Allspring Special Mid Cap Value Fund (WFMDX) N-CSRS Certified 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: 800-222-8222

Date of fiscal year end: August 31, 2011

Date of reporting period: February 29, 2012

ITEM 1. REPORT TO SHAREHOLDERS

Wells Fargo Advantage

Adjustable Rate Government Fund

Semi-Annual Report

February 29, 2012

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Contents

Letter to Shareholders	2
Performance Highlights	5
Fund Expenses	7
Portfolio of Investments	8
Financial Statements
Statement of Assets and Liabilities	26
Statement of Operations	27
Statements of Changes in Net Assets	28
Financial Highlights	29
Notes to Financial Statements	34
Other Information	39
List of Abbreviations	42

The views expressed and any forward-looking statements are as of February 29, 2012, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Advantage Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements; the views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC, disclaims any obligation to publicly update or revise any views expressed or forward-looking statements.

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 FundsSM).
1996	Evergreen Investments and Keystone Funds merge.
1997	Wells Fargo launches Wells Fargo Advantage WealthBuilder PortfoliosSM, 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 a fund’s investment objectives, risks, charges, and expenses before investing. For a current prospectus and, if available, a summary prospectus, containing this and other information, visit wellsfargoadvantagefunds.com. 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.

“Dow Jones^®” and “Dow Jones Target Date Indexes^SM” are service marks of Dow Jones Trademark Holdings, LLC (“Dow Jones”), have been licensed to CME Group Index Services LLC (“CME Indexes”) and have been sublicensed for use for certain purposes by Global Index Advisors, Inc, and Wells Fargo Funds Management, LLC. The Wells Fargo Advantage Dow Jones Target Date Funds^SM based on the Dow Jones Target Date Indexes^SM, are not sponsored, endorsed, sold or promoted by Dow Jones, CME Indexes or their respective affiliates and none of them makes any representation regarding the advisability of investing in such product(s).

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

Not part of the semi-annual report.

Wells Fargo Advantage Funds offers more than 110 mutual funds across a wide range of asset classes, representing over $218 billion in assets under management, as of February 29, 2012.

Equity Funds
Asia Pacific Fund	Equity Value Fund	Precious Metals Fund
C&B Large Cap Value Fund	Global Opportunities Fund	Premier Large Company Growth Fund
C&B Mid Cap Value Fund	Growth Fund	Small Cap Opportunities Fund
Capital Growth Fund	Index Fund	Small Cap Value Fund
Common Stock Fund	International Equity Fund	Small Company Growth Fund
Disciplined U.S. Core Fund	International Value Fund	Small Company Value Fund
Discovery Fund†	Intrinsic Small Cap Value Fund	Small/Mid Cap Core Fund
Diversified Equity Fund	Intrinsic Value Fund	Small/Mid Cap Value Fund
Diversified International Fund	Intrinsic World Equity Fund	Special Mid Cap Value Fund
Diversified Small Cap Fund	Large Cap Core Fund	Special Small Cap Value Fund
Emerging Growth Fund	Large Cap Growth Fund	Specialized Technology Fund
Emerging Markets Equity Fund	Large Company Value Fund	Strategic Large Cap Growth Fund
Endeavor Select Fund†	Omega Growth Fund	Traditional Small Cap Growth Fund
Enterprise Fund†	Opportunity 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
Absolute Return Fund	WealthBuilder Equity Portfolio†	Target 2020 Fund†
Asset Allocation Fund	WealthBuilder Growth Allocation Portfolio†	Target 2025 Fund†
Conservative Allocation Fund	WealthBuilder Growth Balanced Portfolio†	Target 2030 Fund†
Diversified Capital Builder Fund	WealthBuilder Moderate Balanced Portfolio†	Target 2035 Fund†
Diversified Income Builder Fund	WealthBuilder Tactical Equity Portfolio†	Target 2040 Fund†
Growth Balanced Fund	Target Today Fund†	Target 2045 Fund†
Index Asset Allocation Fund	Target 2010 Fund†	Target 2050 Fund†
Moderate Balanced Fund	Target 2015 Fund†	Target 2055 Fund†
WealthBuilder Conservative Allocation Portfolio†
Money Market Funds
100% Treasury Money Market Fund	Heritage Money Market Fund†	National Tax-Free Money Market Fund
California Municipal Money Market Fund	Money Market Fund	Prime Investment Money Market Fund
Cash Investment Money Market Fund	Municipal Cash Management Money Market Fund	Treasury Plus Money Market Fund
Government Money Market Fund	Municipal Money Market Fund
Variable Trust Funds1
VT Discovery Fund†	VT Intrinsic Value Fund	VT Small Cap Growth Fund
VT Index Asset Allocation Fund	VT Omega Growth Fund	VT Small Cap Value Fund
VT International Equity Fund	VT Opportunity Fund†	VT Total Return Bond 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 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 Dow Jones Target 2055 Fund^SM, Wells Fargo Advantage Heritage Money Market Fund^SM, Wells Fargo Advantage VT Discovery Fund^SM, and Wells Fargo Advantage VT Opportunity Fund^SM are referred to as the Discovery Fund, Endeavor Select Fund, Enterprise Fund, Opportunity 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, Target 2055 Fund, Heritage Money Market Fund, VT Discovery Fund, and VT Opportunity Fund, respectively.

Not part of the semi-annual report.

2 Wells Fargo Advantage Adjustable Rate Government Fund Letter to Shareholders

Karla M. Rabusch,

President

Wells Fargo Advantage Funds

The theme for the period was a shift from risk aversion in the first half to burgeoning trends of improving investor confidence in the second half, which significantly improved pricing in the lower-rated asset classes.

On the whole, investment-grade fixed-income securities performed positively during the period, but the strongest returns came from the high-yield market.

Dear Valued Shareholder:

We are pleased to offer you this semi-annual report for the Wells Fargo Advantage Adjustable Rate Government Fund, which covers the six-month period that ended February 29, 2012. During the period, fixed-income performance was best among the lower-rated securities, as improved investor confidence in the U.S. economy and the U.S. credit markets encouraged investors to return to riskier asset classes.

The period began with heightened risk aversion but ended with stronger investor confidence.

The six-month period began with the worsening of the Greek crisis, which amplified risk aversion across the global credit markets. This in turn led to a powerful rally in U.S. Treasuries and a sharp decline in high-yield bond prices, most notably in the lowest-quality credit tiers. During this time, most investment-grade fixed-income markets continued to generate positive returns—although certain areas of the riskiest segments of the markets declined—and U.S. Treasury yields reached the lowest levels in decades, even surpassing the low yield levels reached in the summer of 2010.

The last three months of the period were characterized by a strong reversal of the trends of the first three months. In October 2011, the high-yield market recovered significantly, benefiting from indications of improving policy with regard to managing the debt crisis from Europe and the formal announcement of a European debt deal late in the month. Due to renewed concerns about the European Union’s ability to manage the debt crisis, November 2011 saw a modest decline in investment-grade corporate bond prices and a sharp correction in high-yield corporate bonds, but another strong recovery in pricing started in December and carried into the first two months of 2012. Investor confidence strengthened as the U.S. economy demonstrated signs of sustainable growth and U.S. credit markets began to show some resistance to the credit problems of Europe. Thus, the theme for the period was a shift from risk aversion in the first half to burgeoning trends of improving investor confidence in the second half, which significantly improved pricing in the lower-rated asset classes.

On the whole, investment-grade fixed-income securities performed positively during the period, but the strongest returns came from the high-yield market. In fact, the best returns for the six-month period came from the lowest-rated credit tiers, despite the fact that they significantly underperformed in August and September 2011. Similar trends were true in the structured products sector, as lower-rated commercial mortgage-backed securities were among the best performers for the period, despite underperforming in the first two months.

The Federal Reserve launched Operation Twist in September.

With economic concerns and credit woes escalating in Europe and some continued uncertainty about the growth outlook in the U.S. during August and September 2011, the Federal Reserve (Fed) intervened yet again with monetary accommodations—this time with “Operation Twist,” which was announced and launched in September 2011. With Operation Twist, the Fed endeavored to flatten the yield curve and drive long-term rates down by selling short-term Treasuries and using the proceeds to purchase long-term Treasuries. The Fed stated that it is unlikely to raise rates before 2014, which should keep yields on Treasuries low.

Letter to Shareholders Wells Fargo Advantage Adjustable Rate Government Fund 3

Despite this announcement, problems in Europe caused Treasuries to continue to rally in the first 3 months of the period, while credit spreads on corporate and securitized sectors widened with increasing risk aversion. However, with an improved U.S. economic outlook and greater investor confidence, the last three months of the period saw a slight decline in U.S. Treasury prices and significant improvement in high-yield corporate bond prices. Credit spreads in the corporate and securitized sectors broadly tightened in December 2011 and January and February 2012.

Although U.S. economic conditions appear to have improved over the course of the period, the recovery continues to face some headwinds in the form of languishing housing values and elevated unemployment levels, which may continue to create some volatility in the fixed-income markets. 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. While heightened volatility may be uncomfortable to experience in the short term, we believe it can lead to unique opportunities to add relative value for investors with long-term investment horizons.

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

Periods of uncertainty can present challenges, but 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. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Advantage Funds offers more than 110 mutual funds and other investments spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance.

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 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.

4 Wells Fargo Advantage Adjustable Rate Government Fund Letter to Shareholders

Thank you for choosing to invest with Wells Fargo Advantage Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs. For current information about your fund investments, contact your investment professional, visit our Web site at wellsfargoadvantagefunds.com, or call us directly at 1-800-222-8222. We are available 24 hours a day, 7 days a week.

Sincerely,

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Notice to Shareholders

The Board of Trustees for Wells Fargo Advantage Funds has unanimously approved the following modifications to certain net asset value (NAV) waiver privileges and commission schedules:

n Effective May 1, 2012, automatic investment plan (AIP) purchases and proceeds received from systematic withdrawals will no longer qualify for NAV repurchase privileges.

n Effective May 1, 2012, discretionary rights to waive the upfront commission for Class C and “jumbo” Class A share purchases will no longer be granted to broker/dealers. However, we will continue to waive the Class C shares contingent deferred sales charge for redemptions by employer-sponsored retirement plans where the dealer of record waived its commission at the time of purchase.

n Effective July 31, 2012, NAV purchase privileges for former Evergreen Class IS and Class R shareholders are being modified to remove the ability to purchase Class A shares at NAV unless those shares are held directly with the Fund on or after July 31, 2012.

Please contact your investment professional or call us directly at 1-800-222-8222 if you have any questions on this Notice to Shareholders.

Performance Highlights (Unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 5

INVESTMENT OBJECTIVE

The Fund seeks current income consistent with capital preservation.

ADVISER

Wells Fargo Funds Management, LLC

SUB-ADVISER

Wells Capital Management Incorporated

PORTFOLIO MANAGERS

Michael J. Bray, CFA

Christopher Y. Kauffman, CFA

FUND INCEPTION

October 1, 1991

TEN LARGEST LONG-TERM HOLDINGS1 (AS OF FEBRUARY 29, 2012)
FNMA, 2.62%, 10/1/2033	2.54%
FHLMC Series T-67 Class 1A1C, 3.12%, 3/25/2036	1.98%
FNMA, 2.84%, 11/1/2035	1.85%
FNMA Series 2003-W18 Class 2A, 3.51%, 6/25/2043	1.75%
FHLMC Series T-67 Class 2A1C, 3.08%, 3/25/2036	1.72%
FHLMC, 2.50%, 9/1/2030	1.62%
FNMA, 2.41%, 12/1/2040	1.39%
FNMA, 2.59%, 1/1/2036	1.34%
FNMA Series 2006-W1 Class 3A, 2.33%, 10/25/2045	1.28%
FNMA Series 2002-66 Class A3, 3.20%, 4/25/2042	1.26%

PORTFOLIO ALLOCATION²
(AS OF FEBRUARY 29, 2012)

1. The ten largest long-term holdings are calculated based on the value of the securities divided by total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

2. Portfolio allocation is subject to change and is calculated based on the total long-term investments of the Fund.

6 Wells Fargo Advantage Adjustable Rate Government Fund Performance Highlights (Unaudited)

AVERAGE ANNUAL TOTAL RETURN³ (%) (AS OF FEBRUARY 29, 2012)

			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 (ESAAX)		06/30/2000		(1.28	)		(0.26	)		2.38		2.61		0.78		1.82		2.80		2.82		0.88%		0.74%
Class B (ESABX)**		06/30/2000		(1.10	)		(0.55	)		2.21		2.52		0.40		0.95		2.21		2.52		1.63%		1.49%
Class C (ESACX)		06/30/2000		(0.60	)		(0.05	)		2.03		2.07		0.40		0.95		2.03		2.07		1.63%		1.49%
Administrator Class (ESADX)		07/30/2010												0.84		1.97		2.94		2.98		0.82%		0.60%
Institutional Class (EKIZX)		10/01/1991												0.90		1.97		3.06		3.09		0.55%		0.49%
Barclays 6-Month Treasury Bill Index6														0.04		0.23		1.91		2.27

* 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 and assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s Web site – wellsfargoadvantagefunds.com

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.

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 charge 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.

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.

3. Historical performance shown for the Administrator Class shares prior to their 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.

4. Reflects the expense ratios as stated in the most recent prospectuses.

5. The Adviser has committed through July 11, 2013 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver, excluding certain expenses, at the amounts shown above. Without this cap, the Fund’s returns would have been lower.

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

Fund Expenses (Unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 7

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and contingent deferred sales charges (if any) on redemptions 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, 2011 to February 29, 2012.

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 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.

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) and contingent deferred sales charges. 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 Account Value 09-01-2011		Ending Account Value 02-29-2012		Expenses Paid During the Period1		Net Annual Expense Ratio
Class A
Actual	$	1,000.00	$	1,007.76	$	3.69		0.74	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.18	$	3.72		0.74	%
Class B
Actual	$	1,000.00	$	1,004.00	$	7.42		1.49	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.45	$	7.47		1.49	%
Class C
Actual	$	1,000.00	$	1,004.01	$	7.42		1.49	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.45	$	7.47		1.49	%
Administrator Class
Actual	$	1,000.00	$	1,008.45	$	3.00		0.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.88	$	3.02		0.60	%
Institutional Class
Actual	$	1,000.00	$	1,009.01	$	2.45		0.49	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.43	$	2.46		0.49	%

1. Expenses paid is equal to the annualized expense ratio of each class 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).

8 Wells Fargo Advantage Adjustable Rate Government Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Agency Securities: 96.92%
Federal Agricultural Mortgage Corporation Series 2000-A Class A ±		8.48	%		12/15/2039	$	1,668,356	$	1,667,539
FHLB ±		2.27			08/01/2033		4,336,782		4,564,821
FHLB ±		2.42			08/01/2035		403,500		410,016
FHLB ±		2.43			12/01/2034		8,500,908		8,951,117
FHLB ±		2.46			05/01/2034		4,503,752		4,763,546
FHLB ±		2.50			06/01/2035		6,308,671		6,715,154
FHLB ±		2.50			05/01/2033		498,045		508,928
FHLB ±		2.56			06/01/2026		2,552,666		2,740,267
FHLB ±		2.59			07/01/2034		2,028,658		2,153,551
FHLB ±		2.85			06/01/2032		272,500		275,353
FHLB ±		3.33			06/01/2029		2,493,709		2,651,095
FHLB ±		4.31			06/01/2035		3,262,104		3,438,856
FHLMC ±		2.19			01/01/2037		4,838,227		5,087,683
FHLMC ±		2.20			01/01/2023		79,277		81,964
FHLMC ±		2.24			03/01/2020		3,560		3,583
FHLMC ±		2.25			07/01/2030		34,882		36,215
FHLMC ±		2.25			01/01/2029		31,207		31,995
FHLMC ±		2.25			02/01/2035		3,065,679		3,217,208
FHLMC ±		2.27			05/01/2020		2,193		2,203
FHLMC ±		2.29			08/01/2034		3,139,435		3,289,695
FHLMC ±		2.29			05/01/2028		643,295		673,783
FHLMC ±		2.34			01/01/2030		61,343		64,875
FHLMC ±		2.34			10/01/2033		4,237,218		4,480,542
FHLMC ±		2.35			10/01/2033		72,918		76,639
FHLMC ±		2.35			02/01/2034		2,759,100		2,909,165
FHLMC ±		2.36			08/01/2036		7,938,392		8,359,971
FHLMC ±		2.38			12/01/2032		3,959,530		4,177,880
FHLMC ±		2.38			02/01/2036		3,814,196		4,023,106
FHLMC ±		2.38			07/01/2019		2,717		2,732
FHLMC ±		2.38			08/01/2036		8,932,717		9,470,841
FHLMC ±		2.40			11/01/2029		228,324		241,574
FHLMC ±		2.40			05/01/2025		129,991		137,861
FHLMC ±		2.41			02/01/2034		6,229,393		6,579,513
FHLMC ±		2.41			11/01/2036		2,397,220		2,537,922
FHLMC ±		2.41			04/01/2034		7,498,594		7,914,808
FHLMC ±		2.41			12/01/2032		6,745,872		7,127,269
FHLMC ±		2.42			02/01/2035		8,700,924		9,176,689
FHLMC ±		2.42			04/01/2035		2,217,597		2,347,372
FHLMC ±		2.43			11/01/2027		1,365,862		1,448,937
FHLMC ±		2.43			11/01/2029		543,339		575,361
FHLMC ±		2.43			09/01/2035		4,516,898		4,744,412
FHLMC ±		2.43			03/01/2037		8,450,311		8,920,747
FHLMC ±		2.43			03/01/2027		378,742		401,171
FHLMC ±		2.44			07/01/2024		64,215		66,599
FHLMC ±		2.44			09/01/2030		960,351		1,016,221
FHLMC ±		2.45			08/01/2027		13,102		13,214
FHLMC ±		2.45			08/01/2035		2,286,845		2,413,964
FHLMC ±		2.45			10/01/2035		8,377,171		8,816,634
FHLMC ±		2.47			09/01/2016		9,936		10,031
FHLMC ±		2.47			11/01/2016		168,962		174,389

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 9

Security Name	Interest Rate			Maturity Date		Principal		Value
Agency Securities (continued)
FHLMC ±		2.47	%		07/01/2018	$	6,099	$	6,201
FHLMC ±		2.47			01/01/2019		14,009		14,475
FHLMC ±		2.47			02/01/2019		19,136		19,777
FHLMC ±		2.47			02/01/2035		793,053		818,040
FHLMC ±		2.47			07/01/2031		516,677		548,147
FHLMC ±		2.48			05/01/2032		87,932		88,694
FHLMC ±		2.48			02/01/2038		5,475,059		5,822,093
FHLMC ±		2.49			10/01/2033		4,624,972		4,912,745
FHLMC ±		2.49			05/01/2020		1,330		1,337
FHLMC ±		2.49			09/01/2032		4,925,514		5,227,046
FHLMC ±		2.49			09/01/2035		8,129,322		8,596,040
FHLMC ±		2.49			10/01/2036		3,225,997		3,413,394
FHLMC ±		2.49			05/01/2036		3,054,561		3,200,584
FHLMC ±		2.50			01/01/2028		57,802		61,524
FHLMC ±		2.50			04/01/2035		1,174,553		1,239,561
FHLMC ±		2.50			12/01/2017		52,855		54,614
FHLMC ±		2.50			05/01/2018		1,425		1,470
FHLMC ±		2.50			06/01/2018		37,476		38,706
FHLMC ±		2.50			09/01/2018		3,477		3,587
FHLMC ±		2.50			05/01/2019		10,550		10,607
FHLMC ±		2.50			06/01/2033		4,619,258		4,910,412
FHLMC ±		2.50			09/01/2030		20,117,753		21,413,050
FHLMC ±		2.51			01/01/2028		9,613		10,225
FHLMC ±		2.52			10/01/2036		2,050,459		2,182,339
FHLMC ±		2.52			06/01/2035		4,196,035		4,461,636
FHLMC ±		2.53			01/01/2030		25,654		26,539
FHLMC ±		2.53			01/01/2030		12,715		13,175
FHLMC ±		2.53			07/01/2030		237,657		246,649
FHLMC ±		2.53			10/01/2030		4,639,753		4,939,889
FHLMC ±		2.53			10/01/2035		5,593,336		5,956,341
FHLMC ±		2.53			11/01/2035		1,256,194		1,337,097
FHLMC ±		2.53			01/01/2024		82,551		83,116
FHLMC ±		2.54			04/01/2034		10,523,677		11,073,644
FHLMC ±		2.54			03/01/2025		175,543		179,130
FHLMC ±		2.54			01/01/2035		1,330,056		1,408,864
FHLMC ±		2.54			10/01/2035		6,854,943		7,286,203
FHLMC ±		2.56			05/01/2023		108,378		109,524
FHLMC ±		2.56			11/01/2018		24,245		24,487
FHLMC ±		2.56			04/01/2035		5,956,681		6,314,148
FHLMC ±		2.58			04/01/2035		4,491,378		4,722,081
FHLMC ±		2.59			10/01/2030		39,608		41,007
FHLMC ±		2.60			08/01/2029		209,353		211,235
FHLMC ±		2.60			06/01/2030		163,465		173,553
FHLMC ±		2.60			10/01/2024		378,982		401,270
FHLMC ±		2.60			07/01/2027		1,258,895		1,336,853
FHLMC ±		2.61			06/01/2025		136,516		141,015
FHLMC ±		2.62			03/01/2037		5,495,486		5,865,169
FHLMC ±		2.62			06/01/2024		51,633		55,265
FHLMC ±		2.64			11/01/2026		513,990		521,029

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

10 Wells Fargo Advantage Adjustable Rate Government Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Agency Securities (continued)
FHLMC ±		2.65	%		02/01/2036	$	13,028,856	$	13,892,973
FHLMC ±		2.65			07/01/2029		123,019		130,088
FHLMC ±		2.66			06/01/2030		916,812		970,290
FHLMC ±		2.66			10/01/2029		161,620		171,111
FHLMC ±		2.67			04/01/2036		6,189,019		6,595,051
FHLMC ±		2.68			06/01/2028		583,864		613,144
FHLMC ±		2.68			10/01/2025		173,905		174,473
FHLMC ±		2.69			04/01/2020		64,163		68,065
FHLMC ±		2.72			08/01/2018		6,197		6,512
FHLMC ±		2.72			08/01/2030		10,558,474		11,163,684
FHLMC ±		2.73			10/01/2025		53,532		54,018
FHLMC ±		2.73			02/01/2030		105,967		112,315
FHLMC ±		2.73			06/01/2030		192,306		193,551
FHLMC ±		2.73			02/01/2037		1,601,827		1,704,384
FHLMC ±		2.74			06/01/2037		8,916,668		9,523,435
FHLMC ±		2.76			05/01/2028		540,548		548,263
FHLMC ±		2.76			06/01/2020		3,430		3,452
FHLMC ±		2.76			04/01/2035		2,390,287		2,551,197
FHLMC ±		2.78			02/01/2024		43,020		43,261
FHLMC ±		2.78			03/01/2018		35,236		35,739
FHLMC ±		2.78			08/01/2018		389		389
FHLMC ±		2.80			12/01/2017		21,048		21,129
FHLMC ±		2.81			11/01/2032		384,196		403,948
FHLMC ±		2.86			02/01/2036		10,295,916		10,983,264
FHLMC ±		2.87			06/01/2020		193,396		203,566
FHLMC ±		2.89			01/01/2022		41,842		42,199
FHLMC ±		2.93			07/01/2017		53,202		56,018
FHLMC ±		2.93			05/01/2032		333,218		347,470
FHLMC ±		2.97			11/01/2029		388,263		392,098
FHLMC ±		3.04			06/01/2019		290,451		292,567
FHLMC ±		3.04			06/01/2022		3,680		3,711
FHLMC ±		3.07			10/01/2018		120,763		127,639
FHLMC ±		3.12			02/01/2027		216,727		225,224
FHLMC ±		3.18			08/01/2029		370,620		372,933
FHLMC ±		3.22			12/01/2018		52,252		52,640
FHLMC ±		3.23			09/01/2030		202,843		203,121
FHLMC ±		3.24			06/01/2019		177,218		184,368
FHLMC ±		3.25			10/01/2019		43,390		43,528
FHLMC ±		3.25			02/01/2018		10,402		10,454
FHLMC ±		3.25			03/01/2025		6,562,623		6,894,724
FHLMC ±		3.28			12/01/2018		57,085		57,278
FHLMC ±		3.38			09/01/2016		130,645		131,460
FHLMC ±		3.43			01/01/2026		16,464		16,598
FHLMC ±		3.44			12/01/2025		933,978		956,305
FHLMC ±		3.50			09/01/2031		384,873		388,765
FHLMC ±		3.52			04/01/2019		38,979		39,132
FHLMC ±		3.57			07/01/2028		113,343		114,563
FHLMC ±		3.63			08/01/2019		28,178		28,332
FHLMC ±		3.76			07/01/2018		190,310		191,041
FHLMC ±		3.91			06/01/2021		270,754		284,604

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 11

Security Name	Interest Rate			Maturity Date			Principal		Value
Agency Securities (continued)
FHLMC ±		3.92	%		01/01/2017		$	2,434	$	2,450
FHLMC ±		4.19			04/01/2023			283,274		285,914
FHLMC ±		4.36			05/01/2031			278,116		282,258
FHLMC ±		4.41			08/01/2029	��		50,545		51,806
FHLMC ±		4.49			01/01/2019			1,804		1,813
FHLMC ±		4.59			04/01/2029			376,479		391,587
FHLMC ±		4.64			10/01/2029			150,692		151,821
FHLMC ±		4.69			04/01/2032			172,526		174,038
FHLMC ±		4.77			02/01/2021			58,411		58,914
FHLMC ±		4.93			02/01/2029			437,283		442,992
FHLMC ±		4.98			04/01/2037			2,557,954		2,708,834
FHLMC ±		5.46			06/01/2033			1,136,963		1,219,198
FHLMC ±		5.51			08/01/2024			975,635		1,043,447
FHLMC ±		5.74			08/01/2027			90,975		91,593
FHLMC		6.50			04/01/2018			259,222		289,652
FHLMC		7.00			11/01/2012			27,511		28,160
FHLMC		7.00			09/01/2035			278,370		316,535
FHLMC		7.50			01/01/2016			46,967		50,623
FHLMC		7.50			06/01/2016			17,037		18,031
FHLMC		8.50			05/01/2020			221,266		247,297
FHLMC		8.50			06/01/2022			1,451		1,453
FHLMC		8.50			09/01/2022			35,699		36,629
FHLMC Series 1671 Class QA ±		2.17			02/15/2024			590,190		619,385
FHLMC Series 1686 Class FE ±		2.32			02/15/2024			57,056		60,053
FHLMC Series 1730 Class FA ±		1.36			05/15/2024			580,571		591,460
FHLMC Series 20 Class F ±		1.22			07/01/2029			40,972		37,533
FHLMC Series 2315 Class FW ±		0.80			04/15/2027			333,450		334,624
FHLMC Series 2391 Class EF ±		0.75			06/15/2031			328,524		330,490
FHLMC Series 2454 Class SL ±(c)		7.75			03/15/2032			789,556		148,337
FHLMC Series 2461 Class FI ±		0.75			04/15/2028			472,946		476,502
FHLMC Series 2464 Class FE ±		1.25			03/15/2032			514,613		520,109
FHLMC Series 2466 Class FV ±		0.80			03/15/2032			734,057		738,715
FHLMC Series 2527 Class SX ±(c)		7.30			02/15/2032			100,125		545
FHLMC Series T-48 Class 2A ±		3.58			11/25/2032			4,326,872		4,468,876
FHLMC Series T-54 Class 4A ±		3.36			02/25/2043			3,040,477		3,034,776
FHLMC Series T-55 Class 1A1		6.50			03/25/2043			145,064		163,630
FHLMC Series T-66 Class 2A1 ±		2.95			01/25/2036			6,560,468		6,914,596
FHLMC Series T-67 Class 1A1C ±		3.12			03/25/2036			24,785,399		26,226,050
FHLMC Series T-67 Class 2A1C ±		3.08			03/25/2036			21,507,113		22,757,213
FNMA ±		1.30			12/01/2020			73,545		73,902
FNMA ±		1.41			06/01/2021			125,052		126,873
FNMA ±		1.45			09/01/2032			72,311		72,451
FNMA ±		1.50			01/01/2021			7,285		7,390
FNMA ±		1.50			01/01/2021			11,543		11,581
FNMA ±		1.60			12/01/2030			253,730		259,270
FNMA ±		1.75			03/01/2015			29,722		30,279
FNMA ±		1.75			12/01/2016			2,031		2,045
FNMA ±		1.75			08/01/2031			177,724		180,896
FNMA ±		1.79			08/01/2031			159,423		159,994
FNMA ±		1.80			07/01/2020			23,565		23,807

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

12 Wells Fargo Advantage Adjustable Rate Government Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Agency Securities (continued)
FNMA ±		1.84	%		09/01/2031	$	457,416	$	474,944
FNMA ±		1.85			05/01/2029		564,489		594,420
FNMA ±		1.87			01/01/2032		41,924		42,004
FNMA ±		1.89			12/01/2031		207,889		208,767
FNMA ±		1.90			08/01/2032		299,650		302,148
FNMA ±		1.91			08/01/2032		185,751		192,551
FNMA ±		1.92			04/01/2033		1,757,227		1,815,738
FNMA ±		1.92			12/01/2031		461,698		483,429
FNMA ±		1.96			10/01/2017		16,388		16,730
FNMA ±		2.00			08/01/2033		4,453		4,476
FNMA ±		2.00			12/01/2031		185,877		195,140
FNMA ±		2.01			07/01/2032		240,376		241,305
FNMA ±		2.04			07/01/2018		4,990		5,003
FNMA ±		2.05			12/01/2022		20,560		20,777
FNMA ±		2.05			08/01/2033		717,515		736,529
FNMA ±		2.05			10/01/2018		193,558		202,866
FNMA ±		2.08			08/01/2031		84,499		85,428
FNMA ±		2.10			10/01/2035		14,679,782		15,252,208
FNMA ±		2.11			01/01/2032		507,994		514,494
FNMA ±		2.13			02/01/2020		24,514		25,460
FNMA ±		2.13			01/01/2022		16,251		16,433
FNMA ±		2.13			01/01/2036		7,590,879		7,912,473
FNMA ±		2.14			12/01/2035		15,170,185		15,778,648
FNMA ±		2.14			06/01/2032		193,901		194,254
FNMA ±		2.15			05/01/2032		128,811		135,614
FNMA ±		2.16			06/01/2018		3,032		3,140
FNMA ±		2.18			11/01/2039		121,471		122,382
FNMA ±		2.19			01/01/2035		5,167,341		5,450,306
FNMA ±		2.20			06/01/2031		363,741		385,536
FNMA ±		2.20			07/01/2018		826,222		854,638
FNMA ±		2.20			07/01/2035		3,235,481		3,352,522
FNMA ±		2.20			04/01/2018		725,465		750,205
FNMA ±		2.21			11/01/2017		304,975		319,553
FNMA ±		2.24			02/01/2033		281,120		296,521
FNMA ±		2.24			10/01/2024		71,506		75,410
FNMA ±		2.24			12/01/2024		112,787		119,105
FNMA ±		2.25			10/01/2025		190,255		200,283
FNMA ±		2.25			01/01/2027		51,833		54,041
FNMA ±		2.25			04/01/2030		229,393		241,782
FNMA ±		2.26			04/01/2035		5,442,798		5,731,698
FNMA ±		2.26			07/01/2025		7,461		7,605
FNMA ±		2.28			12/01/2033		2,669,738		2,815,334
FNMA ±		2.28			12/01/2039		484,776		509,660
FNMA ±		2.28			07/01/2038		2,647,167		2,782,461
FNMA ±		2.29			07/01/2035		2,859,773		2,961,349
FNMA ±		2.30			12/01/2024		44,339		46,469
FNMA ±		2.31			12/01/2023		14,923		15,051
FNMA ±		2.31			08/01/2025		61,200		64,623
FNMA ±		2.31			03/01/2031		97,596		103,194
FNMA ±		2.32			06/01/2035		5,265,465		5,573,209

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 13

Security Name	Interest Rate			Maturity Date		Principal		Value
Agency Securities (continued)
FNMA ±		2.32	%		02/01/2035	$	13,248,253	$	13,899,353
FNMA ±		2.33			08/01/2035		1,059,287		1,094,123
FNMA ±		2.33			04/01/2034		7,567,932		7,989,860
FNMA ±		2.34			09/01/2032		155,201		156,327
FNMA ±		2.35			08/01/2031		150,725		152,293
FNMA ±		2.35			10/01/2034		1,084,184		1,160,417
FNMA ±		2.35			09/01/2033		69,499		73,138
FNMA ±		2.35			08/01/2036		5,570,644		5,800,908
FNMA ±		2.35			05/01/2037		9,548,649		10,137,981
FNMA ±		2.36			01/01/2027		1,249,113		1,320,970
FNMA ±		2.36			07/01/2048		8,664,897		9,147,882
FNMA ±		2.36			07/01/2038		1,945,257		2,049,906
FNMA ±		2.36			07/01/2035		5,191,890		5,537,596
FNMA ±		2.37			12/01/2025		28,538		28,633
FNMA ±		2.37			06/01/2026		139,492		147,728
FNMA ±		2.37			03/01/2028		174,257		174,479
FNMA ±		2.37			05/01/2035		5,615,243		5,913,697
FNMA ±		2.37			06/01/2027		4,440		4,669
FNMA ±		2.37			05/01/2033		2,021,816		2,101,108
FNMA ±		2.38			07/01/2017		2,395		2,415
FNMA ±		2.38			02/01/2019		3,024		3,032
FNMA ±		2.38			05/01/2033		9,490,753		10,004,695
FNMA ±		2.38			07/01/2038		5,963,272		6,316,157
FNMA ±		2.38			11/01/2027		73,032		77,116
FNMA ±		2.38			05/01/2033		1,177,262		1,247,709
FNMA ±		2.38			10/01/2035		6,903,738		7,273,868
FNMA ±		2.39			02/01/2035		9,353,560		9,908,948
FNMA ±		2.40			02/01/2036		12,601,993		13,394,522
FNMA ±		2.41			04/01/2033		1,154,243		1,227,019
FNMA ±		2.41			07/01/2035		3,233,323		3,442,109
FNMA ±		2.41			12/01/2040		17,465,102		18,419,866
FNMA ±		2.41			04/01/2034		1,212,937		1,277,967
FNMA ±		2.42			04/01/2028		52,633		52,951
FNMA ±		2.42			12/01/2030		95,210		96,448
FNMA ±		2.42			09/01/2034		3,603,469		3,830,001
FNMA ±		2.42			07/01/2035		6,392,448		6,778,587
FNMA ±		2.42			04/01/2033		1,929,833		2,033,262
FNMA ±		2.43			06/01/2032		397,303		407,221
FNMA ±		2.43			03/01/2035		3,028,092		3,206,789
FNMA ±		2.43			05/01/2018		298,045		299,343
FNMA ±		2.44			09/01/2026		246,940		249,806
FNMA ±		2.44			05/01/2025		129,990		138,080
FNMA ±		2.44			02/01/2033		554,729		588,323
FNMA ±		2.44			06/01/2027		136,659		145,048
FNMA ±		2.45			06/01/2032		60,218		62,210
FNMA ±		2.45			07/01/2048		12,395,411		13,122,833
FNMA ±		2.45			11/01/2034		13,397,529		14,202,890
FNMA ±		2.45			09/01/2028		132,350		133,421
FNMA ±		2.46			11/01/2024		297,473		315,688
FNMA ±		2.46			08/01/2035		2,312,632		2,392,620

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

14 Wells Fargo Advantage Adjustable Rate Government Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Agency Securities (continued)
FNMA ±		2.46	%		12/01/2040	$	9,542,977	$	10,112,728
FNMA ±		2.46			10/01/2024		561,727		600,416
FNMA ±		2.46			03/01/2035		9,749,041		10,285,070
FNMA ±		2.46			06/01/2035		3,559,144		3,741,249
FNMA ±		2.46			04/01/2042		5,506,562		5,749,908
FNMA ±		2.46			06/01/2032		179,104		182,382
FNMA ±		2.46			04/01/2024		97,781		103,986
FNMA ±		2.46			01/01/2028		12,702		13,477
FNMA ±		2.47			04/01/2030		21,986		23,158
FNMA ±		2.47			07/01/2030		134,992		136,048
FNMA ±		2.47			02/01/2033		178,249		178,663
FNMA ±		2.47			04/01/2033		3,544,152		3,681,582
FNMA ±		2.47			10/01/2017		112,368		115,112
FNMA ±		2.47			01/01/2018		124,547		128,008
FNMA ±		2.47			11/01/2023		52,788		53,810
FNMA ±		2.47			04/01/2036		10,301,645		10,920,441
FNMA ±		2.47			05/01/2036		5,406,138		5,752,780
FNMA ±		2.47			09/01/2030		371,499		394,277
FNMA ±		2.47			02/01/2032		3,488,965		3,627,342
FNMA ±		2.47			12/01/2028		100,534		106,776
FNMA ±		2.47			05/01/2034		2,395,498		2,525,984
FNMA ±		2.47			06/01/2034		7,656,507		8,068,029
FNMA ±		2.48			09/01/2030		22,607		22,909
FNMA ±		2.48			06/01/2038		8,744,154		9,307,157
FNMA ±		2.49			07/01/2028		386		409
FNMA ±		2.49			11/01/2035		5,887,839		6,230,799
FNMA ±		2.49			05/01/2018		12,039		12,072
FNMA ±		2.50			05/01/2032		325,189		328,540
FNMA ±		2.50			04/01/2024		42,100		44,113
FNMA ±		2.50			11/01/2034		4,899,142		5,214,626
FNMA ±		2.50			01/01/2035		1,967,828		2,011,422
FNMA ±		2.50			05/01/2017		104,899		107,068
FNMA ±		2.50			07/01/2017		5,771		5,847
FNMA ±		2.50			01/01/2018		1,294,679		1,338,134
FNMA ±		2.50			03/01/2021		1,568		1,593
FNMA ±		2.50			06/01/2025		11,383		11,411
FNMA ±		2.50			07/01/2027		549,690		586,617
FNMA ±		2.50			03/01/2030		58,475		60,408
FNMA ±		2.51			04/01/2019		11,240		11,270
FNMA ±		2.51			07/01/2035		2,585,404		2,747,083
FNMA ±		2.51			11/01/2024		18,926		19,396
FNMA ±		2.51			06/01/2036		7,398,880		7,869,138
FNMA ±		2.52			07/01/2027		211,555		225,548
FNMA ±		2.53			04/01/2021		130,417		132,481
FNMA ±		2.53			07/01/2024		19,606		20,512
FNMA ±		2.53			02/01/2035		3,144,747		3,318,109
FNMA ±		2.53			08/01/2039		11,902,078		12,684,704
FNMA ±		2.54			12/01/2021		192,325		194,524
FNMA ±		2.54			01/01/2035		4,047,658		4,310,010
FNMA ±		2.54			09/01/2036		2,215,575		2,363,620

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 15

Security Name	Interest Rate			Maturity Date		Principal		Value
Agency Securities (continued)
FNMA ±		2.54	%		06/01/2035	$	3,802,111	$	4,009,889
FNMA ±		2.54			08/01/2017		874,635		891,467
FNMA ±		2.55			08/01/2035		5,883,864		6,274,023
FNMA ±		2.55			09/01/2033		12,849,807		13,719,048
FNMA ±		2.55			12/01/2033		4,331,206		4,601,952
FNMA ±		2.55			12/01/2033		3,997,748		4,211,685
FNMA ±		2.56			04/01/2018		1,183,689		1,207,455
FNMA ±		2.56			09/01/2032		11,374,055		12,043,641
FNMA ±		2.56			07/01/2017		245,553		250,751
FNMA ±		2.56			05/01/2035		4,223,222		4,456,497
FNMA ±		2.56			09/01/2037		10,656,208		11,438,021
FNMA ±		2.57			03/01/2033		4,295,659		4,549,554
FNMA ±		2.57			01/01/2038		1,430,314		1,470,370
FNMA ±		2.57			12/01/2030		1,414,822		1,499,992
FNMA ±		2.57			04/01/2028		628,288		667,974
FNMA ±		2.58			09/01/2022		980,648		1,044,336
FNMA ±		2.58			03/01/2033		9,028		9,104
FNMA ±		2.58			03/01/2035		6,443,353		6,864,419
FNMA ±		2.58			02/01/2036		9,668,220		10,325,727
FNMA ±		2.58			03/01/2027		227,865		228,597
FNMA ±		2.58			07/01/2033		2,470,068		2,641,650
FNMA ±		2.58			05/01/2036		9,004,193		9,504,566
FNMA ±		2.59			01/01/2036		16,617,827		17,748,786
FNMA ±		2.60			12/01/2017		119,190		120,762
FNMA ±		2.60			04/01/2035		4,414,439		4,706,984
FNMA ±		2.60			06/01/2027		112,388		119,723
FNMA ±		2.61			05/01/2027		131,003		139,009
FNMA ±		2.61			01/01/2032		246,007		261,288
FNMA ±		2.61			06/01/2030		260,089		276,540
FNMA ±		2.62			04/01/2035		4,382,364		4,678,130
FNMA ±		2.62			08/01/2040		1,837,466		1,947,305
FNMA ±		2.62			06/01/2032		286,819		304,755
FNMA ±		2.62			10/01/2033		31,445,720		33,565,809
FNMA ±		2.63			08/01/2017		1,906		1,931
FNMA ±		2.64			07/01/2020		354,788		374,196
FNMA ±		2.64			11/01/2024		109,252		110,143
FNMA ±		2.65			10/01/2024		63,034		63,394
FNMA ±		2.65			04/01/2036		487,106		506,812
FNMA ±		2.65			06/01/2033		667,443		709,040
FNMA ±		2.65			06/01/2024		71,455		75,029
FNMA ±		2.65			11/01/2020		1,575,566		1,631,471
FNMA ±		2.68			04/01/2032		100,852		106,597
FNMA ±		2.69			05/01/2036		7,543,074		8,000,711
FNMA ±		2.70			10/01/2018		1,086,800		1,118,303
FNMA ±		2.70			10/01/2029		743,161		789,440
FNMA ±		2.70			01/01/2033		4,861,785		5,186,400
FNMA ±		2.72			04/01/2018		10,345		10,492
FNMA ±		2.72			03/01/2018		2,279		2,288
FNMA ±		2.72			03/01/2032		156,409		166,489
FNMA ±		2.72			10/01/2025		22,821		24,256

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

16 Wells Fargo Advantage Adjustable Rate Government Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Agency Securities (continued)
FNMA ±		2.72	%		02/01/2028	$	55,342	$	58,627
FNMA ±		2.73			09/01/2033		80,161		80,509
FNMA ±		2.74			09/01/2035		1,628,567		1,748,683
FNMA ±		2.74			09/01/2017		691,098		713,443
FNMA ±		2.74			10/01/2018		267,416		273,461
FNMA ±		2.75			05/01/2018		781,075		807,734
FNMA ±		2.75			01/01/2019		222,001		228,672
FNMA ±		2.76			04/01/2033		810,630		859,750
FNMA ±		2.76			06/01/2040		1,511,114		1,569,538
FNMA ±		2.78			01/01/2036		752,597		764,455
FNMA ±		2.78			04/01/2040		466,517		492,006
FNMA ±		2.78			08/01/2035		6,748,515		7,218,013
FNMA ±		2.79			07/01/2020		3,260,265		3,326,433
FNMA ±		2.79			08/01/2026		150,095		150,598
FNMA ±		2.80			01/01/2025		83,221		84,067
FNMA ±		2.80			09/01/2019		14,722		14,798
FNMA ±		2.82			06/01/2023		993		1,001
FNMA ±		2.83			11/01/2034		3,762,732		4,007,078
FNMA ±		2.84			11/01/2035		22,919,830		24,471,413
FNMA ±		2.85			04/01/2026		10,531		10,621
FNMA ±		2.85			10/01/2028		328,739		349,091
FNMA ±		2.87			08/01/2026		1,491,093		1,574,144
FNMA ±		2.88			06/01/2019		1,515		1,537
FNMA ±		2.88			02/01/2035		3,162,105		3,324,149
FNMA ±		2.89			02/01/2018		19,077		19,356
FNMA ±		2.89			07/01/2039		4,028,032		4,320,130
FNMA ±		2.89			03/01/2033		1,259,194		1,319,174
FNMA ±		2.90			07/01/2028		473,366		502,359
FNMA ±		2.90			10/01/2029		293,086		295,204
FNMA ±		2.93			04/01/2030		61,195		63,988
FNMA ±		2.94			09/01/2018		11,856		12,490
FNMA ±		2.94			05/01/2019		3,377		3,414
FNMA ±		2.96			11/01/2018		9,307		9,395
FNMA ±		2.96			11/01/2017		142,284		144,204
FNMA ±		2.97			06/01/2017		48,805		49,464
FNMA ±		2.98			11/01/2027		3,991		4,064
FNMA ±		2.99			11/01/2031		101,553		101,737
FNMA ±		3.00			06/01/2016		195,448		201,591
FNMA ±		3.00			07/01/2016		35,963		37,210
FNMA ±		3.00			05/01/2017		80,335		81,423
FNMA ±		3.00			07/01/2017		10,807		10,953
FNMA ±		3.00			08/01/2018		155,148		161,010
FNMA ±		3.00			12/01/2028		291,392		302,492
FNMA ±		3.00			01/01/2029		38,890		40,361
FNMA ±		3.00			01/01/2036		226,752		230,363
FNMA ±		3.01			01/01/2033		185,157		186,191
FNMA ±		3.02			01/01/2031		93,493		93,874
FNMA ±		3.03			11/01/2022		109,132		113,877
FNMA ±		3.04			09/01/2032		206,755		211,010
FNMA ±		3.05			09/01/2032		2,354,952		2,520,585

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 17

Security Name	Interest Rate			Maturity Date		Principal		Value
Agency Securities (continued)
FNMA ±		3.07	%		04/01/2040	$	4,078,708	$	4,376,475
FNMA ±		3.07			08/01/2030		278,652		289,973
FNMA ±		3.09			03/01/2030		193,711		205,508
FNMA ±		3.11			09/01/2033		46,070		46,232
FNMA ±		3.13			05/01/2028		146,198		149,056
FNMA ±		3.13			09/01/2030		1,192,598		1,257,226
FNMA ±		3.16			09/01/2033		202,146		202,750
FNMA ±		3.16			01/01/2019		7,425		7,456
FNMA ±		3.17			01/01/2033		77,492		77,547
FNMA ±		3.20			04/01/2024		575,517		609,063
FNMA ±		3.21			10/01/2017		12,431		12,626
FNMA ±		3.22			07/01/2017		186,771		188,023
FNMA ±		3.25			09/01/2017		4,503		4,544
FNMA ±		3.26			10/01/2024		29,669		31,405
FNMA ±		3.26			05/01/2028		424,601		432,950
FNMA ±		3.30			09/01/2019		95,903		97,562
FNMA ±		3.33			01/01/2029		59,959		62,532
FNMA ±		3.34			09/01/2021		205,727		207,052
FNMA ±		3.37			07/01/2019		5,028		5,193
FNMA ±		3.38			09/01/2016		49		49
FNMA ±		3.38			06/01/2018		54,902		55,833
FNMA ±		3.39			11/01/2028		447,756		475,015
FNMA ±		3.40			11/01/2024		198,079		198,407
FNMA ±		3.40			07/01/2033		32,731		32,819
FNMA ±		3.40			02/01/2029		214,731		227,604
FNMA ±		3.42			11/01/2029		13,300		14,068
FNMA ±		3.42			08/01/2029		1,509,750		1,601,523
FNMA ±		3.44			07/01/2028		170,402		173,779
FNMA ±		3.45			11/01/2031		50,375		50,595
FNMA ±		3.46			04/01/2020		2,902,511		3,044,971
FNMA ±		3.48			09/01/2033		102,938		103,114
FNMA ±		3.51			05/01/2017		156,716		165,986
FNMA ±		3.58			10/01/2017		619,942		629,890
FNMA ±		3.66			02/01/2029		3,552,432		3,783,518
FNMA ±		3.67			01/01/2021		1,141,627		1,174,536
FNMA ±		3.73			10/01/2034		961,706		972,123
FNMA ±		3.73			01/01/2017		2,721		2,742
FNMA ±		3.82			03/01/2030		27,014		28,171
FNMA ±		3.82			04/01/2034		2,560,955		2,732,074
FNMA ±		3.86			12/01/2050		238,042		240,401
FNMA ±		3.94			12/01/2032		241,517		254,986
FNMA ±		3.97			07/01/2021		390,648		393,030
FNMA ±		3.98			10/01/2025		17,179		18,151
FNMA ±		4.00			03/01/2023		10,275		10,355
FNMA ±		4.01			04/01/2032		279,064		280,977
FNMA ±		4.04			05/01/2018		1,752		1,788
FNMA ±		4.07			07/01/2017		81,780		86,849
FNMA ±		4.15			06/01/2034		743,006		782,440
FNMA ±		4.17			02/01/2033		108,192		108,998
FNMA ±		4.20			11/01/2031		182,620		182,894

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

18 Wells Fargo Advantage Adjustable Rate Government Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Agency Securities (continued)
FNMA ±		4.23	%		09/01/2017	$	9,089	$	9,103
FNMA ±		4.26			08/01/2017		49,898		51,623
FNMA ±		4.30			01/01/2018		1,642		1,646
FNMA ±		4.32			04/01/2018		45		46
FNMA ±		4.32			09/01/2028		17,651		18,334
FNMA ±		4.34			09/01/2031		432,283		437,777
FNMA ±		4.46			05/01/2017		2,890		2,907
FNMA ±		4.46			05/01/2034		1,168,110		1,225,336
FNMA ±		4.49			04/01/2020		24,224		24,416
FNMA ±		4.52			12/01/2036		267,297		281,315
FNMA ±		4.65			03/01/2014		530		531
FNMA ±		4.73			02/01/2019		648,338		688,789
FNMA ±		4.75			04/01/2019		1,774		1,800
FNMA ±		4.85			06/01/2025		42,647		42,935
FNMA ±		4.86			06/01/2024		89,409		89,952
FNMA ±		4.86			01/01/2019		1,003,952		1,065,710
FNMA ±		5.06			10/01/2018		107		113
FNMA ±		5.08			04/01/2018		558,447		596,003
FNMA ±		5.08			01/01/2023		46,211		49,493
FNMA ±		5.09			08/01/2031		78,040		83,033
FNMA ±		5.16			06/01/2028		74,442		77,240
FNMA ±		5.20			09/01/2023		10,521		10,614
FNMA ±		5.34			11/01/2014		4,359		4,397
FNMA ±		5.55			01/01/2019		203,917		219,248
FNMA ±		5.57			06/01/2019		8,416		8,487
FNMA ±		5.59			06/01/2033		424,314		428,940
FNMA ±		5.66			06/01/2028		136,783		147,587
FNMA ±		5.85			03/01/2014		18,801		19,901
FNMA ±		5.96			05/01/2025		1,427		1,438
FNMA ±		5.99			09/01/2017		1,165		1,195
FNMA ±		6.00			02/01/2017		6,497		6,532
FNMA ±		6.00			01/01/2020		27,299		28,161
FNMA ±		6.00			11/01/2021		14,689		14,717
FNMA ±		6.06			11/01/2019		531		537
FNMA ±		6.25			10/01/2021		23,068		23,162
FNMA ±		6.45			02/01/2034		94,045		94,756
FNMA		6.50			08/01/2028		454,849		517,120
FNMA		6.50			05/01/2031		273,988		313,823
FNMA ±		6.72			03/01/2023		7,441		7,450
FNMA		7.00			11/01/2014		9,794		10,347
FNMA		7.00			11/01/2017		39,138		42,863
FNMA		7.06			11/01/2024		61,171		69,996
FNMA		7.06			12/01/2024		39,612		45,327
FNMA		7.06			01/01/2025		38,527		44,085
FNMA		7.06			03/01/2025		75,704		86,625
FNMA		7.06			03/01/2025		15,115		17,296
FNMA		7.06			04/01/2025		26,712		30,616
FNMA		7.06			01/01/2027		68,893		79,319
FNMA		7.50			02/01/2016		353,212		380,485
FNMA		7.50			01/01/2031		273,905		327,122

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 19

Security Name	Interest Rate			Maturity Date		Principal		Value
Agency Securities (continued)
FNMA		7.50	%		01/01/2033	$	493,309	$	586,408
FNMA		7.50			05/01/2033		387,013		462,911
FNMA		7.50			05/01/2033		314,126		372,932
FNMA		7.50			06/01/2033		307,374		367,256
FNMA		7.50			07/01/2033		350,932		422,451
FNMA		7.50			08/01/2033		278,374		335,020
FNMA ±		7.63			03/01/2024		422		423
FNMA ±		7.75			02/01/2024		1,101		1,102
FNMA ±		7.75			01/01/2026		645		647
FNMA		8.00			12/01/2026		216,204		260,689
FNMA		8.00			02/01/2030		862		994
FNMA		8.00			03/01/2030		1,034		1,233
FNMA		8.00			02/01/2031		14,376		14,830
FNMA		8.00			07/01/2031		54,452		56,185
FNMA		8.00			05/01/2033		359,030		434,548
FNMA ±		8.38			12/01/2024		2,006		2,009
FNMA		8.50			10/01/2026		23,196		27,778
FNMA		8.50			02/01/2027		89,299		99,621
FNMA		8.50			06/01/2030		145,285		168,540
FNMA		8.54			08/01/2024		127,586		150,486
FNMA		9.00			05/01/2021		2,153		2,185
FNMA		9.00			07/01/2030		54,286		56,876
FNMA ±		9.10			10/01/2024		1,942		1,944
FNMA		9.50			08/01/2021		81,384		93,500
FNMA		9.50			12/01/2024		47,551		53,780
FNMA		10.00			01/01/2021		41,732		48,704
FNMA		10.50			04/01/2019		9,114		9,156
FNMA		11.00			01/01/2018		13,699		15,985
FNMA		12.50			07/01/2015		6,821		7,589
FNMA Series 1989-74 Class J		9.80			10/25/2019		54,098		63,353
FNMA Series 1989-96 Class H		9.00			12/25/2019		21,569		24,679
FNMA Series 1992-39 Class FA ±		1.38			03/25/2022		393,010		403,622
FNMA Series 1992-45 Class F ±		1.38			04/25/2022		75,308		77,281
FNMA Series 1992-87 Class Z		8.00			05/25/2022		57,290		66,497
FNMA Series 1993-113 Class FA ±		1.32			07/25/2023		325,029		331,529
FNMA Series 1994-14 Class F ±		2.82			10/25/2023		694,070		720,418
FNMA Series 1998-M5 Class D ±		6.35			06/25/2020		234,190		239,552
FNMA Series 1998-T2 Class A5 ±		2.59			01/25/2032		1,771,476		1,815,000
FNMA Series 2001-50 Class BA		7.00			10/25/2041		445,380		514,181
FNMA Series 2001-63 Class FD ±		0.85			12/18/2031		449,627		453,373
FNMA Series 2001-81 Class F ±		0.79			01/25/2032		310,213		312,983
FNMA Series 2001-T08 Class A1		7.50			07/25/2041		296,790		327,799
FNMA Series 2001-T10 Class A2		7.50			12/25/2041		7,004,117		8,111,373
FNMA Series 2001-T12 Class A2		7.50			08/25/2041		537,216		625,713
FNMA Series 2001-T12 Class A4 ±		3.44			08/25/2041		10,885,614		11,581,273
FNMA Series 2001-W03 Class A ±		7.00			09/25/2041		1,501,829		1,726,814
FNMA Series 2002-05 Class FD ±		1.14			02/25/2032		723,510		735,004
FNMA Series 2002-66 Class A3 ±		3.20			04/25/2042		15,660,270		16,712,445
FNMA Series 2002-D12 Class A5 ±		3.59			10/25/2041		3,072,920		3,115,748
FNMA Series 2002-T12 Class A3		7.50			05/25/2042		1,906,940		2,255,319

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

20 Wells Fargo Advantage Adjustable Rate Government Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Agency Securities (continued)
FNMA Series 2002-T19 Class A4 ±		3.43	%		03/25/2042	$	230,130	$	241,206
FNMA Series 2002-W1 Class 3A ±		3.29			04/25/2042		2,520,595		2,602,676
FNMA Series 2002-W4 Class A6 ±		3.41			05/25/2042		4,026,001		4,283,288
FNMA Series 2003-07 Class A2 ±		2.61			05/25/2042		1,877,817		1,994,887
FNMA Series 2003-63 Class A8 ±		2.74			01/25/2043		2,738,992		2,926,441
FNMA Series 2003-W02 Class 1A3		7.50			07/25/2042		646,320		744,747
FNMA Series 2003-W04 Class 5A ±		3.42			10/25/2042		2,490,613		2,657,173
FNMA Series 2003-W08 Class 4A ±		3.31			11/25/2042		2,953,646		3,130,753
FNMA Series 2003-W10 Class 2A ±		3.36			06/25/2043		5,767,531		6,102,769
FNMA Series 2003-W18 Class 2A ±		3.51			06/25/2043		21,706,527		23,093,709
FNMA Series 2004-T3 Class 1A3		7.00			02/25/2044		1,150,434		1,329,681
FNMA Series 2004-T3 Class 2A ±		3.41			08/25/2043		2,846,098		2,926,150
FNMA Series 2004-W1 Class 2A2		7.00			12/25/2033		540,050		628,987
FNMA Series 2004-W1 Class 3A ±		3.56			01/25/2043		179,517		189,951
FNMA Series 2004-W12 Class 2A ±		3.52			06/25/2044		10,363,375		11,064,198
FNMA Series 2004-W15 Class 3A ±		3.00			06/25/2044		15,534,650		16,406,533
FNMA Series 2004-W2 Class 5A		7.50			03/25/2044		490,262		570,122
FNMA Series 2005-W3 Class 3A ±		3.02			04/25/2045		2,846,845		3,014,353
FNMA Series 2006-W1 Class 3A ±		2.33			10/25/2045		16,052,559		16,985,614
FNMA Series G92-20 Class FB ±		1.38			04/25/2022		333,114		339,570
FNMA Series G93-1 Class K		6.68			01/25/2023		1,207,486		1,360,810
FNMA Series G93-19 Class FD ±		1.32			04/25/2023		1,126,308		1,149,444
GNMA ±		1.63			09/20/2017		37,326		38,614
GNMA ±		1.63			09/20/2017		5,025		5,191
GNMA ±		1.63			08/20/2021		34,332		35,461
GNMA ±		1.63			08/20/2021		72,641		75,029
GNMA ±		1.63			12/20/2021		15,078		15,599
GNMA ±		1.63			07/20/2022		17,197		17,762
GNMA ±		1.63			09/20/2022		14,930		15,421
GNMA ±		1.63			09/20/2022		143,517		148,234
GNMA ±		1.63			09/20/2022		71,528		73,879
GNMA ±		1.63			10/20/2022		56,804		58,766
GNMA ±		1.63			10/20/2022		186,837		193,289
GNMA ±		1.63			11/20/2022		113,597		117,520
GNMA ±		1.63			11/20/2022		152,921		158,202
GNMA ±		1.63			12/20/2022		42,875		44,356
GNMA ±		1.63			12/20/2022		552,790		571,879
GNMA ±		1.63			12/20/2022		10,717		11,087
GNMA ±		1.63			07/20/2023		7,580		7,829
GNMA ±		1.63			09/20/2023		624,656		645,186
GNMA ±		1.63			09/20/2023		125,868		130,005
GNMA ±		1.63			09/20/2023		500,042		516,477
GNMA ±		1.63			10/20/2023		1,273,634		1,317,616
GNMA ±		1.63			11/20/2023		937,588		969,965
GNMA ±		1.63			11/20/2023		948,866		981,633
GNMA ±		1.63			12/20/2023		41,446		42,877
GNMA ±		1.63			12/20/2023		158,628		164,106
GNMA ±		1.63			12/20/2023		1,319,760		1,365,335
GNMA ±		1.63			07/20/2024		119,285		123,205
GNMA ±		1.63			07/20/2024		867,013		895,508

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 21

Security Name	Interest Rate			Maturity Date		Principal		Value
Agency Securities (continued)
GNMA ±		1.63	%		08/20/2024	$	59,884	$	61,852
GNMA ±		1.63			11/20/2024		141,645		146,536
GNMA ±		1.63			09/20/2025		244,015		252,035
GNMA ±		1.63			10/20/2025		827,947		856,538
GNMA ±		1.63			10/20/2025		172,205		178,152
GNMA ±		1.63			10/20/2026		148,992		154,137
GNMA ±		1.63			01/20/2027		11,451		11,846
GNMA ±		1.63			08/20/2027		26,663		27,539
GNMA ±		1.63			09/20/2027		5,364		5,540
GNMA ±		1.63			10/20/2027		9,944		10,288
GNMA ±		1.63			12/20/2029		295,864		306,081
GNMA ±		1.63			10/20/2030		215,871		223,326
GNMA ±		1.63			11/20/2031		11,999		12,414
GNMA ±		1.63			12/20/2031		1,595		1,650
GNMA ±		1.63			11/20/2032		765,672		792,113
GNMA ±		1.63			12/20/2032		103,060		106,619
GNMA ±		2.00			09/20/2017		6,153		6,359
GNMA ±		2.00			07/20/2018		704		727
GNMA ±		2.00			08/20/2018		10,496		10,848
GNMA ±		2.00			08/20/2021		17,278		17,858
GNMA ±		2.00			10/20/2021		360,726		373,574
GNMA ±		2.00			11/20/2021		41,646		43,130
GNMA ±		2.00			07/20/2022		9,734		10,061
GNMA ±		2.00			12/20/2022		88,036		91,172
GNMA ±		2.00			10/20/2024		1,580,240		1,636,522
GNMA ±		2.00			11/20/2024		753,924		780,776
GNMA ±		2.00			07/20/2025		9,811		10,141
GNMA ±		2.00			09/20/2026		151,485		156,571
GNMA ±		2.00			11/20/2026		13,801		14,293
GNMA ±		2.00			07/20/2027		3,585		3,705
GNMA ±		2.00			08/20/2027		5,260		5,436
GNMA ±		2.00			11/20/2027		7,897		8,178
GNMA ±		2.00			01/20/2030		170,029		175,546
GNMA ±		2.13			07/20/2022		6,735		6,971
GNMA ±		2.13			07/20/2022		7,942		8,220
GNMA ±		2.38			01/20/2017		17,457		18,070
GNMA ±		2.38			02/20/2017		21,820		22,585
GNMA ±		2.38			02/20/2017		92,738		95,991
GNMA ±		2.38			03/20/2017		30,118		31,174
GNMA ±		2.38			03/20/2017		16,336		16,909
GNMA ±		2.38			05/20/2017		72,947		75,511
GNMA ±		2.38			05/20/2017		28,606		29,611
GNMA ±		2.38			06/20/2017		7,195		7,447
GNMA ±		2.38			01/20/2021		28,573		29,575
GNMA ±		2.38			02/20/2021		70,312		72,111
GNMA ±		2.38			06/20/2021		98,398		101,858
GNMA ±		2.38			01/20/2022		186,516		193,058
GNMA ±		2.38			02/20/2022		59,117		61,190
GNMA ±		2.38			02/20/2022		155,163		160,606
GNMA ±		2.38			02/20/2022		8,837		9,147

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

22 Wells Fargo Advantage Adjustable Rate Government Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Agency Securities (continued)
GNMA ±		2.38	%		02/20/2022	$	6,209	$	6,427
GNMA ±		2.38			03/20/2022		168,270		174,172
GNMA ±		2.38			03/20/2022		319,564		330,773
GNMA ±		2.38			03/20/2022		53,606		55,486
GNMA ±		2.38			04/20/2022		486,353		503,452
GNMA ±		2.38			04/20/2022		482,688		499,658
GNMA ±		2.38			05/20/2022		453,977		469,938
GNMA ±		2.38			05/20/2022		126,013		130,444
GNMA ±		2.38			05/20/2022		28,558		29,562
GNMA ±		2.38			05/20/2022		67,141		69,501
GNMA ±		2.38			06/20/2022		1,484		1,537
GNMA ±		2.38			06/20/2022		36,734		38,026
GNMA ±		2.38			01/20/2023		1,312,256		1,358,283
GNMA ±		2.38			01/20/2023		93,163		96,431
GNMA ±		2.38			02/20/2023		115,330		119,375
GNMA ±		2.38			02/20/2023		67,761		70,138
GNMA ±		2.38			02/20/2023		118,691		122,854
GNMA ±		2.38			02/20/2023		14,633		15,146
GNMA ±		2.38			03/20/2023		131,447		136,057
GNMA ±		2.38			04/20/2023		20,948		21,685
GNMA ±		2.38			04/20/2023		47,566		49,239
GNMA ±		2.38			05/20/2023		16,286		16,859
GNMA ±		2.38			05/20/2023		44,588		46,155
GNMA ±		2.38			06/20/2023		450,709		466,555
GNMA ±		2.38			06/20/2023		205,139		212,352
GNMA ±		2.38			04/20/2024		63,759		66,001
GNMA ±		2.38			04/20/2024		347,877		360,107
GNMA ±		2.38			05/20/2024		300,720		311,292
GNMA ±		2.38			05/20/2024		27,143		28,097
GNMA ±		2.38			06/20/2024		32,014		33,139
GNMA ±		2.38			06/20/2024		46,015		47,633
GNMA ±		2.38			06/20/2024		173,969		180,085
GNMA ±		2.38			04/20/2025		204,606		211,799
GNMA ±		2.38			01/20/2026		885,691		916,756
GNMA ±		2.38			02/20/2026		709,108		733,979
GNMA ±		2.38			01/20/2027		366,859		379,727
GNMA ±		2.38			02/20/2027		9,358		9,687
GNMA ±		2.38			05/20/2027		34,716		35,937
GNMA ±		2.38			01/20/2028		10,341		10,703
GNMA ±		2.50			07/20/2016		18,181		18,866
GNMA ±		2.50			08/20/2017		28,691		29,772
GNMA ±		2.50			10/20/2017		12,479		12,980
GNMA ±		2.50			11/20/2017		33,202		34,535
GNMA ±		2.50			12/20/2017		26,724		27,797
GNMA ±		2.50			07/20/2018		66,861		69,379
GNMA ±		2.50			08/20/2018		40,121		41,632
GNMA ±		2.50			03/20/2019		3,986		4,135
GNMA ±		2.50			11/20/2020		22,836		23,753
GNMA ±		2.50			12/20/2020		17,216		17,907
GNMA ±		2.50			05/20/2021		16,248		16,836

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 23

Security Name	Interest Rate			Maturity Date		Principal		Value
Agency Securities (continued)
GNMA ±		2.50	%		12/20/2021	$	42,894	$	44,616
GNMA ±		2.50			07/20/2022		12,911		13,397
GNMA ±		2.50			07/20/2024		486,589		504,913
GNMA ±		2.50			08/20/2024		78,287		81,235
GNMA ±		2.50			10/20/2024		717,215		746,017
GNMA ±		2.50			12/20/2024		504,404		524,660
GNMA ±		2.50			04/20/2025		7,679		7,957
GNMA ±		2.50			04/20/2032		111,780		115,826
GNMA ±		2.50			05/20/2032		270,548		280,341
GNMA ±		2.50			06/20/2032		657,608		681,413
GNMA ±		2.50			02/20/2033		4,793		4,972
GNMA ±		2.50			03/20/2033		55,962		58,058
GNMA ±		2.75			10/20/2017		70,772		73,853
GNMA ±		2.88			01/20/2022		6,178		6,455
GNMA ±		3.00			02/20/2016		16,465		17,202
GNMA ±		3.00			03/20/2016		34,812		36,371
GNMA ±		3.00			04/20/2016		26,320		27,463
GNMA ±		3.00			05/20/2016		2,465		2,572
GNMA ±		3.00			07/20/2017		18,214		19,003
GNMA ±		3.00			08/20/2017		159,892		166,813
GNMA ±		3.00			08/20/2017		13,317		13,886
GNMA ±		3.00			09/20/2017		177,029		184,692
GNMA ±		3.00			11/20/2017		31,760		33,214
GNMA ±		3.00			12/20/2017		197,802		206,858
GNMA ±		3.00			01/20/2018		56,220		58,738
GNMA ±		3.00			06/20/2018		11,270		11,759
GNMA ±		3.00			11/20/2018		5,562		5,817
GNMA ±		3.00			12/20/2018		1,911		1,999
GNMA ±		3.00			01/20/2019		4,352		4,547
GNMA ±		3.00			02/20/2019		10,184		10,640
GNMA ±		3.00			03/20/2019		18,680		19,516
GNMA ±		3.00			05/20/2019		23,880		24,917
GNMA ±		3.00			06/20/2019		55,622		58,039
GNMA ±		3.00			08/20/2019		22,835		23,823
GNMA ±		3.00			06/20/2020		12,809		13,366
GNMA ±		3.00			01/20/2021		358		374
GNMA ±		3.00			02/20/2021		493		515
GNMA ±		3.50			09/20/2017		26,603		27,821
GNMA ±		3.50			10/20/2017		445		465
GNMA ±		3.50			11/20/2017		74,143		77,475
GNMA ±		3.50			02/20/2018		56,460		59,130
GNMA ±		3.50			03/20/2018		7,712		8,077
GNMA ±		3.50			04/20/2018		8,571		8,965
GNMA ±		3.50			05/20/2018		3,241		3,390
GNMA ±		3.50			09/20/2018		8,000		8,366
GNMA ±		3.50			02/20/2019		45,043		47,173
GNMA ±		3.50			09/20/2019		67,172		70,247
GNMA ±		3.50			01/20/2020		15,918		16,670
GNMA ±		3.50			06/20/2020		23,027		24,085
GNMA ±		4.00			01/20/2016		261,951		275,733

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

24 Wells Fargo Advantage Adjustable Rate Government Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date			Principal		Value
Agency Securities (continued)
GNMA ±		4.00	%		03/20/2016		$	44,666	$	47,016
GNMA ±		4.00			04/20/2016			6,178		6,471
GNMA ±		4.00			05/20/2016			978		1,024
GNMA ±		4.00			11/20/2017			34,140		35,863
GNMA ±		4.00			04/20/2018			15,820		16,571
GNMA ±		4.00			11/20/2018			102,838		108,026
GNMA ±		4.00			01/20/2019			127,151		129,159
GNMA ±		4.00			05/20/2019			6,473		6,780
GNMA ±		4.50			12/20/2017			4,073		4,291
GNMA ±		4.50			06/20/2019			4,755		5,014
GNMA ±		5.00			08/20/2015			5,968		6,311
GNMA ±		5.00			09/20/2015			8,564		9,056
GNMA ±		5.00			10/20/2015			8,709		9,211
GNMA		6.45			04/20/2025			94,536		105,257
GNMA		6.45			05/20/2025			50,018		54,012
GNMA		6.45			09/20/2025			55,573		64,450
GNMA		6.50			06/20/2034			143,468		164,757
GNMA		6.50			06/20/2034			88,761		101,932
GNMA		6.50			08/20/2034			2,327,560		2,672,935
GNMA		6.50			08/20/2034			97,257		111,408
GNMA		6.50			08/20/2034			119,103		136,776
GNMA		6.50			08/20/2034			130,754		148,984
GNMA		6.75			02/15/2029			145,215		170,589
GNMA		7.00			07/20/2034			71,498		84,187
GNMA		7.00			07/20/2034			125,741		148,057
GNMA		7.25			07/15/2017			35,206		38,788
GNMA		7.25			08/15/2017			54,050		59,754
GNMA		7.25			08/15/2017			28,197		31,082
GNMA		7.25			08/15/2017			14,475		16,051
GNMA		7.25			09/15/2017			40,515		44,958
GNMA		7.25			10/15/2017			77,351		85,471
GNMA		7.25			10/15/2017	��		45,211		49,818
GNMA		7.25			11/15/2017			36,274		39,840
GNMA		7.25			01/15/2018			12,824		14,196
GNMA		7.25			01/15/2018			29,664		33,008
GNMA		7.25			02/15/2018			30,260		33,582
GNMA		7.25			05/15/2018			15,698		17,192
GNMA		9.00			05/15/2016			10,297		10,340
GNMA		9.00			07/15/2016			1,563		1,569
GNMA		9.00			08/15/2016			14,184		14,373
GNMA		9.00			11/15/2016			8,150		8,184
GNMA		9.00			11/15/2016			7,716		8,626
GNMA		9.00			11/15/2016			10,799		10,844
GNMA		9.00			12/15/2016			323		324
GNMA		9.00			02/15/2017			9,057		10,208
GNMA		9.00			02/15/2017			1,563		1,570
GNMA		9.00			05/15/2017			1,708		1,715
GNMA		9.00			07/15/2017			12,478		12,700
GNMA		9.00			03/15/2020			5,404		5,685
GNMA		9.00			08/15/2021			911		915

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 25

Security Name	Interest Rate			Maturity Date		Principal		Value
Agency Securities (continued)
GNMA		9.00	%		07/20/2024	$	1,164	$	1,205
GNMA		9.00			08/20/2024		773		940
GNMA		9.00			09/20/2024		2,888		3,537
GNMA		9.00			10/20/2024		23,838		28,809
GNMA		9.00			11/20/2024		706		784
GNMA		9.00			01/20/2025		10,707		13,160
GNMA		9.00			02/20/2025		37,522		45,704
GNMA Series 2003-1 Class SW ±(c)		0.60			06/16/2031		2,973,914		5,090
Total Agency Securities (Cost $1,257,511,563)									1,282,622,081
	Yield					Shares
Short-Term Investments: 4.70%
Investment Companies: 4.68%
Wells Fargo Advantage Government Money Market Fund, Institutional Class (l)(u)		0.01					61,848,812		61,848,812
						Principal
U.S. Treasury Securities: 0.02%
U.S. Treasury Bill #		0.08			03/29/2012	$	300,000		299,981
Total Short-Term Investments (Cost $62,148,809)									62,148,793

Total Investments in Securities
(Cost $1,319,660,372) *	101.62	%		1,344,770,874
Other Assets and Liabilities, Net	(1.62	)		(21,444,947	)
Total Net Assets	100.00	%	$	1,323,325,927

± Variable rate investment.

(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.

(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 investments in derivative instruments.

* Cost for federal income tax purposes is $1,320,847,066 and net unrealized appreciation (depreciation) consists of:

Gross unrealized appreciation	$	24,770,381
Gross unrealized depreciation		(846,573	)
Net unrealized appreciation	$	23,923,808

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

26 Wells Fargo Advantage Adjustable Rate Government Fund Statement of Assets and Liabilities—February 29, 2012 (Unaudited)

Assets
Investments
In unaffiliated securities, at value (see cost below)	$	1,282,922,062
In affiliated securities, at value (see cost below)		61,848,812
Total investments, at value (see cost below)		1,344,770,874
Principal paydown receivable		4,737,501
Receivable for Fund shares sold		1,489,285
Receivable for interest		3,561,054
Receivable for daily variation margin on open futures contracts		55,781
Prepaid expenses and other assets		77,547
Total assets		1,354,692,042
Liabilities
Dividends payable		210,536
Payable for investments purchased		2,347,203
Payable for Fund shares redeemed		27,750,469
Advisory fee payable		243,101
Distribution fees payable		180,655
Due to other related parties		196,519
Accrued expenses and other liabilities		437,632
Total liabilities		31,366,115
Total net assets	$	1,323,325,927
NET ASSETS CONSIST OF
Paid-in capital	$	1,514,093,132
Overdistributed net investment income		(2,340,672	)
Accumulated net realized losses on investments		(213,511,723	)
Net unrealized gains on investments		25,085,190
Total net assets	$	1,323,325,927
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE1
Net assets – Class A	$	302,277,686
Shares outstanding – Class A		33,100,321
Net asset value per share – Class A		$9.13
Maximum offering price per share – Class A2		$9.32
Net assets – Class B	$	10,136,679
Shares outstanding – Class B		1,109,728
Net asset value per share – Class B		$9.13
Net assets – Class C	$	277,486,861
Shares outstanding – Class C		30,383,620
Net asset value per share – Class C		$9.13
Net assets – Administrator Class	$	115,495,249
Shares outstanding – Administrator Class		12,645,333
Net asset value per share – Administrator Class		$9.13
Net assets – Institutional Class	$	617,929,452
Shares outstanding – Institutional Class		67,649,126
Net asset value per share – Institutional Class		$9.13
Investments in unaffiliated securities, at cost	$	1,257,811,560
Investments in affiliated securities, at cost	$	61,848,812
Total investments, at cost	$	1,319,660,372

1. The 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.

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

Statement of Operations—Six Months Ended February 29, 2012 (Unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 27

Investment income
Interest	$	12,294,425
Income from affiliated securities		3,612
Total investment income		12,298,037
Expenses
Advisory fee		2,556,801
Administration fees
Fund level		338,618
Class A		265,834
Class B		9,560
Class C		229,940
Administrator Class		59,450
Institutional Class		241,562
Shareholder servicing fees
Class A		415,368
Class B		14,937
Class C		359,280
Administrator Class		144,467
Distribution fees
Class B		44,810
Class C		1,077,842
Custody and accounting fees		46,224
Professional fees		31,543
Registration fees		24,811
Shareholder report expenses		46,274
Trustees’ fees and expenses		5,420
Other fees and expenses		12,086
Total expenses		5,924,827
Less: Fee waivers and/or expense reimbursements		(628,030	)
Net expenses		5,296,797
Net investment income		7,001,240
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		601,293
Futures transactions		(528,842	)
Net realized gains on investments		72,451
Net change in unrealized gains (losses) on:
Unaffiliated securities		4,173,574
Futures transactions		60,947
Net change in unrealized gains (losses) on investments		4,234,521
Net realized and unrealized gains (losses) on investments		4,306,972
Net increase in net assets resulting from operations	$	11,308,212

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

28 Wells Fargo Advantage Adjustable Rate Government Fund Statements of Changes in Net Assets

	Six Months Ended February 29, 2012 (Unaudited)						Year Ended August 31, 2011
Operations
Net investment income				$	7,001,240					$	16,262,285
Net realized gains (losses) on investments					72,451						(1,960,095	)
Net change in unrealized gains (losses) on investments					4,234,521						7,687,306
Net increase in net assets resulting from operations					11,308,212						21,989,496
Distributions to shareholders from
Net investment income
Class A					(2,245,863	)					(4,583,566	)
Class B					(36,625	)					(243,091	)
Class C					(848,546	)					(2,279,362	)
Administrator Class					(856,774	)					(316,549	)
Institutional Class					(4,746,863	)					(8,624,206	)
Tax basis return of capital
Class A					0						(1,731,087	)
Class B					0						(172,929	)
Class C					0						(1,762,948	)
Administrator Class					0						(120,023	)
Institutional Class					0						(2,835,213	)
Total distributions to shareholders					(8,734,671	)					(22,668,974	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		11,146,581			101,488,024			16,412,941			149,657,118
Class B		34,038			309,970			99,347			906,066
Class C		812,274			7,393,920			2,685,125			24,474,739
Administrator Class		15,971,747			145,347,317			5,932,991			54,071,142
Institutional Class		45,729,500			416,417,906			56,802,728			517,846,081
					670,957,137						746,955,146
Reinvestment of distributions
Class A		172,403			1,569,381			472,739			4,310,337
Class B		3,400			30,955			36,834			336,000
Class C		59,903			545,084			275,194			2,509,488
Administrator Class		64,585			588,100			28,945			263,683
Institutional Class		409,297			3,727,882			938,927			8,560,527
					6,461,402						15,980,035
Payment for shares redeemed
Class A		(14,246,196	)		(129,654,129	)		(19,607,933	)		(178,746,472	)
Class B		(563,024	)		(5,128,366	)		(4,007,517	)		(36,520,241	)
Class C		(3,029,135	)		(27,581,408	)		(7,725,072	)		(70,421,005	)
Administrator Class		(7,224,500	)		(65,769,253	)		(2,129,535	)		(19,400,449	)
Institutional Class		(44,023,791	)		(400,983,573	)		(32,559,685	)		(296,753,911	)
					(629,116,729	)					(601,842,078	)
Net increase in net assets resulting from capital share transactions					48,301,810						161,093,103
Total increase in net assets					50,875,351						160,413,625
Net assets
Beginning of period					1,272,450,576						1,112,036,951
End of period				$	1,323,325,927					$	1,272,450,576
Overdistributed net investment income				$	(2,340,672	)				$	(607,241	)

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

Financial Highlights Wells Fargo Advantage Adjustable Rate Government Fund 29

(For a share outstanding throughout each period)

Class A	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,						Year Ended June 30,
				2011			20101,2			20101			20091			20081			20071
Net asset value, beginning of period	$	9.12		$	9.12		$	9.11		$	9.00		$	9.15		$	9.21		$	9.23
Net investment income		0.05			0.14			0.02			0.20			0.32			0.44	3		0.38
Net realized and unrealized gains (losses) on investments		0.02			0.04			0.02			0.11			(0.14	)		(0.05	)		0.02
Total from investment operations		0.07			0.18			0.04			0.31			0.18			0.39			0.40
Distributions to shareholders from
Net investment income		(0.06	)		(0.13	)		(0.01	)		(0.20	)		(0.33	)		(0.45	)		(0.42	)
Tax basis return of capital		0.00			(0.05	)3		(0.02	)3		0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.06	)		(0.18	)		(0.03	)		(0.20	)		(0.33	)		(0.45	)		(0.42	)
Net asset value, end of period	$	9.13		$	9.12		$	9.12		$	9.11		$	9.00		$	9.15		$	9.21
Total return4		0.78	%		2.04	%		0.49	%		3.51	%		2.09	%		4.30	%		4.42	%
Ratios to average net assets (annualized)
Gross expenses		0.86	%		0.88	%		0.88	%		0.73	%		0.73	%		0.98	%5		1.11	%5
Net expenses		0.74	%		0.74	%		0.74	%		0.73	%		0.73	%		0.94	%5		1.07	%5
Net investment income		1.12	%		1.50	%		1.18	%		2.27	%		3.61	%		4.74	%5		4.18	%5
Supplemental data
Portfolio turnover rate		6	%		18	%		0	%		14	%		41	%		39	%		29	%
Net assets, end of period (000’s omitted)		$302,278			$328,427			$353,453			$271,853			$277,862			$270,482			$311,031

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 the transaction. The information for the periods prior to July 12, 2010 is that of Class A of Evergreen Adjustable Rate Fund.

2. For the two months ended August 31, 2010. The Fund changed its fiscal year end from June 30 to August 31, effective August 31, 2010.

3. Calculated based upon average shares outstanding.

4. Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

5. 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	%

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

30 Wells Fargo Advantage Adjustable Rate Government Fund Financial Highlights

(For a share outstanding throughout each period)

Class B	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,						Year Ended June 30,
				2011			20101,2			20101			20091			20081			20071
Net asset value, beginning of period	$	9.12		$	9.12		$	9.11		$	9.00		$	9.15		$	9.21		$	9.23
Net investment income		0.02	3		0.07	3		0.00	4		0.13	3		0.26	3		0.37	3		0.32	3
Net realized and unrealized gains (losses) on investments		0.02			0.05			0.03			0.11			(0.14	)		(0.05	)		0.01	��
Total from investment operations		0.04			0.12			0.03			0.24			0.12			0.32			0.33
Distributions to shareholders from
Net investment income		(0.03	)		(0.07	)		(0.00	)4		(0.13	)		(0.27	)		(0.38	)		(0.35	)
Tax basis return of capital		0.00			(0.05	)3		(0.02	)3		0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.03	)		(0.12	)		(0.02	)		(0.13	)		(0.27	)		(0.38	)		(0.35	)
Net asset value, end of period	$	9.13		$	9.12		$	9.12		$	9.11		$	9.00		$	9.15		$	9.21
Total return5		0.40	%		1.28	%		0.36	%		2.73	%		1.33	%		3.53	%		3.65	%
Ratios to average net assets (annualized)
Gross expenses		1.61	%		1.63	%		1.62	%		1.48	%		1.48	%		1.70	%6		1.81	%6
Net expenses		1.49	%		1.49	%		1.49	%		1.48	%		1.48	%		1.70	%6		1.81	%6
Net investment income		0.39	%		0.81	%		0.24	%		1.55	%		2.95	%		3.99	%6		3.45	%6
Supplemental data
Portfolio turnover rate		6	%		18	%		0	%		14	%		41	%		39	%		29	%
Net assets, end of period (000’s omitted)		$10,137			$14,911			$50,229			$52,414			$90,520			$183,596			$274,387

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 the transaction. The information for the periods prior to July 12, 2010 is that of Class B of Evergreen Adjustable Rate Fund.

2. For the two months ended August 31, 2010. The Fund changed its fiscal year end from June 30 to August 31, effective August 31, 2010.

3. Calculated based upon average shares outstanding.

4. Amount is less than $0.005.

5. Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

6. 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	%

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

Financial Highlights Wells Fargo Advantage Adjustable Rate Government Fund 31

(For a share outstanding throughout each period)

Class C	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,						Year Ended June 30,
				2011			20101,2			20101			20091			20081			20071
Net asset value, beginning of period	$	9.12		$	9.12		$	9.11		$	9.00		$	9.15		$	9.21		$	9.23
Net investment income		0.01			0.06			0.00	3		0.14			0.25			0.37	4		0.32	4
Net realized and unrealized gains (losses) on investments		0.03			0.06			0.03			0.10			(0.13	)		(0.05	)		0.01
Total from investment operations		0.04			0.12			0.03			0.24			0.12			0.32			0.33
Distributions to shareholders from
Net investment income		(0.03	)		(0.07	)		(0.00	)3		(0.13	)		(0.27	)		(0.38	)		(0.35	)
Tax basis return of capital		0.00			(0.05	)4		(0.02	)4		0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.03	)		(0.12	)		(0.02	)		(0.13	)		(0.27	)		(0.38	)		(0.35	)
Net asset value, end of period	$	9.13		$	9.12		$	9.12		$	9.11		$	9.00		$	9.15		$	9.21
Total return5		0.40	%		1.28	%		0.36	%		2.73	%		1.33	%		3.53	%		3.65	%
Ratios to average net assets (annualized)
Gross expenses		1.61	%		1.63	%		1.62	%		1.48	%		1.48	%		1.70	%6		1.81	%6
Net expenses		1.49	%		1.49	%		1.51	%		1.48	%		1.48	%		1.70	%6		1.81	%6
Net investment income		0.34	%		0.74	%		0.23	%		1.52	%		2.88	%		3.99	%6		3.45	%6
Supplemental data
Portfolio turnover rate		6	%		18	%		0	%		14	%		41	%		39	%		29	%
Net assets, end of period (000’s omitted)		$277,487			$296,645			$340,278			$349,562			$360,607			$395,703			$497,661

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 the transaction. The information for the periods prior to July 12, 2010 is that of Class C of Evergreen Adjustable Rate Fund.

2. For the two months ended August 31, 2010. The Fund changed its fiscal year end from June 30 to August 31, effective August 31, 2010.

3. Amount is less than $0.005.

4. Calculated based upon average shares outstanding.

5. Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

6. 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	%

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

32 Wells Fargo Advantage Adjustable Rate Government Fund Financial Highlights

(For a share outstanding throughout each period)

Administrator Class	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,
				2011			20101
Net asset value, beginning of period	$	9.12		$	9.12		$	9.11
Net investment income		0.05			0.14	2		0.02
Net realized and unrealized gains (losses) on investments		0.03			0.06			0.01
Total from investment operations		0.08			0.20			0.03
Distributions to shareholders from
Net investment income		(0.07	)		(0.15	)		(0.00	)3
Tax basis return of capital		0.00			(0.05	)2		(0.02	)2
Total distributions to shareholders		(0.07	)		(0.20	)		(0.02	)
Net asset value, end of period	$	9.13		$	9.12		$	9.12
Total return4		0.84	%		2.18	%		0.31	%
Ratios to average net assets (annualized)
Gross expenses		0.79	%		0.78	%		0.90	%
Net expenses		0.60	%		0.60	%		0.62	%
Net investment income		1.18	%		1.49	%		2.01	%
Supplemental data
Portfolio turnover rate		6	%		18	%		0	%
Net assets, end of period (000’s omitted)		$115,495			$34,946			$10

1. For the period from July 30, 2010 (commencement of class operations) to August 31, 2010.

2. Calculated based upon average shares outstanding.

3. Amount is less than $0.005.

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

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

Financial Highlights Wells Fargo Advantage Adjustable Rate Government Fund 33

(For a share outstanding throughout each period)

Institutional Class	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,						Year Ended June 30,
				2011			20101,2			20101			20091			20081			20071
Net asset value, beginning of period	$	9.12		$	9.12		$	9.11		$	9.00		$	9.15		$	9.21		$	9.23
Net investment income		0.06			0.15			0.02			0.23			0.35			0.46			0.41
Net realized and unrealized gains (losses) on investments		0.02			0.06			0.03			0.10			(0.14	)		(0.05	)		0.02
Total from investment operations		0.08			0.21			0.05			0.33			0.21			0.41			0.43
Distributions to shareholders from
Net investment income		(0.07	)		(0.16	)		(0.02	)		(0.22	)		(0.36	)		(0.47	)		(0.45	)
Tax basis return of capital		0.00			(0.05	)3		(0.02	)3		0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.07	)		(0.21	)		(0.04	)		(0.22	)		(0.36	)		(0.47	)		(0.45	)
Net asset value, end of period	$	9.13		$	9.12		$	9.12		$	9.11		$	9.00		$	9.15		$	9.21
Total return4		0.90	%		2.30	%		0.53	%		3.76	%		2.35	%		4.57	%		4.69	%
Ratios to average net assets (annualized)
Gross expenses		0.53	%		0.55	%		0.55	%		0.48	%		0.48	%		0.70	%5		0.80	%5
Net expenses		0.49	%		0.49	%		0.49	%		0.48	%		0.48	%		0.70	%5		0.80	%5
Net investment income		1.30	%		1.72	%		1.21	%		2.52	%		3.91	%		4.98	%5		4.47	%5
Supplemental data
Portfolio turnover rate		6	%		18	%		0	%		14	%		41	%		39	%		29	%
Net assets, end of period (000’s omitted)		$617,929			$597,521			$368,066			$389,075			$483,565			$890,857			$1,361,685

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 the transaction. The information for the periods prior to July 12, 2010 is that of Class I of Evergreen Adjustable Rate Fund.

2. For the two months ended August 31, 2010. The Fund changed its fiscal year end from June 30 to August 31, effective August 31, 2010.

3. Calculated based upon average shares outstanding.

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

5. 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	%

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

34 Wells Fargo Advantage Adjustable Rate Government Fund Notes to Financial Statements (Unaudited)

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 Wells Fargo Advantage Adjustable Rate Government Fund (the “Fund”) which 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 the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Securities valuation

Fixed income securities with original maturities exceeding 60 days are valued based on available evaluated prices received from an independent pricing service approved by the 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 Fund’s 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.

Investments in open-end mutual funds and non-registered investment companies are generally valued at net asset value.

Investments which are not valued using any of the methods discussed above, are valued at their fair value, as determined by procedures established in good faith and approved by the Board of Trustees.

Futures contracts

The Fund may be subject to interest rate risk in the normal course of pursuing its investment objectives. The Fund 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 when available. 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 Statement of Assets and Liabilities as an asset or liability and in the Statement 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.

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.

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.

Notes to Financial Statements (Unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 35

Federal and other taxes

The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.

The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities.

Under the recently enacted Regulated Investment Company Modernization Act of 2010, the Fund is permitted to carry forward capital losses incurred in taxable years which began after December 22, 2010 for an unlimited period. However, any losses incurred are 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.

At August 31, 2011, net capital loss carryforwards, which were available to offset future net realized capital gains, were as follows:

Expiration
2012		2013		2014		2015		2016		2017		2018		2019
$	95,791,789	$	47,790,373	$	11,283,743	$	18,541,278	$	10,766,785	$	24,262,054	$	1,705,150	$	66,443

As of August 31, 2011, the Fund had $2,127,503 of current year deferred post-October capital losses, which would be treated as realized for tax purposes on the first day of the succeeding year.

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 significant unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:

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

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

n Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

36 Wells Fargo Advantage Adjustable Rate Government Fund Notes to Financial Statements (Unaudited)

As of February 29, 2012, the inputs used in valuing the Fund’s assets, which are carried at fair value, were as follows:

Investments in Securities	Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Agency securities	$	0	$	1,282,622,081	$	0	$	1,282,622,081
Short-term investments
Investment companies		61,848,812		0		0		61,848,812
U.S. Treasury securities		299,981		0		0		299,981
	$	62,148,793	$	1,282,622,081	$	0	$	1,344,770,874

Further details on the major security types listed above can be found in the Portfolio of Investments.

As of February 29, 2012, the inputs used in valuing the Fund’s other financial instruments, which are carried at fair value, were as follows:

Other financial instruments	Quoted Prices (Level 1)			Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Futures contracts+	$	(25,312	)	$	0	$	0	$	(25,312	)

+ Futures contracts are presented at the unrealized gains or losses on the instrument.

Transfers in and transfers out are recognized at the end of the reporting period. For the six months ended February 29, 2012, the Fund did not have any significant transfers into/out of Level 1 and Level 2.

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Advisory fee

The Trust has entered into an advisory contract with Wells Fargo Funds Management, LLC (“Funds Management”), an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”). The 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 Fund.

Pursuant to the contract, Funds Management is entitled to receive an annual advisory fee starting at 0.40% and declining to 0.30% as the average daily net assets of the Fund increase. For the six months ended February 29, 2012, the advisory fee was equivalent to an annual rate of 0.38% of the Fund’s average daily net assets.

Funds Management has retained the services of certain sub-advisers to provide daily portfolio management to the Fund. The fees related to sub-advisory services are borne directly by Funds Management and do not increase the overall fees paid by the Fund. Wells Capital Management Incorporated, an affiliate of Funds Management, is the sub-adviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.20% and declining to 0.10% as the average daily net assets of the Fund increase.

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 the Fund an annual fund level administration fee starting at 0.05% and declining to 0.03% as the average daily net assets of the Fund increase and a class level administration fee which is calculated based on the average daily net assets of each class as follows:

	Class Level Administration Fee
Class A, Class B, Class C		0.16	%
Administrator Class		0.10
Institutional Class		0.08

Notes to Financial Statements (Unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 37

Funds Management has contractually waived and/or reimbursed 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. Funds Management has committed through July 11, 2013 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.74% for Class A, 1.49% for Class B, 1.49% for Class C, 0.60% for Administrator Class and 0.49% for Institutional Class.

Distribution fees

The Trust has adopted a Distribution Plan for Class B and Class C shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. Distribution fees are charged to Class B and Class C shares and paid to Wells Fargo Funds Distributor, LLC, the principal underwriter, at an annual rate of 0.75% of the average daily net assets of Class B and Class C shares.

For the six months ended February 29, 2012, Wells Fargo Funds Distributor, LLC received $1,923 from the sale of Class A shares and $5,568 and $3,726 in contingent deferred sales charges from redemptions of Class B and Class C shares, respectively.

Shareholder servicing fees

The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class B, Class C and Administrator Class of the 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 U.S. government securities, excluding short-term securities (securities with maturities of one year or less at purchase date), for the six months ended February 29, 2012 were $218,003,814 and $77,160,531, respectively.

6. DERIVATIVE TRANSACTIONS

During the six months ended February 29, 2012, the Fund entered into futures contracts to speculate on interest rates.

At February 29, 2012, the Fund had short futures contracts outstanding as follows:

Expiration Date	Contracts	Type	Contract Value at February 29, 2012		Net Unrealized Gains (Losses)
June 2012	115 Short	5-Year U.S. Treasury Notes	$	14,164,766	$	(1,117	)
June 2012	70 Short	10-Year U.S. Treasury Notes		9,166,719		(24,195	)

The Fund had an average notional amount of $35,462,569 in short futures contracts during the six months ended February 29, 2012.

On February 29, 2012, the cumulative unrealized losses on futures contracts in the amount of $25,312 is reflected in net unrealized gains on investments on the Statement of Assets and Liabilities. The receivable for daily variation margin on open futures contracts reflected in the Statement of Assets and Liabilities only represents the current day’s variation margin. The realized losses and change in unrealized gains (losses) on futures contracts are reflected in the Statement of Operations.

7. BANK BORROWINGS

The Trust (excluding the money market funds) and Wells Fargo Variable Trust are parties to a $150,000,000 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, an annual commitment fee equal to 0.10% of the unused balance is allocated to each participating fund. Prior to September 6, 2011, the revolving credit agreement was for $125,000,000 and the annual commitment fee paid by the Fund was 0.125% of the unused balance. For the six months ended February 29, 2012, the Fund paid $965 in commitment fees.

38 Wells Fargo Advantage Adjustable Rate Government Fund Notes to Financial Statements (Unaudited)

During the six months ended February 29, 2012, the Fund had average borrowings outstanding of $50,284 (on an annualized basis) at an average rate of 1.41% and paid interest of $709.

8. 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 Fund and, therefore, cannot be estimated.

9. NEW ACCOUNTING PRONOUNCEMENTS

In May 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-04 “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs”. ASU No. 2011-04 amends FASB ASC Topic 820, Fair Value Measurements and Disclosures, to establish common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with GAAP. The ASU is effective prospectively for interim and annual periods beginning after December 15, 2011. Management expects that adoption of the ASU will result in additional disclosures in the financial statements, as applicable.

In April 2011, FASB issued ASU No. 2011-03 “Reconsideration of Effective Control for Repurchase Agreements”. ASU No. 2011-03 amends FASB ASC Topic 860, Transfers and Servicing, specifically the criteria required to determine whether a repurchase agreement (repo) and similar agreements should be accounted for as sales of financial assets or secured borrowings with commitments. ASU No. 2011-03 changes the assessment of effective control by focusing on the transferor’s contractual rights and obligations and removing the criterion to assess its ability to exercise those rights or honor those obligations. This could result in changes to the way entities account for certain transactions including repurchase agreements, mortgage dollar rolls and reverse repurchase agreements. The ASU will become effective on a prospective basis for new transfers and modifications to existing transactions as of the beginning of the first interim or annual period beginning on or after December 15, 2011. Management has evaluated the impact of adopting the ASU and expects no significant changes.

Other Information (Unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 39

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 wellsfargoadvantagefunds.com, or visiting the SEC Web site at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge on the Fund’s Web site at wellsfargoadvantagefunds.com or by visiting the SEC Web site at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available on the Fund’s Web site (wellsfargoadvantagefunds.com) 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 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.

40 Wells Fargo Advantage Adjustable Rate Government Fund Other Information (Unaudited)

BOARD OF TRUSTEES

The following table provides basic information about the Board of Trustees (the “Trustees”) of the Trust and Officers of the Trust. This table should be read in conjunction with the Prospectus and the Statement of Additional Information¹ of 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 137 funds comprising the Wells Fargo Funds 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 Year of Birth	Position Held and Length of Service	Principal Occupations During Past Five Years	Other Directorships During Past Five Years
Peter G. Gordon (Born 1942)	Trustee, since 1998; Chairman, since 2005 (Lead Trustee since 2001)	Co-Founder, Retired Chairman, President and CEO of Crystal Geyser Water Company. Trustee Emeritus, Colby College	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 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 40 portfolios as of 12/31/11); Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of Corporate Governance Research Program and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust

Other Information (Unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 41

Name and Year of Birth	Position Held and Length of Service	Principal Occupations During Past Five Years	Other Directorships During Past Five Years
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	Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield 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. Director and Vice Chair of The Free Trust (non-profit corporation). Director of the American Chestnut Foundation (non-profit corporation).	Asset Allocation Trust

Officers

Name and Year of Birth	Position Held and 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 Senior 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.
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. 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 Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the Web site at wellsfargoadvantagefunds.com.

42 Wells Fargo Advantage Adjustable Rate Government Fund List of Abbreviations

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

ACB —  Agricultural Credit Bank

ADR —  American Depository 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

AUD —  Australian Dollar

BAN —  Bond Anticipation Notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazil Real

CAB —  Capital Appreciation Bond

CAD —  Canadian Dollar

CCAB —  Convertible Capital Appreciation Bond

CDA —  Community Development Authority

CDO —  Collateralized Debt Obligation

CHF —  Swiss Franc

COP —  Certificate of Participation

CR —  Custody Receipts

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

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-Traded Fund

EUR —  Euro

FFCB —  Federal Farm Credit Bank

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Authority

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British Pound

GDR —  Global Depository 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

HUF —  Hungarian Forint

IBC —  Insured Bond Certificate

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

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

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

PUTTER —  Puttable Tax-Exempt Receipts

R&D —  Research & Development

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real Estate Investment Trust

ROC —  Reset Option Certificates

SAVRS —  Select Auction Variable Rate Securities

SBA —  Small Business Authority

SEK —  Swedish Krona

SFHR —  Single Family Housing Revenue

SFMR —  Single Family Mortgage Revenue

SGD —  Singapore Dollar

SKK —  Slovakian Koruna

SPDR —  Standard & Poor’s Depositary Receipts

STRIPS —  Separate Trading of Registered Interest and Principal       Securities

TAN —  Tax Anticipation Notes

TBA —  To Be Announced

TIPS —  Treasury Inflation-Protected Securities

TRAN —  Tax Revenue Anticipation Notes

TCR —  Transferable Custody Receipts

TRY —  Turkish Lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

XLCA —  XL Capital Assurance

ZAR —  South African Rand

FOR MORE INFORMATION

More information about Wells Fargo Advantage Funds is available free upon request. To obtain literature, please write, e-mail, visit the Fund’s Web site, or call:

Wells Fargo Advantage Funds

P.O. Box 8266

Boston, MA 02266-8266

E-mail: wfaf@wellsfargo.com

Web site: wellsfargoadvantagefunds.com

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 wellsfargoadvantagefunds.com. 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

© 2012 Wells Fargo Funds Management, LLC. All rights reserved.

208520 04-12 SA215/SAR215 2-12

Wells Fargo Advantage

Government Securities Fund

Semi-Annual Report

February 29, 2012

Reduce clutter. Save trees.

Sign up for electronic delivery of prospectuses and shareholder reports at wellsfargo.com/advantagedelivery

Contents

Letter to Shareholders	2
Performance Highlights	5
Fund Expenses	7
Portfolio of Investments	8
Financial Statements
Statement of Assets and Liabilities	20
Statement of Operations	21
Statements of Changes in Net Assets	22
Financial Highlights	23
Notes to Financial Statements	29
Other Information	36
List of Abbreviations	39

The views expressed and any forward-looking statements are as of February 29, 2012, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Advantage Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements; the views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC, disclaims any obligation to publicly update or revise any views expressed or forward-looking statements.

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 FundsSM).
1996	Evergreen Investments and Keystone Funds merge.
1997	Wells Fargo launches Wells Fargo Advantage WealthBuilder PortfoliosSM, 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 a fund’s investment objectives, risks, charges, and expenses before investing. For a current prospectus and, if available, a summary prospectus, containing this and other information, visit wellsfargoadvantagefunds.com. 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.

“Dow Jones^®” and “Dow Jones Target Date Indexes^SM” are service marks of Dow Jones Trademark Holdings, LLC (“Dow Jones”), have been licensed to CME Group Index Services LLC (“CME Indexes”) and have been sublicensed for use for certain purposes by Global Index Advisors, Inc, and Wells Fargo Funds Management, LLC. The Wells Fargo Advantage Dow Jones Target Date Funds^SM based on the Dow Jones Target Date Indexes^SM, are not sponsored, endorsed, sold or promoted by Dow Jones, CME Indexes or their respective affiliates and none of them makes any representation regarding the advisability of investing in such product(s).

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

Not part of the semi-annual report.

Wells Fargo Advantage Funds offers more than 110 mutual funds across a wide range of asset classes, representing over $218 billion in assets under management, as of February 29, 2012.

Equity Funds
Asia Pacific Fund	Equity Value Fund	Precious Metals Fund
C&B Large Cap Value Fund	Global Opportunities Fund	Premier Large Company Growth Fund
C&B Mid Cap Value Fund	Growth Fund	Small Cap Opportunities Fund
Capital Growth Fund	Index Fund	Small Cap Value Fund
Common Stock Fund	International Equity Fund	Small Company Growth Fund
Disciplined U.S. Core Fund	International Value Fund	Small Company Value Fund
Discovery Fund†	Intrinsic Small Cap Value Fund	Small/Mid Cap Core Fund
Diversified Equity Fund	Intrinsic Value Fund	Small/Mid Cap Value Fund
Diversified International Fund	Intrinsic World Equity Fund	Special Mid Cap Value Fund
Diversified Small Cap Fund	Large Cap Core Fund	Special Small Cap Value Fund
Emerging Growth Fund	Large Cap Growth Fund	Specialized Technology Fund
Emerging Markets Equity Fund	Large Company Value Fund	Strategic Large Cap Growth Fund
Endeavor Select Fund†	Omega Growth Fund	Traditional Small Cap Growth Fund
Enterprise Fund†	Opportunity 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
Absolute Return Fund	WealthBuilder Equity Portfolio†	Target 2020 Fund†
Asset Allocation Fund	WealthBuilder Growth Allocation Portfolio†	Target 2025 Fund†
Conservative Allocation Fund	WealthBuilder Growth Balanced Portfolio†	Target 2030 Fund†
Diversified Capital Builder Fund	WealthBuilder Moderate Balanced Portfolio†	Target 2035 Fund†
Diversified Income Builder Fund	WealthBuilder Tactical Equity Portfolio†	Target 2040 Fund†
Growth Balanced Fund	Target Today Fund†	Target 2045 Fund†
Index Asset Allocation Fund	Target 2010 Fund†	Target 2050 Fund†
Moderate Balanced Fund	Target 2015 Fund†	Target 2055 Fund†
WealthBuilder Conservative Allocation Portfolio†
Money Market Funds
100% Treasury Money Market Fund	Heritage Money Market Fund†	National Tax-Free Money Market Fund
California Municipal Money Market Fund	Money Market Fund	Prime Investment Money Market Fund
Cash Investment Money Market Fund	Municipal Cash Management Money Market Fund	Treasury Plus Money Market Fund
Government Money Market Fund	Municipal Money Market Fund
Variable Trust Funds1
VT Discovery Fund†	VT Intrinsic Value Fund	VT Small Cap Growth Fund
VT Index Asset Allocation Fund	VT Omega Growth Fund	VT Small Cap Value Fund
VT International Equity Fund	VT Opportunity Fund†	VT Total Return Bond 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 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 Dow Jones Target 2055 Fund^SM, Wells Fargo Advantage Heritage Money Market Fund^SM, Wells Fargo Advantage VT Discovery Fund^SM, and Wells Fargo Advantage VT Opportunity Fund^SM are referred to as the Discovery Fund, Endeavor Select Fund, Enterprise Fund, Opportunity 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, Target 2055 Fund, Heritage Money Market Fund, VT Discovery Fund, and VT Opportunity Fund, respectively.

Not part of the semi-annual report.

2 Wells Fargo Advantage Government Securities Fund Letter to Shareholders

Karla M. Rabusch,

President

Wells Fargo Advantage Funds

The theme for the period was a shift from risk aversion in the first half to burgeoning trends of improving investor confidence in the second half, which significantly improved pricing in the lower-rated asset classes.

On the whole, investment-grade fixed-income securities performed positively during the period, but the strongest returns came from the high-yield market.

Dear Valued Shareholder:

We are pleased to offer you this semi-annual report for the Wells Fargo Advantage Government Securities Fund, which covers the six-month period that ended February 29, 2012. During the period, fixed-income performance was best among the lower-rated securities, as improved investor confidence in the U.S. economy and the U.S. credit markets encouraged investors to return to riskier asset classes.

The period began with heightened risk aversion but ended with stronger investor confidence.

The six-month period began with the worsening of the Greek crisis, which amplified risk aversion across the global credit markets. This in turn led to a powerful rally in U.S. Treasuries and a sharp decline in high-yield bond prices, most notably in the lowest-quality credit tiers. During this time, most investment-grade fixed-income markets continued to generate positive returns—although certain areas of the riskiest segments of the markets declined—and U.S. Treasury yields reached the lowest levels in decades, even surpassing the low yield levels reached in the summer of 2010.

The last three months of the period were characterized by a strong reversal of the trends of the first three months. In October 2011, the high-yield market recovered significantly, benefiting from indications of improving policy with regard to managing the debt crisis from Europe and the formal announcement of a European debt deal late in the month. Due to renewed concerns about the European Union’s ability to manage the debt crisis, November 2011 saw a modest decline in investment-grade corporate bond prices and a sharp correction in high-yield corporate bonds, but another strong recovery in pricing started in December and carried into the first two months of 2012. Investor confidence strengthened as the U.S. economy demonstrated signs of sustainable growth and U.S. credit markets began to show some resistance to the credit problems of Europe. Thus, the theme for the period was a shift from risk aversion in the first half to burgeoning trends of improving investor confidence in the second half, which significantly improved pricing in the lower-rated asset classes.

On the whole, investment-grade fixed-income securities performed positively during the period, but the strongest returns came from the high-yield market. In fact, the best returns for the six-month period came from the lowest-rated credit tiers, despite the fact that they significantly underperformed in August and September 2011. Similar trends were true in the structured products sector, as lower-rated commercial mortgage-backed securities were among the best performers for the period, despite underperforming in the first two months.

The Federal Reserve launched Operation Twist in September.

With economic concerns and credit woes escalating in Europe and some continued uncertainty about the growth outlook in the U.S. during August and September 2011, the Federal Reserve (Fed) intervened yet again with monetary accommodations—this time with “Operation Twist,” which was announced and launched in September 2011. With Operation Twist, the Fed endeavored to flatten the yield curve and drive long-term rates down by selling short-term Treasuries and using the proceeds to purchase long-term Treasuries. The Fed stated that it is unlikely to raise rates before 2014, which should keep yields on Treasuries low. Despite this announcement, problems in Europe caused Treasuries to continue to rally in the first 3 months of the period, while credit spreads on corporate and

Letter to Shareholders Wells Fargo Advantage Government Securities Fund 3

securitized sectors widened with increasing risk aversion. However, with an improved U.S. economic outlook and greater investor confidence, the last three months of the period saw a slight decline in U.S. Treasury prices and significant improvement in high-yield corporate bond prices. Credit spreads in the corporate and securitized sectors broadly tightened in December 2011 and January and February 2012.

Although U.S. economic conditions appear to have improved over the course of the period, the recovery continues to face some headwinds in the form of languishing housing values and elevated unemployment levels, which may continue to create some volatility in the fixed-income markets. 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. While heightened volatility may be uncomfortable to experience in the short term, we believe it can lead to unique opportunities to add relative value for investors with long-term investment horizons.

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

Periods of uncertainty can present challenges, but 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. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Advantage Funds offers more than 110 mutual funds and other investments spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance.

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 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.

Thank you for choosing to invest with Wells Fargo Advantage Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs. For current information about your fund investments, contact your investment professional, visit our Web site at wellsfargoadvantagefunds.com, or call us directly at 1-800-222-8222. We are available 24 hours a day, 7 days a week.

Sincerely,

Karla M. Rabusch

President

Wells Fargo Advantage Funds

4 Wells Fargo Advantage Government Securities Fund Letter to Shareholders

Notice to Shareholders

The Board of Trustees for Wells Fargo Advantage Funds has unanimously approved the following modifications to certain net asset value (NAV) waiver privileges and commission schedules:

n Effective May 1, 2012, automatic investment plan (AIP) purchases and proceeds received from systematic withdrawals will no longer qualify for NAV repurchase privileges.

n Effective May 1, 2012, discretionary rights to waive the upfront commission for Class C and “jumbo” Class A share purchases will no longer be granted to broker/dealers. However, we will continue to waive the Class C shares contingent deferred sales charge for redemptions by employer-sponsored retirement plans where the dealer of record waived its commission at the time of purchase.

n Effective July 31, 2012, NAV purchase privileges for former Evergreen Class IS and Class R shareholders are being modified to remove the ability to purchase Class A shares at NAV unless those shares are held directly with the Fund on or after July 31, 2012.

Please contact your investment professional or call us directly at 1-800-222-8222 if you have any questions on this Notice to Shareholders.

Performance Highlights (Unaudited) Wells Fargo Advantage Government Securities Fund 5

INVESTMENT OBJECTIVE

The Fund seeks current income.

ADVISER

Wells Fargo Funds Management, LLC

SUBADVISER

Wells Capital Management Incorporated

PORTFOLIO MANAGERS

Michael J. Bray, CFA

Christopher Y. Kauffman, CFA

FUND INCEPTION

October 29, 1986

TEN LARGEST LONG-TERM HOLDINGS1 (AS OF FEBRUARY 29, 2012)
FNMA, 4.00%, 05/25/2040	6.24%
FNMA, 4.50%, 05/25/2039	5.07%
U.S. Treasury Note, 0.50%, 10/15/2014	4.72%
FNMA, 5.00%, 08/01/2040	3.83%
FHLMC, 3.50%, 08/15/2041	3.76%
U.S. Treasury Note, 0.25%, 01/31/2014	2.90%
GNMA, 4.50%, 05/20/2040	2.52%
FNMA, 6.00%, 08/25/2035	2.06%
U.S. Treasury Note, 2.00%, 11/15/2021	2.02%
U.S. Treasury Bond, 4.63%, 02/15/2040	1.82%

PORTFOLIO ALLOCATION²

(AS OF FEBRUARY 29, 2012)

1. The ten largest long-term holdings are calculated based on the value of the securities divided by total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

2. Portfolio allocation is subject to change and is calculated based on the total long-term investments of the Fund.

6 Wells Fargo Advantage Government Securities Fund Performance Highlights (Unaudited)

AVERAGE ANNUAL TOTAL RETURN³ (%) (AS OF FEBRUARY 29, 2012)

			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 (SGVDX)		08/31/1999		(2.74	)		2.40		4.93		4.61		1.85		7.22		5.90		5.09		0.88%		0.88%
Class B (WGSBX)**		07/18/2008		(3.53	)		1.43		4.78		4.61		1.47		6.43		5.11		4.61		1.63%		1.63%
Class C (WGSCX)		12/26/2002		0.47			5.42		5.10		4.24		1.47		6.42		5.10		4.24		1.63%		1.63%
Administrator Class (WGSDX)		04/08/2005											1.95		7.46		6.12		5.37		0.82%		0.66%
Institutional Class (SGVIX)		08/31/1999											2.04		7.64		6.33		5.59		0.55%		0.50%
Investor Class (STVSX)		10/29/1986											1.83		7.19		5.86		5.11		0.91%		0.91%
Barclays U.S. Aggregate Excluding Credit Bond Index6													2.01		7.68		6.17		5.41
Barclays Intermediate U.S. Government Bond Index7													1.03		6.11		5.61		4.76

* 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 and assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s Web site – wellsfargoadvantagefunds.com

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.

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 charge 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.

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.

3. Historical performance shown for the Class A shares through June 19, 2008 includes Advisor Class expenses. Historical 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. Historical performance shown for the Administrator Class shares prior to their inception reflects the performance of the Institutional Class shares, adjusted to reflect the higher expenses applicable to the Administrator Class shares.

4. Reflects the expense ratios as stated in the most recent prospectuses.

5. The Adviser has committed through July 11, 2013 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver, excluding certain expenses, at 0.87% for Class A, 1.62% for Class B, 1.62% for Class C, 0.64% for Administrator Class, 0.48% for Institutional Class and 0.90% for Investor Class. Without this cap, the Fund’s returns would have been lower.

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

7. The Barclays 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.

Fund Expenses (Unaudited) Wells Fargo Advantage Government Securities Fund 7

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and contingent deferred sales charges (if any) on redemptions 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, 2011 to February 29, 2012.

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 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.

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) and contingent deferred sales charges. 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 Account Value 09-01-2011		Ending Account Value 02-29-2012		Expenses Paid During the Period1		Net Annual Expense Ratio
Class A
Actual	$	1,000.00	$	1,018.45	$	4.32		0.86	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.59	$	4.32		0.86	%
Class B
Actual	$	1,000.00	$	1,014.68	$	8.06		1.61	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.86	$	8.07		1.61	%
Class C
Actual	$	1,000.00	$	1,014.67	$	8.06		1.61	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.86	$	8.07		1.61	%
Administrator Class
Actual	$	1,000.00	$	1,019.55	$	3.21		0.64	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.68	$	3.22		0.64	%
Institutional Class
Actual	$	1,000.00	$	1,020.37	$	2.41		0.48	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.48	$	2.41		0.48	%
Investor Class
Actual	$	1,000.00	$	1,018.29	$	4.47		0.89	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.44	$	4.47		0.89	%

1. Expenses paid is equal to the annualized expense ratio of each class 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).

8 Wells Fargo Advantage Government Securities Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Agency Securities: 63.71%
FHLB		5.63	%		03/14/2036	$	6,150,000	$	7,988,635
FHLMC ±		0.70			02/15/2033		614,015		614,733
FHLMC ±		2.30			10/01/2026		346,742		365,662
FHLMC ±		2.50			06/01/2032		159,618		168,319
FHLMC ±		2.62			07/01/2029		358,182		379,469
FHLMC ±		2.66			09/01/2031		10,702		10,843
FHLMC ±		2.66			09/01/2031		269,351		273,140
FHLMC (a)		2.93			11/01/2012		263,241		263,272
FHLMC ±		3.35			07/01/2032		2,931,222		2,991,201
FHLMC %%		3.50			08/15/2041		77,907,000		80,419,033
FHLMC ±		3.95			05/01/2026		120,254		126,309
FHLMC		4.00			03/01/2014		495,900		513,146
FHLMC		4.00			04/01/2014		2,616,252		2,665,588
FHLMC %%		4.00			04/15/2040		29,010,000		30,428,769
FHLMC %%		4.50			05/15/2039		2,300,000		2,443,031
FHLMC		5.00			05/01/2018		852,483		919,754
FHLMC		5.00			04/01/2019		727,115		788,811
FHLMC		5.00			04/01/2019		555,580		602,721
FHLMC		5.00			06/01/2019		901,512		978,005
FHLMC		5.00			08/01/2019		3,824,028		4,129,375
FHLMC		5.00			10/01/2019		1,025,136		1,112,118
FHLMC		5.00			02/01/2020		3,025,783		3,282,520
FHLMC		5.00			08/01/2040		6,386,363		6,883,303
FHLMC		5.50			11/01/2023		677,326		737,446
FHLMC		5.50			07/01/2035		23,621,068		25,751,708
FHLMC		5.50			06/01/2038		8,144,986		8,849,127
FHLMC		5.50			09/01/2038		13,841,069		15,037,641
FHLMC		5.50			01/01/2039		1,747,053		1,898,633
FHLMC		5.50			05/01/2040		5,398,057		5,866,411
FHLMC		6.00			10/01/2032		174,854		195,130
FHLMC		6.00			05/25/2043		9,219,356		10,390,944
FHLMC ±		6.08			01/01/2038		1,099,735		1,177,874
FHLMC ±		6.38			01/01/2026		92,789		93,529
FHLMC		6.50			04/01/2018		80,902		87,335
FHLMC		6.50			04/01/2021		227,169		239,970
FHLMC		6.50			04/01/2022		271,475		303,343
FHLMC		6.50			04/01/2026		4,068		4,659
FHLMC		6.50			09/01/2028		86,512		98,776
FHLMC		6.50			09/01/2028		25,979		29,662
FHLMC		6.50			07/01/2031		14		16
FHLMC		6.50			08/01/2037		3,023,001		3,360,862
FHLMC		6.50			10/01/2037		839,019		932,791
FHLMC		7.00			11/17/2013		34,677		34,771
FHLMC		7.00			10/01/2014		447,855		474,319
FHLMC		7.00			12/01/2023		11,662		13,330
FHLMC		7.00			05/01/2024		13,372		15,284
FHLMC		7.00			12/01/2026		424		492
FHLMC		7.00			12/01/2026		2,707		3,140
FHLMC		7.00			12/01/2026		4,826		5,598
FHLMC		7.00			12/01/2026		149		173

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage Government Securities Fund 9

Security Name	Interest Rate			Maturity Date		Principal		Value
Agency Securities (continued)
FHLMC		7.00	%		12/01/2026	$	1,649	$	1,912
FHLMC		7.00			12/01/2026		1,586		1,839
FHLMC		7.00			04/01/2029		6,362		7,439
FHLMC		7.00			04/01/2029		2,237		2,611
FHLMC		7.00			05/01/2029		55,295		64,526
FHLMC		7.00			04/01/2032		410,924		475,570
FHLMC		7.50			12/01/2012		25,518		25,743
FHLMC		7.50			10/01/2029		5,253		5,266
FHLMC		7.50			11/01/2031		443,180		535,688
FHLMC		7.50			04/01/2032		467,936		565,122
FHLMC		8.00			02/01/2017		15,686		17,335
FHLMC		8.00			08/01/2023		66,496		77,016
FHLMC		8.00			06/01/2024		17,480		20,754
FHLMC		8.00			06/01/2024		4,575		4,755
FHLMC		8.00			06/01/2024		15,767		18,718
FHLMC		8.00			08/01/2026		42,909		51,732
FHLMC		8.00			11/01/2026		43,241		52,203
FHLMC		8.00			11/01/2028		32,807		39,142
FHLMC		8.50			07/01/2022		6,813		8,128
FHLMC		8.50			12/01/2025		37,271		45,322
FHLMC		8.50			05/01/2026		4,848		5,873
FHLMC		8.50			08/01/2026		8,887		9,444
FHLMC		8.50			08/01/2026		32,641		33,133
FHLMC		9.00			06/01/2016		11,723		12,873
FHLMC		9.00			01/01/2017		20,317		20,712
FHLMC		9.00			04/01/2017		30,986		34,650
FHLMC		9.00			11/01/2018		103,082		115,250
FHLMC		9.00			08/01/2019		121		123
FHLMC		9.00			08/01/2019		324		336
FHLMC		9.00			08/01/2019		1,036		1,192
FHLMC		9.00			12/01/2019		411		481
FHLMC		9.00			01/01/2020		180		204
FHLMC		9.00			02/01/2020		4,697		4,750
FHLMC		9.00			02/01/2020		228		269
FHLMC		9.00			03/01/2020		2,702		2,805
FHLMC		9.00			03/01/2020		360		381
FHLMC		9.00			09/01/2020		445		523
FHLMC		9.00			09/01/2020		1,037		1,113
FHLMC		9.00			12/01/2020		93		107
FHLMC		9.00			02/01/2021		166		167
FHLMC		9.00			03/01/2021		9,439		11,034
FHLMC		9.00			03/01/2021		2,260		2,270
FHLMC		9.00			04/01/2021		8,274		9,172
FHLMC		9.00			04/01/2021		563		673
FHLMC		9.00			04/01/2021		147,880		166,952
FHLMC		9.00			06/01/2021		1,359		1,407
FHLMC		9.00			07/01/2021		6,459		6,486
FHLMC		9.00			07/01/2021		5,219		5,468
FHLMC		9.00			08/01/2021		1,283		1,531
FHLMC		9.00			04/01/2022		5,887		5,972

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

10 Wells Fargo Advantage Government Securities Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Agency Securities (continued)
FHLMC		9.00	%		07/01/2022	$	1,436	$	1,674
FHLMC		9.00			09/01/2024		2,522		3,080
FHLMC		9.00			10/01/2024		2,381		2,391
FHLMC		9.50			09/01/2016		80		90
FHLMC		9.50			10/01/2016		575		646
FHLMC		9.50			08/01/2018		51		51
FHLMC		9.50			08/01/2019		326		382
FHLMC		9.50			02/01/2020		17		20
FHLMC		9.50			06/01/2020		124		149
FHLMC		9.50			08/01/2020		886		1,050
FHLMC		9.50			09/01/2020		27		27
FHLMC		9.50			09/01/2020		16,855		19,256
FHLMC		9.50			09/01/2020		117		140
FHLMC		9.50			10/01/2020		104		125
FHLMC		9.50			10/01/2020		62		71
FHLMC		9.50			11/01/2020		159		189
FHLMC		9.50			05/01/2021		348		421
FHLMC		9.50			09/17/2022		1,420,092		1,645,699
FHLMC		9.50			04/01/2025		139,293		169,597
FHLMC		10.00			08/01/2017		44		49
FHLMC		10.00			01/01/2019		26		31
FHLMC		10.00			08/01/2019		91		106
FHLMC		10.00			12/01/2019		445		536
FHLMC		10.00			03/01/2020		41		49
FHLMC		10.00			06/01/2020		75		89
FHLMC		10.00			07/01/2020		68		75
FHLMC		10.00			08/01/2020		74		88
FHLMC		10.00			10/01/2021		134,217		158,088
FHLMC		10.00			08/17/2022		686,410		782,463
FHLMC		10.00			02/17/2025		1,198,113		1,397,457
FHLMC		10.50			02/01/2019		42		43
FHLMC		10.50			05/01/2019		227		263
FHLMC		10.50			06/01/2019		32		38
FHLMC		10.50			08/01/2019		36,446		43,113
FHLMC		10.50			12/01/2019		80,203		95,323
FHLMC		10.50			02/01/2020		1,784		1,864
FHLMC		10.50			05/01/2020		86,534		104,033
FHLMC		10.50			05/01/2020		8,249		8,651
FHLMC		10.50			08/01/2020		26,672		27,247
FHLMC		10.50			08/01/2020		43,406		46,564
FHLMC		14.00			11/01/2012		34		34
FHLMC Series 16 Class D		10.00			10/15/2019		31,833		35,826
FHLMC Series 1671 Class 1671-TA ±		0.75			02/15/2024		89,100		89,238
FHLMC Series 2882 Class TF ±		0.50			10/15/2034		6,995,357		6,973,238
FHLMC Series 3221 Class VA		5.00			09/15/2017		7,477,242		8,220,913
FHLMC Series R008 Class FK ±		0.65			07/15/2023		4,958,002		4,957,125
FHLMC Series T-57 Class 1A1		6.50			07/25/2043		2,260,143		2,575,417
FHLMC Series T-67 Class 1A1C ±		3.12			03/25/2036		3,293,713		3,485,160
FHLMC Series T-67 Class 2A1C ±		3.08			03/25/2036		4,251,146		4,498,244
FHLMC Series T-75 Class A1 ±		0.28			12/25/2036		8,754,557		8,705,215

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage Government Securities Fund 11

Security Name	Interest Rate			Maturity Date		Principal		Value
Agency Securities (continued)
FHLMC Structured Pass-Through Securities Series T-15 Class A6 ±		0.71	%		11/25/2028	$	337,487	$	321,336
FHLMC Structured Pass-Through Securities Series T-23 Class A ±		0.52			05/25/2030		1,345,177		1,268,710
FHLMC Structured Pass-Through Securities Series T-35 Class A ±		0.52			09/25/2031		603,613		555,547
FHLMC Structured Pass-Through Securities Series T-42 Class A6		9.50			02/25/2042		1,676,863		1,997,023
FHLMC Structured Pass-Through Securities Series T-55 Class 2A1 ±		2.97			03/25/2043		742,536		699,433
FHLMC Structured Pass-Through Securities Series T-57 Class 2A1 ±		3.53			07/25/2043		4,397,363		4,488,989
FICO Series D-P (z)		2.11			09/26/2019		15,000,000		12,781,365
FNMA ±		2.23			05/01/2036		3,513,603		3,707,253
FNMA ±		2.30			11/01/2031		329,110		346,237
FNMA ±		2.33			09/01/2031		133,774		140,665
FNMA ±		2.34			12/01/2035		3,458,184		3,666,692
FNMA		2.38			07/28/2015		29,170,000		30,908,678
FNMA		2.38			01/13/2022		10,415,000		10,533,012
FNMA ±		2.39			12/01/2034		2,787,208		2,942,030
FNMA ±		2.39			01/01/2033		202,578		205,425
FNMA ±		2.43			12/01/2040		112,394		118,901
FNMA ±		2.44			04/01/2032		228,170		240,115
FNMA ±		2.44			09/01/2031		552,194		581,298
FNMA ±		2.48			09/01/2036		2,734,467		2,910,653
FNMA ±		2.51			08/01/2036		3,713,058		3,951,699
FNMA ±		2.54			06/01/2032		251,254		252,883
FNMA ±		2.55			06/01/2034		1,276,439		1,345,167
FNMA ±		2.60			10/01/2027		484,202		515,710
FNMA ±		2.70			05/01/2036		5,559,139		5,774,189
FNMA ±		3.10			09/01/2027		1,203,079		1,259,717
FNMA ±		3.13			07/01/2026		736,978		785,229
FNMA ±		3.16			04/01/2033		145,631		153,972
FNMA ±		3.26			02/01/2027		2,126,978		2,254,335
FNMA ±		3.39			05/01/2036		2,740,909		2,864,001
FNMA		3.50			02/01/2026		8,283,230		8,695,173
FNMA		4.00			05/01/2021		3,836,912		4,094,876
FNMA %%		4.00			04/25/2024		16,840,000		17,829,350
FNMA %%		4.00			05/25/2040		126,845,000		133,484,549
FNMA		4.15			07/01/2014		10,627,489		11,248,316
FNMA ±		4.32			09/01/2028		1,043,361		1,083,701
FNMA ±		4.49			07/01/2033		175,174		176,348
FNMA		4.50			08/01/2018		3,961,725		4,259,650
FNMA		4.50			12/01/2018		2,815,860		3,027,615
FNMA %%		4.50			03/25/2021		14,000,000		14,982,187
FNMA %%		4.50			05/25/2039		101,917,000		108,621,223
FNMA		4.62			07/01/2013		7,651,432		7,925,453
FNMA		4.68			02/01/2020		3,352,510		3,800,139
FNMA		4.79			05/01/2019		2,258,609		2,557,881
FNMA		5.00			12/01/2018		2,188,807		2,368,113
FNMA %%		5.00			05/25/2019		16,840,000		18,145,100
FNMA		5.00			03/01/2034		11,449,856		12,380,412
FNMA		5.00			02/01/2036		14,709,673		15,902,865
FNMA		5.00			08/01/2040		15,119,505		16,338,853
FNMA		5.00			08/01/2040		75,876,019		81,995,220
FNMA		5.03			05/01/2015		6,569,886		7,190,469

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

12 Wells Fargo Advantage Government Securities Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Agency Securities (continued)
FNMA		5.22	%		10/01/2015	$	3,386,803	$	3,724,009
FNMA		5.24			12/01/2012		136,612		135,774
FNMA		5.39			01/01/2024		3,112,255		3,601,250
FNMA		5.50			06/01/2016		706,682		769,344
FNMA %%		5.50			10/25/2019		1,060,000		1,152,916
FNMA		5.50			01/01/2025		859,358		938,235
FNMA		5.50			01/01/2025		3,103,811		3,386,757
FNMA		5.50			09/01/2033		8,418,368		9,202,705
FNMA		5.50			09/01/2033		5,845,670		6,390,309
FNMA		5.50			06/01/2034		20,239,522		22,156,855
FNMA		5.50			08/01/2035		5,756,128		6,288,827
FNMA		5.50			01/01/2037		6,007,572		6,563,540
FNMA		5.55			05/01/2016		3,189,438		3,603,068
FNMA		5.55			09/01/2019		4,205,978		4,414,135
FNMA		5.60			11/01/2013		532,811		560,506
FNMA		5.61			02/01/2021		3,504,741		4,029,232
FNMA		5.63			02/01/2018		1,123,032		1,299,332
FNMA		5.66			12/01/2016		1,732,000		1,984,597
FNMA		5.67			03/01/2016		6,361,134		7,155,827
FNMA		5.67			11/01/2021		5,744,837		6,589,869
FNMA		5.70			03/01/2016		975,099		1,097,783
FNMA		5.75			05/01/2021		3,674,105		4,070,347
FNMA		5.79			10/01/2017		1,114,567		1,286,315
FNMA		5.95			06/01/2024		1,855,463		2,215,267
FNMA ±		5.99			09/01/2018		1,733,000		1,870,205
FNMA		6.00			12/01/2013		131,845		132,869
FNMA		6.00			05/01/2016		1,019,052		1,098,224
FNMA		6.00			03/01/2024		265,879		294,052
FNMA		6.00			02/01/2035		3,355,129		3,744,189
FNMA %%		6.00			08/25/2035		40,080,000		44,094,261
FNMA		6.00			11/01/2037		5,066,473		5,581,149
FNMA		6.00			08/01/2038		15,294,653		16,848,357
FNMA		6.00			12/01/2038		1,673,923		1,843,968
FNMA		6.08			01/01/2019		2,220,588		2,320,455
FNMA		6.50			06/01/2017		459,679		505,575
FNMA		6.50			01/01/2024		118,443		132,879
FNMA		6.50			03/01/2028		65,572		75,481
FNMA		6.50			12/01/2029		1,031,453		1,181,842
FNMA		6.50			11/01/2031		250,461		288,148
FNMA		6.50			07/01/2036		2,555,171		2,898,979
FNMA		6.50			07/01/2036		2,680,248		3,040,885
FNMA		6.50			09/01/2037		789,117		880,993
FNMA		6.50			09/01/2037		737,313		823,157
FNMA		6.50			07/25/2042		3,246,539		3,670,189
FNMA		6.65			05/01/2016		1,494,251		1,704,035
FNMA		7.00			11/01/2026		24,756		28,390
FNMA		7.00			09/01/2031		7,090		8,280
FNMA		7.00			01/01/2032		8,508		9,936
FNMA		7.00			02/01/2032		321,871		375,877
FNMA		7.00			02/01/2032		53,793		62,794

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage Government Securities Fund 13

Security Name	Interest Rate			Maturity Date		Principal		Value
Agency Securities (continued)
FNMA		7.00	%		10/01/2032	$	676,984	$	790,688
FNMA		7.00			02/01/2034		8,707		10,132
FNMA		7.00			04/01/2034		611,806		712,984
FNMA		7.00			12/01/2034		73,289		85,290
FNMA		7.00			06/01/2035		10,888		12,644
FNMA		7.00			01/01/2036		40,600		47,148
FNMA		7.00			09/01/2036		892,190		1,033,725
FNMA		7.00			07/01/2047		397,590		450,856
FNMA		7.48			01/01/2025		1,009,509		1,013,769
FNMA		7.50			07/01/2015		16,033		16,250
FNMA		7.50			09/01/2031		252,616		304,682
FNMA		7.50			11/25/2031		1,325,463		1,526,557
FNMA		7.50			02/01/2032		91,760		110,722
FNMA		7.50			10/01/2037		5,874,340		7,101,395
FNMA		8.00			06/01/2012		41,383		41,558
FNMA		8.00			11/01/2013		3,658		3,690
FNMA		8.00			08/01/2020		16,446		16,495
FNMA		8.00			05/01/2027		70,765		74,985
FNMA		8.00			10/01/2027		17,338		17,390
FNMA		8.00			06/01/2028		14,490		17,354
FNMA		8.00			01/01/2030		24,437		24,509
FNMA		8.00			02/01/2030		266,864		323,848
FNMA		8.00			09/01/2040		2,871,382		3,457,215
FNMA		8.50			12/01/2014		733		735
FNMA		8.50			05/01/2017		478,158		537,372
FNMA		8.50			05/01/2017		11,496		12,862
FNMA		8.50			08/01/2024		60,587		73,357
FNMA		8.50			05/01/2026		377,667		456,624
FNMA		8.50			07/01/2026		37,503		40,690
FNMA		8.50			08/01/2026		19,040		19,689
FNMA		8.50			09/01/2026		828		1,007
FNMA		8.50			10/01/2026		41,044		42,278
FNMA		8.50			10/01/2026		426		454
FNMA		8.50			10/01/2026		11,718		11,758
FNMA		8.50			11/01/2026		127,576		155,009
FNMA		8.50			11/01/2026		13,712		15,166
FNMA		8.50			11/01/2026		7,150		7,190
FNMA		8.50			12/01/2026		396,334		482,806
FNMA		8.50			12/01/2026		39,673		48,504
FNMA		8.50			12/01/2026		372		377
FNMA		8.50			01/01/2027		5,900		6,368
FNMA		8.50			02/01/2027		877		1,072
FNMA		8.50			02/01/2027		10,574		10,773
FNMA		8.50			03/01/2027		1,648		2,020
FNMA		8.50			03/01/2027		3,290		3,332
FNMA		8.50			06/01/2027		858,175		1,046,052
FNMA		8.50			07/01/2029		1,036		1,052
FNMA		8.50			08/01/2029		34,215		37,282
FNMA		9.00			03/01/2021		95,541		110,639
FNMA		9.00			06/01/2021		343		406

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

14 Wells Fargo Advantage Government Securities Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Agency Securities (continued)
FNMA		9.00	%		07/01/2021	$	170,721	$	194,691
FNMA		9.00			08/01/2021		497		595
FNMA		9.00			10/01/2021		102,006		115,814
FNMA		9.00			01/01/2025		3,299		3,407
FNMA		9.00			01/01/2025		106		109
FNMA		9.00			01/01/2025		47,868		58,706
FNMA		9.00			02/01/2025		13,229		13,412
FNMA		9.00			03/01/2025		2,052		2,178
FNMA		9.00			03/01/2025		4,618		4,937
FNMA		9.00			03/01/2025		30,256		30,368
FNMA		9.00			03/01/2025		1,872		1,894
FNMA		9.00			04/01/2025		4,984		5,064
FNMA		9.00			07/01/2028		78,901		94,856
FNMA		9.50			11/01/2020		434		522
FNMA		9.50			12/15/2020		148,826		177,051
FNMA		9.50			01/01/2021		40,167		42,626
FNMA		9.50			06/01/2022		13,141		15,649
FNMA		9.50			07/01/2028		150,065		184,117
FNMA		10.00			12/01/2020		223,301		264,244
FNMA		11.00			02/01/2019		22,614		22,733
FNMA		11.00			10/15/2020		30,243		34,633
FNMA		11.25			02/01/2016		6,284		6,318
FNMA		12.00			07/15/2014		82,624		93,023
FNMA Grantor Trust Series 2000-T6 Class A2		9.50			06/25/2030		1,689,651		1,972,055
FNMA Grantor Trust Series 2001-T10 Class A3		9.50			12/25/2041		2,934,216		3,503,267
FNMA Grantor Trust Series 2001-T12 Class A3		9.50			08/25/2041		774,087		933,224
FNMA Grantor Trust Series 2001-T8 Class A3 ±		3.87			07/25/2041		1,933,402		1,956,886
FNMA Grantor Trust Series 2002-T11 Class B		5.34			04/25/2012		15,385,044		15,432,907
FNMA Grantor Trust Series 2002-T12 Class A5 ±		3.59			10/25/2041		2,082,224		2,111,245
FNMA Grantor Trust Series 2002-T19 Class A1		6.50			07/25/2042		8,641,459		9,916,708
FNMA Grantor Trust Series 2002-T5 Class A1 ±		0.48			05/25/2032		484,440		463,235
FNMA Grantor Trust Series 2003-T1 Class B		4.49			11/25/2012		15,565,000		15,906,481
FNMA Grantor Trust Series 2003-T2 Class A1 ±		0.52			03/25/2033		410,829		394,694
FNMA Grantor Trust Series 2004-T1 Class 1A2		6.50			01/25/2044		1,355,308		1,529,931
FNMA Series 1988-2 Class Z		10.10			02/25/2018		86,938		97,199
FNMA Series 1988-7 Class Z		9.25			04/25/2018		55,897		62,340
FNMA Series 1989-10 Class Z		9.50			03/25/2019		320,284		371,178
FNMA Series 1989-100 Class Z		8.75			12/25/2019		280,124		317,896
FNMA Series 1989-12 Class Y		10.00			03/25/2019		593,566		696,059
FNMA Series 1989-22 Class G		10.00			05/25/2019		377,234		441,052
FNMA Series 1989-63 Class Z		9.40			10/25/2019		57,601		64,601
FNMA Series 1989-98 Class E		9.20			12/25/2019		119,155		134,338
FNMA Series 1990-144 Class W		9.50			12/25/2020		203,309		238,078
FNMA Series 1990-75 Class Z		9.50			07/25/2020		222,567		261,793
FNMA Series 1990-84 Class Y		9.00			07/25/2020		72,987		83,726
FNMA Series 1990-96 Class Z		9.67			08/25/2020		323,195		380,649
FNMA Series 1991-5 Class Z		8.75			01/25/2021		107,131		123,160
FNMA Series 1991-85 Class Z		8.00			06/25/2021		324,677		359,019
FNMA Series 1992-45 Class Z		8.00			04/25/2022		275,641		328,366
FNMA Series 2001-T4 Class A1		7.50			07/25/2041		1,497,033		1,748,157

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage Government Securities Fund 15

Security Name	Interest Rate			Maturity Date		Principal		Value
Agency Securities (continued)
FNMA Series 2003-90 Class FL ±		0.69	%		03/25/2031	$	3,115,947	$	3,117,988
FNMA Series 2003-W1 Class 1A1 ±		6.27			12/25/2042		1,281,619		1,463,668
FNMA Series 2003-W19 Class 1A6		5.29			11/25/2033		2,510,841		2,607,436
FNMA Series 2004-W1 Class 2A2		7.00			12/25/2033		2,883,405		3,358,251
FNMA Series 2004-W4 Class A9		5.50			06/25/2034		8,565,000		8,786,307
FNMA Series 2005-116 Class TU		5.50			12/25/2016		1,312,713		1,332,917
FNMA Series 2005-71 Class DB		4.50			08/25/2025		4,000,000		4,355,142
FNMA Series 2007-2 Class FA ±		0.44			02/25/2037		2,327,559		2,316,092
FNMA Series 2007-W10 Class 2A ±		6.21			08/25/2047		1,902,878		2,147,380
FNMA Series 2009-108 Class DE		4.50			08/25/2027		1,378,273		1,430,543
FNMA Series G-8 Class E		9.00			04/25/2021		289,980		332,723
FNMA Series G92-30 Class Z		7.00			06/25/2022		608,052		675,433
FNMA STRIPS Series 161 Class 2		8.50			07/25/2022		123,361		37,450
FNMA STRIPS Series 265 Class 2		9.00			03/01/2024		307,696		364,184
FNMA Whole Loan Series 1999-W6 Class A ±		9.18			09/25/2028		93,066		103,400
FNMA Whole Loan Series 2002-W4 Class A4		6.25			05/25/2042		1,425,695		1,603,354
FNMA Whole Loan Series 2003-W11 Class A1 ±		3.10			06/25/2033		313,984		313,916
FNMA Whole Loan Series 2003-W3 Class 1A4 ±		3.41			08/25/2042		4,901,660		5,229,459
FNMA Whole Loan Series 2003-W5 Class A ±		0.46			04/25/2033		807,623		768,492
FNMA Whole Loan Series 2003-W6 Class 6A ±		3.19			08/25/2042		3,732,877		4,044,546
FNMA Whole Loan Series 2003-W6 Class PT4 ±		9.40			10/25/2042		3,576,242		4,215,518
FNMA Whole Loan Series 2003-W8 Class PT1 ±		8.68			12/25/2042		1,642,884		1,899,328
FNMA Whole Loan Series 2003-W9 Class A ±		0.48			06/25/2033		230,212		218,948
FNMA Whole Loan Series 2004-W15 Class 1A3		7.00			08/25/2044		2,936,414		3,411,922
GNMA ±		3.00			08/20/2020		328,466		342,682
GNMA ±		3.00			11/20/2020		206,098		215,534
GNMA %%		4.00			02/20/2041		21,665,000		23,330,497
GNMA %%		4.50			05/20/2040		49,420,000		53,867,805
GNMA		5.00			07/20/2040		17,197,225		18,980,442
GNMA		6.00			01/15/2013		13,165		14,439
GNMA		6.00			02/15/2013		1,206		1,205
GNMA		6.00			08/20/2034		1,153,496		1,300,293
GNMA		6.50			12/15/2025		50,562		57,916
GNMA		6.50			04/15/2029		1,593		1,859
GNMA		6.50			05/15/2029		4,621		5,391
GNMA		6.50			05/15/2031		3,777		4,407
GNMA		6.50			07/15/2032		4,279		4,992
GNMA		6.50			09/20/2033		177,757		204,072
GNMA		7.00			12/15/2022		86,400		99,224
GNMA		7.00			05/15/2026		7,235		8,451
GNMA		7.00			03/15/2028		83,193		97,930
GNMA		7.00			01/15/2031		519		616
GNMA		7.00			04/15/2031		11,041		13,106
GNMA		7.00			04/15/2031		1,435		1,704
GNMA		7.00			08/15/2031		23,905		28,377
GNMA		7.00			03/15/2032		17,743		21,112
GNMA		7.00			05/15/2032		4,133		4,918
GNMA		7.34			10/20/2021		78,987		90,193
GNMA		7.34			12/20/2021		28,226		32,231
GNMA		7.34			02/20/2022		29,148		33,465

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

16 Wells Fargo Advantage Government Securities Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Agency Securities (continued)
FNMA		5.12	%		01/01/2017	$	11,700,000	$	13,160,360
GNMA		7.34			04/20/2022		33,198		38,115
GNMA		7.34			09/20/2022		141,613		162,586
GNMA		8.00			04/15/2023		3,707		3,720
GNMA		8.00			06/15/2023		8,241		9,785
GNMA		8.00			12/15/2023		968,608		1,155,431
GNMA		8.00			02/15/2024		1,910		2,274
GNMA		8.00			09/15/2024		5,783		6,139
GNMA		8.00			06/15/2025		205		217
GNMA		8.00			06/15/2025		21,506		21,735
GNMA		8.35			04/15/2020		737,228		850,894
GNMA		8.40			05/15/2020		344,504		403,210
GNMA		8.50			07/15/2016		1,363		1,368
GNMA		9.00			12/15/2016		6,960		6,990
GNMA		9.00			03/15/2020		7,198		7,229
GNMA		9.00			04/15/2021		3,726		3,843
GNMA		9.50			10/20/2019		194,238		224,462
GNMA		10.00			12/15/2018		10,565		10,618
GNMA		12.50			04/15/2019		58,590		59,588
GNMA		13.00			11/15/2014		1,604		1,786
GNMA		14.00			09/20/2014		1,720		1,733
GNMA		15.00			07/15/2012		942		950
GNMA Series 2002-53 Class IO ±(c)		0.18			04/16/2042		29,635,339		3,734
GNMA Series 2004-20 Class B		4.78			04/16/2034		56,478		56,532
GNMA Series 2005-23 Class IO ±(c)		0.40			06/17/2045		103,014,614		2,238,920
GNMA Series 2005-90 Class A		3.76			09/16/2028		8,150,439		8,339,481
GNMA Series 2006-32 Class C ±		5.46			11/16/2038		12,510,000		13,963,312
GNMA Series 2006-32 Class XM ±(c)		0.24			11/16/2045		70,510,783		922,493
GNMA Series 2006-68 Class D ±		5.31			12/16/2037		12,520,000		13,833,185
GNMA Series 2008-22 Class XM ±(c)		1.20			02/16/2050		201,032,938		7,504,560
GNMA Series 2008-80 Class B		4.28			03/16/2033		15,122,751		15,343,543
GNMA Series 2010-105 Class QF ±		0.60			04/20/2039		338,467		338,471
GNMA Series 2010-74 Class B		3.81			08/16/2039		5,365,000		5,707,469
SBA ±		0.63			03/25/2013		88,700		88,513
SBA (c)(a)		1.44			02/15/2018		555,069		11,212
SBA Series 1992- 6 Class A (c)(a)(i)		1.51			10/15/2017		1,646,419		30,179
TVA		5.38			04/01/2056		3,670,000		4,771,789
Total Agency Securities (Cost $1,331,456,539)									1,363,985,891
Corporate Bonds and Notes: 0.00%
Consumer Discretionary: 0.00%
Multiline Retail: 0.00%
Sears Roebuck Acceptance Corporation		6.70			04/15/2012		172		171
Total Corporate Bonds and Notes (Cost $0)									171
Municipal Bonds and Notes: 0.42%
Arkansas: 0.01%
Arkansas Development Finance Authority (Housing Revenue, GNMA Insured)		9.75			11/15/2014		233,354		245,720

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage Government Securities Fund 17

Security Name	Interest Rate			Maturity Date		Principal		Value
Texas: 0.41%
Retama TX Development Corporation (Miscellaneous Revenue)		10.00	%		12/15/2020	$	5,405,000	$	8,669,134
Total Municipal Bonds and Notes (Cost $7,431,281)									8,914,854
Non-Agency Mortgage Backed Securities: 4.71%
Bank of America Commercial Mortgage Incorporated Series 2006-2 Class A4 ±		5.73			05/10/2045		9,735,000		11,074,040
Citigroup Commercial Mortgage Trust Series 2006-C4 Class A3 ±		5.73			03/15/2049		10,188,000		11,606,058
Citigroup Commercial Mortgage Trust Series 2007-C6 Class A4 ±		5.70			12/10/2049		11,603,400		13,353,506
Commercial Mortgage Trust Pass-Through Certificates Series 2004-LB4A Class A4		4.58			10/15/2037		5,388,999		5,402,956
Commercial Mortgage Trust Pass-Through Certificates Series 2007-C9 Class A4 ±		5.81			12/10/2049		2,445,000		2,826,767
Credit Suisse Mortgage Capital Certificates Series 2006-C3 Class A3 ±		5.81			06/15/2038		8,755,000		9,871,543
Lehman Brothers UBS Commercial Mortgage Trust Series 2006-C1 Class A4		5.16			02/15/2031		10,276,000		11,461,799
Merrill Lynch Countrywide Commercial Mortgage Trust Series 2006-4 Class AM ±		5.20			12/12/2049		8,755,000		8,656,673
Merrill Lynch Mortgage Trust Series 2005-CKI1 Class A6 ±		5.22			11/12/2037		1,885,000		2,112,936
Morgan Stanley Capital I Series 2006-HQ8 Class A4 ±		5.42			03/12/2044		1,995,000		2,235,547
Nomura Asset Securities Corporation Series 1998-D6 Class A2 ±		7.31			03/15/2030		8,025,000		8,356,922
TIAA Real Estate CDO Limited Series 2007-C4 Class A3 ±		5.71			08/15/2039		11,460,000		12,393,784
Vendee Mortgage Trust Series 1995-1 Class 4 ±		8.79			02/15/2025		533,842		635,621
Vendee Mortgage Trust Series 1995-2C Class 3A ±		8.79			06/15/2025		775,786		924,357
Total Non-Agency Mortgage Backed Securities (Cost $97,350,013)									100,912,509
U.S. Treasury Securities: 22.57%
U.S. Treasury Bond		3.75			08/15/2041		23,355,000		26,434,941
U.S. Treasury Bond		4.38			05/15/2041		16,235,000		20,400,284
U.S. Treasury Bond		4.50			02/15/2036		18,650,000		23,668,006
U.S. Treasury Bond		4.63			02/15/2040		29,820,000		38,882,477
U.S. Treasury Bond		5.38			02/15/2031		9,690,000		13,487,269
U.S. Treasury Bond		6.25			08/15/2023		25,060,000		35,546,056
U.S. Treasury Bond		7.25			08/15/2022		20,950,000		31,447,919
U.S. Treasury Note		0.25			01/31/2014		62,225,000		62,169,122
U.S. Treasury Note		0.50			10/15/2014		100,725,000		101,008,239
U.S. Treasury Note		0.63			04/30/2013		11,450,000		11,503,678
U.S. Treasury Note		1.00			10/31/2016		33,095,000		33,400,089
U.S. Treasury Note		1.88			10/31/2017		8,780,000		9,177,155
U.S. Treasury Note «		2.00			11/15/2021		43,080,000		43,281,959
U.S. Treasury Note		2.25			07/31/2018		30,800,000		32,715,390
Total U.S. Treasury Securities (Cost $463,235,190)									483,122,584
Yankee Corporate Bonds and Notes: 7.46%
Financials: 7.46%
Commercial Banks: 7.46%
Bank Nederlandse Gemeenten 144A		2.50			01/11/2016		23,310,000		23,769,697
Bank of Nova Scotia 144A		1.65			10/29/2015		13,235,000		13,481,303
Bank of Nova Scotia 144A		2.15			08/03/2016		10,300,000		10,628,385
Canadian Imperial Bank «144A		0.90			09/19/2014		8,355,000		8,365,252

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

18 Wells Fargo Advantage Government Securities Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Commercial Banks (continued)
HSBC Bank plc «144A		1.63	%		07/07/2014	$	14,500,000	$	14,546,284
Kommunalbanken AS 144A		2.38			01/19/2016		10,135,000		10,503,914
Kommunalbanken AS 144A		2.75			05/05/2015		17,090,000		17,860,776
Landwirtsch Rentenbank «		2.50			02/15/2016		14,125,000		14,809,187
Nordea Eiendomskreditt 144A		1.88			04/07/2014		10,430,000		10,531,119
Swedbank Hypotek 144A		2.13			08/31/2016		12,110,000		12,111,538
Toronto Dominion Bank 144A		1.63			09/14/2016		9,200,000		9,281,558
Westpac Banking Corporation 144A		1.90			12/14/2012		13,660,000		13,783,719
Total Yankee Corporate Bonds and Notes (Cost $156,143,852)									159,672,732
Other: 0.34%
Gryphon Funding Limited, Pass-Through Entity (a)(i)(v)							5,094,336		1,375,471
VFNC Corporation, Pass-Through Entity, 0.24% ±(a)(i)144A(v)							13,559,668		5,830,657
Total Other (Cost $2,934,712)									7,206,128
	Yield
Short-Term Investments: 26.61%
U.S. Treasury Securities: 0.03%
U.S. Treasury Bill #		0.07			03/29/2012		600,000		599,965
						Shares
Investment Companies: 26.58%
Wells Fargo Advantage Government Money Market Fund, Institutional Class ##(l)(u)		0.01					537,572,549		537,572,549
Wells Fargo Securities Lending Cash Investments, LLC (v)(l)(u)(r)		0.15					31,466,405		31,466,405
									569,038,954
Total Short-Term Investments (Cost $569,638,946)									569,638,919

Total Investments in Securities
(Cost $2,628,190,533) *	125.82	%		2,693,453,788
Other Assets and Liabilities, Net	(25.82	)		(552,684,777	)
Total Net Assets	100.00	%	$	2,140,769,011

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage Government Securities Fund 19

± Variable rate investment.

%% Security issued on a when-issued (TBA) 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.

(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.

(z) Zero coupon security. Rate represents yield to maturity.

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

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

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

# All or a portion of this security is segregated as collateral for investments in derivative instruments.

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

(l) Investment in an affiliate.

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

(r) The investment company is exempt from registration under Section 3(c)(7) of the 1940 Act.

* Cost for federal income tax purposes is $2,632,848,726 and net unrealized appreciation (depreciation) consists of:

Gross unrealized appreciation	$	78,273,670
Gross unrealized depreciation		(17,668,608	)
Net unrealized appreciation	$	60,605,062

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

20 Wells Fargo Advantage Government Securities Fund Statement of Assets and Liabilities—February 29, 2012 (Unaudited)

Assets
Investments
In unaffiliated securities (including securities on loan), at value (see cost below)	$	2,124,414,834
In affiliated securities, at value (see cost below)		569,038,954
Total investments, at value (see cost below)		2,693,453,788
Receivable for investments sold		57,200,538
Principal paydown receivable		72,379
Receivable for Fund shares sold		1,668,185
Receivable for interest		6,731,439
Receivable for securities lending income		7,790
Prepaid expenses and other assets		73,940
Total assets		2,759,208,059
Liabilities
Dividends payable		333,100
Payable for investments purchased		580,433,462
Payable for Fund shares redeemed		1,850,642
Payable upon receipt of securities loaned		34,401,117
Payable for daily variation margin on open futures contracts		128,989
Advisory fee payable		563,175
Distribution fees payable		45,032
Due to other related parties		305,473
Accrued expenses and other liabilities		378,058
Total liabilities		618,439,048
Total net assets	$	2,140,769,011
NET ASSETS CONSIST OF
Paid-in capital	$	2,118,653,558
Overdistributed net investment income		(5,594,186	)
Accumulated net realized losses on investments		(37,512,287	)
Net unrealized gains on investments		65,221,926
Total net assets	$	2,140,769,011
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE1
Net assets – Class A	$	272,186,920
Shares outstanding – Class A		24,192,353
Net asset value per share – Class A		$11.25
Maximum offering price per share – Class A2		$11.78
Net assets – Class B	$	6,137,966
Shares outstanding – Class B		545,661
Net asset value per share – Class B		$11.25
Net assets – Class C	$	70,322,731
Shares outstanding – Class C		6,251,145
Net asset value per share – Class C		$11.25
Net assets – Administrator Class	$	287,079,550
Shares outstanding – Administrator Class		25,523,968
Net asset value per share – Administrator Class		$11.25
Net assets – Institutional Class	$	829,203,417
Shares outstanding – Institutional Class		73,763,529
Net asset value per share – Institutional Class		$11.24
Net assets – Investor Class	$	675,838,427
Shares outstanding – Investor Class		60,033,547
Net asset value per share – Investor Class		$11.26
Investments in unaffiliated securities, at cost	$	2,059,151,579
Investments in affiliated securities, at cost	$	569,038,954
Total investments, at cost	$	2,628,190,533
Securities on loan, at value	$	33,675,924

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—Six Months Ended February 29, 2012 (Unaudited) Wells Fargo Advantage Government Securities Fund 21

Investment income
Interest	$	26,409,096
Securities lending income, net		55,743
Income from affiliated securities		19,744
Total investment income		26,484,583
Expenses
Advisory fee		3,812,896
Administration fees
Fund level		518,060
Class A		213,362
Class B		5,333
Class C		50,958
Administrator Class		143,077
Institutional Class		309,427
Investor Class		641,679
Shareholder servicing fees
Class A		333,379
Class B		8,333
Class C		79,622
Administrator Class		351,823
Investor Class		844,314
Distribution fees
Class B		25,000
Class C		238,867
Custody and accounting fees		66,972
Professional fees		28,174
Registration fees		44,828
Shareholder report expenses		124,652
Trustees’ fees and expenses		6,004
Other fees and expenses		30,381
Total expenses		7,877,141
Less: Fee waivers and/or expense reimbursements		(402,443	)
Net expenses		7,474,698
Net investment income		19,009,885
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		27,258,267
Futures transactions		766,406
Net realized gains on investments		28,024,673
Net change in unrealized gains (losses) on:
Unaffiliated securities		(6,939,077	)
Futures transactions		(46,343	)
Net change in unrealized gains (losses) on investments		(6,985,420	)
Net realized and unrealized gains (losses) on investments		21,039,253
Net increase in net assets resulting from operations	$	40,049,138

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

22 Wells Fargo Advantage Government Securities Fund Statements of Changes in Net Assets

	Six Months Ended February 29, 2012 (Unaudited)						Year Ended August 31, 2011
Operations
Net investment income				$	19,009,885					$	54,069,018
Net realized gains on investments					28,024,673						41,311,018
Net change in unrealized gains (losses) on investments					(6,985,420	)					(24,528,273	)
Net increase in net assets resulting from operations					40,049,138						70,851,763
Distributions to shareholders from
Net investment income
Class A					(2,942,260	)					(8,922,685	)
Class B					(49,136	)					(209,776	)
Class C					(456,804	)					(1,391,847	)
Administrator Class					(3,468,767	)					(12,614,930	)
Institutional Class					(9,944,593	)					(23,113,683	)
Investor Class					(7,356,385	)					(24,546,230	)
Net realized gains
Class A					(1,482,998	)					0
Class B					(37,056	)					0
Class C					(358,176	)					0
Administrator Class					(1,606,587	)					0
Institutional Class					(4,364,227	)					0
Investor Class					(3,776,055	)					0
Total distributions to shareholders					(35,843,044	)					(70,799,151	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		2,192,597			24,691,436			1,994,278			21,916,728
Class B		38,481			433,338			44,410			492,586
Class C		1,575,759			17,733,974			1,814,121			20,009,882
Administrator Class		4,342,675			48,858,035			42,444,351			466,051,052
Institutional Class		18,207,123			204,640,599			39,552,223			435,595,163
Investor Class		6,863,308			77,301,755			21,217,913			234,732,980
					373,659,137						1,178,798,391
Reinvestment of distributions
Class A		330,545			3,719,659			661,776			7,275,643
Class B		5,834			65,613			14,450			158,713
Class C		24,682			277,599			45,777			503,112
Administrator Class		393,683			4,430,217			771,409			8,476,508
Institutional Class		1,105,390			12,429,854			1,779,094			19,540,860
Investor Class		944,667			10,638,825			1,922,418			21,145,957
					31,561,767						57,100,793
Payment for shares redeemed
Class A		(2,397,449	)		(27,032,442	)		(7,866,690	)		(86,331,974	)
Class B		(129,546	)		(1,458,552	)		(457,969	)		(5,016,817	)
Class C		(566,382	)		(6,373,548	)		(1,981,055	)		(21,699,976	)
Administrator Class		(3,828,139	)		(43,098,747	)		(51,432,220	)		(561,733,378	)
Institutional Class		(9,579,229	)		(107,931,935	)		(24,993,054	)		(275,257,423	)
Investor Class		(8,118,676	)		(91,442,720	)		(65,432,945	)		(719,783,492	)
					(277,337,944	)					(1,669,823,060	)
Net increase (decrease) in net assets resulting from capital share transactions					127,882,960						(433,923,876	)
Total increase (decrease) in net assets					132,089,054						(433,871,264	)
Net assets
Beginning of period					2,008,679,957						2,442,551,221
End of period				$	2,140,769,011					$	2,008,679,957
Overdistributed net investment income				$	(5,594,186	)				$	(386,126	)

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

Financial Highlights Wells Fargo Advantage Government Securities Fund 23

(For a share outstanding throughout each period)

	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,						Year Ended May 31,
Class A				2011			20101			2010			20092			20082			20072
Net asset value, beginning of period	$	11.23		$	11.16		$	10.89		$	10.71		$	10.45		$	10.22		$	10.15
Net investment income		0.10			0.25			0.06	3		0.29			0.39	3		0.48			0.48
Net realized and unrealized gains (losses) on investments		0.10			0.16			0.30			0.39			0.34			0.25			0.09
Total from investment operations		0.20			0.41			0.36			0.68			0.73			0.73			0.57
Distributions to shareholders from
Net investment income		(0.12	)		(0.34	)		(0.09	)		(0.41	)		(0.44	)		(0.50	)		(0.50	)
Net realized gains		(0.06	)		0.00			0.00			(0.09	)		(0.03	)		0.00			0.00
Total distributions to shareholders		(0.18	)		(0.34	)		(0.09	)		(0.50	)		(0.47	)		(0.50	)		(0.50	)
Net asset value, end of period	$	11.25		$	11.23		$	11.16		$	10.89		$	10.71		$	10.45		$	10.22
Total return4		1.85	%		3.75	%		3.29	%		6.48	%		7.17	%		7.21	%		5.71	%
Ratios to average net assets (annualized)
Gross expenses		0.86	%		0.85	%		0.86	%		0.89	%		0.90	%		1.03	%		1.06	%
Net expenses		0.86	%		0.85	%		0.86	%		0.89	%		0.90	%		0.90	%		0.92	%
Net investment income		1.70	%		2.31	%		2.10	%		2.71	%		3.65	%		4.54	%		4.64	%
Supplemental data
Portfolio turnover rate		135	%		268	%		89	%		194	%		368	%		263	%		159	%
Net assets, end of period (000’s omitted)		$272,187			$270,253			$326,800			$174,781			$181,342			$71,233			$59,760

1. 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.

2. On June 20, 2008, Advisor Class was renamed Class A.

3. Calculated based upon average shares outstanding

4. Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

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

24 Wells Fargo Advantage Government Securities Fund Financial Highlights

(For a share outstanding throughout each period)

	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,						Year Ended May 31,
CLASS B				2011			20101			2010			20091
Net asset value, beginning of period	$	11.23		$	11.16		$	10.89		$	10.70		$	10.32
Net investment income		0.05			0.15			0.04	3		0.24	3		0.273
Net realized and unrealized gains (losses) on investments		0.11			0.17			0.30			0.37			0.45
Total from investment operations		0.16			0.32			0.34			0.61			0.72
Distributions to shareholders from
Net investment income		(0.08	)		(0.25	)		(0.07	)		(0.33	)		(0.31	)
Net realized gains		(0.06	)		0.00			0.00			(0.09	)		(0.03	)
Total distributions to shareholders		(0.14	)		(0.25	)		(0.07	)		(0.42	)		(0.34	)
Net asset value, end of period	$	11.25		$	11.23		$	11.16		$	10.89		$	10.70
Total return4		1.47	%		2.98	%		3.10	%		5.80	%		7.00	%
Ratios to average net assets (annualized)
Gross expenses		1.61	%		1.60	%		1.60	%		1.63	%		1.65	%
Net expenses		1.61	%		1.60	%		1.60	%		1.63	%		1.65	%
Net investment income		0.97	%		1.55	%		1.29	%		2.09	%		2.94	%
Supplemental data
Portfolio turnover rate		135	%		268	%		89	%		194	%		368	%
Net assets, end of period (000’s omitted)		$6,138			$7,083			$11,495			$2,159			$5,297

1. 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.

2. Class commenced operations on July 18, 2008.

3. Calculated based upon average shares outstanding.

4. Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

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

Financial Highlights Wells Fargo Advantage Government Securities Fund 25

(For a share outstanding throughout each period)

	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,						Year Ended May 31,
Class C				2011			20101			2010			2009			2008			2007
Net asset value, beginning of period	$	11.23		$	11.16		$	10.89		$	10.70		$	10.45		$	10.22		$	10.15
Net investment income		0.06			0.17			0.04	2		0.23			0.30	2		0.39			0.40
Net realized and unrealized gains (losses) on investments		0.10			0.15			0.30			0.38			0.35			0.25			0.09
Total from investment operations		0.16			0.32			0.34			0.61			0.65			0.64			0.49
Distributions to shareholders from
Net investment income		(0.08	)		(0.25	)		(0.07	)		(0.33	)		(0.37	)		(0.41	)		(0.42	)
Net realized gains		(0.06	)		0.00			0.00			(0.09	)		(0.03	)		0.00			0.00
Total distributions to shareholders		(0.14	)		(0.25	)		(0.07	)		(0.42	)		(0.40	)		(0.41	)		(0.42	)
Net asset value, end of period	$	11.25		$	11.23		$	11.16		$	10.89		$	10.70		$	10.45		$	10.22
Total return3		1.47	%		2.98	%		3.09	%		5.78	%		6.28	%		6.36	%		4.89	%
Ratios to average net assets (annualized)
Gross expenses		1.61	%		1.60	%		1.61	%		1.64	%		1.63	%		1.77	%		1.81	%
Net expenses		1.61	%		1.60	%		1.61	%		1.64	%		1.63	%		1.70	%		1.70	%
Net investment income		0.93	%		1.56	%		1.35	%		1.89	%		2.78	%		3.69	%		3.87	%
Supplemental data
Portfolio turnover rate		135	%		268	%		89	%		194	%		368	%		263	%		159	%
Net assets, end of period (000’s omitted)		$70,323			$58,576			$59,580			$34,927			$21,783			$2,595			$1,335

1. 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.

2. Calculated based upon average shares outstanding.

3. Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

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

26 Wells Fargo Advantage Government Securities Fund Financial Highlights

(For a share outstanding throughout each period)

	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,						Year Ended May 31,
Administrator Class				2011			20101			2010			2009			2008			2007
Net asset value, beginning of period	$	11.23		$	11.16		$	10.89		$	10.70		$	10.45		$	10.22		$	10.15
Net investment income		0.11			0.27	2		0.06	2		0.32			0.41	2		0.49			0.50
Net realized and unrealized gains (losses) on investments		0.11			0.16			0.30			0.39			0.34			0.26			0.09
Total from investment operations		0.22			0.43			0.36			0.71			0.75			0.75			0.59
Distributions to shareholders from
Net investment income		(0.14	)		(0.36	)		(0.09	)		(0.43	)		(0.47	)		(0.52	)		(0.52	)
Net realized gains		(0.06	)		0.00			0.00			(0.09	)		(0.03	)		0.00			0.00
Total distributions to shareholders		(0.20	)		(0.36	)		(0.09	)		(0.52	)		(0.50	)		(0.52	)		(0.52	)
Net asset value, end of period	$	11.25		$	11.23		$	11.16		$	10.89		$	10.70		$	10.45		$	10.22
Total return3		1.95	%		3.97	%		3.34	%		6.78	%		7.28	%		7.42	%		5.94	%
Ratios to average net assets (annualized)
Gross expenses		0.79	%		0.74	%		0.79	%		0.81	%		0.81	%		0.85	%		0.88	%
Net expenses		0.64	%		0.64	%		0.67	%		0.70	%		0.70	%		0.70	%		0.70	%
Net investment income		1.92	%		2.50	%		2.30	%		2.90	%		3.86	%		4.72	%		4.87	%
Supplemental data
Portfolio turnover rate		135	%		268	%		89	%		194	%		368	%		263	%		159	%
Net assets, end of period (000’s omitted)		$287,080			$276,334			$366,430			$243,760			$266,579			$123,993			$117,347

1. 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.

2. Calculated based upon average shares outstanding.

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

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

Financial Highlights Wells Fargo Advantage Government Securities Fund 27

(For a share outstanding throughout each period)

	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,						Year Ended May 31,
Institutional Class				2011			20101			2010			2009			2008			2007
Net asset value, beginning of period	$	11.22		$	11.15		$	10.88		$	10.70		$	10.44		$	10.21		$	10.14
Net investment income		0.12			0.30			0.07	2		0.32	2		0.44	2		0.52			0.54
Net realized and unrealized gains (losses) on investments		0.10			0.15			0.30			0.41			0.34			0.25			0.08
Total from investment operations		0.22			0.45			0.37			0.73			0.78			0.77			0.62
Distributions to shareholders from
Net investment income		(0.14	)		(0.38	)		(0.10	)		(0.46	)		(0.49	)		(0.54	)		(0.55	)
Net realized gains		(0.06	)		0.00			0.00			(0.09	)		(0.03	)		0.00			0.00
Total distributions to shareholders		(0.20	)		(0.38	)		(0.10	)		(0.55	)		(0.52	)		(0.54	)		(0.55	)
Net asset value, end of period	$	11.24		$	11.22		$	11.15		$	10.88		$	10.70		$	10.44		$	10.21
Total return3		2.04	%		4.14	%		3.39	%		6.92	%		7.62	%		7.66	%		6.17	%
Ratios to average net assets (annualized)
Gross expenses		0.53	%		0.52	%		0.52	%		0.54	%		0.56	%		0.59	%		0.61	%
Net expenses		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%
Net investment income		2.07	%		2.71	%		2.52	%		3.06	%		4.14	%		4.96	%		5.08	%
Supplemental data
Portfolio turnover rate		135	%		268	%		89	%		194	%		368	%		263	%		159	%
Net assets, end of period (000’s omitted)		$829,203			$718,411			$531,890			$463,726			$313,486			$326,015			$236,424

1. 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.

2. Calculated based upon average shares outstanding.

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

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

28 Wells Fargo Advantage Government Securities Fund Financial Highlights

(For a share outstanding throughout each period)

	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,						Year Ended May 31,
Investor Class				2011			20101			2010			2009			2008			2007
Net asset value, beginning of period	$	11.24		$	11.17		$	10.90		$	10.71		$	10.46		$	10.22		$	10.16
Net investment income		0.09			0.25	2		0.06	2		0.29			0.39	2		0.47			0.47
Net realized and unrealized gains (losses) on investments		0.11			0.15			0.30			0.40			0.33			0.26			0.09
Total from investment operations		0.20			0.40			0.36			0.69			0.72			0.73			0.56
Distributions to shareholders from
Net investment income		(0.12	)		(0.33	)		(0.09	)		(0.41	)		(0.44	)		(0.49	)		(0.50	)
Net realized gains		(0.06	)		0.00			0.00			(0.09	)		(0.03	)		0.00			0.00
Total distributions to shareholders		(0.18	)		(0.33	)		(0.09	)		(0.50	)		(0.47	)		(0.49	)		(0.50	)
Net asset value, end of period	$	11.26		$	11.24		$	11.17		$	10.90		$	10.71		$	10.46		$	10.22
Total return3		1.83	%		3.72	%		3.28	%		6.53	%		7.02	%		7.26	%		5.55	%
Ratios to average net assets (annualized)
Gross expenses		0.89	%		0.88	%		0.90	%		0.94	%		0.94	%		1.16	%		1.23	%
Net expenses		0.89	%		0.88	%		0.90	%		0.94	%		0.94	%		0.95	%		0.97	%
Net investment income		1.68	%		2.25	%		2.10	%		2.66	%		3.65	%		4.48	%		4.59	%
Supplemental data
Portfolio turnover rate		135	%		268	%		89	%		194	%		368	%		263	%		159	%
Net assets, end of period (000’s omitted)		$675,838			$678,022			$1,146,356			$1,024,088			$1,134,770			$869,009			$733,191

1. 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.

2. Calculated based upon average shares outstanding

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

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

Notes to Financial Statements (Unaudited) Wells Fargo Advantage Government Securities Fund 29

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 Wells Fargo Advantage Government Securities Fund (the “Fund”) which 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 the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Securities valuation

Fixed income securities with original maturities exceeding 60 days are valued based on evaluated prices received from an independent pricing service approved by the 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 Fund’s 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.

Investments in open-end mutual funds and non-registered investment companies are generally valued at net asset value.

Investments which are not valued using any of the methods discussed above, are valued at their fair value, as determined by procedures established in good faith and approved by the Board of Trustees.

Security loans

The Fund may lend its securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. The Fund continues to receive interest or dividends on the securities loaned. The 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 a securities lending transaction, the net asset value of the 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 the instrument in which collateral is invested. The amount of securities lending activity undertaken by the Fund fluctuates from time to time. In the event of default or bankruptcy by the borrower, the Fund may be prevented from recovering the loaned securities or gaining access to the collateral or may experience delays or costs in doing so. In 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 Fund lends its securities through an unaffiliated securities lending agent. Cash collateral received in connection with its 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 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 Statement of Operations.

30 Wells Fargo Advantage Government Securities Fund Notes to Financial Statements (Unaudited)

For Wells Fargo Advantage Funds that participated in securities lending activity prior to February 13, 2009, certain structured investment vehicles purchased in a joint account by the former securities lending agent defaulted or were impaired. Certain of the Wells Fargo Advantage Funds still hold ownership interest in these structured investment vehicles, which have since been restructured as pass-through securities. If the Fund holds an ownership interest in such pass-through securities, information regarding this ownership interest can be found in the Portfolio of Investments under the category “Other”.

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.

Futures contracts

The Fund may be subject to interest rate risk in the normal course of pursuing its investment objectives. The Fund 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 when available. 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 Statement of Assets and Liabilities as an asset or liability and in the Statement 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.

Mortgage dollar roll transactions

The Fund may engage in mortgage dollar roll transactions with respect to mortgage-backed securities issued by Government National Mortgage Association (GNMA), Federal National Mortgage Association (FNMA) and Federal Home Loan Mortgage Corporation (FHLMC). In a mortgage dollar roll transaction, the Fund sells a mortgage-backed security to a financial institution, such as a bank or broker-dealer and simultaneously agrees to repurchase a substantially similar security from the institution at a later date at an agreed upon price. The mortgage-backed securities that are repurchased will bear the same interest rate as those sold, but generally will be collateralized by different pools of mortgages with different pre-payment histories. During the roll period, the Fund foregoes principal and interest paid on the securities. The Fund is compensated by the difference between the current sales price and the forward price for the future purchase as well as by the earnings on the cash proceeds of the initial sale. Mortgage dollar rolls may be renewed without physical delivery of the securities subject to the contract. The Funds account for TBA dollar roll transactions as purchases and sales.

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.

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.

Notes to Financial Statements (Unaudited) Wells Fargo Advantage Government Securities Fund 31

Federal and other taxes

The Fund intends to continue to qualify as a regulated investment company by distributing substantially all of its investment company taxable income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.

The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities.

Under the recently enacted Regulated Investment Company Modernization Act of 2010, the Fund is permitted to carry forward capital losses incurred in taxable years which began after December 22, 2010 for an unlimited period. However, any losses incurred are 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.

As of August 31, 2011, the Fund had net capital loss carryforwards, which were available to offset future net realized capital gains, in the amount of $50,306,986 with $22,887,731 expiring in 2015, $3,431,622 expiring in 2016 and $23,987,633 expiring in 2017.

As of August 31, 2011, the Fund had $2,517,298 of current year deferred post-October capital losses, which would be treated as realized for tax purposes on the first day of the succeeding year.

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 significant unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:

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

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

n Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

32 Wells Fargo Advantage Government Securities Fund Notes to Financial Statements (Unaudited)

As of February 29, 2012, the inputs used in valuing the Fund’s assets, which are carried at fair value, were as follows:

Investments in Securities	Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Agency securities	$	0	$	1,363,681,228	$	304,663	$	1,363,985,891
Corporate bonds and notes		0		171		0		171
Municipal bonds and notes		0		8,914,854		0		8,914,854
Non-agency mortgage backed securities		0		100,912,509		0		100,912,509
U.S. Treasury securities		483,122,584		0		0		483,122,584
Yankee corporate bonds and notes		0		159,672,732		0		159,672,732
Other		0		0		7,206,128		7,206,128
Short-term investments
U.S. Treasury securities		599,965		0		0		599,965
Investment companies		537,572,549		31,466,405		0		569,038,954
	$	1,021,295,098	$	1,664,647,899	$	7,510,791	$	2,693,453,788

Further details on the major security types listed above can be found in the Portfolio of Investments.

As of February 29, 2012, the inputs used in valuing the Fund’s other financial instruments, which are carried at fair value, were as follows:

Other financial instruments	Quoted Prices (Level 1)			Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Futures contracts+	$	(41,329	)	$	0	$	0	$	(41,329	)

+ Futures contracts are presented at the unrealized gains or losses on the instrument.

Transfers in and transfers out are recognized at the end of the reporting period. For the six months ended February 29, 2012, the Fund 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:

	Agency Securities			Other			Total
Balance as of August 31, 2011	$	473,364		$	9,842,490		$	10,315,854
Accrued discounts (premiums)		0			0			0
Realized gains (losses)		(236,413	)		0			(236,413	)
Change in unrealized gains (losses)		222,530			(1,505,235	)		(1,282,705	)
Purchases		0			0			0
Sales		(154,818	)		(1,131,127	)		(1,285,945	)
Transfers into Level 3		0			0			0
Transfers out of Level 3		0			0			0
Balance as of February 29, 2012	$	304,663		$	7,206,128		$	7,510,791
Change in unrealized gains (losses) relating to securities still held at February 29, 2012	$	(9,614	)	$	(2,059,582	)	$	(2,069,196	)

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Advisory fee

The Trust has entered into an advisory contract with Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”). The 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 Fund.

Notes to Financial Statements (Unaudited) Wells Fargo Advantage Government Securities Fund 33

Pursuant to the contract, Funds Management is entitled to receive an annual advisory fee starting at 0.40% and declining to 0.30% as the average daily net assets of the Fund increase. For the six months ended February 29, 2012, the advisory fee was equivalent to an annual rate of 0.37% of the Fund’s average daily net assets.

Funds Management has retained the services of certain sub-advisers to provide daily portfolio management to the Fund. The fees related to sub-advisory services are borne directly by Funds Management and do not increase the overall fees paid by the Fund. Wells Capital Management, an affiliate of Funds Management, is the sub-adviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.20% and declining to 0.10% as the average daily net assets of the Fund increase.

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 the Fund an annual fund level administration fee starting at 0.05% and declining to 0.03% as the average daily net assets of the Fund increase and a class level administration fee which is calculated based on the average daily net assets of each class as follows:

	Class Level Administration Fee
Class A, Class B, Class C		0.16	%
Administrator Class		0.10
Institutional Class		0.08
Investor Class		0.19

Funds Management has contractually waived and/or reimbursed 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. Funds Management has committed through July 11, 2013 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.87% for Class A, 1.62% for Class B, 1.62% for Class C, 0.64% for Administrator Class, 0.48% for Institutional Class and 0.90% for Investor Class.

Distribution fees

The Trust has adopted a Distribution Plan for Class B and Class C shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. Distribution fees are charged to Class B and Class C shares and paid to Wells Fargo Funds Distributor, LLC, the principal underwriter, at an annual rate of 0.75% of the average daily net assets of Class B and Class C shares.

For the six months ended February 29, 2012, Wells Fargo Funds Distributor, LLC received $15,971 from the sale of Class A shares and $4,580, $2,783 and $797 in contingent deferred sales charges from redemptions of Class A, Class B and Class C shares, respectively.

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 the 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, excluding short-term securities (securities with maturities of one year or less at purchase date), for the six months ended February 29, 2012 were as follows:

Purchases at Cost		Sales Proceeds
U.S. Government	Non-U.S. Government	U.S. Government	Non-U.S. Government
$2,917,783,240	$78,344,251	$2,729,917,258	$104,878,182

34 Wells Fargo Advantage Government Securities Fund Notes to Financial Statements (Unaudited)

6. DERIVATIVE TRANSACTIONS

During the six months ended February 29, 2012, the Fund entered into futures contracts to speculate on interest rates.

At February 29, 2012, the Fund had long and short futures contracts outstanding as follows:

Expiration Date	Contracts		Type		Contract Value at February 29, 2012		Net Unrealized Gains (Losses)
June 2012		390 Long		5-Year U.S. Treasury Notes	$	48,037,031	$	11,446
June 2012		364 Long		10-Year U.S. Treasury Notes		47,666,938		(56,582	)
June 2012		275 Short		2-Year U.S. Treasury Notes		60,564,453		3,807

The Fund had an average notional amount of $47,597,733 and $64,799,610 in long futures contracts and short futures contracts, respectively, during the six months ended February 29, 2012.

On February 29, 2012, the cumulative unrealized losses on futures contracts in the amount of $41,329 is reflected in net unrealized gains on investments on the Statement of Assets and Liabilities. The payable for daily variation margin on open futures contracts reflected in the Statement of Assets and Liabilities only represents the current day’s variation margin. The realized gains and change in unrealized gains (losses) on futures contracts are reflected in the Statement of Operations.

7. BANK BORROWINGS

The Trust (excluding the money market funds) and Wells Fargo Variable Trust are parties to a $150,000,000 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, an annual commitment fee equal to 0.10% of the unused balance is allocated to each participating fund. Prior to September 6, 2011, the revolving credit agreement was for $125,000,000 and the annual commitment fee paid by the Fund was 0.125% of the unused balance. For the six months ended February 29, 2012, the Fund paid $507 in commitment fees.

For the six months ended February 29, 2012, there were no borrowings by the Fund under the agreement.

8. 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 Fund and, therefore, cannot be estimated.

9. NEW ACCOUNTING PRONOUNCEMENTS

In May 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-04 “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs”. ASU No. 2011-04 amends FASB ASC Topic 820, Fair Value Measurements and Disclosures, to establish common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with GAAP. The ASU is effective prospectively for interim and annual periods beginning after December 15, 2011. Management expects that adoption of the ASU will result in additional disclosures in the financial statements, as applicable.

In April 2011, FASB issued ASU No. 2011-03 “Reconsideration of Effective Control for Repurchase Agreements”. ASU No. 2011-03 amends FASB ASC Topic 860, Transfers and Servicing, specifically the criteria required to determine whether a repurchase agreement (repo) and similar agreements should be accounted for as sales of financial assets or secured borrowings with commitments. ASU No. 2011-03 changes the assessment of effective control by focusing on the transferor’s contractual rights and obligations and removing the criterion to assess its ability to exercise those rights or

Notes to Financial Statements (Unaudited) Wells Fargo Advantage Government Securities Fund 35

honor those obligations. This could result in changes to the way entities account for certain transactions including repurchase agreements, mortgage dollar rolls and reverse repurchase agreements. The ASU will become effective on a prospective basis for new transfers and modifications to existing transactions as of the beginning of the first interim or annual period beginning on or after December 15, 2011. Management has evaluated the impact of adopting the ASU and expects no significant changes.

36 Wells Fargo Advantage Government Securities 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 wellsfargoadvantagefunds.com, or visiting the SEC Web site at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge on the Fund’s Web site at wellsfargoadvantagefunds.com or by visiting the SEC Web site at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available on the Fund’s Web site (wellsfargoadvantagefunds.com) 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 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.

Other Information (Unaudited) Wells Fargo Advantage Government Securities Fund 37

BOARD OF TRUSTEES

The following table provides basic information about the Board of Trustees (the “Trustees”) of the Trust and Officers of the Trust. This table should be read in conjunction with the Prospectus and the Statement of Additional Information¹ of 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 137 funds comprising the Wells Fargo Funds 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 Year of Birth	Position Held and Length of Service	Principal Occupations During Past Five Years	Other Directorships During Past Five Years
Peter G. Gordon (Born 1942)	Trustee, since 1998; Chairman, since 2005 (Lead Trustee since 2001)	Co-Founder, Retired Chairman, President and CEO of Crystal Geyser Water Company. Trustee Emeritus, Colby College	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 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 40 portfolios as of 12/31/11); Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of Corporate Governance Research Program and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust

38 Wells Fargo Advantage Government Securities Fund Other Information (Unaudited)

Name and Year of Birth	Position Held and Length of Service	Principal Occupations During Past Five Years	Other Directorships During Past Five Years
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	Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield 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. Director and Vice Chair of The Free Trust (non-profit corporation). Director of the American Chestnut Foundation (non-profit corporation).	Asset Allocation Trust

Officers

Name and Year of Birth	Position Held and 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 Senior 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.
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. 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 Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the Web site at wellsfargoadvantagefunds.com.

List of Abbreviations Wells Fargo Advantage Government Securities Fund 39

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

ACB —  Agricultural Credit Bank

ADR —  American Depository 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

AUD —  Australian Dollar

BAN —  Bond Anticipation Notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazil Real

CAB —  Capital Appreciation Bond

CAD —  Canadian Dollar

CCAB —  Convertible Capital Appreciation Bond

CDA —  Community Development Authority

CDO —  Collateralized Debt Obligation

CHF —  Swiss Franc

COP —  Certificate of Participation

CR —  Custody Receipts

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

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-Traded Fund

EUR —  Euro

FFCB —  Federal Farm Credit Bank

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Authority

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FICO —  The Financing Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British Pound

GDR —  Global Depository 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

HUF —  Hungarian Forint

IBC —  Insured Bond Certificate

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

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

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

PUTTER —  Puttable Tax-Exempt Receipts

R&D —  Research & Development

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real Estate Investment Trust

ROC —  Reset Option Certificates

SAVRS —  Select Auction Variable Rate Securities

SBA —  Small Business Authority

SEK —  Swedish Krona

SFHR —  Single Family Housing Revenue

SFMR —  Single Family Mortgage Revenue

SGD —  Singapore Dollar

SKK —  Slovakian Koruna

SPDR —  Standard & Poor’s Depositary Receipts

STRIPS —  Separate Trading of Registered Interest and Principal       Securities

TAN —  Tax Anticipation Notes

TBA —  To Be Announced

TIPS —  Treasury Inflation-Protected Securities

TRAN —  Tax Revenue Anticipation Notes

TCR —  Transferable Custody Receipts

TRY —  Turkish Lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

XLCA —  XL Capital Assurance

ZAR —  South African Rand

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FOR MORE INFORMATION

More information about Wells Fargo Advantage Funds is available free upon request. To obtain literature, please write, e-mail, visit the Fund’s Web site, or call:

Wells Fargo Advantage Funds

P.O. Box 8266

Boston, MA 02266-8266

E-mail: wfaf@wellsfargo.com

Web site: wellsfargoadvantagefunds.com

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 wellsfargoadvantagefunds.com. 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

© 2012 Wells Fargo Funds Management, LLC. All rights reserved.

208521 04-12 SA216/SAR216 2-12

Wells Fargo Advantage High Income Fund

Semi-Annual Report

February 29, 2012

Reduce clutter. Save trees.

Sign up for electronic delivery of prospectuses and shareholder reports at wellsfargo.com/advantagedelivery

Contents

Letter to Shareholders	2
Performance Highlights	5
Fund Expenses	7
Portfolio of Investments	8
Financial Statements
Statement of Assets and Liabilities	17
Statement of Operations	18
Statements of Changes in Net Assets	19
Financial Highlights	20
Notes to Financial Statements	26
Other Information	32
List of Abbreviations	35

The views expressed and any forward-looking statements are as of February 29, 2012, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Advantage Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements; the views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC, disclaims any obligation to publicly update or revise any views expressed or forward-looking statements.

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 FundsSM).
1996	Evergreen Investments and Keystone Funds merge.
1997	Wells Fargo launches Wells Fargo Advantage WealthBuilder PortfoliosSM, 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 a fund’s investment objectives, risks, charges, and expenses before investing. For a current prospectus and, if available, a summary prospectus, containing this and other information, visit wellsfargoadvantagefunds.com. 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.

“Dow Jones^®” and “Dow Jones Target Date Indexes^SM” are service marks of Dow Jones Trademark Holdings, LLC (“Dow Jones”), have been licensed to CME Group Index Services LLC (“CME Indexes”) and have been sublicensed for use for certain purposes by Global Index Advisors, Inc, and Wells Fargo Funds Management, LLC. The Wells Fargo Advantage Dow Jones Target Date Funds^SM based on the Dow Jones Target Date Indexes^SM, are not sponsored, endorsed, sold or promoted by Dow Jones, CME Indexes or their respective affiliates and none of them makes any representation regarding the advisability of investing in such product(s).

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

Not part of the semi-annual report.

Wells Fargo Advantage Funds offers more than 110 mutual funds across a wide range of asset classes, representing over $218 billion in assets under management, as of February 29, 2012.

Equity Funds
Asia Pacific Fund	Equity Value Fund	Precious Metals Fund
C&B Large Cap Value Fund	Global Opportunities Fund	Premier Large Company Growth Fund
C&B Mid Cap Value Fund	Growth Fund	Small Cap Opportunities Fund
Capital Growth Fund	Index Fund	Small Cap Value Fund
Common Stock Fund	International Equity Fund	Small Company Growth Fund
Disciplined U.S. Core Fund	International Value Fund	Small Company Value Fund
Discovery Fund†	Intrinsic Small Cap Value Fund	Small/Mid Cap Core Fund
Diversified Equity Fund	Intrinsic Value Fund	Small/Mid Cap Value Fund
Diversified International Fund	Intrinsic World Equity Fund	Special Mid Cap Value Fund
Diversified Small Cap Fund	Large Cap Core Fund	Special Small Cap Value Fund
Emerging Growth Fund	Large Cap Growth Fund	Specialized Technology Fund
Emerging Markets Equity Fund	Large Company Value Fund	Strategic Large Cap Growth Fund
Endeavor Select Fund†	Omega Growth Fund	Traditional Small Cap Growth Fund
Enterprise Fund†	Opportunity 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
Absolute Return Fund	WealthBuilder Equity Portfolio†	Target 2020 Fund†
Asset Allocation Fund	WealthBuilder Growth Allocation Portfolio†	Target 2025 Fund†
Conservative Allocation Fund	WealthBuilder Growth Balanced Portfolio†	Target 2030 Fund†
Diversified Capital Builder Fund	WealthBuilder Moderate Balanced Portfolio†	Target 2035 Fund†
Diversified Income Builder Fund	WealthBuilder Tactical Equity Portfolio†	Target 2040 Fund†
Growth Balanced Fund	Target Today Fund†	Target 2045 Fund†
Index Asset Allocation Fund	Target 2010 Fund†	Target 2050 Fund†
Moderate Balanced Fund	Target 2015 Fund†	Target 2055 Fund†
WealthBuilder Conservative Allocation Portfolio†
Money Market Funds
100% Treasury Money Market Fund	Heritage Money Market Fund†	National Tax-Free Money Market Fund
California Municipal Money Market Fund	Money Market Fund	Prime Investment Money Market Fund
Cash Investment Money Market Fund	Municipal Cash Management Money Market Fund	Treasury Plus Money Market Fund
Government Money Market Fund	Municipal Money Market Fund
Variable Trust Funds1
VT Discovery Fund†	VT Intrinsic Value Fund	VT Small Cap Growth Fund
VT Index Asset Allocation Fund	VT Omega Growth Fund	VT Small Cap Value Fund
VT International Equity Fund	VT Opportunity Fund†	VT Total Return Bond 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 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 Dow Jones Target 2055 Fund^SM, Wells Fargo Advantage Heritage Money Market Fund^SM, Wells Fargo Advantage VT Discovery Fund^SM, and Wells Fargo Advantage VT Opportunity Fund^SM are referred to as the Discovery Fund, Endeavor Select Fund, Enterprise Fund, Opportunity 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, Target 2055 Fund, Heritage Money Market Fund, VT Discovery Fund, and VT Opportunity Fund, respectively.

Not part of the semi-annual report.

2 Wells Fargo Advantage High Income Fund Letter to Shareholders

Karla M. Rabusch,

President

Wells Fargo Advantage Funds

The theme for the period was a shift from risk aversion in the first half to burgeoning trends of improving investor confidence in the second half, which significantly improved pricing in the lower-rated asset classes.

On the whole, investment-grade fixed-income securities performed positively during the period, but the strongest returns came from the high-yield market.

Dear Valued Shareholder:

We are pleased to offer you this semi-annual report for the Wells Fargo Advantage High Income Fund, which covers the six-month period that ended February 29, 2012. During the period, fixed-income performance was best among the lower-rated securities, as improved investor confidence in the U.S. economy and the U.S. credit markets encouraged investors to return to riskier asset classes.

The period began with heightened risk aversion but ended with stronger investor confidence.

The six-month period began with the worsening of the Greek crisis, which amplified risk aversion across the global credit markets. This in turn led to a powerful rally in U.S. Treasuries and a sharp decline in high-yield bond prices, most notably in the lowest-quality credit tiers. During this time, most investment-grade fixed-income markets continued to generate positive returns—although certain areas of the riskiest segments of the markets declined—and U.S. Treasury yields reached the lowest levels in decades, even surpassing the low yield levels reached in the summer of 2010.

The last three months of the period were characterized by a strong reversal of the trends of the first three months. In October 2011, the high-yield market recovered significantly, benefiting from indications of improving policy with regard to managing the debt crisis from Europe and the formal announcement of a European debt deal late in the month. Due to renewed concerns about the European Union’s ability to manage the debt crisis, November 2011 saw a modest decline in investment-grade corporate bond prices and a sharp correction in high-yield corporate bonds, but another strong recovery in pricing started in December and carried into the first two months of 2012. Investor confidence strengthened as the U.S. economy demonstrated signs of sustainable growth and U.S. credit markets began to show some resistance to the credit problems of Europe. Thus, the theme for the period was a shift from risk aversion in the first half to burgeoning trends of improving investor confidence in the second half, which significantly improved pricing in the lower-rated asset classes.

On the whole, investment-grade fixed-income securities performed positively during the period, but the strongest returns came from the high-yield market. In fact, the best returns for the six-month period came from the lowest-rated credit tiers, despite the fact that they significantly underperformed in August and September 2011. Similar trends were true in the structured products sector, as lower-rated commercial mortgage-backed securities were among the best performers for the period, despite underperforming in the first two months.

The Federal Reserve launched Operation Twist in September.

With economic concerns and credit woes escalating in Europe and some continued uncertainty about the growth outlook in the U.S. during August and September 2011, the Federal Reserve (Fed) intervened yet again with monetary accommodations—this time with “Operation Twist,” which was announced and launched in September 2011. With Operation Twist, the Fed endeavored to flatten the yield curve and drive long-term rates down by selling short-term Treasuries and using the proceeds to purchase long-term Treasuries. The Fed stated that it is unlikely to raise rates before 2014, which should keep yields on Treasuries low.

Letter to Shareholders Wells Fargo Advantage High Income Fund 3

Despite this announcement, problems in Europe caused Treasuries to continue to rally in the first 3 months of the period, while credit spreads on corporate and securitized sectors widened with increasing risk aversion. However, with an improved U.S. economic outlook and greater investor confidence, the last three months of the period saw a slight decline in U.S. Treasury prices and significant improvement in high-yield corporate bond prices. Credit spreads in the corporate and securitized sectors broadly tightened in December 2011 and January and February 2012.

Although U.S. economic conditions appear to have improved over the course of the period, the recovery continues to face some headwinds in the form of languishing housing values and elevated unemployment levels, which may continue to create some volatility in the fixed-income markets. 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. While heightened volatility may be uncomfortable to experience in the short term, we believe it can lead to unique opportunities to add relative value for investors with long-term investment horizons.

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

Periods of uncertainty can present challenges, but 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. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Advantage Funds offers more than 110 mutual funds and other investments spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance.

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 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.

4 Wells Fargo Advantage High Income Fund Letter to Shareholders

Thank you for choosing to invest with Wells Fargo Advantage Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs. For current information about your fund investments, contact your investment professional, visit our Web site at wellsfargoadvantagefunds.com, or call us directly at 1-800-222-8222. We are available 24 hours a day, 7 days a week.

Sincerely,

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Notice to Shareholders

The Board of Trustees for Wells Fargo Advantage Funds has unanimously approved the following modifications to certain net asset value (NAV) waiver privileges and commission schedules:

n Effective May 1, 2012, automatic investment plan (AIP) purchases and proceeds received from systematic withdrawals will no longer qualify for NAV repurchase privileges.

n Effective May 1, 2012, discretionary rights to waive the upfront commission for Class C and “jumbo” Class A share purchases will no longer be granted to broker/dealers. However, we will continue to waive the Class C shares contingent deferred sales charge for redemptions by employer-sponsored retirement plans where the dealer of record waived its commission at the time of purchase.

n Effective July 31, 2012, NAV purchase privileges for former Evergreen Class IS and Class R shareholders are being modified to remove the ability to purchase Class A shares at NAV unless those shares are held directly with the Fund on or after July 31, 2012.

Please contact your investment professional or call us directly at 1-800-222-8222 if you have any questions on this Notice to Shareholders.

Performance Highlights (Unaudited) Wells Fargo Advantage High Income Fund 5

INVESTMENT OBJECTIVE

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

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

TEN LARGEST LONG-TERM HOLDINGS1 (AS OF FEBRUARY 29, 2012)
Harrah’s Entertainment Corporation, 3.24%, 1/28/2015	1.17%
CIT Group Incorporated, 7.00%, 5/2/2017	1.00%
Limited Brands Incorporated, 6.63%, 4/1/2021	0.90%
HealthSouth Corporation, 8.13%, 2/15/2020	0.85%
CITGO Petroleum Corporation, 11.50%, 7/1/2017	0.84%
Clear Channel Communications Incorporated, 9.00%, 3/1/2021	0.84%
Discover Financial Services, 10.25%, 7/15/2019	0.83%
Regency Energy Partners, 6.88%, 12/1/2018	0.82%
United Rentals North America Incorporated, 8.38%, 9/15/2020	0.81%
Ford Motor Company, 7.45%, 7/16/2031	0.80%

CREDIT QUALITY²
(AS OF FEBRUARY 29, 2012)

1. The ten largest long-term holdings are calculated based on the value of the securities divided by total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

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 & Poor’s rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Ratings from A to CCC may be modified by the addition of a plus (+) or minus (–) sign to show relative standing within the rating categories. Standard & Poor’s rates the creditworthiness of short-term notes from SP-1 (highest) to SP-3 (lowest). Moody’s rates the creditworthiness of bonds, ranging from Aaa (highest) to C (lowest). Ratings Aa to B may be modified by the addition of a number 1 (highest) to 3 (lowest) to show relative standing within the ratings categories. Moody’s rates the creditworthiness of short-term U.S. tax-exempt municipal securities from MIG 1/VMIG 1 (highest) to SG (lowest). Fitch rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). 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.

6 Wells Fargo Advantage High Income Fund Performance Highlights (Unaudited)

AVERAGE ANNUAL TOTAL RETURN³ (%) (AS OF FEBRUARY 29, 2012)

			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 (SHBAX)		02/29/2000		3.16		1.66		5.54		6.88		8.03		6.45		6.51		7.37		1.02%		0.91%
Class B (WFNBX)**		07/18/2008		2.63		0.66		5.39		6.87		7.63		5.66		5.71		6.87		1.77%		1.66%
Class C (WFNCX)		07/18/2008		6.63		4.66		5.71		6.63		7.63		5.66		5.71		6.63		1.77%		1.66%
Administrator Class (WFNDX)		07/30/2010										8.04		6.56		6.64		7.66		0.96%		0.81%
Institutional Class (SHYYX)		07/31/2001										8.19		6.88		6.97		7.99		0.69%		0.51%
Investor Class (STHYX)		12/28/1995										7.99		6.42		6.49		7.45		1.05%		0.94%
Barclays U.S. Corporate High Yield Bond Index6												8.63		6.94		8.15		9.51

* 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 and assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s Web site – wellsfargoadvantagefunds.com

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.

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 charge 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.

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.

3. Historical performance shown for the Class A shares through June 19, 2008 includes Advisor Class expenses. Historical 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. Historical performance shown for the Administrator Class shares prior to their inception reflects the performance of the Institutional Class shares, adjusted to reflect the higher expenses applicable to the Administrator Class shares.

4. Reflects the expense ratios as stated in the most recent prospectuses.

5. The Adviser has committed through July 11, 2013 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver, excluding certain expenses, at 0.90% for Class A, 1.65% for Class B, 1.65% for Class C, 0.80% for Administrator Class, 0.50% for Institutional Class and 0.93% for Investor Class. Without this cap, the Fund’s returns would have been lower.

6. The Barclays 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.

Fund Expenses (Unaudited) Wells Fargo Advantage High Income Fund 7

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and contingent deferred sales charges (if any) on redemptions 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, 2011 to February 29, 2012.

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 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.

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) and contingent deferred sales charges. 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 Account Value 09-01-2011		Ending Account Value 02-29-2012		Expenses Paid During the Period1		Net Annual Expense Ratio
Class A
Actual	$	1,000.00	$	1,080.26	$	4.66		0.90	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.39	$	4.52		0.90	%
Class B
Actual	$	1,000.00	$	1,076.27	$	8.52		1.65	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.66	$	8.27		1.65	%
Class C
Actual	$	1,000.00	$	1,076.29	$	8.52		1.65	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.66	$	8.27		1.65	%
Administrator Class
Actual	$	1,000.00	$	1,080.37	$	4.09		0.79	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.93	$	3.97		0.79	%
Institutional Class
Actual	$	1,000.00	$	1,081.93	$	2.59		0.50	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.38	$	2.51		0.50	%
Investor Class
Actual	$	1,000.00	$	1,079.91	$	4.81		0.93	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.24	$	4.67		0.93	%

1. Expenses paid is equal to the annualized expense ratio of each class 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).

8 Wells Fargo Advantage High Income Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Corporate Bonds and Notes: 81.38%
Consumer Discretionary: 21.90%
Auto Components: 3.99%
American Axle & Manufacturing Incorporated		7.75	%		11/15/2019	$	5,000,000	$	5,331,245
Cooper-Standard Holdings Incorporated		8.50			05/01/2018		4,500,000		4,860,000
Dana Holding Corporation		6.75			02/15/2021		4,000,000		4,330,000
Delphi Corporation 144A		6.13			05/15/2021		5,250,000		5,630,625
Lear Corporation		8.13			03/15/2020		3,000,000		3,382,500
Tenneco Automotive Incorporated		7.75			08/15/2018		3,000,000		3,262,500
TRW Automotive Incorporated 144A		7.25			03/15/2017		2,030,000		2,258,375
TRW Automotive Incorporated 144A		8.88			12/01/2017		2,500,000		2,781,250
									31,836,495
Automobiles: 0.80%
Ford Motor Company «		7.45			07/16/2031		5,000,000	��	6,418,750
Diversified Consumer Services: 1.21%
Service Corporation International		7.50			04/01/2027		200,000		200,000
Service Corporation International Series WI		7.00			06/15/2017		3,790,000		4,244,800
Stewart Enterprises Incorporated		6.50			04/15/2019		5,000,000		5,250,000
									9,694,800
Hotels, Restaurants & Leisure: 4.02%
Caesars Entertainment Incorporated		8.50			02/15/2020		1,000,000		1,020,000
CKE Restaurants Incorporated		11.38			07/15/2018		4,725,000		5,386,500
MGM Resorts International Company 144A		8.63			02/01/2019		1,000,000		1,065,000
Penn National Gaming Incorporated		8.75			08/15/2019		3,750,000		4,209,375
Seminole Tribe of Florida 144A		7.75			10/01/2017		4,900,000		5,316,500
Shingle Springs Tribal Gaming Authority 144A		9.38			06/15/2015		4,050,000		2,774,250
Tunica-Biloxi Gaming Authority 144A		9.00			11/15/2015		6,260,000		6,056,550
Yonkers Racing Corporation 144A		11.38			07/15/2016		5,770,000		6,253,238
									32,081,413
Media: 8.65%
CCO Holdings LLC		6.50			04/30/2021		2,000,000		2,125,000
CCO Holdings LLC		6.63			01/31/2022		2,000,000		2,135,000
CCO Holdings LLC		7.00			01/15/2019		5,000,000		5,400,000
Cequel Communications Holdings 144A		8.63			11/15/2017		5,000,000		5,362,500
Cinemark USA Incorporated		8.63			06/15/2019		5,500,000		6,118,750
Clear Channel Communications Incorporated 144A		7.63			03/15/2020		1,750,000		1,750,000
Clear Channel Communications Incorporated		9.00			03/01/2021		7,250,000		6,670,000
CSC Holdings LLC		8.63			02/15/2019		3,500,000		4,130,000
DISH DBS Corporation		6.75			06/01/2021		2,000,000		2,220,000
DISH DBS Corporation		7.88			09/01/2019		4,500,000		5,287,500
Insight Communications 144A		9.38			07/15/2018		4,000,000		4,590,000
Intelsat Jackson Holdings Limited		8.50			11/01/2019		5,025,000		5,514,938	��
LBI Media Incorporated 144A		9.25			04/15/2019		6,000,000		5,100,000
Regal Cinemas Corporation		8.63			07/15/2019		5,000,000		5,462,500
Sirius XM Radio Incorporated 144A		8.75			04/01/2015		3,500,000		3,972,500

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage High Income Fund 9

Security Name	Interest Rate			Maturity Date		Principal		Value
Media (continued)
Visant Corporation		10.00	%		10/01/2017	$	3,500,000	$	3,220,000
									69,058,688
Multiline Retail: 0.40%
Bon-Ton Department Stores Incorporated		10.25			03/15/2014		5,000,000		3,200,000
Specialty Retail: 1.69%
Limited Brands Incorporated		5.63			02/15/2022		1,000,000		1,030,000
Limited Brands Incorporated		6.63			04/01/2021		6,500,000		7,150,000
Toys R Us Property Company I LLC		8.50			12/01/2017		5,000,000		5,287,500
									13,467,500
Textiles, Apparel & Luxury Goods: 1.14%
Hanesbrands Incorporated		6.38			12/15/2020		5,000,000		5,225,000
Jones Group Incorporated		6.88			03/15/2019		4,000,000		3,865,000
									9,090,000
Consumer Staples: 3.04%
Beverages: 0.52%
Constellation Brands Incorporated		7.25			09/01/2016		3,700,000		4,181,000
Food Products: 2.45%
Bumble Bee Acquisition Company 144A		9.00			12/15/2017		3,802,000		3,992,100
Dean Foods Company		9.75			12/15/2018		1,500,000		1,657,500
Del Monte Foods Company		7.63			02/15/2019		4,000,000		4,010,000
JBS USA Finance Incorporated 144A		8.25			02/01/2020		2,500,000		2,581,250
Pinnacle Foods Finance LLC		8.25			09/01/2017		2,700,000		2,922,750
TreeHouse Foods Incorporated		7.75			03/01/2018		4,000,000		4,380,000
									19,543,600
Personal Products: 0.07%
Sally Beauty Holdings Incorporated 144A		6.88			11/15/2019		500,000		537,500
Energy: 12.92%
Energy Equipment & Services: 0.13%
Atwood Oceanics Incorporated		6.50			02/01/2020		1,000,000		1,052,500
Oil, Gas & Consumable Fuels: 12.79%
Bill Barrett Corporation		7.63			10/01/2019		2,600,000		2,717,000
Bill Barrett Corporation		9.88			07/15/2016		5,000,000		5,525,000
BreitBurn Energy Partners LP		8.63			10/15/2020		4,000,000		4,340,000
Chesapeake Energy Corporation 144A		6.63			11/15/2019		4,000,000		4,080,000
Chesapeake Energy Corporation		6.88			11/15/2020		3,000,000		3,150,000
CITGO Petroleum Corporation 144A		11.50			07/01/2017		6,000,000		6,720,000
Clayton Williams Energy Incorporated		7.75			04/01/2019		4,000,000		4,000,000
Coffeyville Resources Refining & Marketing LLC 144A		9.00			04/01/2015		1,575,000		1,685,250
Coffeyville Resources Refining & Marketing LLC 144A		10.88			04/01/2017		3,750,000		4,237,500
Comstock Resources Incorporated		8.38			10/15/2017		5,500,000		5,348,750
El Paso Corporation		6.50			09/15/2020		3,500,000		3,865,673

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

10 Wells Fargo Advantage High Income Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Oil, Gas & Consumable Fuels (continued)
Energy Transfer Equity LP		7.50	%		10/15/2020	$	5,000,000	$	5,725,000
Energy XXI Gulf Coast Incorporated		9.25			12/15/2017		3,000,000		3,322,500
Holly Corporation		9.88			06/15/2017		3,250,000		3,631,875
James River Coal Company		7.88			04/01/2019		5,000,000		3,375,000
Newfield Exploration Company		6.88			02/01/2020		4,950,000		5,346,000
Peabody Energy Corporation 144A		6.00			11/15/2018		1,000,000		1,047,500
Peabody Energy Corporation 144A		6.25			11/15/2021		5,000,000		5,237,500
Penn Virginia Corporation		10.38			06/15/2016		4,200,000		4,168,500
Plains Exploration & Production Company		8.63			10/15/2019		4,600,000		5,198,000
Quicksilver Resources Incorporated		11.75			01/01/2016		2,000,000		2,130,000
Regency Energy Partners		6.88			12/01/2018		6,000,000		6,510,000
Suburban Propane Partners LP		7.38			03/15/2020		3,250,000		3,461,250
Targa Resources Partners Incorporated 144A		6.38			08/01/2022		1,000,000		1,052,500
Targa Resources Partners Incorporated		6.88			02/01/2021		4,000,000		4,270,000
White Pine Hydro Portfolio LLC 144A(i)		7.26			07/20/2015		2,000,000		1,944,160
									102,088,958
Financials: 8.48%
Commercial Banks: 0.46%
Regions Bank		7.50			05/15/2018		3,350,000		3,651,500
Consumer Finance: 4.82%
Ally Financial Incorporated		5.50			02/15/2017		1,500,000		1,519,433
Ally Financial Incorporated		6.25			12/01/2017		2,000,000		2,067,532
Ally Financial Incorporated		8.00			03/15/2020		5,500,000		6,228,750
Discover Financial Services		10.25			07/15/2019		5,200,000		6,630,478
Ford Motor Credit Company LLC		5.00			05/15/2018		3,000,000		3,162,654
Ford Motor Credit Company LLC		5.88			08/02/2021		5,000,000		5,578,225
Ford Motor Credit Company LLC		6.63			08/15/2017		2,500,000		2,833,303
Ford Motor Credit Company LLC		8.00			12/15/2016		1,840,000		2,186,908
GMAC LLC		8.00			11/01/2031		3,500,000		3,906,875
SLM Corporation		8.00			03/25/2020		4,000,000		4,400,000
									38,514,158
Diversified Financial Services: 3.20%
CIT Group Incorporated 144A		5.50			02/15/2019		1,000,000		1,021,250
CIT Group Incorporated 144A		6.63			04/01/2018		3,500,000		3,771,250
CIT Group Incorporated 144A		7.00			05/02/2016		3,600,000		3,604,500
CIT Group Incorporated 144A		7.00			05/02/2017		8,000,000		8,010,000
International Lease Finance Corporation		6.25			05/15/2019		1,000,000		1,013,626
International Lease Finance Corporation		8.25			12/15/2020		5,500,000		6,131,010
PHH Corporation		7.13			03/01/2013		2,000,000		2,000,000
									25,551,636
Health Care: 9.32%
Health Care Equipment & Supplies: 1.58%
Accellent Incorporated		8.38			02/01/2017		4,000,000		4,055,000
Biomet Incorporated		11.63			10/15/2017		4,000,000		4,365,000

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage High Income Fund 11

Security Name	Interest Rate			Maturity Date		Principal		Value
Health Care Equipment & Supplies (continued)
Hanger Orthopedic Group		7.13	%		11/15/2018	$	4,000,000	$	4,225,000
									12,645,000
Health Care Providers & Services: 7.18%
Community Health Systems Incorporated Series WI		8.88			07/15/2015		4,000,000		4,190,000
Davita Incorporated		6.63			11/01/2020		4,000,000		4,290,000
Fresenius Medical Care Holdings Incorporated 144A		5.63			07/31/2019		2,500,000		2,662,500
Fresenius Medical Care Holdings Incorporated 144A		5.88			01/31/2022		2,500,000		2,637,500
Fresenius Medical Care Holdings Incorporated		6.88			07/15/2017		3,000,000		3,330,000
HCA Incorporated		5.88			03/15/2022		3,000,000		3,075,000
HCA Incorporated		7.25			09/15/2020		4,550,000		4,959,500
HCA Incorporated		7.88			02/15/2020		2,000,000		2,205,000
HCA Incorporated		8.50			04/15/2019		1,000,000		1,120,000
Health Management Association 144A		7.38			01/15/2020		2,000,000		2,085,000
HealthSouth Corporation		8.13			02/15/2020		6,200,000		6,816,125
Iasis Healthcare Corporation		8.38			05/15/2019		4,000,000		3,820,000
Lifepoint Hospitals Incorporated		6.63			10/01/2020		3,750,000		4,031,250
MPT Operating Partnership LP		6.38			02/15/2022		2,000,000		2,065,000
PSS World Medical Incorporated 144A		6.38			03/01/2022		1,000,000		1,040,000
Tenet Healthcare Corporation 144A		6.25			11/01/2018		4,000,000		4,265,000
Vanguard Health Holdings Incorporated LLC		8.00			02/01/2018		4,500,000		4,736,250
									57,328,125
Pharmaceuticals: 0.56%
Mylan Incorporated 144A		7.88			07/15/2020		4,000,000		4,470,000
Industrials: 9.52%
Aerospace & Defense: 1.24%
Esterline Technologies Corporation		7.00			08/01/2020		3,750,000		4,143,750
Hexcel Corporation		6.75			02/01/2015		872,000		879,630
Spirit AeroSystems Holdings Incorporated		7.50			10/01/2017		4,500,000		4,893,750
									9,917,130
Building Products: 0.59%
Griffon Corporation		7.13			04/01/2018		4,500,000		4,680,000
Commercial Services & Supplies: 2.56%
Clarke American Incorporated		9.50			05/15/2015		5,225,000		4,114,688
Deluxe Corporation		7.00			03/15/2019		6,300,000		6,378,750
Iron Mountain Incorporated		7.75			10/01/2019		1,000,000		1,105,000
Iron Mountain Incorporated		8.38			08/15/2021		3,000,000		3,333,750
Swift Services Holdings Incorporated		10.00			11/15/2018		5,000,000		5,468,750
									20,400,938
Construction & Engineering: 0.52%
Great Lakes Dredge & Dock Company		7.38			02/01/2019		4,000,000		4,170,000

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

12 Wells Fargo Advantage High Income Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Electrical Equipment: 0.62%
Belden CDT Incorporated		7.00	%		03/15/2017	$	2,730,000	$	2,811,900
Belden CDT Incorporated		9.25			06/15/2019		2,000,000		2,160,000
									4,971,900
Machinery: 2.42%
Briggs & Stratton Corporation		6.88			12/15/2020		2,970,000		3,140,775
Manitowoc Company Incorporated		8.50			11/01/2020		4,000,000		4,460,000
RSC Equipment Rental Incorporated		8.25			02/01/2021		4,000,000		4,240,000
United Rentals Financing Escrow Corporation 144A		7.38			05/15/2020		500,000		513,125
United Rentals Financing Escrow Corporation 144A		7.63			04/15/2022		500,000		517,500
United Rentals North America Incorporated «		8.38			09/15/2020		6,250,000		6,468,750
									19,340,150
Professional Services: 1.57%
Checkout Holdings Corporation 144A(z)		8.39			11/15/2015		3,000,000		1,350,000
FTI Consulting Incorporated		6.75			10/01/2020		3,300,000		3,568,125
FTI Consulting Incorporated		7.75			10/01/2016		2,600,000		2,707,250
West Corporation		7.88			01/15/2019		2,000,000		2,162,500
West Corporation		8.63			10/01/2018		2,500,000		2,743,750
									12,531,625
Information Technology: 0.47%
Internet Software & Services: 0.04%
Equinix Incorporated		7.00			07/15/2021		250,000		276,250
Semiconductors & Semiconductor Equipment: 0.43%
Freescale Semiconductor Incorporated		8.05			02/01/2020		3,500,000		3,465,000
Materials: 5.60%
Chemicals: 0.31%
Polyone Corporation		7.38			09/15/2020		2,250,000		2,424,375
Construction Materials: 0.36%
Headwaters Incorporated		7.63			04/01/2019		3,000,000		2,880,000
Containers & Packaging: 2.89%
Berry Plastics Corporation		9.75			01/15/2021		5,500,000		5,885,000
BWAY Corporation		10.00			06/15/2018		4,000,000		4,440,000
Reynolds Group Holdings 144A		7.13			04/15/2019		4,500,000		4,758,750
Reynolds Group Holdings 144A		7.88			08/15/2019		1,000,000		1,095,000
Reynolds Group Holdings 144A		8.25			02/15/2021		4,000,000		3,820,000
Reynolds Group Holdings 144A		9.88			08/15/2019		1,000,000		1,033,750
Reynolds Group Holdings 144A		9.88			08/15/2019		2,000,000		2,067,500
									23,100,000
Paper & Forest Products: 2.04%
ABI Escrow Corporation 144A		10.25			10/15/2018		2,758,000		3,151,015
Appleton Papers Incorporated 144A		10.50			06/15/2015		1,000,000		1,022,500
Appleton Papers Incorporated		11.25			12/15/2015		1,634,000		1,478,770

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage High Income Fund 13

Security Name	Interest Rate			Maturity Date		Principal		Value
Paper & Forest Products (continued)
Boise Paper Holdings LLC		9.00	%		11/01/2017	$	3,750,000	$	4,125,000
Domtar Corporation		10.75			06/01/2017		3,065,000		3,984,500
P.H. Glatfelter Company		7.13			05/01/2016		2,485,000		2,540,913
									16,302,698
Telecommunication Services: 5.70%
Diversified Telecommunication Services: 3.91%
Cincinnati Bell Incorporated		8.38			10/15/2020		3,000,000		3,067,500
Cincinnati Bell Incorporated		8.75			03/15/2018		4,000,000		3,810,000
Frontier Communications Corporation		8.25			04/15/2017		4,000,000		4,320,000
Frontier Communications Corporation		8.75			04/15/2022		2,000,000		2,175,000
Level 3 Communications Incorporated		11.88			02/01/2019		4,000,000		4,550,000
Level 3 Financing Incorporated 144A		8.63			07/15/2020		1,000,000		1,067,500
PAETEC Holding Corporation		9.88			12/01/2018		3,750,000		4,200,000
TW Telecommunications Holdings Incorporated		8.00			03/01/2018		3,500,000		3,836,875
Windstream Corporation		7.50			04/01/2023		4,000,000		4,210,000
									31,236,875
Wireless Telecommunication Services: 1.79%
Cricket Communications Incorporated		7.75			10/15/2020		4,000,000		3,980,000
MetroPCS Communications Incorporated		6.63			11/15/2020		3,015,000		3,105,450
Sprint Capital Corporation		6.90			05/01/2019		2,600,000		2,301,000
Sprint Capital Corporation		8.75			03/15/2032		3,000,000		2,670,000
Sprint Nextel Corporation		6.00			12/01/2016		2,425,000		2,206,750
									14,263,200
Utilities: 4.43%
Electric Utilities: 0.71%
Dolphin Subsidiary II Incorporated 144A		7.25			10/15/2021		5,000,000		5,700,000
Independent Power Producers & Energy Traders: 3.72%
Calpine Corporation 144A		7.50			02/15/2021		4,000,000		4,340,000
Calpine Corporation 144A		7.88			01/15/2023		2,000,000		2,180,000
Energy Future Holdings Corporation		10.00			01/15/2020		4,000,000		4,325,000
Energy Future Holdings Corporation 144A«		11.75			03/01/2022		5,000,000		5,125,000
Mirant Americas Generation LLC «		8.50			10/01/2021		5,200,000		4,732,000
NRG Energy Incorporated		8.25			09/01/2020		3,000,000		3,037,500
NRG Energy Incorporated		8.50			06/15/2019		4,000,000		4,090,000
RRI Energy Incorporated		7.88			06/15/2017		2,000,000		1,855,000
									29,684,500
Total Corporate Bonds and Notes (Cost $620,903,123)									649,756,264
Municipal Bonds and Notes: 0.41%
Florida: 0.41%
Florida Development Financial Corporation Renaissance Charter School Project Series 2011B (Resource Recovery Revenue) §		8.00			12/15/2018		3,180,000		3,249,356
Total Municipal Bonds and Notes (Cost $3,180,000)									3,249,356

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

14 Wells Fargo Advantage High Income Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Term Loans: 2.71%
Chrysler Group LLC		6.00	%		05/24/2017	$	5,970,000	$	5,984,209
Dynegy Holdings Incorporated		9.25			08/04/2016		1,995,000		2,057,843
Dynegy Holdings Incorporated		9.25			08/04/2016		997,500		991,894
Goodman Global Holdings Incorporated		9.00			10/30/2017		2,545,455		2,585,240
Goodyear Tire & Rubber Company		1.75			04/30/2014		450,000		442,688
Harrah’s Entertainment Corporation		3.24			01/28/2015		10,000,000		9,370,000
HCA Incorporated		2.49			11/18/2013		251,131		249,720
Total Term Loans (Cost $21,682,939)									21,681,594
				Expiration Date		Shares
Warrants: 0.00%
Information Technology: 0.00%
IT Services: 0.00%
Muzak Holdings LLC (a)†					02/01/2015		7,195		2,302
Total Warrants (Cost $0)									2,302
				Maturity Date		Principal
Yankee Corporate Bonds and Notes: 8.05%
Consumer Discretionary: 1.41%
Automobiles: 0.45%
Jaguar Land Rover plc 144A		8.13			05/15/2021	$	3,500,000		3,613,750
Media: 0.96%
Intelsat Limited		11.50			02/04/2017		3,916,796		4,034,300
UPCB Finance Limited 144A		7.25			11/15/2021		1,000,000		1,052,500
Videotron Limited 144A		5.00			07/15/2022		1,500,000		1,500,000
Virgin Media Finance plc		5.25			02/15/2022		1,000,000		1,020,000
									7,606,800
Energy: 1.20%
Oil, Gas & Consumable Fuels: 1.20%
Kodiak Oil & Gas Corporation 144A		8.13			12/01/2019		4,000,000		4,280,000
Petrobakken Energy Limited 144A		8.63			02/01/2020		5,000,000		5,312,500
									9,592,500
Financials: 1.40%
Consumer Finance: 0.76%
National Money Mart Company		10.38			12/15/2016		5,500,000		6,098,125
Diversified Financial Services: 0.64%
Aircastle Limited		9.75			08/01/2018		4,500,000		5,073,750
Information Technology: 1.24%
Semiconductors & Semiconductor Equipment: 1.24%
Magnachip Semiconductor Limited		10.50			04/15/2018		5,175,000		5,711,906
Sensata Technologies BV 144A		6.50			05/15/2019		4,000,000		4,230,000
									9,941,906

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage High Income Fund 15

Security Name	Interest Rate			Maturity Date		Principal		Value
Materials: 2.28%
Chemicals: 1.20%
Ineos Group Holdings plc 144A		8.38	%		02/15/2019	$	1,000,000	$	1,062,500
Ineos Group Holdings plc 144A		8.50			02/15/2016		4,490,000		4,097,125
Rhodia SA 144A		6.88			09/15/2020		4,000,000		4,420,000
									9,579,625
Metals & Mining: 0.61%
FMG Resources Limited 144A		6.88			02/01/2018		1,000,000		1,055,000
FMG Resources Limited 144A		7.00			11/01/2015		3,600,000		3,807,000
									4,862,000
Paper & Forest Products: 0.47%
Sappi Papier Holding GmbH 144A		6.63			04/15/2021		4,000,000		3,750,000
Telecommunication Services: 0.52%
Wireless Telecommunication Services: 0.52%
Wind Acquisition Finance SA 144A		12.25			07/15/2017		4,738,380		4,134,237
Total Yankee Corporate Bonds and Notes (Cost $62,937,366)									64,252,693
Other: 0.11%
Gryphon Funding Limited, Pass-Through Entity (i)(a)(v)							1,106,593		298,780
VFNC Corporation, Pass-Through Entity 0.24% 144A(i)(a)(v)±							1,283,387		551,857
Total Other (Cost $372,032)									850,637
	Yield					Shares
Short-Term Investments: 7.74%
Investment Companies: 7.74%
Wells Fargo Advantage Cash Investment Money Market Fund, Institutional Class (u)(l)		0.02					52,511,475		52,511,475
Wells Fargo Securities Lending Cash Investments, LLC (v)(u)(l)(r)		0.15					9,249,208		9,249,208
Total Short-Term Investments (Cost $61,760,683)									61,760,683

Total Investments in Securities
(Cost $770,836,143) *	100.40	%		801,553,529
Other Assets and Liabilities, Net	(0.40	)		(3,174,137	)
Total Net Assets	100.00	%	$	798,379,392

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

16 Wells Fargo Advantage High Income Fund Portfolio of Investments—February 29, 2012 (Unaudited)

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

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

(i) Illiquid security.

(z) Zero coupon security. Rate represents yield to maturity.

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

(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.

† Non-income producing security

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

± Variable rate investment.

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

(l) Investment in an affiliate.

(r) The investment company is exempt from registration under Section 3(c)(7) of the 1940 Act.

* Cost for federal income tax purposes is $771,612,741 and net unrealized appreciation (depreciation) consists of:

Gross unrealized appreciation	$	41,055,077
Gross unrealized depreciation		(11,114,289	)
Net unrealized appreciation	$	29,940,788

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

Statement of Assets and Liabilities—February 29, 2012 (Unaudited) Wells Fargo Advantage High Income Fund 17

Assets
Investments
In unaffiliated securities (including securities on loan), at value (see cost below)	$	739,792,846
In affiliated securities, at value (see cost below)		61,760,683
Total investments, at value (see cost below)		801,553,529
Receivable for investments sold		250,000
Receivable for Fund shares sold		1,476,643
Receivable for interest		14,683,171
Receivable for securities lending income		5,450
Prepaid expenses and other assets		77,314
Total assets		818,046,107
Liabilities
Dividends payable		1,540,127
Payable for investments purchased		5,500,000
Payable for Fund shares redeemed		2,536,322
Payable upon receipt of securities loaned		9,621,240
Advisory fee payable		233,095
Distribution fees payable		19,963
Due to other related parties		90,250
Accrued expenses and other liabilities		125,718
Total liabilities		19,666,715
Total net assets	$	798,379,392
NET ASSETS CONSIST OF
Paid-in capital	$	775,456,098
Overdistributed net investment income		(158,026	)
Accumulated net realized losses on investments		(7,636,066	)
Net unrealized gains on investments		30,717,386
Total net assets	$	798,379,392
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE1
Net assets – Class A	$	123,618,747
Shares outstanding – Class A		16,472,039
Net asset value per share – Class A		$7.50
Maximum offering price per share – Class A2		$7.85
Net assets – Class B	$	1,828,905
Shares outstanding – Class B		243,771
Net asset value per share – Class B		$7.50
Net assets – Class C	$	32,224,261
Shares outstanding – Class C		4,294,300
Net asset value per share – Class C		$7.50
Net assets – Administrator Class	$	17,561,913
Shares outstanding – Administrator Class		2,318,933
Net asset value per share – Administrator Class		$7.57
Net assets – Institutional Class	$	304,485,385
Shares outstanding – Institutional Class		40,212,220
Net asset value per share – Institutional Class		$7.57
Net assets – Investor Class	$	318,660,181
Shares outstanding – Investor Class		42,295,632
Net asset value per share – Investor Class		$7.53
Investments in unaffiliated securities, at cost	$	709,075,460
Investments in affiliated securities, at cost	$	61,760,683
Total investments, at cost	$	770,836,143
Securities on loan, at value	$	9,422,576

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.

18 Wells Fargo Advantage High Income Fund Statement of Operations—Six Months Ended February 29, 2012 (Unaudited)

Investment income
Interest	$	26,200,108
Income from affiliated securities		25,933
Securities lending income, net		25,866
Total investment income		26,251,907
Expenses
Advisory fee		1,744,059
Administration fees
Fund level		177,042
Class A		88,284
Class B		1,628
Class C		24,419
Administrator Class		8,538
Institutional Class		105,500
Investor Class		270,208
Shareholder servicing fees
Class A		137,943
Class B		2,544
Class C		38,155
Administrator Class		17,567
Investor Class		355,537
Distribution fees
Class B		7,630
Class C		114,465
Custody and accounting fees		26,024
Professional fees		23,145
Registration fees		34,631
Shareholder report expenses		44,033
Trustees’ fees and expenses		7,347
Other fees and expenses		14,739
Total expenses		3,243,438
Less: Fee waivers and/or expense reimbursements		(428,539	)
Net expenses		2,814,899
Net investment income		23,437,008
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized losses on investments		(2,982,618	)
Net change in unrealized gains (losses) on investments		37,442,025
Net realized and unrealized gains (losses) on investments		34,459,407
Net increase in net assets resulting from operations	$	57,896,415

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

Statements of Changes in Net Assets Wells Fargo Advantage High Income Fund 19

	Six Months Ended February 29, 2012 (Unaudited)						Year Ended August 31, 2011
Operations
Net investment income				$	23,437,008					$	49,117,488
Net realized gains (losses) on investments					(2,982,618	)					30,277,310
Net change in unrealized gains (losses) on investments					37,442,025						(26,271,970	)
Net increase in net assets resulting from operations					57,896,415						53,122,828
Distributions to shareholders from
Net investment income
Class A					(3,589,786	)					(7,960,520	)
Class B					(58,808	)					(235,298	)
Class C					(880,332	)					(1,934,271	)
Administrator Class					(564,190	)					(1,371,513	)
Institutional Class					(9,118,259	)					(15,754,833	)
Investor Class					(9,225,632	)					(21,932,524	)
Total distributions to shareholders					(23,437,007	)					(49,188,959	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		4,962,450			35,748,415			6,258,624			46,384,591
Class B		35,060			253,147			92,007			681,587
Class C		411,650			2,981,164			948,202			7,054,076
Administrator Class		2,430,130			17,171,308			6,389,932			48,011,300
Institutional Class		10,232,037			74,588,941			12,145,944			90,366,875
Investor Class		13,495,809			97,600,804			15,063,197			111,996,067
					228,343,779						304,494,496
Reinvestment of distributions
Class A		394,518			2,857,070			859,120			6,383,122
Class B		5,227			37,703			22,922			170,127
Class C		88,768			641,768			168,392			1,251,327
Administrator Class		60,697			443,410			119,405			899,379
Institutional Class		449,101			3,280,386			814,266			6,108,680
Investor Class		1,051,060			7,635,226			2,438,276			18,192,349
					14,895,563						33,004,984
Payment for shares redeemed
Class A		(3,156,541	)		(22,746,187	)		(10,325,164	)		(76,518,643	)
Class B		(138,448	)		(993,731	)		(537,216	)		(3,992,287	)
Class C		(479,055	)		(3,443,877	)		(1,094,229	)		(8,118,360	)
Administrator Class		(2,196,869	)		(16,006,126	)		(4,485,754	)		(33,637,272	)
Institutional Class		(3,423,837	)		(24,871,414	)		(7,386,260	)		(55,266,998	)
Investor Class		(10,862,682	)		(77,884,950	)		(23,838,049	)		(176,970,160	)
					(145,946,285	)					(354,503,720	)
Net increase (decrease) in net assets resulting from capital share transactions					97,293,057						(17,004,240	)
Total increase (decrease) in net assets					131,752,465						(13,070,371	)
Net assets
Beginning of period					666,626,927						679,697,298
End of period				$	798,379,392					$	666,626,927
Overdistributed net investment income				$	(158,026	)				$	(158,027	)

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

20 Wells Fargo Advantage High Income Fund Financial Highlights

(For a share outstanding throughout each period)

	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,						Year Ended May 31,
Class A				2011			20101			2010			20092			20082			20072
Net asset value, beginning of period	$	7.17		$	7.14		$	6.90		$	6.35		$	7.25		$	7.89		$	7.63
Net investment income		0.23			0.50			0.13			0.53			0.50			0.53			0.55
Net realized and unrealized gains (losses) on investments		0.33			0.03			0.24			0.54			(0.90	)		(0.64	)		0.26
Total from investment operations		0.56			0.53			0.37			1.07			(0.40	)		(0.11	)		0.81
Distributions to shareholders from
Net investment income		(0.23	)		(0.50	)		(0.13	)		(0.52	)		(0.50	)		(0.53	)		(0.55	)
Net asset value, end of period	$	7.50		$	7.17		$	7.14		$	6.90		$	6.35		$	7.25		$	7.89
Total return3		8.03	%		7.41	%		5.44	%		17.20	%		(5.07	)%		(1.40	)%		10.96	%
Ratios to average net assets (annualized)
Gross expenses		0.99	%		1.01	%		1.00	%		1.03	%		1.05	%		1.19	%		1.16	%
Net expenses		0.90	%		0.90	%		0.90	%		0.90	%		0.89	%		0.86	%		0.86	%
Net investment income		6.51	%		6.77	%		7.52	%		7.86	%		8.13	%		7.04	%		7.07	%
Supplemental data
Portfolio turnover rate		8	%		78	%		11	%		77	%		52	%		53	%		82	%
Net assets, end of period (000’s omitted)		$123,619			$102,361			$124,730			$99,515			$105,678			$10,471			$115,254

1. 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.

2. On June 19, 2008, Advisor Class was renamed Class A.

3. Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

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

Financial Highlights Wells Fargo Advantage High Income Fund 21

(For a share outstanding throughout each period)

	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,						Year Ended May 31,
Class B				2011			20101			2010			20092
Net asset value, beginning of period	$	7.17		$	7.13		$	6.90		$	6.35		$	6.99
Net investment income		0.21	3		0.45			0.12			0.48			0.39
Net realized and unrealized gains (losses) on investments		0.33			0.04			0.23			0.54			(0.64	)
Total from investment operations		0.54			0.49			0.35			1.02			(0.25	)
Distributions to shareholders from
Net investment income		(0.21	)		(0.45	)		(0.12	)		(0.47	)		(0.39	)
Net asset value, end of period	$	7.50		$	7.17		$	7.13		$	6.90		$	6.35
Total return4		7.63	%		6.76	%		5.10	%		16.33	%		(3.11	)%
Ratios to average net assets (annualized)
Gross expenses		1.74	%		1.76	%		1.75	%		1.78	%		1.79	%
Net expenses		1.65	%		1.65	%		1.65	%		1.65	%		1.65	%
Net investment income		5.78	%		6.04	%		6.66	%		7.17	%		7.35	%
Supplemental data
Portfolio turnover rate		8	%		78	%		11	%		77	%		52	%
Net assets, end of period (000’s omitted)		$1,829			$2,452			$5,451			$4,564			$7,908

1. 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.

2. For the period from July 18, 2008 (commencement of class operations) to May 31, 2009.

3. Calculated based upon average shares outstanding.

4. Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

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

22 Wells Fargo Advantage High Income Fund Financial Highlights

(For a share outstanding throughout each period)

	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,						Year Ended May 31,
Class C				2011			20101			2010			20092
Net asset value, beginning of period	$	7.17		$	7.14		$	6.90		$	6.35		$	6.99
Net investment income		0.21			0.45			0.12			0.48			0.39
Net realized and unrealized gains (losses) on investments		0.33			0.03			0.24			0.54			(0.64	)
Total from investment operations		0.54			0.48			0.36			1.02			(0.25	)
Distributions to shareholders from
Net investment income		(0.21	)		(0.45	)		(0.12	)		(0.47	)		(0.39	)
Net asset value, end of period	$	7.50		$	7.17		$	7.14		$	6.90		$	6.35
Total return3		7.63	%		6.62	%		5.25	%		16.33	%		(3.12	)%
Ratios to average net assets (annualized)
Gross expenses		1.74	%		1.76	%		1.75	%		1.78	%		1.79	%
Net expenses		1.65	%		1.65	%		1.65	%		1.65	%		1.65	%
Net investment income		5.77	%		6.01	%		6.75	%		7.04	%		7.29	%
Supplemental data
Portfolio turnover rate		8	%		78	%		11	%		77	%		52	%
Net assets, end of period (000’s omitted)		$32,224			$30,645			$30,332			$18,573			$13,460

1. 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.

2. For the period from July 18, 2008 (commencement of class operations) to May 31, 2009.

3. Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

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

Financial Highlights Wells Fargo Advantage High Income Fund 23

(For a share outstanding throughout each period)

	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,
Administrator Class				2011			20101
Net asset value, beginning of period	$	7.24		$	7.20		$	7.23
Net investment income		0.24			0.51			0.04
Net realized and unrealized gains (losses) on investments		0.33			0.04			(0.02	)
Total from investment operations		0.57			0.55			0.02
Distributions to shareholders from
Net investment income		(0.24	)		(0.51	)		(0.05	)
Net asset value, end of period	$	7.57		$	7.24		$	7.20
Total return2		8.04	%		7.66	%		0.22	%
Ratios to average net assets (annualized)
Gross expenses		0.89	%		0.92	%		0.99	%
Net expenses		0.79	%		0.79	%		0.84	%
Net investment income		6.61	%		6.73	%		7.78	%
Supplemental data
Portfolio turnover rate		8	%		78	%		11	%
Net assets, end of period (000’s omitted)		$17,562			$14,654			$10

1. For the period from July 30, 2010 (commencement of class operations) to August 31, 2010.

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

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

24 Wells Fargo Advantage High Income Fund Financial Highlights

(For a share outstanding throughout each period)

	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,						Year Ended May 31,
Institutional Class				2011			20101			2010			2009			2008			2007
Net asset value, beginning of period	$	7.24		$	7.20		$	6.96		$	6.40		$	7.31		$	7.96		$	7.70
Net investment income		0.25			0.54			0.14			0.57			0.53			0.56			0.59
Net realized and unrealized gains (losses) on investments		0.33			0.04			0.24			0.54			(0.91	)		(0.65	)		0.26
Total from investment operations		0.58			0.58			0.38			1.11			(0.38	)		(0.09	)		0.85
Distributions to shareholders from
Net investment income		(0.25	)		(0.54	)		(0.14	)		(0.55	)		(0.53	)		(0.56	)		(0.59	)
Net asset value, end of period	$	7.57		$	7.24		$	7.20		$	6.96		$	6.40		$	7.31		$	7.96
Total return2		8.19	%		7.98	%		5.52	%		17.76	%		(4.75	)%		(1.06	)%		11.39	%
Ratios to average net assets (annualized)
Gross expenses		0.67	%		0.68	%		0.67	%		0.68	%		0.70	%		0.80	%		0.75	%
Net expenses		0.50	%		0.50	%		0.50	%		0.50	%		0.50	%		0.48	%		0.43	%
Net investment income		6.91	%		7.15	%		7.94	%		8.18	%		8.42	%		8.15	%		7.53	%
Supplemental data
Portfolio turnover rate		8	%		78	%		11	%		77	%		52	%		53	%		82	%
Net assets, end of period (000’s omitted)		$304,485			$238,490			$197,158			$189,936			$119,004			$90,200			$242

1. 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.

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

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

Financial Highlights Wells Fargo Advantage High Income Fund 25

(For a share outstanding throughout each period)

	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,						Year Ended May 31,
Investor Class				2011			20101			2010			2009			2008			2007
Net asset value, beginning of period	$	7.20		$	7.16		$	6.93		$	6.37		$	7.28		$	7.92		$	7.66
Net investment income		0.23			0.50			0.13			0.53			0.50			0.53			0.55
Net realized and unrealized gains (losses) on investments		0.33			0.04			0.23			0.55			(0.91	)		(0.64	)		0.26
Total from investment operations		0.56			0.54			0.36			1.08			(0.41	)		(0.11	)		0.81
Distributions to shareholders from
Net investment income		(0.23	)		(0.50	)		(0.13	)		(0.52	)		(0.50	)		(0.53	)		(0.55	)
Net asset value, end of period	$	7.53		$	7.20		$	7.16		$	6.93		$	6.37		$	7.28		$	7.92
Total return2		7.99	%		7.53	%		5.27	%		17.28	%		(5.20	)%		(1.35	)%		10.95	%
Ratios to average net assets (annualized)
Gross expenses		1.03	%		1.04	%		1.04	%		1.07	%		1.10	%		1.33	%		1.33	%
Net expenses		0.93	%		0.93	%		0.94	%		0.95	%		0.92	%		0.86	%		0.86	%
Net investment income		6.49	%		6.73	%		7.49	%		7.76	%		7.95	%		7.08	%		7.07	%
Supplemental data
Portfolio turnover rate		8	%		78	%		11	%		77	%		52	%	��	53	%		82	%
Net assets, end of period (000’s omitted)		$318,660			$278,024			$322,015			$286,836			$231,308			$179,909			$230,287

1. 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.

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

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

26 Wells Fargo Advantage High Income Fund Notes to Financial Statements (Unaudited)

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 Wells Fargo Advantage High Income Fund (the “Fund”) which 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 the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Securities valuation

Fixed income securities with original maturities exceeding 60 days are valued based on available evaluated prices received from an independent pricing service approved by the 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 Fund’s 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.

Investments in equity securities are valued each business day as of the close of regular trading on the New York Stock Exchange, which is usually 4:00 p.m. (Eastern Time). Securities which are traded on a national or foreign securities exchange are valued at the last reported sales price, except that securities listed on The Nasdaq Stock Market, Inc. (“Nasdaq”) are valued at the Nasdaq Official Closing Price (“NOCP”), and if no NOCP is available, then at the last reported sales price. If no sales price is shown on the Nasdaq, the bid price will be used. In the absence of any sale of securities listed on the Nasdaq, and in the case of other securities (including U.S. Government obligations, but excluding debt securities maturing in 60 days or less), the price will be deemed “stale” and the valuations will be determined in accordance with the Fund’s Fair Value Procedures.

Investments in open-end mutual funds and non-registered investment companies are generally valued at net asset value.

Investments which are not valued using any of the methods discussed above, are valued at their fair value, as determined by procedures established in good faith and approved by the Board of Trustees.

Security loans

The Fund may lend its securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. The Fund continues to receive interest or dividends on the securities loaned. The 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 a securities lending transaction, the net asset value of the 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 the instrument in which collateral is invested. The amount of securities lending activity undertaken by the Fund fluctuates from time to time. In the event of default or bankruptcy by the borrower, the Fund may be prevented from recovering the loaned securities or gaining access to the collateral or may experience delays or costs in doing so. In 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 Fund lends its securities through an unaffiliated securities lending agent. Cash collateral received in connection with its 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

Notes to Financial Statements (Unaudited) Wells Fargo Advantage High Income Fund 27

Wells Fargo Funds Management LLC (“Funds Management”) and is sub-advised by Wells Capital Management Incorporated (“Wells Capital Management”). Funds Management receives an 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 Statement of Operations.

For Wells Fargo Advantage Funds that participated in securities lending activity prior to February 13, 2009, certain structured investment vehicles purchased in a joint account by the former securities lending agent defaulted or were impaired. Certain of the Wells Fargo Advantage Funds still hold ownership interest in these structured investment vehicles, which have since been restructured as pass-through securities. If the Fund holds an ownership interest in such pass-through securities, information regarding this ownership interest can be found in the Portfolio of Investments under the category “Other”.

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.

Term loans

The 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.

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.

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 income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.

The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities.

Under the recently enacted Regulated Investment Company Modernization Act of 2010, the Fund is permitted to carry forward capital losses incurred in taxable years which began after December 22, 2010 for an unlimited period. However, any losses incurred are required to be utilized prior to the losses incurred in pre-enactment taxable years. As a result of

28 Wells Fargo Advantage High Income Fund Notes to Financial Statements (Unaudited)

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.

As of August 31, 2011, the Fund had net capital loss carryforwards, which were available to offset future net realized capital gains, in the amount of $3,946,738 with $1,794,616 expiring in 2015, $2,102,320 expiring in 2016 and $49,802 expiring in 2017.

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 significant unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:

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

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

n Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

As of February 29, 2012, the inputs used in valuing the Fund’s assets, which are carried at fair value, were as follows:

Investments in Securities	Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Corporate bonds and notes	$	0	$	649,756,264	$	0	$	649,756,264
Municipal bonds and notes		0		3,249,356		0		3,249,356
Term loans		0		21,681,594		0		21,681,594
Yankee corporate bonds and notes		0		64,252,693		0		64,252,693
Equity securities
Warrants		0		0		2,302		2,302
Other		0		0		850,637		850,637
Short-term investments
Investment companies		52,511,475		9,249,208		0		61,760,683
	$	52,511,475	$	748,189,115	$	852,939	$	801,553,529

Further details on the major security types listed above can be found in the Portfolio of Investments.

Notes to Financial Statements (Unaudited) Wells Fargo Advantage High Income Fund 29

Transfers in and transfers out are recognized at the end of the reporting period. For the six months ended February 29, 2012, the Fund 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:

	Warrants		Term loans			Other			Total
Balance as of August 31, 2011	$	2,302	$	4,020,000		$	1,179,824		$	5,202,126
Accrued discounts (premiums)		0		(6,744	)		0			(6,744	)
Realized gains (losses)		0		(17,901	)		0			(17,901	)
Change in unrealized gains (losses)		0		44,430			(195,814	)		(151,384	)
Purchases		0		0			0			0
Sales		0		(1,454,545	)		(133,373	)		(1,587,918	)
Transfers into Level 3		0		0			0			0
Transfers out of Level 3		0		(2,585,240	)		0			(2,585,240	)
Balance as of February 29, 2012	$	2,302	$	0		$	850,637		$	852,939
Change in unrealized gains (losses) relating to securities still held at February 29, 2012	$	0	$	0		$	(264,558	)	$	(264,558	)

Transfers out of Level 3 into Level 2 are due to the availability of significant observable inputs which are currently used in the determination of the fair value of the securities.

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Advisory fee

The Trust has entered into an advisory contract with Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”). The 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 Fund.

Pursuant to the contract, Funds Management is entitled to receive an annual advisory fee starting at 0.50% and declining to 0.40% as the average daily net assets of the Fund increase. For the six months ended February 29, 2012, the advisory fee was equivalent to an annual rate of 0.49% of the Fund’s average daily net assets.

Funds Management has retained the services of certain sub-advisers to provide daily portfolio management to the Fund. The fees related to sub-advisory services are borne directly by Funds Management and do not increase the overall fees paid by the Fund. Wells Capital Management, an affiliate of Funds Management, is the sub-adviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.35% and declining to 0.20% as the average daily net assets of the Fund increase.

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 the Fund an annual fund level administration fee starting at 0.05% and declining to 0.03% as the average daily net assets of the Fund increase and a class level administration fee which is calculated based on the average daily net assets of each class as follows:

	Class Level Administration Fee
Class A, Class B, Class C		0.16	%
Administrator Class		0.10
Institutional Class		0.08
Investor Class		0.19

Funds Management has contractually waived and/or reimbursed 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

30 Wells Fargo Advantage High Income Fund Notes to Financial Statements (Unaudited)

expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through July 11, 2013 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.90% for Class A, 1.65% for Class B, 1.65% for Class C, 0.80% for Administrator Class, 0.50% for Institutional Class and 0.93% for Investor Class.

Distribution fees

The Trust has adopted a Distribution Plan for Class B and Class C shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. Distribution fees are charged to Class B and Class C shares and paid to Wells Fargo Funds Distributor, LLC, the principal underwriter, at an annual rate of 0.75% of the average daily net assets of Class B and Class C shares.

For the six months ended February 29, 2012, Wells Fargo Funds Distributor, LLC received $12,149 from the sale of Class A shares and $827 and $631 in contingent deferred sales charges from redemptions of Class B and Class C shares, respectively.

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 the 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, excluding U.S. Government obligations (if any) and short-term securities (securities with maturities of one year or less at purchase date), for the six months ended February 29, 2012 were $135,629,835 and $51,248,356, respectively.

6. BANK BORROWINGS

The Trust (excluding the money market funds) and Wells Fargo Variable Trust are parties to a $150,000,000 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, an annual commitment fee equal to 0.10% of the unused balance is allocated to each participating fund. Prior to September 6, 2011, the revolving credit agreement was for $125,000,000 and the annual commitment fee paid by the Fund was 0.125% of the unused balance. For the six months ended February 29, 2012, the Fund paid $869 in commitment fees.

For the six months ended February 29, 2012, there were no borrowings by the Fund under the agreement.

7. 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 Fund and, therefore, cannot be estimated.

8. NEW ACCOUNTING PRONOUNCEMENTS

In May 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-04 “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs”. ASU No. 2011-04 amends FASB ASC Topic 820, Fair Value Measurements and Disclosures, to establish common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with GAAP. The ASU is effective prospectively for interim and annual periods beginning after December 15, 2011. Management expects that adoption of the ASU will result in additional disclosures in the financial statements, as applicable.

In April 2011, FASB issued ASU No. 2011-03 “Reconsideration of Effective Control for Repurchase Agreements”. ASU No. 2011-03 amends FASB ASC Topic 860, Transfers and Servicing, specifically the criteria required to determine whether a repurchase agreement (repo) and similar agreements should be accounted for as sales of financial assets or secured

Notes to Financial Statements (Unaudited) Wells Fargo Advantage High Income Fund 31

borrowings with commitments. ASU No. 2011-03 changes the assessment of effective control by focusing on the transferor’s contractual rights and obligations and removing the criterion to assess its ability to exercise those rights or honor those obligations. This could result in changes to the way entities account for certain transactions including repurchase agreements, mortgage dollar rolls and reverse repurchase agreements. The ASU will become effective on a prospective basis for new transfers and modifications to existing transactions as of the beginning of the first interim or annual period beginning on or after December 15, 2011. Management has evaluated the impact of adopting the ASU and expects no significant changes.

32 Wells Fargo Advantage High Income 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 wellsfargoadvantagefunds.com, or visiting the SEC Web site at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge on the Fund’s Web site at wellsfargoadvantagefunds.com or by visiting the SEC Web site at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available on the Fund’s Web site (wellsfargoadvantagefunds.com) 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 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.

Other Information (Unaudited) Wells Fargo Advantage High Income Fund 33

BOARD OF TRUSTEES

The following table provides basic information about the Board of Trustees (the “Trustees”) of the Trust and Officers of the Trust. This table should be read in conjunction with the Prospectus and the Statement of Additional Information¹ of 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 137 funds comprising the Wells Fargo Funds 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 Year of Birth	Position Held and Length of Service	Principal Occupations During Past Five Years	Other Directorships During Past Five Years
Peter G. Gordon (Born 1942)	Trustee, since 1998; Chairman, since 2005 (Lead Trustee since 2001)	Co-Founder, Retired Chairman, President and CEO of Crystal Geyser Water Company. Trustee Emeritus, Colby College	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 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 40 portfolios as of 12/31/11); Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of Corporate Governance Research Program and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust

34 Wells Fargo Advantage High Income Fund Other Information (Unaudited)

Name and Year of Birth	Position Held and Length of Service	Principal Occupations During Past Five Years	Other Directorships During Past Five Years
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	Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield 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. Director and Vice Chair of The Free Trust (non-profit corporation). Director of the American Chestnut Foundation (non-profit corporation).	Asset Allocation Trust

Officers

Name and Year of Birth	Position Held and 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 Senior 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.
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. 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 Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the Web site at wellsfargoadvantagefunds.com.

List of Abbreviations Wells Fargo Advantage High Income Fund 35

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

ACB —  Agricultural Credit Bank

ADR —  American Depository 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

AUD —  Australian Dollar

BAN —  Bond Anticipation Notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazil Real

CAB —  Capital Appreciation Bond

CAD —  Canadian Dollar

CCAB —  Convertible Capital Appreciation Bond

CDA —  Community Development Authority

CDO —  Collateralized Debt Obligation

CHF —  Swiss Franc

COP —  Certificate of Participation

CR —  Custody Receipts

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

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-Traded Fund

EUR —  Euro

FFCB —  Federal Farm Credit Bank

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Authority

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British Pound

GDR —  Global Depository 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

HUF —  Hungarian Forint

IBC —  Insured Bond Certificate

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

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

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

PUTTER —  Puttable Tax-Exempt Receipts

R&D —  Research & Development

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real Estate Investment Trust

ROC —  Reset Option Certificates

SAVRS —  Select Auction Variable Rate Securities

SBA —  Small Business Authority

SEK —  Swedish Krona

SFHR —  Single Family Housing Revenue

SFMR —  Single Family Mortgage Revenue

SGD —  Singapore Dollar

SKK —  Slovakian Koruna

SPDR —  Standard & Poor’s Depositary Receipts

TAN —  Tax Anticipation Notes

TBA —  To Be Announced

TIPS —  Treasury Inflation-Protected Securities

TRAN —  Tax Revenue Anticipation Notes

TCR —  Transferable Custody Receipts

TRY —  Turkish Lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

XLCA —  XL Capital Assurance

ZAR —  South African Rand

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FOR MORE INFORMATION

More information about Wells Fargo Advantage Funds is available free upon request. To obtain literature, please write, e-mail, visit the Fund’s Web site, or call:

Wells Fargo Advantage Funds

P.O. Box 8266

Boston, MA 02266-8266

E-mail: wfaf@wellsfargo.com

Web site: wellsfargoadvantagefunds.com

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 wellsfargoadvantagefunds.com. 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

© 2012 Wells Fargo Funds Management, LLC. All rights reserved.

208522 04-12 SA217/SAR217 2-12

Wells Fargo Advantage

High Yield Bond Fund

Semi-Annual Report

February 29, 2012

Reduce clutter. Save trees.

Sign up for electronic delivery of prospectuses and shareholder reports at wellsfargo.com/advantagedelivery

Contents

Letter to Shareholders	2
Performance Highlights	5
Fund Expenses	7
Portfolio of Investments	8
Financial Statements
Statement of Assets and Liabilities	18
Statement of Operations	19
Statements of Changes in Net Assets	20
Financial Highlights	21
Notes to Financial Statements	25
Other Information	31
List of Abbreviations	34

The views expressed and any forward-looking statements are as of February 29, 2012, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Advantage Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements; the views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC, disclaims any obligation to publicly update or revise any views expressed or forward-looking statements.

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 FundsSM).
1996	Evergreen Investments and Keystone Funds merge.
1997	Wells Fargo launches Wells Fargo Advantage WealthBuilder PortfoliosSM, 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 a fund’s investment objectives, risks, charges, and expenses before investing. For a current prospectus and, if available, a summary prospectus, containing this and other information, visit wellsfargoadvantagefunds.com. 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.

“Dow Jones^®” and “Dow Jones Target Date Indexes^SM” are service marks of Dow Jones Trademark Holdings, LLC (“Dow Jones”), have been licensed to CME Group Index Services LLC (“CME Indexes”) and have been sublicensed for use for certain purposes by Global Index Advisors, Inc, and Wells Fargo Funds Management, LLC. The Wells Fargo Advantage Dow Jones Target Date Funds^SM based on the Dow Jones Target Date Indexes^SM, are not sponsored, endorsed, sold or promoted by Dow Jones, CME Indexes or their respective affiliates and none of them makes any representation regarding the advisability of investing in such product(s).

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

Not part of the semi-annual report.

Wells Fargo Advantage Funds offers more than 110 mutual funds across a wide range of asset classes, representing over $218 billion in assets under management, as of February 29, 2012.

Equity Funds
Asia Pacific Fund	Equity Value Fund	Precious Metals Fund
C&B Large Cap Value Fund	Global Opportunities Fund	Premier Large Company Growth Fund
C&B Mid Cap Value Fund	Growth Fund	Small Cap Opportunities Fund
Capital Growth Fund	Index Fund	Small Cap Value Fund
Common Stock Fund	International Equity Fund	Small Company Growth Fund
Disciplined U.S. Core Fund	International Value Fund	Small Company Value Fund
Discovery Fund†	Intrinsic Small Cap Value Fund	Small/Mid Cap Core Fund
Diversified Equity Fund	Intrinsic Value Fund	Small/Mid Cap Value Fund
Diversified International Fund	Intrinsic World Equity Fund	Special Mid Cap Value Fund
Diversified Small Cap Fund	Large Cap Core Fund	Special Small Cap Value Fund
Emerging Growth Fund	Large Cap Growth Fund	Specialized Technology Fund
Emerging Markets Equity Fund	Large Company Value Fund	Strategic Large Cap Growth Fund
Endeavor Select Fund†	Omega Growth Fund	Traditional Small Cap Growth Fund
Enterprise Fund†	Opportunity 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
Absolute Return Fund	WealthBuilder Equity Portfolio†	Target 2020 Fund†
Asset Allocation Fund	WealthBuilder Growth Allocation Portfolio†	Target 2025 Fund†
Conservative Allocation Fund	WealthBuilder Growth Balanced Portfolio†	Target 2030 Fund†
Diversified Capital Builder Fund	WealthBuilder Moderate Balanced Portfolio†	Target 2035 Fund†
Diversified Income Builder Fund	WealthBuilder Tactical Equity Portfolio†	Target 2040 Fund†
Growth Balanced Fund	Target Today Fund†	Target 2045 Fund†
Index Asset Allocation Fund	Target 2010 Fund†	Target 2050 Fund†
Moderate Balanced Fund	Target 2015 Fund†	Target 2055 Fund†
WealthBuilder Conservative Allocation Portfolio†
Money Market Funds
100% Treasury Money Market Fund	Heritage Money Market Fund†	National Tax-Free Money Market Fund
California Municipal Money Market Fund	Money Market Fund	Prime Investment Money Market Fund
Cash Investment Money Market Fund	Municipal Cash Management Money Market Fund	Treasury Plus Money Market Fund
Government Money Market Fund	Municipal Money Market Fund
Variable Trust Funds1
VT Discovery Fund†	VT Intrinsic Value Fund	VT Small Cap Growth Fund
VT Index Asset Allocation Fund	VT Omega Growth Fund	VT Small Cap Value Fund
VT International Equity Fund	VT Opportunity Fund†	VT Total Return Bond 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 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 Dow Jones Target 2055 Fund^SM, Wells Fargo Advantage Heritage Money Market Fund^SM, Wells Fargo Advantage VT Discovery Fund^SM, and Wells Fargo Advantage VT Opportunity Fund^SM are referred to as the Discovery Fund, Endeavor Select Fund, Enterprise Fund, Opportunity 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, Target 2055 Fund, Heritage Money Market Fund, VT Discovery Fund, and VT Opportunity Fund, respectively.

Not part of the semi-annual report.

2 Wells Fargo Advantage High Yield Bond Fund Letter to Shareholders

Karla M. Rabusch,

President

Wells Fargo Advantage Funds

The theme for the period was a shift from risk aversion in the first half to burgeoning trends of improving investor confidence in the second half, which significantly improved pricing in the lower-rated asset classes.

On the whole, investment-grade fixed-income securities performed positively during the period, but the strongest returns came from the high-yield market.

Dear Valued Shareholder:

We are pleased to offer you this semi-annual report for the Wells Fargo Advantage High Yield Bond Fund, which covers the six-month period that ended February 29, 2012. During the period, fixed-income performance was best among the lower-rated securities, as improved investor confidence in the U.S. economy and the U.S. credit markets encouraged investors to return to riskier asset classes.

The period began with heightened risk aversion but ended with stronger investor confidence.

The six-month period began with the worsening of the Greek crisis, which amplified risk aversion across the global credit markets. This in turn led to a powerful rally in U.S. Treasuries and a sharp decline in high-yield bond prices, most notably in the lowest-quality credit tiers. During this time, most investment-grade fixed-income markets continued to generate positive returns—although certain areas of the riskiest segments of the markets declined—and U.S. Treasury yields reached the lowest levels in decades, even surpassing the low yield levels reached in the summer of 2010.

The last three months of the period were characterized by a strong reversal of the trends of the first three months. In October 2011, the high-yield market recovered significantly, benefiting from indications of improving policy with regard to managing the debt crisis from Europe and the formal announcement of a European debt deal late in the month. Due to renewed concerns about the European Union’s ability to manage the debt crisis, November 2011 saw a modest decline in investment-grade corporate bond prices and a sharp correction in high-yield corporate bonds, but another strong recovery in pricing started in December and carried into the first two months of 2012. Investor confidence strengthened as the U.S. economy demonstrated signs of sustainable growth and U.S. credit markets began to show some resistance to the credit problems of Europe. Thus, the theme for the period was a shift from risk aversion in the first half to burgeoning trends of improving investor confidence in the second half, which significantly improved pricing in the lower-rated asset classes.

On the whole, investment-grade fixed-income securities performed positively during the period, but the strongest returns came from the high-yield market. In fact, the best returns for the six-month period came from the lowest-rated credit tiers, despite the fact that they significantly underperformed in August and September 2011. Similar trends were true in the structured products sector, as lower-rated commercial mortgage-backed securities were among the best performers for the period, despite underperforming in the first two months.

The Federal Reserve launched Operation Twist in September.

With economic concerns and credit woes escalating in Europe and some continued uncertainty about the growth outlook in the U.S. during August and September 2011, the Federal Reserve (Fed) intervened yet again with monetary accommodations—this time with “Operation Twist,” which was announced and launched in September 2011. With Operation Twist, the Fed endeavored to flatten the yield curve and drive long-term rates down by selling short-term Treasuries and using the proceeds to purchase long-term Treasuries. The Fed stated that it is unlikely to raise rates before 2014, which should keep yields on Treasuries low. Despite this announcement, problems in Europe caused Treasuries to continue to rally in the first 3 months of the period, while credit spreads on corporate and

Letter to Shareholders Wells Fargo Advantage High Yield Bond Fund 3

securitized sectors widened with increasing risk aversion. However, with an improved U.S. economic outlook and greater investor confidence, the last three months of the period saw a slight decline in U.S. Treasury prices and significant improvement in high-yield corporate bond prices. Credit spreads in the corporate and securitized sectors broadly tightened in December 2011 and January and February 2012.

Although U.S. economic conditions appear to have improved over the course of the period, the recovery continues to face some headwinds in the form of languishing housing values and elevated unemployment levels, which may continue to create some volatility in the fixed-income markets. 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. While heightened volatility may be uncomfortable to experience in the short term, we believe it can lead to unique opportunities to add relative value for investors with long-term investment horizons.

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

Periods of uncertainty can present challenges, but 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. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Advantage Funds offers more than 110 mutual funds and other investments spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance.

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 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.

Thank you for choosing to invest with Wells Fargo Advantage Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs. For current information about your fund investments, contact your investment professional, visit our Web site at wellsfargoadvantagefunds.com, or call us directly at 1-800-222-8222. We are available 24 hours a day, 7 days a week.

Sincerely,

Karla M. Rabusch

President

Wells Fargo Advantage Funds

4 Wells Fargo Advantage High Yield Bond Fund Letter to Shareholders

Notice to Shareholders

The Board of Trustees for Wells Fargo Advantage Funds has unanimously approved the following modifications to certain net asset value (NAV) waiver privileges and commission schedules:

n Effective May 1, 2012, automatic investment plan (AIP) purchases and proceeds received from systematic withdrawals will no longer qualify for NAV repurchase privileges.

n Effective May 1, 2012, discretionary rights to waive the upfront commission for Class C and “jumbo” Class A share purchases will no longer be granted to broker/dealers. However, we will continue to waive the Class C shares contingent deferred sales charge for redemptions by employer-sponsored retirement plans where the dealer of record waived its commission at the time of purchase.

n Effective July 31, 2012, NAV purchase privileges for former Evergreen Class IS and Class R shareholders are being modified to remove the ability to purchase Class A shares at NAV unless those shares are held directly with the Fund on or after July 31, 2012.

Please contact your investment professional or call us directly at 1-800-222-8222 if you have any questions on this Notice to Shareholders.

Performance Highlights (Unaudited) Wells Fargo Advantage High Yield Bond Fund 5

INVESTMENT OBJECTIVE

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

ADVISER

Wells Fargo Funds Management, LLC

SUB-ADVISER

Wells Capital Management Incorporated

PORTFOLIO MANAGERS

Niklas Nordenfelt, CFA

Phillip Susser

FUND INCEPTION

September 11, 1935

TEN LARGEST LONG-TERM HOLDINGS1 (AS OF FEBRUARY 29, 2012)
TXU Energy Company LLC, 3.50%, 10/10/2014	2.00%
Nuveen Investments Incorporated, 5.50%, 09/15/2015	1.72%
Nielson Finance LLC, 7.75%, 10/15/2018	1.67%
Sabine Pass LNG LP, 7.50%, 11/30/2016	1.51%
SunGard Data Systems Incorporated, 10.25%, 08/15/2015	1.44%
Sprint Capital Corporation, 6.88% , 11/15/2028	1.36%
Regal Cinemas Corporation, 8.63%, 07/15/2019	1.29%
CCH II Capital Corporation, 13.50%, 11/30/2016	1.27%
Cricket Communications Incorporated Series I, 7.75%, 05/15/2016	1.20%
Sprint Capital Corporation, 8.75% , 03/15/2032	1.19%

CREDIT QUALITY²

(AS OF FEBRUARY 29, 2012)

1. The ten largest long-term holdings are calculated based on the value of the securities divided by total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

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 & Poor’s rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Ratings from A to CCC may be modified by the addition of a plus (+) or minus (–) sign to show relative standing within the rating categories. Standard & Poor’s rates the creditworthiness of short-term notes from SP-1 (highest) to SP-3 (lowest). Moody’s rates the creditworthiness of bonds, ranging from Aaa (highest) to C (lowest). Ratings Aa to B may be modified by the addition of a number 1 (highest) to 3 (lowest) to show relative standing within the ratings categories. Moody’s rates the creditworthiness of short-term U.S. tax-exempt municipal securities from MIG 1/VMIG 1 (highest) to SG (lowest). Fitch rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). 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.

6 Wells Fargo Advantage High Yield Bond Fund Performance Highlights (Unaudited)

AVERAGE ANNUAL TOTAL RETURN³ (%) (AS OF FEBRUARY 29, 2012)

			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 (EKHAX)		01/20/1998		2.08		0.42			5.72		7.31		6.79		5.16		6.70		7.79		1.02%		1.02%
Class B (EKHBX)**		09/11/1935		1.40		(0.55	)		5.61		7.25		6.40		4.37		5.91		7.25		1.77%		1.77%
Class C (EKHCX)		01/21/1998		5.40		3.37			5.91		7.01		6.40		4.37		5.91		7.01		1.77%		1.77%
Administrator Class (EKHYX)		04/14/1998											6.91		5.38		6.96		8.08		0.96%		0.80%
BofA Merrill Lynch High Yield Master Index6													7.70		6.25		7.81		9.13
BofA Merrill Lynch U.S. High Yield Master II Constrained Index7													7.73		6.17		8.10		9.38

* 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 and assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s Web site – wellsfargoadvantagefunds.com

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.

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 charge 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.

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. Consult the Fund’s prospectus for additional information on these and other risks.

3. 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.

4. Reflects the expense ratios as stated in the most recent prospectuses.

5. The Adviser has committed through July 11, 2013 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver, excluding certain expenses, at 1.03% for Class A, 1.78% for Class B, 1.78% for Class C and 0.80% for Administrator Class. Without this cap, the Fund’s returns would have been lower.

6. 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 BofAMerrill Lynch U.S. High Yield Master II Constrained Index. You cannot invest directly in an index.

7. 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-in kind securities. Issues included in the index have maturities of one year or more and have a credit rating lower than BBB–/Baa3, but are not in default. The 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.

Fund Expenses (Unaudited) Wells Fargo Advantage High Yield Bond Fund 7

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and contingent deferred sales charges (if any) on redemptions 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, 2011 to February 29, 2012.

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 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.

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) and contingent deferred sales charges. 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 Account Value 09-01-2011		Ending Account Value 02-29-2012		Expenses Paid During the Period1		Net Annual Expense Ratio
Class A
Actual	$	1,000.00	$	1,067.95	$	5.24		1.02	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.79	$	5.12		1.02	%
Class B
Actual	$	1,000.00	$	1,064.01	$	9.03		1.76	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.11	$	8.82		1.76	%
Class C
Actual	$	1,000.00	$	1,064.01	$	9.08		1.77	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.06	$	8.87		1.77	%
Administrator Class
Actual	$	1,000.00	$	1,069.10	$	4.12		0.80	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.89	$	4.02		0.80	%

1. Expenses paid is equal to the annualized expense ratio of each class 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).

8 Wells Fargo Advantage High Yield Bond Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name						Shares		Value
Common Stocks: 0.06%
Consumer Discretionary: 0.00%
Hotels, Restaurants & Leisure: 0.00%
Trump Entertainment Resorts Incorporated †							1,840	$	7,360
Telecommunication Services: 0.06%
Diversified Telecommunication Services: 0.06%
Fairpoint Communications Incorporated †							70,879		266,506
Total Common Stocks (Cost $1,573,931)									273,866
	Interest Rate			Maturity Date		Principal
Corporate Bonds and Notes: 77.85%
Consumer Discretionary: 19.63%
Auto Components: 1.78%
Allison Transmission Incorporated 144A		7.13	%		05/15/2019	$	2,250,000		2,317,500
Cooper Tire & Rubber Company		7.63			03/15/2027		1,935,000		1,876,950
Cooper Tire & Rubber Company		8.00			12/15/2019		450,000		479,813
Exide Technologies		8.63			02/01/2018		550,000		427,625
Goodyear Tire & Rubber Company		7.00			05/15/2022		325,000		329,063
Goodyear Tire & Rubber Company		10.50			05/15/2016		1,918,000		2,100,229
									7,531,180
Diversified Consumer Services: 2.75%
Carriage Services Incorporated		7.88			01/15/2015		1,715,000		1,732,150
Mac-Gray Corporation		7.63			08/15/2015		1,942,000		1,995,405
Service Corporation International		7.00			05/15/2019		515,000		569,075
Service Corporation International		7.50			04/01/2027		4,080,000		4,080,000
Service Corporation International		7.63			10/01/2018		850,000		989,188
Service Corporation International		8.00			11/15/2021		525,000		610,641
Service Corporation International Series WI		7.00			06/15/2017		1,500,000		1,680,000
									11,656,459
Hotels, Restaurants & Leisure: 5.01%
Ameristar Casinos Incorporated		7.50			04/15/2021		3,150,000		3,402,000
CityCenter Holdings LLC		7.63			01/15/2016		175,000		184,625
CityCenter Holdings LLC 144A		7.63			01/15/2016		1,225,000		1,289,313
CityCenter Holdings LLC ¥		11.50			01/15/2017		1,316,279		1,423,227
Dineequity Incorporated		9.50			10/30/2018		3,450,000		3,803,625
FelCor Lodging LP		6.75			06/01/2019		1,350,000		1,380,375
Greektown Superholdings Incorporated		13.00			07/01/2015		3,550,000		3,896,125
Greektown Superholdings Incorporated		13.00			07/01/2015		2,250,000		2,469,375
NAI Entertainment Holdings LLC 144A		8.25			12/15/2017		2,350,000		2,585,000
Speedway Motorsports Incorporated		6.75			02/01/2019		225,000		234,563
Yonkers Racing Corporation 144A		11.38			07/15/2016		511,000		553,796
									21,222,024

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage High Yield Bond Fund 9

Security Name	Interest Rate			Maturity Date		Principal		Value
Media: 8.05%
Cablevision Systems Corporation		8.63	%		09/15/2017	$	900,000	$	1,014,750
CCH II Capital Corporation		13.50			11/30/2016		4,689,383		5,392,790
CCO Holdings LLC		8.13			04/30/2020		560,000		627,200
Cinemark USA Incorporated		7.38			06/15/2021		775,000		827,313
Cinemark USA Incorporated		8.63			06/15/2019		3,525,000		3,921,563
CSC Holdings LLC		7.88			02/15/2018		300,000		339,000
CSC Holdings LLC		8.50			04/15/2014		125,000		138,750
DISH DBS Corporation		7.88			09/01/2019		1,070,000		1,257,250
EchoStar DBS Corporation		6.63			10/01/2014		675,000		735,750
EchoStar DBS Corporation		7.75			05/31/2015		2,075,000		2,347,344
Gray Television Incorporated		10.50			06/29/2015		2,600,000		2,746,250
Lamar Media Corporation 144A		5.88			02/01/2022		200,000		208,750
Lamar Media Corporation		7.88			04/15/2018		1,150,000		1,265,000
Lamar Media Corporation Series C		9.75			04/01/2014		1,945,000		2,212,438
LIN Television Corporation		8.38			04/15/2018		650,000		687,375
Local TV Finance LLC 144A¥		9.25			06/15/2015		1,450,000		1,475,375
National Cinemedia LLC		7.88			07/15/2021		525,000		556,500
Nexstar Mission Broadcasting Incorporated		8.88			04/15/2017		300,000		321,000
Regal Cinemas Corporation		8.63			07/15/2019		5,000,000		5,462,500
Salem Communications Corporation		9.63			12/15/2016		2,299,000		2,534,648
									34,071,546
Specialty Retail: 2.04%
99 Cents Only Stores Incorporated 144A		11.00			12/15/2019		250,000		264,375
American Greetings Corporation		7.38			12/01/2021		450,000		464,625
CDW Finance LLC		12.54			10/12/2017		575,000		626,750
Gap Incorporated		5.95			04/12/2021		600,000		601,586
Limited Brands Incorporated		5.63			02/15/2022		1,025,000		1,055,750
Limited Brands Incorporated		6.63			04/01/2021		300,000		330,000
RadioShack Corporation «		6.75			05/15/2019		1,775,000		1,486,563
Rent A Center Incorporated		6.63			11/15/2020		400,000		416,500
Toys R Us Property Company LLC		8.50			12/01/2017		1,300,000		1,374,750
Toys R Us Property Company LLC		10.75			07/15/2017		1,825,000		2,023,469
									8,644,368
Consumer Staples: 0.18%
Food Products: 0.18%
B&G Foods Incorporated		7.63			01/15/2018		575,000		623,156
Darling International Incorporated		8.50			12/15/2018		125,000		140,625
									763,781
Energy: 13.84%
Energy Equipment & Services: 3.04%
Bristow Group Incorporated		7.50			09/15/2017		1,515,000		1,583,175
Dresser Rand Group Incorporated 144A		6.50			05/01/2021		1,025,000		1,073,688
Gulfmark Offshore Incorporated		7.75			07/15/2014		1,565,000		1,576,738
Hornbeck Offshore Services Incorporated Series B		6.13			12/01/2014		2,300,000		2,305,750
Hornbeck Offshore Services Incorporated Series B		8.00			09/01/2017		1,435,000		1,513,925

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

10 Wells Fargo Advantage High Yield Bond Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Energy Equipment & Services (continued)
Oil States International Incorporated		6.50	%		06/01/2019	$	1,375,000	$	1,478,125
PHI Incorporated		8.63			10/15/2018		3,250,000		3,331,250
									12,862,651
Oil, Gas & Consumable Fuels: 10.80%
Arch Coal Incorporated		8.75			08/01/2016		1,020,000		1,122,000
Coffeyville Resources Incorporated 144A		9.00			04/01/2015		2,250,000		2,407,500
Coffeyville Resources Incorporated 144A		10.88			04/01/2017		2,075,000		2,344,750
Consol Energy Incorporated		8.25			04/01/2020		845,000		921,050
Crestwood Midstream Part Company 144A		7.75			04/01/2019		600,000		606,000
Denbury Resources Incorporated		6.38			08/15/2021		350,000		385,875
Denbury Resources Incorporated		8.25			02/15/2020		1,400,000		1,596,000
Denbury Resources Incorporated		9.75			03/01/2016		225,000		251,156
El Paso Corporation		6.50			09/15/2020		915,000		1,010,597
El Paso Corporation		7.00			06/15/2017		2,375,000		2,654,272
El Paso Corporation		7.25			06/01/2018		4,010,000		4,540,331
El Paso Corporation		7.42			02/15/2037		760,000		841,179
El Paso Corporation (i)		8.25			02/15/2016		595,000		647,412
Energy Transfer Equity LP		7.50			10/15/2020		3,475,000		3,978,875
Ferrellgas Partners LP		9.13			10/01/2017		3,420,000		3,625,200
Forest Oil Corporation		7.25			06/15/2019		1,315,000		1,324,863
Forest Oil Corporation		8.50			02/15/2014		560,000		607,600
Holly Corporation		9.88			06/15/2017		1,870,000		2,089,725
Inergy LP		6.88			08/01/2021		421,000		406,265
Inergy LP		7.00			10/01/2018		525,000		517,125
Overseas Shipholding Group		7.50			02/15/2024		200,000		118,500
Regency Energy Partners		6.88			12/01/2018		250,000		271,250
Sabine Pass LNG LP		7.25			11/30/2013		2,600,000		2,743,000
Sabine Pass LNG LP		7.50			11/30/2016		5,950,000		6,396,250
Suburban Propane Partners LP		7.38			03/15/2020		2,550,000		2,715,750
Susser Holdings LLC		8.50			05/15/2016		1,375,000		1,509,063
Targa Resources Partners LP 144A		6.38			08/01/2022		100,000		105,250
									45,736,838
Financials: 20.04%
Capital Markets: 0.27%
Oppenheimer Holdings Incorporated		8.75			04/15/2018		1,100,000		1,122,000
Commercial Banks: 0.65%
Emigrant Bancorp Incorporated 144A (i)		6.25			06/15/2014		3,050,000		2,757,654
Consumer Finance: 12.28%
Ally Financial Incorporated		5.50			02/15/2017		625,000		633,097
American General Finance Corporation		5.40			12/01/2015		300,000		237,750
American General Finance Corporation		5.75			09/15/2016		925,000		698,375
Calpine Construction Finance Corporation 144A		7.25			10/15/2017		3,350,000		3,551,000
Calpine Construction Finance Corporation 144A		8.00			06/01/2016		1,700,000		1,848,750
CIT Group Incorporated 144A		4.75			02/15/2015		1,350,000		1,370,250
CIT Group Incorporated 144A		5.25			04/01/2014		750,000		766,875

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage High Yield Bond Fund 11

Security Name	Interest Rate			Maturity Date		Principal		Value
Consumer Finance (continued)
CIT Group Incorporated 144A		5.50	%		02/15/2019	$	1,025,000	$	1,046,781
CIT Group Incorporated 144A		7.00			05/04/2015		2,100,000		2,105,250
CIT Group Incorporated		7.00			05/01/2016		2,247,239		2,250,048
CIT Group Incorporated		7.00			05/01/2017		3,875,000		3,875,000
Ford Motor Credit Company LLC		6.63			08/15/2017		900,000		1,019,989
Ford Motor Credit Company LLC		8.00			12/15/2016		2,700,000		3,209,050
General Motors Finance Company		6.75			06/01/2018		1,200,000		1,295,188
GMAC LLC		7.50			12/31/2013		2,430,000		2,587,950
GMAC LLC		8.00			11/01/2031		525,000		586,031
International Lease Finance Corporation		6.38			03/25/2013		515,000		526,588
International Lease Finance Corporation 144A		6.50			09/01/2014		125,000		133,125
International Lease Finance Corporation 144A		6.75			09/01/2016		125,000		136,563
International Lease Finance Corporation 144A		7.13			09/01/2018		1,200,000		1,344,000
International Lease Finance Corporation		8.63			09/15/2015		1,015,000		1,126,650
Nielson Finance LLC		7.75			10/15/2018		6,365,000		7,081,063
Springleaf Finance Corporation		6.90			12/15/2017		4,875,000		3,778,125
Sprint Capital Corporation		6.88			11/15/2028		7,357,000		5,738,460
Sprint Capital Corporation		8.75			03/15/2032		5,675,000		5,050,750
									51,996,708
Diversified Financial Services: 3.78%
Ally Financial Incorporated		8.30			02/12/2015		300,000		331,500
Interactive Data Corporation		10.25			08/01/2018		1,250,000		1,409,375
NCO Group Incorporated		11.88			11/15/2014		2,650,000		2,636,750
NSG Holdings LLC 144A (i)		7.75			12/15/2025		900,000		909,000
Nuveen Investments Incorporated		5.50			09/15/2015		7,800,000		7,293,000
Nuveen Investments Incorporated		10.50			11/15/2015		1,575,000		1,645,875
Nuveen Investments Incorporated 144A		10.50			11/15/2015		450,000		468,000
Samson Investment Compan 144A		9.75			02/15/2020		600,000		631,500
USI Holdings Corporation 144A±		4.38			11/15/2014		475,000		440,563
USI Holdings Corporation 144A		9.75			05/15/2015		250,000		250,625
									16,016,188
Insurance: 0.76%
HUB International Holdings Incorporated 144A		10.25			06/15/2015		3,150,000		3,228,750
REITs: 2.30%
Dupont Fabros Technology Incorporated		8.50			12/15/2017		3,970,000		4,386,850
MPT Operating Partnership LP		6.38			02/15/2022		325,000		335,563
MPT Operating Partnership LP		6.88			05/01/2021		1,625,000		1,727,578
Omega Healthcare Investors Incorporated		6.75			10/15/2022		2,200,000		2,378,750
Ventas Incorporated		9.00			05/01/2012		909,000		917,239
									9,745,980
Health Care: 4.43%
Health Care Equipment & Supplies: 0.19%
Biomet Incorporated ¥		10.38			10/15/2017		515,000		560,706
Fresenius Medical Care Incorporated 144A		5.75			02/15/2021		225,000		235,688
									796,394

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

12 Wells Fargo Advantage High Yield Bond Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Health Care Providers & Services: 3.84%
AvivHealthcare Incorporated		7.75	%		02/15/2019	$	1,150,000	$	1,175,875
Centene Corporation		5.75			06/01/2017		975,000		1,016,438
Community Health Systems Incorporated Series WI «		8.88			07/15/2015		1,253,000		1,312,518
Emergency Medical Services Corporation		8.13			06/01/2019		425,000		446,250
Fresenius Medical Care US Finance Incorporated		6.88			07/15/2017		525,000		582,750
HCA Incorporated		5.88			03/15/2022		100,000		102,500
HCA Incorporated		6.50			02/15/2020		2,050,000		2,198,625
HCA Incorporated		7.25			09/15/2020		1,000,000		1,090,000
HCA Incorporated		7.50			02/15/2022		325,000		351,813
HCA Incorporated		8.50			04/15/2019		175,000		196,000
Health Management plc		6.13			04/15/2016		2,000,000		2,087,500
Health Management plc 144A		7.38			01/15/2020		225,000		234,563
HealthSouth Corporation		7.25			10/01/2018		450,000		486,000
HealthSouth Corporation		7.75			09/15/2022		450,000		489,375
PSS World Medical Incorporated 144A		6.38			03/01/2022		200,000		208,000
Sabra Health Care LP		8.13			11/01/2018		1,875,000		2,010,938
United Surgical Partners International Incorporated		8.88			05/01/2017		2,190,000		2,285,813
									16,274,958
Pharmaceuticals: 0.40%
Mylan Incorporated 144A		6.00			11/15/2018		750,000		784,688
Mylan Incorporated 144A		7.63			07/15/2017		100,000		110,688
Mylan Incorporated 144A		7.88			07/15/2020		700,000		782,250
									1,677,626
Industrials: 3.13%
Aerospace & Defense: 0.08%
TransDigm Group Incorporated		7.75			12/15/2018		300,000		330,000
Building Products: 0.09%
Griffon Corporation		7.13			04/01/2018		375,000		390,000
Commercial Services & Supplies: 1.86%
Corrections Corporation of America		7.75			06/01/2017		1,445,000		1,575,050
Geo Group Incorporated		7.75			10/15/2017		1,705,000		1,837,138
Iron Mountain Incorporated		8.00			06/15/2020		1,400,000		1,494,500
Iron Mountain Incorporated		8.38			08/15/2021		1,440,000		1,600,200
KAR Holdings Incorporated ±		4.55			05/01/2014		1,375,000		1,368,125
									7,875,013
Electrical Equipment: 0.07%
Homer City Funding LLC		8.73			10/01/2026		337,200		303,480
Machinery: 0.37%
Columbus McKinnon Corporation		7.88			02/01/2019		525,000		549,938
Titan International Incorporated		7.88			10/01/2017		400,000		425,000
UR Financing Escrow Corporation 144A		5.75			07/15/2018		375,000		385,313
UR Financing Escrow Corporation 144A		7.63			04/15/2022		200,000		207,000
									1,567,251

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage High Yield Bond Fund 13

Security Name	Interest Rate			Maturity Date		Principal		Value
Marine: 0.25%
Hornbeck Offshore Services Company		1.63	%		11/15/2026	$	975,000	$	1,068,405
Road & Rail: 0.41%
RailAmerica Incorporated		9.25			07/01/2017		1,531,000		1,707,065
Information Technology: 4.93%
Communications Equipment: 0.43%
Allbritton Communications Company		8.00			05/15/2018		1,275,000		1,348,313
Avaya Incorporated		9.75			11/01/2015		450,000		450,000
									1,798,313
Computers & Peripherals: 0.13%
Seagate Technology HDD Holdings		7.75			12/15/2018		500,000		562,500
Internet Software & Services: 0.35%
Equinix Incorporated		7.00			07/15/2021		75,000		82,875
Equinix Incorporated		8.13			03/01/2018		1,270,000		1,417,638
									1,500,513
IT Services: 4.02%
Audatex North American Incorporated 144A		6.75			06/15/2018		175,000		182,219
Fidelity National Information Services		7.63			07/15/2017		929,000		1,013,771
Fidelity National Information Services 144A		7.63			07/15/2017		1,850,000		2,009,563
Fidelity National Information Services		7.88			07/15/2020		774,000		870,750
First Data Corporation		11.25			03/31/2016		3,175,000		3,008,313
SunGard Data Systems Incorporated		4.88			01/15/2014		857,000		882,710
SunGard Data Systems Incorporated		7.38			11/15/2018		550,000		591,250
SunGard Data Systems Incorporated		7.63			11/15/2020		100,000		108,000
SunGard Data Systems Incorporated		10.25			08/15/2015		5,850,000		6,098,625
TW Telecommunications Holdings Incorporated		8.00			03/01/2018		2,075,000		2,274,719
									17,039,920
Materials: 1.98%
Chemicals: 0.33%
Celanese US Holdings LLC		6.63			10/15/2018		1,000,000		1,095,000
Solutia Incorporated		8.75			11/01/2017		270,000		305,775
									1,400,775
Containers & Packaging: 1.65%
Ball Corporation		5.00			03/15/2022		100,000		102,250
Ball Corporation		5.75			05/15/2021		275,000		295,625
Crown Americas LLC		7.63			05/15/2017		500,000		546,250
Crown Holdings Incorporated (i)		7.50			12/15/2096		525,000		452,813
Graham Packaging Company Incorporated		9.88			10/15/2014		3,570,000		3,641,400
Owens Brockway Glass Container Incorporated		7.38			05/15/2016		1,702,000		1,927,515
									6,965,853
Metals & Mining: 0.00%
Indalex Holdings Corporation (s)		11.50			02/01/2014		3,285,000		12,319

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

14 Wells Fargo Advantage High Yield Bond Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Telecommunication Services: 6.15%
Diversified Telecommunication Services: 1.37%
GCI Incorporated		6.75	%		06/01/2021	$	625,000	$	632,813
GCI Incorporated		8.63			11/15/2019		2,560,000		2,790,400
Intelsat Jackson Holdings Company		7.25			10/15/2020		925,000		973,563
Qwest Corporation		7.63			08/03/2021		270,000		281,824
SBA Telecommunications Incorporated		8.00			08/15/2016		815,000		878,163
SBA Telecommunications Incorporated		8.25			08/15/2019		225,000		247,500
									5,804,263
Wireless Telecommunication Services: 4.78%
CC Holdings V LLC 144A		7.75			05/01/2017		2,350,000		2,561,500
Cricket Communications Incorporated		7.75			10/15/2020		155,000		154,225
Cricket Communications Incorporated Series I		7.75			05/15/2016		4,755,000		5,064,075
Crown Castle International Corporation		7.13			11/01/2019		1,500,000		1,642,500
Crown Castle International Corporation		9.00			01/15/2015		900,000		992,250
iPCS Incorporated ¥		3.80			05/01/2014		1,764,503		1,649,810
MetroPCS Communications Incorporated		6.63			11/15/2020		1,975,000		2,034,250
MetroPCS Communications Incorporated		7.88			09/01/2018		1,075,000		1,152,938
Sprint Nextel Corporation 144A		11.50			11/15/2021		525,000		572,250
Syniverse Holdings Incorporated		9.13			01/15/2019		4,075,000		4,441,750
									20,265,548
Utilities: 3.54%
Electric Utilities: 1.86%
Dolphin Subsidiary II Incorporated 144A		7.25			10/15/2021		4,375,000		4,987,500
Ipalco Enterprises Incorporated		5.00			05/01/2018		900,000		910,125
Ipalco Enterprises Incorporated 144A		7.25			04/01/2016		20,000		22,200
Otter Tail Corporation		9.00			12/15/2016		1,815,000		1,942,050
									7,861,875
Gas Utilities: 0.48%
AmeriGas Finance LLC		6.75			05/20/2020		100,000		103,000
AmeriGas Finance LLC		7.00			05/20/2022		100,000		102,625
AmeriGas Partners LP		6.25			08/20/2019		1,350,000		1,363,500
AmeriGas Partners LP		6.50			05/20/2021		450,000		454,500
									2,023,625
Independent Power Producers & Energy Traders: 1.20%
NRG Energy Incorporated «		7.38			01/15/2017		4,500,000		4,668,750
RRI Energy Incorporated		9.68			07/02/2026		460,000		428,950
									5,097,700
Total Corporate Bonds and Notes (Cost $316,790,923)									329,679,523
Non-Agency Mortgage Backed Securities: 2.00%
American Home Mortgage Assets Series 2006 Class 1A1 ±		1.14			09/25/2046		4,219,485		2,095,181
American Home Mortgage Assets Series 2006 Class 1A1		5.47			01/15/2045		1,280,000		1,357,321
Banc of America Commercial Mortgage Incorporated Series 2006 Class AM ±		5.86			07/10/2044		1,515,000		1,480,955

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage High Yield Bond Fund 15

Security Name	Interest Rate			Maturity Date			Principal		Value
Non-Agency Mortgage Backed Securities (continued)
Greenwich Capital Commercial Funding Corporation Series 2006-GG7 Class AM ±		5.88	%		07/10/2038		$	2,040,000	$	2,136,139
Lehman XS Trust Series 2006-18N Class A5A ±(i)		0.45			12/25/2036			3,731,897		1,382,750
Total Non-Agency Mortgage Backed Securities (Cost $9,226,483)										8,452,346
	Dividend Yield						Shares
Preferred Stocks: 0.14%
Financials: 0.14%
Consumer Finance: 0.14%
GMAC Capital Trust ±		8.13						26,000		610,480
Total Preferred Stocks (Cost $650,000)										610,480
	Interest Rate						Principal
Term Loans: 13.06%
Advantage Sales & Marketing Incorporated		7.75			06/18/2018		$	475,000		469,362
Allison Transmission Incorporated		2.50			08/07/2014			1,903,884		1,882,465
ASH Multifamily Laundry Systems LLC		5.00			08/28/2014			493,243		488,621
Capital Automotive LP		3.50			03/10/2017			3,169,315		3,134,453
CCM Merger Incorporated		5.00			03/01/2017			3,297,968		3,293,845
Coinmach Corporation		3.00			11/20/2014			3,177,452		2,926,433
Community Health Systems Incorporated		2.25			07/25/2014			2,634,465		2,599,426
Community Health Systems Incorporated		2.25			07/25/2014			135,334		133,534
Dunkin Brands Incorporated		3.00			11/23/2017			500,000		498,510
Fairpoint Communications Incorporated		4.50			01/22/2016			3,550,736		2,996,218
Federal Mogul Corporation		1.94			12/29/2014			2,836,092		2,712,722
Federal Mogul Corporation		1.94			12/28/2015			1,446,985		1,384,042
First Data Corporation		2.75			09/24/2014			1,392,761		1,331,480
First Data Corporation		2.75			09/24/2014			1,742,926		1,666,238
First Data Corporation		2.75			09/24/2014			2,600,651		2,486,222
Focus Brands Incorporated <		9.00			08/22/2018			450,000		445,500
Goodyear Tire & Rubber Company		1.50			04/30/2014			1,875,000		1,844,531
Gray Television Incorporated		3.50			12/31/2014			1,895,330		1,872,529
HCA Incorporated		2.50			05/01/2016			2,887,500		2,795,216
HHI Holdings Limited		5.50			03/21/2017			397,000		396,008
HMSC Corporation		5.50			10/03/2014			677,829		399,919
Level 3 Financing Incorporated		2.25			03/13/2014			1,000,000		983,500
Local TV Finance LLC		4.00			05/07/2015			2,796,494		2,782,512
LPL Holdings Incorporated		1.75			06/28/2013			1,767,021		1,753,397
Merisant Company (i)		4.50			01/08/2014			893,738		880,332
Mission Broadcasting Incorporated		4.00			09/30/2016	��		77,736		77,153
Newsday LLC		10.50			08/01/2013			2,825,000		2,906,219
Nexstar Broadcasting Incorporated		4.00			09/30/2016			121,591		120,679
Springleaf Finance Corporation		4.25			05/05/2017			700,000		638,127
SunGard Data Systems Incorporated		1.75			02/28/2014			446,911		445,870
The Geo Group Incorporated		2.75			06/22/2017			320,125		318,524
TXU Energy Company LLC		3.50			10/10/2014			13,917,978		8,471,177
TXU Energy Company LLC		4.50			10/10/2017			275,000		153,398
Total Term Loans (Cost $58,745,441)										55,288,162

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

16 Wells Fargo Advantage High Yield Bond Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Yankee Corporate Bonds and Notes: 3.84%
Consumer Discretionary: 0.64%
Media: 0.64%
Videotron Limited 144A		5.00	%		07/15/2022	$	225,000	$	225,000
Videotron Limited		6.38			12/15/2015		380,000		388,550
Videotron Limited		6.88			01/15/2014		331,000		332,241
Videotron Limited		9.13			04/15/2018		1,585,000		1,755,388
									2,701,179
Energy: 0.06%
Oil, Gas & Consumable Fuels: 0.06%
Griffin Coal Mining Company Limited (s)		9.50			12/01/2016		342,722		272,036
Financials: 0.00%
Diversified Financial Services: 0.00%
Preferred Term Securities XII Limited (s)(i)		1.17			12/24/2033		720,000		216
Information Technology: 0.36%
Computers & Peripherals: 0.36%
Seagate HDD Cayman		6.88			05/01/2020		400,000		438,000
Seagate Technology Holdings		6.80			10/01/2016		650,000		723,125
Seagate Technology Holdings 144A		7.00			11/01/2021		350,000		387,625
									1,548,750
Materials: 0.83%
Metals & Mining: 0.83%
Novelis Incorporated		7.25			02/15/2015		990,000		983,634
Novelis Incorporated		8.38			12/15/2017		550,000		602,250
Novelis Incorporated		8.75			12/15/2020		1,725,000		1,923,375
									3,509,259
Telecommunication Services: 1.95%
Wireless Telecommunication Services: 1.95%
Intelsat Jackson Holdings		7.25			04/01/2019		400,000		420,000
Intelsat Jackson Holdings		7.50			04/01/2021		550,000		581,625
Intelsat Limited		8.50			11/01/2019		1,100,000		1,207,250
Intelsat Limited		9.50			06/15/2016		2,214,000		2,330,235
Intelsat Limited		11.25			06/15/2016		2,375,000		2,511,563
Telesat Canada Incorporated		11.00			11/01/2015		1,125,000		1,199,510
									8,250,183
Total Yankee Corporate Bonds and Notes (Cost $15,648,424)									16,281,623

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage High Yield Bond Fund 17

Security Name	Yield			Shares		Value
Short-Term Investments: 3.40%
Investment Companies: 3.40%
Wells Fargo Advantage Cash Investment Money Market Fund, Institutional Class (l)(u)##		0.02	%		8,522,722	$	8,522,722
Wells Fargo Securities Lending Cash Investments, LLC (l)(u)(v)(r)		0.15			5,880,475		5,880,475
Total Short-Term Investments (Cost $14,403,197)							14,403,197

Total Investments in Securities
(Cost $417,038,399)*	100.35	%		424,989,197
Other Assets and Liabilities, Net	(0.35	)		(1,502,817	)
Total Net Assets	100.00	%	$	423,486,380

† Non-income earning security.

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

¥ A payment-in-kind (PIK) security is a security 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.

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

(i) Illiquid security.

± Variable rate investment.

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

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

(l) Investment in an affiliate.

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

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

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

(r) The investment company is exempt from registration under Section 3(c)(7) of the 1940 Act.

* Cost for federal income tax purposes is $418,133,214 and net unrealized appreciation (depreciation) consists of:

Gross unrealized appreciation	$	17,979,853
Gross unrealized depreciation		(11,123,870	)
Net unrealized appreciation	$	6,855,983

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

18 Wells Fargo Advantage High Yield Bond Fund Statement of Assets and Liabilities—February 29, 2012 (Unaudited)

Assets
Investments
In unaffiliated securities (including securities on loan), at value (see cost below)	$	410,586,000
In affiliated securities, at value (see cost below)		14,403,197
Total investments, at value (see cost below)		424,989,197
Foreign currency, at value (see cost below)		45
Receivable for investments sold		762,308
Receivable for Fund shares sold		431,800
Receivable for interest		7,161,240
Receivable for securities lending income		1,147
Prepaid expenses and other assets		159,551
Total assets		433,505,288
Liabilities
Dividends payable		705,718
Payable for investments purchased		2,269,913
Payable for Fund shares redeemed		629,722
Payable upon receipt of securities loaned		5,880,475
Advisory fee payable		176,478
Distribution fees payable		73,486
Due to other related parties		71,921
Accrued expenses and other liabilities		211,195
Total liabilities		10,018,908
Total net assets	$	423,486,380
NET ASSETS CONSIST OF
Paid-in capital	$	495,632,896
Undistributed net investment income		43,023
Accumulated net realized losses on investments		(80,140,338	)
Net unrealized gains on investments		7,950,799
Total net assets	$	423,486,380
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE1
Net assets – Class A	$	274,168,669
Shares outstanding – Class A		87,633,098
Net asset value per share – Class A		$3.13
Maximum offering price per share – Class A2		$3.28
Net assets – Class B	$	15,674,967
Shares outstanding – Class B		5,009,066
Net asset value per share – Class B		$3.13
Net assets – Class C	$	98,111,711
Shares outstanding – Class C		31,353,000
Net asset value per share – Class C		$3.13
Net assets – Administrator Class	$	35,531,033
Shares outstanding – Administrator Class		11,352,184
Net asset value per share – Administrator Class		$3.13
Investments in unaffiliated securities, at cost	$	402,635,202
Investments in affiliated securities, at cost	$	14,403,197
Total investments, at cost	$	417,038,399
Securities on loan, at value	$	5,763,137
Foreign currency, at cost	$	44

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—Six Months Ended February 29, 2012 (Unaudited) Wells Fargo Advantage High Yield Bond Fund 19

Investment income
Interest		15,394,856
Dividends		26,753
Income from affiliated securities		5,504
Securities lending income, net		2,504
Total investment income		15,429,617
Expenses
Advisory fee		994,935
Administration fees
Fund level		99,493
Class A		203,824
Class B		14,022
Class C		75,690
Administrator Class		15,527
Shareholder servicing fees
Class A		318,474
Class B		21,683
Class C		118,267
Administrator Class		36,633
Distribution fees
Class B		65,726
Class C		354,797
Custody and accounting fees		15,940
Professional fees		23,076
Registration fees		34,959
Shareholder report expenses		30,283
Trustees’ fees and expenses		5,045
Other fees and expenses		995
Total expenses		2,429,369
Less: Fee waivers and/or expense reimbursements		(22,061	)
Net expenses		2,407,308
Net investment income		13,022,309
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments		661,157
Net change in unrealized gains (losses) on investments		13,111,343
Net realized and unrealized gains (losses) on investments		13,772,500
Net increase in net assets resulting from operations	$	26,794,809

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

20 Wells Fargo Advantage High Yield Bond Fund Statements of Changes in Net Assets

	Six Months Ended February 29, 2012 (Unaudited)						Year Ended August 31, 2011
Operations
Net investment income				$	13,022,309					$	29,834,488
Net realized gains on investments					661,157						18,328,825
Net change in unrealized gains (losses) on investments					13,111,343						(19,115,729	)
Net increase in net assets resulting from operations					26,794,809						29,047,584
Distributions to shareholders from
Net investment income
Class A					(8,572,534	)					(18,554,559	)
Class B					(523,662	)					(2,252,736	)
Class C					(2,828,427	)					(6,131,831	)
Administrator Class					(1,078,575	)					(2,801,013	)
Total distributions to shareholders					(13,003,198	)					(29,740,139	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		20,748,353			62,734,106			25,463,806			80,049,390
Class B		116,465			353,905			373,740			1,173,000
Class C		1,665,130			5,071,381			3,288,763			10,292,728
Administrator Class		5,157,823			15,622,808			11,790,846			37,115,185
					83,782,200						128,630,303
Reinvestment of distributions
Class A		1,947,403			5,930,928			3,862,061			12,114,402
Class B		103,515			314,618			422,754			1,325,963
Class C		549,623			1,672,760			1,076,487			3,376,287
Administrator Class		311,814			950,723			690,610			2,169,149
					8,869,029						18,985,801
Payment for shares redeemed
Class A		(14,580,391	)		(44,146,394	)		(41,982,769	)		(131,414,318	)
Class B		(2,364,351	)		(7,136,811	)		(10,261,000	)		(32,338,491	)
Class C		(2,579,798	)		(7,811,551	)		(7,067,045	)		(22,162,100	)
Administrator Class		(2,782,522	)		(8,402,682	)		(19,790,065	)		(61,845,746	)
					(67,497,438	)					(247,760,655	)
Net increase (decrease) in net assets resulting from capital share transactions					25,153,791						(100,144,551	)
Total increase (decrease) in net assets					38,945,402						(100,837,106	)
Net assets
Beginning of period					384,540,978						485,378,084
End of period				$	423,486,380					$	384,540,978
Undistributed net investment income				$	43,023					$	23,912

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

Financial Highlights Wells Fargo Advantage High Yield Bond Fund 21

(For a share outstanding throughout each period)

	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,						Year Ended April 30,
Class A				2011			20101,2			20101			20091			20081			20071
Net asset value, beginning of period	$	3.03		$	3.05		$	3.10		$	2.39		$	3.13		$	3.40		$	3.31
Net investment income		0.10			0.21			0.08			0.25			0.27			0.25			0.24	3
Net realized and unrealized gains (losses) on investments		0.10			(0.02	)		(0.05	)		0.72			(0.76	)		(0.28	)		0.09
Total from investment operations		0.20			0.19			0.03			0.97			(0.49	)		(0.03	)		0.33
Distributions to shareholders from
Net investment income		(0.10	)		(0.21	)		(0.08	)		(0.26	)		(0.25	)		(0.24	)		(0.24	)
Net asset value, end of period	$	3.13		$	3.03		$	3.05		$	3.10		$	2.39		$	3.13		$	3.40
Total return4		6.79	%		6.07	%		0.99	%		42.27	%		(15.50	)%		(0.92	)%		10.35	%
Ratios to average net assets (annualized)
Gross expenses		1.02	%		1.02	%		1.06	%		1.14	%		1.22	%		1.12	%		1.10	%
Net expenses		1.02	%		1.02	%		1.05	%		1.13	%		1.08	%		1.07	%		1.06	%
Net investment income		6.74	%		6.60	%		7.70	%		8.96	%		10.60	%		7.82	%		7.19	%
Supplemental data
Portfolio turnover rate		13	%		70	%		46	%		129	%		119	%		110	%		48	%
Net assets, end of period (000’s omitted)		$274,169			$240,653			$281,044			$292,039			$217,199			$270,758			$335,411

1. 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 the transaction. The information for the periods prior to July 12, 2010 is that of Class A of Evergreen High Income Fund.

2. For the four months ended August 31, 2010. The Fund changed its fiscal year end from April 30 to August 31, effective August 31, 2010.

3. Calculated based upon average shares outstanding.

4. Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

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

22 Wells Fargo Advantage High Yield Bond Fund Financial Highlights

(For a share outstanding throughout each period)

	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,						Year ended April 30,
Class B				2011			20101,2			20101			20091			20081			20071
Net asset value, beginning of period	$	3.03		$	3.05		$	3.10		$	2.39		$	3.13		$	3.40		$	3.31
Net investment income		0.09	3		0.18	3		0.07			0.22			0.25	3		0.22			0.21	3
Net realized and unrealized gains (losses) on investments		0.10			(0.02	)		(0.05	)		0.73			(0.76	)		(0.28	)		0.09
Total from investment operations		0.19			0.16			0.02			0.95			(0.51	)		(0.06	)		0.30
Distributions to shareholders from
Net investment income		(0.09	)		(0.18	)		(0.07	)		(0.24	)		(0.23	)		(0.21	)		(0.21	)
Net asset value, end of period	$	3.13		$	3.03		$	3.05		$	3.10		$	2.39		$	3.13		$	3.40
Total return4		6.40	%		5.28	%		0.74	%		41.23	%		(16.13	)%		(1.65	)%		9.55	%
Ratios to average net assets (annualized)
Gross expenses		1.76	%		1.78	%		1.81	%		1.89	%		1.97	%		1.82	%		1.80	%
Net expenses		1.76	%		1.77	%		1.81	%		1.88	%		1.83	%		1.82	%		1.80	%
Net investment income		5.98	%		5.85	%		6.98	%		8.29	%		9.70	%		7.06	%		6.46	%
Supplemental data
Portfolio turnover rate		13	%		70	%		46	%		129	%		119	%		110	%		48	%
Net assets, end of period (000’s omitted)		$15,675			$21,656			$50,671			$54,017			$58,429			$108,327			$150,609

1. 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 the transaction. The information for the periods prior to July 12, 2010 is that of Class B of Evergreen High Income Fund.

2. For the four months ended August 31, 2010. The Fund changed its fiscal year end from April 30 to August 31, effective August 31, 2010.

3. Calculated based upon average shares outstanding.

4. Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

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

Financial Highlights Wells Fargo Advantage High Yield Bond Fund 23

(For a share outstanding throughout each period)

	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,						Year Ended April 30,
Class C				2011			20101,2			20101			20091			20081			20071
Net asset value, beginning of period	$	3.03		$	3.05		$	3.10		$	2.39		$	3.13		$	3.40		$	3.31
Net investment income		0.09			0.18			0.07			0.23			0.25			0.22			0.21	3
Net realized and unrealized gains (losses) on investments		0.10			(0.02	)		(0.05	)		0.72			(0.76	)		(0.28	)		0.09
Total from investment operations		0.19			0.16			0.02			0.95			(0.51	)		(0.06	)		0.30
Distributions to shareholders from
Net investment income		(0.09	)		(0.18	)		(0.07	)		(0.24	)		(0.23	)		(0.21	)		(0.21	)
Net asset value, end of period	$	3.13		$	3.03		$	3.05		$	3.10		$	2.39		$	3.13		$	3.40
Total return4		6.40	%		5.28	%		0.74	%		41.23	%		(16.13	)%		(1.65	)%		9.55	%
Ratios to average net assets (annualized)
Gross expenses		1.77	%		1.77	%		1.81	%		1.89	%		1.97	%		1.82	%		1.80	%
Net expenses		1.77	%		1.77	%		1.81	%		1.88	%		1.83	%		1.82	%		1.80	%
Net investment income		5.99	%		5.85	%		6.97	%		8.21	%		9.79	%		7.06	%		6.46	%
Supplemental data
Portfolio turnover rate		13	%		70	%		46	%		129	%		119	%		110	%		48	%
Net assets, end of period (000’s omitted)		$98,112			$95,999			$104,954			$106,886			$78,995			$118,638			$161,941

1. 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 the transaction. The information for the periods prior to July 12, 2010 is that of Class C of Evergreen High Income Fund.

2. For the four months ended August 31, 2010. The Fund changed its fiscal year end from April 30 to August 31, effective August 31, 2010.

3. Calculated based upon average shares outstanding.

4. Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

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

24 Wells Fargo Advantage High Yield Bond Fund Financial Highlights

(For a share outstanding throughout each period)

	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,						Year Ended April 30,
Administrator Class				2011			20101,2			20101			20091			20081			20071
Net asset value, beginning of period	$	3.03		$	3.05		$	3.10		$	2.39		$	3.13		$	3.40		$	3.31
Net investment income		0.10			0.22			0.08			0.26			0.28	3		0.26			0.25	3
Net realized and unrealized gains (losses) on investments		0.10			(0.03	)		(0.05	)		0.72			(0.76	)		(0.29	)		0.09
Total from investment operations		0.20			0.19			0.03			0.98			(0.48	)		(0.03	)		0.34
Distributions to shareholders from
Net investment income		(0.10	)		(0.21	)		(0.08	)		(0.27	)		(0.26	)		(0.24	)		(0.25	)
Net asset value, end of period	$	3.13		$	3.03		$	3.05		$	3.10		$	2.39		$	3.13		$	3.40
Total return4		6.91	%		6.30	%		1.07	%		42.62	%		(15.28	)%		(0.66	)%		10.65	%
Ratios to average net assets (annualized)
Gross expenses		0.94	%		0.95	%		0.87	%		0.89	%		0.94	%		0.82	%		0.80	%
Net expenses		0.80	%		0.80	%		0.81	%		0.88	%		0.80	%		0.82	%		0.80	%
Net investment income		6.96	%		6.79	%		7.95	%		9.17	%		11.89	%		8.05	%		7.42	%
Supplemental data
Portfolio turnover rate		13	%		70	%		46	%		129	%		119	%		110	%		48	%
Net assets, end of period (000’s omitted)		$35,531			$26,234			$48,709			$93,639			$68,991			$25,729			$27,147

1. 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 the transaction. The information for the periods prior to July 12, 2010 is that of Class I of Evergreen High Income Fund.

2. For the four months ended August 31, 2010. The Fund changed its fiscal year end from April 30 to August 31, effective August 31, 2010.

3. Calculated based upon average shares outstanding.

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

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

Notes to Financial Statements (Unaudited) Wells Fargo Advantage High Yield Bond Fund 25

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 Wells Fargo Advantage High Yield Bond Fund (the “Fund”) which 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 the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Securities valuation

Fixed income securities with original maturities exceeding 60 days are valued based on available evaluated prices received from an independent pricing service approved by the 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 Fund’s 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.

Investments in equity securities are valued each business day as of the close of regular trading on the New York Stock Exchange, which is usually 4:00 p.m. (Eastern Time). Securities which are traded on a national or foreign securities exchange are valued at the last reported sales price, except that securities listed on The Nasdaq Stock Market, Inc. (“Nasdaq”) are valued at the Nasdaq Official Closing Price (“NOCP”), and if no NOCP is available, then at the last reported sales price. If no sales price is shown on the Nasdaq, the bid price will be used. In the absence of any sale of securities listed on the Nasdaq, and in the case of other securities (including U.S. Government obligations, but excluding debt securities maturing in 60 days or less), the price will be deemed “stale” and the valuations will be determined in accordance with the Fund’s Fair Value Procedures.

Investments in open-end mutual funds and non-registered investment companies are generally valued at net asset value.

Investments which are not valued using any of the methods discussed above, are valued at their fair value, as determined by procedures established in good faith and approved by the Board of Trustees.

Foreign currency translation

The accounting records of the Fund 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. 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 Fund may lend its securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. The Fund continues to receive

26 Wells Fargo Advantage High Yield Bond Fund Notes to Financial Statements (Unaudited)

interest or dividends on the securities loaned. The 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 a securities lending transaction, the net asset value of the 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 the instrument in which collateral is invested. The amount of securities lending activity undertaken by the Fund fluctuates from time to time. In the event of default or bankruptcy by the borrower, the Fund may be prevented from recovering the loaned securities or gaining access to the collateral or may experience delays or costs in doing so. In 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 Fund lends its securities through an unaffiliated securities lending agent. Cash collateral received in connection with its 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 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 Statement of Operations.

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.

Term loans

The 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.

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.

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 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.

Notes to Financial Statements (Unaudited) Wells Fargo Advantage High Yield Bond Fund 27

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.

Under the recently enacted Regulated Investment Company Modernization Act of 2010, the Fund is permitted to carry forward capital losses incurred in taxable years which began after December 22, 2010 for an unlimited period. However, any losses incurred are 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.

As of August 31, 2011, the Fund had net capital loss carryforwards, which were available to offset future net realized capital gains, in the amount of $79,747,392 with $42,496,700 expiring in 2016 and $37,250,692 expiring in 2017.

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 significant unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:

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

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

n Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

As of February 29, 2012, the inputs used in valuing the Fund’s assets, which are carried at fair value, were as follows:

Investments in Securities	Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Equity securities
Common stocks	$	266,506	$	7,360	$	0	$	273,866
Preferred stocks		610,480		0		0		610,480
Corporate bonds and notes		0		329,679,523		0		329,679,523
Non-agency mortgage backed securities		0		8,452,346		0		8,452,346
Term loans		0		54,173,711		1,114,451		55,288,162
Yankee corporate bonds and notes		0		16,281,623		0		16,281,623
Short-term investments
Investment companies		8,522,722		5,880,475		0		14,403,197
	$	9,399,708	$	414,475,038	$	1,114,451	$	424,989,197

28 Wells Fargo Advantage High Yield Bond Fund Notes to Financial Statements (Unaudited)

Further details on the major security types listed above can be found in the Portfolio of Investments.

Transfers in and transfers out are recognized at the end of the reporting period. For the six months ended February 29, 2012, the Fund 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:

	Corporate bonds and notes			Term loans			Yankee corporate bonds and notes			Total
Balance as of August 31, 2011	$	462,300		$	15,291,680		$	216		$	15,754,196
Accrued discounts (premiums)		(448	)		136,661			0			136,213
Realized gains (losses)		0			113,217			0			113,217
Change in unrealized gains (losses)		(32,902	)		285,023			0			252,121
Purchases		0			125,313			0			125,313
Sales		0			(4,386,365	)		0			(4,386,365	)
Transfers into Level 3		0			0			0			0
Transfers out of Level 3		(428,950	)		(10,451,078	)		(216	)		(10,880,244	)
Balance as of February 29, 2012	$	0		$	1,114,451		$	0		$	1,114,451
Change in unrealized gains (losses) relating to securities still held at February 29, 2012	$	0		$	(19,219	)	$	0		$	(19,219	)

Transfers out of Level 3 into Level 2 are due to the availability of significant observable inputs which are currently used in the determination of the fair value of the securities.

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Advisory fee

The Trust has entered into an advisory contract with Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”). The 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 Fund.

Pursuant to the contract, Funds Management is entitled to receive an annual advisory fee starting at 0.50% and declining to 0.40% as the average daily net assets of the Fund increase. For the six months ended February 29, 2012, the advisory fee was equivalent to an annual rate of 0.50% of the Fund’s average daily net assets.

Funds Management has retained the services of certain sub-advisers to provide daily portfolio management to the Fund. The fees related to sub-advisory services are borne directly by Funds Management and do not increase the overall fees paid by the Fund. Wells Capital Management, an affiliate of Funds Management, is the sub-adviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.35% and declining to 0.20% as the average daily net assets of the Fund increase.

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 the Fund an annual fund level administration fee starting at 0.05% and declining to 0.03% as the average daily net assets of the Fund increase and a class level administration fee which is calculated based on the average daily net assets of each class as follows:

	Class Level Administration Fee
Class A, Class B, Class C		0.16	%
Administrator Class		0.10

Notes to Financial Statements (Unaudited) Wells Fargo Advantage High Yield Bond Fund 29

Funds Management has contractually waived and/or reimbursed 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. Funds Management has committed through July 11, 2013 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 1.03% for Class A, 1.78% for Class B, 1.78% for Class C and 0.80% for Administrator Class.

Distribution fees

The Trust has adopted a Distribution Plan for Class B and Class C shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. Distribution fees are charged to Class B and Class C shares and paid to Wells Fargo Funds Distributor, LLC, the principal underwriter, at an annual rate of 0.75% of the average daily net assets of Class B and Class C shares.

For the six months ended February 29, 2012, Wells Fargo Funds Distributor, LLC received $9,034 from the sale of Class A shares and $6,928 and $534 in contingent deferred sales charges from redemptions of Class B and Class C shares, respectively.

Shareholder servicing fees

The Trust has entered into contracts with one or more shareholder servicing agents, whereby each class of the 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, excluding U.S. Government obligations (if any) and short-term securities (securities with maturities of one year or less at purchase date), for the six months ended February 29, 2012 were $99,246,373 and $81,821,306, respectively.

As of February 29, 2012, the Fund had unfunded loan commitments of $441,000.

6. BANK BORROWINGS

The Trust (excluding the money market funds) and Wells Fargo Variable Trust are parties to a $150,000,000 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, an annual commitment fee equal to 0.10% of the unused balance is allocated to each participating fund. Prior to September 6, 2011, the revolving credit agreement was for $125,000,000 and the annual commitment fee paid by the Fund was 0.125% of the unused balance. For the six months ended February 29, 2012, the Fund paid $503 in commitment fees.

For the six months ended February 29, 2012, there were no borrowings by the Fund under the agreement.

7. 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 Fund and, therefore, cannot be estimated.

8. NEW ACCOUNTING PRONOUNCEMENTS

In May 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-04 “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs”. ASU No. 2011-04 amends FASB ASC Topic 820, Fair Value Measurements and Disclosures, to establish common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with GAAP. The ASU is effective prospectively for interim and annual periods beginning after December 15, 2011. Management expects that adoption of the ASU will result in additional disclosures in the financial statements, as applicable.

30 Wells Fargo Advantage High Yield Bond Fund Notes to Financial Statements (Unaudited)

In April 2011, FASB issued ASU No. 2011-03 “Reconsideration of Effective Control for Repurchase Agreements”. ASU No. 2011-03 amends FASB ASC Topic 860, Transfers and Servicing, specifically the criteria required to determine whether a repurchase agreement (repo) and similar agreements should be accounted for as sales of financial assets or secured borrowings with commitments. ASU No. 2011-03 changes the assessment of effective control by focusing on the transferor’s contractual rights and obligations and removing the criterion to assess its ability to exercise those rights or honor those obligations. This could result in changes to the way entities account for certain transactions including repurchase agreements, mortgage dollar rolls and reverse repurchase agreements. The ASU will become effective on a prospective basis for new transfers and modifications to existing transactions as of the beginning of the first interim or annual period beginning on or after December 15, 2011. Management has evaluated the impact of adopting the ASU and expects no significant changes.

Other Information (Unaudited) Wells Fargo Advantage High Yield Bond Fund 31

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 wellsfargoadvantagefunds.com, or visiting the SEC Web site at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge on the Fund’s Web site at wellsfargoadvantagefunds.com or by visiting the SEC Web site at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available on the Fund’s Web site (wellsfargoadvantagefunds.com) 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 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.

32 Wells Fargo Advantage High Yield Bond Fund Other Information (Unaudited)

BOARD OF TRUSTEES

The following table provides basic information about the Board of Trustees (the “Trustees”) of the Trust and Officers of the Trust. This table should be read in conjunction with the Prospectus and the Statement of Additional Information¹ of 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 137 funds comprising the Wells Fargo Funds 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 Year of Birth	Position Held and Length of Service	Principal Occupations During Past Five Years	Other Directorships During Past Five Years
Peter G. Gordon (Born 1942)	Trustee, since 1998; Chairman, since 2005 (Lead Trustee since 2001)	Co-Founder, Retired Chairman, President and CEO of Crystal Geyser Water Company. Trustee Emeritus, Colby College	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 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 40 portfolios as of 12/31/11); Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of Corporate Governance Research Program and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust

Other Information (Unaudited) Wells Fargo Advantage High Yield Bond Fund 33

Name and Year of Birth	Position Held and Length of Service	Principal Occupations During Past Five Years	Other Directorships During Past Five Years
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	Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield 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. Director and Vice Chair of The Free Trust (non-profit corporation). Director of the American Chestnut Foundation (non-profit corporation).	Asset Allocation Trust

Officers

Name and Year of Birth	Position Held and 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 Senior 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.
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. 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 Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the Web site at wellsfargoadvantagefunds.com.

34 Wells Fargo Advantage High Yield Bond Fund List of Abbreviations

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

ACB —  Agricultural Credit Bank

ADR —  American Depository 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

AUD —  Australian Dollar

BAN —  Bond Anticipation Notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazil Real

CAB —  Capital Appreciation Bond

CAD —  Canadian Dollar

CCAB —  Convertible Capital Appreciation Bond

CDA —  Community Development Authority

CDO —  Collateralized Debt Obligation

CHF —  Swiss Franc

COP —  Certificate of Participation

CR —  Custody Receipts

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

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-Traded Fund

EUR —  Euro

FFCB —  Federal Farm Credit Bank

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Authority

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British Pound

GDR —  Global Depository 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

HUF —  Hungarian Forint

IBC —  Insured Bond Certificate

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

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

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

PUTTER —  Puttable Tax-Exempt Receipts

R&D —  Research & Development

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real Estate Investment Trust

ROC —  Reset Option Certificates

SAVRS —  Select Auction Variable Rate Securities

SBA —  Small Business Authority

SEK —  Swedish Krona

SFHR —  Single Family Housing Revenue

SFMR —  Single Family Mortgage Revenue

SGD —  Singapore Dollar

SKK —  Slovakian Koruna

SPDR —  Standard & Poor’s Depositary Receipts

TAN —  Tax Anticipation Notes

TBA —  To Be Announced

TIPS —  Treasury Inflation-Protected Securities

TRAN —  Tax Revenue Anticipation Notes

TCR —  Transferable Custody Receipts

TRY —  Turkish Lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

XLCA —  XL Capital Assurance

ZAR —  South African Rand

FOR MORE INFORMATION

More information about Wells Fargo Advantage Funds is available free upon request. To obtain literature, please write, e-mail, visit the Fund’s Web site, or call:

Wells Fargo Advantage Funds

P.O. Box 8266

Boston, MA 02266-8266

E-mail: wfaf@wellsfargo.com

Web site: wellsfargoadvantagefunds.com

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 wellsfargoadvantagefunds.com. 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

© 2012 Wells Fargo Funds Management, LLC. All rights reserved.

208523 04-12 SA218/SAR218 2-12

Wells Fargo Advantage Income Plus Fund

Semi-Annual Report

February 29, 2012

Reduce clutter. Save trees.

Sign up for electronic delivery of prospectuses and shareholder reports at wellsfargo.com/advantagedelivery

Contents

Letter to Shareholders	2
Performance Highlights	5
Fund Expenses	7
Portfolio of Investments	8
Financial Statements
Statement of Assets and Liabilities	17
Statement of Operations	18
Statements of Changes in Net Assets	19
Financial Highlights	20
Notes to Financial Statements	26
Other Information	33
List of Abbreviations	36

The views expressed and any forward-looking statements are as of February 29, 2012, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Advantage Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements; the views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC, disclaims any obligation to publicly update or revise any views expressed or forward-looking statements.

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 FundsSM).
1996	Evergreen Investments and Keystone Funds merge.
1997	Wells Fargo launches Wells Fargo Advantage WealthBuilder PortfoliosSM, 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 a fund’s investment objectives, risks, charges, and expenses before investing. For a current prospectus and, if available, a summary prospectus, containing this and other information, visit wellsfargoadvantagefunds.com. 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.

“Dow Jones^®” and “Dow Jones Target Date Indexes^SM” are service marks of Dow Jones Trademark Holdings, LLC (“Dow Jones”), have been licensed to CME Group Index Services LLC (“CME Indexes”) and have been sublicensed for use for certain purposes by Global Index Advisors, Inc, and Wells Fargo Funds Management, LLC. The Wells Fargo Advantage Dow Jones Target Date Funds^SM based on the Dow Jones Target Date Indexes^SM, are not sponsored, endorsed, sold or promoted by Dow Jones, CME Indexes or their respective affiliates and none of them makes any representation regarding the advisability of investing in such product(s).

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

Not part of the semi-annual report.

Wells Fargo Advantage Funds offers more than 110 mutual funds across a wide range of asset classes, representing over $218 billion in assets under management, as of February 29, 2012.

Equity Funds
Asia Pacific Fund	Equity Value Fund	Precious Metals Fund
C&B Large Cap Value Fund	Global Opportunities Fund	Premier Large Company Growth Fund
C&B Mid Cap Value Fund	Growth Fund	Small Cap Opportunities Fund
Capital Growth Fund	Index Fund	Small Cap Value Fund
Common Stock Fund	International Equity Fund	Small Company Growth Fund
Disciplined U.S. Core Fund	International Value Fund	Small Company Value Fund
Discovery Fund†	Intrinsic Small Cap Value Fund	Small/Mid Cap Core Fund
Diversified Equity Fund	Intrinsic Value Fund	Small/Mid Cap Value Fund
Diversified International Fund	Intrinsic World Equity Fund	Special Mid Cap Value Fund
Diversified Small Cap Fund	Large Cap Core Fund	Special Small Cap Value Fund
Emerging Growth Fund	Large Cap Growth Fund	Specialized Technology Fund
Emerging Markets Equity Fund	Large Company Value Fund	Strategic Large Cap Growth Fund
Endeavor Select Fund†	Omega Growth Fund	Traditional Small Cap Growth Fund
Enterprise Fund†	Opportunity 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
Absolute Return Fund	WealthBuilder Equity Portfolio†	Target 2020 Fund†
Asset Allocation Fund	WealthBuilder Growth Allocation Portfolio†	Target 2025 Fund†
Conservative Allocation Fund	WealthBuilder Growth Balanced Portfolio†	Target 2030 Fund†
Diversified Capital Builder Fund	WealthBuilder Moderate Balanced Portfolio†	Target 2035 Fund†
Diversified Income Builder Fund	WealthBuilder Tactical Equity Portfolio†	Target 2040 Fund†
Growth Balanced Fund	Target Today Fund†	Target 2045 Fund†
Index Asset Allocation Fund	Target 2010 Fund†	Target 2050 Fund†
Moderate Balanced Fund	Target 2015 Fund†	Target 2055 Fund†
WealthBuilder Conservative Allocation Portfolio†
Money Market Funds
100% Treasury Money Market Fund	Heritage Money Market Fund†	National Tax-Free Money Market Fund
California Municipal Money Market Fund	Money Market Fund	Prime Investment Money Market Fund
Cash Investment Money Market Fund	Municipal Cash Management Money Market Fund	Treasury Plus Money Market Fund
Government Money Market Fund	Municipal Money Market Fund
Variable Trust Funds1
VT Discovery Fund†	VT Intrinsic Value Fund	VT Small Cap Growth Fund
VT Index Asset Allocation Fund	VT Omega Growth Fund	VT Small Cap Value Fund
VT International Equity Fund	VT Opportunity Fund†	VT Total Return Bond 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 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 Dow Jones Target 2055 Fund^SM, Wells Fargo Advantage Heritage Money Market Fund^SM, Wells Fargo Advantage VT Discovery Fund^SM, and Wells Fargo Advantage VT Opportunity Fund^SM are referred to as the Discovery Fund, Endeavor Select Fund, Enterprise Fund, Opportunity 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, Target 2055 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 Plus Fund Letter to Shareholders

Karla M. Rabusch,

President

Wells Fargo Advantage Funds

The theme for the period was a shift from risk aversion in the first half to burgeoning trends of improving investor confidence in the second half, which significantly improved pricing in the lower-rated asset classes.

On the whole, investment-grade fixed-income securities performed positively during the period, but the strongest returns came from the high-yield market.

Dear Valued Shareholder:

We are pleased to offer you this semi-annual report for the Wells Fargo Advantage Income Plus Fund, which covers the six-month period that ended February 29, 2012. During the period, fixed-income performance was best among the lower-rated securities, as improved investor confidence in the U.S. economy and the U.S. credit markets encouraged investors to return to riskier asset classes.

The period began with heightened risk aversion but ended with stronger investor confidence.

The six-month period began with the worsening of the Greek crisis, which amplified risk aversion across the global credit markets. This in turn led to a powerful rally in U.S. Treasuries and a sharp decline in high-yield bond prices, most notably in the lowest-quality credit tiers. During this time, most investment-grade fixed-income markets continued to generate positive returns—although certain areas of the riskiest segments of the markets declined—and U.S. Treasury yields reached the lowest levels in decades, even surpassing the low yield levels reached in the summer of 2010.

The last three months of the period were characterized by a strong reversal of the trends of the first three months. In October 2011, the high-yield market recovered significantly, benefiting from indications of improving policy with regard to managing the debt crisis from Europe and the formal announcement of a European debt deal late in the month. Due to renewed concerns about the European Union’s ability to manage the debt crisis, November 2011 saw a modest decline in investment-grade corporate bond prices and a sharp correction in high-yield corporate bonds, but another strong recovery in pricing started in December and carried into the first two months of 2012. Investor confidence strengthened as the U.S. economy demonstrated signs of sustainable growth and U.S. credit markets began to show some resistance to the credit problems of Europe. Thus, the theme for the period was a shift from risk aversion in the first half to burgeoning trends of improving investor confidence in the second half, which significantly improved pricing in the lower-rated asset classes.

On the whole, investment-grade fixed-income securities performed positively during the period, but the strongest returns came from the high-yield market. In fact, the best returns for the six-month period came from the lowest-rated credit tiers, despite the fact that they significantly underperformed in August and September 2011. Similar trends were true in the structured products sector, as lower-rated commercial mortgage-backed securities were among the best performers for the period, despite underperforming in the first two months.

The Federal Reserve launched Operation Twist in September.

With economic concerns and credit woes escalating in Europe and some continued uncertainty about the growth outlook in the U.S. during August and September 2011, the Federal Reserve (Fed) intervened yet again with monetary accommodations—this time with “Operation Twist,” which was announced and launched in September 2011. With Operation Twist, the Fed endeavored to flatten the yield curve and drive long-term rates down by selling short-term Treasuries and using the proceeds to purchase long-term Treasuries. The Fed stated that it is unlikely to raise rates before 2014, which should keep yields on Treasuries low. Despite this announcement, problems in Europe caused Treasuries to continue to rally in the first 3 months of the period, while credit spreads on corporate and

Letter to Shareholders Wells Fargo Advantage Income Plus Fund 3

securitized sectors widened with increasing risk aversion. However, with an improved U.S. economic outlook and greater investor confidence, the last three months of the period saw a slight decline in U.S. Treasury prices and significant improvement in high-yield corporate bond prices. Credit spreads in the corporate and securitized sectors broadly tightened in December 2011 and January and February 2012.

Although U.S. economic conditions appear to have improved over the course of the period, the recovery continues to face some headwinds in the form of languishing housing values and elevated unemployment levels, which may continue to create some volatility in the fixed-income markets. 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. While heightened volatility may be uncomfortable to experience in the short term, we believe it can lead to unique opportunities to add relative value for investors with long-term investment horizons.

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

Periods of uncertainty can present challenges, but 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. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Advantage Funds offers more than 110 mutual funds and other investments spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance.

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 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.

Thank you for choosing to invest with Wells Fargo Advantage Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs. For current information about your fund investments, contact your investment professional, visit our Web site at wellsfargoadvantagefunds.com, or call us directly at 1-800-222-8222. We are available 24 hours a day, 7 days a week.

Sincerely,

Karla M. Rabusch

President

Wells Fargo Advantage Funds

4 Wells Fargo Advantage Income Plus Fund Letter to Shareholders

Notice to Shareholders

The Board of Trustees for Wells Fargo Advantage Funds has unanimously approved the following modifications to certain net asset value (NAV) waiver privileges and commission schedules:

n Effective May 1, 2012, automatic investment plan (AIP) purchases and proceeds received from systematic withdrawals will no longer qualify for NAV repurchase privileges.

n Effective May 1, 2012, discretionary rights to waive the upfront commission for Class C and “jumbo” Class A share purchases will no longer be granted to broker/dealers. However, we will continue to waive the Class C shares contingent deferred sales charge for redemptions by employer-sponsored retirement plans where the dealer of record waived its commission at the time of purchase.

n Effective July 31, 2012, NAV purchase privileges for former Evergreen Class IS and Class R shareholders are being modified to remove the ability to purchase Class A shares at NAV unless those shares are held directly with the Fund on or after July 31, 2012.

Please contact your investment professional or call us directly at 1-800-222-8222 if you have any questions on this Notice to Shareholders.

Performance Highlights (Unaudited) Wells Fargo Advantage Income Plus Fund 5

INVESTMENT OBJECTIVE

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

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

TEN LARGEST LONG-TERM HOLDINGS1 (AS OF FEBRUARY 29, 2012)
U.S. Treasury Note, 0.50%, 08/15/2014	5.85%
FNMA, 4.00%, 03/15/2042	4.74%
U.S. Treasury Note, 2.25%, 07/31/2018	3.70%
FNMA, 4.50%, 03/15/2042	3.20%
U.S. Treasury Note, 1.25%, 04/15/2014	2.97%
U.S. Treasury Note, 1.00%, 10/31/2016	2.96%
FHLMC, 3.50%, 03/15/2042	2.71%
U.S. Treasury Bond, 4.25%, 11/15/2040	2.71%
U.S. Treasury Bond, 6.25%, 08/15/2023	2.25%
FNMA, 5.00%, 08/01/2040	2.04%

CREDIT QUALITY²
(AS OF FEBRUARY 29, 2012)

1. The ten largest long-term holdings are calculated based on the value of the securities divided by total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

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 & Poor’s rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Ratings from A to CCC may be modified by the addition of a plus (+) or minus (–) sign to show relative standing within the rating categories. Standard & Poor’s rates the creditworthiness of short-term notes from SP-1 (highest) to SP-3 (lowest). Moody’s rates the creditworthiness of bonds, ranging from Aaa (highest) to C (lowest). Ratings Aa to B may be modified by the addition of a number 1 (highest) to 3 (lowest) to show relative standing within the ratings categories. Moody’s rates the creditworthiness of short-term U.S. tax-exempt municipal securities from MIG 1/VMIG 1 (highest) to SG (lowest). Fitch rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). 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.

6 Wells Fargo Advantage Income Plus Fund Performance Highlights (Unaudited)

AVERAGE ANNUAL TOTAL RETURN³ (%) (AS OF FEBRUARY 29, 2012)

			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 (STYAX)		07/13/1998		(1.01	)		3.76		6.13		6.05		3.68		8.64		7.12		6.55		0.89%		0.89%
Class B (STYBX)**		07/13/1998		(1.64	)		2.82		6.01		5.97		3.36		7.82		6.32		5.97		1.64%		1.64%
Class C (WFIPX)		07/13/1998		2.38			6.86		6.33		5.76		3.38		7.86		6.33		5.76		1.64%		1.64%
Administrator Class (WIPDX)		07/30/2010											3.84		8.87		7.19		6.51		0.83%		0.74%
Institutional Class (WIPIX)		07/18/2008											3.93		9.02		7.36		6.67		0.56%		0.56%
Investor Class (WIPNX)		07/18/2008											3.75		8.65		7.10		6.54		0.92%		0.92%
Barclays U.S. Universal Bond Index6													3.08		8.22		6.34		5.96

* 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 and assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s Web site – wellsfargoadvantagefunds.com.

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.

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 charge 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.

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 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.

3. Historical performance shown for the Administrator Class shares prior to their inception reflects the performance of the Institutional Class shares and has been adjusted to include the higher expenses applicable to the Administrator Class shares. Historical performance shown for the Investor Class shares prior to their inception reflects the performance of the Class A shares and has been adjusted to include the higher expenses applicable to the Investor Class shares. Historical performance shown for the Institutional Class shares prior to their 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.

4. Reflects the expense ratios as stated in the most recent prospectuses.

5. The Adviser has committed through July 11, 2013 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver, excluding certain expenses, at 0.87% for Class A, 1.62% for Class B, 1.62% for Class C, 0.72% for Administrator Class, 0.58% for Institutional Class and 0.90% for Investor Class. Without this cap, the Fund’s returns would have been lower.

6. The Barclays 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.

Fund Expenses (Unaudited) Wells Fargo Advantage Income Plus Fund 7

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and contingent deferred sales charges (if any) on redemptions 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, 2011 to February 29, 2012.

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 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.

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) and contingent deferred sales charges. 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 Account Value 09-01-2011		Ending Account Value 02-29-2012		Expenses Paid During the Period1		Net Annual Expense Ratio
Class A
Actual	$	1,000.00	$	1,036.76	$	4.46		0.88	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.49	$	4.42		0.88	%
Class B
Actual	$	1,000.00	$	1,033.58	$	8.24		1.63	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.76	$	8.17		1.63	%
Class C
Actual	$	1,000.00	$	1,033.82	$	8.24		1.63	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.76	$	8.17		1.63	%
Administrator Class
Actual	$	1,000.00	$	1,038.44	$	3.75		0.74	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.18	$	3.72		0.74	%
Institutional Class
Actual	$	1,000.00	$	1,039.30	$	2.84		0.56	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.08	$	2.82		0.56	%
Investor Class
Actual	$	1,000.00	$	1,037.50	$	4.56		0.90	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.39	$	4.52		0.90	%

1. Expenses paid is equal to the annualized expense ratio of each class 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).

8 Wells Fargo Advantage Income Plus Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Agency Securities: 31.05%
FHLMC ±		2.21	%		01/01/2036	$	114,259	$	120,054
FHLMC %%		3.50			03/15/2042		18,565,000		19,159,414
FHLMC %%		4.00			03/15/2042		6,310,000		6,618,598
FHLMC		5.00			08/01/2040		1,366,778		1,473,131
FHLMC %%		5.00			03/15/2042		1,900,000		2,045,766
FHLMC		5.50			11/01/2023		457,404		498,004
FHLMC		5.50			09/01/2038		10,085,111		10,956,977
FHLMC		5.50			06/01/2040		3,013,638		3,274,169
FHLMC		7.50			05/01/2038		36,606		44,334
FHLMC		8.00			02/01/2030		982		1,198
FHLMC		14.00			09/01/2012		39		38
FHLMC Series 2736 Class BC		5.00			12/15/2029		193,855		194,816
FHLMC Series M009 Class A ±		5.40			10/15/2021		1,056,377		1,137,253
FHLMC Series T-42 Class A5		7.50			02/25/2042		3,176,954		3,824,611
FHLMC Structured Pass-Through Securities Series T-57 Class 2A1 ±		3.53			07/25/2043		99,178		101,244
FHLMC Structured Pass-Through Securities Series T-59 Class 2A1 ±		3.18			10/25/2043		89,365		90,885
FNMA ±		2.40			01/01/2036		331,937		348,852
FNMA ±		2.48			09/01/2036		100,389		106,858
FNMA ±		2.51			08/01/2036		142,021		151,149
FNMA		3.50			02/01/2026		3,331,447		3,497,127
FNMA %%		3.50			03/15/2027		2,875,000		3,015,156
FNMA		4.00			09/01/2024		354,924		376,013
FNMA %%		4.00			03/15/2042		31,835,000		33,501,365
FNMA %%		4.00			03/15/2027		2,600,000		2,752,750
FNMA		4.26			04/01/2021		2,969,795		3,319,518
FNMA		4.39			01/01/2020		1,603,865		1,799,973
FNMA		4.46			05/01/2020		1,928,793		2,174,632
FNMA %%		4.50			03/15/2042		21,225,000		22,621,206
FNMA %%		4.50			03/15/2027		3,240,000		3,467,306
FNMA		5.00			01/01/2024		937,088		1,011,511
FNMA		5.00			02/01/2036		213,534		230,855
FNMA		5.00			06/01/2040		4,973,898		5,375,030
FNMA		5.00			08/01/2040		13,322,228		14,396,631
FNMA %%		5.00			03/15/2027		3,416,000		3,688,746
FNMA		5.50			08/01/2034		664,118		725,786
FNMA		5.50			02/01/2035		206,733		225,929
FNMA		5.50			08/01/2038		2,366,206		2,602,193
FNMA		5.50			08/01/2038		3,408,707		3,745,363
FNMA %%		5.50			03/15/2027		720,000		783,112
FNMA		5.97			03/01/2012		158,060		159,127
FNMA		6.00			10/01/2037		4,474,742		4,929,308
FNMA		6.00			11/01/2037		392,531		432,406
FNMA		6.00			08/01/2038		548,803		604,553
FNMA %%		6.00			03/15/2042		7,665,000		8,432,697
FNMA		6.50			07/01/2036		167,812		190,391
FNMA		6.50			07/01/2036		96,287		109,243
FNMA		6.50			11/01/2036		57,624		65,233
FNMA		6.50			07/01/2037		5,252,752		5,938,190
FNMA		7.00			03/01/2024		3,066,240		3,281,776
FNMA		7.00			07/01/2036		55,075		63,812

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage Income Plus Fund 9

Security Name	Interest Rate			Maturity Date		Principal		Value
Agency Securities (continued)
FNMA		7.00	%		11/01/2037	$	107,599	$	121,595
FNMA		7.50			05/01/2038		12,390		13,730
FNMA		7.87			07/01/2026		2,706,285		2,933,538
FNMA Grantor Trust Series 2002-T12 Class A3		7.50			05/25/2042		12,503		14,787
FNMA Series 2003-W14 Class 2A ±		2.52			06/25/2035		255,848		267,841
FNMA Series 2003-W14 Class 2A ±		3.62			01/25/2043		137,069		145,250
FNMA Series 2004-7 Class AE		5.00			12/25/2030		265,448		267,521
FNMA Whole Loan Series 2003-W8 Class 4A ±		3.31			11/25/2042		269,756		285,931
FNMA Whole Loan Series 2004-W11 Class 1A3		7.00			05/25/2044		2,972,601		3,355,952
FNMA Whole Loan Series 2004-W15 Class 1A3		7.00			08/25/2044		2,311,286		2,685,564
GNMA %%		4.00			03/15/2042		4,225,000		4,549,797
GNMA %%		4.50			03/15/2042		7,130,000		7,771,701
GNMA		5.00			07/20/2040		3,818,010		4,213,908
GNMA		7.50			12/15/2029		1,340		1,609
GNMA Series 2005-90 Class A		3.76			09/16/2028		1,750,691		1,791,297
GNMA Series 2007-12 Class A		3.96			06/16/2031		1,007,327		1,032,638
GNMA Series 2007-12 Class C ±		5.28			04/16/2041		485,000		532,126
GNMA Series 2008-22 Class XM ±(c)		1.20			02/16/2050		14,693,527		548,509
GNMA Series 2008-86 Class D		5.46			04/16/2040		4,365,000		5,126,500
Total Agency Securities (Cost $214,013,625)									219,324,083
Asset-Backed Securities: 0.92%
Chase Issuance Trust Series 2005-A6 Class A6 ±		0.32			07/15/2014		430,000		430,117
Citibank Credit Card Issuance Trust Series 2005-C1 Class C1		5.50			03/24/2017		285,000		315,086
Countrywide Asset Backed Certificates Series 2004-S1 Class A3		4.62			02/25/2035		709,563		670,256
CVS Pass-Through Trust Series T		6.04			12/10/2028		2,371,105		2,613,906
Discover Card Master Trust Series 2008-A4 Class A4		5.65			12/15/2015		2,345,000		2,500,678
Total Asset-Backed Securities (Cost $6,060,859)									6,530,043
Corporate Bonds and Notes: 25.88%
Consumer Discretionary: 5.13%
Auto Components: 0.46%
Delphi Corporation 144A		6.13			05/15/2021		2,000,000		2,145,000
TRW Automotive Incorporated 144A		7.25			03/15/2017		1,000,000		1,112,500
									3,257,500
Automobiles: 0.37%
Ford Motor Company		7.45			07/16/2031		2,000,000		2,567,500
Hotels, Restaurants & Leisure: 0.76%
Agua Caliente Band of Cahuilla Indians 144A(i)		6.44			10/01/2016		682,000		613,841
Darden Restaurants Incorporated		6.80			10/15/2037		2,490,000		2,858,251
Seminole Tribe of Florida 144A		7.75			10/01/2017		1,750,000		1,898,750
									5,370,842
Internet & Catalog Retail: 0.43%
Expedia Incorporated		5.95			08/15/2020		2,985,000		3,048,181

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

10 Wells Fargo Advantage Income Plus Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Media: 1.85%
CBS Corporation		7.88	%		07/30/2030	$	2,210,000	$	2,937,941
CCO Holdings LLC		8.13			04/30/2020		2,000,000		2,240,000
CSC Holdings LLC		7.88			02/15/2018		1,000,000		1,130,000
DISH DBS Corporation		7.88			09/01/2019		2,000,000		2,350,000
News America Incorporated		7.85			03/01/2039		2,765,000		3,490,788
Vivendi SA 144A		6.63			04/04/2018		800,000		904,402
									13,053,131
Multiline Retail: 0.29%
Macy’s Retail Holdings Incorporated		6.65			07/15/2024		1,750,000		2,043,549
Specialty Retail: 0.97%
Advance Auto Parts Incorporated		5.75			05/01/2020		2,000,000		2,266,544
Best Buy Company Incorporated		6.75			07/15/2013		2,273,000		2,404,507
Limited Brands Incorporated		6.63			04/01/2021		2,000,000		2,200,000
									6,871,051
Consumer Staples: 1.43%
Beverages: 0.32%
Constellation Brands Incorporated		7.25			09/01/2016		2,000,000		2,260,000
Food Products: 0.75%
H.J. Heinz Finance Company 144A		7.13			08/01/2039		2,350,000		3,092,701
TreeHouse Foods Incorporated		7.75			03/01/2018		2,000,000		2,190,000
									5,282,701
Tobacco: 0.36%
Lorillard Incorporated		8.13			06/23/2019		1,185,000		1,483,093
Reynolds Group Holdings 144A		7.88			08/15/2019		1,000,000		1,095,000
									2,578,093
Energy: 3.11%
Oil, Gas & Consumable Fuels: 3.11%
Bill Barrett Corporation		7.63			10/01/2019		400,000		418,000
Chesapeake Energy Corporation 144A		6.63			11/15/2019		2,000,000		2,040,000
Consol Energy Incorporated		8.25			04/01/2020		2,000,000		2,180,000
El Paso Pipeline Partners Operating LLC		5.00			10/01/2021		2,000,000		2,087,920
Energy Transfer Equity LP		7.50			10/15/2020		1,750,000		2,003,750
Energy Transfer Partners LP		6.50			02/01/2042		3,000,000		3,323,907
Newfield Exploration Company		6.88			02/01/2020		1,750,000		1,890,000
Petrobras International Finance Company		6.75			01/27/2041		2,000,000		2,319,318
Suburban Propane Partners LP		7.38			03/15/2020		1,750,000		1,863,750
Tesoro Corporation		9.75			06/01/2019		2,000,000		2,275,000
Texas Eastern Transmission LP		7.00			07/15/2032		1,250,000		1,558,645
									21,960,290
Financials: 7.62%
Capital Markets: 0.39%
Alterra Finance LLC		6.25			09/30/2020		2,610,000		2,747,490

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage Income Plus Fund 11

Security Name	Interest Rate			Maturity Date		Principal		Value
Commercial Banks: 1.90%
Australia and New Zealand Banking Group Limited 144A		2.40	%		11/23/2016	$	3,320,000	$	3,343,891
Banco Santander Brasil SA 144A		4.63			02/13/2017		2,110,000		2,101,560
Fifth Third Bancorp		6.25			05/01/2013		2,245,000		2,370,632
Key Bank NA		4.95			09/15/2015		2,180,000		2,335,020
PNC Financial Services Group Incorporated ±		8.25			12/31/2049		1,415,000		1,456,915
Regions Bank		7.50			05/15/2018		1,650,000		1,798,500
									13,406,518
Consumer Finance: 1.13%
Discover Financial Services		10.25			07/15/2019		2,380,000		3,034,719
International Lease Finance Corporation		8.25			12/15/2020		2,000,000		2,229,458
SLM Corporation		8.00			03/25/2020		2,485,000		2,733,500
									7,997,677
Diversified Financial Services: 1.77%
Bank of America Corporation		6.50			08/01/2016		2,795,000		3,021,563
Citigroup Incorporated		5.38			08/09/2020		2,535,000		2,759,322
Citigroup Incorporated		5.88			01/30/2042		1,890,000		2,009,172
JPMorgan Chase & Company Series 1 ±		7.90			12/31/2049		1,750,000		1,903,790
Moody’s Corporation		5.50			09/01/2020		2,630,000		2,798,396
									12,492,243
Insurance: 2.06%
Liberty Mutual Group 144A		6.70			08/15/2016		2,220,000		2,436,028
National Life Insurance Company of Vermont 144A		10.50			09/15/2039		1,600,000		2,065,202
Platinum Underwriters Finance Incorporated Series B		7.50			06/01/2017		2,100,000		2,261,784
Protective Life Corporation		8.45			10/15/2039		2,500,000		2,941,798
Prudential Financial Incorporated ±		8.88			06/15/2038		2,000,000		2,390,000
Torchmark Corporation		9.25			06/15/2019		1,945,000		2,446,440
									14,541,252
REITs: 0.37%
Dexus Property Group 144A		7.13			10/15/2014		2,435,000		2,621,687
Health Care: 1.30%
Health Care Equipment & Supplies: 0.24%
Fresenius Medical Care Holdings Incorporated		6.88			07/15/2017		1,500,000		1,665,000
Health Care Providers & Services: 0.81%
Cigna Corporation		5.38			02/15/2042		1,855,000		1,993,045
HCA Incorporated		6.50			02/15/2020		1,750,000		1,876,875
Lifepoint Hospitals Incorporated		6.63			10/01/2020		1,750,000		1,881,250
									5,751,170
Pharmaceuticals: 0.25%
Aristotle Holding Incorporated 144A		2.10			02/12/2015		1,725,000		1,738,836

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

12 Wells Fargo Advantage Income Plus Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Industrials: 2.86%
Aerospace & Defense: 0.30%
Esterline Technologies Corporation		7.00	%		08/01/2020	$	1,750,000	$	1,933,750
Hexcel Corporation		6.75			02/01/2015		167,000		168,461
									2,102,211
Commercial Services & Supplies: 0.22%
Equifax Incorporated		6.30			07/01/2017		1,335,000		1,535,836
Electrical Equipment: 0.25%
Belden CDT Incorporated		7.00			03/15/2017		1,750,000		1,802,500
Industrial Conglomerates: 0.38%
General Electric Capital Corporation ±		6.38			11/15/2067		2,670,000		2,710,050
Machinery: 0.91%
Briggs & Stratton Corporation		6.88			12/15/2020		1,750,000		1,850,625
Case New Holland Incorporated		7.88			12/01/2017		2,000,000		2,350,000
SPX Corporation		6.88			09/01/2017		2,000,000		2,220,000
									6,420,625
Professional Services: 0.80%
FTI Consulting Incorporated		6.75			10/01/2020		2,000,000		2,162,500
Verisk Analytics Incorporated		5.80			05/01/2021		3,220,000		3,498,082
									5,660,582
Information Technology: 1.49%
Communications Equipment: 0.27%
Brocade Communications Systems Incorporated		6.88			01/15/2020		1,750,000		1,955,625
Electronic Equipment, Instruments & Components: 0.36%
Corning Incorporated		7.25			08/15/2036		2,092,000		2,548,935
Internet Software & Services: 0.59%
Equinix Incorporated		7.00			07/15/2021		2,000,000		2,210,000
Tencent Holdings Limited 144A		4.63			12/12/2016		1,935,000		1,947,446
									4,157,446
Office Electronics: 0.27%
Xerox Corporation		8.25			05/15/2014		1,685,000		1,892,425
Materials: 1.09%
Containers & Packaging: 0.24%
Sealed Air Corporation 144A		8.13			09/15/2019		1,500,000		1,695,000
Metals & Mining: 0.37%
Freeport-McMoRan Copper & Gold Incorporated		8.38			04/01/2017		2,470,000		2,585,549
Paper & Forest Products: 0.48%
International Paper Company		7.30			11/15/2039		2,665,000		3,422,526

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage Income Plus Fund 13

Security Name	Interest Rate			Maturity Date		Principal		Value
Telecommunication Services: 1.04%
Diversified Telecommunication Services: 0.56%
Frontier Communications Corporation		8.25	%		04/15/2017	$	750,000	$	810,000
Qwest Corporation		8.38			05/01/2016		1,060,000		1,241,510
Windstream Corporation		7.75			10/15/2020		1,750,000		1,911,875
									3,963,385
Wireless Telecommunication Services: 0.48%
Alltel Corporation		7.00			07/01/2012		1,285,000		1,311,891
American Tower Corporation		7.00			10/15/2017		1,765,000		2,036,148
									3,348,039
Utilities: 0.81%
Electric Utilities: 0.32%
Dolphin Subsidiary II Incorporated 144A		7.25			10/15/2021		2,000,000		2,280,000
Independent Power Producers & Energy Traders: 0.49%
FPL Energy Caithness Funding 144A(i)		7.65			12/31/2018		1,734,448		1,932,123
NRG Energy Incorporated		7.63			01/15/2018		1,500,000		1,518,750
									3,450,873
Total Corporate Bonds and Notes (Cost $172,339,180)									182,786,318
Municipal Bonds and Notes: 0.95%
California: 0.45%
San Jose CA Airport Taxable Series B (Airport Revenue, AGM LOC)		6.60			03/01/2041		3,000,000		3,160,050
Illinois: 0.45%
Illinois GO (GO-State)		4.51			03/01/2015		3,000,000		3,159,390
Other: 0.05%
Seneca Nation Indians Capital Improvements Authority Series 07 B (Miscellaneous Revenue) 144A(i)		6.75			12/01/2013		365,000		360,759
Total Municipal Bonds and Notes (Cost $6,281,650)									6,680,199
Non-Agency Mortgage Backed Securities: 3.82%
Citigroup Commercial Mortgage Trust Series 2006-C4 Class A3 ±		5.73			03/15/2049		2,885,000		3,286,560
Citigroup Commercial Mortgage Trust Series 2007-C6 Class A4 ±		5.70			12/10/2049		3,085,000		3,550,301
Commercial Mortgage Trust Pass-Through Certificates Series 2004-LB4A Class A4		4.58			10/15/2037		1,205,914		1,209,037
Commercial Mortgage Trust Pass-Through Certificates Series 2006 Class C7 ±		5.77			06/10/2046		2,555,000		2,646,684
Commercial Mortgage Trust Pass-Through Certificates Series 2007-C9 Class A4 ±		5.81			12/10/2049		1,730,000		2,000,126
Credit Suisse First Boston Mortgage Securities Corporation Series 1998-C2 Class AX ±(c)		0.58			11/15/2030		565,715		3,881
Credit Suisse Mortgage Capital Certificates Series 2006-C3 Class A3 ±		5.81			06/15/2038		2,400,000		2,706,077
Financial Asset Securitization Incorporated Series 1997-NAM2 Class B2		7.88			07/25/2027		98,569		96,672
Lehman Brothers UBS Commercial Mortgage Trust Series 2003-C8 Class A3		4.83			11/15/2027		2,213,463		2,252,199
Lehman Brothers UBS Commercial Mortgage Trust Series 2006-C1 Class A4		5.16			02/15/2031		2,790,000		3,111,952

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

14 Wells Fargo Advantage Income Plus Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Non-Agency Mortgage Backed Securities (continued)
Mach One Trust Commercial Mortgage Backed Series 2004-1 Class X ±(c)144A(i)		0.93	%		05/28/2040	$	1,558,650	$	12,438
Merrill Lynch Countrywide Commercial Mortgage Trust Series 2006-4 Class AM ±		5.20			12/12/2049		2,285,000		2,259,337
Morgan Stanley Capital I Series 2004-RR2 Class X ±(c)144A(i)		0.75			10/28/2033		1,219,931		8,088
SACO I Trust Series 2005-2 Class A ±144A(i)		0.64			04/25/2035		6,799		2,647
TIAA Real Estate CDO Limited Series 2007-C4 Class A3 ±		5.71			08/15/2039		2,235,000		2,417,112
Washington Mutual Mortgage Pass-Through Certificates Series 2007-HY7 Class 3A2 ±		5.29			07/25/2037		1,880,555		1,432,492
Total Non-Agency Mortgage Backed Securities (Cost $26,685,502)									26,995,603
U.S. Treasury Securities: 29.20%
U.S. Treasury Bond		3.13			11/15/2041		4,855,000		4,883,067
U.S. Treasury Bond ##		4.25			11/15/2040		15,555,000		19,144,798
U.S. Treasury Bond		4.38			05/15/2040		4,115,000		5,164,325
U.S. Treasury Bond		4.50			02/15/2036		4,415,000		5,602,909
U.S. Treasury Bond		6.25			08/15/2023		11,190,000		15,872,321
U.S. Treasury Bond		6.38			08/15/2027		8,170,000		12,150,326
U.S. Treasury Note		0.25			01/31/2014		12,880,000		12,868,434
U.S. Treasury Note		0.50			08/15/2014		41,190,000		41,318,719
U.S. Treasury Note		0.63			12/31/2012		10,485,000		10,523,092
U.S. Treasury Note		1.00			10/31/2016		20,715,000		20,905,972
U.S. Treasury Note		1.25			04/15/2014		20,590,000		20,988,931
U.S. Treasury Note		1.38			02/28/2019		8,510,000		8,493,745
U.S. Treasury Note		2.00			02/15/2022		2,255,000		2,258,876
U.S. Treasury Note		2.25			07/31/2018		24,600,000		26,129,825
Total U.S. Treasury Securities (Cost $199,931,990)									206,305,340
Yankee Corporate Bonds and Notes: 8.66%
Consumer Discretionary: 1.05%
Media: 1.05%
British Sky Broadcasting Group plc 144A		9.50			11/15/2018		2,170,000		2,937,447
Globo Comunicacoes e Participacoes SA 144A		7.25			04/26/2022		2,380,000		2,499,000
Myriad International Holdings BV 144A		6.38			07/28/2017		1,755,000		1,948,050
									7,384,497
Energy: 0.32%
Energy Equipment & Services: 0.32%
Weatherford International Limited		9.63			03/01/2019		1,665,000		2,255,264
Financials: 5.41%
Capital Markets: 0.14%
Macquarie Group Limited 144A		6.00			01/14/2020		1,000,000		982,686
Commercial Banks: 4.58%
Banco Macro SA 144A		5.50			07/12/2020		2,510,000		2,761,000
Bank Nederlandse Gemeenten 144A		2.50			01/11/2016		5,420,000		5,526,888
Bank of Nova Scotia 144A		2.15			08/03/2016		2,790,000		2,878,951

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage Income Plus Fund 15

Security Name	Interest Rate			Maturity Date		Principal		Value
Commercial Banks (continued)
BBVA Bancomer SA 144A		4.50	%		03/10/2016	$	2,090,000	$	2,142,250
Commonwealth Bank of Australia ±144A		6.02			12/31/2049		1,580,000		1,514,811
Export Import Bank of Korea		5.13			06/29/2020		2,600,000		2,783,968
ICICI Bank Limited 144A		4.75			11/25/2016		3,000,000		2,978,277
Itau Unibanco Holdings SA 144A		5.75			01/22/2021		2,335,000		2,422,563
Kommunalbanken AS 144A		2.38			01/19/2016		2,330,000		2,414,812
Landwirtsch Rentenbank «		2.50			02/15/2016		3,150,000		3,302,580
Westpac Banking Corporation 144A		1.90			12/14/2012		3,615,000		3,647,741
									32,373,841
Consumer Finance: 0.69%
Inmarsat Finance plc 144A		7.38			12/01/2017		1,750,000		1,872,500
Rio Tinto Finance USA Limited		9.00			05/01/2019		2,175,000		2,999,295
									4,871,795
Materials: 0.55%
Metals & Mining: 0.55%
Arcelormittal		6.13			06/01/2018		1,900,000		2,010,884
Teck Resources Limited		10.25			05/15/2016		1,650,000		1,898,896
									3,909,780
Telecommunication Services: 0.89%
Diversified Telecommunication Services: 0.89%
Telecom Italia Capital SA		5.25			10/01/2015		1,545,000		1,560,450
Telefonica Emisiones SAU		5.13			04/27/2020		1,880,000		1,855,658
Telefonos de Mexico SAB de CV		5.50			11/15/2019		2,485,000		2,848,063
									6,264,171
Utilities: 0.44%
Electric Utilities: 0.44%
Western Power Distributions Holdings Limited 144A		7.38			12/15/2028		2,750,000		3,131,908
Total Yankee Corporate Bonds and Notes (Cost $57,015,961)									61,173,942
Yankeee Government Bonds: 0.38%
State of Qatar 144A		4.50			01/20/2022		2,580,000		2,683,200
Total Yankee Government Bonds (Cost $2,553,445)									2,683,200
Other: 0.24%
Gryphon Funding Limited, Pass-Through Entity (i)(a)(v)							1,196,894		323,162
VFNC Corporation, Pass-Through Entity, 0.24% ±144A(i)(a)(v)							3,185,791		1,369,890
Total Other (Cost $689,500)									1,693,052
	Yield					Shares
Short-Term Investments: 16.52%
Investment Companies: 16.45%
Wells Fargo Advantage Cash Investment Money Market Fund, Institutional Class (l)(u)##		0.02					113,692,336		113,692,336
Wells Fargo Securities Lending Cash Investments, LLC (v)(l)(u)(r)		0.15					2,519,956		2,519,956
									116,212,292

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

16 Wells Fargo Advantage Income Plus Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Yield			Maturity Date		Principal		Value
U.S. Treasury Securities: 0.07%
U.S. Treasury Bill #		0.05	%		03/29/2012	$	100,000	$	99,996
U.S. Treasury Bill #		0.08			03/29/2012		400,000		399,975
									499,971
Total Short-Term Investments (Cost $116,712,280)									116,712,263

Total Investments in Securities
(Cost $802,283,992) *	117.62	%		830,884,043
Other Assets and Liabilities, Net	(17.62	)		(124,497,320	)
Total Net Assets	100.00	%	$	706,386,723

± Variable rate investment.

%% Security issued on a when-issued (TBA) 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.

144A Security that may be resold to “qualified institutional buyers” under Rule 144A or security 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.

(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.

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

(r) The investment company is exempt from registration under Section 3(c)(7) of the 1940 Act.

# All or a portion of this security is segregated as collateral for investments in derivative instruments.

* Cost for federal income tax purposes is $755,708,179 and net unrealized appreciation (depreciation) consists of:

Gross unrealized appreciation	$	76,584,607
Gross unrealized depreciation		(1,408,743	)
Net unrealized appreciation	$	75,175,864

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

Statement of Assets and Liabilities—February 29, 2012 (Unaudited) Wells Fargo Advantage Income Plus Fund 17

Assets
Investments
In unaffiliated securities (including securities on loan), at value (see cost below)	$	714,671,751
In affiliated securities, at value (see cost below)		116,212,292
Total investments, at value (see cost below)		830,884,043
Receivable for investments sold		11,936,152
Principal paydown receivable		61
Receivable for Fund shares sold		1,080,838
Receivable for interest		5,377,143
Receivable for daily variation margin on open futures contracts		98,094
Receivable for securities lending income		561
Prepaid expenses and other assets		204,990
Total assets		849,581,882
Liabilities
Payable for investments purchased		138,911,471
Payable for Fund shares redeemed		586,144
Payable upon receipt of securities loaned		3,209,456
Advisory fee payable		206,666
Distribution fees payable		24,568
Due to other related parties		63,148
Accrued expenses and other liabilities		193,706
Total liabilities		143,195,159
Total net assets	$	706,386,723
NET ASSETS CONSIST OF
Paid-in capital	$	713,924,484
Undistributed net investment income		389,548
Accumulated net realized losses on investments		(36,474,860	)
Net unrealized gains on investments		28,547,551
Total net assets	$	706,386,723
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE1
Net assets – Class A	$	176,678,139
Shares outstanding – Class A		14,371,415
Net asset value per share – Class A		$12.29
Maximum offering price per share – Class A2		$12.87
Net assets – Class B	$	3,411,049
Shares outstanding – Class B		277,028
Net asset value per share – Class B		$12.31
Net assets – Class C	$	38,338,718
Shares outstanding – Class C		3,120,161
Net asset value per share – Class C		$12.29
Net assets – Administrator Class	$	131,520,247
Shares outstanding – Administrator Class		10,714,157
Net asset value per share – Administrator Class		$12.28
Net assets – Institutional Class	$	162,291,320
Shares outstanding – Institutional Class		13,203,599
Net asset value per share – Institutional Class		$12.29
Net assets – Investor Class	$	194,147,250
Shares outstanding – Investor Class		15,793,816
Net asset value per share – Investor Class		$12.29
Investments in unaffiliated securities, at cost	$	686,071,700
Investments in affiliated securities, at cost	$	116,212,292
Total investments, at cost	$	802,283,992
Securities on loan, at value	$	3,142,673

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.

18 Wells Fargo Advantage Income Plus Fund Statement of Operations—Six Months Ended February 29, 2012 (Unaudited)

Investment income
Interest	$	12,039,719
Dividends		3,471
Income from affiliated securities		43,222
Securities lending income, net		12,937
Total investment income		12,099,349
Expenses
Advisory fee		1,319,277
Administration fees
Fund level		167,616
Class A		135,550
Class B		2,814
Class C		26,791
Administrator Class		56,700
Institutional Class		64,139
Investor Class		180,759
Shareholder servicing fees
Class A		211,796
Class B		4,373
Class C		41,861
Administrator Class		141,426
Investor Class		225,507
Distribution fees
Class B		13,190
Class C		125,584
Custody and accounting fees		21,947
Professional fees		25,051
Registration fees		32,633
Shareholder report expenses		15,555
Trustees’ fees and expenses		5,936
Other fees and expenses		10,847
Total expenses		2,829,352
Less: Fee waivers and/or expense reimbursements		(57,781	)
Net expenses		2,771,571
Net investment income		9,327,778
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		12,045,427
Futures transactions		(152,141	)
Net realized gains on investments		11,893,286
Net change in unrealized gains (losses) on:
Unaffiliated securities		4,088,154
Futures transactions		(19,030	)
Net change in unrealized gains (losses) on investments		4,069,124
Net realized and unrealized gains (losses) on investments		15,962,410
Net increase in net assets resulting from operations	$	25,290,188

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

Statements of Changes in Net Assets Wells Fargo Advantage Income Plus Fund 19

	Six Months Ended February 29, 2012 (Unaudited)						Year Ended August 31, 2011
Operations
Net investment income				$	9,327,778					$	20,206,814
Net realized gains on investments					11,893,286						7,235,550
Net change in unrealized gains (losses) on investments					4,069,124						1,438,824
Net increase in net assets resulting from operations					25,290,188						28,881,188
Distributions to shareholders from
Net investment income
Class A					(2,198,010	)					(7,253,660	)
Class B					(31,771	)					(126,499	)
Class C					(308,849	)					(775,337	)
Administrator Class					(1,573,942	)					(1,288,066	)
Institutional Class					(2,344,343	)					(5,565,679	)
Investor Class					(2,446,440	)					(6,235,854	)
Net realized gains
Class A					(453,790	)					(2,570,215	)
Class B					(8,925	)					(55,169	)
Class C					(86,836	)					(300,818	)
Administrator Class					(312,299	)					(24,938	)
Institutional Class					(424,887	)					(1,471,630	)
Investor Class					(505,596	)					(1,899,529	)
Total distributions to shareholders					(10,695,688	)					(27,567,394	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		2,080,559			25,259,279			5,063,452			59,779,883
Class B		33,428			406,981			67,095			799,510
Class C		860,609			10,445,080			556,323			6,596,391
Administrator Class		4,517,650			54,535,696			8,546,199			100,875,382
Institutional Class		406,712			4,946,458			2,029,087			24,130,906
Investor Class		1,080,657			13,121,714			1,904,015			22,594,674
					108,715,208						214,776,746
Reinvestment of distributions
Class A		162,124			1,967,558			678,417			7,991,473
Class B		2,607			31,673			11,396			134,447
Class C		21,478			260,553			57,653			679,224
Administrator Class		152,808			1,852,143			106,380			1,261,230
Institutional Class		205,636			2,494,830			542,974			6,406,206
Investor Class		217,564			2,639,840			610,699			7,203,352
					9,246,597						23,675,932
Payment for shares redeemed
Class A		(1,456,373	)		(17,729,330	)		(13,928,582	)		(164,089,087	)
Class B		(95,396	)		(1,159,101	)		(253,152	)		(2,996,286	)
Class C		(286,082	)		(3,478,733	)		(611,787	)		(7,241,866	)
Administrator Class		(1,450,539	)		(17,532,697	)		(1,159,186	)		(13,782,662	)
Institutional Class		(811,659	)		(9,836,307	)		(1,428,770	)		(17,000,233	)
Investor Class		(1,214,416	)		(14,740,575	)		(3,319,807	)		(39,257,635	)
					(64,476,743	)					(244,367,769	)
Net increase (decrease) in net assets resulting from capital share transactions					53,485,062						(5,915,091	)
Total increase (decrease) in net assets					68,079,562						(4,601,297	)
Net assets
Beginning of period					638,307,161						642,908,458
End of period				$	706,386,723					$	638,307,161
Undistributed (overdistributed) net investment income				$	389,548					$	(34,875	)

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

20 Wells Fargo Advantage Income Plus Fund Financial Highlights

(For a share outstanding throughout each period)

	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,						Year Ended May 31,
Class A				2011			20101			2010			2009			2008			2007
Net asset value, beginning of period	$	12.04		$	12.00		$	11.59		$	10.82		$	10.70		$	10.65		$	10.49
Net investment income		0.16			0.37	2		0.09	2		0.37	2		0.42	2		0.48	2		0.53	2
Net realized and unrealized gains (losses) on investments		0.28			0.18			0.44			0.88			0.15			0.08			0.19
Total from investment operations		0.44			0.55			0.53			1.25			0.57			0.56			0.72
Distributions to shareholders from
Net investment income		(0.16	)		(0.42	)		(0.12	)		(0.48	)		(0.45	)		(0.51	)		(0.56	)
Net realized gains		(0.03	)		(0.09	)		0.00			0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.19	)		(0.51	)		(0.12	)		(0.48	)		(0.45	)		(0.51	)		(0.56	)
Net asset value, end of period	$	12.29		$	12.04		$	12.00		$	11.59		$	10.82		$	10.70		$	10.65
Total return3		3.68	%		4.76	%		4.62	%		11.74	%		5.52	%		5.37	%		7.04	%
Ratios to average net assets (annualized)
Gross expenses		0.89	%		0.88	%		0.91	%		1.03	%		1.05	%		1.35	%		1.34	%
Net expenses		0.88	%		0.88	%		0.88	%		0.90	%		0.90	%		1.00	%		1.00	%
Net investment income		2.73	%		3.17	%		3.07	%		3.29	%		4.01	%		4.50	%		4.96	%
Supplemental data
Portfolio turnover rate		119	%		215	%		84	%		187	%		455	%		245	%		205	%
Net assets, end of period (000’s omitted)		$176,678			$163,499			$261,227			$130,382			$94,938			$43,481			$37,526

1. 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.

2. Calculated based upon average shares outstanding.

3. Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

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

Financial Highlights Wells Fargo Advantage Income Plus Fund 21

(For a share outstanding throughout each period)

	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,						Year Ended May 31,
Class B				2011			20101			2010			2009			2008			2007
Net asset value, beginning of period	$	12.05		$	12.01		$	11.61		$	10.82		$	10.70		$	10.65		$	10.49
Net investment income		0.11	2		0.29	2		0.07	2		0.29	2		0.35	2		0.40	2		0.35	2
Net realized and unrealized gains (losses) on investments		0.29			0.17			0.43			0.89			0.14			0.08			0.29
Total from investment operations		0.40			0.46			0.50			1.18			0.49			0.48			0.64
Distributions to shareholders from
Net investment income		(0.11	)		(0.33	)		(0.10	)		(0.39	)		(0.37	)		(0.43	)		(0.48	)
Net realized gains		(0.03	)		(0.09	)		0.00			0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.14	)		(0.42	)		(0.10	)		(0.39	)		(0.37	)		(0.43	)		(0.48	)
Net asset value, end of period	$	12.31		$	12.05		$	12.01		$	11.61		$	10.82		$	10.70		$	10.65
Total return3		3.36	%		3.97	%		4.31	%		11.04	%		4.69	%		4.58	%		6.24	%
Ratios to average net assets (annualized)
Gross expenses		1.63	%		1.63	%		1.65	%		1.78	%		1.80	%		2.10	%		2.09	%
Net expenses		1.63	%		1.63	%		1.62	%		1.65	%		1.65	%		1.75	%		1.75	%
Net investment income		1.85	%		2.40	%		2.33	%		2.54	%		3.30	%		3.75	%		4.24	%
Supplemental data
Portfolio turnover rate		119	%		215	%		84	%		187	%		455	%		245	%		205	%
Net assets, end of period (000’s omitted)		$3,411			$4,054			$6,140			$1,839			$3,937			$7,067			$10,682

1. 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.

2. Calculated based upon average shares outstanding.

3. Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

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

22 Wells Fargo Advantage Income Plus Fund Financial Highlights

(For a share outstanding throughout each period)

	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,						Year Ended May 31,
Class C				2011			20101			2010			2009			2008			2007
Net asset value, beginning of period	$	12.03		$	12.00		$	11.59		$	10.82		$	10.69		$	10.65		$	10.49
Net investment income		0.11	2		0.29	2		0.07	2		0.29	2		0.35	2		0.40	2		0.43	2
Net realized and unrealized gains (losses) on investments		0.29			0.16			0.44			0.88			0.15			0.07			0.21
Total from investment operations		0.40			0.45			0.51			1.17			0.50			0.47			0.64
Distributions to shareholders from
Net investment income		(0.11	)		(0.33	)		(0.10	)		(0.40	)		(0.37	)		(0.43	)		(0.48	)
Net realized gains		(0.03	)		(0.09	)		0.00			0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.14	)		(0.42	)		(0.10	)		(0.40	)		(0.37	)		(0.43	)		(0.48	)
Net asset value, end of period	$	12.29		$	12.03		$	12.00		$	11.59		$	10.82		$	10.69		$	10.65
Total return3		3.38	%		3.92	%		4.42	%		10.93	%		4.85	%		4.50	%		6.24	%
Ratios to average net assets (annualized)
Gross expenses		1.64	%		1.63	%		1.66	%		1.78	%		1.80	%		2.10	%		2.09	%
Net expenses		1.63	%		1.63	%		1.63	%		1.65	%		1.65	%		1.75	%		1.75	%
Net investment income		1.84	%		2.41	%		2.32	%		2.53	%		3.32	%		3.75	%		4.23	%
Supplemental data
Portfolio turnover rate		119	%		215	%		84	%		187	%		455	%		245	%		205	%
Net assets, end of period (000’s omitted)		$38,339			$30,364			$30,253			$14,533			$7,242			$4,870			$4,633

1. 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.

2. Calculated based upon average shares outstanding.

3. Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

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

Financial Highlights Wells Fargo Advantage Income Plus Fund 23

(For a share outstanding throughout each period)

	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,
Administrator Class				2011			20101
Net asset value, beginning of period	$	12.02		$	12.00		$	11.87
Net investment income		0.17			0.39	2		0.03	2
Net realized and unrealized gains (losses) on investments		0.29			0.16			0.14
Total from investment operations		0.46			0.55			0.17
Distributions to shareholders from
Net investment income		(0.17	)		(0.44	)		(0.04	)
Net realized gains		(0.03	)		(0.09	)		0.00
Total distributions to shareholders		(0.20	)		(0.53	)		(0.04	)
Net asset value, end of period	$	12.28		$	12.02		$	12.00
Total return3		3.84	%		4.82	%		1.43	%
Ratios to average net assets (annualized)
Gross expenses		0.83	%		0.82	%		0.86	%
Net expenses		0.74	%		0.75	%		0.86	%
Net investment income		2.72	%		3.29	%		3.31	%
Supplemental data
Portfolio turnover rate		119	%		215	%		84	%
Net assets, end of period (000’s omitted)		$131,520			$90,063			$10

1. For the period from July 30, 2010 (commencement of class operations) to August 31, 2010.

2. Calculated based upon average shares outstanding.

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

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

24 Wells Fargo Advantage Income Plus Fund Financial Highlights

(For a share outstanding throughout each period)

	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,						Year Ended May 31,
Institutional Class				2011			20101			2010			20092
Net asset value, beginning of period	$	12.03		$	12.00		$	11.60		$	10.82		$	10.51
Net investment income		0.18			0.41	3		0.10	3		0.41	3		0.39	3
Net realized and unrealized gains (losses) on investments		0.29			0.17			0.43			0.88			0.36
Total from investment operations		0.47			0.58			0.53			1.29			0.75
Distributions to shareholders from
Net investment income		(0.18	)		(0.46	)		(0.13	)		(0.51	)		(0.44	)
Net realized gains		(0.03	)		(0.09	)		0.00			0.00			0.00
Total distributions to shareholders		(0.21	)		(0.55	)		(0.13	)		(0.51	)		(0.44	)
Net asset value, end of period	$	12.29		$	12.03		$	12.00		$	11.60		$	10.82
Total return4		3.93	%		5.04	%		4.71	%		12.06	%		7.29	%
Ratios to average net assets (annualized)
Gross expenses		0.56	%		0.55	%		0.59	%		0.68	%		0.69	%
Net expenses		0.56	%		0.55	%		0.56	%		0.61	%		0.61	%
Net investment income		2.91	%		3.53	%		3.36	%		3.58	%		4.29	%
Supplemental data
Portfolio turnover rate		119	%		215	%		84	%		187	%		455	%
Net assets, end of period (000’s omitted)		$162,291			$161,276			$147,102			$112,163			$97,574

1. 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.

2. For the period from July 18, 2008 (commencement of class operations) to May 31, 2009.

3. Calculated based upon average shares outstanding.

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

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

Financial Highlights Wells Fargo Advantage Income Plus Fund 25

(For a share outstanding throughout each period)

	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,						Year Ended May 31,
Investor Class				2011			20101			2010			20092
Net asset value, beginning of period	$	12.03		$	12.00		$	11.60		$	10.82		$	10.51
Net investment income		0.16			0.37	3		0.09	3		0.37	3		0.36	3
Net realized and unrealized gains (losses) on investments		0.29			0.17			0.43			0.88			0.36
Total from investment operations		0.45			0.54			0.52			1.25			0.72
Distributions to shareholders from
Net investment income		(0.16	)		(0.42	)		(0.12	)		(0.47	)		(0.41	)
Net realized gains		(0.03	)		(0.09	)		0.00			0.00			0.00
Total distributions to shareholders		(0.19	)		(0.51	)		(0.12	)		(0.47	)		(0.41	)
Net asset value, end of period	$	12.29		$	12.03		$	12.00		$	11.60		$	10.82
Total return4		3.75	%		4.67	%		4.52	%		11.79	%		6.99	%
Ratios to average net assets (annualized)
Gross expenses		0.90	%		0.90	%		0.97	%		1.07	%		1.08	%
Net expenses		0.90	%		0.90	%		0.92	%		0.94	%		0.94	%
Net investment income		2.60	%		3.14	%		3.00	%		3.25	%		3.94	%
Supplemental data
Portfolio turnover rate		119	%		215	%		84	%		187	%		455	%
Net assets, end of period (000’s omitted)		$194,147			$189,051			$198,176			$188,551			$177,010

1. 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.

2. For the period from July 18, 2008 (commencement of class operations) to May 31, 2009.

3. Calculated based upon average shares outstanding.

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

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

26 Wells Fargo Advantage Income Plus Fund Notes to Financial Statements (Unaudited)

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 Wells Fargo Advantage Income Plus Fund (the “Fund”) which 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 the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Securities valuation

Fixed income securities with original maturities exceeding 60 days are valued based on available evaluated prices received from an independent pricing service approved by the 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 Fund’s 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.

Investments in equity securities are valued each business day as of the close of regular trading on the New York Stock Exchange, which is usually 4:00 p.m. (Eastern Time). Securities which are traded on a national or foreign securities exchange are valued at the last reported sales price, except that securities listed on The Nasdaq Stock Market, Inc. (“Nasdaq”) are valued at the Nasdaq Official Closing Price (“NOCP”), and if no NOCP is available, then at the last reported sales price. If no sales price is shown on the Nasdaq, the bid price will be used. In the absence of any sale of securities listed on the Nasdaq, and in the case of other securities (including U.S. Government obligations, but excluding debt securities maturing in 60 days or less), the price will be deemed “stale” and the valuations will be determined in accordance with the Fund’s Fair Value Procedures.

Investments in open-end mutual funds and non-registered investment companies are generally valued at net asset value.

Investments which are not valued using any of the methods discussed above, are valued at their fair value, as determined by procedures established in good faith and approved by the Board of Trustees.

Security loans

The Fund may lend its securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. The Fund continues to receive interest or dividends on the securities loaned. The 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 a securities lending transaction, the net asset value of the 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 the instrument in which collateral is invested. The amount of securities lending activity undertaken by the Fund fluctuates from time to time. In the event of default or bankruptcy by the borrower, the Fund may be prevented from recovering the loaned securities or gaining access to the collateral or may experience delays or costs in doing so. In 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 Fund lends its securities through an unaffiliated securities lending agent. Cash collateral received in connection with its 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

Notes to Financial Statements (Unaudited) Wells Fargo Advantage Income Plus Fund 27

Incorporated (“Wells Capital Management”). Funds Management receives an 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 Statement of Operations.

For Wells Fargo Advantage Funds that participated in securities lending activity prior to February 13, 2009, certain structured investment vehicles purchased in a joint account by the former securities lending agent defaulted or were impaired. Certain of the Wells Fargo Advantage Funds still hold ownership interest in these structured investment vehicles, which have since been restructured as pass-through securities. If the Fund holds an ownership interest in such pass-through securities, information regarding this ownership interest can be found in the Portfolio of Investments under the category “Other”.

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.

Futures contracts

The Fund may be subject to interest rate risk in the normal course of pursuing its investment objectives. The Fund 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 when available. 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 Statement of Assets and Liabilities as an asset or liability and in the Statement 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.

Mortgage dollar roll transactions

The Fund may engage in mortgage dollar roll transactions with respect to mortgage-backed securities issued by Government National Mortgage Association (GNMA), Federal National Mortgage Association (FNMA) and Federal Home Loan Mortgage Corporation (FHLMC). In a mortgage dollar roll transaction, the Fund sells a mortgage-backed security to a financial institution, such as a bank or broker-dealer and simultaneously agrees to repurchase a substantially similar security from the institution at a later date at an agreed upon price. The mortgage-backed securities that are repurchased will bear the same interest rate as those sold, but generally will be collateralized by different pools of mortgages with different pre-payment histories. During the roll period, the Fund foregoes principal and interest paid on the securities. The Fund is compensated by the difference between the current sales price and the forward price for the future purchase as well as by the earnings on the cash proceeds of the initial sale. Mortgage dollar rolls may be renewed without physical delivery of the securities subject to the contract. The Fund accounts for TBA dollar roll transactions as purchases and sales.

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.

28 Wells Fargo Advantage Income Plus Fund Notes to Financial Statements (Unaudited)

Dividend income is recognized on the ex-dividend date.

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 income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.

The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities.

Under the recently enacted Regulated Investment Company Modernization Act of 2010, the Fund is permitted to carry forward capital losses incurred in taxable years which began after December 22, 2010 for an unlimited period. However, any losses incurred are 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.

At August 31, 2011, net capital loss carryforwards, which were available to offset future net realized capital gains, were as follows:

Expiration
2013	2014	2015	2016	2017
$869,776	$4,304,664	$9,072,772	$21,588,119	$10,272,813

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 significant unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:

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

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

n Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

Notes to Financial Statements (Unaudited) Wells Fargo Advantage Income Plus Fund 29

As of February 29, 2012, the inputs used in valuing the Fund’s assets, which are carried at fair value, were as follows:

Investments in Securities	Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Agency securities	$	0	$	219,324,083	$	0	$	219,324,083
Asset-backed securities		0		6,530,043		0		6,530,043
Corporate bonds and notes		0		182,786,318		0		182,786,318
Municipal bonds and notes		0		6,680,199		0		6,680,199
Non-agency mortgage backed securities		0		26,995,603		0		26,995,603
U.S. Treasury securities		206,305,340		0		0		206,305,340
Yankee corporate bonds and notes		0		61,173,942		0		61,173,942
Yankee government bonds		0		2,683,200		0		2,683,200
Other		0		0		1,693,052		1,693,052
Short-term investments
Investment companies		113,692,336		2,519,956		0		116,212,292
U.S. Treasury securities		499,971		0		0		499,971
	$	320,497,647	$	508,693,344	$	1,693,052	$	830,884,043

Further details on the major security types listed above can be found in the Portfolio of Investments.

As of February 29, 2012, the inputs used in valuing the Fund’s other financial instruments, which are carried at fair value, were as follows:

Other financial instruments	Quoted Prices (Level 1)			Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Futures contracts+	$	(52,500	)	$	0	$	0	$	(52,500	)

+ Futures contracts are presented at the unrealized gains or losses on the instrument.

Transfers in and transfers out are recognized at the end of the reporting period. For the six months ended February 29, 2012, the Fund 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:

	Preferred stocks			Other			Total
Balance as of August 31, 2011	$	52,650		$	2,312,454		$	2,365,104
Accrued discounts (premiums)		0			0			0
Realized gains (losses)		(4,085	)		0			(4,085	)
Change in unrealized gains (losses)		2,485			(353,648	)		(351,163	)
Purchases		0			0			0
Sales		(51,050	)		(265,754	)		(316,804	)
Transfers into Level 3		0			0			0
Transfers out of Level 3		0			0			0
Balance as of February 29, 2012	$	0		$	1,693,052		$	1,693,052
Change in unrealized gains (losses) relating to securities still held at February 29, 2012	$	0		$	(483,891	)	$	(483,891	)

30 Wells Fargo Advantage Income Plus Fund Notes to Financial Statements (Unaudited)

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Advisory fee

The Trust has entered into an advisory contract with Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”). The 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 Fund.

Pursuant to the contract, Funds Management is entitled to receive an annual advisory fee starting at 0.40% and declining to 0.30% as the average daily net assets of the Fund increase. For the six months ended February 29, 2012, the advisory fee was equivalent to an annual rate of 0.39% of the Fund’s average daily net assets.

Funds Management has retained the services of certain sub-advisers to provide daily portfolio management to the Fund. The fees related to sub-advisory services are borne directly by Funds Management and do not increase the overall fees paid by the Fund. Wells Capital Management, an affiliate of Funds Management, is the sub-adviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.20% and declining to 0.10% as the average daily net assets of the Fund increase.

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 the Fund an annual fund level administration fee starting at 0.05% and declining to 0.03% as the average daily net assets of the Fund increase and a class level administration fee which is calculated based on the average daily net assets of each class as follows:

	Class Level Administration Fee
Class A, Class B, Class C		0.16	%
Administrator Class		0.10
Institutional Class		0.08
Investor Class		0.19

Funds Management has contractually waived and/or reimbursed 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. Funds Management has committed through July 11, 2013 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.87% for Class A, 1.62% for Class B, 1.62% for Class C, 0.72% for Administrator Class, 0.58% for Institutional Class and 0.90% for Investor Class.

Distribution fees

The Trust has adopted a Distribution Plan for Class B and Class C shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. Distribution fees are charged to Class B and Class C shares and paid to Wells Fargo Funds Distributor, LLC, the principal underwriter, at an annual rate of 0.75% of the average daily net assets of Class B and Class C shares.

For the six months ended February 29, 2012, Wells Fargo Funds Distributor, LLC received $14,237 from the sale of Class A shares and $10, $1,073 and $1,914 in contingent deferred sales charges from redemptions of Class A, Class B and Class C shares, respectively.

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 the 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.

Notes to Financial Statements (Unaudited) Wells Fargo Advantage Income Plus Fund 31

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding short-term securities (securities with maturities of one year or less at purchase date), for the six months ended February 29, 2012 were as follows:

Purchases at Cost		Sales Proceeds
U.S. Government	Non-U.S. Government	U.S. Government	Non-U.S. Government
$751,508,755	$112,230,473	$696,812,720	$107,784,370

6. DERIVATIVE TRANSACTIONS

During the six months ended February 29, 2012, the Fund entered into futures contracts to speculate on interest rates.

At February 29, 2012, the Fund had long and short futures contracts outstanding as follows:

Expiration Date	Contracts	Type	Contract Value at February 29, 2012		Net Unrealized Gains (Losses)
June 2012	26 Long	2-Year U.S. Treasury Notes	$	5,726,094	$	(456	)
June 2012	123 Long	5-Year U.S. Treasury Notes		15,150,141		3,610
June 2012	135 Short	10-Year U.S. Treasury Notes		17,678,672		(46,663	)
June 2012	94 Short	30-Year U.S. Treasury Bonds		13,315,688		(8,991	)

The Fund had an average notional amount of $10,644,213 and $20,275,580 in long and short futures contracts, respectively, during the six months ended February 29, 2012.

On February 29, 2012, the cumulative unrealized losses on futures contracts in the amount of $52,500 is reflected in net unrealized gains on investments on the Statement of Assets and Liabilities. The receivable for daily variation margin on open futures contracts reflected in the Statement of Assets and Liabilities only represents the current day’s variation margin. The realized losses and change in unrealized gains (losses) on futures contracts are reflected in the Statement of Operations.

7. BANK BORROWINGS

The Trust (excluding the money market funds) and Wells Fargo Variable Trust are parties to a $150,000,000 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, an annual commitment fee equal to 0.10% of the unused balance is allocated to each participating fund. Prior to September 6, 2011, the revolving credit agreement was for $125,000,000 and the annual commitment fee paid by the Fund was 0.125% of the unused balance. For the six months ended February 29, 2012, the Fund paid $484 in commitment fees.

For the six months ended February 29, 2012, there were no borrowings by the Fund under the agreement.

8. 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 Fund and, therefore, cannot be estimated.

9. NEW ACCOUNTING PRONOUNCEMENTS

In May 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-04 “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs”. ASU No. 2011-04 amends FASB ASC Topic 820, Fair Value Measurements and Disclosures, to establish common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with

32 Wells Fargo Advantage Income Plus Fund Notes to Financial Statements (Unaudited)

GAAP. The ASU is effective prospectively for interim and annual periods beginning after December 15, 2011. Management expects that adoption of the ASU will result in additional disclosures in the financial statements, as applicable.

In April 2011, FASB issued ASU No. 2011-03 “Reconsideration of Effective Control for Repurchase Agreements”. ASU No. 2011-03 amends FASB ASC Topic 860, Transfers and Servicing, specifically the criteria required to determine whether a repurchase agreement (repo) and similar agreements should be accounted for as sales of financial assets or secured borrowings with commitments. ASU No. 2011-03 changes the assessment of effective control by focusing on the transferor’s contractual rights and obligations and removing the criterion to assess its ability to exercise those rights or honor those obligations. This could result in changes to the way entities account for certain transactions including repurchase agreements, mortgage dollar rolls and reverse repurchase agreements. The ASU will become effective on a prospective basis for new transfers and modifications to existing transactions as of the beginning of the first interim or annual period beginning on or after December 15, 2011. Management has evaluated the impact of adopting the ASU and expects no significant changes.

Other Information (Unaudited) Wells Fargo Advantage Income Plus Fund 33

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 wellsfargoadvantagefunds.com, or visiting the SEC Web site at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge on the Fund’s Web site at wellsfargoadvantagefunds.com or by visiting the SEC Web site at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available on the Fund’s Web site (wellsfargoadvantagefunds.com) 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 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.

34 Wells Fargo Advantage Income Plus Fund Other Information (Unaudited)

BOARD OF TRUSTEES

The following table provides basic information about the Board of Trustees (the “Trustees”) of the Trust and Officers of the Trust. This table should be read in conjunction with the Prospectus and the Statement of Additional Information¹ of 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 137 funds comprising the Wells Fargo Funds 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 Year of Birth	Position Held and Length of Service	Principal Occupations During Past Five Years	Other Directorships During Past Five Years
Peter G. Gordon (Born 1942)	Trustee, since 1998; Chairman, since 2005 (Lead Trustee since 2001)	Co-Founder, Retired Chairman, President and CEO of Crystal Geyser Water Company. Trustee Emeritus, Colby College	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 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 40 portfolios as of 12/31/11); Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of Corporate Governance Research Program and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust

Other Information (Unaudited) Wells Fargo Advantage Income Plus Fund 35

Name and Year of Birth	Position Held and Length of Service	Principal Occupations During Past Five Years	Other Directorships During Past Five Years
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	Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield 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. Director and Vice Chair of The Free Trust (non-profit corporation). Director of the American Chestnut Foundation (non-profit corporation).	Asset Allocation Trust

Officers

Name and Year of Birth	Position Held and 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 Senior 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.
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. 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 Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the Web site at wellsfargoadvantagefunds.com.

36 Wells Fargo Advantage Income Plus Fund List of Abbreviations

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

ACB —  Agricultural Credit Bank

ADR —  American Depository 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

AUD —  Australian Dollar

BAN —  Bond Anticipation Notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazil Real

CAB —  Capital Appreciation Bond

CAD —  Canadian Dollar

CCAB —  Convertible Capital Appreciation Bond

CDA —  Community Development Authority

CDO —  Collateralized Debt Obligation

CHF —  Swiss Franc

COP —  Certificate of Participation

CR —  Custody Receipts

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

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-Traded Fund

EUR —  Euro

FFCB —  Federal Farm Credit Bank

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Authority

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British Pound

GDR —  Global Depository 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

HUF —  Hungarian Forint

IBC —  Insured Bond Certificate

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

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

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

PUTTER —  Puttable Tax-Exempt Receipts

R&D —  Research & Development

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real Estate Investment Trust

ROC —  Reset Option Certificates

SAVRS —  Select Auction Variable Rate Securities

SBA —  Small Business Authority

SEK —  Swedish Krona

SFHR —  Single Family Housing Revenue

SFMR —  Single Family Mortgage Revenue

SGD —  Singapore Dollar

SKK —  Slovakian Koruna

SPDR —  Standard & Poor’s Depositary Receipts

TAN —  Tax Anticipation Notes

TBA —  To Be Announced

TIPS —  Treasury Inflation-Protected Securities

TRAN —  Tax Revenue Anticipation Notes

TCR —  Transferable Custody Receipts

TRY —  Turkish Lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

XLCA —  XL Capital Assurance

ZAR —  South African Rand

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FOR MORE INFORMATION

More information about Wells Fargo Advantage Funds is available free upon request. To obtain literature, please write, e-mail, visit the Fund’s Web site, or call:

Wells Fargo Advantage Funds

P.O. Box 8266

Boston, MA 02266-8266

E-mail: wfaf@wellsfargo.com

Web site: wellsfargoadvantagefunds.com

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 wellsfargoadvantagefunds.com. 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

© 2012 Wells Fargo Funds Management, LLC. All rights reserved.

208524 04-12 SA219/SAR219 2-12

Wells Fargo Advantage

Short Duration Government Bond Fund

Semi-Annual Report

February 29, 2012

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Sign up for electronic delivery of prospectuses and shareholder reports at wellsfargo.com/advantagedelivery

Contents

Letter to Shareholders	2
Performance Highlights	5
Fund Expenses	7
Portfolio of Investments	8
Financial Statements
Statement of Assets and Liabilities	13
Statement of Operations	14
Statements of Changes in Net Assets	15
Financial Highlights	16
Notes to Financial Statements	21
Other Information	26
List of Abbreviations	29

The views expressed and any forward-looking statements are as of February 29, 2012, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Advantage Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements; the views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC, disclaims any obligation to publicly update or revise any views expressed or forward-looking statements.

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 FundsSM).
1996	Evergreen Investments and Keystone Funds merge.
1997	Wells Fargo launches Wells Fargo Advantage WealthBuilder PortfoliosSM, 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 a fund’s investment objectives, risks, charges, and expenses before investing. For a current prospectus and, if available, a summary prospectus, containing this and other information, visit wellsfargoadvantagefunds.com. 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.

“Dow Jones^®” and “Dow Jones Target Date Indexes^SM” are service marks of Dow Jones Trademark Holdings, LLC (“Dow Jones”), have been licensed to CME Group Index Services LLC (“CME Indexes”) and have been sublicensed for use for certain purposes by Global Index Advisors, Inc, and Wells Fargo Funds Management, LLC. The Wells Fargo Advantage Dow Jones Target Date Funds^SM based on the Dow Jones Target Date Indexes^SM, are not sponsored, endorsed, sold or promoted by Dow Jones, CME Indexes or their respective affiliates and none of them makes any representation regarding the advisability of investing in such product(s).

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

Not part of the semi-annual report.

Wells Fargo Advantage Funds offers more than 110 mutual funds across a wide range of asset classes, representing over $218 billion in assets under management, as of February 29, 2012.

Equity Funds
Asia Pacific Fund	Equity Value Fund	Precious Metals Fund
C&B Large Cap Value Fund	Global Opportunities Fund	Premier Large Company Growth Fund
C&B Mid Cap Value Fund	Growth Fund	Small Cap Opportunities Fund
Capital Growth Fund	Index Fund	Small Cap Value Fund
Common Stock Fund	International Equity Fund	Small Company Growth Fund
Disciplined U.S. Core Fund	International Value Fund	Small Company Value Fund
Discovery Fund†	Intrinsic Small Cap Value Fund	Small/Mid Cap Core Fund
Diversified Equity Fund	Intrinsic Value Fund	Small/Mid Cap Value Fund
Diversified International Fund	Intrinsic World Equity Fund	Special Mid Cap Value Fund
Diversified Small Cap Fund	Large Cap Core Fund	Special Small Cap Value Fund
Emerging Growth Fund	Large Cap Growth Fund	Specialized Technology Fund
Emerging Markets Equity Fund	Large Company Value Fund	Strategic Large Cap Growth Fund
Endeavor Select Fund†	Omega Growth Fund	Traditional Small Cap Growth Fund
Enterprise Fund†	Opportunity 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
Absolute Return Fund	WealthBuilder Equity Portfolio†	Target 2020 Fund†
Asset Allocation Fund	WealthBuilder Growth Allocation Portfolio†	Target 2025 Fund†
Conservative Allocation Fund	WealthBuilder Growth Balanced Portfolio†	Target 2030 Fund†
Diversified Capital Builder Fund	WealthBuilder Moderate Balanced Portfolio†	Target 2035 Fund†
Diversified Income Builder Fund	WealthBuilder Tactical Equity Portfolio†	Target 2040 Fund†
Growth Balanced Fund	Target Today Fund†	Target 2045 Fund†
Index Asset Allocation Fund	Target 2010 Fund†	Target 2050 Fund†
Moderate Balanced Fund	Target 2015 Fund†	Target 2055 Fund†
WealthBuilder Conservative Allocation Portfolio†
Money Market Funds
100% Treasury Money Market Fund	Heritage Money Market Fund†	National Tax-Free Money Market Fund
California Municipal Money Market Fund	Money Market Fund	Prime Investment Money Market Fund
Cash Investment Money Market Fund	Municipal Cash Management Money Market Fund	Treasury Plus Money Market Fund
Government Money Market Fund	Municipal Money Market Fund
Variable Trust Funds1
VT Discovery Fund†	VT Intrinsic Value Fund	VT Small Cap Growth Fund
VT Index Asset Allocation Fund	VT Omega Growth Fund	VT Small Cap Value Fund
VT International Equity Fund	VT Opportunity Fund†	VT Total Return Bond 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 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 Dow Jones Target 2055 Fund^SM, Wells Fargo Advantage Heritage Money Market Fund^SM, Wells Fargo Advantage VT Discovery Fund^SM, and Wells Fargo Advantage VT Opportunity Fund^SM are referred to as the Discovery Fund, Endeavor Select Fund, Enterprise Fund, Opportunity 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, Target 2055 Fund, Heritage Money Market Fund, VT Discovery Fund, and VT Opportunity Fund, respectively.

Not part of the semi-annual report.

2 Wells Fargo Advantage Short Duration Government Bond Fund Letter to Shareholders

Karla M. Rabusch,

President

Wells Fargo Advantage Funds

The theme for the period was a shift from risk aversion in the first half to burgeoning trends of improving investor confidence in the second half, which significantly improved pricing in the lower-rated asset classes.

On the whole, investment-grade fixed-income securities performed positively during the period, but the strongest returns came from the high-yield market.

Dear Valued Shareholder:

We are pleased to offer you this semi-annual report for the Wells Fargo Advantage Short Duration Government Bond Fund, which covers the six-month period that ended February 29, 2012. During the period, fixed-income performance was best among the lower-rated securities, as improved investor confidence in the U.S. economy and the U.S. credit markets encouraged investors to return to riskier asset classes.

The period began with heightened risk aversion but ended with stronger investor confidence.

The six-month period began with the worsening of the Greek crisis, which amplified risk aversion across the global credit markets. This in turn led to a powerful rally in U.S. Treasuries and a sharp decline in high-yield bond prices, most notably in the lowest-quality credit tiers. During this time, most investment-grade fixed-income markets continued to generate positive returns—although certain areas of the riskiest segments of the markets declined—and U.S. Treasury yields reached the lowest levels in decades, even surpassing the low yield levels reached in the summer of 2010.

The last three months of the period were characterized by a strong reversal of the trends of the first three months. In October 2011, the high-yield market recovered significantly, benefiting from indications of improving policy with regard to managing the debt crisis from Europe and the formal announcement of a European debt deal late in the month. Due to renewed concerns about the European Union’s ability to manage the debt crisis, November 2011 saw a modest decline in investment-grade corporate bond prices and a sharp correction in high-yield corporate bonds, but another strong recovery in pricing started in December and carried into the first two months of 2012. Investor confidence strengthened as the U.S. economy demonstrated signs of sustainable growth and U.S. credit markets began to show some resistance to the credit problems of Europe. Thus, the theme for the period was a shift from risk aversion in the first half to burgeoning trends of improving investor confidence in the second half, which significantly improved pricing in the lower-rated asset classes.

On the whole, investment-grade fixed-income securities performed positively during the period, but the strongest returns came from the high-yield market. In fact, the best returns for the six-month period came from the lowest-rated credit tiers, despite the fact that they significantly underperformed in August and September 2011. Similar trends were true in the structured products sector, as lower-rated commercial mortgage-backed securities were among the best performers for the period, despite underperforming in the first two months.

The Federal Reserve launched Operation Twist in September.

With economic concerns and credit woes escalating in Europe and some continued uncertainty about the growth outlook in the U.S. during August and September 2011, the Federal Reserve (Fed) intervened yet again with monetary accommodations—this time with “Operation Twist,” which was announced and launched in September 2011. With Operation Twist, the Fed endeavored to flatten the yield curve and drive long-term rates down by selling short-term Treasuries

Letter to Shareholders Wells Fargo Advantage Short Duration Government Bond Fund 3

and using the proceeds to purchase long-term Treasuries. The Fed stated that it is unlikely to raise rates before 2014, which should keep yields on Treasuries low. Despite this announcement, problems in Europe caused Treasuries to continue to rally in the first 3 months of the period, while credit spreads on corporate and securitized sectors widened with increasing risk aversion. However, with an improved U.S. economic outlook and greater investor confidence, the last three months of the period saw a slight decline in U.S. Treasury prices and significant improvement in high-yield corporate bond prices. Credit spreads in the corporate and securitized sectors broadly tightened in December 2011 and January and February 2012.

Although U.S. economic conditions appear to have improved over the course of the period, the recovery continues to face some headwinds in the form of languishing housing values and elevated unemployment levels, which may continue to create some volatility in the fixed-income markets. 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. While heightened volatility may be uncomfortable to experience in the short term, we believe it can lead to unique opportunities to add relative value for investors with long-term investment horizons.

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

Periods of uncertainty can present challenges, but 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. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Advantage Funds offers more than 110 mutual funds and other investments spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance.

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 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.

4 Wells Fargo Advantage Short Duration Government Bond Fund Letter to Shareholders

Thank you for choosing to invest with Wells Fargo Advantage Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs. For current information about your fund investments, contact your investment professional, visit our Web site at wellsfargoadvantagefunds.com, or call us directly at 1-800-222-8222. We are available 24 hours a day, 7 days a week.

Sincerely,

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Notice to Shareholders

The Board of Trustees for Wells Fargo Advantage Funds has unanimously approved the following modifications to certain net asset value (NAV) waiver privileges and commission schedules:

n Effective May 1, 2012, automatic investment plan (AIP) purchases and proceeds received from systematic withdrawals will no longer qualify for NAV repurchase privileges.

n Effective May 1, 2012, discretionary rights to waive the upfront commission for Class C and “jumbo” Class A share purchases will no longer be granted to broker/dealers. However, we will continue to waive the Class C shares contingent deferred sales charge for redemptions by employer-sponsored retirement plans where the dealer of record waived its commission at the time of purchase.

n Effective July 31, 2012, NAV purchase privileges for former Evergreen Class IS and Class R shareholders are being modified to remove the ability to purchase Class A shares at NAV unless those shares are held directly with the Fund on or after July 31, 2012.

Please contact your investment professional or call us directly at 1-800-222-8222 if you have any questions on this Notice to Shareholders.

Performance Highlights (Unaudited) Wells Fargo Advantage Short Duration Government Bond Fund 5

INVESTMENT OBJECTIVE

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

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

TEN LARGEST LONG-TERM HOLDINGS1 (AS OF FEBRUARY 29, 2012)
U.S. Treasury Note, 0.13%, 12/31/2013	8.48%
U.S. Treasury Note, 0.25%, 02/15/2015	7.69%
U.S. Treasury Note, 1.75%, 01/31/2014	5.99%
U.S. Treasury Note, 0.25%, 11/30/2013	5.11%
U.S. Treasury Note, 0.50%, 10/15/2014	4.51%
FNMA, 5.50%, 05/25/2040	2.80%
FNMA, 0.60%, 08/01/2037	2.56%
U.S. Treasury Note, 0.38%, 11/15/2014	2.19%
FHLMC Series 3674 Class HJ, 5.50%, 04/15/2040	1.83%
FNMA, 3.00%, 12/01/2099	1.81%

PORTFOLIO ALLOCATION²

(AS OF FEBRUARY 29, 2012)

1. The ten largest long-term holdings are calculated based on the value of the securities divided by total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

2. Portfolio allocation is subject to change and is calculated based on the total long-term investments of the Fund.

6 Wells Fargo Advantage Short Duration Government Bond Fund Performance Highlights (Unaudited)

AVERAGE ANNUAL TOTAL RETURN³ (%) (AS OF FEBRUARY 29, 2012)

			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 (MSDAX)		03/11/1996		(2.19	)		(0.62	)		3.70		3.26		0.84		2.46		4.33		3.57		0.88%		0.84%
Class B (MSDBX)**		05/31/2002		(2.44	)		(1.31	)		3.71		3.23		0.56		1.69		3.71		3.23		1.63%		1.59%
Class C (MSDCX)		05/31/2002		(0.54	)		0.69			3.53		2.76		0.46		1.69		3.53		2.76		1.63%		1.59%
Administrator Class (MNSGX)		12/18/1992												0.95		2.69		4.59		3.84		0.82%		0.61%
Institutional Class (WSGIX)		04/08/2005												1.04		2.88		4.75		3.96		0.55%		0.43%
Barclays 1-3 Year U.S. Government Bond Index6														0.10		1.50		3.59		3.31

* 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 and assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s Web site – wellsfargoadvantagefunds.com

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.

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 charge assumes the sales charge for the corresponding time period. Administrator and 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. 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.

3. Historical 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. Historical performance shown for the Institutional Class shares prior to their 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.

4. Reflects the expense ratios as stated in the most recent prospectuses.

5. The Adviser has committed through December 31, 2012 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver, excluding certain expenses, at 0.83% for Class A, 1.58% for Class B, 1.58% for Class C, 0.60% for Administrator Class and 0.42% for Institutional Class. Without this cap, the Fund’s returns would have been lower.

6. The Barclays 1-3 Year U.S. Government Bond Index is the 1-3 year component of the Barclays 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 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.

Fund Expenses (Unaudited) Wells Fargo Advantage Short Duration Government Bond Fund 7

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and contingent deferred sales charges (if any) on redemptions 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, 2011 to February 29, 2012.

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 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.

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) and contingent deferred sales charges. 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 Account Value 09-01-2011		Ending Account Value 02-29-2012		Expenses Paid During the Period1		Net Annual Expense Ratio
Class A
Actual	$	1,000.00	$	1,008.35	$	4.14		0.83	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.74	$	4.17		0.83	%
Class B
Actual	$	1,000.00	$	1,005.58	$	7.88		1.58	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.01	$	7.92		1.58	%
Class C
Actual	$	1,000.00	$	1,004.60	$	7.87		1.58	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.01	$	7.92		1.58	%
Administrator Class
Actual	$	1,000.00	$	1,009.50	$	3.00		0.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.88	$	3.02		0.60	%
Institutional Class
Actual	$	1,000.00	$	1,010.41	$	2.10		0.42	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.77	$	2.11		0.42	%

1. Expenses paid is equal to the annualized expense ratio of each class 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).

8 Wells Fargo Advantage Short Duration Government Bond Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Agency Securities: 48.67%
FHLMC ±		2.90	%		01/01/2042	$	5,007,852	$	5,230,138
FHLMC ±		3.58			08/01/2041		1,984,409		2,084,044
FHLMC ±		3.63			10/01/2041		9,642,108		10,150,617
FHLMC		4.50			05/15/2037		2,338,275		2,488,959
FHLMC		5.00			03/15/2039		5,714,630		6,182,795
FHLMC ±		5.17			05/01/2038		5,019,524		5,407,919
FHLMC ±		5.60			11/01/2039		6,620,341		7,151,554
FHLMC ±		5.62			04/01/2037		3,613,530		3,906,703
FHLMC ±		5.66			11/01/2037		8,041,245		8,709,100
FHLMC ±		5.66			01/01/2038		1,913,688		2,068,536
FHLMC ±		5.67			07/01/2038		3,666,463		4,010,449
FHLMC ±		5.73			07/01/2038		3,658,691		3,961,751
FHLMC ±		5.86			08/01/2036		1,712,686		1,858,062
FHLMC ±		5.87			05/01/2036		7,273,650		7,866,991
FHLMC		6.00			05/15/2039		10,405,563		11,526,032
FHLMC ±		6.03			04/01/2037		7,963,552		8,630,060
FHLMC		6.50			11/01/2037		2,128,273		2,410,697
FHLMC		6.50			12/01/2038		3,356,194		3,731,294
FHLMC		7.00			05/01/2035		3,451,186		4,017,709
FHLMC		7.00			03/25/2044		2,709,515		3,170,454
FHLMC Series 3035 Class PA		5.50			09/15/2035		4,124,183		4,627,321
FHLMC Series 3674 Class HJ		5.50			04/15/2040		24,702,690		27,228,148
FHLMC Series 3704 Class CT		7.00			12/15/2036		3,537,595		4,152,246
FHLMC Series T-11 Class A8		6.50			01/25/2028		2,648,999		3,028,012
FHLMC Series T-42 Class A5		7.50			02/25/2042		68,393		82,336
FHLMC Series T-60 Class 1A3		7.50			03/25/2044		86,354		98,419
FHLMC Structured Pass-Through Securities Series T-41 Class 3A ±		6.99			07/25/2032		168,912		194,390
FHLMC Structured Pass-Through Securities Series T-51 Class 2A ±		7.50			08/25/2042		2,529,766		2,989,773
FHLMC Structured Pass-Through Securities Series T-55 Class 1A2		7.00			03/25/2043		822,396		931,274
FHLMC Structured Pass-Through Securities Series T-57 Class 1A3		7.50			07/25/2043		575,847		664,297
FHLMC Structured Pass-Through Securities Series T-59 Class 1A3		7.50			10/25/2043		235,091		269,153
FNMA ±		2.95			12/01/2041		3,611,094		3,764,161
FNMA %%		3.00			12/01/2099		19,100,000		19,762,531
FNMA %%		3.00			12/01/2099		26,000,000		26,828,750
FNMA ±		3.09			10/01/2041		1,772,766		1,852,385
FNMA ±		3.20			10/01/2041		13,121,397		13,697,604
FNMA ±		3.30			11/01/2041		9,455,342		9,910,525
FNMA ±		3.34			12/01/2041		3,648,093		3,818,868
FNMA ±		3.35			07/01/2041		16,473,024		17,212,304
FNMA ±		3.41			10/01/2041		4,238,360		4,454,554
FNMA ±		3.51			10/01/2041		9,942,858		10,461,108
FNMA ±		3.56			07/01/2041		6,536,232		6,854,932
FNMA ±		3.60			09/01/2041		13,152,055		13,828,579
FNMA ±		3.65			07/01/2041		10,547,792		11,086,668
FNMA ±		3.67			07/01/2041		3,645,291		3,833,613
FNMA ±		5.11			06/01/2039		5,377,830		5,780,958
FNMA ±		5.14			04/01/2038		400,957		431,439
FNMA		5.50			05/25/2040		37,693,744		41,579,434
FNMA ±		5.65			07/01/2036		3,984,998		4,302,850
FNMA ±		5.84			06/01/2037		1,577,536		1,707,917

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage Short Duration Government Bond Fund 9

Security Name	Interest Rate			Maturity Date		Principal		Value
Agency Securities (continued)
FNMA ±		5.86	%		11/01/2037	$	2,174,821	$	2,355,081
FNMA ±		5.95			12/01/2037		2,091,891		2,266,562
FNMA		6.00			03/25/2035		1,821,000		2,073,226
FNMA		6.00			04/01/2035		7,259,127		8,100,893
FNMA		6.00			08/01/2037		34,076,781		38,028,316
FNMA		6.00			10/01/2038		18,630,024		20,790,357
FNMA		6.00			03/01/2040		16,578,654		18,262,793
FNMA		6.05			07/01/2012		5,073,362		5,182,572
FNMA ±		6.29			08/01/2037		3,829,385		4,180,674
FNMA		6.50			08/01/2036		3,223,484		3,663,931
FNMA		6.50			08/01/2037		19,970,990		22,801,700
FNMA		6.50			06/01/2038		17,133,936		19,476,849
FNMA		6.50			08/01/2039		14,986,545		17,035,822
FNMA		6.50			02/01/2041		4,725,971		5,372,205
FNMA ±		6.55			09/01/2036		3,832,122		4,199,013
FNMA		7.00			04/01/2035		3,610,727		4,216,560
FNMA Grantor Trust Series 2000-T06 Class A1		7.50			06/25/2030		864,010		1,004,508
FNMA Grantor Trust Series 2001-T01 Class A1		7.50			10/25/2040		4,301,326		5,028,577
FNMA Grantor Trust Series 2001-T03 Class A1		7.50			11/25/2040		937,001		1,098,177
FNMA Grantor Trust Series 2001-T08 Class A1		7.50			07/25/2041		1,127,393		1,245,184
FNMA Grantor Trust Series 2001-T16 Class A2		7.00			07/25/2042		1,832,645		2,141,792
FNMA Grantor Trust Series 2002-T11 Class B		5.34			04/25/2012		13,931,000		13,974,339
FNMA Grantor Trust Series 2002-T12 Class A3		7.50			05/25/2042		4,765,158		5,635,706
FNMA Grantor Trust Series 2002-T19 Class A3		7.50			07/25/2042		1,619,686		1,934,971
FNMA Series 1999-T02 Class A1 ±		7.50			01/19/2039		610,178		690,356
FNMA Series 2001-50 Class BA		7.00			10/25/2041		98,053		113,200
FNMA Series 2001-T04 Class A1		7.50			07/25/2041		126,781		148,048
FNMA Series 2001-W03 Class A ±		7.00			09/25/2041		1,054,625		1,212,615
FNMA Series 2002-14 Class A1		7.00			01/25/2042		894,872		1,034,319
FNMA Series 2002-14 Class A2		7.50			01/25/2042		1,871,829		2,186,101
FNMA Series 2002-26 Class A2		7.50			01/25/2048		2,179,295		2,536,907
FNMA Series 2002-26 Class A1		7.00			01/25/2048		1,209,461		1,412,615
FNMA Series 2002-33 Class A2		7.50			06/25/2032		289,034		332,189
FNMA Series 2002-80 Class A1		6.50			11/25/2042		1,914,958		2,147,146
FNMA Series 2002-90 Class A1		6.50			06/25/2042		33,919		39,513
FNMA Series 2002-W01 Class 2A ±		7.09			02/25/2042		769,741		896,687
FNMA Series 2002-W06 Class 2A ±		7.12			06/25/2042		481,499		556,527
FNMA Series 2002-W6 Class 2A1 ±		6.65			06/25/2042		16,259		18,438
FNMA Series 2003-W01 Class 2A ±		7.08			12/25/2042		351,330		410,734
FNMA Series 2003-W04 Class 4A ±		7.28			10/25/2042		1,173,878		1,368,985
FNMA Series 2003-W2 Class 1A1		6.50			07/25/2042		24,044		27,765
FNMA Series 2004-W02 Class 5A		7.50			03/25/2044		233,041		271,001
FNMA Series 2004-W09 Class 1A3		6.05			02/25/2044		6,589,169		7,282,061
FNMA Series 2004-W09 Class 2A3		7.50			02/25/2044		1,165,712		1,387,987
FNMA Series 2005-W03 Class 1A		7.50			03/25/2045		391,541		462,449
FNMA Series 2006-114 Class PD		6.00			12/25/2036		11,123,694		12,747,318
FNMA Series 2008-46 Class LA		5.50			06/25/2038		1,569,610		1,751,571
FNMA Series 2009-019 Class TA		4.50			12/25/2037		3,032,751		3,176,466
FNMA Series 2009-047 Class MT		7.00			07/25/2039		2,638,690		3,018,635
FNMA Series 2009-047 Class PA		4.50			07/25/2039		6,599,215		6,966,936

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

10 Wells Fargo Advantage Short Duration Government Bond Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Agency Securities (continued)
FNMA Series 2009-111 Class CL		4.50	%		03/25/2038	$	3,193,947	$	3,394,770
FNMA Series 2009-14 Class A		7.00			06/25/2035		4,996,332		5,768,960
FNMA Series 2010-111 Class WA ±		6.03			10/25/2040		1,579,990		1,793,671
FNMA Series 2010-64 Class BA		5.00			05/25/2040		12,287,416		13,202,419
FNMA Series 2011-M2 Class A1		2.02			07/25/2021		5,035,895		5,120,060
FNMA Series 2012-3 Class CD		7.00			02/25/2042		19,811,775		22,956,445
FNMA Whole Loan Series 2002-W08 Class A3		7.50			06/25/2042		165,708		188,980
FNMA Whole Loan Series 2004-W08 Class 3A		7.50			06/25/2044		1,973,697		2,320,369
FNMA Whole Loan Series 2004-W11 Class 1A2		6.50			05/25/2044		10,061,288		11,359,887
FNMA Whole Loan Series 2004-W14 Class 2A		7.50			07/25/2044		200,667		231,786
FNMA Whole Loan Series 2005-W01 Class 1A4		7.50			10/25/2044		667,354		782,548
FNMA Whole Loan Series 2005-W04 Class 1A3		7.00			08/25/2035		1,526,141		1,763,615
GNMA ±		3.00			10/20/2041		9,897,974		10,359,378
GNMA ±		3.00			01/20/2042		1,813,180		1,894,303
GNMA ±		3.50			09/20/2041		3,416,582		3,630,408
GNMA ±		3.50			01/20/2042		2,674,539		2,838,958
GNMA		6.00			09/15/2035		18,401,521		20,816,054
GNMA Series 2009-42 Class CT		6.00			08/16/2035		2,239,339		2,544,939
Total Agency Securities (Cost $719,565,081)									723,232,340
Asset-Backed Securities: 7.50%
AESOP Funding II LLC Series 2011-2A Class A 144A		2.37			11/20/2014		7,510,000		7,631,209
Ally Master Owner Trust Series 2011-4 Class A2		1.54			09/15/2016		5,613,000		5,655,025
Ally Master Owner Trust Series 2012-1 Class A1 ±		1.05			02/15/2017		9,401,000		9,401,124
Capital Auto Receivables Asset Carat Series 2008-1 Class A4A		4.46			07/15/2014		849,323		855,914
Citibank Omni Master Trust Series 2009-A14 Class A14 ±144A		3.00			08/15/2018		9,169,000		9,678,778
Greenwich Capital Commercial Funding Corporation Series 2005-GGS Class A4 ±		5.24			04/10/2037		8,210,000		8,875,930
MMCA Automobile Trust Series 2009-A Class A4 144A		6.25			11/16/2015		4,462,784		4,606,463
Nelnet Student Loan Trust Series 2006-1 Class A4 ±		0.58			11/23/2022		11,489,000		11,337,989
Nelnet Student Loan Trust Series 2006-2 Class A4 ±		0.64			10/26/2026		13,952,000		13,771,931
SLM Student Loan Trust Series 2001-1 Class A3 ±		0.77			04/25/2023		5,428,000		5,357,065
SLM Student Loan Trust Series 2002-6 Class A4 ±		0.53			03/15/2019		3,019,780		2,991,937
SLM Student Loan Trust Series 2005-1 Class A2 ±		0.64			04/27/2020		3,102,352		3,070,206
SLM Student Loan Trust Series 2006-9 Class A4 ±		0.63			10/25/2022		15,046,000		14,723,045
SLM Student Loan Trust Series 2008-4 Class A3 ±		1.81			10/25/2017		3,358,000		3,421,218
SLM Student Loan Trust Series 2011-B Class A4 ±144A		1.10			12/16/2024		4,819,978		4,773,317
SLM Student Loan Trust Series 2011-C Class A1 ±144A		1.65			12/15/2023		5,283,249		5,284,222
Total Asset-Backed Securities (Cost $111,153,777)									111,435,373
Non-Agency Mortgage Backed Securities: 7.42%
Bank of America Commercial Mortgage Incorporated Series 2004-6 Class A3		4.51			12/10/2042		1,070,285		1,093,901
Bank of America Commercial Mortgage Incorporated Series 2004-6 Class A5		4.81			12/10/2042		4,608,000		4,951,803
Bank of America Commercial Mortgage Incorporated Series 2005-6 Class A4 ±		5.19			09/10/2047		3,580,000		4,011,970
Bear Stearns Commercial Mortgage Securities Incorporated Series 2004-T16 Class A6 ±		4.75			02/13/2046		9,051,000		9,770,373
Citigroup Commercial Mortgage Trust Series 2005-EMG Class A4 144A		4.52			09/20/2051		2,294,225		2,350,364

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage Short Duration Government Bond Fund 11

Security Name	Interest Rate			Maturity Date		Principal		Value
Non-Agency Mortgage Backed Securities (continued)
Commercial Mortgage Pass-Through Certificates Series 2005-LP5 Class A4 ±		4.98	%		05/10/2043	$	5,726,000	$	6,290,469
Credit Suisse First Boston Mortgage Securities Corporation Series 2005-C1 Class A4 ±		5.01			02/15/2038		3,595,000		3,921,041
Developers Diversified Realty Corporation Series 2009-DDR1 Class A 144A		3.81			10/14/2022		20,416,991		21,423,119
ESA Trust Series 2010-ESHA Class A 144A		2.95			11/05/2027		17,904,758		18,095,516
GMAC Commercial Mortgage Securities Incorporated Series 2004-C2 Class A4 ±		5.30			08/10/2038		3,671,000		3,966,225
GS Mortgage Securities Corporation II Series 2005-GG4 Class A4		4.75			07/10/2039		5,746,000		6,248,620
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2010-C1 Class A1 144A		3.85			06/15/2043		3,642,145		3,834,403
Lehman Brothers UBS Commercial Mortgage Trust Series 2004-C6 Class A6 ±		5.02			08/15/2029		4,578,000		4,923,007
Lehman Brothers UBS Commercial Mortgage Trust Series 2005-C2 Class A4		5.00			04/15/2030		1,032,135		1,070,259
Lehman Brothers UBS Commercial Mortgage Trust Series 2005-C7 Class A3 ±		5.44			11/15/2030		3,106,000		3,241,502
Merrill Lynch Mortgage Trust Series 2005-CIP1 Class A3A ±		4.95			07/12/2038		1,968,000		2,084,391
Merrill Lynch Mortgage Trust Series 2005-CKI1 Class A3 ±		5.22			11/12/2037		2,477,190		2,500,295
Morgan Stanley Capital I Series 2005-HQ6 Class A4		4.99			08/13/2042		5,120,000		5,634,366
Morgan Stanley Capital I Series 2005-T17 Class A5		4.78			12/13/2041		4,537,000		4,892,120
Total Non-Agency Mortgage Backed Securities (Cost $109,242,720)									110,303,744
U.S. Treasury Securities: 35.21%
U.S. Treasury Note «		0.13			12/31/2013		126,466,000		126,075,726
U.S. Treasury Note		0.25			11/30/2013		75,999,000		75,951,501
U.S. Treasury Note		0.25			01/31/2014		14,391,000		14,378,077
U.S. Treasury Note		0.25			02/28/2014		1,430,000		1,428,547
U.S. Treasury Note		0.25			12/15/2014		2,520,000		2,509,172
U.S. Treasury Note		0.25			02/15/2015		114,906,000		114,340,433
U.S. Treasury Note ##		0.38			11/15/2014		32,601,000		32,578,082
U.S. Treasury Note «		0.50			10/15/2014		66,767,000		66,954,749
U.S. Treasury Note		1.75			01/31/2014		86,586,000		88,970,492
Total U.S. Treasury Securities (Cost $523,731,837)									523,186,779
Yankee Corporate Bonds and Notes: 1.18%
Financials: 1.18%
Commercial Banks: 1.18%
Nordea Eiendomskreditt AS ±144A		1.00			04/07/2015		18,010,000		17,478,291
Total Yankee Corporate Bonds and Notes (Cost $18,010,000)									17,478,291
Other: 0.05%
Gryphon Funding Limited, Pass-Through Entity (a)(i)(v)							564,730		152,477
VFNC Corporation, Pass-Through Entity, 0.24% ±144A(a)(i)(v)							1,503,151		646,355
Total Other (Cost $325,327)									798,832

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

12 Wells Fargo Advantage Short Duration Government Bond Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Yield			Shares		Value
Short-Term Investments: 2.02%
Investment Companies: 2.02%
Wells Fargo Advantage Government Money Market Fund, Institutional Class (l)(u)##		0.01	%		17,007,807	$	17,007,807
Wells Fargo Securities Lending Cash Investments, LLC (l)(u)(v)(r)		0.15			13,023,473		13,023,473
Total Short-Term Investments (Cost $30,031,280)							30,031,280

Total Investments in Securities
(Cost $1,512,060,022)*	102.05	%		1,516,466,639
Other Assets and Liabilities, Net	(2.05	)		(30,426,127	)
Total Net Assets	100.00	%	$	1,486,040,512

± Variable rate investment.

%% Security issued on a when-issued (TBA) basis.

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

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

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

(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.

(l) Investment in an affiliate.

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

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

(r) The investment company is exempt from registration under Section 3(c)(7) of the 1940 Act.

* Cost for federal income tax purposes is $1,512,855,910 and net unrealized appreciation (depreciation) consists of:

Gross unrealized appreciation	$	7,193,819
Gross unrealized depreciation		(3,583,090	)
Net unrealized appreciation	$	3,610,729

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

Statement of Assets and Liabilities—February 29, 2012 (Unaudited) Wells Fargo Advantage Short Duration Government Bond Fund 13

Assets
Investments
In unaffiliated securities (including securities on loan), at value (see cost below)	$	1,486,435,359
In affiliated securities, at value (see cost below)		30,031,280
Total investments, at value (see cost below)		1,516,466,639
Receivable for investments sold		50,636,649
Principal paydown receivable		1,635,040
Receivable for Fund shares sold		3,757,323
Receivable for interest		4,121,856
Receivable for securities lending income		1,194
Prepaid expenses and other assets		70,657
Total assets		1,576,689,358
Liabilities
Dividends payable		325,983
Payable for investments purchased		74,900,692
Payable for Fund shares redeemed		1,401,827
Payable upon receipt of securities loaned		13,348,800
Advisory fee payable		307,567
Distribution fees payable		45,697
Due to other related parties		172,491
Accrued expenses and other liabilities		145,789
Total liabilities		90,648,846
Total net assets	$	1,486,040,512
NET ASSETS CONSIST OF
Paid-in capital	$	1,482,830,477
Overdistributed net investment income		(4,400,366	)
Accumulated net realized losses on investments		3,203,784
Net unrealized gains on investments		4,406,617
Total net assets	$	1,486,040,512
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE1
Net assets – Class A	$	186,235,728
Shares outstanding – Class A		17,998,055
Net asset value per share – Class A		$10.35
Maximum offering price per share – Class A2		$10.67
Net assets – Class B	$	1,468,098
Shares outstanding – Class B		141,770
Net asset value per share – Class B		$10.36
Net assets – Class C	$	75,979,589
Shares outstanding – Class C		7,330,768
Net asset value per share – Class C		$10.36
Net assets – Administrator Class	$	268,558,338
Shares outstanding – Administrator Class		25,912,725
Net asset value per share – Administrator Class		$10.36
Net assets – Institutional Class	$	953,798,759
Shares outstanding – Institutional Class		92,042,070
Net asset value per share – Institutional Class		$10.36
Investments in unaffiliated securities, at cost	$	1,482,028,742
Investments in affiliated securities, at cost	$	30,031,280
Total investments, at cost	$	1,512,060,022
Securities on loan, at value	$	13,057,273

1. The Fund has an unlimited number of authorized shares.

2. 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.

14 Wells Fargo Advantage Short Duration Government Bond Fund Statement of Operations—Six Months Ended February 29, 2012 (Unaudited)

Investment income
Interest	$	15,353,824
Securities lending income, net		12,271
Income from affiliated securities		5,720
Total investment income		15,371,815
Expenses
Advisory fee		2,814,324
Administration fees
Fund level		375,407
Class A		137,899
Class B		1,179
Class C		58,284
Administrator Class		122,625
Institutional Class		403,870
Shareholder servicing fees
Class A		215,468
Class B		1,842
Class C		91,069
Administrator Class		301,793
Distribution fees
Class B		5,527
Class C		273,206
Custody and accounting fees		45,010
Professional fees		14,501
Registration fees		44,682
Shareholder report expenses		69,125
Trustees’ fees and expenses		7,124
Other fees and expenses		23,412
Total expenses		5,006,347
Less: Fee waivers and/or expense reimbursements		(847,733	)
Net expenses		4,158,614
Net investment income		11,213,201
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments		6,170,104
Net change in unrealized gains (losses) on investments		(2,687,613	)
Net realized and unrealized gains (losses) on investments		3,482,491
Net increase in net assets resulting from operations	$	14,695,692

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

Statements of Changes in Net Assets Wells Fargo Advantage Short Duration Government Bond Fund 15

	Six Months Ended February 29, 2012 (Unaudited)						Year Ended August 31, 2011
Operations
Net investment income				$	11,213,201					$	23,987,550
Net realized gains on investments					6,170,104						10,883,104
Net change in unrealized gains (losses) on investments					(2,687,613	)					(3,083,100	)
Net increase in net assets resulting from operations					14,695,692						31,787,554
Distributions to shareholders from
Net investment income
Class A					(1,622,787	)					(4,061,268	)
Class B					(8,228	)					(23,296	)
Class C					(408,076	)					(1,182,810	)
Administrator Class					(2,581,088	)					(7,563,181	)
Institutional Class					(11,528,816	)					(21,281,597	)
Net realized gains
Class A					0						(1,462,161	)
Class B					0						(12,266	)
Class C					0						(645,874	)
Administrator Class					0						(2,149,194	)
Institutional Class					0						(6,350,799	)
Total distributions to shareholders					(16,148,995	)					(44,732,446	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		4,539,021			46,928,955			6,878,676			71,400,284
Class B		17,994			186,200			72,561			753,857
Class C		1,539,255			15,942,679			2,257,721			23,477,444
Administrator Class		6,791,031			70,291,275			9,630,990			100,053,410
Institutional Class		39,217,328			406,369,419			55,684,486			579,243,062
					539,718,528						774,928,057
Reinvestment of distributions
Class A		121,592			1,257,529			418,538			4,333,583
Class B		698			7,222			3,211			33,264
Class C		30,855			319,576			141,938			1,471,055
Administrator Class		192,862			1,997,292			749,866			7,786,418
Institutional Class		1,045,466			10,824,289			2,512,689			26,029,511
					14,405,908						39,653,831
Payment for shares redeemed
Class A		(2,374,218	)		(24,546,277	)		(8,968,788	)		(93,071,586	)
Class B		(25,797	)		(266,920	)		(74,707	)		(776,180	)
Class C		(898,483	)		(9,302,763	)		(2,619,967	)		(27,140,094	)
Administrator Class		(4,918,882	)		(50,917,795	)		(28,074,212	)		(292,944,511	)
Institutional Class		(31,353,473	)		(324,466,715	)		(29,667,924	)		(308,094,416	)
					(409,500,470	)					(722,026,787	)
Net increase in net assets resulting from capital share transactions					144,623,966						92,555,101
Total increase in net assets					143,170,663						79,610,209
Net assets
Beginning of period					1,342,869,849						1,263,259,640
End of period				$	1,486,040,512					$	1,342,869,849
Undistributed (overdistributed) net investment income				$	(4,400,366	)				$	535,428

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

16 Wells Fargo Advantage Short Duration Government Bond Fund Financial Highlights

(For a share outstanding throughout each period)

	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,						Year Ended May 31,
Class A				2011			20101			2010			2009			2008			2007
Net asset value, beginning of period	$	10.36		$	10.47		$	10.41		$	10.30		$	10.01		$	9.85		$	9.81
Net investment income		0.06			0.16			0.05			0.19	2		0.37			0.40			0.39
Net realized and unrealized gains (losses) on investments		0.03			0.07			0.08			0.20			0.32			0.18			0.06
Total from investment operations		0.09			0.23			0.13			0.39			0.69			0.58			0.45
Distributions to shareholders from
Net investment income		(0.10	)		(0.25	)		(0.07	)		(0.28	)		(0.40	)		(0.42	)		(0.41	)
Net realized gains		0.00			(0.09	)		0.00			0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.10	)		(0.34	)		(0.07	)		(0.28	)		(0.40	)		(0.42	)		(0.41	)
Net asset value, end of period	$	10.35		$	10.36		$	10.47		$	10.41		$	10.30		$	10.01		$	9.85
Total return3		0.84	%		2.17	%		1.23	%		3.85	%		7.05	%		5.95	%		4.69	%
Ratios to average net assets (annualized)
Gross expenses		0.86	%		0.87	%		0.86	%		0.88	%		0.94	%		1.11	%		1.10	%
Net expenses		0.83	%		0.83	%		0.84	%		0.85	%		0.85	%		0.85	%		0.85	%
Net investment income		1.25	%		1.60	%		1.85	%		1.86	%		3.61	%		4.02	%		4.04	%
Supplemental data
Portfolio turnover rate		214	%		485	%		135	%		501	%		277	%		210	%		493	%
Net assets, end of period (000’s omitted)		$186,236			$162,719			$181,951			$162,737			$105,430			$66,495			$77,602

1. 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.

2. Calculated based upon average shares outstanding.

3. Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

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

Financial Highlights Wells Fargo Advantage Short Duration Government Bond Fund 17

(For a share outstanding throughout each period)

	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,						Year Ended May 31,
Class B				2011			20101			2010			2009			2008			2007
Net asset value, beginning of period	$	10.36		$	10.48		$	10.42		$	10.31		$	10.01		$	9.86		$	9.81
Net investment income		0.03			0.09			0.03			0.14	2		0.30			0.33			0.33
Net realized and unrealized gains (losses) on investments		0.03			0.05			0.08			0.18			0.32			0.16			0.06
Total from investment operations		0.06			0.14			0.11			0.32			0.62			0.49			0.39
Distributions to shareholders from
Net investment income		(0.06	)		(0.17	)		(0.05	)		(0.21	)		(0.32	)		(0.34	)		(0.34	)
Net realized gains		0.00			(0.09	)		0.00			0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.06	)		(0.26	)		(0.05	)		(0.21	)		(0.32	)		(0.34	)		(0.34	)
Net asset value, end of period	$	10.36		$	10.36		$	10.48		$	10.42		$	10.31		$	10.01		$	9.86
Total return3		0.56	%		1.32	%		1.04	%		3.08	%		6.36	%		5.06	%		4.01	%
Ratios to average net assets (annualized)
Gross expenses		1.61	%		1.62	%		1.62	%		1.66	%		1.69	%		1.86	%		1.85	%
Net expenses		1.58	%		1.58	%		1.59	%		1.60	%		1.60	%		1.60	%		1.60	%
Net investment income		0.49	%		0.85	%		1.07	%		1.30	%		2.90	%		3.29	%		3.29	%
Supplemental data
Portfolio turnover rate		214	%		485	%		135	%		501	%		277	%		210	%		493	%
Net assets, end of period (000’s omitted)		$1,468			$1,543			$1,548			$1,760			$4,779			$7,260			$12,230

1. 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.

2. Calculated based upon average shares outstanding.

3. Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

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

18 Wells Fargo Advantage Short Duration Government Bond Fund Financial Highlights

(For a share outstanding throughout each period)

	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,						Year Ended May 31,
Class C				2011			20101			2010			2009			2008			2007
Net asset value, beginning of period	$	10.37		$	10.48		$	10.43		$	10.32		$	10.02		$	9.87		$	9.82
Net investment income		0.03			0.08			0.03			0.11	2		0.34			0.31			0.30
Net realized and unrealized gains (losses) on investments		0.02			0.07			0.07			0.20			0.28			0.18			0.09
Total from investment operations		0.05			0.15			0.10			0.31			0.62			0.49			0.39
Distributions to shareholders from
Net investment income		(0.06	)		(0.17	)		(0.05	)		(0.20	)		(0.32	)		(0.34	)		(0.34	)
Net realized gains		0.00			(0.09	)		0.00			0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.06	)		(0.26	)		(0.05	)		(0.20	)		(0.32	)		(0.34	)		(0.34	)
Net asset value, end of period	$	10.36		$	10.37		$	10.48		$	10.43		$	10.32		$	10.02		$	9.87
Total return3		0.46	%		1.41	%		0.94	%		3.06	%		6.34	%		5.06	%		4.01	%
Ratios to average net assets (annualized)
Gross expenses		1.61	%		1.62	%		1.62	%		1.65	%		1.69	%		1.86	%		1.85	%
Net expenses		1.58	%		1.58	%		1.59	%		1.60	%		1.60	%		1.60	%		1.60	%
Net investment income		0.49	%		0.85	%		1.10	%		1.01	%		2.82	%		3.28	%		3.29	%
Supplemental data
Portfolio turnover rate		214	%		485	%		135	%		501	%		277	%		210	%		493	%
Net assets, end of period (000’s omitted)		$75,980			$69,077			$72,124			$65,664			$18,009			$7,087			$8,440

1. 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.

2. Calculated based upon average shares outstanding.

3. Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

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

Financial Highlights Wells Fargo Advantage Short Duration Government Bond Fund 19

(For a share outstanding throughout each period)

	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,						Year Ended May 31,
Administrator Class				2011			20101			2010			2009			2008			2007
Net asset value, beginning of period	$	10.37		$	10.48		$	10.42		$	10.32		$	10.02		$	9.86		$	9.82
Net investment income		0.08			0.17			0.05			0.22	2		0.39			0.42			0.42
Net realized and unrealized gains (losses) on investments		0.02			0.08			0.08			0.19			0.33			0.18			0.06
Total from investment operations		0.10			0.25			0.13			0.41			0.72			0.60			0.48
Distributions to shareholders from
Net investment income		(0.11	)		(0.27	)		(0.07	)		(0.31	)		(0.42	)		(0.44	)		(0.44	)
Net realized gains		0.00			(0.09	)		0.00			0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.11	)		(0.36	)		(0.07	)		(0.31	)		(0.42	)		(0.44	)		(0.44	)
Net asset value, end of period	$	10.36		$	10.37		$	10.48		$	10.42		$	10.32		$	10.02		$	9.86
Total return3		0.95	%		2.41	%		1.29	%		4.01	%		7.42	%		6.21	%		4.95	%
Ratios to average net assets (annualized)
Gross expenses		0.80	%		0.80	%		0.79	%		0.80	%		0.84	%		0.93	%		0.92	%
Net expenses		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Net investment income		1.46	%		1.84	%		2.06	%		2.13	%		3.89	%		4.26	%		4.28	%
Supplemental data
Portfolio turnover rate		214	%		485	%		135	%		501	%		277	%		210	%		493	%
Net assets, end of period (000’s omitted)		$268,558			$247,357			$435,363			$505,432			$356,409			$246,592			$310,530

1. 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.

2. Calculated based upon average shares outstanding.

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

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

20 Wells Fargo Advantage Short Duration Government Bond Fund Financial Highlights

(For a share outstanding throughout each period)

	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,						Year Ended May 31,
Institutional Class				2011			20101			2010			2009			2008			2007
Net asset value, beginning of period	$	10.37		$	10.48		$	10.43		$	10.32		$	10.02		$	9.86		$	9.82
Net investment income		0.08			0.21			0.06			0.31	2		0.41			0.44			0.44
Net realized and unrealized gains (losses) on investments		0.03			0.06			0.07			0.13			0.33			0.18			0.06
Total from investment operations		0.11			0.27			0.13			0.44			0.74			0.62			0.50
Distributions to shareholders from
Net investment income		(0.12	)		(0.29	)		(0.08	)		(0.33	)		(0.44	)		(0.46	)		(0.46	)
Net realized gains		0.00			(0.09	)		0.00			0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.12	)		(0.38	)		(0.08	)		(0.33	)		(0.44	)		(0.46	)		(0.46	)
Net asset value, end of period	$	10.36		$	10.37		$	10.48		$	10.43		$	10.32		$	10.02		$	9.86
Total return3		1.04	%		2.59	%		1.24	%		4.30	%		7.61	%		6.40	%		5.13	%
Ratios to average net assets (annualized)
Gross expenses		0.53	%		0.54	%		0.53	%		0.55	%		0.59	%		0.67	%		0.65	%
Net expenses		0.42	%		0.42	%		0.42	%		0.42	%		0.42	%		0.42	%		0.42	%
Net investment income		1.65	%		1.97	%		2.27	%		2.98	%		4.02	%		4.42	%		4.48	%
Supplemental data
Portfolio turnover rate		214	%		485	%		135	%		501	%		277	%		210	%		493	%
Net assets, end of period (000’s omitted)		$953,799			$862,174			$572,274			$489,762			$248,124			$87,784			$55,973

1. 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.

2. Calculated based upon average shares outstanding.

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

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

Notes to Financial Statements (Unaudited) Wells Fargo Advantage Short Duration Government Bond Fund 21

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 Wells Fargo Advantage Short Duration Government Bond Fund (the “Fund”) which 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 the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Securities valuation

Fixed income securities with original maturities exceeding 60 days are valued based on available evaluated prices received from an independent pricing service approved by the 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 Fund’s 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.

Investments in open-end mutual funds and non-registered investment companies are generally valued at net asset value.

Investments which are not valued using any of the methods discussed above, are valued at their fair value, as determined by procedures established in good faith and approved by the Board of Trustees.

Security loans

The Fund may lend its securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. The Fund continues to receive interest or dividends on the securities loaned. The 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 a securities lending transaction, the net asset value of the 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 the instrument in which collateral is invested. The amount of securities lending activity undertaken by the Fund fluctuates from time to time. In the event of default or bankruptcy by the borrower, the Fund may be prevented from recovering the loaned securities or gaining access to the collateral or may experience delays or costs in doing so. In 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 Fund lends its securities through an unaffiliated securities lending agent. Cash collateral received in connection with its 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 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 Statement of Operations.

22 Wells Fargo Advantage Short Duration Government Bond Fund Notes to Financial Statements (Unaudited)

For Wells Fargo Advantage Funds that participated in securities lending activity prior to February 13, 2009, certain structured investment vehicles purchased in a joint account by the former securities lending agent defaulted or were impaired. Certain of the Wells Fargo Advantage Funds still hold ownership interest in these structured investment vehicles, which have since been restructured as pass-through securities. If the Fund holds an ownership interest in such pass-through securities, information regarding this ownership interest can be found in the Portfolio of Investments under the category “Other”.

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.

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.

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 income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.

The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities.

Under the recently enacted Regulated Investment Company Modernization Act of 2010, the Fund is permitted to carry forward capital losses incurred in taxable years which began after December 22, 2010 for an unlimited period. However, any losses incurred are 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.

As of August 31, 2011, the Fund had $1,918,624 of current year deferred post-October capital losses, which would be treated as realized for tax purposes on the first day of the succeeding year.

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.

Notes to Financial Statements (Unaudited) Wells Fargo Advantage Short Duration Government Bond Fund 23

3. FAIR VALUATION MEASUREMENTS

Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to significant unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:

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

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

n Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

As of February 29, 2012, the inputs used in valuing the Fund’s assets, which are carried at fair value, were as follows:

Investments in Securities	Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Agency securities	$	0	$	723,232,340	$	0	$	723,232,340
Asset-backed securities		0		111,435,373		0		111,435,373
Non-agency mortgage backed securities		0		110,303,744		0		110,303,744
U.S. Treasury securities		523,186,779		0		0		523,186,779
Yankee corporate bonds and notes		0		17,478,291		0		17,478,291
Other		0		0		798,832		798,832
Short-term investments
Investment companies		17,007,807		13,023,473		0		30,031,280
	$	540,194,586	$	975,473,221	$	798,832	$	1,516,466,639

Further details on the major security types listed above can be found in the Portfolio of Investments.

Transfers in and transfers out are recognized at the end of the reporting period. For the six months ended February 29, 2012, the Fund 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:

	Other
Balance as of August 31, 2011	$	1,091,085
Accrued discounts (premiums)		0
Realized gains (losses)		0
Change in unrealized gains (losses)		(166,862	)
Purchases		0
Sales		(125,391	)
Transfers into Level 3		0
Transfers out of Level 3		0
Balance as of February 29, 2012	$	798,832
Change in unrealized gains (losses) relating to securities still held at February 29, 2012	$	(228,314	)

24 Wells Fargo Advantage Short Duration Government Bond Fund Notes to Financial Statements (Unaudited)

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Advisory fee

The Trust has entered into an advisory contract with Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”). The 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 Fund.

Pursuant to the contract, Funds Management is entitled to receive an annual advisory fee starting at 0.40% and declining to 0.30% as the average daily net assets of the Fund increase. For the six months ended February 29, 2012, the advisory fee was equivalent to an annual rate of 0.37% of the Fund’s average daily net assets.

Funds Management has retained the services of certain sub-advisers to provide daily portfolio management to the Fund. The fees related to sub-advisory services are borne directly by Funds Management and do not increase the overall fees paid by the Fund. Wells Capital Management, an affiliate of Funds Management, is the sub-adviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.15% and declining to 0.05% as the average daily net assets of the Fund increase.

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 the Fund an annual fund level administration fee starting at 0.05% and declining to 0.03% as the average daily net assets of the Fund increase and a class level administration fee which is calculated based on the average daily net assets of each class as follows:

	Class Level Administration Fee
Class A, Class B, Class C		0.16	%
Administrator Class		0.10
Institutional Class		0.08

Funds Management has contractually waived and/or reimbursed 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. Funds Management has committed through December 31, 2012 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.83% for Class A, 1.58% for Class B, 1.58% for Class C, 0.60% for Administrator Class and 0.42% for Institutional Class.

Distribution fees

The Trust has adopted a Distribution Plan for Class B and Class C shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. Distribution fees are charged to Class B and Class C shares and paid to Wells Fargo Funds Distributor, LLC, the principal underwriter, at an annual rate of 0.75% of the average daily net assets of Class B and Class C shares.

For the six months ended February 29, 2012, Wells Fargo Funds Distributor, LLC received $8,751 from the sale of Class A shares and $26 and $5,973 in contingent deferred sales charges from redemptions of Class B and Class C shares, respectively.

Shareholder servicing fees

The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class B, Class C and Administrator Class of the 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.

Notes to Financial Statements (Unaudited) Wells Fargo Advantage Short Duration Government Bond Fund 25

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding short-term securities (securities with maturities of one year or less at purchase date), for the six months ended February 29, 2012 were as follows:

Purchases at Cost		Sales Proceeds
U.S. Government	Non-U.S. Government	U.S. Government	Non-U.S. Government
$3,352,101,752	$123,172,882	$3,187,334,405	$	97,556,504

6. BANK BORROWINGS

The Trust (excluding the money market funds) and Wells Fargo Variable Trust are parties to a $150,000,000 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, an annual commitment fee equal to 0.10% of the unused balance is allocated to each participating fund. Prior to September 6, 2011, the revolving credit agreement was for $125,000,000 and the annual commitment fee paid by the Fund was 0.125% of the unused balance. For the six months ended February 29, 2012, the Fund paid $1,085 in commitment fees.

For the six months ended February 29, 2012, there were no borrowings by the Fund under the agreement.

7. 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 Fund and, therefore, cannot be estimated.

8. NEW ACCOUNTING PRONOUNCEMENTS

In May 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-04 “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs”. ASU No. 2011-04 amends FASB ASC Topic 820, Fair Value Measurements and Disclosures, to establish common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with GAAP. The ASU is effective prospectively for interim and annual periods beginning after December 15, 2011. Management expects that adoption of the ASU will result in additional disclosures in the financial statements, as applicable.

In April 2011, FASB issued ASU No. 2011-03 “Reconsideration of Effective Control for Repurchase Agreements”. ASU No. 2011-03 amends FASB ASC Topic 860, Transfers and Servicing, specifically the criteria required to determine whether a repurchase agreement (repo) and similar agreements should be accounted for as sales of financial assets or secured borrowings with commitments. ASU No. 2011-03 changes the assessment of effective control by focusing on the transferor’s contractual rights and obligations and removing the criterion to assess its ability to exercise those rights or honor those obligations. This could result in changes to the way entities account for certain transactions including repurchase agreements, mortgage dollar rolls and reverse repurchase agreements. The ASU will become effective on a prospective basis for new transfers and modifications to existing transactions as of the beginning of the first interim or annual period beginning on or after December 15, 2011. Management has evaluated the impact of adopting the ASU and expects no significant changes.

26 Wells Fargo Advantage Short Duration Government Bond 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 wellsfargoadvantagefunds.com, or visiting the SEC Web site at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge on the Fund’s Web site at wellsfargoadvantagefunds.com or by visiting the SEC Web site at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available on the Fund’s Web site (wellsfargoadvantagefunds.com) 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 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.

Other Information (Unaudited) Wells Fargo Advantage Short Duration Government Bond Fund 27

BOARD OF TRUSTEES

The following table provides basic information about the Board of Trustees (the “Trustees”) of the Trust and Officers of the Trust. This table should be read in conjunction with the Prospectus and the Statement of Additional Information¹ of 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 137 funds comprising the Wells Fargo Funds 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 Year of Birth	Position Held and Length of Service	Principal Occupations During Past Five Years	Other Directorships During Past Five Years
Peter G. Gordon (Born 1942)	Trustee, since 1998; Chairman, since 2005 (Lead Trustee since 2001)	Co-Founder, Retired Chairman, President and CEO of Crystal Geyser Water Company. Trustee Emeritus, Colby College	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 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 40 portfolios as of 12/31/11); Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of Corporate Governance Research Program and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust

28 Wells Fargo Advantage Short Duration Government Bond Fund Other Information (Unaudited)

Name and Year of Birth	Position Held and Length of Service	Principal Occupations During Past Five Years	Other Directorships During Past Five Years
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	Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield 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. Director and Vice Chair of The Free Trust (non-profit corporation). Director of the American Chestnut Foundation (non-profit corporation).	Asset Allocation Trust

Officers

Name and Year of Birth	Position Held and 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 Senior 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.
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. 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 Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the Web site at wellsfargoadvantagefunds.com.

List of Abbreviations Wells Fargo Advantage Short Duration Government Bond Fund 29

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

ACB —  Agricultural Credit Bank

ADR —  American Depository 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

AUD —  Australian Dollar

BAN —  Bond Anticipation Notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazil Real

CAB —  Capital Appreciation Bond

CAD —  Canadian Dollar

CCAB —  Convertible Capital Appreciation Bond

CDA —  Community Development Authority

CDO —  Collateralized Debt Obligation

CHF —  Swiss Franc

COP —  Certificate of Participation

CR —  Custody Receipts

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

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-Traded Fund

EUR —  Euro

FFCB —  Federal Farm Credit Bank

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Authority

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British Pound

GDR —  Global Depository 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

HUF —  Hungarian Forint

IBC —  Insured Bond Certificate

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

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

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

PUTTER —  Puttable Tax-Exempt Receipts

R&D —  Research & Development

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real Estate Investment Trust

ROC —  Reset Option Certificates

SAVRS —  Select Auction Variable Rate Securities

SBA —  Small Business Authority

SEK —  Swedish Krona

SFHR —  Single Family Housing Revenue

SFMR —  Single Family Mortgage Revenue

SGD —  Singapore Dollar

SKK —  Slovakian Koruna

SPDR —  Standard & Poor’s Depositary Receipts

TAN —  Tax Anticipation Notes

TBA —  To Be Announced

TIPS —  Treasury Inflation-Protected Securities

TRAN —  Tax Revenue Anticipation Notes

TCR —  Transferable Custody Receipts

TRY —  Turkish Lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

XLCA —  XL Capital Assurance

ZAR —  South African Rand

This page is intentionally left blank.

FOR MORE INFORMATION

More information about Wells Fargo Advantage Funds is available free upon request. To obtain literature, please write, e-mail, visit the Fund’s Web site, or call:

Wells Fargo Advantage Funds

P.O. Box 8266

Boston, MA 02266-8266

E-mail: wfaf@wellsfargo.com

Web site: wellsfargoadvantagefunds.com

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 wellsfargoadvantagefunds.com. 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

© 2012 Wells Fargo Funds Management, LLC. All rights reserved.

208525 04-12 SA220/SAR220 2-12

Wells Fargo Advantage Short-Term Bond Fund

Semi-Annual Report

February 29, 2012

Reduce clutter. Save trees.

Sign up for electronic delivery of prospectuses and shareholder reports at wellsfargo.com/advantagedelivery

Contents

Letter to Shareholders	2
Performance Highlights	5
Fund Expenses	7
Portfolio of Investments	8
Financial Statements
Statement of Assets and Liabilities	20
Statement of Operations	21
Statements of Changes in Net Assets	22
Financial Highlights	23
Notes to Financial Statements	27
Other Information	34
List of Abbreviations	37

The views expressed and any forward-looking statements are as of February 29, 2012, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Advantage Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements; the views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC, disclaims any obligation to publicly update or revise any views expressed or forward-looking statements.

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 FundsSM).
1996	Evergreen Investments and Keystone Funds merge.
1997	Wells Fargo launches Wells Fargo Advantage WealthBuilder PortfoliosSM, 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 a fund’s investment objectives, risks, charges, and expenses before investing. For a current prospectus and, if available, a summary prospectus, containing this and other information, visit wellsfargoadvantagefunds.com. 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.

“Dow Jones^®” and “Dow Jones Target Date Indexes^SM” are service marks of Dow Jones Trademark Holdings, LLC (“Dow Jones”), have been licensed to CME Group Index Services LLC (“CME Indexes”) and have been sublicensed for use for certain purposes by Global Index Advisors, Inc, and Wells Fargo Funds Management, LLC. The Wells Fargo Advantage Dow Jones Target Date Funds^SM based on the Dow Jones Target Date Indexes^SM, are not sponsored, endorsed, sold or promoted by Dow Jones, CME Indexes or their respective affiliates and none of them makes any representation regarding the advisability of investing in such product(s).

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

Not part of the semi-annual report.

Wells Fargo Advantage Funds offers more than 110 mutual funds across a wide range of asset classes, representing over $218 billion in assets under management, as of February 29, 2012.

Equity Funds
Asia Pacific Fund	Equity Value Fund	Precious Metals Fund
C&B Large Cap Value Fund	Global Opportunities Fund	Premier Large Company Growth Fund
C&B Mid Cap Value Fund	Growth Fund	Small Cap Opportunities Fund
Capital Growth Fund	Index Fund	Small Cap Value Fund
Common Stock Fund	International Equity Fund	Small Company Growth Fund
Disciplined U.S. Core Fund	International Value Fund	Small Company Value Fund
Discovery Fund†	Intrinsic Small Cap Value Fund	Small/Mid Cap Core Fund
Diversified Equity Fund	Intrinsic Value Fund	Small/Mid Cap Value Fund
Diversified International Fund	Intrinsic World Equity Fund	Special Mid Cap Value Fund
Diversified Small Cap Fund	Large Cap Core Fund	Special Small Cap Value Fund
Emerging Growth Fund	Large Cap Growth Fund	Specialized Technology Fund
Emerging Markets Equity Fund	Large Company Value Fund	Strategic Large Cap Growth Fund
Endeavor Select Fund†	Omega Growth Fund	Traditional Small Cap Growth Fund
Enterprise Fund†	Opportunity 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
Absolute Return Fund	WealthBuilder Equity Portfolio†	Target 2020 Fund†
Asset Allocation Fund	WealthBuilder Growth Allocation Portfolio†	Target 2025 Fund†
Conservative Allocation Fund	WealthBuilder Growth Balanced Portfolio†	Target 2030 Fund†
Diversified Capital Builder Fund	WealthBuilder Moderate Balanced Portfolio†	Target 2035 Fund†
Diversified Income Builder Fund	WealthBuilder Tactical Equity Portfolio†	Target 2040 Fund†
Growth Balanced Fund	Target Today Fund†	Target 2045 Fund†
Index Asset Allocation Fund	Target 2010 Fund†	Target 2050 Fund†
Moderate Balanced Fund	Target 2015 Fund†	Target 2055 Fund†
WealthBuilder Conservative Allocation Portfolio†
Money Market Funds
100% Treasury Money Market Fund	Heritage Money Market Fund†	National Tax-Free Money Market Fund
California Municipal Money Market Fund	Money Market Fund	Prime Investment Money Market Fund
Cash Investment Money Market Fund	Municipal Cash Management Money Market Fund	Treasury Plus Money Market Fund
Government Money Market Fund	Municipal Money Market Fund
Variable Trust Funds1
VT Discovery Fund†	VT Intrinsic Value Fund	VT Small Cap Growth Fund
VT Index Asset Allocation Fund	VT Omega Growth Fund	VT Small Cap Value Fund
VT International Equity Fund	VT Opportunity Fund†	VT Total Return Bond 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 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 Dow Jones Target 2055 Fund^SM, Wells Fargo Advantage Heritage Money Market Fund^SM, Wells Fargo Advantage VT Discovery Fund^SM, and Wells Fargo Advantage VT Opportunity Fund^SM are referred to as the Discovery Fund, Endeavor Select Fund, Enterprise Fund, Opportunity 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, Target 2055 Fund, Heritage Money Market Fund, VT Discovery Fund, and VT Opportunity Fund, respectively.

Not part of the semi-annual report.

2 Wells Fargo Advantage Short-Term Bond Fund Letter to Shareholders

Karla M. Rabusch,

President

Wells Fargo Advantage Funds

The theme for the period was a shift from risk aversion in the first half to burgeoning trends of improving investor confidence in the second half, which significantly improved pricing in the lower-rated asset classes.

On the whole, investment-grade fixed-income securities performed positively during the period, but the strongest returns came from the high-yield market.

Dear Valued Shareholder:

We are pleased to offer you this semi-annual report for the Wells Fargo Advantage Short-Term Bond Fund, which covers the six-month period that ended February 29, 2012. During the period, fixed-income performance was best among the lower-rated securities, as improved investor confidence in the U.S. economy and the U.S. credit markets encouraged investors to return to riskier asset classes.

The period began with heightened risk aversion but ended with stronger investor confidence.

The six-month period began with the worsening of the Greek crisis, which amplified risk aversion across the global credit markets. This in turn led to a powerful rally in U.S. Treasuries and a sharp decline in high-yield bond prices, most notably in the lowest-quality credit tiers. During this time, most investment-grade fixed-income markets continued to generate positive returns—although certain areas of the riskiest segments of the markets declined—and U.S. Treasury yields reached the lowest levels in decades, even surpassing the low yield levels reached in the summer of 2010.

The last three months of the period were characterized by a strong reversal of the trends of the first three months. In October 2011, the high-yield market recovered significantly, benefiting from indications of improving policy with regard to managing the debt crisis from Europe and the formal announcement of a European debt deal late in the month. Due to renewed concerns about the European Union’s ability to manage the debt crisis, November 2011 saw a modest decline in investment-grade corporate bond prices and a sharp correction in high-yield corporate bonds, but another strong recovery in pricing started in December and carried into the first two months of 2012. Investor confidence strengthened as the U.S. economy demonstrated signs of sustainable growth and U.S. credit markets began to show some resistance to the credit problems of Europe. Thus, the theme for the period was a shift from risk aversion in the first half to burgeoning trends of improving investor confidence in the second half, which significantly improved pricing in the lower-rated asset classes.

On the whole, investment-grade fixed-income securities performed positively during the period, but the strongest returns came from the high-yield market. In fact, the best returns for the six-month period came from the lowest-rated credit tiers, despite the fact that they significantly underperformed in August and September 2011. Similar trends were true in the structured products sector, as lower-rated commercial mortgage-backed securities were among the best performers for the period, despite underperforming in the first two months.

The Federal Reserve launched Operation Twist in September.

With economic concerns and credit woes escalating in Europe and some continued uncertainty about the growth outlook in the U.S. during August and September 2011, the Federal Reserve (Fed) intervened yet again with monetary accommodations—this time with “Operation Twist,” which was announced and launched in September 2011. With Operation Twist, the Fed endeavored to flatten the yield curve and drive long-term rates down by selling short-term Treasuries and using the proceeds to purchase long-term Treasuries. The Fed stated that it is unlikely to raise rates before 2014, which should keep yields on Treasuries low. Despite this announcement, problems in Europe caused Treasuries to continue to rally in the first 3 months of the period, while credit spreads on corporate and

Letter to Shareholders Wells Fargo Advantage Short-Term Bond Fund 3

securitized sectors widened with increasing risk aversion. However, with an improved U.S. economic outlook and greater investor confidence, the last three months of the period saw a slight decline in U.S. Treasury prices and significant improvement in high-yield corporate bond prices. Credit spreads in the corporate and securitized sectors broadly tightened in December 2011 and January and February 2012.

Although U.S. economic conditions appear to have improved over the course of the period, the recovery continues to face some headwinds in the form of languishing housing values and elevated unemployment levels, which may continue to create some volatility in the fixed-income markets. 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. While heightened volatility may be uncomfortable to experience in the short term, we believe it can lead to unique opportunities to add relative value for investors with long-term investment horizons.

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

Periods of uncertainty can present challenges, but 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. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Advantage Funds offers more than 110 mutual funds and other investments spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance.

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 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.

Thank you for choosing to invest with Wells Fargo Advantage Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs. For current information about your fund investments, contact your investment professional, visit our Web site at wellsfargoadvantagefunds.com, or call us directly at 1-800-222-8222. We are available 24 hours a day, 7 days a week.

Sincerely,

Karla M. Rabusch

President

Wells Fargo Advantage Funds

4 Wells Fargo Advantage Short-Term Bond Fund Letter to Shareholders

Notice to Shareholders

The Board of Trustees for Wells Fargo Advantage Funds has unanimously approved the following modifications to certain net asset value (NAV) waiver privileges and commission schedules:

n Effective May 1, 2012, automatic investment plan (AIP) purchases and proceeds received from systematic withdrawals will no longer qualify for NAV repurchase privileges.

n Effective May 1, 2012, discretionary rights to waive the upfront commission for Class C and “jumbo” Class A share purchases will no longer be granted to broker/dealers. However, we will continue to waive the Class C shares contingent deferred sales charge for redemptions by employer-sponsored retirement plans where the dealer of record waived its commission at the time of purchase.

n Effective July 31, 2012, NAV purchase privileges for former Evergreen Class IS and Class R shareholders are being modified to remove the ability to purchase Class A shares at NAV unless those shares are held directly with the Fund on or after July 31, 2012.

Please contact your investment professional or call us directly at 1-800-222-8222 if you have any questions on this Notice to Shareholders.

Performance Highlights (Unaudited) Wells Fargo Advantage Short-Term Bond Fund 5

INVESTMENT OBJECTIVE

The Fund seeks current income consistent with capital preservation.

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 Y. Kauffman, CFA

FUND INCEPTION

August 31, 1987

TEN LARGEST LONG-TERM HOLDINGS1 (AS OF FEBRUARY 29, 2012)
FHLMC, 3.63%, 10/18/2013	1.63%
U.S. Treasury Note, 1.00%, 7/15/2013	1.32%
Nordea Eiendomskreditt, 1.88%, 4/7/2014	1.02%
Chase Issuance Trust Series 2009-A2 Class A2, 1.80%, 4/15/2014	0.93%
Citibank Credit Card Issuance Trust Series 2009-A1 Class A1, 2.00%, 3/17/2014	0.85%
JPMorgan Chase & Company, 0.82%, 12/26/2012	0.82%
Bank of America Corporation, 3.13%, 6/15/2012	0.78%
Ford Credit Auto Lease Trust Series 2011-B Class A2, 0.82%, 1/15/2014	0.77%
Morgan Stanley Capital I 2004-T13 Class A4, 4.66%, 9/13/2045	0.76%
FNMA, 3.25%, 4/1/2015	0.75%

CREDIT QUALITY²
(AS OF FEBRUARY 29, 2012)

1. The ten largest long-term holdings are calculated based on the value of the securities divided by total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

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 & Poor’s rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Ratings from A to CCC may be modified by the addition of a plus (+) or minus (–) sign to show relative standing within the rating categories. Standard & Poor’s rates the creditworthiness of short-term notes from SP-1 (highest) to SP-3 (lowest). Moody’s rates the creditworthiness of bonds, ranging from Aaa (highest) to C (lowest). Ratings Aa to B may be modified by the addition of a number 1 (highest) to 3 (lowest) to show relative standing within the ratings categories. Moody’s rates the creditworthiness of short-term U.S. tax-exempt municipal securities from MIG 1/VMIG 1 (highest) to SG (lowest). Fitch rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). 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.

6 Wells Fargo Advantage Short-Term Bond Fund Performance Highlights (Unaudited)

AVERAGE ANNUAL TOTAL RETURN³ (%) (AS OF FEBRUARY 29, 2012)

			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 (SSTVX)		08/31/1999		(2.13	)		(0.85	)		3.24		3.11		0.89		2.22		3.87		3.42		0.90%		0.81%
Class C (WFSHX)		03/31/2008		(0.48	)		0.45			3.06		2.71		0.52		1.45		3.06		2.71		1.65%		1.56%
Institutional Class (SSHIX)		08/31/1999												0.94		2.54		4.18		3.85		0.57%		0.49%
Investor Class (SSTBX)		08/31/1987												0.76		2.18		3.80		3.44		0.93%		0.84%
Barclays 1-3 Year U.S. Government/ Credit Bond Index6														0.40		1.75		3.85		3.59

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

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 and assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s Web site – wellsfargoadvantagefunds.com

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.

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 charge 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.

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 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.

3. Historical performance shown for the Class A shares through June 19, 2008 includes Advisor Class expenses. Historical performance shown for the Class C shares prior to their inception reflects the performance of the Investor Class shares, adjusted to include the higher expenses applicable to Class C shares.

4. Reflects the expense ratios as stated in the most recent prospectuses.

5. The Adviser has committed through December 31, 2012 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver, excluding certain expenses, at 0.80% for Class A, 1.55% for Class C, 0.48% for Institutional Class and 0.83% for Investor Class. Without this cap, the Fund’s returns would have been lower.

6. The Barclays 1-3 Year U.S. Government/Credit Bond Index is the 1-3 year component of the Barclays 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.

Fund Expenses (Unaudited) Wells Fargo Advantage Short-Term Bond Fund 7

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and contingent deferred sales charges (if any) on redemptions 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, 2011 to February 29, 2012.

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 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.

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) and contingent deferred sales charges. 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 Account Value 09-01-2011		Ending Account Value 02-29-2012		Expenses Paid During the Period1		Net Annual Expense Ratio
Class A
Actual	$	1,000.00	$	1,008.94	$	4.00		0.80	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.89	$	4.02		0.80	%
Class C
Actual	$	1,000.00	$	1,005.19	$	7.73		1.55	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.16	$	7.77		1.55	%
Institutional Class
Actual	$	1,000.00	$	1,009.38	$	2.40		0.48	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.48	$	2.41		0.48	%
Investor Class
Actual	$	1,000.00	$	1,007.63	$	4.14		0.83	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.74	$	4.17		0.83	%

1. Expenses paid is equal to the annualized expense ratio of each class 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).

8 Wells Fargo Advantage Short-Term Bond Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Agency Securities: 8.60%
FHLMC		1.13	%		07/27/2012	$	3,000,000	$	3,011,730
FHLMC ±		2.49			04/01/2032		80,515		84,221
FHLMC ±		2.62			07/01/2029		8,675		9,191
FHLMC ±		2.66			09/01/2031		8,026		8,132
FHLMC		3.63			10/18/2013		10,000,000		10,528,370
FHLMC ±		3.95			05/01/2026		217,356		228,300
FHLMC		7.00			11/17/2013		10,581		10,610
FHLMC		7.50			06/01/2012		646		650
FHLMC		7.50			10/01/2012		1,800		1,820
FHLMC		8.50			09/01/2017		220,712		245,569
FHLMC		9.00			08/01/2018		208,809		236,132
FHLMC		9.00			06/01/2019		254,457		287,707
FHLMC		9.00			10/01/2019		384,946		446,842
FHLMC		9.50			12/01/2022		349,229		402,718
FHLMC		10.50			01/01/2016		3,731		4,191
FHLMC		10.50			11/01/2017		1,440		1,682
FHLMC		10.50			08/01/2018		135,324		158,283
FHLMC		10.50			02/01/2019		1,888		2,233
FHLMC		10.50			04/01/2019		1,031		1,236
FHLMC		10.50			05/01/2019		772		928
FHLMC		10.50			06/01/2019		8,684		10,254
FHLMC		10.50			07/01/2019		1,495		1,806
FHLMC		7.44			03/15/2013		384		384
FHLMC Series 2301 Class MO		6.00			10/15/2013		3,734,693		3,825,317
FHLMC Series 2958 Class QD		4.50			04/15/2020		3,703,000		4,060,285
FHLMC Series T-42 Class A6		9.50			02/25/2042		677,940		807,377
FHLMC Series T-57 Class 2A1 ±		3.53			07/25/2043		33,886		34,592
FHLMC Series T-59 Class 2A1 ±		3.18			10/25/2043		1,315,406		1,337,772
FNMA ±		2.30			11/01/2031		109,704		115,412
FNMA		3.25			04/01/2015		4,562,940		4,870,181
FNMA		6.00			04/01/2021		2,986,395		3,254,657
FNMA		6.00			03/01/2033		1,331,015		1,488,687
FNMA		6.50			08/01/2031		819,642		939,149
FNMA		8.00			03/01/2013		5,402		5,438
FNMA		8.00			04/01/2017		301,198		333,660
FNMA		8.00			09/01/2019		209,490		233,924
FNMA		8.00			09/01/2023		21,002		23,607
FNMA		8.33			07/15/2020		67,025		78,149
FNMA		8.50			11/01/2012		1,111		1,118
FNMA		8.50			07/01/2018		124,572		139,366
FNMA		8.50			02/01/2023		183,976		205,534
FNMA		9.00			02/15/2020		2,482		2,930
FNMA		9.00			11/01/2024		201,974		241,867
FNMA		11.00			10/15/2020		194,673		222,935
FNMA		12.00			03/01/2017		27,829		30,675
FNMA Series 2002-T1 Class A4		9.50			11/25/2031		123,079		148,629
FNMA Series 2002-T12 Class A4		9.50			05/25/2042		1,056,539		1,351,645
FNMA Series 1989-29 Class Z		10.00			06/25/2019		212,209		243,124
FNMA Series 1989-63 Class Z		9.40			10/25/2019		123,431		138,430
FNMA Series 2004-90 Class XY		4.00			09/25/2034		2,824,961		3,038,402

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage Short-Term Bond Fund 9

Security Name	Interest Rate			Maturity Date		Principal		Value
Agency Securities (continued)
FNMA Series G95-2 ±		10.00	%		05/25/2020	$	296,124	$	71,868
FNMA Series 2003-W11 Class A1 ±		3.10			06/25/2033		43,128		43,118
FNMA Series 2003-W6 Class 6A ±		3.19			08/25/2042		1,791,781		1,941,382
FNMA Series 2003-W6 Class PT4 ±		9.40			10/25/2042		162,746		191,837
FNMA Series 2004-W6 Class 1A4		5.50			07/25/2034		3,108,075		3,215,340
GNMA		1.83			03/16/2039		4,500,000		4,535,766
GNMA		7.00			05/15/2013		3,108		3,087
GNMA		7.50			02/15/2013		872		881
GNMA		8.00			12/15/2023		74,402		88,753
GNMA		9.00			11/15/2017		121,546		137,620
GNMA		9.00			11/15/2024		55,709		65,151
GNMA		10.00			02/20/2018		12,771		14,923
GNMA		12.50			04/15/2019		409,359		416,328
GNMA Series 2005-90 Class A		3.76			09/16/2028		1,945,212		1,990,330
SBA (c)(a)(i)		3.68			10/06/2015		97,336		4,244
Total Agency Securities (Cost $54,201,148)									55,576,479
Asset-Backed Securities: 9.68%
Chase Issuance Trust Series 2007-A18 Class A ±		0.51			01/15/2015		1,600,000		1,603,715
Chase Issuance Trust Series 2009-A2 Class A2 ±		1.80			04/15/2014		6,000,000		6,011,761
Citibank Credit Card Issuance Trust Series 2009-A1 Class A1 ±		2.00			03/17/2014		5,500,000		5,503,906
CNH Equipment Trust Series 2011-A Class A2		0.62			06/16/2014		908,541		908,636
ContiMortgage Net Interest Margin Notes Series 1997-A Class A (c)(a)(i)(s)		7.23			10/16/2028		4,232,333		1,323
Ford Credit Auto Lease Trust Series 2011-B Class A2		0.82			01/15/2014		5,000,000		5,005,512
Ford Credit Auto Lease Trust Series 2012-A Class A2		0.63			04/15/2014		3,200,000		3,199,608
GS Mortgage Securities Corporation II Series 2011-GC3 Class A1 144A		2.33			03/10/2044		3,733,961		3,808,088
Home Equity Asset Trust Series 2003-6 Class M1 ±		1.29			02/25/2034		2,108,687		1,629,907
Honda Auto Receivables Owner Trust Series 2010-3 Class A2		0.53			01/21/2013		197,186		197,200
Honda Auto Receivables Owner Trust Series 2012-1 Class A2		0.57			08/15/2014		3,500,000		3,500,440
Hyundai Auto Lease Securitization Trust Series 2011 Class A2 144A		0.69			11/15/2013		1,600,000		1,600,456
John Deere Owner Trust Series 2011-A Class A2		0.64			06/16/2014		2,383,745		2,385,045
John Deere Owner Trust Series 2012-A Class A2		0.82			06/16/2014		3,500,000		3,499,922
Mercedes-Benz Auto Lease Trust Series 2011-1A Class A2 144A		0.79			04/15/2013		1,410,714		1,411,345
Mercedes-Benz Auto Lease Trust Series 2011-B Class A2 144A		0.90			01/15/2014		3,500,000		3,503,670
Morgan Stanley Capital I 2004-T13 Class A4		4.66			09/13/2045		4,670,000		4,921,391
Newcastle Investment Trust Series 2011-MH1 Class A 144A		2.45			12/10/2033		1,554,336		1,570,262
Nissan Auto Lease Trust Series 2010-B Class A2		0.90			05/15/2013		1,117,843		1,118,600
Nissan Auto Receivables Owner Trust Series 2010-A Class A2		0.55			03/15/2013		189,254		189,269
Nissan Auto Receivables Owner Trust Series 2011-A Class A2		0.65			12/16/2013		4,614,155		4,624,559
Porsche Innovative Lease Owner Pilot Series 2011-1 Class A2 144A		0.92			02/20/2014		3,500,000		3,504,560
Residential Asset Securities Corporation Series 2001-KS1 Class AII ±		0.71			03/25/2032		36,724		35,634
Structured Asset Investment Loan Trust Series 2003-BC10 Class M1 ±		1.37			10/25/2033		1,104,922		864,537
Structured Asset Investment Loan Trust Series 2003-BC3 Class M1 ±		1.67			04/25/2033		1,361,285		1,079,503
Toyota Auto Receivables Owner Trust Series 2010-C Class A2		0.51			12/17/2012		268,190		268,200
Volkswagen Auto Lease Trust Series 2010-A Class A2		0.77			01/22/2013		586,124		586,310
Total Asset-Backed Securities (Cost $67,762,008)									62,533,359

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

10 Wells Fargo Advantage Short-Term Bond Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Corporate Bonds and Notes: 45.90%
Consumer Discretionary: 9.21%
Auto Components: 0.48%
AutoZone Incorporated		5.88	%		10/15/2012	$	3,000,000	$	3,091,641
Diversified Consumer Services: 0.31%
Life Technologies Corporation		3.38			03/01/2013		2,000,000		2,038,636
Hotels, Restaurants & Leisure: 1.08%
Darden Restaurants Incorporated		5.63			10/15/2012		2,000,000		2,055,554
Starwood Hotels & Resorts Worldwide Incorporated		7.88			10/15/2014		2,500,000		2,862,500
Yum! Brands Incorporated		7.70			07/01/2012		2,000,000		2,040,362
									6,958,416
Leisure Equipment & Products: 0.46%
Hasbro Incorporated		6.13			05/15/2014		2,725,000		2,973,005
Media: 4.19%
CBS Corporation		8.20			05/15/2014		3,000,000		3,425,805
Comcast Corporation		10.63			07/15/2012		2,500,000		2,574,618
Historic TW Incorporated		9.13			01/15/2013		2,000,000		2,137,112
Interpublic Group of Companies Incorporated		6.25			11/15/2014		2,860,000		3,120,975
News America Incorporated		5.30			12/15/2014		3,120,000		3,463,768
Sirius XM Radio Incorporated 144A		9.75			09/01/2015		3,000,000		3,247,500
TCM LLC 144A		3.55			01/15/2015		2,000,000		2,104,708
Time Warner Cable Incorporated		8.25			02/14/2014		3,000,000		3,410,856
Viacom Incorporated		4.38			09/15/2014		3,300,000		3,568,604
									27,053,946
Multiline Retail: 0.79%
JCPenney Company Incorporated		9.00			08/01/2012		3,000,000		3,093,750
Macy’s Incorporated		5.35			03/15/2012		2,000,000		2,001,900
									5,095,650
Specialty Retail: 1.90%
Best Buy Company Incorporated		6.75			07/15/2013		3,035,000		3,210,593
Harley Davidson Funding 144A		5.75			12/15/2014		1,500,000		1,627,826
Home Depot Incorporated		5.25			12/16/2013		3,000,000		3,249,408
Staples Incorporated		9.75			01/15/2014		3,665,000		4,203,018
									12,290,845
Consumer Staples: 2.36%
Beverages: 0.49%
Miller Brewing Corporation 144A		5.50			08/15/2013		3,000,000		3,179,652
Food & Staples Retailing: 0.51%
Safeway Incorporated		6.25			03/15/2014		3,000,000		3,311,016

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage Short-Term Bond Fund 11

Security Name	Interest Rate			Maturity Date		Principal		Value
Food Products: 0.50%
Cadbury Schweppes Company 144A		5.13	%		10/01/2013	$	3,000,000	$	3,185,199
Kraft Foods Incorporated		6.25			06/01/2012		22,000		22,291
									3,207,490
Household Products: 0.51%
Clorox Company		5.00			01/15/2015		3,000,000		3,278,085
Tobacco: 0.35%
Altria Group Incorporated		7.75			02/06/2014		2,000,000		2,251,856
Energy: 3.84%
Energy Equipment & Services: 1.46%
Indiana Michigan Power Company		6.38			11/01/2012		2,000,000		2,074,014
Kinder Morgan Energy Partners LP		5.13			11/15/2014		3,000,000		3,256,914
Nevada Power Company		6.50			04/15/2012		2,000,000		2,011,880
Weatherford International Limited		5.15			03/15/2013		2,000,000		2,069,056
									9,411,864
Oil, Gas & Consumable Fuels: 2.38%
El Paso Pipeline Partners Operating LLC		4.10			11/15/2015		3,000,000		3,086,085
Petrohawk Energy Corporation		7.88			06/01/2015		3,000,000		3,168,750
Trans Canada Pipelines Corporation		0.88			03/02/2015		3,000,000		2,991,792
Valero Energy Corporation		4.75			04/01/2014		2,820,000		2,985,413
Williams Partners LP		3.80			02/15/2015		3,000,000		3,174,129
									15,406,169
Financials: 15.36%
Commercial Banks: 3.02%
Australia and New Zealand Banking Group Limited 144A		2.40			11/23/2016		3,000,000		3,021,588
Bank of New York Mellon Corporation ±		0.74			06/29/2012		1,600,000		1,602,890
Credit Suisse		2.20			01/14/2014		3,000,000		3,024,495
Hudson United Bank		7.00			05/15/2012		1,195,000		1,207,748
Inter-American Development Bank ±		0.94			05/20/2014		4,000,000		4,054,564
Key Bank NA		5.50			09/17/2012		2,000,000		2,051,448
M&I Marshall & IIsley Bank		5.25			09/04/2012		3,240,000		3,309,336
PNC Funding Corporation ±		0.78			04/01/2012		1,200,000		1,200,643
									19,472,712
Consumer Finance: 1.70%
American Honda Finance Corporation 144A		2.38			03/18/2013		2,600,000		2,646,371
Capital One Financial Corporation		6.25			11/15/2013		2,000,000		2,139,080
Ford Motor Credit Company LLC		3.88			01/15/2015		3,000,000		3,075,684
General Electric Capital Corporation		4.80			05/01/2013		3,000,000		3,135,195
									10,996,330
Diversified Financial Services: 4.75%
American Express Centurion		5.55			10/17/2012		2,000,000		2,058,216
Bank of America Corporation		3.13			06/15/2012		5,000,000		5,042,270

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

12 Wells Fargo Advantage Short-Term Bond Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Diversified Financial Services (continued)
ERAC USA Finance Company 144A		2.25	%		01/10/2014	$	3,000,000	$	3,003,690
Fifth Third Bancorp Cincinnati Ohio ±		0.61			05/17/2013		2,000,000		1,979,142
JPMorgan Chase & Company ±		0.82			12/26/2012		5,300,000		5,317,331
Morgan Stanley		4.75			04/01/2014		3,000,000		3,035,241
Raymond James Financial Incorporated		4.25			04/15/2016		2,000,000		2,074,610
Santander Holdings USA		4.63			04/19/2016		2,000,000		1,981,648
SLM Corporation		5.13			08/27/2012		3,000,000		3,031,713
Woodside Finance Limited 144A		4.50			11/10/2014		3,000,000		3,142,518
									30,666,379
Insurance: 2.54%
American International Group Incorporated		4.25			05/15/2013		3,000,000		3,061,986
Genworth Life Institutional Funding Trust 144A		5.88			05/03/2013		2,035,000		2,083,311
Mass Mutual Global Funding II 144A		3.63			07/16/2012		1,000,000		1,010,830
Metropolitan Life Global Funding I 144A		2.00			01/10/2014		1,000,000		1,010,878
Metropolitan Life Global Funding I 144A		5.13			04/10/2013		2,000,000		2,087,288
Montpelier Holdings Limited		6.13			08/15/2013		2,900,000		3,024,973
New York Life Global Funding 144A		5.25			10/16/2012		2,000,000		2,057,454
Pricoa Global Funding 144A		5.40			10/18/2012		2,000,000		2,057,942
									16,394,662
REITs: 3.35%
American Tower Corporation		4.63			04/01/2015		3,174,000		3,365,637
Dexus Property Group 144A		7.13			10/15/2014		3,000,000		3,230,004
Digital Realty Trust LP		4.50			07/15/2015		3,000,000		3,130,251
Federal Realty Investment Trust		5.95			08/15/2014		1,000,000		1,078,441
Healthcare Realty Trust Incorporated		5.13			04/01/2014		2,000,000		2,071,220
Nationwide Health Properties Incorporated		8.25			07/01/2012		1,720,000		1,742,790
Ventas Realty LP		9.00			05/01/2012		3,000,000		3,027,192
WEA Finance LLC 144A		7.50			06/02/2014		3,630,000		4,022,991
									21,668,526
Health Care: 2.51%
Biotechnology: 0.48%
Amgen Incorporated		1.88			11/15/2014		3,000,000		3,069,513
Health Care Equipment & Supplies: 0.34%
Boston Scientific Corporation		6.25			11/15/2015		2,000,000		2,223,974
Health Care Providers & Services: 1.40%
AmerisourceBergen Corporation		5.88			09/15/2015		3,450,000		3,970,836
Anthem Incorporated		6.80			08/01/2012		2,925,000		2,998,760
UnitedHealth Group Incorporated		4.88			02/15/2013		2,000,000		2,079,406
									9,049,002
Pharmaceuticals: 0.29%
Aristotle Holding Incorporated 144A		2.10			02/12/2015		1,875,000		1,890,039

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage Short-Term Bond Fund 13

Security Name	Interest Rate			Maturity Date		Principal		Value
Industrials: 4.42%
Aerospace & Defense: 0.49%
BAE Systems Holdings Incorporated 144A		4.95	%		06/01/2014	$	3,000,000	$	3,165,612
Building Products: 1.15%
Masco Corporation		5.88			07/15/2012		3,400,000		3,433,745
Tyco Electronics Group SA		1.60			02/03/2015		4,000,000		4,013,836
									7,447,581
Commercial Services & Supplies: 1.08%
Brambles USA Incorporation 144A		3.95			04/01/2015		2,000,000		2,072,124
Equifax Incorporated		4.45			12/01/2014		2,000,000		2,127,100
R.R. Donnelley & Sons Company		4.95			04/01/2014		2,685,000		2,752,125
									6,951,349
Electrical Equipment: 0.94%
Agilent Technologies Incorporated		4.45			09/14/2012		2,000,000		2,035,492
Roper Industries Incorporated		6.63			08/15/2013		3,800,000		4,060,159
									6,095,651
Machinery: 0.43%
SPX Corporation		7.63			12/15/2014		2,450,000		2,750,125
Road & Rail: 0.33%
CSX Corporation		6.30			03/15/2012		2,100,000		2,103,104
Information Technology: 1.35%
Computers & Peripherals: 0.52%
Hewlett Packard Company		2.63			12/09/2014		3,225,000		3,343,967
Office Electronics: 0.32%
Xerox Corporation		8.25			05/15/2014		1,855,000		2,083,352
Software: 0.51%
CA Incorporated		6.13			12/01/2014		3,000,000		3,315,330
Materials: 0.16%
Metals & Mining: 0.16%
Arcelormittal Company		3.75			02/25/2015		1,000,000		1,017,520
Telecommunication Services: 2.39%
Diversified Telecommunication Services: 1.92%
AT&T Incorporated		0.88			02/13/2015		3,555,000		3,547,492
Crown Castle Towers LLC 144A		3.21			08/15/2035		2,000,000		2,052,562
Qwest Corporation ±		3.80			06/15/2013		2,500,000		2,543,750
Verizon New England Incorporated		4.75			10/01/2013		3,000,000		3,155,664
Verizon Wireless Capital LLC		7.38			11/15/2013		1,000,000		1,109,863
									12,409,331

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

14 Wells Fargo Advantage Short-Term Bond Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Wireless Telecommunication Services: 0.47%
Alltel Corporation		7.00	%		07/01/2012	$	945,000	$	964,776
SBA Tower Trust 144A		4.25			04/15/2040		2,000,000		2,058,106
									3,022,882
Utilities: 4.30%
Electric Utilities: 4.15%
Allegheny Energy Supply Company LLC 144A		8.25			04/15/2012		2,000,000		2,014,248
Ameren Corporation		8.88			05/15/2014		3,738,000		4,200,667
Duke Energy Ohio Incorporated		5.70			09/15/2012		3,000,000		3,082,035
FPL Group Capital Incorporation		2.60			09/01/2015		3,000,000		3,073,836
Great Plains Energy Incorporated		2.75			08/15/2013		1,000,000		1,009,179
Interstate Power & Light Company		3.30			06/15/2015		3,750,000		3,913,808
Niagara Mohawk Power Corporation 144A		3.55			10/01/2014		3,667,000		3,894,398
PECO Energy Company		5.00			10/01/2014		2,000,000		2,192,574
Virginia Electric & Power Company		5.25			12/15/2015		3,000,000		3,418,839
									26,799,584
Multi-Utilities: 0.15%
CMS Energy Corporation		2.75			05/15/2014		1,000,000		998,899
Total Corporate Bonds and Notes (Cost $292,167,056)									296,483,695
Municipal Bonds and Notes: 5.34%
Alabama: 0.26%
Courtland AL Industrial Development Board International Paper Company Project Series A (IDR)		5.00			11/01/2013		1,570,000		1,650,306
California: 1.06%
California PCFA Waste Services Incorporated Series A (Resource Recovery Revenue) ±		2.63			06/01/2018		3,000,000		3,067,890
Northern California Power Agency Series B (Utilities Revenue)		2.75			07/01/2012		1,750,000		1,762,775
University of California Build America Bonds (Education Revenue) ±		1.99			05/15/2050		2,000,000		2,026,340
									6,857,005
Florida: 0.49%
Miami-Dade County FL IDA Waste Management Incorporated Florida Project (Resource Recovery Revenue) ±		2.63			08/01/2023		1,200,000		1,216,836
Miami-Dade County FL School Board COP (Lease Revenue, NATL-RE FGIC Insured)		5.00			05/01/2013		1,870,000		1,972,083
									3,188,919
Georgia: 0.50%
Georgia Municipal Gas Authority Taxable Gas Portfolio III Series F (Energy Revenue, GO of Authority Insured)		4.77			08/01/2015		3,000,000		3,243,210
Kentucky: 0.28%
Kenton County KY Airport Board Cincinnati Northern Kentucky Series A (Airport Revenue, XLCA Insured)		5.00			03/01/2012		1,830,000		1,830,366

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage Short-Term Bond Fund 15

Security Name	Interest Rate			Maturity Date		Principal		Value
Louisiana: 0.47%
Louisiana State Gas & Fuels Tax Build America Bonds Series A-4 (Tax Revenue) ±		2.77	%		05/01/2043	$	3,000,000	$	3,012,660
New Jersey: 0.46%
Atlantic City NJ Tax Appeal (Tax Revenue)		2.13			12/15/2013		3,000,000		3,006,120
New York: 0.06%
Onondaga County NY Property Tax Receivables (Lease Revenue)		3.50			04/01/2013		375,000		375,345
Ohio: 0.46%
Columbus Franklin County OH Finance Authority Research & Development (IDR)		3.45			02/15/2015		2,885,000		2,954,442
Oregon: 0.49%
Oregon School Boards Association Series A (Miscellaneous Revenue, NATL-RE FGIC Insured) (z)		1.10			06/30/2013		3,200,000		3,152,800
Texas: 0.02%
Reeves County TX Lease Rentals Law Enforcement (Lease Revenue, ACA Insured)		5.75			03/01/2012		125,000		125,011
West Virginia: 0.47%
West Virginia Solid Waste Disposal Facilities Amos Project Series A (Resource Recovery Revenue) ±		2.00			01/01/2041		3,000,000		3,011,970
Wisconsin: 0.32%
Menomonee Falls WI (Tax Revenue)		4.25			11/01/2014		2,000,000		2,070,700
Total Municipal Bonds and Notes (Cost $33,897,725)									34,478,854
Non-Agency Mortgage Backed Securities: 6.61%
Aames Mortgage Trust Series 2003-1 Class M1 ±		1.26			10/25/2033		4,193,292		3,351,191
Bank of America Mortgage Securities Series 2002-K Class 3A1 ±		2.68			10/20/2032		83,371		83,352
Bear Stearns Commercial Mortgage Securities Series 2004-PWR3 Class A3		4.49			02/11/2041		3,389,574		3,455,600
Citigroup Mortgage Loan Trust Incorporated Series 2004-HYB4 Class AA ±		0.57			12/25/2034		163,549		138,902
ContiMortgage Home Equity Trust Series 1996-2 ±(c)(i)—		0.00			07/15/2027		1,460,681		44
Countrywide Home Loans Mortgage Pass-Through Trust Series 2001-HYB1 Class 2A1 ±		1.94			06/19/2031		482,405		463,173
Countrywide Home Loans Mortgage Pass-Through Trust Series 2004-20 Class 3A1 ±		2.32			09/25/2034		119,603		75,695
Credit Suisse First Boston Mortgage Securities Corporation Series 2003-C3 Class A5		3.94			05/15/2038		2,936,908		3,006,880
Credit Suisse First Boston Mortgage Securities Corporation Series 2006-C1 Class AAB ±		5.43			02/15/2039		1,942,964		2,056,788
Drexel Burnham Lambert CMO Trust Series T Class 4		8.45			09/20/2019		254,846		255,693
EquiFirst Mortgage Loan Trust Series 2003-2 Class 3A3 ±		1.04			09/25/2033		823,810		690,515
Golden National Mortgage Asset Backed Certificates Series 1998-GN1 Class M2		8.02			02/25/2027		61,118		61,151
GS Mortgage Securites Corporation II Series 2003-C1 Class A3		4.61			01/10/2040		2,969,000		3,036,690
GSMPS Mortgage Loan Trust Series 1998-1 Class A ±144A		8.00			09/19/2027		530,653		550,981
GSMPS Mortgage Loan Trust Series 2004-4 Class 1AF ±144A		0.64			06/25/2034		1,701,276		1,456,505
GSMPS Mortgage Loan Trust Series 2004-4 Class 2A1 ±144A		3.66			06/25/2034		1,325,171		1,193,828

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

16 Wells Fargo Advantage Short-Term Bond Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Non-Agency Mortgage Backed Securities (continued)
GSMPS Mortgage Loan Trust Series 2006-RP1 Class 1AF1 ±144A		0.59	%		01/25/2036	$	1,253,546	$	980,429
GSMPS Mortgage Loan Trust Series 2006-RP2 Class 1AF1 ±144A		0.64			04/25/2036		1,586,608		1,270,217
GSR Mortgage Loan Trust Series 2004-1 Class 2A2 ±		1.94			04/25/2032		251,165		221,454
Jeffries & Company Series 2010-R7 Class 7A6 ±144A		3.25			10/26/2036		990,659		988,001
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2003-C1 Class A2		4.99			01/12/2037		2,965,000		3,042,902
Master Mortgages Trust Series 2002-3 Class 4A1 ±		2.63			10/25/2032		19,612		18,895
Morgan Stanley Capital I Series 1999-WF1 Class X ±(c)144A		1.13			11/15/2031		5,473,707		159,745
Morgan Stanley Capital I Series 2004-IQ8 Class A4		4.90			06/15/2040		1,484,929		1,486,297
Morgan Stanley Dean Witter Capital I Series 2003-IQ4 Class A2		4.07			05/15/2040		2,536,385		2,598,795
Morgan Stanley Dean Witter Captial I Series 2003-TOP9 Class A2		4.74			11/13/2036		3,636,580		3,711,523
Nomura Asset Acceptance Corporation Series 2005-AR1 Class 1A1 ±		2.73			02/25/2035		1,683,495		1,458,498
Nomura Asset Securities Corporation Series 1998-D6 Class A2 ±		7.31			03/15/2030		2,475,000		2,577,368
Residential Finance Limited Partnership Series 2003-C Class B3 ±144A		1.65			09/10/2035		2,945,183		2,286,375
Salomon Brothers Mortgage Securities VI Series 1987-3 Class A (z)		0.20			10/23/2017		5,950		5,883
Structured Asset Securities Corporation Series 1998-RF2 Class A ±(i)144A		7.80			07/15/2027		1,599,776		1,614,731
Structured Mortgage Asset Residential Trust Series 1992-5B Class BO (z)		1.93			06/25/2023		9,524		7,644
Terwin Mortgage Trust Series 2004-21HE Class 1A1 ±		1.20			12/25/2034		47,080		40,290
Wilshire Funding Corporation Series 1996-3 Class M2 ±		5.71			08/25/2032		150,254		146,991
Wilshire Funding Corporation Series 1996-3 Class M3 ±		5.71			08/25/2032		152,726		145,727
Wilshire Funding Corporation Series 1998-2 Class M1 ±		2.00			12/28/2037		49,990		45,108
Total Non-Agency Mortgage Backed Securities (Cost $45,686,893)									42,683,861
	Diviend Yield					Shares
Preferred Stocks: 0.25%
Financials: 0.25%
Commercial Banks: 0.25%
Huntington Bancshares ±		0.76	%				80,000		1,622,504
Total Preferred Stocks (Cost $1,958,484)									1,622,504
	Interest Rate					Principal
U.S. Treasury Securities: 2.06%
U.S. Treasury Note		0.50			08/15/2014	$	1,910,000		1,915,969
U.S. Treasury Note		1.00			07/15/2013		8,450,000		8,536,477
U.S. Treasury Note		1.50			07/31/2016		2,105,000		2,173,413
U.S. Treasury Note		1.88			02/28/2014		665,000		685,574
U.S. Treasury Note		4.88			06/30/2012		25,000		25,395
Total U.S. Treasury Securities (Cost $13,246,148)									13,336,828
Yankee Corporate Bonds and Notes: 17.92%
Consumer Discretionary: 0.95%
Media: 0.62%
Pearson Finance Two plc 144A		5.50			05/06/2013		2,500,000		2,622,890
Vivendi SA 144A		5.75			04/04/2013		1,335,000		1,388,212
									4,011,102

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage Short-Term Bond Fund 17

Security Name		Interest Rate			Maturity Date		Principal		Value
Multiline Retail: 0.33%
Wesfarmers Limited 144A			7.00	%		04/10/2013	$	2,000,000	$	2,115,762
Consumer Staples: 0.33%
Food & Staples Retailing: 0.33%
Delhaize Group			5.88			02/01/2014		2,000,000		2,151,918
Energy: 0.98%
Oil, Gas & Consumable Fuels: 0.98%
Husky Energy Incorporated			5.90			06/15/2014		3,000,000		3,275,244
Petrobras International Finance Company			2.88			02/06/2015		3,000,000		3,070,791
										6,346,035
Financials: 12.39%
Capital Markets: 1.10%
Amvescap plc			5.38			12/15/2014		1,600,000		1,738,315
BP Capital Markets plc			5.25			11/07/2013		3,000,000		3,222,795
Macquarie Group Limited 144A			7.30			08/01/2014		2,005,000		2,112,771
										7,073,881
Commercial Banks: 9.75%
ABN Amro Bank NV 144A			3.00			01/31/2014		2,630,000		2,627,491
Australia & New Zealand Banking Group Limited ±144A			0.84			06/18/2012		4,000,000		4,000,860
Banco Santander Chile 144A			2.88			11/13/2012		2,000,000		1,997,568
Bank of Montreal 144A«			1.30			10/31/2014		2,500,000		2,526,330
Bank of Nova Scotia 144A			1.65			10/29/2015		3,430,000		3,493,832
Bank of Nova Scotia 144A			2.15			08/03/2016		3,000,000		3,095,646
Canadian Imperial Bank 144A«			0.90			09/19/2014		4,100,000		4,105,031
Canadian Imperial Bank 144A			2.75			01/27/2016		3,000,000		3,137,604
Commonwealth Bank of Australia ±			1.01			07/23/2014		4,000,000		3,951,624
Corp Andina De Fomento			3.75			01/15/2016		3,385,000		3,480,305
HSBC Bank plc 144A«			1.63			07/07/2014		4,000,000		4,012,768
Lloyds TSB Bank plc 144A			4.38			01/12/2015		2,910,000		2,972,254
Nordea Eiendomskreditt 144A			1.88			04/07/2014		6,500,000		6,563,018
Royal Bank of Scotland plc			3.95			09/21/2015		3,115,000		3,137,721
Standard Chartered plc 144A			3.85			04/27/2015		2,760,000		2,861,930
Swedbank Hypotek 144A			2.13			08/31/2016		3,000,000		3,000,381
Toronto Dominion Bank 144A«			0.88			09/12/2014		4,000,000		4,002,388
Westpac Banking Corporation ±144A			0.73			12/14/2012		4,000,000		4,005,024
										62,971,775
Diversified Financial Services: 1.54%
Abbey National Treasury Services plc			4.00			04/27/2016		3,000,000		2,949,057
BAT International Finance plc 144A			8.13			11/15/2013		2,000,000		2,218,614
UBS AG Stamford CT			2.25			08/12/2013		2,000,000		2,006,156
Volkswagen International Finance NV 144A	��		1.88			04/01/2014		2,770,000		2,800,121
										9,973,948

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

18 Wells Fargo Advantage Short-Term Bond Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Materials: 1.81%
Metals & Mining: 1.64%
Arcelormittal Company		5.38	%		06/01/2013	$	3,500,000	$	3,630,974
Rio Tinto Finance USA Limited		8.95			05/01/2014		3,000,000		3,502,266
Teck Resources Limited		10.25			05/15/2016		3,000,000		3,452,538
									10,585,778
Paper & Forest Products: 0.17%
PE Paper Escrow GmbH 144A		12.00			08/01/2014		1,000,000		1,090,000
Telecommunication Services: 1.46%
Diversified Telecommunication Services: 1.15%
Deutsche Telekom International Finance BV		5.25			07/22/2013		3,000,000		3,157,287
Telecom Italia Capital		5.25			11/15/2013		1,500,000		1,522,500
Telefonos de Mexico SA		5.50			01/27/2015		2,510,000		2,744,828
									7,424,615
Wireless Telecommunication Services: 0.31%
Telefonica Moviles Chile SA 144A		2.88			11/09/2015		2,000,000		1,998,140
Total Yankee Corporate Bonds and Notes (Cost $113,941,314)									115,742,954
Other: 0.08%
Gryphon Funding Limited, Pass-Through Entity (a)(i)(v)							358,151		96,701
VFNC Corporation, Pass-Through Entity, 0.24% ±(a)(i)144A(v)							953,297		409,918
Total Other (Cost $206,321)									506,619
	Yield
Short-Term Investments: 5.32%
U.S. Treasury Securities: 0.05%
U.S. Treasury Bill #		0.08			03/29/2012		300,000		299,981
						Shares
Investment Companies: 5.27%
Wells Fargo Advantage Cash Investment Money Market Fund, Institutional Class (l)(u)		0.02	%				21,118,512		21,118,512
Wells Fargo Securities Lending Cash Investments, LLC (v)(l)(u)(r)		0.15					12,951,391		12,951,391
									34,069,903
Total Short-Term Investments (Cost $34,369,900)									34,369,884

Total Investments in Securities
(Cost $657,436,997)	101.76	%		657,335,037
Other Assets and Liabilities, Net	(1.76	)		(11,384,249	)
Total Net Assets*	100.00	%	$	645,950,788

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage Short-Term Bond Fund 19

± Variable rate investment.

(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.

(i) Illiquid security.

(s) Security which has defaulted on payment of interest and/or principal.

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

(z) Zero coupon security. Rate represents yield to maturity.

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

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

# All or a portion of this security is segregated as collateral for investments in derivative instruments.

(l) Investment in an affiliate.

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

— Security which has defaulted on payment of interest and/or principal. The Fund has stopped accruing interest on this security.

(r) The investment company is exempt from registration under Section 3(c)(7) of the 1940 Act.

* Cost for federal income tax purposes is $657,604,638 and net unrealized appreciation (depreciation) consists of:

Gross unrealized appreciation	$	10,109,919
Gross unrealized depreciation		(10,379,520	)
Net unrealized depreciation	$	(269,601	)

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

20 Wells Fargo Advantage Short-Term Bond Fund Statement of Assets and Liabilities—February 29, 2012 (Unaudited)

Assets
Investments
In unaffiliated securities (including securities on loan), at value (see cost below)	$	623,265,134
In affiliated securities, at value (see cost below)		34,069,903
Total investments, at value (see cost below)		657,335,037
Receivable for investments sold		6,492,847
Principal paydown receivable		34,930
Receivable for Fund shares sold		633,533
Receivable for interest		5,588,160
Receivable for securities lending income		3,253
Prepaid expenses and other assets		54,571
Total assets		670,142,331
Liabilities
Dividends payable		221,786
Payable for investments purchased		9,688,495
Payable for Fund shares redeemed		773,588
Payable upon receipt of securities loaned		13,157,713
Payable for daily variation margin on open futures contracts		19,469
Advisory fee payable		160,554
Distribution fees payable		11,525
Due to other related parties		75,732
Accrued expenses and other liabilities		82,681
Total liabilities		24,191,543
Total net assets	$	645,950,788
NET ASSETS CONSIST OF
Paid-in capital	$	646,013,354
Overdistributed net investment income		(13,637	)
Accumulated net realized gains on investments		59,698
Net unrealized losses on investments		(108,627	)
Total net assets	$	645,950,788
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE1
Net assets – Class A	$	53,111,112
Shares outstanding – Class A		6,063,900
Net asset value per share – Class A		$8.76
Maximum offering price per share – Class A2		$9.03
Net assets – Class C	$	19,343,928
Shares outstanding – Class C		2,210,778
Net asset value per share – Class C		$8.75
Net assets – Institutional Class	$	321,092,274
Shares outstanding – Institutional Class		36,638,752
Net asset value per share – Institutional Class		$8.76
Net assets – Investor Class	$	252,403,474
Shares outstanding – Investor Class		28,830,706
Net asset value per share – Investor Class		$8.75
Investments in unaffiliated securities, at cost	$	623,367,094
Investments in affiliated securities, at cost	$	34,069,903
Total investments, at cost	$	657,436,997
Securities on loan, at value	$	12,874,998

1. The Fund has an unlimited number of authorized shares.

2. 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.

Statement of Operations—Six Months Ended February 29, 2012 (Unaudited) Wells Fargo Advantage Short-Term Bond Fund 21

Investment income
Interest	$	8,069,049
Income from affiliated securities		101,694
Securities lending income, net		13,486
Dividends		3,094
Total investment income		8,187,323
Expenses
Advisory fee		1,283,172
Administration fees
Fund level		162,802
Class A		44,441
Class C		15,794
Institutional Class		130,942
Investor Class		236,130
Shareholder servicing fees
Class A		69,440
Class C		24,678
Investor Class		310,195
Distribution fees
Class C		74,033
Custody and accounting fees		24,344
Professional fees		17,168
Registration fees		36,259
Shareholder report expenses		10,341
Trustees’ fees and expenses		7,124
Other fees and expenses		11,586
Total expenses		2,458,449
Less: Fee waivers and/or expense reimbursements		(266,071	)
Net expenses		2,192,378
Net investment income		5,994,945
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		312,331
Futures transactions		(55,019	)
Net realized gains on investments		257,312
Net change in unrealized gains (losses) on:
Unaffiliated securities		(62,375	)
Futures transactions		(3,896	)
Net change in unrealized gains (losses) on investments		(66,271	)
Net realized and unrealized gains (losses) on investments		191,041
Net increase in net assets resulting from operations	$	6,185,986

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

22 Wells Fargo Advantage Short-Term Bond Fund Statements of Changes in Net Assets

	Six Months Ended February 29, 2012 (Unaudited)						Year Ended August 31, 2011
Operations
Net investment income				$	5,994,945					$	12,334,886
Net realized gains on investments					257,312						3,596,470
Net change in unrealized gains (losses) on investments					(66,271	)					(1,292,627	)
Net increase in net assets resulting from operations					6,185,986						14,638,729
Distributions to shareholders from
Net investment income
Class A					(497,994	)					(1,012,375	)
Class C					(102,912	)					(201,120	)
Institutional Class					(3,451,348	)					(6,914,679	)
Investor Class					(2,187,586	)					(4,921,466	)
Total distributions to shareholders					(6,239,840	)					(13,049,640	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		1,406,061			12,259,109			4,351,540			38,071,832
Class C		394,953			3,438,657			1,173,221			10,272,685
Institutional Class		5,016,467			43,792,227			19,661,224			172,410,238
Investor Class		2,844,409			24,762,463			3,537,399			30,970,052
					84,252,456						251,724,807
Reinvestment of distributions
Class A		49,229			429,156			104,391			914,277
Class C		9,886			86,083			19,034			166,604
Institutional Class		226,708			1,978,048			432,972			3,795,511
Investor Class		222,733			1,941,029			488,922			4,280,138
					4,434,316						9,156,530
Payment for shares redeemed
Class A		(1,847,291	)		(16,121,413	)		(3,394,555	)		(29,710,138	)
Class C		(423,378	)		(3,686,153	)		(601,286	)		(5,262,203	)
Institutional Class		(5,924,418	)		(51,773,097	)		(16,189,801	)		(141,875,382	)
Investor Class		(2,617,843	)		(22,804,244	)		(6,193,074	)		(54,165,350	)
					(94,384,907	)					(231,013,073	)
Net increase (decrease) in net assets resulting from capital share transactions					(5,698,135	)					29,868,264
Total increase (decrease) in net assets					(5,751,989	)					31,457,353
Net assets
Beginning of period					651,702,777						620,245,424
End of period				$	645,950,788					$	651,702,777
Undistributed (overdistributed) net investment income				$	(13,637	)				$	231,258

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

Financial Highlights Wells Fargo Advantage Short-Term Bond Fund 23

(For a share outstanding throughout each period)

	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,						Year Ended May 31,
Class A				2011			20101			2010			20092			20082			20072
Net asset value, beginning of period	$	8.76		$	8.73		$	8.66		$	8.23		$	8.38		$	8.49		$	8.47
Net investment income		0.07			0.16			0.05			0.23			0.32			0.40			0.40
Net realized and unrealized gains (losses) on investments		0.01			0.04			0.07			0.46			(0.15	)		(0.11	)		0.03
Total from investment operations		0.08			0.20			0.12			0.69			0.17			0.29			0.43
Distributions to shareholders from
Net investment income		(0.08	)		(0.17	)		(0.05	)		(0.26	)		(0.32	)		(0.40	)		(0.41	)
Net asset value, end of period	$	8.76		$	8.76		$	8.73		$	8.66		$	8.23		$	8.38		$	8.49
Total return3		0.89	%		2.33	%		1.37	%		8.43	%		2.14	%		3.50	%		5.18	%
Ratios to average net assets (annualized)
Gross expenses		0.89	%		0.89	%		0.89	%		0.93	%		0.95	%		1.09	%		1.10	%
Net expenses		0.80	%		0.80	%		0.80	%		0.80	%		0.80	%		0.81	%		0.85	%
Net investment income		1.72	%		1.84	%		2.05	%		2.64	%		3.86	%		4.69	%		4.77	%
Supplemental data
Portfolio turnover rate		17	%		51	%		11	%		45	%		50	%		47	%		38	%
Net assets, end of period (000’s omitted)		$53,111			$56,555			$47,121			$41,369			$16,456			$11,904			$6,938

1. 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.

2. On June 19, 2008, Advisor Class was renamed Class A.

3. Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

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

24 Wells Fargo Advantage Short-Term Bond Fund Financial Highlights

(For a share outstanding throughout each period)

	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,						Year Ended May 31,
Class C				2011			20101			2010			2009			20082
Net asset value, beginning of period	$	8.75		$	8.73		$	8.65		$	8.22		$	8.37		$	8.45
Net investment income		0.04			0.10			0.03			0.16			0.26			0.05
Net realized and unrealized gains (losses) on investments		0.01			0.03			0.08			0.46			(0.15	)		(0.08	)
Total from investment operations		0.05			0.13			0.11			0.62			0.11			(0.03	)
Distributions to shareholders from
Net investment income		(0.05	)		(0.11	)		(0.03	)		(0.19	)		(0.26	)		(0.05	)
Net asset value, end of period	$	8.75		$	8.75		$	8.73		$	8.65		$	8.22		$	8.37
Total return3		0.52	%		1.45	%		1.29	%		7.61	%		1.35	%		(0.37	)%
Ratios to average net assets (annualized)
Gross expenses		1.64	%		1.65	%		1.65	%		1.68	%		1.67	%		1.85	%
Net expenses		1.55	%		1.55	%		1.55	%		1.55	%		1.53	%		1.58	%
Net investment income		0.97	%		1.10	%		1.28	%		1.70	%		2.72	%		3.56	%
Supplemental data
Portfolio turnover rate		17	%		51	%		11	%		45	%		50	%		47	%
Net assets, end of period (000’s omitted)		$19,344			$19,510			$14,299			$11,050			$1,199			$10

1. 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.

2. For the period from March 31, 2008 (commencement of class operations) to May 31, 2008.

3. Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

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

Financial Highlights Wells Fargo Advantage Short-Term Bond Fund 25

(For a share outstanding throughout each period)

	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,						Year May 31,
Institutional Class				2011			20101			2010			2009			2008			2007
Net asset value, beginning of period	$	8.77		$	8.74		$	8.66		$	8.24		$	8.39		$	8.49		$	8.48
Net investment income		0.09			0.19			0.06			0.25			0.35			0.43			0.44
Net realized and unrealized gains (losses) on investments		(0.01	)		0.04			0.08			0.45			(0.15	)		(0.10	)		0.01
Total from investment operations		0.08			0.23			0.14			0.70			0.20			0.33			0.45
Distributions to shareholders from
Net investment income		(0.09	)		(0.20	)		(0.06	)		(0.28	)		(0.35	)		(0.43	)		(0.44	)
Net asset value, end of period	$	8.76		$	8.77		$	8.74		$	8.66		$	8.24		$	8.39		$	8.49
Total return2		0.94	%		2.66	%		1.57	%		8.65	%		2.47	%		3.97	%		5.45	%
Ratios to average net assets (annualized)
Gross expenses		0.56	%		0.56	%		0.56	%		0.58	%		0.59	%		0.64	%		0.65	%
Net expenses		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%
Net investment income		2.03	%		2.17	%		2.38	%		2.84	%		4.22	%		5.08	%		5.14	%
Supplemental data
Portfolio turnover rate		17	%		51	%		11	%		45	%		50	%		47	%		38	%
Net assets, end of period (000’s omitted)		$321,092			$327,124			$292,080			$285,559			$77,900			$87,101			$80,153

1. 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.

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

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

26 Wells Fargo Advantage Short-Term Bond Fund Financial Highlights

(For a share outstanding throughout each period)

	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,						Year Ended May 31
Investor Class				2011			20101			2010			2009			2008			2007
Net asset value, beginning of period	$	8.76		$	8.73		$	8.66		$	8.23		$	8.38		$	8.48		$	8.47
Net investment income		0.07			0.16			0.05			0.23			0.32			0.40			0.40
Net realized and unrealized gains (losses) on investments		0.00			0.04			0.07			0.45			(0.15	)		(0.10	)		0.02
Total from investment operations		0.07			0.20			0.12			0.68			0.17			0.30			0.42
Distributions to shareholders from
Net investment income		(0.08	)		(0.17	)		(0.05	)		(0.25	)		(0.32	)		(0.40	)		(0.41	)
Net asset value, end of period	$	8.75		$	8.76		$	8.73		$	8.66		$	8.23		$	8.38		$	8.48
Total return2		0.76	%		2.30	%		1.36	%		8.38	%		2.09	%		3.57	%		5.01	%
Ratios to average net assets (annualized)
Gross expenses		0.92	%		0.92	%		0.94	%		0.99	%		0.99	%		1.23	%		1.27	%
Net expenses		0.83	%		0.83	%		0.84	%		0.85	%		0.85	%		0.87	%		0.90	%
Net investment income		1.69	%		1.82	%		2.02	%		2.73	%		3.87	%		4.70	%		4.71	%
Supplemental data
Portfolio turnover rate		17	%		51	%		11	%		45	%		50	%		47	%		38	%
Net assets, end of period (000’s omitted)		$252,403			$248,514			$266,746			$267,625			$250,572			$268,790			$299,346

1. 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.

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

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

Notes to Financial Statements (Unaudited) Wells Fargo Advantage Short-Term Bond Fund 27

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 Wells Fargo Advantage Short-Term Bond Fund (the “Fund”) which 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 the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Securities valuation

Fixed income securities with original maturities exceeding 60 days are valued based on available evaluated prices received from an independent pricing service approved by the 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 Fund’s 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.

Investments in equity securities are valued each business day as of the close of regular trading on the New York Stock Exchange, which is usually 4:00 p.m. (Eastern Time). Securities which are traded on a national or foreign securities exchange are valued at the last reported sales price, except that securities listed on The Nasdaq Stock Market, Inc. (“Nasdaq”) are valued at the Nasdaq Official Closing Price (“NOCP”), and if no NOCP is available, then at the last reported sales price. If no sales price is shown on the Nasdaq, the bid price will be used. In the absence of any sale of securities listed on the Nasdaq, and in the case of other securities (including U.S. Government obligations, but excluding debt securities maturing in 60 days or less), the price will be deemed “stale” and the valuations will be determined in accordance with the Fund’s Fair Value Procedures.

Investments in open-end mutual funds and non-registered investment companies are generally valued at net asset value.

Investments which are not valued using any of the methods discussed above, are valued at their fair value, as determined by procedures established in good faith and approved by the Board of Trustees.

Security loans

The Fund may lend its securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. The Fund continues to receive interest or dividends on the securities loaned. The 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 a securities lending transaction, the net asset value of the 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 the instrument in which collateral is invested. The amount of securities lending activity undertaken by the Fund fluctuates from time to time. In the event of default or bankruptcy by the borrower, the Fund may be prevented from recovering the loaned securities or gaining access to the collateral or may experience delays or costs in doing so. In 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 Fund lends its securities through an unaffiliated securities lending agent. Cash collateral received in connection with its 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

28 Wells Fargo Advantage Short-Term Bond Fund Notes to Financial Statements (Unaudited)

Wells Fargo Funds Management LLC (“Funds Management”) and is sub-advised by Wells Capital Management Incorporated (“Wells Capital Management”). Funds Management receives an 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 Statement of Operations.

For Wells Fargo Advantage Funds that participated in securities lending activity prior to February 13, 2009, certain structured investment vehicles purchased in a joint account by the former securities lending agent defaulted or were impaired. Certain of the Wells Fargo Advantage Funds still hold ownership interest in these structured investment vehicles, which have since been restructured as pass-through securities. If the Fund holds an ownership interest in such pass-through securities, information regarding this ownership interest can be found in the Portfolio of Investments under the category “Other”.

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.

Term loans

The 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

The Fund may be subject to interest rate risk in the normal course of pursuing its investment objectives. The Fund 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 when available. 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 Statement of Assets and Liabilities as an asset or liability and in the Statement 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.

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.

Notes to Financial Statements (Unaudited) Wells Fargo Advantage Short-Term Bond Fund 29

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 income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.

The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities.

Under the recently enacted Regulated Investment Company Modernization Act of 2010, the Fund is permitted to carry forward capital losses incurred in taxable years which began after December 22, 2010 for an unlimited period. However, any losses incurred are 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.

As of August 31, 2011, the Fund had net capital loss carryforwards, which were available to offset future net realized capital gains, in the amount of $72,329 expiring in 2014.

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 significant unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:

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

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

n Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

30 Wells Fargo Advantage Short-Term Bond Fund Notes to Financial Statements (Unaudited)

As of February 29, 2012, the inputs used in valuing the Fund’s assets, which are carried at fair value, were as follows:

Investments in Securities	Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Agency securities	$	0	$	55,572,235	$	4,244	$	55,576,479
Asset-backed securities		0		62,532,036		1,323		62,533,359
Corporate bonds and notes		0		296,483,695		0		296,483,695
Equity securities
Preferred stocks		0		1,622,504		0		1,622,504
Municipal bonds and notes		0		34,478,854		0		34,478,854
Non-agency mortgage back securities		0		42,683,861		0		42,683,861
U.S Treasury securities		13,336,828		0		0		13,336,828
Yankee corporate bonds and notes		0		115,742,954		0		115,742,954
Other		0		0		506,619		506,619
Short-term investments
Investment companies		21,118,512		12,951,391		0		34,069,903
U.S. Treasury securities		299,981		0		0		299,981
	$	34,755,321	$	622,067,530	$	512,186	$	657,335,037

Further details on the major security types listed above can be found in the Portfolio of Investments.

As of February 29, 2012, the inputs used in valuing the Fund’s other financial instruments, which are carried at fair value, were as follows:

Other financial instruments	Quoted Prices (Level 1)			Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Futures contracts+	$	(6,667	)	$	0	$	0	$	(6,667	)

+ Futures contracts are presented at the unrealized gains or losses on the instrument.

Transfers in and transfers out are recognized at the end of the reporting period. For the six months ended February 29, 2012, the Fund 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:

	Agency securities			Asset- backed securities			Corporate bonds and notes			Non-agency mortgage back securities			Other			Total
Balance as of August 31, 2011	$	112,644		$	13,509		$	1,636,231		$	1,922,151		$	691,965		$	4,376,500
Accrued discounts (premiums)		27			0			(9,902	)		(6	)		0			(9,881	)
Realized gains (losses)		(76,491	)		(302,764	)		(261	)		(2,931	)		0			(382,447	)
Change in unrealized gains (losses)		75,027			142,326			(29,746	)		9,919			(105,823	)		91,703
Purchases		0			148,252			0			0			0			148,252
Sales		(106,579	)		0			(1,596,322	)		(941,132	)		(79,523	)		(2,723,556	)
Transfer into Level 3		0			0			0			0			0			0
Transfer out of Level 3		(384	)		0			0			(988,001	)		0			(988,385	)
Balance as of February 29, 2012	$	4,244		$	1,323		$	0		$	0		$	506,619		$	512,186
Change in unrealized gains (losses) relating to securities still held at February 29, 2012	$	(983	)	$	(148,206	)	$	0		$	0		$	(144,797	)	$	(293,986	)

Transfers out of Level 3 into Level 2 are due to the availability of significant observable inputs which are currently used in the determination of the fair value of the securities.

Notes to Financial Statements (Unaudited) Wells Fargo Advantage Short-Term Bond Fund 31

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Advisory fee

The Trust has entered into an advisory contract with Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”). The 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 Fund.

Pursuant to the contract, Funds Management is entitled to receive an annual advisory fee starting at 0.40% and declining to 0.30% as the average daily net assets of the Fund increase. For the six months ended February 29, 2012, the advisory fee was equivalent to an annual rate of 0.39% of the Fund’s average daily net assets.

Funds Management has retained the services of certain sub-advisers to provide daily portfolio management to the Fund. The fees related to sub-advisory services are borne directly by Funds Management and do not increase the overall fees paid by the Fund. Wells Capital Management, an affiliate of Funds Management, is the sub-adviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.15% and declining to 0.05% as the average daily net assets of the Fund increase.

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 the Fund an annual fund level administration fee starting at 0.05% and declining to 0.03% as the average daily net assets of the Fund increase and a class level administration fee which is calculated based on the average daily net assets of each class as follows:

	Class Level Administration Fee
Class A, Class C		0.16	%
Institutional Class		0.08
Investor Class		0.19

Funds Management has contractually waived and/or reimbursed 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. Funds Management has committed through December 31, 2012, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.80% for Class A, 1.55% for Class C, 0.48% for Institutional Class and 0.83% for Investor Class.

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 29, 2012, Wells Fargo Funds Distributor, LLC received $1,935 from the sale of Class A shares and $20 and $495 in contingent deferred sales charges from redemptions of Class A and Class C shares, respectively.

Shareholder servicing fees

The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class C and Investor Class of the 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.

32 Wells Fargo Advantage Short-Term Bond Fund Notes to Financial Statements (Unaudited)

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding short-term securities (securities with maturities of one year or less at purchase date), for the six months ended February 29, 2012 were as follows:

Purchases at Cost				Sales Proceeds
U.S. Government		Non-U.S. Government		U.S. Government		Non-U.S. Government
$	23,644,221	$	110,510,456	$	12,511,523	$	89,256,946

6. DERIVATIVE TRANSACTIONS

During the six months ended February 29, 2012, the Fund entered into futures contracts for speculate on interest rates.

At February 29, 2012, the Fund had long/short futures contracts outstanding as follows:

Expiration Date		Contracts		Type		Contract Value at February 29, 2012		Net Unrealized Gains (Losses)
	June 2012		371 Long		2-Year U.S. Treasury Notes	$	81,706,954	$	(6,502	)
	June 2012		17 Short		5-Year U.S. Treasury Notes		2,093,922		(165	)

The Fund had an average notional amount of $74,406,170 in long futures contracts and $4,619,930 in short futures contracts during the six months ended February 29, 2012.

On February 29, 2012, the cumulative unrealized losses on futures contracts in the amount of $6,667 are reflected in net unrealized losses on investments on the Statement of Assets and Liabilities. The payable for daily variation margin on open futures contracts reflected in the Statement of Assets and Liabilities only represents the current day’s variation margin. The realized losses and change in unrealized gains (losses) on futures contracts are reflected in the Statement of Operations.

7. BANK BORROWINGS

The Trust (excluding the money market funds) and Wells Fargo Variable Trust are parties to a $150,000,000 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, an annual commitment fee equal to 0.10% of the unused balance is allocated to each participating fund. Prior to September 6, 2011, the revolving credit agreement was for $125,000,000 and the annual commitment fee was equal 0.125% of the unused balance. For the six months ended February 29, 2012, the Fund paid $489 in commitment fees.

For the six months ended February 29, 2012, there were no borrowings by the Fund under the agreement.

8. 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 Fund and, therefore, cannot be estimated.

9. NEW ACCOUNTING PRONOUNCEMENTS

In May 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-04 “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs”. ASU No. 2011-04 amends FASB ASC Topic 820, Fair Value Measurements and Disclosures, to establish common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with GAAP. The ASU is effective prospectively for interim and annual periods beginning after December 15, 2011. Management expects that adoption of the ASU will result in additional disclosures in the financial statements, as applicable.

Notes to Financial Statements (Unaudited) Wells Fargo Advantage Short-Term Bond Fund 33

In April 2011, FASB issued ASU No. 2011-03 “Reconsideration of Effective Control for Repurchase Agreements”. ASU No. 2011-03 amends FASB ASC Topic 860, Transfers and Servicing, specifically the criteria required to determine whether a repurchase agreement (repo) and similar agreements should be accounted for as sales of financial assets or secured borrowings with commitments. ASU No. 2011-03 changes the assessment of effective control by focusing on the transferor’s contractual rights and obligations and removing the criterion to assess its ability to exercise those rights or honor those obligations. This could result in changes to the way entities account for certain transactions including repurchase agreements, mortgage dollar rolls and reverse repurchase agreements. The ASU will become effective on a prospective basis for new transfers and modifications to existing transactions as of the beginning of the first interim or annual period beginning on or after December 15, 2011. Management has evaluated the impact of adopting the ASU and expects no significant changes.

34 Wells Fargo Advantage Short-Term Bond 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 wellsfargoadvantagefunds.com, or visiting the SEC Web site at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge on the Fund’s Web site at wellsfargoadvantagefunds.com or by visiting the SEC Web site at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available on the Fund’s Web site (wellsfargoadvantagefunds.com) 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 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.

Other Information (Unaudited) Wells Fargo Advantage Short-Term Bond Fund 35

BOARD OF TRUSTEES

The following table provides basic information about the Board of Trustees (the “Trustees”) of the Trust and Officers of the Trust. This table should be read in conjunction with the Prospectus and the Statement of Additional Information¹ of 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 137 funds comprising the Wells Fargo Funds 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 Year of Birth	Position Held and Length of Service	Principal Occupations During Past Five Years	Other Directorships During Past Five Years
Peter G. Gordon (Born 1942)	Trustee, since 1998; Chairman, since 2005 (Lead Trustee since 2001)	Co-Founder, Retired Chairman, President and CEO of Crystal Geyser Water Company. Trustee Emeritus, Colby College	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 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 40 portfolios as of 12/31/11); Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of Corporate Governance Research Program and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust

36 Wells Fargo Advantage Short-Term Bond Fund Other Information (Unaudited)

Name and Year of Birth	Position Held and Length of Service	Principal Occupations During Past Five Years	Other Directorships During Past Five Years
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	Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield 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. Director and Vice Chair of The Free Trust (non-profit corporation). Director of the American Chestnut Foundation (non-profit corporation).	Asset Allocation Trust

Officers

Name and Year of Birth	Position Held and 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 Senior 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.
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. 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 Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the Web site at wellsfargoadvantagefunds.com.

List of Abbreviations Wells Fargo Advantage Short-Term Bond Fund 37

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

ACB —  Agricultural Credit Bank

ADR —  American Depository 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

AUD —  Australian Dollar

BAN —  Bond Anticipation Notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazil Real

CAB —  Capital Appreciation Bond

CAD —  Canadian Dollar

CCAB —  Convertible Capital Appreciation Bond

CDA —  Community Development Authority

CDO —  Collateralized Debt Obligation

CHF —  Swiss Franc

COP —  Certificate of Participation

CR —  Custody Receipts

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

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-Traded Fund

EUR —  Euro

FFCB —  Federal Farm Credit Bank

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Authority

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British Pound

GDR —  Global Depository 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

HUF —  Hungarian Forint

IBC —  Insured Bond Certificate

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

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

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

PUTTER —  Puttable Tax-Exempt Receipts

R&D —  Research & Development

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real Estate Investment Trust

ROC —  Reset Option Certificates

SAVRS —  Select Auction Variable Rate Securities

SBA —  Small Business Authority

SEK —  Swedish Krona

SFHR —  Single Family Housing Revenue

SFMR —  Single Family Mortgage Revenue

SGD —  Singapore Dollar

SKK —  Slovakian Koruna

SPDR —  Standard & Poor’s Depositary Receipts

TAN —  Tax Anticipation Notes

TBA —  To Be Announced

TIPS —  Treasury Inflation-Protected Securities

TRAN —  Tax Revenue Anticipation Notes

TCR —  Transferable Custody Receipts

TRY —  Turkish Lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

XLCA —  XL Capital Assurance

ZAR —  South African Rand

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FOR MORE INFORMATION

More information about Wells Fargo Advantage Funds is available free upon request. To obtain literature, please write, e-mail, visit the Fund’s Web site, or call:

Wells Fargo Advantage Funds

P.O. Box 8266

Boston, MA 02266-8266

E-mail: wfaf@wellsfargo.com

Web site: wellsfargoadvantagefunds.com

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 wellsfargoadvantagefunds.com. 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

© 2012 Wells Fargo Funds Management, LLC. All rights reserved.

208526 04-12 SA221/SAR221 2-12

Wells Fargo Advantage

Short-Term High Yield Bond Fund

Semi-Annual Report

February 29, 2012

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Contents

Letter to Shareholders	2
Performance Highlights	5
Fund Expenses	7
Portfolio of Investments	8
Financial Statements
Statement of Assets and Liabilities	15
Statement of Operations	16
Statements of Changes in Net Assets	17
Financial Highlights	18
Notes to Financial Statements	22
Other Information	27
List of Abbreviations	30

The views expressed and any forward-looking statements are as of February 29, 2012, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Advantage Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements; the views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC, disclaims any obligation to publicly update or revise any views expressed or forward-looking statements.

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 FundsSM).
1996	Evergreen Investments and Keystone Funds merge.
1997	Wells Fargo launches Wells Fargo Advantage WealthBuilder PortfoliosSM, 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 a fund’s investment objectives, risks, charges, and expenses before investing. For a current prospectus and, if available, a summary prospectus, containing this and other information, visit wellsfargoadvantagefunds.com. 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.

“Dow Jones^®” and “Dow Jones Target Date Indexes^SM” are service marks of Dow Jones Trademark Holdings, LLC (“Dow Jones”), have been licensed to CME Group Index Services LLC (“CME Indexes”) and have been sublicensed for use for certain purposes by Global Index Advisors, Inc, and Wells Fargo Funds Management, LLC. The Wells Fargo Advantage Dow Jones Target Date Funds^SM based on the Dow Jones Target Date Indexes^SM, are not sponsored, endorsed, sold or promoted by Dow Jones, CME Indexes or their respective affiliates and none of them makes any representation regarding the advisability of investing in such product(s).

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

Not part of the semi-annual report.

Wells Fargo Advantage Funds offers more than 110 mutual funds across a wide range of asset classes, representing over $218 billion in assets under management, as of February 29, 2012.

Equity Funds
Asia Pacific Fund	Equity Value Fund	Precious Metals Fund
C&B Large Cap Value Fund	Global Opportunities Fund	Premier Large Company Growth Fund
C&B Mid Cap Value Fund	Growth Fund	Small Cap Opportunities Fund
Capital Growth Fund	Index Fund	Small Cap Value Fund
Common Stock Fund	International Equity Fund	Small Company Growth Fund
Disciplined U.S. Core Fund	International Value Fund	Small Company Value Fund
Discovery Fund†	Intrinsic Small Cap Value Fund	Small/Mid Cap Core Fund
Diversified Equity Fund	Intrinsic Value Fund	Small/Mid Cap Value Fund
Diversified International Fund	Intrinsic World Equity Fund	Special Mid Cap Value Fund
Diversified Small Cap Fund	Large Cap Core Fund	Special Small Cap Value Fund
Emerging Growth Fund	Large Cap Growth Fund	Specialized Technology Fund
Emerging Markets Equity Fund	Large Company Value Fund	Strategic Large Cap Growth Fund
Endeavor Select Fund†	Omega Growth Fund	Traditional Small Cap Growth Fund
Enterprise Fund†	Opportunity 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
Absolute Return Fund	WealthBuilder Equity Portfolio†	Target 2020 Fund†
Asset Allocation Fund	WealthBuilder Growth Allocation Portfolio†	Target 2025 Fund†
Conservative Allocation Fund	WealthBuilder Growth Balanced Portfolio†	Target 2030 Fund†
Diversified Capital Builder Fund	WealthBuilder Moderate Balanced Portfolio†	Target 2035 Fund†
Diversified Income Builder Fund	WealthBuilder Tactical Equity Portfolio†	Target 2040 Fund†
Growth Balanced Fund	Target Today Fund†	Target 2045 Fund†
Index Asset Allocation Fund	Target 2010 Fund†	Target 2050 Fund†
Moderate Balanced Fund	Target 2015 Fund†	Target 2055 Fund†
WealthBuilder Conservative Allocation Portfolio†
Money Market Funds
100% Treasury Money Market Fund	Heritage Money Market Fund†	National Tax-Free Money Market Fund
California Municipal Money Market Fund	Money Market Fund	Prime Investment Money Market Fund
Cash Investment Money Market Fund	Municipal Cash Management Money Market Fund	Treasury Plus Money Market Fund
Government Money Market Fund	Municipal Money Market Fund
Variable Trust Funds1
VT Discovery Fund†	VT Intrinsic Value Fund	VT Small Cap Growth Fund
VT Index Asset Allocation Fund	VT Omega Growth Fund	VT Small Cap Value Fund
VT International Equity Fund	VT Opportunity Fund†	VT Total Return Bond 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 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 Dow Jones Target 2055 Fund^SM, Wells Fargo Advantage Heritage Money Market Fund^SM, Wells Fargo Advantage VT Discovery Fund^SM, and Wells Fargo Advantage VT Opportunity Fund^SM are referred to as the Discovery Fund, Endeavor Select Fund, Enterprise Fund, Opportunity 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, Target 2055 Fund, Heritage Money Market Fund, VT Discovery Fund, and VT Opportunity Fund, respectively.

Not part of the semi-annual report.

2 Wells Fargo Advantage Short-Term High Yield Bond Fund Letter to Shareholders

Karla M. Rabusch,

President

Wells Fargo Advantage Funds

The theme for the period was a shift from risk aversion in the first half to burgeoning trends of improving investor confidence in the second half, which significantly improved pricing in the lower-rated asset classes.

On the whole, investment-grade fixed-income securities performed positively during the period, but the strongest returns came from the high-yield market.

Dear Valued Shareholder:

We are pleased to offer you this semi-annual report for the Wells Fargo Advantage Short-Term High Yield Bond Fund, which covers the six-month period that ended February 29, 2012. During the period, fixed-income performance was best among the lower-rated securities, as improved investor confidence in the U.S. economy and the U.S. credit markets encouraged investors to return to riskier asset classes.

The period began with heightened risk aversion but ended with stronger investor confidence.

The six-month period began with the worsening of the Greek crisis, which amplified risk aversion across the global credit markets. This in turn led to a powerful rally in U.S. Treasuries and a sharp decline in high-yield bond prices, most notably in the lowest-quality credit tiers. During this time, most investment-grade fixed-income markets continued to generate positive returns—although certain areas of the riskiest segments of the markets declined—and U.S. Treasury yields reached the lowest levels in decades, even surpassing the low yield levels reached in the summer of 2010.

The last three months of the period were characterized by a strong reversal of the trends of the first three months. In October 2011, the high-yield market recovered significantly, benefiting from indications of improving policy with regard to managing the debt crisis from Europe and the formal announcement of a European debt deal late in the month. Due to renewed concerns about the European Union’s ability to manage the debt crisis, November 2011 saw a modest decline in investment-grade corporate bond prices and a sharp correction in high-yield corporate bonds, but another strong recovery in pricing started in December and carried into the first two months of 2012. Investor confidence strengthened as the U.S. economy demonstrated signs of sustainable growth and U.S. credit markets began to show some resistance to the credit problems of Europe. Thus, the theme for the period was a shift from risk aversion in the first half to burgeoning trends of improving investor confidence in the second half, which significantly improved pricing in the lower-rated asset classes.

On the whole, investment-grade fixed-income securities performed positively during the period, but the strongest returns came from the high-yield market. In fact, the best returns for the six-month period came from the lowest-rated credit tiers, despite the fact that they significantly underperformed in August and September 2011. Similar trends were true in the structured products sector, as lower-rated commercial mortgage-backed securities were among the best performers for the period, despite underperforming in the first two months.

The Federal Reserve launched Operation Twist in September.

With economic concerns and credit woes escalating in Europe and some continued uncertainty about the growth outlook in the U.S. during August and September 2011, the Federal Reserve (Fed) intervened yet again with monetary accommodations—this time with “Operation Twist,” which was announced and launched in September 2011. With Operation Twist, the Fed endeavored to flatten the yield curve and drive long-term rates down by selling short-term Treasuries and using the proceeds to purchase long-term Treasuries. The Fed stated that it is unlikely to raise rates before 2014, which should keep yields on Treasuries low. Despite this announcement, problems in Europe caused Treasuries to continue to rally in the first 3 months of the period, while credit spreads on corporate and

Letter to Shareholders Wells Fargo Advantage Short-Term High Yield Bond Fund 3

securitized sectors widened with increasing risk aversion. However, with an improved U.S. economic outlook and greater investor confidence, the last three months of the period saw a slight decline in U.S. Treasury prices and significant improvement in high-yield corporate bond prices. Credit spreads in the corporate and securitized sectors broadly tightened in December 2011 and January and February 2012.

Although U.S. economic conditions appear to have improved over the course of the period, the recovery continues to face some headwinds in the form of languishing housing values and elevated unemployment levels, which may continue to create some volatility in the fixed-income markets. 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. While heightened volatility may be uncomfortable to experience in the short term, we believe it can lead to unique opportunities to add relative value for investors with long-term investment horizons.

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

Periods of uncertainty can present challenges, but 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. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Advantage Funds offers more than 110 mutual funds and other investments spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance.

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 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.

Thank you for choosing to invest with Wells Fargo Advantage Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs. For current information about your fund investments, contact your investment professional, visit our Web site at wellsfargoadvantagefunds.com, or call us directly at 1-800-222-8222. We are available 24 hours a day, 7 days a week.

Sincerely,

Karla M. Rabusch

President

Wells Fargo Advantage Funds

4 Wells Fargo Advantage Short-Term High Yield Bond Fund Letter to Shareholders

Notice to Shareholders

The Board of Trustees for Wells Fargo Advantage Funds has unanimously approved the following modifications to certain net asset value (NAV) waiver privileges and commission schedules:

n Effective May 1, 2012, automatic investment plan (AIP) purchases and proceeds received from systematic withdrawals will no longer qualify for NAV repurchase privileges.

n Effective May 1, 2012, discretionary rights to waive the upfront commission for Class C and “jumbo” Class A share purchases will no longer be granted to broker/dealers. However, we will continue to waive the Class C shares contingent deferred sales charge for redemptions by employer-sponsored retirement plans where the dealer of record waived its commission at the time of purchase.

n Effective July 31, 2012, NAV purchase privileges for former Evergreen Class IS and Class R shareholders are being modified to remove the ability to purchase Class A shares at NAV unless those shares are held directly with the Fund on or after July 31, 2012.

Please contact your investment professional or call us directly at 1-800-222-8222 if you have any questions on this Notice to Shareholders.

Performance Highlights (Unaudited) Wells Fargo Advantage Short-Term High Yield Bond Fund 5

INVESTMENT OBJECTIVE

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

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

TEN LARGEST LONG-TERM HOLDINGS1 (AS OF FEBRUARY 29, 2012)
EchoStar DBS Corporation, 6.62%, 10/01/2014	1.20%
Virgin Media Finance plc, 9.50%, 08/15/2016	1.19%
SBA Telecommunications Incorporated, 8.00%, 08/15/2016	1.19%
SPX Corporation, 7.62%, 12/15/2014	1.18%
Crown Castle International Corporation, 9.00%, 01/15/2015	1.15%
CCH II Capital Corporation, 13.50%, 11/30/2016	1.13%
Ford Motor Credit Company LLC, 8.70%, 10/01/2014	1.12%
R.R. Donnelley & Sons Company, 4.95%, 04/01/2014	1.07%
CIT Group Incorporated, 5.25%, 04/01/2014	1.07%
Embarq Corporation, 7.08%, 06/01/2016	1.03%

CREDIT QUALITY²
(AS OF FEBRUARY 29, 2012)

1. The ten largest long-term holdings are calculated based on the value of the securities divided by total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

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 & Poor’s rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Ratings from A to CCC may be modified by the addition of a plus (+) or minus (–) sign to show relative standing within the rating categories. Standard & Poor’s rates the creditworthiness of short-term notes from SP-1 (highest) to SP-3 (lowest). Moody’s rates the creditworthiness of bonds, ranging from Aaa (highest) to C (lowest). Ratings Aa to B may be modified by the addition of a number 1 (highest) to 3 (lowest) to show relative standing within the ratings categories. Moody’s rates the creditworthiness of short-term U.S. tax-exempt municipal securities from MIG 1/VMIG 1 (highest) to SG (lowest). Fitch rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). 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.

6 Wells Fargo Advantage Short-Term High Yield Bond Fund Performance Highlights (Unaudited)

AVERAGE ANNUAL TOTAL RETURN³ (%) (AS OF FEBRUARY 29, 2012)

			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 (SSTHX)		02/29/2000		2.04		1.03		4.00		4.28		5.19		4.16		4.63		4.60		1.02%		0.82%
Class C (WFHYX)		03/31/2008		3.80		2.38		3.85		3.89		4.80		3.38		3.85		3.89		1.77%		1.57%
Administrator Class (WDHYX)		07/30/2010										5.41		4.33		4.68		4.62		0.96%		0.66%
Investor Class (STHBX)		06/30/1997										5.31		4.13		4.60		4.63		1.05%		0.85%
Short-Term High Yield Bond Index III6												5.72		5.63		7.41		7.52
BofA Merrill Lynch High Yield U.S. Corporates, Cash Pay, BB Rated, 1-5 Year Index7												5.73		5.74		7.32		6.82

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

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 and assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s Web site – wellsfargoadvantagefunds.com.

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.

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 charge 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.

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. 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.

3. Historical performance shown for the Class A shares through June 19, 2008 includes Advisor Class expenses. Historical performance shown for the Class C shares prior to their inception reflects the performance of the Investor Class shares, adjusted to include the higher expenses applicable to Class C shares. Historical performance shown for the Administrator Class shares prior to their 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.

4. Reflects the expense ratios as stated in the most recent prospectuses.

5. The Adviser has committed through December 31, 2012 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver, excluding certain expenses, at 0.81% for Class A, 1.56% for Class C, 0.65% for Administrator Class and 0.84% for Investor Class. Without this cap, the Fund’s returns would have been lower.

6. The Short-Term High Yield Bond Index III is comprised of 70% of BofA Merrill Lynch High Yield U.S. Corporates, Cash Pay, BB Rated, 1-5 Year Index and 30% of 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.

7. 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.

Fund Expenses (Unaudited) Wells Fargo Advantage Short-Term High Yield Bond Fund 7

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and contingent deferred sales charges (if any) on redemptions 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, 2011 to February 29, 2012.

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 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.

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) and contingent deferred sales charges. 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 Account Value 09-01-2011		Ending Account Value 02-29-2012		Expenses Paid During the  Period1		Net Annual Expense Ratio
Class A
Actual	$	1,000.00	$	1,051.91	$	4.13		0.81	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.84	$	4.07		0.81	%
Class C
Actual	$	1,000.00	$	1,048.01	$	7.94		1.56	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.11	$	7.82		1.56	%
Administrator Class
Actual	$	1,000.00	$	1,054.06	$	3.32		0.65	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.63	$	3.27		0.65	%
Investor Class
Actual	$	1,000.00	$	1,053.07	$	4.29		0.84	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.69	$	4.22		0.84	%

1. Expenses paid is equal to the annualized expense ratio of each class 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).

8 Wells Fargo Advantage Short-Term High Yield Bond Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Corporate Bonds and Notes: 67.69%
Consumer Discretionary: 20.80%
Auto Components: 2.24%
American Axle & Manufacturing Holdings Incorporated		5.25	%		02/11/2014	$	7,000,000	$	7,140,000
American Axle & Manufacturing Holdings Incorporated 144A		9.25			01/15/2017		2,500,000		2,800,000
Tenneco Incorporated		8.13			11/15/2015		5,000,000		5,206,300
TRW Automotive Incorporated 144A		8.88			12/01/2017		3,325,000		3,699,063
UR Financing Escrow Corporation 144A		5.75			07/15/2018		500,000		513,750
									19,359,113
Diversified Consumer Services: 0.90%
Service Corporation International		6.75			04/01/2015		3,300,000		3,642,374
Service Corporation International		7.38			10/01/2014		3,740,000		4,132,700
									7,775,074
Hotels, Restaurants & Leisure: 2.12%
Firekeepers Development Authority 144A		13.88			05/01/2015		7,000,000		7,848,750
MGM Resorts International		10.38			05/15/2014		4,000,000		4,550,000
Starwood Hotels & Resorts Worldwide Incorporated		7.88			10/15/2014		3,000,000		3,435,000
Tunica-Biloxi Gaming Authority 144A		9.00			11/15/2015		2,580,000		2,496,150
									18,329,900
Household Durables: 2.43%
DR Horton Incorporated		6.13			01/15/2014		3,000,000		3,168,750
Jarden Corporation		8.00			05/01/2016		6,500,000		7,109,375
Mohawk Industries Incorporated		6.88			01/15/2016		5,000,000		5,531,250
Mohawk Industries Incorporated Series D		7.20			04/15/2012		2,107,000		2,109,634
Pulte Homes Incorporated		5.25			01/15/2014		3,000,000		3,090,000
									21,009,009
Leisure Equipment & Products: 0.64%
Easton Bell Sports Incorporated		9.75			12/01/2016		5,000,000		5,550,000
Media: 8.24%
Belo Corporation		6.75			05/30/2013		2,000,000		2,090,000
Belo Corporation		8.00			11/15/2016		1,580,000		1,759,725
CCH II Capital Corporation		13.50			11/30/2016		8,500,000		9,775,000
Clear Channel Communications Incorporated		9.25			12/15/2017		5,000,000		5,500,000
CSC Holdings LLC		8.50			04/15/2014		7,000,000		7,770,000
EchoStar DBS Corporation		6.63			10/01/2014		9,505,000		10,360,450
Gannett Companies Incorporated		6.38			04/01/2012		2,000,000		2,005,000
Gannett Companies Incorporated		8.75			11/15/2014		5,000,000		5,625,000
Insight Communications 144A		9.38			07/15/2018		6,355,000		7,292,363
Lamar Media Corporation Series C		9.75			04/01/2014		7,500,000		8,531,250
Sirius XM Radio Incorporated 144A		8.75			04/01/2015		5,500,000		6,242,500
Sirius XM Radio Incorporated 144A		9.75			09/01/2015		4,000,000		4,330,000
									71,281,288

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage Short-Term High Yield Bond Fund 9

Security Name	Interest Rate			Maturity Date		Principal		Value
Multiline Retail: 0.32%
Macy’s Incorporated		5.75	%		07/15/2014	$	2,500,000	$	2,750,368
Specialty Retail: 2.21%
Avis Budget Car Rental LLC ±«		3.00			05/15/2014		7,150,000		6,935,500
Limited Brands Incorporated		5.25			11/01/2014		7,000,000		7,446,250
Simmons Bedding Company 144A		11.25			07/15/2015		4,540,000		4,693,180
									19,074,930
Textiles, Apparel & Luxury Goods: 1.70%
Hanesbrands Incorporated		8.00			12/15/2016		6,000,000		6,675,000
Jones Group Incorporated		5.13			11/15/2014		8,000,000		7,990,000
									14,665,000
Consumer Staples: 3.87%
Beverages: 0.84%
Constellation Brands Incorporated		8.38			12/15/2014		6,385,000		7,246,975
Food & Staples Retailing: 0.70%
Albertsons Incorporated		7.25			05/01/2013		5,750,000		6,030,313
Food Products: 1.54%
Dole Food Company Incorporated		13.88			03/15/2014		5,500,000		6,297,500
Smithfield Foods Incorporated		10.00			07/15/2014		6,000,000		7,035,000
									13,332,500
Household Products: 0.79%
Spectrum Brands		9.50			06/15/2018		6,000,000		6,840,000
Energy: 9.71%
Oil, Gas & Consumable Fuels: 9.71%
Arch Coal Incorporated		8.75			08/01/2016		6,000,000		6,600,000
Arch Western Finance LLC		6.75			07/01/2013		1,658,000		1,666,290
Berry Petroleum Companies Class A		10.25			06/01/2014		2,000,000		2,300,000
Bill Barrett Corporation		9.88			07/15/2016		6,000,000		6,630,000
Chesapeake Energy Corporation		9.50			02/15/2015		7,700,000		8,855,000
CITGO Petroleum Corporation 144A		11.50			07/01/2017		4,000,000		4,480,000
Coffeyville Resources Refining & Marketing LLC 144A		9.00			04/01/2015		5,000,000		5,350,000
Encore Acquisition Company		9.50			05/01/2016		2,500,000		2,793,750
Forest Oil Corporation		8.50			02/15/2014		6,000,000		6,510,000
Holly Energy Partners LP		6.25			03/01/2015		7,675,000		7,675,000
Kinder Morgan Incorporated		5.15			03/01/2015		7,000,000		7,323,745
Newfield Exploration Company		6.63			09/01/2014		4,000,000		4,060,000
Petrohawk Energy Corporation		10.50			08/01/2014		5,500,000		6,111,875
Plains Exploration & Production Company		10.00			03/01/2016		1,500,000		1,672,500
Quicksilver Resources Incorporated «		8.25			08/01/2015		3,000,000		3,052,500
Tesoro Corporation		6.25			11/01/2012		2,000,000		2,050,000
Tesoro Corporation		6.63			11/01/2015		3,545,000		3,615,900
Whiting Petroleum Corporation		7.00			02/01/2014		3,000,000		3,210,000
									83,956,560

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

10 Wells Fargo Advantage Short-Term High Yield Bond Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Financials: 6.86%
Commercial Banks: 1.76%
AmSouth Bancorporation		4.85	%		04/01/2013	$	5,014,000	$	5,032,803
CIT Group Incorporated 144A		4.75			02/15/2015		1,000,000		1,015,000
CIT Group Incorporated 144A		5.25			04/01/2014		9,000,000		9,202,500
									15,250,303
Consumer Finance: 3.94%
Ally Financial Incorporated		5.50			02/15/2017		1,500,000		1,519,433
Ford Motor Credit Company LLC		3.88			01/15/2015		2,000,000		2,050,456
Ford Motor Credit Company LLC		8.70			10/01/2014		8,500,000		9,667,586
GMAC LLC		6.75			12/01/2014		1,000,000		1,056,250
GMAC LLC		7.50			12/31/2013		3,000,000		3,195,000
JBS USA Finance Incorporated		11.63			05/01/2014		2,000,000		2,317,500
Nielsen Finance LLC		11.63			02/01/2014		6,975,000		8,108,438
SLM Corporation		5.00			10/01/2013		6,000,000		6,144,000
									34,058,663
Diversified Financial Services: 0.86%
Ally Financial Incorporated		4.50			02/11/2014		3,000,000		3,030,000
Dolphin Subsidiary II Incorporated 144A		6.50			10/15/2016		4,000,000		4,360,000
									7,390,000
REIT: 0.30%
Host Marriott LP Series Q		6.75			06/01/2016		2,515,000		2,599,881
Health Care: 2.43%
Health Care Equipment & Supplies: 0.93%
Fresenius US Finance II Incorporated 144A		9.00			07/15/2015		7,000,000		8,085,000
Health Care Providers & Services: 1.50%
Community Health Systems Incorporated Series WI «		8.88			07/15/2015		4,500,000		4,713,750
HCA Incorporated		6.25			02/15/2013		2,000,000		2,060,000
Health Management plc		6.13			04/15/2016		5,930,000		6,189,438
									12,963,188
Industrials: 12.56%
Aerospace & Defense: 1.39%
Alliant Techsystems Incorporated		6.75			04/01/2016		5,000,000		5,125,000
Geoeye Incorporated		9.63			10/01/2015		6,250,000		6,906,250
									12,031,250
Commercial Services & Supplies: 6.29%
Acco Brands Corporation		10.63			03/15/2015		5,000,000		5,518,800
ARAMARK Corporation ±		4.05			02/01/2015		2,500,000		2,490,625
ARAMARK Corporation		8.50			02/01/2015		3,000,000		3,078,780
Case Corporation		7.25			01/15/2016		5,500,000		6,063,750
Casella Waste Systems Incorporated		11.00			07/15/2014		5,000,000		5,418,750
Corrections Corporation of America		6.25			03/15/2013		504,000		504,630

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage Short-Term High Yield Bond Fund 11

Security Name	Interest Rate			Maturity Date		Principal		Value
Commercial Services & Supplies (continued)
Deluxe Corporation		5.13	%		10/01/2014	$	5,000,000	$	5,062,500
International Lease Finance Corporation		5.65			06/01/2014		3,000,000		3,067,500
International Lease Finance Corporation 144A		6.50			09/01/2014		5,000,000		5,325,000
Libbey Glass Incorporated		10.00			02/15/2015		8,000,000		8,590,000
R.R. Donnelley & Sons Company		4.95			04/01/2014		9,000,000		9,225,000
									54,345,335
Machinery: 2.76%
Case New Holland Incorporated		7.75			09/01/2013		3,500,000		3,745,000
SPX Corporation		7.63			12/15/2014		9,085,000		10,197,913
Terex Corporation		10.88			06/01/2016		5,000,000		5,681,250
Westinghouse Air Brake Technology Corporation		6.88			07/31/2013		4,000,000		4,200,000
									23,824,163
Professional Services: 0.66%
FTI Consulting Incorporated		7.75			10/01/2016		5,500,000		5,726,875
Trading Companies & Distributors: 1.46%
Ashtead Capital Incorporated 144A		9.00			08/15/2016		5,500,000		5,747,500
United Rentals North America Incorporated		10.88			06/15/2016		6,000,000		6,855,000
									12,602,500
Information Technology: 0.80%
Electronic Equipment, Instruments & Components: 0.80%
Jabil Circuit Incorporated		7.75			07/15/2016		6,000,000		6,960,000
Materials: 3.07%
Containers & Packaging: 2.38%
Ball Corporation		7.13			09/01/2016		7,000,000		7,665,000
Berry Plastics Corporation		8.25			11/15/2015		5,000,000		5,375,000
Silgan Holdings Incorporated		7.25			08/15/2016		7,000,000		7,560,000
									20,600,000
Metals & Mining: 0.36%
United States Steel Corporation		5.65			06/01/2013		3,000,000		3,082,500
Paper & Forest Products: 0.33%
Neenah Paper Incorporated		7.38			11/15/2014		2,834,000		2,855,255
Telecommunication Services: 6.74%
Diversified Telecommunication Services: 4.56%
Cincinnati Bell Incorporated		7.00			02/15/2015		6,000,000		6,060,000
Frontier Communications Corporation		7.88			04/15/2015		2,000,000		2,145,000
Frontier Communications Corporation		8.25			05/01/2014		6,340,000		6,894,750
Intelsat Jackson Holdings Limited		9.50			06/15/2016		2,000,000		2,105,000
Qwest Communications International Incorporated Series B		7.50			02/15/2014		5,500,000		5,519,250
SBA Telecommunications Incorporated		8.00			08/15/2016		9,500,000		10,236,250
Windstream Corporation		8.13			08/01/2013		6,000,000		6,435,000
									39,395,250

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

12 Wells Fargo Advantage Short-Term High Yield Bond Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Wireless Telecommunication Services: 2.18%
Crown Castle International Corporation		9.00	%		01/15/2015	$	9,000,000	$	9,922,500
Embarq Corporation		7.08			06/01/2016		8,000,000		8,911,672
									18,834,172
Utilities: 0.85%
Independent Power Producers & Energy Traders: 0.85%
AES Corporation		7.75			03/01/2014		6,750,000		7,340,625
Total Corporate Bonds and Notes (Cost $574,878,604)									585,145,990
Municipal Bonds and Notes: 1.05%
California: 0.57%
California Judgment Trust (Miscellaneous Revenue) ±		1.70			06/01/2015		5,165,000		4,898,228
Michigan: 0.48%
Wayne County MI (Tax Revenue)		5.00			09/15/2013		4,131,000		4,152,646
Total Municipal Bonds and Notes (Cost $8,997,050)									9,050,874
Non-Agency Mortgage Backed Securities: 0.01%
Salomon Brothers Mortgage Securities VII Series 1994-5 Class B2 ±		2.84			04/25/2024		89,572		73,406
Total Non-Agency Mortgage Backed Securities (Cost $89,695)									73,406
Term Loans: 21.74%
American Rock Salt Holdings LLC		5.50			04/25/2017		5,955,000		5,533,922
Atlantic Broadband Finance LLC		4.00			03/08/2016		4,322,312		4,303,423
Biomet Incorporated		3.46			03/25/2015		6,377,465		6,306,420
Chrysler Group LLC		6.00			05/24/2017		3,980,000		3,989,472
Cinemark USA Incorporated		3.63			04/29/2016		2,917,385		2,911,929
CommScope Incorporated		5.00			01/14/2018		2,977,500		2,976,130
Community Health Systems Incorporated		3.00			07/25/2014		3,712,541		3,663,165
Community Health Systems Incorporated		3.25			07/25/2014		190,632		188,097
Convatec Limited		5.75			12/22/2016		495,000		493,609
DaVita Incorporated		4.50			10/20/2016		4,950,000		4,961,336
Dean Foods Company		2.08			04/02/2014		2,426,137		2,382,564
Delphi Corporation		3.50			03/31/2017		4,068,421		4,063,295
Dollar General Corporation		3.14			07/07/2014		4,659,542		4,660,054
Education Management LLC		2.38			06/03/2013		1,978,630		1,923,605
Federal Mogul Corporation		2.19			12/28/2015		1,337,420		1,279,242
Federal Mogul Corporation		2.20			12/29/2014		2,621,343		2,507,315
Freescale Semiconductor		4.52			12/01/2016		2,990,221		2,913,611
Getty Images Incorporated		5.25			11/07/2016		3,922,756		3,937,466
Goodman Global Holdings Incorporated		5.75			10/28/2016		4,191,083		4,211,452
HCA Incorporated		2.50			11/18/2013		6,826,832		6,788,465
Hertz Corporation		3.75			03/09/2018		496,250		494,930
Iasis Healthcare Corporation		5.00			05/03/2018		5,955,000		5,917,781
Intelsat Jackson Holdings SA		5.25			04/02/2018		3,970,000		3,963,251
KAR Auction Services Incorporated		5.00			05/19/2017		4,965,763		4,959,556
Manitowoc Company Incorporated		4.25			11/13/2017		4,150,000		4,137,550
MedAssets Incorporated		5.25			11/16/2016		3,189,409		3,190,079

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage Short-Term High Yield Bond Fund 13

Security Name	Interest Rate			Maturity Date		Principal		Value
Term Loans (continued)
MetroPCS Wireless Incorporated <		4.11	%		11/04/2016	$	7,450,330	$	7,385,140
Michaels Stores Incorporated		5.13			07/31/2016		6,000,000		5,965,500
NBTY Incorporated		4.25			10/02/2017		5,172,889		5,170,199
Neiman Marcus Group		4.75			05/16/2018		4,000,000		3,968,000
Novelis Incorporated		4.00			03/10/2017		2,970,000		2,955,150
Omnova Solutions Incorporated		5.75			05/31/2017		2,345,313		2,331,639
Phillips Van Heusen Corporation		3.50			05/06/2016		3,092,630		3,095,723
Pinnacle Foods Finance LLC		2.84			04/02/2014		2,985,812		2,967,659
Reynolds Group Holdings Incorporated		6.50			02/09/2018		3,927,287		3,962,632
RMK Acquisition Corporation (Aramark)		0.15			01/27/2014		253,281		251,136
RMK Acquisition Corporation (Aramark)		2.45			01/27/2014		2,612,497		2,590,369
Seminole Tribe of Florida		2.13			03/05/2014		680,334		670,693
Seminole Tribe of Florida		2.13			03/05/2014		378,266		372,906
Seminole Tribe of Florida		2.13			03/05/2014		1,365,158		1,345,814
Sensata Technologies BV		4.00			05/11/2018		4,975,000		4,964,602
Styron LLC		6.01			08/02/2017		495,000		446,327
Sungard Data Systems Incorporated		2.00			02/28/2014		1,957,431		1,952,870
Sungard Data Systems Incorporated		4.06			02/26/2016		1,546,473		1,542,916
Swift Transportation Companies Incorporated		6.00			12/15/2017		4,000,000		3,990,000
Swift Transportation Companies Incorporated		6.00			12/21/2016		7,050,324		7,050,324
Syniverse Technologies Incorporated		5.25			12/21/2017		990,000		991,703
Terex Corporation		5.50			04/28/2017		1,995,000		2,009,125
Time Warner Telecom Holdings		3.50			12/29/2016		6,014,150		5,989,071
Toys R Us		5.25			09/01/2016		2,955,000		2,957,837
Toys R Us		6.00			06/14/2018		2,977,500		2,942,157
Transdigm Incorporated		4.00			02/14/2017		3,960,000		3,956,515
UCI International Incorporated		5.50			07/26/2017		3,616,722		3,625,764
Vanguard Health Holding Company LLC		5.00			01/29/2016		3,930,523		3,920,697
West Corporation		4.62			07/15/2016		5,928,923		5,930,168
Total Term Loans (Cost $188,095,660)									187,960,355
Yankee Corporate Bonds and Notes: 3.97%
Consumer Discretionary: 1.72%
Media: 1.72%
Videotron Limited		6.88			01/15/2014		4,612,000		4,629,295
Virgin Media Finance plc		9.50			08/15/2016		9,000,000		10,260,000
									14,889,295
Financials: 0.62%
Consumer Finance: 0.62%
Ineos Finance plc 144A		9.00			05/15/2015		5,000,000		5,300,000
Materials: 1.63%
Metals & Mining: 0.73%
FMG Resources Limited 144A		7.00			11/01/2015		6,000,000		6,345,000
Paper & Forest Products: 0.90%
PE Paper Escrow GmbH 144A		12.00			08/01/2014		4,805,000		5,237,450

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

14 Wells Fargo Advantage Short-Term High Yield Bond Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Paper & Forest Products (continued)
UPM Kymmene Corporation 144A		5.63	%		12/01/2014	$	2,500,000	$	2,525,000
									7,762,450
Total Yankee Corporate Bonds and Notes (Cost $34,244,391)									34,296,745
Other: 0.01%
Gryphon Funding Limited, Pass-Through Entity (v)(i)(a)							145,205		39,205
VFNC Corporation, Pass-Through Entity, 0.24% 144A±(v)(i)(a)							163,758		70,416
Total Other (Cost $48,075)									109,621
	Yield					Shares
Short-Term Investments: 6.66%
Investment Companies: 6.66%
Wells Fargo Advantage Cash Investment Money Market Fund, Institutional Class (l)(u)##		0.02					51,180,928		51,180,928
Wells Fargo Securities Lending Cash Investments, LLC (v)(l)(u)(r)		0.15					6,347,100		6,347,100
Total Short-Term Investments (Cost $57,528,028)									57,528,028

Total Investments in Securities
(Cost $863,881,503) *	101.13	%		874,165,019
Other Assets and Liabilities, Net	(1.13	)		(9,759,040	)
Total Net Assets	100.00	%	$	864,405,979

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

± Variable rate investment.

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

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

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

(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.

(l) Investment in an affiliate.

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

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

(r) The investment company is exempt from registration under Section 3(c)(7) of the 1940 Act.

* Cost for federal income tax purposes is $863,941,771 and net unrealized appreciation (depreciation) consists of:

Gross unrealized appreciation	$	13,010,845
Gross unrealized depreciation		(2,787,597	)
Net unrealized appreciation	$	10,223,248

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

Statement of Assets and Liabilities—February 29, 2012 (Unaudited) Wells Fargo Advantage Short-Term High Yield Bond Fund 15

Assets
Investments
In unaffiliated securities (including securities on loan), at value (see cost below)	$	816,636,991
In affiliated securities, at value (see cost below)		57,528,028
Total investments, at value (see cost below)		874,165,019
Receivable for investments sold		3,571,429
Receivable for Fund shares sold		3,002,624
Receivable for interest		11,919,176
Receivable for securities lending income		1,754
Prepaid expenses and other assets		78,033
Total assets		892,738,035
Liabilities
Dividends payable		786,644
Payable for investments purchased		19,309,056
Payable for Fund shares redeemed		1,273,616
Payable upon receipt of securities loaned		6,395,175
Advisory fee payable		211,015
Distribution fees payable		49,410
Due to other related parties		114,280
Accrued expenses and other liabilities		192,860
Total liabilities		28,332,056
Total net assets	$	864,405,979
NET ASSETS CONSIST OF
Paid-in capital	$	857,601,606
Overdistributed net investment income		(795,792	)
Accumulated net realized losses on investments		(2,683,351	)
Net unrealized gains on investments		10,283,516
Total net assets	$	864,405,979
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE1
Net assets – Class A	$	211,263,912
Shares outstanding – Class A		25,661,778
Net asset value per share – Class A		$8.23
Maximum offering price per share – Class A2		$8.48
Net assets – Class C	$	85,293,198
Shares outstanding – Class C		10,360,341
Net asset value per share – Class C		$8.23
Net assets – Administrator Class	$	356,560,423
Shares outstanding – Administrator Class		43,325,167
Net asset value per share – Administrator Class		$8.23
Net assets – Investor Class	$	211,288,446
Shares outstanding – Investor Class		25,666,532
Net asset value per share – Investor Class		$8.23
Investments in unaffiliated securities, at cost	$	806,353,475
Investments in affiliated securities, at cost	$	57,528,028
Total investments, at cost	$	863,881,503
Securities on loan, at value	$	6,256,513

1. The Fund has an unlimited number of authorized shares.

2. 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.

16 Wells Fargo Advantage Short-Term High Yield Bond Fund Statement of Operations—Six Months Ended February 29, 2012 (Unaudited)

Investment income
Interest	$	20,333,603
Income from affiliated securities		32,420
Securities lending income, net		6,605
Total investment income		20,372,628
Expenses
Advisory fee		1,892,432
Administration fees
Fund level		192,660
Class A		160,944
Class C		61,741
Administrator Class		150,808
Investor Class		181,136
Shareholder servicing fees
Class A		251,475
Class C		96,470
Administrator Class		366,416
Investor Class		238,337
Distribution fees
Class C		289,409
Custody and accounting fees		27,031
Professional fees		18,679
Registration fees		27,650
Shareholder report expenses		43,287
Trustees’ fees and expenses		5,274
Other fees and expenses		20,386
Total expenses		4,024,135
Less: Fee waivers and/or expense reimbursements		(826,321	)
Net expenses		3,197,814
Net investment income		17,174,814
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized losses on investments		(2,594,226	)
Net change in unrealized gains (losses) on investments		26,035,023
Net realized and unrealized gains (losses) on investments		23,440,797
Net increase in net assets resulting from operations	$	40,615,611

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

Statements of Changes in Net Assets Wells Fargo Advantage Short-Term High Yield Bond Fund 17

	Six Months Ended February 29, 2012 (Unaudited)						Year Ended August 31, 2011
Operations
Net investment income				$	17,174,814					$	29,291,466
Net realized gains (losses) on investments					(2,594,226	)					4,578,954
Net change in unrealized gains (losses) on investments					26,035,023						(22,425,918	)
Net increase in net assets resulting from operations					40,615,611						11,444,502
Distributions to shareholders from
Net investment income
Class A					(4,509,730	)					(9,606,382	)
Class C					(1,436,479	)					(2,133,766	)
Administrator Class					(6,995,496	)					(8,867,546	)
Investor Class					(4,233,109	)					(8,752,298	)
Net realized gains
Class A					(1,020,607	)					0
Class C					(396,551	)					0
Administrator Class					(1,507,050	)					0
Investor Class					(980,285	)					0
Total distributions to shareholders					(21,079,307	)					(29,359,992	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		5,952,135			48,380,262			19,332,346			160,007,266
Class C		2,139,450			17,397,281			5,908,141			48,870,662
Administrator Class		19,882,686			161,068,385			40,593,904			335,757,566
Investor Class		11,116,522			90,128,839			16,435,101			135,892,540
					316,974,767						680,528,034
Reinvestment of distributions
Class A		599,632			4,870,384			955,857			7,892,159
Class C		167,538			1,360,946			178,177			1,470,543
Administrator Class		605,672			4,923,351			445,301			3,671,974
Investor Class		538,441			4,373,799			850,959			7,027,165
					15,528,480						20,061,841
Payment for shares redeemed
Class A		(5,970,518	)		(48,453,497	)		(24,011,790	)		(197,683,942	)
Class C		(886,085	)		(7,200,535	)		(1,551,311	)		(12,789,167	)
Administrator Class		(8,199,372	)		(66,625,196	)		(10,010,360	)		(82,141,751	)
Investor Class		(7,264,881	)		(58,961,520	)		(17,750,448	)		(146,262,384	)
					(181,240,748	)					(438,877,244	)
Net increase in net assets resulting from capital share transactions					151,262,499						261,712,631
Total increase in net assets					170,798,803						243,797,141
Net assets
Beginning of period					693,607,176						449,810,035
End of period				$	864,405,979					$	693,607,176
Overdistributed net investment income				$	(795,792	)				$	(795,792	)

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

18 Wells Fargo Advantage Short-Term High Yield Bond Fund Financial Highlights

(For a share outstanding throughout each period)

	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,						Year Ended May 31,
Class A				2011			20101			2010			20092			20082			20072
Net asset value, beginning of period	$	8.04		$	8.18		$	8.09		$	7.82		$	8.31		$	8.54		$	8.49
Net investment income		0.18			0.40			0.11			0.45			0.40			0.47			0.49
Net realized and unrealized gains (losses) on investments		0.23			(0.14	)		0.09			0.26			(0.49	)		(0.23	)		0.05
Total from investment operations		0.41			0.26			0.20			0.71			(0.09	)		0.24			0.54
Distributions to shareholders from
Net investment income		(0.18	)		(0.40	)		(0.11	)		(0.44	)		(0.40	)		(0.47	)		(0.49	)
Net realized gains		(0.04	)		0.00			0.00			0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.22	)		(0.40	)		(0.11	)		(0.44	)		(0.40	)		(0.47	)		(0.49	)
Net asset value, end of period	$	8.23		$	8.04		$	8.18		$	8.09		$	7.82		$	8.31		$	8.54
Total return3		5.19	%		3.10	%		2.43	%		9.17	%		(0.89	)%		2.98	%		6.48	%
Ratios to average net assets (annualized)
Gross expenses		0.99	%		1.00	%		1.01	%		1.03	%		1.08	%		1.20	%		1.22	%
Net expenses		0.81	%		0.81	%		0.81	%		0.81	%		0.81	%		0.86	%		0.86	%
Net investment income		4.48	%		4.77	%		5.14	%		5.50	%		5.27	%		5.70	%		5.70	%
Supplemental data
Portfolio turnover rate		11	%		36	%		15	%		40	%		46	%		59	%		50	%
Net assets, end of period (000’s omitted)		$211,264			$201,523			$235,754			$212,688			$110,451			$15,781			$22,076

1. 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.

2. On June 20, 2008, Advisor Class was renamed Class A.

3. Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

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

Financial Highlights Wells Fargo Advantage Short-Term High Yield Bond Fund 19

(For a share outstanding throughout each period)

	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,						Year Ended May 31,
Class C				2011			20101			2010			2009			20082
Net asset value, beginning of period	$	8.04		$	8.18		$	8.09		$	7.82		$	8.31		$	8.22
Net investment income		0.15			0.33			0.09			0.38			0.34			0.06
Net realized and unrealized gains (losses) on investments		0.23			(0.14	)		0.09			0.26			(0.49	)		0.09
Total from investment operations		0.38			0.19			0.18			0.64			(0.15	)		0.15
Distributions to shareholders from
Net investment income		(0.15	)		(0.33	)		(0.09	)		(0.37	)		(0.34	)		(0.06	)
Net realized gains		(0.04	)		0.00			0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.19	)		(0.33	)		(0.09	)		(0.37	)		(0.34	)		(0.06	)
Net asset value, end of period	$	8.23		$	8.04		$	8.18		$	8.09		$	7.82		$	8.31
Total return3		4.80	%		2.33	%		2.24	%		8.35	%		(1.70	)%		2.48	%
Ratios to average net assets (annualized)
Gross expenses		1.74	%		1.75	%		1.76	%		1.78	%		1.76	%		1.97	%
Net expenses		1.56	%		1.56	%		1.56	%		1.56	%		1.56	%		1.56	%
Net investment income		3.72	%		3.97	%		4.39	%		4.69	%		4.50	%		4.37	%
Supplemental data
Portfolio turnover rate		11	%		36	%		15	%		40	%		46	%		59	%
Net assets, end of period (000’s omitted)		$85,293			$71,831			$36,050			$32,985			$11,096			$18

1. 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.

2. For the period from March 31, 2008 (commencement of class operations) to May 31, 2008.

3. Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

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

20 Wells Fargo Advantage Short-Term High Yield Bond Fund Financial Highlights

(For a share outstanding throughout each period)

	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,
Administrator Class				2011			20101
Net asset value, beginning of period	$	8.03		$	8.18		$	8.18
Net investment income		0.19			0.41			0.03	2
Net realized and unrealized gains (losses) on investments		0.24			(0.15	)		0.00
Total from investment operations		0.43			0.26			0.03
Distributions to shareholders from
Net investment income		(0.19	)		(0.41	)		(0.03	)
Net realized gains		(0.04	)		0.00			0.00
Total distributions to shareholders		(0.23	)		(0.41	)		(0.03	)
Net asset value, end of period	$	8.23		$	8.03		$	8.18
Total return3		5.41	%		3.15	%		0.39	%
Ratios to average net assets (annualized)
Gross expenses		0.92	%		0.94	%		0.89	%
Net expenses		0.65	%		0.65	%		0.64	%
Net investment income		4.64	%		4.87	%		4.39	%
Supplemental data
Portfolio turnover rate		11	%		36	%		15	%
Net assets, end of period (000’s omitted)		$356,560			$249,301			$60

1. For the period from July 30, 2010 (commencement of class operations) to August 31, 2010.

2. Calculated based upon average shares outstanding.

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

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

Financial Highlights Wells Fargo Advantage Short-Term High Yield Bond Fund 21

(For a share outstanding throughout each period)

	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,						Year Ended May 31,
Investor Class				2011			20101			2010			2009			2008			2007
Net asset value, beginning of period	$	8.03		$	8.18		$	8.09		$	7.82		$	8.31		$	8.54		$	8.49
Net investment income		0.18			0.39			0.11			0.44			0.40			0.47			0.49
Net realized and unrealized gains (losses) on investments		0.24			(0.15	)		0.08			0.26			(0.49	)		(0.23	)		0.05
Total from investment operations		0.42			0.24			0.19			0.70			(0.09	)		(0.24	)		0.54
Distributions to shareholders from
Net investment income		(0.18	)		(0.39	)		(0.10	)		(0.43	)		(0.40	)		(0.47	)		(0.49	)
Net realized gains		(0.04	)		0.00			0.00			0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.22	)		(0.39	)		(0.10	)		(0.43	)		(0.40	)		(0.47	)		(0.49	)
Net asset value, end of period	$	8.23		$	8.03		$	8.18		$	8.09		$	7.82		$	8.31		$	8.54
Total return2		5.31	%		2.95	%		2.42	%		9.12	%		(0.91	)%		2.98	%		6.48	%
Ratios to average net assets (annualized)
Gross expenses		1.02	%		1.03	%		1.05	%		1.07	%		1.13	%		1.34	%		1.39	%
Net expenses		0.84	%		0.84	%		0.85	%		0.86	%		0.84	%		0.86	%		0.86	%
Net investment income		4.44	%		4.76	%		5.10	%		5.49	%		5.20	%		5.69	%		5.70	%
Supplemental data
Portfolio turnover rate		11	%		36	%		15	%		40	%		46	%		59	%		50	%
Net assets, end of period (000’s omitted)		$211,288			$170,952			$177,946			$165,759			$128,789			$70,420			$96,071

1. 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.

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

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

22 Wells Fargo Advantage Short-Term High Yield Bond Fund Notes to Financial Statements (Unaudited)

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 Wells Fargo Advantage Short-Term High Yield Bond Fund (the “Fund”) which 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 the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Securities valuation

Fixed income securities with original maturities exceeding 60 days are valued based on evaluated prices received from an independent pricing service approved by the 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 Fund’s 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.

Investments in open-end mutual funds and non-registered investment companies are generally valued at net asset value.

Investments which are not valued using any of the methods discussed above, are valued at their fair value, as determined by procedures established in good faith and approved by the Board of Trustees.

Security loans

The Fund may lend its securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. The Fund continues to receive interest or dividends on the securities loaned. The 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 a securities lending transaction, the net asset value of the 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 the instrument in which collateral is invested. The amount of securities lending activity undertaken by the Fund fluctuates from time to time. In the event of default or bankruptcy by the borrower, the Fund may be prevented from recovering the loaned securities or gaining access to the collateral or may experience delays or costs in doing so. In 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 Fund lends its securities through an unaffiliated securities lending agent. Cash collateral received in connection with its 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 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 Statement of Operations.

Notes to Financial Statements (Unaudited) Wells Fargo Advantage Short-Term High Yield Bond Fund 23

For Wells Fargo Advantage Funds that participated in securities lending activity prior to February 13, 2009, certain structured investment vehicles purchased in a joint account by the former securities lending agent defaulted or were impaired. Certain of the Wells Fargo Advantage Funds still hold ownership interest in these structured investment vehicles, which have since been restructured as pass-through securities. If the Fund holds an ownership interest in such pass-through securities, information regarding this ownership interest can be found in the Portfolio of Investments under the category “Other”.

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.

Term loans

The 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.

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.

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 income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.

The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities.

Under the recently enacted Regulated Investment Company Modernization Act of 2010, the Fund is permitted to carry forward capital losses incurred in taxable years which began after December 22, 2010 for an unlimited period. However, any losses incurred are 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 be 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.

24 Wells Fargo Advantage Short-Term High Yield Bond Fund Notes to Financial Statements (Unaudited)

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 significant unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:

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

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

n Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

As of February 29, 2012, the inputs used in valuing the Fund’s assets, which are carried at fair value, were as follows:

Investments in Securities	Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Corporate bonds and notes	$	0	$	585,145,990	$	0	$	585,145,990
Municipal bonds and notes		0		9,050,874		0		9,050,874
Non agency mortgage-backed securities		0		73,406		0		73,406
Term loans		0		187,960,355		0		187,960,355
Yankee corporate bonds and notes		0		34,296,745		0		34,296,745
Other		0		0		109,621		109,621
Short-term investments
Investment companies		51,180,928		6,347,100		0		57,528,028
	$	51,180,928	$	822,874,470	$	109,621	$	874,165,019

Further details on the major security types listed above can be found in the Portfolio of Investments.

Transfers in and transfers out are recognized at the end of the reporting period. For the six months ended February 29, 2012, the Fund did not have any significant transfers into/out of Level 1 and Level 2.

Notes to Financial Statements (Unaudited) Wells Fargo Advantage Short-Term High Yield Bond Fund 25

The following is a reconciliation of assets in which significant unobservable inputs (Level 3) were used in determining fair value:

	Corporate bonds and notes			Term loans			Other			Total
Balance as of August 31, 2011	$	1,899,438		$	29,375,878		$	152,136		$	31,427,452
Accrued discounts (premiums)		(10,574	)		8,864			0			(1,710	)
Realized gains (losses)		(327	)		(418,468	)		0			(418,795	)
Change in unrealized gains (losses)		(35,426	)		897,944			(25,328	)		837,190
Purchases		0			0			0			0
Sales		(1,853,111	)		(6,533,745	)		(17,187	)		(8,404,043	)
Transfers into Level 3		0			0			0			0
Transfers out of Level 3		0			(23,330,473	)		0			(23,330,473	)
Balance as of February 29, 2012	$	0		$	0		$	109,621		$	109,621
Change in unrealized gains (losses) relating to securities still held at February 29, 2012	$	0		$	0		$	(34,204	)	$	(34,204	)

Transfers out of Level 3 into Level 2 are due to the availability of significant observable inputs which are currently used in the determination of the fair value of the securities.

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Advisory fee

The Trust has entered into an advisory contract with Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”). The 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 Fund.

Pursuant to the contract, Funds Management is entitled to receive an annual advisory fee starting at 0.50% and declining to 0.40% as the average daily net assets of the Fund increase. For the six months ended February 29, 2012, the advisory fee was equivalent to an annual rate of 0.49% of the Fund’s average daily net assets.

Funds Management has retained the services of certain sub-advisers to provide daily portfolio management to the Fund. The fees related to sub-advisory services are borne directly by Funds Management and do not increase the overall fees paid by the Fund. Wells Capital Management, an affiliate of Funds Management, is the sub-adviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.35% and declining to 0.20% as the average daily net assets of the Fund increase.

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 the Fund an annual fund level administration fee starting at 0.05% and declining to 0.03% as the average daily net assets of the Fund increase and a class level administration fee which is calculated based on the average daily net assets of each class as follows:

	Class Level Administration Fee
Class A, Class C		0.16	%
Administrator Class		0.10
Investor Class		0.19

Funds Management has contractually waived and/or reimbursed 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. Funds Management has committed through December 31, 2012 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.81% for Class A, 1.56% for Class C, 0.65% for Administrator Class and 0.84% for Investor Class.

26 Wells Fargo Advantage Short-Term High Yield Bond Fund Notes to Financial Statements (Unaudited)

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 29, 2012, Wells Fargo Funds Distributor, LLC received $9,051 from the sale of Class A shares and $744 and $9,162 in contingent deferred sales charges from redemptions of Class A and Class C shares, respectively.

Shareholder servicing fees

The Trust has entered into contracts with one or more shareholder servicing agents, whereby each class of the 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, excluding U.S. Government obligations (if any) and short-term securities (securities with original maturities of one year or less at purchase date), for the six months ended February 29, 2012 were $245,208,963 and $76,399,427, respectively.

As of February 29, 2012, the Fund had unfunded term loan commitments of $2,002,500.

6. BANK BORROWINGS

The Trust (excluding the money market funds) and Wells Fargo Variable Trust are parties to a $150,000,000 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, an annual commitment fee equal to 0.10% of the unused balance is allocated to each participating fund. Prior to September 6, 2011, the revolving credit agreement was for $125,000,000 and the annual commitment fee paid by the Fund was 0.125% of the unused balance. For the six months ended February 29, 2012, the Fund paid $942 in commitment fees.

For the six months ended February 29, 2012, there were no borrowings by the Fund under the agreement.

7. 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 Fund and, therefore, cannot be estimated.

8. NEW ACCOUNTING PRONOUNCEMENTS

In May 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-04 “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs”. ASU No. 2011-04 amends FASB ASC Topic 820, Fair Value Measurements and Disclosures, to establish common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with GAAP. The ASU is effective prospectively for interim and annual periods beginning after December 15, 2011. Management expects that adoption of the ASU will result in additional disclosures in the financial statements, as applicable.

In April 2011, FASB issued ASU No. 2011-03 “Reconsideration of Effective Control for Repurchase Agreements”. ASU No. 2011-03 amends FASB ASC Topic 860, Transfers and Servicing, specifically the criteria required to determine whether a repurchase agreement (repo) and similar agreements should be accounted for as sales of financial assets or secured borrowings with commitments. ASU No. 2011-03 changes the assessment of effective control by focusing on the transferor’s contractual rights and obligations and removing the criterion to assess its ability to exercise those rights or honor those obligations. This could result in changes to the way entities account for certain transactions including repurchase agreements, mortgage dollar rolls and reverse repurchase agreements. The ASU will become effective on a prospective basis for new transfers and modifications to existing transactions as of the beginning of the first interim or annual period beginning on or after December 15, 2011. Management has evaluated the impact of adopting the ASU and expects no significant changes.

Other Information (Unaudited) Wells Fargo Advantage Short-Term High Yield Bond Fund 27

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 wellsfargoadvantagefunds.com, or visiting the SEC Web site at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge on the Fund’s Web site at wellsfargoadvantagefunds.com or by visiting the SEC Web site at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available on the Fund’s Web site (wellsfargoadvantagefunds.com) 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 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.

28 Wells Fargo Advantage Short-Term High Yield Bond Fund Other Information (Unaudited)

BOARD OF TRUSTEES

The following table provides basic information about the Board of Trustees (the “Trustees”) of the Trust and Officers of the Trust. This table should be read in conjunction with the Prospectus and the Statement of Additional Information¹ of 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 137 funds comprising the Wells Fargo Funds 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 Year of Birth	Position Held and Length of Service	Principal Occupations During Past Five Years	Other Directorships During Past Five Years
Peter G. Gordon (Born 1942)	Trustee, since 1998; Chairman, since 2005 (Lead Trustee since 2001)	Co-Founder, Retired Chairman, President and CEO of Crystal Geyser Water Company. Trustee Emeritus, Colby College	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 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 40 portfolios as of 12/31/11); Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of Corporate Governance Research Program and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust

Other Information (Unaudited) Wells Fargo Advantage Short-Term High Yield Bond Fund 29

Name and Year of Birth	Position Held and Length of Service	Principal Occupations During Past Five Years	Other Directorships During Past Five Years
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	Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield 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. Director and Vice Chair of The Free Trust (non-profit corporation). Director of the American Chestnut Foundation (non-profit corporation).	Asset Allocation Trust

Officers

Name and Year of Birth	Position Held and 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 Senior 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.
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. 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 Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the Web site at wellsfargoadvantagefunds.com.

30 Wells Fargo Advantage Short-Term High Yield Bond Fund List of Abbreviations

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

ACB —  Agricultural Credit Bank

ADR —  American Depository 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

AUD —  Australian Dollar

BAN —  Bond Anticipation Notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazil Real

CAB —  Capital Appreciation Bond

CAD —  Canadian Dollar

CCAB —  Convertible Capital Appreciation Bond

CDA —  Community Development Authority

CDO —  Collateralized Debt Obligation

CHF —  Swiss Franc

COP —  Certificate of Participation

CR —  Custody Receipts

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

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-Traded Fund

EUR —  Euro

FFCB —  Federal Farm Credit Bank

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Authority

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British Pound

GDR —  Global Depository 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

HUF —  Hungarian Forint

IBC —  Insured Bond Certificate

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

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

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

PUTTER —  Puttable Tax-Exempt Receipts

R&D —  Research & Development

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real Estate Investment Trust

ROC —  Reset Option Certificates

SAVRS —  Select Auction Variable Rate Securities

SBA —  Small Business Authority

SEK —  Swedish Krona

SFHR —  Single Family Housing Revenue

SFMR —  Single Family Mortgage Revenue

SGD —  Singapore Dollar

SKK —  Slovakian Koruna

SPDR —  Standard & Poor’s Depositary Receipts

TAN —  Tax Anticipation Notes

TBA —  To Be Announced

TIPS —  Treasury Inflation-Protected Securities

TRAN —  Tax Revenue Anticipation Notes

TCR —  Transferable Custody Receipts

TRY —  Turkish Lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

XLCA —  XL Capital Assurance

ZAR —  South African Rand

FOR MORE INFORMATION

More information about Wells Fargo Advantage Funds is available free upon request. To obtain literature, please write, e-mail, visit the Fund’s Web site, or call:

Wells Fargo Advantage Funds

P.O. Box 8266

Boston, MA 02266-8266

E-mail: wfaf@wellsfargo.com

Web site: wellsfargoadvantagefunds.com

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 wellsfargoadvantagefunds.com. 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

© 2012 Wells Fargo Funds Management, LLC. All rights reserved.

208527 04-12 SA222/SAR222 2-12

Wells Fargo Advantage

Ultra Short-Term Income Fund

Semi-Annual Report

February 29, 2012

Reduce clutter. Save trees.

Sign up for electronic delivery of prospectuses and shareholder reports at wellsfargo.com/advantagedelivery

Contents

Letter to Shareholders	2
Performance Highlights	5
Fund Expenses	7
Portfolio of Investments	8
Financial Statements
Statement of Assets and Liabilities	20
Statement of Operations	21
Statements of Changes in Net Assets	22
Financial Highlights	23
Notes to Financial Statements	28
Other Information	35
List of Abbreviations	38

The views expressed and any forward-looking statements are as of February 29, 2012, unless otherwise noted, and are those of the Fund managers and/or Wells Fargo Funds Management, LLC. Discussions of individual securities, or the markets generally, or any Wells Fargo Advantage Fund are not intended as individual recommendations. Future events or results may vary significantly from those expressed in any forward-looking statements; the views expressed are subject to change at any time in response to changing circumstances in the market. Wells Fargo Funds Management, LLC, disclaims any obligation to publicly update or revise any views expressed or forward-looking statements.

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 FundsSM).
1996	Evergreen Investments and Keystone Funds merge.
1997	Wells Fargo launches Wells Fargo Advantage WealthBuilder PortfoliosSM, 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 a fund’s investment objectives, risks, charges, and expenses before investing. For a current prospectus and, if available, a summary prospectus, containing this and other information, visit wellsfargoadvantagefunds.com. 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.

“Dow Jones^®” and “Dow Jones Target Date Indexes^SM” are service marks of Dow Jones Trademark Holdings, LLC (“Dow Jones”), have been licensed to CME Group Index Services LLC (“CME Indexes”) and have been sublicensed for use for certain purposes by Global Index Advisors, Inc, and Wells Fargo Funds Management, LLC. The Wells Fargo Advantage Dow Jones Target Date Funds^SM based on the Dow Jones Target Date Indexes^SM, are not sponsored, endorsed, sold or promoted by Dow Jones, CME Indexes or their respective affiliates and none of them makes any representation regarding the advisability of investing in such product(s).

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

Not part of the semi-annual report.

Wells Fargo Advantage Funds offers more than 110 mutual funds across a wide range of asset classes, representing over $218 billion in assets under management, as of February 29, 2012.

Equity Funds
Asia Pacific Fund	Equity Value Fund	Precious Metals Fund
C&B Large Cap Value Fund	Global Opportunities Fund	Premier Large Company Growth Fund
C&B Mid Cap Value Fund	Growth Fund	Small Cap Opportunities Fund
Capital Growth Fund	Index Fund	Small Cap Value Fund
Common Stock Fund	International Equity Fund	Small Company Growth Fund
Disciplined U.S. Core Fund	International Value Fund	Small Company Value Fund
Discovery Fund†	Intrinsic Small Cap Value Fund	Small/Mid Cap Core Fund
Diversified Equity Fund	Intrinsic Value Fund	Small/Mid Cap Value Fund
Diversified International Fund	Intrinsic World Equity Fund	Special Mid Cap Value Fund
Diversified Small Cap Fund	Large Cap Core Fund	Special Small Cap Value Fund
Emerging Growth Fund	Large Cap Growth Fund	Specialized Technology Fund
Emerging Markets Equity Fund	Large Company Value Fund	Strategic Large Cap Growth Fund
Endeavor Select Fund†	Omega Growth Fund	Traditional Small Cap Growth Fund
Enterprise Fund†	Opportunity 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
Absolute Return Fund	WealthBuilder Equity Portfolio†	Target 2020 Fund†
Asset Allocation Fund	WealthBuilder Growth Allocation Portfolio†	Target 2025 Fund†
Conservative Allocation Fund	WealthBuilder Growth Balanced Portfolio†	Target 2030 Fund†
Diversified Capital Builder Fund	WealthBuilder Moderate Balanced Portfolio†	Target 2035 Fund†
Diversified Income Builder Fund	WealthBuilder Tactical Equity Portfolio†	Target 2040 Fund†
Growth Balanced Fund	Target Today Fund†	Target 2045 Fund†
Index Asset Allocation Fund	Target 2010 Fund†	Target 2050 Fund†
Moderate Balanced Fund	Target 2015 Fund†	Target 2055 Fund†
WealthBuilder Conservative Allocation Portfolio†
Money Market Funds
100% Treasury Money Market Fund	Heritage Money Market Fund†	National Tax-Free Money Market Fund
California Municipal Money Market Fund	Money Market Fund	Prime Investment Money Market Fund
Cash Investment Money Market Fund	Municipal Cash Management Money Market Fund	Treasury Plus Money Market Fund
Government Money Market Fund	Municipal Money Market Fund
Variable Trust Funds1
VT Discovery Fund†	VT Intrinsic Value Fund	VT Small Cap Growth Fund
VT Index Asset Allocation Fund	VT Omega Growth Fund	VT Small Cap Value Fund
VT International Equity Fund	VT Opportunity Fund†	VT Total Return Bond 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 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 Dow Jones Target 2055 Fund^SM, Wells Fargo Advantage Heritage Money Market Fund^SM, Wells Fargo Advantage VT Discovery Fund^SM, and Wells Fargo Advantage VT Opportunity Fund^SM are referred to as the Discovery Fund, Endeavor Select Fund, Enterprise Fund, Opportunity 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, Target 2055 Fund, Heritage Money Market Fund, VT Discovery Fund, and VT Opportunity Fund, respectively.

Not part of the semi-annual report.

2 Wells Fargo Advantage Ultra Short-Term Income Fund Letter to Shareholders

Karla M. Rabusch,

President

Wells Fargo Advantage Funds

The theme for the period was a shift from risk aversion in the first half to burgeoning trends of improving investor confidence in the second half, which significantly improved pricing in the lower-rated asset classes.

On the whole, investment-grade fixed-income securities performed positively during the period, but the strongest returns came from the high-yield market.

Dear Valued Shareholder:

We are pleased to offer you this semi-annual report for the Wells Fargo Advantage Ultra Short-Term Income Fund, which covers the six-month period that ended February 29, 2012. During the period, fixed-income performance was best among the lower-rated securities, as improved investor confidence in the U.S. economy and the U.S. credit markets encouraged investors to return to riskier asset classes.

The period began with heightened risk aversion but ended with stronger investor confidence.

The six-month period began with the worsening of the Greek crisis, which amplified risk aversion across the global credit markets. This in turn led to a powerful rally in U.S. Treasuries and a sharp decline in high-yield bond prices, most notably in the lowest-quality credit tiers. During this time, most investment-grade fixed-income markets continued to generate positive returns—although certain areas of the riskiest segments of the markets declined—and U.S. Treasury yields reached the lowest levels in decades, even surpassing the low yield levels reached in the summer of 2010.

The last three months of the period were characterized by a strong reversal of the trends of the first three months. In October 2011, the high-yield market recovered significantly, benefiting from indications of improving policy with regard to managing the debt crisis from Europe and the formal announcement of a European debt deal late in the month. Due to renewed concerns about the European Union’s ability to manage the debt crisis, November 2011 saw a modest decline in investment-grade corporate bond prices and a sharp correction in high-yield corporate bonds, but another strong recovery in pricing started in December and carried into the first two months of 2012. Investor confidence strengthened as the U.S. economy demonstrated signs of sustainable growth and U.S. credit markets began to show some resistance to the credit problems of Europe. Thus, the theme for the period was a shift from risk aversion in the first half to burgeoning trends of improving investor confidence in the second half, which significantly improved pricing in the lower-rated asset classes.

On the whole, investment-grade fixed-income securities performed positively during the period, but the strongest returns came from the high-yield market. In fact, the best returns for the six-month period came from the lowest-rated credit tiers, despite the fact that they significantly underperformed in August and September 2011. Similar trends were true in the structured products sector, as lower-rated commercial mortgage-backed securities were among the best performers for the period, despite underperforming in the first two months.

The Federal Reserve launched Operation Twist in September.

With economic concerns and credit woes escalating in Europe and some continued uncertainty about the growth outlook in the U.S. during August and September 2011, the Federal Reserve (Fed) intervened yet again with monetary accommodations—this time with “Operation Twist,” which was announced and launched in September 2011. With Operation Twist, the Fed endeavored to flatten the yield curve and drive long-term rates down by selling short-term Treasuries and using the proceeds to purchase long-term Treasuries. The Fed stated that it is unlikely to raise rates before 2014, which should keep yields on Treasuries low. Despite this announcement, problems in Europe caused Treasuries to continue to rally in the first 3 months of the period, while credit spreads on corporate and

Letter to Shareholders Wells Fargo Advantage Ultra Short-Term Income Fund 3

securitized sectors widened with increasing risk aversion. However, with an improved U.S. economic outlook and greater investor confidence, the last three months of the period saw a slight decline in U.S. Treasury prices and significant improvement in high-yield corporate bond prices. Credit spreads in the corporate and securitized sectors broadly tightened in December 2011 and January and February 2012.

Although U.S. economic conditions appear to have improved over the course of the period, the recovery continues to face some headwinds in the form of languishing housing values and elevated unemployment levels, which may continue to create some volatility in the fixed-income markets. 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. While heightened volatility may be uncomfortable to experience in the short term, we believe it can lead to unique opportunities to add relative value for investors with long-term investment horizons.

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

Periods of uncertainty can present challenges, but 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. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Advantage Funds offers more than 110 mutual funds and other investments spanning a wide range of asset classes and investment styles. Although diversification cannot guarantee an investment profit or prevent losses, we believe it can be an effective way to manage investment risk and potentially smooth out overall portfolio performance.

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 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.

Thank you for choosing to invest with Wells Fargo Advantage Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs. For current information about your fund investments, contact your investment professional, visit our Web site at wellsfargoadvantagefunds.com, or call us directly at 1-800-222-8222. We are available 24 hours a day, 7 days a week.

Sincerely,

Karla M. Rabusch

President

Wells Fargo Advantage Funds

4 Wells Fargo Advantage Ultra Short-Term Income Fund Letter to Shareholders

Notice to Shareholders

The Board of Trustees for Wells Fargo Advantage Funds has unanimously approved the following modifications to certain net asset value (NAV) waiver privileges and commission schedules:

n Effective May 1, 2012, automatic investment plan (AIP) purchases and proceeds received from systematic withdrawals will no longer qualify for NAV repurchase privileges.

n Effective May 1, 2012, discretionary rights to waive the upfront commission for Class C and “jumbo” Class A share purchases will no longer be granted to broker/dealers. However, we will continue to waive the Class C shares contingent deferred sales charge for redemptions by employer-sponsored retirement plans where the dealer of record waived its commission at the time of purchase.

n Effective July 31, 2012, NAV purchase privileges for former Evergreen Class IS and Class R shareholders are being modified to remove the ability to purchase Class A shares at NAV unless those shares are held directly with the Fund on or after July 31, 2012.

Please contact your investment professional or call us directly at 1-800-222-8222 if you have any questions on this Notice to Shareholders.

Performance Highlights (Unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 5

INVESTMENT OBJECTIVE

The Fund seeks current income consistent with capital preservation.

ADVISER

Wells Fargo Funds Management, LLC

SUB-ADVISER

Wells Capital Management Incorporated

PORTFOLIO MANAGERS

Christopher Y. Kauffman, CFA

Jay N. Mueller, CFA

D. James Newton II, CFA, CPA

Thomas M. Price, CFA

FUND INCEPTION

November 25, 1988

TEN LARGEST LONG-TERM HOLDINGS1 (AS OF FEBRUARY 29, 2012)
Bank Nederlandse Gemeenten, 5.00%, 05/16/2014	1.27%
Canadian Imperial Bank of Commerce, 2.00%, 02/04/2013	1.19%
SpareBank 1 Boligkreditt, 1.25%, 10/25/2014	1.17%
Nordea Eiendomskreditt, 1.88%, 04/07/2014	1.06%
Stadshypotek AB, 1.45%, 09/30/2013	1.05%
Bank of Nova Scotia, 1.45%, 07/26/2013	1.02%
Chase Issuance Trust Series 2009-A2 Class A2, 1.80%, 04/15/2014	0.92%
Nissan Auto Receivables Owner Trust Series 2011-A Class A2, 0.65%, 12/16/2013	0.88%
Citibank Credit Card Issuance Trust Series 2009-A1 Class A1, 2.00%, 03/17/2014	0.88%
HSBC Bank plc, 1.63%, 07/07/2014	0.84%

CREDIT QUALITY²
(AS OF FEBRUARY 29, 2012)

1. The ten largest long-term holdings are calculated based on the value of the securities divided by total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

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 & Poor’s rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Ratings from A to CCC may be modified by the addition of a plus (+) or minus (–) sign to show relative standing within the rating categories. Standard & Poor’s rates the creditworthiness of short-term notes from SP-1 (highest) to SP-3 (lowest). Moody’s rates the creditworthiness of bonds, ranging from Aaa (highest) to C (lowest). Ratings Aa to B may be modified by the addition of a number 1 (highest) to 3 (lowest) to show relative standing within the ratings categories. Moody’s rates the creditworthiness of short-term U.S. tax-exempt municipal securities from MIG 1/VMIG 1 (highest) to SG (lowest). Fitch rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). 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.

6 Wells Fargo Advantage Ultra Short-Term Income Fund Performance Highlights (Unaudited)

AVERAGE ANNUAL TOTAL RETURN³ (%) (AS OF FEBRUARY 29, 2012)

			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 (SADAX)		08/31/1999		(1.39	)		(1.33	)		1.25		2.03		0.62		0.69			1.66		2.24		0.88%		0.71%
Class C (WUSTX)		07/18/2008		(0.75	)		(1.07	)		0.90		1.57		0.25		(0.07	)		0.90		1.57		1.63%		1.46%
Administrator Class (WUSDX)		04/08/2005												0.81		0.83			1.82		2.47		0.82%		0.56%
Institutional Class (SADIX)		08/31/1999												0.91		1.04			2.03		2.74		0.55%		0.36%
Investor Class (STADX)		11/25/1988												0.72		0.77			1.64		2.30		0.91%		0.74%
Barclays Short-Term U.S. Government/Credit Bond Index6														0.15		0.35			2.16		NA
Barclays 9-12 Month U.S. Short Treasury Index7														0.06		0.40			2.30		2.42
Barclays 1-3 Year U.S. Government/Credit Bond Index8														0.40		1.75			3.85		3.59

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

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 and assumes the reinvestment of dividends and capital gains. Current month-end performance is available on the Fund’s Web site – wellsfargoadvantagefunds.com

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.

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 charge assumes the sales charge for the corresponding time period. Administrator Class, Institutional, and Investor 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 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.

3. Historical performance shown for the Class A shares through June 19, 2008 includes Advisor Class expenses. Historical performance shown for the Class C shares prior to their inception reflects the performance of the Investor Class shares, adjusted to include the higher expenses applicable to Class C shares. Historical performance shown for the Administrator Class shares prior to their inception reflects the performance of the Institutional Class shares, and has been adjusted to include the higher expenses applicable to the Administrator Class shares.

4. Reflects the expense ratios as stated in the most recent prospectuses.

5. The Adviser has committed through July 11, 2013 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver, excluding certain expenses, at 0.70% for Class A, 1.45% for Class C, 0.55% for Administrator Class, 0.35% for Institutional Class and 0.73% for Investor Class. Without this cap, the Fund’s returns would have been lower.

6. The Barclays Short-Term U.S. Government/Credit Bond Index contains securities that have fallen out of the Barclays U.S. Government/Credit Index because of the standard minimum one-year to maturity constraint. Securities in the Barclays 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.

7. The Barclays 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.

8. The Barclays 1-3 Year U.S. Government/Credit Bond Index is the 1-3 year component of the Barclays 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.

Fund Expenses (Unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 7

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and contingent deferred sales charges (if any) on redemptions 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, 2011 to February 29, 2012.

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 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.

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) and contingent deferred sales charges. 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 Account Value 09-01-2011		Ending Account Value 02-29-2012		Expenses Paid During the Period1		Net Annual Expense Ratio
Class A
Actual	$	1,000.00	$	1,006.21	$	3.49		0.70	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.38	$	3.52		0.70	%
Class C
Actual	$	1,000.00	$	1,002.46	$	7.22		1.45	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.65	$	7.27		1.45	%
Administrator Class
Actual	$	1,000.00	$	1,008.15	$	2.75		0.55	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.13	$	2.77		0.55	%
Institutional Class
Actual	$	1,000.00	$	1,009.14	$	1.75		0.35	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.12	$	1.76		0.35	%
Investor Class
Actual	$	1,000.00	$	1,007.24	$	3.64		0.73	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.23	$	3.67		0.73	%

1. Expenses paid is equal to the annualized expense ratio of each class 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).

8 Wells Fargo Advantage Ultra Short-Term Income Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Agency Securities: 5.30%
FHLB		5.00	%		08/15/2012	$	5,140,005	$	5,339,020
FHLMC ±		2.49			04/01/2032		191,224		200,025
FHLMC ±		2.50			06/01/2032		12,329		13,002
FHLMC ±		2.54			01/01/2029		95,134		96,007
FHLMC ±		2.62			07/01/2029		8,675		9,191
FHLMC ±		2.69			10/01/2031		87,927		88,105
FHLMC		7.00			06/01/2031		612,086		715,670
FHLMC		7.50			06/01/2012		6,378		6,414
FHLMC		7.50			10/01/2012		2,572		2,600
FHLMC		8.00			01/01/2013		344		345
FHLMC		9.00			11/01/2016		128,171		144,673
FHLMC		9.00			12/01/2016		901,615		1,006,355
FHLMC		9.00			08/01/2018		231,899		262,243
FHLMC		9.00			10/01/2019		112,793		130,930
FHLMC		9.50			12/01/2016		88,445		100,502
FHLMC		9.50			05/01/2020		43,542		48,984
FHLMC		9.50			09/01/2020		264,646		312,915
FHLMC		9.50			12/01/2022		597,168		688,632
FHLMC		10.00			11/01/2021		90,238		105,175
FHLMC		10.50			05/01/2020		200,348		242,832
FHLMC Structured Pass-Through Securities Series T-42 Class A6		9.50			02/25/2042		1,303,730		1,552,649
FNMA ±		1.87			10/01/2031		170,301		175,175
FNMA ±		2.30			11/01/2031		157,676		165,882
FNMA ±		2.36			05/01/2032		95,563		99,350
FNMA ±		2.43			12/01/2040		590,065		624,227
FNMA ±		2.54			06/01/2032		211,053		212,422
FNMA ±		2.61			01/01/2023		28,183		28,362
FNMA ±		3.16			04/01/2033		9,709		10,265
FNMA ±		3.83			07/01/2033		70,261		70,775
FNMA		6.00			04/01/2021		5,546,163		6,044,364
FNMA		6.50			08/01/2031		1,318,706		1,510,978
FNMA		7.00			05/01/2013		17,493		17,543
FNMA		7.00			11/01/2014		162,285		171,451
FNMA		8.00			03/01/2013		5,979		6,019
FNMA		8.33			07/15/2020		93,317		108,805
FNMA		8.50			11/01/2012		1,490		1,498
FNMA		8.50			07/01/2017		575,097		642,463
FNMA		9.00			10/01/2013		7,956		8,059
FNMA		9.00			12/01/2016		610,716		683,567
FNMA		9.00			02/15/2020		281,252		332,020
FNMA		9.00			10/01/2021		193,745		224,622
FNMA		9.00			06/01/2024		256,132		301,622
FNMA		9.50			12/01/2020		190,781		225,887
FNMA		9.50			03/01/2021		52,591		60,515
FNMA		10.00			03/01/2018		75,522		84,656
FNMA		10.25			09/01/2021		219,389		262,869
FNMA		10.50			10/01/2014		50,071		54,115
FNMA		10.50			08/01/2020		11,491		13,550
FNMA		10.50			04/01/2022		340,308		396,572
FNMA Grantor Trust Series 2000-T6 Class A2		9.50			06/25/2030		811,501		947,133

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 9

Security Name	Interest Rate			Maturity Date		Principal		Value
Agency Securities (continued)
FNMA Grantor Trust Series 2001-T10 Class A3		9.50	%		12/25/2041	$	1,927,218	$	2,300,975
FNMA Grantor Trust Series 2001-T12 Class A3		9.50			08/25/2041		1,701,348		2,051,112
FNMA Grantor Trust Series 2001-T8 Class A3 ±		3.87			07/25/2041		3,648,133		3,692,444
FNMA Grantor Trust Series 2002-T1 Class A4		9.50			11/25/2031		2,296,098		2,772,755
FNMA Series 1988-4 Class Z		9.25			03/25/2018		111,101		125,080
FNMA Series 1988-5 Class Z		9.20			03/25/2018		46,084		46,626
FNMA Series 1988-9 Class Z		9.45			04/25/2018		66,084		75,084
FNMA Series 1989-30 Class Z		9.50			06/25/2019		345,086		392,566
FNMA Series 1989-49 Class E		9.30			08/25/2019		51,231		57,426
FNMA Series 1990-111 Class Z		8.75			09/25/2020		64,435		70,915
FNMA Series 1990-119 Class J		9.00			10/25/2020		167,911		195,216
FNMA Series 1990-124 Class Z		9.00			10/25/2020		100,839		117,487
FNMA Series 1990-21 Class Z		9.00			03/25/2020		275,423		319,396
FNMA Series 1990-27 Class Z		9.00			03/25/2020		173,936		201,480
FNMA Series 1990-30 Class D		9.75			03/25/2020		82,498		96,595
FNMA Series 1990-77 Class D		9.00			06/25/2020		80,957		92,290
FNMA Series 1991-132 Class Z		8.00			10/25/2021		381,076		450,406
FNMA Series 1992-71 Class X		8.25			05/25/2022		127,634		153,202
FNMA Series 2007-2 Class FA ±		0.44			02/25/2037		1,339,796		1,333,195
FNMA Series 2007-B2 Class AB		5.50			12/25/2020		2,547,240		2,638,026
FNMA Series 2011-56 Class AC		2.00			07/25/2018		1,533,280		1,562,466
FNMA Series G-22 Class ZT		8.00			12/25/2016		701,213		784,887
FNMA Whole Loan Series 2002-W4 Class A6 ±		3.41			05/25/2042		1,631,106		1,735,343
FNMA Whole Loan Series 2003-W11 Class A1 ±		3.10			06/25/2033		111,192		111,168
FNMA Whole Loan Series 2003-W3 Class 1A4 ±		3.41			08/25/2042		68,579		73,165
FNMA Whole Loan Series 2003-W6 Class 6A ±		3.19			08/25/2042		4,927,398		5,338,800
FNMA Whole Loan Series 2004-W6 Class 1A4		5.50			07/25/2034		6,310,053		6,527,823
GNMA		7.00			05/15/2013		66,369		65,912
GNMA		7.00			06/15/2033		1,170,611		1,401,543
GNMA		7.50			02/15/2013		921		930
GNMA		8.00			01/15/2013		1,317		1,333
GNMA		9.00			11/15/2017		212,963		241,126
GNMA		9.50			11/15/2017		54,835		62,145
GNMA		10.00			10/20/2017		157,110		176,620
GNMA Series 2005-90 Class A		3.76			09/16/2028		3,501,382		3,582,593
Total Agency Securities (Cost $59,676,601)									63,399,165
Asset-Backed Securities: 13.18%
Chase Issuance Trust Series 2007-A18 Class A ±		0.51			01/15/2015		3,400,000		3,407,894
Chase Issuance Trust Series 2009-A2 Class A2 ±		1.80			04/15/2014		11,000,000		11,021,562
Citibank Credit Card Issuance Trust Series 2009-A1 Class A1 ±		2.00			03/17/2014		10,500,000		10,507,457
CNH Equipment Trust Series 2011-A Class A2		0.62			06/16/2014		1,817,083		1,817,272
ContiMortgage Net Interest Margin Notes Series 1997-A Class A (c)(a)(s)(i)		7.23			10/16/2028		8,464,667		2,645
Countrywide Asset-Backed Certificates Series 2007-S1 Class A1A ±		0.35			11/25/2036		269,852		260,246
Ford Credit Auto Lease Trust Series 2011-A Class A2		0.74			09/15/2013		6,000,000		6,001,380
Ford Credit Auto Lease Trust Series 2011-B Class A2		0.82			01/15/2014		10,000,000		10,011,024
Ford Credit Auto Lease Trust Series 2012-A Class A2		0.63			04/15/2014		5,800,000		5,799,289
Ford Credit Auto Owner Trust Series 2012-A Class A2		0.62			09/15/2014		4,000,000		4,003,068
Home Equity Asset Trust Series 2003-7 Class M1 ±		1.22			03/25/2034		5,637,624		4,119,637
Honda Auto Receivables Owner Trust Series 2010-3 Class A2		0.53			01/21/2013		350,553		350,577

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

10 Wells Fargo Advantage Ultra Short-Term Income Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Asset-Backed Securities (continued)
Honda Auto Receivables Owner Trust Series 2011-1 Class A2		0.65	%		06/17/2013	$	4,199,717	$	4,201,883
Honda Auto Receivables Owner Trust Series 2011-2 Class A2		0.57			07/18/2013		6,075,920		6,077,785
Honda Auto Receivables Owner Trust Series 2012-1 Class A2		0.57			08/15/2014		7,000,000		7,000,879
Hyundai Auto Lease Securitization Trust Series 2011 Class A2 144A		0.69			11/15/2013		3,400,000		3,400,970
Hyundai Auto Receivables Trust Hart Series 2011-C Class A2		0.62			07/15/2014		2,430,000		2,431,579
Hyundai Auto Receivables Trust Hart Series 2012-A Class A2		0.85			06/16/2014		4,000,000		3,999,872
Hyundai Auto Receivables Trust Series 2010 B Class A2		0.57			03/15/2013		81,945		81,950
John Deere Owner Trust Series 2011-A Class A2		0.64			06/16/2014		5,562,072		5,565,105
John Deere Owner Trust Series 2012-A Class A2		0.82			06/16/2014		6,500,000		6,499,854
Mercedes-Benz Auto Lease Trust Series 2011-1A Class A2 144A		0.79			04/15/2013		2,821,429		2,822,690
Mercedes-Benz Auto Lease Trust Series 2011-B Class A2 144A		0.90			01/15/2014		7,500,000		7,507,865
Morgan Stanley Capital I 2004-T13 Class A4		4.66			09/13/2045		8,330,000		8,778,412
Nissan Auto Lease Trust Series 2010-B Class A2		0.90			05/15/2013		2,477,140		2,478,818
Nissan Auto Receivables Owner Trust Series 2011-B Class A2		0.74			09/15/2014		1,050,000		1,052,129
Nissan Auto Receivables Owner Trust Series 2010-A Class A2		0.55			03/15/2013		351,472		351,500
Nissan Auto Receivables Owner Trust Series 2011-A Class A2		0.65			12/16/2013		10,486,716		10,510,360
Porsche Financial Auto Securitization Series 2011-1 Class A2 144A		0.56			12/16/2013		3,628,857		3,629,222
Porsche Innovative Lease Owner Pilot Series 2011-1 Class A2 144A		0.92			02/20/2014		6,500,000		6,508,468
Residential Asset Securities Corporation Series 2001-KS1 Class AII ±		0.71			03/25/2032		88,293		85,672
Structured Asset Investment Loan Trust Series 2003-BC10 Class M1 ±		1.37			10/25/2033		3,038,536		2,377,475
Structured Asset Investment Loan Trust Series 2003-BC3 Class M1 ±		1.67			04/25/2033		5,445,138		4,318,011
Toyota Auto Receivables Owner Trust Series 2010-C Class A2		0.51			12/17/2012		536,380		536,399
Volkswagen Auto Lease Trust Series 2010-A Class A2		0.77			01/22/2013		1,063,230		1,063,566
Volkswagen Auto Lease Trust Series 2011-A Class A2		1.00			02/20/2014		6,000,000		6,013,583
Volkswagen Auto Loan Enhanced Valet Series 2012-1 Class A2		0.61			10/20/2014		3,000,000		3,002,606
Total Asset-Backed Securities (Cost $169,399,252)									157,598,704
Corporate Bonds and Notes: 43.10%
Consumer Discretionary: 8.31%
Auto Components: 0.43%
AutoZone Incorporated		5.88			10/15/2012		5,000,000		5,152,735
Diversified Consumer Services: 0.85%
Life Technologies Corporation		3.38			03/01/2013		5,000,000		5,096,590
Science Applications International Corporation		6.25			07/01/2012		5,000,000		5,090,035
									10,186,625
Hotels, Restaurants & Leisure: 0.86%
Marriott International		4.63			06/15/2012		6,038,000		6,089,462
Starwood Hotels & Resorts Worldwide Incorporated		6.25			02/15/2013		4,000,000		4,175,000
									10,264,462
Household Durables: 0.89%
Mohawk Industries Incorporated Series D		7.20			04/15/2012		4,250,000		4,255,313
Newell Rubbermaid Incorporated		5.50			04/15/2013		6,095,000		6,377,010
									10,632,323

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 11

Security Name	Interest Rate			Maturity Date		Principal		Value
Media: 3.01%
CBS Corporation		8.20	%		05/15/2014	$	7,000,000	$	7,993,545
EchoStar DBS Corporation		7.00			10/01/2013		3,000,000		3,221,250
Historic TW Incorporated		9.13			01/15/2013		3,270,000		3,494,178
Mcgraw-Hill Companies Incorporated		5.38			11/15/2012		2,025,000		2,088,889
Sirius XM Radio Incorporated 144A		9.75			09/01/2015		5,500,000		5,953,750
Time Warner Cable Incorporated		5.40			07/02/2012		6,100,000		6,193,422
Viacom Incorporated		4.38			09/15/2014		6,512,000		7,042,044
									35,987,078
Multiline Retail: 1.15%
JCPenney Company Incorporated		9.00			08/01/2012		6,280,000		6,476,250
Macy’s Incorporated		5.35			03/15/2012		4,250,000		4,254,038
Target Corporation		5.88			03/01/2012		3,019,000		3,019,000
									13,749,288
Specialty Retail: 1.12%
Best Buy Company Incorporated		6.75			07/15/2013		5,500,000		5,818,208
Home Depot Incorporated		5.25			12/16/2013		7,000,000		7,581,952
									13,400,160
Consumer Staples: 2.57%
Beverages: 0.46%
Anheuser Busch InBev Worldwide Incorporated ±		1.30			03/26/2013		3,000,000		3,016,416
Anheuser Busch InBev Worldwide Incorporated		3.00			10/15/2012		2,495,000		2,531,138
									5,547,554
Food & Staples Retailing: 0.89%
Safeway Incorporated		5.80			08/15/2012		5,500,000		5,611,529
Wm.Wrigley Jr. Company 144A		2.45			06/28/2012		5,000,000		5,026,600
									10,638,129
Food Products: 0.75%
Cadbury Schweppes Company 144A		5.13			10/01/2013		6,545,000		6,949,042
HJ Heinz Finance Company		6.00			03/15/2012		2,000,000		2,002,894
									8,951,936
Tobacco: 0.47%
UST Incorporated		6.63			07/15/2012		5,500,000		5,606,222
Energy: 3.76%
Energy Equipment & Services: 1.07%
Enterprise Products Operating LLC		4.60			08/01/2012		6,017,000		6,112,051
Kinder Morgan Energy Partners LP		7.13			03/15/2012		6,700,000		6,711,243
									12,823,294
Oil, Gas & Consumable Fuels: 2.69%
Chesapeake Energy Corporation		7.63			07/15/2013		4,000,000		4,240,000
El Paso Corporation		7.38			12/15/2012		1,000,000		1,032,329

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

12 Wells Fargo Advantage Ultra Short-Term Income Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Oil, Gas & Consumable Fuels (continued)
Kinder Morgan Incorporated		6.50	%		09/01/2012	$	7,000,000	$	7,140,000
Petrobras International Finance Company		2.88			02/06/2015		4,000,000		4,094,388
Trans Canada Pipelines Corporation		0.88			03/02/2015		2,000,000		1,994,528
Transcontinental Gas Pipe Corporation		8.88			07/15/2012		6,000,000		6,171,834
Valero Energy Corporation		4.75			04/01/2014		5,125,000		5,425,617
Weatherford International Incorporated		5.95			06/15/2012		2,020,000		2,043,424
									32,142,120
Financials: 10.62%
Commercial Banks: 2.99%
Branch Banking & Trust Corporation		3.85			07/27/2012		665,000		673,872
Branch Banking & Trust Corporation		4.75			10/01/2012		6,000,000		6,125,646
Charter One Bank NA		6.38			05/15/2012		5,000,000		5,035,745
Credit Suisse		2.20			01/14/2014		6,000,000		6,048,990
Hudson United Bank		7.00			05/15/2012		1,925,000		1,945,536
Key Bank NA		5.50			09/17/2012		3,000,000		3,077,172
Key Bank NA		5.70			08/15/2012		3,000,000		3,063,660
M&I Marshall & IIsley Bank		5.25			09/04/2012		6,510,000		6,649,314
PNC Funding Corporation ±		0.78			04/01/2012		2,100,000		2,101,126
Union Bank NA		2.13			12/16/2013		1,000,000		1,015,689
									35,736,750
Consumer Finance: 2.15%
American Express Credit Corporation		7.30			08/20/2013		7,000,000		7,608,888
American Honda Finance Corporation 144A		2.38			03/18/2013		4,000,000		4,071,340
Capital One Financial Corporation		7.38			05/23/2014		7,000,000		7,790,335
Ford Motor Credit Company LLC		3.88			01/15/2015		4,000,000		4,100,912
Ford Motor Credit Company LLC		7.00			10/01/2013		2,000,000		2,141,588
									25,713,063
Diversified Financial Services: 1.98%
Citigroup Incorporated		6.50			08/19/2013		7,000,000		7,417,767
General Electric Capital Corporation ±		0.66			06/12/2012		8,500,000		8,496,677
HSBC Finance Corporation		7.00			05/15/2012		5,095,000		5,156,517
Invesco Limited		5.38			02/27/2013		2,465,000		2,565,794
									23,636,755
Insurance: 1.22%
AON Corporation		7.38			12/14/2012		6,000,000		6,284,220
ASIF Global Financing XIX 144A		4.90			01/17/2013		3,000,000		3,060,000
Genworth Life Institutional Funding Trust 144A		5.88			05/03/2013		3,715,000		3,803,194
Mass Mutual Global Funding II 144A		3.63			07/16/2012		1,500,000		1,516,245
									14,663,659
REITs: 2.28%
Duke Realty LP		5.88			08/15/2012		4,000,000		4,063,804
Duke Realty LP		6.25			05/15/2013		1,950,000		2,050,934
ERP Operating LP		6.63			03/15/2012		5,975,000		5,984,841

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 13

Security Name	Interest Rate			Maturity Date		Principal		Value
REITs (continued)
HCP Incorporated		5.63	%		02/28/2013	$	1,000,000	$	1,026,824
Health Care REIT Incorporated		8.00			09/12/2012		3,986,000		4,083,888
Simon Property Group LP		5.45			03/15/2013		4,800,000		5,000,506
Ventas Realty LP		9.00			05/01/2012		5,000,000		5,045,320
									27,256,117
Health Care: 3.06%
Biotechnology: 1.15%
Amgen Incorporated		1.88			11/15/2014		6,000,000		6,139,026
Biogen Idec Incorporated		6.00			03/01/2013		7,226,000		7,578,795
									13,717,821
Health Care Providers & Services: 1.49%
Anthem Incorporated		6.80			08/01/2012		5,000,000		5,126,085
Aristotle Holding Incorporated 144A		2.10			02/12/2015		3,400,000		3,427,271
Express Scripts Incorporated		5.25			06/15/2012		5,251,000		5,314,122
McKesson HBOC Incorporated		5.25			03/01/2013		3,829,000		3,992,077
									17,859,555
Pharmaceuticals: 0.42%
Teva Pharmaceutical Finance LLC		1.50			06/15/2012		5,000,000		5,015,470
Industrials: 4.05%
Building Products: 0.51%
Masco Corporation		5.88			07/15/2012		6,000,000		6,059,550
Commercial Services & Supplies: 1.06%
Pitney Bowes Incorporated		3.88			06/15/2013		6,412,000		6,587,330
R.R. Donnelley & Sons Company		4.95			04/01/2014		6,000,000		6,150,000
									12,737,330
Electrical Equipment: 1.00%
Agilent Technologies Incorporated		4.45			09/14/2012		4,500,000		4,579,857
Roper Industries Incorporated		6.63			08/15/2013		6,895,000		7,367,052
									11,946,909
Machinery: 0.45%
Case New Holland Incorporated		7.75			09/01/2013		5,000,000		5,350,000
Road & Rail: 1.03%
CSX Corporation		6.30			03/15/2012		2,000,000		2,002,956
ERAC USA Finance Company 144A		5.80			10/15/2012		6,000,000		6,169,446
Union Pacific Corporation		5.45			01/31/2013		4,000,000		4,173,196
									12,345,598
Information Technology: 2.52%
Computers & Peripherals: 0.02%
Hewlett-Packard Company		2.95			08/15/2012		265,000		267,004

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

14 Wells Fargo Advantage Ultra Short-Term Income Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
IT Services: 0.62%
Electronic Data Systems Corporation Series B		6.00	%		08/01/2013	$	7,000,000	$	7,466,718
Office Electronics: 0.56%
Xerox Corporation		8.25			05/15/2014		6,000,000		6,738,606
Semiconductors & Semiconductor Equipment: 0.76%
Broadcom Corporation		1.50			11/01/2013		4,000,000		4,049,188
National Semiconductor Corporation		6.15			06/15/2012		4,908,000		4,982,155
									9,031,343
Software: 0.56%
CA Incorporated		6.13			12/01/2014		6,000,000		6,630,660
Materials: 1.47%
Metals & Mining: 1.47%
Arcelormittal Company		3.75			02/25/2015		2,000,000		2,035,040
Barrick Gold Corporation		1.75			05/30/2014		7,000,000		7,140,630
Freeport-McMoRan Copper & Gold Incorporated		1.40			02/13/2015		3,000,000		3,005,334
Rio Tinto Alcan Incorporated		4.88			09/15/2012		1,000,000		1,023,089
Teck Cominco Incorporated		7.00			09/15/2012		3,270,000		3,369,379
United States Steel Corporation		5.65			06/01/2013		1,000,000		1,027,500
									17,600,972
Telecommunication Services: 3.10%
Diversified Telecommunication Services: 3.10%
AT&T Incorporated		0.88			02/13/2015		6,445,000		6,431,388
Bellsouth Corporation 144A		4.46			04/26/2021		6,000,000		6,032,244
CenturyTel Incorporated		7.88			08/15/2012		3,000,000		3,085,185
Citizens Communications Company		6.25			01/15/2013		4,500,000		4,646,250
Qwest Corporation ±		3.80			06/15/2013		3,000,000		3,052,500
Verizon Virginia Incorporated Series A		4.63			03/15/2013		6,070,000		6,308,757
Verizon Wireless Capital LLC		7.38			11/15/2013		6,688,000		7,422,764
									36,979,088
Utilities: 3.64%
Electric Utilities: 3.39%
Allegheny Energy Supply Company LLC 144A		8.25			04/15/2012		3,000,000		3,021,372
Aquila Incorporated Step Bond		11.88			07/01/2012		5,055,000		5,232,269
Carolina Power & Light Company		6.50			07/15/2012		6,000,000		6,130,290
CenterPoint Energy Houston Electric LLC Series U		7.00			03/01/2014		5,669,000		6,319,127
Columbus Southern Power Company ±		0.96			03/16/2012		5,000,000		4,999,360
Commonwealth Edison Company		6.15			03/15/2012		4,000,000		4,006,252
Dominion Resources Incorporated		5.00			03/15/2013		8,425,000		8,792,220
Public Services Electricity & Gas		0.85			08/15/2014		2,000,000		2,007,208
									40,508,098

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 15

Security Name	Interest Rate			Maturity Date		Principal		Value
Multi-Utilities: 0.25%
DTE Energy Company ±		1.23	%		06/03/2013	$	3,000,000	$	3,009,597
Total Corporate Bonds and Notes (Cost $513,157,323)									515,352,589
Municipal Bonds and Notes: 2.97%
California: 0.15%
Glendale CA Redevelopment Agency Tax Allocation (Tax Revenue)		3.50			12/01/2012		1,730,000		1,734,948
Florida: 0.24%
Miami-Dade County FL IDA Waste Management Incorporated Florida Project (Resource Recovery Revenue) ±§		2.63			08/01/2023		2,800,000		2,839,284
Georgia: 0.14%
Atlanta GA Development Authority Tuff Yamacraw Project Class B (IDR, AMBAC Insured)		4.65			01/01/2013		1,670,000		1,686,082
Kentucky: 0.25%
Louisville/Jefferson County KY PCR Louisville Gas & Electric Project Series A (Utilities Revenue) ±§		1.90			10/01/2033		3,000,000		3,003,480
Louisiana: 0.44%
Louisiana State Gas & Fuels Tax Build America Bonds Series A-4 (Tax Revenue) ±§		2.77			05/01/2043		5,250,000		5,272,155
Minnesota: 0.12%
Minnesota Tobacco Securitization Authority Series A (Tobacco Revenue)		2.64			03/01/2014		1,500,000		1,487,265
New Jersey: 0.12%
Atlantic City NJ (Tax Revenue, AGM Insured)		4.00			12/15/2013		1,375,000		1,422,878
New York: 0.05%
Onondaga County NY Property Tax Receivables (Lease Revenue)		3.50			04/01/2013		595,000		595,547
Ohio: 0.41%
Ohio State Air Quality Development Authority PCR FirstEnergy Series D (IDR) ±§		4.75			08/01/2029		1,800,000		1,822,860
Ohio State Water Development Authority Solid Waste Management Incorporated Project (Resource Recovery Revenue) ±		1.75			06/01/2013		3,000,000		3,032,130
									4,854,990
Oklahoma: 0.15%
Oklahoma County OK Finance Authority Build America Bonds (Lease Revenue)		2.33			11/01/2012		1,725,000		1,738,369
Oregon: 0.10%
Oregon State School Boards Association Series A (Miscellaneous Revenue, NATL-RE FGIC Insured) (z)		0.54			06/30/2012		1,250,000		1,247,738
Pennsylvania: 0.08%
Pennsylvania EDFA Waste Management Project (Resource Recovery Revenue) ±§		2.63			12/01/2033		1,000,000		1,013,580

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

16 Wells Fargo Advantage Ultra Short-Term Income Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Texas: 0.22%
Houston TX Airport Services Sub-Lien Series A (Airport Revenue)		5.00	%		07/01/2013	$	2,500,000	$	2,631,300
West Virginia: 0.50%
West Virginia Solid Waste Disposal Facilities Amos Project Series A (Utilities Revenue) ±		2.00			01/01/2041		6,000,000		6,023,940
Total Municipal Bonds and Notes (Cost $35,451,937)									35,551,556
Non-Agency Mortgage Backed Securities: 7.53%
Aames Mortgage Trust Series 2003-1 Class M1 ±		1.26			10/25/2033		8,134,986		6,501,310
Bank of America Mortgage Securities Series 2002-K Class 3A1 ±		2.68			10/20/2032		9,263		9,261
Bear Stearns Commercial Mortgage Securities Series 2003-PWR2 Class A4 ±		5.19			05/11/2039		1,000,000		1,047,734
Bear Stearns Commercial Mortgage Securities Series 2004-PWR3 Class A3		4.49			02/11/2041		2,353,871		2,399,722
Citicorp Mortgage Securities Incorporated Series 1992-7 Class A ±		2.24			03/25/2022		145,508		143,945
Collateralized Mortgage Obligation Trust Series 66 Class Z		8.00			09/20/2021		167,041		187,987
Commercial Mortgage Trust Pass-Through Certificates Series 2004-LB4A Class A4		4.58			10/15/2037		1,595,727		1,599,860
Countrywide Alternative Loan Trust Series 2003-2011 T1 Class A1		4.75			07/25/2018		2,824,042		2,896,648
Countrywide Home Loans Mortgage Pass-Through Trust Series 2001-HYB1 Class 1A1 ±		2.16			06/19/2031		694,066		664,501
Countrywide Home Loans Mortgage Pass-Through Trust Series 2001-HYB1 Class 2A1 ±		1.94			06/19/2031		411,858		395,439
Countrywide Home Loans Mortgage Pass-Through Trust Series 2004-20 Class 3A1 ±		2.32			09/25/2034		287,712		182,089
Credit Suisse First Boston Mortgage Securities Corporation Series 2003-C3 Class A5		3.94			05/15/2038		1,370,557		1,403,211
DLJ Mortgage Acceptance Corporation Series 1990-2 Class A ±		3.03			01/25/2022		233,268		230,671
DLJ Mortgage Acceptance Corporation Series 1991-3 Class A1 ±		2.00			01/25/2021		63,633		62,505
EquiFirst Mortgage Loan Trust Series 2003-2 Class 3A3 ±		1.04			09/25/2033		951,126		797,231
GE Capital Commercial Mortgage Corporation Series 2002-2A Class A3		5.35			08/11/2036		4,417,617		4,461,197
GE Capital Commercial Mortgage Corporation Series 2003-C1 Class A4		4.82			01/10/2038		2,955,737		3,034,279
Greenwich Capital Commercial Funding Corporation Series 2003-C1 Class A4		4.11			07/05/2035		3,556,635		3,648,101
GSMPS Mortgage Loan Trust Series 1998-1 Class A ±144A		8.00			09/19/2027		122,050		126,726
GSMPS Mortgage Loan Trust Series 2004-4 Class 1AF ±144A		0.64			06/25/2034		3,554,016		3,042,682
GSMPS Mortgage Loan Trust Series 2004-4 Class 2A1 ±144A		3.66			06/25/2034		3,152,992		2,840,486
GSMPS Mortgage Loan Trust Series 2006-RP1 Class 1AF1 ±144A		0.59			01/25/2036		3,451,957		2,699,858
GSR Mortgage Loan Trust Series 2004-1 Class 2A2 ±		1.94			04/25/2032		1,318,614		1,162,632
Housing Securities Incorporated Series 1992-8 Class C ±		2.81			06/25/2024		85,895		81,439
Housing Securities Incorporated Series 1992-8 Class E ±		3.72			06/25/2024		190,044		188,448
Jeffries & Company Series 2010-R7 Class 7A6 ±144A		3.25			10/26/2036		1,872,894		1,867,869
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2002-C1 Class A3		5.38			07/12/2037		973,288		980,657
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2003-C1 Class A2		4.99			01/12/2037		6,140,000		6,301,322
Master Mortgages Trust Series 2002-3 Class 4A1 ±		2.63			10/25/2032		39,223		37,790
Morgan Stanley Capital I Series 2003-T11 Class A4		5.15			06/13/2041		7,032,443		7,299,950
Morgan Stanley Capital I Series 2004-IQ7 Class A3 ±		5.35			06/15/2038		1,589,768		1,602,871
Morgan Stanley Capital I Series 2004-IQ8 Class A4		4.90			06/15/2040		3,154,961		3,157,867
Morgan Stanley Dean Witter Capital I Series 2003-IQ4 Class A2		4.07			05/15/2040		4,651,549		4,766,005
Morgan Stanley Dean Witter Capital I Series 2004-T15 Class A3		5.03			06/13/2041		1,577,188		1,618,384

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 17

Security Name	Interest Rate			Maturity Date		Principal		Value
Non-Agency Mortgage Backed Securities (continued)
Morgan Stanley Mortgage Trust Series 35 Class 2 ±(w)(i)		15,198.50	%		04/20/2021	$	42	$	8,740
Nomura Asset Securities Corporation Series 1998-D6 Class A2 ±		7.31			03/15/2030		4,500,000		4,686,125
Prudential Home Mortgage Securities Series 1988-1 Class A ±		2.49			04/25/2018		31,551		30,625
Resecuritization Mortgage Trust Series 1998-B Class A ±144A(i)		0.49			04/26/2021		11,649		11,063
Residential Finance LP Series 2003-C Class B3 ±144A		1.65			09/10/2035		6,116,918		4,748,624
Residential Finance LP Series 2003-C Class B4 ±144A		1.85			09/10/2035		3,624,840		2,704,312
SACO I Trust Series 2005-2 Class A ±144A(i)		0.64			04/25/2035		70,822		27,570
Salomon Brothers Mortgage Securities VII Series 1990-2 Class A ±		1.89			11/25/2020		624,035		625,107
Structured Asset Mortgage Investments Incorporated Series 2001-4 Class A1 ±		8.96			10/25/2024		2,143,581		2,196,658
Structured Asset Mortgage Investments Incorporated Series 2001-4 Class A2 ±		9.65			10/25/2024		255,760		263,911
Structured Asset Securities Corporation Series 1998-2 Class A ±		0.76			02/25/2028		397,457		352,210
Structured Asset Securities Corporation Series 1998-RF1 Class A ±144A		7.83			04/15/2027		2,443,071		2,455,871
Structured Asset Securities Corporation Series 1998-RF2 Class A ±144A		7.80			07/15/2027		3,083,589		3,112,414
Terwin Mortgage Trust Series 2004-21HE Class 1A1 ±		1.20			12/25/2034		99,133		84,837
Wilshire Funding Corporation Series 1996-3 Class M2 ±		5.71			08/25/2032		248,348		242,954
Wilshire Funding Corporation Series 1996-3 Class M3 ±		5.71			08/25/2032		222,544		212,344
Wilshire Funding Corporation Series 1998-2 Class M1 ±		2.00			12/28/2037		954,796		861,544
Total Non-Agency Mortgage Backed Securities (Cost $96,652,195)									90,065,586
Term Loans: 0.03%
SUPERVALU Incorporated		1.62			06/01/2012		381,513		380,845
Total Term Loans (Cost $379,667)									380,845
Yankee Corporate Bonds and Notes: 17.17%
Consumer Discretionary: 0.35%
Multiline Retail: 0.35%
Wesfarmers Limited 144A		7.00			04/10/2013		4,000,000		4,231,524
Energy: 1.16%
Oil, Gas & Consumable Fuels: 1.16%
Husky Energy Incorporated		6.25			06/15/2012		6,000,000		6,091,854
Noble Corporation		5.88			06/01/2013		7,420,000		7,797,864
									13,889,718
Financials: 12.75%
Capital Markets: 0.63%
BP Capital Markets plc		5.25			11/07/2013		7,000,000		7,519,855
Commercial Banks: 11.76%
ANZ National (International) Limited 144A		2.38			12/21/2012		3,500,000		3,541,542
Australia & New Zealand Banking Group Limited ±144A		0.84			06/18/2012		6,000,000		6,001,290
Banco Santander Chile 144A		2.88			11/13/2012		4,000,000		3,995,136
Bank Nederlandse Gemeenten		5.00			05/16/2014		14,000,000		15,133,272
Bank of Montreal 144A«		1.30			10/31/2014		5,500,000		5,557,926
Bank of New York Mellon Corporation ±		0.74			06/29/2012		2,700,000		2,704,876
Bank of Nova Scotia 144A		1.45			07/26/2013		12,000,000		12,153,228

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

18 Wells Fargo Advantage Ultra Short-Term Income Fund Portfolio of Investments—February 29, 2012 (Unaudited)

Security Name	Interest Rate			Maturity Date		Principal		Value
Commercial Banks (continued)
Canadian Imperial Bank 144A«		0.90	%		09/19/2014	$	4,000,000	$	4,004,908
Canadian Imperial Bank 144A		2.00			02/04/2013		14,000,000		14,192,080
Commonwealth Bank of Australia ±144A		1.11			03/19/2013		4,500,000		4,506,503
HSBC Bank plc 144A«		1.63			07/07/2014		10,000,000		10,031,920
ING Bank NV ±144A		1.60			03/15/2013		6,000,000		5,978,982
Nordea Eiendomskreditt 144A		1.88			04/07/2014		12,500,000		12,621,188
SpareBank 1 Boligkreditt 144A		1.25			10/25/2014		14,000,000		14,014,686
Stadshypotek AB 144A		1.45			09/30/2013		12,500,000		12,594,688
Svenska Handelsbanken AB 144A		2.88			09/14/2012		2,507,000		2,534,763
Westpac Banking Corporation ±144A		0.73			12/14/2012		5,000,000		5,006,280
Westpac Banking Corporation		2.25			11/19/2012		3,000,000		3,037,392
Xstrata Finance Canada Limited 144A		2.85			11/10/2014		3,000,000		3,062,157
									140,672,817
Diversified Financial Services: 0.36%
Amvescap plc		5.63			04/17/2012		4,250,000		4,272,963
Industrials: 0.33%
Building Products: 0.33%
Tyco Electronics Group SA		6.00			10/01/2012		3,830,000		3,947,129
Materials: 1.14%
Metals & Mining: 1.14%
Arcelormittal Company		5.38			06/01/2013		7,500,000		7,780,658
Rio Tinto Finance USA Limited		8.95			05/01/2014		5,000,000		5,837,110
									13,617,768
Telecommunication Services: 1.44%
Diversified Telecommunication Services: 1.44%
British Telecommunications plc		5.15			01/15/2013		3,553,000		3,688,487
Deutsche Telekom International Finance BV		5.25			07/22/2013		7,000,000		7,366,997
Telefonica Emisiones SAU		2.58			04/26/2013		6,145,000		6,143,593
									17,199,077
Total Yankee Corporate Bonds and Notes (Cost $204,498,608)									205,350,851
Other: 0.03%
Gryphon Funding Limited, Pass-Through Entity (v)(a)(i)							198,148		53,500
VFNC Corporation, Pass-Through Entity 0.24% ±144A(v)(a)(i)							527,413		226,788
Total Other (Cost $114,148)									280,288

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

Portfolio of Investments—February 29, 2012 (Unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 19

Security Name	Yield			Maturity Date		Principal		Value
Short-Term Investments: 12.65%
U.S. Treasury Securities: 0.07%
U.S. Treasury Bill #		0.08	%		03/29/2012	$	800,000	$	799,950
						Shares
Investment Companies: 12.58%
Wells Fargo Advantage Cash Investment Money Market Fund, Institutional Class (l)(u) ##		0.02					136,537,829		136,537,829
Wells Fargo Securities Lending Cash Investments, LLC (l)(u)(v)(r)		0.15					13,887,329		13,887,329
									150,425,158
Total Short-Term Investments (Cost $151,225,152)									151,225,108

Total Investments in Securities
(Cost $1,230,554,883) *	101.96	%		1,219,204,692
Other Assets and Liabilities, Net	(1.96	)		(23,434,894	)
Total Net Assets	100.00	%	$	1,195,769,798

± Variable rate investment.

(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.

(s) Security which has defaulted on payment of interest and/or principal.

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

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

(w) 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*0.25%)+15,573.5% = 15,198.50%.

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

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

(i) Illiquid security.

# All or a portion of this security is segregated as collateral for investments in derivative instruments.

(l) Investment in an affiliate.

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

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

(r) The investment company is exempt from registration under Section 3(c)(7) of the 1940 Act.

* Cost for federal income tax purposes is $1,230,739,508 and net unrealized appreciation (depreciation) consists of:

Gross unrealized appreciation	$	8,015,523
Gross unrealized depreciation		(19,550,339	)
Net unrealized depreciation	$	(11,534,816	)

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

20 Wells Fargo Advantage Ultra Short-Term Income Fund Statement of Assets and Liabilities—February 29, 2012 (Unaudited)

Assets
Investments
In unaffiliated securities (including securities on loan), at value (see cost below)	$	1,068,779,534
In affiliated securities, at value (see cost below)		150,425,158
Total investments, at value (see cost below)		1,219,204,692
Receivable for investments sold		2,525,941
Principal paydown receivable		87,496
Receivable for Fund shares sold		1,798,867
Receivable for interest		10,489,429
Receivable for daily variation margin on open futures contracts		84,469
Receivable for securities lending income		3,671
Prepaid expenses and other assets		66,179
Total assets		1,234,260,744
Liabilities
Dividends payable		240,919
Payable for investments purchased		20,365,401
Payable for Fund shares redeemed		3,388,965
Payable upon receipt of securities loaned		14,001,477
Advisory fee payable		170,951
Distribution fees payable		9,865
Due to other related parties		162,090
Accrued expenses and other liabilities		151,278
Total liabilities		38,490,946
Total net assets	$	1,195,769,798
NET ASSETS CONSIST OF
Paid-in capital	$	1,303,919,853
Overdistributed net investment income		(337,668	)
Accumulated net realized losses on investments		(96,478,207	)
Net unrealized losses on investments		(11,334,180	)
Total net assets	$	1,195,769,798
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE1
Net assets – Class A	$	137,608,621
Shares outstanding – Class A		16,141,820
Net asset value per share – Class A		$8.52
Maximum offering price per share – Class A2		$8.69
Net assets – Class C	$	16,436,158
Shares outstanding – Class C		1,928,301
Net asset value per share – Class C		$8.52
Net assets – Administrator Class	$	96,608,318
Shares outstanding – Administrator Class		11,376,770
Net asset value per share – Administrator Class		$8.49
Net assets – Institutional Class	$	579,939,249
Shares outstanding – Institutional Class		68,061,243
Net asset value per share – Institutional Class		$8.52
Net assets – Investor Class	$	365,177,452
Shares outstanding – Investor Class		42,817,869
Net asset value per share – Investor Class		$8.53
Investments in unaffiliated securities, at cost	$	1,080,129,725
Investments in affiliated securities, at cost	$	150,425,158
Total investments, at cost	$	1,230,554,883
Securities on loan, at value	$	13,704,840

1. The Fund has an unlimited amount 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.

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

Statement of Operations—Six Months Ended February 29, 2012 (Unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 21

Investment income
Interest	$	11,394,486
Income from affiliated securities		220,781
Securities lending income, net		27,925
Total investment income		11,643,192
Expenses
Advisory fee		2,343,128
Administration fees
Fund level		308,093
Class A		122,835
Class C		14,658
Administrator Class		50,911
Institutional Class		234,767
Investor Class		353,180
Shareholder servicing fees
Class A		191,930
Class C		22,903
Administrator Class		122,881
Investor Class		464,710
Distribution fees
Class C		68,709
Custody and accounting fees		37,436
Professional fees		21,167
Registration fees		55,877
Shareholder report expenses		77,747
Trustees’ fees and expenses		7,202
Other fees and expenses		27,674
Total expenses		4,525,808
Less: Fee waivers and/or expense reimbursements		(1,191,498	)
Net expenses		3,334,310
Net investment income		8,308,882
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		(2,644,245	)
Futures transactions		169,188
Net realized losses on investments		(2,475,057	)
Net change in unrealized gains (losses) on:
Unaffiliated securities		3,379,512
Futures transactions		133,410
Net change in unrealized gains (losses) on investments		3,512,922
Net realized and unrealized gains (losses) on investments		1,037,865
Net increase in net assets resulting from operations	$	9,346,747

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

22 Wells Fargo Advantage Ultra Short-Term Income Fund Statements of Changes in Net Assets

	Six Months Ended February 29, 2012 (Unaudited)						Year Ended August 31, 2011
Operations
Net investment income				$	8,308,882					$	16,357,676
Net realized losses on investments					(2,475,057	)					(10,290,781	)
Net change in unrealized gains (losses) on investments					3,512,922						11,493,756
Net increase in net assets resulting from operations					9,346,747						17,560,651
Distributions to shareholders from
Net investment income
Class A					(961,685	)					(2,364,368	)
Class C					(46,053	)					(121,803	)
Administrator Class					(713,267	)					(2,105,923	)
Institutional Class					(4,689,104	)					(8,589,073	)
Investor Class					(2,263,662	)					(5,527,588	)
Total distributions to shareholders					(8,673,771	)					(18,708,755	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		6,408,466			54,468,440			16,609,045			142,249,012
Class C		195,258			1,659,926			1,471,494			12,583,348
Administrator Class		3,269,401			27,684,256			16,037,475			136,840,531
Institutional Class		29,888,745			253,977,979			126,731,420			1,084,663,988
Investor Class		4,134,709			35,158,346			13,846,035			118,606,838
					372,948,947						1,494,943,717
Reinvestment of distributions
Class A		89,391			759,692			219,878			1,882,345
Class C		4,082			34,690			11,700			100,162
Administrator Class		63,111			534,372			206,734			1,763,127
Institutional Class		371,293			3,154,992			610,542			5,223,955
Investor Class		246,877			2,099,364			589,761			5,050,370
					6,583,110						14,019,959
Payment for shares redeemed
Class A		(9,229,948	)		(78,425,981	)		(22,479,813	)		(192,388,389	)
Class C		(515,649	)		(4,380,819	)		(1,731,271	)		(14,816,194	)
Administrator Class		(4,619,346	)		(39,098,396	)		(27,810,867	)		(237,252,666	)
Institutional Class		(32,295,439	)		(274,369,621	)		(87,878,062	)		(751,540,648	)
Investor Class		(6,741,695	)		(57,329,316	)		(20,555,497	)		(176,043,901	)
					(453,604,133	)					(1,372,041,798	)
Net increase (decrease) in net assets resulting from capital share transactions					(74,072,076	)					136,921,878
Total increase (decrease) in net assets					(73,399,100	)					135,773,774
Net assets
Beginning of period					1,269,168,898						1,133,395,124
End of period				$	1,195,769,798					$	1,269,168,898
Undistributed (overdistributed) net investment income				$	(337,668	)				$	27,221

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

Financial Highlights Wells Fargo Advantage Ultra Short-Term Income Fund 23

(For a share outstanding throughout each period)

	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,						Year Ended May 31,
Class A				2011			20101			2010			20092			20082			20072
Net asset value, beginning of period	$	8.52		$	8.52		$	8.48		$	8.03		$	8.71		$	9.09		$	9.12
Net investment income		0.05			0.10			0.04			0.17			0.31			0.43			0.47
Net realized and unrealized gains (losses) on investments		0.00			0.02			0.04			0.48			(0.68	)		(0.37	)		(0.02	)
Total from investment operations		0.05			0.12			0.08			0.65			(0.37	)		0.06			0.45
Distributions to shareholders from
Net investment income		(0.05	)		(0.12	)		(0.04	)		(0.20	)		(0.31	)		(0.44	)		(0.48	)
Net asset value, end of period	$	8.52		$	8.52		$	8.52		$	8.48		$	8.03		$	8.71		$	9.09
Total return3		0.62	%		1.37	%		0.94	%		8.22	%		(4.27	)%		0.68	%		5.06	%
Ratios to average net assets (annualized)
Gross expenses		0.88	%		0.87	%		0.88	%		0.91	%		0.93	%		1.08	%		1.06	%
Net expenses		0.70	%		0.70	%		0.70	%		0.70	%		0.70	%		0.73	%		0.80	%
Net investment income		1.19	%		1.17	%		1.62	%		1.98	%		3.70	%		4.89	%		5.13	%
Supplemental data
Portfolio turnover rate		21	%		60	%		9	%		45	%		32	%		48	%		28	%
Net assets, end of period (000’s omitted)		$137,609			$160,768			$208,845			$154,016			$44,163			$42,615			$44,858

1. 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.

2. On June 20, 2008, Advisor Class was renamed Class A.

3. Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

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

24 Wells Fargo Advantage Ultra Short-Term Income Fund Financial Highlights

(For a share outstanding throughout each period)

	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,						Year Ended May 31,
Class C				2011			20101			2010			20092
Net asset value, beginning of period		$8.52			$8.52			$8.48			$8.03			$8.57
Net investment income		0.02			0.04			0.02			0.12			0.21
Net realized and unrealized gains (losses) on investments		0.00			0.01			0.04			0.47			(0.54	)
Total from investment operations		0.02			0.05			0.06			0.59			(0.33	)
Distributions to shareholders from
Net investment income		(0.02	)		(0.05	)		(0.02	)		(0.14	)		(0.21	)
Net asset value, end of period	$	8.52		$	8.52		$	8.52		$	8.48		$	8.03
Total return3		0.25	%		0.61	%		0.75	%		7.41	%		(3.85	)%
Ratios to average net assets (annualized)
Gross expenses		1.63	%		1.62	%		1.63	%		1.67	%		1.64	%
Net expenses		1.45	%		1.45	%		1.45	%		1.45	%		1.45	%
Net investment income		0.44	%		0.43	%		0.88	%		1.30	%		2.77	%
Supplemental data
Portfolio turnover rate		21	%		60	%		9	%		45	%		32	%
Net assets, end of period (000’s omitted)		$16,436			$19,117			$21,226			$16,519			$4,775

1. 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.

2. For the period from July 18, 2008 (commencement of class operations) to May 31, 2009.

3. Total return calculations do not include any sales charges. Returns for periods of less than one year are not annualized.

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

Financial Highlights Wells Fargo Advantage Ultra Short-Term Income Fund 25

(For a share outstanding throughout each period)

	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,						Year Ended May 31,
Administrator Class				2011			20101			2010			2009			2008			2007
Net asset value, beginning of period	$	8.48		$	8.48		$	8.45		$	8.00		$	8.68		$	9.06		$	9.09
Net investment income		0.06			0.11			0.04			0.19			0.32			0.46			0.49
Net realized and unrealized gains (losses) on investments		0.01			0.02			0.03			0.46			(0.68	)		(0.38	)		(0.02	)
Total from investment operations		0.07			0.13			0.07			0.65			(0.36	)		0.08			0.47
Distributions to shareholders from
Net investment income		(0.06	)		(0.13	)		(0.04	)		(0.20	)		(0.32	)		(0.46	)		(0.50	)
Net asset value, end of period	$	8.49		$	8.48		$	8.48		$	8.45		$	8.00		$	8.68		$	9.06
Total return2		0.81	%		1.52	%		0.86	%		8.41	%		(4.15	)%		0.84	%		5.27	%
Ratios to average net assets (annualized)
Gross expenses		0.81	%		0.79	%		0.79	%		0.81	%		0.81	%		0.90	%		0.88	%
Net expenses		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%		0.57	%		0.60	%
Net investment income		1.34	%		1.33	%		1.65	%		2.32	%		3.77	%		5.03	%		5.36	%
Supplemental data
Portfolio turnover rate		21	%		60	%		9	%		45	%		32	%		48	%		28	%
Net assets, end of period (000’s omitted)		$96,608			$107,449			$205,587			$82,835			$59,184			$28,254			$17,003

1. 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.

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

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

26 Wells Fargo Advantage Ultra Short-Term Income Fund Financial Highlights

(For a share outstanding throughout each period)

	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,						Year Ended May 31,
Institutional Class				2011			20101			2010			2009			2008			2007
Net asset value, beginning of period	$	8.51		$	8.51		$	8.48		$	8.03		$	8.71		$	9.09		$	9.12
Net investment income		0.07			0.13			0.04			0.19			0.33			0.47			0.51
Net realized and unrealized gains (losses) on investments		0.01			0.02			0.04			0.49			(0.67	)		(0.37	)		(0.02	)
Total from investment operations		0.08			0.15			0.08			0.68			(0.34	)		0.10			0.49
Distributions to shareholders from
Net investment income		(0.07	)		(0.15	)		(0.05	)		(0.23	)		(0.34	)		(0.48	)		(0.52	)
Net asset value, end of period	$	8.52		$	8.51		$	8.51		$	8.48		$	8.03		$	8.71		$	9.09
Total return2		0.91	%		1.72	%		1.03	%		8.48	%		(3.93	)%		1.07	%		5.54	%
Ratios to average net assets (annualized)
Gross expenses		0.55	%		0.54	%		0.54	%		0.57	%		0.59	%		0.63	%		0.61	%
Net expenses		0.35	%		0.35	%		0.35	%		0.35	%		0.35	%		0.35	%		0.35	%
Net investment income		1.54	%		1.50	%		2.01	%		2.26	%		4.09	%		5.24	%		5.57	%
Supplemental data
Portfolio turnover rate		21	%		60	%		9	%		45	%		32	%		48	%		28	%
Net assets, end of period (000’s omitted)		$579,939			$596,838			$260,747			$197,087			$27,680			$61,898			$42,757

1. 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.

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

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

Financial Highlights Wells Fargo Advantage Ultra Short-Term Income Fund 27

(For a share outstanding throughout each period)

	Six Months Ended February 29, 2012 (Unaudited)			Year Ended August 31,						Year Ended May 31,
Investor Class				2011			20101			2010			2009			2008			2007
Net asset value, beginning of period	$	8.52		$	8.52		$	8.48		$	8.03		$	8.71		$	9.09		$	9.12
Net investment income		0.05			0.10			0.04			0.18			0.31			0.43			0.47
Net realized and unrealized gains (losses) on investments		0.01			0.01			0.04			0.47			(0.68	)		(0.37	)		(0.02	)
Total from investment operations		0.06			0.11			0.08			0.65			(0.37	)		0.06			0.45
Distributions to shareholders from
Net investment income		(0.05	)		(0.11	)		(0.04	)		(0.20	)		(0.31	)		(0.44	)		(0.48	)
Net asset value, end of period	$	8.53		$	8.52		$	8.52		$	8.48		$	8.03		$	8.71		$	9.09
Total return2		0.72	%		1.34	%		0.93	%		8.18	%		(4.32	)%		0.64	%		5.02	%
Ratios to average net assets (annualized)
Gross expenses		0.91	%		0.90	%		0.92	%		0.98	%		0.99	%		1.21	%		1.23	%
Net expenses		0.73	%		0.73	%		0.74	%		0.75	%		0.75	%		0.78	%		0.84	%
Net investment income		1.16	%		1.15	%		1.66	%		2.16	%		3.69	%		4.86	%		5.10	%
Supplemental data
Portfolio turnover rate		21	%		60	%		9	%		45	%		32	%		48	%		28	%
Net assets, end of period (000’s omitted)		$365,177			$384,998			$436,991			$453,772			$423,039			$594,246			$718,019

1. 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.

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

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

28 Wells Fargo Advantage Ultra Short-Term Income Fund Notes to Financial Statements (Unaudited)

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 Wells Fargo Advantage Ultra Short-Term Income Fund (the “Fund”) which 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 the Fund, are in conformity with U.S. generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Securities valuation

Fixed income securities with original maturities exceeding 60 days are valued based on available evaluated prices received from an independent pricing service approved by the 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 Fund’s 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.

Investments in open-end mutual funds and non-registered investment companies are generally valued at net asset value.

Investments which are not valued using any of the methods discussed above, are valued at their fair value, as determined by procedures established in good faith and approved by the Board of Trustees.

Security loans

The Fund may lend its securities from time to time in order to earn additional income in the form of fees or interest on securities received as collateral or the investment of any cash received as collateral. The Fund continues to receive interest or dividends on the securities loaned. The 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 a securities lending transaction, the net asset value of the 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 the instrument in which collateral is invested. The amount of securities lending activity undertaken by the Fund fluctuates from time to time. In the event of default or bankruptcy by the borrower, the Fund may be prevented from recovering the loaned securities or gaining access to the collateral or may experience delays or costs in doing so. In 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 Fund lends its securities through an unaffiliated securities lending agent. Cash collateral received in connection with its 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 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 Statement of Operations.

Notes to Financial Statements (Unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 29

For Wells Fargo Advantage Funds that participated in securities lending activity prior to February 13, 2009, certain structured investment vehicles purchased in a joint account by the former securities lending agent defaulted or were impaired. Certain of the Wells Fargo Advantage Funds still hold ownership interest in these structured investment vehicles, which have since been restructured as pass-through securities. If the Fund holds an ownership interest in such pass-through securities, information regarding this ownership interest can be found in the Portfolio of Investments under the category “Other”.

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.

Term loans

The 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

The Fund may be subject to interest rate risk in the normal course of pursuing its investment objectives. The Fund 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 when available. 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 Statement of Assets and Liabilities as an asset or liability and in the Statement 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.

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.

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 income and any net realized capital gains (after reduction for capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income taxes was required.

The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities.

30 Wells Fargo Advantage Ultra Short-Term Income Fund Notes to Financial Statements (Unaudited)

Under the recently enacted Regulated Investment Company Modernization Act of 2010, the Fund is permitted to carry forward capital losses incurred in taxable years which began after December 22, 2010 for an unlimited period. However, any losses incurred are 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.

At August 31, 2011, net capital loss carryforwards, which were available to offset future net realized capital gains, were as follows:

Expiration
2012	2013		2014		2015		2016		2017		2018		2019
$1,305,797	$	477,614	$	25,866,042	$	2,154,408	$	8,848,032	$	35,029,445	$	7,738,751	$	7,448,920

As of August 31, 2011, the Fund had $4,949,516 of current year deferred post-October capital losses, which would be treated as realized for tax purposes on the first day of the succeeding year.

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 significant unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:

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

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

n Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

Notes to Financial Statements (Unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 31

As of February 29, 2012, the inputs used in valuing the Fund’s assets, which are carried at fair value, were as follows:

Investments in Securities	Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Agency securities	$	0	$	63,399,165	$	0	$	63,399,165
Asset-backed securities		0		157,596,059		2,645		157,598,704
Corporate bonds and notes		0		515,352,589		0		515,352,589
Municipal bonds and notes		0		35,551,556		0		35,551,556
Non-agency mortgage backed securities		0		90,065,586		0		90,065,586
Term loans		0		380,845		0		380,845
Yankee corporate bonds and bonds		0		205,350,851		0		205,350,851
Other		0		0		280,288		280,288
Short-term investments
U.S. Treasury securities		799,950		0		0		799,950
Investment companies		136,537,829		13,887,329		0		150,425,158
	$	137,337,779	$	1,081,583,980	$	282,933	$	1,219,204,692

Further details on the major security types listed above can be found in the Portfolio of Investments.

As of February 29, 2012, the inputs used in valuing the Fund’s other financial instruments, which are carried at fair value, were as follows:

Other financial instruments	Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Futures contracts+	$	16,011	$	0	$	0	$	16,011

+ Futures contracts are presented at the unrealized gains or losses on the instrument.

Transfers in and transfers out are recognized at the end of the reporting period. For the six months ended February 29, 2012, the Fund 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:

	Asset- backed securities			Corporate bonds and notes			Non-agency mortgage backed securities			Other			Total
Balance as of August 31, 2011	$	3,239,702		$	2,713,483		$	3,633,931		$	382,831		$	9,969,947
Accrued discounts (premiums)		(8,203	)		(46,723	)		(12	)		0			(54,938	)
Realized gains (losses)		(366,729	)		(1,441	)		(5,541	)		0			(373,711	)
Change in unrealized gains (losses)		64,370			(18,018	)		18,752			(58,547	)		6,557
Purchases		296,505			0			0			0			296,505
Sales		(3,223,000	)		(2,647,301	)		(1,779,261	)		(43,996	)		(7,693,558	)
Transfers into Level 3		0			0			0			0			0
Transfers out of Level 3		0			0			(1,867,869	)		0			(1,867,869	)
Balance as of February 29, 2012	$	2,645		$	0		$	0		$	280,288		$	282,933
Change in unrealized gains (losses) relating to securities still held at February 29, 2012	$	0		$	0		$	0		$	(80,109	)	$	(80,109	)

Transfers out of Level 3 into Level 2 are due to the availability of significant observable inputs which are currently used in the determination of the fair value of the securities.

32 Wells Fargo Advantage Ultra Short-Term Income Fund Notes to Financial Statements (Unaudited)

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Advisory fee

The Trust has entered into an advisory contract with Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”). The adviser is responsible for implementing investment policies and guidelines and for supervising the sub-advisers, who is responsible for day-to-day portfolio management of the Fund.

Pursuant to the contract, Funds Management is entitled to receive an annual advisory fee starting at 0.40% and declining to 0.30% as the average daily net assets of the Fund increase. For the six months ended February 29, 2012, the advisory fee was equivalent to an annual rate of 0.38% of the Fund’s average daily net assets.

Funds Management has retained the services of certain sub-advisers to provide daily portfolio management to the Fund. The fees related to sub-advisory services are borne directly by Funds Management and do not increase the overall fees paid by the Fund. Wells Capital Management, an affiliate of Funds Management, is the sub-adviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.15% and declining to 0.05% as the average daily net assets of the Fund increase.

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 the Fund an annual fund level administration fee starting at 0.05% and declining to 0.03% as the average daily net assets of the Fund increase and a class level administration fee which is calculated based on the average daily net assets of each class as follows:

	Class Level Administration Fee
Class A, Class C		0.16	%
Administrator Class		0.10
Institutional Class		0.08
Investor Class		0.19

Funds Management has contractually waived and/or reimbursed 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. Funds Management has committed through July 11, 2013 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.70% for Class A, 1.45% for Class C, 0.55% for Administrator Class, 0.35% for Institutional Class and 0.73% for Investor Class.

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 the average daily net assets of Class C shares.

For the six months ended February 29, 2012, Wells Fargo Funds Distributor, LLC received $2,031 from the sale of Class A shares and $1,106 and $1,222 in contingent deferred sales charges from redemptions of Class A and Class C shares, respectively.

Shareholder servicing fees

The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class C, Administrator Class and Investor Class of the 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.

Notes to Financial Statements (Unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 33

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding short-term securities (securities with maturities of one year or less at purchase date), for the six months ended February 29, 2012 were as follows:

Purchases at Cost			Sales Proceeds
U.S. Government	Non-U.S. Government		U.S. Government		Non-U.S. Government
$18,555,764	$	219,166,645	$	137	$	313,964,585

6. DERIVATIVE TRANSACTIONS

During the six months ended February 29, 2012, the Fund entered into futures contracts to speculate on interest rates.

At February 29, 2012, the Fund had short futures contracts outstanding as follows:

Expiration Date	Contracts		Type	Contract Value at February 29, 2012		Net Unrealized Gains (Losses)
June 2012		1,229 Short	2-Year U.S. Treasury Notes	$	270,668,048	$	16,351
June 2012		35 Short	5-Year U.S. Treasury Notes		4,311,016		(340	)

The Fund had an average notional amount of $334,417,369 in short futures contracts during the six months ended February 29, 2012.

On February 29, 2012, the cumulative unrealized gains on futures contracts in the amount of $16,011 is reflected in net unrealized losses on investments on the Statement of Assets and Liabilities. The receivable for daily variation margin on open futures contracts reflected in the Statement of Assets and Liabilities only represents the current day’s variation margin. The realized gains and change in unrealized gains (losses) on futures contracts are reflected in the Statement of Operations.

7. BANK BORROWINGS

The Trust (excluding the money market funds) and Wells Fargo Variable Trust are parties to a $150,000,000 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, an annual commitment fee equal to 0.10% of the unused balance is allocated to each participating fund. Prior to September 6, 2011, the revolving credit agreement was for $125,000,000 and the annual commitment fee paid by the Fund was 0.125% of the unused balance. For the six months ended February 29, 2012, the Fund paid $1,625 in commitment fees.

For the six months ended February 29, 2012, there were no borrowings by the Fund under the agreement.

8. 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 Fund and, therefore, cannot be estimated.

9. NEW ACCOUNTING PRONOUNCEMENTS

In May 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-04 “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs”. ASU No. 2011-04 amends FASB ASC Topic 820, Fair Value Measurements and Disclosures, to establish common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with GAAP. The ASU is effective prospectively for interim and annual periods beginning after December 15, 2011. Management expects that adoption of the ASU will result in additional disclosures in the financial statements, as applicable.

34 Wells Fargo Advantage Ultra Short-Term Income Fund Notes to Financial Statements (Unaudited)

In April 2011, FASB issued ASU No. 2011-03 “Reconsideration of Effective Control for Repurchase Agreements”. ASU No. 2011-03 amends FASB ASC Topic 860, Transfers and Servicing, specifically the criteria required to determine whether a repurchase agreement (repo) and similar agreements should be accounted for as sales of financial assets or secured borrowings with commitments. ASU No. 2011-03 changes the assessment of effective control by focusing on the transferor’s contractual rights and obligations and removing the criterion to assess its ability to exercise those rights or honor those obligations. This could result in changes to the way entities account for certain transactions including repurchase agreements, mortgage dollar rolls and reverse repurchase agreements. The ASU will become effective on a prospective basis for new transfers and modifications to existing transactions as of the beginning of the first interim or annual period beginning on or after December 15, 2011. Management has evaluated the impact of adopting the ASU and expects no significant changes.

Other Information (Unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 35

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 wellsfargoadvantagefunds.com, or visiting the SEC Web site at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge on the Fund’s Web site at wellsfargoadvantagefunds.com or by visiting the SEC Web site at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available on the Fund’s Web site (wellsfargoadvantagefunds.com) 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 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.

36 Wells Fargo Advantage Ultra Short-Term Income Fund Other Information (Unaudited)

BOARD OF TRUSTEES

The following table provides basic information about the Board of Trustees (the “Trustees”) of the Trust and Officers of the Trust. This table should be read in conjunction with the Prospectus and the Statement of Additional Information¹ of 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 137 funds comprising the Wells Fargo Funds 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 Year of Birth	Position Held and Length of Service	Principal Occupations During Past Five Years	Other Directorships During Past Five Years
Peter G. Gordon (Born 1942)	Trustee, since 1998; Chairman, since 2005 (Lead Trustee since 2001)	Co-Founder, Retired Chairman, President and CEO of Crystal Geyser Water Company. Trustee Emeritus, Colby College	Asset Allocation Trust
Isaiah Harris, Jr. (Born 1952)	Trustee, since 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 40 portfolios as of 12/31/11); Asset Allocation Trust
David F. Larcker (Born 1950)	Trustee, since 2009	James Irvin Miller Professor of Accounting at the Graduate School of Business, Stanford University, Director of Corporate Governance Research Program and Senior Faculty of The Rock Center for Corporate Governance since 2006. From 2005 to 2008, Professor of Accounting at the Graduate School of Business, Stanford University. Prior thereto, Ernst & Young Professor of Accounting at The Wharton School, University of Pennsylvania from 1985 to 2005.	Asset Allocation Trust
Olivia S. Mitchell (Born 1953)	Trustee, since 2006	International Foundation of Employee Benefit Plans Professor, Wharton School of the University of Pennsylvania since 1993. Director of Wharton’s Pension Research Council and Boettner Center on Pensions & Retirement Research, and Research Associate at the National Bureau of Economic Research. Previously, Cornell University Professor from 1978 to 1993.	Asset Allocation Trust

Other Information (Unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 37

Name and Year of Birth	Position Held and Length of Service	Principal Occupations During Past Five Years	Other Directorships During Past Five Years
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	Served on the Investment Company Institute’s Board of Governors and Executive Committee from 2008-2011 as well the Governing Council of the Independent Directors Council from 2006-2011 and the Independent Directors Council Executive Committee from 2008-2011. Chairman of the IDC from 2008-2010. Institutional Investor (Fund Directions) Trustee of Year in 2007. Trustee of the Evergreen Funds (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield 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. Director and Vice Chair of The Free Trust (non-profit corporation). Director of the American Chestnut Foundation (non-profit corporation).	Asset Allocation Trust

Officers

Name and Year of Birth	Position Held and 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 Senior 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.
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. 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 Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the Web site at wellsfargoadvantagefunds.com.

38 Wells Fargo Advantage Ultra Short-Term Income Fund List of Abbreviations

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

ACB —  Agricultural Credit Bank

ADR —  American Depository 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

AUD —  Australian Dollar

BAN —  Bond Anticipation Notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazil Real

CAB —  Capital Appreciation Bond

CAD —  Canadian Dollar

CCAB —  Convertible Capital Appreciation Bond

CDA —  Community Development Authority

CDO —  Collateralized Debt Obligation

CHF —  Swiss Franc

COP —  Certificate of Participation

CR —  Custody Receipts

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

EDA —  Economic Development Authority

EDFA —  Economic Development Finance Authority

ETF —  Exchange-Traded Fund

EUR —  Euro

FFCB —  Federal Farm Credit Bank

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Authority

FHLB —  Federal Home Loan Bank

FHLMC —  Federal Home Loan Mortgage Corporation

FNMA —  Federal National Mortgage Association

FSA —  Farm Service Agency

GBP —  Great British Pound

GDR —  Global Depository 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

HUF —  Hungarian Forint

IBC —  Insured Bond Certificate

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

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

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

PUTTER —  Puttable Tax-Exempt Receipts

R&D —  Research & Development

RDA —  Redevelopment Authority

RDFA —  Redevelopment Finance Authority

REIT —  Real Estate Investment Trust

ROC —  Reset Option Certificates

SAVRS —  Select Auction Variable Rate Securities

SBA —  Small Business Authority

SEK —  Swedish Krona

SFHR —  Single Family Housing Revenue

SFMR —  Single Family Mortgage Revenue

SGD —  Singapore Dollar

SKK —  Slovakian Koruna

SPDR —  Standard & Poor’s Depositary Receipts

TAN —  Tax Anticipation Notes

TBA —  To Be Announced

TIPS —  Treasury Inflation-Protected Securities

TRAN —  Tax Revenue Anticipation Notes

TCR —  Transferable Custody Receipts

TRY —  Turkish Lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

XLCA —  XL Capital Assurance

ZAR —  South African Rand

FOR MORE INFORMATION

More information about Wells Fargo Advantage Funds is available free upon request. To obtain literature, please write, e-mail, visit the Fund’s Web site, or call:

Wells Fargo Advantage Funds

P.O. Box 8266

Boston, MA 02266-8266

E-mail: wfaf@wellsfargo.com

Web site: wellsfargoadvantagefunds.com

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 wellsfargoadvantagefunds.com. 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

© 2012 Wells Fargo Funds Management, LLC. All rights reserved.

208528 04-12 SA223/SAR223 2-12

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 25, 2012

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 25, 2012
By:
	/s/ Kasey L. Phillips
	Kasey L. Phillips
	Treasurer
Date: April 25, 2012