3.38			05/20/2024		32,219
	38,011	GNMA±		3.38			06/20/2024		39,577
	29,003	GNMA±		3.38			06/20/2024		30,198
	200,905	GNMA±		3.38			06/20/2024		209,183
	167,476	GNMA±		2.63			07/20/2024		173,748
	982,026	GNMA±		2.63			07/20/2024		1,018,804
	522,125	GNMA±		2.63			07/20/2024		541,679
	1,211	GNMA		9.00			07/20/2024		1,438
	67,392	GNMA±		2.63			08/20/2024		69,916
	88,619	GNMA±		2.63			08/20/2024		91,938
	817	GNMA		9.00			08/20/2024		970
	3,017	GNMA		9.00			09/20/2024		3,584
	1,806,828	GNMA±		2.13			10/20/2024		1,869,376
	810,955	GNMA±		2.50			10/20/2024		840,548
	26,919	GNMA		9.00			10/20/2024		31,976
	851,658	GNMA±		2.13			11/20/2024		881,140
	151,597	GNMA±		2.13			11/20/2024		156,845
	745	GNMA		9.00			11/20/2024		885
	557,047	GNMA±		2.50			12/20/2024		577,375
	11,385	GNMA		9.00			01/20/2025		13,553
	43,346	GNMA		9.00			02/20/2025		51,600
	222,164	GNMA±		3.38			04/20/2025		231,317
	8,742	GNMA±		3.38			04/20/2025		9,102
	102,280	GNMA		6.45			04/20/2025		115,233


42 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

ADJUSTABLE RATE GOVERNMENT FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Government National Mortgage Association (continued)
$	56,745	GNMA		6.45	%		05/20/2025	$	63,932
	10,779	GNMA±		2.63			07/20/2025		11,182
	275,298	GNMA±		2.63			09/20/2025		285,608
	57,965	GNMA		6.45			09/20/2025		65,305
	935,327	GNMA±		2.13			10/20/2025		967,706
	186,591	GNMA±		2.13			10/20/2025		193,050
	969,580	GNMA±		3.38			01/20/2026		1,009,608
	792,766	GNMA±		3.38			02/20/2026		825,494
	163,761	GNMA±		2.63			09/20/2026		169,894
	162,771	GNMA±		2.13			10/20/2026		168,406
	14,850	GNMA±		2.13			11/20/2026		15,365
	12,053	GNMA±		2.13			01/20/2027		12,470
	406,328	GNMA±		3.38			01/20/2027		423,103
	11,668	GNMA±		3.38			02/20/2027		12,149
	39,613	GNMA±		3.38			05/20/2027		41,245
	3,769	GNMA±		2.63			07/20/2027		3,910
	29,281	GNMA±		2.63			08/20/2027		30,378
	5,878	GNMA±		2.63			08/20/2027		6,098
	6,237	GNMA±		2.63			09/20/2027		6,471
	10,676	GNMA±		2.13			10/20/2027		11,045
	9,541	GNMA±		2.13			11/20/2027		9,871
	11,030	GNMA±		3.38			01/20/2028		11,485
	149,455	GNMA		6.75			02/15/2029		171,030
	325,542	GNMA±		2.13			12/20/2029		336,812
	184,433	GNMA±		3.00			01/20/2030		191,778
	233,944	GNMA±		2.13			10/20/2030		242,042
	12,478	GNMA±		2.13			11/20/2031		12,910
	1,652	GNMA±		2.13			12/20/2031		1,710
	118,243	GNMA±		3.50			04/20/2032		123,189
	286,459	GNMA±		3.50			05/20/2032		298,440
	707,073	GNMA±		3.50			06/20/2032		736,647
	832,894	GNMA±		2.13			11/20/2032		861,727
	112,158	GNMA±		2.00			12/20/2032		115,971
	5,127	GNMA±		3.50			02/20/2033		5,345
	65,333	GNMA±		3.50			03/20/2033		68,098
	429,822	GNMA		6.50			06/20/2034		483,968
	90,538	GNMA		6.50			06/20/2034		101,943
	73,425	GNMA		7.00			07/20/2034		83,684
	127,987	GNMA		7.00			07/20/2034		145,870
	2,583,936	GNMA		6.50			08/20/2034		2,909,442
	102,792	GNMA		6.50			08/20/2034		115,740
	245,567	GNMA		6.50			08/20/2034		276,502
	134,852	GNMA		6.50			08/20/2034		151,839
	7,777,661	GNMA Series 2003-1 Class SW(c)±		0.60			06/16/2031		37,171
	713,388	GNMA Series 2004-41 Class SE(c)±		6.94			05/20/2030		9,019

									39,967,439


Total Agency Securities (Cost $1,154,479,355)									1,168,872,397


Collateralized Mortgage Obligations: 0.98%
	12,000,000	National Credit Union Administration Guaranteed Notes Series 2011-C1 Class 1A± (a)		0.60			02/28/2020		12,000,000


Total Collateralized Mortgage Obligations (Cost $12,000,000)									12,000,000


Short-Term Investments: 2.85%

US Treasury Bills: 0.03%
	400,000	US Treasury Bill#^		0.11			03/24/2011		399,970


Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 43

ADJUSTABLE RATE GOVERNMENT FUND


Shares		Security Name			Yield			Value
Investment Companies: 2.82%
	34,425,601	Wells Fargo Advantage Government Money Market Fund(l)(u)				0.01	%	$	34,425,601


Total Short-Term Investments (Cost $34,825,569)									34,825,571


Total Investments in Securities (Cost $1,201,304,924)*			99.38	%					1,215,697,968

Other Assets and Liabilities, Net			0.62						7,600,247


Total Net Assets			100.00	%				$	1,223,298,215


±		Variable rate investments.

(c)		Interest-only securities entitle holders to receive only the interest payments on the underlying mortgages. The principal amount shown is the notional amount of the underlying mortgages. Interest rate disclosed represents the coupon rate.

(a)		Security is fair valued by the Management Valuation Team, and in certain instances by the Board of Trustees, in accordance with procedures approved by the Board of Trustees.

^		Zero coupon security. Rate represents yield to maturity.

#		All or a portion of this security is segregated as collateral for futures transactions.

(l)		Investment in an affiliate.

(u)		Rate shown is the 7-day annualized yield at period end.

*		Cost for federal income tax purposes is $1,202,767,754 and net unrealized appreciation (depreciation) consists of:


Gross unrealized appreciation	$	14,619,198
Gross unrealized depreciation		(1,688,984	)

Net unrealized appreciation	$	12,930,214

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



44 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

GOVERNMENT SECURITIES FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Agency Securities: 67.55%

Federal Home Loan Bank: 0.28%
$	6,150,000	FHLB		5.63	%		03/14/2036	$	6,779,170


Federal Home Loan Mortgage Corporation: 8.76%
	1,399,241	FHLMC±		0.72			02/15/2033		1,401,367
	570,575	FHLMC		2.93			11/01/2012		572,670
	10,088,967	FHLMC		6.00			05/25/2043		11,015,971
	328	FHLMC #170053		14.75			08/01/2011		340
	97	FHLMC #170069		14.00			11/01/2012		98
	105	FHLMC #170189		9.50			09/01/2016		121
	762	FHLMC #170198		9.50			10/01/2016		871
	20,366	FHLMC #170215		8.00			02/01/2017		23,040
	45,524	FHLMC #170235		10.50			08/01/2019		52,676
	11,081	FHLMC #1B0123±		3.03			09/01/2031		11,142
	280,536	FHLMC #1B0129±		3.10			09/01/2031		282,818
	3,158,201	FHLMC #1G1393±		5.93			12/01/2036		3,341,866
	2,120,769	FHLMC #1J0817±		5.90			01/01/2038		2,256,987
	5,654,473	FHLMC #1Q0183±		5.93			10/01/2036		5,975,342
	3,476,770	FHLMC #1R0005±		3.62			07/01/2032		3,551,651
	65	FHLMC #306642		10.50			02/01/2019		74
	54	FHLMC #360008		10.00			08/01/2017		60
	29	FHLMC #360044		10.00			01/01/2019		33
	43	FHLMC #360063		10.50			06/01/2019		49
	127	FHLMC #360067		10.00			08/01/2019		144
	381	FHLMC #360071		9.50			08/01/2019		446
	1,283	FHLMC #360077		9.00			08/01/2019		1,500
	675	FHLMC #360080		9.00			12/01/2019		792
	20	FHLMC #360089		9.50			02/01/2020		24
	260	FHLMC #360096		9.00			02/01/2020		305
	45	FHLMC #360104		10.00			03/01/2020		52
	88	FHLMC #360108		10.00			06/01/2020		101
	73	FHLMC #360109		10.00			07/01/2020		84
	161	FHLMC #360110		9.50			06/01/2020		190
	84	FHLMC #360114		10.00			08/01/2020		96
	1,212	FHLMC #360116		9.50			08/01/2020		1,437
	155	FHLMC #360117		9.50			09/01/2020		184
	68	FHLMC #360122		9.50			10/01/2020		80
	11,655,000	FHLMC #3748 D		4.00			11/15/2039		11,263,464
	294	FHLMC #530935		10.50			05/01/2019		336
	183	FHLMC #531025		9.00			08/01/2019		187
	57	FHLMC #533736		9.50			08/01/2018		57
	354	FHLMC #537360		9.00			08/01/2019		376
	488	FHLMC #538318		10.00			12/01/2019		561
	228	FHLMC #538321		9.00			01/01/2020		267
	86,568	FHLMC #545187		10.50			12/01/2019		99,455
	5,084	FHLMC #546817		9.00			02/01/2020		5,943
	2,919	FHLMC #547036		9.00			03/01/2020		3,426
	3,016	FHLMC #547212		10.50			02/01/2020		3,471
	388	FHLMC #547408		9.00			03/01/2020		457
	9,043	FHLMC #549166		10.50			05/01/2020		10,406
	559	FHLMC #549849		9.00			09/01/2020		656
	60,653	FHLMC #552435		10.50			08/01/2020		70,290
	30	FHLMC #553178		9.50			09/01/2020		35
	102	FHLMC #554395		9.00			12/01/2020		120



Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 45

GOVERNMENT SECURITIES FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Federal Home Loan Mortgage Corporation (continued)
$	8,862	FHLMC #554793		9.00	%		04/01/2021	$	10,435
	195,092	FHLMC #555503		9.00			04/01/2021		212,138
	377,324	FHLMC #611023±		2.45			10/01/2026		395,121
	96,955	FHLMC #786210±		6.38			01/01/2026		97,648
	439,868	FHLMC #786823±		2.79			07/01/2029		462,013
	191,985	FHLMC #789483±		2.73			06/01/2032		201,037
	139,986	FHLMC #865496±		4.78			05/01/2026		146,900
	100,948	FHLMC #884009		10.50			05/01/2020		117,737
	22,402	FHLMC #A00687		9.50			09/01/2020		25,526
	11,466	FHLMC #A01144		9.00			03/01/2021		13,182
	15,414	FHLMC #A01434		9.00			06/01/2016		15,584
	151,533	FHLMC #A01562		9.00			11/01/2018		160,493
	38,064	FHLMC #A01620		9.00			04/01/2017		40,314
	28,716	FHLMC #A01659		9.00			01/01/2017		31,991
	35,057	FHLMC #A01860		8.50			06/01/2017		39,716
	6,963,932	FHLMC #A93454		5.00			08/01/2040		7,293,475
	993,896	FHLMC #B13066		4.00			03/01/2014		1,038,961
	871,836	FHLMC #B13579		5.00			04/01/2019		934,856
	734,532	FHLMC #B13580		5.00			04/01/2019		787,628
	5,372,434	FHLMC #B13654		4.00			04/01/2014		5,532,130
	1,298,678	FHLMC #B15194		5.00			06/01/2019		1,392,552
	1,213,331	FHLMC #B16884		5.00			10/01/2019		1,299,646
	3,795,932	FHLMC #B17855		5.00			02/01/2020		4,070,319
	135	FHLMC #C00001		9.50			10/01/2020		160
	192	FHLMC #C00004		9.50			11/01/2020		229
	691	FHLMC #C00032		9.00			04/01/2021		817
	417	FHLMC #C00038		9.50			05/01/2021		495
	1,493	FHLMC #C00054		9.00			08/01/2021		1,762
	13,387	FHLMC #C00149		8.50			07/01/2022		15,857
	14,095	FHLMC #C00288		7.00			12/01/2023		16,040
	51,183	FHLMC #C00470		8.00			08/01/2026		60,264
	49,906	FHLMC #C00483		8.00			11/01/2026		58,761
	1,675	FHLMC #C00494		7.00			12/01/2026		1,914
	105,503	FHLMC #C00647		6.50			09/01/2028		119,544
	7,793	FHLMC #C00756		7.00			04/01/2029		8,920
	68,185	FHLMC #C00765		7.00			05/01/2029		78,104
	18	FHLMC #C01197		6.50			07/01/2031		20
	481,740	FHLMC #C01345		7.00			04/01/2032		552,868
	230,463	FHLMC #C01410		6.00			10/01/2032		254,065
	2,834,551	FHLMC #C03478		4.50			06/01/2040		2,890,166
	26,795	FHLMC #C14179		6.50			09/01/2028		30,360
	2,322	FHLMC #C25760		7.00			04/01/2029		2,660
	38,968	FHLMC #C31808		7.50			10/01/2029		44,999
	472,832	FHLMC #C59553		7.50			11/01/2031		546,766
	545,074	FHLMC #C65576		7.50			04/01/2032		630,660
	20,003	FHLMC #C80168		8.00			06/01/2024		23,504
	3,136	FHLMC #C80235		9.00			09/01/2024		3,748
	344,642	FHLMC #C90544		6.50			04/01/2022		382,155
	1,117	FHLMC #D01863		9.00			09/01/2020		1,314
	177	FHLMC #D02894		9.00			02/01/2021		209
	4,016	FHLMC #D03267		9.00			03/01/2021		4,070
	15,749	FHLMC #D03958		9.00			03/01/2021		15,858
	1,503	FHLMC #D05708		9.00			06/01/2021		1,774
	6,958	FHLMC #D07418		9.00			07/01/2021		8,210
	5,547	FHLMC #D07542		9.00			07/01/2021		6,546
	7,922	FHLMC #D18037		9.00			04/01/2022		9,379



46 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

GOVERNMENT SECURITIES FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Federal Home Loan Mortgage Corporation (continued)
$	14,028	FHLMC #D52807		7.00	%		05/01/2024	$	15,964
	8,614	FHLMC #D54010		8.00			06/01/2024		10,121
	16,778	FHLMC #D54132		8.00			06/01/2024		19,715
	3,469	FHLMC #D57038		9.00			10/01/2024		4,145
	23,879	FHLMC #D70632		6.50			04/01/2026		26,967
	6,096	FHLMC #D70792		6.50			04/01/2026		6,885
	9,434	FHLMC #D73666		8.50			08/01/2026		11,258
	33,706	FHLMC #D73888		8.50			08/01/2026		40,221
	438	FHLMC #D76733		7.00			12/01/2026		501
	2,819	FHLMC #D76735		7.00			12/01/2026		3,221
	4,994	FHLMC #D76758		7.00			12/01/2026		5,705
	154	FHLMC #D76770		7.00			12/01/2026		176
	1,718	FHLMC #D76913		7.00			12/01/2026		1,963
	722,528	FHLMC #E79794		7.00			10/01/2014		784,840
	1,273,369	FHLMC #E96459		5.00			05/01/2018		1,365,016
	1,745	FHLMC #G00137		9.00			07/01/2022		2,062
	83,366	FHLMC #G00159		8.00			08/01/2023		96,291
	197,851	FHLMC #G00319		9.50			04/01/2025		236,320
	5,689	FHLMC #G00484		8.50			05/01/2026		6,778
	43,175	FHLMC #G00683		8.50			12/01/2025		51,589
	38,379	FHLMC #G01019		8.00			11/01/2028		45,015
	157,489	FHLMC #G01236		10.00			10/01/2021		173,176
	711	FHLMC #G10783		8.50			06/01/2012		720
	60	FHLMC #G11136		6.50			05/01/2011		60
	10,345	FHLMC #G11200		8.00			01/01/2012		10,598
	137,136	FHLMC #G11209		7.50			12/01/2011		139,887
	47,523	FHLMC #G11345		7.50			12/01/2011		48,476
	235,650	FHLMC #G11368		7.50			12/01/2012		244,157
	119,812	FHLMC #G11451		6.50			04/01/2018		130,697
	354,085	FHLMC #G12008		6.50			04/01/2021		386,252
	5,332,069	FHLMC #G18005		5.00			08/01/2019		5,709,164
	851,473	FHLMC #G80106		10.00			08/17/2022		958,641
	1,486,361	FHLMC #G80116		10.00			02/17/2025		1,698,777
	1,726,761	FHLMC #G80193		9.50			09/17/2022		2,003,171
	97,277	FHLMC #G90023		7.00			11/17/2013		100,202
	3,726,736	FHLMC #H01193		6.50			08/01/2037		4,131,852
	1,663,992	FHLMC #H01792		6.50			10/01/2037		1,844,876
	35,143	FHLMC #N70012		10.50			08/01/2020		40,803
	54,960,000	FHLMC Series 1		0.75			03/28/2013		54,901,632
	41,093	FHLMC Series 16 Class D		10.00			10/15/2019		44,603
	157,327	FHLMC Series 1671 Class 1671-TA±		0.81			02/15/2024		157,489
	9,870,464	FHLMC Series 2882 Class TF±		0.52			10/15/2034		9,870,766
	3,894,552	FHLMC Series 3139 Class YD		4.38			04/15/2015		3,928,311
	2,449,746	FHLMC Series 3185 Class PA		4.50			08/15/2026		2,461,599
	8,615,340	FHLMC Series 3221 Class VA		5.00			09/15/2017		9,251,291
	1,152,706	FHLMC Series R007 Class AC		5.88			05/15/2016		1,158,451
	8,497,602	FHLMC Series R008 Class FK±		0.67			07/15/2023		8,501,638
	2,578,896	FHLMC Series T-57 Class 1A1		6.50			07/25/2043		2,981,043
	4,220,815	FHLMC Series T-67 Class 1A1C±		3.24			03/25/2036		4,370,523
	4,633,011	FHLMC Series T-67 Class 2A1C±		3.20			03/25/2036		4,797,339
	7,230,767	FHLMC Series T-75 Class A1±		0.30			12/25/2036		7,187,903
	370,236	FHLMC Structured Pass-Through Securities Series T-15 Class A6±		0.71			11/25/2028		350,709
	1,497,182	FHLMC Structured Pass-Through Securities Series T-23 Class A±		0.54			05/25/2030		1,489,073
	664,515	FHLMC Structured Pass-Through Securities Series T-35 Class A±		0.54			09/25/2031		629,697
	1,834,064	FHLMC Structured Pass-Through Securities Series T-42 Class A6		9.50			02/25/2042		2,126,368



Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 47

GOVERNMENT SECURITIES FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Federal Home Loan Mortgage Corporation (continued)
$	847,471	FHLMC Structured Pass-Through Securities Series T-55 Class 2A1±		3.79	%		03/25/2043	$	795,997
	4,756,574	FHLMC Structured Pass-Through Securities Series T-57 Class 2A1±		3.95			07/25/2043		4,747,187

									210,151,599


Federal National Mortgage Association: 49.46%
	4,825,209	FNMA±		0.46			02/25/2037		4,786,954
	29,170,000	FNMA		2.38			07/28/2015		29,424,012
	9,125,000	FNMA		3.50			02/01/2026		9,163,398
	16,840,000	FNMA%%		4.00			12/25/2023		17,303,100
	13,300,000	FNMA%%		4.50			12/25/2020		13,931,750
	31,439,000	FNMA%%		5.00			05/25/2036		32,917,608
	16,840,000	FNMA%%		5.00			04/25/2019		17,881,975
	83,775,000	FNMA%%		5.50			03/25/2035		89,534,531
	6,558,000	FNMA%%		5.50			09/25/2019		7,074,443
	48,735,000	FNMA%%		6.00			08/25/2035		52,953,599
	135,084	FNMA		6.17			02/25/2016		136,132
	3,576,811	FNMA		6.50			07/25/2042		3,913,363
	1,636,338	FNMA		7.50			11/25/2031		1,972,298
	14,968	FNMA #035500		8.50			05/01/2017		16,885
	475	FNMA #050363		9.50			11/01/2020		563
	400	FNMA #050443		9.00			06/01/2021		471
	555	FNMA #050466		9.00			08/01/2021		649
	45,237	FNMA #100042		11.00			10/15/2020		51,410
	175,345	FNMA #100285		9.50			12/15/2020		208,749
	271	FNMA #105590		9.50			10/01/2020		322
	14,653	FNMA #124702		9.50			06/01/2022		16,515
	16	FNMA #1376		15.50			10/01/2012		16
	2,952,252	FNMA #160467		6.07			09/01/2013		3,132,325
	225,628	FNMA #190180		9.00			07/01/2021		257,471
	7,789	FNMA #190626		11.25			02/01/2016		7,852
	19,186	FNMA #239463		8.00			08/01/2020		21,438
	1,010	FNMA #250837		8.50			02/01/2027		1,183
	1,703	FNMA #250930		8.50			03/01/2027		1,993
	295,471	FNMA #253951		7.50			09/01/2031		342,002
	369,751	FNMA #254218		7.00			02/01/2032		424,675
	97,713	FNMA #254223		7.50			02/01/2032		113,178
	886,990	FNMA #254480		7.00			10/01/2032		1,019,195
	333,416	FNMA #255166		6.00			03/01/2024		367,790
	9,342	FNMA #255168		7.00			02/01/2034		10,688
	1,123,124	FNMA #256314		5.50			06/01/2016		1,194,237
	20,729,617	FNMA #257307		6.00			08/01/2038		22,551,325
	126,371	FNMA #266514		6.50			01/01/2024		142,053
	63,415	FNMA #278602		8.50			08/01/2024		73,957
	9,580	FNMA #282451		9.00			07/01/2024		11,225
	2,432	FNMA #287737		9.00			03/01/2025		2,850
	4,804	FNMA #291419		9.00			03/01/2025		5,640
	5,452	FNMA #291422		9.00			04/01/2025		6,401
	14,365	FNMA #297400		9.00			02/01/2025		16,831
	982	FNMA #300484		8.50			12/01/2014		990
	3,420	FNMA #302746		9.00			01/01/2025		4,008
	110	FNMA #302951		9.00			01/01/2025		129
	160	FNMA #303548		8.50			02/01/2012		160
	42,563	FNMA #304286		9.00			03/01/2025		49,973
	49,913	FNMA #304461		9.00			01/01/2025		58,603
	1,966	FNMA #306583		9.00			03/01/2025		2,309



48 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

GOVERNMENT SECURITIES FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Federal National Mortgage Association (continued)
$	128	FNMA #306587		9.00	%		03/01/2025	$	128
	55,589	FNMA #306675		9.00			03/01/2025		65,267
	478,576	FNMA #313419		8.50			12/01/2026		563,456
	135,981	FNMA #323013		9.00			10/01/2021		157,707
	592,348	FNMA #323284		8.50			05/01/2017		661,989
	3,392	FNMA #331154		8.50			03/01/2027		3,971
	13,079	FNMA #347896		8.50			06/01/2026		15,310
	39,002	FNMA #351270		8.50			07/01/2026		45,655
	19,845	FNMA #355364		8.50			08/01/2026		23,230
	3,795,451	FNMA #357464		4.50			12/01/2018		4,019,579
	880	FNMA #358045		8.50			09/01/2026		1,030
	442	FNMA #358139		8.50			10/01/2026		517
	12,521	FNMA #361518		8.50			10/01/2026		14,657
	14,388	FNMA #362050		8.50			11/01/2026		16,842
	21,053	FNMA #364215		7.50			07/01/2015		21,162
	7,586	FNMA #366137		8.50			11/01/2026		8,880
	41,412	FNMA #367715		8.50			12/01/2026		48,477
	383	FNMA #367736		8.50			12/01/2026		449
	28,609	FNMA #368032		7.00			11/01/2026		32,803
	6,089	FNMA #370205		8.50			01/01/2027		7,128
	10,955	FNMA #372219		8.50			02/01/2027		12,800
	1,525,705	FNMA #383604		6.65			05/01/2016		1,677,764
	303,650	FNMA #385616		5.24			12/01/2012		303,101
	6,709,745	FNMA #387402		5.03			05/01/2015		7,259,008
	3,449,700	FNMA #387646		5.22			10/01/2015		3,750,237
	522,254	FNMA #398800		8.00			06/01/2012		533,608
	1,930	FNMA #398805		8.50			11/01/2011		1,940
	77,752	FNMA #417768		6.50			03/01/2028		87,694
	25,309	FNMA #426843		11.00			02/01/2019		25,513
	19,028	FNMA #446430		8.00			10/01/2027		19,242
	49,417	FNMA #456563		8.50			08/01/2029		57,865
	528,354	FNMA #457277±		2.77			10/01/2027		559,846
	154,594	FNMA #458018		12.00			07/15/2014		176,113
	563,298	FNMA #460207		5.60			11/01/2013		562,995
	10,991,947	FNMA #461110		4.62			07/01/2013		11,509,220
	3,697,045	FNMA #461647		6.08			01/01/2019		3,687,184
	4,557,371	FNMA #461966		5.55			09/01/2019		4,634,509
	1,049,148	FNMA #462153		7.48			01/01/2025		1,026,621
	10,781,441	FNMA #462846		4.15			07/01/2014		11,416,454
	3,394,266	FNMA #464495		4.68			02/01/2020		3,543,390
	437,482	FNMA #487758		8.50			05/01/2026		513,737
	164,082	FNMA #487759		9.50			07/01/2028		196,232
	1,061	FNMA #505851		8.50			07/01/2029		1,242
	81,067	FNMA #516051		9.50			01/01/2021		95,552
	16,444	FNMA #535183		8.00			06/01/2028		19,088
	89,539	FNMA #535537		9.00			07/01/2028		105,702
	35,786	FNMA #535573		8.00			11/01/2013		37,087
	253,428	FNMA #535752		10.00			12/01/2020		288,789
	799,959	FNMA #538435±		3.29			07/01/2026		842,562
	379,678	FNMA #539118		8.00			02/01/2030		438,284
	128,484	FNMA #545117±		2.58			12/01/2040		134,882
	583,697	FNMA #545187±		2.67			09/01/2031		610,911
	140,177	FNMA #545208±		2.57			09/01/2031		147,210
	411,533	FNMA #545460±		2.43			11/01/2031		430,706
	644,402	FNMA #545686		6.50			06/01/2017		705,964
	1,482,396	FNMA #54844±		3.40			09/01/2027		1,500,625



Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 49

GOVERNMENT SECURITIES FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Federal National Mortgage Association (continued)
$	312,433	FNMA #555161		6.00	%		12/01/2013	$	341,207
	1,912,359	FNMA #555569		6.00			05/01/2016		2,088,480
	5,636,942	FNMA #555710		4.50			08/01/2018		5,969,813
	7,440	FNMA #601997		7.00			09/01/2031		8,546
	11,513	FNMA #610591		7.00			01/01/2032		13,223
	60,534	FNMA #624554		7.00			02/01/2032		69,842
	236,474	FNMA #635726±		2.56			04/01/2032		246,030
	260,809	FNMA #646643±		2.67			06/01/2032		272,914
	1,293,472	FNMA #66414±		4.38			09/01/2028		1,335,385
	59,447	FNMA #669258		8.00			01/01/2030		68,701
	249,945	FNMA #675479±		2.56			01/01/2033		263,693
	169,009	FNMA #675491±		3.30			04/01/2033		176,873
	106,187	FNMA #693297		8.00			05/01/2027		122,719
	42,697	FNMA #695514		8.50			10/01/2026		49,831
	230,890	FNMA #695519		8.50			11/01/2026		269,285
	192,599	FNMA #70765		9.00			03/01/2021		227,366
	1,051,525	FNMA #724438		8.50			06/01/2027		1,228,851
	179,483	FNMA #724658±		4.24			07/01/2033		179,936
	15,642,011	FNMA #725249		5.00			03/01/2034		16,536,188
	2,969,716	FNMA #725638		5.00			12/01/2018		3,186,236
	1,325,906	FNMA #725922		6.50			12/01/2029		1,493,656
	25,046,149	FNMA #735062		5.50			06/01/2034		26,996,730
	6,334,886	FNMA #735333±		3.06			05/01/2036		6,477,640
	3,728,932	FNMA #735613		6.00			02/01/2035		4,111,397
	304,437	FNMA #735644		6.50			11/01/2031		342,953
	9,979,815	FNMA #739503		5.50			09/01/2033		10,757,037
	8,606,608	FNMA #740227		5.50			09/01/2033		9,276,886
	742,388	FNMA #745379		7.00			04/01/2034		855,449
	4,716,327	FNMA #745678±		3.74			05/01/2036		4,965,729
	5,184,696	FNMA #745743		4.00			05/01/2021		5,413,984
	4,293,895	FNMA #745816±		2.38			12/01/2035		4,504,193
	2,012,872	FNMA #787275±		4.92			06/01/2034		2,099,997
	204,405	FNMA #804150		7.00			12/01/2034		233,850
	2,928,213	FNMA #813158±		2.55			12/01/2034		3,080,707
	21,834	FNMA #821938		7.00			06/01/2035		24,941
	7,184,506	FNMA #835168		5.50			08/01/2035		7,726,071
	41,898	FNMA #851813		7.00			01/01/2036		47,860
	3,791,868	FNMA #873354		5.61			02/01/2021		4,153,552
	3,285,397	FNMA #873429		5.39			01/01/2024		3,443,039
	6,456,641	FNMA #873461		5.67			03/01/2016		7,062,658
	991,045	FNMA #873468		5.70			03/01/2016		1,071,925
	3,232,220	FNMA #873577		5.55			05/01/2016		3,491,751
	3,735,007	FNMA #873616		5.75			05/01/2021		3,688,677
	1,885,069	FNMA #873718		5.95			06/01/2024		1,936,714
	5,828,724	FNMA #874071		5.67			11/01/2021		6,086,325
	1,732,000	FNMA #874164		5.66			12/01/2016		1,834,520
	11,700,000	FNMA #874284		5.12			01/01/2017		12,601,676
	1,733,000	FNMA #874819±		5.99			09/01/2018		1,786,347
	1,130,148	FNMA #874877		5.79			10/01/2017		1,205,530
	2,968,110	FNMA #886087		6.50			07/01/2036		3,341,774
	4,588,277	FNMA #886686±		6.02			08/01/2036		4,853,430
	1,154,495	FNMA #886761		7.00			09/01/2036		1,318,348
	18,614,205	FNMA #888022		5.00			02/01/2036		19,643,387
	3,315,654	FNMA #888332±		3.66			05/01/2036		3,409,558
	2,716,024	FNMA #888512±		3.53			02/01/2027		2,854,130
	8,004,043	FNMA #888538		5.50			01/01/2037		8,607,383



50 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

GOVERNMENT SECURITIES FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Federal National Mortgage Association (continued)
$	7,582,024	FNMA #888707		7.50	%		10/01/2037	$	8,728,442
	15,063,862	FNMA #889398		6.00			11/01/2037		16,397,081
	3,516,346	FNMA #892283±		5.87			09/01/2036		3,704,422
	3,584,798	FNMA #895998		6.50			07/01/2036		4,050,662
	397,815	FNMA #923441		7.00			07/01/2047		449,211
	1,182,589	FNMA #924858		6.50			09/01/2037		1,310,034
	1,844,590	FNMA #954965		6.50			09/01/2037		2,043,377
	2,061,108	FNMA #957048		5.79			12/01/2017		2,219,451
	1,138,691	FNMA #957144		5.63			02/01/2018		1,224,666
	2,289,305	FNMA #958705		4.79			05/01/2019		2,412,507
	5,189,384	FNMA #988565		6.00			08/01/2038		5,677,372
	67,887,521	FNMA #AB1469		4.50			09/01/2040		69,283,159
	2,185,646	FNMA #AD0639		6.00			12/01/2038		2,379,085
	18,446,246	FNMA #AD8536		5.00			08/01/2040		19,336,441
	88,873,816	FNMA #AD9194		5.00			08/01/2040		93,162,767
	101,193,584	FNMA #AE0113		4.00			07/01/2040		99,907,299
	3,180,546	FNMA #AE0396		8.00			09/01/2040		3,698,862
	939,797	FNMA #AE2084		4.50			08/01/2025		985,896
	20,252,342	FNMA #AE3049		4.50			09/01/2040		20,668,691
	6,072,340	FNMA #AH0313		4.00			12/01/2040		5,994,402
	35,014,947	FNMA #AH1099		4.00			12/01/2040		34,565,536
	1,881,081	FNMA Grantor Trust Series 2000-T6 Class A2		9.50			06/25/2030		2,356,642
	3,679,001	FNMA Grantor Trust Series 2001-T10 Class A3		9.50			12/25/2041		4,609,098
	955,859	FNMA Grantor Trust Series 2001-T12 Class A3		9.50			08/25/2041		1,150,803
	2,587,915	FNMA Grantor Trust Series 2001-T8 Class A3±		4.73			07/25/2041		2,683,873
	15,340,044	FNMA Grantor Trust Series 2002-T11 Class B		5.34			04/25/2012		16,133,379
	2,242,399	FNMA Grantor Trust Series 2002-T12 Class A5±		4.06			10/25/2041		2,242,980
	9,601,655	FNMA Grantor Trust Series 2002-T19 Class A1		6.50			07/25/2042		10,582,477
	533,649	FNMA Grantor Trust Series 2002-T5 Class A1±		0.50			05/25/2032		510,307
	15,000,000	FNMA Grantor Trust Series 2003-T1 Class B		4.49			11/25/2012		15,841,512
	510,210	FNMA Grantor Trust Series 2003-T2 Class A1±		0.54			03/25/2033		417,872
	2,280,773	FNMA Grantor Trust Series 2004-T1 Class 1A2		6.50			01/25/2044		2,516,413
	136,894	FNMA Interest Strip Series 161 Class 2(c)		8.50			07/25/2022		27,827
	367,292	FNMA Interest Strip Series 265 Class 2		9.00			03/01/2024		424,122
	59,250,000	FNMA Series 11		1.25			02/27/2014		59,148,149
	116,537	FNMA Series 1988-2 Class Z		10.10			02/25/2018		130,535
	71,029	FNMA Series 1988-7 Class Z		9.25			04/25/2018		79,235
	377,066	FNMA Series 1989-10 Class Z		9.50			03/25/2019		429,779
	316,349	FNMA Series 1989-100 Class Z		8.75			12/25/2019		356,126
	781,926	FNMA Series 1989-12 Class Y		10.00			03/25/2019		902,594
	431,930	FNMA Series 1989-22 Class G		10.00			05/25/2019		496,560
	85,762	FNMA Series 1989-63 Class Z		9.40			10/25/2019		96,159
	143,593	FNMA Series 1989-98 Class E		9.20			12/25/2019		160,992
	239,911	FNMA Series 1990-144 Class W		9.50			12/25/2020		274,125
	250,610	FNMA Series 1990-75 Class Z		9.50			07/25/2020		287,624
	88,006	FNMA Series 1990-84 Class Y		9.00			07/25/2020		99,808
	489,286	FNMA Series 1990-96 Class Z		9.67			08/25/2020		562,731
	136,589	FNMA Series 1991-5 Class Z		8.75			01/25/2021		154,063
	452,088	FNMA Series 1991-85 Class Z		8.00			06/25/2021		499,256
	4,222	FNMA Series 1991-G9 Class FA±		1.18			04/25/2021		4,228
	343,185	FNMA Series 1992-45 Class Z		8.00			04/25/2022		418,364
	1,651,523	FNMA Series 2001-T4 Class A1		7.50			07/25/2041		1,876,888
	4,830,619	FNMA Series 2003-90 Class FL±		0.71			03/25/2031		4,837,776
	1,351,902	FNMA Series 2003-W1 Class 1A1±		6.41			12/25/2042		1,559,757
	8,122,175	FNMA Series 2003-W19 Class 1A6		5.29			11/25/2033		8,761,796
	3,562,972	FNMA Series 2004-W1 Class 2A2		7.00			12/25/2033		4,120,354



Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 51

GOVERNMENT SECURITIES FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Federal National Mortgage Association (continued)
$	1,552,140	FNMA Series 2005-116 Class TU		5.50	%		12/25/2016	$	1,634,066
	4,000,000	FNMA Series 2005-71 Class DB		4.50			08/25/2025		4,231,000
	2,224,240	FNMA Series 2007-W10 Class 2A±		6.19			08/25/2047		2,437,029
	1,963,639	FNMA Series 2009-108 Class DE		4.50			08/25/2027		2,062,248
	5,515,137	FNMA Series 2010-74 Class FE±		0.71			01/25/2035		5,513,577
	4,729,614	FNMA Series 2010-74 Class FG±		0.49			03/25/2037		4,729,125
	5,617,728	FNMA Series 2010-74 Class FQ±		0.61			02/25/2035		5,618,040
	3,834,770	FNMA Series 2010-74 Class FW±		0.86			07/25/2034		3,835,616
	356,854	FNMA Series G-8 Class E		9.00			04/25/2021		404,093
	733,680	FNMA Series G92-30 Class Z		7.00			06/25/2022		802,533
	131,329	FNMA Whole Loan Series 1999-W6 Class A±		9.16			09/25/2028		132,747
	1,721,868	FNMA Whole Loan Series 2002-W4 Class A4		6.25			05/25/2042		1,896,934
	83,460	FNMA Whole Loan Series 2003-W11 Class A1±		3.11			06/25/2033		85,690
	5,155,105	FNMA Whole Loan Series 2003-W3 Class 1A4±		3.91			08/25/2042		5,391,112
	1,006,351	FNMA Whole Loan Series 2003-W5 Class A±		0.48			04/25/2033		957,074
	4,724,271	FNMA Whole Loan Series 2003-W6 Class 6A±		4.08			08/25/2042		4,949,943
	4,426,421	FNMA Whole Loan Series 2003-W6 Class PT4±		9.88			10/25/2042		5,140,614
	2,235,044	FNMA Whole Loan Series 2003-W8 Class PT1±		9.64			12/25/2042		2,544,457
	278,223	FNMA Whole Loan Series 2003-W9 Class A±		0.50			06/25/2033		264,216
	3,437,598	FNMA Whole Loan Series 2004-W15 Class 1A3		7.00			08/25/2044		3,913,490

									1,186,683,232


Government National Mortgage Association: 8.88%
	49,420,000	GNMA%%		4.50			12/20/2039		51,011,027
	220,174	GNMA #003446		6.50			09/20/2033		248,123
	18,457	GNMA #048283		14.00			02/15/2012		20,159
	24,828	GNMA #053980		14.00			06/15/2012		27,119
	2,747	GNMA #126600		13.00			11/15/2014		3,219
	1,609	GNMA #156899		8.50			07/15/2016		1,628
	8,084	GNMA #187603		9.00			12/15/2016		8,179
	2,858	GNMA #201		14.00			09/20/2014		2,888
	16,510	GNMA #258264		10.00			12/15/2018		16,792
	7,772	GNMA #285264		9.00			03/15/2020		9,119
	3,975	GNMA #293778		9.00			04/15/2021		4,690
	85,107	GNMA #316476		7.34			10/20/2021		96,877
	30,382	GNMA #319937		7.34			12/20/2021		34,584
	32,617	GNMA #326228		7.34			02/20/2022		37,223
	35,413	GNMA #326259		7.34			04/20/2022		40,413
	153,590	GNMA #332246		7.34			09/20/2022		175,276
	8,718	GNMA #338010		8.00			06/15/2023		10,177
	97,918	GNMA #338533		7.00			12/15/2022		111,493
	2,366	GNMA #345538		8.00			02/15/2024		2,769
	4,672	GNMA #353253		8.00			04/15/2023		4,727
	6,079	GNMA #371436		8.00			09/15/2024		7,114
	215	GNMA #372198		8.00			06/15/2025		252
	22,374	GNMA #372199		8.00			06/15/2025		26,236
	27,020	GNMA #407233		6.00			01/15/2013		29,432
	66,532	GNMA #411355		6.50			12/15/2025		75,569
	8,439	GNMA #423780		7.00			05/15/2026		9,723
	276	GNMA #424501		6.00			06/15/2011		279
	3,019	GNMA #434275		6.50			04/15/2029		3,431
	86,258	GNMA #456728		7.00			03/15/2028		99,555
	3,593	GNMA #460756		6.00			02/15/2013		3,914
	4,852	GNMA #470296		6.50			05/15/2029		5,514
	20,206,305	GNMA #4747		5.00			07/20/2040		21,509,357



52 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

GOVERNMENT SECURITIES FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Government National Mortgage Association (continued)
$	24,427	GNMA #501055		7.00	%		08/15/2031	$	28,246
	3,502	GNMA #52538		15.00			07/15/2012		3,570
	1,228	GNMA #533591		7.00			01/15/2031		1,420
	4,583	GNMA #533788		6.50			05/15/2031		5,209
	19,959	GNMA #544475		7.00			04/15/2031		23,079
	1,485	GNMA #548335		7.00			04/15/2031		1,717
	18,116	GNMA #570329		7.00			03/15/2032		20,914
	6,522	GNMA #578318		6.50			07/15/2032		7,412
	4,532	GNMA #589696		7.00			05/15/2032		5,232
	1,468,425	GNMA #605621		6.00			08/20/2034		1,620,252
	248,280	GNMA #780104		9.50			10/20/2019		287,098
	101,471	GNMA #780110		12.50			04/15/2019		106,727
	1,142,937	GNMA #780288		8.00			12/15/2023		1,362,098
	829,047	GNMA #780867		8.35			04/15/2020		956,834
	466,894	GNMA #780980		8.40			05/15/2020		547,930
	400,219	GNMA #8678±		3.00			08/20/2020		415,958
	229,255	GNMA #8714±		3.00			11/20/2020		238,195
	967	GNMA #95643		15.00			09/15/2012		978
	77,911,154	GNMA Series 2002-53 Class IO(c)		0.71			04/16/2042		398,266
	12,404,000	GNMA Series 2004-103 Class C		4.70			12/16/2027		12,924,134
	1,129,713	GNMA Series 2004-20 Class B		4.78			04/16/2034		1,172,131
	3,000,000	GNMA Series 2004-57 Class C±		5.08			08/16/2026		3,127,232
	153,826,166	GNMA Series 2005-23 Class IO±(c)		0.66			06/17/2045		4,326,669
	3,536,937	GNMA Series 2005-59 Class A		4.39			05/16/2023		3,570,431
	12,945,591	GNMA Series 2005-90 Class A		3.76			09/16/2028		13,367,128
	5,832,590	GNMA Series 2006-3 Class A		4.21			01/16/2028		5,943,225
	12,510,000	GNMA Series 2006-32 Class C±		5.52			11/16/2038		13,550,083
	103,606,759	GNMA Series 2006-32 Class XM±(c)		0.44			11/16/2045		2,111,112
	12,520,000	GNMA Series 2006-68 Class D±		5.31			12/16/2037		13,439,724
	255,671,010	GNMA Series 2008-22 Class XM±(c)		1.67			02/16/2050		10,975,445
	39,500,000	GNMA Series 2008-80 Class B		4.28			03/16/2033		41,771,708
	7,120,914	GNMA Series 2010-105 Class QF±		0.61			04/20/2039		7,120,755

									213,067,770


Small Business Administration: 0.01%
	692,217	SBA #4796093007(a)(c)		1.44			02/15/2018		22,012
	179,514	SBA #507511		0.63			03/25/2013		175,431
	1,840,973	SBA Series 1992- 6 Class A(a)(c)		1.51			10/15/2017		51,547

									248,990


Tennessee Valley Authority: 0.16%
	3,670,000	Tennessee Valley Authority		5.38			04/01/2056		3,902,289


Total Agency Securities (Cost $1,600,456,951)									1,620,833,050


Asset Backed Securities: 0.80%
	19,165,000	Chase Issuance Trust Series 2009-A3 Class A3		2.40			06/17/2013		19,276,347


Total Asset Backed Securities (Cost $19,165,000)									19,276,347


Collateralized Mortgage Obligations: 5.62%
	1,750,000	Bear Stearns Commercial Mortgage Securities Series 2007-T28 Class AAB		5.75			09/11/2042		1,902,501
	11,820,000	Commercial Mortgage Pass-Through Certificates Series 2004-LB4A Class A4		4.58			10/15/2037		11,990,650
	16,870,000	Commercial Mortgage Pass-Through Certificates Series 2006-C7 Class A4±		5.76			06/10/2046		18,525,701
	1,828,000	Credit Suisse First Boston Mortgage Pass-Through Certificates Series 2004-LFL2 Class J±††		1.22			11/15/2019		1,760,794
	1,900,000	Credit Suisse First Boston Mortgage Pass-Through Certificates Series 2004-TF2A Class H±††		0.97			11/15/2019		1,854,914



Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 53

GOVERNMENT SECURITIES FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Collateralized Mortgage Obligations (continued)
$	3,892,632	JPMorgan Mortgage Trust Series 2005-A3 Class 7CA1±		2.82	%		06/25/2035	$	3,452,091
	11,110,000	Lehman Brothers UBS Commercial Mortgage Trust Series 2005-C1 Class A3		4.55			02/15/2030		11,309,018
	691,955	Lehman Brothers UBS Commercial Mortgage Trust Series 2005-C5 Class A2		4.89			09/15/2030		701,510
	10,051,000	Lehman Brothers UBS Commercial Mortgage Trust Series 2006-C1 Class A4		5.16			02/15/2031		10,797,310
	13,210,000	Lehman Brothers UBS Commercial Mortgage Trust Series 2006-C4 Class A3		5.17			12/12/2049		14,036,851
	14,745,000	Morgan Stanley Capital I Series 2004-T15 Class A4		5.27			06/13/2041		15,743,468
	3,896,159	Nomura Asset Acceptance Corporation Series 2004-R2 Class A1††		6.50			10/25/2034		3,944,071
	10,575,000	Nomura Asset Securities Corporation Series 1998-D6 Class A2		7.27			03/15/2030		11,546,895
	23,365,000	TIAA Real Estate CDO Limited Series 2007-C4 Class A3±		6.05			08/15/2039		25,411,531
	636,903	Vendee Mortgage Trust Series 1995-1 Class 4±		8.79			02/15/2025		684,313
	873,817	Vendee Mortgage Trust Series 1995-2C Class 3A		8.79			06/15/2025		1,081,349

Total Collateralized Mortgage Obligations (Cost $129,354,829)									134,742,967


Corporate Bonds and Notes: 2.53%

Financials: 2.53%

Commercial Banks: 2.53%
	23,310,000	Bank Nederlandse Gemeenten††		2.50			01/11/2016		23,014,336
	13,235,000	Bank of Nova Scotia††		1.65			10/29/2015		12,649,775
	15,000,000	Financing Corporation Fico Series D-P^		3.69			09/26/2019		10,942,245
	14,125,000	Landwirtsch Rentenbank		2.50			02/15/2016		14,068,797

									60,675,153

Consumer Discretionary: 0.00%

Multiline Retail: 0.00%
	172	Sears Roebuck Acceptance		6.70			04/15/2012		177


Total Corporate Bonds and Notes (Cost $60,705,580)									60,675,330


Yankee Corporate Bonds and Notes: 1.72%

Financials: 1.72%

Commercial Banks: 1.72%
	10,135,000	Kommunalbanken AS††		2.38			01/19/2016		10,065,038
	17,090,000	Kommunalbanken AS††		2.75			05/05/2015		17,452,855
	13,660,000	Westpac Banking Corporation††		1.90			12/14/2012		13,842,866

Total Yankee Corporate Bonds and Notes (Cost $40,740,251)									41,360,759


Municipal Bonds and Notes: 0.36%

Arkansas: 0.02%
	470,581	Arkansas Development Finance Authority (Housing Revenue, GNMA Insured)		9.75			11/15/2014		498,999


Texas: 0.34%
	5,405,000	Retama Texas Development Corporation (Miscellaneous Revenue)		5.85			12/15/2020		8,093,231


Total Municipal Bonds and Notes (Cost $7,846,820)									8,592,230


US Treasury Securities: 19.97%

US Treasury Bonds: 5.58%
	66,675,000	US Treasury Bond«		2.00			01/31/2016		66,357,227
	41,345,000	US Treasury Bond«		4.63			02/15/2040		42,288,162
	22,065,000	US Treasury Bond		5.38			02/15/2031		25,360,959

									134,006,348



54 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

GOVERNMENT SECURITIES FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
US Treasury Notes: 14.39%
$	54,825,000	US Treasury Note«		1.38	%		11/30/2015	$	53,197,355
	46,310,000	US Treasury Note		1.88			10/31/2017		43,871,501
	42,555,000	US Treasury Note(o)		2.63			02/29/2016		43,549,042
	37,620,000	US Treasury Note«		2.63			08/15/2020		35,362,800
	18,900,000	US Treasury Note«		2.63			11/15/2020		17,683,313
	30,350,000	US Treasury Note		2.75			10/31/2013		31,751,320
	57,410,000	US Treasury Note(o)		2.75			02/15/2019		56,279,712
	59,500,000	US Treasury Note(o)		3.88			05/15/2018		63,553,453

									345,248,496


Total US Treasury Securities (Cost $482,404,906)									479,254,844


Yankee Government Bonds: 0.51%
	11,925,000	Province of British Columbia		2.85			06/15/2015		12,272,518


Total Yankee Government Bonds (Cost $11,918,441)									12,272,518


Short-Term Investments: 17.30%

Corporate Bonds and Notes: 2.97%
	5,642,984	Gryphon Funding Limited(a)(v)(i)		0.00			08/05/2011		2,353,124
	58,500,000	International Finance Corporation^		0.11			03/17/2011		58,496,880
	17,632,030	VFNC Corporation±(a)††(v)(i)		0.26			09/29/2011		10,402,898

									71,252,902


Agency Securities: 2.50%
	60,000,000	FHLB^		0.09			03/11/2011		59,998,333


Shares			Yield
Investment Companies: 9.78%
	122,747,277	Wells Fargo Advantage Government Money Market Fund(o)(l)(u)		0.01	122,747,277
	111,848,016	Wells Fargo Securities Lending Cash Investments, LLC(v)(l)(u)		0.25	111,848,016

					234,595,293


Principal					Interest Rate
US Treasury Bills: 2.05%
$	47,500,000	US Treasury Bill^				0.08	03/10/2011		47,498,937
	1,700,000	US Treasury Bill^#				0.12	03/24/2011		1,699,869

									49,198,806


Total Short-Term Investments (Cost $409,870,476)									415,045,334


Total Investments in Securities (Cost $2,762,463,254)*			116.36	%					2,792,053,379
Other Assets and Liabilities, Net			(16.36	)					(392,468,646	)


Total Net Assets			100.00	%				$	2,399,584,733



Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 55

GOVERNMENT SECURITIES FUND


^		Zero coupon security. Rate represents yield to maturity.

±		Variable rate investments.

%%		Securities issued on a when-issued (TBA) and/or delayed delivery basis.

(a)		Security is fair valued by the Management Valuation Team, and in certain instances by the Board of Trustees, in accordance with procedures approved by the Board of Trustees.

(c)		Interest-only securities entitle holders to receive only the interest payments on the underlying mortgages. The principal amount shown is the notional amount of the underlying mortgages. Interest rate disclosed represents the coupon rate.

††		Securities that may be resold to “qualified institutional buyers” under rule 144A or securities offered pursuant to section 4(2) of the Securities Act of 1933, as amended.

«		All or a portion of this security is on loan.

(o)		Security pledged as collateral for when-issued (TBA) and/or delayed delivery basis.

(v)		Security represents investment of cash collateral received from securities on loan.

(i)		Illiquid security.

(l)		Investment in an affiliate.

(u)		Rate shown is the 7-day annualized yield at period end.

#		All or a portion of this security is segregated as collateral for futures transactions.

*		Cost for federal income tax purposes is $2,764,872,557 and net unrealized appreciation (depreciation) consists of:


Gross unrealized appreciation	$	58,716,999
Gross unrealized depreciation		(31,536,177	)

Net unrealized appreciation	$	27,180,822

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



56 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

HIGH INCOME FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Corporate Bonds and Notes: 87.16%

Consumer Discretionary: 20.98%

Auto Components: 2.40%
$	3,500,000	Cooper Standard Automotive		8.50	%		05/01/2018	$	3,780,000
	5,000,000	Lear Corporation		8.13			03/15/2020		5,600,000
	3,000,000	Tenneco Automotive Incorporated		7.75			08/15/2018		3,228,750
	2,030,000	TRW Automotive Incorporated††		7.25			03/15/2017		2,243,150
	2,500,000	TRW Automotive Incorporated††		8.88			12/01/2017		2,828,125

									17,680,025


Automobiles: 0.44%
	3,000,000	Ford Motor Company		7.45			07/16/2031		3,265,341


Diversified Consumer Services: 0.88%
	200,000	Service Corporation International		7.50			04/01/2027		195,500
	1,100,000	Service Corporation International		7.63			10/01/2018		1,196,250
	4,790,000	Service Corporation International Series WI		7.00			06/15/2017		5,101,350

									6,493,100


Hotels, Restaurants & Leisure: 4.99%
	5,250,000	CKE Restaurants Incorporated		11.38			07/15/2018		5,893,125
	10	Eldorado Casino Shreveport¥		10.00			08/01/2012		10
	3,100,000	MGM Mirage Incorporated††		9.00			03/15/2020		3,386,750
	500,000	Palace Entertainment Corporation††		8.88			04/15/2017		510,000
	3,750,000	Penn National Gaming Incorporated		8.75			08/15/2019		4,181,250
	4,900,000	Seminole Tribe of Florida††		7.75			10/01/2017		5,200,125
	4,050,000	Shingle Springs Tribal Gaming Authority††		9.38			06/15/2015		2,754,000
	6,260,000	Tunica-Biloxi Gaming Authority††		9.00			11/15/2015		6,244,350
	3,150,000	Turning Stone Casino Resort Enterprise††		9.13			09/15/2014		3,236,625
	4,770,000	Yonkers Racing Corporation††		11.38			07/15/2016		5,354,325

									36,760,560


Media: 9.36%
	5,000,000	CCO Holdings LLC		7.00			01/15/2019		5,087,500
	2,000,000	Cequel Communications Holdings††		8.63			11/15/2017		2,115,000
	5,500,000	Cinemark USA Incorporated		8.63			06/15/2019		5,995,000
	2,350,000	Citadel Broadcasting Corporation††		7.75			12/15/2018		2,520,375
	1,000,000	Clear Channel Communications Incorporated††		9.00			03/01/2021		1,016,250
	4,550,000	Clear Channel Communications Incorporated		9.25			12/15/2017		5,061,875
	2,500,000	Clear Channel Communications Incorporated		10.75			08/01/2016		2,437,500
	3,500,000	CSC Holdings LLC		8.63			02/15/2019		4,033,750
	6,500,000	DISH DBS Corporation		7.88			09/01/2019		7,044,375
	1,000,000	Entravision Communication Incorporated		8.75			08/01/2017		1,080,000
	4,000,000	Insight Communications††		9.38			07/15/2018		4,410,000
	4,710,000	Lamar Media Corporation Series C		6.63			08/15/2015		4,815,975
	5,000,000	Regal Cinemas Corporation		8.63			07/15/2019		5,362,500
	500,000	Regal Entertainment Group		9.13			08/15/2018		535,000
	5,000,000	Sinclair Television Group††		9.25			11/01/2017		5,650,000
	1,000,000	Sirius XM Radio Incorporated††		7.63			11/01/2018		1,060,000
	3,500,000	Sirius Xm Radio Incorporated††		8.75			04/01/2015		3,880,625
	3,000,000	Tl Acquisitions Incorporated††		10.50			01/15/2015		3,112,500
	3,500,000	Visant Corporation		10.00			10/01/2017		3,788,750

									69,006,975



Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 57

HIGH INCOME FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Multiline Retail: 0.91%
$	3,100,000	Macy’s Retail Holdings Incorporated		5.90	%		12/01/2016	$	3,309,250
	3,000,000	Macy’s Retail Holdings Incorporated		6.65			07/15/2024		3,015,000
	300,000	Macy’s Retail Holdings Incorporated		7.45			07/15/2017		333,750

									6,658,000


Specialty Retail: 1.31%
	4,000,000	Limited Brands Incorporated		7.00			05/01/2020		4,240,000
	5,000,000	Toys R Us Property Company I LLC		8.50			12/01/2017		5,437,500

									9,677,500


Textiles, Apparel & Luxury Goods: 0.69%
	3,000,000	Hanesbrands Incorporated		6.38			12/15/2020		2,893,500
	2,000,000	Hanesbrands Incorporated		8.00			12/15/2016		2,165,000

									5,058,500


Consumer Staples: 6.84%

Beverages: 0.83%
	5,700,000	Constellation Brands Incorporated		7.25			09/01/2016		6,127,500


Food & Staples Retailing: 2.62%
	1,750,000	Albertsons Incorporated		7.25			05/01/2013		1,767,500
	4,000,000	Bumble Bee Acquisiton Incorporated††		9.00			12/15/2017		4,320,000
	5,225,000	Clarke American Incorporated		9.50			05/15/2015		5,133,563
	3,000,000	Dean Foods Company††		9.75			12/15/2018		3,112,500
	5,000,000	SUPERVALU Incorporated«		8.00			05/01/2016		4,975,000

									19,308,563


Food Products: 2.53%
	6,000,000	Dean Foods Company		7.00			06/01/2016		5,700,000
	3,270,000	Pinnacle Foods Group LLC		9.25			04/01/2015		3,408,975
	4,000,000	Pinnacle Foods Group LLC††		10.63			11/15/2015		4,190,000
	1,000,000	Reynolds Group Holdings††		8.25			02/15/2021		1,002,500
	4,000,000	TreeHouse Foods Incorporated		7.75			03/01/2018		4,330,000

									18,631,475


Household Products: 0.14%
	1,000,000	Central Garden & Pet Company		8.25			03/01/2018		1,051,250


Tobacco: 0.72%
	2,250,000	Reynolds American Incorporated††		7.13			04/15/2019		2,306,250
	2,500,000	Reynolds American Incorporated††		9.00			04/15/2019		2,606,250
	400,000	Reynolds Group Holdings††		6.88			02/15/2021		401,000

									5,313,500


Energy: 12.21%

Oil, Gas & Consumable Fuels: 12.21%
	5,000,000	Bill Barrett Corporation		9.88			07/15/2016		5,600,000
	4,000,000	Breitburn Energy Partners††		8.63			10/15/2020		4,205,000
	3,060,000	Chesapeake Energy Corporation		9.50			02/15/2015		3,794,400
	4,000,000	Citgo Petroleum Corporation††		11.50			07/01/2017		4,600,000
	1,575,000	Coffeyville Resources††		9.00			04/01/2015		1,716,750
	1,500,000	Coffeyville Resources††		10.88			04/01/2017		1,698,750
	5,500,000	Comstock Resources Incorporated		8.38			10/15/2017		5,726,875
	4,000,000	Consol Energy Corporation††		8.25			04/01/2020		4,410,000



58 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

HIGH INCOME FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Oil, Gas & Consumable Fuels (continued)
$	5,000,000	Energy Transfer Equity		7.50	%		10/15/2020	$	5,418,750
	3,000,000	Energy XXI Limited††		9.25			12/15/2017		3,225,000
	3,145,000	Foundation PA Coal Company		7.25			08/01/2014		3,207,900
	3,400,000	Hilcorp Energy Company††		7.75			11/01/2015		3,536,000
	3,250,000	Holly Corporation		9.88			06/15/2017		3,615,625
	3,500,000	International Coal Group Incorporated		9.13			04/01/2018		3,867,500
	500,000	Laredo Petroleum Incorporated††		9.50			02/15/2019		523,750
	4,950,000	Newfield Exploration Company		6.88			02/01/2020		5,259,375
	4,200,000	Penn Virginia Corporation		10.38			06/15/2016		4,714,500
	4,600,000	Plains Exploration & Production Company		8.63			10/15/2019		5,140,500
	3,500,000	Quicksilver Resources Incorporated		11.75			01/01/2016		4,086,250
	6,000,000	Regency Energy Partners		6.88			12/01/2018		6,300,000
	3,250,000	Suburban Propane Partners LP		7.38			03/15/2020		3,477,500
	4,000,000	Targa Resources Partners Incorporated††		6.88			02/01/2021		3,960,000
	2,000,000	White Pine Hydro Portfolio††(i)		7.26			07/20/2015		1,902,240

									89,986,665


Financials: 9.36%

Commercial Banks: 1.59%
	3,600,000	CIT Group Incorporated		7.00			05/01/2016		3,631,500
	8,000,000	CIT Group Incorporated		7.00			05/01/2017		8,060,000

									11,691,500


Consumer Finance: 5.40%
	3,500,000	Clearwire Communications Finance Corporation††		12.00			12/01/2015		3,815,000
	5,200,000	Discover Financial Services«		10.25			07/15/2019		6,736,751
	2,500,000	Ford Motor Credit Company LLC		6.63			08/15/2017		2,658,945
	1,840,000	Ford Motor Credit Company LLC		8.00			12/15/2016		2,084,102
	2,000,000	Ford Motor Credit Company LLC		8.13			01/15/2020		2,282,822
	4,200,000	GMAC LLC		6.75			12/01/2014		4,494,000
	3,500,000	GMAC LLC		8.00			11/01/2031		4,007,500
	1,365,000	Nielsen Finance LLC Company		11.50			05/01/2016		1,607,288
	1,000,000	Nielsen Finance LLC Company		11.63			02/01/2014		1,175,000
	500,000	Provident Funding Associates LLC††		10.13			02/15/2019		515,000
	3,350,000	Regions Bank		7.50			05/15/2018		3,551,000
	4,000,000	SLM Corporation		8.00			03/25/2020		4,245,000
	2,600,000	Sprint Capital Corporation		6.90			05/01/2019		2,622,750

									39,795,158


Diversified Financial Services: 2.37%
	4,000,000	ABI Escrow Corporation††		10.25			10/15/2018		4,480,000
	2,000,000	Ally Financial Incorporated††		6.25			12/01/2017		2,087,500
	3,000,000	Ally Financial Incorporated		8.00			03/15/2020		3,378,750
	2,430,000	Axcan Intermediate Holdings Incorporated		9.25			03/01/2015		2,600,100
	1,000,000	Giant Funding Corporation††		8.25			02/01/2018		1,027,500
	3,500,000	International Lease Finance Corporation		8.25			12/15/2020		3,893,750

									17,467,600


Health Care: 6.56%

Health Care Equipment & Supplies: 1.71%
	4,000,000	Accellent Incorporated		8.38			02/01/2017		4,240,000
	4,000,000	DJO Finance LLC††		9.75			10/15/2017		4,230,000
	4,000,000	Hanger Orthopedic Group		7.13			11/15/2018		4,110,000

									12,580,000



Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 59

HIGH INCOME FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Health Care Providers & Services: 3.65%
$	500,000	Aviv Healthcare Properties LP††		7.75	%		02/15/2019	$	521,250
	1,000,000	Convatec Healthcare Incorporated††		10.50			12/15/2018		1,067,500
	4,000,000	Davita Incorporated		6.63			11/01/2020		4,055,000
	4,550,000	HCA Incorporated		7.25			09/15/2020		4,908,313
	2,000,000	HCA Incorporated		7.88			02/15/2020		2,197,500
	1,000,000	HCA Incorporated		8.50			04/15/2019		1,120,000
	4,200,000	HealthSouth Corporation		8.13			02/15/2020		4,557,000

	3,750,000	Lifepoint Hospitals Incorporated††		6.63			10/01/2020		3,839,063
	4,500,000	Vanguard Health Holdings Incorporated LLC		8.00			02/01/2018		4,623,750

									26,889,376


Life Sciences Tools & Services: 0.60%
	4,000,000	Bio-Rad Laboratories Incorporated		8.00			09/15/2016		4,400,000


Pharmaceuticals: 0.60%
	4,000,000	Mylan Incorporated††		7.88			07/15/2020		4,470,000


Industrials: 10.34%

Aerospace & Defense: 1.99%
	3,750,000	Esterline Technologies Corporation		7.00			08/01/2020		3,928,124
	4,500,000	Geoeye Incorporated		9.63			10/01/2015		5,073,750
	872,000	Hexcel Corporation		6.75			02/01/2015		894,890
	4,500,000	Spirit AeroSystems Holdings Incorporated		7.50			10/01/2017		4,781,250

									14,678,014


Commercial Services & Supplies: 2.72%
	1,000,000	Casella Waste Systems Incorporated††		7.75			02/15/2019		1,025,000
	3,500,000	Casella Waste Systems Incorporated		11.00			07/15/2014		3,972,500
	2,600,000	FTI Consulting Incorporated		7.75			10/01/2016		2,726,750
	1,000,000	Interface Incorporated††		7.63			12/01/2018		1,062,500
	4,500,000	Iron Mountain Incorporated		8.38			08/15/2021		4,978,125
	500,000	Uncle Acquisition 2010 Corporation††		8.63			02/15/2019		532,500
	5,500,000	Yankee Acquisition Corporation		8.50			02/15/2015		5,754,375

									20,051,750


Electrical Equipment: 0.68%
	2,730,000	Belden CDT Incorporated		7.00			03/15/2017		2,770,950
	2,000,000	Belden CDT Incorporated		9.25			06/15/2019		2,215,000

									4,985,950


Machinery: 2.46%
	3,000,000	ACI Corporation††		10.63			02/15/2016		3,015,000
	1,355,000	Briggs & Stratton Corporation		6.88			12/15/2020		1,429,525
	1,000,000	Dana Holding Corporation		6.75			02/15/2021		1,012,500
	4,000,000	Great Lakes Dredge & Dock Company††		7.38			02/01/2019		4,090,000
	4,000,000	Manitowoc Company Incorporated		8.50			11/01/2020		4,350,000
	4,000,000	RSC Equipment Rental Incorporated††		8.25			02/01/2021		4,230,000

									18,127,025


Professional Services: 1.14%
	3,000,000	Checkout Holdings Corporation††		9.61			11/15/2015		1,935,000
	4,300,000	FTI Consulting Incorporated††		6.75			10/01/2020		4,300,000
	2,000,000	Swift Services Holdings Incorporated††		10.00			11/15/2018		2,190,000

									8,425,000



60 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

HIGH INCOME FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Trading Companies & Distributors: 1.35%
$	3,000,000	Aircastle Limited		9.75	%		08/01/2018	$	3,345,000
	6,250,000	United Rentals North America Incorporated		8.38			09/15/2020		6,617,188

									9,962,188


Information Technology: 2.20%

IT Services: 0.51%
	3,500,000	TW Telecommunications Holdings Incorporated		8.00			03/01/2018		3,753,750


Semiconductors & Semiconductor Equipment: 1.69%
	1,000,000	Advanced Micro Devices Incorporated		7.75			08/01/2020		1,045,000
	4,800,000	Freescale Semiconductor Incorporated††		10.75			08/01/2020		5,544,000
	5,175,000	Magnachip Semiconductor Limited		10.50			04/15/2018		5,847,750

									12,436,750

Materials: 8.02%

Chemicals: 2.56%
	1,000,000	Exide Technologies Incorporated††		8.63			02/01/2018		1,066,250
	4,000,000	Ferro Corporation		7.88			08/15/2018		4,260,000
	6,000,000	Nalco Company		8.25			05/15/2017		6,562,500
	2,250,000	Polyone Corporation		7.38			09/15/2020		2,385,000
	4,000,000	Rhodia SA††		6.88			09/15/2020		4,095,000
	500,000	TPC Group LLC††		8.25			10/01/2017		531,875

									18,900,625

Containers & Packaging: 1.51%
	4,000,000	Bway Holding Company††		10.00			06/15/2018		4,440,000
	5,750,000	Graham Packaging Company Incorporated		8.25			01/01/2017		6,152,500
	500,000	Graham Packaging Company Incorporated		8.25			10/01/2018		538,750

									11,131,250


Metals & Mining: 1.61%
	1,000,000	Atkore International Incorporated††		9.88			01/01/2018		1,088,750
	3,000,000	FMG Resources Limited††		6.88			02/01/2018		3,075,000
	3,600,000	FMG Resources Limited††		7.00			11/01/2015		3,735,000
	3,745,000	Steel Dynamics Incorporated		7.75			04/15/2016		3,979,063

									11,877,813


Paper & Forest Products: 2.34%
	2,500,000	Appleton Papers Incorporated††		10.50			06/15/2015		2,587,500
	1,634,000	Appleton Papers Incorporated		11.25			12/15/2015		1,535,960
	4,750,000	Boise Paper Holdings LLC		9.00			11/01/2017		5,296,250
	4,250,000	Georgia Pacific LLC††		5.40			11/01/2020		4,227,562
	2,485,000	P.H. Glatfelter Company		7.13			05/01/2016		2,540,913
	1,000,000	Polymer Group Incorporated††		7.75			02/01/2019		1,041,250

									17,229,435


Telecommunication Services: 5.72%

Diversified Telecommunication Services: 3.62%
	1,500,000	Cincinnati Bell Incorporated		8.38			10/15/2020		1,481,250
	4,000,000	Cincinnati Bell Incorporated		8.75			03/15/2018		3,835,000
	4,000,000	Frontier Communications Corporation		8.25			04/15/2017		4,420,000
	3,000,000	Level 3 Communications††		11.88			02/01/2019		2,947,500
	3,000,000	PAETEC Holding Corporation		9.50			07/15/2015		3,161,250



Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 61

HIGH INCOME FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Diversified Telecommunication Services (continued)
$	2,000,000	West Corporation††		7.88	%		01/15/2019	$	2,052,500
	2,500,000	West Corporation††		8.63			10/01/2018		2,650,000
	1,750,000	Windstream Corporation		7.75			10/15/2020		1,813,438
	4,115,000	Windstream Corporation		8.63			08/01/2016		4,351,613

									26,712,551


Wireless Telecommunication Services: 2.10%
	3,000,000	Cricket Communications Incorporated		7.75			10/15/2020		2,872,500
	5,025,000	Intelsat Jackson Holding Corporation††		8.50			11/01/2019		5,514,938
	4,625,000	Nextel Communications Incorporated Series D		7.38			08/01/2015		4,636,563
	2,425,000	Sprint Nextel Corporation		6.00			12/01/2016		2,418,938

									15,442,939


Utilities: 4.93%

Electric Utilities: 1.81%
	4,000,000	Energy Future Holdings††		10.25			01/15/2020		4,165,408
	3,450,000	IPALCO Enterprises Incorporated††		7.25			04/01/2016		3,743,250
	5,200,000	Mirant Americas Generation LLC		8.50			10/01/2021		5,486,000

									13,394,658


Gas Utilities: 0.56%
	4,000,000	AmeriGas Partners LP		6.50			05/20/2021		4,120,000


Independent Power Producers & Energy Traders: 2.56%
	4,000,000	Calpine Corporation††		7.50			02/15/2021		4,090,000
	5,000,000	Calpine Corporation††		7.88			01/15/2023		5,137,500
	4,195,000	Dynegy Holdings Incorporated		8.38			05/01/2016		3,366,488
	4,000,000	NRG Energy Incorporated		8.50			06/15/2019		4,260,000
	2,000,000	RRI Energy Incorporated		7.88			06/15/2017		2,005,000
									18,858,988


Total Corporate Bonds and Notes (Cost $604,424,410)									642,401,274


Yankee Corporate Bonds and Notes: 3.96%

Consumer Discretionary: 0.81%

Media: 0.81%
	5,200,000	Virgin Media Finance plc		9.50			08/15/2016		5,999,500


Financials: 1.78%

Capital Markets: 0.43%
	3,000,000	FMC Finance III SA		6.88			07/15/2017		3,161,250


Consumer Finance: 1.35%
	4,500,000	National Money Mart Company		10.38			12/15/2016		5,006,250
	4,207,214	Wind Acquisition Finance SA††		12.25			07/15/2017		4,922,440

									9,928,690


Materials: 0.48%

Chemicals: 0.48%
	3,490,000	Ineos Group Holdings plc††		8.50			02/15/2016		3,524,900



62 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

HIGH INCOME FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Telecommunication Services: 0.89%

Wireless Telecommunication Services: 0.89%
$	5,916,796	Intelsat Limited		11.50	%		02/04/2017	$	6,567,644


Total Yankee Corporate Bonds and Notes (Cost $26,576,634)									29,181,984


Municipal Bonds and Notes: 1.03%

Connecticut: 0.56%
	5,090,000	Mashantucket Western Pequot Tribe Series A§		6.91			09/01/2012		4,122,849


Texas: 0.47%
	3,750,000	Sabine River Authority Texas PCR TXU Electric Company Project Series B±§		5.75			05/01/2030		3,487,500


Total Municipal Bonds and Notes (Cost $7,695,001)									7,610,349


Term Loans: 2.71%
	4,000,000	American General Finance Corporation		7.25			04/21/2015		4,034,000
	2,962,500	Gentiva Health Services Incorporated		6.75			08/15/2016		3,006,938
	4,000,000	Goodman Global Holdings Incorporated		9.00			10/30/2017		4,130,720
	450,000	Goodyear Tire & Rubber Company		1.96			04/30/2014		442,688
	7,000,000	Harrahs Entertainment Corporation<		NA			01/28/2015		6,487,670
	251,131	HCA Incorporated		2.55			11/18/2013		250,144
	1,944,086	TXU Texas Competitive Electric Holding Company LLC		3.79			10/10/2014		1,635,462

Total Term Loans (Cost $19,932,239)									19,987,622


Short-Term Investments: 5.28%

Corporate Bonds & Notes: 0.21%
	1,225,771	Gryphon Funding Limited(v)(i)(a)		0.00			08/05/2011		511,147
	1,668,825	VFNC Corporation(v)††(i)(a)±		0.26			09/29/2011		984,607
									1,495,754


Shares					Yield
Investment Companies: 5.07%
	32,250,785	Wells Fargo Advantage Cash Investment Money Market Fund##(l)(u)				0.12		32,250,785
	5,130,958	Wells Fargo Securities Lending Cash Investments, LLC(v)(l)(u)				0.25		5,130,958

								37,381,743


Total Short-Term Investments (Cost $38,263,935)								38,877,497


Total Investments in Securities (Cost $696,892,219)*			100.14	%				738,058,726

Other Assets and Liabilities, Net			(0.14	)				(1,029,054	)


Total Net Assets			100.00	%			$	737,029,672



Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 63

HIGH INCOME FUND


<		All or portion of the position represents an unfunded loan commitment.

##		All or a portion of this security has been segregated for when-issued, delayed delivery securities and/or unfunded loans.

(v)		Security represents investment of cash collateral received from securities on loan.

(l)		Investment in an affiliate.

(u)		Rate shown is the 7-day annualized yield at period end.

††		Securities that may be resold to “qualified institutional buyers” under Rule 144A or securities offered pursuant to Section 4(2) of the Securities Act of 1933, as amended.

(i)		Illiquid security.

«		All or a portion of this security is on loan.

(a)		Security is fair valued by the Management Valuation Team, and in certain instances by the Board of Trustees, in accordance with procedures approved by the Board of Trustees.

¥		Payment-in-kind (PIK) securities are securities in which the issuer may make interest or dividend payments in cash or additional securities. These additional securities generally have the same terms as the original holdings.

±		Variable rate investments.

§		These securities are subject to a demand feature which reduces the effective maturity.

*		Cost for federal income tax purposes is $696,892,219 and net unrealized appreciation (depreciation) consists of:


Gross unrealized appreciation	$	44,431,622
Gross unrealized depreciation		(3,265,115	)

Net unrealized appreciation	$	41,166,507

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


64 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

HIGH YIELD BOND FUND


Principal			Security Name	Interest Rate			Maturity Date		Value
Corporate Bonds and Notes: 73.75%

Consumer Discretionary: 15.41%

Auto Components: 1.61%
$	1,935,000	��	Cooper Tire & Rubber Company		7.63	%		03/15/2027	$	1,867,275
	450,000		Cooper Tire & Rubber Company		8.00			12/15/2019		477,000
	1,875,000		Goodyear Tire & Rubber Company^		1.98			04/30/2014		1,844,531
	100,000		Goodyear Tire & Rubber Company		8.25			08/15/2020		107,500
	2,950,000		Goodyear Tire & Rubber Company		10.50			05/15/2016		3,363,000

										7,659,306


Diversified Consumer Services: 2.44%
	1,715,000		Carriage Services Incorporated		7.88			01/15/2015		1,740,725
	4,000,000		Service Corporation International		7.00			06/15/2017		4,260,000
	515,000		Service Corporation International		7.00			05/15/2019		531,738
	4,080,000		Service Corporation International		7.50			04/01/2027		3,988,200
	450,000		Service Corporation International		7.63			10/01/2018		489,375
	525,000		Service Corporation International		8.00			11/15/2021		574,875

										11,584,913


Hotels, Restaurants & Leisure: 2.88%
	1,100,000		Ameristar Casinos Incorporated		9.25			06/01/2014		1,182,500
	600,000		Blue Merger Sub Incorporated††		7.63			02/15/2019		606,000
	175,000		Citycenter Holdings LLC††		7.63			01/15/2016		182,438
	775,000		Citycenter Holdings LLC††		11.50			01/15/2017		809,875
	575,000		DineEquity Incorporated††		9.50			10/30/2018		622,438
	3,550,000		Greektown Superholdings Incorporated		13.00			07/01/2015		4,029,250
	2,000,000		Greektown Superholdings Incorporated		13.00			07/01/2015		2,270,000
	2,150,000		NAI Entertainment Holdings LLC††		8.25			12/15/2017		2,311,250
	225,000		Speedway Motorsports Incorporated††		6.75			02/01/2019		228,375
	1,311,000		Yonkers Racing Corporation††		11.38			07/15/2016		1,471,598

										13,713,724


Media: 7.71%
	1,300,000		Cablevision System Corporation		8.63			09/15/2017		1,456,000
	7,159,383		CCH II Capital Corporation		13.50			11/30/2016		8,671,803
	560,000		CCO Holdings LLC		8.13			04/30/2020		604,100
	935,000		Charter Communication OPT LLC Capital††		8.00			04/30/2012		984,088
	3,200,000		Charter Communications Incorporated††		10.88			09/15/2014		3,596,000
	3,350,000		Cinemark USA Incorporated		8.63			06/15/2019		3,651,500
	825,000		CSC Holdings LLC		8.50			04/15/2014		924,000
	1,070,000		DISH DBS Corporation		7.88			09/01/2019		1,159,613
	1,175,000		EchoStar DBS Corporation		6.63			10/01/2014		1,245,500
	2,075,000		EchoStar DBS Corporation		7.75			05/31/2015		2,266,938
	2,600,000		Gray Television		10.50			06/29/2015		2,762,500
	2,545,000		Lamar Media Corporation		9.75			04/01/2014		2,958,563
	275,000		LIN Television Corporation		8.38			04/15/2018		299,063
	4,275,000		Regal Cinemas Corporation		8.63			07/15/2019		4,584,938
	605,000		Salem Communications		9.63			12/15/2016		663,988
	720,000		Sirius XM Radio Incorporated††		13.00			08/01/2013		858,600
	1,140,000		Young Broadcasting Incorporated^^(i)		8.75			01/15/2014		11
	860,000		Young Broadcasting Incorporated^^(i)		10.00			12/31/2049		9

										36,687,214


Multiline Retail: 0.13%
	610,000		Saks Incorporated		9.88			10/01/2011		634,400



Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 65

HIGH YIELD BOND FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Specialty Retail: 0.64%
$	400,000	Rent-A-Center Incorporated††		6.63	%		11/15/2020	$	395,000
	500,000	Toys R Us Property Company I LLC		8.50			12/01/2017		543,750
	1,825,000	Toys R Us Property Company I LLC		10.75			07/15/2017		2,085,063

									3,023,813


Consumer Staples: 0.58%

Food Products: 0.58%
	750,000	B&G Foods Incorporated		7.63			01/15/2018		800,625
	125,000	Darling International Incorporated††		8.50			12/15/2018		134,844
	1,495,000	Dole Food Company Incorporated		13.88			03/15/2014		1,829,506

									2,764,975


Energy: 11.01%

Energy Equipment & Services: 1.84%
	965,000	Bristow Group Incorporated		7.50			09/15/2017		1,015,663
	1,565,000	Gulfmark Offshore Incorporated		7.75			07/15/2014		1,588,475
	2,300,000	Hornbeck Offshore Services Incorporated Series B		6.13			12/01/2014		2,305,750
	935,000	Hornbeck Offshore Services Incorporated Series B		8.00			09/01/2017		959,544
	2,750,000	PHI Incorporated††		8.63			10/15/2018		2,880,625

									8,750,057


Oil, Gas & Consumable Fuels: 9.17%
	1,820,000	Arch Coal Incorporated		8.75			08/01/2016		2,031,544
	2,025,000	Coffeyville Resources Refining & Marketing LLC††		9.00			04/01/2015		2,207,250
	845,000	Consol Energy††		8.25			04/01/2020		931,613
	350,000	Denbury Resources Incorporated		6.38			08/15/2021		353,500
	225,000	Denbury Resources Incorporated		9.75			03/01/2016		255,375
	915,000	El Paso Corporation††		6.50			09/15/2020		974,197
	2,000,000	El Paso Corporation		7.00			06/15/2017		2,234,438
	760,000	El Paso Corporation		7.42			02/15/2037		753,047
	850,000	El Paso Corporation		8.25			02/15/2016		960,411
	4,875,000	El Paso Natural Gas Corporation		7.25			06/01/2018		5,514,020
	3,150,000	Energy Transfer Equity		7.50			10/15/2020		3,413,813
	625,000	Ferrellgas Partners LP††		6.50			05/01/2021		609,375
	1,420,000	Ferrellgas Partners LP		9.13			10/01/2017		1,569,100
	1,040,000	Forest Oil Corporation		7.25			06/15/2019		1,076,400
	560,000	Forest Oil Corporation		8.50			02/15/2014		623,000
	1,870,000	Holly Corporation		9.88			06/15/2017		2,080,375
	575,000	Inergy LP††		6.88			08/01/2021		587,938
	3,560,000	Peabody Energy Corporation		7.88			11/01/2026		3,987,200
	250,000	Regency Energy Partners		6.88			12/01/2018		262,500
	2,250,000	Sabine Pass LNG LP		7.25			11/30/2013		2,283,750
	5,650,000	Sabine Pass LNG LP		7.50			11/30/2016		5,720,625
	2,550,000	Suburban Propane Partners LP		7.38			03/15/2020		2,728,500
	1,250,000	Susser Holdings LLC		8.50			05/15/2016		1,357,813
	1,090,000	Tesoro Corporation		7.50			07/17/2012		1,122,700

									43,638,484


Financials: 16.43%

Consumer Finance: 9.53%
	300,000	American General Finance Corporation		5.40			12/01/2015		271,500
	925,000	American General Finance Corporation		5.75			09/15/2016		819,781
	4,850,000	American General Finance Corporation		6.90			12/15/2017		4,352,875



66 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

HIGH YIELD BOND FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Consumer Finance (continued)
$	2,700,000	Calpine Construction Finance Corporation††		8.00	%		06/01/2016	$	2,929,500
	6,765,929	CIT Group Incorporated		7.00			05/01/2013		6,901,248
	1,080,000	CIT Group Incorporated		7.00			05/01/2014		1,100,925
	3,000,000	CIT Group Incorporated		7.00			05/01/2016		3,026,250
	900,000	Ford Motor Credit Company LLC		6.63			08/15/2017		957,220
	3,320,000	Ford Motor Credit Company LLC		9.88			08/10/2011		3,429,613
	1,362,000	GMAC LLC		6.75			12/01/2014		1,457,340
	55,000	GMAC LLC		6.88			09/15/2011		56,238
	1,280,000	GMAC LLC		6.88			08/28/2012		1,356,800
	3,430,000	GMAC LLC		7.50			12/31/2013		3,738,700
	350,325	Homer City Funding, LLC		8.73			10/01/2026		320,547
	1,755,000	International Lease Finance Corporation		5.30			05/01/2012		1,787,468
	515,000	International Lease Finance Corporation		6.38			03/25/2013		536,888
	125,000	International Lease Finance Corporation††		6.50			09/01/2014		134,813
	125,000	International Lease Finance Corporation††		6.75			09/01/2016		135,313
	200,000	International Lease Finance Corporation††		7.13			09/01/2018		218,250
	1,015,000	International Lease Finance Corporation††		8.63			09/15/2015		1,144,413
	1,025,000	Nielsen Finance LLC††		7.75			10/15/2018		1,108,281
	5,410,000	Sprint Capital Corporation		6.88			11/15/2028		4,875,763
	1,010,000	Sprint Capital Corporation		6.90			05/01/2019		1,018,838
	2,490,000	Sprint Capital Corporation		8.38			03/15/2012		2,642,513
	950,000	Sprint Capital Corporation		8.75			03/15/2032		988,000

									45,309,077


Diversified Financial Services: 2.74%
	2,300,000	Ally Financial Incorporated		8.30			02/12/2015		2,596,125
	551,000	Dunkin Finance Corporation††		9.63			12/01/2018		557,888
	3,500,000	NCO Group Incorporated		11.88			11/15/2014		3,123,750
	400,000	NSG Holdings LLC/NSG Holdings Incorporated††(i)		7.75			12/15/2025		392,500
	6,300,000	Nuveen Investments Incorporated«		5.50			09/15/2015		5,512,500
	275,000	Nuveen Investments Incorporated††		10.50			11/15/2015		281,188
	575,000	Nuveen Investments Incorporated		10.50			11/15/2015		587,938

									13,051,889


Insurance: 0.71%
	3,050,000	Emigrant Bancorp Incorporated††(i)		6.25			06/15/2014		2,542,965
	800,000	HUB International Holdings Incorporated††		10.25			06/15/2015		832,000

									3,374,965


Real Estate Investment Trusts (REITs): 3.45%
	5,594,811	Capital Automotive^		1.88			12/14/2012		5,804,616
	5,470,000	Dupont Fabros Technology Incorporated		8.50			12/15/2017		6,030,675
	1,581,000	National Retail Properties Incorporated		6.88			10/15/2017		1,707,572
	1,875,000	Omega Healthcare Investors††		6.75			10/15/2022		1,893,750
	909,000	Ventas Realty LP		9.00			05/01/2012		970,954

									16,407,567


Health Care: 4.57%

Health Care Equipment & Supplies: 1.11%
	515,000	Biomet Incorporated¥		10.38			10/15/2017		576,156
	3,645,000	Biomet Incorporated		11.63			10/15/2017		4,109,738
	625,000	Fresenius Medical Care Incorporated††		5.75			02/15/2021		604,688

									5,290,582



Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 67

HIGH YIELD BOND FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Health Care Providers & Services: 3.19%
$	950,000	Aviv Healthcare Properties LP††		7.75	%		02/15/2019	$	990,375
	466,000	Centene Corporation		7.25			04/01/2014		480,563
	2,650,000	Community Health Systems Incorporated Series WI		8.88			07/15/2015		2,809,000
	1,000,000	HCA Incorporated		7.25			09/15/2020		1,078,750
	2,765,000	HCA Incorporated		9.25			11/15/2016		2,986,200
	1,144,000	HCA Incorporated¥		9.63			11/15/2016		1,241,240
	2,000,000	Health Management Association Incorporated		6.13			04/15/2016		2,030,000
	450,000	Healthsouth Corporation		7.25			10/01/2018		466,875
	450,000	Healthsouth Corporation		7.75			09/15/2022		468,563
	750,000	Sabra Health Care Corporation††		8.13			11/01/2018		791,250
	1,740,000	United Surgical Partners International Incorporated		8.88			05/01/2017		1,835,700

									15,178,516


Pharmaceuticals: 0.27%
	750,000	Mylan Incorporated††		6.00			11/15/2018		767,813
	100,000	Mylan Incorporated††		7.63			07/15/2017		109,875
	350,000	Mylan Incorporated††		7.88			07/15/2020		391,125

									1,268,813


Industrials: 5.98%

Aerospace & Defense: 1.00%
	462,000	Hexcel Corporation		6.75			02/01/2015		474,128
	1,805,000	L-3 Communications Holdings Incorporated		5.88			01/15/2015		1,840,198
	2,385,000	L-3 Communications Holdings Incorporated		6.38			10/15/2015		2,462,513

									4,776,839


Commercial Services & Supplies: 4.06%
	400,000	Brickman Group Holdings††		9.13			11/01/2018		430,000
	125,000	Casella Waste Systems Incorporated††		7.75			02/15/2019		128,125
	840,000	Corrections Corporation of America		6.25			03/15/2013		841,050
	1,445,000	Corrections Corporation of America		7.75			06/01/2017		1,582,275
	1,775,000	Iron Mountain Incorporated		8.00			06/15/2020		1,908,125
	1,440,000	Iron Mountain Incorporated		8.38			08/15/2021		1,593,000
	1,025,000	KAR Holdings Incorporated±		4.30			05/01/2014		1,012,188
	3,185,000	KAR Holdings Incorporated		8.75			05/01/2014		3,308,419
	6,334,000	KAR Holdings Incorporated		10.00			05/01/2015		6,714,040
	1,705,000	The Geo Group Incorporated		7.75			10/15/2017		1,817,956

									19,335,178


Machinery: 0.24%
	525,000	Columbus Mckinnon Corp††		7.88			02/01/2019		543,375
	144,253	Commercial Vehicle Group Incorporated¥		11.00			02/15/2013		154,351
	400,000	Titan International Incorporated††		7.88			10/01/2017		428,000

									1,125,726


Road & Rail: 0.68%
	239,000	Kansas City Southern		13.00			12/15/2013		285,605
	2,650,000	RailAmerica Incorporated		9.25			07/01/2017		2,934,875

									3,220,480


Information Technology: 5.03%

Communications Equipment: 0.18%
	825,000	Allbritton Communication		8.00			05/15/2018		864,188



68 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

HIGH YIELD BOND FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Computers & Peripherals: 0.14%
$	650,000	Seagate Technology International		6.80	%		10/01/2016	$	678,438


Electronic Equipment & Instruments: 0.78%
	3,675,000	GCI Incorporated		7.25			02/15/2014		3,711,750


Internet Software & Services: 0.23%
	1,020,000	Equinix Incorporated		8.13			03/01/2018		1,106,700


IT Services: 3.54%
	329,000	Fidelity National Information Services††		7.63			07/15/2017		362,723
	174,000	Fidelity National Information Services††		7.88			07/15/2020		193,140
	1,225,000	First Data Corporation		11.25			03/31/2016		1,182,125
	3,600,000	Lender Processing Services Incorporated		8.13			07/01/2016		3,744,000
	857,000	SunGard Data Systems Incorporated		4.88			01/15/2014		869,855
	550,000	SunGard Data Systems Incorporated††		7.38			11/15/2018		567,875
	325,000	SunGard Data Systems Incorporated††		7.63			11/15/2020		335,563
	7,050,000	SunGard Data Systems Incorporated		10.25			08/15/2015		7,428,938
	2,000,000	TW Telecommunications Holdings Incorporated		8.00			03/01/2018		2,145,000

									16,829,219


Wireless Telecommunication Services: 0.16%
	725,000	Intelsat Jackson Holdings Limited††		7.25			10/15/2020		744,938


Materials: 2.62%

Chemicals: 0.52%
	1,950,000	Celanese UU Holdings LLC††		6.63			10/15/2018		2,037,750
	275,000	Chemtura Corporation††		7.88			09/01/2018		293,563
	125,000	Vertellus Specialties Incorporated††		9.38			10/01/2015		134,453

									2,465,766


Containers & Packaging: 1.66%
	725,000	Ball Corporation		5.75			05/15/2021		710,500
	500,000	Crown Americas LLC		7.63			05/15/2017		545,000
	55,000	Graham Packaging Company Incorporated		8.25			01/01/2017		58,850
	4,570,000	Graham Packaging Company Incorporated		9.88			10/15/2014		4,729,950
	1,702,000	Owens Brockway Glass Container Incorporated		7.38			05/15/2016		1,855,180

									7,899,480


Metals & Mining: 0.16%
	100,000	Freeport-McMoRan Copper & Gold Incorporated		8.38			04/01/2017		111,000
	3,285,000	Indalex Holdings Corporation^^		11.50			02/01/2014		61,594
	525,000	Novelis Incorporated††		8.75			12/15/2020		578,813

									751,407


Paper & Forest Products: 0.28%
	1,090,000	Georgia-Pacific Corporation		8.88			05/15/2031		1,332,525


Telecommunication Services: 5.79%

Diversified Telecommunication Services: 1.69%
	1,925,000	GCI Incorporated		8.63			11/15/2019		2,117,500
	270,000	Qwest Corporation		7.63			08/03/2021		278,100
	2,990,000	Qwest Corporation		8.88			03/15/2012		3,210,513
	815,000	SBA Telecommunications Incorporated		8.00			08/15/2016		888,350
	75,000	SBA Telecommunications Incorporated		8.25			08/15/2019		82,688
	1,400,000	U.S. West Communications Incorporated		7.25			09/15/2025		1,477,000

									8,054,151



Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 69

HIGH YIELD BOND FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Wireless Telecommunication Services: 4.10%
$	5,050,000	CC Holdings GS V LLC††		7.75	%		05/01/2017	$	5,573,938
	4,980,000	Cricket Communications Incorporated Series I		7.75			05/15/2016		5,266,350
	1,764,503	iPCS Incorporated¥		3.55			05/01/2014		1,733,624
	1,975,000	MetroPCS Wireless Incorporated		6.63			11/15/2020		1,923,156
	475,000	MetroPCS Wireless Incorporated		7.88			09/01/2018		501,719
	3,000,000	Sprint Nextel Corporation		6.00			12/01/2016		2,992,500
	1,400,000	Syniverse Holdings Incorporated††		9.13			01/15/2019		1,512,000

									19,503,287


Utilities: 6.33%

Electric Utilities: 2.22%
	6,717,000	Aquila Incorporatedºº		11.88			07/01/2012		7,530,227
	517,493	Energy Future Holdings Corporpation¥		11.00			11/01/2017		423,051
	520,000	IPALCO Enterprises Incorporated††		7.25			04/01/2016		564,200
	1,815,000	Otter Tail Corporation		9.00			12/15/2016		2,055,488

									10,572,966


Gas Utilities: 0.75%
	550,000	AmeriGas Partners LP		6.50			05/20/2021		566,500
	2,875,000	AmeriGas Partners LP		7.13			05/20/2016		2,990,000

									3,556,500


Independent Power Producers & Energy Traders: 3.36%
	4,150,000	Calpine Construction Finance Corporation††		7.25			10/15/2017		4,347,125
	1,925,000	NRG Energy Incorporated		7.38			02/01/2016		1,992,375
	7,425,000	NRG Energy Incorporated		7.38			01/15/2017		7,824,094
	1,233,045	Reliant Energy Incorporated		9.24			07/02/2017		1,319,358
	460,000	Reliant Energy Incorporated		9.68			07/02/2026		492,200

									15,975,152


Total Corporate Bonds and Notes (Cost $335,531,389)									350,842,985


Yankee Corporate Bonds and Notes: 3.12%

Consumer Discretionary: 0.81%

Media: 0.81%
	380,000	Videotron Limited		6.38			12/15/2015		388,550
	1,881,000	Videotron Limited		6.88			01/15/2014		1,906,864
	1,385,000	Videotron Limited		9.13			04/15/2018		1,554,663

									3,850,077


Energy: 0.49%

Oil, Gas & Consumable Fuels: 0.49%
	1,395,000	General Maritime Corporation		12.00			11/15/2017		1,279,913
	525,000	Griffin Coal Mining Company Limited^^		9.50			12/01/2016		444,938
	1,125,000	OPTI Canada Incorporated		8.25			12/15/2014		613,125

									2,337,976


Financials: 0.12%

Capital Markets: 0.12%
	525,000	FMC Finance III SA		6.88			07/15/2017		553,219



70 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

HIGH YIELD BOND FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Diversified Financial Services: 0.00%
$	720,000	Preferred Term Securities XII Limited^^(i)		1.18	%		12/24/2033	$	216


Information Technology: 0.19%

Computers & Peripherals: 0.19%
	400,000	Seagate Technology International††		6.88			05/01/2020		392,000
	500,000	Seagate Technology International††		7.75			12/15/2018		512,500

									904,500


Materials: 0.33%

Metals & Mining: 0.33%
	990,000	Novelis Incorporated		7.25			02/15/2015		1,014,750
	500,000	Novelis Incorporated††		8.38			12/15/2017		551,250

									1,566,000


Telecommunication Services: 1.18%

Wireless Telecommunication Services: 1.18%
	1,588,000	Intelsat Limited		8.50			01/15/2013		1,597,925
	1,100,000	Intelsat Limited††		8.50			11/01/2019		1,207,250
	666,000	Intelsat Limited		8.88			01/15/2015		685,980
	825,000	Intelsat Limited		11.25			06/15/2016		882,750
	1,125,000	Telesat Canada Incorporated		11.00			11/01/2015		1,262,813

									5,636,718


Total Yankee Corporate Bonds and Notes (Cost $14,409,484)									14,848,706


Shares
Investment Companies: 0.54%
	62,492	BlackRock High Income Shares	134,983
	26,741	BlackRock Limited Duration Income Trust	454,597
	45,818	Eaton Vance Limited Duration Income Trust	723,008
	38,386	ING Prime Rate Trust	230,700
	38,414	New America High Income Fund Incorporated	394,128
	14,624	Nuveen Floating Rate Income Fund«	182,946
	35,644	Western Asset Global High Income Incorporated	464,085

Total Investment Companies (Cost $2,217,760)			2,584,447


Principal
Collateralized Mortgage Obligations: 2.53%
$	4,526,393	American Home Mortgage Assets Series 2006 Class 1A1±	1.25	09/25/2046	2,651,298
	1,280,000	American Home Mortgage Assets Series 2006 Class 1A1	5.47	01/15/2045	1,342,898
	1,515,000	Banc of America Commercial Mortgage Incorporated Series 2006 Class AM±	5.87	07/10/2044	1,592,360
	2,040,000	Greenwich Capital Commercial Funding Corporation Series 2006-GG7 Class AM±	5.88	07/10/2038	2,152,328
	3,730,000	Lehman XS Trust Series 2006-18N Class A5A(i)±	0.43	12/25/2036	1,483,376
	1,831,000	Morgan Stanley Capital I Trust Series 2006-IQ12 Class AM	5.37	12/15/2043	1,881,949
	910,000	Morgan Stanley Capital I Trust Series 2006-IQ12 Class AM	5.37	12/15/2043	942,220

Total Collateralized Mortgage Obligations (Cost $11,758,611)					12,046,429



Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 71

HIGH YIELD BOND FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Term Loans: 15.90%
$	475,000	Advantage Sales & Marketing LLC		9.25	%		06/18/2018	$	483,018
	1,970,285	Allison Transmission Incorporated		3.02			08/07/2014		1,959,448
	2,586,387	Ameristar Casinos Incorporated		3.55			11/10/2012		2,589,620
	1,876,050	Blackstone UTP		7.75			11/02/2014		1,913,571
	1,500,000	CCM Merger Incorporated<		NA			02/11/2017		1,518,750
	702,273	Celanese UU Holdings LLC		3.30			10/31/2016		706,901
	3,210,550	Coinmach Corporation		3.30			11/20/2014		3,025,944
	2,654,688	Community Health Systems Incorporated		2.56			07/25/2014		2,631,884
	136,780	Community Health Systems Incorporated		2.56			07/25/2014		135,605
	997,500	Emdeon Business Services LLC		4.50			11/18/2013		1,004,363
	750,000	Emdeon Business Services LLC		5.27			05/16/2014		746,250
	3,000,736	Fairpoint Communications Incorporated		6.50			01/22/2016		2,955,035
	2,865,634	Federal Mogul Corporation		2.20			12/29/2014		2,769,807
	1,462,058	Federal Mogul Corporation		2.20			12/28/2015		1,413,167
	525,000	First Data Corporation		3.01			09/24/2014		495,962
	2,025,000	First Data Corporation		3.01			09/24/2014		1,912,451
	1,537,329	First Data Corporation		3.01			09/24/2014		1,451,977
	2,294,399	Ford Motor Credit Company LLC		3.02			12/16/2013		2,291,416
	5,818,787	Ford Motor Credit Company LLC		3.02			12/16/2013		5,806,043
	1,820,784	Georgia-Pacific Corporation		2.30			12/20/2012		1,820,438
	728,274	Georgia-Pacific Corporation		2.30			12/21/2012		728,135
	1,915,073	Gray Television		3.77			12/31/2014		1,906,531
	3,000,000	HCA Incorporated		1.55			11/19/2012		2,981,940
	994,489	Health Management Association Incorporated		2.05			02/28/2014		985,788
	677,829	HMSC		5.76			10/03/2014		555,820
	550,000	J.Crew Group Incorporated<		NA			01/26/2018		550,088
	1,000,000	Level 3 Financing Incorporated		2.55			03/13/2014		973,000
	3,275,374	Local TV Finance LLC		2.31			05/07/2013		3,196,209
	1,785,546	LPL Holdings Incorporated		2.04			06/28/2013		1,782,207
	1,214,544	Merisant Company		7.50			01/08/2014		1,181,144
	348,182	MetroPCS Wireless Incorporated		2.56			11/04/2013		347,360
	78,526	Mission Broadcasting Incorporated		5.00			09/30/2016		78,133
	2,825,000	Newsday LLC		10.50			08/01/2013		2,992,749
	122,822	Nexstar Broadcasting Incorporated		5.00			09/30/2016		122,208
	262,796	Nielsen Finance LLC		2.26			08/09/2013		262,848
	450,000	Owens Brockway Glass Container Incorporated		1.76			06/14/2013		451,125
	2,852,624	Penn National Gaming Incorporated		2.03			10/03/2012		2,844,609
	1,241,888	Sugarhouse HSP Gaming LP		11.25			09/23/2014		1,261,547
	1,950,933	SunGard Data Systems Incorporated		2.01			02/28/2014		1,939,715
	323,375	The Geo Group Incorporated		4.75			06/22/2017		325,532
	14,922,879	TXU Energy Company LLC		3.77			10/10/2014		12,531,040

Total Term Loans (Cost $72,411,142)									75,629,378


Shares
Common Stocks: 0.34%

Telecommunication Services: 0.34%

Diversified Telecommunication Services: 0.34%
	70,879	Fairpoint Communications Incorporated†							1,630,219


Total Common Stocks (Cost $1,573,932)									1,630,219



72 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

HIGH YIELD BOND FUND


Shares		Security Name	Yield			Value
Short-Term Investments: 3.02%

Investment Companies: 3.02%
	14,207,412	Wells Fargo Advantage Cash Investment Money Market Fund(o)(l)(u)		0.12	%	$	14,207,412
	165,750	Wells Fargo Securities Lending Cash Investments, LLC(v)(l)(u)		0.25			165,750

Total Short-Term Investments (Cost $14,373,162)							14,373,162


Total Investments in Securities (Cost $452,275,480)*	99.20	%		471,955,326

Other Assets and Liabilities, Net	0.80			3,785,735


Total Net Assets	100.00	%	$	475,741,061


<		All or portion of the position represents an unfunded loan commitment.

(o)		Security pledged as collateral for when-issued (TBA), delayed delivery securities and/or unfunded loans.

(v)		Security represents investment of cash collateral received from securities on loan.

(l)		Investment in an affiliate.

(u)		Rate shown is the 7-day annualized yield at period end.

††		Securities that may be resold to “qualified institutional buyers” under Rule 144A or securities offered pursuant to Section 4(2) of the Securities Act of 1933, as amended.

ºº		Stepped coupon bond. Interest rate presented is yield to maturity.

^^		This security is currently in default with regards to scheduled interest and/or principal payments.

(i)		Illiquid security.

«		All or a portion of this security is on loan.

¥		Payment-in-kind (PIK) securities are securities in which the issuer may make interest or dividend payments in cash or additional securities. These additional securities generally have the same terms as the original holdings.

±		Variable rate investments.

†		Non-income earning securities.

^		Zero coupon security. Rate represents yield to maturity.

*		Cost for federal income tax purposes is $453,421,630 and net unrealized appreciation (depreciation) consists of:


Gross unrealized appreciation	$	25,091,012
Gross unrealized depreciation		(6,557,316	)

Net unrealized appreciation	$	18,533,696

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


Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 73

INCOME PLUS FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Agency Securities: 36.86%

Federal Home Loan Mortgage Corporation: 2.42%
$	471	FHLMC #170065		14.00	%		09/01/2012	$	474
	122,922	FHLMC #1J1263±		4.24			01/01/2036		127,592
	38,387	FHLMC #A77459		7.50			05/01/2038		43,621
	2,682,984	FHLMC #A92458		5.00			06/01/2040		2,809,947
	3,800,000	FHLMC #A92666		5.50			06/01/2040		4,059,129
	1,490,387	FHLMC #A93454		5.00			08/01/2040		1,560,914
	1,100	FHLMC #C00922		8.00			02/01/2030		1,296
	735,669	FHLMC Series 2736 Class BC		5.00			12/15/2029		761,966
	1,534,909	FHLMC Series M009 Class A		5.40			10/15/2021		1,640,679
	3,495,479	FHLMC Series T-42 Class A5		7.50			02/25/2042		4,119,859
	107,279	FHLMC Structured Pass-Through Securities Series T-57 Class 2A1±		3.95			07/25/2043		107,067
	90,691	FHLMC Structured Pass-Through Securities Series T-59 Class 2A1±		3.77			10/25/2043		93,256

									15,325,800


Federal National Mortgage Association: 30.63%
	5,980,000	FNMA		0.75			12/18/2013		5,893,810
	3,670,000	FNMA		3.50			02/01/2026		3,685,443
	3,416,000	FNMA%%		5.00			04/25/2036		3,576,658
	1,352,000	FNMA%%		5.50			08/25/2019		1,458,470
	19,340,000	FNMA%%		5.50			02/25/2035		20,669,625
	17,990,000	FNMA%%		6.00			07/25/2035		19,547,250
	2,794,602	FNMA #073587		7.87			07/01/2026		2,677,658
	161,614	FNMA #256986		7.00			11/01/2037		182,443
	743,820	FNMA #257307		6.00			08/01/2038		809,187
	240,000	FNMA #385234		6.06			06/01/2012		248,558
	1,624,328	FNMA #464093		4.39			01/01/2020		1,670,548
	1,953,276	FNMA #465156		4.46			05/01/2020		2,012,554
	3,616,446	FNMA #545320		5.69			11/01/2011		3,657,029
	1,244,931	FNMA #545547		6.06			03/01/2012		1,273,980
	872,519	FNMA #725715		5.50			08/01/2034		939,925
	266,334	FNMA #735230		5.50			02/01/2035		286,910
	91,121	FNMA #831621		7.00			07/01/2036		104,053
	343,815	FNMA #863727±		2.52			01/01/2036		359,638
	194,932	FNMA #886087		6.50			07/01/2036		219,472
	175,497	FNMA #886686±		6.02			08/01/2036		185,639
	270,214	FNMA #888022		5.00			02/01/2036		285,155
	529,650	FNMA #889398		6.00			11/01/2037		576,526
	129,094	FNMA #892283±		5.87			09/01/2036		135,999
	128,783	FNMA #895998		6.50			07/01/2036		145,518
	73,352	FNMA #902200		6.50			11/01/2036		82,522
	2,410,373	FNMA #934370		5.50			08/01/2038		2,592,066
	6,835,398	FNMA #941312		6.50			07/01/2037		7,695,926
	5,959,582	FNMA #947654		6.00			10/01/2037		6,487,031
	40,877	FNMA #976190		7.50			05/01/2038		46,876
	5,329,109	FNMA #987853		5.50			08/01/2038		5,730,814
	1,398,115	FNMA #995238		5.00			01/01/2024		1,486,210
	4,688,532	FNMA #995591		7.00			03/01/2024		5,136,930
	13,219,181	FNMA #AB1469		4.50			09/01/2040		13,490,942
	471,006	FNMA #AC2673		4.00			09/01/2024		485,360
	1,459,173	FNMA #AC7693		4.50			11/01/2024		1,530,747
	2,078,715	FNMA #AD0309		4.50			10/01/2024		2,180,679
	5,565,014	FNMA #AD7860		5.00			06/01/2040		5,833,575
	15,604,367	FNMA #AD9194		5.00			08/01/2040		16,357,417
	21,079,464	FNMA #AE0113		4.00			07/01/2040		20,811,520



74 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

INCOME PLUS FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Federal National Mortgage Association (continued)
$	4,499,249	FNMA #AE3049		4.50	%		09/01/2040	$	4,591,745
	7,929,097	FNMA #AE6219		4.00			12/01/2040		7,827,328
	13,402	FNMA Grantor Trust Series 2002-T12 Class A3		7.50			05/25/2042		15,618
	12,265,000	FNMA Series 11		1.25			02/27/2014		12,243,916
	163,418	FNMA Series 2003-W14 Class 2A±		3.36			06/25/2035		167,631
	160,727	FNMA Series 2003-W14 Class 2A±		4.20			01/25/2043		165,423
	564,741	FNMA Series 2004-7 Class AE		5.00			12/25/2030		576,590
	306,380	FNMA Whole Loan Series 2003-W8 Class 4A±		3.96			11/25/2042		303,225
	3,744,544	FNMA Whole Loan Series 2004-W11 Class 1A3		7.00			05/25/2044		4,262,930
	2,705,774	FNMA Whole Loan Series 2004-W15 Class 1A3		7.00			08/25/2044		3,080,355

									193,785,424


Government National Mortgage Association: 3.81%
	7,130,000	GNMA%%		4.50			11/20/2039		7,359,543
	4,486,066	GNMA #4747		5.00			07/20/2040		4,775,361
	1,425	GNMA #516121		7.50			12/15/2029		1,655
	87,952	GNMA Series 2005-59 Class A		4.39			05/16/2023		88,785
	2,780,676	GNMA Series 2005-90 Class A		3.76			09/16/2028		2,871,221
	377,864	GNMA Series 2006-3 Class A		4.21			01/16/2028		385,032
	1,751,587	GNMA Series 2007-12 Class A		3.96			06/16/2031		1,823,428
	485,000	GNMA Series 2007-12 Class C		5.28			04/16/2041		512,188
	857,573	GNMA Series 2007-69 Class TA±		3.96			06/16/2031		863,639
	18,687,032	GNMA Series 2008-22 Class XM(c)±		1.67			02/16/2050		802,197
	4,365,000	GNMA Series 2008-86 Class D		5.46			04/16/2040		4,600,989

									24,084,038


Total Agency Securities (Cost $230,935,108)									233,195,262


Asset Backed Securities: 1.60%
	430,000	Chase Issuance Trust Series 2005-A6 Class A6±		0.34			07/15/2014		429,521
	3,410,000	Chase Issuance Trust Series 2009-A3 Class A3		2.40			06/17/2013		3,429,812
	285,000	Citibank Credit Card Issuance Trust Series 2005-C1 Class C1		5.50			03/24/2017		308,140
	870,929	Countrywide Asset Backed Certificates Series 2004-S1 Class A3		4.62			02/25/2035		819,375
	2,450,969	CVS Pass-Through Trust Series T		6.04			12/10/2028		2,549,204
	2,345,000	Discover Card Master Trust Series 2008-A4 Class A4		5.65			12/15/2015		2,575,337
	6,799	SACO I Trust Series 2005-2 Class A††±(i)		0.46			04/25/2035		2,895

Total Asset Backed Securities (Cost $9,657,992)									10,114,284


Collateralized Mortgage Obligations: 5.47%
	785,000	Banc of America Commercial Mortgage Securities Incorporated Series 2007-1 Class AMFX		5.48			01/15/2049		804,422
	1,070,000	Bank of America Commercial Mortgage Incorporated Series 2008-1 Class AM		6.25			02/10/2051		1,118,218
	3,170,000	Citigroup Deutsche Bank Commercial Mortgage Loan Trust Incorporated Series 2006-CD3 Class A5		5.62			10/15/2048		3,426,808
	2,645,000	Commercial Mortgage Pass-Through Certificates Series 2004-LB4A Class A4		4.58			10/15/2037		2,683,187
	604,369	Credit Suisse First Boston Mortgage Securities Corporation Series 1998-C2 Class AX(c)±		0.38			11/11/2030		6,203
	155,032	Financial Asset Securitization Incorporated Series 1997-NAM2 Class B2		7.88			07/25/2027		148,329
	2,228,000	Goldman Sachs Mortgage Securities Corporation II Series 2006-GG8 Class A4		5.56			11/10/2039		2,398,829
	2,080,000	JPMorgan Chase Commercial Mortgage Securities Series 2007-CB18 Class A4		5.44			06/12/2047		2,210,365
	3,505,674	Lehman Brothers UBS Commercial Mortgage Trust Series 2003-C8 Class A3		4.83			11/15/2027		3,618,230
	3,735,000	Lehman Brothers UBS Commercial Mortgage Trust Series 2006-C1 Class A4		5.16			02/15/2031		4,012,332
	2,990,000	Lehman Brothers UBS Commercial Mortgage Trust Series 2006-C4 Class A3		5.17			12/12/2049		3,177,152
	1,814,858	Mach One Trust Commercial Mortgage Backed Series 2004-1 Class X(c)††±(i)		1.03			05/28/2040		22,958
	1,040,000	Merrill Lynch Commercial Mortgage Trust Series 2007-8 Class A3±		5.96			08/12/2049		1,126,047



Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 75

INCOME PLUS FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Collateralized Mortgage Obligations (continued)
$	1,415,071	Morgan Stanley Capital I Series 2004-RR2 Class X(c)††±(i)		0.83	%		10/28/2033	$	14,236
	3,310,000	Morgan Stanley Capital I Series 2004-T15 Class A4		5.27			06/13/2041		3,534,139
	2,625,000	Morgan Stanley Capital I Series 2007-IQ Class A4		5.81			12/12/2049		2,860,284
	1,555,000	TIAA Real Estate CDO Limited Series 2007-C4 Class A3±		6.05			08/15/2039		1,691,202
	2,127,960	WaMu Mortgage Pass Through Certificates Series 2007-HY7 Class 3A2±		5.67			07/25/2037		1,755,716

Total Collateralized Mortgage Obligations (Cost $32,548,428)									34,608,657


Corporate Bonds and Notes: 25.21%

Consumer Discretionary: 4.18%

Auto Components: 0.18%
	1,000,000	TRW Automotive Incorporated††		7.25			03/15/2017		1,105,000


Diversified Consumer Services: 0.29%
	1,750,000	Service Corporation International Series WI		7.00			06/15/2017		1,863,750


Hotels, Restaurants & Leisure: 0.40%
	795,000	Agua Caliente Band of Cahuilla Indians††(i)		6.44			10/01/2016		687,111
	1,750,000	Seminole Tribe of Florida††		7.75			10/01/2017		1,857,188

									2,544,299


Internet & Catalog Retail: 0.48%
	2,985,000	Expedia Incorporated††		5.95			08/15/2020		3,018,581


Media: 1.86%
	2,210,000	CBS Corporation		7.88			07/30/2030		2,577,329
	650,000	Citadel Broadcasting Corporation††		7.75			12/15/2018		697,125
	1,765,000	DIRECTV Holdings LLC		6.38			06/15/2015		1,820,156
	1,750,000	DISH DBS Corporation		7.88			09/01/2019		1,896,563
	1,525,000	News America Holdings Incorporated		8.25			08/10/2018		1,901,864
	2,000,000	Valassis Communication††		6.63			02/01/2021		1,975,000
	800,000	Vivendi SA††		6.63			04/04/2018		898,830

									11,766,867


Multiline Retail: 0.28%
	1,750,000	Macy’s Retail Holdings Incorporated		6.65			07/15/2024		1,758,750


Specialty Retail: 0.69%
	2,273,000	Best Buy Company Incorporated		6.75			07/15/2013		2,512,490
	1,750,000	Limited Brands Incorporated		7.00			05/01/2020		1,855,000

									4,367,490


Consumer Staples: 1.40%

Beverages: 0.30%
	1,750,000	Constellation Brands Incorporated		7.25			09/01/2016		1,881,250


Food Products: 0.30%
	1,750,000	TreeHouse Foods Incorporated		7.75			03/01/2018		1,894,375


Tobacco: 0.80%
	2,395,000	Lorillard Incorporated		8.13			06/23/2019		2,685,482
	250,000	Reynolds American Incorporated††		7.13			04/15/2019		256,250
	1,735,000	Reynolds American Incorporated††		7.63			06/01/2016		2,061,583
	100,000	Reynolds Group Holdings††		6.88			02/15/2021		100,250

									5,103,565



76 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

INCOME PLUS FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Energy: 2.45%

Oil, Gas & Consumable Fuels: 2.45%
$	1,750,000	Chesapeake Energy Corporation		6.63	%		08/15/2020	$	1,837,500
	1,750,000	Consol Energy Corporation††		8.25			04/01/2020		1,929,375
	1,750,000	Energy Transfer Equity		7.50			10/15/2020		1,896,563
	1,750,000	Newfield Exploration Company		6.88			02/01/2020		1,859,375
	1,750,000	Peabody Energy Corporation		5.88			04/15/2016		1,780,625
	1,750,000	Suburban Propane Partners LP		7.38			03/15/2020		1,872,500
	1,250,000	Texas Eastern Transmission LP		7.00			07/15/2032		1,475,070
	2,585,000	Transocean Incorporated		6.50			11/15/2020		2,845,669

									15,496,677


Financials: 9.25%

Capital Markets: 0.88%
	2,610,000	Alterra Finance LLC		6.25			09/30/2020		2,615,982
	2,456,000	Raymond James Financial Incorporated		8.60			08/15/2019		2,973,464

									5,589,446


Commercial Banks: 2.32%
	5,420,000	Bank Nederlandse Gemeenten††		2.50			01/11/2016		5,351,253
	4,000,000	FBOP Corporation†(a)^^		10.00			05/28/2009		0
	2,245,000	Fifth Third Bancorp		6.25			05/01/2013		2,446,720
	2,180,000	Key Bank NA		4.95			09/15/2015		2,272,657
	3,150,000	Landwirtsch Rentenbank		2.50			02/15/2016		3,137,466
	1,415,000	PNC Financial Services Group Incorporated		8.25			05/29/2049		1,497,956

									14,706,052


Consumer Finance: 1.66%
	2,380,000	Discover Financial Services		10.25			07/15/2019		3,083,359
	1,750,000	Ford Motor Credit Company LLC		8.13			01/15/2020		1,997,469
	1,650,000	Regions Bank		7.50			05/15/2018		1,749,000
	2,485,000	SLM Corporation		8.00			03/25/2020		2,637,206
	1,000,000	Sprint Capital Corporation		6.90			05/01/2019		1,008,750

									10,475,784


Diversified Financial Services: 1.81%
	2,795,000	Bank of America Corporation		6.50			08/01/2016		3,136,079
	1,725,000	Citigroup Incorporated		5.38			08/09/2020		1,788,276
	1,750,000	International Lease Finance Corporation		8.25			12/15/2020		1,946,875
	1,750,000	JPMorgan Chase & Company Series 1		7.90			04/29/2049		1,904,893
	2,630,000	Moody’s Corporation		5.50			09/01/2020		2,666,097

									11,442,220


Insurance: 2.27%
	2,500,000	AFLAC Incorporated		6.90			12/17/2039		2,754,155
	1,600,000	National Life Insurance Company of Vermont††		10.50			09/15/2039		2,014,024
	2,100,000	Platinum Underwriters Finance Incorporated Series B		7.50			06/01/2017		2,175,663
	2,000,000	Prudential Financial Incorporated		8.88			06/15/2068		2,330,000
	1,945,000	Torchmark Corporation		9.25			06/15/2019		2,421,834
	2,360,000	Unum Group		7.13			09/30/2016		2,674,031

									14,369,707


Real Estate Investment Trusts (REITs): 0.31%
	1,865,000	Ventas Realty LP		6.50			06/01/2016		1,955,165



Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 77

INCOME PLUS FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Health Care: 0.28%

Health Care Providers & Services: 0.28%
$	1,750,000	Lifepoint Hospitals Incorporated††		6.63	%		10/01/2020	$	1,791,563


Industrials: 2.28%

Aerospace & Defense: 0.52%
	1,750,000	Esterline Technologies Corporation††		7.00			08/01/2020		1,833,125
	167,000	Hexcel Corporation		6.75			02/01/2015		171,384
	1,250,000	L-3 Communications Corporation		6.38			10/15/2015		1,290,625

									3,295,134


Commercial Services & Supplies: 0.49%
	1,575,000	Clean Harbors Incorporated		7.63			08/15/2016		1,673,438
	1,335,000	Equifax Incorporated		6.30			07/01/2017		1,447,663

									3,121,101


Electrical Equipment: 0.28%
	1,750,000	Belden CDT Incorporated		7.00			03/15/2017		1,776,250


Machinery: 0.71%
	685,000	Briggs & Stratton Corporation		6.88			12/15/2020		722,675
	1,750,000	SPX Corporation		7.63			12/15/2014		1,916,250
	1,750,000	Valmont Industries Incorporated		6.63			04/20/2020		1,837,161

									4,476,086


Professional Services: 0.28%
	1,750,000	FTI Consulting Incorporated††		6.75			10/01/2020		1,750,000


Information Technology: 0.83%

Communications Equipment: 0.30%
	1,750,000	Brocade Communications Systems Incorporated		6.88			01/15/2020		1,876,875


Electronic Equipment & Instruments: 0.22%
	780,000	Corning Incorporated		7.25			08/15/2036		889,613
	500,000	Jabil Circuit Incorporated		5.63			12/15/2020		488,750

									1,378,363


Office Electronics: 0.31%
	1,685,000	Xerox Corporation		8.25			05/15/2014		1,971,779


Materials: 2.33%

Chemicals: 0.61%
	1,808,000	Mosaic Company††		7.63			12/01/2016		1,957,160
	1,750,000	Nalco Company		8.25			05/15/2017		1,914,063

									3,871,223


Containers & Packaging: 0.60%
	1,750,000	Ball Corporation		7.38			09/01/2019		1,903,125
	1,750,000	Owens Brockway Glass Container Incorporated		7.38			05/15/2016		1,907,500

									3,810,625


Metals & Mining: 0.64%
	2,470,000	Freeport-McMoRan Copper & Gold Incorporated		8.38			04/01/2017		2,741,700
	1,250,000	US Steel Corporation		7.38			04/01/2020		1,321,875

									4,063,575



78 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

INCOME PLUS FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Paper & Forest Products: 0.48%
$	1,000,000	Domtar Corporation		10.75	%		06/01/2017	$	1,280,000
	1,750,000	Georgia Pacific LLC††		5.40			11/01/2020		1,740,764

									3,020,764


Telecommunication Services: 1.62%

Diversified Telecommunication Services: 0.79%
	1,750,000	Frontier Communications Corporation		8.25			04/15/2017		1,933,750
	1,060,000	Qwest Corporation		8.38			05/01/2016		1,265,375
	1,750,000	Windstream Corporation		7.75			10/15/2020		1,813,438

									5,012,563


Wireless Telecommunication Services: 0.83%
	1,285,000	Alltel Corporation		7.00			07/01/2012		1,384,848
	1,765,000	American Tower Corporation		7.00			10/15/2017		1,992,479
	1,750,000	Crown Castle International Corporation		7.13			11/01/2019		1,861,563

									5,238,890


Utilities: 0.59%

Electric Utilities: 0.26%
	1,500,000	IPALCO Enterprises Incorporated††		7.25			04/01/2016		1,627,500


Independent Power Producers & Energy Traders: 0.33%
	1,921,125	FPL Energy Caithness Funding††(i)		7.65			12/31/2018		2,082,481


Total Corporate Bonds and Notes (Cost $156,357,023)									159,503,750


Yankee Corporate Bonds and Notes: 9.55%

Consumer Discretionary: 1.41%

Media: 1.41%
	2,170,000	British Sky Broadcasting Group plc††		9.50			11/15/2018		2,891,996
	2,380,000	Globo Comunicacoes e Participacoes SA††		7.25			04/26/2022		2,558,500
	1,755,000	Myriad International Holdings BV††		6.38			07/28/2017		1,818,619
	1,500,000	Videotron Limited		9.13			04/15/2018		1,683,750

									8,952,865


Energy: 0.85%

Energy Equipment & Services: 0.34%
	1,665,000	Weatherford International Limited		9.63			03/01/2019		2,181,518


Oil, Gas & Consumable Fuels: 0.51%
	3,000,000	Nexen Incorporated		7.50			07/30/2039		3,214,758


Financials: 4.49%

Capital Markets: 0.41%
	1,500,000	FMC Finance III SA		6.88			07/15/2017		1,580,625
	1,000,000	Macquarie Group Limited††		6.00			01/14/2020		1,009,900

									2,590,525


Commercial Banks: 3.65%
	3,000,000	Banco Credito Del Peru††		5.38			09/16/2020		2,880,000
	2,365,000	Banco Do Nordeste Do Brasil††		3.63			11/09/2015		2,308,018
	2,510,000	Banco Macro SA††		5.50			07/12/2020		2,528,825
	1,580,000	Commonwealth Bank of Australia††		6.02			03/29/2049		1,596,189
	2,600,000	Export Import Bank of Korea		5.13			06/29/2020		2,611,479



Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 79

INCOME PLUS FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Commercial Banks (continued)
$	2,335,000	Itau Unibanco Holdings SA††		5.75	%		01/22/2021	$	2,284,288
	2,330,000	Kommunalbank AS††		2.38			01/19/2016		2,313,916
	2,890,000	Lloyds TSB Bank plc††		5.80			01/13/2020		2,877,116
	3,615,000	Westpac Banking Corporation††		1.90			12/14/2012		3,663,394

									23,063,225


Diversified Financial Services: 0.43%
	2,435,000	Dexus Property Group††		7.13			10/15/2014		2,738,106


Materials: 1.09%

Metals & Mining: 1.09%
	1,900,000	Arcelormittal		6.13			06/01/2018		2,043,448
	2,175,000	Rio Tinto Finance USA Limited		9.00			05/01/2019		2,874,965
	1,650,000	Teck Resources Limited		10.25			05/15/2016		2,008,875

									6,927,288


Telecommunication Services: 1.25%

Diversified Telecommunication Services: 1.25%
	1,750,000	Inmarsat Finance plc††		7.38			12/01/2017		1,881,250
	1,415,000	Telecom Italia Capital SA		7.18			06/18/2019		1,532,371
	1,880,000	Telefonica Emisiones SAU		5.13			04/27/2020		1,871,737
	2,485,000	Telefonos de Mexico SAB de CV		5.50			11/15/2019		2,615,644

									7,901,002


Utilities: 0.46%

Electric Utilities: 0.46%
	2,750,000	Western Power Distributions Holdings Limited††(i)		7.38			12/15/2028		2,882,231


Total Yankee Corporate Bonds and Notes (Cost $57,594,708)									60,451,518


Yankee Government Bonds: 0.26%
	1,660,000	Russia††		5.00			04/29/2020		1,656,680


Total Yankee Government Bonds (Cost $1,649,426)									1,656,680


Shares			Dividend Yield
Preferred Stocks: 0.01%

Financials: 0.01%

Diversified Financial Services: 0.01%
	50	First Republic Capital Corporation††		10.50					51,400


Total Preferred Stocks (Cost $55,855)									51,400


Principal			Interest Rate
Municipal Bonds and Notes: 0.66%

Illinois: 0.47%
$	3,000,000	Illinois GO (GO-State)		4.51			03/01/2015		3,007,740


Oregon: 0.10%
	620,000	Cow Creek Band Umpqua Tribe of Indians Oregon Series A (Other Revenue)(i)		6.88			10/01/2011		614,166


Other: 0.09%
	575,000	Seneca Nation Indians Capital Improvements Authority Series 07 B (Other Revenue)††(i)		6.75			12/01/2013		564,432


Total Municipal Bonds and Notes (Cost $4,195,000)									4,186,338



80 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

INCOME PLUS FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
US Treasury Securities: 18.55%

US Treasury Bonds: 7.81%
$	10,160,000	US Treasury Bond«		2.00	%		01/31/2016	$	10,111,577
	8,300,000	US Treasury Bond«		3.63			02/15/2021		8,446,545
	5,620,000	US Treasury Bond		6.38			08/15/2027		7,158,475
	11,580,000	US Treasury Bond«		4.38			05/15/2040		11,351,990
	12,840,000	US Treasury Bond		4.25			11/15/2040		12,316,372

									49,384,959


US Treasury Notes: 10.74%
	13,150,000	US Treasury Note		1.13			12/15/2011		13,241,432
	1,955,000	US Treasury Note		1.00			12/31/2011		1,966,914
	10,485,000	US Treasury Note		0.63			12/31/2012		10,485,818
	27,405,000	US Treasury Note		1.75			03/31/2014		27,858,882
	2,210,000	US Treasury Note		2.75			11/30/2016		2,247,985
	12,820,000	US Treasury Note		1.88			10/31/2017		12,144,950

									67,945,981


Total US Treasury Securities (Cost $118,892,774)									117,330,939


Short-Term Investments: 12.47%

Corporate Bonds & Notes: 0.47%
	1,325,797	Gryphon Funding Limited(v)(a)(i)		0.00			08/05/2011		552,857
	4,142,577	VFNC Corporation(v)††±(a)(i)		0.26			09/29/2011		2,444,120

									2,996,977


US Treasury Bills: 0.06%
	400,000	US Treasury Bill#^		0.12			03/24/2011		399,969


Shares				Yield
Investment Companies: 11.94%
	65,045,433	Wells Fargo Advantage Cash Investment Money Market Fund##(l)(u)		0.12					65,045,433
	10,463,634	Wells Fargo Securities Lending Cash Investments, LLC(v)(l)(u)		0.25					10,463,634
									75,509,067

Total Short-Term Investments (Cost $77,690,200)									78,906,013


Total Investments in Securities (Cost $689,576,514)*	110.64	%		700,004,841

Other Assets and Liabilities, Net	(10.64	)		(67,316,532	)


Total Net Assets	100.00	%	$	632,688,309



Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 81

INCOME PLUS FUND


(v)		Security represents investment of cash collateral received from securities on loan.

%%		Securities issued on a when-issued (TBA) and/or delayed delivery basis.

(c)		Interest-only securities entitle holders to receive only the interest payments on the underlying mortgages. The principal amount shown is the notional amount of the underlying mortgages. Interest rate disclosed represents the coupon rate.

#		Security pledged as collateral for futures transactions.

##		All or a portion of this security has been segregated for when-issued or delayed delivery securities.

^^		This security is currently in default with regards to scheduled interest and/or principal payments.

^		Zero coupon security. Rate represents yield to maturity.

(l)		Investment in an affiliate.

«		All or a portion of this security is on loan.

††		Securities that may be resold to “qualified institutional buyers” under Rule 144A or securities offered pursuant to Section 4(2) of the Securities Act of 1933, as amended.

±		Variable rate investments.

(a)		Security is fair valued by the Management Valuation Team, and in certain instances by the Board of Trustees, in accordance with procedures approved by the Board of Trustees.

(i)		Illiquid security.

(u)		Rate shown is the 7-day annualized yield at period end.

*		Cost for federal income tax purposes is $689,576,539 and net unrealized appreciation (depreciation) consists of:


Gross unrealized appreciation	$	20,326,257
Gross unrealized depreciation		(9,897,955	)

Net unrealized appreciation	$	10,428,302

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



82 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

SHORT DURATION GOVERNMENT BOND FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Agency Securities: 41.90%

Federal Home Loan Mortgage Corporation: 7.82%
$	223,086	FHLMC #00461		7.00	%		03/25/2044	$	250,668
	2,669,551	FHLMC #1G1451±		5.91			01/01/2037		2,868,013
	2,580,547	FHLMC #1G1452±		5.87			01/01/2037		2,774,720
	10,007,466	FHLMC #1G1652±		6.03			04/01/2037		10,743,755
	1,978,906	FHLMC #1G1708±		6.10			04/01/2037		2,125,194
	5,148,293	FHLMC #1G2200±		6.14			09/01/2037		5,535,959
	4,927,944	FHLMC #1Q0974±		5.76			07/01/2038		5,292,441
	2,686,421	FHLMC #A67539		6.50			11/01/2037		3,042,252
	3,653,397	FHLMC #C70467		6.50			09/01/2032		4,139,593
	8,161,389	FHLMC #G02454		6.50			07/01/2032		9,239,858
	3,970,208	FHLMC #G05394		7.00			05/01/2035		4,551,017
	6,381,222	FHLMC #G05470		7.00			11/01/2032		7,222,409
	3,846,804	FHLMC #G06060		7.50			09/01/2038		4,385,010
	4,362,150	FHLMC #H09224		6.50			12/01/2038		4,836,339
	3,423,960	FHLMC Series 1732 Class K		6.50			05/15/2024		3,694,512
	6,561,102	FHLMC Series 2215 Class PH		6.50			02/15/2030		7,138,343
	1,373,157	FHLMC Series 2407 Class BJ		6.50			01/15/2032		1,505,697
	3,715,000	FHLMC Series 3510 Class BD		4.50			03/15/2032		3,894,210
	4,082,408	FHLMC Series 3704 Class CT		7.00			12/15/2036		4,543,212
	3,036,515	FHLMC Series T-11 Class A8		6.50			01/25/2028		3,367,378
	75,250	FHLMC Series T-42 Class A5		7.50			02/25/2042		88,692
	98,130	FHLMC Series T-60 Class 1A3		7.50			03/25/2044		115,364
	3,695,882	FHLMC Structured Pass-Through Securities Series K007 Class A1		3.34			12/25/2019		3,732,015
	176,593	FHLMC Structured Pass-Through Securities Series T-41 Class 3A±		7.28			07/25/2032		206,900
	2,211,590	FHLMC Structured Pass-Through Securities Series T-51 Class 2A		7.50			08/25/2042		2,549,504
	2,107	FHLMC Structured Pass-Through Securities Series T-55 Class 1A2		7.00			03/25/2043		2,353
	654,685	FHLMC Structured Pass-Through Securities Series T-57 Class 1A3		7.50			07/25/2043		769,664
	254,330	FHLMC Structured Pass-Through Securities Series T-59 Class 1A3		7.50			10/25/2043		299,760

									98,914,832


Federal National Mortgage Association: 31.80%
	5,280,057	FNMA #252341		6.50			03/01/2029		5,981,079
	1,304,009	FNMA #310017		7.00			06/01/2035		1,498,170
	3,896,951	FNMA #310021		6.50			08/01/2036		4,372,854
	4,230,983	FNMA #460481		6.28			08/01/2011		4,230,129
	1,973,841	FNMA #545420		5.62			12/01/2011		2,010,276
	9,155,941	FNMA #545745		6.11			07/01/2012		9,513,873
	23,301,642	FNMA #888703		6.50			08/01/2037		26,497,296
	4,625,749	FNMA #889645		7.00			04/01/2035		5,312,870
	9,382,160	FNMA #890249		6.50			07/01/2040		10,627,599
	6,710,680	FNMA #890271		7.00			09/01/2040		7,736,574
	2,883,015	FNMA #907054±		5.83			11/01/2037		3,093,468
	5,715,783	FNMA #942517±		6.26			08/01/2037		6,151,940
	2,997,345	FNMA #959381±		5.93			12/01/2037		3,210,871
	19,706,535	FNMA #984282		6.50			06/01/2038		22,322,929
	18,517,062	FNMA #AD0315		6.50			08/01/2039		20,975,533
	23,051,283	FNMA #AD0582		7.00			01/01/2040		26,595,636
	30,921,720	FNMA #AD0583		7.00			01/01/2040		35,478,680
	1,996,117	FNMA #AE0111±		5.87			06/01/2037		2,145,824
	23,332,985	FNMA #AE0356		6.00			09/01/2040		25,744,549
	3,895,099	FNMA #AE0499		7.50			09/01/2037		4,484,046
	5,828,000	FNMA #AE0934		6.50			02/01/2041		6,528,921
	964,369	FNMA Grantor Trust Series 2000-T06 Class A1		7.50			06/25/2030		1,073,933
	4,530,190	FNMA Grantor Trust Series 2001-T01 Class A1		7.50			10/25/2040		5,067,727



Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 83

SHORT DURATION GOVERNMENT BOND FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Federal National Mortgage Association (continued)
$	1,023,249	FNMA Grantor Trust Series 2001-T03 Class A1		7.50	%		11/25/2040	$	1,200,079
	879,137	FNMA Grantor Trust Series 2001-T07 Class A1		7.50			02/25/2041		982,045
	1,391,303	FNMA Grantor Trust Series 2001-T08 Class A1		7.50			07/25/2041		1,578,210
	2,480,546	FNMA Grantor Trust Series 2001-T10 Class A1		7.00			12/25/2041		2,873,557
	31,330	FNMA Grantor Trust Series 2001-T10 Class A2		7.50			12/25/2041		36,587
	817,235	FNMA Grantor Trust Series 2001-T12 Class A2		7.50			08/25/2041		932,909
	37,812	FNMA Grantor Trust Series 2001-T16 Class A2		7.00			07/25/2042		43,366
	5,470	FNMA Grantor Trust Series 2002-T04 Class A2		7.00			12/25/2041		6,326
	1,387,956	FNMA Grantor Trust Series 2002-T04 Class A3		7.50			12/25/2041		1,582,704
	435,899	FNMA Grantor Trust Series 2002-T06 Class A2		7.50			10/25/2041		494,397
	13,931,000	FNMA Grantor Trust Series 2002-T11 Class B		5.34			04/25/2012		14,651,464
	811,949	FNMA Grantor Trust Series 2002-T12 Class A3		7.50			05/25/2042		946,174
	625,470	FNMA Grantor Trust Series 2002-T16 Class A3		7.50			07/25/2042		731,995
	1,202,576	FNMA Grantor Trust Series 2002-T18 Class A4		7.50			08/25/2042		1,410,396
	1,505,908	FNMA Grantor Trust Series 2002-T19 Class A3		7.50			07/25/2042		1,743,559
	1,580,098	FNMA Grantor Trust Series 2004-T02 Class 1A4		7.50			11/25/2043		1,769,527
	1,540,929	FNMA Grantor Trust Series 2004-T03 Class 1A4		7.50			02/25/2044		1,784,107
	695,108	FNMA Series 1999-T02 Class A1		7.50			01/19/2039		777,153
	11,490,269	FNMA Series 2001-81 Class HE		6.50			01/25/2032		12,806,172
	139,865	FNMA Series 2001-T04 Class A1		7.50			07/25/2041		158,950
	198,860	FNMA Series 2001-W03 Class A		7.00			09/25/2041		229,969
	975,584	FNMA Series 2002-14 Class A2		7.00			01/25/2042		1,059,884
	2,069,046	FNMA Series 2002-14 Class A2		7.50			01/25/2042		2,306,367
	1,813,378	FNMA Series 2002-26 Cass A2		7.50			01/25/2048		2,012,558
	1,333,802	FNMA Series 2002-26 Class A1		7.00			01/25/2048		1,541,792
	221,181	FNMA Series 2002-33 Class A2		7.50			06/25/2032		251,794
	2,106,488	FNMA Series 2002-80 Class A1		6.50			11/25/2042		2,430,361
	816,721	FNMA Series 2002-W01 Class 2A±		7.27			02/25/2042		947,652
	526,381	FNMA Series 2002-W06 Class 2A		7.25			06/25/2042		592,861
	1,468,562	FNMA Series 2003-26 Class A2		6.00			02/25/2033		1,570,617
	373,290	FNMA Series 2003-W01 Class 2A±		7.31			12/25/2042		425,659
	1,538,869	FNMA Series 2003-W02 Class 1A3		7.50			07/25/2042		1,804,804
	513,403	FNMA Series 2003-W03 Class 1A2		7.00			08/25/2042		591,905
	1,168,198	FNMA Series 2003-W04 Class 4A		7.50			10/25/2042		1,335,055
	1,806,158	FNMA Series 2004-T02 Class 1A3		7.00			11/25/2043		1,999,696
	70,437	FNMA Series 2004-T03 Class 1A3		7.00			02/25/2044		81,773
	316,638	FNMA Series 2004-W01 Class 2A2		7.00			12/25/2033		366,172
	266,161	FNMA Series 2004-W02 Class 5A		7.50			03/25/2044		307,499
	6,855,000	FNMA Series 2004-W09 Class 1A3		6.05			02/25/2044		7,845,976
	1,494,996	FNMA Series 2004-W09 Class 2A3		7.50			02/25/2044		1,757,088
	458,985	FNMA Series 2005-W03 Class 1A		7.50			03/25/2045		516,095
	3,287,093	FNMA Series 2006-004 Class PB		6.00			09/25/2035		3,611,302
	4,124,749	FNMA Series 2007-16 Class AB		6.00			08/25/2035		4,420,378
	4,122,087	FNMA Series 2009-019 Class TA		4.50			12/25/2037		4,259,861
	3,484,727	FNMA Series 2009-047 Class MT		7.00			07/25/2039		3,854,397
	6,118,231	FNMA Series 2009-047 Class PA		4.50			07/25/2039		6,381,462
	4,304,084	FNMA Series 2009-111 Class CL		4.50			03/25/2038		4,377,811
	1,977,221	FNMA Series 2009-22 Class EG		5.00			07/25/2035		2,103,250
	15,969,383	FNMA Series 2010-64 Class BA		5.00			05/25/2040		16,596,604
	1,298,024	FNMA Whole Loan Series 2002-W03 Class A5		7.50			11/25/2041		1,471,221
	535,655	FNMA Whole Loan Series 2002-W04 Class A5		7.50			05/25/2042		628,223
	1,626,837	FNMA Whole Loan Series 2002-W07 Class A5		7.50			02/25/2029		1,895,773
	180,972	FNMA Whole Loan Series 2002-W08 Class A3		7.50			06/25/2042		203,058
	932,526	FNMA Whole Loan Series 2003-W03 Class 1A3		7.50			08/25/2042		1,079,690
	26,917	FNMA Whole Loan Series 2003-W06 Class PT1		10.00			09/25/2042		32,174



84 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

SHORT DURATION GOVERNMENT BOND FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Federal National Mortgage Association (continued)
$	513,092	FNMA Whole Loan Series 2004 W12 Class 1A3		7.00	%		07/25/2044	$	592,599
	2,262,309	FNMA Whole Loan Series 2004-W08 Class 3A		7.50			06/25/2044		2,569,632
	12,709,150	FNMA Whole Loan Series 2004-W11 Class 1A2		6.50			05/25/2044		14,536,091
	1,899,683	FNMA Whole Loan Series 2004-W11 Class 1A4		7.50			05/25/2044		2,227,972
	661,762	FNMA Whole Loan Series 2004-W12 Class 1A4		7.50			07/25/2044		776,122
	232,582	FNMA Whole Loan Series 2004-W14 Class 2A		7.50			07/25/2044		271,519
	769,781	FNMA Whole Loan Series 2005-W01 Class 1A4		7.50			10/25/2044		886,473
	147,006	FNMA Whole Loan Series 2005-W04 Class 1A3		7.00			08/25/2035		174,708
	11,177,695	FNMA Whole Loans Series 2003-W06 Class 3A		6.50			09/25/2042		12,322,890

									402,413,241


Government National Mortgage Association: 2.28%
	3,415,948	GNMA #781496		6.50			09/15/2032		3,882,004
	22,463,055	GNMA #783231		6.00			09/15/2035		24,895,595

									28,777,599


Total Agency Securities (Cost $527,131,193)									530,105,672


Asset Backed Securities: 8.09%
	16,553,000	Ally Master Owner Trust Series 2010-1 Class A±		2.02			01/15/2015		16,879,789
	19,191,000	Ally Master Owner Trust Series 2010-3 Class A		2.88			04/15/2015		19,679,200
	8,210,000	Greenwich Capital Commercial Funding Corporation Series 2005-GGS Class A4		5.24			04/10/2037		8,608,888
	6,999,000	Honda Auto Receivables Owner Trust Series 2010-3 Class A4		0.94			12/21/2016		6,887,102
	6,010,000	Nissan Auto Receivables Owner Trust Series 2010-A Class A4		1.31			09/15/2016		5,964,106
	4,180,102	SLM Student Loan Trust Series 2002-6 Class A4±		0.59			03/15/2019		4,177,392
	3,809,485	SLM Student Loan Trust Series 2005-1 Class A2±		0.38			04/27/2020		3,781,011
	13,661,000	SLM Student Loan Trust Series 2008-2 Class A2±		0.75			01/25/2017		13,680,114
	17,167,000	SLM Student Loan Trust Series 2008-6 Class A2±		0.85			10/25/2017		17,199,168
	5,456,000	USAA Auto Owner Trust Series 2010-1 Class A4		2.14			09/15/2015		5,561,113

Total Asset Backed Securities (Cost $102,545,987)									102,417,883


Collateralized Mortgage Obligations: 6.60%
	2,301,000	Asset Securitization Corporation Commercial Mortgage Pass-Through Series 1996-D3 Class A4±		7.87			10/13/2026		2,359,441
	81,809	Asset Securitization Corporation Series 1996-D3 Class A2±		7.77			10/13/2026		82,934
	2,572,000	Bank of America Commercial Mortgage Incorporated Series 2004-6 Class A3		4.51			12/10/2042		2,601,880
	7,536,000	Commercial Mortgage Asset Trust Series 1999-C1 Class A4		6.98			01/17/2032		7,913,954
	2,420,000	Credit Suisse First Boston Mortgage Securities Corporation Series 2003-CPN1 Class A2		4.60			03/15/2035		2,526,698
	17,697,780	Developers Diversified Realty Corporation Series 2009-DDR1 Class A		3.81			10/14/2022		18,374,327
	12,313,000	Discover Card Master Trust Series 2011-A1 Class A1±		0.61			08/15/2016		12,313,000
	700,000	JPMorgan Chase Commercial Mortgage Securities Corporation Series 2005-LDP5 Class A4±		5.23			12/15/2044		754,334
	765,000	Lehman Brothers UBS Commercial Mortgage Trust Series 2003-C8 Class A4		5.12			11/15/2032		815,864
	3,106,000	Lehman Brothers UBS Commercial Mortgage Trust Series 2005-C7 Class A3±		5.44			11/15/2030		3,256,420
	6,506,000	Merrill Lynch Mortgage Trust Series 2003-KEY1 Class A4		5.24			11/12/2035		6,943,243
	1,968,000	Merrill Lynch Mortgage Trust Series 2005-CIP1 Class A3A		4.95			07/12/2038		1,988,217
	6,000,000	Merrill Lynch Mortgage Trust Series 2005-CKI1 Class A3±		5.24			11/12/2037		6,113,959
	4,232,000	Morgan Stanley Capital I Series 2003-IQ6 Class A4		4.97			12/15/2041		4,507,755
	5,212,963	Morgan Stanley Capital I Series 2005-T17 Class A4		4.52			12/13/2041		5,286,926
	3,252,183	Morgan Stanley Dean Witter Capital I Series 2003-IQ4 Class A2		4.07			05/15/2040		3,356,574
	4,187,000	Morgan Stanley Dean Witter Capital I Series 2004 Class A3		5.03			06/13/2041		4,304,016

Total Collateralized Mortgage Obligations (Cost $83,668,307)									83,499,542



Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 85

SHORT DURATION GOVERNMENT BOND FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
US Treasury Securities: 40.23%

US Treasury Notes: 40.23%
$	71,218,000	US Treasury Note«		0.50	%		11/30/2012	$	71,126,200
	16,000,000	US Treasury Note		4.63			02/29/2012		16,688,128
	62,152,000	US Treasury Note		1.88			06/15/2012		63,356,195
	60,671,000	US Treasury Note		4.13			08/31/2012		64,015,004
	56,011,000	US Treasury Note«		0.63			01/31/2013		55,982,546
	182,378,000	US Treasury Note		0.63			02/28/2013		182,150,028
	55,532,000	US Treasury Note«		1.25			02/15/2014		55,670,833

Total US Treasury Securities (Cost $508,535,983)									508,988,934


Yankee Corporate Bonds and Notes: 2.90%

Financials: 2.90%

Diversified Financial Services
	36,065,000	Finance For Danish Industry		2.00			06/12/2013		36,638,614

Total Yankee Corporate Bonds and Notes (Cost $35,996,331)									36,638,614


Short-Term Investments: 9.25%

Corporate Bonds & Notes: 0.11%
	625,550	Gryphon Funding Limited(v)(a)(i)		0.00			08/05/2011		260,855
	1,954,591	VFNC Corporation(v)(a)††±(i)		0.26			09/29/2011		1,153,208

									1,414,063


Shares				Yield
Investment Companies: 9.14%
	22,157,703	Wells Fargo Advantage Government Money Market Fund(l)(u)		0.01					22,157,703
	93,520,033	Wells Fargo Securities Lending Cash Investments, LLC(v)(l)(u)		0.25					93,520,033

									115,677,736


Total Short-Term Investments (Cost $116,518,143)									117,091,799


Total Investments in Securities (Cost $1,374,395,944)*	108.97	%		1,378,742,444
Other Assets and Liabilities, Net	(8.97	)		(113,444,256	)


Total Net Assets	100.00	%	$	1,265,298,188


(v)		Security represents investment of cash collateral received from securities on loan.

(l)		Investment in an affiliate.

(a)		Security is fair valued by the Management Valuation Team, and in certain instances by the Board of Trustees, in accordance with procedures approved by the Board of Trustees.

††		Securities that may be resold to “qualified institutional buyers” under Rule 144A or securities offered pursuant to Section 4(2) of the Securities Act of 1933, as amended.

±		Variable rate investments.

«		All or a portion of this security is on loan.

(i)		Illiquid security.

(u)		Rate shown is the 7-day annualized yield at period end.

*		Cost for federal income tax purposes is $1,374,675,645 and net unrealized appreciation (depreciation) consists of:


Gross unrealized appreciation	$	7,859,601
Gross unrealized depreciation		(3,792,802	)

Net unrealized appreciation	$	4,066,799

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



86 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

SHORT-TERM BOND FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Agency Securities: 9.60%

Federal Home Loan Bank: 1.68%
$	10,000,000	FHLB		0.75	%		11/21/2011	$	10,029,730


Federal Home Loan Mortgage Corporation: 4.89%
	3,000,000	FHLMC		1.13			07/27/2012		3,024,714
	10,000,000	FHLMC		1.25			08/15/2011		10,047,510
	10,000,000	FHLMC		3.63			10/18/2013		10,634,250
	305,000	FHLMC		5.25			07/18/2011		310,927
	5,233	FHLMC #170151		10.50			01/01/2016		5,940
	8,311	FHLMC #1B0123±		3.03			09/01/2031		8,357
	1,657	FHLMC #360016		10.50			11/01/2017		1,888
	2,235	FHLMC #360056		10.50			02/01/2019		2,607
	1,155	FHLMC #360059		10.50			04/01/2019		1,323
	914	FHLMC #360061		10.50			05/01/2019		1,066
	11,594	FHLMC #360063		10.50			06/01/2019		13,453
	1,656	FHLMC #360065		10.50			07/01/2019		1,932
	344,515	FHLMC #555316		9.00			06/01/2019		388,706
	194,891	FHLMC #555408		10.50			08/01/2018		222,200
	268,609	FHLMC #555500		8.50			09/01/2017		298,252
	457,237	FHLMC #555514		9.00			10/01/2019		538,405
	10,653	FHLMC #786823±		2.79			07/01/2029		11,190
	88,912	FHLMC #789272±		2.62			04/01/2032		92,506
	253,020	FHLMC #865496±		4.78			05/01/2026		265,517
	263,630	FHLMC #A01734		9.00			08/01/2018		301,326
	440,206	FHLMC #G01126		9.50			12/01/2022		508,563
	13,293	FHLMC #G10747		7.50			10/01/2012		13,807
	3,495	FHLMC #G11150		7.50			12/01/2011		3,565
	1,020	FHLMC #G11345		7.50			12/01/2011		1,041
	4,990	FHLMC #G11391		7.50			06/01/2012		5,183
	29,683	FHLMC #G90023		7.00			11/17/2013		30,576
	741,494	FHLMC Structured Pass-Through Securities Series T-42 Class A6		9.50			02/25/2042		859,670
	36,654	FHLMC Structured Pass-Through Securities Series T-57 Class 2A1±		4.06			07/25/2043		36,581
	1,334,924	FHLMC Structured Pass-Through Securities Series T-59 Class 2A1±		3.77			10/25/2043		1,372,677
	114,566	FHLMC USGI FHA Project Loan(i)		7.44			03/15/2013		114,566

									29,118,298


Federal National Mortgage Association: 2.23%
	3,223,687	FNMA		4.00			09/25/2034		3,270,923
	2,914	FNMA #100001		9.00			02/15/2020		3,443
	291,189	FNMA #100042		11.00			10/15/2020		330,927
	88,219	FNMA #100255		8.33			07/15/2020		102,998
	278,124	FNMA #190075		8.50			02/01/2023		302,175
	218,651	FNMA #302507		9.00			11/01/2024		259,944
	28,065	FNMA #313617		8.00			09/01/2023		31,274
	445,055	FNMA #323582		8.00			04/01/2017		495,033
	272,286	FNMA #426828		8.00			09/01/2019		310,687
	146,945	FNMA #426832		8.50			07/01/2018		166,877
	37,876	FNMA #545131		8.00			03/01/2013		39,465
	4,837	FNMA #545157		8.50			11/01/2012		5,097
	137,178	FNMA #545460±		2.43			11/01/2031		143,569
	1,009,610	FNMA #598559		6.50			08/01/2031		1,158,747
	55,992	FNMA #70801		12.00			03/01/2017		65,601
	1,775,588	FNMA #712107		6.00			03/01/2033		1,957,705
	151,946	FNMA Grantor Trust Series 2002-T1 Class A4		9.50			11/25/2031		190,359
	1,132,194	FNMA Grantor Trust Series 2002-T12 Class A4		9.50			05/25/2042		1,250,772



Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 87

SHORT-TERM BOND FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Federal National Mortgage Association (continued)
$	242,423	FNMA Series 1989-29 Class Z		10.00	%		06/25/2019	$	276,138
	183,775	FNMA Series 1989-63 Class Z		9.40			10/25/2019		206,056
	387,719	FNMA Series G95-2 Class IO(c)		10.00			05/25/2020		85,990
	49,405	FNMA Whole Loan Series 2003-W11 Class A1±		3.11			06/25/2033		50,725
	2,267,650	FNMA Whole Loan Series 2003-W6 Class 6A±		4.08			08/25/2042		2,375,973
	201,435	FNMA Whole Loan Series 2003-W6 Class PT4		9.88			10/25/2042		233,936

									13,314,414


Government National Mortgage Association: 0.80%
	66,424	GNMA #780029		9.00			11/15/2024		77,742
	708,962	GNMA #780110		12.50			04/15/2019		745,685
	158,515	GNMA #780267		9.00			11/15/2017		180,677
	87,793	GNMA #780288		8.00			12/15/2023		104,628
	41,293	GNMA #781311		7.50			02/15/2013		42,311
	12,773	GNMA #781540		7.00			05/15/2013		13,011
	14,472	GNMA #927		10.00			02/20/2018		16,249
	3,089,640	GNMA Series 2005-90 Class A		3.76			09/16/2028		3,190,245
	369,643	GNMA Series 2007-69 Class TA		3.96			06/16/2031		372,258

									4,742,806


Small Business Administration: 0.00%
	123,882	SBA #0191(c)(i)(a)		3.68			10/06/2015		8,535


Total Agency Securities (Cost $56,322,271)									57,213,783


Asset Backed Securities: 12.94%
	4,392,112	Aames Mortgage Trust Series 2003-1 Class M1±		1.28			10/25/2033		3,736,154
	587,870	Bank of America Auto Trust Series 2010-1A Class A2††		0.75			06/15/2012		588,051
	7,300,000	Bank of America Credit Card Trust Series 2008-A5 Class A±		1.47			12/16/2013		7,328,599
	3,200,000	BCRR Trust Series 2010-Leaf Class 35A††		4.23			10/22/2011		3,243,076
	1,157,279	BMW Vehicle Owner Trust Series 2010-A Class A2		0.68			09/25/2012		1,158,210
	571,533	CarMax Auto Owner Trust Series 2010-1 Class A2		0.83			11/15/2012		571,893
	3,100,000	Chase Issuance Trust Series 2006-A5 Class A±		0.29			11/15/2013		3,097,781
	1,600,000	Chase Issuance Trust Series 2007-A18 Class A±		0.53			01/15/2015		1,603,348
	6,000,000	Chase Issuance Trust Series 2009-A2 Class A2±		1.82			04/15/2014		6,094,057
	3,585,000	Chase Issuance Trust Series 2009-A3 Class A3		2.40			06/17/2013		3,605,828
	5,500,000	Citibank Credit Card Issuance Trust Series 2009-A1 Class A1±		2.02			03/17/2014		5,587,947
	2,023,156	ContiMortgage Home Equity Trust Series 1996-2 Class(c)(i)		0.54			07/15/2027		81
	3,941,216	ContiMortgage Net Interest Margin Notes Series 1997-A Class A(i)(a)		7.23			10/16/2028		1,232
	12,580,113	Eastman Hill Funding Limited Series 1A Class A2††(i)(a)(c)		0.83			09/29/2031		61,643
	903,588	EquiFirst Mortgage Loan Trust Series 2003-2 Class 3A3±		1.01			09/25/2033		837,842
	741,868	Ford Credit Auto Owner Trust Series 2007-A Class A4A		5.47			06/15/2012		753,565
	3,000,000	GE Equipment Midticket LLC Series 2010-1 Class A2††		0.61			01/14/2013		3,001,084
	2,336,028	Home Equity Asset Trust Series 2003-6 Class M1±		0.96			02/25/2034		1,943,739
	1,593,612	Honda Auto Receivables Owner Trust Series 2010-1 Class A2		0.62			02/21/2012		1,594,169
	2,520,000	Honda Auto Receivables Owner Trust Series 2010-3 Class A2		0.53			01/21/2013		2,520,451
	1,597,065	Hyundai Auto Receivables Trust Series 2010 A Class A2		0.86			11/15/2012		1,598,999
	2,348,166	John Deere Owner Trust Series 2010-A Class A2		0.72			07/16/2012		2,349,444
	3,000,000	Mercedes-Benz Auto Lease Trust Series 2011-1A Class A2††		0.79			04/15/2013		2,992,221
	2,787,565	Mercedes-Benz Auto Receivables Trust Series 2010-1 Class A2		0.70			08/15/2012		2,789,523
	2,500,000	Nissan Auto Lease Trust Series 2010-B Class A2		0.90			05/15/2013		2,504,673
	1,400,000	Nissan Auto Receivables Owner Trust Series 2010-A Class A2		0.55			03/15/2013		1,400,143
	58,870	Residential Asset Securities Corporation Series 2001-KS1 Class A11±		0.73			03/25/2032		55,643
	1,535,178	Structured Asset Investment Loan Trust Series 2003-BC10 Class M1±		1.39			10/25/2033		1,194,662
	1,658,815	Structured Asset Investment Loan Trust Series 2003-BC3 Class M1±		1.69			04/25/2033		1,379,190



88 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

SHORT-TERM BOND FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Asset Backed Securities (continued)
$	59,339	Terwin Mortgage Trust Series 2004-21HE Class 1A1±		1.22	%		12/25/2034	$	53,871
	3,500,000	Toyota Auto Receivables Owner Trust Series 2010-B Class A2		0.74			08/15/2012		3,504,050
	4,000,000	Toyota Auto Receivables Owner Trust Series 2010-C Class A2		0.51			12/17/2012		3,998,888
	789,320	USAA Auto Owner Trust Series 2010-1 Class A2		0.63			06/15/2012		789,435
	2,500,000	Volkswagen Auto Lease Trust Series 2010-A		0.77			01/22/2013		2,501,292
	2,800,000	William Street Funding Corporation Series 2006-3 Class A††±		0.52			06/23/2012		2,674,000

Total Asset Backed Securities (Cost $83,566,387)									77,114,784


Collateralized Mortgage Obligations: 4.39%
	87,349	Bank of America Mortgage Securities Series 2002-K Class 3A1±		2.84			10/20/2032		87,463
	168,276	Citigroup Mortgage Loan Trust Incorporated Series 2004-HYB4 Class AA±		0.59			12/25/2034		154,734
	504,561	Countrywide Home Loans Mortgage Pass-Through Trust Series 2001-HYB1 Class 2A1±		2.12			06/19/2031		476,077
	130,964	Countrywide Home Loans Mortgage Pass-Through Trust Series 2004-20 Class 3A1±		2.42			09/25/2034		79,864
	3,345,275	Credit Suisse First Boston Mortgage Securities Corporation Series 2002-CKP1 Class A3		6.44			12/15/2035		3,451,445
	332,261	Drexel Burnham Lambert CMO Trust Series T Class 4		8.45			09/20/2019		333,465
	61,118	Golden National Mortgage Asset Backed Certificates Series 1998-GN1 Class M2(i)		8.02			02/25/2027		61,392
	586,383	GSMPS Mortgage Loan Trust Series 1998-1 Class A††		8.00			09/19/2027		597,004
	1,880,404	GSMPS Mortgage Loan Trust Series 2004-4 Class 1AF††±		0.66			06/25/2034		1,608,586
	1,418,849	GSMPS Mortgage Loan Trust Series 2004-4 Class 2A1††±		4.31			06/25/2034		1,368,802
	1,376,257	GSMPS Mortgage Loan Trust Series 2006-RP1 Class 1AF1††±		0.61			01/25/2036		1,054,785
	1,728,269	GSMPS Mortgage Loan Trust Series 2006-RP2 Class 1AF1††±		0.66			04/25/2036		1,476,808
	287,434	GSR Mortgage Loan Trust Series 2004-1 Class 2A2±		2.23			04/25/2032		242,631
	3,066,089	Jeffries and Company Series 2010-R7 Class 7A6††		3.25			10/26/2036		3,073,754
	1,297,544	JPMorgan Mortgage Trust Series 2005-A3 Class 7CA1±		2.82			06/25/2035		1,150,697
	20,342	Master Mortgages Trust Series 2002-3 Class 4A1±		2.76			10/25/2032		20,486
	6,478,003	Morgan Stanley Capital I Series 1999-WF1 Class X IO(c)††±		1.15			11/15/2031		227,188
	1,926,814	Nomura Asset Acceptance Corporation Series 2005-AR1 Class 1A1±		2.86			02/25/2035		1,536,097
	3,685,000	Nomura Asset Securities Corporation Series 1998-D6 Class A2±		7.27			03/15/2030		4,023,670
	3,757,143	Residential Finance Limited Partnership Series 2003-C Class B3††±		1.66			09/10/2035		2,851,897
	9,531	Salomon Brothers Mortgage Securities VI Series 1987-3 Class A^		0.08			10/23/2017		9,480
	1,847,102	Structured Asset Securities Corporation Series 1998-RF2 Class A††		8.04			07/15/2027		1,849,566
	10,171	Structured Mortgage Asset Residential Trust Series 1992-5B Class BO(i)^		1.95			06/25/2023		7,991
	172,981	Wilshire Funding Corporation Series 1996-3 Class M2±		3.66			08/25/2032		171,315
	172,980	Wilshire Funding Corporation Series 1996-3 Class M3±		3.66			08/25/2032		166,976
	57,453	Wilshire Funding Corporation Series 1998-2 Class M1		2.00			12/28/2037		55,327

Total Collateralized Mortgage Obligations (Cost $28,690,059)									26,137,500


Corporate Bonds and Notes: 45.53%

Consumer Discretionary: 8.19%

Auto Components: 0.84%
	3,000,000	Autozone Incorporated		5.88			10/15/2012		3,215,196
	1,670,000	Johnson Controls Incorporated		4.88			09/15/2013		1,810,592

									5,025,788


Diversified Consumer Services: 0.70%
	2,000,000	Cargill Incorporated††		5.20			01/22/2013		2,143,900
	2,000,000	Life Technologies Corporation		3.38			03/01/2013		2,059,012

									4,202,912



Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 89

SHORT-TERM BOND FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Hotels, Restaurants & Leisure: 1.20%
$	2,000,000	Darden Restaurants Incorporated		5.63	%		10/15/2012	$	2,129,180
	2,500,000	Starwood Hotels & Resorts Worldwide Incorporated		7.88			10/15/2014		2,850,000
	2,000,000	Yum! Brands Incorporated		7.70			07/01/2012		2,164,774

									7,143,954


Leisure Equipment & Products: 0.77%
	4,225,000	Hasbro Incorporated		6.13			05/15/2014		4,594,096


Media: 3.56%
	2,500,000	Comcast Corporation		10.63			07/15/2012		2,805,970
	2,000,000	Directv Holdings		4.75			10/01/2014		2,151,352
	2,000,000	Historic TW Incorporated		9.13			01/15/2013		2,258,232
	2,860,000	Interpublic Group COS Incorporated		6.25			11/15/2014		3,106,675
	3,000,000	Sirius XM Radio Incorporated††		9.75			09/01/2015		3,393,750
	2,000,000	TCM LLC††		3.55			01/15/2015		2,028,418
	2,000,000	Time Warner Cable Incorporated		5.40			07/02/2012		2,110,022
	3,360,000	Viacom Incorporated		5.75			04/30/2011		3,378,927

									21,233,346


Multiline Retail: 0.35%
	2,000,000	Macy’s Incorporated		5.35			03/15/2012		2,070,000


Specialty Retail: 0.77%
	3,035,000	Best Buy Company Incorporated		6.75			07/15/2013		3,354,777
	1,000,000	Staples Incorporated		9.75			01/15/2014		1,207,950

									4,562,727


Consumer Staples: 2.36%

Beverages: 0.72%
	1,000,000	Dr Pepper Snapple Group Incorporated		1.70			12/21/2011		1,008,231
	3,000,000	Miller Brewing Corporation††		5.50			08/15/2013		3,280,740

									4,288,971


Food & Staples Retailing: 0.57%
	1,699,194	CVS Caremark Corporation††		7.77			01/10/2012		1,792,650
	1,600,000	Safeway Incorporated		6.50			03/01/2011		1,600,000

									3,392,650


Food Products: 0.68%
	1,022,000	Kraft Foods Incorporated		6.25			06/01/2012		1,086,131
	3,000,000	Wrigley WM Jr Company††±		1.68			06/28/2011		3,000,264

									4,086,395


Tobacco: 0.39%
	2,000,000	Altria Group Incorporated		7.75			02/06/2014		2,301,702


Energy: 3.51%

Energy Equipment & Services: 1.65%
	2,000,000	Indiana Michigan Power Company		6.38			11/01/2012		2,140,898
	3,300,000	Kinder Morgan Energy Partners LP		7.13			03/15/2012		3,493,571
	2,000,000	Nevada Power Company		6.50			04/15/2012		2,108,952
	2,000,000	Weatherford International Limited		5.15			03/15/2013		2,112,948

									9,856,369



90 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

SHORT-TERM BOND FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Oil, Gas & Consumable Fuels: 1.86%
$	2,000,000	Consol Energy Incorporated		7.88	%		03/01/2012	$	2,110,000
	1,500,000	DTE Energy Company		7.05			06/01/2011		1,522,298
	2,000,000	Energy Transfer Partners LP		5.65			08/01/2012		2,105,970
	2,000,000	Nexen Incorporated		5.05			11/20/2013		2,139,030
	3,000,000	Valero Energy Corporation		6.88			04/15/2012		3,181,608

									11,058,906


Financials: 18.21%

Commercial Banks: 5.53%
	2,630,000	ABN Amro Bank NV††		3.00			01/31/2014		2,623,922
	3,430,000	Bank of Nova Scotia††		1.65			10/29/2015		3,278,332
	3,000,000	Canadian Imperial Bank††		2.75			01/27/2016		2,997,768
	3,000,000	Credit Suisse New York		2.20			01/14/2014		3,012,273
	1,195,000	Hudson United Bank Mahwah NJ Series BKNT		7.00			05/15/2012		1,281,495
	4,000,000	Inter-American Development Bank±		0.76			05/20/2014		4,054,028
	2,000,000	Key Bank NA		5.50			09/17/2012		2,123,054
	3,240,000	M&I Marshall & Ilsley Bank		5.25			09/04/2012		3,394,545
	1,200,000	PNC Funding Corporation±		0.50			04/01/2012		1,203,205
	3,115,000	Royal Bank of Scotland plc		3.95			09/21/2015		3,105,191
	2,760,000	Standard Chartered plc††		3.85			04/27/2015		2,841,464
	3,000,000	SwedBank††		3.00			12/22/2011		3,057,363

									32,972,640


Consumer Finance: 0.37%
	2,000,000	Capital One Financial Corporation		6.25			11/15/2013		2,217,356


Diversified Financial Services: 7.11%
	2,000,000	American Express Centurion		5.55			10/17/2012		2,130,094
	2,600,000	American Honda Financial Corporation††		2.38			03/18/2013		2,635,789
	5,000,000	Bank of America Corporation		3.13			06/15/2012		5,166,630
	1,600,000	Bank of New York Mellon Corporation±		0.46			06/29/2012		1,603,366
	2,000,000	CME Group Incorporated		5.75			02/15/2014		2,225,150
	3,000,000	ERAC USA Finance Company††		2.25			01/10/2014		2,996,235
	2,000,000	Fifth Third Bancorp Cincinnati OH±		0.42			05/17/2013		1,970,462
	3,000,000	General Electric Capital Corporation		4.80			05/01/2013		3,201,249
	1,000,000	HSBC Finance Corporation		5.70			06/01/2011		1,012,295
	2,000,000	Huntington Capital Trust I±		1.00			02/01/2027		1,400,948
	1,355,000	Jefferies Group Incorporated		7.75			03/15/2012		1,441,812
	5,300,000	JPMorgan Chase & Company Series 3±		0.55			12/26/2012		5,327,708
	1,000,000	Mass Mutual Global Funding II††		3.63			07/16/2012		1,034,149
	3,000,000	Morgan Stanley		2.88			01/24/2014		3,023,901
	4,000,000	Morgan Stanley		3.25			12/01/2011		4,088,780
	3,000,000	SLM Corporation Series MTN		5.13			08/27/2012		3,113,160

									42,371,728


Insurance: 2.13%
	3,000,000	American International Group Incorporated		4.25			05/15/2013		3,109,128
	2,035,000	Genworth Life Institutional Funding Trust††		5.88			05/03/2013		2,149,284
	1,000,000	Metropolitan Life Global Funding I††		2.00			01/10/2014		996,814
	2,000,000	Metropolitan Life Global Funding I††		5.13			04/10/2013		2,141,538
	2,000,000	New York Life Global Funding††		5.25			10/16/2012		2,139,904
	2,000,000	Pricoa Global Funding††		5.40			10/18/2012		2,129,890

									12,666,558



Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 91

SHORT-TERM BOND FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Real Estate Investment Trusts (REITs): 3.07%
$	1,054,000	Avalonbay Communities Incorporated Series MTN		5.50	%		01/15/2012	$	1,093,095
	3,000,000	Digital Realty Trust LP		4.50			07/15/2015		3,090,492
	1,000,000	Federal Realty Investment Trust		5.95			08/15/2014		1,106,825
	2,000,000	HCP Incorporated		5.63			02/28/2013		2,125,544
	2,000,000	Healthcare Realty Trust Incorporated		5.13			04/01/2014		2,105,160
	465,000	Healthcare Realty Trust Incorporated		8.13			05/01/2011		470,360
	2,499,000	HRPT Properties Trust±		0.90			03/16/2011		2,498,893
	735,000	Nationwide Health Properties Incorporated		6.50			07/15/2011		749,358
	1,720,000	Nationwide Health Properties Incorporated		8.25			07/01/2012		1,832,634
	3,000,000	Ventas Realty Limited Partnership		9.00			05/01/2012		3,204,468

									18,276,829


Health Care: 2.62%

Health Care Equipment & Supplies: 0.36%
	2,000,000	Boston Scientific Corporation		6.25			11/15/2015		2,151,884


Health Care Providers & Services: 2.26%
	3,450,000	AmerisourceBergen Corporation		5.88			09/15/2015		3,833,447
	2,925,000	Anthem Incorporated		6.80			08/01/2012		3,154,870
	2,000,000	Coventry Health Care Incorporated		5.88			01/15/2012		2,076,564
	2,000,000	McKesson Corporation		6.50			02/15/2014		2,253,496
	2,000,000	UnitedHealth Group Incorporated		4.88			02/15/2013		2,127,996

									13,446,373


Industrials: 3.38%

Aerospace & Defense: 0.54%
	3,000,000	BAE Systems Holdings Incorporated††		4.95			06/01/2014		3,199,284


Building Products: 0.34%
	2,000,000	Black & Decker Corporation		7.13			06/01/2011		2,030,930


Commercial Services & Supplies: 1.03%
	2,000,000	Allied Waste North America		6.38			04/15/2011		2,012,114
	2,000,000	Brambles USA Incorporation††		3.95			04/01/2015		2,015,700
	2,000,000	Equifax Incorporated		4.45			12/01/2014		2,110,634

									6,138,448


Electrical Equipment: 0.72%
	2,000,000	Agilent Technologies Incorporated		4.45			09/14/2012		2,082,282
	2,000,000	Roper Industries Incorporated		6.63			08/15/2013		2,214,484

									4,296,766


Road & Rail: 0.37%
	2,100,000	CSX Corporation		6.30			03/15/2012		2,208,368


Transportation Infrastructure: 0.38%
	2,233,000	Ryder System Incorporated		5.95			05/02/2011		2,249,924


Information Technology: 0.94%

Computers & Peripherals: 0.17%
	1,000,000	Seagate Technology HDD Holdings		6.38			10/01/2011		1,022,500


Office Electronics: 0.36%
	1,855,000	Xerox Corporation		8.25			05/15/2014		2,170,712



92 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

SHORT-TERM BOND FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Semiconductors & Semiconductor Equipment: 0.41%
$	2,395,000	Maxim Integrated Product		3.45	%		06/14/2013	$	2,442,088


Materials: 1.15%

Chemicals: 0.18%
	1,000,000	Mosaic Company††		7.63			12/01/2016		1,082,500


Metals & Mining: 0.36%
	2,000,000	Teck Cominco Incorporated		7.00			09/15/2012		2,122,456


Paper & Forest Products: 0.61%
	3,530,000	International Paper Company		6.75			09/01/2011		3,631,029


Telecommunication Services: 2.10%

Diversified Telecommunication Services: 1.23%
	1,000,000	Cellco Partnership/Verizon Wireless Capital LLC		7.38			11/15/2013		1,152,320
	2,000,000	Crown Castle Towers LLC††		3.21			08/15/2035		1,977,604
	2,500,000	Qwest Corporation±		3.55			06/15/2013		2,612,500
	1,500,000	Verizon New England Incorporated		6.50			09/15/2011		1,547,132

									7,289,556


Wireless Telecommunication Services: 0.87%
	945,000	Alltel Corporation		7.00			07/01/2012		1,018,429
	2,000,000	Motorola Incorporated		8.00			11/01/2011		2,090,770
	2,000,000	SBA Tower Trust††		4.25			04/15/2040		2,090,374

									5,199,573


Utilities: 3.07%

Electric Utilities: 3.07%
	2,000,000	Allegheny Energy Supply††		8.25			04/15/2012		2,136,176
	2,000,000	CenterPoint Energy Houston Electric LLC Series U		7.00			03/01/2014		2,278,976
	700,000	Commonwealth Edison Company Series 105		5.40			12/15/2011		726,054
	3,000,000	Duke Energy Ohio Incorporated		5.70			09/15/2012		3,209,811
	3,000,000	FPL Group Capital Incorporation		2.60			09/01/2015		2,926,920
	1,000,000	Great Plains Energy Incorporated		2.75			08/15/2013		1,013,329
	3,667,000	Niagara Mohawk Power Corporation††		3.55			10/01/2014		3,783,827
	2,000,000	PECO Energy Company		5.00			10/01/2014		2,201,484

									18,276,577


Total Corporate Bonds and Notes (Cost $265,806,439)									271,281,895


Municipal Bonds and Notes: 7.43%

Alabama: 0.28%
	1,570,000	Courtland AL Industrial Development Board International Paper Company Project Series A (IDR)		5.00			11/01/2013		1,662,112


California: 1.43%
	3,000,000	California Pollution Control Financing Authority (Resource Recovery Revenue)±§		1.88			08/01/2023		3,000,060
	2,000,000	Northern California Power Agency Series B (Electric Revenue)		2.75			07/01/2012		2,002,060
	1,500,000	San Francisco CA International Airport Series E (Airport Revenue)		1.87			05/01/2012		1,504,740
	2,000,000	University of California Build America Bonds (University Revenue)±§		1.99			05/15/2050		2,014,100

									8,520,960



Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 93

SHORT-TERM BOND FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Florida: 0.62%
$	1,724,375	Educational Funding of the South Incorporated (Education Revenue, GTD Student Loan Insured)±		0.55	%		09/02/2013	$	1,723,461
	1,870,000	Miami Dade County FL School Board COP (Lease Revenue)		5.00			05/01/2013		1,980,872

									3,704,333


Georgia: 0.53%
	3,000,000	Georgia Municipal Gas Authority Taxable Gas Portfolio III Series F (Utilities Revenue)		4.77			08/01/2015		3,123,630


Louisiana: 0.50%
	3,000,000	State of Louisiana Gas and Fuels Tax (Utilities Revenue)±		2.76			05/01/2043		2,988,510


Michigan: 0.34%
	2,000,000	Wayne County MI Series B-1 (GO-Local)±§		2.77			09/15/2012		1,999,420


New York: 0.40%
	515,000	Babylon NY IDAG Taxable Covanta Babylon Series B (IDR)§		4.67			01/01/2012		524,842
	1,870,000	Onondaga County NY Property Tax Taxable (Lease Revenue)		3.50			04/01/2013		1,870,860

									2,395,702


Ohio: 0.48%
	2,885,000	Columbus Franklin County OH Finance Authority Research and Development (IDR)		3.45			02/15/2015		2,851,794


Oregon: 0.50%
	3,200,000	Oregon School Boards Association GO Series A (GO-Local)^		3.34			06/30/2013		2,960,160


South Carolina: 0.50%
	3,000,000	York County SC Pollution Control (Resource Recovery Revenue)±		1.00			09/15/2024		2,999,700


Texas: 0.58%
	3,000,000	Port Arthur TX Industrial Development Corporation Air Products and Chemicals Project (IDR)±		0.70			04/01/2035		3,000,000
	480,000	Reeves County TX Lease Rentals Law Enforcement (Lease Revenue, ACA Insured)		5.75			03/01/2012		479,410

									3,479,410


West Virginia: 0.50%
	3,000,000	West Virginia Solid Waste Disposal Facilities Amos Project Series A (Utilities Revenue)±§		2.00			01/01/2041		3,004,380


Wisconsin: 0.77%
	2,500,000	Marshfield WI Taxable BAN Series B (Electric Revenue)		2.00			12/01/2011		2,519,450
	2,000,000	Menomonee Falls WI (GO-Local)		4.25			11/01/2014		2,089,460

									4,608,910


Total Municipal Bonds and Notes (Cost $44,231,842)									44,299,021


Yankee Corporate Bonds and Notes: 11.14%

Consumer Discretionary: 1.06%

Media: 0.69%
	2,500,000	Pearson Finance Two plc††		5.50			05/06/2013		2,694,248
	1,335,000	Vivendi SA††		5.75			04/04/2013		1,439,954

									4,134,202


Multiline Retail: 0.37%
	2,000,000	Wesfarmers Limited††		7.00			04/10/2013		2,200,942



94 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

SHORT-TERM BOND FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Consumer Staples: 0.85%

Food & Staples Retailing: 0.85%
$	2,000,000	Delhaize Group		5.88	%		02/01/2014	$	2,192,456
	2,775,000	Woolworths Limited††		5.25			11/15/2011		2,867,391

									5,059,847


Financials: 5.18%

Capital Markets: 0.92%
	3,000,000	BP Capital Markets plc		5.25			11/07/2013		3,257,055
	2,005,000	Macquarie Group Limited††		7.30			08/01/2014		2,236,680

									5,493,735


Commercial Banks: 3.53%
	4,000,000	Australia & New Zealand Banking Group Limited††±		0.58			06/18/2012		4,005,116
	2,000,000	Banco Santander Chile††		2.88			11/13/2012		1,995,586
	4,000,000	Commonwealth Bank of Australia±		0.75			07/23/2014		4,028,464
	4,000,000	European Investment Bank		2.63			11/15/2011		4,061,884
	2,910,000	Lloyds TSB Bank plc††		4.38			01/12/2015		2,933,405
	4,000,000	Westpac Banking Corporation††±		0.49			12/14/2012		4,001,348

									21,025,803


Diversified Financial Services: 0.73%
	2,000,000	BAT International Finance plc††		8.13			11/15/2013		2,326,764
	2,000,000	UBS AG Stamford CT		2.25			08/12/2013		2,021,978

									4,348,742


Industrials: 0.76%

Building Products: 0.36%
	2,000,000	Tyco Electronics Group SA		6.00			10/01/2012		2,140,502


Machinery: 0.40%
	2,000,000	Ingersoll Rand Gl Holding Company		9.50			04/15/2014		2,410,078


Materials: 0.97%

Metals & Mining: 0.97%
	2,000,000	Arcelormittal		5.38			06/01/2013		2,145,628
	3,000,000	Rio Tinto Finance USA Limited		8.95			05/01/2014		3,631,971

									5,777,599


Telecommunication Services: 2.32%

Diversified Telecommunication Services: 2.00%
	3,000,000	Deutsche Telekom International Finance BV		5.25			07/22/2013		3,252,501
	2,500,000	PCCW HKT Capital Limited††		8.00			11/15/2011		2,603,125
	1,500,000	Telecom Italia Capital		5.25			11/15/2013		1,567,463
	1,700,000	Telecom Italia Capital		6.20			07/18/2011		1,732,448
	2,510,000	Telefonos de Mexico SA		5.50			01/27/2015		2,726,146

									11,881,683


Wireless Telecommunication Services: 0.32%
	2,000,000	Telefonica Moviles Chile††		2.88			11/09/2015		1,909,989


Total Yankee Corporate Bonds and Notes (Cost $64,622,279)									66,383,122



Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 95

SHORT-TERM BOND FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
US Treasury Securities: 4.12%

US Treasury Notes: 4.12%
$	19,000,000	US Treasury Note«		1.00	%		07/15/2013	$	19,063,840
	185,000	US Treasury Note		1.25			08/31/2015		179,710
	1,095,000	US Treasury Note		1.38			10/15/2012		1,110,014
	1,795,000	US Treasury Note		1.38			11/15/2012		1,819,541
	1,340,000	US Treasury Note«		1.38			11/30/2015		1,300,218
	665,000	US Treasury Note		1.88			02/28/2014		678,976
	335,000	US Treasury Note		2.13			05/31/2015		339,737
	25,000	US Treasury Note		4.88			06/30/2012		26,496

Total US Treasury Securities (Cost $24,489,661)									24,518,532


Term Loans: 0.29%
	1,750,611	Georgia Pacific Corporation		2.30			12/21/2012		1,750,279

Total Term Loans (Cost $1,729,130)									1,750,279


Short-Term Investments: 4.35%

Commercial Paper: 1.01%
	3,000,000	Oakland-Alameda County		6.80			03/01/2011		3,000,000
	3,000,000	Ohio State Water Authority		2.25			04/01/2011		3,000,000

									6,000,000


Corporate Bonds & Notes: 0.15%
	396,723	Gryphon Funding Limited(v)(i)(a)		0.00			08/05/2011		165,433
	1,239,600	VFNC Corporation(v)††(i)(a)±		0.26			09/29/2011		731,364

									896,797


Shares				Yield
Investment Companies: 3.14%
	17,830,815	Wells Fargo Advantage Cash Investment Money Market Fund(l)(u)		0.12					17,830,815
	916,315	Wells Fargo Securities Lending Cash Investments, LLC(l)(v)(u)		0.25					916,315

									18,747,130


Principal					Interest Rate
US Treasury Bills: 0.05%
$	300,000	US Treasury Bill^#				0.12	03/24/2011		299,977


Total Short-Term Investments (Cost $25,580,041)									25,943,904


Total Investments in Securities (Cost $595,038,109)*			99.79	%					594,642,820
Other Assets and Liabilities, Net			0.21						1,265,812


Total Net Assets			100.00	%				$	595,908,632



96 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

SHORT-TERM BOND FUND


(l)		Investment in an affiliate.

(v)		Security represents investment of cash collateral received from securities on loan.

(c)		Interest-only securities entitle holders to receive only the interest payments on the underlying mortgages. The principal amount shown is the notional amount of the underlying mortgages. Interest rate disclosed represents the coupon rate.

(u)		Rate shown is the 7-day annualized yield at period end.

††		Securities that may be resold to “qualified institutional buyers” under Rule 144A or securities offered pursuant to Section 4(2) of the Securities Act of 1933, as amended.

(i)		Illiquid security.

«		All or a portion of this security is on loan.

(a)		Security is fair valued by the Management Valuation Team, and in certain instances by the Board of Trustees, in accordance with procedures approved by the Board of Trustees.

±		Variable rate investments.

§		These securities are subject to a demand feature which reduces the effective maturity.

^		Zero coupon security. Rate represents yield to maturity.

#		Security pledged as collateral for futures transactions.

*		Cost for federal income tax purposes is $595,038,109 and net unrealized appreciation (depreciation) consists of:


Gross unrealized appreciation	$	11,233,454
Gross unrealized depreciation		(11,628,743	)

Net unrealized depreciation	$	(395,289	)

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



Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 97

SHORT-TERM HIGH YIELD BOND FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Collateralized Mortgage Obligations: 0.01%
$	101,705	Salomon Brothers Mortgage Securities VII Series 1994-5 Class B2±		1.54	%		04/25/2024	$	87,991

Total Collateralized Mortgage Obligations (Cost $100,229)									87,991


Corporate Bonds and Notes: 60.43%

Consumer Discretionary: 16.78%

Auto Components: 1.04%
	3,000,000	Tenneco Incorporated		8.13			11/15/2015		3,210,000
	3,000,000	TRW Automotive Incorporated††		7.00			03/15/2014		3,300,000

									6,510,000


Diversified Consumer Services: 1.51%
	2,000,000	Service Corporation International		6.75			04/01/2015		2,115,000
	3,740,000	Service Corporation International		7.38			10/01/2014		4,081,275
	3,250,000	Stewart Enterprises Incorporated Class A		6.25			02/15/2013		3,250,000

									9,446,275


Hotels, Restaurants & Leisure: 1.92%
	2,000,000	Ameristar Casinos Incorporated		9.25			06/01/2014		2,150,000
	1,000,000	Firekeepers Development Authority††		13.88			05/01/2015		1,191,250
	5,000,000	Pokagon Gaming Authority††		10.38			06/15/2014		5,212,500
	3,000,000	Starwood Hotels & Resorts Worldwide Incorporated		7.88			10/15/2014		3,420,000

									11,973,750


Household Durables: 1.78%
	3,000,000	DR Horton Incorporated		6.13			01/15/2014		3,165,000
	2,500,000	Jarden Corporation		8.00			05/01/2016		2,737,500
	2,107,000	Mohawk Industries Incorporated Series D		7.20			04/15/2012		2,201,815
	3,000,000	Pulte Homes Incorporated		5.25			01/15/2014		3,030,000

									11,134,315


Media: 7.14%
	2,000,000	Belo Corporation		6.75			05/30/2013		2,132,500
	2,000,000	Catalina Marketing Corporation††		10.50			10/01/2015		2,165,000
	2,000,000	CCH II Capital Corporation		13.50			11/30/2016		2,422,500
	3,000,000	Charter Communication OPT LLC Capital††		8.00			04/30/2012		3,157,500
	5,000,000	CSC Holdings LLC		8.50			04/15/2014		5,600,000
	6,505,000	EchoStar DBS Corporation		7.00			10/01/2013		6,992,875
	3,500,000	Gannett Companies Incorporated		6.38			04/01/2012		3,631,250
	5,500,000	Lamar Media Corporation Series C		9.75			04/01/2014		6,393,750
	5,000,000	Lin Television Corporation		6.50			05/15/2013		5,025,000
	2,500,000	Rainbow National Services LLC††		8.75			09/01/2012		2,509,375
	2,000,000	Sirius XM Radio Incorporated††		9.75			09/01/2015		2,262,500
	2,000,000	XM Satellite Radio Holdings Incorporated††		13.00			08/01/2013		2,385,000

									44,677,250


Multiline Retail: 1.20%
	2,000,000	JCPenney Corporation Incorporated		9.00			08/01/2012		2,170,000
	5,000,000	Macy’s Incorporated		5.75			07/15/2014		5,337,500

									7,507,500


Specialty Retail: 1.55%
	5,000,000	Avis Budget Car Rental LLC±		2.81			05/15/2014		4,912,500
	600,000	GameStop Corporation		8.00			10/01/2012		614,250
	4,000,000	Limited Brands Incorporated		5.25			11/01/2014		4,185,000

									9,711,750



98 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

SHORT-TERM HIGH YIELD BOND FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Textiles, Apparel & Luxury Goods: 0.64%
$	4,000,000	Hanesbrands Incorporated±		3.83	%		12/15/2014	$	4,000,000


Consumer Staples: 3.44%

Beverages: 0.97%
	5,385,000	Constellation Brands Incorporated		8.38			12/15/2014		6,058,125


Food & Staples Retailing: 0.94%
	3,750,000	Albertsons Incorporated		7.25			05/01/2013		3,787,500
	1,972,530	CVS Caremark Corporation††		7.77			01/10/2012		2,081,020

									5,868,520


Food Products: 1.53%
	3,500,000	Dole Food Company Incorporated		13.88			03/15/2014		4,283,125
	4,500,000	Smithfield Foods Incorporated		10.00			07/15/2014		5,310,000

									9,593,125


Energy: 9.79%

Oil, Gas & Consumable Fuels: 9.79%
	1,658,000	Arch Western Finance LLC		6.75			07/01/2013		1,674,580
	2,000,000	Berry Petroleum Companies Class A		10.25			06/01/2014		2,320,000
	4,000,000	Chesapeake Energy Corporation		7.63			07/15/2013		4,460,000
	2,000,000	Chesapeake Energy Corporation		9.50			02/15/2015		2,480,000
	3,000,000	Comstock Resources Incorporated		6.88			03/01/2012		3,007,500
	2,510,000	Consol Energy Incorporated		7.88			03/01/2012		2,648,050
	5,000,000	El Paso Corporation		6.88			06/15/2014		5,463,870
	3,250,000	Forest Oil Corporation		8.50			02/15/2014		3,615,625
	6,000,000	Foundation PA Coal Company		7.25			08/01/2014		6,120,000
	3,000,000	Holly Energy Partners LP		6.25			03/01/2015		2,962,500
	5,000,000	Kinder Morgan Incorporated		5.15			03/01/2015		5,137,500
	3,000,000	Newfield Exploration Company		6.63			09/01/2014		3,067,500
	3,500,000	Petrohawk Energy Corporation		10.50			08/01/2014		4,025,000
	4,000,000	Plains Exploration & Production Company		7.75			06/15/2015		4,200,000
	1,500,000	Plains Exploration & Production Company		10.00			03/01/2016		1,702,500
	3,000,000	Quicksilver Resources Incorporated		8.25			08/01/2015		3,097,500
	2,000,000	Tesoro Corporation		6.25			11/01/2012		2,105,000
	3,000,000	Whiting Petroleum Corporation		7.00			02/01/2014		3,195,000

									61,282,125


Financials: 7.26%

Commercial Banks: 0.48%
	3,000,000	Regions Financial Corporation		7.00			03/01/2011		3,000,000


Consumer Finance: 4.23%
	5,500,000	Ford Motor Credit Company LLC		8.70			10/01/2014		6,272,272
	1,000,000	GMAC LLC		6.75			12/01/2014		1,070,000
	3,000,000	GMAC LLC		7.50			12/31/2013		3,270,000
	5,000,000	Ineos Finance plc††		9.00			05/15/2015		5,487,500
	3,000,000	International Lease Finance Corporation		4.75			01/13/2012		3,048,750
	3,000,000	International Lease Finance Corporation††		6.50			09/01/2014		3,235,500
	4,000,000	SLM Corporation Series MTNA		5.00			10/01/2013		4,135,776

									26,519,798



Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 99

SHORT-TERM HIGH YIELD BOND FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Diversified Financial Services: 1.24%
$	3,000,000	Ally Financial Incorporated		4.50	%		02/11/2014	$	3,030,000
	4,500,000	PHH Corporation		7.13			03/01/2013		4,691,250

									7,721,250


Real Estate Investment Trusts (REITs): 1.31%
	3,500,000	Senior Housing Properties Trust		8.63			01/15/2012		3,666,537
	4,250,000	Ventas Realty Limited Partnership		9.00			05/01/2012		4,539,663

									8,206,200


Health Care: 1.67%

Health Care Equipment & Supplies: 0.57%
	3,500,000	Fresenius Medical Care Capital Trust IV		7.88			06/15/2011		3,535,000


Health Care Providers & Services: 1.10%
	2,000,000	Health Management plc		6.13			04/15/2016		2,030,000
	1,000,000	Omnicare Incorporated		6.13			06/01/2013		1,003,750
	3,500,000	Tenet Healthcare Corporation		9.00			05/01/2015		3,850,000

									6,883,750


Industrials: 8.63%

Aerospace & Defense: 1.24%
	3,250,000	Geoeye Incorporated		9.63			10/01/2015		3,664,375
	4,000,000	L-3 Communications Corporation		5.88			01/15/2015		4,078,000

									7,742,375


Commercial Services & Supplies: 3.26%
	4,000,000	Acco Brands Corporation		10.63			03/15/2015		4,520,000
	4,000,000	Corrections Corporation of America		6.25			03/15/2013		4,005,000
	5,000,000	Deluxe Corporation		5.00			12/15/2012		5,212,500
	3,500,000	FTI Consulting Incorporated		7.75			10/01/2016		3,670,625
	3,000,000	Iron Mountain Incorporated		6.63			01/01/2016		3,015,000

									20,423,125


Construction & Engineering: 0.52%
	3,000,000	Toll Brothers Finance Corporation		5.95			09/15/2013		3,128,772
	155,000	Toll Brothers Finance Corporation«		6.88			11/15/2012		164,741

									3,293,513


Machinery: 2.68%
	7,085,000	SPX Corporation		7.63			12/15/2014		7,758,075
	5,000,000	Terex Corporation		10.88			06/01/2016		5,850,000
	3,000,000	Westinghouse Air Brake Technology		6.88			07/31/2013		3,150,000

									16,758,075


Trading Companies & Distributors: 0.93%
	5,000,000	United Rentals North America		10.88			06/15/2016		5,812,500


Materials: 6.19%

Containers & Packaging: 2.62%
	4,000,000	Ball Corporation		7.13			09/01/2016		4,380,000
	4,000,000	Owens-Brockway Glass Container Incorporated		6.75			12/01/2014		4,095,000
	3,000,000	Rock-Tenn Company		8.20			08/15/2011		3,075,000
	4,500,000	Silgan Holdings Incorporated		7.25			08/15/2016		4,860,000

									16,410,000



100 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

SHORT-TERM HIGH YIELD BOND FUND


Principal		Security Name	Interest Rate			Maturity Date	Value
Metals & Mining: 1.58%
$	2,400,000	FMG Resources Limited††		7.00	%	11/01/2015	$	2,490,000
	4,000,000	Steel Dynamics Incorporated		7.38		11/01/2012		4,250,000
	3,000,000	United States Steel Corporation		5.65		06/01/2013		3,120,000

								9,860,000


Paper & Forest Products: 1.99%
	1,500,000	Georgia-Pacific LLC††		7.00		01/15/2015		1,552,500
	2,834,000	Neenah Paper Incorporated		7.38		11/15/2014		2,894,223
	1,305,000	PE Paper Escrow GmbH††		12.00		08/01/2014		1,507,275
	2,500,000	UPM Kymmene Corporation††		5.63		12/01/2014		2,625,000
	3,500,000	Verso Paper Holdings		11.50		07/01/2014		3,858,750

								12,437,748


Telecommunication Services: 5.46%

Diversified Telecommunication Services: 4.56%
	4,000,000	Cincinnati Bell Incorporated		7.00		02/15/2015		4,080,000
	4,250,000	Frontier Communications Corporation		8.25		05/01/2014		4,775,938
	5,500,000	Qwest Communications International Incorporated Series B		7.50		02/15/2014		5,582,500
	4,000,000	SBA Telecommunications Incorporated		8.00		08/15/2016		4,360,000
	5,000,000	Sprint Capital Corporation		8.38		03/15/2012		5,306,250
	4,000,000	Windstream Corporation		8.13		08/01/2013		4,405,000

								28,509,688


Wireless Telecommunication Services: 0.90%
	5,000,000	Crown Castle International Corporation		9.00		01/15/2015		5,625,000


Utilities: 1.21%

Electric Utilities: 0.82%
	2,500,000	IPALCO Enterprises Incorporated		8.63		11/14/2011		2,606,250
	2,500,000	Mirant Americas Generation LLC		8.30		05/01/2011		2,518,750

								5,125,000


Independent Power Producers & Energy Traders: 0.39%
	2,250,000	AES Corporation		7.75		03/01/2014		2,446,875


Total Corporate Bonds and Notes (Cost $369,103,841)								378,072,632


Municipal Bonds and Notes: 1.21%

Michigan: 0.64%
	4,000,000	Wayne County MI (Miscellaneous Revenue)±		4.76		09/15/2012		3,997,960


New Jersey: 0.32%
	2,000,000	New Jersey Casino Reinvestment Development Authority (Miscellaneous Revenue)		5.14		06/01/2015		1,986,820


Other: 0.25%
	1,585,000	Guam Power Authority (Electric Revenue)		6.00		10/01/2011		1,580,261


Total Municipal Bonds and Notes (Cost $7,570,665)								7,565,041


Yankee Corporate Bonds and Notes: 3.97%

Consumer Discretionary: 0.90%

Media: 0.90%
	5,589,000	Videotron Limited		6.88		01/15/2014		5,665,849



Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 101

SHORT-TERM HIGH YIELD BOND FUND


Principal		Security Name	Interest Rate			Maturity Date			Value
Financials: 0.83%

Consumer Finance: 0.83%
$	4,500,000	Virgin Media Finance plc		9.50	%		08/15/2016		$	5,191,875


Information Technology: 0.54%

Computers & Peripherals: 0.54%
	2,899,000	Seagate Technology International††		10.00			05/01/2014			3,355,593

								��
Materials: 1.08%

Chemicals: 0.58%
	3,500,000	Nova Chemicals Corporation		6.50			01/15/2012			3,605,000


Paper & Forest Products: 0.50%
	3,000,000	Sappi Limited††		6.75			06/15/2012			3,127,500


Telecommunication Services: 0.62%

Wireless Telecommunication Services: 0.62%
	1,838,000	Intelsat Subsidiary Holding Company Limited		8.50			01/15/2013			1,849,488
	2,000,000	Intelsat Subsidiary Holding Company Limited		8.88			01/15/2015			2,060,000

										3,909,488


Total Yankee Corporate Bonds and Notes (Cost $24,405,433)										24,855,305


Term Loans: 29.77%
	1,456,912	AMC Entertainment Incorporated		1.76			01/28/2013			1,452,367
	3,830,649	Ameristar Casinos Incorporated		3.55			11/10/2012			3,835,437
	4,791,304	Atlantic Broadband Finance LLC<		5.00			11/27/2015			4,796,287
	3,000,000	B&G Foods Incorporated		2.31			02/26/2013			2,996,250
	6,444,070	Biomet Incorporated		2.04			03/25/2015			6,437,820
	5,000,000	Carestream Health Incorporated<	NA				02/25/2017			4,957,400
	2,962,406	Casella Waste Systems Incorporated		7.00			04/09/2014			2,962,406
	2,992,228	Cequel Communications Holdings		2.26			11/05/2013			2,988,069
	2,947,154	Cinemark USA Incorporated		3.54			04/29/2016			2,966,635
	495,000	Citadel Broadcasting Corporation		4.25			12/30/2016			498,094
	6,000,000	Citigroup Incorporated		6.25			08/11/2015			6,083,760
	4,958,935	Clarke American Corporation		2.79			03/26/2014			4,717,187
	3,000,000	CommScope Incorporated		5.00			01/14/2018			3,035,250
	3,741,040	Community Health Systems Incorporated		2.56			07/25/2014			3,708,905
	192,668	Community Health Systems Incorporated		2.56			07/25/2014			191,013
	500,000	Convatec Limited		5.75			12/22/2016			501,375
	1,600,000	Darling International		5.14			12/16/2016			1,618,000
	5,000,000	Davita Incorporated		4.50			10/20/2016			5,041,650
	2,451,609	Dean Foods Company		1.81			04/02/2014			2,393,383
	4,659,542	Dollar General Corporation		3.03			07/07/2014			4,663,409
	1,000,000	Dunkin Brands Incorporated<		4.25			11/23/2017			1,005,890
	2,648,649	Federal Mogul Corporation		2.20			12/29/2014			2,560,078
	1,351,351	Federal Mogul Corporation		2.20			12/28/2015			1,306,162
	466,752	Georgia Pacific Corporation		2.30			12/21/2012			466,663
	2,201,229	Georgia Pacific Corporation		3.60			12/23/2014			2,207,018
	3,990,000	Getty Images Incorporated		5.25			11/07/2016			4,037,401
	4,491,250	Goodman Global Holdings Incorporated		5.75			10/28/2016			4,521,566
	4,580,064	Graham Packaging Company		6.75			04/05/2014			4,598,521
	6,826,832	HCA Incorporated		2.55			11/18/2013			6,800,002
	2,000,000	Health Management Association Incorporated		2.05			02/28/2014			1,982,500
	1,000,000	Intelsat Jackson Holdings SA		5.25			04/02/2018			1,006,610
	2,193,562	Jarden Corporation		3.55			01/25/2015			2,204,530



102 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

SHORT-TERM HIGH YIELD BOND FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Term Loans (continued)
$	1,984,785	Jarden Corporation		3.55	%		01/26/2015	$	1,994,709
	3,500,000	MedAssets Incorporated		5.25			11/16/2016		3,520,125
	2,500,000	MetroPCS Wireless Incorporated<		NA			11/04/2016		2,509,775
	3,693,523	MetroPCS Wireless Incorporated		2.56			11/04/2013		3,684,806
	4,000,000	NBTY Incorporated<		NA			10/01/2017		4,015,000
	1,000,000	NBTY Incorporated		6.25			10/02/2017		1,010,250
	4,000,000	Neiman Marcus Group		4.30			04/06/2016		4,020,840
	3,000,000	Novelis Incorporated		5.25			12/19/2016		3,036,570
	1,503,207	NRG Energy Incorporated		2.04			02/01/2013		1,495,691
	2,369,063	Omnova Solutions Incorporated		5.75			05/31/2017		2,395,714
	2,089,221	Penn National Gaming Incorporated		2.03			10/03/2012		2,083,350
	3,116,000	Phillips Van Heusen Corporation<		NA			05/31/2016		3,126,906
	2,602,732	Phillips Van Heusen Corporation		5.25			05/06/2016		2,608,146
	3,000,000	Pinnacle Foods Finance LLC		2.76			04/02/2014		2,989,230
	500,000	Renal Advantage Holdings Incorporated		5.75			12/16/2016		506,875
	4,000,000	Reynolds Group Holdings Incorporated<		NA			02/09/2018		4,021,520
	253,281	RMK Acquisition Corporation (Aramark)		0.11			01/27/2014		252,217
	2,612,497	RMK Acquisition Corporation (Aramark)		2.18			01/27/2014		2,601,524
	4,000,000	Rockwood Specialties Group Incorporated<		3.75			02/01/2018		4,050,560
	3,000,000	SAVVIS Communications Corporation<		NA			08/04/2016		3,025,320
	870,827	Seminole Tribe of Florida		1.81			03/05/2014		865,376
	382,620	Seminole Tribe of Florida		1.81			03/05/2014		380,225
	1,379,853	Seminole Tribe of Florida		1.81			03/05/2014		1,371,215
	3,339,791	Sinclair Television Group Incorporated		5.50			10/29/2015		3,369,015
	500,000	Styron LLC		6.00			08/02/2017		504,165
	241,529	Sungard Data Systems Incorporated		2.01			02/28/2014		240,140
	2,165,952	Sungard Data Systems Incorporated		3.93			02/26/2016		2,175,699
	2,830,062	Swift Transportation Companies Incorporated		6.00			12/16/2016		2,845,627
	1,000,000	Syniverse Technologies Incorporated		5.25			12/21/2017		1,011,000
	4,924,570	Time Warner Telecom Holdings		3.52			12/29/2016		4,939,984
	2,985,000	Toys R Us		6.00			09/01/2016		2,998,850
	4,000,000	Transdigm Incorporated		5.25			02/14/2017		4,023,880
	2,000,000	UCI International Incorporated		5.00			07/26/2017		2,008,760
	3,970,075	Vanguard Health Holding Company LLC		5.00			01/29/2016		3,989,925
	4,000,000	West Corporation		4.59			07/15/2016		4,019,960

Total Term Loans (Cost $183,277,481)									186,234,587


Short-Term Investments: 7.27%

Corporate Bonds & Notes: 0.03%
	160,844	Gryphon Funding Limited(v)(i)(a)		0.00			08/05/2011		67,072
	212,939	VFNC Corporation(v)††(i)(a)±		0.26			09/29/2011		125,634
									192,706


Shares			Yield
Investment Companies: 7.24%
	45,260,823	Wells Fargo Advantage Cash Investment Money Market Fund(o)(l)(u)		0.12					45,260,823
	57,655	Wells Fargo Securities Lending Cash Investments, LLC(l)(v)(u)		0.25					57,655
									45,318,478


Total Short-Term Investments (Cost $45,432,098)									45,511,184


Total Investments in Securities (Cost $629,889,747)*	102.66	%		642,326,740
Other Assets and Liabilities, Net	(2.66	)		(16,639,512	)


Total Net Assets	100.00	%	$	625,687,228



Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 103

SHORT-TERM HIGH YIELD BOND FUND


(o)		All or a portion of this security has been segregated for when-issued, delayed delivery securities and/or unfunded loans.

<		All or portion of the position represents an unfunded loan commitment.

(l)		Investment in an affiliate.

(v)		Security represents investment of cash collateral received from securities on loan.

(u)		Rate shown is the 7-day annualized yield at period end.

††		Securities that may be resold to “qualified institutional buyers” under Rule 144A or securities offered pursuant to Section 4(2) of the Securities Act of 1933, as amended.

(i)		Illiquid security.

«		All or a portion of this security is on loan.

(a)		Security is fair valued by the Management Valuation Team, and in certain instances by the Board of Trustees, in accordance with procedures approved by the Board of Trustees.

±		Variable rate investments.

*		Cost for federal income tax purposes is $629,889,747 and net unrealized appreciation (depreciation) consists of:


Gross unrealized appreciation	$	13,115,623
Gross unrealized depreciation		(678,630	)

Net unrealized appreciation	$	12,436,993

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



104 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

ULTRA SHORT-TERM INCOME FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Agency Securities: 7.42%

Federal Home Loan Bank: 2.59%
$	25,000,000	FHLB		0.75	%		11/21/2011	$	25,074,318
	5,925,750	FHLB		5.00			08/15/2012		6,152,392

									31,226,710


Federal Home Loan Mortgage Corporation: 0.45%
	148,242	FHLMC #555243		9.00			11/01/2016		167,257
	352,583	FHLMC #555427		9.50			09/01/2020		423,458
	110,036	FHLMC #555490		9.50			12/01/2016		116,642
	133,975	FHLMC #555514		9.00			10/01/2019		157,759
	1,162,691	FHLMC #555519		9.00			12/01/2016		1,324,375
	10,653	FHLMC #786823±		2.79			07/01/2029		11,190
	120,811	FHLMC #788792±		2.68			01/01/2029		127,463
	211,166	FHLMC #789272±		2.62			04/01/2032		219,701
	14,830	FHLMC #789483±		2.73			06/01/2032		15,529
	91,412	FHLMC #846990±		2.81			10/01/2031		91,831
	252,336	FHLMC #884013		10.50			05/01/2020		290,139
	292,781	FHLMC #A01734		9.00			08/01/2018		334,647
	54,994	FHLMC #A01849		9.50			05/01/2020		64,553
	839,398	FHLMC #C64637		7.00			06/01/2031		960,734
	752,735	FHLMC #G01126		9.50			12/01/2022		869,623
	18,990	FHLMC #G10747		7.50			10/01/2012		19,725
	3,899	FHLMC #G11150		7.50			12/01/2011		3,978
	15,722	FHLMC #G11200		8.00			01/01/2012		16,106
	2,841	FHLMC #G11209		7.50			12/01/2011		2,898
	21,341	FHLMC #G11229		8.00			01/01/2013		22,167
	49,276	FHLMC #G11391		7.50			06/01/2012		51,181
	129,024	FHLMC #G80118		10.00			11/01/2021		147,405

									5,438,361


Federal National Mortgage Association: 3.63%
	2,777,499	FNMA±		0.46			02/25/2037		2,755,479
	330,226	FNMA #100001		9.00			02/15/2020		390,200
	122,826	FNMA #100255		8.33			07/15/2020		143,403
	242,222	FNMA #100256		9.00			10/01/2021		281,188
	13,962	FNMA #149167		10.50			08/01/2020		16,214
	60,783	FNMA #190722		9.50			03/01/2021		71,302
	300,706	FNMA #190909		9.00			06/01/2024		357,479
	244,679	FNMA #252870		7.00			11/01/2014		265,763
	250,051	FNMA #310010		9.50			12/01/2020		296,518
	753,747	FNMA #323534		9.00			12/01/2016		861,305
	243,998	FNMA #344890		10.25			09/01/2021		278,275
	30,720	FNMA #365418±		3.61			01/01/2023		30,698
	33,844	FNMA #392647		9.00			10/01/2013		36,631
	109,819	FNMA #458004		10.00			03/01/2018		122,176
	75,521	FNMA #523850		10.50			10/01/2014		80,339
	402,089	FNMA #535807		10.50			04/01/2022		466,156
	674,542	FNMA #545117±		2.58			12/01/2040		708,131
	41,917	FNMA #545131		8.00			03/01/2013		43,676
	6,483	FNMA #545157		8.50			11/01/2012		6,832
	726,946	FNMA #545325		8.50			07/01/2017		816,795
	197,165	FNMA #545460±		2.43			11/01/2031		206,351
	1,624,342	FNMA #598559		6.50			08/01/2031		1,864,285
	94,332	FNMA #604060±		2.40			09/01/2031		98,619



Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 105

ULTRA SHORT-TERM INCOME FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Federal National Mortgage Association (continued)
$	177,223	FNMA #604689±		2.04	%		10/01/2031	$	180,705
	108,234	FNMA #635070±		2.49			05/01/2032		112,923
	219,079	FNMA #646643±		2.67			06/01/2032		229,248
	80,024	FNMA #660508		7.00			05/01/2013		81,533
	11,267	FNMA #675491±		3.30			04/01/2033		11,791
	298,177	FNMA #724657±		3.58			07/01/2033		312,525
	903,441	FNMA Grantor Trust Series 2000-T6 Class A2		9.50			06/25/2030		1,131,842
	2,416,398	FNMA Grantor Trust Series 2001-T10 Class A3		9.50			12/25/2041		3,027,294
	2,100,861	FNMA Grantor Trust Series 2001-T12 Class A3		9.50			08/25/2041		2,529,324
	4,883,131	FNMA Grantor Trust Series 2001-T8 Class A3±		4.73			07/25/2041		5,064,194
	2,834,627	FNMA Grantor Trust Series 2002-T1 Class A4		9.50			11/25/2031		3,551,256
	139,941	FNMA Series 1988-4 Class Z		9.25			03/25/2018		156,280
	120,593	FNMA Series 1988-5 Class Z		9.20			03/25/2018		124,111
	81,945	FNMA Series 1988-9 Class Z		9.45			04/25/2018		92,453
	402,229	FNMA Series 1989-30 Class Z		9.50			06/25/2019		455,734
	63,943	FNMA Series 1989-49 Class E		9.30			08/25/2019		71,744
	76,465	FNMA Series 1990-111 Class Z		8.75			09/25/2020		84,022
	206,909	FNMA Series 1990-119 Class J		9.00			10/25/2020		244,202
	111,444	FNMA Series 1990-124 Class Z		9.00			10/25/2020		126,690
	354,455	FNMA Series 1990-21 Class Z		9.00			03/25/2020		406,145
	206,951	FNMA Series 1990-27 Class Z		9.00			03/25/2020		234,620
	132,733	FNMA Series 1990-30 Class D		9.75			03/25/2020		152,346
	102,658	FNMA Series 1990-77 Class D		9.00			06/25/2020		115,585
	472,743	FNMA Series 1991-132 Class Z		8.00			10/25/2021		576,304
	169,395	FNMA Series 1992-71 Class X		8.25			05/25/2022		196,278
	3,417,608	FNMA Series 2007-24 Class AG		5.75			06/25/2035		3,488,162
	816,623	FNMA Series 2009-63 Class LC		4.00			04/25/2035		836,128
	940,952	FNMA Series G-22 Class ZT		8.00			12/25/2016		1,147,079
	2,053,405	FNMA Whole Loan Series 2002-W4 Class A6±		4.25			05/25/2042		2,143,562
	127,377	FNMA Whole Loan Series 2003-W11 Class A1±		3.11			06/25/2033		130,780
	72,124	FNMA Whole Loan Series 2003-W3 Class 1A4±		3.91			08/25/2042		75,426
	6,236,037	FNMA Whole Loan Series 2003-W6 Class 6A±		4.08			08/25/2042		6,533,925

									43,822,026


Government National Mortgage Association: 0.75%
	78,855	GNMA #780253		9.50			11/15/2017		89,803
	277,737	GNMA #780267		9.00			11/15/2017		316,567
	241,676	GNMA #780664		10.00			10/20/2017		269,479
	52,481	GNMA #781310		8.00			01/15/2013		51,233
	43,626	GNMA #781311		7.50			02/15/2013		44,701
	272,726	GNMA #781540		7.00			05/15/2013		277,806
	1,367,540	GNMA #781614		7.00			06/15/2033		1,590,601
	5,561,352	GNMA Series 2005-90 Class A		3.76			09/16/2028		5,742,442
	739,287	GNMA Series 2007-69 Class TA±		3.96			06/16/2031		744,516

									9,127,148


Total Agency Securities (Cost $86,647,413)									89,614,245


Asset Backed Securities: 13.37%
	8,520,697	Aames Mortgage Trust Series 2003-1 Class M1±		1.28			10/25/2033		7,248,140
	1,091,759	Bank of America Auto Trust Series 2010-1A Class A2		0.75			06/15/2012		1,092,095
	12,700,000	Bank of America Credit Card Trust Series 2008-A5 Class A±		1.47			12/16/2013		12,749,755
	5,800,000	BCRR Trust Series 2010-Leaf Class 35A		4.23			10/22/2011		5,878,076
	1,970,502	BMW Vehicle Owner Trust Series 2010-A Class A2		0.68			09/25/2012		1,972,088
	1,143,066	CarMax Auto Owner Trust Series 2010-1 Class A2		0.83			11/15/2012		1,143,785
	5,900,000	Chase Issuance Trust Series 2006-A5 Class A±		0.29			11/15/2013		5,895,777



106 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

ULTRA SHORT-TERM INCOME FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Asset Backed Securities (continued)
$	3,400,000	Chase Issuance Trust Series 2007-A18 Class A±		0.53	%		01/15/2015	$	3,407,115
	2,000,000	Chase Issuance Trust Series 2008-A9 Class A9		4.26			05/15/2013		2,016,327
	11,000,000	Chase Issuance Trust Series 2009-A2 Class A2±		1.82			04/15/2014		11,172,438
	6,800,000	Chase Issuance Trust Series 2009-A3 Class A3		2.40			06/17/2013		6,839,507
	10,500,000	Citibank Credit Card Issuance Trust Series 2009-A1 Class A1±		2.02			03/17/2014		10,667,898
	7,882,431	ContiMortgage Net Interest Margin Notes Series 1997-A Class A(i)		7.23			10/16/2028		2,463
	746,441	Countrywide Asset-Backed Certificates Series 2007-S1 Class A1A±		0.37			02/25/2037		706,915
	14,550,998	Eastman Hill Funding Limited Series 1A Class A2(i)(a)(c)		0.83			09/29/2031		71,300
	18,450,833	Eastman Hill Funding Limited Series 1A Class A2E(i)(a)(c)		0.83			09/29/2031		90,409
	1,043,233	EquiFirst Mortgage Loan Trust Series 2003-2 Class 3A3±		1.01			09/25/2033		967,326
	1,469,046	Ford Credit Auto Owner Trust Series 2007-A Class A4A		5.47			06/15/2012		1,492,208
	5,000,000	GE Equipment Midticket LLC Series 2010-1 Class A2		0.61			01/14/2013		5,001,807
	6,343,067	Home Equity Asset Trust Series 2003-7 Class M1±		1.24			03/25/2034		5,394,557
	2,959,565	Honda Auto Receivables Owner Trust Series 2010-1 Class A2		0.62			02/21/2012		2,960,599
	4,480,000	Honda Auto Receivables Owner Trust Series 2010-3 Class A2		0.53			01/21/2013		4,480,802
	4,000,000	Honda Auto Receivables Owner Trust Series 2011-1 Class A2		0.65			06/17/2013		3,986,909
	2,395,597	Hyundai Auto Receivables Trust Series 2010 A Class A2		0.86			11/15/2012		2,398,498
	5,500,000	Hyundai Auto Receivables Trust Series 2010 B Class A2		0.57			03/15/2013		5,502,555
	3,998,229	John Deere Owner Trust Series 2010-A Class A2		0.72			07/16/2012		4,000,404
	6,000,000	Mercedes-Benz Auto Lease Trust Series 2011-1A Class A2		0.79			04/15/2013		5,984,442
	4,746,395	Mercedes-Benz Auto Receivables Trust Series 2010-1 Class A2		0.70			08/15/2012		4,749,728
	4,500,000	Nissan Auto Lease Trust Series 2010-B Class A2		0.90			05/15/2013		4,508,411
	2,600,000	Nissan Auto Receivables Owner Trust Series 2010-A Class A2		0.55			03/15/2013		2,600,265
	141,536	Residential Asset Securities Corporation Series 2001-KS1 Class AII±		0.73			03/25/2032		133,776
	70,822	SACO I Trust Series 2005-2 Class A±(i)		0.46			04/25/2035		30,161
	4,221,741	Structured Asset Investment Loan Trust Series 2003-BC10 Class M1±		1.39			10/25/2033		3,285,321
	6,635,259	Structured Asset Investment Loan Trust Series 2003-BC3 Class M1±		1.69			04/25/2033		5,516,760
	124,946	Terwin Mortgage Trust Series 2004-21HE Class 1A1±		1.22			12/25/2034		113,432
	6,500,000	Toyota Auto Receivables Owner Trust Series 2010-B Class A2		0.74			08/15/2012		6,507,521
	8,000,000	Toyota Auto Receivables Owner Trust Series 2010-C Class A2		0.51			12/17/2012		7,997,776
	1,465,879	USAA Auto Owner Trust Series 2010-1 Class A2		0.63			06/15/2012		1,466,094
	4,500,000	Volkswagen Auto Lease Trust Series 2010-A		0.77			01/22/2013		4,502,326
	7,200,000	William Street Funding Corporation Series 2006-3 Class A±(a)		0.52			06/23/2012		6,876,000

Total Asset Backed Securities (Cost $175,714,751)									161,411,766


Collateralized Mortgage Obligations: 6.54%
	9,706	Bank of America Mortgage Securities Series 2002-K Class 3A1±		2.84			10/20/2032		9,718
	4,095,000	Bear Stearns Commercial Mortgage Securities Series 2004-PWR6 Class A4		4.52			11/11/2041		4,180,280
	194,385	Citicorp Mortgage Securities Incorporated Series 1992-7 Class A±		2.36			03/25/2022		189,472
	214,363	Collateralized Mortgage Obligation Trust Series 66 Class Z		8.00			09/20/2021		239,348
	3,500,000	Commercial Mortgage Pass-Through Certificates Series 2004-LB4A Class A4		4.58			10/15/2037		3,550,531
	726,809	Countrywide Home Loans Mortgage Pass-Through Trust Series 2001-HYB1 Class 1A1±		2.30			06/19/2031		684,592
	430,774	Countrywide Home Loans Mortgage Pass-Through Trust Series 2001-HYB1 Class 2A1±		2.12			06/19/2031		406,456
	315,042	Countrywide Home Loans Mortgage Pass-Through Trust Series 2004-20 Class 3A1±(i)(c)		2.42			09/25/2034		192,117
	6,031,053	Credit Suisse First Boston Mortgage Securities Corporation Series 2002-CKP1 Class A3		6.44			12/15/2035		6,222,462
	6,850,000	CS First Boston Mortgage Securities Corporation Series 2002-CP3 Class A3		5.60			07/15/2035		7,142,070
	278,608	DLJ Mortgage Acceptance Corporation Series 1990-2 Class A±(i)		3.10			01/25/2022		277,378
	74,977	DLJ Mortgage Acceptance Corporation Series 1991-3 Class A1±(i)		2.14			02/20/2021		73,005
	1,425,951	FHLMC Structured Pass-Through Securities Series T-42 Class A6		9.50			02/25/2042		1,653,212
	134,868	GSMPS Mortgage Loan Trust Series 1998-1 Class A		8.00			09/19/2027		137,311
	3,928,220	GSMPS Mortgage Loan Trust Series 2004-4 Class 1AF±		0.66			06/25/2034		3,360,384



Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 107

ULTRA SHORT-TERM INCOME FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Collateralized Mortgage Obligations (continued)
$	3,375,882	GSMPS Mortgage Loan Trust Series 2004-4 Class 2A1±		4.31	%		06/25/2034	$	3,256,805
	3,789,872	GSMPS Mortgage Loan Trust Series 2006-RP1 Class 1AF1±		0.61			01/25/2036		2,904,619
	1,509,030	GSR Mortgage Loan Trust Series 2004-1 Class 2A2±		2.23			04/25/2032		1,273,810
	94,714	Housing Securities Incorporated Series 1992-8 Class C		3.25			06/25/2024		98,916
	227,290	Housing Securities Incorporated Series 1992-8 Class E±		3.88			06/25/2024		225,880
	5,796,607	Jeffries and Company Series 2010-R7 Class 7A6		3.25			10/26/2036		5,811,098
	5,000,000	JPMorgan Chase Commercial Mortgage Securities Corporation Series 2002-CIB5 Class A2		5.16			10/12/2037		5,245,803
	2,595,088	JPMorgan Mortgage Trust Series 2005-A3 Class 7CA1±		2.82			06/25/2035		2,301,394
	40,684	Master Mortgages Trust Series 2002-3 Class 4A1±		2.76			10/25/2032		40,972
	2,740,900	Morgan Stanley Capital I Series 2004-IQ7 Class A3		5.35			06/15/2038		2,781,374
	65	Morgan Stanley Mortgage Trust Series 35 Class 2±(i)(m)		15,181.00			04/20/2021		15,298
	5,240,000	Nomura Asset Securities Corporation Series 1998-D6 Class A2		7.27			03/15/2030		5,721,582
	36,988	Prudential Home Mortgage Securities Series 1988-1 Class A±		2.60			04/25/2018		35,310
	12,564	Resecuritization Mortgage Trust Series 1998-B Class A±(i)		0.51			04/26/2021		12,658
	7,803,298	Residential Finance LP Series 2003-C Class B3±		1.66			09/10/2035		5,923,171
	4,624,176	Residential Finance LP Series 2003-C Class B4±(i)(c)		1.86			09/10/2035		2,983,796
	782,019	Salomon Brothers Mortgage Securities VII Series 1990-2 Class A		2.10			11/25/2020		802,755
	2,688,122	Structured Asset Mortgage Investments Incorporated Series 2001-4 Class A1		9.00			10/25/2024		2,574,686
	301,983	Structured Asset Mortgage Investments Incorporated Series 2001-4 Class A2		9.76			10/25/2024		291,978
	439,450	Structured Asset Securities Corporation Series 1998-2 Class A±		0.78			02/25/2028		421,238
	2,767,344	Structured Asset Securities Corporation Series 1998-RF1 Class A		8.24			04/15/2027		2,770,706
	3,560,312	Structured Asset Securities Corporation Series 1998-RF2 Class A		8.04			07/15/2027		3,565,062
	285,912	Wilshire Funding Corporation Series 1996-3 Class M2		3.66			08/25/2032		283,159
	252,057	Wilshire Funding Corporation Series 1996-3 Class M3		3.66			08/25/2032		243,307
	1,097,328	Wilshire Funding Corporation Series 1998-2 Class M1		2.00			12/28/2037		1,056,729

Total Collateralized Mortgage Obligations (Cost $83,840,193)									78,960,442


Corporate Bonds and Notes: 43.34%

Consumer Discretionary: 7.62%

Auto Components: 0.45%
	5,000,000	Autozone Incorporated		5.88			10/15/2012		5,358,660


Diversified Consumer Services: 0.87%
	5,000,000	Life Technologies Corporation		3.38			03/01/2013		5,147,530
	5,000,000	Science Applications International Corporation		6.25			07/01/2012		5,334,095

									10,481,625


Hotels, Restaurants & Leisure: 0.77%
	4,000,000	Starwood Hotels & Resorts Worldwide Incorporated		6.25			02/15/2013		4,260,000
	5,000,000	Yum! Brands Incorporated		8.88			04/15/2011		5,046,965

									9,306,965


Household Durables: 0.91%
	4,250,000	Mohawk Industries Incorporated Series D		7.20			04/15/2012		4,441,250
	6,095,000	Newell Rubbermaid Incorporated		5.50			04/15/2013		6,562,992

									11,004,242


Leisure Equipment & Products: 0.37%
	4,400,000	Mattel Incorporated		6.13			06/15/2011		4,460,478



108 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

ULTRA SHORT-TERM INCOME FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Media: 2.39%
$	6,065,000	Comcast Cable Holdings LLC		9.80	%		02/01/2012	$	6,548,041
	3,000,000	EchoStar DBS Corporation		6.38			10/01/2011		3,060,000
	1,600,000	EchoStar DBS Corporation		7.00			10/01/2013		1,720,000
	3,270,000	Historic TW Incorporated		9.13			01/15/2013		3,692,209
	2,545,000	Reed Elsevier Capital Incorporated		6.75			08/01/2011		2,609,765
	6,100,000	Time Warner Cable Incorporated		5.40			07/02/2012		6,435,567
	4,763,000	Viacom Incorporated		5.75			04/30/2011		4,789,830

									28,855,412


Multiline Retail: 1.11%
	5,630,000	Kohls Corporation		7.38			10/15/2011		5,860,914
	4,250,000	Macy’s Incorporated		5.35			03/15/2012		4,398,750
	3,019,000	Target Corporation		5.88			03/01/2012		3,181,437

									13,441,101


Specialty Retail: 0.75%
	5,500,000	Best Buy Company Incorporated		6.75			07/15/2013		6,079,497
	3,000,000	Staples Incorporated		7.75			04/01/2011		3,015,882

									9,095,379


Consumer Staples: 3.56%

Beverages: 0.88%
	2,495,000	Anheuser Busch InBev Worldwide Incorporated		3.00			10/15/2012		2,573,495
	3,000,000	Anheuser Busch InBev Worldwide Incorporated±		1.03			03/26/2013		3,028,290
	5,000,000	SABMiller plc		6.20			07/01/2011		5,089,265

									10,691,050


Food & Staples Retailing: 1.66%
	2,817,901	CVS Caremark Corporation		7.77			01/10/2012		2,972,885
	4,000,000	HJ Heinz Company		15.59			12/01/2020		4,455,560
	751,000	Kraft Foods Incorporated		5.63			11/01/2011		774,810
	6,825,000	Safeway Incorporated		6.50			03/01/2011		6,825,000
	5,000,000	Wrigley WM Jr Company		2.45			06/28/2012		5,024,615

									20,052,870


Tobacco: 1.02%
	6,350,000	Reynolds Amern Incorporated±		1.01			06/15/2011		6,358,052
	5,500,000	UST Incorporated	��	6.63			07/15/2012		5,863,215

									12,221,267


Energy: 4.07%

Energy Equipment & Services: 0.96%
	4,352,000	Enterprise Products Operating LLC		4.60			08/01/2012		4,539,127
	6,700,000	Kinder Morgan Energy Partners LP		7.13			03/15/2012		7,093,009

									11,632,136


Oil, Gas & Consumable Fuels: 3.11%
	5,870,000	BP Capital Markets plc		1.55			08/11/2011		5,894,055
	4,000,000	Chesapeake Energy Corporation		7.63			07/15/2013		4,460,000
	3,000,000	Consol Energy Incorporated		7.88			03/01/2012		3,165,000
	2,750,000	DTE Energy Company		7.05			06/01/2011		2,790,879
	3,000,000	El Paso Corporation		7.00			05/15/2011		3,029,994
	1,000,000	El Paso Corporation		7.38			12/15/2012		1,064,777
	2,000,000	Energy Transfer Partners LP		5.65			08/01/2012		2,105,970
	2,150,000	Transcontinental Gas Pipe Line Series B		7.00			08/15/2011		2,210,430



Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 109

ULTRA SHORT-TERM INCOME FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Oil, Gas & Consumable Fuels (continued)
$	6,000,000	Transcontinental Gas Pipe Line Series B		8.88	%		07/15/2012	$	6,605,886
	3,775,000	Valero Energy Corporation«		6.88			04/15/2012		4,003,523
	2,020,000	Weatherford International Incorporated		5.95			06/15/2012		2,124,600

									37,455,114


Financials: 15.47%

Commercial Banks: 3.84%
	665,000	BB&T Corporation		3.85			07/27/2012		690,326
	5,000,000	Charter One Bank NA		6.38			05/15/2012		5,207,585
	6,000,000	Credit Suisse New York		2.20			01/14/2014		6,024,546
	1,925,000	Hudson United Bank Mahwah NJ Series BKNT		7.00			05/15/2012		2,064,333
	3,000,000	Key Bank NA		5.70			08/15/2012		3,168,714
	3,000,000	Key Bank NA		5.50			09/17/2012		3,184,581
	5,000,000	Landwirt Rentenbank		3.13			06/15/2011		5,038,135
	6,510,000	M&I Marshall & Ilsley Bank		5.25			09/04/2012		6,820,520
	2,000,000	PNC Funding Corporation±		0.44			01/31/2012		2,001,262
	2,100,000	PNC Funding Corporation±		0.50			04/01/2012		2,105,609
	3,000,000	State Street Bank & Trust Company±		0.50			09/15/2011		3,002,256
	6,000,000	SwedBank		3.00			12/22/2011		6,114,726
	1,000,000	Union Bank NA		2.13			12/16/2013		1,003,192

									46,425,785


Consumer Finance: 1.91%
	5,000,000	Capital One Financial Company Series MTN		5.70			09/15/2011		5,132,000
	2,750,000	Diageo Investment Corporation		9.00			08/15/2011		2,855,166
	4,362,000	Devon Financing Corporation		6.88			09/30/2011		4,518,814
	6,000,000	ERAC USA Finance Company		5.80			10/15/2012		6,400,698
	2,000,000	SLM Corporation±		0.53			10/25/2011		1,983,674
	2,000,000	Sprint Capital Corporation		8.38			03/15/2012		2,122,500

									23,012,852


Diversified Financial Services: 5.47%
	5,000,000	Abbey National Treasury Services plc±		0.53			08/16/2011		4,992,297
	1,500,000	American Express Travel±		0.46			06/01/2011		1,496,342
	4,000,000	American Honda Financial Corporation		2.38			03/18/2013		4,055,060
	2,700,000	Bank of New York Mellon Corporation±		0.46			06/29/2012		2,705,681
	5,000,000	Citigroup Incorporated		6.00			02/21/2012		5,243,345
	5,000,000	Countrywide Home Loans Incorporated		4.00			03/22/2011		5,009,885
	8,500,000	General Electric Capital Corporation±		0.42			06/12/2012		8,455,639
	5,000,000	Goldman Sachs Group Incorporated		6.60			01/15/2012		5,254,920
	5,000,000	HSBC Finance Corporation		5.70			06/01/2011		5,061,475
	5,095,000	HSBC Finance Corporation		7.00			05/15/2012		5,425,034
	1,465,000	Invesco LTD		5.38			02/27/2013		1,559,232
	3,821,000	Jefferies Group Incorporated		7.75			03/15/2012		4,065,804
	5,000,000	JPMorgan Chase & Company±		0.96			02/26/2013		5,033,765
	1,500,000	Mass Mutual Global Funding II		3.63			07/16/2012		1,551,224
	6,000,000	Morgan Stanley		3.25			12/01/2011		6,133,170

									66,042,873


Insurance: 1.75%
	3,715,000	Genworth Life Institutional Funding Trust		5.88			05/03/2013		3,923,631
	4,000,000	Hartford Financial Services Group Incorporated		5.25			10/15/2011		4,106,684
	5,000,000	Metropolitan Life Global Funding I±		0.70			07/13/2011		5,006,340
	3,000,000	Prudential Financial Incorporated Series MTN		5.10			12/14/2011		3,098,334
	5,000,000	UnumProvident Corporation		7.63			03/01/2011		5,000,000

									21,134,989



110 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

ULTRA SHORT-TERM INCOME FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Real Estate Investment Trusts (REITs): 2.50%
$	4,975,000	ERP Operating LP		6.63	%		03/15/2012	$	5,254,381
	5,000,000	HCP Incorporated		5.95			09/15/2011		5,131,760
	1,000,000	HCP Incorporated		5.63			02/28/2013		1,062,772
	3,137,000	Healthcare Realty Trust Incorporated		8.13			05/01/2011		3,173,157
	4,501,000	HRPT Properties Trust±		0.90			03/16/2011		4,500,806
	5,602,000	Nationwide Health Properties Incorporated		6.50			07/15/2011		5,711,435
	5,000,000	Ventas Realty Limited Partnership		9.00			05/01/2012		5,340,780

									30,175,091


Health Care: 2.97%

Health Care Equipment & Supplies: 0.25%
	3,000,000	Fresenius Medical Care Capital Trust IV		7.88			06/15/2011		3,030,000


Health Care Providers & Services: 2.04%
	2,300,000	Aetna Incorporated		5.75			06/15/2011		2,333,582
	5,000,000	Anthem Incorporated		6.80			08/01/2012		5,392,940
	4,000,000	Cigna Corporation		6.38			10/15/2011		4,139,736
	7,000,000	Coventry Health Care Incorporated		5.88			01/15/2012		7,267,974
	5,251,000	Express Scripts Incorporated		5.25			06/15/2012		5,506,031

									24,640,263


Pharmaceuticals: 0.68%
	3,000,000	Mckesson Corporation		7.75			02/01/2012		3,191,859
	5,000,000	Teva Pharmaceutical Finance LLC		1.50			06/15/2012		5,037,020

									8,228,879


Industrials: 2.05%

Aerospace & Defense: 0.35%
	4,000,000	BAE Systems Holdings Incorporated		6.40			12/15/2011		4,177,216


Building Products: 0.29%
	3,500,000	Black & Decker Corporation		7.13			06/01/2011		3,554,128


Commercial Services & Supplies: 0.24%
	2,808,000	CRH America Incorporated		5.63			09/30/2011		2,881,895


Electrical Equipment: 0.39%
	4,500,000	Agilent Technologies Incorporated		4.45			09/14/2012		4,685,135


Road & Rail: 0.43%
	2,000,000	CSX Corporation		6.30			03/15/2012		2,103,208
	4,180,000	CSX Corporation		6.75			03/15/2011		4,188,239

									6,291,447


Transportation Infrastructure: 0.35%
	3,091,000	Ryder System Incorporated		5.95			05/02/2011		3,114,427


Information Technology: 1.63%

Computers & Peripherals: 0.45%
	265,000	Hewlett-Packard Company		2.95			08/15/2012		272,812
	5,000,000	Seagate Technology HDD Holdings		6.38			10/01/2011		5,112,500

									5,385,312



Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 111

ULTRA SHORT-TERM INCOME FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Office Electronics: 0.42%
$	5,000,000	Xerox Corporation		6.88	%		08/15/2011	$	5,134,105


Semiconductors & Semiconductor Equipment: 0.76%
	4,000,000	Broadcom Corporation		1.50			11/01/2013		3,971,100
	4,908,000	National Semiconductor Corporation		6.15			06/15/2012		5,180,335

									9,151,435


Materials: 1.51%

Chemicals: 0.50%
	6,000,000	Dow Chemical Company±		2.56			08/08/2011		6,044,190


Metals & Mining: 0.46%
	1,000,000	Rio Tinto Alcan Incorporated		4.88			09/15/2012		1,055,881
	3,270,000	Teck Cominco Incorporated		7.00			09/15/2012		3,470,216
	1,000,000	United States Steel Corporation		5.65			06/01/2013		1,040,000

									5,566,097


Paper & Forest Products: 0.55%
	6,470,000	International Paper Company		6.75			09/01/2011		6,655,171


Telecommunication Services: 2.10%

Diversified Telecommunication Services: 1.34%
	4,500,000	Citizens Communications Company		6.25			01/15/2013		4,775,625
	3,000,000	Qwest Corporation		7.88			09/01/2011		3,093,750
	3,000,000	Qwest Corporation±		3.55			06/15/2013		3,135,000
	5,000,000	Verizon New England Incorporated		6.50			09/15/2011		5,157,105

									16,161,480


Wireless Telecommunication Services: 0.76%
	665,000	Cellco Partnership		3.75			05/20/2011		669,724
	4,000,000	Cingular Wireless Services		8.13			05/01/2012		4,336,024
	4,000,000	Motorola Incorporated		8.00			11/01/2011		4,181,540

									9,187,288


Utilities: 2.36%

Electric Utilities: 2.36%
	3,000,000	Allegheny Energy Supply		8.25			04/15/2012		3,204,264
	3,000,000	Carolina Power & Light Company		6.50			07/15/2012		3,217,473
	5,000,000	Columbus Southern Power±		0.70			03/16/2012		5,011,770
	2,000,000	IPALCO Enterprises Incorporated		8.63			11/14/2011		2,085,000
	4,255,000	Nevada Power Company Series A		8.25			06/01/2011		4,333,556
	4,348,000	Pacific Gas & Electric Corporation		4.20			03/01/2011		4,348,000
	3,300,000	Scana Corporation		6.88			05/15/2011		3,340,663
	2,990,000	Wisconsin Electric Power Company		6.50			04/01/2011		3,004,011

									28,544,737


Total Corporate Bonds and Notes (Cost $519,938,036)									523,281,094



112 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

ULTRA SHORT-TERM INCOME FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Yankee Corporate Bonds and Notes: 8.35%

Consumer Discretionary: 0.36%

Multiline Retail: 0.36%
$	4,000,000	Wesfarmers Limited		7.00	%		04/10/2013	$	4,401,884


Consumer Staples: 0.45%

Food & Staples Retailing: 0.45%
	5,225,000	Woolworths Limited		5.25			11/15/2011		5,398,961


Energy: 0.53%

Oil, Gas & Consumable Fuels: 0.53%
	6,000,000	Husky Energy Incorporated		6.25			06/15/2012		6,382,356


Financials: 3.85%

Commercial Banks: 3.85%
	3,500,000	ANZ National (International) Limited		2.38			12/21/2012		3,552,588
	6,000,000	Australia & New Zealand Banking Group Limited±		0.58			06/18/2012		6,007,674
	4,000,000	Banco Santander Chile		2.88			11/13/2012		3,991,172
	3,000,000	Barclays Bank plc		2.50			01/23/2013		3,050,358
	4,500,000	Commonwealth Bank of Australia±		0.85			03/19/2013		4,509,014
	7,000,000	European Investment Bank		2.63			11/15/2011		7,108,297
	4,000,000	Royal Bank Scotland plc		1.45			10/20/2011		4,018,604
	3,000,000	Westpac Banking Corporation		2.25			11/19/2012		3,060,459
	5,000,000	Westpac Banking Corporation±		0.49			12/14/2012		5,001,685
	6,000,000	Xstrata Finance Canada Limited		5.50			11/16/2011		6,196,806

									46,496,657


Industrials: 0.93%

Building Products: 0.93%
	7,011,000	Lafarge SA		6.15			07/15/2011		7,134,660
	3,830,000	Tyco Electronics Group SA		6.00			10/01/2012		4,099,061

									11,233,721


Materials: 0.36%

Metals & Mining: 0.36%
	4,290,000	Rio Tinto Alcan Incorporated		6.45			03/15/2011		4,298,456


Telecommunication Services: 1.87%

Diversified Telecommunication Services: 1.46%
	5,000,000	Deutsche Telekom International Finance		5.38			03/23/2011		5,013,615
	6,300,000	Telecom Italia Capital		6.20			07/18/2011		6,420,248
	6,145,000	Telefonica Emisiones SAU		2.58			04/26/2013		6,188,986

									17,622,849


Wireless Telecommunication Services: 0.41%
	5,000,000	Vodafone Group plc±		0.64			06/15/2011		5,004,785


Total Yankee Corporate Bonds and Notes (Cost $100,238,933)									100,839,669


Yankee Government Bonds: 1.00%
	8,000,000	Kommunalbanken AS		3.25			06/15/2011		8,061,264
	4,000,000	Province of Ontario Canada		3.38			05/20/2011		4,025,996

Total Yankee Government Bonds (Cost $12,075,174)									12,087,260



Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 113

ULTRA SHORT-TERM INCOME FUND


Principal		Security Name	Interest Rate			Maturity Date		Value
Municipal Bonds and Notes: 5.50%

Arizona: 0.17%
$	2,000,000	Maricopa County AZ IDA Solid Waste Disposal Waste Management Income Project (Solid Waste Revenue)±§		2.65	%		12/01/2031	$	2,002,580


California: 0.74%
	6,000,000	California Pollution Control Financing Authority (Resource Recovery Revenue)±		1.88			08/01/2023		6,000,120
	2,900,000	San Francisco CA International Airport Series E (Airport Revenue)		1.87			05/01/2012		2,909,164

									8,909,284


Florida: 0.26%
	3,138,750	Educational Funding of the South Incorporated (Education Revenue, GTD Student Loan Insured)±		0.55			09/02/2013		3,137,086


Kentucky: 0.45%
	2,420,000	Kentucky Economic Development Finance Autority Solid Waste Disposal (Resourse Recovery Revenue)±§		2.50			04/01/2031		2,420,000
	3,000,000	Louisville/Jefferson County KY PCRB Louisville Gas and Electric Project Series A (Miscellaneous Revenue)±§		1.90			10/01/2033		3,010,650

									5,430,650


Louisiana: 0.82%
	4,700,000	Louisiana Public Facilities Authority Air Products and Chemicals Project (Resource Recovery Revenue)±		0.70			12/01/2037		4,700,000
	5,250,000	State of Louisiana Gas and Fuels Tax (Utilities Revenue)±		2.76			05/01/2043		5,229,893

									9,929,893

Michigan: 0.33%
	4,000,000	Wayne County MI Series B-1 (GO-Local)±		2.77			09/15/2012		3,998,840


New Hampshire: 0.47%
	5,500,000	New Hampshire Business Finance Authority The United Illuminating Company Project (Lease Revenue)±§		7.13			07/01/2027		5,709,165


New York: 0.34%
	1,030,000	Babylon NY Industrial Development Agency Taxable Covanta Babylon Series B (IDR)		4.67			01/01/2012		1,049,683
	2,995,000	Onondaga County NY Property Tax Taxable (Lease Revenue)		3.50			04/01/2013		2,996,378

									4,046,061


Oklahoma: 0.14%
	1,725,000	Oklahoma County OK Finance Authority (Lease Revenue)		2.33			11/01/2012		1,734,936


Oregon: 0.37%
	4,500,000	Oregon School Board Association (Miscellanous Revenue, NATL- RE FGIC Insured)^		1.66			06/30/2012		4,400,955


South Carolina: 0.50%
	6,000,000	York County SC Pollution Control (Resource Recovery Revenue)±		1.00			09/15/2024		5,999,400


Texas: 0.08%
	1,000,000	Port Arthur TX Industrial Development Corporation Air Products and Chemicals Project (IDR)±		0.70			04/01/2035		1,000,000


West Virginia: 0.50%
	6,000,000	West Virginia Solid Waste Disposal Facilities Amos Project Series A (Utilities Revenue)±§		2.00			01/01/2041		6,008,760



114 Wells Fargo Advantage Income Funds		Portfolio of Investments—February 28, 2011 (Unaudited)

ULTRA SHORT-TERM INCOME FUND


Principal		Security Name	Interest Rate			Maturity Date			Value
Wisconsin: 0.33%
$	4,000,000	Marshfield WI Taxable BAN Series B (Electric Revenue)		2.00	%		12/01/2011	$	4,031,120


Total Municipal Bonds and Notes (Cost $66,251,344)									66,338,730


US Treasury Securities: 4.49%

US Treasury Notes: 4.49%
	16,760,000	US Treasury Note		0.88			03/31/2011		16,769,168
	18,700,000	US Treasury Note		0.88			04/30/2011		18,721,187
	18,700,000	US Treasury Note«		0.88			05/31/2011		18,732,875

									54,223,230


Total US Treasury Securities (Cost $54,212,012)									54,223,230


Term Loans: 0.58%
	2,800,978	Georgia Pacific Corporation		2.30			12/21/2012		2,800,446
	4,261,110	SUPERVALU Incorporated		1.64			06/01/2012		4,233,966

Total Term Loans (Cost $6,927,305)									7,034,412


Short-Term Investments: 9.03%

Commercial Paper: 0.91%
	6,000,000	Oakland-Alameda County		6.80			03/01/2011		6,000,000
	5,000,000	Ohio State Water Authority		2.25			04/01/2011		5,000,000

									11,000,000


Corporate Bonds & Notes: 0.04%
	219,488	Gryphon Funding Limited(v)(i)(a)		0.00			08/05/2011		91,527
	685,811	VFNC Corporation(v)±(i)(a)††		0.26			09/29/2011		404,628

									496,155


Shares			Yield
Investment Companies: 8.03%
	94,751,337	Wells Fargo Advantage Cash Investment Money Market Fund(l)(u)		0.12					94,751,337
	2,233,250	Wells Fargo Securities Lending Cash Investments, LLC(v)(l)(u)		0.25					2,233,250

									96,984,587


Principal					Interest Rate
US Treasury Bills: 0.05%
$	600,000	US Treasury Bill^#				0.12	03/24/2011		599,954


Total Short-Term Investments (Cost $108,879,265)									109,080,696


Total Investments in Securities (Cost $1,214,724,426)*			99.62	%					1,202,871,544
Other Assets and Liabilities, Net			0.38						4,589,039


Total Net Assets			100.00	%				$	1,207,460,583



Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 115

ULTRA SHORT-TERM INCOME FUND


(v)		Security represents investment of cash collateral received from securities on loan.

±		Variable rate investments.

(i)		Illiquid security

(a)		Security is fair valued by the Management Valuation Team, and in certain instances by the Board of Trustees, in accordance with procedures approved by the Board of Trustees.

††		Securities that may be resold to “qualified institutional buyers” under Rule 144A or securities offered pursuant to Section 4(2) of the Securities Act of 1933, as amended. « All or a portion of this security is on loan.

(l)		Investment in an affiliate.

(c)		Interest-only securities entitle holders to receive only the interest payments on the underlying mortgages. The principal amount shown is the notional amount of the underlying mortgages. Interest rate disclosed represents the coupon rate.

(m)		This security is a structured note which generates income based on a coupon formula (—1,500 * 1 month LIBOR + 15,573.5%) and the prepayment behavior of the underlying collateral. The coupon is subject to a mandatory cap of 15,573.5% and a mandatory floor of 11%. The current interest rate is (—1,500*.23531) + 15,573.5% = 15,220.53%.

§		These securities are subject to a demand feature which reduces the effective maturity.

^		Zero coupon security. Rate represents yield to maturity.

#		Security pledged as collateral for futures transactions.

(u)		Rate shown is the 7-day annualized yield at period end.

*		Cost for federal income tax purposes is $1,214,724,426 and net unrealized appreciation (depreciation) consists of:


Gross unrealized appreciation	$	10,113,569
Gross unrealized depreciation		(21,966,451	)

Net unrealized depreciation	$	(11,852,882	)

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



116 Wells Fargo Advantage Income Funds		Statements of Assets and Liabilities—February 28, 2011 (Unaudited)


	Adjustable Rate			Government
	Government Fund			Securities Fund

Assets
Investments
In unaffiliated securities (including securities on loan), at value	$	1,181,272,367		$	2,557,458,086
In affiliated securities, at value		34,425,601			234,595,293

Total investments, at value (see cost below)		1,215,697,968			2,792,053,379
Cash		0			0
Foreign currency, at value (see cost below)		0			0
Receivable for investments sold		0			0
Principal paydown receivable		11,374,584			479,308
Receivable for Fund shares sold		2,693,437			3,962,549
Receivable for dividends and interest		3,606,602			8,872,155
Receivable for daily variation margin on open futures contracts		0			33,884
Receivable for securities lending income		0			6,833
Prepaid expenses and other assets		175,774			102,329

Total assets		1,233,548,365			2,805,510,437


Liabilities
Dividends payable		547,620			1,548,255
Payable for investments purchased		6,498,767			279,951,096
Payable for Fund shares redeemed		1,920,162			3,615,801
Payable upon receipt of securities loaned		0			119,429,190
Payable for daily variation margin on open futures contracts		35,156			0
Due to custodian bank		0			7,529
Investment advisory fee payable		184,696			608,885
Distribution fees payable		207,895			39,861
Due to other related parties		176,920			336,995
Accrued expenses and other liabilities		678,934			388,092
��
Total liabilities		10,250,150			405,925,704

Total net assets	$	1,223,298,215		$	2,399,584,733


NET ASSETS CONSIST OF
Paid-in capital	$	1,547,551,005		$	2,453,003,330
Undistributed (overdistributed) net investment income		(3,947,877	)		(7,063,376	)
Accumulated net realized gains (losses) on investments		(334,557,256	)		(76,164,972	)
Net unrealized gains (losses) on investments		14,252,343			29,809,751

Total net assets	$	1,223,298,215		$	2,399,584,733


COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE¹
Net assets — Class A	$	289,722,917		$	286,374,673
Shares outstanding — Class A		31,786,119			26,412,218
Net asset value per share — Class A	$	9.11		$	10.84
Maximum offering price per share — Class A	$	9.30	²	$	11.35	³
Net assets — Class B	$	29,981,587		$	9,199,102
Shares outstanding — Class B		3,289,047			848,611
Net asset value per share — Class B	$	9.12		$	10.84
Net assets — Class C	$	316,144,218		$	59,681,567
Shares outstanding — Class C		34,683,853			5,505,134
Net asset value per share — Class C	$	9.12		$	10.84
Net assets — Administrator Class	$	25,632,221		$	635,799,701
Shares outstanding — Administrator Class		2,812,233			58,655,853
Net asset value per share — Administrator Class	$	9.11		$	10.84
Net assets — Institutional Class	$	561,817,272		$	701,383,127
Shares outstanding — Institutional Class		61,630,923			64,744,078
Net asset value per share — Institutional Class	$	9.12		$	10.83
Net assets — Investor Class		NA		$	707,146,563
Shares outstanding — Investor Class		NA			65,181,404
Net asset value per share — Investor Class		NA		$	10.85


Total investments, at cost	$	1,201,304,924		$	2,762,463,254

Securities on loan, at value	$	0		$	116,993,562

Foreign currency, at cost	$	0		$	0


1.		Each Fund has an unlimited number of authorized shares.

2.		Maximum offering price is computed as 100/98 of net asset value. On investments of $50,000 or more, the offering price is reduced.

3.		Maximum offering price is computed as 100/95.5 of net asset value. On investments of $50,000 or more, the offering price is reduced.

4.		Maximum offering price is computed as 100/97 of net asset value. On investments of $50,000 or more, the offering price is reduced.

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



Statements of Assets and Liabilities—February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 117


									Short Duration
High			High Yield			Income Plus			Government			Short-Term			Short-Term High			Ultra Short-Term
Income Fund			Bond Fund			Fund			Bond Fund			Bond Fund			Yield Bond Fund			Income Fund



$	700,676,983		$	457,582,164		$	624,495,774		$	1,263,064,708		$	575,895,690		$	597,008,262		$	1,105,886,957
	37,381,743			14,373,162			75,509,067			115,677,736			18,747,130			45,318,478			96,984,587

	738,058,726			471,955,326			700,004,841			1,378,742,444			594,642,820			642,326,740			1,202,871,544
	0			0			1,611			0			0			0			0
	0			48			0			0			0			0			0
	4,772,437			864,479			0			21,135,083			115,000			3,421,397			0
	0			53,574			7,595			1,889,176			22,427			0			0
	944,120			189,931			676,830			1,582,249			1,320,453			3,309,119			17,472,297
	13,396,134			7,451,472			5,390,500			3,614,620			5,281,866			8,370,911			10,544,526
	0			0			18,406			0			56,610			0			0
	0			494			3,121			18,863			0			0			122
	64,851			198,560			285,032			124,448			71,757			67,511			103,527

	757,236,268			480,713,884			706,387,936			1,407,106,883			601,510,933			657,495,678			1,230,992,016



	1,299,727			870,208			0			328,967			296,389			789,733			366,522
	10,606,650			2,214,341			59,856,971			45,617,955			3,000,000			28,271,625			18,100,623
	1,900,776			999,409			968,513			954,861			527,816			2,218,006			1,769,264
	6,013,150			165,750			12,244,800			94,360,440			1,449,300			171,275			2,528,125
	0			0			0			0			0			0			120,047
	0			0			0			0			0			0			0
	202,656			191,323			195,324			262,477			140,593			146,592			185,834
	21,100			93,016			19,952			43,000			9,309			28,817			11,402
	84,046			78,427			91,452			145,541			66,319			75,374			162,684
	78,491			360,349			322,615			95,454			112,575			107,028			286,932

	20,206,596			4,972,823			73,699,627			141,808,695			5,602,301			31,808,450			23,531,433

$	737,029,672		$	475,741,061		$	632,688,309		$	1,265,298,188		$	595,908,632		$	625,687,228		$	1,207,460,583



$	715,212,793		$	544,324,240		$	675,103,459		$	1,268,369,147		$	598,011,053		$	612,830,357		$	1,319,954,281
	62,786			367,044			(275,308	)		(5,129,916	)		(31,686	)		(55,825	)		(572,127	)
	(19,412,414	)		(88,630,072	)		(52,668,379	)		(2,287,543	)		(1,820,778	)		475,703			(99,901,347	)
	41,166,507			19,679,849			10,528,537			4,346,500			(249,957	)		12,436,993			(12,020,224	)

$	737,029,672		$	475,741,061		$	632,688,309		$	1,265,298,188		$	595,908,632		$	625,687,228		$	1,207,460,583



$	122,109,112		$	291,139,004		$	262,875,923		$	169,844,771		$	53,523,681		$	182,442,997		$	181,249,464
	16,233,393			91,507,232			22,502,595			16,493,983			6,132,404			21,948,853			21,149,445
$	7.52		$	3.18		$	11.68		$	10.30		$	8.73		$	8.31		$	8.57
$	7.87	³	$	3.33	³	$	12.23	³	$	10.62	⁴	$	9.00	⁴	$	8.57	⁴	$	8.74	²
$	4,036,989		$	41,602,007		$	4,977,462		$	1,400,972			NA			NA			NA
	536,893			13,075,221			425,442			135,943			NA			NA			NA
$	7.52		$	3.18		$	11.70		$	10.31			NA			NA			NA
$	32,347,737		$	108,303,091		$	29,593,327		$	72,672,570		$	16,347,356		$	52,094,392		$	19,724,359
	4,300,539			34,038,846			2,533,769			7,045,939			1,874,667			6,267,136			2,301,477
$	7.52		$	3.18		$	11.68		$	10.31		$	8.72		$	8.31		$	8.57
$	17,896,393		$	34,696,959		$	2,458,589		$	255,519,898			NA		$	204,344,232		$	123,546,456
	2,358,417			10,905,197			210,605			24,776,316			NA			24,591,171			14,473,606
$	7.59		$	3.18		$	11.67		$	10.31			NA		$	8.31		$	8.54
$	223,611,239			NA		$	147,625,285		$	765,859,977		$	274,441,663			NA		$	466,580,927
	29,462,106			NA			12,636,659			74,269,057			31,423,884			NA			54,466,378
$	7.59			NA		$	11.68		$	10.31		$	8.73			NA		$	8.57
$	337,028,202			NA		$	185,157,723			NA		$	251,595,932		$	186,805,607		$	416,359,377
	44,628,758			NA			15,848,019			NA			28,838,069			22,474,251			48,561,086
$	7.55			NA		$	11.68			NA		$	8.72		$	8.31		$	8.57


$	696,892,219		$	452,275,480		$	689,576,514		$	1,374,395,944		$	595,038,109		$	629,889,747		$	1,214,724,426

$	5,888,493		$	161,330		$	12,003,111		$	92,446,250		$	1,420,459		$	167,748		$	2,476,018

	0		$	45			0			0			0			0			0



118 Wells Fargo Advantage Income Funds		Statements of Operations—Six Months Ended February 28, 2011 (Unaudited)



	Adjustable Rate			Government
	Government Fund			Securities Fund

Investment income
Interest*	$	13,884,663		$	36,003,107
Dividends		0			0
Income from affiliated securities		4,382			54,556
Securities lending income, net		0			90,695

Total investment income		13,889,045			36,148,358


Expenses
Investment advisory fee		2,209,779			4,402,157
Administration fees
Fund level		289,116			602,314
Class A		257,491			244,452
Class B		32,913			8,298
Class C		258,972			49,094
Administrator Class		5,521			229,013
Institutional Class		183,483			247,116
Investor Class		NA			908,328
Shareholder servicing fees
Class A		402,329			381,957
Class B		51,426			12,966
Class C		404,644			76,710
Administrator Class		12,790			535,509
Investor Class		NA			1,189,164
Distribution fees
Class B		154,279			38,896
Class C		1,213,929			230,130
Custody and accounting fees		53,020			55,622
Professional fees		23,803			22,728
Registration fees		69,039			63,712
Shareholder report expenses		65,227			56,244
Trustees’ fees and expenses		6,100			5,971
Other fees and expenses		75,693			16,689

Total expenses		5,769,554			9,377,070
Less: Fee waivers and/or expense reimbursements		(702,968	)		(395,299	)

Net expenses		5,066,586			8,981,771

Net investment income		8,822,459			27,166,587


NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		1,206,436			12,178,169
Futures transactions		124,831			(7,337,085	)

Net realized gains (losses) on investments		1,331,267			4,841,084


Net change in unrealized gains (losses) on:
Unaffiliated issuers		1,229,681			(66,215,071	)
Futures transactions		(140,701	)		(710,797	)

Net change in unrealized gains (losses) on investments		1,088,980			(66,925,868	)

Net realized and unrealized gains (losses) on investments		2,420,247			(62,084,784	)

Net increase (decrease) in net assets resulting from operations	$	11,242,706		$	(34,918,197	)


* Net of foreign withholding taxes of	$	0		$	5,551

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



Statements of Operations—Six Months Ended February 28, 2011 (Unaudited)		Wells Fargo Advantage Income Funds 119


							Short Duration
High			High Yield	Income Plus			Government			Short-Term			Short-Term High			Ultra Short-Term
Income Fund			Bond Fund	Fund			Bond Fund			Bond Fund			Yield Bond Fund			Income Fund


$	27,781,292		$18,230,424	$	12,506,939		$	16,815,053		$	8,377,756		$	14,814,450		$	11,386,473
	0		269,952		2,660			0			0			0			0
	26,809		18,151		99,335			9,348			18,695			42,625			244,040
	15,388		5,406		10,886			45,762			1,379			559			1,500

	27,823,489		18,523,933		12,619,820			16,870,163			8,397,830			14,857,634			11,632,013



	1,743,596		1,207,127		1,246,884			2,384,945			1,207,512			1,280,270			2,194,612

	177,011		120,742		157,986			314,141			152,737			128,327			286,950
	97,920		229,532		206,970			141,300			38,433			151,807			142,883
	3,683		37,666		4,509			1,179			NA			NA			NA
	25,290		85,168		23,828			59,346			12,370			33,664			16,112
	4,701		21,256		610			162,181			NA			50,653			73,298
	83,546		NA		58,575			271,968			115,743			NA			151,156
	314,606		NA		180,647			NA			245,181			171,157			403,342

	153,000		357,970		323,390			220,781			60,051			237,199			222,626
	5,755		58,749		7,045			1,842			NA			NA			NA
	39,516		133,075		37,232			92,728			19,328			52,599			25,175
	11,752		51,381		1,405			371,627			NA			124,843			170,878
	413,423		NA		230,776			NA			321,704			222,242			525,525

	17,266		176,559		21,137			5,527			NA			NA			NA
	118,547		399,224		111,696			278,185			57,984			157,798			75,526
	19,732		45,580		22,484			31,596			20,424			13,577			32,629
	14,279		23,803		14,635			22,588			24,056			24,056			23,079
	62,834		80,189		5,883			37,830			22,315			34,183			51,627
	55,702		21,305		787			74,543			29,753			34,716			13,709
	5,908		5,017		3,220			5,245			5,245			5,245			5,980
	9,521		19,927		12,733			6,999			5,086			2,936			7,939

	3,377,588		3,074,270		2,672,432			4,484,551			2,337,922			2,725,272			4,423,046
	(428,323	)	(60,176)		(310	)		(752,957	)		(260,411	)		(542,593	)		(1,037,787	)

	2,949,265		3,014,094		2,672,122			3,731,594			2,077,511			2,182,679			3,385,259

	24,874,224		15,509,839		9,947,698			13,138,569			6,320,319			12,674,955			8,246,754




	15,669,772		14,779,687		3,433,636			1,254,618			1,458,377			1,962,293			(6,035,921	)
	0		0		(914,242	)		0			(225,502	)		0			(189,491	)

	15,669,772		14,779,687		2,519,394			1,254,618			1,232,875			1,962,293			(6,225,412	)



	21,619,176		5,724,664		(12,413,228	)		(5,830,830	)		(1,641,890	)		5,762,582			14,125,941
	0		0		(97,838	)		0			141,662			0			99,127

	21,619,176		5,724,664		(12,511,066	)		(5,830,830	)		(1,500,228	)		5,762,582			14,225,068

	37,288,948		20,504,351		(9,991,672	)		(4,576,212	)		(267,353	)		7,724,875			7,999,656

$	62,163,172		$36,014,190	$	(43,974	)	$	8,562,357		$	6,052,966		$	20,399,830		$	16,246,410


$	13,811		$ 1,125	$	24,288		$	0		$	0		$	5,693		$	2,085


120 Wells Fargo Advantage Income Funds		Statements of Changes in Net Assets


	Adjustable Rate Government Fund
	Six Months Ended
	February 28, 2011					Period Ended						Year Ended
	(Unaudited)					August 31, 2010^1,4						June 30, 2010¹

Operations
Net investment income			$	8,822,459					$	1,501,588					$	25,450,430
Net realized gains (losses) on investments				1,331,267						(292,046	)					(3,093,869	)
Net change in unrealized gains (losses) on investments				1,088,980						3,865,296						17,278,087

Net increase (decrease) in net assets resulting from operations				11,242,706						5,074,838						39,634,648


Distributions to shareholders from
Net investment income
Class A				(3,572,048	)					(698,943	)					(6,369,704	)
Class B				(302,636	)					(40,807	)					(973,655	)
Class C				(2,360,942	)					(263,192	)					(5,349,907	)
Administrator Class				(122,622	)					(2	)²				NA
Institutional Class				(5,657,753	)					(923,652	)					(10,690,455	)
Investor Class			NA						NA						NA
Class IS			NA							(22,445	)³					(1,785,757	)³
Net realized gains
Class A				0						0						0
Class B				0						0						0
Class C				0						0						0
Administrator Class				0						0					NA
Institutional Class				0						0						0
Investor Class			NA						NA						NA
Tax basis return of capital
Class A				0						(586,005	)					0
Class B				0						(89,730	)					0
Class C				0						(602,199	)					0
Administrator Class				0						(17	)²				NA
Institutional Class				0						(647,437	)					0
Class IS			NA							(24,106	)³					0	³

Total distributions to shareholders				(12,016,001	)					(3,898,535	)					(25,169,478	)


	Shares					Shares						Shares
Capital share transactions
Proceeds from shares sold
Class A		5,936,906		54,180,292			10,197,215			92,820,729			8,566,046			77,448,644
Class B		50,397		459,878			42,635			388,252			407,714			3,690,785
Class C		1,147,181		10,460,617			433,076			3,944,669			5,763,362			52,055,708
Administrator Class		3,845,097		35,046,172			1,098	²		10,000	²	NA			NA
Institutional Class		25,995,999		237,019,749			2,059,324			18,749,802			16,810,431			151,753,234
Investor Class	NA		NA			NA			NA			NA			NA
Class IS	NA		NA				17,569	³		159,822	³		6,538,429	³		59,085,949	³

				337,166,708						116,073,274						344,034,320


1.		After the close of business on July 9, 2010, the Fund acquired the net assets of Evergreen Adjustable Rate Fund which became the accounting and performance survivor in this transaction. The information for the periods prior to July 12, 2010 is that of the predecessor fund.

2.		Class commenced operations on July 30, 2010.

3.		Class IS shares of the predecessor fund became Class A shares on July 9, 2010.

4.		For the two months ended August 31, 2010. The Fund changed it fiscal year end from June 30 to August 31, effective August 31, 2010.

5.		For the three months ended August 31, 2010. The Fund changed its fiscal year end from May 31 to August 31, effective August 31, 2010.

6.		After the close of business on July 9, 2010, the Fund acquired the net assets of Evergreen High Income Fund which became the accounting and performance survivor in this transaction. The information for the periods prior to July 12, 2010 is that of the predecessor fund.

7.		For the four months ended August 31, 2010. The Fund changed it fiscal year end from April 30 to August 31, effective August 31, 2010.

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


Statements of Changes in Net Assets		Wells Fargo Advantage Income Funds 121


Government Securities Fund
Six Months Ended
February 28, 2011					Period Ended					Year Ended
(Unaudited)					August 31, 2010⁵					May 31, 2010


		$	27,166,587				$	12,022,843				$	54,153,414
			4,841,084					23,639,406					29,153,062
			(66,925,868	)				35,209,410					41,176,717

			(34,918,197	)				70,871,659					124,483,193




			(4,450,936	)				(2,030,682	)				(6,761,002	)
			(112,124	)				(42,144	)				(114,792	)
			(664,752	)				(285,456	)				(808,579	)
			(7,409,456	)				(2,591,947	)				(10,610,339	)
			(10,229,763	)				(4,387,095	)				(16,819,803	)
			(13,490,116	)				(8,154,884	)				(40,846,068	)
		NA					NA					NA

			0					0					(1,450,271	)
			0					0					(29,370	)
			0					0					(213,094	)
			0					0					(2,179,594	)
			0					0					(3,366,996	)
			0					0					(8,880,648	)

			0					0					0
			0					0					0
			0					0					0
			0					0					0
			0					0					0
			0					0					0

			(36,357,147	)				(17,492,208	)				(92,080,556	)


Shares					Shares					Shares


	974,502		10,731,646			698,050		7,700,712			2,602,285		28,085,253
	30,495		337,719			25,394		281,713			25,530		277,343
	1,225,391		13,528,450			967,239		10,658,325			1,867,110		20,145,978
	39,452,909		433,225,644			1,132,261		12,498,258			6,911,593		74,516,912
	28,951,742		318,977,075			8,381,508		92,515,803			27,058,437		290,991,422
	16,116,075		178,542,062			13,663,414		151,659,143			37,872,311		408,694,424
NA		NA			NA		NA			NA		NA

			955,342,596					275,313,954					822,711,332


122 Wells Fargo Advantage Income Funds		Statements of Changes in Net Assets


	Adjustable Rate Government Fund
	Six Months Ended
	February 28, 2011						Period Ended						Year Ended
	(Unaudited)						August 31, 2010^1,4						June 30, 2010¹
	Shares						Shares						Shares
Capital share transactions (continued)
Reinvestment of distributions
Class A		264,692		$	2,415,039			96,564		$	880,197			526,502		$	4,757,512
Class B		26,588			242,642			11,561			105,379			83,847			757,112
Class C		158,742			1,448,441			57,77	²		526,590			355,022			3,207,123
Administrator Class		9,315			84,857			22			19	²	NA			NA
Institutional Class		457,414			4,173,144			128,680			1,172,892			995,372			8,992,430
Investor Class	NA			NA			NA			NA			NA			NA
Class IS	NA			NA				2,878	³		26,187	³		112,637	³		1,017,230	³

					8,364,123						2,711,264						18,731,407


Automatic conversion of Class B shares to
Class A shares
Class A		1,289,729			11,751,765			3,910			35,619			2,290,373			20,633,196
Class B		(1,289,729	)		(11,751,765	)		(3,910	)		(35,619	)		(2,290,373	)		(20,633,196	)

					0						0						0


Payment for shares redeemed
Class A		(14,454,994	)		(131,794,333	)		(1,384,057	)		(12,605,917	)		(12,412,473	)		(112,251,110	)
Class B		(1,004,859	)		(9,164,331	)		(296,097	)		(2,696,903	)		(2,503,912	)		(22,601,521	)
Class C		(3,927,401	)		(35,817,179	)		(1,550,116	)		(14,119,460	)		(7,810,985	)		(70,616,418	)
Administrator Class		(1,043,279	)		(9,508,342	)		0	²		0	²	NA			NA
Institutional Class		(5,174,640	)		(47,212,087	)		(4,537,034	)		(41,310,927	)		(28,820,129	)		(260,452,273	)
Investor Class	NA			NA			NA			NA			NA			NA
Class IS	NA			NA				(8,573,766	)³		(78,029,844	)³		(7,594,500	)³		(68,517,204	)³

					(233,496,272	)					(148,763,051	)					(534,438,526	)


Net asset value of shares issued in acquisition
Class A		0			0			0			0			0			0
Class B		0			0			0			0			0			0
Class C		0			0			0			0			0			0
Administrator Class		0			0			0			0		NA			NA

					0						0						0


Net increase (decrease) in net assets resulting from capital share transactions					112,034,559						(29,978,513	)					(171,672,799	)

Total increase (decrease) in net assets					111,261,264						(28,802,210	)					(157,207,629	)

Net assets
Beginning of period					1,112,036,951						1,140,839,161						1,298,046,790

End of period				$	1,223,298,215					$	1,112,036,951					$	1,140,839,161

Undistributed (overdistributed) net investment income				$	(3,947,877	)				$	(754,335	)				$	(316,903	)

Please see footnotes on p. 120

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


Statements of Changes in Net Assets		Wells Fargo Advantage Income Funds 123


Government Securities Fund
Six Months Ended
February 28, 2011						Period Ended						Year Ended
(Unaudited)						August 31, 2010⁵						May 31, 2010
Shares						Shares						Shares


	328,306		$	3,606,277			151,162		$	1,677,332			659,509		$	7,125,621
	7,699			84,516			2,829			31,435			10,163			109,783
	22,952			252,021			10,618			117,797			38,621			417,334
	370,900			4,071,810			158,303			1,756,344			688,149			7,435,162
	785,287			8,610,170			380,844			4,218,365			1,800,225			19,438,725
	964,042			10,595,108			568,558			6,304,005			3,386,367			36,619,138
NA			NA			NA			NA			NA			NA

				27,219,902						14,105,278						71,145,763




	0			0			0			0			0			0
	0			0			0			0			0			0

				0						0						0



	(4,167,886	)		(45,728,169	)		(1,116,797	)		(12,350,092	)		(4,154,955	)		(44,757,026	)
	(219,584	)		(2,408,754	)		(113,096	)		(1,248,001	)		(332,363	)		(3,583,267	)
	(1,081,452	)		(11,829,608	)		(220,274	)		(2,432,520	)		(733,989	)		(7,911,545	)
	(14,000,165	)		(154,986,647	)		(2,685,843	)		(29,612,992	)		(10,121,647	)		(109,121,743	)
	(12,684,933	)		(139,365,485	)		(3,678,164	)		(40,660,745	)		(15,552,878	)		(167,371,951	)
	(54,535,575	)		(599,934,979	)		(5,552,173	)		(61,238,832	)		(53,231,926	)		(573,331,903	)
NA			NA			NA			NA			NA			NA

				(954,253,642	)					(147,543,182	)					(906,077,435	)



	0			0			13,499,701			148,433,073			0			0
	0			0			916,693			10,077,426			0			0
	0			0			1,373,961			15,105,301			0			0
	0			0			11,846,766			130,240,357			0			0

				0						303,856,157						0


				28,308,856						445,732,207						(12,220,340	)

				(42,966,488	)					499,111,658						20,182,297


				2,442,551,221						1,943,439,563						1,923,257,266

			$	2,399,584,733					$	2,442,551,221					$	1,943,439,563

			$	(7,063,376	)				$	2,127,184					$	2,295,537



124 Wells Fargo Advantage Income Funds		Statements of Changes in Net Assets


	High Income Fund
	Six Months Ended
	February 28, 2011					Period Ended						Year Ended
	(Unaudited)					August 31, 2010⁵						May 31, 2010

Operations
Net investment income			$	24,874,224					$	12,255,680				$	46,764,839
Net realized gains (losses) on investments				15,669,772						5,677,151					24,728,623
Net change in unrealized gains (losses) on investments				21,619,176						15,369,829					20,678,729

Net increase in net assets resulting from operations				62,163,172						33,302,660					92,172,191


Distributions to shareholders from
Net investment income
Class A				(4,260,439	)					(2,133,188	)				(8,508,474	)
Class B				(142,846	)					(88,989	)				(498,630	)
Class C				(982,374	)					(419,368	)				(1,233,407	)
Administrator Class				(336,196	)					(64	)²				NA
Institutional Class				(7,687,787	)					(3,875,092	)				(13,243,110	)
Investor Class				(11,466,668	)					(5,738,980	)				(21,945,498	)

Total distributions to shareholders				(24,876,310	)					(12,255,681	)				(45,429,119	)


	Shares					Shares						Shares
Capital share transactions
Proceeds from shares sold
Class A		3,487,048		25,684,268			1,915,004			13,560,508			7,778,665		52,187,135
Class B		52,903		389,899			34,109			243,756			68,701		454,719
Class C		505,517		3,729,059			267,282			1,901,718			1,235,348		8,343,168
Administrator Class		2,549,425		18,971,813			1,383	²		10,000	²		NA		NA
Institutional Class		4,710,613		35,089,157			1,883,341			13,354,028			12,354,025		84,710,622
Investor Class		7,923,294		58,563,062			6,155,788			43,502,002			21,013,793		141,843,540

				142,427,258						72,572,012					287,539,184

Reinvestment of distributions
Class A		456,713		3,378,248			237,007			1,680,802			927,717		6,636,744
Class B		14,132		104,399			9,018			64,035			49,694		339,101
Class C		79,001		584,289			36,422			258,491			114,708		788,949
Administrator Class		37,872		284,287			9	²		63	²		NA		NA
Institutional Class		399,531		2,983,338			198,266			1,417,962			611,498		4,241,277
Investor Class		1,267,630		9,413,504			661,403			4,705,383			2,570,640		17,725,631

				16,748,065						8,126,736					29,731,702

Automatic conversion of Class B shares to
Class A shares
Class A		0		0			0			0			0		0
Class B		0		0			0			0			0		0

				0						0					0

Please see footnotes on p. 120

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



Statements of Changes in Net Assets		Wells Fargo Advantage Income Funds 125


High Yield Bond Fund
Six Months Ended
February 28, 2011						Period Ended						Year Ended
(Unaudited)						August 31, 2010^6,7						April 30, 2010⁶


			$	15,509,839					$	12,320,618					$	44,800,943
				14,779,687						13,769,788						23,156,775
				5,724,664						(23,470,632	)					105,876,883

				36,014,190						2,619,774						173,834,601





				(9,490,436	)					(7,119,862	)					(24,421,838	)
				(1,380,891	)					(1,194,108	)					(5,000,781	)
				(3,123,684	)					(2,410,914	)					(8,301,271	)
				(1,451,884	)					(1,666,126	)					(8,882,317	)
				NA						NA						NA
				NA						NA						NA

				(15,446,895	)					(12,391,010	)					(46,606,207	)


Shares						Shares						Shares


	12,154,210			37,961,984			11,619,655			35,007,357			30,900,058			87,633,417
	243,803			763,988			258,205			779,993			1,103,168			3,026,709
	2,142,183			6,694,672			1,637,374			4,955,735			5,060,013			14,201,909
	4,903,113			15,274,939			1,214,446			3,673,727			21,029,397			58,592,547
	NA			NA			NA			NA			NA			NA
	NA			NA			NA			NA			NA			NA

				60,695,583						44,416,812						163,454,582


	1,952,450			6,113,515			1,541,410			4,655,199			5,369,113			15,262,406
	260,198			814,312			222,277			670,890			954,113			2,694,997
	534,836			1,674,784			421,761			1,273,115			1,535,148			4,360,623
	327,291			1,024,968			298,307			898,434			2,051,739			5,855,835
	NA			NA			NA			NA			NA			NA
	NA			NA			NA			NA			NA			NA

				9,627,579						7,497,638						28,173,861



	1,692,896			5,323,947			20,227			60,912			2,729,350			7,448,983
	(1,692,896	)		(5,323,947	)		(20,227	)		(60,912	)		(2,729,350	)		(7,448,983	)

				0						0						0



126 Wells Fargo Advantage Income Funds		Statements of Changes in Net Assets


	High Income Fund
	Six Months Ended
	February 28, 2011						Period Ended						Year Ended
	(Unaudited)						August 31, 2010⁵						May 31, 2010
	Shares						Shares						Shares
Capital share transactions (continued)
Payment for shares redeemed
Class A		(5,189,400	)	$	(38,282,236	)		(2,164,331	)	$	(15,220,149	)		(10,935,120	)	$	(74,974,066	)
Class B		(294,361	)		(2,168,471	)		(408,070	)		(2,891,982	)		(702,770	)		(4,878,806	)
Class C		(534,551	)		(3,968,692	)		(127,492	)		(895,601	)		(799,006	)		(5,392,700	)
Administrator Class		(230,272	)		(1,719,453	)		0	²		0	²		NA			NA
Institutional Class		(3,029,007	)		(22,582,236	)		(1,973,883	)		(14,009,836	)		(4,287,782	)		(29,733,128	)
Investor Class		(9,510,187	)		(70,408,723	)		(3,267,964	)		(22,999,942	)		(18,492,669	)		(126,969,482	)

					(139,129,811	)					(56,017,510	)					(241,948,182	)

Net asset value of shares issued in acquisition
Class A		0			0			3,071,927			21,557,556			0			0
Class B		0			0			467,649			3,280,940			0			0
Class C		0			0			1,383,214			9,706,960			0			0

											34,545,456						0

Net increase (decrease) in net assets resulting from capital share transactions					20,045,512						59,226,694						75,322,704

Total increase (decrease) in net assets					57,332,374						80,273,673						122,065,776

Net assets
Beginning of period					679,697,298						599,423,625						477,357,849

End of period				$	737,029,672					$	679,697,298					$	599,423,625

Undistributed net investment income				$	62,786					$	64,872					$	64,879

Please see footnotes on p. 120

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



Statements of Changes in Net Assets		Wells Fargo Advantage Income Funds 127


High Yield Bond Fund
Six Months Ended
February 28, 2011						Period Ended						Year Ended
(Unaudited)						August 31, 2010^6,7						April 30, 2010⁶
Shares						Shares						Shares


	(16,466,959	)	$	(51,469,110	)		(15,223,009	)	$	(45,883,599	)		(35,736,328	)	$	(100,694,398	)
	(2,353,827	)		(7,368,126	)		(1,269,119	)		(3,835,081	)		(6,366,309	)		(17,921,034	)
	(3,058,013	)		(9,564,872	)		(2,122,278	)		(6,413,907	)		(5,187,832	)		(14,786,558	)
	(10,298,885	)		(32,125,372	)		(15,747,872	)		(47,213,497	)		(21,760,550	)		(62,487,634	)
NA			NA			NA			NA			NA			NA
NA			NA			NA			NA			NA			NA

				(100,527,480	)					(103,346,084	)					(195,889,624	)


	0			0			0			0			0			0
	0			0			0			0			0			0
	0			0			0			0			0			0

				0						0						0

				(30,204,318	)					(51,431,634	)					(4,261,181	)

				(9,637,023	)					(61,202,870	)					122,967,213


				485,378,084						546,580,954						423,613,741

			$	475,741,061					$	485,378,084					$	546,580,954

			$	367,044					$	304,100					$	79,610



128 Wells Fargo Advantage Income Funds		Statements of Changes in Net Assets


	Income Plus Fund
	Six Months Ended
	February 28, 2011					Period Ended						Year Ended
	(Unaudited)					August 31, 2010⁵						May 31, 2010
Operations
Net investment income			$	9,947,698					$	4,275,227				$	14,053,206
Net realized gains (losses) on investments				2,519,394						8,482,970					12,157,105
Net change in unrealized gains (losses) on investments				(12,511,066	)					12,363,919					20,288,063

Net increase (decrease) in net assets resulting from operations				(43,974	)					25,122,116					46,498,374


Distributions to shareholders from
Net investment income
Class A				(4,341,748	)					(1,940,505	)				(4,996,943	)
Class B				(72,296	)					(28,465	)				(97,473	)
Class C				(389,348	)					(175,248	)				(384,597	)
Administrator Class				(25,771	)					(34	)²				NA
Institutional Class				(2,708,736	)					(1,408,167	)				(4,852,567	)
Investor Class				(3,153,783	)					(1,992,383	)				(7,940,932	)
Net realized gains
Class A				(2,570,217	)					0					0
Class B				(55,169	)					0					0
Class C				(300,817	)					0					0
Administrator Class				(24,938	)					0					NA
Institutional Class				(1,471,629	)					0					0
Investor Class				(1,899,529	)					0					0

Total distributions to shareholders				(17,013,981	)					(5,544,802	)				(18,272,512	)


	Shares					Shares						Shares
Capital share transactions
Proceeds from shares sold
Class A		3,593,408		42,425,377			2,255,480			26,597,124			5,623,196		63,580,509
Class B		35,945		427,547			35,679			425,122			16,887		193,083
Class C		330,338		3,917,969			216,138			2,563,910			657,154		7,473,984
Administrator Class		226,082		2,688,282			8422			10,0002			NA		NA
Institutional Class		497,714		5,912,491			668,801			7,957,692			1,119,295		12,579,375
Investor Class		914,651		10,837,882			564,319			6,676,335			2,016,704		22,868,076

				66,209,548						44,230,183					106,695,027

Reinvestment of distributions
Class A		491,216		5,775,779			140,221			1,658,273			401,593		4,550,976
Class B		8,145		95,865			1,755			20,849			6,058		68,311
Class C		37,316		438,257			9,331			110,351			27,598		313,439
Administrator Class		1,947		22,760			3	²		34	²		NA		NA
Institutional Class		322,467		3,792,674			113,078			1,335,238			418,954		4,742,874
Investor Class		380,246		4,471,910			147,155			1,736,233			610,508		6,909,401

				14,597,245						4,860,978					16,585,001

Please see footnotes on p. 120

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



Statements of Changes in Net Assets		Wells Fargo Advantage Income Funds 129


Short Duration Government Bond Fund
Six Months Ended
February 28, 2011					Period Ended					Year Ended
(Unaudited)					August 31, 2010⁵					May 31, 2010

		$	13,138,569				$	6,662,660				$	21,413,882
			1,254,618					7,274,426					21,208,180
			(5,830,830	)				1,904,473					(3,244,429	)

			8,562,357					15,841,559					39,377,633



			(2,406,555	)				(1,130,660	)				(4,105,618	)
			(14,558	)				(7,227	)				(63,800	)
			(731,717	)				(314,208	)				(822,761	)
			(4,803,232	)				(3,456,821	)				(13,054,434	)
			(10,665,187	)				(4,072,001	)				(11,897,351	)
			NA					NA					NA

			(1,462,163	)				0					0
			(12,267	)				0					0
			(645,874	)				0					0
			(2,149,193	)				0					0
			(6,350,800	)				0					0
			NA					NA					NA

			(29,241,546	)				(8,980,917	)				(29,943,964	)


Shares					Shares					Shares


	4,273,635		44,497,600			2,838,669		29,637,521			13,311,056		137,941,039
	32,105		335,482			27,366		286,297			20,325		211,761
	1,350,015		14,092,977			897,481		9,386,887			5,111,405		53,157,160
	5,843,809		60,876,879			4,461,421		46,625,847			28,446,841		295,858,335
	34,857,579		364,139,773			11,335,035		118,440,895			46,504,821		483,062,432
	NA		NA			NA		NA			NA		NA

			483,942,711					204,377,447					970,230,727


	298,207		3,091,874			84,300		881,661			290,414		3,015,805
	2,430		25,198			664		6,955			5,347		55,498
	107,726		1,117,557			22,803		238,852			59,180		615,846
	544,235		5,661,346			275,423		2,882,942			1,041,715		10,829,409
	1,539,077		15,968,755			380,008		3,978,003			1,119,189		11,640,638
	NA		NA			NA		NA			NA		NA

			25,864,730					7,988,413					26,157,196



130 Wells Fargo Advantage Income Funds		Statements of Changes in Net Assets


	Income Plus Fund
	Six Months Ended
	February 28, 2011						Period Ended						Year Ended
	(Unaudited)						August 31, 2010⁵						May 31, 2010

	Shares						Shares						Shares
Capital share transactions (continued)
Payment for shares redeemed
Class A		(3,353,847	)	$	(39,601,364	)		(1,205,904	)	$	(14,251,698	)		(3,556,303	)	$	(40,237,141	)
Class B		(129,698	)		(1,537,042	)		(59,163	)		(699,455	)		(228,226	)		(2,574,563	)
Class C		(355,852	)		(4,207,505	)		(74,026	)		(874,624	)		(100,553	)		(1,139,506	)
Administrator Class		(18,269	)		(212,607	)		0	²		0	²	NA			NA
Institutional Class		(443,141	)		(5,235,758	)		(775,214	)		(9,159,312	)		(885,343	)		(9,866,443	)
Investor Class		(1,961,982	)		(23,174,711	)		(456,784	)		(5,390,183	)		(2,730,542	)		(30,921,744	)

					(73,968,987	)					(30,375,272	)					(84,739,397	)

Net asset value of shares issued in acquisition
Class A		0			0			9,336,899			109,431,454			0			0
Class B		0			0			374,320			4,393,788			0			0
Class C		0			0			1,116,775			13,088,682			0			0
Institutional Class		0			0			2,579,580			30,232,082			0			0

					0						157,146,006						0

Net increase in net assets resulting from capital share transactions					6,837,806						175,861,895						38,540,631

Total increase (decrease) in net assets					(10,220,149	)					195,439,209						66,766,493

Net assets
Beginning of period					642,908,458						447,469,249						380,702,756

End of period				$	632,688,309					$	642,908,458					$	447,469,249

Undistributed (overdistributed) net investment income				$	(275,308	)				$	468,676					$	886,352

Please see footnotes on p. 120

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



Statements of Changes in Net Assets		Wells Fargo Advantage Income Funds 131


Short Duration Government Bond Fund
Six Months Ended
February 28, 2011						Period Ended						Year Ended
(Unaudited)						August 31, 2010⁵						May 31, 2010

Shares						Shares						Shares


	(5,461,093	)	$	(56,871,646	)		(1,169,844	)	$	(12,216,732	)		(8,203,871	)	$	(85,153,962	)
	(46,402	)		(483,994	)		(49,127	)		(513,689	)		(320,254	)		(3,327,232	)
	(1,291,251	)		(13,408,219	)		(337,333	)		(3,528,780	)		(619,148	)		(6,438,983	)
	(23,152,798	)		(242,089,797	)		(11,681,872	)		(122,274,510	)		(15,554,123	)		(161,676,157	)
	(16,731,097	)		(174,236,048	)		(4,089,895	)		(42,787,847	)		(24,694,224	)		(256,621,537	)
NA			NA			NA			NA			NA			NA

				(487,089,704	)					(181,321,558	)					(513,217,871	)


	0			0			0			0			0			0
	0			0			0			0			0			0
	0			0			0			0			0			0
	0			0			0			0			0			0

				0						0						0

				22,717,737						31,044,302						483,170,052


				2,038,548						37,904,944						492,603,721


				1,263,259,640						1,225,354,696						732,750,975

			$	1,265,298,188					$	1,263,259,640					$	1,225,354,696

			$	(5,129,916	)				$	352,764					$	337,990



132 Wells Fargo Advantage Income Funds		Statements of Changes in Net Assets


	Short-Term Bond Fund
	Six Months Ended
	February 28, 2011						Period Ended						Year Ended
	(Unaudited)						August 31, 2010⁵						May 31, 2010

Operations
Net investment income				$	6,320,319					$	3,360,275					$	11,995,028
Net realized gains (losses) on investments					1,232,875						1,125,877						1,101,260
Net change in unrealized gains (losses) on investments					(1,500,228	)					4,459,586						19,222,079

Net increase in net assets resulting from operations					6,052,966						8,945,738						32,318,367


Distributions to shareholders from
Net investment income
Class A					(487,741	)					(251,008	)					(718,733	)
Class C					(98,869	)					(44,072	)					(101,073	)
Administrator Class				NA						NA						NA
Institutional Class					(3,394,703	)					(1,839,221	)					(4,513,491	)
Investor Class					(2,575,673	)					(1,449,844	)					(7,704,244	)

Total distributions to shareholders					(6,556,986	)					(3,584,145	)					(13,037,541	)


	Shares						Shares						Shares
Capital share transactions
Proceeds from shares sold
Class A		2,132,773			18,619,905			1,138,976			9,891,184			3,964,770			33,969,510
Class C		446,148			3,894,717			401,850			3,493,480			1,209,285			10,342,145
Administrator Class	NA			NA			NA			NA			NA			NA
Institutional Class		7,144,324			62,514,083			1,583,205			13,760,471			25,278,351			218,054,661
Investor Class		1,600,955			13,987,777			913,080			7,934,611			4,872,720			41,594,778

					99,016,482						35,079,746						303,961,094

Reinvestment of distributions
Class A		50,336			440,129			23,928			208,293			72,263			617,318
Class C		9,342			81,622			4,276			37,203			9,793			83,903
Administrator Class	NA			NA			NA			NA			NA			NA
Institutional Class		208,704			1,826,308			106,760			929,923			382,720			3,272,530
Investor Class		254,608			2,225,267			143,427			1,247,799			779,821			6,640,496

					4,573,326						2,423,218						10,614,247

Payment for shares redeemed
Class A		(1,445,230	)		(12,618,533	)		(546,215	)		(4,752,586	)		(1,258,962	)		(10,739,325	)
Class C		(219,171	)		(1,913,257	)		(45,016	)		(391,402	)		(87,635	)		(752,435	)
Administrator Class	NA			NA			NA			NA			NA			NA
Institutional Class		(9,344,744	)		(81,752,078	)		(1,230,671	)		(10,699,248	)		(2,161,500	)		(18,650,943	)
Investor Class		(3,565,654	)		(31,138,712	)		(1,426,228	)		(12,379,276	)		(5,190,195	)		(44,236,299	)

					(127,422,580	)					(28,222,512	)					(74,379,002	)

Net increase (decrease) in net assets resulting from capital share transactions					(23,832,772	)					9,280,452						240,196,339

Total increase (decrease) in net assets					(24,336,792	)					14,642,045						259,447,165

Net assets
Beginning of period					620,245,424						605,603,379						346,126,214

End of period				$	595,908,632					$	620,245,424					$	605,603,379

Undistributed (overdistributed) net investment income				$	(31,686	)				$	204,981					$	204,980

Please see footnotes on p. 120

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



Statements of Changes in Net Assets		Wells Fargo Advantage Income Funds 133


Short-Term High Yield Bond Fund
Six Months Ended
February 28, 2011						Period Ended						Year Ended
(Unaudited)						August 31, 2010⁵						May 31, 2010


			$	12,674,955					$	5,372,630					$	18,323,189
				1,962,293						1,821,442						5,778,167
				5,762,582						3,217,254						2,668,645

				20,399,830						10,411,326						26,770,001





				(4,721,499	)					(2,884,789	)					(8,624,075	)
				(890,042	)					(378,134	)					(1,109,276	)
				(2,642,148	)					(119	)²				NA
			NA						NA						NA
				(4,472,832	)					(2,147,607	)					(8,081,899	)

				(12,726,521	)					(5,410,649	)					(17,815,250	)


Shares						Shares						Shares


	8,099,069			66,995,994			4,560,426			37,127,596			24,314,932			196,369,572
	2,442,293			20,220,311			611,822			4,984,562			3,248,677			26,178,090
	26,308,139			217,567,448			7,331	²		60,000	²	NA			NA
NA			NA			NA			NA			NA			NA
	9,326,485			77,146,474			3,565,779			29,068,077			16,992,594			136,939,782

				381,930,227						71,240,235						359,487,444


	441,100			3,650,760			223,474			1,821,949			876,682			7,093,558
	71,456			591,567			31,233			254,624			92,944			753,888
	108,457			898,241			5	²		39	²	NA			NA
NA			NA			NA			NA			NA			NA
	428,072			3,542,012			211,114			1,721,259			761,858			6,162,193

				8,682,580						3,797,871						14,009,639


	(15,395,432	)		(127,282,522	)		(2,278,334	)		(18,528,047	)		(13,009,840	)		(105,253,532	)
	(651,044	)		(5,384,489	)		(317,107	)		(2,581,595	)		(681,266	)		(5,515,025	)
	(1,832,761	)		(15,173,537	)		0	²		0	²		NA			NA
NA			NA			NA			NA			NA			NA
	(9,021,144	)		(74,568,375	)		(2,531,358	)		(20,551,597	)		(13,720,091	)		(110,587,564	)

				(222,408,923	)					(41,661,239	)					(221,356,121	)


				168,203,884						33,376,867						152,140,962

				175,877,193						38,377,544						161,095,713

				449,810,035						411,432,491						250,336,778

			$	625,687,228					$	449,810,035					$	411,432,491


			$	(55,825	)				$	(4,259	)				$	33,091


134 Wells Fargo Advantage Income Funds		Statements of Changes in Net Assets


	Ultra Short-Term Income Fund
	Six Months Ended
	February 28, 2011					Period Ended					Year Ended
	(Unaudited)					August 31, 2010⁵					May 31, 2010

Operations
Net investment income			$	8,246,754				$	4,493,817				$	15,604,390
Net realized losses on investments				(6,225,412	)				(4,207,364	)				(9,736,503	)
Net change in unrealized gains (losses) on investments				14,225,068					9,539,033					45,934,602

Net increase in net assets resulting from operations				16,246,410					9,825,486					51,802,489


Distributions to shareholders from
Net investment income
Class A				(1,271,492	)				(807,763	)				(2,461,875	)
Class C				(68,469	)				(50,394	)				(186,102	)
Administrator Class				(1,158,325	)				(654,640	)				(1,930,925	)
Institutional Class				(3,370,278	)				(1,390,997	)				(2,237,594	)
Investor Class				(2,969,616	)				(2,026,086	)				(10,602,398	)

Total distributions to shareholders				(8,838,180	)				(4,929,880	)				(17,418,894	)


	Shares					Shares					Shares
Capital share transactions
Proceeds from shares sold
Class A		8,738,071		74,847,633			8,176,958		69,456,054			28,367,509		238,185,440
Class C		330,362		2,826,295			255,678		2,172,988			1,632,288		13,579,244
Administrator Class		8,103,875		69,129,698			5,483,615		46,430,837			9,556,172		79,407,119
Institutional Class		40,928,628		350,138,905			12,422,604		105,465,064			30,817,603		260,364,390
Investor Class		9,026,243		77,315,038			3,944,201		33,507,265			15,316,811		128,243,426

				574,257,569					257,032,208					719,779,619

Reinvestment of distributions
Class A		118,915		1,018,276			83,151		706,604			257,089		2,160,187
Class C		6,660		57,030			4,880		41,463			18,307		153,381
Administrator Class		123,339		1,052,204			72,191		611,364			197,008		1,639,015
Institutional Class		235,020		2,012,295			85,650		727,371			163,501		1,371,300
Investor Class		313,297		2,683,373			215,021		1,827,835			1,161,736		9,692,279

				6,823,178					3,914,637					15,016,162

Please see footnotes on p. 120

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


Statements of Changes in Net Assets		Wells Fargo Advantage Income Funds 135


	Ultra Short-Term Income Fund
	Six Months Ended
	February 28, 2011						Period Ended						Year Ended
	(Unaudited)						August 31, 2010⁵						May 31, 2010
	Shares						Shares						Shares

Capital Share transactions (continued)
Payment for shares redeemed
Class A		(12,232,342	)	$	(104,666,558	)		(6,459,551	)	$	(54,858,480	)		(15,956,760	)	$	(134,913,912	)
Class C		(528,232	)		(4,520,505	)		(286,169	)		(2,431,086	)		(296,600	)		(2,497,606	)
Administrator Class		(17,983,870	)		(153,452,216	)		(1,365,312	)		(11,552,536	)		(7,341,677	)		(61,196,498	)
Institutional Class		(17,330,014	)		(148,358,973	)		(5,150,365	)		(43,731,255	)		(11,173,875	)		(94,519,924	)
Investor Class		(12,076,133	)		(103,425,266	)		(6,368,955	)		(54,092,204	)		(15,628,588	)		(130,664,972	)

					(514,423,518	)					(166,665,561	)					(423,792,912	)

Net asset value of shares issued in acquisition
Class A		0			0			4,557,046			38,657,865			0			0
Class C		0			0			569,677			4,832,448			0			0
Administrator Class		0			0			10,233,395			86,499,948			0			0

					0						129,990,261						0

Net increase in net assets resulting from capital share transactions					66,657,229						224,271,545						311,002,869

Total increase in net assets					74,065,459						229,167,151						345,386,464

Net assets
Beginning of period					1,133,395,124						904,227,973						558,841,509

End of period				$	1,207,460,583					$	1,133,395,124					$	904,227,973


Undistributed (overdistributed) net investment income				$	(572,127	)				$	19,299					$	19,297



136 Wells Fargo Advantage Income Funds		Financial Highlights


	Beginning					Net Realized			Distributions
	Net Asset		Net			and Unrealized			from Net			Distributions
	Value Per		Investment			Gains (Losses)			Investment			from Net
	Share		Income			on Investments			Income			Realized Gains

Adjustable Rate Government Fund³
Class A
September 1, 2010 to February 28, 2011 (Unaudited)	$	9.12		0.07			0.02			(0.10	)		0.00
July 1, 2010 to August 31, 2010⁴	$	9.11		0.02			0.02			(0.01	)		0.00
July 1, 2009 to June 30, 2010	$	9.00		0.20			0.11			(0.20	)		0.00
July 1, 2008 to June 30, 2009	$	9.15		0.32			(0.14	)		(0.33	)		0.00
July 1, 2007 to June 30, 2008	$	9.21		0.44	⁵		(0.05	)		(0.45	)		0.00
July 1, 2006 to June 30, 2007	$	9.23		0.38			0.02			(0.42	)		0.00
July 1, 2005 to June 30, 2006	$	9.34		0.29	⁵		(0.05	)		(0.31	)		0.00
Class B
September 1, 2010 to February 28, 2011 (Unaudited)	$	9.12		0.04	⁵		0.03			(0.07	)		0.00
July 1, 2010 to August 31, 2010⁴	$	9.11		0.00	⁸		0.03			(0.00	)		0.00
July 1, 2009 to June 30, 2010	$	9.00		0.13	⁵		0.11			(0.13	)		0.00
July 1, 2008 to June 30, 2009	$	9.15		0.26	⁵		(0.14	)		(0.27	)		0.00
July 1, 2007 to June 30, 2008	$	9.21		0.37	⁵		(0.05	)		(0.38	)		0.00
July 1, 2006 to June 30, 2007	$	9.23		0.32	⁵		0.01			(0.35	)		0.00
July 1, 2005 to June 30, 2006	$	9.34		0.23	⁵		(0.06	)		(0.24	)		0.00
Class C
September 1, 2010 to February 28, 2011 (Unaudited)	$	9.12		0.04			0.03			(0.07	)		0.00
July 1, 2010 to August 31, 2010⁴	$	9.11		0.00	⁸		0.03			(0.00	)		0.00
July 1, 2009 to June 30, 2010	$	9.00		0.14			0.10			(0.13	)		0.00
July 1, 2008 to June 30, 2009	$	9.15		0.25			(0.13	)		(0.27	)		0.00
July 1, 2007 to June 30, 2008	$	9.21		0.37	⁵		(0.05	)		(0.38	)		0.00
July 1, 2006 to June 30, 2007	$	9.23		0.32	⁵		0.01			(0.35	)		0.00
July 1, 2005 to June 30, 2006	$	9.34		0.23	⁵		(0.06	)		(0.24	)		0.00
Administrator Class
September 1, 2010 to February 28, 2011 (Unaudited)	$	9.12		0.10			0.00			(0.11	)		0.00
July 30, 2010⁶ to August 31, 2010	$	9.11		0.02			0.01			(0.00	)		0.00
Institutional Class
September 1, 2010 to February 28, 2011 (Unaudited)	$	9.12		0.08			0.03			(0.11	)		0.00
July 1, 2010 to August 31, 2010⁴	$	9.11		0.02			0.03			(0.02	)		0.00
July 1, 2009 to June 30, 2010	$	9.00		0.23			0.10			(0.22	)		0.00
July 1, 2008 to June 30, 2009	$	9.15		0.35			(0.14	)		(0.36	)		0.00
July 1, 2007 to June 30, 2008	$	9.21		0.46			(0.05	)		(0.47	)		0.00
July 1, 2006 to June 30, 2007	$	9.23		0.41			0.02			(0.45	)		0.00
July 1, 2005 to June 30, 2006	$	9.34		0.32	⁵		(0.05	)		(0.34	)		0.00

Government Securities Fund
Class A
September 1, 2010 to February 28, 2011 (Unaudited)	$	11.16		0.12			(0.28	)		(0.16	)		0.00
June 1, 2010 to August 31, 2010⁹	$	10.89		0.06	⁵		0.30			(0.09	)		0.00
June 1, 2009 to May 31, 2010	$	10.71		0.29			0.39			(0.41	)		(0.09	)
June 1, 2008 to May 31, 2009¹⁰	$	10.45		0.39	⁵		0.34			(0.44	)		(0.03	)
June 1, 2007 to May 31, 2008	$	10.22		0.48			0.25			(0.50	)		0.00
June 1, 2006 to May 31, 2007	$	10.15		0.48			0.09			(0.50	)		0.00
June 1, 2005 to May 31, 2006	$	10.77		0.43			(0.51	)		(0.48	)		(0.06	)
Class B
September 1, 2010 to February 28, 2011 (Unaudited)	$	11.16		0.07			(0.27	)		(0.12	)		0.00
June 1, 2010 to August 31, 2010⁹	$	10.89		0.04	⁵		0.30			(0.07	)		0.00
June 1, 2009 to May 31, 2010	$	10.70		0.24	⁵		0.37			(0.33	)		(0.09	)
July 18, 2008⁶ to May 31, 2009	$	10.32		0.27	⁵		0.45			(0.31	)		(0.03	)
Class C
September 1, 2010 to February 28, 2011 (Unaudited)	$	11.16		0.08			(0.28	)		(0.12	)		0.00
June 1, 2010 to August 31, 2010⁹	$	10.89		0.04	⁵		0.30			(0.07	)		0.00
June 1, 2009 to May 31, 2010	$	10.70		0.23			0.38			(0.33	)		(0.09	)
June 1, 2008 to May 31, 2009	$	10.45		0.30	⁵		0.35			(0.37	)		(0.03	)
June 1, 2007 to May 31, 2008	$	10.22		0.39			0.25			(0.41	)		0.00
June 1, 2006 to May 31, 2007	$	10.15		0.40			0.09			(0.42	)		0.00
June 1, 2005 to May 31, 2006	$	10.77		0.35			(0.50	)		(0.41	)		(0.06	)

Please see footnotes on p. 148

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



Financial Highlights		Wells Fargo Advantage Income Funds 137


Distributions			Ending
from			Net Asset		Ratio to Average Net Assets (Annualized)												Portfolio			Net Assets at
Return			Value Per		Net Investment			Gross			Net			Total			Turnover			End of Period
of Capital			Share		Income			Expenses			Expenses			Return¹			Rate²			(000’s omitted)



	0.00		$	9.11		1.67	%		0.89	%		0.74	%		0.99	%		10	%	$	289,723
	(0.02	)⁵	$	9.12		1.18	%		0.88	%		0.74	%		0.49	%		0	%	$	353,453
	0.00		$	9.11		2.27	%		0.73	%		0.73	%		3.51	%		14	%	$	271,853
	0.00		$	9.00		3.61	%		0.73	%		0.73	%		2.09	%		41	%	$	277,862
	0.00		$	9.15		4.74	%		0.98	%⁷		0.94	%⁷		4.30	%		39	%	$	270,482
	0.00		$	9.21		4.18	%		1.11	%⁷		1.07	%⁷		4.42	%		29	%	$	311,031
	(0.04	)⁵	$	9.23		3.13	%		0.93	%⁷		0.91	%⁷		2.61	%		16	%	$	486,223

	0.00		$	9.12		0.93	%		1.64	%		1.49	%		0.72	%		10	%	$	29,982
	(0.02	)⁵	$	9.12		0.24	%		1.62	%		1.49	%		0.36	%		0	%	$	50,229
	0.00		$	9.11		1.55	%		1.48	%		1.48	%		2.73	%		14	%	$	52,414
	0.00		$	9.00		2.95	%		1.48	%		1.48	%		1.33	%		41	%	$	90,520
	0.00		$	9.15		3.99	%		1.70	%⁷		1.70	%⁷		3.53	%		39	%	$	183,596
	0.00		$	9.21		3.45	%		1.81	%⁷		1.81	%⁷		3.65	%		29	%	$	274,387
	(0.04	)⁵	$	9.23		2.45	%		1.64	%⁷		1.63	%⁷		1.90	%		16	%	$	401,063

	0.00		$	9.12		0.91	%		1.64	%		1.49	%		0.72	%		10	%	$	316,144
	(0.02	)⁵	$	9.12		0.23	%		1.62	%		1.51	%		0.36	%		0	%	$	340,278
	0.00		$	9.11		1.52	%		1.48	%		1.48	%		2.73	%		14	%	$	349,562
	0.00		$	9.00		2.88	%		1.48	%		1.48	%		1.33	%		41	%	$	360,607
	0.00		$	9.15		3.99	%		1.70	%⁷		1.70	%⁷		3.53	%		39	%	$	395,703
	0.00		$	9.21		3.45	%		1.81	%⁷		1.81	%⁷		3.65	%		29	%	$	497,661
	(0.04	)⁵	$	9.23		2.43	%		1.63	%⁷		1.62	%⁷		1.90	%		16	%	$	736,772

	0.00		$	9.11		1.65	%		0.82	%		0.60	%		1.06	%		10	%	$	25,632
	(0.02	)⁵	$	9.12		2.01	%		0.90	%		0.62	%		0.31	%		0	%	$	10

	0.00		$	9.12		1.91	%		0.56	%		0.49	%		1.22	%		10	%	$	561,817
	(0.02	)⁵	$	9.12		1.21	%		0.55	%		0.49	%		0.53	%		0	%	$	368,066
	0.00		$	9.11		2.52	%		0.48	%		0.48	%		3.76	%		14	%	$	389,075
	0.00		$	9.00		3.91	%		0.48	%		0.48	%		2.35	%		41	%	$	483,565
	0.00		$	9.15		4.98	%		0.70	%⁷		0.70	%⁷		4.57	%		39	%	$	890,857
	0.00		$	9.21		4.47	%		0.80	%⁷		0.80	%⁷		4.69	%		29	%	$	1,361,685
	(0.04	)⁵	$	9.23		3.46	%		0.64	%⁷		0.63	%⁷		2.92	%		16	%	$	1,548,974



	0.00		$	10.84		2.15	%		0.84	%		0.84	%		(1.45	)%		149	%	$	286,375
	0.00		$	11.16		2.10	%		0.86	%		0.86	%		3.29	%		89	%	$	326,800
	0.00		$	10.89		2.71	%		0.89	%		0.89	%		6.48	%		194	%	$	174,781
	0.00		$	10.71		3.65	%		0.90	%		0.90	%		7.17	%		368	%	$	181,342
	0.00		$	10.45		4.54	%		1.03	%		0.90	%		7.21	%		263	%	$	71,233
	0.00		$	10.22		4.64	%		1.06	%		0.92	%		5.71	%		159	%	$	59,760
	0.00		$	10.15		4.14	%		1.05	%		0.95	%		(0.74	)%		207	%	$	60,242

	0.00		$	10.84		1.40	%		1.59	%		1.59	%		(1.82	)%		149	%	$	9,199
	0.00		$	11.16		1.29	%		1.60	%		1.60	%		3.10	%		89	%	$	11,495
	0.00		$	10.89		2.09	%		1.63	%		1.63	%		5.80	%		194	%	$	2,159
	0.00		$	10.70		2.94	%		1.65	%		1.65	%		7.00	%		368	%	$	5,297

	0.00		$	10.84		1.40	%		1.59	%		1.59	%		(1.82	)%		149	%	$	59,682
	0.00		$	11.16		1.35	%		1.61	%		1.61	%		3.09	%		89	%	$	59,580
	0.00		$	10.89		1.89	%		1.64	%		1.64	%		5.78	%		194	%	$	34,927
	0.00		$	10.70		2.78	%		1.63	%		1.63	%		6.28	%		368	%	$	21,783
	0.00		$	10.45		3.69	%		1.77	%		1.70	%		6.36	%		263	%	$	2,595
	0.00		$	10.22		3.87	%		1.81	%		1.70	%		4.89	%		159	%	$	1,335
	0.00		$	10.15		3.39	%		1.80	%		1.70	%		(1.48	)%		207	%	$	1,370



138 Wells Fargo Advantage Income Funds		Financial Highlights


	Beginning					Net Realized			Distributions
	Net Asset		Net			and Unrealized			from Net			Distributions
	Value Per		Investment			Gains (Losses)			Investment			from Net
	Share		Income			on Investments			Income			Realized Gains

Government Securities Fund (continued)
Administrator Class
September 1, 2010 to February 28, 2011 (Unaudited)	$	11.16		0.13			(0.28	)		(0.17	)		0.00
June 1, 2010 to August 31, 2010⁹	$	10.89		0.06	⁵		0.30			(0.09	)		0.00
June 1, 2009 to May 31, 2010	$	10.70		0.32			0.39			(0.43	)		(0.09	)
June 1, 2008 to May 31, 2009	$	10.45		0.41	⁵		0.34			(0.47	)		(0.03	)
June 1, 2007 to May 31, 2008	$	10.22		0.49			0.26			(0.52	)		0.00
June 1, 2006 to May 31, 2007	$	10.15		0.50			0.09			(0.52	)		0.00
June 1, 2005 to May 31, 2006	$	10.77		0.48			(0.53	)		(0.51	)		(0.06	)
Institutional Class
September 1, 2010 to February 28, 2011 (Unaudited)	$	11.15		0.14			(0.28	)		(0.18	)		0.00
June 1, 2010 to August 31, 2010⁹	$	10.88		0.07	⁵		0.30			(0.10	)		0.00
June 1, 2009 to May 31, 2010	$	10.70		0.32	⁵		0.41			(0.46	)		(0.09	)
June 1, 2008 to May 31, 2009	$	10.44		0.44	⁵		0.34			(0.49	)		(0.03	)
June 1, 2007 to May 31, 2008	$	10.21		0.52			0.25			(0.54	)		0.00
June 1, 2006 to May 31, 2007	$	10.14		0.54			0.08			(0.55	)		0.00
June 1, 2005 to May 31, 2006	$	10.77		0.49			(0.53	)		(0.53	)		(0.06	)
Investor Class
September 1, 2010 to February 28, 2011 (Unaudited)	$	11.17		0.11			(0.27	)		(0.16	)		0.00
June 1, 2010 to August 31, 2010⁹	$	10.90		0.06	⁵		0.30			(0.09	)		0.00
June 1, 2009 to May 31, 2010	$	10.71		0.29			0.40			(0.41	)		(0.09	)
June 1, 2008 to May 31, 2009	$	10.46		0.39	⁵		0.33			(0.44	)		(0.03	)
June 1, 2007 to May 31, 2008	$	10.22		0.47			0.26			(0.49	)		0.00
June 1, 2006 to May 31, 2007	$	10.16		0.47			0.09			(0.50	)		0.00
June 1, 2005 to May 31, 2006	$	10.77		0.42			(0.49	)		(0.48	)		(0.06	)

High Income Fund
Class A
September 1, 2010 to February 28, 2011 (Unaudited)	$	7.14		0.25			0.38			(0.25	)		0.00
June 1, 2010 to August 31, 2010⁹	$	6.90		0.13			0.24			(0.13	)		0.00
June 1, 2009 to May 31, 2010	$	6.35		0.53			0.54			(0.52	)		0.00
June 1, 2008 to May 31, 2009¹⁰	$	7.25		0.50			(0.90	)		(0.50	)		0.00
June 1, 2007 to May 31, 2008	$	7.89		0.53			(0.64	)		(0.53	)		0.00
June 1, 2006 to May 31, 2007	$	7.63		0.55			0.26			(0.55	)		0.00
June 1, 2005 to May 31, 2006	$	7.63		0.53			0.02			(0.55	)		0.00
Class B
September 1, 2010 to February 28, 2011 (Unaudited)	$	7.13		0.23			0.39			(0.23	)		0.00
June 1, 2010 to August 31, 2010⁹	$	6.90		0.12			0.23			(0.12	)		0.00
June 1, 2009 to May 31, 2010	$	6.35		0.48			0.54			(0.47	)		0.00
July 18, 2008⁶ to May 31, 2009	$	6.99		0.39			(0.64	)		(0.39	)		0.00
Class C
September 1, 2010 to February 28, 2011 (Unaudited)	$	7.14		0.23			0.38			(0.23	)		0.00
June 1, 2010 to August 31, 2010⁹	$	6.90		0.12			0.24			(0.12	)		0.00
June 1, 2009 to May 31, 2010	$	6.35		0.48			0.54			(0.47	)		0.00
July 18, 2008⁶ to May 31, 2009	$	6.99		0.39			(0.64	)		(0.39	)		0.00
Administrator Class
September 1, 2010 to February 28, 2011 (Unaudited)	$	7.20		0.26			0.39			(0.26	)		0.00
July 30, 2010⁶ to August 31, 2010	$	7.23		0.04			(0.02	)		(0.05	)		0.00
Institutional Class
September 1, 2010 to February 28, 2011 (Unaudited)	$	7.20		0.27			0.39			(0.27	)		0.00
June 1, 2010 to August 31, 2010⁹	$	6.96		0.14			0.24			(0.14	)		0.00
June 1, 2009 to May 31, 2010	$	6.40		0.57			0.54			(0.55	)		0.00
June 1, 2008 to May 31, 2009	$	7.31		0.53			(0.91	)		(0.53	)		0.00
June 1, 2007 to May 31, 2008	$	7.96		0.56			(0.65	)		(0.56	)		0.00
June 1, 2006 to May 31, 2007	$	7.70		0.59			0.26			(0.59	)		0.00
June 1, 2005 to May 31, 2006	$	7.69		0.45			0.13			(0.58	)		0.00

Please see footnotes on p. 148

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



Financial Highlights		Wells Fargo Advantage Income Funds 139


Ending
Net Asset		Ratio to Average Net Assets (Annualized)												Portfolio			Net Assets at
Value Per		Net Investment			Gross			Net			Total			Turnover			End of Period
Share		Income			Expenses			Expenses			Return¹			Rate²			(000’s omitted)



$	10.84		2.37	%		0.77	%		0.64	%		(1.35	)%		149	%	$	635,800
$	11.16		2.30	%		0.79	%		0.67	%		3.34	%		89	%	$	366,430
$	10.89		2.90	%		0.81	%		0.70	%		6.78	%		194	%	$	243,760
$	10.70		3.86	%		0.81	%		0.70	%		7.28	%		368	%	$	266,579
$	10.45		4.72	%		0.85	%		0.70	%		7.42	%		263	%	$	123,993
$	10.22		4.87	%		0.88	%		0.70	%		5.94	%		159	%	$	117,347
$	10.15		4.50	%		0.88	%		0.70	%		(0.49	)%		207	%	$	102,434

$	10.83		2.55	%		0.52	%		0.48	%		(1.28	)%		149	%	$	701,383
$	11.15		2.52	%		0.52	%		0.48	%		3.39	%		89	%	$	531,890
$	10.88		3.06	%		0.54	%		0.48	%		6.92	%		194	%	$	463,726
$	10.70		4.14	%		0.56	%		0.48	%		7.62	%		368	%	$	313,486
$	10.44		4.96	%		0.59	%		0.48	%		7.66	%		263	%	$	326,015
$	10.21		5.08	%		0.61	%		0.48	%		6.17	%		159	%	$	236,424
$	10.14		4.60	%		0.60	%		0.48	%		(0.37	)%		207	%	$	85,056

$	10.85		2.11	%		0.87	%		0.87	%		(1.46	)%		149	%	$	707,147
$	11.17		2.10	%		0.90	%		0.90	%		3.28	%		89	%	$	1,146,356
$	10.90		2.66	%		0.94	%		0.94	%		6.53	%		194	%	$	1,024,088
$	10.71		3.65	%		0.94	%		0.94	%		7.02	%		368	%	$	1,134,770
$	10.46		4.48	%		1.16	%		0.95	%		7.26	%		263	%	$	869,009
$	10.22		4.59	%		1.23	%		0.97	%		5.55	%		159	%	$	733,191
$	10.16		4.06	%		1.22	%		1.02	%		(0.71	)%		207	%	$	836,567



$	7.52		6.96	%		1.00	%		0.90	%		9.00	%		41	%	$	122,109
$	7.14		7.52	%		1.00	%		0.90	%		5.44	%		11	%	$	124,730
$	6.90		7.86	%		1.03	%		0.90	%		17.20	%		77	%	$	99,515
$	6.35		8.13	%		1.05	%		0.89	%		(5.07	)%		52	%	$	105,678
$	7.25		7.04	%		1.19	%		0.86	%		(1.40	)%		53	%	$	10,471
$	7.89		7.07	%		1.16	%		0.86	%		10.96	%		82	%	$	115,254
$	7.63		6.39	%		1.17	%		0.87	%		7.34	%		98	%	$	113,433

$	7.52		6.21	%		1.75	%		1.65	%		8.75	%		41	%	$	4,037
$	7.13		6.66	%		1.75	%		1.65	%		5.10	%		11	%	$	5,451
$	6.90		7.17	%		1.78	%		1.65	%		16.33	%		77	%	$	4,564
$	6.35		7.35	%		1.79	%		1.65	%		(3.11	)%		52	%	$	7,908

$	7.52		6.21	%		1.75	%		1.65	%		8.60	%		41	%	$	32,348
$	7.14		6.75	%		1.75	%		1.65	%		5.25	%		11	%	$	30,332
$	6.90		7.04	%		1.78	%		1.65	%		16.33	%		77	%	$	18,573
$	6.35		7.29	%		1.79	%		1.65	%		(3.12	)%		52	%	$	13,460

$	7.59		7.10	%		0.95	%		0.80	%		9.15	%		41	%	$	17,896
$	7.20		7.78	%		0.99	%		0.84	%		0.22	%		11	%	$	10

$	7.59		7.36	%		0.67	%		0.50	%		9.31	%		41	%	$	223,611
$	7.20		7.94	%		0.67	%		0.50	%		5.52	%		11	%	$	197,158
$	6.96		8.18	%		0.68	%		0.50	%		17.76	%		77	%	$	189,936
$	6.40		8.42	%		0.70	%		0.50	%	��	(4.75	)%		52	%	$	119,004
$	7.31		8.15	%		0.80	%		0.48	%		(1.06	)%		53	%	$	90,200
$	7.96		7.53	%		0.75	%		0.43	%		11.39	%		82	%	$	242
$	7.70		5.83	%		0.77	%		0.43	%		7.96	%		98	%	$	3,208



140 Wells Fargo Advantage Income Funds		Financial Highlights


	Beginning					Net Realized			Distributions
	Net Asset		Net			and Unrealized			from Net			Distributions
	Value Per		Investment			Gains (Losses)			Investment			from Net
	Share		Income			on Investments			Income			Realized Gains

High Income Fund (continued)
Investor Class
September 1, 2010 to February 28, 2011 (Unaudited)	$	7.16		0.25			0.39			(0.25	)		0.00
June 1, 2010 to August 31, 2010⁹	$	6.93		0.13			0.23			(0.13	)		0.00
June 1, 2009 to May 31, 2010	$	6.37		0.53			0.55			(0.52	)		0.00
June 1, 2008 to May 31, 2009	$	7.28		0.50			(0.91	)		(0.50	)		0.00
June 1, 2007 to May 31, 2008	$	7.92		0.53			(0.64	)		(0.53	)		0.00
June 1, 2006 to May 31, 2007	$	7.66		0.55			0.26			(0.55	)		0.00
June 1, 2005 to May 31, 2006	$	7.66		0.41			0.14			(0.55	)		0.00

High Yield Bond Fund¹³
Class A
September 1, 2010 to February 28, 2011 (Unaudited)	$	3.05		0.10			0.13			(0.10	)		0.00
May 1, 2010 to August 31, 2010¹¹	$	3.10		0.08			(0.05	)		(0.08	)		0.00
May 1, 2009 to April 30, 2010	$	2.39		0.25			0.72			(0.26	)		0.00
May 1, 2008 to April 30, 2009	$	3.13		0.27			(0.76	)		(0.25	)		0.00
May 1, 2007 to April 30, 2008	$	3.40		0.25			(0.28	)		(0.24	)		0.00
May 1, 2006 to April 30, 2007	$	3.31		0.24	⁵		0.09			(0.24	)		0.00
May 1, 2005 to April 30, 2006	$	3.32		0.23			0.00			(0.24	)		0.00
Class B
September 1, 2010 to February 28, 2011 (Unaudited)	$	3.05		0.08			0.14			(0.09	)		0.00
May 1, 2010 to August 31, 2010¹¹	$	3.10		0.07			(0.05	)		(0.07	)		0.00
May 1, 2009 to April 30, 2010	$	2.39		0.22			0.73			(0.24	)		0.00
May 1, 2008 to April 30, 2009	$	3.13		0.25	⁵		(0.76	)		(0.23	)		0.00
May 1, 2007 to April 30, 2008	$	3.40		0.22			(0.28	)		(0.21	)		0.00
May 1, 2006 to April 30, 2007	$	3.31		0.21	⁵		0.09			(0.21	)		0.00
May 1, 2005 to April 30, 2006	$	3.32		0.21	⁵		(0.01	)¹²		(0.21	)		0.00
Class C
September 1, 2010 to February 28, 2011 (Unaudited)	$	3.05		0.09			0.13			(0.09	)		0.00
May 1, 2010 to August 31, 2010¹¹	$	3.10		0.07			(0.05	)		(0.07	)		0.00
May 1, 2009 to April 30, 2010	$	2.39		0.23			0.72			(0.24	)		0.00
May 1, 2008 to April 30, 2009	$	3.13		0.25			(0.76	)		(0.23	)		0.00
May 1, 2007 to April 30, 2008	$	3.40		0.22			(0.28	)		(0.21	)		0.00
May 1, 2006 to April 30, 2007	$	3.31		0.21	⁵		0.09			(0.21	)		0.00
May 1, 2005 to April 30, 2006	$	3.32		0.21			(0.01	)¹²		(0.21	)		0.00
Administrator Class
September 1, 2010 to February 28, 2011 (Unaudited)	$	3.05		0.11			0.13			(0.11	)		0.00
May 1, 2010 to August 31, 2010¹¹	$	3.10		0.08			(0.05	)		(0.08	)		0.00
May 1, 2009 to April 30, 2010	$	2.39		0.26			0.72			(0.27	)		0.00
May 1, 2008 to April 30, 2009	$	3.13		0.28	⁵		(0.76	)		(0.26	)		0.00
May 1, 2007 to April 30, 2008	$	3.40		0.26			(0.29	)		(0.24	)		0.00
May 1, 2006 to April 30, 2007	$	3.31		0.25	⁵		0.09			(0.25	)		0.00
May 1, 2005 to April 30, 2006	$	3.32		0.24			0.00			(0.25	)		0.00

Income Plus Fund
Class A
September 1, 2010 to February 28, 2011 (Unaudited)	$	12.00		0.18	⁵		(0.19	)		(0.22	)		(0.09	)
June 1, 2010 to August 31, 2010⁹	$	11.59		0.09	⁵		0.44			(0.12	)		0.00
June 1, 2009 to May 31, 2010	$	10.82		0.37	⁵		0.88			(0.48	)		0.00
June 1, 2008 to May 31, 2009	$	10.70		0.42	⁵		0.15			(0.45	)		0.00
June 1, 2007 to May 31, 2008	$	10.65		0.48	⁵		0.08			(0.51	)		0.00
June 1, 2006 to May 31, 2007	$	10.49		0.53	⁵		0.19			(0.56	)		0.00
June 1, 2005 to May 31, 2006	$	10.99		0.47	⁵		(0.37	)		(0.60	)		0.00

Please see footnotes on p. 148

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



Financial Highlights		Wells Fargo Advantage Income Funds 141


Ending
Net Asset		Ratio to Average Net Assets (Annualized)												Portfolio			Net Assets at
Value Per		Net Investment			Gross			Net			Total			Turnover			End of Period
Share		Income			Expenses			Expenses			Return¹			Rate²			(000’s omitted)



$	7.55		6.93	%		1.03	%		0.93	%		9.11	%		41	%	$	337,028
$	7.16		7.49	%		1.04	%		0.94	%		5.27	%		11	%	$	322,015
$	6.93		7.76	%		1.07	%		0.95	%		17.28	%		77	%	$	286,836
$	6.37		7.95	%		1.10	%		0.92	%		(5.20	)%		52	%	$	231,308
$	7.28		7.08	%		1.33	%		0.86	%		(1.35	)%		53	%	$	179,909
$	7.92		7.07	%		1.33	%		0.86	%		10.95	%		82	%	$	230,287
$	7.66		5.41	%		1.34	%		0.86	%		7.36	%		98	%	$	208,482



$	3.18		6.64	%		1.04	%		1.03	%		7.72	%		41	%	$	291,139
$	3.05		7.70	%		1.06	%		1.05	%		0.99	%		46	%	$	281,044
$	3.10		8.96	%		1.14	%		1.13	%		42.27	%		129	%	$	292,039
$	2.39		10.60	%		1.22	%		1.08	%		(15.50	)%		119	%	$	217,199
$	3.13		7.82	%		1.12	%		1.07	%		(0.92	)%		110	%	$	270,758
$	3.40		7.19	%		1.10	%		1.06	%		10.35	%		48	%	$	335,411
$	3.31		6.95	%		1.05	%		1.04	%		7.01	%		67	%	$	388,523

$	3.18		5.89	%		1.79	%		1.78	%		7.33	%		41	%	$	41,602
$	3.05		6.98	%		1.81	%		1.81	%		0.74	%		46	%	$	50,671
$	3.10		8.29	%		1.89	%		1.88	%		41.23	%		129	%	$	54,017
$	2.39		9.70	%		1.97	%		1.83	%		(16.13	)%		119	%	$	58,429
$	3.13		7.06	%		1.82	%		1.82	%		(1.65	)%		110	%	$	108,327
$	3.40		6.46	%		1.80	%		1.80	%		9.55	%		48	%	$	150,609
$	3.31		6.25	%		1.75	%		1.75	%		6.27	%		67	%	$	176,663

$	3.18		5.89	%		1.79	%		1.78	%		7.33	%		41	%	$	108,303
$	3.05		6.97	%		1.81	%		1.81	%		0.74	%		46	%	$	104,954
$	3.10		8.21	%		1.89	%		1.88	%		41.23	%		129	%	$	106,886
$	2.39		9.79	%		1.97	%		1.83	%		(16.13	)%		119	%	$	78,995
$	3.13		7.06	%		1.82	%		1.82	%		(1.65	)%		110	%	$	118,638
$	3.40		6.46	%		1.80	%		1.80	%		9.55	%		48	%	$	161,941
$	3.31		6.25	%		1.75	%		1.75	%		6.27	%		67	%	$	201,975

$	3.18		6.86	%		0.97	%		0.80	%		7.85	%		41	%	$	34,697
$	3.05		7.95	%		0.87	%		0.81	%		1.07	%		46	%	$	48,709
$	3.10		9.17	%		0.89	%		0.88	%		42.62	%		129	%	$	93,639
$	2.39		11.89	%		0.94	%		0.80	%		(15.28	)%		119	%	$	68,991
$	3.13		8.05	%		0.82	%		0.82	%		(0.66	)%		110	%	$	25,729
$	3.40		7.42	%		0.80	%		0.80	%		10.65	%		48	%	$	27,147
$	3.31		7.23	%		0.75	%		0.75	%		7.33	%		67	%	$	50,365



$	11.68		3.12	%		0.87	%		0.87	%		(0.03	)%		120	%	$	262,876
$	12.00		3.07	%		0.91	%		0.88	%		4.62	%		84	%	$	261,227
$	11.59		3.29	%		1.03	%		0.90	%		11.74	%		187	%	$	130,382
$	10.82		4.01	%		1.05	%		0.90	%		5.52	%		455	%	$	94,938
$	10.70		4.50	%		1.35	%		1.00	%		5.37	%		245	%	$	43,481
$	10.65		4.96	%		1.34	%		1.00	%		7.04	%		205	%	$	37,526
$	10.49		4.38	%		1.29	%		1.00	%		0.97	%		171	%	$	38,995



142 Wells Fargo Advantage Income Funds		Financial Highlights


	Beginning					Net Realized			Distributions
	Net Asset		Net			and Unrealized			from Net			Distributions
	Value Per		Investment			Gains (Losses)			Investment			from Net
	Share		Income			on Investments			Income			Realized Gains

Income Plus Fund (continued)
Class B
September 1, 2010 to February 28, 2011 (Unaudited)	$	12.01		0.14	⁵		(0.18	)		(0.18	)		(0.09	)
June 1, 2010 to August 31, 2010⁹	$	11.61		0.07	⁵		0.43			(0.10	)		0.00
June 1, 2009 to May 31, 2010	$	10.82		0.29	⁵		0.89			(0.39	)		0.00
June 1, 2008 to May 31, 2009	$	10.70		0.35	⁵		0.14			(0.37	)		0.00
June 1, 2007 to May 31, 2008	$	10.65		0.40	⁵		0.08			(0.43	)		0.00
June 1, 2006 to May 31, 2007	$	10.49		0.35	⁵		0.29			(0.48	)		0.00
June 1, 2005 to May 31, 2006	$	10.99		0.39	⁵		(0.37	)		(0.52	)		0.00
Class C
September 1, 2010 to February 28, 2011 (Unaudited)	$	12.00		0.14	⁵		(0.19	)		(0.18	)		(0.09	)
June 1, 2010 to August 31, 2010⁹	$	11.59		0.07	⁵		0.44			(0.10	)		0.00
June 1, 2009 to May 31, 2010	$	10.82		0.29	⁵		0.88			(0.40	)		0.00
June 1, 2008 to May 31, 2009	$	10.69		0.35	⁵		0.15			(0.37	)		0.00
June 1, 2007 to May 31, 2008	$	10.65		0.40	⁵		0.07			(0.43	)		0.00
June 1, 2006 to May 31, 2007	$	10.49		0.43	⁵		0.21			(0.48	)		0.00
June 1, 2005 to May 31, 2006	$	10.99		0.39	⁵		(0.37	)		(0.52	)		0.00
Administrator Class
September 1, 2010 to February 28, 2011 (Unaudited)	$	12.00		0.19	⁵		(0.20	)		(0.23	)		(0.09	)
July 30, 2010⁶ to August 31, 2010	$	11.87		0.03	⁵		0.14			(0.04	)		0.00
Institutional Class
September 1, 2010 to February 28, 2011 (Unaudited)	$	12.00		0.20	⁵		(0.19	)		(0.24	)		(0.09	)
June 1, 2010 to August 31, 2010⁹	$	11.60		0.10	⁵		0.43			(0.13	)		0.00
June 1, 2009 to May 31, 2010	$	10.82		0.41	⁵		0.88			(0.51	)		0.00
June 1, 2008⁶ to May 31, 2009	$	10.51		0.39	⁵		0.36			(0.44	)		0.00
Investor Class
September 1, 2010 to February 28, 2011 (Unaudited)	$	12.00		0.18	⁵		(0.19	)		(0.22	)		(0.09	)
June 1, 2010 to August 31, 2010⁹	$	11.60		0.09	⁵		0.43			(0.12	)		0.00
June 1, 2009 to May 31, 2010	$	10.82		0.37	⁵		0.88			(0.47	)		0.00
June 1, 2008⁶ to May 31, 2009	$	10.51		0.36	⁵		0.36			(0.41	)		0.00

Short Duration Government Bond Fund
Class A
September 1, 2010 to February 28, 2011 (Unaudited)	$	10.47		0.09			(0.03	)		(0.14	)		(0.09	)
June 1, 2010 to August 31, 2010	$	10.41		0.05			0.08			(0.07	)		0.00
June 1, 2009 to May 31, 2010⁹	$	10.30		0.19	⁵		0.20			(0.28	)		0.00
June 1, 2008 to May 31, 2009	$	10.01		0.37			0.32			(0.40	)		0.00
June 1, 2007 to May 31, 2008	$	9.85		0.40			0.18			(0.42	)		0.00
June 1, 2006 to May 31, 2007	$	9.81		0.39			0.06			(0.41	)		0.00
June 1, 2005 to May 31, 2006	$	10.01		0.33	⁵		(0.18	)		(0.35	)		0.00
Class B
September 1, 2010 to February 28, 2011 (Unaudited)	$	10.48		0.06			(0.04	)		(0.10	)		(0.09	)
June 1, 2010 to August 31, 2010⁹	$	10.42		0.03			0.08			(0.05	)		0.00
June 1, 2009 to May 31, 2010	$	10.31		0.14	⁵		0.18			(0.21	)		0.00
June 1, 2008 to May 31, 2009	$	10.01		0.30			0.32			(0.32	)		0.00
June 1, 2007 to May 31, 2008	$	9.86		0.33			0.16			(0.34	)		0.00
June 1, 2006 to May 31, 2007	$	9.81		0.33			0.06			(0.34	)		0.00
June 1, 2005 to May 31, 2006	$	10.02		0.25	⁵		(0.19	)		(0.27	)		0.00
Class C
September 1, 2010 to February 28, 2011 (Unaudited)	$	10.48		0.06			(0.04	)		(0.10	)		(0.09	)
June 1, 2010 to August 31, 2010⁹	$	10.43		0.03			0.07			(0.05	)		0.00
June 1, 2009 to May 31, 2010	$	10.32		0.11	⁵		0.20			(0.20	)		0.00
June 1, 2008 to May 31, 2009	$	10.02		0.34			0.28			(0.32	)		0.00
June 1, 2007 to May 31, 2008	$	9.87		0.31			0.18			(0.34	)		0.00
June 1, 2006 to May 31, 2007	$	9.82		0.30			0.09			(0.34	)		0.00
June 1, 2005 to May 31, 2006	$	10.03		0.25	⁵		(0.19	)		(0.27	)		0.00

Please see footnotes on p. 148

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



Financial Highlights		Wells Fargo Advantage Income Funds 143


Ending
Net Asset		Ratio to Average Net Assets (Annualized)												Portfolio			Net Assets at
Value Per		Net Investment			Gross			Net			Total			Turnover			End of Period
Share		Income			Expenses			Expenses			Return¹			Rate²			(000’s omitted)



$	11.70		2.36	%		1.62	%		1.62	%		(0.33	)%		120	%	$	4,977
$	12.01		2.33	%		1.65	%		1.62	%		4.31	%		84	%	$	6,140
$	11.61		2.54	%		1.78	%		1.65	%		11.04	%		187	%	$	1,839
$	10.82		3.30	%		1.80	%		1.65	%		4.69	%		455	%	$	3,937
$	10.70		3.75	%		2.10	%		1.75	%		4.58	%		245	%	$	7,067
$	10.65		4.24	%		2.09	%		1.75	%		6.24	%		205	%	$	10,682
$	10.49		3.61	%		2.04	%		1.75	%		0.21	%		171	%	$	14,833

$	11.68		2.37	%		1.62	%		1.62	%		(0.40	)%		120	%	$	29,593
$	12.00		2.32	%		1.66	%		1.63	%		4.42	%		84	%	$	30,253
$	11.59		2.53	%		1.78	%		1.65	%		10.93	%		187	%	$	14,533
$	10.82		3.32	%		1.80	%		1.65	%		4.85	%		455	%	$	7,242
$	10.69		3.75	%		2.10	%		1.75	%		4.50	%		245	%	$	4,870
$	10.65		4.23	%		2.09	%		1.75	%		6.24	%		205	%	$	4,633
$	10.49		3.63	%		2.04	%		1.75	%		0.21	%		171	%	$	5,581

$	11.67		3.40	%		0.80	%		0.75	%		(0.02	)%		120	%	$	2,459
$	12.00		3.31	%		0.86	%		0.86	%		1.43	%		84	%	$	10

$	11.68		3.45	%		0.54	%		0.54	%		0.14	%		120	%	$	147,625
$	12.00		3.36	%		0.59	%		0.56	%		4.71	%		84	%	$	147,102
$	11.60		3.58	%		0.68	%		0.61	%		12.06	%		187	%	$	112,163
$	10.82		4.29	%		0.69	%		0.61	%		7.29	%		455	%	$	97,574

$	11.68		3.09	%		0.90	%		0.90	%		(0.05	)%		120	%	$	185,158
$	12.00		3.00	%		0.97	%		0.92	%		4.52	%		84	%	$	198,176
$	11.60		3.25	%		1.07	%		0.94	%		11.79	%		187	%	$	188,551
$	10.82		3.94	%		1.08	%		0.94	%		6.99	%		455	%	$	177,010



$	10.30		1.85	%		0.87	%		0.83	%		0.56	%		278	%	$	169,845
$	10.47		1.85	%		0.86	%		0.84	%		1.23	%		135	%	$	181,951
$	10.41		1.86	%		0.88	%		0.85	%		3.85	%		501	%	$	162,737
$	10.30		3.61	%		0.94	%		0.85	%		7.05	%		277	%	$	105,430
$	10.01		4.02	%		1.11	%		0.85	%		5.95	%		210	%	$	66,495
$	9.85		4.04	%		1.10	%		0.85	%		4.69	%		493	%	$	77,602
$	9.81		3.30	%		1.08	%		0.85	%		1.51	%		316	%	$	77,886

$	10.31		1.10	%		1.62	%		1.58	%		0.19	%		278	%	$	1,401
$	10.48		1.07	%		1.62	%		1.59	%		1.04	%		135	%	$	1,548
$	10.42		1.30	%		1.66	%		1.60	%		3.08	%		501	%	$	1,760
$	10.31		2.90	%		1.69	%		1.60	%		6.36	%		277	%	$	4,779
$	10.01		3.29	%		1.86	%		1.60	%		5.06	%		210	%	$	7,260
$	9.86		3.29	%		1.85	%		1.60	%		4.01	%		493	%	$	12,230
$	9.81		2.55	%		1.83	%		1.60	%		0.66	%		316	%	$	18,338

$	10.31		1.10	%		1.62	%		1.58	%		0.19	%		278	%	$	72,673
$	10.48		1.10	%		1.62	%		1.59	%		0.94	%		135	%	$	72,124
$	10.43		1.01	%		1.65	%		1.60	%		3.06	%		501	%	$	65,664
$	10.32		2.82	%		1.69	%		1.60	%		6.34	%		277	%	$	18,009
$	10.02		3.28	%		1.86	%		1.60	%		5.06	%		210	%	$	7,087
$	9.87		3.29	%		1.85	%		1.60	%		4.01	%		493	%	$	8,440
$	9.82		2.54	%		1.83	%		1.60	%		0.66	%		316	%	$	11,540



144 Wells Fargo Advantage Income Funds		Financial Highlights


	Beginning					Net Realized			Distributions
	Net Asset		Net			and Unrealized			from Net			Distributions
	Value Per		Investment			Gains (Losses)			Investment			from Net
	Share		Income			on Investments			Income			Realized Gains

Short Duration Government Bond Fund (continued)
Administrator Class
September 1, 2010 to February 28, 2011 (Unaudited)	$	10.48		0.11	⁵		(0.04	)		(0.15	)		(0.09	)
June 1, 2010 to August 31, 2010⁹	$	10.42		0.05			0.08			(0.07	)		0.00
June 1, 2009 to May 31, 2010	$	10.32		0.22	⁵		0.19			(0.31	)		0.00
June 1, 2008 to May 31, 2009	$	10.02		0.39			0.33			(0.42	)		0.00
June 1, 2007 to May 31, 2008	$	9.86		0.42			0.18			(0.44	)		0.00
June 1, 2006 to May 31, 2007	$	9.82		0.42			0.06			(0.44	)		0.00
June 1, 2005 to May 31, 2006	$	10.03		0.35	⁵		(0.19	)		(0.37	)		0.00
Institutional Class
September 1, 2010 to February 28, 2011 (Unaudited)	$	10.48		0.12			(0.04	)		(0.16	)		(0.09	)
June 1, 2010 to August 31, 2010⁹	$	10.43		0.06			0.07			(0.08	)		0.00
June 1, 2009 to May 31, 2010	$	10.32		0.31	⁵		0.13			(0.33	)		0.00
June 1, 2008 to May 31, 2009	$	10.02		0.41			0.33			(0.44	)		0.00
June 1, 2007 to May 31, 2008	$	9.86		0.44			0.18			(0.46	)		0.00
June 1, 2006 to May 31, 2007	$	9.82		0.44			0.06			(0.46	)		0.00
June 1, 2005 to May 31, 2006	$	10.03		0.38	⁵		(0.20	)		(0.39	)		0.00

Short-Term Bond Fund
Class A
September 1, 2010 to February 28, 2011 (Unaudited)	$	8.73		0.08			0.01			(0.09	)		0.00
June 1, 2010 to August 31, 2010⁹	$	8.66		0.05			0.07			(0.05	)		0.00
June 1, 2009 to May 31, 2010	$	8.23		0.23			0.46			(0.26	)		0.00
June 1, 2008 to May 31, 2009¹⁰	$	8.38		0.32			(0.15	)		(0.32	)		0.00
June 1, 2007 to May 31, 2008	$	8.49		0.40			(0.11	)		(0.40	)		0.00
June 1, 2006 to May 31, 2007	$	8.47		0.40			0.03			(0.41	)		0.00
June 1, 2005 to May 31, 2006	$	8.62		0.35			(0.13	)		(0.37	)		0.00
Class C
September 1, 2010 to February 28, 2011 (Unaudited)	$	8.73		0.05			0.00			(0.06	)		0.00
June 1, 2010 to August 31, 2010⁹	$	8.65		0.03			0.08			(0.03	)		0.00
June 1, 2009 to May 31, 2010	$	8.22		0.16			0.46			(0.19	)		0.00
June 1, 2008 to May 31, 2009	$	8.37		0.26			(0.15	)		(0.26	)		0.00
March 31, 2008⁶ to May 31, 2008	$	8.45		0.05			(0.08	)		(0.05	)		0.00
Institutional Class
September 1, 2010 to February 28, 2011 (Unaudited)	$	8.74		0.10			(0.01	)		(0.10	)		0.00
June 1, 2010 to August 31, 2010⁹	$	8.66		0.06			0.08			(0.06	)		0.00
June 1, 2009 to May 31, 2010	$	8.24		0.25			0.45			(0.28	)		0.00
June 1, 2008 to May 31, 2009	$	8.39		0.35			(0.15	)		(0.35	)		0.00
June 1, 2007 to May 31, 2008	$	8.49		0.43			(0.10	)		(0.43	)		0.00
June 1, 2006 to May 31, 2007	$	8.48		0.44			0.01			(0.44	)		0.00
June 1, 2005 to May 31, 2006	$	8.63		0.39			(0.14	)		(0.40	)		0.00
Investor Class
September 1, 2010 to February 28, 2011 (Unaudited)	$	8.73		0.08			0.00			(0.09	)		0.00
June 1, 2010 to August 31, 2010⁹	$	8.66		0.05			0.07			(0.05	)		0.00
June 1, 2009 to May 31, 2010	$	8.23		0.23			0.45			(0.25	)		0.00
June 1, 2008 to May 31, 2009	$	8.38		0.32			(0.15	)		(0.32	)		0.00
June 1, 2007 to May 31, 2008	$	8.48		0.40			(0.10	)		(0.40	)		0.00
June 1, 2006 to May 31, 2007	$	8.47		0.40			0.02			(0.41	)		0.00
June 1, 2005 to May 31, 2006	$	8.62		0.35			(0.13	)		(0.37	)		0.00

Short-Term High Yield Bond Fund
Class A
September 1, 2010 to February 28, 2011 (Unaudited)	$	8.18		0.20			0.13			(0.20	)		0.00
June 1, 2010 to August 31, 2010⁹	$	8.09		0.11			0.09			(0.11	)		0.00
June 1, 2009 to May 31, 2010	$	7.82		0.45			0.26			(0.44	)		0.00
June 1, 2008 to May 31, 2009	$	8.31		0.40			(0.49	)		(0.40	)		0.00
June 1, 2007 to May 31, 2008	$	8.54		0.47			(0.23	)		(0.47	)		0.00
June 1, 2006 to May 31, 2007	$	8.49		0.49			0.05			(0.49	)		0.00
June 1, 2005 to May 31, 2006	$	8.51		0.43			(0.02	)		(0.43	)		0.00

Please see footnotes on p. 148

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



Financial Highlights		Wells Fargo Advantage Income Funds 145


Ending
Net Asset		Ratio to Average Net Assets (Annualized)												Portfolio			Net Assets at
Value Per		Net Investment			Gross			Net			Total			Turnover			End of Period
Share		Income			Expenses			Expenses			Return¹			Rate²			(000’s omitted)



$	10.31		2.06	%		0.79	%		0.60	%		0.67	%		278	%	$	255,520
$	10.48		2.06	%		0.79	%		0.60	%		1.29	%		135	%	$	435,363
$	10.42		2.13	%		0.80	%		0.60	%		4.01	%		501	%	$	505,432
$	10.32		3.89	%		0.84	%		0.60	%		7.42	%		277	%	$	356,409
$	10.02		4.26	%		0.93	%		0.60	%		6.21	%		210	%	$	246,592
$	9.86		4.28	%		0.92	%		0.60	%		4.95	%		493	%	$	310,530
$	9.82		3.55	%		0.90	%		0.60	%		1.67	%		316	%	$	401,837

$	10.31		2.27	%		0.54	%		0.42	%		0.76	%		278	%	$	765,860
$	10.48		2.27	%		0.53	%		0.42	%		1.24	%		135	%	$	572,274
$	10.43		2.98	%		0.55	%		0.42	%		4.30	%		501	%	$	489,762
$	10.32		4.02	%		0.59	%		0.42	%		7.61	%		277	%	$	248,124
$	10.02		4.42	%		0.67	%		0.42	%		6.40	%		210	%	$	87,784
$	9.86		4.48	%		0.65	%		0.42	%		5.13	%		493	%	$	55,973
$	9.82		3.89	%		0.63	%		0.42	%		1.85	%		316	%	$	27,172



$	8.73		1.95	%		0.89	%		0.80	%		1.01	%		30	%	$	53,524
$	8.73		2.05	%		0.89	%		0.80	%		1.37	%		11	%	$	47,121
$	8.66		2.64	%		0.93	%		0.80	%		8.43	%		45	%	$	41,369
$	8.23		3.86	%		0.95	%		0.80	%		2.14	%		50	%	$	16,456
$	8.38		4.69	%		1.09	%		0.81	%		3.50	%		47	%	$	11,904
$	8.49		4.77	%		1.10	%		0.85	%		5.18	%		38	%	$	6,938
$	8.47		4.14	%		1.09	%		0.85	%		2.60	%		28	%	$	6,035

$	8.72		1.20	%		1.64	%		1.55	%		0.52	%		30	%	$	16,347
$	8.73		1.28	%		1.65	%		1.55	%		1.29	%		11	%	$	14,299
$	8.65		1.70	%		1.68	%		1.55	%		7.61	%		45	%	$	11,050
$	8.22		2.72	%		1.67	%		1.53	%		1.35	%		50	%	$	1,199
$	8.37		3.56	%		1.85	%		1.58	%		(0.37	)%		47	%	$	10

$	8.73		2.27	%		0.56	%		0.48	%		1.05	%		30	%	$	274,442
$	8.74		2.38	%		0.56	%		0.48	%		1.57	%		11	%	$	292,080
$	8.66		2.84	%		0.58	%		0.48	%		8.65	%		45	%	$	285,559
$	8.24		4.22	%		0.59	%		0.48	%		2.47	%		50	%	$	77,900
$	8.39		5.08	%		0.64	%		0.48	%		3.97	%		47	%	$	87,101
$	8.49		5.14	%		0.65	%		0.48	%		5.45	%		38	%	$	80,153
$	8.48		4.54	%		0.64	%		0.48	%		2.98	%		28	%	$	66,350

$	8.72		1.92	%		0.92	%		0.83	%		0.88	%		30	%	$	251,596
$	8.73		2.02	%		0.94	%		0.84	%		1.36	%		11	%	$	266,746
$	8.66		2.73	%		0.99	%		0.85	%		8.38	%		45	%	$	267,625
$	8.23		3.87	%		0.99	%		0.85	%		2.09	%		50	%	$	250,572
$	8.38		4.70	%		1.23	%		0.87	%		3.57	%		47	%	$	268,790
$	8.48		4.71	%		1.27	%		0.90	%		5.01	%		38	%	$	299,346
$	8.47		4.10	%		1.26	%		0.90	%		2.55	%		28	%	$	396,633



$	8.31		4.97	%		1.00	%		0.81	%		4.13	%		19	%	$	182,443
$	8.18		5.14	%		1.01	%		0.81	%		2.43	%		15	%	$	235,754
$	8.09		5.50	%		1.03	%		0.81	%		9.17	%		40	%	$	212,688
$	7.82		5.27	%		1.08	%		0.81	%		(0.89	)%		46	%	$	110,451
$	8.31		5.70	%		1.20	%		0.86	%		2.98	%		59	%	$	15,781
$	8.54		5.70	%		1.22	%		0.86	%		6.48	%		50	%	$	22,076
$	8.49		5.05	%		1.20	%		0.95	%		4.94	%		60	%	$	30,637



146 Wells Fargo Advantage Income Funds		Financial Highlights


	Beginning				Net Realized			Distributions
	Net Asset		Net		and Unrealized			from Net			Distributions
	Value Per		Investment		Gains (Losses)			Investment			from Net
	Share		Income		on Investments			Income			Realized Gains

Short-Term High Yield Bond Fund (continued)
Class C
September 1, 2010 to February 28, 2011 (Unaudited)	$	8.18		0.17		0.13			(0.17	)		0.00
June 1, 2010 to August 31, 2010⁹	$	8.09		0.09		0.09			(0.09	)		0.00
June 1, 2009 to May 31, 2010	$	7.82		0.38		0.26			(0.37	)		0.00
June 1, 2008 to May 31, 2009	$	8.31		0.34		(0.49	)		(0.34	)		0.00
March 31, 2008⁶ to May 31, 2008	$	8.22		0.06		0.09			(0.06	)		0.00
Administrator Class
September 1, 2010 to February 28, 2011 (Unaudited)	$	8.18		0.21		0.13			(0.21	)		0.00
July 30, 2010⁶ to August 31, 2010	$	8.18		0.035		0.00	⁵		(0.03	)		0.00
Investor Class
September 1, 2010 to February 28, 2011 (Unaudited)	$	8.18		0.20		0.13			(0.20	)		0.00
June 1, 2010 to August 31, 2010⁹	$	8.09		0.11		0.08			(0.10	)		0.00
June 1, 2009 to May 31, 2010	$	7.82		0.44		0.26			(0.43	)		0.00
June 1, 2008 to May 31, 2009	$	8.31		0.40		(0.49	)		(0.40	)		0.00
June 1, 2007 to May 31, 2008	$	8.54		0.47		(0.23	)		(0.47	)		0.00
June 1, 2006 to May 31, 2007	$	8.49		0.49		0.05			(0.49	)		0.00
June 1, 2005 to May 31, 2006	$	8.52		0.44		(0.03	)		(0.44	)		0.00

Ultra Short-Term Income Fund
Class A
September 1, 2010 to February 28, 2011 (Unaudited)	$	8.52		0.06		0.05			(0.06	)		0.00
June 1, 2010 to August 31, 2010⁹	$	8.48		0.04		0.04			(0.04	)		0.00
June 1, 2009 to May 31, 2010	$	8.03		0.17		0.48			(0.20	)		0.00
June 1, 2008 to May 31, 200910	$	8.71		0.31		(0.68	)		(0.31	)		0.00
June 1, 2007 to May 31, 2008	$	9.09		0.43		(0.37	)		(0.44	)		0.00
June 1, 2006 to May 31, 2007	$	9.12		0.47		(0.02	)		(0.48	)		0.00
June 1, 2005 to May 31, 2006	$	9.17		0.39		(0.02	)		(0.42	)		0.00
Class C
September 1, 2010 to February 28, 2011 (Unaudited)	$	8.52		0.02		0.06			(0.03	)		0.00
June 1, 2010 to August 31, 2010⁹	$	8.48		0.02		0.04			(0.02	)		0.00
June 1, 2009 to May 31, 2010	$	8.03		0.12		0.47			(0.14	)		0.00
July 18, 20086 to May 31, 2009	$	8.57		0.21		(0.54	)		(0.21	)		0.00
Administrator Class
September 1, 2010 to February 28, 2011 (Unaudited)	$	8.48		0.06		0.07			(0.07	)		0.00
June 1, 2010 to August 31, 2010⁹	$	8.45		0.04		0.03			(0.04	)		0.00
June 1, 2009 to May 31, 2010	$	8.00		0.19		0.46			(0.20	)		0.00
June 1, 2008 to May 31, 2009	$	8.68		0.32		(0.68	)		(0.32	)		0.00
June 1, 2007 to May 31, 2008	$	9.06		0.46		(0.38	)		(0.46	)		0.00
June 1, 2006 to May 31, 2007	$	9.09		0.49		(0.02	)		(0.50	)		0.00
June 1, 2005 to May 31, 2006	$	9.16		0.41		(0.05	)		(0.43	)		0.00
Institutional Class
September 1, 2010 to February 28, 2011 (Unaudited)	$	8.51		0.07		0.07			(0.08	)		0.00
June 1, 2010 to August 31, 2010⁹	$	8.48		0.04		0.04			(0.05	)		0.00
June 1, 2009 to May 31, 2010	$	8.03		0.19		0.49			(0.23	)		0.00
June 1, 2008 to May 31, 2009	$	8.71		0.33		(0.67	)		(0.34	)		0.00
June 1, 2007 to May 31, 2008	$	9.09		0.47		(0.37	)		(0.48	)		0.00
June 1, 2006 to May 31, 2007	$	9.12		0.51		(0.02	)		(0.52	)		0.00
June 1, 2005 to May 31, 2006	$	9.17		0.43		(0.02	)		(0.46	)		0.00
Investor Class
September 1, 2010 to February 28, 2011 (Unaudited)	$	8.52		0.05		0.06			(0.06	)		0.00
June 1, 2010 to August 31, 2010⁹	$	8.48		0.04		0.04			(0.04	)		0.00
June 1, 2009 to May 31, 2010	$	8.03		0.18		0.47			(0.20	)		0.00
June 1, 2008 to May 31, 2009	$	8.71		0.31		(0.68	)		(0.31	)		0.00
June 1, 2007 to May 31, 2008	$	9.09		0.43		(0.37	)		(0.44	)		0.00
June 1, 2006 to May 31, 2007	$	9.12		0.47		(0.02	)		(0.48	)		0.00
June 1, 2005 to May 31, 2006	$	9.17		0.38		(0.02	)		(0.41	)		0.00

Please see footnotes on p. 148

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



Financial Highlights		Wells Fargo Advantage Income Funds 147


Ending
Net Asset		Ratio to Average Net Assets (Annualized)												Portfolio			Net Assets at
Value Per		Net Investment			Gross			Net			Total			Turnover			End of Period
Share		Income			Expenses			Expenses			Return¹			Rate²			(000’s omitted)



$	8.31		4.21	%		1.75	%		1.56	%		3.74	%		19	%	$	52,094
$	8.18		4.39	%		1.76	%		1.56	%		2.24	%		15	%	$	36,050
$	8.09		4.69	%		1.78	%		1.56	%		8.35	%		40	%	$	32,985
$	7.82		4.50	%		1.76	%		1.56	%		(1.70	)%		46	%	$	11,096
$	8.31		4.37	%		1.97	%		1.56	%		2.48	%		59	%	$	18

$	8.31		5.16	%		0.95	%		0.65	%		4.22	%		19	%	$	204,344
$	8.18		4.39	%		0.89	%		0.64	%		0.39	%		15	%	$	60

$	8.31		4.95	%		1.03	%		0.84	%		4.11	%		19	%	$	186,806
$	8.18		5.10	%		1.05	%		0.85	%		2.42	%		15	%	$	177,946
$	8.09		5.49	%		1.07	%		0.86	%		9.12	%		40	%	$	165,759
$	7.82		5.20	%		1.13	%		0.84	%		(0.91	)%		46	%	$	128,789
$	8.31		5.69	%		1.34	%		0.86	%		2.98	%		59	%	$	70,420
$	8.54		5.70	%		1.39	%		0.86	%		6.48	%		50	%	$	96,071
$	8.49		5.15	%		1.37	%		0.86	%		4.90	%		60	%	$	100,379



$	8.57		1.32	%		0.86	%		0.70	%		1.30	%		28	%	$	181,249
$	8.52		1.62	%		0.88	%		0.70	%		0.94	%		9	%	$	208,845
$	8.48		1.98	%		0.91	%		0.70	%		8.22	%		45	%	$	154,016
$	8.03		3.70	%		0.93	%		0.70	%		(4.27	)%		32	%	$	44,163
$	8.71		4.89	%		1.08	%		0.73	%		0.68	%		48	%	$	42,615
$	9.09		5.13	%		1.06	%		0.80	%		5.06	%		28	%	$	44,858
$	9.12		4.23	%		1.06	%		0.80	%		4.06	%		26	%	$	50,913

$	8.57		0.58	%		1.62	%		1.45	%		0.93	%		28	%	$	19,724
$	8.52		0.88	%		1.63	%		1.45	%		0.75	%		9	%	$	21,226
$	8.48		1.30	%		1.67	%		1.45	%		7.41	%		45	%	$	16,519
$	8.03		2.77	%		1.64	%		1.45	%		(3.85	)%		32	%	$	4,775

$	8.54		1.48	%		0.79	%		0.55	%		1.50	%		28	%	$	123,546
$	8.48		1.65	%		0.79	%		0.55	%		0.86	%		9	%	$	205,587
$	8.45		2.32	%		0.81	%		0.55	%		8.41	%		45	%	$	82,835
$	8.00		3.77	%		0.81	%		0.55	%		(4.15	)%		32	%	$	59,184
$	8.68		5.03	%		0.90	%		0.57	%		0.84	%		48	%	$	28,254
$	9.06		5.36	%		0.88	%		0.60	%		5.27	%		28	%	$	17,003
$	9.09		4.51	%		0.88	%		0.60	%		4.03	%		26	%	$	6,114

$	8.57		1.68	%		0.54	%		0.35	%		1.60	%		28	%	$	466,581
$	8.51		2.01	%		0.54	%		0.35	%		1.03	%		9	%	$	260,747
$	8.48		2.26	%		0.57	%		0.35	%		8.48	%		45	%	$	197,087
$	8.03		4.09	%		0.59	%		0.35	%		(3.93	)%		32	%	$	27,680
$	8.71		5.24	%		0.63	%		0.35	%		1.07	%		48	%	$	61,898
$	9.09		5.57	%		0.61	%		0.35	%		5.54	%		28	%	$	42,757
$	9.12		4.65	%		0.61	%		0.35	%		4.53	%		26	%	$	48,259

$	8.57		1.30	%		0.89	%		0.73	%		1.29	%		28	%	$	416,359
$	8.52		1.66	%		0.92	%		0.74	%		0.93	%		9	%	$	436,991
$	8.48		2.16	%		0.98	%		0.75	%		8.18	%		45	%	$	453,772
$	8.03		3.69	%		0.99	%		0.75	%		(4.32	)%		32	%	$	423,039
$	8.71		4.86	%		1.21	%		0.78	%		0.64	%		48	%	$	594,246
$	9.09		5.10	%		1.23	%		0.84	%		5.02	%		28	%	$	718,019
$	9.12		4.17	%		1.23	%		0.84	%		4.02	%		26	%	$	810,961



148 Wells Fargo Advantage Income Funds		Financial Highlights


1.		Total return calculations do not include any sales charges, and would have been lower had certain expenses not been waived or reimbursed during the periods shown. Returns for periods of less than one year are not annualized.

2.		Calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. Portfolio turnover rates presented for periods of less than one year are not annualized.

3.		After the close of business on July 9, 2010, the Fund acquired the net assets of Evergreen Adjustable Rate Fund, which became the accounting and performance survivor in the transaction. The financial highlights for the periods prior to July 12, 2010 are those of Evergreen Adjustable Rate Fund.

4.		For the two months ended August 31, 2010. The Fund changed it fiscal year end from June 30 to August 31, effective August 31, 2010.

5.		Calculated based upon average shares outstanding.

6.		Commencement of class operations.

7.		Ratios include interest and fee expense relating to borrowings and/or leverage transactions as follows:


Year ended June 30, 2008	0.25	%
Year ended June 30, 2007	0.36	%
Year ended June 30, 2006	0.18	%


8.		Amount represents less than $0.005 per share.

9.		For the three months ended August 31, 2010. The Fund changed it fiscal year end from May 31 to August 31, effective August 31, 2010.

10.		On June 20, 2008, Advisor Class was renamed to Class A.

11.		For the four months ended August 31, 2010. The Fund changed it fiscal year end from April 30 to August 31, effective August 31, 2010.

12.		The per share net realized and unrealized gains or losses is not in accord with the net realized and unrealized gains or losses for the period due to the timing of sales and redemptions of fund shares in relation to fluctuating market values of the portfolio.

13.		After the close of business on July 9, 2010, the Fund acquired the net assets of Evergreen High Income Fund. Evergreen High Income Fund was the accounting and performance survivor in this transaction. The financial highlights for the periods prior to July 12, 2010 are those of Evergreen High Income Fund.

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


Notes to Financial Statements (Unaudited)		Wells Fargo Advantage Income Funds 149

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). These financial statements report on the following funds: Wells Fargo Advantage Adjustable Rate Government Fund (“Adjustable Rate Government Fund”), Wells Fargo Advantage Government Securities Fund (“Government Securities Fund”), Wells Fargo Advantage High Income Fund (“High Income Fund”), Wells Fargo Advantage High Yield Bond Fund (“High Yield Bond Fund”), Wells Fargo Advantage Income Plus Fund (“Income Plus Fund”), Wells Fargo Advantage Short Duration Government Bond Fund (“Short Duration Government Bond Fund”), Wells Fargo Advantage Short-Term Bond Fund (“Short-Term Bond Fund”), Wells Fargo Advantage Short-Term High Yield Bond Fund (“Short-Term High Yield Bond Fund”) and Wells Fargo Advantage Ultra Short-Term Income Fund (“Ultra Short-Term Income Fund”) (each, a “Fund”, collectively, the “Funds”). Each Fund is a diversified series of the Trust.

2. SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies, which are consistently followed in the preparation of the financial statements of each 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. Management has considered the circumstances under which the Funds should recognize or make disclosures regarding events or transactions occurring subsequent to the balance sheet date through the date the financial statements are issued. Adjustments or additional disclosures, if any, have been included in these financial statements.

Securities valuation

Certain fixed income securities with maturities exceeding 60 days are valued based on available market quotations received from an independent pricing service approved by the Trust’s Board of Trustees which may utilize both transaction data and market information such as yield, prices of securities of comparable quality, coupon rate, maturity, type of issue, trading characteristics and other market data. If valuations are not available from the pricing service or values received are deemed not representative of market value, values will be obtained from a third party broker-dealer or determined based on the Funds’ Fair Value Procedures.

Debt securities of sufficient credit quality with original maturities of 60 days or less generally are valued at amortized cost which approximates fair value. The amortized cost method involves valuing a security at its cost, plus accretion of discount or minus amortization of premium over the period until maturity.

Securities denominated in foreign currencies are translated into U.S. dollars using the closing rates of exchange in effect on the day of valuation.

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 investments 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 the investments, then those investments are fair valued following procedures approved by the Board of Trustees. These procedures take into account multiple factors including movements in U.S. securities markets after foreign exchanges close. Depending on market activity, such fair valuations may be frequent. Such fair value pricing may result in NAVs that are higher or lower than NAVs based on the closing price or latest quoted bid price.

Investments in open-end mutual funds and non-registered investment companies are generally valued at net asset value.

Certain investments which are not valued using any of the methods discussed above, are valued at their fair value, as determined by procedures established in good faith and approved by the Board of Trustees.

The valuation techniques used by the Funds to measure fair value are consistent with the market approach, income approach and/or cost approach, where applicable, for each security type.

Foreign currency translation

The accounting records of the Funds are maintained in U.S. dollars. Assets, including investment securities, and liabilities denominated in foreign currency are translated into U.S. dollars at the prevailing rates of exchange at the date of valuation.


150 Wells Fargo Advantage Income Funds		Notes to Financial Statements (Unaudited)

Purchases and sales of securities, and income and expenses are translated at the prevailing rate of exchange on the respective dates of such transactions. Reported 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 in 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 recorded with net realized and unrealized gains or losses from investments. Gains and losses from certain foreign currency transactions are treated as ordinary income for U.S. federal income tax purposes.

Security loans

The Funds may lend their securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. A Fund continues to receive interest or dividends on the securities loaned. A Fund receives collateral in the form of cash or securities with a value at least equal to the value of the securities on loan. The value of the loaned securities is determined at the close of each business day and any additional required collateral is delivered to the Fund on the next business day. In the event of default or bankruptcy by the borrower, a Fund could experience delays and costs in recovering the loaned securities or in gaining access to the collateral. In addition, the investment of any cash collateral received may lose all or part of its value. The Fund has the right under the lending agreement to recover the securities from the borrower on demand.

The Funds lend their securities through an unaffiliated securities lending agent. Cash collateral received in connection with their securities lending transactions is invested in Wells Fargo Securities Lending Cash Investments, LLC (the “Cash Collateral Fund”). The Cash Collateral Fund is exempt from registration under Section 3(c)(7) of the 1940 Act and is managed by Wells Fargo Funds Management LLC (“Funds Management”) and is sub-advised by Wells Capital Management Incorporated (“Wells Capital Management”). Funds Management receives an investment advisory fee starting at 0.05% and declining to 0.01% as the average daily net assets of the Cash Collateral Fund increase. All of the fees received by Funds Management are paid to Wells Capital Management for its services as sub-adviser. The Cash Collateral Fund seeks to provide a positive return compared to the daily Fed Funds Open rate by investing in high-quality, U.S. dollar-denominated short-term money market instruments. Cash Collateral Fund investments are fair valued based upon the amortized cost valuation technique. Income earned from investment in the Cash Collateral Fund is included in securities lending income on the Statements of Operations.

In a securities lending transaction, the net asset value of a Fund will be affected by an increase or decrease in the value of the securities loaned and by an increase or decrease in the value of instruments in which cash collateral is invested. The amount of securities lending activity undertaken by a Fund fluctuates from time to time. After the occurrence of a default or impairment of structured investment vehicles purchased in a joint account by the former securities lending agent of each Fund, (except Adjustable Rate Government Fund and High Yield Bond Fund) as the various participating Funds’ lending activity fluctuated, their ratable interest in the joint account, including their ratable exposure to the defaulted or impaired structured investment vehicles fluctuated depending on the relative activity of each participating Fund. In order to eliminate the fluctuation of the various Funds’ ratable exposure to the defaulted or impaired structured investment vehicles, the adviser to the Funds recommended to the Board of Trustees, and the Board of Trustees approved, actions designed to fix the allocation of percentage ownership in defaulted or impaired structured investment vehicles among all funds participating in securities lending (“side pocketing”) based on each Fund’s percentage ownership of the total cash collateral investment joint account as of the date the fixed allocation is implemented. Accordingly, on February 13, 2009 a side pocketing occurred, which fixed each Fund’s ownership of defaulted or impaired structured investment vehicle in the joint account based on each such Fund’s percentage ownership of the joint account as of such date.

When-issued transactions

Each Fund may purchase securities on a forward commitment or ‘when-issued’ basis. A Fund records a when-issued transaction on the trade date and will segregate assets to cover its obligation by confirming the availability of qualifying assets having a value sufficient to make payment for the securities purchased. Securities purchased on a when-issued


Notes to Financial Statements (Unaudited)		Wells Fargo Advantage Income Funds 151

basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.

Term loans

Each Fund may invest in term loans. The loans are marked-to-market daily and the Fund begins earning interest when the loans are funded. The loans pay interest at rates which are periodically reset by reference to a base lending rate plus a spread. The Fund assumes the credit risk of the borrower and there could be potential loss to the Fund in the event of default by the borrower.

Futures contracts

Certain Funds may be subject to interest rate risk in the normal course of pursuing its investment objectives. The Funds may buy and sell futures contracts in order to gain exposure to, or protect against changes in, security values and interest rates. The primary risks associated with the use of futures contracts are the imperfect correlation between changes in market values of securities held by the Fund and the prices of futures contracts, and the possibility of an illiquid market.

Futures contracts are valued based upon their quoted daily settlement prices. The aggregate principal amounts of the contracts are not recorded in the financial statements. Fluctuations in the value of the contracts are recorded in the Statements of Assets and Liabilities as an asset or liability and in the Statements of Operations as unrealized gains or losses until the contracts are closed, at which point they are recorded as net realized gains or losses on futures contracts. With futures contracts, there is minimal counterparty risk to the Fund since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.

TBA sale commitments

A Fund may enter into To Be Announced (“TBA”) sale commitments to hedge its portfolio positions or to sell mortgage-backed securities it owns under delayed delivery arrangements. Proceeds of TBA sale commitments are not received until the contractual settlement date. During the time a TBA sale commitment is outstanding, equivalent deliverable securities, or an offsetting TBA purchase commitment deliverable on or before the sale commitment date, are held as “cover” for the transaction. Unsettled TBA sale commitments are valued at the current market value of the underlying securities, generally according to the procedures described under “Securities valuation”. The contract is marked-to-market daily and the change in market value is recorded by the Fund as an unrealized gain or loss. If the TBA sale commitment is closed through the acquisition of an offsetting purchase commitment, the Fund realizes a gain or loss. If the Fund delivers securities under the commitment, the Fund realizes a gain or a loss from the sale of the securities based upon the unit price established at the date the commitment was entered into.

Security transactions and income recognition

Securities transactions are recorded on a trade date basis. Realized gains or losses are reported on the basis of identified cost of securities delivered.

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.

Dividend income is recognized on the ex-dividend date, except for certain dividends from foreign securities, which are recorded as soon as the Fund is informed of the ex-dividend date. Dividend income from foreign securities is recorded net of foreign taxes withheld where recovery of such taxes is not assured.

Distributions to shareholders

Distributions to shareholders from net investment income are accrued daily and paid monthly for each Fund except Income Plus Fund for which net investment income, if any, is declared and paid monthly. Distributions from net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in conformity with income tax regulations, which may differ from generally accepted accounting principles.


152 Wells Fargo Advantage Income Funds		Notes to Financial Statements (Unaudited)

Federal and other taxes

Each Fund is treated as a separate entity for federal income tax purposes. Each 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.

Each 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.

At August 31, 2010, estimated net capital loss carryforwards, which are available to offset future net realized capital gains, were as follows:


	Expiration
	2011		2012		2013		2014		2015		2016		2017		2018

Adjustable Rate Government Fund	$	124,196,026	$	95,791,789	$	47,790,373	$	11,283,743	$	18,541,278	$	10,766,785	$	24,262,054	$	1,705,150
Government Securities Fund		0		0		6,798,472		0		30,329,760		6,509,958		27,789,413		0
High Income Fund		869,486		266,573		0		7,868,889		6,893,272		18,485,199		49,802		0
High Yield Bond Fund		0		904,358		6,309,078		6,135,718		4,801,509		43,741,279		39,971,156		0
Income Plus Fund		3,380,592		0		3,669,132		4,304,664		9,072,772		21,588,119		10,272,813		0
Short-Term Bond Fund		263,758		417,763		764,108		1,524,727		0		0		0		0
Short-Term High Yield Bond Fund		0		0		0		0		276,514		1,158,359		0		0
Ultra Short-Term Income Fund		12,227,002		1,305,797		477,614		25,866,042		2,154,408		8,848,032		35,029,445		7,738,751

Certain portions of the capital loss carryovers of Government Securities Fund, High Income Fund, Income Plus Fund and Ultra Short-Term Income Fund were assumed as a result of acquisitions. These losses are subject to certain limitations prescribed by the Internal Revenue Code. Utilization of these capital loss carryovers was limited during the period ended August 31, 2010 in accordance with income tax regulations.

Under the recently enacted Regulated Investment Company Modernization Act of 2010, the Funds will be permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.

Class allocations

The separate classes of shares offered by each Fund differ principally in applicable sales charges, distribution, shareholder servicing and administration fees. Shareholders of each class bear certain expenses that pertain to that particular class. All shareholders bear the common expenses of a Fund, earn income from the portfolio, and are allocated unrealized gains and losses pro rata based on the average daily net assets of each class, without distinction between share classes. Dividends are determined separately for each class based on income and expenses allocable to each class. Realized gains and losses are allocated to each class pro rata based upon the net assets of each class on the date realized. Differences in per share dividend rates generally result from the relative weightings of pro rata income and realized gain allocations and from differences in separate class expenses, including distribution, shareholder servicing, and administration fees.

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 each Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). Each Fund’s investments are classified


Notes to Financial Statements (Unaudited)		Wells Fargo Advantage Income Funds 153

within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:

■		Level 1 — quoted prices in active markets for identical securities

■		Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

■		Level 3 — significant unobservable inputs (including each Fund’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

As of February 28, 2011, the inputs used in valuing each Fund’s assets, which are carried at fair value, were as follows:


			Significant Other		Significant
	Quoted Prices		Observable Inputs		Unobservable Inputs
Investments in Securities	(Level 1)		(Level 2)		(Level 3)		Total

Adjustable Rate Government Fund
Agency securities	$	0	$	1,168,872,397	$	0	$	1,168,872,397
Collateralized Mortgage Obligations		0		12,000,000		0		12,000,000
Short-term investments
Investment companies		34,425,601		0		0		34,425,601
US Treasury securities		0		399,970		0		399,970

	$	34,425,601	$	1,181,272,367	$	0	$	1,215,697,968

Government Securities Fund
Agency securities	$	0	$	1,620,186,821	$	646,229	$	1,620,833,050
Asset-backed securities		0		19,276,347		0		19,276,347
Collateralized mortgage obligations		0		134,742,967		0		134,742,967
Corporate bonds and notes		0		60,675,330		0		60,675,330
Municipal bonds and notes		0		8,592,230		0		8,592,230
US Treasury securities		479,254,844		0		0		479,254,844
Yankee corporate bonds and notes		0		41,360,759		0		41,360,759
Yankee government bonds		0		12,272,518		0		12,272,518
Short-term investments
Agency securities		0		59,998,333		0		59,998,333
Corporate bonds and notes		0		58,496,880		12,756,022		71,252,902
Investment companies		122,747,277		111,848,016		0		234,595,293
US Treasury securities		0		49,198,806		0		49,198,806

	$	602,002,121	$	2,176,649,007	$	13,402,251	$	2,792,053,379

High Income Fund
Corporate bonds and notes	$	0	$	642,401,274	$	0	$	642,401,274
Yankee corporate bonds and notes		0		29,181,984		0		29,181,984
Municipal bonds and notes		0		7,610,349		0		7,610,349
Term loans		0		19,987,622		0		19,987,622
Short-term investments
Corporate bonds and notes		0		0		1,495,754		1,495,754
Investment companies		32,250,785		5,130,958		0		37,381,743

	$	32,250,785	$	704,312,187	$	1,495,754	$	738,058,726


154 Wells Fargo Advantage Income Funds		Notes to Financial Statements (Unaudited)


			Significant Other		Significant
	Quoted Prices		Observable Inputs		Unobservable Inputs
Investments in Securities	(Level 1)		(Level 2)		(Level 3)		Total

High Yield Bond Fund
Equity securities
Common stocks	$	1,630,219	$	0	$	0	$	1,630,219
Corporate bonds and notes		0		349,031,427		1,811,558		350,842,985
Investment companies		2,584,447		0		0		2,584,447
Collateralized mortgage obligations		0		12,046,429		0		12,046,429
Term loans		0		75,629,378		0		75,629,378
Yankee corporate bonds and notes		0		14,848,490		216		14,848,706
Short-term investments
Investment companies		14,207,412		165,750		0		14,373,162

	$	18,422,078	$	451,721,474	$	1,811,774	$	471,955,326

Income Plus Fund
Equity securities
Preferred stocks	$	51,400	$	0	$	0	$	51,400
Agency securities		0		233,195,262		0		233,195,262
Asset backed securities		0		10,114,284		0		10,114,284
Collateralized mortgage obligations		0		34,608,657		0		34,608,657
Corporate bonds and notes		0		159,503,750		0		159,503,750
Yankee corporate bonds and notes		0		60,451,518		0		60,451,518
Yankee government bonds		0		1,656,680		0		1,656,680
Municipal bonds and notes		0		4,186,338		0		4,186,338
U.S. Treasury securities		117,330,939		0		0		117,330,939
Short-term investments
Corporate bonds and notes		0		0		2,996,977		2,996,977
Investment companies		65,045,433		10,463,634		0		75,509,067
US Treasury securities		0		399,969		0		399,969

	$	182,427,772	$	514,580,092	$	2,996,977	$	700,004,841

Short Duration Government Bond Fund
Agency securities	$	0	$	530,105,672	$	0	$	530,105,672
Asset backed securities		0	$	102,417,883		0		102,417,883
Collateralized mortgage securities		0	$	83,499,542		0		83,499,542
US Treasury securities		508,988,934	$	0		0		508,988,934
Yankee corporate bonds and notes		0		36,638,614		0		36,638,614
Short-term investments
Corporate bonds and notes		0		0		1,414,063		1,414,063
Investment companies		22,157,703		93,520,033		0		115,677,736

	$	531,146,637	$	846,181,744	$	1,414,063	$	1,378,742,444


Notes to Financial Statements (Unaudited)		Wells Fargo Advantage Income Funds 155


			Significant Other		Significant
	Quoted Prices		Observable Inputs		Unobservable Inputs
Investments in Securities	(Level 1)		(Level 2)		(Level 3)		Total

Short-Term Bond Fund
Agency securities	$	0	$	57,090,682	$	123,101	$	57,213,783
Asset-backed securities		0		74,377,910		2,736,874		77,114,784
Collateralized mortgage obligations		0		23,063,746		3,073,754		26,137,500
Corporate bonds and notes		0		269,489,245		1,792,650		271,281,895
Municipal bonds and notes		0		44,299,021		0		44,299,021
Yankee corporate bonds and notes		0		66,383,122		0		66,383,122
US Treasury securities		24,518,532		0		0		24,518,532
Term loans		0		1,750,279		0		1,750,279
Short-term investments
Commercial paper		0		6,000,000		0		6,000,000
Corporate bonds and notes		0		0		896,797		896,797
Investment companies		17,830,815		916,315		0		18,747,130
US Treasury securities		0		299,977		0		299,977

	$	42,349,347	$	543,670,297	$	8,623,176	$	594,642,820

Short-Term High Yield Bond Fund
Corporate bonds and notes	$	0	$	375,991,612	$	2,081,020	$	378,072,632
Municipal bonds and notes		0		7,565,041		0		7,565,041
Collateralized mortgage obligations		0		87,991		0		87,991
Term loans		0		186,234,587		0		186,234,587
Yankee corporate bonds and notes		0		24,855,305		0		24,855,305
Short-term investments
Corporate bonds and notes		0		0		192,706		192,706
Investment companies		45,260,823		57,655		0		45,318,478

	$	45,260,823	$	594,792,191	$	2,273,726	$	642,326,740

Ultra Short-Term Income Fund
Agency securities	$	0	$	89,614,245	$	0	$	89,614,245
Asset backed securities		0		154,371,594		7,040,172		161,411,766
Collateralized mortgage obligations		0		73,149,344		5,811,098		78,960,442
Corporate bonds and notes		0		520,308,209		2,972,885		523,281,094
Yankee corporate bonds and notes		0		100,839,669		0		100,839,669
Yankee government bonds		0		12,087,260		0		12,087,260
Municipal bonds and notes		0		66,338,730		0		66,338,730
U.S. Treasury securities		54,223,230		0		0		54,223,230
Term loans		0		7,034,412		0		7,034,412
Short-term investments
Commercial paper		0		11,000,000		0		11,000,000
Corporate bonds and notes		0		0		496,155		496,155
Investment companies		94,751,337		2,233,250		0		96,984,587
US Treasury securities		0		599,954		0		599,954

	$	148,974,567	$	1,037,576,667	$	16,320,310	$	1,202,871,544


156 Wells Fargo Advantage Income Funds		Notes to Financial Statements (Unaudited)

Further details on the major security types listed above can be found in the each Fund’s Portfolio of Investments.

As of February 28, 2011, the inputs used in valuing each Fund’s other financial instruments, which are carried at fair value, were as follows:


				Significant Other		Significant
	Quoted Prices			Observable Inputs		Unobservable Inputs
Futures contracts	(Level 1)			(Level 2)		(Level 3)		Total

Adjustable Rate Government Fund	$	(140,701	)	$	0	$	0	$	(140,701	)
Government Securities Fund	$	219,626		$	0	$	0	$	219,626
Income Plus Fund	$	100,210		$	0	$	0	$	100,210
Short-Term Bond Fund	$	145,332		$	0	$	0	$	145,332
Ultra Short-Term Income Fund	$	(167,342	)	$	0	$	0	$	(167,342	)

For the six months ended February 28, 2011, the Funds did not have any significant transfers into/out of Level 1 and Level 2.

The following is a reconciliation of assets in which significant unobservable inputs (Level 3) were used in determining fair value:


				Yankee
	Agency Securities			Government Bonds			Total

Adjustable Rate Government Fund
Balance as of August 31, 2010	$	10,023,440		$	3,859,375		$	13,882,815
Accrued discounts (premiums)		0			(25,391	)		(25,391	)
Realized gains (losses)		0			0			0
Change in unrealized gains (losses)		(2	)		203,125			203,123
Purchases		0			0			0
Sales		(10,023,438	)		(4,037,109	)		(14,060,547	)
Transfers into Level 3		0			0			0
Transfers out of Level 3		0			0			0
Balance as of February 28, 2011	$	0		$	0		$	0

Change in unrealized gains (losses) included in earnings relating to securities still held at February 28, 2011	$	0		$	0		$	0


				Corporate
	Agency Securities			Bonds and Notes			Total

Government Securities Fund
Balance as of August 31, 2010	$	887,170		$	13,396,749		$	14,283,919
Accrued discounts (premiums)		0			0			0
Realized gains (losses)		(459,995	)		0			(459,995	)
Change in unrealized gains (losses)		443,587			1,632,786			2,076,373
Purchases		0			0			0
Sales		(224,533	)		(2,273,513	)		(2,498,046	)
Transfers into Level 3		0			0			0
Transfers out of Level 3		0			0			0
Balance as of February 28, 2011	$	646,229		$	12,756,022		$	13,402,251

Change in unrealized gains (losses) included in earnings relating to securities still held at February 28, 2011	$	(9,738	)	$	553,368		$	543,630


Notes to Financial Statements (Unaudited)		Wells Fargo Advantage Income Funds 157


	Municipal			Corporate
	Bonds and Notes			Bonds and Notes			Total

High Income Fund
Balance as of August 31, 2010	$	3,370,000		$	1,583,428		$	4,953,428
Accrued discounts (premiums)		18,814			0			18,814
Realized gains (losses)		1,554,707			(543,754	)		1,010,953
Change in unrealized gains (losses)		(406,521	)		698,119			291,598
Purchases		0			0			0
Sales		(4,537,000	)		(242,039	)		(4,779,039	)
Transfers into Level 3		0			0			0
Transfers out of Level 3		0			0			0
Balance as of February 28, 2011	$	0		$	1,495,754		$	1,495,754

Change in unrealized gains or losses included in earnings relating to securities still held at February 28, 2011	$	0		$	41,773		$	41,773


	Corporate		Yankee Corporate
	Bonds and Notes		Bonds and Notes		Total

High Yield Bond Fund
Balance as of August 31, 2010	$	0	$	0	$	0
Accrued discounts (premiums)		0		0		0
Realized gains or losses		0		0		0
Change in unrealized gains or losses		0		0		0
Purchases		0		0		0
Sales		0		0		0
Transfers into Level 3		1,811,558		216		1,811,774
Transfers out of Level 3		0		0		0
Balance as of February 28, 2011	$	1,811,558	$	216	$	1,811,774

Change in unrealized gains or losses included in earnings relating to securities still held at February 28, 2011	$	0	$	0	$	0


	Corporate
	Bonds and Notes

Income Plus Fund
Balance as of August 31, 2010	$	3,147,514
Accrued discounts (premiums)		0
Realized gains (losses)		0
Change in unrealized gains (losses)		383,616
Purchases		0
Sales		(534,153	)
Transfers into Level 3		0
Transfers out of Level 3		0
Balance as of February 28, 2011	$	2,996,977

Change in unrealized gains or losses included in earnings relating to securities still held at February 28, 2011	$	130,012


158 Wells Fargo Advantage Income Funds		Notes to Financial Statements (Unaudited)


	Corporate
	Bonds and Notes			Agency Securities			Total

Short Duration Government Bond Fund
Balance as of August 31, 2010	$	1,485,090		$	10,185,950		$	11,671,040
Accrued discounts (premiums)		0			0			0
Realized gains (losses)		0			0			0
Change in unrealized gains (losses)		181,002			(83,109	)		97,893
Purchases		0			0			0
Sales		(252,029	)		(10,102,841	)		(10,354,870	)
Transfers into Level 3		0			0			0
Transfers out of Level 3		0			0			0
Balance as of February 28, 2011	$	1,414,063		$	0		$	1,414,063

Change in unrealized gains or losses included in earnings relating to securities still held at February 28, 2011	$	61,343		$	0		$	61,343


							Asset			Collateralized
	Corporate						Backed			Mortgage
	Bonds and Notes			Agency Securities			Securities			Obligations			Total

Short-Term Bond Fund
Balance as of August 31, 2010	$	2,859,881		$	128,668		$	2,858,110		$	0		$	5,846,659
Accrued discounts (premiums)		(13,498	)		0			0			(39	)		(13,537	)
Realized gains (losses)		(1,876	)		(238,767	)		(135,404	)		(6	)		(376,053	)
Change in unrealized gains (losses)		103,741			239,329			(123,531	)		(1,878	)		217,661
Purchases		0			0			137,699			3,077,636			3,215,335
Sales		(258,801	)		(6,129	)		0			(1,959	)		(266,889	)
Transfers into Level 3		0			0			0			0			0
Transfers out of Level 3		0			0			0			0			0
Transfers in from acquisitions		0			0			0			0			0
Balance as of February 28, 2011	$	2,689,447		$	123,101		$	2,736,874		$	3,073,754		$	8,623,176

Change in unrealized gains or losses included in earnings relating to securities still held at February 28, 2011	$	19,182		$	5,013		$	(78,607	)	$	(1,877	)	$	(56,289	)


	Corporate
	Bonds and Notes

Short-Term High Yield Bond Fund
Balance as of August 31, 2010	$	2,426,185
Accrued discounts (premiums)		(6,560	)
Realized gains (losses)		(1,281	)
Change in unrealized gains (losses)		1,322
Purchases		0
Sales		(145,940	)
Transfers into Level 3		0
Transfers out of Level 3		0
Balance as of February 28, 2011	$	2,273,726

Change in unrealized gains or losses included in earnings relating to securities still held at February 28, 2011	$	4,885



Notes to Financial Statements (Unaudited)		Wells Fargo Advantage Income Funds 159


	Corporate			Asset Backed			Collateralized
	Bonds and Notes			Securities			Mortgage Obligations			Total
Ultra Short-Term Income Fund
Balance as of August 31, 2010	$	3,696,927		$	7,361,148		$	3,729		$	11,061,804
Accrued discounts (premiums)		(29,989	)		0			(8,253	)		(38,242	)
Realized gains (losses)		(5,735	)		(387,434	)		(11	)		(393,180	)
Change in unrealized gains (losses)		60,387			(208,939	)		901			(147,651	)
Purchases		0			275,397			5,818,436			6,093,833
Sales		(252,550	)		0			(3,704	)		(256,254	)
Transfers into Level 3		0			0			0			0
Transfers out of Level 3		0			0			0			0
Balance as of February 28, 2011	$	3,469,040		$	7,040,172		$	5,811,098		$	16,320,310

Change in unrealized gains or losses included in earnings relating to securities still held at February 28, 2011	$	(6,655	)	$	(209,120	)	$	4,629		$	(211,146	)

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Investment advisory fees

The Trust has entered into an investment advisory contract with Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”). The investment adviser is responsible for implementing investment policies and guidelines and for supervising the sub-adviser, who is responsible for day-to-day portfolio management of the Funds.

Pursuant to the contract, Funds Management is paid an annual investment advisory fee which is calculated based on the average daily net assets of each Fund as follows:


	Annual investment						Effective rate for
	advisory fee						six months ended
	starting at			declining to			February 28, 2011
Adjustable Rate Government Fund		0.40	%		0.30	%		0.38	%
Government Securities Fund		0.40			0.30			0.37
High Income Fund		0.50			0.40			0.49
High Yield Bond Fund		0.50			0.40			0.50
Income Plus Fund		0.40			0.30			0.39
Short Duration Government Bond Fund		0.40			0.30			0.38
Short-Term Bond Fund		0.40			0.30			0.40
Short-Term High Yield Bond Fund		0.50			0.40			0.50
Ultra Short-Term Income Fund		0.40			0.30			0.38



160 Wells Fargo Advantage Income Funds		Notes to Financial Statements (Unaudited)

Funds Management may retain the services of certain investment sub-advisers to provide daily portfolio management. The fees related to sub-advisory services are borne directly by the investment adviser and do not increase the overall fees paid by a Fund to the investment adviser. Wells Capital Management, an affiliate of Funds Management, is the investment sub-adviser to the Funds. The investment sub-adviser is paid an annual investment sub-advisory fee which is calculated based on the average daily net assets of each Fund as follows:


	Annual investment sub-advisory fee
	starting at			declining to
Adjustable Rate Government Fund		0.20	%		0.10	%
Government Securities Fund		0.20			0.10
High Income Fund		0.35			0.20
High Yield Bond Fund		0.35			0.20
Income Plus Fund		0.20			0.10
Short Duration Government Bond Fund		0.15			0.05
Short-Term Bond Fund		0.15			0.05
Short-Term High Yield Bond Fund		0.35			0.20
Ultra Short-Term Income Fund		0.15			0.05

Administration and transfer agent fees

The Trust has entered into an Administration Agreement with Funds Management. Under this Agreement, for providing administrative services, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers, Funds Management is entitled to receive from each Fund the following annual fees:


		Administration Fees
	Average Daily	(% of Average Daily
	Net Assets	Net Assets)
Fund level	First $5 billion		0.05	%
	Next $5 billion		0.04
	Over $10 billion		0.03
Class A Class B, Class C	All asset levels		0.16
Administrator Class	All asset levels		0.10
Institutional Class	All asset levels		0.08
Investor Class	All asset levels		0.19

Funds Management has contractually waived and/or reimbursed investment advisory and administration fees to the extent necessary to maintain certain net operating expense ratios for the Funds. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses.

Distribution fees

The Trust has adopted a Distribution Plan for Class B and Class C shares of the applicable Funds pursuant to Rule 12b-1 under the 1940 Act. Distribution fees are charged to the Class B and Class C shares and paid to Wells Fargo Funds Distributor, LLC, the principal underwriter of each Fund, at an annual rate of 0.75% of the average daily net assets of each class.



Notes to Financial Statements (Unaudited)		Wells Fargo Advantage Income Funds 161

For the six months ended February 28, 2011, Wells Fargo Funds Distributor, LLC received the following amounts in front-end sales charges and contingent deferred sales charges.


	Front-end sales charges		Contingent deferred sales charges
	Class A		Class A		Class B		Class C
Adjustable Rate Government Fund	$	3,393	$	730	$	11,202	$	4,630
Government Securities Fund		9,505		11,303		7,668		8,984
High Income Fund		12,905		2,790		693		392
High Yield Bond Fund		16,259		201		11,741		808
Income Plus Fund		5,956		900		2,172		5,457
Short Duration Government Bond Fund		10,606		0		0		0
Short-Term Bond Fund		5,241		0	NA			0
Short-Term High Yield Bond Fund		16,460		0	NA			0
Ultra Short-Term Income Fund		2,629		137	NA			3,541

Shareholder servicing fees

The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class B, Class C, Administrator Class and Investor Class of each applicable Fund is charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class.

A portion of these total shareholder servicing fees were paid to affiliates of Wells Fargo.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, exclusive of short-term securities (securities with maturities of one year or less at purchase date), for the six months ended February 28, 2011 were as follows:


	Purchases at Cost				Sales Proceeds
	U.S.		Non-U.S.		U.S.		Non-U.S.
	Government		Government		Government		Government
Adjustable Rate Government Fund	$	292,609,480	$	0	$	114,214,757	$	0
Government Securities Fund		3,514,058,191		1,219,636,543		3,557,566,823		1,365,157,932
High Income Fund		0		310,044,460		0		278,827,404
High Yield Bond Fund		0		192,574,716		0		189,880,670
Income Plus Fund		679,310,858		113,152,937		670,949,587		81,471,729
Short Duration Government Bond Fund		3,331,308,219		307,390,689		3,311,742,407		272,588,480
Short-Term Bond Fund		14,340,200		176,583,470		63,649,889		120,301,301
Short-Term High Yield Bond Fund		0		350,703,675		0		91,065,355
Ultra Short-Term Income Fund		24,277,103		439,116,298		0		318,365,167

As of February 28, 2011, the following Funds had unfunded loan commitments:


	Unfunded Loan Commitment
High Income Fund	$	7,000,000
High Yield Bond Fund		2,068,838
Short-Term High Yield Bond Fund		28,271,625

6. DERIVATIVE TRANSACTIONS

During the six months ended February 28, 2011, Adjustable Rate Government Fund, Government Securities Fund, Income Plus Fund, Short-Term Bond Fund and Ultra Short-Term Income Fund entered into futures contracts for speculative purposes.



162 Wells Fargo Advantage Income Funds		Notes to Financial Statements (Unaudited)

At February 28, 2011, the following Funds had long and short futures contracts outstanding:


				Initial				Net Unrealized
	Expiration			Contract		Value at		Gains/
	Date	Contracts	Type	Amount		February 28, 2011		(Losses)
Adjustable Rate Government Fund	June 2011	100 Short	5-Year U.S. Treasury Notes	$	11,596,693	$	11,693,750	$	(97,057	)
	June 2011	150 Short	10-Year U.S. Treasury Notes		17,813,387		17,857,031		(43,644	)
Government Securities Fund	June 2011	369 Long	30-Year U.S. Treasury Bonds		44,187,217		44,406,843		219,626
Income Plus Fund	June 2011	10 Short	2-Year U.S. Treasury Notes		2,177,794		2,182,970		(5,176	)
	June 2011	109 Long	5-Year U.S. Treasury Notes		12,640,801		12,746,187		105,386
Short-Term Bond Fund	June 2011	191 Long	2-Year U.S. Treasury Notes		41,641,222		41,694,703		53,481
	June 2011	95 Long	5-Year U.S. Treasury Notes		11,017,212		11,109,063		91,851
Ultra Short-Term Income Fund	June 2011	591 Short	2-Year U.S. Treasury Notes		128,846,112		129,013,454		(167,342	)

These Funds had average contract amounts in futures contracts outstanding during the six months ended February 28, 2011 as follows:


	Short Contracts		Long Contracts
Adjustable Rate Government Fund	$	9,463,454	$	0
Government Securities Fund		5,082,329		123,208,654
Income Plus Fund		1,393,524		33,966,428
Short-Term Bond Fund		0		32,324,397
Ultra Short-Term Income Fund		148,698,051		0

On February 28, 2011, the cumulative unrealized gains (losses) on futures contracts in the amounts of $(140,701), $219,626, $100,210, $145,332 and $(167,342) are reflected in net unrealized gains (losses) on investments on the Statements of Assets and Liabilities for Adjustable Rate Government Fund, Government Securities Fund, Income Plus Fund, Short-Term Bond Fund and Ultra Short-Term Income Fund, respectively. The receivable/payable for daily variation margin on open futures contracts reflected in the Statements of Assets and Liabilities only represents the current day’s variation margin. The realized gains (losses) and change in unrealized gains (losses) on futures contracts are reflected in the Statements of Operations.

7. ACQUISITIONS

After the close of business on July 9, 2010, Government Securities Fund acquired the net assets of Evergreen U.S. Government Fund. The purpose of the transaction was to combine 2 funds with similar investment objectives and strategies. The acquisition was accomplished by a tax-free exchange of all of the shares of Evergreen U.S. Government Fund for 27,637,121 shares of Government Securities Fund valued at $303,856,157 at an exchange ratio of 0.88 for each class of shares. Shareholders holding Class A, Class B, Class C and Class I shares of Evergreen U.S. Government Fund received Class A, Class B, Class C and Administrator Class shares, respectively, of Government Securities Fund in the reorganization. The investment portfolio of Evergreen U.S. Government Fund with a fair value of $301,329,078, identified cost of $292,244,339 and unrealized appreciation of $9,084,739 at July 9, 2010 were the principal assets acquired by Government Securities Fund. For financial reporting purposes, assets received and shares issued by Government Securities Fund were recorded at fair value; however, the cost basis of the investments received from Evergreen U.S. Government Fund was carried forward to align ongoing reporting of Government Securities Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.

Assuming the acquisition had been completed June 1, 2010, the beginning of the annual reporting period for Government Securities Fund, the pro forma results of operations for the three months ended August 31, 2010 would have been:


Net investment income	$	13,060,105
Net realized and unrealized gains or losses on investments	$	51,887,972
Net increase in net assets resulting from operations	$	64,948,077



Notes to Financial Statements (Unaudited)		Wells Fargo Advantage Income Funds 163

The aggregate net assets of the Government Securities Fund immediately before and after the acquisition were $1,983,840,879 and $2,287,697,036, respectively.

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of Evergreen U.S. Government Fund that have been included in Government Securities Fund’s Statement of Operations since July 12, 2010.

After the close of business on July 9, 2010, High Income Fund acquired the net assets of Wells Fargo Advantage Strategic Income Fund. The purpose of the transaction was to combine 2 funds with similar investment objectives and strategies. The acquisition was accomplished by a tax-free exchange of all of the shares of Wells Fargo Advantage Strategic Income Fund for 4,922,790 shares of High Income Fund valued at $34,545,456 at an exchange ratio of 1.30 for each class of shares. Shareholders holding Class A, Class B and Class C shares of Wells Fargo Advantage Strategic Income Fund received Class A, Class B and Class C shares, respectively, of High Income Fund in the reorganization. The investment portfolio of Wells Fargo Advantage Strategic Income Fund with a fair value of $33,888,673, identified cost of $33,555,740 and unrealized appreciation of $332,933 at July 9, 2010 were the principal assets acquired by High Income Fund. For financial reporting purposes, assets received and shares issued by High Income Fund were recorded at fair value; however, the cost basis of the investments received from Wells Fargo Advantage Strategic Income Fund was carried forward to align ongoing reporting of High Income Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.

Assuming the acquisition had been completed June 1, 2010, the beginning of the annual reporting period for High Income Fund, the pro forma results of operations for the three months ended August 31, 2010 would have been:


Net investment income	$	12,516,341
Net realized and unrealized gains or losses on investments	$	21,171,451
Net increase in net assets resulting from operations	$	33,687,792

The aggregate net assets of the High Income Fund immediately before and after the acquisition were $612,312,011 and $646,857,467, respectively.

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of Wells Fargo Advantage Strategic Income Fund that have been included in High Income Fund’s Statement of Operations since July 12, 2010.

After the close of business on July 9, 2010, Income Plus Fund acquired the net assets of Evergreen Core Plus Bond Fund. The purpose of the transaction was to combine 2 funds with similar investment objectives and strategies. The acquisition was accomplished by a tax-free exchange of all of the shares of Evergreen Core Plus Bond Fund for 13,407,574 shares of Income Plus Fund valued at $157,146,006 at an exchange ratio of 0.97 for Class A, Class C and Institutional Class shares. Class B shares were exchanged at a ratio of 0.96. Shareholders holding Class A, Class B, Class C and Class I shares of Evergreen Core Plus Bond Fund received Class A, Class B, Class C and Institutional Class shares, respectively, of Income Plus Fund in the reorganization. The investment portfolio of Evergreen Core Plus Bond Fund with a fair value of $155,131,699, identified cost of $157,659,752 and unrealized deprecation of $2,528,053 at July 9, 2010 were the principal assets acquired by Income Plus Fund. For financial reporting purposes, assets received and shares issued by Income Plus Fund were recorded at fair value; however, the cost basis of the investments received from Evergreen Core Plus Bond Fund was carried forward to align ongoing reporting of Income Plus Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.

Assuming the acquisition had been completed June 1, 2010, the beginning of the annual reporting period for Income Plus Fund, the pro forma results of operations for the three months ended August 31, 2010 would have been:


Net investment income	$	5,329,599
Net realized and unrealized gains or losses on investments	$	24,949,767
Net increase in net assets resulting from operations	$	30,279,366

The aggregate net assets of the Income Plus Fund immediately before and after the acquisitions were $457,479,275 and $614,625,281 respectively.



164 Wells Fargo Advantage Income Funds		Notes to Financial Statements (Unaudited)

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of Evergreen Core Plus Bond Fund that have been included in Income Plus Fund’s Statement of Operations since July 12, 2010.

After the close of business on July 9, 2010, Ultra Short-Term Income Fund acquired the net assets of Wells Fargo Advantage Stable Income Fund. The purpose of the transaction was to combine 2 funds with similar investment objectives and strategies. The acquisition was accomplished by a tax-free exchange of all of the shares of Wells Fargo Advantage Stable Income Fund for 15,360,118 shares of Ultra Short-Term Income Fund valued at $129,990,261 at an exchange ratio of 1.17 for Class A and Administrator Class and an exchange ratio of 1.16 for Class B and Class C. Shareholders holding Class A, Class B, Class C and Administrator Class shares of Wells Fargo Advantage Stable Income Fund received Class A, Class A, Class C and Administrator Class shares, respectively, of Ultra Short-Term Income Fund in the reorganization. The investment portfolio of Wells Fargo Advantage Stable Income Fund with a fair value of $128,197,223, identified cost of $128,480,118 and unrealized depreciation of $282,895 at July 9, 2010 were the principal assets acquired by Ultra Short-Term Income Fund. For financial reporting purposes, assets received and shares issued by Ultra Short-Term Income Fund were recorded at fair value; however, the cost basis of the investments received from Wells Fargo Advantage Stable Income Fund was carried forward to align ongoing reporting of Ultra Short-Term Income Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.

Assuming the acquisition had been completed June 1, 2010, the beginning of the annual reporting period for Ultra Short-Term Income Fund, the pro forma results of operations for the three months ended August 31, 2010 would have been:


Net investment income	$	4,665,807
Net realized and unrealized gains or losses on investments	$	4,536,706
Net increase in net assets resulting from operations	$	9,202,513

The aggregate net assets of the Ultra Short-Term Income Fund immediately before and after the acquisitions were $973,860,725 and $1,103,850,986, respectively.

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of Wells Fargo Advantage Stable Income Fund that have been included in Ultra Short Term Income Fund’s Statement of Operations since July 12, 2010.

8. BANK BORROWINGS

The Trust (excluding the money market funds) and Wells Fargo Variable Trust are parties to a $125,000,000 revolving credit agreement with State Street Bank and Trust Company, whereby the Funds are permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to each Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, under the credit agreement, the Funds pay an annual commitment fee equal to 0.125% of the unused balance, which is allocated pro rata. Prior to September 7, 2010, the annual commitment fee paid by the Funds was 0.15% of the unused balance.

During the six months ended February 28, 2011, Adjustable Rate Government Fund had the following borrowing activity:


	Average Borrowings		Weighted Average
	Outstanding		Interest Rate (annualized)			Interest Paid
Adjustable Rate Government Fund	$	36,711		1.52	%	$	558

During the six months ended February 28, 2011, Government Securities Fund, High Income Fund, High Yield Bond Fund, Income Plus Fund, Short Duration Government Bond Fund, Short-Term Bond Fund, Short-Term High Yield Bond Fund and Ultra Short-Term Income Fund had no borrowing activity.

9. INDEMNIFICATION

Under the Trust’s organizational documents, the officers and directors are indemnified 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 Funds and, therefore, cannot be estimated.



Other Information (Unaudited)		Wells Fargo Advantage Income Funds 165

PROXY VOTING INFORMATION

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-800-222-8222, visiting our Web site at wellsfargo.com/advantagefunds, or visiting the SEC Web site at www.sec.gov. Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge on the Funds’ Web site at wellsfargo.com/advantagefunds or by visiting the SEC Web site at www.sec.gov.



166 Wells Fargo Advantage Income Funds		Other Information (Unaudited)

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Funds are publicly available on the Funds’ Web site (www.wellsfargo.com/advantagefunds) on a monthly, 30-day or more delayed basis. In addition, top ten holdings information for the Fund is publicly available on the Funds’ Web site on a monthly, seven-day or more delayed basis. Each 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 without charge by visiting the SEC Web site at www.sec.gov. In addition, each 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.

BOARD OF TRUSTEES

The following table provides basic information about the Board of Trustees (the “Trustees”) of the Wells Fargo Funds Trust (the “Trust”) and Officers of the Trust. This table should be read in conjunction with the Prospectus and the Statement of Additional Information¹of the Fund. Each of the Trustees and Officers listed below acts in identical capacities for the Wells Fargo Advantage family of funds, which consists of 152 funds comprising the Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). All of the Trustees are also Members of the Audit and Governance Committees of each Trust in the Fund Complex. The mailing address of each Trustee and Officer is 525 Market Street, 12th Floor, San Francisco, CA 94105. Each Trustee and Officer serves an indefinite term, however, each Trustee serves such term until reaching the mandatory retirement age established by the Trustees.

Independent Trustees


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years	Other Directorships
Peter G. Gordon (Born 1942)	Trustee, since 1998; Chairman, since 2005 (Lead Trustee since 2001)	Co-Founder, Chairman, President and CEO of Crystal Geyser. Water Company. Trustee Emeritus, Colby College	Asset Allocation Trust

Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. 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. Mr. Harris is a certified public accountant.	CIGNA Corporation; Deluxe Corporation; Asset Allocation Trust

Judith M. Johnson (Born 1949)	Trustee, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust

Leroy Keith, Jr. (Born 1939)	Trustee, since 2010	Chairman, Bloc Global Services (development and construction), Trustee of the Evergreen Funds from 1983 to 2010. Former Managing Director, Almanac Capital Management (commodities firm), former Partner, Stonington Partners, Inc. (private equity fund), former Director, Obagi Medical Products Co. and former Director, Lincoln Educational Services.	Trustee, Virtus Fund Complex (consisting of 45 portfolios as of 12/31/10); Director, Diversapack Co. (packaging company); Asset Allocation Trust

David F. Larcker (Born 1951)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of Corporate Governance Research Program and Co-Director 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



Other Information (Unaudited)		Wells Fargo Advantage Income Funds 167


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years	Other Directorships
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor and Chair of the Department of Insurance and Risk Management, 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

Timothy J. Penny (Born 1951)	Trustee, since 1996	President and CEO 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 2010	Currently serves on the Investment Company Institute’s Board of Governors and Executive Committee as well the Independent Director’s Counsel Board of Governors and Executive Committee. Former Chairman of the Independent Directors Counsel. Trustee of the Evergreen Funds from 1984 to 2010. Retired Attorney, Law Offices of Michael S. Scofield and former Director and Chairman, Branded Media Corporation (multi-media branding company).	Asset Allocation Trust

Donald C. Willeke (Born 1940)	Trustee, since 1996	Principal of the law firm of Willeke & Daniels. General Counsel of the Minneapolis Employees Retirement Fund from 1984 until its consolidation into the Minnesota Public Employees Retirement Association on June 30, 2010.	Asset Allocation Trust

Officers


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years
Karla M. Rabusch (Born 1959)	President, since 2003	Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo Funds Management, LLC since 2003. Senior Vice President and Chief Administrative Officer of Wells Fargo Funds Management, LLC from 2001 to 2003.

C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Counsel, since 2003	Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001. Vice President and Managing Counsel of Wells Fargo Bank, N.A. since 1996.

Kasey Phillips (Born 1970)	Treasurer, since 2009	Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2006 to 2010. Treasurer of the Evergreen Funds from 2005 to 2010. Vice President and Assistant Vice President of Evergreen Investment Services, Inc. from 1999 to 2006.

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. Assistant Vice President of Evergreen Investment Services, Inc. from 2004 to 2008. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.

Jeremy DePalma (Born 1974)	Assistant Treasurer, since 2009	Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Vice President, Evergreen Investment Services, Inc. from 2004 to 2007. Assistant Vice President, Evergreen Investment Services, Inc. from 2000 to 2004 and the head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.



168 Wells Fargo Advantage Income Funds		Other Information (Unaudited)


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years
Debra Ann Early (Born 1964)	Chief Compliance Officer, since 2007	Chief Compliance Officer of Wells Fargo Funds Management, LLC since 2007. Chief Compliance Officer of Parnassus Investments from 2005 to 2007. Chief Financial Officer of Parnassus Investments from 2004 to 2007 and Senior Audit Manager of PricewaterhouseCoopers LLP from 1998 to 2004.


1.		The Statement of Additional Information includes additional information about the Funds’ Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the Funds’ Web site at www.wellsfargo.com/advantagefunds.



List of Abbreviations		Wells Fargo Advantage Income Funds 169

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


ABAG		— Association of Bay Area Governments
ACB		— Agricultural Credit Bank
ADR		— American Depositary Receipt
ADS		— American Depository Shares
AGC-ICC		— Assured Guaranty Corporation — Insured Custody Certificates
AGM		— Assured Guaranty Municipal
AMBAC		— American Municipal Bond Assurance Corporation
AMT		— Alternative Minimum Tax
ARM		— Adjustable Rate Mortgages
AUD		— Australian Dollar
BAN		— Bond Anticipation Notes
BART		— Bay Area Rapid Transit
BHAC		— Berkshire Hathaway Assurance Corporation
BRL		— Brazil Real
CAD		— Canadian Dollar
CDA		— Community Development Authority
CDO		— Collateralized Debt Obligation
CDSC		— Contingent Deferred Sales Charge
CGIC		— Capital Guaranty Insurance Company
CGY		— Capital Guaranty Corporation
CHF		— Swiss Franc
CIFG		— CDC (Caisse des Dépôts et Consignations) IXIS Financial Guarantee
COP		— Certificate of Participation
CP		— Commercial Paper
CR		— Custody Receipts
CTF		— Common Trust Fund
DEM		— Deutsche Mark
DKK		— Danish Krone
DRIVER		— Derivative Inverse Tax-Exempt Receipts
DW&P		— Department of Water & Power
DWR		— Department of Water Resources
ECFA		— Educational & Cultural Facilities Authority
EDFA		— Economic Development Finance Authority
ETET		— Eagle Tax-Exempt Trust
ETF		— Exchange-Traded Fund
EUR		— Euro
FFCB		— Federal Farm Credit Bank
FGIC		— Financial Guaranty Insurance Corporation
FHA		— Federal Housing Authority
FHAG		— Federal Housing Agency
FHLB		— Federal Home Loan Bank
FHLMC		— Federal Home Loan Mortgage Corporation
FNMA		— Federal National Mortgage Association
FRF		— French Franc
FSA		— Farm Service Agency
GBP		— Great British Pound
GDR		— Global Depositary Receipt
GNMA		— Government National Mortgage Association
GO		— General Obligation
HCFR		— Healthcare Facilities Revenue
HEFA		— Health & Educational Facilities Authority
HEFAR		— Higher Education Facilities Authority Revenue
HFA		— Housing Finance Authority
HFFA		— Health Facilities Financing Authority
HKD		— Hong Kong Dollar
HUD		— Housing & Urban Development
HUF		— Hungarian Forint
IDA		— Industrial Development Authority
IDAG		— Industrial Development Agency
IDR		— Industrial Development Revenue
IEP		— Irish Pound
JPY		— Japanese Yen
KRW		— Republic of Korea Won
LIBOR		— London Interbank Offered Rate
LLC		— Limited Liability Company
LLP		— Limited Liability Partnership
LOC		— Letter of Credit
LP		— Limited Partnership
MBIA		— Municipal Bond Insurance Association
MFHR		— Multi-Family Housing Revenue
MFMR		— Multi-Family Mortgage Revenue
MMD		— Municipal Market Data
MSTR		— Municipal Securities Trust Receipts
MTN		— Medium Term Note
MUD		— Municipal Utility District
MXN		— Mexican Peso
MYR		— Malaysian Ringgit
NATL-RE		— National Public Finance Guarantee Corporation
NLG		— Netherlands Guilder
NOK		— Norwegian Krone
NZD		— New Zealand Dollar
PCFA		— Pollution Control Finance Authority
PCR		— Pollution Control Revenue
PFA		— Public Finance Authority
PFFA		— Public Facilities Financing Authority
PFOTER		— Puttable Floating Option Tax-Exempt Receipts
plc		— Public Limited Company
PLN		— Polish Zloty
PSFG		— Public School Fund Guaranty
PUTTER		— Puttable Tax-Exempt Receipts
R&D		— Research & Development
RDA		— Redevelopment Authority
RDFA		— Redevelopment Finance Authority
REITS		— Real Estate Investment Trusts
ROC		— Reset Option Certificates
SEK		— Swedish Krona
SFHR		— Single Family Housing Revenue
SFMR		— Single Family Mortgage Revenue
SGD		— Singapore Dollar
SKK		— Slovakian Koruna
SLMA		— Student Loan Marketing Association
SPDR		— Standard & Poor’s Depositary Receipts
STIT		— Short-Term Investment Trust
STRIPS		— Separately Traded Registered Interest and Principal Securities
TAN		— Tax Anticipation Notes
TBA		— To Be Announced
TCR		— Transferable Custody Receipts
TRAN		— Tax Revenue Anticipation Notes
TRY		— Turkish Lira
TTFA		— Transportation Trust Fund Authority
USD		— Unified School District
XLCA		— XL Capital Assurance
ZAR		— South African Rand

This page is intentionally left blank.

reports at www.wellsfargo.com/advantagedelivery

More information about Wells Fargo Advantage Funds is available free upon request. To obtain literature, please write, e-mail, visit the Funds’ Web site, or call:

Wells Fargo Advantage Funds
P.O. Box 8266
Boston, MA 02266-8266 E-mail:
wfaf@wellsfargo.com

Web site: www.wellsfargo.com/advantagefunds
Individual Investors: 1- 800-222-8222
Retail Investment Professionals: 1- 888-877-9275
Institutional Investment Professionals: 1- 866-765-0778

This report and the financial statements contained herein are submitted for the general information of the shareholders of Wells Fargo Advantage Funds. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. For a prospectus containing more complete information, including charges and expenses, call 1-800-222-8222 or visit the Funds’ Web site at www.wellsfargo.com/advantagefunds. Please consider the investment objectives, risks, charges, and expenses of the investment carefully before investing. This and other information about Wells Fargo Advantage Funds can be found in the current prospectus. Read the prospectus carefully before you invest or send money.

Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Advantage Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the Funds. The Funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA/SIPC, an affiliate of Wells Fargo & Company.



NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE		Printed on Recycled paper

Semi-Annual Report February 28, 2011

WELLS FARGO ADVANTAGE MUNICIPAL INCOME FUNDS

Wells Fargo Advantage North Carolina Tax-Free Fund

Reduce clutter. Save trees.

Contents


Letter to Shareholders			2

Performance Highlights			6

Fund Expenses			8

Portfolio of Investments			9

Financial Statements
Statement of Assets and Liabilities			12
Statement of Operations			13
Statements of Changes in Net Assets			14
Financial Highlights			16

Notes to Financial Statements			18

Other Information			22

List of Abbreviations			25
Section 302 Certifications
Section 906 Certifications

NOT FDIC INSURED § NO BANK GURANTEE § MAY LOSE VALUE

WELLS FARGO INVESTMENT HISTORY


1932		Keystone creates one of the first mutual fund families.

1971		Wells Fargo & Company introduces one of the first institutional index funds.

1978		Wells Fargo applies Markowitz and Sharpe’s research on Modern Portfolio Theory to introduce one of the industry’s first Tactical Asset Allocation (TAA) models in institutional separately managed accounts.

1984		Wells Fargo Stagecoach Funds launches its first asset allocation fund.

1989		The Tactical Asset Allocation (TAA) Model is first applied to Wells Fargo’s asset allocation mutual funds.

1994		Wells Fargo introduces the LifePath Funds, one of the first suites of target date funds (now the Wells Fargo *Advantage Dow Jones Target Date Funds*^SM).

1996		Evergreen Investments and Keystone Funds merge.

1997		Wells Fargo launches Wells Fargo *Advantage WealthBuilder Portfolios*^SM, a fund-of-funds suite of products that includes the use of quantitative models to shift assets among investment styles.

1999		Norwest Advantage Funds and Stagecoach Funds are reorganized into Wells Fargo Funds after the merger of Norwest and Wells Fargo.

2002		Evergreen Retail and Evergreen Institutional companies form the umbrella asset management company, Evergreen Investments.

2005		The integration of Strong Funds with Wells Fargo Funds creates Wells Fargo *Advantage Funds, resulting in one of* the top 20 mutual fund companies in the United States.

2006		*Wells Fargo Advantage Funds* relaunches the target date product line as Wells Fargo Advantage Dow Jones *Target Date Funds.*

2010		The mergers and reorganizations of Evergreen and Wells Fargo Advantage mutual funds are completed, unifying the families under the brand of *Wells Fargo Advantage Funds.*

Wells Fargo Advantage Funds^®

Strength

Expertise

Partnership

NOT FDIC INSURED § NO BANK GURANTEE § MAY LOSE VALUE

Not part of the semi-annual report.

Wells Fargo Advantage Funds offers more than 120 mutual funds across a wide range of asset classes, representing over $236 billion in assets under management, as of February 28, 2011.


Equity Funds

Asia Pacific Fund	Enterprise Fund^†	Opportunity Fund^†
C&B Large Cap Value Fund	Equity Value Fund	Precious Metals Fund
C&B Mid Cap Value Fund	Global Opportunities Fund	Premier Large Company Growth Fund
Capital Growth Fund	Growth Fund	Small Cap Growth Fund
Classic Value Fund	Growth Opportunities Fund	Small Cap Opportunities Fund
Common Stock Fund	Health Care Fund	Small Cap Value Fund
Core Equity Fund	Index Fund	Small Company Growth Fund
Disciplined Global Equity Fund	International Equity Fund	Small Company Value Fund
Disciplined U.S. Core Fund	International Value Fund	Small/Mid Cap Core Fund
Disciplined Value Fund	Intrinsic Small Cap Value Fund	Small/Mid Cap Value Fund
Discovery Fund^†	Intrinsic Value Fund	Social Sustainability Fund^†
Diversified Equity Fund	Intrinsic World Equity Fund	Special Mid Cap Value Fund
Diversified International Fund	Large Cap Core Fund	Special Small Cap Value Fund
Diversified Small Cap Fund	Large Cap Growth Fund	Specialized Technology Fund
Emerging Growth Fund	Large Company Value Fund	Strategic Large Cap Growth Fund
Emerging Markets Equity Fund	Mid Cap Growth Fund	Traditional Small Cap Growth Fund
Endeavor Select Fund^†	Omega Growth Fund	Utility and Telecommunications Fund

Bond Funds

Adjustable Rate Government Fund	Inflation-Protected Bond Fund	Short-Term Bond Fund
California Limited-Term Tax-Free Fund	Intermediate Tax/AMT-Free Fund	Short-Term High Yield Bond Fund
California Tax-Free Fund	International Bond Fund	Short-Term Municipal Bond Fund
Colorado Tax-Free Fund	Minnesota Tax-Free Fund	Strategic Municipal Bond Fund
Government Securities Fund	Municipal Bond Fund	Total Return Bond Fund
High Income Fund	North Carolina Tax-Free Fund	Ultra Short-Term Income Fund
High Yield Bond Fund	Pennsylvania Tax-Free Fund	Ultra Short-Term Municipal Income Fund
Income Plus Fund	Short Duration Government Bond Fund	Wisconsin Tax-Free Fund

Asset Allocation Funds

Asset Allocation Fund	WealthBuilder Equity Portfolio^†	Target 2020 Fund^†
Conservative Allocation Fund	WealthBuilder Growth Allocation Portfolio^†	Target 2025 Fund^†
Diversified Capital Builder Fund	WealthBuilder Growth Balanced Portfolio^†	Target 2030 Fund^†
Diversified Income Builder Fund	WealthBuilder Moderate Balanced Portfolio^†	Target 2035 Fund^†
Growth Balanced Fund	WealthBuilder Tactical Equity Portfolio^†	Target 2040 Fund^†
Index Asset Allocation Fund	Target Today Fund^†	Target 2045 Fund^†
Moderate Balanced Fund	Target 2010 Fund^†	Target 2050 Fund^†
WealthBuilder Conservative Allocation Portfolio^†	Target 2015 Fund^†

Money Market Funds

100% Treasury Money Market Fund	Minnesota Money Market Fund	New Jersey Municipal Money Market Fund
California Municipal Money Market Fund	Money Market Fund	New York Municipal Money Market Fund
Cash Investment Money Market Fund	Municipal Cash Management Money Market Fund	Pennsylvania Municipal Money Market Fund
Government Money Market Fund	Municipal Money Market Fund	Prime Investment Money Market Fund
Heritage Money Market Fund^†	National Tax-Free Money Market Fund	Treasury Plus Money Market Fund

Variable Trust Funds¹

VT Core Equity Fund	VT Intrinsic Value Fund	VT Small Cap Value Fund
VT Discovery Fund^†	VT Omega Growth Fund	VT Total Return Bond Fund
VT Index Asset Allocation Fund	VT Opportunity Fund^†
VT International Equity Fund	VT Small Cap Growth Fund

An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Wells Fargo Advantage Money Market Funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in a money market fund.


1.		The Variable Trust Funds are generally available only through insurance company variable contracts.

†		In this report, the Wells Fargo Advantage Discovery Fund^SM, Wells Fargo Advantage Endeavor Select Fund^SM, Wells Fargo Advantage Enterprise Fund^SM, Wells Fargo Advantage Opportunity Fund^SM, Wells Fargo Advantage Social Sustainability Fund^SM, Wells Fargo Advantage WealthBuilder Conservative Allocation Portfolio^SM, Wells Fargo Advantage WealthBuilder Equity Portfolio^SM, Wells Fargo Advantage WealthBuilder Growth Allocation Portfolio^SM, Wells Fargo Advantage WealthBuilder Growth Balanced Portfolio^SM, Wells Fargo Advantage WealthBuilder Moderate Balanced Portfolio^SM, Wells Fargo Advantage WealthBuilder Tactical Equity Portfolio^SM, Wells Fargo Advantage Dow Jones Target Today Fund^SM, Wells Fargo Advantage Dow Jones Target 2010 Fund^SM, Wells Fargo Advantage Dow Jones Target 2015 Fund^SM, Wells Fargo Advantage Dow Jones Target 2020 Fund^SM, Wells Fargo Advantage Dow Jones Target 2025 Fund^SM, Wells Fargo Advantage Dow Jones Target 2030 Fund^SM, Wells Fargo Advantage Dow Jones Target 2035 Fund^SM, Wells Fargo Advantage Dow Jones Target 2040 Fund^SM, Wells Fargo Advantage Dow Jones Target 2045 Fund^SM, Wells Fargo Advantage Dow Jones Target 2050 Fund^SM, Wells Fargo Advantage Heritage Money Market Fund^SM, Wells Fargo Advantage VT Discovery Fund^SM, and Wells Fargo Advantage VT Opportunity Fund^SMare referred to as the Discovery Fund, Endeavor Select Fund, Enterprise Fund, Opportunity Fund, Social Sustainability Fund, WealthBuilder Conservative Allocation Portfolio, WealthBuilder Equity Portfolio, WealthBuilder Growth Allocation Portfolio, WealthBuilder Growth Balanced Portfolio, WealthBuilder Moderate Balanced Portfolio, WealthBuilder Tactical Equity Portfolio, Target Today Fund, Target 2010 Fund, Target 2015 Fund, Target 2020 Fund, Target 2025 Fund, Target 2030 Fund, Target 2035 Fund, Target 2040 Fund, Target 2045 Fund, Target 2050 Fund, Heritage Money Market Fund, VT Discovery Fund, and VT Opportunity Fund, respectively.

Not part of the semi-annual report.


2 Wells Fargo Advantage North Carolina Tax-Free Fund		Letter to Shareholders

Municipal bonds generally declined in value as the risk aversion during the months of November and December 2010 and January 2011 had a deleterious enough effect to outweigh the strong returns in February 2011.

Dear Valued Shareholder,

We are pleased to provide you with this semi-annual report for the Wells Fargo Advantage North Carolina Tax-Free Fund, which covers the six-month period that ended February 28, 2011. Municipal bond valuations broadly declined during this time period as state budget concerns across the country appeared to steer some investors away from municipal securities. However, by the end of the period, municipal bonds began to perform positively once again, as much of the risk aversion from earlier in the period began to appear overdone. Nonetheless, municipal bonds generally declined in value as the risk aversion during the months of November and December 2010 and January 2011 had enough of a negative effect to outweigh the strong returns in February 2011. The lower-rated credit-quality tiers underperformed the higher-rated credit-quality tiers¹.

Growing economic optimism was tempered by fiscal budget concerns.

U.S. Treasuries continued to rally in September and October 2010, pulling yields lower in nearly all corners of the fixed-income market, including municipal bonds. However, those trends reversed in November, as lingering sentiments over tepid economic growth and low inflation appeared to relent to growing economic optimism and increasing inflation expectations. The result was a shift higher in Treasury yields as security valuations declined in response to investor demands for higher levels of yield. A similar phenomenon played out in the municipal bond market, as concerns over state and local fiscal conditions materialized in the form of declining bond prices and higher yields.

The Federal Reserve launched a second round of quantitative easing in November.


1.		The ratings indicated are from Standard & Poor’s and/or Moody’s Investors Service. Credit Quality Ratings: Credit quality ratings apply to corporate and municipal bond issues. Standard & Poor’s rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Ratings from A to CCC may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the rating categories. Moody’s rates the creditworthiness of bonds, ranging from Aaa (highest) to CC (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. We generally define higher quality fixed income issues as BBB/Baa and above and lower quality fixed income issues as below BBB/Baa.


Letter to Shareholders		Wells Fargo Advantage North Carolina Tax-Free Fund 3

already-low nominal yields even lower. However, once QE2 commenced in November, U.S. Treasury yields began to rise again, apparently on the conviction that growth may take hold and that inflation may begin to move higher in upcoming quarters. This effect influenced yields to move higher in several fixed-income classes, including municipal bonds.

Higher-quality municipal bonds performed better than lower-quality bonds during the period.

Risk aversion at the state and local government level returned in mid-October, initially resulting in some negative returns from the AAA-rated, AA-rated, and A-rated credit tiers. However, as the period continued, the lower-quality municipal bonds began to decline more than higher-quality tiers, resulting in greater negative returns from the A-rated and BBB-rated credit tiers. In November, December, and January, the BBB-rated subsector of the Barclays Capital Municipal Bond Index²declined by more than 7%, which was the lowest performance of the investment-grade credit tiers during these months. In February, municipal bond valuations recovered, with the BBB-rated credit tier improving by 1%. The Barclays Capital Municipal Bond Index declined by about 2% in the month of November and again in December. It declined by 0.74% in January 2011 before rebounding by 1.6% in February. Thus, the period finished with positive performance trends in municipal bonds but not enough strength to reverse the declines in valuations during the final months of 2010 and the first month of 2011. Municipal bonds underperformed U.S. Treasuries during the period, with the Barclays Capital Municipal Bond Index finishing with a return of -3.51% and the Barclays Capital U.S. Treasury Index³returning -2.72%.

Growth and inflation expectations appeared to shift late in the period.

For much of the period, growth expectations remained constrained while a handful of inflation measures lingered at some of their lowest levels on record. These conditions helped support the U.S. Treasury rally in the opening months of the period; however, as growth expectations seemed to improve in November, investors appeared to look toward the next phase of the economic cycle and shifted out of some fixed-income asset classes in search of securities with higher levels of income. This included a broad portion of the investment-grade municipal bond market, which was already slogging through some fiscal budget concerns. Consequently, the municipal bond market went through its first significant reversal in more than a year, unwinding some solid returns from earlier in 2010. Looking forward, budget concerns will still be quite relevant as state and local municipalities sort through fiscal challenges. While we cannot say definitively what near-term performance will look like, we continue to encourage investors to maintain fully diversified, actively managed portfolios, which may provide better protection from risk. Although heightened volatility may be uncomfortable to experience in the


2.		The Barclays Capital Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index.

3.		The Barclays Capital U.S. Treasury Index is an unmanaged index of U.S. Treasury securities. You cannot invest directly in an index.


4 Wells Fargo Advantage North Carolina Tax-Free Fund		Letter to Shareholders

short term, it often leads to unique opportunities to add relative value for investors with long-term investment horizons.

Active management and credit analysis will drive fund construction and performance.

In this environment, we believe that fundamental credit analysis, issue selection, and yield-curve positioning will be the key components of portfolio construction and the primary drivers of relative performance. At Wells Fargo Advantage Funds^®, we intend to continue assessing relative-value opportunities throughout the municipal bond market and across our broad lineup of municipal funds.

Thank you for choosing Wells Fargo Advantage Funds. We appreciate your confidence in us. Through each market cycle, we are committed to helping you meet your financial needs. If you have any questions about your investment, please contact your investment professional or call us at 1-800-222-8222. We are available 24 hours a day, 7 days a week. You may also visit our website at www.wellsfargo.com/advantagefunds.

Sincerely,

Karla M. Rabusch
President
Wells Fargo Advantage Funds

This page is intentionally left blank.


6 Wells Fargo Advantage North Carolina Tax-Free Fund		Performance Highlights

Wells Fargo Advantage North Carolina Tax-Free Fund

INVESTMENT OBJECTIVE

The Fund seeks current income exempt from federal income tax and North Carolina individual income tax.

INVESTMENT ADVISER

Wells Fargo Funds Management, LLC

SUB-ADVISER

Wells Capital Management Incorporated

PORTFOLIO MANAGERS

Robert Miller
Bruce R. Johns

FUND INCEPTION

January 11, 1993


1.		Effective maturity is calculated based on the total long-term investments of the Fund. It is subject to change and may have changed since the date specified.

2.		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 and Poor’s rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Standard and Poor’s rates the creditworthiness of short-term notes from SP-1 (highest) to SP-3 (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, ranging from Aaa (highest) to CC (lowest). Moody’s rates the creditworthiness of short-term US tax-exempt municipal securities from MIG-1/VMIG-1 (highest) to SG (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, ranging from AAA (highest) to D (lowest). If a security was rated by all three rating agencies, the middle rating was utilized. If rated by two of three rating agencies, the lower rating was utilized and if rated by one of the agencies that rating was utilized. Credit quality is subject to change and is calculated based on the total investments of the Fund.


Performance Highlights		Wells Fargo Advantage North Carolina Tax-Free Fund 7

Wells Fargo Advantage North Carolina Tax-Free Fund (continued)

AVERAGE ANNUAL TOTAL RETURN³ (%) (AS OF FEBRUARY 28, 2011)


			Including Sales Charge								Excluding Sales Charge											Expense Ratios⁴
	Inception Date		6 Months*			1 Year			5 Year		10 Year		6 Months*			1 Year		5 Year		10 Year		Gross			Net⁵
Class A (ENCMX)		1/11/1993		(8.21	)		(3.39	)		1.50		2.94		(3.85	)		1.14		2.45		3.42		0.89	%		0.85	%
Class C (ENCCX)		3/27/2002		(5.21	)		(0.61	)		1.69		2.66		(4.21	)		0.39		1.69		2.66		1.64	%		1.60	%
Institutional Class (ENCYX)		2/28/1994												(3.71	)		1.44		2.71		3.69		0.56	%		0.54	%
Barclays Capital Municipal Bond Index⁶														(3.51	)		1.72		4.07		4.79
Barclays Capital North Carolina Municipal Bond Index⁷														(2.86	)		1.73		4.52		5.01


*		Returns for periods of less than one year are not annualized.

For Class A shares, the maximum front-end sales charge is 4.50%. For Class C shares, the maximum contingent deferred sales charge is 1.00%. Performance including sales charge assumes the sales charge for the corresponding time period. Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.

Bond fund values fluctuate in response to the financial condition of individual issuers, general market and economic conditions, and changes in interest rates. In general, when interest rates rise, bond fund values fall and investors may lose principal value. The use of derivatives may reduce returns and/or increase volatility. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). This Fund is exposed to North Carolina municipal securities risk, high-yield securities risk, and non-diversification risk. Consult the Fund’s prospectus for additional information on these and other risks. A portion of the Fund’s income may be subject to federal, state, and/or local income taxes or the alternative minimum tax (AMT). Any capital gains distributions may be taxable.


3.		Performance shown for Class C shares prior to its inception reflects the performance of the Class A shares, adjusted to reflect the higher expenses applicable to Class C. Historical performance shown for all classes of the Fund prior to July 12, 2010 is based on the performance of the Fund’s predecessor, Evergreen North Carolina Municipal Bond Fund.

4.		Reflects the expense ratios as stated in the January 1, 2011 prospectuses.

5.		The investment adviser has contractually committed through July 11, 2013 to waive fees and/or reimburse expenses to the extent necessary to maintain the contractual expense ratios shown, excluding acquired fund fees and certain other expenses. Without these reductions, the Fund’s returns would have been lower.

6.		Barclays Capital Municipal Bond Index is an unmanaged index composed of long-term tax-exempt bonds with a minimum credit rating of Baa. You cannot invest directly in an index.

7.		Barclays Capital North Carolina Municipal Bond Index includes investment-grade, tax-exempt, and fixed-rate bonds issued in the state of North Carolina; all securities have long-term maturities (greater than two years) and are selected from issues larger than $50 million. You cannot invest directly in an index.


8 Wells Fargo Advantage North Carolina Tax-Free		Fund Expenses

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period from September 1, 2010 to February 28, 2011.

Actual expenses

Hypothetical example for comparison purposes

The “Hypothetical” line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.


	Beginning		Ending		Expenses
	Account Value		Account Value		Paid During		Net Annual
	09-01-2010		02-28-2011		the Period¹		Expense Ratio
Class A
Actual	$	1,000.00	$	961.47	$	4.13		0.85	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.58	$	4.26		0.85	%
Class C
Actual	$	1,000.00	$	957.91	$	7.77		1.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.86	$	8.00		1.60	%
Institutional Class
Actual	$	1,000.00	$	962.95	$	2.63		0.54	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.12	$	2.71		0.54	%


1.		Expenses paid is equal to each class’ annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one-half year period).


Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage North Carolina Tax-Free Fund 9


Principal		Security Name	Interest Rate			Maturity Date		Value
Municipal Bonds and Notes: 99.47%

Massachusetts: 1.53%
$	2,410,000	Massachusetts Educational Financing Authority Series A (Education Revenue)		5.50	%		01/01/2017	$	2,655,844

Nevada: 3.37%
	2,000,000	Clark County NV Series C (Port Authority Revenue, AMBAC Insured)		5.38			07/01/2018		2,066,700
	3,500,000	Clark County School District NV Series B (Tax Revenue, NATL-RE FGIC Insured)		5.00			06/15/2018		3,798,025

									5,864,725


North Carolina: 81.37%
	10,000,000	Austin NC University of North Carolina Chapel Hill Project Series 208-1085 (Education Revenue) ±(x)		12.12			12/01/2036		10,135,200
	4,235,000	Board of Governors of the University of North Carolina Series 1 (Education Revenue)		5.00			10/01/2034		4,228,986
	5,000,000	Cape Fear Public Utility Authority North Carolina (Water & Sewer Revenue)		5.00			08/01/2035		5,030,600
	3,650,000	Charlotte NC Certifications Partner Series E (Lease Revenue)		5.00			06/01/2023		3,856,736
	1,885,000	Charlotte-Mecklenburg Hospital Authority NC (Health Revenue)		5.00			01/15/2027		1,880,796
	2,500,000	City of Charlotte NC Series A (Port Authority Revenue)		5.50			07/01/2034		2,536,275
	1,480,000	City of Charlotte NC Series B (Port Authority Revenue)		5.00			07/01/2020		1,535,840
	810,000	City of Charlotte NC Series B (Port Authority Revenue)		5.50			07/01/2024		820,562
	6,480,000	City of Charlotte NC Water and Sewer (Water & Sewer Revenue)		5.00			07/01/2038		6,574,997
	5,000,000	City of Raleigh NC Series A (Water & Sewer Revenue)		5.00			03/01/2036		5,066,250
	1,000,000	City of Winston Salem NC Water and Sewer System (Water & Sewer Revenue)		4.00			06/01/2017		1,104,060
	3,450,000	Columbus County NC Industrial Facilities & Pollution Control Financing Authority Series A (IDR)		5.85			12/01/2020		3,450,380
	790,000	County of Cumberland NC Series B1 (Lease Revenue)		5.00			12/01/2019		891,965
	1,075,000	County of Forsyth NC Public Facilities & Equipment Project (Lease Revenue)		5.00			10/01/2016		1,215,836
	3,745,000	County of Forsyth NC Public Facilities & Equipment Project (Lease Revenue)		5.00			10/01/2017		4,186,311
	2,750,000	County of Nash NC (Miscellaneous Revenue, Assured Guaranty Insured)		5.00			10/01/2030		2,758,195
	1,800,000	County of New Hanover NC (Health Revenue, AGM Insured)		5.13			10/01/2031		1,778,490
	5,000,000	Johnston Memorial Hospital Authority (Health Revenue)		5.25			10/01/2036		4,889,600
	3,000,000	Mecklenburg County NC Public Facilities Corporation (Miscellaneous Revenue)		5.00			03/01/2017		3,459,570
	1,035,000	Mecklenburg County NC Public Facilities Corporation (Miscellaneous Revenue)		5.00			03/01/2022		1,138,055
	2,100,000	North Carolina Capital Facilities Finance Agency (Resource Recovery Revenue) ±		3.38			08/01/2014		2,078,853
	5,000,000	North Carolina Eastern Municipal Power Agency Series A (Utilities Revenue)		5.00			01/01/2021		5,727,200
	3,750,000	North Carolina Eastern Municipal Power Agency Series A (Utilities Revenue)		6.50			01/01/2018		4,416,525
	2,985,000	North Carolina Housing Finance Agency Series 25-A (Housing Revenue) ±		4.65			07/01/2021		2,969,568
	220,000	North Carolina Housing Finance Agency Series 8-A (Housing Revenue)		6.00			07/01/2011		220,818
	250,000	North Carolina Housing Finance Agency Series 8-A (Housing Revenue)		6.10			07/01/2013		250,648
	1,845,000	North Carolina Housing Finance Agency Series 9-A (Housing Revenue)		5.60			07/01/2016		1,847,417
	130,000	North Carolina Housing Finance Agency Series JJ (Housing Revenue, FHA Insured)		6.15			03/01/2011		130,048
	3,230,000	North Carolina Medical Care Commission (Health Revenue, AMBAC Insured)		5.38			10/01/2014		3,234,328
	3,000,000	North Carolina Medical Care Commission Baptist Hospital Project (Health Revenue)		5.25			06/01/2029		3,019,440
	1,095,000	North Carolina Medical Care Commission Hugh Chatam Memorial Hospital Project (Health Revenue, Radian Insured)		5.50			10/01/2020		1,083,700
	3,500,000	North Carolina Medical Care Commission Novant Health Series A (Health Revenue) ±		0.40			11/01/2028		3,500,000
	1,000,000	North Carolina Medical Care Commission Presbyterian Homes Project (Health Revenue)		5.40			10/01/2027		866,410
	2,000,000	North Carolina Medical Care Commission Presbyterian Homes Project (Health Revenue)		5.50			10/01/2031		1,675,220
	1,500,000	North Carolina Medical Care Commission Presbyterian Homes Project (Health Revenue)		5.60			10/01/2036		1,228,575
	3,000,000	North Carolina Medical Care Commission Retirement Facilities (Health Revenue)		6.38			07/01/2023		3,417,390


10 Wells Fargo Advantage North Carolina Tax-Free Fund		Portfolio of Investments—February 28, 2011 (Unaudited)


Principal		Security Name	Interest Rate			Maturity Date	Value
North Carolina (continued)
$	2,365,000	North Carolina Medical Care Commission Southeastern Regional Medical Center Project (Health Revenue)		5.50	%	06/01/2015	$	2,443,896
	1,000,000	North Carolina Medical Care Commission Stanley Memorial Hospital Project (Health Revenue)		5.00		07/01/2033		863,420
	260,000	North Carolina Medical Care Commission Transylvania Community Hospital Incorporated Project (Health Revenue)		5.50		10/01/2012		259,399
	1,090,000	North Carolina Medical Care Commission Transylvania Community Hospital Incorporated Project (Health Revenue)		5.75		10/01/2019		1,030,235
	3,415,000	North Carolina Municipal Power Agency No. 1 Catawba Nuclear Power Project (Utilities Revenue)		5.50		01/01/2013		3,614,163
	2,720,000	North Carolina Municipal Power Agency No. 1 Catawba Nuclear Power Project Series A (Utilities Revenue)		5.00		01/01/2021		2,980,168
	1,000,000	North Carolina Municipal Power Agency No. 1 Catawba Nuclear Power Project Series A (Utilities Revenue)		5.00		01/01/2030		1,008,970
	3,540,000	North Carolina Ports Authority Series B (Port Authority Revenue)		5.00		02/01/2025		3,466,899
	6,500,000	North Carolina Turnpike Authority Series A (Transportation Revenue, Assured Guaranty Insured)		5.75		01/01/2039		6,560,645
	2,500,000	Raleigh Durham Airport Authority Series B-1 (Port Authority Revenue)		5.00		11/01/2028		2,549,600
	3,100,000	University of North Carolina at Chapel Hill Series A (Education Revenue)		5.00		12/01/2034		3,127,187
	5,930,000	Wake County NC (Miscellaneous Revenue)		5.00		01/01/2027		6,205,626
	5,000,000	Wake County NC Industrial Facilities & Pollution Control Financing Authority (IDR)		5.38		02/01/2017		5,227,350

								141,542,402


Puerto Rico: 4.09%
	3,000,000	Puerto Rico Highway & Transportation Authority Series AA-1 (Tax Revenue, AGM Insured)		4.95		07/01/2026		2,878,290
	6,000,000	Puerto Rico Electric Power Authority Series UU (Utilities Revenue, AGM Insured) ±		0.72		07/01/2029		4,231,020

								7,109,310


Tennessee: 1.67%
	2,000,000	Tennessee Energy Acquisition Corporation Series C (Energy Revenue)		5.00		02/01/2021		1,950,600
	1,020,000	Tennessee Energy Acquisition Corporation Series A (Energy Revenue)		5.25		09/01/2026		961,136

								2,911,736


Texas: 1.12%
	1,825,000	Texas Municipal Gas Acquisition & Supply Corporation Series D (Energy Revenue)		5.63		12/15/2017		1,942,092


Virgin Islands: 6.32%
	1,000,000	Virgin Islands PFA (Miscellaneous Revenue)		5.00		10/01/2029		938,871
	3,500,000	Virgin Islands PFA (Miscellaneous Revenue)		6.75		10/01/2019		3,754,310
	2,500,000	Virgin Islands PFA Series A (Miscellaneous Revenue)		6.75		10/01/2037		2,518,550
	1,000,000	Virgin Islands PFA Series B (Miscellaneous Revenue)		5.00		10/01/2025		950,710
	1,710,000	Virgin Islands PFA Series C (Miscellaneous Revenue)		5.00		10/01/2014		1,830,709
	1,000,000	Virgin Islands PFA Series C (Miscellaneous Revenue)		5.00		10/01/2022		1,001,680

								10,994,830


Total Municipal Bonds and Notes (Cost $171,184,432)								173,020,939


Portfolio of Investments—February 28, 2011 (Unaudited)		Wells Fargo Advantage North Carolina Tax-Free Fund 11


Shares		Security Name			Yield		Value
Short-Term Investments: 0.35%

Investment Companies: 0.35%
	608,528	Wells Fargo Advantage National Tax-Free Money Market Fund(u)(l)			0.10	%	$	608,528

Total Short-Term Investments (Cost $608,528)								608,528


Total Investments in Securities (Cost $171,792,960)*			99.82	%				173,629,467
Other Assets and Liabilities, Net			0.18					321,613

Total Net Assets			100.00	%			$	173,951,080


±		Variable rate investments.

(x)		Inverse floating rate security.

(u)		Rate shown is the 7-day annualized yield at period end.

(l)		Investment in an affiliate.

*		Cost for federal income tax purposes is $171,792,960 and net unrealized appreciation (depreciation) consists of:


Gross unrealized appreciation	$	4,301,662
Gross unrealized depreciation		(2,465,155	)

Net unrealized appreciation	$	1,836,507

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


12 Wells Fargo Advantage North Carolina Tax-Free Fund		Statement of Assets and Liabilities—February 28, 2011 (Unaudited)


Assets
Investments
In unaffiliated securities, at value	$	173,020,939
In affiliated securities, at value		608,528


Total investments, at value (see cost below)		173,629,467
Receivable for Fund shares sold		1,704
Receivable for interest		2,288,422
Prepaid expenses and other assets		37,901


Total assets		175,957,494


Liabilities
Dividends payable		461,504
Payable for investments purchased		1,116,210
Payable for Fund shares redeemed		237,249
Investment advisory fee payable		45,770
Distribution fees payable		3,656
Due to other related parties		21,710
Accrued expenses and other liabilities		120,315


Total liabilities		2,006,414

Total net assets	$	173,951,080


NET ASSETS CONSIST OF
Paid-in capital	$	188,966,027
Overdistributed net investment income		(58,632	)
Accumulated net realized losses on investments		(16,792,822	)
Net unrealized gains on investments		1,836,507


Total net assets		173,951,080


COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE¹
Net assets — Class A	$	49,296,304
Shares outstanding — Class A		5,162,691
Net asset value per share — Class A	$	9.55
Maximum offering price per share — Class A²	$	10.00
Net assets — Class C	$	5,951,189
Shares outstanding — Class C		623,237
Net asset value per share — Class C	$	9.55
Net assets — Institutional Class	$	118,703,587
Shares outstanding — Institutional Class		12,431,246
Net asset value per share — Institutional Class	$	9.55

Total investments, at cost	$	171,792,960


1.		The Fund has an unlimited number of authorized shares.

2.		Maximum offering price is computed as 100/95.50 of net asset value. On investments of $50,000 or more, the offering price is reduced.

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


Statement of Operations—For the Six Months Ended February 28, 2011 (Unaudited)		Wells Fargo Advantage North Carolina Tax-Free Fund 13


Investment income
Interest	$	4,510,332
Income from affiliated securities		1,264

Total investment income		4,511,596


Expenses
Investment advisory fee		343,095
Administration fees
Fund level		49,013
Class A		41,724
Class C		5,823
Institutional Class		54,648
Shareholder servicing fees
Class A		64,961
Class C		9,099
Distribution fees
Class C		27,296
Custody and accounting fees		10,422
Professional fees		19,441
Registration fees		21,324
Shareholder report expenses		29,449
Trustees’ fees and expenses		11,706
Other fees and expenses		26,787

Total expenses		714,788

Less: Fee waivers and/or expense reimbursements		(66,024	)

Net expenses		648,764

Net investment income		3,862,832


REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS

Net realized losses on unaffiliated securities		(422,685	)
Net change in unrealized gains (losses) on unaffiliated securities		(11,742,495	)

Net realized and unrealized gains (losses) on investments		(12,165,180	)

Net decrease in net assets resulting from operations	$	(8,302,348	)

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


14 Wells Fargo Advantage North Carolina Tax-Free Fund		Statements of Changes in Net Assets


	Six Months Ended
	February 28, 2011						Year Ended
	(Unaudited)						August 31, 2010¹

Operations
Net investment income				$	3,862,832					$	8,961,673
Net realized gains (losses) on investments					(422,685	)					5,773,186
Net change in unrealized gains (losses) on investments					(11,742,495	)					4,837,406

Net increase (decrease) in net assets resulting from operations					(8,302,348	)					19,572,265


Distributions to shareholders from
Net investment income
Class A					(980,258	)					(2,178,772	)
Class B²				NA							(67,960	)
Class C					(109,084	)					(221,328	)
Institutional Class					(2,770,315	)					(6,670,963	)

Total distributions to shareholders					(3,859,657	)					(9,139,023	)


Capital share transactions	Shares						Shares
Proceeds from shares sold
Class A		116,578			1,162,062			680,302			6,681,892
Class B²	NA			NA				185			1,928
Class C		68,432			677,376			345,990			3,394,282
Institutional Class		308,542			3,022,291			1,491,632			14,595,901

					4,861,729						24,674,003

Reinvestment of distributions
Class A		58,463			569,550			136,217			1,338,770
Class B²	NA			NA				2,855			27,966
Class C		7,510			73,163			14,542			142,981
Institutional Class		26,409			257,117			52,562			516,705

					899,830						2,026,422

Automatic conversion of Class B shares to Class A shares
Class A	NA			NA				33,145			325,182
Class B²	NA			NA				(33,145	)		(325,182	)

				NA							0

Payment for shares redeemed
Class A		(594,734	)		(5,810,420	)		(561,591	)		(5,516,010	)
Class B²	NA			NA				(248,411	)		(2,449,451	)
Class C		(210,525	)		(2,005,316	)		(101,213	)		(991,298	)
Institutional Class		(2,739,976	)		(26,196,038	)		(2,593,874	)		(25,446,131	)

					(34,011,774	)					(34,402,890	)

Net decrease in net assets resulting from capital share transactions					(28,250,215	)					(7,702,465	)

Total increase (decrease) in net assets					(40,412,220	)					2,730,777


Net assets
Beginning of period					214,363,300						211,632,523

End of period				$	173,951,080					$	214,363,300


Overdistributed net investment income				$	(58,632	)				$	(61,807	)


1.		After the close of business on July 9, 2010, the Fund acquired the net assets of Evergreen North Carolina Municipal Bond Fund, which became the accounting and performance survivor in the transaction. The information for the period prior to July 12, 2010 is that of the predecessor fund.

2.		Class B shares of Evergreen North Carolina Municipal Bond Fund became Class A shares on July 12, 2010.

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

This page is intentionally left blank.


16 Wells Fargo Advantage North Carolina Tax-Free Fund³		Financial Highlights


	Beginning				Net Realized			Distributions
	Net Asset		Net		and Unrealized			from Net
	Value Per		Investment		Gains (Losses)			Investment
	Share		Income		on Investments			Income

Class A
September 1, 2010 to February 28, 2011 (Unaudited)	$	10.12		0.18		(0.57	)		(0.18	)
September 1, 2009 to August 31, 2010	$	9.64		0.394		0.49			(0.40	)
September 1, 2008 to August 31, 2009	$	9.80		0.39		(0.15	)		(0.40	)
September 1, 2007 to August 31, 2008	$	10.00		0.39		(0.20	)		(0.39	)
September 1, 2006 to August 31, 2007	$	10.30		0.38		(0.30	)		(0.38	)
September 1, 2005 to August 31, 2006	$	10.44		0.39		(0.14	)		(0.38	)

Class C
September 1, 2010 to February 28, 2011 (Unaudited)	$	10.12		0.14		(0.56	)		(0.15	)
September 1, 2009 to August 31, 2010	$	9.64		0.324		0.49			(0.33	)
September 1, 2008 to August 31, 2009	$	9.80		0.32		(0.15	)		(0.33	)
September 1, 2007 to August 31, 2008	$	10.00		0.31		(0.20	)		(0.31	)
September 1, 2006 to August 31, 2007	$	10.30		0.30		(0.29	)		(0.31	)
September 1, 2005 to August 31, 2006	$	10.44		0.31		(0.13	)		(0.31	)

Institutional Class
September 1, 2010 to February 28, 2011 (Unaudited)	$	10.12		0.20		(0.57	)		(0.20	)
September 1, 2009 to August 31, 2010	$	9.64		0.424		0.49			(0.43	)
September 1, 2008 to August 31, 2009	$	9.80		0.42		(0.16	)		(0.42	)
September 1, 2007 to August 31, 2008	$	10.00		0.41		(0.20	)		(0.41	)
September 1, 2006 to August 31, 2007	$	10.30		0.41		(0.30	)		(0.41	)
September 1, 2005 to August 31, 2006	$	10.44		0.41		(0.13	)		(0.41	)


1.		Total return calculations would have been lower had certain expenses not been waived or reimbursed during the periods shown. Returns for periods of less than one year are not annualized.

2.		Calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. Portfolio turnover rates presented for periods of less than one year are not annualized.

3.		After the close of business on July 9, 2010, the Fund acquired the net assets of Evergreen North Carolina Municipal Bond Fund, which was the accounting and performance survivor in this transaction. The financial highlights for the periods prior to July 12, 2010 are those of Evergreen North Carolina Municipal Bond Fund. 4. Calculated based on average shares outstanding.

5.		Ratios include interest and fee expense relating to inverse floating-rate obligations as follows:


Year ended August 31, 2008	0.05	%
Year ended August 31, 2007	0.09	%
Year ended August 31, 2006	0.03	%

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


Financial Highlights		Wells Fargo Advantage North Carolina Tax-Free Fund 17


			Ending
Distributions			Net Asset		Ratio to Average Net Assets (Annualized)												Portfolio			Net Assets at
from Net			Value Per		Net Investment			Gross			Net			Total			Turnover			End of Period
Realized Gains			Share		Income			Expenses			Expenses			Return¹			Rate²			(000’s omitted)


	0.00		$	9.55		3.76	%		0.93	%		0.85	%		(3.85	)%		20	%	$	49,296
	0.00		$	10.12		4.03	%		0.90	%		0.88	%		9.38	%		63	%	$	56,508
	0.00		$	9.64		4.22	%		0.87	%		0.87	%		2.63	%		48	%	$	51,028
	0.00		$	9.80		3.88	%		0.92	%⁵		0.89	%⁵		1.90	%		78	%	$	54,680
	0.00		$	10.00		3.71	%		0.98	%⁵		0.93	%⁵		0.67	%		72	%	$	59,828
	(0.01	)	$	10.30		3.78	%		0.92	%⁵		0.87	%⁵		2.54	%		83	%	$	66,176


	0.00		$	9.55		3.00	%		1.68	%		1.60	%		(4.21	)%		20	%	$	5,951
	0.00		$	10.12		3.26	%		1.65	%		1.63	%		8.57	%		63	%	$	7,671
	0.00		$	9.64		3.47	%		1.62	%		1.62	%		1.87	%		48	%	$	4,805
	0.00		$	9.80		3.12	%		1.64	%⁵		1.64	%⁵		1.13	%		78	%	$	5,239
	0.00		$	10.00		2.96	%		1.68	%⁵		1.68	%⁵		(0.08	)%		72	%	$	5,734
	(0.01	)	$	10.30		3.03	%		1.61	%⁵		1.61	%⁵		1.82	%		83	%	$	5,744


	0.00		$	9.55		4.06	%		0.60	%		0.54	%		(3.71	)%		20	%	$	118,704
	0.00		$	10.12		4.29	%		0.64	%		0.63	%		9.66	%		63	%	$	150,184
	0.00		$	9.64		4.47	%		0.62	%		0.62	%		2.89	%		48	%	$	153,115
	0.00		$	9.80		4.12	%		0.64	%⁵		0.64	%⁵		2.15	%		78	%	$	275,112
	0.00		$	10.00		3.96	%		0.68	%⁵		0.68	%⁵		0.92	%		72	%	$	444,672
	(0.01	)	$	10.30		4.03	%		0.61	%⁵		0.61	%⁵		2.85	%		83	%	$	555,403


18 Wells Fargo Advantage North Carolina Tax-Free Fund		Notes to Financial Statements (Unaudited)

1. ORGANIZATION

After the close of business on July 9, 2010, the net assets of Evergreen North Carolina Municipal Bond Fund were acquired by the Fund, which was created to receive the assets of Evergreen North Carolina Municipal Bond Fund, in an exchange for shares of the Fund. As Evergreen North Carolina Municipal Bond Fund contributed all of the net assets and shareholders to the newly created fund, the accounting and performance history of Evergreen North Carolina Municipal Bond Fund has been carried forward in the financial statements contained herein.

Class A, Class B, Class C and Class I shares of Evergreen North Carolina Municipal Bond Fund received Class A, Class A, Class C and Institutional Class shares, respectively, of the Fund.

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. Management has considered the circumstances under which the Fund should recognize or make disclosures regarding events or transactions occurring subsequent to the balance sheet date through the date the financial statements are issued. Adjustments or additional disclosures, if any, have been included in these financial statements.

Securities valuation

Investments in open-end mutual funds and non-registered investment companies are generally valued at net asset value.

The valuation techniques used by the Fund to measure fair value are consistent with the market approach, income approach and/or cost approach, where applicable, for each security type.

When-issued transactions

The Fund may purchase securities on a forward commitment or ‘when-issued’ basis. The Fund records a when-issued transaction on the trade date and will segregate assets to cover its obligation by confirming the availability of qualifying assets having a value sufficient to make payment for the securities purchased. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.


Notes to Financial Statements (Unaudited)		Wells Fargo Advantage North Carolina Tax-Free Fund 19

Security transactions and income recognition

Securities transactions are recorded on a trade date basis. Realized gains or losses are reported on the basis of identified cost of securities delivered.

Distributions to shareholders

Distributions to shareholders from net investment income are accrued daily and paid monthly. Distributions from net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in conformity with income tax regulations, which may differ from 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 and tax-exempt income and any net realized capital gains (after reduction for capital loss carry forwards) 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.

As of August 31, 2010, the Fund had estimated net capital loss carryforwards, which are available to offset future net realized capital gains, in the amount of $16,370,137 with $753,148 expiring in 2015, $1,458,697 expiring in 2016, $10,534,854 expiring in 2017 and $3,623,438 expiring in 2018.

Under the recently enacted Regulated Investment Company Modernization Act of 2010, the Fund will be permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. As a result of this ordering rule, pre-enactment capital loss carry forwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.

Class allocations

The separate classes of shares offered by the Fund differ principally in applicable sales charges, distribution, shareholder servicing and administration fees. Shareholders of each class bear certain expenses that pertain to that particular class. All shareholders bear the common expenses of the Fund, earn income from the portfolio, and are allocated unrealized gains and losses pro rata based on the average daily net assets of each class, without distinction between share classes. Dividends are determined separately for each class based on income and expenses allocable to each class. Realized gains and losses are allocated to each class pro rata based upon the net assets of each class on the date realized. Differences in per share dividend rates generally result from the relative weightings of pro rata income and realized gain allocations and from differences in separate class expenses, including distribution, shareholder servicing, and administration fees.

3. FAIR VALUATION MEASUREMENTS

Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest


20 Wells Fargo Advantage North Carolina Tax-Free Fund		Notes to Financial Statements (Unaudited)

level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:

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

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

§		Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

As of February 28, 2011, the inputs used in valuing the Fund’s assets, which are carried at fair value, were as follows:


			Significant Other		Significant
Investments in	Quoted Prices		Observable Inputs		Unobservable Inputs
Securities	(Level 1)		(Level 2)		(Level 3)		Total
Municipal bonds and notes	$	0	$	173,020,939	$	0	$	173,020,939
Short-term investments
Investment companies		608,528		0		0		608,528
	$	608,528	$	173,020,939	$	0	$	173,629,467

Further details on the major security types listed above can be found in the Fund’s Portfolio of Investments.

For the six months ended February 28, 2011, the Fund did not have any significant transfers into/out of Level 1 and Level 2.

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Investment advisory fee

The Trust has entered into an investment advisory contract with Wells Fargo Funds Management, LLC (“Funds Management”), an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”). The investment adviser is responsible for implementing investment policies and guidelines and for supervising the investment sub-adviser, who is responsible for day-to-day portfolio management of the Fund.

Pursuant to the contract, Funds Management is paid an annual investment advisory fee starting at 0.35% and declining to 0.25% as the average daily net assets of the Fund increase. For the six months ended February 28, 2011, the investment advisory fee was equivalent to an annual rate of 0.35% of the Fund’s average daily net assets.

Funds Management may retain the services of certain investment sub-advisers to provide daily portfolio management to the Fund. Wells Capital Management Incorporated (“Wells Capital Management”), an affiliate of Funds Management, is the investment sub-adviser to the Fund and is paid a fee by the investment adviser at an annual rate starting at 0.20% and declining to 0.10% as the average daily net assets of the Fund increase.

The fees related to investment sub-advisory services are borne directly by the investment adviser and do not increase the overall fees paid by the Fund to the investment adviser.

Administration and transfer agent fees


		Administration Fees
	Average Daily	(% of Average
	Net Assets	Daily Net Assets)
Fund level	First $5 billion		0.05	%
	Next $5 billion		0.04
	Over $10 billion		0.03
Class A, Class C	All asset levels		0.16
Institutional Class	All asset levels		0.08


Notes to Financial Statements (Unaudited)		Wells Fargo Advantage North Carolina Tax-Free Fund 21

Funds Management has contractually waived and/or reimbursed investment advisory and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses.

Distribution fees

The Trust has adopted a Distribution Plan for Class C shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. Distribution fees are charged to Class C shares and paid to Wells Fargo Funds Distributor, LLC, the principal underwriter, at an annual rate of 0.75% of its average daily net assets.

For the six months ended February 28, 2011, Wells Fargo Funds Distributor, LLC received $1,944 from the sale of Class A shares and $143 in contingent deferred sales charges from redemptions of Class C shares.

Shareholder servicing fees

The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A and Class C shares of the Fund are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class.

A portion of these total shareholder servicing fees were paid to affiliates of Wells Fargo.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, exclusive of short-term securities (securities with maturities of one year or less at purchase date) for the six months ended February 28, 2011 were $38,426,045 and $58,344,915, respectively.

6. BANK BORROWINGS

The Trust (excluding the money market funds) and Wells Fargo Variable Trust are parties to a $125,000,000 revolving credit agreement with State Street Bank and Trust Company, whereby the Fund is permitted to use bank borrowings for temporary or emergency purposes, such as to fund shareholder redemption requests. Interest under the credit agreement is charged to the Fund based on a borrowing rate equal to the higher of the Federal Funds rate in effect on that day plus 1.25% or the overnight LIBOR rate in effect on that day plus 1.25%. In addition, under the credit agreement, the Fund pays an annual commitment fee equal to 0.125% of the unused balance, which is allocated pro rata. Prior to September 7, 2010, the annual commitment fee paid by the Fund was 0.15% of the unused balance.

For the six months ended February 28, 2011, there were no borrowings by the Fund under the agreement.

7. CONCENTRATION RISK

The Fund invests a substantial portion of its assets in issuers of municipal debt securities located in a single state and, therefore, it may be more affected by economic and political developments in that state or region than would be a comparable general tax-exempt mutual fund.

8. INDEMNIFICATION


22 Wells Fargo Advantage North Carolina Tax-Free Fund		Other Information (Unaudited)

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 without charge, upon request, by calling 1-800-222-8222, visiting our Web site at wellsfargo.com/advantagefunds, or visiting the SEC Web site at www.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 without charge on the Fund’s Web site at wellsfargo.com/advantagefunds or by visiting the SEC Web site at www.sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available on the Fund’s Web site (wellsfargo.com/advantagefunds) on a monthly, 30-day or more delayed basis. In addition, top ten holdings information for the Fund is publicly available on the Fund’s Web site on a monthly, seven-day or more 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 without charge by visiting the SEC Web site at www.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.

BOARD OF TRUSTEES

Independent Trustees


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years	Other Directorships
Peter G. Gordon (Born 1942)	Trustee, since 1998; Chairman, since 2005 (Lead Trustee since 2001)	Co-Founder, Chairman, President and CEO of Crystal Geyser. Water Company. Trustee Emeritus, Colby College	Asset Allocation Trust

Isaiah Harris, Jr. (Born 1952)	Trustee, since 2009	Retired. 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. Mr. Harris is a certified public accountant.	CIGNA Corporation; Deluxe Corporation; Asset Allocation Trust

Judith M. Johnson (Born 1949)	Trustee, since 2008	Retired. Prior thereto, Chief Executive Officer and Chief Investment Officer of Minneapolis Employees Retirement Fund from 1996 to 2008. Ms. Johnson is an attorney, certified public accountant and a certified managerial accountant.	Asset Allocation Trust

Leroy Keith, Jr. (Born 1939)	Trustee, since 2010	Chairman, Bloc Global Services (development and construction), Trustee of the Evergreen Funds from 1983 to 2010. Former Managing Director, Almanac Capital Management (commodities firm), former Partner, Stonington Partners, Inc. (private equity fund), former Director, Obagi Medical Products Co. and former Director, Lincoln Educational Services.	Trustee, Virtus Fund Complex (consisting of 45 portfolios as of 12/31/10); Director, Diversapack Co. (packaging company); Asset Allocation Trust


Other Information (Unaudited)		Wells Fargo Advantage North Carolina Tax-Free Fund 23


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years	Other Directorships
David F. Larcker (Born 1951)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of Corporate Governance Research Program and Co-Director 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 2006	International Foundation of Employee Benefit Plans Professor and Chair of the Department of Insurance and Risk Management, 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

Timothy J. Penny (Born 1951)	Trustee, since 1996	President and CEO 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 2010	Currently serves on the Investment Company Institute’s Board of Governors and Executive Committee as well the Independent Director’s Counsel Board of Governors and Executive Committee. Former Chairman of the Independent Directors Counsel. Trustee of the Evergreen Funds from 1984 to 2010. Retired Attorney, Law Offices of Michael S. Scofield and former Director and Chairman, Branded Media Corporation (multi-media branding company).	Asset Allocation Trust

Donald C. Willeke (Born 1940)	Trustee, since 1996	Principal of the law firm of Willeke & Daniels. General Counsel of the Minneapolis Employees Retirement Fund from 1984 until its consolidation into the Minnesota Public Employees Retirement Association on June 30, 2010.	Asset Allocation Trust

Officers


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years
Karla M. Rabusch (Born 1959)	President, since 2003	Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo Funds Management, LLC since 2003. Senior Vice President and Chief Administrative Officer of Wells Fargo Funds Management, LLC from 2001 to 2003.

C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Counsel, since 2003	Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001. Vice President and Managing Counsel of Wells Fargo Bank, N.A. since 1996.

Kasey Phillips (Born 1970)	Treasurer, since 2009	Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2006 to 2010. Treasurer of the Evergreen Funds from 2005 to 2010. Vice President and Assistant Vice President of Evergreen Investment Services, Inc. from 1999 to 2006.

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. Assistant Vice President of Evergreen Investment Services, Inc. from 2004 to 2008. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.


24 Wells Fargo Advantage North Carolina Tax-Free Fund		Other Information (Unaudited)


Name and	Position Held and
Year of Birth	Length of Service	Principal Occupations During Past Five Years
Jeremy DePalma (Born 1974)	Assistant Treasurer, since 2009	Senior Vice President of Wells Fargo Funds Management, LLC since 2009. Senior Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Vice President, Evergreen Investment Services, Inc. from 2004 to 2007. Assistant Vice President, Evergreen Investment Services, Inc. from 2000 to 2004 and the head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.

Debra Ann Early (Born 1964)	Chief Compliance Officer, since 2007	Chief Compliance Officer of Wells Fargo Funds Management, LLC since 2007. Chief Compliance Officer of Parnassus Investments from 2005 to 2007. Chief Financial Officer of Parnassus Investments from 2004 to 2007 and Senior Audit Manager of PricewaterhouseCoopers LLP from 1998 to 2004.


1.		The Statement of Additional Information includes additional information about the Fund’s Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the Fund’s Web site at www.wellsfargo.com/advantagefunds.


List of Abbreviations		Wells Fargo Advantage North Carolina Tax-Free Fund 25

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


ABAG		— Association of Bay Area Governments
ACB		— Agricultural Credit Bank
ADR		— American Depositary Receipt
ADS		— American Depository Shares
AGC-ICC		— Assured Guaranty Corporation — Insured Custody Certificates
AGM		— Assured Guaranty Municipal
AMBAC		— American Municipal Bond Assurance Corporation
AMT		— Alternative Minimum Tax
ARM		— Adjustable Rate Mortgages
AUD		— Australian Dollar
BAN		— Bond Anticipation Notes
BART		— Bay Area Rapid Transit
BHAC		— Berkshire Hathaway Assurance Corporation
BRL		— Brazil Real
CAD		— Canadian Dollar
CDA		— Community Development Authority
CDO		— Collateralized Debt Obligation
CDSC		— Contingent Deferred Sales Charge
CGIC		— Capital Guaranty Insurance Company
CGY		— Capital Guaranty Corporation
CHF		— Swiss Franc
CIFG		— CDC (Caisse des Dépôts et Consignations) IXIS Financial Guarantee
COP		— Certificate of Participation
CP		— Commercial Paper
CR		— Custody Receipts
CTF		— Common Trust Fund
DEM		— Deutsche Mark
DKK		— Danish Krone
DRIVER		— Derivative Inverse Tax-Exempt Receipts
DW&P		— Department of Water & Power
DWR		— Department of Water Resources
ECFA		— Educational & Cultural Facilities Authority
EDFA		— Economic Development Finance Authority
ETET		— Eagle Tax-Exempt Trust
ETF		— Exchange-Traded Fund
EUR		— Euro
FFCB		— Federal Farm Credit Bank
FGIC		— Financial Guaranty Insurance Corporation
FHA		— Federal Housing Authority
FHAG		— Federal Housing Agency
FHLB		— Federal Home Loan Bank
FHLMC		— Federal Home Loan Mortgage Corporation
FNMA		— Federal National Mortgage Association
FRF		— French Franc
FSA		— Farm Service Agency
GBP		— Great British Pound
GDR		— Global Depositary Receipt
GNMA		— Government National Mortgage Association
GO		— General Obligation
HCFR		— Healthcare Facilities Revenue
HEFA		— Health & Educational Facilities Authority
HEFAR		— Higher Education Facilities Authority Revenue
HFA		— Housing Finance Authority
HFFA		— Health Facilities Financing Authority
HKD		— Hong Kong Dollar
HUD		— Housing & Urban Development
HUF		— Hungarian Forint
IDA		— Industrial Development Authority
IDAG		— Industrial Development Agency
IDR		— Industrial Development Revenue
IEP		— Irish Pound
JPY		— Japanese Yen
KRW		— Republic of Korea Won
LIBOR		— London Interbank Offered Rate
LLC		— Limited Liability Company
LLP		— Limited Liability Partnership
LOC		— Letter of Credit
LP		— Limited Partnership
MBIA		— Municipal Bond Insurance Association
MFHR		— Multi-Family Housing Revenue
MFMR		— Multi-Family Mortgage Revenue
MMD		— Municipal Market Data
MSTR		— Municipal Securities Trust Receipts
MTN		— Medium Term Note
MUD		— Municipal Utility District
MXN		— Mexican Peso
MYR		— Malaysian Ringgit
NATL-RE		— National Public Finance Guarantee Corporation
NLG		— Netherlands Guilder
NOK		— Norwegian Krone
NZD		— New Zealand Dollar
PCFA		— Pollution Control Finance Authority
PCR		— Pollution Control Revenue
PFA		— Public Finance Authority
PFFA		— Public Facilities Financing Authority
PFOTER		— Puttable Floating Option Tax-Exempt Receipts
plc		— Public Limited Company
PLN		— Polish Zloty
PSFG		— Public School Fund Guaranty
PUTTER		— Puttable Tax-Exempt Receipts
R&D		— Research & Development
RDA		— Redevelopment Authority
RDFA		— Redevelopment Finance Authority
REITS		— Real Estate Investment Trusts
ROC		— Reset Option Certificates
SEK		— Swedish Krona
SFHR		— Single Family Housing Revenue
SFMR		— Single Family Mortgage Revenue
SGD		— Singapore Dollar
SKK		— Slovakian Koruna
SLMA		— Student Loan Marketing Association
SPDR		— Standard & Poor’s Depositary Receipts
STIT		— Short-Term Investment Trust
STRIPS		— Separately Traded Registered Interest and Principal Securities
TAN		— Tax Anticipation Notes
TBA		— To Be Announced
TRAN		— Tax Revenue Anticipation Notes
TCR		— Transferable Custody Receipts
TRY		— Turkish Lira
TTFA		— Transportation Trust Fund Authority
USD		— Unified School District
XLCA		— XL Capital Assurance
ZAR		— South African Rand

This page is intentionally left blank.

More information about Wells Fargo Advantage Funds is available free upon request. To obtain literature, please write, e-mail, visit the Funds’ Web site, or call:

Wells Fargo Advantage Funds

P.O. Box 8266
Boston, MA 02266-8266
E-mail: wfaf@wellsfargo.com

Web site: www.wellsfargo.com/advantagefunds
Individual Investors: 1- 800-222-8222
Retail Investment Professionals: 1-888-877-9275
Institutional Investment Professionals: 1- 866-765-0778

This report and the financial statements contained herein are submitted for the general information of the shareholders of Wells Fargo Advantage Funds. If this report is used for promotional purposes, distribution of the report must be accompanied or preceded by a current prospectus. For a prospectus containing more complete information, including charges and expenses, call 1-800-222-8222 or visit the Fund’s Web site at www.wellsfargo.com/advantagefunds. Please consider the investment objectives, risks, charges, and expenses of the investment carefully before investing. This and other information about Wells Fargo Advantage Funds can be found in the current prospectus. Read the prospectus carefully before you invest or send money.

Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Advantage Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the Funds. The Funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA/SIPC, an affiliate of Wells Fargo & Company.

Printed on Recycled paper

NOT FDIC INSURED § NO BANK GUARANTEE § MAY LOSE VALUE


ITEM 2.		CODE OF ETHICS

Not required in this filing


ITEM 3.		AUDIT COMMITTEE FINANCIAL EXPERT

Not required in this filing.


ITEM 4.		PRINCIPAL ACCOUNTANT FEES AND SERVICES

Not required in this filing.


ITEM 5.		AUDIT COMMITTEE OF LISTED REGISTRANTS

Not required in this filing.


ITEM 6.		SCHEDULE OF INVESTMENTS

The Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form.


ITEM 7.		DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.


ITEM 8.		PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.


ITEM 9.		PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMEENT INVESTMENT COMPANY AND AFFILIATED PURCHASES

Not applicable.


ITEM 10.		SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

The Governance Committee (the “Committee”) of the Board of Trustees of the registrant (the “Trust”) has adopted procedures by which a shareholder of any series of the Trust may submit properly a nominee recommendation for the Committee’s consideration.

The shareholder must submit any such recommendation (a “Shareholder Recommendation”) in writing to the Trust, to the attention of the Trust’s Secretary, at the address of the principal executive offices of the Trust.

The Shareholder Recommendation must be delivered to, or mailed and received at, the principal executive offices of the Trust not less than forty-five (45) calendar days nor more than seventy-five (75) calendar days prior to the date of the Committee meeting at which the nominee would be considered.

The Shareholder Recommendation must include: (i) a statement in writing setting forth (A) the name, age, date of birth, business address, residence address and nationality of the person recommended by the shareholder (the “candidate”); (B) the series (and, if applicable, class) and number of all shares of the Trust owned of record or beneficially by the candidate, as reported to such shareholder by the candidate; (C) any other information regarding the candidate called for with respect to director nominees by paragraphs (a), (d), (e) and (f) of Item 401 of Regulation S-K or paragraph (b) of Item 22 of Rule 14a-101 (Schedule 14A) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), adopted by the Securities and Exchange Commission (or the corresponding provisions of any regulation or rule subsequently adopted by the Securities and Exchange Commission or any successor agency applicable to the Trust); (D) any other information regarding the candidate that would be required to be disclosed if the candidate were a nominee in a proxy statement or other filing required to be made in connection with solicitation of proxies for election of directors pursuant to Section 14 of the Exchange Act and the rules and regulations promulgated thereunder; and (E) whether the recommending shareholder believes that the candidate is or will be an “interested person” of the Trust (as defined in the Investment Company Act of 1940, as amended) and, if not an “interested person,” information regarding the candidate that will be sufficient for the Trust to make such determination; (ii) the written and signed consent of the candidate to be named as a nominee and to serve as a Trustee if elected; (iii) the recommending shareholder’s name as it appears on the Trust’s books; (iv) the series (and, if applicable, class) and number of all shares of the Trust owned beneficially and of record by the recommending shareholder; and (v) a description of all arrangements or understandings between the recommending shareholder and the candidate and any other person or persons (including their names) pursuant to which the recommendation is being made by the recommending shareholder. In addition, the Committee may require the

candidate to interview in person and furnish such other information as it may reasonably require or deem necessary to determine the eligibility of such candidate to serve as a Trustee of the Trust.


ITEM 11.		CONTROLS AND PROCEDURES

(a) The President and Treasurer have concluded that the Wells Fargo Funds Trust (the “Trust”) disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) provide reasonable assurances that material information relating to the Trust 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 Trust’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 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.


ITEM 12.		EXHIBITS

(a)(1) Not required in this filing.

(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.

SIGNATURES

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


	Wells Fargo Funds Trust
	By:	/s/ Karla M. Rabusch
		Karla M. Rabusch
		President

	Date: April 28, 2011

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.



	By:	/s/ Karla M. Rabusch
		Karla M. Rabusch
		President

	Date: April 28, 2011


	By:	/s/ Kasey L. Phillips
		Kasey L. Phillips
		Treasurer

	Date: April 28, 2011

^© 2011 Wells Fargo Funds Management, LLC. All rights reserved.

www.wellsfargo.com/advantagefunds

SIFNL/SAR104 02-11