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, 2012

Date of reporting period: February 28, 2013

ITEM 1. REPORT TO SHAREHOLDERS

Wells Fargo Advantage

Adjustable Rate Government Fund

Semi-Annual Report

February 28, 2013

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	6
Fund expenses	8
Summary portfolio of investments	9
Financial statements
Statement of assets and liabilities	11
Statement of operations	12
Statement of changes in net assets	13
Financial highlights	14
Notes to financial statements	19
Other information	24
List of abbreviations	27

The views expressed and any forward-looking statements are as of February 28, 2013, 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 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 the 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 the investment objectives, risks, charges, and expenses before investing. For a current prospectus and, if available, a summary prospectus, for Wells Fargo Advantage Funds, 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, 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 $225 billion in assets under management, as of February 28, 2013.

Equity funds
Asia Pacific Fund	Enterprise Fund†	Opportunity Fund†
C&B Large Cap Value Fund	Global Opportunities Fund	Precious Metals Fund
C&B Mid Cap Value Fund	Growth Fund	Premier Large Company Growth Fund
Capital Growth Fund	Index Fund	Small Cap Opportunities Fund
Common Stock Fund	International Equity Fund	Small Cap Value Fund
Disciplined U.S. Core Fund	International Value Fund	Small Company Growth Fund
Discovery Fund†	Intrinsic Small Cap Value Fund	Small Company Value Fund
Diversified Equity Fund	Intrinsic Value Fund	Small/Mid Cap Value Fund
Diversified International Fund	Intrinsic World Equity Fund	Special Mid Cap Value Fund
Emerging Growth Fund	Large Cap Core Fund	Special Small Cap Value Fund
Emerging Markets Equity Fund	Large Cap Growth Fund	Specialized Technology Fund
Emerging Markets Equity Income Fund	Large Company Value Fund	Traditional Small Cap Growth Fund
Endeavor Select Fund†	Omega Growth Fund	Utility and Telecommunications Fund
Bond funds
Adjustable Rate Government Fund	High Yield Municipal Bond Fund	Short Duration Government Bond Fund
California Limited-Term Tax-Free Fund	Income Plus Fund	Short-Term Bond Fund
California Tax-Free Fund	Inflation-Protected Bond Fund	Short-Term High Yield Bond Fund
Colorado Tax-Free Fund	Intermediate Tax/AMT-Free Fund	Short-Term Municipal Bond Fund
Core Bond Fund	International Bond Fund	Strategic Income Fund
Emerging Markets Local Bond Fund	Minnesota Tax-Free Fund	Strategic Municipal Bond Fund
Government Securities Fund	Municipal Bond Fund	Ultra Short-Term Income Fund
High Income Fund	North Carolina Tax-Free Fund	Ultra Short-Term Municipal Income Fund
High Yield Bond Fund	Pennsylvania Tax-Free 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	Treasury Plus Money Market Fund
Cash Investment Money Market Fund	Municipal Cash Management 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 (unaudited)

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Fixed-income performance was best among lower-rated corporate bonds and commercial mortgage-backed securities, as continued monetary accommodation from the U.S. Federal Reserve strengthened the demand for securities with higher yields.

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 28, 2013. During the period, fixed-income performance was best among lower-rated corporate bonds and commercial mortgage-backed securities (CMBS), as continued monetary accommodation from the U.S. Federal Reserve (Fed) strengthened the demand for securities with higher yields. However, the longest-maturity segments of the fixed-income market generally underperformed the mid-maturity and short-maturity segments because longer-maturity U.S. Treasury yields shifted higher, most notably in January 2013, thereby influencing a decline in the prices of longer-maturity fixed-income securities.

Credit sectors rallied for much of the second half of 2012, outperforming U.S. Treasuries.

As policymaking in Europe during the summer months of 2012 began to reassure global credit markets that the euro would likely survive and that all appropriate measures would be taken to bolster European debt markets, lower-rated securities in the U.S. once again rallied in price, significantly outpacing the returns from U.S. Treasuries. Corporate bonds and CMBS were once again the best-performing sectors of the core fixed income markets from August 2012 through the end of the year, as they had been before the European credit crisis escalated in the spring.

In December 2012, the Fed reaffirmed its commitment to highly accommodative monetary policy, citing its dual mandate of fostering maximum employment and price stability. For the first time since the financial crisis began in 2008, the Fed formally announced specific target ranges that could trigger a change to its highly accommodative monetary policy, most notably that exceptionally low interest rates would be appropriate at least as long as the unemployment rate remained above 6.5% and inflation expectations were no more than half a percentage point above its 2.0% inflation target. These thresholds were the first official measures of when and how a change to monetary policy may take effect.

U.S. Treasury yields shift significantly higher in January 2013.

With growing confidence in the U.S. economy and improving stability in the European credit markets, longer-maturity U.S. Treasury yields began to shift significantly higher in January 2013. The yield on the 10-year U.S. Treasury note ratcheted higher to 2.00% in January 2013, after finishing 2012 at 1.75% and reaching a modern-era record low of 1.41% in late July 2012. The 30-year U.S. Treasury bond finished the period at a yield of 3.09%, up from 2.58% at the start of the period. Thus, during the period, longer-maturity securities felt the pressure of yields shifting higher, which eroded some of their pricing. The best-performing sections of the yield curve were generally in the five- to 10-year range, which benefited from relatively adequate yields while remaining mostly insulated from the price erosion in maturities of 10 years and longer.

Despite this persistent trend toward higher yields during the final three months of the period, which chipped away at some security prices, several areas of the taxable fixed income markets continued to generate relatively compelling returns, considering the extraordinarily low level of interest rates. Spreads in the corporate bond sector continued to tighten while U.S. Treasury yields shifted higher, thus providing some protection against price erosion. CMBS spreads also tightened during the period resulting in some of the strongest six-month returns in the taxable investment-grade sectors. Within the Barclays U.S. Aggregate Bond Index¹, the CMBS sector returned 2.35% during the six-month period, the corporate

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

Letter to shareholders (unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 3

sector returned 1.64%, and the U.S. Treasury sector returned (0.67)%. The lower-rated credit tiers continued to outperform each respectively higher credit tier during the period, despite the rising yield influence in the longest maturities.

Overall, the theme for the six-month period in the U.S. fixed income markets was relatively strong performance from the corporate and CMBS sectors, particularly in the lower-rated credit tiers, with a protracted decline in prices of U.S. Treasuries. On the whole, most credit-related sectors generated relatively generous returns during the six-month period considering the extraordinarily low level of interest rates. However, the trend from previous periods of strong performance from longer-maturity securities began to unwind in January and February 2013. During this period, credit risks were rewarded better than interest rate risks, meaning that higher-yield compensation from lower-rated securities performed better than higher-yield compensation from longer-maturity securities, which experienced price pressures. Investment strategies that focused on mid-to lower-rated credit tiers and mid-maturity securities generally saw the strongest returns during the period.

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.

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 website 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

Most credit-related sectors generated relatively generous returns during the six-month period considering the extraordinarily low level of interest rates.

Notice to shareholders

At its November 6-7, 2012 meeting, the Board of Trustees unanimously approved the following modifications to certain Class A sales load waiver privileges, with each change becoming effective on July 1, 2013:

n Annuity payments received under an annuity option or from death proceeds will no longer qualify for net asset value (NAV) repurchase privileges.

n The ability to reinvest redemption proceeds at NAV will be reduced from 120 days to 90 days.

n NAV purchase privileges for certain types of “grandfathered” shareholders will be modified to remove the ability to purchase Class A shares at NAV, unless those shares are held directly with the Fund.

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

4 Wells Fargo Advantage Adjustable Rate Government Fund Performance highlights (unaudited)

Investment objective

The Fund seeks current income consistent with capital preservation.

Adviser

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Michael J. Bray, CFA

Christopher Y. Kauffman, CFA

Average annual total returns¹ (%) as of February 28, 2013

		Including sales charge							Excluding sales charge						Expense ratios2 (%)
	Inception date	1 year			5 year		10 year		1 year		5 year		10 year		Gross		Net3
Class A (ESAAX)	6-30-2000		(0.73	)		1.65		2.35		1.34		2.07		2.56		0.82		0.75
Class B (ESABX)*	6-30-2000		(0.81	)		1.46		2.27		0.69		1.46		2.27		1.57		1.50
Class C (ESACX)	6-30-2000		(0.41	)		1.31		1.82		0.59		1.31		1.82		1.57		1.50
Administrator Class (ESADX)	7-30-2010		–			–		–		1.48		2.21		2.73		0.76		0.61
Institutional Class (EKIZX)	10-1-1991		–			–		–		1.71		2.35		2.85		0.49		0.47
Barclays 6-Month Treasury Bill Index4	–		–			–		–		0.21		0.80		2.08		–		–

* 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 website, 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 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 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). The 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.

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 5

Ten largest long-term holdings5 (%) as of February 28, 2013
FNMA, 2.95%, 10-1-2033	1.70
FNMA, 2.81%, 11-1-2035	1.49
FNMA Series 2003-W18 Class 2A, 3.36%, 6-25-2043	1.41
FHLMC Series T-67 Class 1A1C, 3.05%, 3-25-2036	1.34
FHLMC, 2.48%, 9-1-2030	1.27
FNMA, 2.33 %, 12-1-2040	1.12
FNMA Series 2002-66 Class A3, 3.10%, 4-25-2042	1.07
SBA, 4.01%, 9-25-2037	1.06
FNMA, 2.49%, 2-1-2036	1.04
FNMA Series 2006-W1 Class 3A, 2.20%, 10-25-2045	1.04

Portfolio allocation⁶ as of February 28, 2013

1. 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.

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

3. The Adviser has committed through December 31, 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 0.74% for Class A, 1.49% for Class B, 1.49% for Class C, 0.60% for Administrator Class, and 0.46% for Institutional Class. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the cap. Without this cap, the Fund’s returns would have been lower.

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

5. 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.

6. 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 Fund expenses (unaudited)

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, 2012 to February 28, 2013.

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 9-1-2012		Ending account value 2-28-2013		Expenses paid during the period1		Net annual expense ratio
Class A
Actual	$	1,000.00	$	1,002.82	$	3.67		0.74	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.12	$	3.71		0.74	%
Class B
Actual	$	1,000.00	$	1,000.18	$	7.39		1.49	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.41	$	7.45		1.49	%
Class C
Actual	$	1,000.00	$	999.10	$	7.39		1.49	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.41	$	7.45		1.49	%
Administrator Class
Actual	$	1,000.00	$	1,003.51	$	2.98		0.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.82	$	3.01		0.60	%
Institutional Class
Actual	$	1,000.00	$	1,005.20	$	2.39		0.48	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.41	$	2.41		0.48	%

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).

Summary portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 7

The Summary portfolio of investments shows the 50 largest portfolio holdings in unaffiliated issuers and any holdings exceeding 1% of the total net assets as of the report date. The remaining securities held are grouped as “Other securities” in each category. You can request a complete schedule of portfolio holdings as of the report date, free of charge, by accessing the following website: http://a584.g.akamai.net/f/584/1326/1d/www.wellsfargoadvantagefunds.com/pdf/semi/holdings/adjustablerategovt.pdf or by calling Wells Fargo Advantage Funds at 1-800-222-8222. This complete schedule, filed on the Form N-CSR, is also available on the SEC’s website at sec.gov.

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Agency Securities: 94.56%
FDIC Series 2010-S1 Class 1A ±144A		0.75	%		2-25-2048	$	9,623,032	$	9,642,162		0.67	%
FHLMC		0.24-8.50			1-1-2016 to 3-25-2043		282,210,061		299,427,036		20.80
FHLMC ±		2.33			6-1-2036		10,513,669		11,167,010		0.77
FHLMC ±		2.36			3-1-2035		9,988,533		10,658,331		0.74
FHLMC ±		2.36			7-1-2036		7,922,161		8,455,614		0.59
FHLMC ±		2.38			8-1-2035		7,300,323		7,803,022		0.54
FHLMC ±		2.40			2-1-2035		9,153,053		9,769,404		0.68
FHLMC ±		2.41			10-1-2035		7,529,057		8,081,503		0.56
FHLMC ±		2.41			12-1-2034		7,489,997		8,011,559		0.56
FHLMC ±		2.42			4-1-2034		8,739,071		9,374,481		0.65
FHLMC ±		2.43			7-1-2034		12,247,674		13,017,162		0.90
FHLMC ±		2.43			3-1-2037		8,264,100		8,845,193		0.61
FHLMC ±		2.48			9-1-2030		17,158,787		18,289,227		1.27
FHLMC ±		2.71			8-1-2030		9,045,308		9,678,007		0.67
FHLMC ±		2.87			9-1-2035		7,856,861		8,421,680		0.58
FHLMC ±		2.91			2-1-2036		10,557,330		11,265,955		0.78
FHLMC ±		2.97			2-1-2036		8,426,840		9,019,423		0.63
FHLMC Series T-67 Class 1A1C ±		3.05			3-25-2036		18,504,924		19,332,279		1.34
FHLMC Series T-67 Class 2A1C ±		3.06			3-25-2036		10,303,443		10,819,069		0.75
FNMA		0.75-12.50			3-1-2014 to 12-1-2050		414,319,525		442,087,845		30.70
FNMA ±		2.07			10-1-2035		12,277,520		12,891,678		0.89
FNMA ±		2.10			12-1-2035		11,603,745		12,206,406		0.85
FNMA ±		2.26			9-1-2032		9,882,007		10,521,030		0.73
FNMA ±		2.33			12-1-2040		15,134,809		16,164,946		1.12
FNMA ±		2.33			7-1-2048		7,836,876		8,358,576		0.58
FNMA ±		2.35			2-1-2035		7,437,416		7,945,687		0.55
FNMA ±		2.37			7-1-2035		9,069,605		9,662,613		0.67
FNMA ±		2.37			1-1-2038		9,489,360		10,125,155		0.70
FNMA ±		2.37			5-1-2042		9,922,660		10,579,639		0.73
FNMA ±		2.37			7-1-2038		9,678,858		10,401,970		0.72
FNMA ±		2.40			9-1-2039		11,236,053		12,067,723		0.84
FNMA ±		2.42			7-1-2048		10,242,763		10,940,997		0.76
FNMA ±		2.43			3-1-2035		7,796,399		8,337,181		0.58
FNMA ±		2.44			12-1-2040		8,531,308		9,130,795		0.63
FNMA ±		2.45			4-1-2036		7,870,698		8,447,282		0.59
FNMA ±		2.49			2-1-2036		14,068,519		15,008,834		1.04
FNMA ±		2.56			5-1-2036		8,008,530		8,570,459		0.59
FNMA ±		2.66			2-1-2036		8,200,385		8,777,438		0.61
FNMA ±		2.74			5-1-2033		8,393,603		8,889,964		0.62
FNMA ±		2.79			8-1-2039		9,321,265		9,921,721		0.69
FNMA ±		2.81			11-1-2035		19,819,201		21,466,466		1.49
FNMA ±		2.89			9-1-2037		9,291,505		9,955,392		0.69
FNMA ±		2.90			1-1-2036		13,870,737		14,797,490		1.03
FNMA ±		2.95			10-1-2033		22,826,023		24,466,142		1.70

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

8 Wells Fargo Advantage Adjustable Rate Government Fund Summary portfolio of investments—February 28, 2013 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value			Percent of net assets
Agency Securities (continued)
FNMA Series 2001-T12 Class A4 ±		3.36	%		8-25-2041	$	10,123,005	$	10,767,283			0.75	%
FNMA Series 2002-66 Class A3 ±		3.10			4-25-2042		14,364,266		15,407,471			1.07
FNMA Series 2003-W18 Class 2A ±		3.36			6-25-2043		19,091,938		20,316,763			1.41
FNMA Series 2004-W12 Class 2A ±		3.42			6-25-2044		9,788,844		10,486,876			0.73
FNMA Series 2004-W15 Class 3A ±		2.78			6-25-2044		13,359,964		14,284,379			0.99
FNMA Series 2006-W1 Class 3A ±		2.20			10-25-2045		14,129,564		14,965,822			1.04
GNMA		0.70-9.00			8-20-2015 to 9-20-2062		36,392,887		38,132,140			2.53
GNMA ±		2.10			8-20-2062		9,621,297		10,304,111			0.72
SBA ±		4.01			9-25-2037		13,082,880		15,355,888			1.07
Other securities									883,242			0.06
Total Agency Securities (Cost $1,333,936,801)									1,363,705,521			94.56
	Yield					Shares
Short-Term Investments: 5.75%
Investment Companies: 5.74%
Wells Fargo Advantage Government Money Market Fund, Institutional Class (l)(u)		0.01					82,744,393		82,744,393			5.74
	Interest rate					Principal
U.S. Treasury Securities: 0.01%
U.S. Treasury Bill #(z)		0.06			3-21-2013	$	200,000		199,993			0.01
Total Short-Term Investments (Cost $82,944,386)									82,944,386			5.75
Total investments in securities
(Cost $1,416,881,187) *									1,446,649,907			100.31	%
Other assets and liabilities, net									(4,509,789	)		(0.31	)
Total net assets								$	1,442,140,118			100.00	%

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

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.

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

(l) Investment in an affiliate

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

(z) Zero coupon security. Rate represents yield to maturity at time of purchase.

* Cost for federal income tax purposes is $1,417,851,315 and unrealized appreciation (depreciation) consists of:

Gross unrealized appreciation	$	31,001,805
Gross unrealized depreciation		(2,203,213	)
Net unrealized appreciation	$	28,798,592

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

Statement of assets and liabilities—February 28, 2013 (unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 9

Assets
Investments
In unaffiliated securities, at value (see cost below)	$	1,363,905,514
In affiliated securities, at value (see cost below)		82,744,393
Total investments, at value (see cost below)		1,446,649,907
Principal paydown receivable		6,221,061
Receivable for Fund shares sold		4,187,520
Receivable for interest		3,747,532
Prepaid expenses and other assets		159,771
Total assets		1,460,965,791
Liabilities
Dividends payable		259,257
Payable for investments purchased		3,704,503
Payable for Fund shares redeemed		13,887,196
Payable for daily variation margin on open futures contracts		14,844
Advisory fee payable		282,134
Distribution fees payable		130,153
Due to other related parties		174,811
Accrued expenses and other liabilities		372,775
Total liabilities		18,825,673
Total net assets	$	1,442,140,118
NET ASSETS CONSIST OF
Paid-in capital	$	1,528,555,406
Overdistributed net investment income		(322,017	)
Accumulated net realized losses on investments		(115,760,038	)
Net unrealized gains on investments		29,666,767
Total net assets	$	1,442,140,118
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE1
Net assets – Class A	$	286,971,261
Shares outstanding – Class A		31,249,353
Net asset value per share – Class A		$9.18
Maximum offering price per share – Class A2		$9.37
Net assets – Class B	$	4,500,605
Shares outstanding – Class B		489,941
Net asset value per share – Class B		$9.19
Net assets – Class C	$	217,840,098
Shares outstanding – Class C		23,720,419
Net asset value per share – Class C		$9.18
Net assets – Administrator Class	$	105,776,847
Shares outstanding – Administrator Class		11,516,965
Net asset value per share – Administrator Class		$9.18
Net assets – Institutional Class	$	827,051,307
Shares outstanding – Institutional Class		90,040,060
Net asset value per share – Institutional Class		$9.19
Investments in unaffiliated securities, at cost	$	1,334,136,794
Investments in affiliated securities, at cost	$	82,744,393
Total investments, at cost	$	1,416,881,187

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.

10 Wells Fargo Advantage Adjustable Rate Government Fund Statement of operations—six months ended February 28, 2013 (unaudited)

Investment income
Interest	$	10,401,909
Income from affiliated securities		2,784
Total investment income		10,404,693
Expenses
Advisory fee		2,433,240
Administration fees
Fund level		337,461
Class A		238,577
Class B		4,169
Class C		182,472
Administrator Class		52,124
Institutional Class		285,629
Shareholder servicing fees
Class A		372,776
Class B		6,514
Class C		285,112
Administrator Class		126,851
Distribution fees
Class B		19,542
Class C		855,337
Custody and accounting fees		48,953
Professional fees		35,094
Registration fees		61,059
Shareholder report expenses		59,616
Trustees’ fees and expenses		5,301
Other fees and expenses		44,768
Total expenses		5,454,595
Less: Fee waivers and/or expense reimbursements		(588,182	)
Net expenses		4,866,413
Net investment income		5,538,280
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		1,823,707
Futures transactions		(6,867	)
Net realized gains on investments		1,816,840
Net change in unrealized gains (losses) on:
Unaffiliated securities		(3,092,564	)
Futures transactions		49,641
Net change in unrealized gains (losses) on investments		(3,042,923	)
Net realized and unrealized gains (losses) on investments		(1,226,083	)
Net increase in net assets resulting from operations	$	4,312,197

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

Statement of changes in net assets Wells Fargo Advantage Adjustable Rate Government Fund 11

	Six months ended February 28, 2013 (unaudited)						Year ended August 31, 2012
Operations
Net investment income				$	5,538,280					$	13,615,388
Net realized gains on investments					1,816,840						215,507
Net change in unrealized gains (losses) on investments					(3,042,923	)					11,859,021
Net increase in net assets resulting from operations					4,312,197						25,689,916
Distributions to shareholders from
Net investment income
Class A					(1,175,880	)					(3,284,563	)
Class B					(1,055	)					(35,752	)
Class C					(45,905	)					(844,846	)
Administrator Class					(485,522	)					(1,304,299	)
Institutional Class					(3,739,066	)					(7,951,556	)
Tax basis return of capital
Class A					0						(205,718	)
Class B					0						(2,239	)
Class C					0						(52,914	)
Administrator Class					0						(81,691	)
Institutional Class					0						(498,019	)
Total distributions to shareholders					(5,447,428	)					(14,261,597	)
		Shares						Shares
Capital share transactions
Proceeds from shares sold
Class A		3,809,161			35,033,316			16,242,424			148,139,106
Class B		7,449			68,539			62,289			568,592
Class C		423,340			3,894,245			1,460,486			13,328,119
Administrator Class		5,084,915			46,745,782			23,275,357			212,316,354
Institutional Class		63,205,141			581,245,064			99,879,814			912,178,664
					666,986,946						1,286,530,835
Reinvestment of distributions
Class A		103,227			949,610			276,424			2,522,997
Class B		108			993			3,539			32,231
Class C		3,746			34,498			63,929			581,978
Administrator Class		27,479			252,791			100,326			915,677
Institutional Class		291,864			2,685,544			724,335			6,616,388
					3,923,436						10,669,271
Payment for shares redeemed
Class A		(6,373,034	)		(58,589,093	)		(18,836,382	)		(171,694,465	)
Class B		(242,007	)		(2,226,686	)		(976,751	)		(8,916,348	)
Class C		(3,730,894	)		(34,310,090	)		(7,040,766	)		(64,318,191	)
Administrator Class		(5,814,501	)		(53,429,821	)		(14,990,112	)		(136,941,037	)
Institutional Class		(48,146,125	)		(442,864,582	)		(91,449,089	)		(835,423,721	)
					(591,420,272	)					(1,217,293,762	)
Net increase in net assets resulting from capital share transactions					79,490,110						79,906,344
Total increase in net assets					78,354,879						91,334,663
Net assets
Beginning of period					1,363,785,239						1,272,450,576
End of period				$	1,442,140,118					$	1,363,785,239
Overdistributed net investment income				$	(322,017	)				$	(412,869	)

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

12 Wells Fargo Advantage Adjustable Rate Government Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2013 (unaudited)			Year ended August 31									Year ended June 30
CLASS A				2012			2011			20101,2			20101			20091			20081
Net asset value, beginning of period	$	9.19		$	9.12		$	9.12		$	9.11		$	9.00		$	9.15		$	9.21
Net investment income		0.03			0.09			0.14			0.02			0.20			0.32			0.44	3
Net realized and unrealized gains (losses) on investments		0.00	4		0.08			0.04			0.02			0.11			(0.14	)		(0.05	)
Total from investment operations		0.03			0.17			0.18			0.04			0.31			0.18			0.39
Distributions to shareholders from
Net investment income		(0.04	)		(0.09	)		(0.13	)3		(0.01	)3		(0.20	)		(0.33	)		(0.45	)
Tax basis return of capital		0.00			(0.01	)		(0.05	)3		(0.02	)3		0.00			0.00			0.00
Total distributions to shareholders		(0.04	)		(0.10	)		(0.18	)		(0.03	)		(0.20	)		(0.33	)		(0.45	)
Net asset value, end of period		$9.18			$9.19			$9.12			$9.12			$9.11			$9.00			$9.15
Total return5		0.28	%		1.84	%		2.04	%		0.49	%		3.51	%		2.09	%		4.30	%
Ratios to average net assets (annualized)
Gross expenses		0.86	%		0.86	%		0.88	%		0.88	%		0.73	%		0.73	%		0.98	%6
Net expenses		0.74	%		0.74	%		0.74	%		0.74	%		0.73	%		0.73	%		0.94	%6
Net investment income		0.80	%		1.01	%		1.50	%		1.18	%		2.27	%		3.61	%		4.74	%6
Supplemental data
Portfolio turnover rate		7	%		9	%		18	%		0	%		14	%		41	%		39	%
Net assets, end of period (000s omitted)		$286,971			$309,827			$328,427			$353,453			$271,853			$277,862			$270,482

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. 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 of 0.25% relating to borrowings and/or leverage transactions.

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

Financial highlights Wells Fargo Advantage Adjustable Rate Government Fund 13

(For a share outstanding throughout each period)

	Six months ended February 28, 2013 (unaudited)			Year ended August 31									Year ended June 30
CLASS B				2012			2011			20101,2			20101			20091			20081
Net asset value, beginning of period	$	9.19		$	9.12		$	9.12		$	9.11		$	9.00		$	9.15		$	9.21
Net investment income		0.00	3,4		0.03	3		0.07	3		0.00	4		0.13	3		0.26	3		0.37	3
Net realized and unrealized gains (losses) on investments		0.00	4		0.07			0.05			0.03			0.11			(0.14	)		(0.05	)
Total from investment operations		0.00	4		0.10			0.12			0.03			0.24			0.12			0.32
Distributions to shareholders from
Net investment income		(0.00	)4		(0.03	)		(0.07	)3		(0.00	)3,4		(0.13	)		(0.27	)		(0.38	)
Tax basis return of capital		0.00			(0.00	)4		(0.05	)3		(0.02	)3		0.00			0.00			0.00
Total distributions to shareholders		(0.00	)4		(0.03	)		(0.12	)		(0.02	)		(0.13	)		(0.27	)		(0.38	)
Net asset value, end of period		$9.19			$9.19			$9.12			$9.12			$9.11			$9.00			$9.15
Total return5		0.02	%		1.08	%		1.28	%		0.36	%		2.73	%		1.33	%		3.53	%
Ratios to average net assets (annualized)
Gross expenses		1.61	%		1.61	%		1.63	%		1.62	%		1.48	%		1.48	%		1.70	%6
Net expenses		1.49	%		1.49	%		1.49	%		1.49	%		1.48	%		1.48	%		1.70	%6
Net investment income		0.04	%		0.27	%		0.81	%		0.24	%		1.55	%		2.95	%		3.99	%6
Supplemental data
Portfolio turnover rate		7	%		9	%		18	%		0	%		14	%		41	%		39	%
Net assets, end of period (000s omitted)		$4,501			$6,660			$14,911			$50,229			$52,414			$90,520			$183,596

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 of 0.25% relating to borrowings and/or leverage transactions.

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

14 Wells Fargo Advantage Adjustable Rate Government Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2013 (unaudited)			Year ended August 31									Year ended June 30
CLASS C				2012			2011			20101,2			20101			20091			20081
Net asset value, beginning of period	$	9.19		$	9.12		$	9.12		$	9.11		$	9.00		$	9.15		$	9.21
Net investment income		0.00	3		0.02	4		0.06			0.00	3		0.14			0.25			0.37	4
Net realized and unrealized gains (losses) on investments		(0.01	)		0.08			0.06			0.03			0.10			(0.13	)		(0.05	)
Total from investment operations		(0.01	)		0.10			0.12			0.03			0.24			0.12			0.32
Distributions to shareholders from
Net investment income		(0.00	)3		(0.03	)		(0.07	)4		(0.00	)3,4		(0.13	)		(0.27	)		(0.38	)
Tax basis return of capital		0.00			(0.00	)3		(0.05	)4		(0.02	)4		0.00			0.00			0.00
Total distributions to shareholders		(0.00	)3		(0.03	)		(0.12	)		(0.02	)		(0.13	)		(0.27	)		(0.38	)
Net asset value, end of period	$	9.18		$	9.19		$	9.12		$	9.12		$	9.11		$	9.00		$	9.15
Total return5		(0.09	)%		1.08	%		1.28	%		0.36	%		2.73	%		1.33	%		3.53	%
Ratios to average net assets (annualized)
Gross expenses		1.61	%		1.61	%		1.63	%		1.62	%		1.48	%		1.48	%		1.70	%6
Net expenses		1.49	%		1.49	%		1.49	%		1.51	%		1.48	%		1.48	%		1.70	%6
Net investment income		0.05	%		0.26	%		0.74	%		0.23	%		1.52	%		2.88	%		3.99	%6
Supplemental data
Portfolio turnover rate		7	%		9	%		18	%		0	%		14	%		41	%		39	%
Net assets, end of period (000s omitted)		$217,840			$248,392			$296,645			$340,278			$349,562			$360,607			$395,703

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 of 0.25% relating to borrowings and/or leverage transactions.

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

Financial highlights Wells Fargo Advantage Adjustable Rate Government Fund 15

(For a share outstanding throughout each period)

	Six months ended February 28, 2013 (unaudited)			Year ended August 31
ADMINISTRATOR CLASS				2012			2011			20101
Net asset value, beginning of period	$	9.19		$	9.12		$	9.12		$	9.11
Net investment income		0.04			0.11			0.14	2		0.02
Net realized and unrealized gains (losses) on investments		(0.01	)		0.07			0.06			0.01
Total from investment operations		0.03			0.18			0.20			0.03
Distributions to shareholders from
Net investment income		(0.04	)		(0.10	)		(0.15	)2		(0.00	)2,3
Tax basis return of capital		0.00			(0.01	)		(0.05	)2		(0.02	)2
Total distributions to shareholders		(0.04	)		(0.11	)		(0.20	)		(0.02	)
Net asset value, end of period	$	9.18		$	9.19		$	9.12		$	9.12
Total return4		0.35	%		1.98	%		2.18	%		0.31	%
Ratios to average net assets (annualized)
Gross expenses		0.79	%		0.79	%		0.78	%		0.90	%
Net expenses		0.60	%		0.60	%		0.60	%		0.62	%
Net investment income		0.93	%		1.14	%		1.49	%		2.01	%
Supplemental data
Portfolio turnover rate		7	%		9	%		18	%		0	%
Net assets, end of period (000s omitted)		$105,777			$112,319			$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.

16 Wells Fargo Advantage Adjustable Rate Government Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2013 (unaudited)			Year ended August 31									Year ended June 30
INSTITUTIONAL CLASS				2012			2011			20101,2			20101			20091			20081
Net asset value, beginning of period	$	9.19		$	9.12		$	9.12		$	9.11		$	9.00		$	9.15		$	9.21
Net investment income		0.05	3		0.12	3		0.15			0.02			0.23			0.35			0.46
Net realized and unrealized gains (losses) on investments		0.00	4		0.07			0.06			0.03			0.10			(0.14	)		(0.05	)
Total from investment operations		0.05			0.19			0.21			0.05			0.33			0.21			0.41
Distributions to shareholders from
Net investment income		(0.05	)		(0.11	)		(0.16	)3		(0.02	)3		(0.22	)		(0.36	)		(0.47	)
Tax basis return of capital		0.00			(0.01	)		(0.05	)3		(0.02	)3		0.00			0.00			0.00
Total distributions to shareholders		(0.05	)		(0.12	)		(0.21	)		(0.04	)		(0.22	)		(0.36	)		(0.47	)
Net asset value, end of period	$	9.19		$	9.19		$	9.12		$	9.12		$	9.11		$	9.00		$	9.15
Total return5		0.52	%		2.09	%		2.30	%		0.53	%		3.76	%		2.35	%		4.57	%
Ratios to average net assets (annualized)
Gross expenses		0.53	%		0.53	%		0.55	%		0.55	%		0.48	%		0.48	%		0.70	%6
Net expenses		0.48	%		0.49	%		0.49	%		0.49	%		0.48	%		0.48	%		0.70	%6
Net investment income		1.07	%		1.25	%		1.72	%		1.21	%		2.52	%		3.91	%		4.98	%6
Supplemental data
Portfolio turnover rate		7	%		9	%		18	%		0	%		14	%		41	%		39	%
Net assets, end of period (000s omitted)		$827,051			$686,587			$597,521			$368,066			$389,075			$483,565			$890,857

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. Amount is less than $0.005.

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

6. Ratios include interest and fee expense of 0.25% relating to borrowings and/or leverage transactions.

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

Notes to financial statements (unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 17

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

All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (normally 4 p.m. Eastern Time).

Fixed income securities acquired with maturities exceeding 60 days are valued based on evaluated bid prices received from an independent pricing service 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 independent pricing service or values received are deemed not representative of market value, values will be obtained from a broker-dealer or otherwise determined based on the Fund’s Valuation Procedures.

Debt securities of sufficient credit quality acquired with 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 registered open-end investment companies are valued at net asset value.

Investments which are not valued using any of the methods discussed above are valued at their fair value, as determined by procedures established in good faith and approved by the Board of Trustees. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Management Valuation Team of Wells Fargo Funds Management, LLC (“Funds Management”). The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Management Valuation Team which may include items for ratification.

Valuations of fair valued securities are compared to the next actual sales price when available, or other appropriate market information to assess the continued appropriateness of the fair valuation methodology used. These securities are fair valued on a day-to-day basis, taking into consideration changes to appropriate market information and any significant changes to the input factors considered in the valuation process until there is a readily available price provided on the exchange or by an independent pricing service. Valuations received from an independent pricing service or broker quotes are periodically validated by comparisons to most recent trades and valuations provided by other independent pricing services in addition to the review of prices by the adviser and/or subadviser. Unobservable inputs used in determining fair valuations are identified based on the type of security, taking into consideration factors utilized by market participants in valuing the investment, knowledge about the issuer and the current market environment.

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

18 Wells Fargo Advantage Adjustable Rate Government Fund Notes to financial statements (unaudited)

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 recorded on the basis of identified cost.

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

Federal and other taxes

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

The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

At August 31, 2012, net capital loss carryforwards, which were available to offset future net realized capital gains, were as follows:

Pre-enactment capital loss expiration*							Post-enactment capital losses**
2013	2014	2015	2016	2017	2018	2019	Short-term	Long-term
$47,790,373	$11,283,743	$18,541,278	$10,766,785	$24,262,054	$1,705,150	$66,443	$640,535	$1,004,938

* Losses incurred in taxable years beginning before December 22, 2010.

** Losses incurred in taxable years which began after December 22, 2010 are carried forward for an unlimited period.

As of August 31, 2012, the Fund had $474,329 of current year deferred post-October capital losses, which was recognized on the first day of the current fiscal 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 any 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 Adjustable Rate Government Fund 19

3. FAIR VALUATION MEASUREMENTS

Fair value measurements of investments are determined within a framework that has established a fair value hierarchy based upon the various data inputs utilized in determining the value of the Fund’s investments. The three-level hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to significant unobservable inputs (Level 3). The Fund’s investments are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The inputs are summarized into three broad levels as follows:

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

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

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

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

As of February 28, 2013, the inputs used in valuing investments in securities, 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	$	1,363,705,521	$	0	$	1,363,705,521
Short-term investments
Investment companies		82,744,393		0		0		82,744,393
U.S. Treasury securities		199,993		0		0		199,993
	$	82,944,386	$	1,363,705,521	$	0	$	1,446,649,907

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

As of February 28, 2013, 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+	$	(101,953	)	$	0	$	0	$	(101,953	)

+ 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 28, 2013, the Fund did not have any transfers into/out of Level 1 or Level 2.

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 subadviser, 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 0.35% and declining to 0.25% as the average daily net assets of the Fund increase. Prior to January 1, 2013, the annual advisory started at 0.40% and declined to 0.30% as the average daily net assets of the Fund increased. For the six months ended February 28, 2013, the advisory fee was equivalent to an annual rate of 0.36% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. Wells Capital Management Incorporated, an affiliate of Funds Management, is the subadviser 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.

20 Wells Fargo Advantage Adjustable Rate Government Fund Notes to financial statements (unaudited)

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, 2013 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.74% for Class A shares, 1.49% for Class B shares, 1.49% for Class C shares, 0.60% for Administrator Class shares and 0.46% 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 28, 2013, Wells Fargo Funds Distributor, LLC received $2,891 from the sale of Class A shares and $232 and $1,614 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, for the six months ended February 28, 2013 were $243,707,105 and $99,674,665, respectively.

6. DERIVATIVE TRANSACTIONS

During the six months ended February 28, 2013, the Fund entered into futures contracts to speculate on interest rates and to help shorten or lengthen the duration of the portfolio.

At February 28, 2013, the Fund had short futures contracts outstanding as follows:

Expiration date	Contracts	Type	Contract value at February 28, 2013		Unrealized (losses)
6-19-2013	70 Short	10-Year U.S. Treasury Notes	$	9,208,281	$	(55,914	)
6-28-2013	115 Short	5-Year U.S. Treasury Notes		14,258,203		(46,039	)

The Fund had an average notional amount of $23,716,128 in futures contracts during the six months ended February 28, 2013.

On February 28, 2013, the cumulative unrealized losses on futures contracts in the amount of $101,953 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 losses and change in unrealized gains on futures contracts are reflected in the Statement of Operations.

Notes to financial statements (unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 21

7. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds in the Trust) 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. For the six months ended February 28, 2013, the Fund paid $901 in commitment fees.

For the six months ended February 28, 2013, 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 PRONOUNCEMENT

In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2011-11, Disclosures about Offsetting Assets and Liabilities. ASU 2011-11, which amends FASB ASC Topic 210, Balance Sheet, creates new disclosure requirements which require entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently assessing the potential impact, in addition to expanded financial statement disclosure, that may result from adopting this ASU.

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

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available on the Fund’s website (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 website 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 website at sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at 233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Other information (unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 23

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers listed in the table below acts in identical capacities for the Wells Fargo Advantage family of funds, which consists of 135 funds¹ comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information². 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	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. Advisory Board Member, Palm Coast Academy (charter school). Mr. Harris is a certified public accountant.	CIGNA Corporation; Deluxe Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, 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 48 portfolios as of 1/31/2013); 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, Morgan Stanley Director of the Center for Leadership Development and Research 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
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

24 Wells Fargo Advantage Adjustable Rate Government 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
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.	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 Tree Trust (non-profit corporation). Director of the American Chestnut Foundation (non-profit corporation).	Asset Allocation Trust

* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.

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.
Nancy Wiser1 (Born 1967)	Treasurer, since 2012	Executive Vice President of Wells Fargo Funds Management, LLC since 2011. Chief Operating Officer and Chief Compliance Officer at LightBox Capital Management LLC, from 2008 to 2011. Owned and operated a consulting business providing services to various hedge funds including acting as Chief Operating Officer and Chief Compliance Officer for a hedge fund from 2007 to 2008. Chief Operating Officer and Chief Compliance Officer of GMN Capital LLC from 2006 to 2007.
C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Officer, since 2003	Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001. Vice President and Managing Counsel of Wells Fargo Bank, N.A. since 1996.
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.
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 DePalma1 (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.

1. Nancy Wiser acts as Treasurer of 74 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 61 funds and Assistant Treasurer of 74 funds in the Fund Complex.

2. 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 website at wellsfargoadvantagefunds.com.

List of abbreviations Wells Fargo Advantage Adjustable Rate Government Fund 25

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian 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

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

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

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 depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Industrial development revenue

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

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

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

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

SPA —  Standby purchase agreement

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

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

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, email, visit the Fund’s website, or call:

Wells Fargo Advantage Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: wfaf@wellsfargo.com

Website: 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 current prospectus and, if available, a summary prospectus containing more complete information, including charges and expenses, call 1-800-222-8222 or visit the Fund’s website 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

© 2013 Wells Fargo Funds Management, LLC. All rights reserved.

215343 04-13 SA215/SAR215 2-13

Wells Fargo Advantage

Government Securities Fund

Semi-Annual Report

February 28, 2013

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	4
Fund expenses	6
Summary portfolio of investments	7
Financial statements
Statement of assets and liabilities	10
Statement of operations	11
Statement of changes in net assets	12
Financial highlights	13
Notes to financial statements	19
Other information	24
List of abbreviations	27

The views expressed and any forward-looking statements are as of February 28, 2013, 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 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 the 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 the investment objectives, risks, charges, and expenses before investing. For a current prospectus and, if available, a summary prospectus, for Wells Fargo Advantage Funds, 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, 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 $225 billion in assets under management, as of February 28, 2013.

Equity funds
Asia Pacific Fund	Enterprise Fund†	Opportunity Fund†
C&B Large Cap Value Fund	Global Opportunities Fund	Precious Metals Fund
C&B Mid Cap Value Fund	Growth Fund	Premier Large Company Growth Fund
Capital Growth Fund	Index Fund	Small Cap Opportunities Fund
Common Stock Fund	International Equity Fund	Small Cap Value Fund
Disciplined U.S. Core Fund	International Value Fund	Small Company Growth Fund
Discovery Fund†	Intrinsic Small Cap Value Fund	Small Company Value Fund
Diversified Equity Fund	Intrinsic Value Fund	Small/Mid Cap Value Fund
Diversified International Fund	Intrinsic World Equity Fund	Special Mid Cap Value Fund
Emerging Growth Fund	Large Cap Core Fund	Special Small Cap Value Fund
Emerging Markets Equity Fund	Large Cap Growth Fund	Specialized Technology Fund
Emerging Markets Equity Income Fund	Large Company Value Fund	Traditional Small Cap Growth Fund
Endeavor Select Fund†	Omega Growth Fund	Utility and Telecommunications Fund
Bond funds
Adjustable Rate Government Fund	High Yield Municipal Bond Fund	Short Duration Government Bond Fund
California Limited-Term Tax-Free Fund	Income Plus Fund	Short-Term Bond Fund
California Tax-Free Fund	Inflation-Protected Bond Fund	Short-Term High Yield Bond Fund
Colorado Tax-Free Fund	Intermediate Tax/AMT-Free Fund	Short-Term Municipal Bond Fund
Core Bond Fund	International Bond Fund	Strategic Income Fund
Emerging Markets Local Bond Fund	Minnesota Tax-Free Fund	Strategic Municipal Bond Fund
Government Securities Fund	Municipal Bond Fund	Ultra Short-Term Income Fund
High Income Fund	North Carolina Tax-Free Fund	Ultra Short-Term Municipal Income Fund
High Yield Bond Fund	Pennsylvania Tax-Free 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	Treasury Plus Money Market Fund
Cash Investment Money Market Fund	Municipal Cash Management 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 (unaudited)

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Fixed-income performance was best among lower-rated corporate bonds and commercial mortgage-backed securities, as continued monetary accommodation from the U.S. Federal Reserve strengthened the demand for securities with higher yields.

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 28, 2013. During the period, fixed-income performance was best among lower-rated corporate bonds and commercial mortgage-backed securities (CMBS), as continued monetary accommodation from the U.S. Federal Reserve (Fed) strengthened the demand for securities with higher yields. However, the longest-maturity segments of the fixed-income market generally underperformed the mid-maturity and short-maturity segments because longer-maturity U.S. Treasury yields shifted higher, most notably in January 2013, thereby influencing a decline in the prices of longer-maturity fixed-income securities.

Credit sectors rallied for much of the second half of 2012, outperforming U.S. Treasuries.

As policymaking in Europe during the summer months of 2012 began to reassure global credit markets that the euro would likely survive and that all appropriate measures would be taken to bolster European debt markets, lower-rated securities in the U.S. once again rallied in price, significantly outpacing the returns from U.S. Treasuries. Corporate bonds and CMBS were once again the best-performing sectors of the core fixed income markets from August 2012 through the end of the year, as they had been before the European credit crisis escalated in the spring.

In December 2012, the Fed reaffirmed its commitment to highly accommodative monetary policy, citing its dual mandate of fostering maximum employment and price stability. For the first time since the financial crisis began in 2008, the Fed formally announced specific target ranges that could trigger a change to its highly accommodative monetary policy, most notably that exceptionally low interest rates would be appropriate at least as long as the unemployment rate remained above 6.5% and inflation expectations were no more than half a percentage point above its 2.0% inflation target. These thresholds were the first official measures of when and how a change to monetary policy may take effect.

U.S. Treasury yields shift significantly higher in January 2013.

With growing confidence in the U.S. economy and improving stability in the European credit markets, longer-maturity U.S. Treasury yields began to shift significantly higher in January 2013. The yield on the 10-year U.S. Treasury note ratcheted higher to 2.00% in January 2013, after finishing 2012 at 1.75% and reaching a modern-era record low of 1.41% in late July 2012. The 30-year U.S. Treasury bond finished the period at a yield of 3.09%, up from 2.58% at the start of the period. Thus, during the period, longer-maturity securities felt the pressure of yields shifting higher, which eroded some of their pricing. The best-performing sections of the yield curve were generally in the five- to 10-year range, which benefited from relatively adequate yields while remaining mostly insulated from the price erosion in maturities of 10 years and longer.

Despite this persistent trend toward higher yields during the final three months of the period, which chipped away at some security prices, several areas of the taxable fixed income markets continued to generate relatively compelling returns, considering the extraordinarily low level of interest rates. Spreads in the corporate bond sector continued to tighten while U.S. Treasury yields shifted higher, thus providing some protection against price erosion. CMBS spreads also tightened during the period resulting in some of the strongest six-month returns in the taxable investment-grade sectors. Within the Barclays U.S. Aggregate Bond Index¹,

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

Letter to shareholders (unaudited) Wells Fargo Advantage Government Securities Fund 3

the CMBS sector returned 2.35% during the six-month period, the corporate sector returned 1.64%, and the U.S. Treasury sector returned (0.67)%. The lower-rated credit tiers continued to outperform each respectively higher credit tier during the period, despite the rising yield influence in the longest maturities.

Overall, the theme for the six-month period in the U.S. fixed income markets was relatively strong performance from the corporate and CMBS sectors, particularly in the lower-rated credit tiers, with a protracted decline in prices of U.S. Treasuries. On the whole, most credit-related sectors generated relatively generous returns during the six-month period considering the extraordinarily low level of interest rates. However, the trend from previous periods of strong performance from longer-maturity securities began to unwind in January and February 2013. During this period, credit risks were rewarded better than interest rate risks, meaning that higher-yield compensation from lower-rated securities performed better than higher-yield compensation from longer-maturity securities, which experienced price pressures. Investment strategies that focused on mid- to lower-rated credit tiers and mid-maturity securities generally saw the strongest returns during the period.

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.

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 website 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

Most credit-related sectors generated relatively generous returns during the six-month period considering the extraordinarily low level of interest rates.

Notice to shareholders

At its November 6-7, 2012 meeting, the Board of Trustees unanimously approved the following modifications to certain Class A sales load waiver privileges, with each change becoming effective on July 1, 2013:

n Annuity payments received under an annuity option or from death proceeds will no longer qualify for net asset value (NAV) repurchase privileges.

n The ability to reinvest redemption proceeds at NAV will be reduced from 120 days to 90 days.

n NAV purchase privileges for certain types of “grandfathered” shareholders will be modified to remove the ability to purchase Class A shares at NAV, unless those shares are held directly with the Fund.

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

4 Wells Fargo Advantage Government Securities Fund Performance highlights (unaudited)

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

Average annual total returns¹ (%) as of February 28, 2013

		Including sales charge							Excluding sales charge						Expense ratios2 (%)
	Inception date	1 year			5 year		10 year		1 year		5 year		10 year		Gross		Net3
Class A (SGVDX)	8-31-1999		(2.69	)		3.64		3.81		1.90		4.60		4.29		0.90		0.90
Class B (WGSBX)*	7-18-2008		(3.95	)		3.46		3.78		1.05		3.80		3.78		1.65		1.65
Class C (WGSCX)	12-26-2002		0.05			3.80		3.43		1.05		3.80		3.43		1.65		1.65
Administrator Class (WGSDX)	4-8-2005		–			–		–		2.02		4.80		4.54		0.84		0.68
Institutional Class (SGVIX)	8-31-1999		–			–		–		2.28		4.99		4.76		0.57		0.52
Investor Class (STVSX)	10-29-1986		–			–		–		1.78		4.54		4.27		0.93		0.93
Barclays U.S. Aggregate Excluding Credit Bond Index4	–		–			–		–		2.06		4.95		4.68		–		–
Barclays Intermediate U.S. Government Bond Index5	–		–			–		–		1.67		3.81		4.01		–		–

* 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 website, 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 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 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). The 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.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Advantage Government Securities Fund 5

Ten largest long-term holdings6 (%) as of February 28, 2013
U.S. Treasury Note, 0.50%, 10-15-2014	6.65
FHLMC, 3.50%, 3-1-2043	5.17
U.S. Treasury Note, 0.38%, 3-15-2015	4.38
FNMA, 4.50%, 3-1-2043	4.07
FNMA, 5.00%, 8-1-2040	3.51
GNMA, 4.50%, 3-1-2043	3.33
FNMA, 4.00%, 3-1-2043	3.33
FNMA, 3.00%, 3-1-2043	3.13
U.S. Treasury Note, 2.00%, 11-15-2021	2.76
U.S. Treasury Note, 0.88%, 1-31-2018	2.72

Portfolio allocation⁷ as of February 28, 2013

1. Effective June 20, 2008, the Advisor Class was renamed Class A and modified to assume the features and attributes of Class A. 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.

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

3. The Adviser has committed through December 31, 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. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the cap. Without this cap, the Fund’s returns would have been lower.

4. 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.

5. 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.

6. 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.

7. 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 Fund expenses (unaudited)

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, 2012 to February 28, 2013.

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 9-1-2012		Ending account value 2-28-2013		Expenses paid during the period1		Net annual expense ratio
Class A
Actual	$	1,000.00	$	994.55	$	4.20		0.85	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.58	$	4.26		0.85	%
Class B
Actual	$	1,000.00	$	989.97	$	7.89		1.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.86	$	8.00		1.60	%
Class C
Actual	$	1,000.00	$	989.97	$	7.89		1.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.86	$	8.00		1.60	%
Administrator Class
Actual	$	1,000.00	$	994.70	$	3.17		0.64	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.62	$	3.21		0.64	%
Institutional Class
Actual	$	1,000.00	$	996.35	$	2.38		0.48	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.41	$	2.41		0.48	%
Investor Class
Actual	$	1,000.00	$	993.53	$	4.30		0.87	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.48	$	4.36		0.87	%

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).

Summary portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Government Securities Fund 7

The Summary Portfolio of Investments shows the 50 largest portfolio holdings in unaffiliated issuers and any holdings exceeding 1% of the total net assets as of the report date. The remaining securities held are grouped as “Other securities” in each category. You can request a complete schedule of portfolio holdings as of the report date, free of charge, by accessing the following website: http://a584.g.akamai.net/f/584/1326/1d/www.wellsfargoadvantagefunds.com/pdf/semi/holdings/govtsecurities.pdf or by calling Wells Fargo Advantage Funds at 1-800-222-8222. This complete schedule, filed on the Form N-CSR, is also available on the SEC’s website at sec.gov.

Security name	Interest rate			Maturity date		Principal			Value		Percent of net assets
Agency Securities: 62.78%
FDIC Series 2010-S1 Class 1A ±144A		0.75	%		2-25-2048	$	14,434,548		$	14,463,244		0.77	%
FHMLC		0.24-10.50			11-17-2013 to 7-25-2043		140,052,083	��		101,317,562		5.38
FHLMC %%		3.50			3-1-2043		92,285,000			97,158,809		5.17
FHLMC %%		4.00			3-1-2043		29,010,000			30,814,059		1.64
FHLMC		5.50			7-1-2035		15,396,051			16,858,332		0.90
FHLMC		5.50			12-1-2038		11,945,639			12,964,485		0.69
FNMA		1.75			5-30-2019		19,000,000			19,607,107		1.04
FNMA		0.40-12.00			7-1-2013 to 8-25-2047		234,761,624			258,629,513		13.77
FNMA		2.38			1-13-2022		10,415,000			10,822,008		0.58
FNMA %%		3.00			3-1-2043		56,720,000			58,722,925		3.13
FNMA %%		3.50			3-1-2043		39,660,000			41,940,450		2.23
FNMA		3.69			6-1-2017		14,137,615			15,560,567		0.83
FNMA %%		4.00			3-1-2028		16,645,000			17,812,750		0.95
FNMA %%		4.00			3-1-2043		58,655,000			62,522,564		3.33
FNMA		4.15			7-1-2014		10,466,504			10,809,663		0.58
FNMA %%		4.50			3-1-2043		71,092,000			76,523,870		4.07
FNMA %%		4.50			3-1-2028		14,130,000			15,198,581		0.81
FNMA		5.00			8-1-2040		10,737,730			11,841,225		0.63
FNMA		5.00			8-1-2040		60,898,322			65,927,541		3.51
FNMA		5.12			1-1-2017		11,700,000			13,083,797		0.70
FNMA		5.50			6-1-2034		14,705,979			16,208,418		0.86
FNMA %%		6.00			3-1-2043		21,385,000			23,436,623		1.25
GNMA		0.00-13.00			11-15-2014 to 2-16-2050		262,031,087			13,725,433		0.72
GNMA		4.00			6-20-2042		25,333,604			27,343,327		1.46
GNMA %%		4.50			3-1-2043		57,530,000			62,626,801		3.33
GNMA		5.00			7-20-2040		12,932,149			14,381,805		0.77
GNMA Series 2006-32 Class C ±		5.51			11-16-2038		12,510,000			13,991,109		0.74
GNMA Series 2006-68 Class D ±		5.31			12-16-2037		12,520,000			13,899,654		0.74
GNMA Series 2007-35 Class NF ±		0.30			10-16-2035		15,924,441			15,935,286		0.85
GNMA Series 2007-44 Class FP ±		0.37			3-20-2036		12,441,851			12,453,198		0.66
Other securities										13,128,361		0.69
Total Agency Securities (Cost $1,156,233,000)										1,179,709,067		62.78
Municipal Obligations: 0.46%
Arkansas: 0.01%
Other securities										104,287		0.01
Texas: 0.45%
Other securities										8,423,422		0.45
Total Municipal Obligations (Cost $7,124,755)										8,527,709		0.46
Non-Agency Mortgage Backed Securities: 5.03%
Citigroup Commercial Mortgage Trust Series 2006-C4 Class A3 ±		5.74			3-15-2049		10,188,000			11,494,346		0.61

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

8 Wells Fargo Advantage Government Securities Fund Summary portfolio of investments—February 28, 2013 (unaudited)

Security name	Interest rate		��	Maturity date		Principal		Value		Percent of net assets
Non-Agency Mortgage Backed Securities (continued)
Citigroup Commercial Mortgage Trust Series 2006-C5 Class A4		5.43	%		10-15-2049	$	11,280,000	$	12,739,553		0.68	%
Lehman Brothers UBS Commercial Mortgage Trust Series 2006-C1 Class A4		5.16			2-15-2031		13,165,000		14,518,717		0.77
National Credit Union Administration Board Guaranteed Notes		0.58-2.90			3-6-2020 to 10-29-2020		20,945,511		21,606,070		1.15
Other securities									34,121,409		1.82
Total Non-Agency Mortgage Backed Securities (Cost $92,996,570)									94,480,095		5.03
U.S. Treasury Securities: 30.02%
U.S. Treasury Bond		2.75			8-15-2042		11,050,000		10,304,125		0.55
U.S. Treasury Bond		3.75			8-15-2041		29,900,000		34,001,921		1.81
U.S. Treasury Bond ##		4.50			2-15-2036		16,065,000		20,507,969		1.09
U.S. Treasury Bond ##		4.63			2-15-2040		22,800,000		29,860,886		1.59
U.S. Treasury Note		0.25			1-31-2014		28,380,000		28,399,951		1.51
U.S. Treasury Note		0.38			3-15-2015		82,035,000		82,233,689		4.38
U.S. Treasury Note		0.38			11-15-2015		25,000,000		25,041,025		1.33
U.S. Treasury Note «		0.50			10-15-2014		124,500,000		125,073,821		6.65
U.S. Treasury Note		0.63			4-30-2013		11,450,000		11,459,836		0.61
U.S. Treasury Note		0.88			1-31-2018		50,785,000		51,094,484		2.72
U.S. Treasury Note		2.00			11-15-2021		50,440,000		51,886,216		2.76
U.S. Treasury Note		2.25			7-31-2018		25,740,000		27,630,294		1.47
U.S. Treasury Note		6.25			8-15-2023		25,060,000		35,475,563		1.89
U.S. Treasury Note		7.25			8-15-2022		20,950,000		31,148,397		1.66
Total U.S. Treasury Securities (Cost $549,413,874)									564,118,177		30.02
Yankee Corporate Bonds and Notes: 4.44%
Financials: 4.44%
Commercial Banks: 3.77%
Bank of Nova Scotia 144A		1.65			10-29-2015		13,235,000		13,601,610		0.72
Kommunalbanken AS 144A		2.38			1-19-2016		10,135,000		10,646,007		0.57
Landwirtschaftliche Rentenbank		2.50			2-15-2016		14,125,000		14,925,323		0.80
Nordea Eiendomskreditt 144A		1.88			4-7-2015		10,430,000		10,598,966		0.56
Swedbank Hypotek 144A		2.13			8-31-2016		12,110,000		12,606,147		0.67
Other securities									8,421,005		0.45
									70,799,058		3.77
Diversified Financial Services: 0.67%
FMS Wertmanagement		1.00			11-21-2017		12,660,000		12,666,355		0.67
Total Yankee Corporate Bonds and Notes (Cost $80,949,639)									83,465,413		4.44
	Yield					Shares
Short-Term Investments: 24.18%
Investment Companies: 24.16%
Wells Fargo Advantage Government Money Market Fund, Institutional Class (u)(l)##		0.01					451,921,531		451,921,531		24.05
Wells Fargo Securities Lending Cash Investments, LLC (v)(u)(l)(r)		0.18					2,055,200		2,055,200		0.11
									453,976,731		24.16

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

Summary portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Government Securities Fund 9

Security name	Yield			Maturity date		Principal		Value			Percent of net assets
U.S. Treasury Securities: 0.02%
U.S Treasury Bill #(z)		0.07	%		3-21-2013	$	400,000	$	399,986			0.02	%
Total Short-Term Investments (Cost $454,376,717)									454,376,717			24.18
Total investments in securities (Cost $2,341,094,555) *									2,384,677,178			126.91	%
Other assets and liabilities, net									(505,581,039	)		(26.91	)
Total net assets								$	1,879,096,139			100.00	%

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

%% Security issued on a when-issued 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 has been segregated for when-issued securities.

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

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

(l) Investment in an affiliate

(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 Investment Company Act of 1940, as amended.

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

(z) Zero coupon security. Rate represents yield to maturity at time of purchase.

* Cost for federal income tax purposes is $2,347,288,896 and unrealized appreciation (depreciation) consists of:

Gross unrealized appreciation	$	58,623,292
Gross unrealized depreciation		(21,235,010	)
Net unrealized appreciation	$	37,388,282

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

10 Wells Fargo Advantage Government Securities Fund Statement of assets and liabilities—February 28, 2013 (unaudited)

Assets
Investments
In unaffiliated securities (including securities on loan), at value (see cost below)		$	1,930,700,447
In affiliated securities, at value (see cost below)			453,976,731
Total investments, at value (see cost below)			2,384,677,178
Receivable for investments sold			2,994,097
Principal paydown receivable			72,528
Receivable for Fund shares sold			2,414,432
Receivable for interest			5,229,556
Receivable for daily variation margin on open futures contracts			40,703
Receivable for securities lending income			3,419
Prepaid expenses and other assets			65,102
Total assets			2,395,497,015
Liabilities
Dividends payable			281,672
Payable for investments purchased			507,211,068
Payable for Fund shares redeemed			5,625,721
Payable upon receipt of securities loaned			2,055,200
Advisory fee payable			490,757
Distribution fees payable			39,884
Due to other related parties			270,625
Accrued expenses and other liabilities	��		425,949
Total liabilities			516,400,876
Total net assets		$	1,879,096,139
NET ASSETS CONSIST OF
Paid-in capital		$	1,880,402,906
Overdistributed net investment income			(1,513,065	)
Accumulated net realized losses on investments			(43,536,840	)
Net unrealized gains on investments			43,743,138
Total net assets		$	1,879,096,139
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE1
Net assets – Class A		$	242,371,710
Shares outstanding – Class A			21,823,991
Net asset value per share – Class A			$11.11
Maximum offering price per share – Class A2			$11.63
Net assets – Class B		$	3,451,608
Shares outstanding – Class B			310,851
Net asset value per share – Class B			$11.10
Net assets – Class C		$	64,313,682
Shares outstanding – Class C			5,791,744
Net asset value per share – Class C			$11.10
Net assets – Administrator Class		$	374,237,972
Shares outstanding – Administrator Class			33,710,090
Net asset value per share – Administrator Class			$11.10
Net assets – Institutional Class		$	636,659,294
Shares outstanding – Institutional Class			57,382,275
Net asset value per share – Institutional Class			$11.10
Net assets – Investor Class		$	558,061,873
Shares outstanding – Investor Class			50,218,714
Net asset value per share – Investor Class			$11.11
Investment in unaffiliated securities (including securities on loan), at cost		$	1,887,117,824
Investments in affiliated securities, at cost		$	453,976,731
Total investments, at cost		$	2,341,094,555
Securities on loan, at value		$	2,012,788

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 28, 2013 (unaudited) Wells Fargo Advantage Government Securities Fund 11

Investment income
Interest	$	15,522,556
Securities lending income, net		38,760
Income from affiliated securities		28,646
Total investment income		15,589,962
Expenses
Advisory fee		3,770,745
Administration fees
Fund level		512,553
Class A		195,232
Class B		3,147
Class C		55,358
Administrator Class		230,607
Institutional Class		271,998
Investor Class		562,239
Shareholder servicing fees
Class A		305,050
Class B		4,917
Class C		86,497
Administrator Class		571,634
Investor Class		728,572
Distribution fees
Class B		14,751
Class C		259,490
Custody and accounting fees		59,706
Professional fees		29,178
Registration fees		20,004
Shareholder report expenses		49,301
Trustees’ fees and expenses		4,443
Other fees and expenses		29,936
Total expenses		7,765,358
Less: Fee waivers and/or expense reimbursements		(456,530	)
Net expenses		7,308,828
Net investment income		8,281,134
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		12,340,935
Futures transactions		216,916
Net realized gains on investments		12,557,851
Net change in unrealized gains (losses) on:
Unaffiliated securities		(31,899,167	)
Futures transactions		(641,664	)
Net change in unrealized gains (losses) on investments		(32,540,831	)
Net realized and unrealized gains (losses) on investments		(19,982,980	)
Net decrease in net assets resulting from operations	$	(11,701,846	)

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

12 Wells Fargo Advantage Government Securities Fund Statement of changes in net assets

	Six months ended February 28, 2013 (unaudited)						Year ended August 31, 2012
Operations
Net investment income				$	8,281,134					$	31,709,463
Net realized gains on investments					12,557,851						60,620,016
Net change in unrealized gains (losses) on investments					(32,540,831	)					4,076,623
Net increase (decrease) in net assets resulting from operations					(11,701,846	)					96,406,102
Distributions to shareholders from
Net investment income
Class A					(957,363	)					(4,040,195	)
Class B					(703	)					(50,661	)
Class C					(12,194	)					(476,136	)
Administrator Class					(2,279,763	)					(5,658,571	)
Institutional Class					(3,906,663	)					(14,603,780	)
Investor Class					(2,242,307	)					(9,958,161	)
Net realized gains
Class A					(5,787,243	)					(1,482,998	)
Class B					(91,632	)					(37,056	)
Class C					(1,652,441	)					(358,176	)
Administrator Class					(11,374,048	)					(1,606,587	)
Institutional Class					(15,064,172	)					(4,364,227	)
Investor Class					(14,139,250	)					(3,776,055	)
Total distributions to shareholders					(57,507,779	)					(46,412,603	)
		Shares						Shares
Capital share transactions
Proceeds from shares sold
Class A		1,872,464			21,134,132			3,544,552			40,015,421
Class B		2,674			30,359			51,602			582,626
Class C		459,588			5,194,054			2,576,986			29,077,727
Administrator Class		11,015,109			124,874,975			25,800,176			290,085,809
Institutional Class		8,332,709			93,876,765			26,356,744			297,036,573
Investor Class		3,601,394			40,700,147			10,776,003			121,728,409
					285,810,432						778,526,565
Reinvestment of distributions
Class A		520,347			5,830,161			413,930			4,667,606
Class B		6,788			75,973			5,945			66,857
Class C		59,998			671,495			25,397			285,651
Administrator Class		510,866			5,720,638			499,795			5,635,912
Institutional Class		1,476,125			16,532,852			1,457,174			16,426,421
Investor Class		1,413,924			15,855,281			1,163,914			13,133,042
					44,686,400						40,215,489
Payment for shares redeemed
Class A		(3,069,222	)		(34,660,044	)		(5,524,740	)		(62,538,809	)
Class B		(110,401	)		(1,249,975	)		(276,649	)		(3,121,669	)
Class C		(1,282,463	)		(14,434,984	)		(1,264,848	)		(14,296,158	)
Administrator Class		(15,858,313	)		(176,688,111	)		(12,873,292	)		(145,922,850	)
Institutional Class		(20,329,401	)		(230,648,613	)		(23,941,321	)		(270,366,632	)
Investor Class		(10,556,012	)		(118,866,675	)		(16,524,757	)		(186,812,058	)
					(576,548,402	)					(683,058,176	)
Net increase (decrease) in net assets resulting from capital share transactions					(246,051,570	)					135,683,878
Total increase (decrease) in net assets					(315,261,195	)					185,677,377
Net assets
Beginning of period					2,194,357,334						2,008,679,957
End of period				$	1,879,096,139					$	2,194,357,334
Overdistributed net investment income				$	(1,513,065	)				$	(395,206	)

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

Financial highlights Wells Fargo Advantage Government Securities Fund 13

(For a share outstanding throughout each period)

	Six months ended February 28, 2013 (unaudited)			Year ended August 31									Year ended May 31
CLASS A				2012			2011			20101			2010			20092			20082
Net asset value, beginning of period	$	11.48		$	11.23		$	11.16		$	10.89		$	10.71		$	10.45		$	10.22
Net investment income		0.04			0.15			0.25			0.06	3		0.29			0.39	3		0.48
Net realized and unrealized gains (losses) on investments		(0.10	)		0.33			0.16			0.30			0.39			0.34			0.25
Total from investment operations		(0.06	)		0.48			0.41			0.36			0.68			0.73			0.73
Distributions to shareholders from
Net investment income		(0.04	)		(0.17	)		(0.34	)		(0.09	)		(0.41	)		(0.44	)		(0.50	)
Net realized gains		(0.27	)		(0.06	)		0.00			0.00			(0.09	)		(0.03	)		0.00
Total distributions to shareholders		(0.31	)		(0.23	)		(0.34	)		(0.09	)		(0.50	)		(0.47	)		(0.50	)
Net asset value, end of period	$	11.11		$	11.48		$	11.23		$	11.16		$	10.89		$	10.71		$	10.45
Total return4		(0.55	)%		4.35	%		3.75	%		3.29	%		6.48	%		7.17	%		7.21	%
Ratios to average net assets (annualized)
Gross expenses		0.85	%		0.86	%		0.85	%		0.86	%		0.89	%		0.90	%		1.03	%
Net expenses		0.85	%		0.86	%		0.85	%		0.86	%		0.89	%		0.90	%		0.90	%
Net investment income		0.67	%		1.35	%		2.31	%		2.10	%		2.71	%		3.65	%		4.54	%
Supplemental data
Portfolio turnover rate		173	%		327	%		268	%		89	%		194	%		368	%		263	%
Net assets, end of period (000s omitted)		$242,372			$258,329			$270,253			$326,800			$174,781			$181,342			$71,233

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.

14 Wells Fargo Advantage Government Securities Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2013 (unaudited)			Year ended August 31									Year ended May 31
CLASS B				2012			2011			20101			2010			20092
Net asset value, beginning of period	$	11.48		$	11.23		$	11.16		$	10.89		$	10.70		$	10.32
Net investment income (loss)		(0.00	)3		0.08	3		0.15			0.04	3		0.24	3		0.27	3
Net realized and unrealized gains (losses) on investments		(0.11	)		0.31			0.17			0.30			0.37			0.45
Total from investment operations		(0.11	)		0.39			0.32			0.34			0.61			0.72
Distributions to shareholders from
Net investment income		(0.00	)4		(0.08	)		(0.25	)		(0.07	)		(0.33	)		(0.31	)
Net realized gains		(0.27	)		(0.06	)		0.00			0.00			(0.09	)		(0.03	)
Total distributions to shareholders		(0.27	)		(0.14	)		(0.25	)		(0.07	)		(0.42	)		(0.34	)
Net asset value, end of period	$	11.10		$	11.48		$	11.23		$	11.16		$	10.89		$	10.70
Total return5		(1.00	)%		3.57	%		2.98	%		3.10	%		5.80	%		7.00	%
Ratios to average net assets (annualized)
Gross expenses		1.60	%		1.61	%		1.60	%		1.60	%		1.63	%		1.65	%
Net expenses		1.60	%		1.61	%		1.60	%		1.60	%		1.63	%		1.65	%
Net investment income (loss)		(0.07	)%		0.68	%		1.55	%		1.29	%		2.09	%		2.94	%
Supplemental data
Portfolio turnover rate		173	%		327	%		268	%		89	%		194	%		368	%
Net assets, end of period (000s omitted)		$3,452			$4,727			$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. 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.

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

Financial highlights Wells Fargo Advantage Government Securities Fund 15

(For a share outstanding throughout each period)

	Six months ended February 28, 2013 (unaudited)			Year ended August 31									Year ended May 31
CLASS C				2012			2011			20101			2010			2009			2008
Net asset value, beginning of period	$	11.48		$	11.23		$	11.16		$	10.89		$	10.70		$	10.45		$	10.22
Net investment income (loss)		(0.00	)2		0.07			0.17			0.04	2		0.23			0.30	2		0.39
Net realized and unrealized gains (losses) on investments		(0.11	)		0.32			0.15			0.30			0.38			0.35			0.25
Total from investment operations		(0.11	)		0.39			0.32			0.34			0.61			0.65			0.64
Distributions to shareholders from
Net investment income		(0.00	)3		(0.08	)		(0.25	)		(0.07	)		(0.33	)		(0.37	)		(0.41	)
Net realized gains		(0.27	)		(0.06	)		0.00			0.00			(0.09	)		(0.03	)		0.00
Total distributions to shareholders		(0.27	)		(0.14	)		(0.25	)		(0.07	)		(0.42	)		(0.40	)		(0.41	)
Net asset value, end of period	$	11.10		$	11.48		$	11.23		$	11.16		$	10.89		$	10.70		$	10.45
Total return4		(1.00	)%		3.57	%		2.98	%		3.09	%		5.78	%		6.28	%		6.36	%
Ratios to average net assets (annualized)
Gross expenses		1.60	%		1.61	%		1.60	%		1.61	%		1.64	%		1.63	%		1.77	%
Net expenses		1.60	%		1.61	%		1.60	%		1.61	%		1.64	%		1.63	%		1.70	%
Net investment income (loss)		(0.07	)%		0.55	%		1.56	%		1.35	%		1.89	%		2.78	%		3.69	%
Supplemental data
Portfolio turnover rate		173	%		327	%		268	%		89	%		194	%		368	%		263	%
Net assets, end of period (000s omitted)		$64,314			$75,244			$58,576			$59,580			$34,927			$21,783			$2,595

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. Amount is less than $0.005.

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.

16 Wells Fargo Advantage Government Securities Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2013 (unaudited)			Year ended August 31									Year ended May 31
ADMINISTRATOR CLASS				2012			2011			20101			2010			2009			2008
Net asset value, beginning of period	$	11.48		$	11.23		$	11.16		$	10.89		$	10.70		$	10.45		$	10.22
Net investment income		0.05			0.17	2		0.27	2		0.06	2		0.32			0.41	2		0.49
Net realized and unrealized gains (losses) on investments		(0.10	)		0.33			0.16			0.30			0.39			0.34			0.26
Total from investment operations		(0.05	)		0.50			0.43			0.36			0.71			0.75			0.75
Distributions to shareholders from
Net investment income		(0.06	)		(0.19	)		(0.36	)		(0.09	)		(0.43	)		(0.47	)		(0.52	)
Net realized gains		(0.27	)		(0.06	)		0.00			0.00			(0.09	)		(0.03	)		0.00
Total distributions to shareholders		(0.33	)		(0.25	)		(0.36	)		(0.09	)		(0.52	)		(0.50	)		(0.52	)
Net asset value, end of period	$	11.10		$	11.48		$	11.23		$	11.16		$	10.89		$	10.70		$	10.45
Total return3		(0.53	)%		4.57	%		3.97	%		3.34	%		6.78	%		7.28	%		7.42	%
Ratios to average net assets (annualized)
Gross expenses		0.78	%		0.79	%		0.74	%		0.79	%		0.81	%		0.81	%		0.85	%
Net expenses		0.64	%		0.64	%		0.64	%		0.67	%		0.70	%		0.70	%		0.70	%
Net investment income		0.87	%		1.49	%		2.50	%		2.30	%		2.90	%		3.86	%		4.72	%
Supplemental data
Portfolio turnover rate		173	%		327	%		268	%		89	%		194	%		368	%		263	%
Net assets, end of period (000s omitted)		$374,238			$436,578			$276,334			$366,430			$243,760			$266,579			$123,993

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 17

(For a share outstanding throughout each period)

	Six months ended February 28, 2013 (unaudited)			Year ended August 31									Year ended May 31
INSTITUTIONAL CLASS				2012			2011			20101			2010			2009			2008
Net asset value, beginning of period	$	11.47		$	11.22		$	11.15		$	10.88		$	10.70		$	10.44		$	10.21
Net investment income		0.06			0.19	2		0.30			0.07	2		0.32	2		0.44	2		0.52
Net realized and unrealized gains (losses) on investments		(0.10	)		0.33			0.15			0.30			0.41			0.34			0.25
Total from investment operations		(0.04	)		0.52			0.45	��		0.37			0.73			0.78			0.77
Distributions to shareholders from
Net investment income		(0.06	)		(0.21	)		(0.38	)		(0.10	)		(0.46	)		(0.49	)		(0.54	)
Net realized gains		(0.27	)		(0.06	)		0.00			0.00			(0.09	)		(0.03	)		0.00
Total distributions to shareholders		(0.33	)		(0.27	)		(0.38	)		(0.10	)		(0.55	)		(0.52	)		(0.54	)
Net asset value, end of period	$	11.10		$	11.47		$	11.22		$	11.15		$	10.88		$	10.70		$	10.44
Total return3		(0.37	)%		4.74	%		4.14	%		3.39	%		6.92	%		7.62	%		7.66	%
Ratios to average net assets (annualized)
Gross expenses		0.52	%		0.53	%		0.52	%		0.52	%		0.54	%		0.56	%		0.59	%
Net expenses		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%
Net investment income		1.05	%		1.71	%		2.71	%		2.52	%		3.06	%		4.14	%		4.96	%
Supplemental data
Portfolio turnover rate		173	%		327	%		268	%		89	%		194	%		368	%		263	%
Net assets, end of period (000s omitted)		$636,659			$778,919			$718,411			$531,890			$463,726			$313,486			$326,015

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.

18 Wells Fargo Advantage Government Securities Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2013 (unaudited)			Year ended August 31									Year ended May 31
INVESTOR CLASS				2012			2011			20101			2010			2009			2008
Net asset value, beginning of period	$	11.49		$	11.24		$	11.17		$	10.90		$	10.71		$	10.46		$	10.22
Net investment income		0.04			0.15	2		0.25	2		0.06	2		0.29			0.39	2		0.47
Net realized and unrealized gains (losses) on investments		(0.11	)		0.33			0.15			0.30			0.40			0.33			0.26
Total from investment operations		(0.07	)		0.48			0.40			0.36			0.69			0.72			0.73
Distributions to shareholders from
Net investment income		(0.04	)		(0.17	)		(0.33	)		(0.09	)		(0.41	)		(0.44	)		(0.49	)
Net realized gains		(0.27	)		(0.06	)		0.00			0.00			(0.09	)		(0.03	)		0.00
Total distributions to shareholders		(0.31	)		(0.23	)		(0.33	)		(0.09	)		(0.50	)		(0.47	)		(0.49	)
Net asset value, end of period	$	11.11		$	11.49		$	11.24		$	11.17		$	10.90		$	10.71		$	10.46
Total return3		(0.65	)%		4.31	%		3.72	%		3.28	%		6.53	%		7.02	%		7.26	%
Ratios to average net assets (annualized)
Gross expenses		0.87	%		0.89	%		0.88	%		0.90	%		0.94	%		0.94	%		1.16	%
Net expenses		0.87	%		0.89	%		0.88	%		0.90	%		0.94	%		0.94	%		0.95	%
Net investment income		0.65	%		1.33	%		2.25	%		2.10	%		2.66	%		3.65	%		4.48	%
Supplemental data
Portfolio turnover rate		173	%		327	%		268	%		89	%		194	%		368	%		263	%
Net assets, end of period (000s omitted)		$558,062			$640,561			$678,022			$1,146,356			$1,024,088			$1,134,770			$869,009

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 19

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

All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (normally 4 p.m. Eastern Time).

Fixed income securities acquired with maturities exceeding 60 days are valued based on evaluated bid prices received from an independent pricing service 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 independent pricing service or values received are deemed not representative of market value, values will be obtained from a broker-dealer or otherwise determined based on the Fund’s Valuation Procedures.

Debt securities of sufficient credit quality acquired with 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 registered open-end investment companies are valued at net asset value. Non-registered investment companies are fair 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. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Management Valuation Team of Wells Fargo Funds Management, LLC (“Funds Management”). The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Management Valuation Team which may include items for ratification.

Valuations of fair valued securities are compared to the next actual sales price when available, or other appropriate market information to assess the continued appropriateness of the fair valuation methodology used. These securities are fair valued on a day-to-day basis, taking into consideration changes to appropriate market information and any significant changes to the input factors considered in the valuation process until there is a readily available price provided on the exchange or by an independent pricing service. Valuations received from an independent pricing service or broker quotes are periodically validated by comparisons to most recent trades and valuations provided by other independent pricing services in addition to the review of prices by the adviser and/or subadviser. Unobservable inputs used in determining fair valuations are identified based on the type of security, taking into consideration factors utilized by market participants in valuing the investment, knowledge about the issuer and the current market environment.

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

20 Wells Fargo Advantage Government Securities Fund Notes to financial statements (unaudited)

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 Funds Management and is subadvised by Wells Capital Management Incorporated (“WellsCap”). 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 WellsCap for its services as subadviser. 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 in an amount at least equal in value to the Fund’s commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.

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 recorded on the basis of identified cost.

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

Notes to financial statements (unaudited) Wells Fargo Advantage Government Securities Fund 21

Federal and other taxes

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

The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

As of August 31, 2012, the Fund had pre-enactment capital loss carryforwards incurred in taxable years beginning before December 22, 2010, which were available to offset future net realized capital gains, in the amount of $38,122,354, with $10,703,099 expiring in 2015; $3,431,622 expiring in 2016; and $23,987,633 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 any 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, use of amortized cost, etc.)

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

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

As of February 28, 2013, the inputs used in valuing investments in securities, 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	$	1,179,686,228	$	22,839	$	1,179,709,067
Municipal obligations		0		8,527,709		0		8,527,709
Non-agency mortgage backed securities		0		94,480,095		0		94,480,095
U.S. Treasury securities		564,118,177		0		0		564,118,177
Yankee corporate bonds and notes		0		83,465,413		0		83,465,413
Short-term investments
Investment companies		451,921,531		2,055,200		0		453,976,731
U.S. Treasury securities		399,986		0		0		399,986
	$	1,016,439,694	$	1,368,214,645	$	22,839	$	2,384,677,178

22 Wells Fargo Advantage Government Securities Fund Notes to financial statements (unaudited)

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

As of February 28, 2013, 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+	$	160,515	$	0	$	0	$	160,515

+ 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 28, 2013, the Fund did not have any transfers into/out of Level 1 or Level 2.

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 subadviser, 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 28, 2013, 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 a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. WellsCap, an affiliate of Funds Management, is the subadviser 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 December 31, 2013 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.87% for Class A shares, 1.62% for Class B shares, 1.62% for Class C shares, and 0.64% for Administrator Class shares, 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 28, 2013, Wells Fargo Funds Distributor, LLC received $6,128 from the sale of Class A shares and $563 and $21 in contingent deferred sales charges from redemptions of Class B and Class C shares, respectively.

Notes to financial statements (unaudited) Wells Fargo Advantage Government Securities Fund 23

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, for the six months ended February 28, 2013 were as follows:

Purchases at cost		Sales proceeds
U.S. government	Non-U.S. government	U.S. government	Non-U.S. government
$3,516,016,975	$30,763,008	$3,498,544,884	$58,548,967

6. DERIVATIVE TRANSACTIONS

During the six months ended February 28, 2013, the Fund entered into futures contracts to speculate on interest rates and to help shorten or lengthen the duration of the portfolio.

At February 28, 2013, the Fund had long and short futures contracts outstanding as follows:

Expiration date	Contracts	Type	Contract value at February 28, 2013		Unrealized gains (losses)
6-28-2013	779 Long	5-Year U.S Treasury Notes	$	96,583,828	$	187,332
6-28-2013	241 Short	2-Year U.S Treasury Notes		53,132,969		(26,817	)

The Fund had an average notional amount of $102,673,370 and $72,932,197 in long futures contracts and short futures contracts, respectively, during the six months ended February 28, 2013

On February 28, 2013, the cumulative unrealized gains on futures contracts in the amount of $160,515 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 gains and change in unrealized gains or losses on futures contracts are reflected in the Statement of Operations.

7. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds in the Trust) 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. For the six months ended February 28, 2013, the Fund paid $473 in commitment fees.

For the six months ended February 28, 2013, 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 PRONOUNCEMENT

In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2011-11, Disclosures about Offsetting Assets and Liabilities. ASU 2011-11, which amends FASB ASC Topic 210, Balance Sheet, creates new disclosure requirements which require entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently assessing the potential impact, in addition to expanded financial statement disclosure, that may result from adopting this ASU.

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

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available on the Fund’s website (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 website 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 website at sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at 233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Other information (unaudited) Wells Fargo Advantage Government Securities Fund 25

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers listed in the table below acts in identical capacities for the Wells Fargo Advantage family of funds, which consists of 135 funds¹ comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information². 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	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. Advisory Board Member, Palm Coast Academy (charter school). Mr. Harris is a certified public accountant.	CIGNA Corporation; Deluxe Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, 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 48 portfolios as of 1/31/2013); 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, Morgan Stanley Director of the Center for Leadership Development and Research 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
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

26 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
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.	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 Tree Trust (non-profit corporation). Director of the American Chestnut Foundation (non-profit corporation).	Asset Allocation Trust

* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.

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.
Nancy Wiser1 (Born 1967)	Treasurer, since 2012	Executive Vice President of Wells Fargo Funds Management, LLC since 2011. Chief Operating Officer and Chief Compliance Officer at LightBox Capital Management LLC, from 2008 to 2011. Owned and operated a consulting business providing services to various hedge funds including acting as Chief Operating Officer and Chief Compliance Officer for a hedge fund from 2007 to 2008. Chief Operating Officer and Chief Compliance Officer of GMN Capital LLC from 2006 to 2007.
C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Officer, since 2003	Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001. Vice President and Managing Counsel of Wells Fargo Bank, N.A. since 1996.
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.
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 DePalma1 (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.

1. Nancy Wiser acts as Treasurer of 74 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 61 funds and Assistant Treasurer of 74 funds in the Fund Complex.

2. 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 website at wellsfargoadvantagefunds.com.

List of abbreviations Wells Fargo Advantage Government Securities Fund 27

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian 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

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

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

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 depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Industrial development revenue

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

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

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

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

SPA —  Standby purchase agreement

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

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

This page is intentionally left blank.

This page is intentionally left blank.

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, email, visit the Fund’s website, or call:

Wells Fargo Advantage Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: wfaf@wellsfargo.com

Website: 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 current prospectus and, if available, a summary prospectus containing more complete information, including charges and expenses, call 1-800-222-8222 or visit the Fund’s website 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

© 2013 Wells Fargo Funds Management, LLC. All rights reserved.

215345 04-13 SA216/SAR216 2-13

Wells Fargo Advantage High Income Fund

Semi-Annual Report

February 28, 2013

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	4
Fund expenses	6
Portfolio of investments	7
Financial statements
Statement of assets and liabilities	15
Statement of operations	16
Statement of changes in net assets	17
Financial highlights	18
Notes to financial statements	24
Other information	29
List of abbreviations	32

The views expressed and any forward-looking statements are as of February 28, 2013, 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 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 the 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 the investment objectives, risks, charges, and expenses before investing. For a current prospectus and, if available, a summary prospectus, for Wells Fargo Advantage Funds, 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, 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 $225 billion in assets under management, as of February 28, 2013.

Equity funds
Asia Pacific Fund	Enterprise Fund†	Opportunity Fund†
C&B Large Cap Value Fund	Global Opportunities Fund	Precious Metals Fund
C&B Mid Cap Value Fund	Growth Fund	Premier Large Company Growth Fund
Capital Growth Fund	Index Fund	Small Cap Opportunities Fund
Common Stock Fund	International Equity Fund	Small Cap Value Fund
Disciplined U.S. Core Fund	International Value Fund	Small Company Growth Fund
Discovery Fund†	Intrinsic Small Cap Value Fund	Small Company Value Fund
Diversified Equity Fund	Intrinsic Value Fund	Small/Mid Cap Value Fund
Diversified International Fund	Intrinsic World Equity Fund	Special Mid Cap Value Fund
Emerging Growth Fund	Large Cap Core Fund	Special Small Cap Value Fund
Emerging Markets Equity Fund	Large Cap Growth Fund	Specialized Technology Fund
Emerging Markets Equity Income Fund	Large Company Value Fund	Traditional Small Cap Growth Fund
Endeavor Select Fund†	Omega Growth Fund	Utility and Telecommunications Fund
Bond funds
Adjustable Rate Government Fund	High Yield Municipal Bond Fund	Short Duration Government Bond Fund
California Limited-Term Tax-Free Fund	Income Plus Fund	Short-Term Bond Fund
California Tax-Free Fund	Inflation-Protected Bond Fund	Short-Term High Yield Bond Fund
Colorado Tax-Free Fund	Intermediate Tax/AMT-Free Fund	Short-Term Municipal Bond Fund
Core Bond Fund	International Bond Fund	Strategic Income Fund
Emerging Markets Local Bond Fund	Minnesota Tax-Free Fund	Strategic Municipal Bond Fund
Government Securities Fund	Municipal Bond Fund	Ultra Short-Term Income Fund
High Income Fund	North Carolina Tax-Free Fund	Ultra Short-Term Municipal Income Fund
High Yield Bond Fund	Pennsylvania Tax-Free 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	Treasury Plus Money Market Fund
Cash Investment Money Market Fund	Municipal Cash Management 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 (unaudited)

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Fixed-income performance was best among lower-rated corporate bonds and commercial mortgage-backed securities, as continued monetary accommodation from the U.S. Federal Reserve strengthened the demand for securities with higher yields.

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 28, 2013. During the period, fixed-income performance was best among lower-rated corporate bonds and commercial mortgage-backed securities (CMBS), as continued monetary accommodation from the U.S. Federal Reserve (Fed) strengthened the demand for securities with higher yields. However, the longest-maturity segments of the fixed-income market generally underperformed the mid-maturity and short-maturity segments because longer-maturity U.S. Treasury yields shifted higher, most notably in January 2013, thereby influencing a decline in the prices of longer-maturity fixed-income securities.

Credit sectors rallied for much of the second half of 2012, outperforming U.S. Treasuries.

As policymaking in Europe during the summer months of 2012 began to reassure global credit markets that the euro would likely survive and that all appropriate measures would be taken to bolster European debt markets, lower-rated securities in the U.S. once again rallied in price, significantly outpacing the returns from U.S. Treasuries. Corporate bonds and CMBS were once again the best-performing sectors of the core fixed income markets from August 2012 through the end of the year, as they had been before the European credit crisis escalated in the spring.

In December 2012, the Fed reaffirmed its commitment to highly accommodative monetary policy, citing its dual mandate of fostering maximum employment and price stability. For the first time since the financial crisis began in 2008, the Fed formally announced specific target ranges that could trigger a change to its highly accommodative monetary policy, most notably that exceptionally low interest rates would be appropriate at least as long as the unemployment rate remained above 6.5% and inflation expectations were no more than half a percentage point above its 2.0% inflation target. These thresholds were the first official measures of when and how a change to monetary policy may take effect.

U.S. Treasury yields shift significantly higher in January 2013.

With growing confidence in the U.S. economy and improving stability in the European credit markets, longer-maturity U.S. Treasury yields began to shift significantly higher in January 2013. The yield on the 10-year U.S. Treasury note ratcheted higher to 2.00% in January 2013, after finishing 2012 at 1.75% and reaching a modern-era record low of 1.41% in late July 2012. The 30-year U.S. Treasury bond finished the period at a yield of 3.09%, up from 2.58% at the start of the period. Thus, during the period, longer-maturity securities felt the pressure of yields shifting higher, which eroded some of their pricing. The best-performing sections of the yield curve were generally in the five- to 10-year range, which benefited from relatively adequate yields while remaining mostly insulated from the price erosion in maturities of 10 years and longer.

Despite this persistent trend toward higher yields during the final three months of the period, which chipped away at some security prices, several areas of the taxable fixed income markets continued to generate relatively compelling returns, considering the extraordinarily low level of interest rates. Spreads in the corporate bond sector continued to tighten while U.S. Treasury yields shifted higher, thus providing some protection against price erosion. CMBS spreads also tightened during the period resulting in some of the strongest six-month returns in the taxable investment-grade sectors. Within the Barclays U.S. Aggregate Bond Index¹, the CMBS sector returned 2.35% during the six-month period, the corporate

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

Letter to shareholders (unaudited) Wells Fargo Advantage High Income Fund 3

sector returned 1.64%, and the U.S. Treasury sector returned (0.67)%. The lower-rated credit tiers continued to outperform each respectively higher credit tier during the period, despite the rising yield influence in the longest maturities.

Overall, the theme for the six-month period in the U.S. fixed income markets was relatively strong performance from the corporate and CMBS sectors, particularly in the lower-rated credit tiers, with a protracted decline in prices of U.S. Treasuries. On the whole, most credit-related sectors generated relatively generous returns during the six-month period considering the extraordinarily low level of interest rates. However, the trend from previous periods of strong performance from longer-maturity securities began to unwind in January and February 2013. During this period, credit risks were rewarded better than interest rate risks, meaning that higher-yield compensation from lower-rated securities performed better than higher-yield compensation from longer-maturity securities, which experienced price pressures. Investment strategies that focused on mid- to lower-rated credit tiers and mid-maturity securities generally saw the strongest returns during the period.

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.

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 website 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

Most credit-related sectors generated relatively generous returns during the six-month period considering the extraordinarily low level of interest rates.

Notice to shareholders

At its November 6-7, 2012 meeting, the Board of Trustees unanimously approved the following modifications to certain Class A sales load waiver privileges, with each change becoming effective on July 1, 2013:

n Annuity payments received under an annuity option or from death proceeds will no longer qualify for net asset value (NAV) repurchase privileges.

n The ability to reinvest redemption proceeds at NAV will be reduced from 120 days to 90 days.

n NAV purchase privileges for certain types of “grandfathered” shareholders will be modified to remove the ability to purchase Class A shares at NAV, unless those shares are held directly with the Fund.

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

4 Wells Fargo Advantage High Income Fund Performance highlights (unaudited)

Investment objective

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

Adviser

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Kevin J. Maas, CFA

Thomas M. Price, CFA

Michael J. Schueller, CFA

Average annual total returns¹ (%) as of February 28, 2013

		Including sales charge						Excluding sales charge						Expense ratios2 (%)
	Inception date	1 year		5 year		10 year		1 year		5 year		10 year		Gross		Net3
Class A (SHBAX)	2-29-2000		5.33		7.99		8.20		10.30		8.99		8.70		1.01		0.91
Class B (WFNBX)*	7-18-2008		4.48		7.88		8.16		9.48		8.17		8.16		1.76		1.66
Class C (WFNCX)	7-18-2008		8.48		8.17		7.92		9.48		8.17		7.92		1.76		1.66
Administrator Class (WFNDX)	7-30-2010		–		–		–		10.51		9.13		8.92		0.95		0.81
Institutional Class (SHYYX)	7-31-2001		–		–		–		10.70		9.44		9.23		0.68		0.51
Investor Class (STHYX)	12-28-1995		–		–		–		10.39		8.98		8.75		1.04		0.94
Barclays U.S. Corporate High Yield Bond Index4	–		–		–		–		11.83		11.35		10.32		–		–

* 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 website, 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 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 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). The Fund is exposed to foreign investment risk. Consult the Fund’s prospectus for additional information on these and other risks.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Advantage High Income Fund 5

Ten largest long-term holdings5 (%) as of February 28, 2013
ArcelorMittal, 6.75%, 2-25-2022	1.26
TRW Automotive Incorporated, 4.50%, 3-1-2021	0.92
Levi Strauss & Company, 6.88%, 5-1-2022	0.87
Limited Brands Incorporated, 6.63%, 4-1-2021	0.84
Reynolds Group Holdings, 5.75%, 10-15-2020	0.82
Sirius XM Radio Incorporated, 5.25%, 8-15-2022	0.81
Cooper-Standard Holdings Incorporated, 8.50%, 5-1-2018	0.79
United Rentals North America Incorporated, 8.38%, 9-15-2020	0.78
CITGO Petroleum Corporation, 11.50%, 7-1-2017	0.78
HealthSouth Corporation, 8.13%, 2-15-2020	0.78

Credit quality⁶ as of February 28, 2013

1. Effective June 20, 2008, the Advisor Class was renamed Class A and modified to assume the features and attributes of Class A. 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.

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

3. The Adviser has committed through December 31, 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. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the cap. Without this cap, the Fund’s returns would have been lower.

4. 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.

5. 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.

6. 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). Moody’s rates the creditworthiness of short-term securities from P-1 (highest) to P-3 (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 long-term investments of the Fund. We generally define higher-quality (investment grade) bonds as bonds having a rating above BBB/Baa and lower-quality bonds as bonds having a rating below BBB/Baa.

6 Wells Fargo Advantage High Income Fund Fund expenses (unaudited)

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, 2012 to February 28, 2013.

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 9-1-2012		Ending account value 2-28-2013		Expenses paid during the period¹		Net annual expense ratio
Class A
Actual	$	1,000.00	$	1,051.60	$	4.58		0.90	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.33	$	4.51		0.90	%
Class B
Actual	$	1,000.00	$	1,047.72	$	8.38		1.65	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.61	$	8.25		1.65	%
Class C
Actual	$	1,000.00	$	1,047.71	$	8.38		1.65	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.61	$	8.25		1.65	%
Administrator Class
Actual	$	1,000.00	$	1,053.24	$	4.07		0.80	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.83	$	4.01		0.80	%
Institutional Class
Actual	$	1,000.00	$	1,053.46	$	2.55		0.50	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.32	$	2.51		0.50	%
Investor Class
Actual	$	1,000.00	$	1,052.69	$	4.73		0.93	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.18	$	4.66		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).

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage High Income Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Corporate Bonds and Notes: 81.18%
Consumer Discretionary: 25.26%
Auto Components: 4.40%
American Axle Manufacturing Incorporated «		6.63	%		10-15-2022	$	6,000,000	$	6,135,000
Cooper-Standard Holdings Incorporated		8.50			5-1-2018		6,415,000		6,960,270
Dana Holding Corporation		6.75			2-15-2021		4,000,000		4,355,000
Delphi Corporation		5.00			2-15-2023		5,850,000		6,091,313
Lear Corporation 144A		4.75			1-15-2023		1,000,000		975,000
Lear Corporation		8.13			3-15-2020		2,400,000		2,676,000
Tenneco Automotive Incorporated		7.75			8-15-2018		3,000,000		3,296,250
TRW Automotive Incorporated 144A		4.50			3-1-2021		8,000,000		8,100,000
									38,588,833
Automobiles: 0.73%
Ford Motor Company		7.45			7-16-2031		5,000,000		6,406,560
Diversified Consumer Services: 1.11%
Service Corporation International		4.50			11-15-2020		4,220,000		4,204,175
Service Corporation International		7.50			4-1-2027		200,000		220,750
Stewart Enterprises Incorporated		6.50			4-15-2019		5,000,000		5,337,500
									9,762,425
Hotels, Restaurants & Leisure: 4.73%
Caesars Entertainment Corporation		8.50			2-15-2020		1,000,000		975,000
Caesars Entertainment Corporation 144A		9.00			2-15-2020		5,000,000		4,937,500
CKE Restaurants Incorporated		11.38			7-15-2018		4,192,000		4,883,680
MGM Resorts International Company		6.63			12-15-2021		4,000,000		4,140,000
MGM Resorts International Company		8.63			2-1-2019		1,000,000		1,147,500
Penn National Gaming Incorporated		8.75			8-15-2019		3,750,000		4,256,250
Seminole Indian Tribe of Florida 144A		7.75			10-1-2017		4,900,000		5,310,375
Shingle Springs Tribal Gaming Authority 144A		9.38			6-15-2015		4,050,000		4,019,625
Tunica-Biloxi Gaming Authority 144A		9.00			11-15-2015		6,260,000		5,602,700
Yonkers Racing Corporation 144A		11.38			7-15-2016		5,770,000		6,231,600
									41,504,230
Household Durables: 1.46%
Beazer Homes USA Company		6.63			4-15-2018		1,000,000		1,068,750
Beazer Homes USA Company 144A		7.25			2-1-2023		5,000,000		5,037,500
Meritage Homes Corporation		7.00			4-1-2022		1,500,000		1,661,250
Meritage Homes Corporation		7.15			4-15-2020		4,500,000		5,006,250
									12,773,750
Media: 8.36%
CCO Holdings LLC		5.13			2-15-2023		2,000,000		1,950,000
CCO Holdings LLC		6.50			4-30-2021		2,000,000		2,130,000
CCO Holdings LLC		6.63			1-31-2022		2,000,000		2,165,000
CCO Holdings LLC		7.00			1-15-2019		5,000,000		5,387,500
Cequel Communications Holdings 144A		6.38			9-15-2020		5,000,000		5,168,750
Cinemark USA Incorporated 144A		5.13			12-15-2022		6,000,000		6,030,000
Clear Channel Communications Incorporated		9.00			3-1-2021		7,250,000		6,561,250

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

8 Wells Fargo Advantage High Income Fund Portfolio of investments—February 28, 2013 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Media (continued)
Clear Channel Worldwide Holdings Incorporated		7.63	%		3-15-2020	$	4,250,000	$	4,398,750
DISH DBS Corporation		6.75			6-1-2021		2,000,000		2,225,000
DISH DBS Corporation		7.88			9-1-2019		4,500,000		5,326,875
LBI Media Incorporated 144A		10.00			4-15-2019		4,000,000		3,690,000
Lynx I Corporation 144A		5.38			4-15-2021		6,000,000		6,150,000
Lynx II Corporation 144A		6.38			4-15-2023		2,000,000		2,072,500
National CineMedia LLC		6.00			4-15-2022		3,000,000		3,217,500
Regal Cinemas Corporation		8.63			7-15-2019		5,000,000		5,550,000
Regal Entertainment Group		5.75			2-1-2025		1,000,000		980,000
Sirius XM Radio Incorporated 144A		5.25			8-15-2022		7,000,000		7,140,000
Visant Corporation		10.00			10-1-2017		3,500,000		3,158,750
									73,301,875
Specialty Retail: 2.38%
Limited Brands Incorporated		5.63			2-15-2022		1,000,000		1,057,500
Limited Brands Incorporated		6.63			4-1-2021		6,500,000		7,328,750
Sally Beauty Holdings Incorporated		5.75			6-1-2022		1,000,000		1,056,250
Sally Beauty Holdings Incorporated		6.88			11-15-2019		5,500,000		6,132,500
Toys “R” Us Property Company II LLC		8.50			12-1-2017		5,000,000		5,262,500
									20,837,500
Textiles, Apparel & Luxury Goods: 2.09%
Hanesbrands Incorporated		6.38			12-15-2020		5,000,000		5,412,500
Jones Group Incorporated		6.88			3-15-2019		5,000,000		5,312,500
Levi Strauss & Company		6.88			5-1-2022		7,000,000		7,603,750
									18,328,750
Consumer Staples: 2.52%
Beverages: 0.48%
Constellation Brands Incorporated		7.25			9-1-2016		3,700,000		4,194,875
Food Products: 2.04%
Bumble Bee Acquisition Company 144A		9.00			12-15-2017		3,701,000		4,043,343
Del Monte Foods Company		7.63			2-15-2019		4,000,000		4,150,000
Fage USA Dairy Industry Incorporated 144A		9.88			2-1-2020		700,000		761,250
JBS USA Finance Incorporated 144A		8.25			2-1-2020		4,000,000		4,310,000
TreeHouse Foods Incorporated		7.75			3-1-2018		4,305,000		4,654,781
									17,919,374
Energy: 14.69%
Energy Equipment & Services: 2.46%
Basic Energy Services Company		7.75			10-15-2022		4,000,000		4,070,000
Energy Future Intermediate Holding Company LLC 144A		10.00			12-1-2020		4,000,000		4,510,000
Gulfmark Offshore Incorporated		6.38			3-15-2022		4,000,000		4,130,000
Hercules Offshore Incorporated 144A		7.13			4-1-2017		3,500,000		3,771,250
Key Energy Services Incorporated 144A		6.75			3-1-2021		5,000,000		5,075,000
									21,556,250

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

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage High Income Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Oil, Gas & Consumable Fuels: 12.23%
Arch Coal Incorporated «		7.25	%		6-15-2021	$	5,000,000	$	4,275,000
Atlas Pipeline Partners LP 144A		5.88			8-1-2023		5,000,000		4,975,000
Bill Barrett Corporation		7.63			10-1-2019		1,600,000		1,688,000
Bill Barrett Corporation		9.88			7-15-2016		5,000,000		5,375,000
BreitBurn Energy Partners LP		8.63			10-15-2020		4,000,000		4,400,000
Chesapeake Energy Corporation		6.63			8-15-2020		3,000,000		3,285,000
CITGO Petroleum Corporation 144A		11.50			7-1-2017		6,000,000		6,840,000
Comstock Resources Incorporated		9.50			6-15-2020		5,500,000		5,995,000
El Paso Corporation		6.50			9-15-2020		3,500,000		3,899,256
Energy Transfer Equity LP		7.50			10-15-2020		5,000,000		5,712,500
Energy XXI Gulf Coast Incorporated		7.75			6-15-2019		1,450,000		1,555,125
Energy XXI Gulf Coast Incorporated		9.25			12-15-2017		4,000,000		4,520,000
Halcon Resources Corporation 144A		8.88			5-15-2021		5,000,000		5,375,000
James River Coal Company		7.88			4-1-2019		5,000,000		2,512,500
Kodiak Oil & Gas Corp Company		8.13			12-1-2019		4,000,000		4,500,000
Newfield Exploration Company		6.88			2-1-2020		4,950,000		5,308,875
Oasis Petroleum Incorporated		6.88			1-15-2023		4,000,000		4,380,000
Peabody Energy Corporation		6.00			11-15-2018		1,000,000		1,062,500
Peabody Energy Corporation «		6.25			11-15-2021		5,000,000		5,200,000
Plains Exploration & Production Company		8.63			10-15-2019		4,600,000		5,255,500
Quicksilver Resources Incorporated		11.75			1-1-2016		2,000,000		2,010,000
Regency Energy Partners		6.88			12-1-2018		6,000,000		6,480,000
Rockies Express Pipeline LLC 144A		6.00			1-15-2019		1,000,000		980,000
Sandridge Energy Incorporated		7.50			2-15-2023		6,000,000		6,285,000
Targa Resources Partners Incorporated		6.38			8-1-2022		1,000,000		1,090,000
Targa Resources Partners Incorporated		6.88			2-1-2021		4,000,000		4,360,000
									107,319,256
Financials: 5.65%
Commercial Banks: 2.02%
CIT Group Incorporated		4.25			8-15-2017		1,000,000		1,035,000
CIT Group Incorporated		5.25			3-15-2018		5,000,000		5,375,000
CIT Group Incorporated		5.38			5-15-2020		3,000,000		3,270,000
CIT Group Incorporated 144A		6.63			4-1-2018		3,500,000		3,972,500
Regions Bank		7.50			5-15-2018		3,350,000		4,087,000
									17,739,500
Consumer Finance: 3.01%
Ally Financial Incorporated		5.50			2-15-2017		1,500,000		1,626,435
Ally Financial Incorporated		6.25			12-1-2017		2,000,000		2,233,794
Ally Financial Incorporated		8.00			3-15-2020		5,500,000		6,751,250
Discover Financial Services		5.20			4-27-2022		5,200,000		5,884,705
Ford Motor Credit Company LLC		5.00			5-15-2018		3,000,000		3,310,932
SLM Corporation		5.50			1-25-2023		2,000,000		1,993,260
SLM Corporation		8.00			3-25-2020		4,000,000		4,630,000
									26,430,376
Real Estate Management & Development: 0.62%
Ashtead Capital Incorporated 144A		6.50			7-15-2022		5,000,000		5,387,500

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

10 Wells Fargo Advantage High Income Fund Portfolio of investments—February 28, 2013 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Health Care: 7.40%
Health Care Equipment & Supplies: 0.49%
Hanger Orthopedic Group		7.13	%		11-15-2018	$	4,000,000	$	4,320,000
Health Care Providers & Services: 6.91%
Community Health Systems Incorporated		7.13			7-15-2020		2,000,000		2,155,000
Davita Incorporated		6.63			11-1-2020		4,000,000		4,360,000
Fresenius Medical Care Holdings Incorporated 144A		5.63			7-31-2019		2,500,000		2,706,250
Fresenius Medical Care Holdings Incorporated 144A		5.88			1-31-2022		2,500,000		2,743,750
Fresenius Medical Care Holdings Incorporated		6.88			7-15-2017		3,000,000		3,435,000
HCA Incorporated		4.75			5-1-2023		4,000,000		3,990,000
HCA Incorporated		5.88			3-15-2022		3,000,000		3,232,500
HCA Incorporated		5.88			5-1-2023		3,250,000		3,367,813
HCA Incorporated		7.25			9-15-2020		4,550,000		5,050,500
Health Management Association		7.38			1-15-2020		2,000,000		2,185,000
HealthSouth Corporation		8.13			2-15-2020		6,200,000		6,804,500
Iasis Healthcare Corporation		8.38			5-15-2019		5,000,000		5,150,000
Lifepoint Hospitals Incorporated		6.63			10-1-2020		3,750,000		4,082,813
Tenet Healthcare Corporation 144A		4.50			4-1-2021		1,000,000		986,250
Tenet Healthcare Corporation		6.25			11-1-2018		4,000,000		4,430,000
Vanguard Health Holdings Incorporated LLC		7.75			2-1-2019		3,000,000		3,213,750
Vanguard Health Holdings Incorporated LLC		8.00			2-1-2018		2,500,000		2,662,500
									60,555,626
Industrials: 11.03%
Aerospace & Defense: 1.23%
BE Aerospace Incorporated		5.25			4-1-2022		4,500,000		4,668,750
Digitalglobe Incorporated 144A		5.25			2-1-2021		1,000,000		992,500
Esterline Technologies Corporation		7.00			8-1-2020		3,750,000		4,125,000
Gencorp Incorporated 144A		7.13			3-15-2021		1,000,000		1,040,000
									10,826,250
Building Products: 2.01%
Griffon Corporation		7.13			4-1-2018		4,500,000		4,871,250
Masco Corporation		5.95			3-15-2022		6,000,000		6,683,820
Nortek Incorporated		8.50			4-15-2021		5,000,000		5,512,500
US Coatings Acquisition Incorporated 144A		7.38			5-1-2021		500,000		517,500
									17,585,070
Commercial Services & Supplies: 2.46%
ARAMARK Corporation 144A%%		5.75			3-15-2020		1,000,000		1,020,000
Clean Harbors Incorporated 144A		5.13			6-1-2021		2,000,000		2,030,000
Deluxe Corporation 144A		6.00			11-15-2020		1,000,000		1,017,500
Deluxe Corporation		7.00			3-15-2019		6,300,000		6,804,000
Iron Mountain Incorporated		5.75			8-15-2024		5,000,000		4,987,500
Swift Services Holdings Incorporated		10.00			11-15-2018		5,000,000		5,725,000
									21,584,000
Construction & Engineering: 0.49%
Great Lakes Dredge & Dock Company		7.38			2-1-2019		4,000,000		4,310,000

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

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage High Income Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Machinery: 2.32%
Briggs & Stratton Corporation		6.88	%		12-15-2020	$	2,970,000	$	3,356,100
Manitowoc Company Incorporated		5.88			10-15-2022		1,000,000		1,025,000
Manitowoc Company Incorporated		8.50			11-1-2020		4,000,000		4,515,000
RSC Equipment Rental Incorporated		8.25			2-1-2021		4,000,000		4,535,000
United Rentals North America Incorporated		8.38			9-15-2020		6,250,000		6,875,000
									20,306,100
Professional Services: 1.63%
Checkout Holdings Corporation 144A¤		0.00			11-15-2015		3,000,000		2,216,250
FTI Consulting Incorporated 144A		6.00			11-15-2022		1,000,000		1,032,500
FTI Consulting Incorporated		6.75			10-1-2020		5,900,000		6,268,750
West Corporation		7.88			1-15-2019		2,000,000		2,090,000
West Corporation		8.63			10-1-2018		2,500,000		2,662,500
									14,270,000
Trading Companies & Distributors: 0.89%
International Lease Finance Corporation		6.25			5-15-2019		1,000,000		1,095,365
International Lease Finance Corporation		8.25			12-15-2020		5,500,000		6,737,500
									7,832,865
Information Technology: 0.58%
Internet Software & Services: 0.53%
Equinix Incorporated %%		4.88			4-1-2020		1,850,000		1,850,000
Equinix Incorporated %%		5.38			4-1-2023		2,780,000		2,780,000
									4,630,000
IT Services: 0.05%
Neustar Incorporated 144A		4.50			1-15-2023		500,000		480,000
Materials: 4.68%
Chemicals: 0.77%
Axiall Corporation 144A		4.88			5-15-2023		2,250,000		2,283,750
Huntsman International LLC 144A%%		4.88			11-15-2020		2,000,000		1,970,000
Polyone Corporation		7.38			9-15-2020		2,250,000		2,491,875
									6,745,625
Containers & Packaging: 2.93%
Berry Plastics Corporation		9.75			1-15-2021		5,500,000		6,352,500
BWAY Corporation		10.00			6-15-2018		4,000,000		4,490,000
Crown Americas LLC 144A		4.50			1-15-2023		1,500,000		1,466,250
Reynolds Group Holdings		5.75			10-15-2020		7,000,000		7,227,500
Reynolds Group Holdings		8.25			2-15-2021		6,000,000		6,195,000
									25,731,250
Paper & Forest Products: 0.98%
Appleton Papers Incorporated		11.25			12-15-2015		1,634,000		1,783,103
Boise Paper Holdings LLC		9.00			11-1-2017		3,750,000		4,054,688
Resolute Forest Products Incorporated		10.25			10-15-2018		2,358,000		2,729,385
									8,567,176

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

12 Wells Fargo Advantage High Income Fund Portfolio of investments—February 28, 2013 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Telecommunication Services: 6.85%
Diversified Telecommunication Services: 4.06%
Cincinnati Bell Incorporated		8.38	%		10-15-2020	$	3,000,000	$	3,157,500
Cincinnati Bell Incorporated		8.75			3-15-2018		4,000,000		4,090,000
Frontier Communications Corporation		8.25			4-15-2017		4,000,000		4,570,000
Frontier Communications Corporation		8.75			4-15-2022		2,000,000		2,250,000
Intelsat Jackson Holdings Limited		8.50			11-1-2019		5,025,000		5,590,313
Level 3 Communications Incorporated		11.88			2-1-2019		4,000,000		4,620,000
Level 3 Financing Incorporated		8.63			7-15-2020		1,000,000		1,110,000
PAETEC Holding Corporation		9.88			12-1-2018		3,750,000		4,293,750
TW Telecommunications Holdings Incorporated		5.38			10-1-2022		2,000,000		2,085,000
TW Telecommunications Holdings Incorporated		8.00			3-1-2018		3,500,000		3,806,250
									35,572,813
Wireless Telecommunication Services: 2.79%
Cricket Communications Incorporated		7.75			10-15-2020		4,000,000		4,070,000
Crown Castle International Corporation 144A		5.25			1-15-2023		4,000,000		4,100,000
MetroPCS Communications Incorporated		6.63			11-15-2020		5,015,000		5,246,944
Sprint Capital Corporation		6.90			5-1-2019		4,600,000		5,002,500
Sprint Capital Corporation		8.75			3-15-2032		3,000,000		3,525,000
Sprint Nextel Corporation		6.00			11-15-2022		2,500,000		2,525,000
									24,469,444
Utilities: 2.52%
Independent Power Producers & Energy Traders: 2.52%
Calpine Corporation 144A		7.50			2-15-2021		3,600,000		3,915,000
Calpine Corporation 144A		7.88			1-15-2023		1,800,000		1,993,500
Mirant Americas Generation LLC		8.50			10-1-2021		5,200,000		6,110,000
NRG Energy Incorporated		8.25			9-1-2020		3,000,000		3,393,750
NRG Energy Incorporated		8.50			6-15-2019		4,000,000		4,450,000
RRI Energy Incorporated		7.88			6-15-2017		2,000,000		2,220,000
									22,082,250
Total Corporate Bonds and Notes (Cost $673,073,503)									711,919,523
Municipal Obligations: 0.56%
Florida: 0.56%
Florida Development Financial Corporation Renaissance Charter School Project Series 2011B (Resource Recovery Revenue)		8.00			12-15-2018		3,180,000		3,214,503
Florida Development Financial Corporation Renaissance Charter School Project Series 2012B (Resource Recovery Revenue)		7.50			6-15-2018		1,720,000		1,702,043
Total Municipal Obligations (Cost $4,900,000)									4,916,546
Term Loans: 0.69%
Chrysler Group LLC		6.00			5-24-2017		5,910,000		6,032,810
Total Term Loans (Cost $5,909,835)									6,032,810

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

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage High Income Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Yankee Corporate Bonds and Notes: 8.97%
Consumer Discretionary: 1.09%
Automobiles: 0.50%
Jaguar Land Rover plc 144A		5.63	%		2-1-2023	$	500,000	$	511,250
Jaguar Land Rover plc 144A		8.13			5-15-2021		3,500,000		3,893,750
									4,405,000
Media: 0.59%
Quebecor Media Incorporated 144A		5.75			1-15-2023		5,000,000		5,112,500
Energy: 0.58%
Oil, Gas & Consumable Fuels: 0.58%
Petrobakken Energy Limited 144A		8.63			2-1-2020		5,000,000		5,100,000
Financials: 1.28%
Consumer Finance: 0.69%
National Money Mart Company		10.38			12-15-2016		5,500,000		6,077,500
Diversified Financial Services: 0.59%
Aircastle Limited		9.75			8-1-2018		4,500,000		5,130,000
Industrials: 0.47%
Aerospace & Defense: 0.47%
Bombardier Incorporated 144A		6.13			1-15-2023		4,000,000		4,100,000
Information Technology: 1.59%
Electronic Equipment, Instruments & Components: 0.21%
Flextronics International Limited 144A		5.00			2-15-2023		1,850,000		1,859,250
Semiconductors & Semiconductor Equipment: 1.38%
Magnachip Semiconductor Limited		10.50			4-15-2018		5,175,000		5,796,000
NXP Funding LLC 144A		5.75			2-15-2021		2,000,000		2,045,000
Sensata Technologies BV 144A		6.50			5-15-2019		4,000,000		4,290,000
									12,131,000
Materials: 3.49%
Chemicals: 1.28%
Ineos Finance plc 144A		7.50			5-1-2020		1,000,000		1,077,500
Ineos Group Holdings plc 144A		8.38			2-15-2019		1,000,000		1,095,000
Ineos Group Holdings plc 144A		8.50			2-15-2016		4,490,000		4,562,963
LyondellBasell Industries NV		5.00			4-15-2019		4,000,000		4,460,000
									11,195,463
Metals & Mining: 1.74%
ArcelorMittal «		6.75			2-25-2022		10,000,000		11,014,070
Inmet Mining Corporation 144A		7.50			6-1-2021		4,000,000		4,260,000
									15,274,070

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

14 Wells Fargo Advantage High Income Fund Portfolio of investments—February 28, 2013 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Paper & Forest Products: 0.47%
Sappi Papier Holding GmbH 144A		6.63	%		4-15-2021	$	4,000,000	$	4,140,000
Telecommunication Services: 0.47%
Diversified Telecommunication Services: 0.47%
Intelsat Luxembourg SA		11.50			2-4-2017		3,916,796		4,166,492
Total Yankee Corporate Bonds and Notes (Cost $75,083,822)									78,691,275
	Yield					Shares
Short-Term Investments: 10.28%
Investment Companies: 10.28%
Wells Fargo Advantage Cash Investment Money Market Fund, Select Class (l)(u)##		0.13					70,136,770		70,136,770
Wells Fargo Securities Lending Cash Investments, LLC (l)(r)(u)(v)		0.18					19,995,119		19,995,119
Total Short-Term Investments (Cost $90,131,889)									90,131,889

Total investments in securities
(Cost $849,099,049) *	101.68	%		891,692,043
Other assets and liabilities, net	(1.68	)		(14,748,619	)
Total net assets	100.00	%	$	876,943,424

« 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.

%% Security issued on a when-issued basis.

¤ Security issued in zero coupon form with no periodic interest payments.

(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 Investment Company Act of 1940, as amended.

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

* Cost for federal income tax purposes is $849,726,079 and unrealized appreciation (depreciation) consists of:

Gross unrealized appreciation	$	48,429,177
Gross unrealized depreciation		(6,463,213	)
Net unrealized appreciation	$	41,965,964

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

Statement of assets and liabilities—February 28, 2013 (unaudited) Wells Fargo Advantage High Income Fund 15

Assets
Investments
In unaffiliated securities (including securities on loan), at value (see cost below)	$	801,560,154
In affiliated securities, at value (see cost below)		90,131,889
Total investments, at value (see cost below)		891,692,043
Receivable for investments sold		8,610,857
Receivable for Fund shares sold		2,298,442
Receivable for interest		14,273,694
Receivable for securities lending income		6,937
Prepaid expenses and other assets		77,779
Total assets		916,959,752
Liabilities
Dividends payable		1,117,415
Payable for investments purchased		16,365,135
Payable for Fund shares redeemed		1,978,210
Payable upon receipt of securities loaned		19,995,119
Advisory fee payable		259,032
Distribution fees payable		19,594
Due to other related parties		130,027
Accrued expenses and other liabilities		151,796
Total liabilities		40,016,328
Total net assets	$	876,943,424
NET ASSETS CONSIST OF
Paid-in capital	$	825,899,699
Overdistributed net investment income		(78,519	)
Accumulated net realized gains on investments		8,529,250
Net unrealized gains on investments		42,592,994
Total net assets	$	876,943,424
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE1
Net assets – Class A	$	117,695,832
Shares outstanding – Class A		15,158,400
Net asset value per share – Class A		$7.76
Maximum offering price per share – Class A2		$8.13
Net assets – Class B		$1,251,173
Shares outstanding – Class B		161,173
Net asset value per share – Class B		$7.76
Net assets – Class C	$	33,183,980
Shares outstanding – Class C		4,274,161
Net asset value per share – Class C		$7.76
Net assets – Administrator Class	$	45,971,057
Shares outstanding – Administrator Class		5,866,089
Net asset value per share – Administrator Class		$7.84
Net assets – Institutional Class	$	281,389,286
Shares outstanding – Institutional Class		35,916,306
Net asset value per share – Institutional Class		$7.83
Net assets – Investor Class	$	397,452,096
Shares outstanding – Investor Class		50,987,191
Net asset value per share – Investor Class		$7.80
Investment in unaffiliated securities (including securities on loan), at cost	$	758,967,160
Investments in affiliated securities, at cost	$	90,131,889
Total investments, at cost	$	849,099,049
Securities on loan, at value	$	19,592,541

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.

16 Wells Fargo Advantage High Income Fund Statement of operations—six months ended February 28, 2013 (unaudited)

Investment income
Interest*	$	27,173,141
Securities lending income, net		94,579
Income from affiliated securities		49,587
Total investment income		27,317,307
Expenses
Advisory fee		2,035,554
Administration fees
Fund level		207,852
Class A		93,635
Class B		1,065
Class C		25,274
Administrator Class		18,104
Institutional Class		117,703
Investor Class		333,427
Shareholder servicing fees
Class A		146,305
Class B		1,664
Class C		39,491
Administrator Class		40,628
Investor Class		427,205
Distribution fees
Class B		4,992
Class C		118,471
Custody and accounting fees		23,077
Professional fees		23,010
Registration fees		35,276
Shareholder report expenses		41,002
Trustees’ fees and expenses		4,959
Other fees and expenses		9,834
Total expenses		3,748,528
Less: Fee waivers and/or expense reimbursements		(437,699	)
Net expenses		3,310,829
Net investment income		24,006,478
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments		11,612,010
Net change in unrealized gains (losses) on investments		7,608,403
Net realized and unrealized gains (losses) on investments		19,220,413
Net increase in net assets resulting from operations	$	43,226,891
* Net of foreign interest withholding taxes in the amount of		$424

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

Statement of changes in net assets Wells Fargo Advantage High Income Fund 17

	Six months ended February 28, 2013 (unaudited)						Year ended August 31, 2012
Operations
Net investment income				$	24,006,478					$	48,777,015
Net realized gains on investments					11,612,010						6,054,227
Net change in unrealized gains (losses) on investments					7,608,403						41,709,230
Net increase in net assets resulting from operations					43,226,891						96,540,472
Distributions to shareholders from
Net investment income
Class A					(3,321,845	)					(7,308,596	)
Class B					(32,806	)					(103,156	)
Class C					(777,938	)					(1,747,148	)
Administrator Class					(1,045,825	)					(1,408,586	)
Institutional Class					(8,923,782	)					(19,201,611	)
Investor Class					(9,905,067	)					(18,948,092	)
Net realized gains
Class A					(630,804	)					0
Class B					(7,202	)					0
Class C					(173,756	)					0
Administrator Class					(184,150	)					0
Institutional Class					(1,630,359	)					0
Investor Class					(1,906,689	)					0
Total distributions to shareholders					(28,540,223	)					(48,717,189	)
		Shares						Shares
Capital share transactions
Proceeds from shares sold
Class A		2,547,358			19,737,572			7,966,274			58,205,657
Class B		25,458			196,986			57,111			417,796
Class C		480,995			3,721,842			691,906			5,077,221
Administrator Class		2,401,676			18,812,384			4,866,482			35,548,573
Institutional Class		5,029,188			39,240,602			15,805,630			116,689,068
Investor Class		17,792,719			138,271,383			24,075,415			177,225,852
					219,980,769						393,164,167
Reinvestment of distributions
Class A		491,842			3,800,830			859,319			6,344,473
Class B		4,879			37,686			10,601			77,997
Class C		118,420			915,053			199,449			1,471,907
Administrator Class		147,012			1,147,227			162,874			1,217,490
Institutional Class		487,833			3,803,151			879,150			6,537,072
Investor Class		1,328,740			10,312,965			2,151,447			15,924,964
					20,016,912						31,573,903
Payment for shares redeemed
Class A		(4,102,177	)		(31,748,066	)		(6,875,828	)		(50,479,476	)
Class B		(61,923	)		(479,113	)		(216,885	)		(1,578,665	)
Class C		(532,698	)		(4,119,770	)		(956,848	)		(7,020,037	)
Administrator Class		(1,020,969	)		(7,944,056	)		(2,715,961	)		(19,931,890	)
Institutional Class		(8,958,202	)		(69,859,292	)		(10,282,212	)		(76,885,041	)
Investor Class		(13,026,611	)		(100,918,379	)		(19,945,964	)		(145,965,420	)
					(215,068,676	)					(301,860,529	)
Net increase in net assets resulting from capital share transactions					24,929,005						122,877,541
Total increase in net assets					39,615,673						170,700,824
Net assets
Beginning of period					837,327,751						666,626,927
End of period				$	876,943,424					$	837,327,751
Overdistributed net investment income				$	(78,519	)				$	(77,734	)

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

18 Wells Fargo Advantage High Income Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2013 (unaudited)			Year ended August 31									Year ended May 31
CLASS A				2012			2011			20101			2010			20092			20082
Net asset value, beginning of period	$	7.63		$	7.17		$	7.14		$	6.90		$	6.35		$	7.25		$	7.89
Net investment income		0.21	3		0.46			0.50			0.13			0.53			0.50			0.53
Net realized and unrealized gains (losses) on investments		0.17			0.47			0.03			0.24			0.54			(0.90	)		(0.64	)
Total from investment operations		0.38			0.93			0.53			0.37			1.07			(0.40	)		(0.11	)
Distributions to shareholders from
Net investment income		(0.21	)		(0.47	)		(0.50	)		(0.13	)		(0.52	)		(0.50	)		(0.53	)
Net realized gains		(0.04	)		0.00			0.00			0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.25	)		(0.47	)		(0.50	)		(0.13	)		(0.52	)		(0.50	)		(0.53	)
Net asset value, end of period	$	7.76		$	7.63		$	7.17		$	7.14		$	6.90		$	6.35		$	7.25
Total return4		5.16	%		13.30	%		7.41	%		5.44	%		17.20	%		(5.07	)%		(1.40	)%
Ratios to average net assets (annualized)
Gross expenses		0.98	%		1.00	%		1.01	%		1.00	%		1.03	%		1.05	%		1.19	%
Net expenses		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.89	%		0.86	%
Net investment income		5.68	%		6.30	%		6.77	%		7.52	%		7.86	%		8.13	%		7.04	%
Supplemental data
Portfolio turnover rate		22	%		22	%		78	%		11	%		77	%		52	%		53	%
Net assets, end of period (000s omitted)		$117,696			$123,727			$102,361			$124,730			$99,515			$105,678			$10,471

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.

Financial highlights Wells Fargo Advantage High Income Fund 19

(For a share outstanding throughout each period)

	Six months ended February 28, 2013 (unaudited)			Year ended August 31									Year ended May 31
CLASS B				2012			2011			20101			2010			20092
Net asset value, beginning of period	$	7.63		$	7.17		$	7.13		$	6.90		$	6.35		$	6.99
Net investment income		0.19	3		0.41	3		0.45			0.12			0.48			0.39
Net realized and unrealized gains (losses) on investments		0.17			0.46			0.04			0.23			0.54			(0.64	)
Total from investment operations		0.36			0.87			0.49			0.35			1.02			(0.25	)
Distributions to shareholders from
Net investment income		(0.19	)		(0.41	)		(0.45	)		(0.12	)		(0.47	)		(0.39	)
Net realized gains		(0.04	)		0.00			0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.23	)		(0.41	)		(0.45	)		(0.12	)		(0.47	)		(0.39	)
Net asset value, end of period	$	7.76		$	7.63		$	7.17		$	7.13		$	6.90		$	6.35
Total return4		4.77	%		12.46	%		6.76	%		5.10	%		16.33	%		(3.11	)%
Ratios to average net assets (annualized)
Gross expenses		1.73	%		1.75	%		1.76	%		1.75	%		1.78	%		1.79	%
Net expenses		1.65	%		1.65	%		1.65	%		1.65	%		1.65	%		1.65	%
Net investment income		4.93	%		5.59	%		6.04	%		6.66	%		7.17	%		7.35	%
Supplemental data
Portfolio turnover rate		22	%		22	%		78	%		11	%		77	%		52	%
Net assets, end of period (000s omitted)		$1,251			$1,470			$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.

20 Wells Fargo Advantage High Income Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2013 (unaudited)			Year ended August 31									Year ended May 31
CLASS C				2012			2011			20101			2010			20092
Net asset value, beginning of period	$	7.63		$	7.17		$	7.14		$	6.90		$	6.35		$	6.99
Net investment income		0.19			0.41			0.45			0.12			0.48			0.39
Net realized and unrealized gains (losses) on investments		0.17			0.46			0.03			0.24			0.54			(0.64	)
Total from investment operations		0.36			0.87			0.48			0.36			1.02			(0.25	)
Distributions to shareholders from
Net investment income		(0.19	)		(0.41	)		(0.45	)		(0.12	)		(0.47	)		(0.39	)
Net realized gains		(0.04	)		0.00			0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.23	)		(0.41	)		(0.45	)		(0.12	)		(0.47	)		(0.39	)
Net asset value, end of period	$	7.76		$	7.63		$	7.17		$	7.14		$	6.90		$	6.35
Total return3		4.77	%		12.47	%		6.62	%		5.25	%		16.33	%		(3.12	)%
Ratios to average net assets (annualized)
Gross expenses		1.73	%		1.75	%		1.76	%		1.75	%		1.78	%		1.79	%
Net expenses		1.65	%		1.65	%		1.65	%		1.65	%		1.65	%		1.65	%
Net investment income		4.92	%		5.56	%		6.01	%		6.75	%		7.04	%		7.29	%
Supplemental data
Portfolio turnover rate		22	%		22	%		78	%		11	%		77	%		52	%
Net assets, end of period (000s omitted)		$33,184			$32,089			$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 21

(For a share outstanding throughout each period)

	Six months ended February 28, 2013 (unaudited)			Year ended August 31
ADMINISTRATOR CLASS				2012			2011			20101
Net asset value, beginning of period	$	7.70		$	7.24		$	7.20		$	7.23
Net investment income		0.22			0.48			0.51			0.04
Net realized and unrealized gains (losses) on investments		0.18			0.46			0.04			(0.02	)
Total from investment operations		0.40			0.94			0.55			0.02
Distributions to shareholders from
Net investment income		(0.22	)		(0.48	)		(0.51	)		(0.05	)
Net realized gains		(0.04	)		0.00			0.00			0.00
Total distributions to shareholders		(0.26	)		(0.48	)		(0.51	)		(0.05	)
Net asset value, end of period	$	7.84		$	7.70		$	7.24		$	7.20
Total return2		5.32	%		13.36	%		7.66	%		0.22	%
Ratios to average net assets (annualized)
Gross expenses		0.90	%		0.90	%		0.92	%		0.99	%
Net expenses		0.80	%		0.80	%		0.79	%		0.84	%
Net investment income		5.78	%		6.37	%		6.73	%		7.78	%
Supplemental data
Portfolio turnover rate		22	%		22	%		78	%		11	%
Net assets, end of period (000s omitted)		$45,971			$33,395			$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.

22 Wells Fargo Advantage High Income Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2013 (unaudited)			Year ended August 31									Year ended May 31
INSTITUTIONAL CLASS				2012			2011			20101			2010			2009			2008
Net asset value, beginning of period	$	7.70		$	7.24		$	7.20		$	6.96		$	6.40		$	7.31		$	7.96
Net investment income		0.23			0.50			0.54			0.14			0.57			0.53			0.56
Net realized and unrealized gains (losses) on investments		0.17			0.46			0.04			0.24			0.54			(0.91	)		(0.65	)
Total from investment operations		0.40			0.96			0.58			0.38			1.11			(0.38	)		(0.09	)
Distributions to shareholders from
Net investment income		(0.23	)		(0.50	)		(0.54	)		(0.14	)		(0.55	)		(0.53	)		(0.56	)
Net realized gains		(0.04	)		0.00			0.00			0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.27	)		(0.50	)		(0.54	)		(0.14	)		(0.55	)		(0.53	)		(0.56	)
Net asset value, end of period	$	7.83		$	7.70		$	7.24		$	7.20		$	6.96		$	6.40		$	7.31
Total return2		5.35	%		13.69	%		7.98	%		5.52	%		17.76	%		(4.75	)%		(1.06	)%
Ratios to average net assets (annualized)
Gross expenses		0.65	%		0.67	%		0.68	%		0.67	%		0.68	%		0.70	%		0.80	%
Net expenses		0.50	%		0.50	%		0.50	%		0.50	%		0.50	%		0.50	%		0.48	%
Net investment income		6.07	%		6.69	%		7.15	%		7.94	%		8.18	%		8.42	%		8.15	%
Supplemental data
Portfolio turnover rate		22	%		22	%		78	%		11	%		77	%		52	%		53	%
Net assets, end of period (000s omitted)		$281,389			$302,894			$238,490			$197,158			$189,936			$119,004			$90,200

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 23

(For a share outstanding throughout each period)

	Six months ended February 28, 2013 (unaudited)			Year ended August 31									Year ended May 31
INVESTOR CLASS				2012			2011			20101			2010			2009			2008
Net asset value, beginning of period	$	7.66		$	7.20		$	7.16		$	6.93		$	6.37		$	7.28		$	7.92
Net investment income		0.21			0.47			0.50			0.13			0.53			0.50			0.53
Net realized and unrealized gains (losses) on investments		0.18			0.46			0.04			0.23			0.55			(0.91	)		(0.64	)
Total from investment operations		0.39			0.93			0.54			0.36			1.08			(0.41	)		(0.11	)
Distributions to shareholders from
Net investment income		(0.21	)		(0.47	)		(0.50	)		(0.13	)		(0.52	)		(0.50	)		(0.53	)
Net realized gains		(0.04	)		0.00			0.00			0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.25	)		(0.47	)		(0.50	)		(0.13	)		(0.52	)		(0.50	)		(0.53	)
Net asset value, end of period	$	7.80		$	7.66		$	7.20		$	7.16		$	6.93		$	6.37		$	7.28
Total return2		5.27	%		13.24	%		7.53	%		5.27	%		17.28	%		(5.20	)%		(1.35	)%
Ratios to average net assets (annualized)
Gross expenses		1.01	%		1.03	%		1.04	%		1.04	%		1.07	%		1.10	%		1.33	%
Net expenses		0.93	%		0.93	%		0.93	%		0.94	%		0.95	%		0.92	%		0.86	%
Net investment income		5.64	%		6.27	%		6.73	%		7.49	%		7.76	%		7.95	%		7.08	%
Supplemental data
Portfolio turnover rate		22	%		22	%		78	%		11	%		77	%		52	%		53	%
Net assets, end of period (000s omitted)		$397,452			$343,752			$278,024			$322,015			$286,836			$231,308			$179,909

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.

24 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

All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (normally 4 p.m. Eastern Time).

Fixed income securities acquired with maturities exceeding 60 days are valued based on evaluated bid prices received from an independent pricing service 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 independent pricing service or values received are deemed not representative of market value, values will be obtained from a broker-dealer or otherwise determined based on the Fund’s Valuation Procedures.

Debt securities of sufficient credit quality acquired with 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 registered open-end investment companies are valued at net asset value. Non-registered investment companies are fair 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. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Management Valuation Team of Wells Fargo Funds Management, LLC (“Funds Management”). The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Management Valuation Team which may include items for ratification.

Valuations of fair valued securities are compared to the next actual sales price when available, or other appropriate market information to assess the continued appropriateness of the fair valuation methodology used. These securities are fair valued on a day-to-day basis, taking into consideration changes to appropriate market information and any significant changes to the input factors considered in the valuation process until there is a readily available price provided on the exchange or by an independent pricing service. Valuations received from an independent pricing service or broker quotes are periodically validated by comparisons to most recent trades and valuations provided by other independent pricing services in addition to the review of prices by the adviser and/or subadviser. Unobservable inputs used in determining fair valuations are identified based on the type of security, taking into consideration factors utilized by market participants in valuing the investment, knowledge about the issuer and the current market environment.

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

Notes to financial statements (unaudited) Wells Fargo Advantage High Income Fund 25

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 Funds Management and is subadvised by Wells Capital Management Incorporated (“WellsCap”). 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 WellsCap for its services as subadviser. 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 in an amount at least equal in value to the Fund’s commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.

Term loans

The Fund may invest in term loans. 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 recorded on the basis of identified cost.

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.

Income is recorded net of foreign taxes withheld where recovery of such taxes is not assured.

Distributions to shareholders

Distributions to shareholders from net investment income are accrued daily and paid monthly. Distributions from net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in conformity with federal income tax regulations, which may differ in amount or character from net investment income and realized gains recognized for purposes of U.S. generally accepted accounting principles.

Federal and other taxes

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

The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

26 Wells Fargo Advantage High Income Fund Notes to financial statements (unaudited)

As of August 31, 2012, the Fund had pre-enactment capital loss carryforwards incurred in taxable years beginning before December 22, 2010, which were available to offset future net realized capital gains, in the amount of $2,454,996 with $409,343 expiring in 2015; $1,995,851 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 any 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, use of amortized cost, etc.)

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

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

As of February 28, 2013, the inputs used in valuing investments in securities, 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	$	711,919,523	$	0	$	711,919,523
Municipal obligations		0		4,916,546		0		4,916,546
Term loans		0		6,032,810		0		6,032,810
Yankee corporate bonds and notes		0		78,691,275		0		78,691,275
Short-term investments
Investment companies		70,136,770		19,995,119		0		90,131,889
	$	70,136,770	$	821,555,273	$	0	$	891,692,043

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 28, 2013, the Fund did not have any transfers into/out of Level 1 or Level 2.

Notes to financial statements (unaudited) Wells Fargo Advantage High Income Fund 27

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 subadviser, 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 28, 2013, 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 a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. WellsCap, an affiliate of Funds Management, is the subadviser 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 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, 2013 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.90% for Class A shares, 1.65% for Class B shares, 1.65% for Class C shares, 0.80% for Administrator Class shares, 0.50% for Institutional Class shares, and 0.93% for Investor Class shares.

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 28, 2013, Wells Fargo Funds Distributor, LLC received $11,996 from the sale of Class A shares and $170 and $167 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, for the six months ended February 28, 2013 were $227,525,400 and $173,595,908, respectively.

28 Wells Fargo Advantage High Income Fund Notes to financial statements (unaudited)

6. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds in the Trust) 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. For the six months ended February 28, 2013, the Fund paid $904 in commitment fees.

For the six months ended February 28, 2013, 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 PRONOUNCEMENT

In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2011-11, Disclosures about Offsetting Assets and Liabilities. ASU 2011-11, which amends FASB ASC Topic 210, Balance Sheet, creates new disclosure requirements which require entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently assessing the potential impact, in addition to expanded financial statement disclosure, that may result from adopting this ASU.

Other information (unaudited) Wells Fargo Advantage High Income Fund 29

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

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available on the Fund’s website (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 website 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 website at sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at 233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

30 Wells Fargo Advantage High Income Fund Other information (unaudited)

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers listed in the table below acts in identical capacities for the Wells Fargo Advantage family of funds, which consists of 135 funds¹ comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information². 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	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. Advisory Board Member, Palm Coast Academy (charter school). Mr. Harris is a certified public accountant.	CIGNA Corporation; Deluxe Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, 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 48 portfolios as of 1/31/2013); 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, Morgan Stanley Director of the Center for Leadership Development and Research 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
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

Other information (unaudited) Wells Fargo Advantage High Income Fund 31

Name and year of birth	Position held and length of service*	Principal occupations during past five years	Other directorships during past five years
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.	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 Tree Trust (non-profit corporation). Director of the American Chestnut Foundation (non-profit corporation).	Asset Allocation Trust

* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.

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.
Nancy Wiser1 (Born 1967)	Treasurer, since 2012	Executive Vice President of Wells Fargo Funds Management, LLC since 2011. Chief Operating Officer and Chief Compliance Officer at LightBox Capital Management LLC, from 2008 to 2011. Owned and operated a consulting business providing services to various hedge funds including acting as Chief Operating Officer and Chief Compliance Officer for a hedge fund from 2007 to 2008. Chief Operating Officer and Chief Compliance Officer of GMN Capital LLC from 2006 to 2007.
C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Officer, since 2003	Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001. Vice President and Managing Counsel of Wells Fargo Bank, N.A. since 1996.
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.
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 DePalma1 (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.

1. Nancy Wiser acts as Treasurer of 74 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 61 funds and Assistant Treasurer of 74 funds in the Fund Complex.

2. 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 website at wellsfargoadvantagefunds.com.

32 Wells Fargo Advantage High Income Fund List of abbreviations

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian 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

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

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

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 depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Industrial development revenue

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

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

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

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

SPA —  Standby purchase agreement

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

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

This page is intentionally left blank.

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, email, visit the Fund’s website, or call:

Wells Fargo Advantage Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: wfaf@wellsfargo.com

Website: 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 current prospectus and, if available, a summary prospectus containing more complete information, including charges and expenses, call 1-800-222-8222 or visit the Fund’s website 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

© 2013 Wells Fargo Funds Management, LLC. All rights reserved.

215346 04-13 SA217/SAR217 2-13

Wells Fargo Advantage

High Yield Bond Fund

Semi-Annual Report

February 28, 2013

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	4
Fund expenses	6
Portfolio of investments	7
Financial statements
Statement of assets and liabilities	12
Statement of operations	13
Statement of changes in net assets	14
Financial highlights	15
Notes to financial statements	19
Other information	24
List of abbreviations	27

The views expressed and any forward-looking statements are as of February 28, 2013, 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 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 the 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 the investment objectives, risks, charges, and expenses before investing. For a current prospectus and, if available, a summary prospectus, for Wells Fargo Advantage Funds, 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, 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 $225 billion in assets under management, as of February 28, 2013.

Equity funds
Asia Pacific Fund	Enterprise Fund†	Opportunity Fund†
C&B Large Cap Value Fund	Global Opportunities Fund	Precious Metals Fund
C&B Mid Cap Value Fund	Growth Fund	Premier Large Company Growth Fund
Capital Growth Fund	Index Fund	Small Cap Opportunities Fund
Common Stock Fund	International Equity Fund	Small Cap Value Fund
Disciplined U.S. Core Fund	International Value Fund	Small Company Growth Fund
Discovery Fund†	Intrinsic Small Cap Value Fund	Small Company Value Fund
Diversified Equity Fund	Intrinsic Value Fund	Small/Mid Cap Value Fund
Diversified International Fund	Intrinsic World Equity Fund	Special Mid Cap Value Fund
Emerging Growth Fund	Large Cap Core Fund	Special Small Cap Value Fund
Emerging Markets Equity Fund	Large Cap Growth Fund	Specialized Technology Fund
Emerging Markets Equity Income Fund	Large Company Value Fund	Traditional Small Cap Growth Fund
Endeavor Select Fund†	Omega Growth Fund	Utility and Telecommunications Fund
Bond funds
Adjustable Rate Government Fund	High Yield Municipal Bond Fund	Short Duration Government Bond Fund
California Limited-Term Tax-Free Fund	Income Plus Fund	Short-Term Bond Fund
California Tax-Free Fund	Inflation-Protected Bond Fund	Short-Term High Yield Bond Fund
Colorado Tax-Free Fund	Intermediate Tax/AMT-Free Fund	Short-Term Municipal Bond Fund
Core Bond Fund	International Bond Fund	Strategic Income Fund
Emerging Markets Local Bond Fund	Minnesota Tax-Free Fund	Strategic Municipal Bond Fund
Government Securities Fund	Municipal Bond Fund	Ultra Short-Term Income Fund
High Income Fund	North Carolina Tax-Free Fund	Ultra Short-Term Municipal Income Fund
High Yield Bond Fund	Pennsylvania Tax-Free 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	Treasury Plus Money Market Fund
Cash Investment Money Market Fund	Municipal Cash Management 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 (unaudited)

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Fixed-income performance was best among lower-rated corporate bonds and commercial mortgage-backed securities, as continued monetary accommodation from the U.S. Federal Reserve strengthened the demand for securities with higher yields.

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 28, 2013. During the period, fixed-income performance was best among lower-rated corporate bonds and commercial mortgage-backed securities (CMBS), as continued monetary accommodation from the U.S. Federal Reserve (Fed) strengthened the demand for securities with higher yields. However, the longest-maturity segments of the fixed-income market generally underperformed the mid-maturity and short-maturity segments because longer-maturity U.S. Treasury yields shifted higher, most notably in January 2013, thereby influencing a decline in the prices of longer-maturity fixed-income securities.

Credit sectors rallied for much of the second half of 2012, outperforming U.S. Treasuries.

As policymaking in Europe during the summer months of 2012 began to reassure global credit markets that the euro would likely survive and that all appropriate measures would be taken to bolster European debt markets, lower-rated securities in the U.S. once again rallied in price, significantly outpacing the returns from U.S. Treasuries. Corporate bonds and CMBS were once again the best-performing sectors of the core fixed income markets from August 2012 through the end of the year, as they had been before the European credit crisis escalated in the spring.

In December 2012, the Fed reaffirmed its commitment to highly accommodative monetary policy, citing its dual mandate of fostering maximum employment and price stability. For the first time since the financial crisis began in 2008, the Fed formally announced specific target ranges that could trigger a change to its highly accommodative monetary policy, most notably that exceptionally low interest rates would be appropriate at least as long as the unemployment rate remained above 6.5% and inflation expectations were no more than half a percentage point above its 2.0% inflation target. These thresholds were the first official measures of when and how a change to monetary policy may take effect.

U.S. Treasury yields shift significantly higher in January 2013.

With growing confidence in the U.S. economy and improving stability in the European credit markets, longer-maturity U.S. Treasury yields began to shift significantly higher in January 2013. The yield on the 10-year U.S. Treasury note ratcheted higher to 2.00% in January 2013, after finishing 2012 at 1.75% and reaching a modern-era record low of 1.41% in late July 2012. The 30-year U.S. Treasury bond finished the period at a yield of 3.09%, up from 2.58% at the start of the period. Thus, during the period, longer-maturity securities felt the pressure of yields shifting higher, which eroded some of their pricing. The best-performing sections of the yield curve were generally in the five- to 10-year range, which benefited from relatively adequate yields while remaining mostly insulated from the price erosion in maturities of 10 years and longer.

Despite this persistent trend toward higher yields during the final three months of the period, which chipped away at some security prices, several areas of the taxable fixed income markets continued to generate relatively compelling returns, considering the extraordinarily low level of interest rates. Spreads in the corporate bond sector continued to tighten while U.S. Treasury yields shifted higher, thus providing some protection against price erosion. CMBS spreads also tightened during the period resulting in some of the strongest six-month returns in the taxable investment-grade sectors. Within the Barclays U.S. Aggregate Bond Index¹, the CMBS sector returned 2.35% during the six-month period, the corporate sector returned 1.64%, and the U.S. Treasury sector returned (0.67)%. The lower-rated

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

Letter to shareholders (unaudited) Wells Fargo Advantage High Yield Bond Fund 3

credit tiers continued to outperform each respectively higher credit tier during the period, despite the rising yield influence in the longest maturities.

Overall, the theme for the six-month period in the U.S. fixed income markets was relatively strong performance from the corporate and CMBS sectors, particularly in the

lower-rated credit tiers, with a protracted decline in prices of U.S. Treasuries. On the whole, most credit-related sectors generated relatively generous returns during the six-month period considering the extraordinarily low level of interest rates. However, the trend from previous periods of strong performance from longer-maturity securities began to unwind in January and February 2013. During this period, credit risks were rewarded better than interest rate risks, meaning that higher-yield compensation from lower-rated securities performed better than higher-yield compensation from longer-maturity securities, which experienced price pressures. Investment strategies that focused on mid- to lower-rated credit tiers and mid-maturity securities generally saw the strongest returns during the period.

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.

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 website 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

At its November 6-7, 2012 meeting, the Board of Trustees unanimously approved the following modifications to certain Class A sales load waiver privileges, with each change becoming effective on July 1, 2013:

n Annuity payments received under an annuity option or from death proceeds will no longer qualify for net asset value (NAV) repurchase privileges.

n The ability to reinvest redemption proceeds at NAV will be reduced from 120 days to 90 days.

n NAV purchase privileges for certain types of “grandfathered” shareholders will be modified to remove the ability to purchase Class A shares at NAV, unless those shares are held directly with the Fund.

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

4 Wells Fargo Advantage High Yield Bond Fund Performance highlights (unaudited)

Investment objective

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

Adviser

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio manager

Margaret D. Patel

Average annual total returns¹ (%) as of February 28, 2013

		Including sales charge						Excluding sales charge						Expense ratios2 (%)
	Inception date	1 year		5 year		10 year		1 year		5 year		10 year		Gross		Net3
Class A (EKHAX)	1-20-1998		5.73		8.60		7.78		10.80		9.58		8.28		1.03		1.03
Class B (EKHBX)*	9-11-1935		4.98		8.48		7.74		9.98		8.76		7.74		1.78		1.78
Class C (EKHCX)	1-21-1998		8.98		8.76		7.50		9.98		8.76		7.50		1.78		1.78
Administrator Class (EKHYX)	4-14-1998		–		–		–		11.05		9.83		8.56		0.97		0.81
BofA Merrill Lynch U.S. High Yield Master II Constrained Index4	–		–		–		–		11.81		11.13		10.11		–		–

* 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 website, 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 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 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 (for example, risk of issuer default), below-investment-grade bond risk (for example, risk of greater volatility in value), and risk that the loan may become illiquid or difficult to price. Consult the Fund’s prospectus for additional information on these and other risks.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Advantage High Yield Bond Fund 5

Ten largest long-term holdings5 (%) as of February 28, 2013
HDTFS Incorporated, 6.25%, 10-15-2022	5.96
NRG Energy Incorporated, 6.63%, 3-15-2023	4.85
Iron Mountain Incorporated, 5.75%, 8-15-2024	4.79
Tronox Finance LLC, 6.38%, 8-15-2020	4.65
Olin Corporation, 5.50%, 8-15-2022	4.21
General Cable Corporation, 5.75%, 10-1-2022	4.11
Fresenius Medical Care Holdings Incorporated, 5.88%, 1-31-2022	4.03
Seagate Technology HDD Holdings, 7.00%, 11-1-2021	3.94
Bristow Group Incorporated, 6.25%, 10-15-2022	3.80
DaVita HealthCare Partners Incorporated, 5.75%, 8-15-2022	3.80

Credit quality⁶ as of February 28, 2013

1. 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.

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

3. The Adviser has committed through December 31, 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. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the cap. Without this cap, the Fund’s returns would have been lower.

4. 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.

5. 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.

6. 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). Moody’s rates the creditworthiness of short-term securities from P-1 (highest) to P-3 (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 long-term investments of the Fund. We generally define higher-quality (investment grade) bonds as bonds having a rating above BBB/Baa and lower-quality bonds as bonds having a rating below BBB/Baa.

6 Wells Fargo Advantage High Yield Bond Fund Fund expenses (unaudited)

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, 2012 to February 28, 2013.

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 9-1-2012		Ending account value 2-28-2013		Expenses paid during the period1		Net annual expense ratio
Class A
Actual	$	1,000.00	$	1,056.55	$	5.25		1.03	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.69	$	5.16		1.03	%
Class B
Actual	$	1,000.00	$	1,052.65	$	9.06		1.78	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.97	$	8.90		1.78	%
Class C
Actual	$	1,000.00	$	1,052.65	$	9.06		1.78	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.97	$	8.90		1.78	%
Administrator Class
Actual	$	1,000.00	$	1,057.72	$	4.08		0.80	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.83	$	4.01		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).

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage High Yield Bond Fund 7

Security name						Shares		Value
Common Stocks: 5.47%
Consumer Discretionary: 0.36%
Distributors: 0.36%
Genuine Parts Company «							20,000	$	1,420,600
Hotels, Restaurants & Leisure: 0.00%
Trump Entertainment Resorts Incorporated †							1,840		1,840
Energy: 2.13%
Oil, Gas & Consumable Fuels: 2.13%
ConocoPhillips Company							40,000		2,318,000
Kinder Morgan Incorporated							50,000		1,853,500
Phillips 66							40,000		2,518,400
The Williams Companies Incorporated							50,000		1,735,500
									8,425,400
Financials: 1.66%
REITs: 1.66%
HCP Incorporated							45,000		2,199,600
Health Care REIT Incorporated «							30,000		1,924,200
Plum Creek Timber Company «							50,000		2,425,000
									6,548,800
Health Care: 0.73%
Pharmaceuticals: 0.73%
Eli Lilly & Company							45,000		2,459,700
Merck & Company Incorporated							10,000		427,300
									2,887,000
Materials: 0.59%
Chemicals: 0.59%
LyondellBasell Industries Class A							40,000		2,344,800
Total Common Stocks (Cost $19,696,556)									21,628,440
	Interest rate			Maturity date		Principal
Corporate Bonds and Notes: 87.54%
Consumer Discretionary: 7.71%
Auto Components: 5.27%
Allison Transmission Incorporated 144A		7.13	%		5-15-2019	$	2,250,000		2,396,250
American Axle Manufacturing Incorporated «		6.63			10-15-2022		2,250,000		2,300,625
Cooper Tire & Rubber Company		7.63			3-15-2027		1,935,000		2,022,075
Lear Corporation 144A		4.75			1-15-2023		3,000,000		2,925,000
Penske Automotive Group Incorporated 144A		5.75			10-1-2022		10,702,000		11,196,968
									20,840,918

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

8 Wells Fargo Advantage High Yield Bond Fund Portfolio of investments—February 28, 2013 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Diversified Consumer Services: 0.86%
Service Corporation International		7.50	%		4-1-2027	$	3,080,000	$	3,399,550
Hotels, Restaurants & Leisure: 0.48%
Speedway Motorsports Incorporated 144A		6.75			2-1-2019		1,200,000		1,279,500
Speedway Motorsports Incorporated		6.75			2-1-2019		575,000		613,094
									1,892,594
Media: 1.10%
DISH DBS Corporation 144A		5.00			3-15-2023		3,000,000		2,977,500
Local TV Finance LLC 144A		9.25			6-15-2015		1,350,000		1,360,125
									4,337,625
Energy: 11.83%
Energy Equipment & Services: 2.82%
Dresser-Rand Group Incorporated		6.50			5-1-2021		1,225,000		1,298,500
Gulfmark Offshore Incorporated		6.38			3-15-2022		1,635,000		1,688,138
NGPL PipeCo LLC 144A		9.63			6-1-2019		1,950,000		2,262,000
Oil States International Incorporated		6.50			6-1-2019		1,900,000		2,033,000
PHI Incorporated		8.63			10-15-2018		3,550,000		3,860,625
									11,142,263
Oil, Gas & Consumable Fuels: 9.01%
Atlas Pipeline Partners LP 144A		5.88			8-1-2023		5,250,000		5,223,750
Denbury Resources Incorporated		4.63			7-15-2023		2,000,000		1,962,500
El Paso Corporation		7.42			2-15-2037		760,000		787,225
Energy Transfer Equity LP		7.50			10-15-2020		3,475,000		3,970,188
QEP Resources Incorporated		5.25			5-1-2023		2,000,000		2,070,000
Sabine Pass Liquefaction LLC 144A		5.63			2-1-2021		7,000,000		7,227,500
Sabine Pass LNG LP		7.50			11-30-2016		6,750,000		7,458,750
Suburban Propane Partners LP		7.38			3-15-2020		2,550,000		2,741,250
Tesoro Logistics Corporation 144A		5.88			10-1-2020		4,000,000		4,170,000
									35,611,163
Financials: 0.51%
REITs: 0.51%
Sabra Health Care Incorporated		8.13			11-1-2018		1,875,000		2,025,000
Health Care: 18.52%
Health Care Equipment & Supplies: 3.22%
Hologic Incorporated 144A		6.25			8-1-2020		12,062,000		12,725,410
Health Care Providers & Services: 8.60%
Aviv HealthCare Properties LP		7.75			2-15-2019		1,150,000		1,233,375
DaVita HealthCare Partners Incorporated		5.75			8-15-2022		14,425,000		15,038,063
Fresenius Medical Care Holdings Incorporated 144A		5.88			1-31-2022		14,529,000		15,945,578
MPT Operating Partnership LP		6.88			5-1-2021		1,625,000		1,752,969
									33,969,985

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

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage High Yield Bond Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Pharmaceuticals: 6.70%
Valeant Pharmaceuticals International Incorporated 144A		6.38	%		10-15-2020	$	1,000,000	$	1,076,250
Valeant Pharmaceuticals International Incorporated 144A		7.25			7-15-2022		12,000,000		13,245,000
Warner Chilcott Company LLC		7.75			9-15-2018		11,267,000		12,168,360
									26,489,610
Industrials: 20.28%
Air Freight & Logistics: 3.80%
Bristow Group Incorporated		6.25			10-15-2022		13,990,000		15,039,250
Commercial Services & Supplies: 4.80%
Iron Mountain Incorporated		5.75			8-15-2024		19,000,000		18,952,500
Electrical Equipment: 4.85%
Belden Incorporated 144A		5.50			9-1-2022		2,850,000		2,921,250
General Cable Corporation 144A		5.75			10-1-2022		15,850,000		16,246,250
									19,167,500
Machinery: 0.25%
Columbus McKinnon Corporation		7.88			2-1-2019		525,000		565,688
Titan International Incorporated		7.88			10-1-2017		400,000		429,000
									994,688
Marine: 0.62%
Hornbeck Offshore Services Incorporated		1.63			11-15-2026		975,000		1,027,455
Hornbeck Offshore Services Incorporated		5.88			4-1-2020		1,350,000		1,417,500
									2,444,955
Road & Rail: 5.96%
HDTFS Incorporated 144A		6.25			10-15-2022		21,921,000		23,565,075
Information Technology: 1.21%
IT Services: 1.21%
Neustar Incorporated 144A		4.50			1-15-2023		5,000,000		4,800,000
Materials: 16.37%
Chemicals: 10.17%
Celanese U.S. Holdings LLC		4.63			11-15-2022		2,000,000		2,007,500
Huntsman International LLC 144A		4.88			11-15-2020		1,000,000		985,000
Kraton Polymers LLC		6.75			3-1-2019		2,105,000		2,189,200
Olin Corporation		5.50			8-15-2022		16,000,000		16,640,000
Tronox Finance LLC 144A		6.38			8-15-2020		18,500,000		18,384,375
									40,206,075
Containers & Packaging: 4.98%
Ball Corporation		5.00			3-15-2022		7,995,000		8,334,788
Owens-Brockway Glass Container Incorporated		3.00			6-1-2015		1,775,000		1,780,547
Sealed Air Corporation 144A«		6.50			12-1-2020		7,135,000		7,759,313
Silgan Holdings Incorporated		5.00			4-1-2020		1,750,000		1,802,500
									19,677,148

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

10 Wells Fargo Advantage High Yield Bond Fund Portfolio of investments—February 28, 2013 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Paper & Forest Products: 1.22%
P.H. Glatfelter Company		5.38	%		10-15-2020	$	4,630,000	$	4,838,350
Telecommunication Services: 4.51%
Diversified Telecommunication Services: 1.40%
Dycom Investments Incorporated 144A		7.13			1-15-2021		2,000,000		2,105,000
GCI Incorporated		8.63			11-15-2019		3,235,000		3,421,013
									5,526,013
Wireless Telecommunication Services: 3.11%
Crown Castle International Corporation 144A		5.25	%		1-15-2023		2,000,000		2,050,000
MetroPCS Communications Incorporated		6.63			11-15-2020		1,575,000		1,647,844
SBA Telecommunications Incorporated 144A		5.63			10-1-2019		6,700,000		6,901,000
SBA Telecommunications Incorporated 144A		5.75			7-15-2020		1,625,000		1,690,000
									12,288,844
Utilities: 6.60%
Electric Utilities: 1.19%
DPL Incorporated		7.25			10-15-2021		4,375,000		4,692,188
Gas Utilities: 0.43%
AmeriGas Finance LLC		6.75			5-20-2020		1,600,000		1,724,000
Independent Power Producers & Energy Traders: 4.98%
NRG Energy Incorporated 144A		6.63			3-15-2023		18,000,000		19,170,000
Reliant Energy Incorporated		9.68			7-2-2026		460,000		501,400
									19,671,400
Total Corporate Bonds and Notes (Cost $336,930,187)									346,022,104
Yankee Corporate Bonds and Notes: 5.20%
Consumer Discretionary: 0.55%
Leisure Equipment & Products: 0.55%
VPI Escrow Corporation 144A		6.38			10-15-2020		2,000,000		2,152,500
Financials: 0.00%
Diversified Financial Services: 0.00%
Preferred Term Securities XII Limited (s)(i)		0.00			12-24-2033		720,000		7
Information Technology: 3.94%
Computers & Peripherals: 3.94%
Seagate Technology HDD Holdings		7.00			11-1-2021		14,350,000		15,569,750
Telecommunication Services: 0.71%
Diversified Telecommunication Services: 0.71%
Intelsat Jackson Holdings SA		7.25			10-15-2020		2,625,000		2,815,307
Total Yankee Corporate Bonds and Notes (Cost $20,389,276)									20,537,564

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

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage High Yield Bond Fund 11

Security name	Yield			Shares		Value
Short-Term Investments: 3.03%
Investment Companies: 3.03%
Wells Fargo Advantage Cash Investment Money Market Fund, Select Class (l)(u)		0.13	%		4,306,146	$	4,306,146
Wells Fargo Securities Lending Cash Investments, LLC (r)(v)(l)(u)		0.18			7,687,344		7,687,344
Total Short-Term Investments (Cost $11,993,490)							11,993,490

Total investments in securities (Cost $389,009,509) *	101.24	%		400,181,598
Other assets and liabilities, net	(1.24	)		(4,912,840	)
Total net assets	100.00	%	$	395,268,758

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

† 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 .

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

(i) Illiquid security

(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 Investment Company Act of 1940, as amended.

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

* Cost for federal income tax purposes is $389,017,223 and unrealized appreciation (depreciation) consists of:

Gross unrealized appreciation	$	13,379,172
Gross unrealized depreciation		(2,214,797	)
Net unrealized appreciation	$	11,164,375

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

12 Wells Fargo Advantage High Yield Bond Fund Statement of assets and liabilities—February 28, 2013 (unaudited)

Assets
Investments
In unaffiliated securities (including securities on loan), at value (see cost below)	$	388,188,108
In affiliated securities, at value (see cost below)		11,993,490
Total investments, at value (see cost below)		400,181,598
Foreign currency, at value (see cost below)		45
Receivable for Fund shares sold		43,849
Receivable for interest		5,782,110
Receivable for securities lending income		2,283
Prepaid expenses and other assets		148,215
Total assets		406,158,100
Liabilities
Dividends payable		208,701
Payable for investments purchased		1,491,514
Payable for Fund shares redeemed		1,023,198
Payable upon receipt of securities loaned		7,687,344
Payable for daily variation margin on open futures contracts		1,094
Advisory fee payable		147,490
Distribution fees payable		63,336
Due to other related parties		63,076
Accrued expenses and other liabilities		203,589
Total liabilities		10,889,342
Total net assets	$	395,268,758
NET ASSETS CONSIST OF
Paid-in capital	$	448,287,161
Overdistributed net investment income		(46,202	)
Accumulated net realized losses on investments		(64,143,947	)
Net unrealized gains on investments		11,171,746
Total net assets	$	395,268,758
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE1
Net assets – Class A	$	260,093,638
Shares outstanding – Class A		79,302,124
Net asset value per share – Class A		$3.28
Maximum offering price per share – Class A2		$3.43
Net assets – Class B	$	10,444,691
Shares outstanding – Class B		3,183,527
Net asset value per share – Class B		$3.28
Net assets – Class C	$	99,098,660
Shares outstanding – Class C		30,208,766
Net asset value per share – Class C		$3.28
Net assets – Administrator Class	$	25,631,769
Shares outstanding – Administrator Class		7,805,093
Net asset value per share – Administrator Class		$3.28
Investment in unaffiliated securities (including securities on loan), at cost	$	377,016,019
Investments in affiliated securities, at cost	$	11,993,490
Total investments, at cost	$	389,009,509
Securities on loan, at value	$	7,524,278
Foreign currency, at cost	$	45

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 28, 2013 (unaudited) Wells Fargo Advantage High Yield Bond Fund 13

Investment income
Interest	$	11,419,000
Dividends*		323,125
Securities lending income, net		16,778
Income from affiliated securities		8,443
Total investment income		11,767,346
Expenses
Advisory fee		997,366
Administration fees
Fund level		99,737
Class A		204,382
Class B		9,200	��
Class C		78,173
Administrator Class		17,126
Shareholder servicing fees
Class A		319,348
Class B		14,375
Class C		122,146
Administrator Class		41,710
Distribution fees
Class B		43,125
Class C		366,437
Custody and accounting fees		15,579
Professional fees		28,897
Registration fees		42,226
Shareholder report expenses		37,039
Trustees’ fees and expenses		4,934
Other fees and expenses		7,679
Total expenses		2,449,479
Less: Fee waivers and/or expense reimbursements		(31,032	)
Net expenses		2,418,447
Net investment income		9,348,899
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments		16,354,466
Net change in unrealized gains (losses) on:
Unaffiliated securities		(3,673,282	)
Futures transactions		(343	)
Net change in unrealized gains (losses) on investments		(3,673,625	)
Net realized and unrealized gains (losses) on investments		12,680,841
Net increase in net assets resulting from operations	$	22,029,740
* Net of foreign dividend withholding taxes in the amount of		$21,300

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

14 Wells Fargo Advantage High Yield Bond Fund Statement of changes in net assets

	Six months ended February 28, 2013 (unaudited)						Year ended August 31, 2012
Operations
Net investment income				$	9,348,899					$	26,056,526
Net realized gains on investments					16,354,466						181,195
Net change in unrealized gains (losses) on investments					(3,673,625	)					20,005,915
Net increase in net assets resulting from operations					22,029,740						46,243,636
Distributions to shareholders from
Net investment income
Class A					(6,184,535	)					(17,203,396	)
Class B					(235,982	)					(932,812	)
Class C					(1,999,763	)					(5,611,103	)
Administrator Class					(866,110	)					(2,319,951	)
Total distributions to shareholders					(9,286,390	)					(26,067,262	)
	Shares						Shares
Capital share transactions
Proceeds from shares sold
Class A		5,455,454			17,743,596			29,414,705			89,784,820
Class B		49,611			160,619			297,504			919,512
Class C		940,363			3,046,145			3,259,281			10,053,241
Administrator Class		2,562,372			8,344,449			12,973,812			39,966,741
					29,294,809						140,724,314
Reinvestment of distributions
Class A		1,614,499			5,235,252			4,148,605			12,817,438
Class B		62,808			203,504			212,228			654,583
Class C		541,423			1,755,612			1,310,820			4,053,852
Administrator Class		233,888			759,143			654,465			2,023,464
					7,953,511						19,549,337
Payment for shares redeemed
Class A		(10,189,218	)		(33,003,179	)		(30,659,654	)		(94,273,485	)
Class B		(1,096,391	)		(3,550,294	)		(3,495,670	)		(10,674,512	)
Class C		(2,616,801	)		(8,492,940	)		(4,944,365	)		(15,182,932	)
Administrator Class		(6,766,846	)		(21,962,621	)		(10,517,667	)		(32,573,952	)
					(67,009,034	)					(152,704,881	)
Net increase (decrease) in net assets resulting from capital share transactions					(29,760,714	)					7,568,770
Total increase (decrease) in net assets					(17,017,364	)					27,745,144
Net assets
Beginning of period					412,286,122						384,540,978
End of period				$	395,268,758					$	412,286,122
Overdistributed net investment income				$	(46,202	)				$	(108,711	)

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

Financial highlights Wells Fargo Advantage High Yield Bond Fund 15

(For a share outstanding throughout each period)

	Six months ended February 28, 2013 (unaudited)			Year ended August 31									Year ended April 30
CLASS A				2012			2011			20101,2			20101			20091			20081
Net asset value, beginning of period	$	3.18		$	3.03		$	3.05		$	3.10		$	2.39		$	3.13		$	3.40
Net investment income		0.08			0.20			0.21			0.08			0.25			0.27			0.25
Net realized and unrealized gains (losses) on investments		0.10			0.15			(0.02	)		(0.05	)		0.72			(0.76	)		(0.28	)
Total from investment operations		0.18			0.35			0.19			0.03			0.97			(0.49	)		(0.03	)
Distributions to shareholders from
Net investment income		(0.08	)		(0.20	)		(0.21	)		(0.08	)		(0.26	)		(0.25	)		(0.24	)
Net asset value, end of period	$	3.28		$	3.18		$	3.03		$	3.05		$	3.10		$	2.39		$	3.13
Total return3		5.65	%		12.00	%		6.07	%		0.99	%		42.27	%		(15.50	)%		(0.92	)%
Ratios to average net assets (annualized)
Gross expenses		1.03	%		1.02	%		1.02	%		1.06	%		1.14	%		1.22	%		1.12	%
Net expenses		1.03	%		1.02	%		1.02	%		1.05	%		1.13	%		1.08	%		1.07	%
Net investment income		4.87	%		6.52	%		6.60	%		7.70	%		8.96	%		10.60	%		7.82	%
Supplemental data
Portfolio turnover rate		87	%		37	%		70	%		46	%		129	%		119	%		110	%
Net assets, end of period (000s omitted)		$260,094			$261,938			$240,653			$281,044			$292,039			$217,199			$270,758

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. 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.

16 Wells Fargo Advantage High Yield Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2013 (unaudited)			Year ended August 31									Year ended April 30
CLASS B				2012			2011			20101,2			20101			20091			20081
Net asset value, beginning of period	$	3.18		$	3.03		$	3.05		$	3.10		$	2.39		$	3.13		$	3.40
Net investment income		0.07	3		0.18	3		0.18	3		0.07			0.22			0.25	3		0.22
Net realized and unrealized gains (losses) on investments		0.09			0.15			(0.02	)		(0.05	)		0.73			(0.76	)		(0.28	)
Total from investment operations		0.16			0.33			0.16			0.02			0.95			(0.51	)		(0.06	)
Distributions to shareholders from
Net investment income		(0.06	)		(0.18	)		(0.18	)		(0.07	)		(0.24	)		(0.23	)		(0.21	)
Net asset value, end of period	$	3.28		$	3.18		$	3.03		$	3.05		$	3.10		$	2.39		$	3.13
Total return4		5.26	%		11.17	%		5.28	%		0.74	%		41.23	%		(16.13	)%		(1.65	)%
Ratios to average net assets (annualized)
Gross expenses		1.78	%		1.77	%		1.78	%		1.81	%		1.89	%		1.97	%		1.82	%
Net expenses		1.78	%		1.77	%		1.77	%		1.81	%		1.88	%		1.83	%		1.82	%
Net investment income		4.13	%		5.80	%		5.85	%		6.98	%		8.29	%		9.70	%		7.06	%
Supplemental data
Portfolio turnover rate		87	%		37	%		70	%		46	%		129	%		119	%		110	%
Net assets, end of period (000s omitted)		$10,445			$13,247			$21,656			$50,671			$54,017			$58,429			$108,327

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 17

(For a share outstanding throughout each period)

	Six months ended February 28, 2013 (unaudited)			Year ended August 31									Year ended April 30
Class C				2012			2011			20101,2			20101			20091			20081
Net asset value, beginning of period	$	3.18		$	3.03		$	3.05		$	3.10		$	2.39		$	3.13		$	3.40
Net investment income		0.07			0.18			0.18			0.07			0.23			0.25			0.22
Net realized and unrealized gains (losses) on investments		0.09			0.15			(0.02	)		(0.05	)		0.72			(0.76	)		(0.28	)
Total from investment operations		0.16			0.33			0.16			0.02			0.95			(0.51	)		(0.06	)
Distributions to shareholders from
Net investment income		(0.06	)		(0.18	)		(0.18	)		(0.07	)		(0.24	)		(0.23	)		(0.21	)
Net asset value, end of period	$	3.28		$	3.18		$	3.03		$	3.05		$	3.10		$	2.39		$	3.13
Total return3		5.26	%		11.17	%		5.28	%		0.74	%		41.23	%		(16.13	)%		(1.65	)%
Ratios to average net assets (annualized)
Gross expenses		1.78	%		1.77	%		1.77	%		1.81	%		1.89	%		1.97	%		1.82	%
Net expenses		1.78	%		1.77	%		1.77	%		1.81	%		1.88	%		1.83	%		1.82	%
Net investment income		4.12	%		5.78	%		5.85	%		6.97	%		8.21	%		9.79	%		7.06	%
Supplemental data
Portfolio turnover rate		87	%		37	%		70	%		46	%		129	%		119	%		110	%
Net assets, end of period (000s omitted)		$99,099			$99,633			$95,999			$104,954			$106,886			$78,995			$118,638

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. 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 High Yield Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2013 (unaudited)			Year ended August 31									Year ended April 30
ADMINISTRATOR CLASS				2012			2011			20101,2			20101			20091			20081
Net asset value, beginning of period	$	3.18		$	3.03		$	3.05		$	3.10		$	2.39		$	3.13		$	3.40
Net investment income		0.08			0.21			0.22			0.08			0.26			0.28	3		0.26
Net realized and unrealized gains (losses) on investments		0.10			0.15			(0.03	)		(0.05	)		0.72			(0.76	)		(0.29	)
Total from investment operations		0.18			0.36			0.19			0.03			0.98			(0.48	)		(0.03	)
Distirbutions to shareholders from
Net investment income		(0.08	)		(0.21	)		(0.21	)		(0.08	)		(0.27	)		(0.26	)		(0.24	)
Net asset value, end of period	$	3.28		$	3.18		$	3.03		$	3.05		$	3.10		$	2.39		$	3.13
Total return4		5.77	%		12.25	%		6.30	%		1.07	%		42.62	%		(15.28	)%		(0.66	)%
Ratios to average net assets (annualized)
Gross expenses		0.96	%		0.95	%		0.95	%		0.87	%		0.89	%		0.94	%		0.82	%
Net expenses		0.80	%		0.80	%		0.80	%		0.81	%		0.88	%		0.80	%		0.82	%
Net investment income		5.10	%		6.73	%		6.79	%		7.95	%		9.17	%		11.89	%		8.05	%
Supplemental data
Portfolio turnover rate		87	%		37	%		70	%		46	%		129	%		119	%		110	%
Net assets, end of period (000s omitted)		$25,632			$37,469			$26,234			$48,709			$93,639			$68,991			$25,729

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 19

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

All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (normally 4 p.m. Eastern Time).

Fixed income securities acquired with maturities exceeding 60 days are valued based on evaluated bid prices received from an independent pricing service 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 independent pricing service or values received are deemed not representative of market value, values will be obtained from a broker-dealer or otherwise determined based on the Fund’s Valuation Procedures.

Debt securities of sufficient credit quality acquired with 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.

Equity securities that are listed on a foreign or domestic exchange, except for The Nasdaq Stock Market, Inc. (“Nasdaq”), are valued at the official closing price or, if none, the last sales price. Securities listed on Nasdaq are valued at the Nasdaq Official Closing Price (“NOCP”). If no NOCP is available, securities are valued at the last sales price. If no sales price is shown on the Nasdaq, the bid price will be used. If no sale occurs on the primary exchange or market for the security that day or if no sale occurs and no bid price is shown on Nasdaq, the prior day’s price will be deemed “stale” and fair values will be determined in accordance with the Fund’s Valuation Procedures.

Investments in registered open-end investment companies are valued at net asset value. Non-registered investment companies are fair 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. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Management Valuation Team of Wells Fargo Funds Management, LLC (“Funds Management”). The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Management Valuation Team which may include items for ratification.

Valuations of fair valued securities are compared to the next actual sales price when available, or other appropriate market information to assess the continued appropriateness of the fair valuation methodology used. These securities are fair valued on a day-to-day basis, taking into consideration changes to appropriate market information and any significant changes to the input factors considered in the valuation process until there is a readily available price provided on the exchange or by an independent pricing service. Valuations received from an independent pricing service or broker quotes are periodically validated by comparisons to most recent trades and valuations provided by other independent pricing services in addition to the review of prices by the adviser and/or subadviser. Unobservable inputs used in determining fair valuations are identified based on the type of security, taking into consideration factors utilized by market participants in valuing the investment, knowledge about the issuer and the current market environment.

20 Wells Fargo Advantage High Yield Bond Fund Notes to financial statements (unaudited)

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 rates of exchange at a time specified by the Management Valuation Team on the date of valuation. Purchases and sales of securities, and income and expenses are translated at the 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 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 Funds Management and is subadvised by Wells Capital Management Incorporated (“WellsCap”). 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 WellsCap for its services as subadviser. 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 in an amount at least equal in value to the Fund’s commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.

Term loans

The Fund may invest in term loans. 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.

Notes to financial statements (unaudited) Wells Fargo Advantage High Yield Bond Fund 21

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 recorded on the basis of identified cost.

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

Distributions to shareholders

Distributions to shareholders from net investment income are accrued daily and paid monthly. Distributions from net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in conformity with federal income tax regulations, which may differ in amount or character from net investment income and realized gains recognized for purposes of U.S. generally accepted accounting principles.

Federal and other taxes

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

The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

As of August 31, 2012, the Fund had pre-enactment capital loss carryforwards incurred in taxable years beginning before December 22, 2010, which were available to offset future net realized capital gains, in the amount of $79,706,679 with $42,455,987 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 any 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, use of amortized cost, etc.)

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

22 Wells Fargo Advantage High Yield Bond Fund Notes to financial statements (unaudited)

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

As of February 28, 2013, the inputs used in valuing investments in securities, 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	$	21,626,600	$	0	$	1,840	$	21,628,440
Corporate bonds and notes		0		346,022,104		0		346,022,104
Yankee corporate bonds and notes		0		20,537,564		0		20,537,564
Short-term investments
Investment companies		4,306,146		7,687,344		0		11,993,490
	$	25,932,746	$	374,247,012	$	1,840	$	400,181,598

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

As of February 28, 2013, 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+	$	(343	)	$	0	$	0	$	(343	)

+ 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 28, 2013, the Fund did not have any transfers into/out of Level 1 or Level 2.

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 subadviser, 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 28, 2013, 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 a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. WellsCap, an affiliate of Funds Management, is the subadviser 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 23

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, 2013 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 1.03% for Class A shares, 1.78% for Class B shares, 1.78% for Class C shares, and 0.80% for Administrator Class shares.

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 28, 2013, Wells Fargo Funds Distributor, LLC received $7,018 from the sale of Class A shares and $1,000, $2,166 and $310 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 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, for the six months ended February 28, 2013 were $343,437,149 and $351,410,959, respectively.

6. DERIVATIVE TRANSACTIONS

During the six months ended February 28, 2013, the Fund entered into futures contracts to speculate on interest rates and to help shorten or lengthen the duration of the portfolio.

At February 28, 2013, the Fund had short futures contracts outstanding as follows:

Expiration date	Contracts	Type	Contract value at February 28, 2013		Unrealized losses
6-19-2013	10 Short	10-Year U.S. Treasury Notes	$	1,315,469	$	(343	)

The Fund had an average notional amount of $21,798 in futures contracts during the six months ended February 28, 2013.

On February 28, 2013, the cumulative unrealized losses on futures contracts in the amount of $343 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. Any realized gains or losses and change in unrealized gains or losses on futures contracts are reflected in the Statement of Operations.

7. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds in the Trust) 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. For the six months ended February 28, 2013, the Fund paid $450 in commitment fees.

For the six months ended February 28, 2013, 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 PRONOUNCEMENT

In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2011-11, Disclosures about Offsetting Assets and Liabilities. ASU 2011-11, which amends FASB ASC Topic 210, Balance Sheet, creates new disclosure requirements which require entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently assessing the potential impact, in addition to expanded financial statement disclosure, that may result from adopting this ASU.

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

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available on the Fund’s website (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 website 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 website at sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at 233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Other information (unaudited) Wells Fargo Advantage High Yield Bond Fund 25

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers listed in the table below acts in identical capacities for the Wells Fargo Advantage family of funds, which consists of 135 funds¹ comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information². 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	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. Advisory Board Member, Palm Coast Academy (charter school). Mr. Harris is a certified public accountant.	CIGNA Corporation; Deluxe Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, 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 48 portfolios as of 1/31/2013); 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, Morgan Stanley Director of the Center for Leadership Development and Research 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
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

26 Wells Fargo Advantage High Yield 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
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.	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 Tree Trust (non-profit corporation). Director of the American Chestnut Foundation (non-profit corporation).	Asset Allocation Trust

* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.

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.
Nancy Wiser1 (Born 1967)	Treasurer, since 2012	Executive Vice President of Wells Fargo Funds Management, LLC since 2011. Chief Operating Officer and Chief Compliance Officer at LightBox Capital Management LLC, from 2008 to 2011. Owned and operated a consulting business providing services to various hedge funds including acting as Chief Operating Officer and Chief Compliance Officer for a hedge fund from 2007 to 2008. Chief Operating Officer and Chief Compliance Officer of GMN Capital LLC from 2006 to 2007.
C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Officer, since 2003	Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001. Vice President and Managing Counsel of Wells Fargo Bank, N.A. since 1996.
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.
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 DePalma1 (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.

1. Nancy Wiser acts as Treasurer of 74 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 61 funds and Assistant Treasurer of 74 funds in the Fund Complex.

2. 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 website at wellsfargoadvantagefunds.com.

List of abbreviations Wells Fargo Advantage High Yield Bond Fund 27

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian 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

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

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

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 depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Industrial development revenue

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

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

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

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

SPA —  Standby purchase agreement

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

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

This page is intentionally left blank.

This page is intentionally left blank.

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, email, visit the Fund’s website, or call:

Wells Fargo Advantage Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: wfaf@wellsfargo.com

Website: 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 current prospectus and, if available, a summary prospectus containing more complete information, including charges and expenses, call 1-800-222-8222 or visit the Fund’s website 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

© 2013 Wells Fargo Funds Management, LLC. All rights reserved.

215347 04-13 SA218/SAR218 2-13

Wells Fargo Advantage Income Plus Fund

Semi-Annual Report

February 28, 2013

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	4
Fund expenses	6
Portfolio of investments	7
Financial statements
Statement of assets and liabilities	16
Statement of operations	17
Statement of changes in net assets	18
Financial highlights	19
Notes to financial statements	25
Other information	31
List of abbreviations	34

The views expressed and any forward-looking statements are as of February 28, 2013, 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 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 the 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 the investment objectives, risks, charges, and expenses before investing. For a current prospectus and, if available, a summary prospectus, for Wells Fargo Advantage Funds, 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, 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 $225 billion in assets under management, as of February 28, 2013.

Equity funds
Asia Pacific Fund	Enterprise Fund†	Opportunity Fund†
C&B Large Cap Value Fund	Global Opportunities Fund	Precious Metals Fund
C&B Mid Cap Value Fund	Growth Fund	Premier Large Company Growth Fund
Capital Growth Fund	Index Fund	Small Cap Opportunities Fund
Common Stock Fund	International Equity Fund	Small Cap Value Fund
Disciplined U.S. Core Fund	International Value Fund	Small Company Growth Fund
Discovery Fund†	Intrinsic Small Cap Value Fund	Small Company Value Fund
Diversified Equity Fund	Intrinsic Value Fund	Small/Mid Cap Value Fund
Diversified International Fund	Intrinsic World Equity Fund	Special Mid Cap Value Fund
Emerging Growth Fund	Large Cap Core Fund	Special Small Cap Value Fund
Emerging Markets Equity Fund	Large Cap Growth Fund	Specialized Technology Fund
Emerging Markets Equity Income Fund	Large Company Value Fund	Traditional Small Cap Growth Fund
Endeavor Select Fund†	Omega Growth Fund	Utility and Telecommunications Fund
Bond funds
Adjustable Rate Government Fund	High Yield Municipal Bond Fund	Short Duration Government Bond Fund
California Limited-Term Tax-Free Fund	Income Plus Fund	Short-Term Bond Fund
California Tax-Free Fund	Inflation-Protected Bond Fund	Short-Term High Yield Bond Fund
Colorado Tax-Free Fund	Intermediate Tax/AMT-Free Fund	Short-Term Municipal Bond Fund
Core Bond Fund	International Bond Fund	Strategic Income Fund
Emerging Markets Local Bond Fund	Minnesota Tax-Free Fund	Strategic Municipal Bond Fund
Government Securities Fund	Municipal Bond Fund	Ultra Short-Term Income Fund
High Income Fund	North Carolina Tax-Free Fund	Ultra Short-Term Municipal Income Fund
High Yield Bond Fund	Pennsylvania Tax-Free 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	Treasury Plus Money Market Fund
Cash Investment Money Market Fund	Municipal Cash Management 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 (unaudited)

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Fixed-income performance was best among lower-rated corporate bonds and commercial mortgage-backed securities, as continued monetary accommodation from the U.S. Federal Reserve strengthened the demand for securities with higher yields.

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 28, 2013. During the period, fixed-income performance was best among lower-rated corporate bonds and commercial mortgage-backed securities (CMBS), as continued monetary accommodation from the U.S. Federal Reserve (Fed) strengthened the demand for securities with higher yields. However, the longest-maturity segments of the fixed-income market generally underperformed the mid-maturity and short-maturity segments because longer-maturity U.S. Treasury yields shifted higher, most notably in January 2013, thereby influencing a decline in the prices of longer-maturity fixed-income securities.

Credit sectors rallied for much of the second half of 2012, outperforming U.S. Treasuries.

As policymaking in Europe during the summer months of 2012 began to reassure global credit markets that the euro would likely survive and that all appropriate measures would be taken to bolster European debt markets, lower-rated securities in the U.S. once again rallied in price, significantly outpacing the returns from U.S. Treasuries. Corporate bonds and CMBS were once again the best-performing sectors of the core fixed income markets from August 2012 through the end of the year, as they had been before the European credit crisis escalated in the spring.

In December 2012, the Fed reaffirmed its commitment to highly accommodative monetary policy, citing its dual mandate of fostering maximum employment and price stability. For the first time since the financial crisis began in 2008, the Fed formally announced specific target ranges that could trigger a change to its highly accommodative monetary policy, most notably that exceptionally low interest rates would be appropriate at least as long as the unemployment rate remained above 6.5% and inflation expectations were no more than half a percentage point above its 2.0% inflation target. These thresholds were the first official measures of when and how a change to monetary policy may take effect.

U.S. Treasury yields shift significantly higher in January 2013.

With growing confidence in the U.S. economy and improving stability in the European credit markets, longer-maturity U.S. Treasury yields began to shift significantly higher in January 2013. The yield on the 10-year U.S. Treasury note ratcheted higher to 2.00% in January 2013, after finishing 2012 at 1.75% and reaching a modern-era record low of 1.41% in late July 2012. The 30-year U.S. Treasury bond finished the period at a yield of 3.09%, up from 2.58% at the start of the period. Thus, during the period, longer-maturity securities felt the pressure of yields shifting higher, which eroded some of their pricing. The best-performing sections of the yield curve were generally in the five- to 10-year range, which benefited from relatively adequate yields while remaining mostly insulated from the price erosion in maturities of 10 years and longer.

Despite this persistent trend toward higher yields during the final three months of the period, which chipped away at some security prices, several areas of the taxable fixed income markets continued to generate relatively compelling returns, considering the extraordinarily low level of interest rates. Spreads in the corporate bond sector continued to tighten while U.S. Treasury yields shifted higher, thus providing some protection against price erosion. CMBS spreads also tightened during the period resulting in some of the strongest six-month returns in the taxable investment-grade sectors. Within the Barclays U.S. Aggregate Bond Index¹, the CMBS sector returned 2.35% during the six-month period, the corporate

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

Letter to shareholders (unaudited) Wells Fargo Advantage Income Plus Fund 3

sector returned 1.64%, and the U.S. Treasury sector returned (0.67)%. The lower-rated credit tiers continued to outperform each respectively higher credit tier during the period, despite the rising yield influence in the longest maturities.

Overall, the theme for the six-month period in the U.S. fixed income markets was relatively strong performance from the corporate and CMBS sectors, particularly in the lower-rated credit tiers, with a protracted decline in prices of U.S. Treasuries. On the whole, most credit-related sectors generated relatively generous returns during the six-month period considering the extraordinarily low level of interest rates. However, the trend from previous periods of strong performance from longer-maturity securities began to unwind in January and February 2013. During this period, credit risks were rewarded better than interest rate risks, meaning that higher-yield compensation from lower-rated securities performed better than higher-yield compensation from longer-maturity securities, which experienced price pressures. Investment strategies that focused on mid- to lower-rated credit tiers and mid-maturity securities generally saw the strongest returns during the period.

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.

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 website 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

Most credit-related sectors generated relatively generous returns during the six-month period considering the extraordinarily low level of interest rates

Notice to shareholders

At its November 6-7, 2012 meeting, the Board of Trustees unanimously approved the following modifications to certain Class A sales load waiver privileges, with each change becoming effective on July 1, 2013:

n Annuity payments received under an annuity option or from death proceeds will no longer qualify for net asset value (NAV) repurchase privileges.

n The ability to reinvest redemption proceeds at NAV will be reduced from 120 days to 90 days.

n NAV purchase privileges for certain types of “grandfathered” shareholders will be modified to remove the ability to purchase Class A shares at NAV, unless those shares are held directly with the Fund.

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

4 Wells Fargo Advantage Income Plus Fund Performance highlights (unaudited)

Investment objective

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

Adviser

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Michael J. Bray, CFA

Thomas M. Price, CFA

Janet S. Rilling, CFA, CPA

Average annual total returns¹ (%) as of February 28, 2013

		Including sales charge							Excluding sales charge						Expense ratios2 (%)
	Inception date	1 year			5 year		10 year		1 year		5 year		10 year		Gross		Net3
Class A (STYAX)	7-13-1998		(0.65	)		5.72		5.60		4.04		6.70		6.08		0.92		0.90
Class B (STYBX)*	7-13-1998		(1.76	)		5.56		5.53		3.24		5.88		5.53		1.67		1.65
Class C (WFIPX)	7-13-1998		2.18			5.90		5.29		3.18		5.90		5.29		1.67		1.65
Administrator Class (WIPDX)	7-30-2010		–			–		–		4.12		6.82		6.07		0.86		0.75
Institutional Class (WIPIX)	7-18-2008		–			–		–		4.43		7.02		6.25		0.59		0.59
Investor Class (WIPNX)	7-18-2008		–			–		–		4.01		6.67		6.07		0.95		0.91
Barclays U.S. Universal Bond Index4	–		–			–		–		4.11		5.88		5.41		–		–

* 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 website, 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 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 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). The 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.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Advantage Income Plus Fund 5

Ten largest long-term holdings5 (%) as of February 28, 2013
U.S. Treasury Note, 0.50%, 8-15-2014	6.43
U.S. Treasury Note, 0.38%, 3-15-2015	4.16
FHLMC, 3.50%, 3-1-2043	3.91
U.S. Treasury Note, 1.25%, 4-15-2014	3.55
U.S. Treasury Note, 0.88%, 1-31-2018	3.41
U.S. Treasury Note, 2.25%, 7-31-2018	3.21
FNMA, 4.50%, 3-1-2043	2.88
FNMA, 3.00%, 3-1-2043	2.32
U.S. Treasury Bond, 6.38%, 8-15-2027	2.28
FNMA, 5.00%, 8-1-2040	1.97

Portfolio allocation⁶ as of February 28, 2013

1. 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.

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

3. The Adviser has committed through December 31, 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 0.88% for Investor Class. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the cap. Without this cap, the Fund’s returns would have been lower.

4. 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.

5. 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.

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

6 Wells Fargo Advantage Income Plus Fund Fund expenses (unaudited)

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, 2012 to February 28, 2013.

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 9-1-2012		Ending account value 2-28-2013		Expenses paid during the period1		Net annual expense ratio
Class A
Actual	$	1,000.00	$	1,006.26	$	4.33		0.87	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.48	$	4.36		0.87	%
Class B
Actual	$	1,000.00	$	1,002.43	$	8.04		1.62	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.76	$	8.10		1.62	%
Class C
Actual	$	1,000.00	$	1,002.51	$	8.04		1.62	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.76	$	8.10		1.62	%
Administrator Class
Actual	$	1,000.00	$	1,007.04	$	3.58		0.72	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.22	$	3.61		0.72	%
Institutional Class
Actual	$	1,000.00	$	1,008.49	$	2.74		0.55	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.07	$	2.76		0.55	%
Investor Class
Actual	$	1,000.00	$	1,006.15	$	4.43		0.89	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.38	$	4.46		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).

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Income Plus Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities: 31.27%
FHLMC ±		2.26	%		1-1-2036	$	99,007	$	104,523
FHLMC		3.50			12-15-2020		888,002		941,163
FHLMC %%		3.50			3-1-2043		21,815,000		22,967,105
FHLMC %%		4.00			3-1-2043		6,310,000		6,702,403
FHLMC		5.00			6-1-2036		1,404,626		1,516,103
FHLMC		5.00			8-1-2040		1,104,596		1,198,980
FHLMC		5.50			11-1-2023		288,617		315,495
FHLMC		5.50			8-1-2038		370,683		402,299
FHLMC		5.50			12-1-2038		2,984,380		3,238,919
FHLMC		5.50			6-1-2040		2,370,893		2,577,553
FHLMC		7.50			5-1-2038		12,769		15,758
FHLMC		7.50			2-25-2042		2,875,275		3,444,798
FHLMC		8.00			2-1-2030		720		842
FHLMC Series K020 Class X1 ±(c)		1.48			5-25-2022		14,710,615		1,571,403
FHLMC Series K021 Class X1 ±(c)		1.51			6-25-2022		13,053,906		1,453,435
FHLMC Series M009 Class A ±(i)		5.40			10-15-2021		540,538		541,101
FHLMC Series T-57 Class 2A1 ±		3.34			7-25-2043		92,604		96,099
FHLMC Series T-59 Class 2A1 ±		2.91			10-25-2043		82,774		85,512
FNMA ±		2.41			1-1-2036		284,196		303,341
FNMA		2.75			10-1-2022		2,250,000		2,275,029
FNMA ±		2.86			9-1-2036		79,103		84,508
FNMA ±		2.87			8-1-2036		132,197		140,916
FNMA %%		3.00			3-1-2028		2,510,000		2,641,775
FNMA %%		3.00			3-1-2043		13,160,000		13,624,713
FNMA		3.27			7-1-2022		1,333,473		1,436,119
FNMA		3.50			2-1-2026		2,757,362		2,924,958
FNMA %%		3.50			3-1-2028		1,350,000		1,431,000
FNMA %%		3.50			3-1-2043		3,000,000		3,172,500
FNMA		3.69			6-1-2017		3,648,417		4,015,630
FNMA		3.95			9-1-2021		447,503		503,864
FNMA		4.00			9-1-2024		323,370		346,410
FNMA %%		4.00			3-1-2028		2,570,000		2,750,301
FNMA %%		4.00			3-1-2043	��	8,630,000		9,199,041
FNMA		4.26			4-1-2021		2,931,029		3,357,774
FNMA		4.39			1-1-2020		1,582,420		1,814,657
FNMA		4.46			5-1-2020		1,903,158		2,193,404
FNMA %%		4.50			3-31-2028		3,760,000		4,044,350
FNMA %%		4.50			3-1-2043		15,720,000		16,921,105
FNMA		5.00			1-1-2024		592,462		641,270
FNMA		5.00			2-1-2036		133,179		144,722
FNMA		5.00			6-1-2040		372,626		411,709
FNMA		5.00			8-1-2040		10,692,461		11,575,485
FNMA		5.50			8-1-2034		445,557		491,078
FNMA		5.50			2-1-2035		137,302		151,329
FNMA		5.50			8-1-2038		1,576,458		1,745,744
FNMA		5.50			8-1-2038		2,109,233		2,319,121
FNMA		6.00			10-1-2037		2,827,500		3,106,210
FNMA		6.00			11-1-2037		266,206		292,447
FNMA %%		6.00			3-1-2043		795,000		871,270

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

8 Wells Fargo Advantage Income Plus Fund Portfolio of investments—February 28, 2013 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA		6.50	%		7-1-2036	$	123,976	$	138,624
FNMA		6.50			7-1-2036		52,413		58,664
FNMA		6.50			11-1-2036		41,552		46,498
FNMA		6.50			7-1-2037		3,360,749		3,760,813
FNMA		7.00			3-1-2024		1,708,621		1,799,176
FNMA		7.00			7-1-2036		48,698		57,842
FNMA		7.00			11-1-2037		67,045		72,956
FNMA		7.50			5-1-2038		2,108		2,148
FNMA		7.87			7-1-2026		2,609,742		2,749,860
FNMA Series 2002-T12 Class A3		7.50			5-25-2042		11,391		13,747
FNMA Series 2003-W08 Class 4A ±		3.15			11-25-2042		249,159		262,231
FNMA Series 2003-W14 Class 2A ±		2.29			6-25-2035		220,532		229,265
FNMA Series 2003-W14 Class 2A ±		3.42			1-25-2043		121,222		131,260
FNMA Series 2004-W11 Class 1A3		7.00			5-25-2044		2,584,030		2,902,046
FNMA Series 2004-W15 Class 1A3		7.00			8-25-2044		1,921,439		2,238,736
GNMA		4.00			6-20-2042		6,163,667		6,652,633
GNMA %%		4.50			3-1-2043		10,425,000		11,348,590
GNMA		5.00			7-20-2040		2,871,107		3,192,950
GNMA		7.50			12-15-2029		917		1,115
GNMA Series 2007-12 Class A		3.96			6-16-2031		456,153		459,315
GNMA Series 2008-22 Class XM ±(c)		0.60			2-16-2050		8,937,428		318,736
GNMA Series 2008-86 Class D		5.46			6-16-2040		4,365,000		5,110,935
Total Agency Securities (Cost $179,318,200)									183,653,411
Asset-Backed Securities: 1.15%
Citibank Credit Card Issuance Trust Series 2005-C1 Class C1		5.50			3-24-2017		285,000		309,447
CVS Pass-Through Trust First Lien		6.04			12-10-2028		1,943,552		2,288,054
Discover Card Master Trust Series 2008-A4 Class A4		5.65			12-15-2015		2,345,000		2,382,302
Nissan Auto Receivables Owner Trust Series 2011-B Class A2		0.74			9-15-2014		1,745,970		1,748,233
Total Asset-Backed Securities (Cost $6,310,929)									6,728,036
Corporate Bonds and Notes: 23.99%
Consumer Discretionary: 5.75%
Auto Components: 0.75%
Delphi Corporation		5.00			2-15-2023		1,825,000		1,900,281
Lear Corporation		8.13			3-15-2020		676,000		753,740
TRW Automotive Incorporated 144A		4.50			3-1-2021		1,750,000		1,771,875
									4,425,896
Automobiles: 0.36%
Ford Motor Company		7.45			7-16-2031		1,645,000		2,107,758
Diversified Consumer Services: 0.30%
Service Corporation International		8.00			11-15-2021		1,500,000		1,785,000

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

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Income Plus Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Hotels, Restaurants & Leisure: 0.76%
Agua Caliente Band of Cahuilla Indians 144A		6.44	%		10-1-2016	$	562,000	$	511,999
Darden Restaurants Incorporated		6.80			10-15-2037		2,050,000		2,374,472
Seminole Indian Tribe of Florida 144A		7.75			10-1-2017		1,450,000		1,571,438
									4,457,909
Internet & Catalog Retail: 0.47%
Expedia Incorporated		5.95			8-15-2020		2,460,000		2,733,709
Media: 2.17%
CBS Corporation		7.88			7-30-2030		1,820,000		2,447,441
CCO Holdings LLC		8.13			4-30-2020		1,650,000		1,837,688
DISH DBS Corporation		7.88			9-1-2019		1,650,000		1,953,188
Lynx I Corporation 144A		5.38			4-15-2021		1,755,000		1,798,875
National CineMedia LLC		6.00			4-15-2022		1,500,000		1,608,750
News America Incorporated		7.85			3-1-2039		2,275,000		3,106,203
									12,752,145
Multiline Retail: 0.31%
Macy’s Retail Holdings Incorporated		6.65			7-15-2024		1,440,000		1,786,478
Specialty Retail: 0.63%
Limited Brands Incorporated		6.63			4-1-2021		1,650,000		1,860,375
Sally Beauty Holdings Incorporated		6.88			11-15-2019		1,650,000		1,839,750
									3,700,125
Consumer Staples: 1.02%
Food Products: 0.35%
H.J. Heinz Finance Company 144A		7.13			8-1-2039		1,935,000		2,077,294
Tobacco: 0.67%
Altria Group Incorporated		4.25			8-9-2042		2,805,000		2,679,695
Lorillard Incorporated		8.13			6-23-2019		975,000		1,247,004
									3,926,699
Energy: 1.43%
Energy Equipment & Services: 0.27%
SESI LLC		7.13			12-15-2021		1,410,000		1,561,575
Oil, Gas & Consumable Fuels: 1.16%
Consol Energy Incorporated		8.25			4-1-2020		1,650,000		1,819,125
Energy Transfer Equity LP		7.50			10-15-2020		1,450,000		1,656,625
Enterprise Products Operating LLC		4.45			2-15-2043		1,805,000		1,753,742
Newfield Exploration Company		6.88			2-1-2020		1,500,000		1,608,750
									6,838,242
Financials: 8.88%
Capital Markets: 0.42%
Alterra Finance LLC		6.25			9-30-2020		2,150,000		2,456,992

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

10 Wells Fargo Advantage Income Plus Fund Portfolio of investments—February 28, 2013 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Commercial Banks: 2.07%
Australia and New Zealand Banking Group Limited 144A		2.40	%		11-23-2016	$	3,320,000	$	3,493,221
Banco Santander Brasil SA 144A		4.63			2-13-2017		2,110,000		2,201,785
CIT Group Incorporated		5.38			5-15-2020		1,650,000		1,798,500
Fifth Third Bancorp		6.25			5-1-2013		1,850,000		1,867,886
PNC Financial Services Group Incorporated ±		8.25			12-31-2049		1,165,000		1,175,328
Regions Bank		7.50			5-15-2018		1,350,000		1,647,000
									12,183,720
Consumer Finance: 1.23%
Discover Financial Services		5.20			4-27-2022		1,960,000		2,218,081
HSBC Finance Corporation		6.68			1-15-2021		2,185,000		2,614,372
SLM Corporation		8.00			3-25-2020		2,045,000		2,367,088
									7,199,541
Diversified Financial Services: 2.61%
Bank of America Corporation		6.50			8-1-2016		2,300,000		2,654,163
Bank of America Corporation		7.63			6-1-2019		2,480,000		3,163,890
Blackstone Holdings Finance Company LLC 144A		5.88			3-15-2021		1,110,000		1,279,340
Citigroup Incorporated		5.88			1-30-2042		1,555,000		1,894,149
General Electric Capital Corporation ±		6.38			11-15-2067		2,200,000		2,326,500
JPMorgan Chase & Company Series 1 ±		7.90			12-31-2049		1,440,000		1,661,432
Moody’s Corporation		5.50			9-1-2020		2,165,000		2,346,550
									15,326,024
Insurance: 2.25%
ING US Incorporated 144A		2.90			2-15-2018		2,535,000		2,552,550
National Life Insurance Company of Vermont 144A		10.50			9-15-2039		1,315,000		1,844,487
Platinum Underwriters Finance Incorporated Series B		7.50			6-1-2017		1,730,000		1,928,163
Protective Life Corporation		8.45			10-15-2039		2,060,000		2,748,277
Prudential Financial Incorporated ±		8.88			6-15-2068		1,645,000		2,004,844
Torchmark Corporation		9.25			6-15-2019		1,600,000		2,157,406
									13,235,727
REITs: 0.30%
American Tower Corporation		7.00			10-15-2017		1,455,000		1,737,807
Health Care: 1.10%
Health Care Providers & Services: 1.10%
Cardinal Health Incorporated		4.60			3-15-2043		1,805,000		1,853,766
Fresenius Medical Care Holdings Incorporated		6.88			7-15-2017		1,250,000		1,431,250
HCA Incorporated		6.50			2-15-2020		1,450,000		1,624,000
Lifepoint Hospitals Incorporated		6.63			10-1-2020		1,450,000		1,578,688
									6,487,704

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

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Income Plus Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Industrials: 3.18%
Building Products: 0.56%
Masco Corporation		5.95	%		3-15-2022	$	1,450,000	$	1,615,257
Owens Corning Incorporated		4.20			12-15-2022		1,615,000		1,655,189
									3,270,446
Commercial Services & Supplies: 0.55%
Clean Harbors Incorporated		5.25			8-1-2020		1,650,000		1,699,500
Penske Truck Leasing Company LP 144A		3.13			5-11-2015		1,445,000		1,497,193
									3,196,693
Machinery: 0.92%
Briggs & Stratton Corporation		6.88			12-15-2020		1,450,000		1,638,500
Case New Holland Incorporated		7.88			12-1-2017		1,650,000		1,936,688
SPX Corporation		6.88			9-1-2017		1,650,000		1,843,875
									5,419,063
Professional Services: 0.81%
FTI Consulting Incorporated		6.75			10-1-2020		1,650,000		1,753,125
Verisk Analytics Incorporated		5.80			5-1-2021		2,650,000		3,017,748
									4,770,873
Trading Companies & Distributors: 0.34%
International Lease Finance Corporation		8.25			12-15-2020		1,650,000		2,021,250
Information Technology: 0.49%
Electronic Equipment, Instruments & Components: 0.44%
Corning Incorporated		7.25			8-15-2036		2,092,000		2,575,622
Internet Software & Services: 0.05%
Equinix Incorporated %%		4.88			4-1-2020		130,000		130,000
Equinix Incorporated %%		5.38			4-1-2023		195,000		195,000
									325,000
Materials: 1.02%
Chemicals: 0.26%
Rockwood Specialties Group Incorporated		4.63			10-15-2020		1,475,000		1,526,625
Containers & Packaging: 0.27%
Ball Corporation		5.00			3-15-2022		1,500,000		1,563,750
Paper & Forest Products: 0.49%
International Paper Company		7.30			11-15-2039		2,195,000		2,912,056
Telecommunication Services: 0.39%
Diversified Telecommunication Services: 0.39%
Frontier Communications Corporation		8.25			4-15-2017		625,000		714,063
Windstream Corporation		7.75			10-15-2020		1,450,000		1,558,750
									2,272,813

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

12 Wells Fargo Advantage Income Plus Fund Portfolio of investments—February 28, 2013 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Utilities: 0.73%
Independent Power Producers & Energy Traders: 0.73%
Calpine Corporation 144A		7.50	%		2-15-2021	$	990,000	$	1,076,625
Harper Lake Solar Funding Corporation 144A		7.65			12-31-2018		1,554,421		1,695,246
NRG Energy Incorporated		7.63			1-15-2018		1,300,000		1,490,125
									4,261,996
Total Corporate Bonds and Notes (Cost $130,929,535)									140,896,532
Municipal Obligations: 1.51%
California: 0.95%
California Build America Bonds (GO)		7.60			11-1-2040		1,450,000		2,120,915
San Jose CA Series B (Airport Revenue, AGM Insured)		6.60			3-1-2041		3,000,000		3,432,690
									5,553,605
Illinois: 0.54%
Illinois (GO)		4.51			3-1-2015		3,000,000		3,186,030
Other: 0.02%
Seneca Nation Indians Capital Improvements Authority Series 07-B (Miscellaneous Revenue) (i)144A		6.75			12-1-2013		130,000		129,875
Total Municipal Obligations (Cost $7,998,103)									8,869,510
Non-Agency Mortgage Backed Securities: 4.06%
Bear Stearns Commercial Mortgage Securities Incorporated Series 2005-PWR-7 Class A3 ±		5.12			2-11-2041		1,940,000		2,077,676
Bear Stearns Commercial Mortgage Securities Incorporated Series 2005-T20 ±		5.15			10-12-2042		2,480,000		2,724,942
Commercial Mortgage Trust Pass-Through Certificates Series 2004-LB4A Class A4		4.58			10-15-2037		726,687		728,606
Commercial Mortgage Trust Pass-Through Certificates Series 2005-C6 Class A5A ±		5.12			6-10-2044		1,715,000		1,868,081
Credit Suisse First Boston Mortgage Securities Corporation Series 1998-C2 Class AX ±(c)		0.41			11-15-2030		523,168		2,271
Financial Asset Securitization Incorporated Series 1997-NAM2 Class B2		7.88			7-25-2027		94,144		92,131
GE Capital Commercial Mortgage Corporation Series 2005-C3 Class A7A ±		4.97			7-10-2045		2,695,000		2,930,675
Lehman Brothers UBS Commercial Mortgage Trust Series 2006-C1 Class A4		5.16			2-15-2031		3,545,000		3,909,522
Mach One Trust Commercial Mortgage Backed Series 2004-1 Class X ±(c)(i)144A		0.65			5-28-2040		1,010,552		9,145
Morgan Stanley Capital I Series 2004-HQ4 Class A7		4.97			4-14-2040		2,205,000		2,303,268
Morgan Stanley Capital I Series 2004-RR2 Class X ±(c)144A		0.56			10-28-2033		922,311		4,427
Morgan Stanley Capital I Series 2005-T19 Class A4A		4.89			6-12-2047		2,570,000		2,784,431
Morgan Stanley Capital I Series 2007-HQ11 Class AM ±		5.48			2-12-2044		2,615,000		2,957,267
Washington Mutual Mortgage Pass-Through Certificates Series 2007-HY7 Class 3A2 ±		4.81			7-25-2037		1,674,575		1,454,157
Total Non-Agency Mortgage Backed Securities (Cost $23,701,199)									23,846,599
U.S. Treasury Securities: 32.69%
U.S. Treasury Bond ##		2.75			11-15-2042		5,455,000		5,079,969
U.S. Treasury Bond		4.25			11-15-2040		5,685,000		7,032,521
U.S. Treasury Bond ##		4.38			5-15-2040		4,115,000		5,189,402
U.S. Treasury Bond ##		4.50			2-15-2036		4,415,000		5,636,021
U.S. Treasury Bond		6.25			8-15-2023		5,450,000		7,715,156

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

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Income Plus Fund 13

Security name	Interest rate			Maturity date		Principal		Value
U.S. Treasury Securities (continued)
U.S. Treasury Bond		6.38	%		8-15-2027	$	9,020,000	$	13,414,436
U.S. Treasury Note		0.25			1-31-2014		7,200,000		7,205,062
U.S. Treasury Note		0.25			12-15-2015		11,350,000		11,326,540
U.S. Treasury Note		0.38			3-15-2015		24,345,000		24,403,964
U.S. Treasury Note		0.38			11-15-2015		5,820,000		5,829,551
U.S. Treasury Note		0.50			8-15-2014		37,625,000		37,785,207
U.S. Treasury Note		0.88			1-31-2018		19,925,000		20,046,423
U.S. Treasury Note		1.25			4-15-2014		20,590,000		20,833,703
U.S. Treasury Note		2.00			2-15-2023		1,405,000		1,419,709
U.S. Treasury Note		2.25			7-31-2018		17,585,000		18,876,407
U.S. Treasury Note		2.75			11-30-2016		150,000		162,480
U.S. Treasury Note		3.63			2-15-2021		50,000		58,188
Total U.S. Treasury Securities (Cost $188,304,939)									192,014,739
Yankee Corporate Bonds and Notes: 8.29%
Consumer Discretionary: 0.69%
Media: 0.69%
British Sky Broadcasting Group plc 144A		9.50			11-15-2018		1,785,000		2,444,882
Myriad International Holdings BV 144A		6.38			7-28-2017		1,445,000		1,607,563
									4,052,445
Energy: 0.63%
Oil, Gas & Consumable Fuels: 0.63%
Petrobras International Finance Company		6.75			1-27-2041		1,645,000		1,898,470
Weatherford International Limited		9.63			3-1-2019		1,370,000		1,798,240
									3,696,710
Financials: 4.82%
Capital Markets: 0.15%
Macquarie Group Limited 144A		6.00			1-14-2020		825,000		902,259
Commercial Banks: 3.98%
Banco Nacional de Desenvolvimento Economico e Social 144A		5.50			7-12-2020		2,065,000		2,369,588
Banco Santander Brasil SA 144A		4.00			1-16-2020		2,495,000		2,420,150
BBVA Bancomer SA 144A		4.50			3-10-2016		1,720,000		1,840,400
Commonwealth Bank of Australia ±144A		6.02			12-31-2049		1,300,000		1,345,611
Export Import Bank of Korea		5.13			6-29-2020		2,140,000		2,469,474
Intesa Sanpaolo SpA		3.13			1-15-2016		2,545,000		2,511,253
Itau Unibanco Holdings SA 144A		5.75			1-22-2021		1,925,000		2,033,763
Kommunalbanken AS 144A		2.38			1-19-2016		2,330,000		2,447,479
Landwirtschaftliche Rentenbank		2.50			2-15-2016		3,150,000		3,328,479
Rabobank Nederland		3.95			11-9-2022		2,545,000		2,587,127
									23,353,324
Consumer Finance: 0.69%
Inmarsat Finance plc 144A		7.38			12-1-2017		1,450,000		1,551,500
Rio Tinto Finance USA Limited		9.00			5-1-2019		1,790,000		2,490,948
									4,042,448

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

14 Wells Fargo Advantage Income Plus Fund Portfolio of investments—February 28, 2013 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Information Technology: 0.32%
Electronic Equipment, Instruments & Components: 0.02%
Flextronics International Limited 144A		5.00	%		2-15-2023	$	130,000	$	130,650
Internet Software & Services: 0.30%
Tencent Holdings Limited 144A		4.63			12-12-2016		1,595,000		1,740,904
Materials: 0.54%
Chemicals: 0.25%
LyondellBasell Industries NV		5.00			4-15-2019		1,325,000		1,477,375
Metals & Mining: 0.29%
ArcelorMittal «		6.13			6-1-2018		1,565,000		1,687,763
Telecommunication Services: 0.81%
Diversified Telecommunication Services: 0.41%
Telefonos de Mexico SAB de CV		5.50			11-15-2019		2,045,000		2,414,167
Wireless Telecommunication Services: 0.40%
Globo Communicacoes Participacoes SA 144A		4.88			4-11-2022		2,145,000		2,343,413
Utilities: 0.48%
Electric Utilities: 0.48%
Western Power Distributions Holdings Limited 144A		7.38			12-15-2028		2,265,000		2,861,649
Total Yankee Corporate Bonds and Notes (Cost $44,185,862)									48,703,107
	Yield					Shares
Short-Term Investments: 14.24%
Investment Companies: 14.19%
Wells Fargo Advantage Cash Investment Money Market Fund, Select Class (l)(u)##		0.13					81,749,329		81,749,329
Wells Fargo Securities Lending Cash Investments, LLC (l)(u)(r)(v)		0.18					1,557,500		1,557,500
									83,306,829
						Principal
U.S. Treasury Securities: 0.05%
U.S. Treasury Bill (z)#		0.06			3-21-2013	$	300,000		299,990
Total Short-Term Investments (Cost $83,606,819)									83,606,819

Total investments in securities (Cost $664,355,586) *	117.20	%		688,318,753
Other assets and liabilities, net	(17.20	)		(101,033,608	)
Total net assets	100.00	%	$	587,285,145

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

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Income Plus Fund 15

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

%% Security issued on a when-issued 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.

(i) Illiquid 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.

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

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

(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 Investment Company Act of 1940, as amended.

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

(z) Zero coupon security. Rate represents yield to maturity at time of purchase.

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

* Cost for federal income tax purposes is $664,557,363 and unrealized appreciation (depreciation) consists of:

Gross unrealized appreciation	$	27,209,266
Gross unrealized depreciation		(3,447,876	)
Net unrealized appreciation	$	23,761,390

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

16 Wells Fargo Advantage Income Plus Fund Statement of assets and liabilities—February 28, 2013 (unaudited)

Assets
Investments
In unaffiliated securities (including securities on loan), at value (see cost below)	$	605,011,924
In affiliated securities, at value (see cost below)		83,306,829
Total investments, at value (see cost below)		688,318,753
Receivable for investments sold		6,106,400
Principal paydown receivable		120
Receivable for Fund shares sold		961,666
Receivable for interest		3,940,562
Receivable for daily variation margin on open futures contracts		3,297
Receivable for securities lending income		434
Prepaid expenses and other assets		216,503
Total assets		699,547,735
Liabilities
Payable for investments purchased		108,888,625
Payable for Fund shares redeemed		1,381,289
Payable upon receipt of securities loaned		1,557,500
Advisory fee payable		146,615
Distribution fees payable		24,068
Due to other related parties		89,601
Accrued expenses and other liabilities		174,892
Total liabilities		112,262,590
Total net assets	$	587,285,145
NET ASSETS CONSIST OF
Paid-in capital	$	601,720,218
Undistributed net investment income		277,066
Accumulated net realized losses on investments		(38,668,947	)
Net unrealized gains on investments		23,956,808
Total net assets	$	587,285,145
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE1
Net assets – Class A	$	163,252,360
Shares outstanding – Class A		13,456,861
Net asset value per share – Class A		$12.13
Maximum offering price per share – Class A2		$12.70
Net assets – Class B	$	2,390,784
Shares outstanding – Class B		196,719
Net asset value per share – Class B		$12.15
Net assets – Class C	$	38,794,903
Shares outstanding – Class C		3,199,694
Net asset value per share – Class C		$12.12
Net assets – Administrator Class	$	164,126,126
Shares outstanding – Administrator Class		13,551,106
Net asset value per share – Administrator Class		$12.11
Net assets – Institutional Class	$	28,918,007
Shares outstanding – Institutional Class		2,381,842
Net asset value per share – Institutional Class		$12.14
Net assets – Investor Class	$	189,802,965
Shares outstanding – Investor Class		15,647,117
Net asset value per share – Investor Class		$12.13
Investment in unaffiliated securities (including securities on loan), at cost	$	581,048,757
Investments in affiliated securities, at cost	$	83,306,829
Total investments, at cost	$	664,355,586
Securities on loan, at value	$	1,526,125

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 28, 2013 (unaudited) Wells Fargo Advantage Income Plus Fund 17

Investment income
Interest	$	8,725,293
Income from affiliated securities		61,523
Securities lending income, net		9,560
Total investment income		8,796,376
Expenses
Advisory fee		1,231,588
Administration fees
Fund level		156,084
Class A		129,628
Class B		2,024
Class C		32,215
Administrator Class		80,179
Institutional Class		28,066
Investor Class		179,530
Shareholder servicing fees
Class A		202,544
Class B		3,162
Class C		50,335
Administrator Class		199,427
Investor Class		229,588
Distribution fees
Class B		9,487
Class C		151,006
Custody and accounting fees		21,334
Professional fees		27,440
Registration fees		32,722
Shareholder report expenses		45,629
Trustees’ fees and expenses		6,271
Other fees and expenses		11,833
Total expenses		2,830,092
Less: Fee waivers and/or expense reimbursements		(163,528	)
Net expenses		2,666,564
Net investment income		6,129,812
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		9,648,649
Futures transactions		210,591
Net realized gains on investments		9,859,240
Net change in unrealized gains (losses) on:
Unaffiliated securities		(11,768,304	)
Futures transactions		371,169
Net change in unrealized gains (losses) on investments		(11,397,135	)
Net realized and unrealized gains (losses) on investments		(1,537,895	)
Net increase in net assets resulting from operations	$	4,591,917

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

18 Wells Fargo Advantage Income Plus Fund Statement of changes in net assets

	Six months ended February 28, 2013 (unaudited)						Year ended August 31, 2012
Operations
Net investment income				$	6,129,812					$	17,457,743
Net realized gains on investments					9,859,240						21,476,834
Net change in unrealized gains (losses) on investments					(11,397,135	)					10,875,516
Net increase in net assets resulting from operations					4,591,917						49,810,093
Distributions to shareholders from
Net investment income
Class A					(1,620,733	)					(4,119,145	)
Class B					(15,512	)					(52,742	)
Class C					(250,556	)					(589,610	)
Administrator Class					(1,736,767	)					(3,305,624	)
Institutional Class					(833,018	)					(4,375,532	)
Investor Class					(1,870,977	)					(4,538,380	)
Net realized gains
Class A					(5,344,156	)					(453,790	)
Class B					(84,631	)					(8,925	)
Class C					(1,334,285	)					(86,836	)
Administrator Class					(5,253,361	)					(312,299	)
Institutional Class					(3,379,857	)					(424,887	)
Investor Class					(6,207,603	)					(505,596	)
Total distributions to shareholders					(27,931,456	)					(18,773,366	)
		Shares						Shares
Capital share transactions
Proceeds from shares sold
Class A		1,315,039			16,087,892			3,547,347			43,400,540
Class B		14,958			186,069			49,297			603,960
Class C		418,774			5,163,311			1,295,282			15,830,029
Administrator Class		2,493,351			30,752,943			7,744,615			94,386,156
Institutional Class		65,239			808,578			1,549,545			19,140,527
Investor Class		1,009,077			12,458,532			2,520,899			30,913,413
					65,457,325						204,274,625
Reinvestment of distributions
Class A		508,900			6,247,837			292,253			3,578,472
Class B		7,567			93,121			4,115			50,351
Class C		101,337			1,243,805			38,731			474,042
Administrator Class		563,018			6,899,560			290,511			3,555,541
Institutional Class		104,244			1,284,833			358,521			4,386,911
Investor Class		602,225			7,392,862			369,161			4,516,064
					23,162,018						16,561,381
Payment for shares redeemed
Class A		(2,097,067	)		(25,796,106	)		(3,694,716	)		(45,559,384	)
Class B		(50,009	)		(618,870	)		(165,598	)		(2,027,840	)
Class C		(604,949	)		(7,394,353	)		(573,637	)		(7,036,021	)
Administrator Class		(2,419,014	)		(29,759,602	)		(2,615,613	)		(31,939,635	)
Institutional Class		(10,614,058	)		(131,143,772	)		(2,484,559	)		(30,723,201	)
Investor Class		(1,507,347	)		(18,544,000	)		(3,056,909	)		(37,631,769	)
					(213,256,703	)					(154,917,850	)
Net increase (decrease) in net assets resulting from capital share transactions					(124,637,360	)					65,918,156
Total increase (decrease) in net assets					(147,976,899	)					96,954,883
Net assets
Beginning of period					735,262,044						638,307,161
End of period				$	587,285,145					$	735,262,044
Undistributed net investment income				$	277,066					$	474,817

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

Financial highlights Wells Fargo Advantage Income Plus Fund 19

(For a share outstanding throughout each period)

	Six months ended February 28, 2013 (unaudited)			Year ended August 31									Year ended May 31
CLASS A				2012			2011			20101			2010			2009			2008
Net asset value, beginning of period	$	12.57		$	12.04		$	12.00		$	11.59		$	10.82		$	10.70		$	10.65
Net investment income		0.12			0.30			0.37	2		0.09	2		0.37	2		0.42	2		0.48	2
Net realized and unrealized gains (losses) on investments		(0.04	)		0.55			0.18			0.44			0.88			0.15			0.08
Total from investment operations		0.08			0.85			0.55			0.53			1.25			0.57			0.56
Distributions to shareholders from
Net investment income		(0.12	)		(0.29	)		(0.42	)		(0.12	)		(0.48	)		(0.45	)		(0.51	)
Net realized gains		(0.40	)		(0.03	)		(0.09	)		0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.52	)		(0.32	)		(0.51	)		(0.12	)		(0.48	)		(0.45	)		(0.51	)
Net asset value, end of period	$	12.13		$	12.57		$	12.04		$	12.00		$	11.59		$	10.82		$	10.70
Total return3		0.63	%		7.19	%		4.76	%		4.62	%		11.74	%		5.52	%		5.37	%
Ratios to average net assets (annualized)
Gross expenses		0.90	%		0.89	%		0.88	%		0.91	%		1.03	%		1.05	%		1.35	%
Net expenses		0.87	%		0.88	%		0.88	%		0.88	%		0.90	%		0.90	%		1.00	%
Net investment income		1.95	%		2.42	%		3.17	%		3.07	%		3.29	%		4.01	%		4.50	%
Supplemental data
Portfolio turnover rate		127	%		256	%		215	%		84	%		187	%		455	%		245	%
Net assets, end of period (000s omitted)		$163,252			$172,577			$163,499			$261,227			$130,382			$94,938			$43,481

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.

20 Wells Fargo Advantage Income Plus Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2013 (unaudited)			Year ended August 31									Year ended May 31
CLASS B				2012			2011			20101			2010			2009			2008
Net asset value, beginning of period	$	12.59		$	12.05		$	12.01		$	11.61		$	10.82		$	10.70		$	10.65
Net investment income		0.07	2		0.21	2		0.29	2		0.07	2		0.29	2		0.35	2		0.40	2
Net realized and unrealized gains (losses) on investments		(0.04	)		0.56			0.17			0.43			0.89			0.14			0.08
Total from investment operations		0.03			0.77			0.46			0.50			1.18			0.49			0.48
Distributions to shareholders from
Net investment income		(0.07	)		(0.20	)		(0.33	)		(0.10	)		(0.39	)		(0.37	)		(0.43	)
Net realized gains		(0.40	)		(0.03	)		(0.09	)		0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.47	)		(0.23	)		(0.42	)		(0.10	)		(0.39	)		(0.37	)		(0.43	)
Net asset value, end of period	$	12.15		$	12.59		$	12.05		$	12.01		$	11.61		$	10.82		$	10.70
Total return3		0.24	%		6.45	%		3.97	%		4.31	%		11.04	%		4.69	%		4.58	%
Ratios to average net assets (annualized)
Gross expenses		1.65	%		1.63	%		1.63	%		1.65	%		1.78	%		1.80	%		2.10	%
Net expenses		1.62	%		1.62	%		1.63	%		1.62	%		1.65	%		1.65	%		1.75	%
Net investment income		1.20	%		1.71	%		2.40	%		2.33	%		2.54	%		3.30	%		3.75	%
Supplemental data
Portfolio turnover rate		127	%		256	%		215	%		84	%		187	%		455	%		245	%
Net assets, end of period (000s omitted)		$2,391			$2,823			$4,054			$6,140			$1,839			$3,937			$7,067

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 28, 2013 (unaudited)			Year ended August 31									Year ended May 31
CLASS C				2012			2011			20101			2010			2009			2008
Net asset value, beginning of period	$	12.56		$	12.03		$	12.00		$	11.59		$	10.82		$	10.69		$	10.65
Net investment income		0.07			0.21			0.29	2		0.07	2		0.29	2		0.35	2		0.40	2
Net realized and unrealized gains (losses) on investments		(0.04	)		0.55			0.16			0.44			0.88			0.15			0.07
Total from investment operations		0.03			0.76			0.45			0.51			1.17			0.50			0.47
Distributions to shareholders from
Net investment income		(0.07	)		(0.20	)		(0.33	)		(0.10	)		(0.40	)		(0.37	)		(0.43	)
Net realized gains		(0.40	)		(0.03	)		(0.09	)		0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.47	)		(0.23	)		(0.42	)		(0.10	)		(0.40	)		(0.37	)		(0.43	)
Net asset value, end of period	$	12.12		$	12.56		$	12.03		$	12.00		$	11.59		$	10.82		$	10.69
Total return3		0.25	%		6.40	%		3.92	%		4.42	%		10.93	%		4.85	%		4.50	%
Ratios to average net assets (annualized)
Gross expenses		1.65	%		1.64	%		1.63	%		1.66	%		1.78	%		1.80	%		2.10	%
Net expenses		1.62	%		1.63	%		1.63	%		1.63	%		1.65	%		1.65	%		1.75	%
Net investment income		1.20	%		1.65	%		2.41	%		2.32	%		2.53	%		3.32	%		3.75	%
Supplemental data
Portfolio turnover rate		127	%		256	%		215	%		84	%		187	%		455	%		245	%
Net assets, end of period (000s omitted)		$38,795			$41,259			$30,364			$30,253			$14,533			$7,242			$4,870

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 28, 2013 (unaudited)			Year ended August 31
ADMINISTRATOR CLASS				2012			2011			20101
Net asset value, beginning of period	$	12.55		$	12.02		$	12.00		$	11.87
Net investment income		0.13			0.33			0.39	2		0.03	2
Net realized and unrealized gains (losses) on investments		(0.04	)		0.54			0.16			0.14
Total from investment operations		0.09			0.87			0.55			0.17
Distirbutions to shareholders from
Net investment income		(0.13	)		(0.31	)		(0.44	)		(0.04	)
Net realized gains		(0.40	)		(0.03	)		(0.09	)		0.00
Total distributions to shareholders		(0.53	)		(0.34	)		(0.53	)		(0.04	)
Net asset value, end of period	$	12.11		$	12.55		$	12.02		$	12.00
Total return3		0.70	%		7.37	%		4.82	%		1.43	%
Ratios to average net assets (annualized)
Gross expenses		0.84	%		0.83	%		0.82	%		0.86	%
Net expenses		0.72	%		0.73	%		0.75	%		0.86	%
Net investment income		2.10	%		2.53	%		3.29	%		3.31	%
Supplemental data
Portfolio turnover rate		127	%		256	%		215	%		84	%
Net assets, end of period (000s omitted)		$164,126			$162,067			$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.

Financial highlights Wells Fargo Advantage Income Plus Fund 23

(For a share outstanding throughout each period)

	Six months ended February 28, 2013 (unaudited)			Year ended August 31									Year ended May 31
INSTITUTIONAL CLASS				2012			2011			20101			2010			20092
Net asset value, beginning of period	$	12.57		$	12.03		$	12.00		$	11.60		$	10.82		$	10.51
Net investment income		0.15			0.34			0.41	3		0.10	3		0.41	3		0.39	3
Net realized and unrealized gains (losses) on investments		(0.04	)		0.56			0.17			0.43			0.88			0.36
Total from investment operations		0.11			0.90			0.58			0.53			1.29			0.75
Distributions to shareholders from
Net investment income		(0.14	)		(0.33	)		(0.46	)		(0.13	)		(0.51	)		(0.44	)
Net realized gains		(0.40	)		(0.03	)		(0.09	)		0.00			0.00			0.00
Total distributions to shareholders		(0.54	)		(0.36	)		(0.55	)		(0.13	)		(0.51	)		(0.44	)
Net asset value, end of period	$	12.14		$	12.57		$	12.03		$	12.00		$	11.60		$	10.82
Total return4		0.85	%		7.62	%		5.04	%		4.71	%		12.06	%		7.29	%
Ratios to average net assets (annualized)
Gross expenses		0.55	%		0.56	%		0.55	%		0.59	%		0.68	%		0.69	%
Net expenses		0.55	%		0.56	%		0.55	%		0.56	%		0.61	%		0.61	%
Net investment income		2.23	%		2.74	%		3.53	%		3.36	%		3.58	%		4.29	%
Supplemental data
Portfolio turnover rate		127	%		256	%		215	%		84	%		187	%		455	%
Net assets, end of period (000s omitted)		$28,918			$161,191			$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.

24 Wells Fargo Advantage Income Plus Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2013 (unaudited)			Year ended August 31									Year ended May 31
INVESTOR CLASS				2012			2011			20101			2010			20092
Net asset value, beginning of period	$	12.57		$	12.03		$	12.00		$	11.60		$	10.82		$	10.51
Net investment income		0.12			0.30			0.37	3		0.09	3		0.37	3		0.36	3
Net realized and unrealized gains (losses) on investments		(0.04	)		0.56			0.17			0.43			0.88			0.36
Total from investment operations		0.08			0.86			0.54			0.52			1.25			0.72
Distributions to shareholders from
Net investment income		(0.12	)		(0.29	)		(0.42	)		(0.12	)		(0.47	)		(0.41	)
Net realized gains		(0.40	)		(0.03	)		(0.09	)		0.00			0.00			0.00
Total distributions to shareholders		(0.52	)		(0.32	)		(0.51	)		(0.12	)		(0.47	)		(0.41	)
Net asset value, end of period	$	12.13		$	12.57		$	12.03		$	12.00		$	11.60		$	10.82
Total return4		0.61	%		7.25	%		4.67	%		4.52	%		11.79	%		6.99	%
Ratios to average net assets (annualized)
Gross expenses		0.93	%		0.91	%		0.90	%		0.97	%		1.07	%		1.08	%
Net expenses		0.89	%		0.90	%		0.90	%		0.92	%		0.94	%		0.94	%
Net investment income		1.93	%		2.40	%		3.14	%		3.00	%		3.25	%		3.94	%
Supplemental data
Portfolio turnover rate		127	%		256	%		215	%		84	%		187	%		455	%
Net assets, end of period (000s omitted)		$189,803			$195,346			$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.

Notes to financial statements (unaudited) Wells Fargo Advantage Income Plus 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 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

All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (normally 4 p.m. Eastern Time).

Fixed income securities acquired with maturities exceeding 60 days are valued based on evaluated bid prices received from an independent pricing service 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 independent pricing service or values received are deemed not representative of market value, values will be obtained from a broker-dealer or otherwise determined based on the Fund’s Valuation Procedures.

Debt securities of sufficient credit quality acquired with 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 registered open-end investment companies are valued at net asset value. Non-registered investment companies are fair 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. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Management Valuation Team of Wells Fargo Funds Management, LLC (“Funds Management”). The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Management Valuation Team which may include items for ratification.

Valuations of fair valued securities are compared to the next actual sales price when available, or other appropriate market information to assess the continued appropriateness of the fair valuation methodology used. These securities are fair valued on a day-to-day basis, taking into consideration changes to appropriate market information and any significant changes to the input factors considered in the valuation process until there is a readily available price provided on the exchange or by an independent pricing service. Valuations received from an independent pricing service or broker quotes are periodically validated by comparisons to most recent trades and valuations provided by other independent pricing services in addition to the review of prices by the adviser and/or subadviser. Unobservable inputs used in determining fair valuations are identified based on the type of security, taking into consideration factors utilized by market participants in valuing the investment, knowledge about the issuer and the current market environment.

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

26 Wells Fargo Advantage Income Plus Fund Notes to financial statements (unaudited)

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 Funds Management and is subadvised by Wells Capital Management Incorporated (“WellsCap”). 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 WellsCap for its services as subadviser. 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 in an amount at least equal in value to the Fund’s commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.

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 recorded on the basis of identified cost.

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 paid monthly. Distributions from net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in conformity with federal income tax regulations, which may differ in amount or character from net investment income and realized gains recognized for purposes of U.S. generally accepted accounting principles.

Federal and other taxes

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

Notes to financial statements (unaudited) Wells Fargo Advantage Income Plus 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. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

As of August 31, 2012, the Fund had pre-enactment net capital loss carryforwards incurred in taxable years beginning before December 22, 2010, which were available to offset future net realized capital gains, in the amount of $39,684,982 with $7,824,050 expiring in 2015, $21,588,119 expiring in 2016, and $10,272,813 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 any 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, use of amortized cost, etc.)

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

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

As of February 28, 2013, the inputs used in valuing investments in securities, 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	$	183,653,411	$	0	$	183,653,411
Asset-backed securities		0		6,728,036		0		6,728,036
Corporate bonds and notes		0		140,896,532		0		140,896,532
Municipal obligations		0		8,869,510		0		8,869,510
Non-agency mortgage backed securities		0		23,846,599		0		23,846,599
U.S. Treasury securities		192,014,739		0		0		192,014,739
Yankee corporate bonds and notes		0		48,703,107		0		48,703,107
Short-term investments
Investment companies		81,749,329		1,557,500		0		83,306,829
U.S. Treasury securities		299,990		0		0		299,990
	$	274,064,058	$	414,254,695	$	0	$	688,318,753

28 Wells Fargo Advantage Income Plus Fund Notes to financial statements (unaudited)

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

As of February 28, 2013, 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+	$	(6,359	)	$	0	$	0	$	(6,359	)

+ 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 28, 2013, the Fund did not have any transfers into/out of Level 1 or Level 2.

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 subadviser, 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 28, 2013, 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 a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. WellsCap, an affiliate of Funds Management, is the subadviser 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 December 31, 2013 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.87% for Class A shares, 1.62% for Class B shares, 1.62% for Class C shares, 0.72% for Administrator Class shares, 0.58% for Institutional Class, and 0.88% 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 28, 2013, Wells Fargo Funds Distributor, LLC received $7,843 from the sale of Class A shares and $18 and $156 in contingent deferred sales charges from redemptions of Class B and Class C shares, respectively.

Notes to financial statements (unaudited) Wells Fargo Advantage Income Plus Fund 29

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, for the six months ended February 28, 2013 were as follows:

Purchases at cost		Sales proceeds
U.S. government	Non-U.S. government	U.S. government	Non-U.S. government
$775,272,074	$55,441,725	$845,366,698	$114,717,879

6. DERIVATIVE TRANSACTIONS

During the six months ended February 28, 2013, the Fund entered into futures contracts to speculate on interest rates and to help shorten or lengthen the duration of the portfolio.

At February 28, 2013, the Fund had long and short futures contracts outstanding as follows:

Expiration date	Contracts	Type	Contract value at February 28, 2013		Unrealized gains (losses)
6-19-2013	26 Short	30-Year U.S. Treasury Bonds	$	3,738,313	$	(32,955	)
6-28-2013	109 Long	5-Year U.S. Treasury Notes		13,514,297		28,488
6-28-2013	17 Short	2-Year U.S. Treasury Notes		3,747,969		(1,892	)

The Fund had an average notional amount of $20,168,116 and $21,639,854 in long and short futures contracts, respectively, during the six months ended February 28, 2013.

On February 28, 2013, the cumulative unrealized losses on futures contracts in the amount of $6,359 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 gains and change in unrealized gains or losses on futures contracts are reflected in the Statement of Operations.

7. CAPITAL SHARES

As a result of the transfer of assets from Funds Management, former program manager of the 529 college savings plans for the State of Wisconsin, to a new program manager, the Fund redeemed assets from its Institutional Class on October 26, 2012 with a value of $124,518,442, representing 17.12% of the Fund. This amount is reflected in the Statement of Changes in Net Assets for the six months ended February 28, 2013.

8. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds in the Trust) 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. For the six months ended February 28, 2013, the Fund paid $454 in commitment fees.

For the six months ended February 28, 2013, there were no borrowings by the Fund under the agreement.

30 Wells Fargo Advantage Income Plus Fund Notes to financial statements (unaudited)

9. INDEMNIFICATION

Under the Trust’s organizational documents, the officers and directors are indemnified against certain liabilities that may arise out of performance of their duties to the Trust. Additionally, in the normal course of business, the Trust may enter into contracts with service providers that contain a variety of indemnification clauses. The Trust’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated.

10. NEW ACCOUNTING PRONOUNCEMENT

In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2011-11, Disclosures about Offsetting Assets and Liabilities. ASU 2011-11, which amends FASB ASC Topic 210, Balance Sheet, creates new disclosure requirements which require entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently assessing the potential impact, in addition to expanded financial statement disclosure, that may result from adopting this ASU.

11. SUBSEQUENT DISTRIBUTIONS

On March 25, 2013, the Fund declared distributions from net investment income to shareholders of record on March 22, 2013. The per share amounts payable on March 26, 2013 were as follows:

	Net investment income
Class A	$	0.01934
Class B		0.01201
Class C		0.01214
Administrator Class		0.02062
Institutional Class		0.02204
Investor Class		0.01924

On April 24, 2013, the Fund declared distributions from net investment income to shareholders of record on April 23, 2013. The per share amounts payable on April 25, 2013 were as follows:

	Net investment income
Class A	$	0.02318
Class B		0.01472
Class C		0.01486
Administrator Class		0.02484
Institutional Class		0.02640
Investor Class		0.02308

These distributions are not reflected in the accompanying financial statements.

Other information (unaudited) Wells Fargo Advantage Income Plus 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 website at wellsfargoadvantagefunds.com, or visiting the SEC website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge on the Fund’s website at wellsfargoadvantagefunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available on the Fund’s website (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 website 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 website at sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at 233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

32 Wells Fargo Advantage Income Plus Fund Other information (unaudited)

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers listed in the table below acts in identical capacities for the Wells Fargo Advantage family of funds, which consists of 135 funds¹ comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information². 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	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. Advisory Board Member, Palm Coast Academy (charter school). Mr. Harris is a certified public accountant.	CIGNA Corporation; Deluxe Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, 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 48 portfolios as of 1/31/2013); 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, Morgan Stanley Director of the Center for Leadership Development and Research 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
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

Other information (unaudited) Wells Fargo Advantage Income Plus 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
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.	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 Tree Trust (non-profit corporation). Director of the American Chestnut Foundation (non-profit corporation).	Asset Allocation Trust

* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.

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.
Nancy Wiser1 (Born 1967)	Treasurer, since 2012	Executive Vice President of Wells Fargo Funds Management, LLC since 2011. Chief Operating Officer and Chief Compliance Officer at LightBox Capital Management LLC, from 2008 to 2011. Owned and operated a consulting business providing services to various hedge funds including acting as Chief Operating Officer and Chief Compliance Officer for a hedge fund from 2007 to 2008. Chief Operating Officer and Chief Compliance Officer of GMN Capital LLC from 2006 to 2007.
C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Officer, since 2003	Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001. Vice President and Managing Counsel of Wells Fargo Bank, N.A. since 1996.
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.
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 DePalma1 (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.

1. Nancy Wiser acts as Treasurer of 74 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 61 funds and Assistant Treasurer of 74 funds in the Fund Complex.

2. 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 website at wellsfargoadvantagefunds.com.

34 Wells Fargo Advantage Income Plus Fund List of abbreviations

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian 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

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

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

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 depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Industrial development revenue

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

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

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

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

SPA —  Standby purchase agreement

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

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

For more information

More information about Wells Fargo Advantage Funds is available free upon request. To obtain literature, please write, email, visit the Fund’s website, or call:

Wells Fargo Advantage Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: wfaf@wellsfargo.com

Website: 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 current prospectus and, if available, a summary prospectus containing more complete information, including charges and expenses, call 1-800-222-8222 or visit the Fund’s website 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

© 2013 Wells Fargo Funds Management, LLC. All rights reserved.

215348 04-13 SA219/SAR219 2-13

Wells Fargo Advantage

Short Duration Government Bond Fund

Semi-Annual Report

February 28, 2013

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	4
Fund expenses	6
Portfolio of investments	7
Financial statements
Statement of assets and liabilities	12
Statement of operations	13
Statement of changes in net assets	14
Financial highlights	15
Notes to financial statements	21
Other information	26
List of abbreviations	29

The views expressed and any forward-looking statements are as of February 28, 2013, 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 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 the 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 the investment objectives, risks, charges, and expenses before investing. For a current prospectus and, if available, a summary prospectus, for Wells Fargo Advantage Funds, 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, 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 $225 billion in assets under management, as of February 28, 2013.

Equity funds
Asia Pacific Fund	Enterprise Fund†	Opportunity Fund†
C&B Large Cap Value Fund	Global Opportunities Fund	Precious Metals Fund
C&B Mid Cap Value Fund	Growth Fund	Premier Large Company Growth Fund
Capital Growth Fund	Index Fund	Small Cap Opportunities Fund
Common Stock Fund	International Equity Fund	Small Cap Value Fund
Disciplined U.S. Core Fund	International Value Fund	Small Company Growth Fund
Discovery Fund†	Intrinsic Small Cap Value Fund	Small Company Value Fund
Diversified Equity Fund	Intrinsic Value Fund	Small/Mid Cap Value Fund
Diversified International Fund	Intrinsic World Equity Fund	Special Mid Cap Value Fund
Emerging Growth Fund	Large Cap Core Fund	Special Small Cap Value Fund
Emerging Markets Equity Fund	Large Cap Growth Fund	Specialized Technology Fund
Emerging Markets Equity Income Fund	Large Company Value Fund	Traditional Small Cap Growth Fund
Endeavor Select Fund†	Omega Growth Fund	Utility and Telecommunications Fund
Bond funds
Adjustable Rate Government Fund	High Yield Municipal Bond Fund	Short Duration Government Bond Fund
California Limited-Term Tax-Free Fund	Income Plus Fund	Short-Term Bond Fund
California Tax-Free Fund	Inflation-Protected Bond Fund	Short-Term High Yield Bond Fund
Colorado Tax-Free Fund	Intermediate Tax/AMT-Free Fund	Short-Term Municipal Bond Fund
Core Bond Fund	International Bond Fund	Strategic Income Fund
Emerging Markets Local Bond Fund	Minnesota Tax-Free Fund	Strategic Municipal Bond Fund
Government Securities Fund	Municipal Bond Fund	Ultra Short-Term Income Fund
High Income Fund	North Carolina Tax-Free Fund	Ultra Short-Term Municipal Income Fund
High Yield Bond Fund	Pennsylvania Tax-Free 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	Treasury Plus Money Market Fund
Cash Investment Money Market Fund	Municipal Cash Management 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 (unaudited)

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Fixed-income performance was best among lower-rated corporate bonds and commercial mortgage-backed securities, as continued monetary accommodation from the U.S. Federal Reserve strengthened the demand for securities with higher yields.

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

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 28, 2013. During the period, fixed-income performance was best among lower-rated corporate bonds and commercial mortgage-backed securities (CMBS), as continued monetary accommodation from the U.S. Federal Reserve (Fed) strengthened the demand for securities with higher yields. However, the longest-maturity segments of the fixed-income market generally underperformed the mid-maturity and short-maturity segments because longer-maturity U.S. Treasury yields shifted higher, most notably in January 2013, thereby influencing a decline in the prices of longer-maturity fixed-income securities.

Credit sectors rallied for much of the second half of 2012, outperforming U.S. Treasuries.

As policymaking in Europe during the summer months of 2012 began to reassure global credit markets that the euro would likely survive and that all appropriate measures would be taken to bolster European debt markets, lower-rated securities in the U.S. once again rallied in price, significantly outpacing the returns from U.S. Treasuries. Corporate bonds and CMBS were once again the best-performing sectors of the core fixed income markets from August 2012 through the end of the year, as they had been before the European credit crisis escalated in the spring.

In December 2012, the Fed reaffirmed its commitment to highly accommodative monetary policy, citing its dual mandate of fostering maximum employment and price stability. For the first time since the financial crisis began in 2008, the Fed formally announced specific target ranges that could trigger a change to its highly accommodative monetary policy, most notably that exceptionally low interest rates would be appropriate at least as long as the unemployment rate remained above 6.5% and inflation expectations were no more than half a percentage point above its 2.0% inflation target. These thresholds were the first official measures of when and how a change to monetary policy may take effect.

U.S. Treasury yields shift significantly higher in January 2013.

With growing confidence in the U.S. economy and improving stability in the European credit markets, longer-maturity U.S. Treasury yields began to shift significantly higher in January 2013. The yield on the 10-year U.S. Treasury note ratcheted higher to 2.00% in January 2013, after finishing 2012 at 1.75% and reaching a modern-era record low of 1.41% in late July 2012. The 30-year U.S. Treasury bond finished the period at a yield of 3.09%, up from 2.58% at the start of the period. Thus, during the period, longer-maturity securities felt the pressure of yields shifting higher, which eroded some of their pricing. The best-performing sections of the yield curve were generally in the five- to 10-year range, which benefited from relatively adequate yields while remaining mostly insulated from the price erosion in maturities of 10 years and longer.

Despite this persistent trend toward higher yields during the final three months of the period, which chipped away at some security prices, several areas of the taxable fixed income markets continued to generate relatively compelling returns, considering the extraordinarily low level of interest rates. Spreads in the corporate bond sector continued to tighten while U.S. Treasury yields shifted higher, thus providing some protection against price erosion. CMBS spreads also tightened during the period resulting in some of the strongest six-month returns in the taxable investment-grade sectors. Within the Barclays U.S. Aggregate Bond Index¹, the CMBS sector returned 2.35% during the six-month period, the corporate sector returned 1.64%, and the U.S.

Letter to shareholders (unaudited) Wells Fargo Advantage Short Duration Government Bond Fund 3

Treasury sector returned (0.67)%. The lower-rated credit tiers continued to outperform each respectively higher credit tier during the period, despite the rising yield influence in the longest maturities.

Overall, the theme for the six-month period in the U.S. fixed income markets was relatively strong performance from the corporate and CMBS sectors, particularly in the lower-rated credit tiers, with a protracted decline in prices of U.S. Treasuries. On the whole, most credit-related sectors generated relatively generous returns during the six-month period considering the extraordinarily low level of interest rates. However, the trend from previous periods of strong performance from longer-maturity securities began to unwind in January and February 2013. During this period, credit risks were rewarded better than interest rate risks, meaning that higher-yield compensation from lower-rated securities performed better than higher-yield compensation from longer-maturity securities, which experienced price pressures. Investment strategies that focused on mid- to lower-rated credit tiers and mid-maturity securities generally saw the strongest returns during the period.

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.

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 website 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

Most credit-related sectors generated relatively generous returns during the six-month period considering the extraordinarily low level of interest rates.

Notice to shareholders

At its November 6-7, 2012 meeting, the Board of Trustees unanimously approved the following modifications to certain Class A sales load waiver privileges, with each change becoming effective on July 1, 2013:

n Annuity payments received under an annuity option or from death proceeds will no longer qualify for net asset value (NAV) repurchase privileges.

n The ability to reinvest redemption proceeds at NAV will be reduced from 120 days to 90 days.

n NAV purchase privileges for certain types of “grandfathered” shareholders will be modified to remove the ability to purchase Class A shares at NAV, unless those shares are held directly with the Fund.

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

4 Wells Fargo Advantage Short Duration Government Bond Fund Performance highlights (unaudited)

Investment objective

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

Adviser

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Troy Ludgood

Thomas O’Connor, CFA

Average annual total returns¹ (%) as of February 28, 2013

		Including sales charge							Excluding sales charge						Expense ratios2 (%)
	Inception date	1 year			5 year		10 year		1 year		5 year		10 year		Gross		Net3
Class A (MSDAX)	3-11-1996		(0.74	)		2.79		2.92		1.29		3.21		3.13		0.82		0.79
Class B (MSDBX)*	5-31-2002		(2.45	)		2.59		2.83		0.55		2.59		2.83		1.57		1.54
Class C (MSDCX)	5-31-2002		(0.37	)		2.45		2.36		0.63		2.45		2.36		1.57		1.54
Class R6 (MSDRX)	11-30-2012		–			–		–		1.99		3.70		3.57		0.44		0.38
Administrator Class (MNSGX)	12-18-1992		–			–		–		1.61		3.47		3.40		0.76		0.61
Institutional Class (WSGIX)	4-8-2005		–			–		–		1.79		3.66		3.55		0.49		0.43
Barclays 1-3 Year U.S. Government Bond Index4	–		–			–		–		0.58		1.97		2.80		–		–

* 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 website, 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 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. Class R6, Administrator Class, and Institutional Class shares are sold without a front-end sales charge or contingent deferred sales charge.

Bond 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 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). The 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.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Advantage Short Duration Government Bond Fund 5

Ten largest long-term holdings5 (%) as of February 28, 2013
U.S. Treasury Note, 0.38%, 1-15-2016	10.32
U.S. Treasury Note, 1.75%, 3-31-2014	6.86
U.S. Treasury Note, 0.50%, 11-15-2013	6.42
FNMA, 5.50%, 12-1-2041	6.32
U.S. Treasury Note, 0.25%, 2-28-2014	4.71
FNMA, 5.00%, 2-1-2040	3.99
FNMA, 5.50%, 8-1-2040	3.40
U.S. Treasury Note, 0.38%, 2-15-2016	2.49
FNMA, 6.00%, 8-1-2037	2.35
FNMA, 5.50%, 5-25-2040	1.86

Portfolio allocation⁶ as of February 28, 2013

1. 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 Class R6 shares prior to its inception reflects the performance of the Institutional Class shares and includes the higher expenses applicable to the Institutional Class shares. If these expenses had not been included, returns would be higher. 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.

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

3. The Adviser has committed through December 31, 2014, 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 0.78% for Class A, 1.53% for Class B, 1.53% for Class C, 0.37% for Class R6, 0.60% for Administrator Class, and 0.42% for Institutional Class. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the cap. Without this cap, the Fund’s returns would have been lower.

4. 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.

5. 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.

6. 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 Fund expenses (unaudited)

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, 2012 to February 28, 2013.

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 9-1-2012		Ending account value 2-28-2013		Expenses paid during the period1		Net annual expense ratio
Class A
Actual	$	1,000.00	$	1,002.63	$	4.02		0.81	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.78	$	4.06		0.81	%
Class B
Actual	$	1,000.00	$	998.93	$	7.73		1.56	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.06	$	7.80		1.56	%
Class C
Actual	$	1,000.00	$	998.92	$	7.73		1.56	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.06	$	7.80		1.56	%
Class R6
Actual	$	1,000.00	$	1,007.49	$	1.84		0.37	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.96	$	1.86		0.37	%
Administrator Class
Actual	$	1,000.00	$	1,004.63	$	2.98		0.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.82	$	3.01		0.60	%
Institutional Class
Actual	$	1,000.00	$	1,005.53	$	2.09		0.42	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.71	$	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).

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Short Duration Government Bond Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities: 49.74%
FHLMC ±		2.58	%		11-1-2042	$	5,329,975	$	5,571,762
FHLMC ±		2.73			6-1-2042		3,037,823		3,179,335
FHLMC ±		2.90			7-1-2042		5,448,836		5,722,773
FHLMC ±		3.03			9-1-2042		1,547,080		1,621,322
FHLMC ±		3.07			10-1-2042		1,537,551		1,610,026
FHLMC ±		3.11			7-1-2042		3,130,031		3,275,632
FHLMC		3.50			9-1-2032		13,012,062		14,011,929
FHLMC ±		3.56			8-1-2041		1,822,055		1,927,584
FHLMC ±		3.62			10-1-2041		8,577,882		8,976,020
FHLMC		5.50			7-1-2041		2,209,982		2,569,055
FHLMC ±		5.86			7-1-2038		12,148,619		13,068,778
FHLMC		6.00			2-1-2035		3,294,149		3,707,973
FHLMC		6.00			5-15-2039		7,364,520		8,171,362
FHLMC ±		6.05			6-1-2037		2,373,410		2,567,439
FHLMC		6.50			11-1-2037		1,413,566		1,586,343
FHLMC		6.50			12-1-2038		2,721,273		2,998,017
FHLMC		7.00			5-1-2035		3,685,899		4,364,132
FHLMC		7.00			3-25-2044		2,469,901		2,835,227
FHLMC Series 3035 Class PA		5.50			9-15-2035		3,104,652		3,459,123
FHLMC Series 3704 Class CT		7.00			12-15-2036		3,564,022		4,318,087
FHLMC Series T-11 Class A8		6.50			1-25-2028		2,302,234		2,621,356
FHLMC Series T-57 Class 1A3		7.50			7-25-2043		501,194		580,465
FHLMC Series T-59 Class 1A3		7.50			10-25-2043		207,802		238,575
FHLMC Series T-60 Class 1A3		7.50			3-25-2044		77,122		91,349
FHLMC Structured Pass-Through Securities Series T-41 Class 3A ±		6.70			7-25-2032		156,245		176,777
FHLMC Structured Pass-Through Securities Series T-51 Class 2A ±		7.50			8-25-2042		2,267,260		2,656,423
FHLMC Structured Pass-Through Securities Series T-55 Class 1A2		7.00			3-25-2043		723,336		822,997
FNMA ±		2.24			1-1-2043		4,348,470		4,516,404
FNMA ±		2.48			11-1-2042		4,422,568		4,619,454
FNMA ±		2.50			2-1-2043		4,625,218		4,782,208
FNMA ±		2.56			1-1-2043		5,923,273		6,141,878
FNMA ±		2.69			6-1-2042		4,464,626		4,672,140
FNMA ±		2.80			12-1-2042		1,548,897		1,620,603
FNMA ±		2.83			11-1-2042		1,553,708		1,625,606
FNMA ±		2.94			3-1-2042		901,015		946,261
FNMA ±		2.94			4-1-2042		2,604,270		2,738,617
FNMA ±		2.94			10-1-2042		1,982,847		2,077,432
FNMA ±		2.94			12-1-2041		3,407,788		3,560,100
FNMA ±		3.04			10-1-2041		1,602,719		1,681,018
FNMA ±		3.12			6-1-2042		4,399,606		4,607,189
FNMA ±		3.13			6-1-2042		3,282,816		3,439,617
FNMA ±%%		3.23			3-1-2042		9,744,020		10,456,551
FNMA ±		3.32			11-1-2041		8,019,747		8,443,238
FNMA ±		3.34			12-1-2041		3,573,356		3,760,463
FNMA ±		3.35			7-1-2041		13,145,582		13,848,759
FNMA ±		3.42			10-1-2041		3,676,983		3,879,212
FNMA		3.50			9-1-2032		8,490,949		9,129,287
FNMA ±		3.53			10-1-2041		9,120,273		9,628,964
FNMA ±		3.55			7-1-2041		5,122,106		5,427,937
FNMA ±		3.62			9-1-2041		12,141,901		12,820,225

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

8 Wells Fargo Advantage Short Duration Government Bond Fund Portfolio of investments—February 28, 2013 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA ±		3.63	%		7-1-2041	$	7,640,913	$	8,068,696
FNMA ±		3.69			7-1-2041		2,955,264		3,127,264
FNMA		5.00			2-1-2038		2,487,726		2,817,294
FNMA		5.00			3-1-2039		3,720,847		4,213,776
FNMA		5.00			2-1-2040		56,265,610		63,719,544
FNMA		5.00			2-1-2040		6,888,297		7,800,843
FNMA		5.00			3-1-2042		15,059,964		16,923,297
FNMA		5.50			2-1-2038		7,533,295		8,472,434
FNMA		5.50			4-1-2038		5,772,962		6,492,650
FNMA		5.50			5-25-2040		25,960,769		29,736,633
FNMA		5.50			8-1-2040		48,335,882		54,361,681
FNMA		5.50			8-1-2041		5,111,525		5,870,204
FNMA		5.50			12-1-2041		89,155,221		100,938,432
FNMA		6.00			3-25-2035		1,821,000		2,014,729
FNMA		6.00			7-1-2036		3,958,000		4,633,046
FNMA		6.00			8-1-2037		33,380,073		37,588,347
FNMA		6.00			10-1-2038		14,524,717		16,355,868
FNMA		6.00			6-1-2041		14,142,000		16,515,364
FNMA		6.50			8-1-2037		15,795,759		17,824,175
FNMA		6.50			6-1-2038		15,213,979		17,492,314
FNMA		6.50			8-1-2039		11,145,890		12,545,845
FNMA		6.50			2-1-2041		3,730,568		4,199,138
FNMA		7.00			4-1-2035		2,788,752		3,327,516
FNMA		7.00			2-25-2042		12,999,348		14,514,227
FNMA		7.50			7-1-2029		585,749		709,326
FNMA		7.50			7-1-2032		346,964		416,409
FNMA Grantor Trust Series 2000-T6 Class A1		7.50			6-25-2030		793,453		932,953
FNMA Grantor Trust Series 2001-T1 Class A1		7.50			10-25-2040		3,869,022		4,466,914
FNMA Grantor Trust Series 2001-T16 Class A2		7.00			7-25-2042		328,963		386,988
FNMA Grantor Trust Series 2001-T3 Class A1		7.50			11-25-2040		849,297		966,843
FNMA Series 1999-T2 Class A1 ±		7.50			1-19-2039		524,758		591,700
FNMA Series 2001-T08 Class A1		7.50			7-25-2041		1,001,619		1,093,945
FNMA Series 2001-T4 Class A1		7.50			7-25-2041		114,397		136,330
FNMA Series 2001-W03 Class A ±		7.00			9-25-2041		921,998		1,089,436
FNMA Series 2002-14 Class A2		7.00			1-25-2042		810,371		932,823
FNMA Series 2002-14 Class A2		7.50			1-25-2042		1,739,790		2,061,855
FNMA Series 2002-26 Cass A2		7.50			1-25-2048		2,002,720		2,317,424
FNMA Series 2002-26 Class A1		7.00			1-25-2048		1,094,953		1,265,321
FNMA Series 2002-33 Class A2		7.50			6-25-2032		267,227		327,721
FNMA Series 2002-80 Class A1		6.50			11-25-2042		1,735,724		1,949,173
FNMA Series 2002-90 Class A1		6.50			6-25-2042		31,698		37,325
FNMA Series 2002-T12 Class A3		7.50			5-25-2042		4,242,398		5,119,739
FNMA Series 2002-W1 Class 2A ±		6.92			2-25-2042		684,090		798,630
FNMA Series 2002-W6 Class 2A1 ±		6.59			6-25-2042		14,645		16,576
FNMA Series 2003-W1 Class 2A ±		6.90			12-25-2042		357,500		426,906
FNMA Series 2003-W12 Class 1A8		4.55			6-25-2043		5,106,624		5,825,555
FNMA Series 2003-W2 Class 1A1		6.50			7-25-2042		21,878		26,276
FNMA Series 2003-W4 Class 4A ±		7.19			10-25-2042		1,019,734		1,211,428
FNMA Series 2004-W02 Class 5A		7.50			3-25-2044		199,406		244,480
FNMA Series 2004-W8 Class 3A		7.50			6-25-2044		1,691,868		2,000,279

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

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Short Duration Government Bond Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA Series 2004-W9 Class 1A3		6.05	%		2-25-2044	$	5,715,007	$	6,341,554
FNMA Series 2004-W9 Class 2A3		7.50			2-25-2044		1,044,271		1,246,863
FNMA Series 2005-W3 Class 1A		7.50			3-25-2045		314,519		372,423
FNMA Series 2006-114 Class PD		6.00			12-25-2036		5,688,231		6,401,296
FNMA Series 2009-14 Class A		7.00			6-25-2035		2,587,336		2,943,737
FNMA Series 2010-111 Class WA ±		6.04			10-25-2040		1,315,188		1,530,999
FNMA Series 2010-71 Class HJ		5.50			7-25-2040		1,592,105		1,822,485
FNMA Series 2011-M2 Class A1		2.02			7-25-2021		4,472,072		4,606,462
FNMA Series 2012-28 Class PT		4.00			3-25-2042		15,709,119		16,515,483
FNMA Whole Loan Series 2002-W8 Class A3		7.50			6-25-2042		150,645		171,792
FNMA Whole Loan Series 2004-W11 Class 1A2		6.50			5-25-2044		6,248,436		7,288,538
FNMA Whole Loan Series 2004-W14 Class 2A		7.50			7-25-2044		177,947		206,017
FNMA Whole Loan Series 2005-W1 Class 1A4		7.50			10-25-2044		505,709		585,559
GNMA		6.00			9-15-2035		14,510,802		16,537,486
GNMA Series 2002-47 Class PY		6.00			7-20-2032		3,765,300		4,326,462
GNMA Series 2009-42 Class CT		6.00			8-16-2035		1,837,825		2,105,725
Total Agency Securities (Cost $793,692,921)									795,061,577
Asset-Backed Securities: 12.42%
Ally Master Owner Trust Series 2010-2 Class A 144A		4.25			4-15-2017		7,515,000		8,058,041
Ally Master Owner Trust Series 2012-1 Class A1 ±		1.00			2-15-2017		7,620,000		7,680,495
Ally Master Owner Trust Series 2012-3 Class A1 ±		0.90			6-15-2017		8,061,000		8,118,685
Ally Master Owner Trust Series 2013-1 Class A1 ±		0.65			2-15-2018		3,763,000		3,763,000
American Express Credit Account Master Trust Series 2012-3 Class A ±		0.35			3-15-2018		3,106,000		3,108,354
American Express Credit Account Master Trust Series 2012-4 Class A ±		0.44			5-15-2020		17,302,000		17,293,955
AmeriCredit Automobile Receivables Trust Series 2012-4 Class A2		0.49			4-8-2016		7,248,000		7,251,472
Chase Issuance Trust Series 2012-A10 Class A10 ±		0.46			12-16-2019		3,788,000		3,788,000
Developers Diversified Realty Corporation Trust Series 2009-DDR1 Class A 144A		3.81			10-14-2022		8,583,962		8,926,042
Discover Card Master Trust I Series 2013-A1 Class A1 ±		0.50			8-17-2020		7,575,000		7,575,000
Ford Credit Floorplan Master Trust Series 2012-4 Class A2 ±		0.55			9-15-2016		5,364,000		5,365,674
Greenwich Capital Commercial Funding Corporation Series 2005-GGS Class A4 ±		5.24			4-10-2037		8,210,000		8,207,028
Hertz Vehicle Financing LLC Series 2013-1A Class A1 144A		1.12			8-25-2017		22,438,000		22,523,848
MMCA Automobile Trust Series 2009-A Class A4 144A		6.25			11-16-2015		804,397		812,408
Nelnet Student Loan Trust Series 2006-2 Class A4 ±		0.38			10-26-2026		13,308,849		13,286,756
Nelnet Student Loan Trust Series 2007-1 Class A1 ±		0.30			11-27-2018		1,675,625		1,673,625
Santander Drive Auto Receivables Series 2012-5 Class A2		0.57			12-15-2015		5,241,986		5,246,588
Santander Drive Auto Receivables Series 2012-5 Class A3		0.83			12-15-2016		1,850,000		1,857,450
SLM Student Loan Trust Series 2002-6 Class A4 ±		0.44			3-15-2019		1,982,345		1,982,524
SLM Student Loan Trust Series 2004-8A Class A5 ±144A		0.80			4-25-2024		7,526,000		7,555,785
SLM Student Loan Trust Series 2005-6 Class A5 ±		1.50			7-27-2026		1,090,000		1,118,122
SLM Student Loan Trust Series 2008-4 Class A3 ±		1.55			10-25-2017		3,358,000		3,437,195
SLM Student Loan Trust Series 2008-9 Class A ±		1.80			4-25-2023		5,971,204		6,210,416
SLM Student Loan Trust Series 2010-1 Class A ±		0.60			3-25-2025		2,690,641		2,702,380
SLM Student Loan Trust Series 2011-B Class A4 ±144A		1.05			12-16-2024		4,081,267		4,106,093
SLM Student Loan Trust Series 2011-C Class A1 ±144A		1.60			12-15-2023		4,053,617		4,104,023
SLM Student Loan Trust Series 2012-C Class A1 ±144A		1.30			8-15-2023		6,983,119		7,051,694
SLM Student Loan Trust Series 2012-E Class A1 ±144A		0.95			10-16-2023		4,847,941		4,871,279
SLM Student Loan Trust Series 2012-E Class A2 ±144A		1.95			6-15-2045		3,636,000		3,737,808
SLM Student Loan Trust Series 2013-1 Class A2 ±		0.45			9-25-2019		17,053,000		17,063,931
Total Asset-Backed Securities (Cost $198,468,495)									198,477,671

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

10 Wells Fargo Advantage Short Duration Government Bond Fund Portfolio of investments—February 28, 2013 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage Backed Securities: 3.75%
Bank of America Commercial Mortgage Trust Series 2004-6 Class A3		4.51	%		12-10-2042	$	529,352	$	534,327
CFCRE Commercial Mortgage Trust Series 2011-C1 Class A1 144A		1.87			4-15-2044		3,810,677		3,876,427
CFCRE Commercial Mortgage Trust Series 2011-C2 Class A1		1.56			12-15-2047		2,885,102		2,922,242
Credit Suisse First Boston Mortgage Securities Corporation Series 2005-C1 Class A4 ±		5.01			2-15-2038		3,595,000		3,827,881
Credit Suisse First Boston Mortgage Securities Corporation Series 2005-C6 Class A4 ±		5.23			12-15-2040		4,463,859		4,864,062
DBUBS Mortgage Trust Series 2011 Class C2 144A		3.53			7-10-2044		4,908,657		5,356,086
DBUBS Mortgage Trust Series 2011-LC3A Class A1		2.24			8-10-2044		2,917,728		2,967,230
GS Mortgage Securities Corporation II Series 2010-C2 Class A1 144A		3.85			12-10-2043		7,793,858		8,414,514
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2010-CNTR Class A1 144A		3.30			8-5-2032		2,091,922		2,236,470
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2011-C3 Class A1 144A		1.87			2-15-2046		2,363,825		2,398,431
Lehman Brothers UBS Commercial Mortgage Trust Series 2004-C6 Class A6 ±		5.02			8-15-2029		4,578,000		4,772,643
Lehman Brothers UBS Commercial Mortgage Trust Series 2005-C7 Class A3 ±		5.45			11-15-2030		3,106,000		3,218,990
Merrill Lynch Mortgage Trust Series 2005-CIP1 Class A3A ±		4.95			7-12-2038		1,968,000		2,056,359
Morgan Stanley Capital I Trust Series 2011-C2 Class A1 144A		1.48			6-15-2044		5,564,893		5,627,381
Motel 6 Trust Series 2012-MTL6 Class A2 144A		1.95			10-5-2025		6,861,000		6,867,731
Total Non-Agency Mortgage Backed Securities (Cost $60,333,037)									59,940,774
U.S. Treasury Securities: 30.94%
U.S. Treasury Note		0.25			2-28-2014		75,148,000		75,203,760
U.S. Treasury Note		0.25			1-31-2015		2,304,000		2,304,539
U.S. Treasury Note «		0.38			1-15-2016		164,806,000		164,999,153
U.S. Treasury Note		0.38			2-15-2016		39,784,000		39,818,174
U.S. Treasury Note %%		0.50			11-15-2013		102,362,000		102,609,921
U.S. Treasury Note		1.75			3-31-2014		107,762,000		109,576,281
Total U.S. Treasury Securities (Cost $495,186,593)									494,511,828
Yankee Corporate Bonds and Notes: 2.96%
Financials: 2.96%
Commercial Banks: 2.33%
Australia and New Zealand Banking Group 144A		1.00			10-6-2015		8,720,000		8,783,656
Commonwealth Bank Australia 144A		0.75			1-15-2016		9,600,000		9,594,773
Westpac Banking Corporation 144A		1.38			7-17-2015		18,565,000		18,873,179
									37,251,608
Consumer Finance: 0.63%
Swedbank Hypotek AB 144A		2.38			4-5-2017		9,622,000		10,107,170
Total Yankee Corporate Bonds and Notes (Cost $46,920,305)									47,358,778

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

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Short Duration Government Bond Fund 11

Security name	Yield			Shares		Value
Short-Term Investments: 0.87%
Investment Companies: 0.87%
Wells Fargo Advantage Government Money Market Fund, Institutional Class (l)(u)##		0.01	%		8,765,542	$	8,765,542
Wells Fargo Securities Lending Cash Investments, LLC (l)(u)(r)(v)		0.18			5,113,000		5,113,000
Total Short-Term Investments (Cost $13,878,542)							13,878,542

Total investments in securities
(Cost $1,608,479,893) *	100.68	%		1,609,229,170
Other assets and liabilities, net	(0.68	)		(10,890,507	)
Total net assets	100.00	%	$	1,598,338,663

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

%% Security issued on a when-issued 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.

(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 Investment Company Act of 1940, as amended.

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

* Cost for federal income tax purposes is $1,610,030,849 and unrealized appreciation (depreciation) consists of:

Gross unrealized appreciation	$	7,434,498
Gross unrealized depreciation		(8,236,177	)
Net unrealized depreciation	$	(801,679)

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

12 Wells Fargo Advantage Short Duration Government Bond Fund Statement of assets and liabilities—February 28, 2013 (unaudited)

Assets
Investments
In unaffiliated securities (including securities on loan), at value (see cost below)	$	1,595,350,628
In affiliated securities, at value (see cost below)		13,878,542
Total investments, at value (see cost below)		1,609,229,170
Receivable for investments sold		62,680,507
Principal paydown receivable		1,489,131
Receivable for Fund shares sold		2,201,516
Receivable for interest		4,820,924
Receivable for securities lending income		2,890
Prepaid expenses and other assets		131,320
Total assets		1,680,555,458
Liabilities
Dividends payable		357,826
Payable for investments purchased		73,827,981
Payable for Fund shares redeemed		2,214,357
Payable upon receipt of securities loaned		5,113,000
Advisory fee payable		316,556
Distribution fees payable		43,842
Due to other related parties		179,762
Accrued expenses and other liabilities		163,471
Total liabilities		82,216,795
Total net assets	$	1,598,338,663
NET ASSETS CONSIST OF
Paid-in capital	$	1,605,762,117
Overdistributed net investment income		(9,641,563	)
Accumulated net realized gains on investments		1,468,832
Net unrealized gains on investments		749,277
Total net assets	$	1,598,338,663
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE1
Net assets – Class A	$	159,224,010
Shares outstanding – Class A		15,485,501
Net asset value per share – Class A		$10.28
Maximum offering price per share – Class A2		$10.49
Net assets – Class B	$	1,051,370
Shares outstanding – Class B		102,187
Net asset value per share – Class B		$10.29
Net assets – Class C	$	75,412,194
Shares outstanding – Class C		7,322,387
Net asset value per share – Class C		$10.30
Net assets – Class R6	$	50,257
Shares outstanding – Class R6		4,870
Net asset value per share – Class R6		$10.32
Net assets – Administrator Class	$	284,049,208
Shares outstanding – Administrator Class		27,582,279
Net asset value per share – Administrator Class		$10.30
Net assets – Institutional Class	$	1,078,551,624
Shares outstanding – Institutional Class		104,743,718
Net asset value per share – Institutional Class		$10.30
Investment in unaffiliated securities (including securities on loan), at cost	$	1,594,601,351
Investments in affiliated securities, at cost	$	13,878,542
Total investments, at cost	$	1,608,479,893
Securities on loan, at value	$	5,006,555

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 28, 2013 (unaudited) Wells Fargo Advantage Short Duration Government Bond Fund 13

Investment income
Interest*	$	12,084,474
Securities lending income, net		4,518
Income from affiliated securities		3,346
Total investment income		12,092,338
Expenses
Advisory fee		2,868,887
Administration fees
Fund level		402,131
Class A		126,520
Class B		878
Class C		59,881
Class R6		4	1
Administrator Class		147,605
Institutional Class		431,676
Shareholder servicing fees
Class A		197,687
Class B		1,373
Class C		93,565
Administrator Class		368,026
Distribution fees
Class B		4,117
Class C		280,693
Custody and accounting fees		43,505
Professional fees		18,852
Registration fees		43,845
Shareholder report expenses		52,959
Trustees’ fees and expenses		5,205
Other fees and expenses		15,599
Total expenses		5,163,008
Less: Fee waivers and/or expense reimbursements		(783,796	)
Net expenses		4,379,212
Net investment income		7,713,126
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments		6,675,259
Net change in unrealized gains (losses) on investments		(7,776,292	)
Net realized and unrealized gains (losses) on investments		(1,101,033	)
Net increase in net assets resulting from operations	$	6,612,093
* Net of foreign interest withholding taxes in the amount of		$ 4,118

1. For the period from November 30, 2012 (commencement of class operations) to February 28, 2013

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

14 Wells Fargo Advantage Short Duration Government Bond Fund Statement of changes in net assets

	Six months ended February 28, 2013 (unaudited)						Year ended August 31, 2012
Operations
Net investment income				$	7,713,126					$	19,536,092
Net realized gains on investments					6,675,259						12,318,715
Net change in unrealized gains (losses) on investments					(7,776,292	)					1,431,339
Net increase in net assets resulting from operations					6,612,093						33,286,146
Distributions to shareholders from
Net investment income
Class A					(1,503,924	)					(3,442,661	)
Class B					(6,327	)					(16,505	)
Class C					(429,252	)					(906,153	)
Class R6					(305	)1					N/A
Administrator Class					(3,093,528	)					(5,851,890	)
Institutional Class					(12,298,242	)					(24,436,244	)
Total distributions to shareholders					(17,331,578	)					(34,653,453	)
		Shares						Shares
Capital share transactions
Proceeds from shares sold
Class A		3,828,959			39,527,079			7,155,777			73,984,340
Class B		22,429			231,503			25,606			264,932
Class C		847,146			8,756,195			2,673,683			27,692,995
Class R6		4,841	1		50,097	1		N/A			N/A
Administrator Class		7,919,951			81,941,172			15,298,644			158,413,898
Institutional Class		33,872,809			350,443,306			76,921,309			796,991,960
					480,949,352						1,057,348,125
Reinvestment of distributions
Class A		136,185			1,404,302			275,532			2,849,487
Class B		562			5,797			1,432			14,819
Class C		38,203			394,682			74,950			776,467
Class R6		29	1		305	1		N/A			N/A
Administrator Class		242,271			2,503,442			448,917			4,649,987
Institutional Class		1,061,361			10,965,278			2,166,179			22,430,879
					15,273,806						30,721,639
Payment for shares redeemed
Class A		(4,643,197	)		(47,931,703	)		(6,979,415	)		(72,160,083	)
Class B		(28,461	)		(293,334	)		(68,256	)		(706,388	)
Class C		(1,125,296	)		(11,632,423	)		(1,845,440	)		(19,111,100	)
Administrator Class		(8,139,355	)		(84,089,610	)		(12,035,863	)		(124,642,274	)
Institutional Class		(41,850,727	)		(432,745,590	)		(50,559,962	)		(523,424,811	)
					(576,692,660	)					(740,044,656	)
Net increase (decrease) in net assets resulting from capital share transactions					(80,469,502	)					348,025,108
Total increase (decrease) in net assets					(91,188,987	)					346,657,801
Net assets
Beginning of period					1,689,527,650						1,342,869,849
End of period				$	1,598,338,663					$	1,689,527,650
Undistributed (overdistributed) net investment income				$	(9,641,563	)				$	567,039

1. For the period from November 30, 2012 (commencement of class operations) to February 28, 2013

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

Financial highlights Wells Fargo Advantage Short Duration Government Bond Fund 15

(For a share outstanding throughout each period)

	Six months ended February 28, 2013 (unaudited)			Year ended August 31									Year ended May 31
CLASS A				2012			2011			20101			2010			2009			2008
Net asset value, beginning of period	$	10.35		$	10.36		$	10.47		$	10.41		$	10.30		$	10.01		$	9.85
Net investment income		0.03			0.10			0.16			0.05			0.19	2		0.37			0.40
Net realized and unrealized gains (losses) on investments		0.00	3		0.09			0.07			0.08			0.20			0.32			0.18
Total from investment operations		0.03			0.19			0.23			0.13			0.39			0.69			0.58
Distributions to shareholders from
Net investment income		(0.10	)		(0.20	)		(0.25	)		(0.07	)		(0.28	)		(0.40	)		(0.42	)
Net realized gains		0.00			0.00			(0.09	)		0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.10	)		(0.20	)		(0.34	)		(0.07	)		(0.28	)		(0.40	)		(0.42	)
Net asset value, end of period	$	10.28		$	10.35		$	10.36		$	10.47		$	10.41		$	10.30		$	10.01
Total return4		0.26	%		1.86	%		2.17	%		1.23	%		3.85	%		7.05	%		5.95	%
Ratios to average net assets (annualized)
Gross expenses		0.84	%		0.86	%		0.87	%		0.86	%		0.88	%		0.94	%		1.11	%
Net expenses		0.81	%		0.83	%		0.83	%		0.84	%		0.85	%		0.85	%		0.85	%
Net investment income		0.70	%		0.98	%		1.60	%		1.85	%		1.86	%		3.61	%		4.02	%
Supplemental data
Portfolio turnover rate		163	%		399	%		485	%		135	%		501	%		277	%		210	%
Net assets, end of period (000s omitted)		$159,224			$167,266			$162,719			$181,951			$162,737			$105,430			$66,495

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. Amount is less than $0.005.

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.

16 Wells Fargo Advantage Short Duration Government Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2013 (unaudited)			Year ended August 31									Year ended May 31
CLASS B				2012			2011			20101			2010			2009			2008
Net asset value, beginning of period	$	10.36		$	10.36		$	10.48		$	10.42		$	10.31		$	10.01		$	9.86
Net investment income (loss)		(0.00	)		0.03	2		0.09			0.03			0.14	2		0.30			0.33
Net realized and unrealized gains (losses) on investments		(0.01	)		0.10			0.05			0.08			0.18			0.32			0.16
Total from investment operations		(0.01	)		0.13			0.14			0.11			0.32			0.62			0.49
Distributions to shareholders from
Net investment income		(0.06	)		(0.13	)		(0.17	)		(0.05	)		(0.21	)		(0.32	)		(0.34	)
Net realized gains		0.00			0.00			(0.09	)		0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.06	)		(0.13	)		(0.26	)		(0.05	)		(0.21	)		(0.32	)		(0.34	)
Net asset value, end of period	$	10.29		$	10.36		$	10.36		$	10.48		$	10.42		$	10.31		$	10.01
Total return3		(0.11	)%		1.22	%		1.32	%		1.04	%		3.08	%		6.36	%		5.06	%
Ratios to average net assets (annualized)
Gross expenses		1.59	%		1.60	%		1.62	%		1.62	%		1.66	%		1.69	%		1.86	%
Net expenses		1.56	%		1.57	%		1.58	%		1.59	%		1.60	%		1.60	%		1.60	%
Net investment income (loss)		(0.05	)%		0.25	%		0.85	%		1.07	%		1.30	%		2.90	%		3.29	%
Supplemental data
Portfolio turnover rate		163	%		399	%		485	%		135	%		501	%		277	%		210	%
Net assets, end of period (000s omitted)		$1,051			$1,115			$1,543			$1,548			$1,760			$4,779			$7,260

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 28, 2013 (unaudited)			Year ended August 31									Year ended May 31
CLASS C				2012			2011			20101			2010			2009			2008
Net asset value, beginning of period	$	10.37		$	10.37		$	10.48		$	10.43		$	10.32		$	10.02		$	9.87
Net investment income (loss)		(0.00	)		0.03			0.08			0.03			0.11	2		0.34			0.31
Net realized and unrealized gains (losses) on investments		(0.01	)		0.09			0.07			0.07			0.20			0.28			0.18
Total from investment operations		(0.01	)		0.12			0.15			0.10			0.31			0.62			0.49
Distributions to shareholders from
Net investment income		(0.06	)		(0.12	)		(0.17	)		(0.05	)		(0.20	)		(0.32	)		(0.34	)
Net realized gains		0.00			0.00			(0.09	)		0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.06	)		(0.12	)		(0.26	)		(0.05	)		(0.20	)		(0.32	)		(0.34	)
Net asset value, end of period	$	10.30		$	10.37		$	10.37		$	10.48		$	10.43		$	10.32			$10.02
Total return3		(0.11	)%		1.20	%		1.41	%		0.94	%		3.06	%		6.34	%		5.06	%
Ratios to average net assets (annualized)
Gross expenses		1.59	%		1.61	%		1.62	%		1.62	%		1.65	%		1.69	%		1.86	%
Net expenses		1.56	%		1.58	%		1.58	%		1.59	%		1.60	%		1.60	%		1.60	%
Net investment income (loss)		(0.05	)%		0.23	%		0.85	%		1.10	%		1.01	%		2.82	%		3.28	%
Supplemental data
Portfolio turnover rate		163	%		399	%		485	%		135	%		501	%		277	%		210	%
Net assets, end of period (000s omitted)		$75,412			$78,385			$69,077			$72,124			$65,664			$18,009			$ 7,087

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)

CLASS R6	Period ended February 28, 20131 (unaudited)
Net asset value, beginning of period	$	10.33
Net investment income		0.02
Net realized and unrealized gains (losses) on investments		0.03
Total from investment operations		0.05
Distributions to shareholders from
Net investment income		(0.06	)
Net asset value, end of period	$	10.32
Total return2		0.51	%
Ratios to average net assets (annualized)
Gross expenses		0.44	%
Net expenses		0.37	%
Net investment income		0.97	%
Supplemental data
Portfolio turnover rate		163	%
Net assets, end of period (000s omitted)	$	50

1. For the period from November 30, 2012 (commencement of class operations) to February 28, 2013

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 Short Duration Government Bond Fund 19

(For a share outstanding throughout each period)

	Six months ended February 28, 2013 (unaudited)			Year ended August 31									Year ended May 31
ADMINISTRATOR CLASS				2012			2011			20101			2010			2009			2008
Net asset value, beginning of period	$	10.36		$	10.37		$	10.48		$	10.42		$	10.32		$	10.02		$	9.86
Net investment income		0.04			0.13			0.17			0.05			0.22	2		0.39			0.42
Net realized and unrealized gains (losses) on investments		0.01			0.09			0.08			0.08			0.19			0.33			0.18
Total from investment operations		0.05			0.22			0.25			0.13			0.41			0.72			0.60
Distirbutions to shareholders from
Net investment income		(0.11	)		(0.23	)		(0.27	)		(0.07	)		(0.31	)		(0.42	)		(0.44	)
Net realized gains		0.00			0.00			(0.09	)		0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.11	)		(0.23	)		(0.36	)		(0.07	)		(0.31	)		(0.42	)		(0.44	)
Net asset value, end of period	$	10.30		$	10.36		$	10.37		$	10.48		$	10.42		$	10.32		$	10.02
Total return3		0.46	%		2.10	%		2.41	%		1.29	%		4.01	%		7.42	%		6.21	%
Ratios to average net assets (annualized)
Gross expenses		0.78	%		0.80	%		0.80	%		0.79	%		0.80	%		0.84	%		0.93	%
Net expenses		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Net investment income		0.90	%		1.20	%		1.84	%		2.06	%		2.13	%		3.89	%		4.26	%
Supplemental data
Portfolio turnover rate		163	%		399	%		485	%		135	%		501	%		277	%		210	%
Net assets, end of period (000s omitted)		$284,049			$285,637			$247,357			$435,363			$505,432			$356,409			$246,592

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 28, 2013 (unaudited)			Year ended August 31									Year ended May 31
INSTITUTIONAL CLASS				2012			2011			20101			2010			2009			2008
Net asset value, beginning of period	$	10.36		$	10.37		$	10.48		$	10.43		$	10.32		$	10.02		$	9.86
Net investment income		0.05			0.15			0.21			0.06			0.31	2		0.41			0.44
Net realized and unrealized gains (losses) on investments		0.01			0.09			0.06			0.07			0.13			0.33			0.18
Total from investment operations		0.06			0.24			0.27			0.13			0.44			0.74			0.62
Distributions to shareholders from
Net investment income		(0.12	)		(0.25	)		(0.29	)		(0.08	)		(0.33	)		(0.44	)		(0.46	)
Net realized gains		0.00			0.00			(0.09	)		0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.12	)		(0.25	)		(0.38	)		(0.08	)		(0.33	)		(0.44	)		(0.46	)
Net asset value, end of period	$	10.30		$	10.36		$	10.37		$	10.48		$	10.43		$	10.32		$	10.02
Total return3		0.55	%		2.28	%		2.59	%		1.24	%		4.30	%		7.61	%		6.40	%
Ratios to average net assets (annualized)
Gross expenses		0.51	%		0.53	%		0.54	%		0.53	%		0.55	%		0.59	%		0.67	%
Net expenses		0.42	%		0.42	%		0.42	%		0.42	%		0.42	%		0.42	%		0.42	%
Net investment income		1.08	%		1.39	%		1.97	%		2.27	%		2.98	%		4.02	%		4.42	%
Supplemental data
Portfolio turnover rate		163	%		399	%		485	%		135	%		501	%		277	%		210	%
Net assets, end of period (000s omitted)		$1,078,552			$1,157,125			$862,174			$572,274			$489,762			$248,124			$87,784

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

All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (normally 4 p.m. Eastern Time).

Fixed income securities acquired with maturities exceeding 60 days are valued based on evaluated bid prices received from an independent pricing service 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 independent pricing service or values received are deemed not representative of market value, values will be obtained from a broker-dealer or otherwise determined based on the Fund’s Valuation Procedures.

Debt securities of sufficient credit quality acquired with 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 registered open-end investment companies are valued at net asset value. Non-registered investment companies are fair 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. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Management Valuation Team of Wells Fargo Funds Management, LLC (“Funds Management”). The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Management Valuation Team which may include items for ratification.

Valuations of fair valued securities are compared to the next actual sales price when available, or other appropriate market information to assess the continued appropriateness of the fair valuation methodology used. These securities are fair valued on a day-to-day basis, taking into consideration changes to appropriate market information and any significant changes to the input factors considered in the valuation process until there is a readily available price provided on the exchange or by an independent pricing service. Valuations received from an independent pricing service or broker quotes are periodically validated by comparisons to most recent trades and valuations provided by other independent pricing services in addition to the review of prices by the adviser and/or subadviser. Unobservable inputs used in determining fair valuations are identified based on the type of security, taking into consideration factors utilized by market participants in valuing the investment, knowledge about the issuer and the current market environment.

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

22 Wells Fargo Advantage Short Duration Government Bond Fund Notes to financial statements (unaudited)

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 Funds Management and is subadvised by Wells Capital Management Incorporated (“WellsCap”). 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 WellsCap for its services as subadviser. 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 in an amount at least equal in value to the Fund’s commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.

Security transactions and income recognition

Securities transactions are recorded on a trade date basis. Realized gains or losses are recorded on the basis of identified cost.

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.

Income is recorded net of foreign taxes withheld where recovery of such taxes is not assured.

Distributions to shareholders

Distributions to shareholders from net investment income are accrued daily and paid monthly. Distributions from net realized gains, if any, are recorded on the ex-dividend date. Such distributions are determined in conformity with federal income tax regulations, which may differ in amount or character from net investment income and realized gains recognized for purposes of U.S. generally accepted accounting principles.

Federal and other taxes

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

The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

As of August 31, 2012, the Fund had post-enactment capital loss carryforwards (losses incurred in taxable years which began after December 22, 2010) which consist of $4,381,659 in short-term capital losses.

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 any 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.

Notes to financial statements (unaudited) Wells Fargo Advantage Short Duration Government Bond Fund 23

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, use of amortized cost, etc.)

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

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

As of February 28, 2013, the inputs used in valuing investments in securities, 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	$	795,061,577	$	0	$	795,061,577
Asset-backed securities		0		198,477,671		0		198,477,671
Non-agency mortgage backed securities		0		59,940,774		0		59,940,774
U.S. Treasury securities		494,511,828		0		0		494,511,828
Yankee corporate bonds and notes		0		47,358,778		0		47,358,778
Short-term investments
Investment companies		8,765,542		5,113,000		0		13,878,542
	$	503,277,370	$	1,105,951,800	$	0	$	1,609,229,170

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 28, 2013, the Fund did not have any 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 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 subadviser, 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 0.35% and declining to 0.25% as the average daily net assets of the Fund increase. Prior to January 1, 2013, the annual advisory started at 0.40% and declined to 0.30% as the average daily net assets of the Fund increased. For the six months ended February 28, 2013, the advisory fee was equivalent to an annual rate of 0.36% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. WellsCap, an affiliate of Funds Management, is a subadviser 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.

24 Wells Fargo Advantage Short Duration Government Bond Fund Notes to financial statements (unaudited)

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	%
Class R6		0.03
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, 2014 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.78% for Class A shares, 1.53% for Class B shares, 1.53% for Class C shares, 0.37% for Class R6 shares, 0.60% for Administrator Class shares, and 0.42% for Institutional Class shares.

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 28, 2013, Wells Fargo Funds Distributor, LLC received $2,439 from the sale of Class A shares and $15 and $1,287 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 investments, excluding short-term securities, for the six months ended February 28, 2013 were as follows:

Purchases at cost		Sales proceeds
U.S. government	Non-U.S. government	U.S. government	Non-U.S. government
$2,449,876,671	$254,804,067	$2,478,361,311	$198,320,988

6. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds in the Trust) 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. For the six months ended February 28, 2013, the Fund paid $1,092 in commitment fees.

For the six months ended February 28, 2013, there were no borrowings by the Fund under the agreement.

Notes to financial statements (unaudited) Wells Fargo Advantage Short Duration Government Bond Fund 25

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 PRONOUNCEMENT

In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2011-11, Disclosures about Offsetting Assets and Liabilities. ASU 2011-11, which amends FASB ASC Topic 210, Balance Sheet, creates new disclosure requirements which require entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently assessing the potential impact, in addition to expanded financial statement disclosure, that may result from adopting this ASU.

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

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available on the Fund’s website (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 website 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 website at sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at 233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Other information (unaudited) Wells Fargo Advantage Short Duration Government Bond Fund 27

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers listed in the table below acts in identical capacities for the Wells Fargo Advantage family of funds, which consists of 135 funds¹ comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information². 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	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. Advisory Board Member, Palm Coast Academy (charter school). Mr. Harris is a certified public accountant.	CIGNA Corporation; Deluxe Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, 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 48 portfolios as of 1/31/2013); 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, Morgan Stanley Director of the Center for Leadership Development and Research 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
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

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
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.	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 Tree Trust (non-profit corporation). Director of the American Chestnut Foundation (non-profit corporation).	Asset Allocation Trust

* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable

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.
Nancy Wiser1 (Born 1967)	Treasurer, since 2012	Executive Vice President of Wells Fargo Funds Management, LLC since 2011. Chief Operating Officer and Chief Compliance Officer at LightBox Capital Management LLC, from 2008 to 2011. Owned and operated a consulting business providing services to various hedge funds including acting as Chief Operating Officer and Chief Compliance Officer for a hedge fund from 2007 to 2008. Chief Operating Officer and Chief Compliance Officer of GMN Capital LLC from 2006 to 2007.
C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Officer, since 2003	Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001. Vice President and Managing Counsel of Wells Fargo Bank, N.A. since 1996.
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.
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 DePalma1 (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.

1. Nancy Wiser acts as Treasurer of 74 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 61 funds and Assistant Treasurer of 74 funds in the Fund Complex.

2. 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 website 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 that may have appeared in this report.

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian 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

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

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

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 depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Industrial development revenue

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

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

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

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

SPA —  Standby purchase agreement

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

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

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, email, visit the Fund’s website, or call:

Wells Fargo Advantage Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: wfaf@wellsfargo.com

Website: 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 current prospectus and, if available, a summary prospectus containing more complete information, including charges and expenses, call 1-800-222-8222 or visit the Fund’s website 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

© 2013 Wells Fargo Funds Management, LLC. All rights reserved.

215349 04-13 SA220/SAR220 2-13

Wells Fargo Advantage

Short-Term Bond Fund

Semi-Annual Report

February 28, 2013

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	4
Fund expenses	6
Portfolio of investments	7
Financial statements
Statement of assets and liabilities	18
Statement of operations	19
Statement 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 28, 2013, 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 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 the 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 the investment objectives, risks, charges, and expenses before investing. For a current prospectus and, if available, a summary prospectus, for Wells Fargo Advantage Funds, 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, 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 $225 billion in assets under management, as of February 28, 2013.

Equity funds
Asia Pacific Fund	Enterprise Fund†	Opportunity Fund†
C&B Large Cap Value Fund	Global Opportunities Fund	Precious Metals Fund
C&B Mid Cap Value Fund	Growth Fund	Premier Large Company Growth Fund
Capital Growth Fund	Index Fund	Small Cap Opportunities Fund
Common Stock Fund	International Equity Fund	Small Cap Value Fund
Disciplined U.S. Core Fund	International Value Fund	Small Company Growth Fund
Discovery Fund†	Intrinsic Small Cap Value Fund	Small Company Value Fund
Diversified Equity Fund	Intrinsic Value Fund	Small/Mid Cap Value Fund
Diversified International Fund	Intrinsic World Equity Fund	Special Mid Cap Value Fund
Emerging Growth Fund	Large Cap Core Fund	Special Small Cap Value Fund
Emerging Markets Equity Fund	Large Cap Growth Fund	Specialized Technology Fund
Emerging Markets Equity Income Fund	Large Company Value Fund	Traditional Small Cap Growth Fund
Endeavor Select Fund†	Omega Growth Fund	Utility and Telecommunications Fund
Bond funds
Adjustable Rate Government Fund	High Yield Municipal Bond Fund	Short Duration Government Bond Fund
California Limited-Term Tax-Free Fund	Income Plus Fund	Short-Term Bond Fund
California Tax-Free Fund	Inflation-Protected Bond Fund	Short-Term High Yield Bond Fund
Colorado Tax-Free Fund	Intermediate Tax/AMT-Free Fund	Short-Term Municipal Bond Fund
Core Bond Fund	International Bond Fund	Strategic Income Fund
Emerging Markets Local Bond Fund	Minnesota Tax-Free Fund	Strategic Municipal Bond Fund
Government Securities Fund	Municipal Bond Fund	Ultra Short-Term Income Fund
High Income Fund	North Carolina Tax-Free Fund	Ultra Short-Term Municipal Income Fund
High Yield Bond Fund	Pennsylvania Tax-Free 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	Treasury Plus Money Market Fund
Cash Investment Money Market Fund	Municipal Cash Management 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 (unaudited)

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Fixed-income performance was best among lower-rated corporate bonds and commercial mortgage-backed securities, as continued monetary accommodation from the U.S. Federal Reserve strengthened the

demand for securities with higher yields.

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 28, 2013. During the period, fixed-income performance was best among lower-rated corporate bonds and commercial mortgage-backed securities (CMBS), as continued monetary accommodation from the U.S. Federal Reserve (Fed) strengthened the demand for securities with higher yields. However, the longest-maturity segments of the fixed-income market generally underperformed the mid-maturity and short-maturity segments because longer-maturity U.S. Treasury yields shifted higher, most notably in January 2013, thereby influencing a decline in the prices of longer-maturity fixed-income securities.

Credit sectors rallied for much of the second half of 2012, outperforming U.S. Treasuries.

As policymaking in Europe during the summer months of 2012 began to reassure global credit markets that the euro would likely survive and that all appropriate measures would be taken to bolster European debt markets, lower-rated securities in the U.S. once again rallied in price, significantly outpacing the returns from U.S. Treasuries. Corporate bonds and CMBS were once again the best-performing sectors of the core fixed income markets from August 2012 through the end of the year, as they had been before the European credit crisis escalated in the spring.

In December 2012, the Fed reaffirmed its commitment to highly accommodative monetary policy, citing its dual mandate of fostering maximum employment and price stability. For the first time since the financial crisis began in 2008, the Fed formally announced specific target ranges that could trigger a change to its highly accommodative monetary policy, most notably that exceptionally low interest rates would be appropriate at least as long as the unemployment rate remained above 6.5% and inflation expectations were no more than half a percentage point above its 2.0% inflation target. These thresholds were the first official measures of when and how a change to monetary policy may take effect.

U.S. Treasury yields shift significantly higher in January 2013.

With growing confidence in the U.S. economy and improving stability in the European credit markets, longer-maturity U.S. Treasury yields began to shift significantly higher in January 2013. The yield on the 10-year U.S. Treasury note ratcheted higher to 2.00% in January 2013, after finishing 2012 at 1.75% and reaching a modern-era record low of 1.41% in late July 2012. The 30-year U.S. Treasury bond finished the period at a yield of 3.09%, up from 2.58% at the start of the period. Thus, during the period, longer-maturity securities felt the pressure of yields shifting higher, which eroded some of their pricing. The best-performing sections of the yield curve were generally in the five- to 10-year range, which benefited from relatively adequate yields while remaining mostly insulated from the price erosion in maturities of 10 years and longer.

Despite this persistent trend toward higher yields during the final three months of the period, which chipped away at some security prices, several areas of the taxable fixed income markets continued to generate relatively compelling returns, considering the extraordinarily low level of interest rates. Spreads in the corporate bond sector continued to tighten while U.S. Treasury yields shifted higher, thus providing some protection against price erosion. CMBS spreads also tightened during the period resulting in some of the strongest six-month returns in the taxable investment-grade sectors. Within the Barclays U.S. Aggregate Bond Index¹,

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

Letter to shareholders (unaudited) Wells Fargo Advantage Short-Term Bond Fund 3

the CMBS sector returned 2.35% during the six-month period, the corporate sector returned 1.64%, and the U.S. Treasury sector returned (0.67)%. The lower-rated credit tiers continued to outperform each respectively higher credit tier during the period, despite the rising yield influence in the longest maturities.

Overall, the theme for the six-month period in the U.S. fixed income markets was relatively strong performance from the corporate and CMBS sectors, particularly in the lower-rated credit tiers, with a protracted decline in prices of U.S. Treasuries. On the whole, most credit-related sectors generated relatively generous returns during the six-month period considering the extraordinarily low level of interest rates. However, the trend from previous periods of strong performance from longer-maturity securities began to unwind in January and February 2013. During this period, credit risks were rewarded better than interest rate risks, meaning that higher-yield compensation from lower-rated securities performed better than higher-yield compensation from longer-maturity securities, which experienced price pressures. Investment strategies that focused on mid- to lower-rated credit tiers and mid-maturity securities generally saw the strongest returns during the period.

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.

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 website 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

Most credit-related sectors generated relatively generous returns during the six-month period considering the extraordinarily low level of interest rates.

Notice to shareholders

At its November 6-7, 2012 meeting, the Board of Trustees unanimously approved the following modifications to certain Class A sales load waiver privileges, with each change becoming effective on July 1, 2013:

n Annuity payments received under an annuity option or from death proceeds will no longer qualify for net asset value (NAV) repurchase privileges.

n The ability to reinvest redemption proceeds at NAV will be reduced from 120 days to 90 days.

n NAV purchase privileges for certain types of “grandfathered” shareholders will be modified to remove the ability to purchase Class A shares at NAV, unless those shares are held directly with the Fund.

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

4 Wells Fargo Advantage Short-Term Bond Fund Performance highlights (unaudited)

Investment objective

The Fund seeks current income consistent with capital preservation.

Adviser

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Christopher Y. Kauffman, CFA

Jay N. Mueller, CFA

Noah Wise, CFA

Average annual total returns¹ (%) as of February 28, 2013

		Including sales charge						Excluding sales charge						Expense ratios2 (%)
	Inception date	1 year		5 year		10 year		1 year		5 year		10 year		Gross		Net3
Class A (SSTVX)	8-31-1999		0.07		2.77		3.13		2.12		3.19		3.33		0.86		0.81
Class C (WFSHX)	3-31-2008		0.36		2.39		2.61		1.36		2.39		2.61		1.61		1.56
Institutional Class (SSHIX)	8-31-1999		–		–		–		2.44		3.50		3.74		0.53		0.49
Investor Class (SSTBX)	8-31-1987		–		–		–		2.21		3.15		3.35		0.89		0.82
Barclays 1-3 Year U.S. Government/Credit Bond Index4	–		–		–		–		1.06		2.38		3.07		–		–

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 website, 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. Institutional Class and Investor Class shares are sold without a front-end sales charge or contingent deferred sales charge.

Bond 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 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). The 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.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Advantage Short-Term Bond Fund 5

Ten largest long-term holdings5 (%) as of February 28, 2013
Nordea Eiendomskreditt, 1.88%, 4-7-2015	1.13
U.S. Treasury Note, 0.88%, 1-31-2018	1.09
Energy Transfer Partners LP, 5.95%, 2-1-2015	0.97
Portland Taxable Pension, 0.14%, 6-1-2019	0.82
FNMA, 3.25%, 4-1-2015	0.80
GNMA, 1.83%, 3-16-2039	0.77
FNMA, 3.00%, 4-1-2022	0.75
CNH Equipment Trust Service 2013-A Class A2, 0.44%, 7-15-2016	0.74
TCM Sub LLC, 3.55%, 1-15-2015	0.71
Canadian Imperial Bank, 0.90%, 9-19-2014	0.70

Portfolio allocation⁶ as of February 28, 2013

1. Effective June 20, 2008, the Advisor Class was renamed Class A and modified to assume the features and attributes of Class A. 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.

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

3. The Adviser has committed through December 31, 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 0.80% for Class A, 1.55% for Class C, 0.48% for Institutional Class, and 0.81% for Investor Class. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the cap. Without this cap, the Fund’s returns would have been lower.

4. 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.

5. 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.

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

6 Wells Fargo Advantage Short-Term Bond Fund Fund expenses (unaudited)

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, 2012 to February 28, 2013.

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 9-1-2012		Ending account value 2-28-2013		Expenses paid during the period1		Net annual expense ratio
Class A
Actual	$	1,000.00	$	1,007.86	$	3.98		0.80	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.83	$	4.01		0.80	%
Class C
Actual	$	1,000.00	$	1,004.12	$	7.70		1.55	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.11	$	7.75		1.55	%
Institutional Class
Actual	$	1,000.00	$	1,009.44	$	2.39		0.48	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.41	$	2.41		0.48	%
Investor Class
Actual	$	1,000.00	$	1,008.88	$	4.08		0.82	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.73	$	4.11		0.82	%

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).

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Short-Term Bond Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities: 11.10%
FHLMC ±		2.38	%		4-1-2032	$	76,685	$	80,680
FHLMC ±		2.50			7-1-2029		7,995		8,466
FHLMC		3.00			2-15-2024		2,512,057		2,574,378
FHLMC ±		3.03			9-1-2031		7,739		7,870
FHLMC ±		3.75			5-1-2026		179,736		190,594
FHLMC		4.50			7-15-2022		1,034,073		1,066,487
FHLMC		5.00			10-15-2032		1,503,380		1,567,889
FHLMC		6.00			10-1-2021		901,445		990,725
FHLMC		7.00			11-17-2013		1,021		1,020
FHLMC		8.50			9-1-2017		159,979		175,311
FHLMC		9.00			8-1-2018		134,806		150,391
FHLMC		9.00			6-1-2019		178,954		200,110
FHLMC		9.00			10-1-2019		319,802		369,490
FHLMC		9.50			12-1-2022		264,990		302,411
FHLMC		10.50			1-1-2016		2,799		3,073
FHLMC		10.50			11-1-2017		1,194		1,375
FHLMC		10.50			8-1-2018		104,001		120,693
FHLMC		10.50			2-1-2019		1,493		1,764
FHLMC		10.50			4-1-2019		582		677
FHLMC		10.50			5-1-2019		650		775
FHLMC		10.50			6-1-2019		6,205		7,282
FHLMC		10.50			7-1-2019		1,313		1,578
FHLMC Series 2301 Class MO		6.00			10-15-2013		465,790		468,902
FHLMC Series 2958 Class QD		4.50			4-15-2020		3,447,603		3,677,317
FHLMC Series T-57 Class 2A1 ±		3.34			7-25-2043		31,640		32,834
FHLMC Series T-59 Class 2A1 ±		2.91			10-25-2043		1,287,528		1,330,115
FHLMC Structured Pass-Through Securities Series T-42 Class A6		9.50			2-25-2042		615,830		753,783
FNMA 144A		2.18			5-25-2050		2,757,625		2,803,752
FNMA ±		2.37			11-1-2031		82,109		87,409
FNMA		3.00			4-1-2022		4,152,412		4,395,068
FNMA		3.25			4-1-2015		4,491,398		4,721,501
FNMA		3.34			4-1-2016		991,942		1,056,770
FNMA		3.69			6-1-2017		3,435,262		3,781,021
FNMA		4.00			5-25-2019		897,192		956,238
FNMA		4.00			12-15-2024		1,375,674		1,459,063
FNMA		4.00			8-25-2037		3,068,230		3,235,989
FNMA		4.44			9-1-2015		1,753,075		1,913,216
FNMA		4.88			1-1-2014		3,380,987		3,469,355
FNMA		5.00			1-15-2022		3,500,000		3,816,610
FNMA		5.09			2-1-2016		894,622		974,383
FNMA		6.00			4-1-2021		2,023,954		2,198,640
FNMA		6.00			3-1-2033		1,273,448		1,427,626
FNMA		6.50			8-1-2031		720,040		815,429
FNMA		8.00			4-1-2017		226,041		247,925
FNMA		8.00			9-1-2019		154,709		170,499
FNMA		8.00			9-1-2023		16,310		18,254
FNMA		8.33			7-15-2020		53,200		61,297
FNMA		8.50			7-1-2018		100,020		110,495
FNMA		8.50			2-1-2023		115,034		127,320
FNMA		9.00			2-15-2020		2,001		2,355

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

8 Wells Fargo Advantage Short-Term Bond Fund Portfolio of investments—February 28, 2013 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA		9.00	%		11-1-2024	$	177,660	$	212,626
FNMA		11.00			10-15-2020		116,752		124,136
FNMA		12.00			3-1-2017		14,250		14,596
FNMA Grantor Trust Series 2002-T1 Class A4		9.50			11-25-2031		111,248		133,206
FNMA Grantor Trust Series 2002-T12 Class A4		9.50			5-25-2042		962,267		1,229,534
FNMA Series 1989-29 Class Z		10.00			6-25-2019		171,555		194,661
FNMA Series 1989-63 Class Z		9.40			10-25-2019		100,095		111,214
FNMA Series 2004-90 Class XY		4.00			9-25-2034		2,086,571		2,240,554
FNMA Series G95-2 Class IO ±(c)		10.00			5-25-2020		237,327		40,616
FNMA Whole Loan Series 2003-W06 Class PT4 ±		9.18			10-25-2042		145,850		169,394
FNMA Whole Loan Series 2003-W11 Class A1 ±		3.26			6-25-2033		31,546		31,407
FNMA Whole Loan Series 2003-W6 Class 6A ±		3.06			8-25-2042		1,611,260		1,716,286
FNMA Whole Loan Series 2004-W6 Class 1A4		5.50			7-25-2034		1,990,644		2,035,208
GNMA		1.83			3-16-2039		4,394,888		4,514,073
GNMA		7.00			5-15-2013		19		19
GNMA		8.00			12-15-2023		58,979		70,194
GNMA		9.00			11-15-2017		86,468		92,438
GNMA		9.00			11-15-2024		42,247		46,189
GNMA		10.00			2-20-2018		10,972		12,644
GNMA		12.50			4-15-2019		187,826		197,598
SBA (c)(a)(i)		3.68			10-6-2015		70,106		1,950
Total Agency Securities (Cost $64,249,153)									65,124,748
Asset-Backed Securities: 8.00%
Ally Auto Receivables Trust Series 2012-2 Class A2		0.56			10-15-2014		1,643,116		1,644,210
Ally Auto Receivables Trust Series 2012-3 Class A2		0.70			1-15-2015		2,766,475		2,770,622
ASG Resecuritization Trust Series 2009-4 Class A60 144A		6.00			6-28-2037		1,183,291		1,238,098
Citigroup Commercial Mortgage Trust Series 2004-C1 Class A4 ±		5.36			4-15-2040		3,300,000		3,438,151
CNH Equipment Trust Service 2013-A Class A2		0.44			7-15-2016		4,365,000		4,365,751
DBRR Trust Series 2012-EZ1 Class A 144A		0.95			9-25-2045		1,653,139		1,658,410
Ford Credit Auto Lease Trust Series 2011-B Class A2		0.82			1-15-2014		1,884,782		1,886,420
Ford Credit Auto Lease Trust Series 2012-A Class A2		0.63			4-15-2014		2,272,067		2,273,853
Ford Credit Auto Owner Trust Series 201- D Class A2		0.40			9-15-2015		2,185,000		2,185,138
Ford Credit Auto Owner Trust Series 2012-B Class A2		0.57			1-15-2015		1,652,874		1,654,187
Ford Credit Auto Owner Trust Series 2013-A Class A2		0.38			11-15-2015		2,000,000		1,999,839
Home Equity Asset Trust Series 2003-6 Class M1 ±		1.70			2-25-2034		1,889,676		1,750,823
Honda Auto Receivables Owner Trust Series 2012-1 Class A2		0.57			8-15-2014		2,362,928		2,364,998
Honda Auto Receivables Owner Trust Series 2012-2 Class A2		0.56			11-17-2014		2,188,197		2,190,654
Hyundai Auto Lease Securitization Trust Series 2012-A Class A2 144A		0.68			1-15-2015		2,478,445		2,481,746
Hyundai Auto Lease Securitization Trust Series 2013-A Class A2 144A%%		0.73			9-15-2015		3,120,000		3,119,904
Hyundai Auto Receivables Trust Hart Series 2012-B Class A2		0.54			1-15-2015		500,000		500,558
Hyundai Auto Receivables Trust Hart Series 2013-A Class A2		0.40			12-15-2015		2,205,000		2,205,000
John Deere Owner Trust Series 2012-A Class A2		0.59			6-16-2014		1,782,236		1,783,277
Mercedes-Benz Auto Lease Trust Series 2011-B Class A2 144A		0.90			1-15-2014		759,417		759,773
Newcastle Investment Trust Series 2011-MH1 Class A 144A		2.45			12-10-2033		1,033,576		1,057,263
Porsche Innovative Lease Owner Pilot Trust Series 2011-1 Class A2 144A		0.92			2-20-2014		353,835		354,028
Porsche Innovative Lease Owner Pilot Trust Series 2012-1 Class A2 144A		0.44			2-23-2015		3,000,000		3,001,185
Residential Asset Securities Corporation Series 2001-KS1 Class AII ±		0.67			3-25-2032		13,999		13,875
Volkswagen Auto Lease Trust Series 2011-A Class A2		1.00			2-20-2014		272,335		272,488
Total Asset-Backed Securities (Cost $47,024,432)									46,970,251

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

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Short-Term Bond Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Corporate Bonds and Notes: 47.18%
Consumer Discretionary: 6.15%
Automobiles: 0.52%
Daimler Finance LLC 144A		1.25	%		1-11-2016	$	1,490,000	$	1,493,493
Daimler Finance LLC 144A		2.40			4-10-2017		1,500,000		1,549,875
									3,043,368
Diversified Consumer Services: 0.14%
Life Technologies Corporation		3.38			3-1-2013		830,000		830,000
Hotels, Restaurants & Leisure: 1.11%
Hyatt Hotels Corporation 144A		5.75			8-15-2015		3,000,000		3,275,244
Yum Brands Incorporation		4.25			9-15-2015		3,000,000		3,232,752
									6,507,996
Leisure Equipment & Products: 0.49%
Hasbro Incorporated		6.13			5-15-2014		2,725,000		2,890,764
Media: 2.78%
DIRECTV Holdings Company		1.75			1-15-2018		2,500,000		2,459,855
Interpublic Group of Companies Incorporated		6.25			11-15-2014		2,860,000		3,085,225
News America Incorporated		5.30			12-15-2014		3,120,000		3,372,046
TCM Sub LLC 144A		3.55			1-15-2015		4,000,000		4,165,592
Time Warner Cable Incorporated		8.25			2-14-2014		3,000,000		3,208,698
									16,291,416
Multiline Retail: 0.59%
Macys Retail Holding Incorporated		7.88			7-15-2015		3,000,000		3,477,117
Specialty Retail: 0.52%
Best Buy Company Incorporated		7.25			7-15-2013		3,035,000		3,072,938
Consumer Staples: 3.77%
Beverages: 0.52%
Miller Brewing Corporation 144A		5.50			8-15-2013		3,000,000		3,066,567
Food & Staples Retailing: 0.54%
Safeway Incorporated		5.63			8-15-2014		3,000,000		3,182,016
Food Products: 0.87%
Cadbury Schweppes Company 144A		5.13			10-1-2013		3,000,000		3,068,700
Conagra Foods Incorporated		1.30			1-25-2016		2,000,000		2,013,274
									5,081,974
Household Products: 0.57%
Newell Rubbermaid Incorporated		2.00			6-15-2015		3,290,000		3,349,835
Tobacco: 1.27%
Altria Group Incorporated		7.75			2-6-2014		2,000,000		2,129,214
Lorillard Tobacco Company		2.30			8-21-2017		2,500,000		2,531,955

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

10 Wells Fargo Advantage Short-Term Bond Fund Portfolio of investments—February 28, 2013 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Tobacco (continued)
Reynolds American Incorporated		1.05	%		10-30-2015	$	1,950,000	$	1,948,062
Reynolds American Incorporated		7.30			7-15-2015		730,000		834,486
									7,443,717
Energy: 4.02%
Oil, Gas & Consumable Fuels: 4.02%
El Paso Pipeline Partners Operating LLC		4.10			11-15-2015		3,000,000		3,226,794
Energy Transfer Partners LP		5.95			2-1-2015		5,205,000		5,669,541
Petrohawk Energy Corporation		7.88			6-1-2015		3,000,000		3,115,965
Pioneer Natural Resources Company		5.88			7-15-2016		2,940,000		3,324,237
Valero Energy Corporation		4.75			4-1-2014		2,820,000		2,936,875
Weatherford Bermuda Company		5.50			2-15-2016		2,000,000		2,194,590
Williams Partners LP		3.80			2-15-2015		3,000,000		3,165,039
									23,633,041
Financials: 13.02%
Capital Markets: 1.03%
Goldman Sachs Group Incorporated		3.63			2-7-2016		3,000,000		3,189,912
Janus Capital Group Incorporated		6.70			6-15-2017		2,500,000		2,863,320
									6,053,232
Commercial Banks: 1.22%
Australia and New Zealand Banking Group Limited 144A		2.40			11-23-2016		3,000,000		3,156,525
Inter-American Development Bank ±		0.74			5-20-2014		4,000,000		4,026,780
									7,183,305
Consumer Finance: 1.77%
Discover Financial Services Company		6.45			6-12-2017		3,000,000		3,523,560
Ford Motor Credit Company LLC		3.88			1-15-2015		3,000,000		3,122,475
Harley-Davidson Funding Corporation 144A		5.75			12-15-2014		2,000,000		2,168,506
SLM Corporation		3.88			9-10-2015		1,500,000		1,547,024
									10,361,565
Diversified Financial Services: 4.93%
Bank of America Corporation		7.38			5-15-2014		3,000,000		3,227,652
Citigroup Incorporated		1.25			1-15-2016		2,500,000		2,493,273
ERAC USA Finance Company 144A		2.25			1-10-2014		3,000,000		3,038,226
HSBC Finance Corporation		5.25			4-15-2015		3,000,000		3,242,793
JPMorgan Chase & Company		5.88			6-13-2016		2,500,000		2,856,885
Morgan Stanley		4.75			4-1-2014		3,000,000		3,103,353
Raymond James Financial Incorporated		4.25			4-15-2016		2,000,000		2,133,206
Santander Holdings USA		4.63			4-19-2016		2,000,000		2,143,898
Twins Ballpark LLC ±144A		0.95			10-1-2034		3,500,000		3,500,000
Woodside Finance Limited 144A		4.50			11-10-2014		3,000,000		3,157,896
									28,897,182

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

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Short-Term Bond Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Insurance: 1.82%
American International Group Incorporated		4.25	%		5-15-2013	$	3,000,000	$	3,024,504
Genworth Life Institutional Funding Trust 144A		5.88			5-3-2013		2,035,000		2,050,631
Metropolitan Life Global Funding I 144A		5.13			4-10-2013		2,000,000		2,009,412
Prudential Financial Incorporated Series MTN		6.00			12-1-2017		3,000,000		3,575,961
									10,660,508
REITs: 2.25%
American Tower Corporation		4.50			1-15-2018		2,700,000		2,974,393
Digital Realty Trust LP		4.50			7-15-2015		3,000,000		3,194,406
Federal Realty Investment Trust		5.95			8-15-2014		1,000,000		1,071,433
Healthcare Realty Trust Incorporated		5.13			4-1-2014		2,000,000		2,080,342
WEA Finance LLC 144A		7.50			6-2-2014		3,630,000		3,916,196
									13,236,770
Health Care: 4.15%
Biotechnology: 0.52%
Biogen Idec Incorporated		6.88			3-1-2018		2,500,000		3,064,068
Health Care Equipment & Supplies: 0.66%
Boston Scientific Corporation		4.50			1-15-2015		1,500,000		1,590,300
Boston Scientific Corporation		5.50			11-15-2015		2,000,000		2,250,574
									3,840,874
Health Care Providers & Services: 1.30%
Coventry Health Care Incorporated		6.30			8-15-2014		3,000,000		3,220,308
Express Scripts Holding Company		2.10			2-12-2015		2,375,000		2,427,820
McKesson Corporation		0.95			12-4-2015		2,000,000		2,006,066
									7,654,194
Life Sciences Tools & Services: 1.10%
Life Technologies Corporation		4.40			3-1-2015		3,170,000		3,344,474
Thermo Fisher Scientific Incorporated		2.25			8-15-2016		3,000,000		3,099,177
									6,443,651
Pharmaceuticals: 0.57%
Mylan Incorporated 144A		7.63			7-15-2017		3,000,000		3,358,500
Industrials: 4.36%
Aerospace & Defense: 0.53%
BAE Systems Holdings Incorporated 144A		4.95			6-1-2014		3,000,000		3,134,535
Commercial Services & Supplies: 1.43%
Boardwalk Pipelines LLC		5.20			6-1-2018		2,179,000		2,415,387
Brambles USA Incorporated 144A		3.95			4-1-2015		2,000,000		2,091,726
Equifax Incorporated		4.45			12-1-2014		2,000,000		2,104,818
Penske Truck Leasing Company LP 144A		3.13			5-11-2015		1,740,000		1,802,849
									8,414,780

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

12 Wells Fargo Advantage Short-Term Bond Fund Portfolio of investments—February 28, 2013 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Electrical Equipment: 0.82%
Roper Industries Incorporated		1.85	%		11-15-2017	$	890,000	$	896,032
Roper Industries Incorporated		6.63			8-15-2013		3,800,000		3,898,067
									4,794,099
Machinery: 0.46%
SPX Corporation		7.63			12-15-2014		2,450,000		2,679,688
Road & Rail: 1.12%
JB Hunt Transportation Services Company		3.38			9-15-2015		3,700,000		3,849,143
Ryder System Incorporated		3.50			6-1-2017		2,535,000		2,715,543
									6,564,686
Information Technology: 3.67%
Communications Equipment: 0.60%
Motorola Incorporated		6.00			11-15-2017		3,000,000		3,508,773
Computers & Peripherals: 0.56%
Hewlett Packard Company		2.63			12-9-2014		3,225,000		3,299,810
IT Services: 0.47%
Western Union Company		2.38			12-10-2015		2,700,000		2,743,983
Office Electronics: 0.54%
Xerox Corporation		8.25			5-15-2014		2,940,000		3,185,434
Software: 1.50%
Autodesk Incorporated		1.95			12-15-2017		3,000,000		2,971,641
CA Incorporated		6.13			12-1-2014		3,000,000		3,240,537
Symantec Corporation		2.75			9-15-2015		1,000,000		1,036,244
Symantec Corporation		2.75			6-15-2017		1,500,000		1,548,155
									8,796,577
Materials : 0.52%
Metals & Mining: 0.52%
Arcelormittal Company		4.25			2-25-2015		1,000,000		1,032,529
Freeport-McMoRan Copper & Gold Incorporated 144A%%		2.38			3-15-2018		2,000,000		1,999,800
									3,032,329
Telecommunication Services: 2.48%
Diversified Telecommunication Services: 2.30%
AT&T Incorporated		0.90			2-12-2016		3,000,000		3,002,079
Crown Castle Towers LLC 144A		3.21			8-15-2035		2,650,000		2,769,491
Qwest Corporation ±		3.56			6-15-2013		2,500,000		2,507,363
SBA Tower Trust 144A		4.25			4-15-2040		2,000,000		2,122,168
Verizon New England Incorporated		4.75			10-1-2013		3,000,000		3,073,119
									13,474,220

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

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Short-Term Bond Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Wireless Telecommunication Services: 0.18%
Verizon Wireless Capital LLC		7.38	%		11-15-2013	$	1,000,000	$	1,046,369
Utilities: 5.04%
Electric Utilities: 4.87%
Ameren Corporation		8.88			5-15-2014		3,738,000		4,054,657
FPL Group Capital Incorporation		2.60			9-1-2015		3,000,000		3,122,373
Great Plains Energy Incorporated		2.75			8-15-2013		1,000,000		1,007,482
Interstate Power & Light Company		3.30			6-15-2015		3,750,000		3,946,504
LG&E and KU Energy LLC		2.13			11-15-2015		2,635,000		2,699,555
Nextera Energy Capital Company		1.61			6-1-2014		1,000,000		1,010,123
Niagara Mohawk Power Corporation 144A		3.55			10-1-2014		3,667,000		3,819,225
PECO Energy Company		5.00			10-1-2014		2,000,000		2,134,944
Progress Energy Incorporated		5.63			1-15-2016		3,000,000		3,378,915
Virginia Electric & Power Company		5.25			12-15-2015		3,000,000		3,367,041
									28,540,819
Multi-Utilities: 0.17%
CMS Energy Corporation		2.75			5-15-2014		1,000,000		1,016,893
Total Corporate Bonds and Notes (Cost $272,390,612)									276,857,593
Municipal Obligations: 6.60%
Alabama: 0.27%
Courtland AL Industrial Development Board International Paper Company Project Series A (IDR)		5.00			11-1-2013		1,570,000		1,615,153
California: 1.61%
California PCFA Waste Management Services Incorporated Series A1 (Resource Recovery Revenue) ±		1.88			4-1-2025		2,000,000		2,036,260
California Public Works Board Lease Series E (Health Revenue)		3.68			12-1-2015		2,960,000		3,038,026
Irvine Ranch CA Water District (Water & Sewer Revenue)		2.39			3-15-2014		2,365,000		2,370,794
University of California Build America Bonds (Education Revenue) ±		1.99			5-15-2050		2,000,000		2,005,200
									9,450,280
Florida: 0.53%
Miami-Dade County FL IDA Waste Management Incorporated Florida Project (Resource Recovery Revenue) ±		2.63			8-1-2023		1,200,000		1,227,168
Miami-Dade County FL School Board COP (Lease Revenue, National/FGIC Insured)		5.00			5-1-2013		1,870,000		1,885,596
									3,112,764
Georgia: 0.55%
Georgia Municipal Gas Authority Taxable Gas Portfolio III Series F (Energy Revenue, GO of Authority Insured)		4.77			8-1-2015		3,000,000		3,242,220
Louisiana: 0.51%
Louisiana State Gas & Fuels Tax Build America Bonds Series A-4 (Tax Revenue) ±		2.70			5-1-2043		3,000,000		3,006,810

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

14 Wells Fargo Advantage Short-Term Bond Fund Portfolio of investments—February 28, 2013 (unaudited)

Security name	Interest rate			Maturity date			Principal		Value
Michigan: 0.93%
Michigan State Strategic Fund Limited (Resource Recovery Revenue) ±		4.25	%		8-1-2031		$	1,885,000	$	1,944,227
Wayne County MI (Tax Revenue)		3.00			3-15-2013			3,500,000		3,502,800
										5,447,027
New Jersey: 0.51%
Atlantic City NJ Tax Appeal (Tax Revenue, AGM Insured)		2.13			12-15-2013			3,000,000		3,006,990
New York: 0.02%
Onondaga County NY Property Tax Receivables (Lease Revenue)		3.50			4-1-2013			105,000		105,117
Ohio: 0.51%
Columbus Franklin County OH Finance Authority R&D (IDR)		3.45			2-15-2015			2,885,000		2,982,657
Oregon: 0.82%
Portland OR Taxable Pension (GO) ±(a)		0.14			6-1-2019			5,000,000		4,800,000
Wisconsin: 0.34%
Menomonee Falls WI (Tax Revenue)		4.25			11-1-2014			2,000,000		2,013,580
Total Municipal Obligations (Cost $38,388,159)										38,782,598
Non-Agency Mortgage Backed Securities: 8.95%
Bank of America Commercial Mortgage Incorporated Series 2004-1 Class A4		4.76			11-10-2039			1,997,287		2,047,451
Bank of America Mortgage Securities Series 2002-K Class 3A1 ±		2.75			10-20-2032			24,154		24,765
Bear Stearns Commercial Mortgage Securities Incorporated Series 2004-T14 Class A4 ±		5.20			1-12-2041			1,229,874		1,268,786
Bear Stearns Commercial Mortgage Securities Incorporated Series 2005-PWR 9 Class A4A		4.87			9-11-2042			2,827,000		3,066,614
Bear Stearns Commercial Mortgage Securities Incorporated Series 2005-PWR-7 Class A3 ±		5.12			2-11-2041			2,055,000		2,200,837
Bear Stearns Commercial Mortgage Securities Incorporated Series 2005-T18 Class A4 ±		4.93			2-13-2042			2,592,749		2,777,477
Bear Stearns Commercial Mortgage Securities Incorporated Series 2005-T20 ±		5.15			10-12-2042			1,100,000		1,208,644
Citigroup Deutsche Bank Commercial Mortgage Trust Series 2005-CD1 Class A4 ±		5.22			7-15-2044			2,500,000		2,743,933
CNH Equipment Trust Series 2011-C Class A2		0.90			4-15-2015			637,796		638,826
Commercial Mortgage Pass-Through Trust Series 2005-C6 Class A5A ±		5.12			6-10-2044			2,794,000		3,043,392
Commercial Mortgage Pass-Through Trust Series 2010-C1 Class A1 144A		3.16			7-10-2046			2,794,463		2,937,090
Commercial Mortgage Pass-Through Trust Series 2012-CR2 Class A1		0.82			8-15-2045			2,282,191		2,287,221
ContiMortgage Home Equity Trust Series 1996-2 ±(c)(i)		0.00			7-15-2027	��		1,190,183		3,606
Countrywide Home Loans Mortgage Pass-Through Trust Series 2001-HYB1 Class 2A1 ±		1.95			6-19-2031			352,848		356,458
Countrywide Home Loans Mortgage Pass-Through Trust Series 2004-20 Class 3A1 ±		2.25			9-25-2034			105,023		82,492
Credit Suisse First Boston Mortgage Securities Corporation Series 2006-C1 Class AAB ±		5.40			2-15-2039			1,425,455		1,478,911
Drexel Burnham Lambert CMO Trust Series T Class 4		8.45			9-20-2019			158,791		159,420
EquiFirst Mortgage Loan Trust Series 2003-2 Class 3A3 ±		1.33			9-25-2033			751,258		750,777
GE Capital Commercial Mortgage Corporation Series 2004-C2 Class A4		4.89			3-10-2040			2,955,000		3,046,850
Golden National Mortgage Asset-Backed Certificates Series 1998-GN1 Class M2(i)		8.02			2-25-2027			61,118		61,152

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

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Short-Term Bond Fund 15

Security name	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage Backed Securities (continued)
GSMPS Mortgage Loan Trust Series 1998-1 Class A ±144A		8.00	%		9-19-2027	$	454,424	$	470,253
GSMPS Mortgage Loan Trust Series 2006-RP2 Class 1AF1 ±144A		0.60			4-25-2036		1,446,540		1,211,857
Lehman Brothers UBS Commercial Mortgage Trust Series 2004-C6 Class A6 ±		5.02			8-15-2029		400,000		417,007
Lehman Brothers UBS Commercial Mortgage Trust Series 2005-C1 Class A4		4.74			2-15-2030		3,062,000		3,243,819
Lehman Brothers UBS Commercial Mortgage Trust Series 2005-C5 Class 4		4.95			9-15-2030		3,530,000		3,819,185
Master Mortgages Trust Series 2002-3 Class 4A1 ±		2.50			10-25-2032		17,045		17,288
Merrill Lynch Mortgage Trust Series 2004-KEY 2 Class A4 ±		4.86			8-12-2039		1,190,000		1,253,972
Morgan Stanley Capital I Series 2005-IQ10 Class A4A ±		5.23			9-15-2042		3,280,000		3,553,017
Morgan Stanley Capital I Series 2005-T19 Class A4A		4.89			6-12-2047		2,555,000		2,768,179
Morgan Stanley Dean Witter Capital I Series 2005-IQ9 Class A5		4.70			7-15-2056		1,000,000		1,060,634
National Credit Union Administration Board Guaranteed Notes Series 2010-C1 Class APT		2.65			10-29-2020		2,575,649		2,729,863
Nomura Asset Acceptance Corporation Series 2005-AR1 Class 1A1 ±		2.83			2-25-2035		1,475,360		1,458,618
Salomon Brothers Mortgage Securities VI Series 1987-3 Class A ¤		0.00			10-23-2017		1,885		1,868
Structured Mortgage Asset Residential Trust Series 1992-5B Class BO ¤(i)		0.00			6-25-2023		8,828		8,110
Terwin Mortgage Trust Series 2004-21HE Class 1A1 ±		1.16			12-25-2034		35,448		33,591
Wilshire Funding Corporation Series 1996-3 Class M2 ±		5.77			8-25-2032		122,817		120,353
Wilshire Funding Corporation Series 1996-3 Class M3 ±		5.77			8-25-2032		124,838		119,571
Wilshire Funding Corporation Series 1998-2 Class M1 ±		2.00			12-28-2037		45,257		41,361
Total Non-Agency Mortgage Backed Securities (Cost $52,991,748)									52,513,248
	Dividend yield					Shares
Preferred Stocks: 0.28%
Financials: 0.28%
Commercial Banks: 0.28%
Huntington Bancshares ±		3.83					80,000		1,647,504
Total Preferred Stocks (Cost $1,958,484)									1,647,504
	Interest rate					Principal
U.S. Treasury Securities: 1.64%
U.S. Treasury Note		0.25			7-15-2015	$	2,580,000		2,577,580
U.S. Treasury Note		0.88			1-31-2018		6,370,000		6,408,819
U.S. Treasury Note		1.88			2-28-2014		665,000		676,196
Total U.S. Treasury Securities (Cost $9,612,111)									9,662,595
Yankee Corporate Bonds and Notes: 13.15%
Consumer Discretionary: 1.67%
Auto Components: 0.35%
Autoliv Incorporated		3.85			4-30-2014		2,000,000		2,029,590
Diversified Consumer Services: 0.55%
Anglo American Capital Company 144A		9.38			4-8-2014		3,000,000		3,255,210
Media: 0.43%
Pearson Finance Two plc 144A		5.50			5-6-2013		2,500,000		2,518,825

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

16 Wells Fargo Advantage Short-Term Bond Fund Portfolio of investments—February 28, 2013 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Multiline Retail: 0.34%
Wesfarmers Limited 144A		7.00	%		4-10-2013	$	2,000,000	$	2,010,638
Energy: 1.06%
Oil, Gas & Consumable Fuels: 1.06%
Husky Energy Incorporated		5.90			6-15-2014		3,000,000		3,191,367
Petrobras International Finance Company		2.88			2-6-2015		3,000,000		3,055,077
									6,246,444
Financials: 8.60%
Capital Markets: 0.36%
Macquarie Group Limited 144A		7.30			8-1-2014		2,005,000		2,149,540
Commercial Banks: 7.70%
ABN Amro Bank NV 144A		3.00			1-31-2014		2,630,000		2,675,036
Bank of Montreal 144A		1.30			10-31-2014		2,500,000		2,536,000
Bank of Nova Scotia 144A		1.65			10-29-2015		3,430,000		3,525,011
Canadian Imperial Bank 144A «		0.90			9-19-2014		4,100,000		4,132,390
Canadian Imperial Bank 144A		2.75			1-27-2016		3,000,000		3,180,177
Commonwealth Bank of Australia ±		0.75			7-23-2014		4,000,000		4,013,332
Corporacion Andina De Fomento		3.75			1-15-2016		3,385,000		3,585,930
Intesa Sanpaolo SPA		3.13			1-15-2016		2,470,000		2,437,248
KFW Bankengruppe ±		0.28			11-28-2014		3,000,000		2,998,959
Nordea Eiendomskreditt 144A		1.88			4-7-2015		6,500,000		6,605,300
Standard Chartered Bank 144A		6.40			9-26-2017		2,000,000		2,329,420
Swedbank Hypotek 144A		2.13			8-31-2016		3,000,000		3,122,910
Toronto Dominion Bank 144A «		0.88			9-12-2014		4,000,000		4,029,600
									45,171,313
Diversified Financial Services: 0.54%
WPP Finance		8.00			9-15-2014		2,885,000		3,177,464
Industrials: 0.26%
Machinery: 0.26%
Pentair Finance SA 144A		1.35			12-1-2015		1,500,000		1,502,486
Materials: 0.22%
Metals & Mining: 0.22%
Arcelormittal Company		5.38			6-1-2013		1,250,000		1,261,265
Telecommunication Services: 1.34%
Diversified Telecommunication Services: 0.99%
Telefonos de Mexico SA		5.50			1-27-2015		2,510,000		2,707,294
Vivendi SA 144A		3.45			1-12-2018		3,000,000		3,115,623
									5,822,917

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

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Short-Term Bond Fund 17

Security name	Interest rate			Maturity date		Principal		Value
Wireless Telecommunication Services: 0.35%
Telefonica Moviles Chile SA 144A		2.88	%		11-9-2015	$	2,000,000	$	2,030,283
Total Yankee Corporate Bonds and Notes (Cost $75,923,389)									77,175,975
	Yield					Shares
Short-Term Investments: 5.43%
Investment Companies: 5.40%
Wells Fargo Advantage Cash Investment Money Market Fund, Select Class (l)(u)##		0.13					25,390,925		25,390,925
Wells Fargo Securities Lending Cash Investments, LLC (v)(l)(u)(r)		0.18					6,268,308		6,268,308
									31,659,233
						Principal
U.S. Treasury Securities: 0.03%
U.S Treasury Bill #(z)		0.07			3-21-2013	$	200,000		199,993
Total Short-Term Investments (Cost $31,859,226)									31,859,226

Total investments in securities
(Cost $594,397,314)*	102.33	%		600,593,738
Other assets and liabilities, net	(2.33	)		(13,700,531	)
Total net assets	100.00	%	$	586,893,207

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

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.

(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

%% Security issued on a when-issued basis.

¤ Security issued in zero coupon form with no periodic interest payments.

« All or a portion of this security is 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.

(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 Investment Company Act of 1940, as amended.

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

(z) Zero coupon security. Rate represents yield to maturity at time of purchase.

* Cost for federal income tax purposes is $594,555,266 and unrealized appreciation (depreciation) consists of:

Gross unrealized appreciation	$	8,229,799
Gross unrealized depreciation		(2,191,327	)
Net unrealized appreciation	$	6,038,472

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

18 Wells Fargo Advantage Short-Term Bond Fund Statement of assets and liabilities—February 28, 2013 (unaudited)

Assets
Investments
In unaffiliated securities (including securities on loan), at value (see cost below)	$	568,934,505
In affiliated securities, at value (see cost below)		31,659,233
Total investments, at value (see cost below)		600,593,738
Receivable for investments sold		5,378,064
Principal paydown receivable		32,574
Receivable for Fund shares sold		474,237
Receivable for interest		4,082,256
Receivable for securities lending income		281
Prepaid expenses and other assets		44,239
Total assets		610,605,389
Liabilities
Dividends payable		178,835
Payable for investments purchased		14,732,157
Payable for Fund shares redeemed		2,190,535
Payable upon receipt of securities loaned		6,268,308
Payable for daily variation margin on open futures contracts		15,516
Advisory fee payable		126,263
Distribution fees payable		10,809
Due to other related parties		83,080
Accrued expenses and other liabilities		106,679
Total liabilities		23,712,182
Total net assets	$	586,893,207
NET ASSETS CONSIST OF
Paid-in capital	$	582,546,130
Undistributed net investment income		246,651
Accumulated net realized losses on investments		(1,962,872	)
Net unrealized gains on investments		6,063,298
Total net assets	$	586,893,207
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE1
Net assets – Class A	$	66,453,033
Shares outstanding – Class A		7,534,116
Net asset value per share – Class A		$8.82
Maximum offering price per share – Class A2		$9.00
Net assets – Class C	$	18,788,821
Shares outstanding – Class C		2,132,503
Net asset value per share – Class C		$8.81
Net assets – Institutional Class	$	252,121,456
Shares outstanding – Institutional Class		28,570,954
Net asset value per share – Institutional Class		$8.82
Net assets – Investor Class	$	249,529,897
Shares outstanding – Investor Class		28,304,269
Net asset value per share – Investor Class		$8.82
Investment in unaffiliated securities (including securities on loan), at cost	$	562,738,081
Investments in affiliated securities, at cost	$	31,659,233
Total investments, at cost	$	594,397,314
Securities on loan, at value	$	6,141,508

1. Each Fund has an unlimited number of authorized shares.

2. Maximum offering price is computed as 100/98 of net asset value. On investments of $50,000 or more, the offering price is reduced.

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

Statement of operations—six months ended February 28, 2013 (unaudited) Wells Fargo Advantage Short-Term Bond Fund 19

Investment income
Interest	$	5,741,152
Income from affiliated securities		26,598
Securities lending income, net		10,827
Dividends		4,377
Total investment income		5,782,954
Expenses
Advisory fee		1,030,057
Administration fees
Fund level		134,947
Class A		53,197
Class C		14,715
Institutional Class		85,044
Investor Class		230,175
Shareholder servicing fees
Class A		83,120
Class C		22,992
Investor Class		302,861
Distribution fees
Class C		68,975
Custody and accounting fees		19,242
Professional fees		21,967
Registration fees		21,792
Shareholder report expenses		30,285
Trustees’ fees and expenses		5,205
Other fees and expenses		8,458
Total expenses		2,133,032
Less: Fee waivers and/or expense reimbursements		(217,424	)
Net expenses		1,915,608
Net investment income		3,867,346
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		1,400,841
Futures transactions		(33,872	)
Net realized gains on investments		1,366,969
Net change in unrealized gains (losses) on:
Unaffiliated securities		(267,299	)
Futures transactions		(183,514	)
Net change in unrealized gains (losses) on investments		(450,813	)
Net realized and unrealized gains (losses) on investments		916,156
Net increase in net assets resulting from operations	$	4,783,502

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

20 Wells Fargo Advantage Short-Term Bond Fund Statement of changes in net assets

	Six months ended February 28, 2013 (unaudited)						Year ended August 31, 2012
Operations
Net investment income				$	3,867,346					$	11,526,569
Net realized gains (losses) on investments					1,366,969						(3,124,176	)
Net change in unrealized gains (losses) on investments					(450,813	)					6,556,467
Net increase in net assets resulting from operations					4,783,502						14,958,860
Distributions to shareholders from
Net investment income
Class A					(448,154	)					(951,345	)
Class C					(55,008	)					(173,151	)
Institutional Class					(1,756,392	)					(6,357,943	)
Investor Class					(1,602,633	)					(4,041,947	)
Total distributions to shareholders					(3,862,187	)					(11,524,386	)
		Shares						Shares
Capital share transactions
Proceeds from shares sold
Class A		2,244,213			19,790,730			4,621,145			40,466,730
Class C		400,309			3,525,829			717,899			6,268,775
Institutional Class		12,440,218			109,744,246			8,806,581			77,078,705
Investor Class		3,060,922			26,981,968			4,487,261			39,169,799
					160,042,773						162,984,009
Reinvestment of distributions
Class A		44,432			391,891			98,269			859,850
Class C		5,590			49,245			16,963			148,155
Institutional Class		94,149			830,397			424,162			3,712,251
Investor Class		165,382			1,457,627			412,671			3,607,439
					2,729,160						8,327,695
Payment for shares redeemed
Class A		(2,617,533	)		(23,078,087	)		(3,312,311	)		(28,973,568	)
Class C		(376,380	)		(3,315,302	)		(861,195	)		(7,524,014	)
Institutional Class		(16,025,406	)		(141,379,665	)		(14,488,745	)		(127,045,929	)
Investor Class		(3,124,384	)		(27,541,373	)		(5,078,990	)		(44,391,058	)
					(195,314,427	)					(207,934,569	)
Net decrease in net assets resulting from capital share transactions					(32,542,494	)					(36,622,865	)
Total decrease in net assets					(31,621,179	)					(33,188,391	)
Net assets
Beginning of period					618,514,386						651,702,777
End of period				$	586,893,207					$	618,514,386
Undistributed net investment income				$	246,651					$	241,492

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

Financial highlights Wells Fargo Advantage Short-Term Bond Fund 21

(For a share outstanding throughout each period)

	Six months ended February 28, 2013 (unaudited)			Year ended August 31									Year ended May 31
CLASS A				2012			2011			20101			2010			20092			20082
Net asset value, beginning of period	$	8.81		$	8.76		$	8.73		$	8.66		$	8.23		$	8.38		$	8.49
Net investment income		0.06			0.14			0.16			0.05			0.23			0.32			0.40
Net realized and unrealized gains (losses) on investments		0.01			0.05			0.04			0.07			0.46			(0.15	)		(0.11	)
Total from investment operations		0.07			0.19			0.20			0.12			0.69			0.17			0.29
Distributions to shareholders from
Net investment income		(0.06	)		(0.14	)		(0.17	)		(0.05	)		(0.26	)		(0.32	)		(0.40	)
Net asset value, end of period	$	8.82		$	8.81		$	8.76		$	8.73		$	8.66		$	8.23		$	8.38
Total return3		0.79	%		2.22	%		2.33	%		1.37	%		8.43	%		2.14	%		3.50	%
Ratios to average net assets (annualized)
Gross expenses		0.88	%		0.90	%		0.89	%		0.89	%		0.93	%		0.95	%		1.09	%
Net expenses		0.80	%		0.80	%		0.80	%		0.80	%		0.80	%		0.80	%		0.81	%
Net investment income		1.35	%		1.63	%		1.84	%		2.05	%		2.64	%		3.86	%		4.69	%
Supplemental data
Portfolio turnover rate		44	%		44	%		51	%		11	%		45	%		50	%		47	%
Net assets, end of period (000s omitted)		$66,453			$69,247			$56,555			$47,121			$41,369			$16,456			$11,904

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.

22 Wells Fargo Advantage Short-Term Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2013 (unaudited)			Year ended August 31									Year ended May 31
CLASS C				2012			2011			20101			2010			2009			20082
Net asset value, beginning of period	$	8.80		$	8.75		$	8.73		$	8.65		$	8.22		$	8.37		$	8.45
Net investment income		0.03			0.08			0.10			0.03			0.16			0.26			0.05
Net realized and unrealized gains (losses) on investments		0.01			0.05			0.03			0.08			0.46			(0.15	)		(0.08	)
Total from investment operations		0.04			0.13			0.13			0.11			0.62			0.11			(0.03	)
Distributions to shareholders from
Net investment income		(0.03	)		(0.08	)		(0.11	)		(0.03	)		(0.19	)		(0.26	)		(0.05	)
Net asset value, end of period	$	8.81		$	8.80		$	8.75		$	8.73		$	8.65		$	8.22		$	8.37
Total return3		0.41	%		1.46	%		1.45	%		1.29	%		7.61	%		1.35	%		(0.37	)%
Ratios to average net assets (annualized)
Gross expenses		1.63	%		1.65	%		1.65	%		1.65	%		1.68	%		1.67	%		1.85	%
Net expenses	��	1.55	%		1.55	%		1.55	%		1.55	%		1.55	%		1.53	%		1.58	%
Net investment income		0.60	%		0.89	%		1.10	%		1.28	%		1.70	%		2.72	%		3.56	%
Supplemental data
Portfolio turnover rate		44	%		44	%		51	%		11	%		45	%		50	%		47	%
Net assets, end of period (000s omitted)		$18,789		$	18,501		$	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 23

(For a share outstanding throughout each period)

	Six months ended February 28, 2013 (unaudited)			Year ended August 31									Year ended May 31
INSTITUTIONAL CLASS				2012			2011			20101			2010			2009			2008
Net asset value, beginning of period	$	8.81		$	8.77		$	8.74		$	8.66		$	8.24		$	8.39		$	8.49
Net investment income		0.07			0.17			0.19			0.06			0.25			0.35			0.43
Net realized and unrealized gains (losses) on investments		0.01			0.04			0.04			0.08			0.45			(0.15	)		(0.10	)
Total from investment operations		0.08			0.21			0.23			0.14			0.70			0.20			0.33
Distributions to shareholders from
Net investment income		(0.07	)		(0.17	)		(0.20	)		(0.06	)		(0.28	)		(0.35	)		(0.43	)
Net asset value, end of period	$	8.82		$	8.81		$	8.77		$	8.74		$	8.66		$	8.24		$	8.39
Total return2		0.94	%		2.43	%		2.66	%		1.57	%		8.65	%		2.47	%		3.97	%
Ratios to average net assets (annualized)
Gross expenses		0.55	%		0.57	%		0.56	%		0.56	%		0.58	%		0.59	%		0.64	%
Net expenses		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%
Net investment income		1.65	%		1.95	%		2.17	%		2.38	%		2.84	%		4.22	%		5.08	%
Supplemental data
Portfolio turnover rate		44	%		44	%		51	%		11	%		45	%		50	%		47	%
Net assets, end of period (000s omitted)		$252,121			$282,512			$327,124			$292,080			$285,559			$77,900			$87,101

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.

24 Wells Fargo Advantage Short-Term Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2013 (unaudited)			Year ended August 31									Year ended May 31
INVESTOR CLASS				2012			2011			20101			2010			2009			2008
Net asset value, beginning of period	$	8.80		$	8.76		$	8.73		$	8.66		$	8.23		$	8.38		$	8.48
Net investment income		0.06			0.14			0.16			0.05			0.23			0.32			0.40
Net realized and unrealized gains (losses) on investments		0.02			0.04			0.04			0.07			0.45			(0.15	)		(0.10	)
Total from investment operations		0.08			0.18			0.20			0.12			0.68			0.17			0.30
Distributions to shareholders from
Net investment income		(0.06	)		(0.14	)		(0.17	)		(0.05	)		(0.25	)		(0.32	)		(0.40	)
Net asset value, end of period	$	8.82		$	8.80		$	8.76		$	8.73		$	8.66		$	8.23		$	8.38
Total return2		0.89	%		2.08	%		2.30	%		1.36	%		8.38	%		2.09	%		3.57	%
Ratios to average net assets (annualized)
Gross expenses		0.91	%		0.93	%		0.92	%		0.94	%		0.99	%		0.99	%		1.23	%
Net expenses		0.82	%		0.83	%		0.83	%		0.84	%		0.85	%		0.85	%		0.87	%
Net investment income		1.33	%		1.61	%		1.82	%		2.02	%		2.73	%		3.87	%		4.70	%
Supplemental data
Portfolio turnover rate		44	%		44	%		51	%		11	%		45	%		50	%		47	%
Net assets, end of period (000s omitted)		$249,530			$248,254			$248,514			$266,746			$267,625			$250,572			$268,790

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 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 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

All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (normally 4 p.m. Eastern Time).

Fixed income securities acquired with maturities exceeding 60 days are valued based on evaluated bid prices received from an independent pricing service 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 independent pricing service or values received are deemed not representative of market value, values will be obtained from a broker-dealer or otherwise determined based on the Fund’s Valuation Procedures.

Debt securities of sufficient credit quality acquired with 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.

Equity securities that are listed on a foreign or domestic exchange, except for The Nasdaq Stock Market, Inc. (“Nasdaq”), are valued at the official closing price or, if none, the last sales price. Securities listed on Nasdaq are valued at the Nasdaq Official Closing Price (“NOCP”). If no NOCP is available, securities are valued at the last sales price. If no sales price is shown on the Nasdaq, the bid price will be used. If no sale occurs on the primary exchange or market for the security that day or if no sale occurs and no bid price is shown on Nasdaq, the prior day’s price will be deemed “stale” and fair values will be determined in accordance with the Fund’s Valuation Procedures.

Investments in registered open-end investment companies are valued at net asset value. Non-registered investment companies are fair 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. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Management Valuation Team of Wells Fargo Funds Management, LLC (“Funds Management”). The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Management Valuation Team which may include items for ratification.

Valuations of fair valued securities are compared to the next actual sales price when available, or other appropriate market information to assess the continued appropriateness of the fair valuation methodology used. These securities are fair valued on a day-to-day basis, taking into consideration changes to appropriate market information and any significant changes to the input factors considered in the valuation process until there is a readily available price provided on the exchange or by an independent pricing service. Valuations received from an independent pricing service or broker quotes are periodically validated by comparisons to most recent trades and valuations provided by other independent pricing services in addition to the review of prices by the adviser and/or subadviser. Unobservable inputs used in determining fair valuations are identified based on the type of security, taking into consideration factors utilized by market participants in valuing the investment, knowledge about the issuer and the current market environment.

26 Wells Fargo Advantage Short-Term Bond Fund Notes to financial statements (unaudited)

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 Funds Management and is subadvised by Wells Capital Management Incorporated (“WellsCap”). 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 WellsCap for its services as subadviser. 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 in an amount at least equal in value to the Fund’s commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.

Term loans

The Fund may invest in term loans. 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 recorded on the basis of identified cost.

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 27

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

Federal and other taxes

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

The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

As of August 31, 2012, the Fund had $3,123,253 of current year deferred post-October capital losses, which will be recognized on the first day of the current fiscal 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 any 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, use of amortized cost, etc.)

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

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

28 Wells Fargo Advantage Short-Term Bond Fund Notes to financial statements (unaudited)

As of February 28, 2013, the inputs used in valuing investments in securities, 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	$	65,122,798	$	1,950	$	65,124,748
Asset-backed securities		0		46,970,251		0		46,970,251
Corporate bonds and notes		0		276,857,593		0		276,857,593
Municipal obligations		0		33,982,598		4,800,000		38,782,598
Non-agency mortgage backed securities		0		52,513,248		0		52,513,248
Equity securities
Preferred stocks		0		1,647,504		0		1,647,504
U.S. Treasury securities		9,662,595		0		0		9,662,595
Yankee corporate bonds & notes		0		77,175,975		0		77,175,975
Short-term investments
Investment companies		25,390,925		6,268,308		0		31,659,233
U.S. Treasury securities		199,993		0		0		199,993
	$	35,253,513	$	560,538,275	$	4,801,950	$	600,593,738

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

As of February 28, 2013, 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+	$	(133,126	)	$	0	$	0	$	(133,126	)

+ 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 28, 2013, the Fund did not have any transfers into/out of Level 1 or Level 2.

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 subadviser, 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 0.35% and declining to 0.25% as the average daily net assets of the Fund increase. Prior to January 1, 2013, the annual advisory started at 0.40% and declined to 0.30% as the average daily net assets of the Fund increased. For the six months ended February 28, 2013, 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 a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. WellsCap, an affiliate of Funds Management, is the subadviser 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.

Notes to financial statements (unaudited) Wells Fargo Advantage Short-Term Bond Fund 29

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		016	%
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, 2013, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.80% for Class A shares, 1.55% for Class C shares, 0.48% for Institutional Class shares and 0.81% for Investor Class shares.

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 28, 2013, Wells Fargo Funds Distributor, LLC received $1,368 from the sale of Class A shares and $978 in contingent deferred sales charges from redemptions of Class C shares.

Shareholder servicing fees

The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, 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.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding short-term securities, for the six months ended February 28, 2013 were as follows:

Purchases at cost		Sales proceeds
U.S. government	Non-U.S. government	U.S. government	Non-U.S. government
$42,861,485	$209,598,900	$76,149,524	$156,660,272

6. DERIVATIVE TRANSACTIONS

During the six months ended February 28, 2013, the Fund entered into futures contracts to speculate on interest rates and to help shorten or lengthen the duration of the portfolio.

At February 28, 2013, the Fund had long and short futures contracts outstanding as follows:

Expiration date	Contracts	Type	Contract value at February 28, 2013		Unrealized gains (losses)
6-28-2013	679 Long	2-Year U.S. Treasury Notes	$	149,698,281	$	18,201
6-28-2013	378 Short	5-Year U.S. Treasury Notes		46,866,094		(151,327	)

The Fund had an average notional amount of $95,069,106 in long futures contracts and $8,848,324 in short futures contracts during the six months ended February 28, 2013.

30 Wells Fargo Advantage Short-Term Bond Fund Notes to financial statements (unaudited)

On February 28, 2013, the cumulative unrealized losses on futures contracts in the amount of $133,126, 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 losses and change in unrealized gains or losses on futures contracts are reflected in the Statement of Operations.

7. CAPITAL SHARES

As a result of the transfer of assets from Funds Management, former program manager of the 529 college savings plans for the State of Wisconsin, to a new program manager, the Fund redeemed assets from its Institutional Class on October 26, 2012 with a value of $96,706,612, representing 16.1% of the Fund. This amount is reflected in the Statement of Changes in Net Assets for the six months ended February 28, 2013.

8. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds in the Trust) 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. For the six months ended February 28, 2013, the Fund paid $390 in commitment fees.

For the six months ended February 28, 2013, there were no borrowings by the Fund under the agreement.

9. INDEMNIFICATION

Under the Trust’s organizational documents, the officers and directors are indemnified against certain liabilities that may arise out of performance of their duties to the Trust. Additionally, in the normal course of business, the Trust may enter into contracts with service providers that contain a variety of indemnification clauses. The Trust’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated.

10. NEW ACCOUNTING PRONOUNCEMENT

In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2011-11, Disclosures about Offsetting Assets and Liabilities. ASU 2011-11, which amends FASB ASC Topic 210, Balance Sheet, creates new disclosure requirements which require entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently assessing the potential impact, in addition to expanded financial statement disclosure, that may result from adopting this ASU.

Other information (unaudited) Wells Fargo Advantage Short-Term 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 website at wellsfargoadvantagefunds.com, or visiting the SEC website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge on the Fund’s website at wellsfargoadvantagefunds.com or by visiting the SEC website at sec.gov.

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available on the Fund’s website (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 website 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 website at sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at 233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

32 Wells Fargo Advantage Short-Term Bond Fund Other information (unaudited)

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers listed in the table below acts in identical capacities for the Wells Fargo Advantage familyof funds, which consists of 135 funds¹ comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information². 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	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. Advisory Board Member, Palm Coast Academy (charter school). Mr. Harris is a certified public accountant.	CIGNA Corporation; Deluxe Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, 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 48 portfolios as of 1/31/2013); 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, Morgan Stanley Director of the Center for Leadership Development and Research 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
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

Other information (unaudited) Wells Fargo Advantage Short-Term 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
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.	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 Tree Trust (non-profit corporation). Director of the American Chestnut Foundation (non-profit corporation).	Asset Allocation Trust

* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.

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.
Nancy Wiser1 (Born 1967)	Treasurer, since 2012	Executive Vice President of Wells Fargo Funds Management, LLC since 2011. Chief Operating Officer and Chief Compliance Officer at LightBox Capital Management LLC, from 2008 to 2011. Owned and operated a consulting business providing services to various hedge funds including acting as Chief Operating Officer and Chief Compliance Officer for a hedge fund from 2007 to 2008. Chief Operating Officer and Chief Compliance Officer of GMN Capital LLC from 2006 to 2007.
C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Officer, since 2003	Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001. Vice President and Managing Counsel of Wells Fargo Bank, N.A. since 1996.
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.
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 DePalma1 (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.

1. Nancy Wiser acts as Treasurer of 74 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 61 funds and Assistant Treasurer of 74 funds in the Fund Complex.

2. 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 website at wellsfargoadvantagefunds.com.

34 Wells Fargo Advantage Short-Term Bond Fund List of abbreviations

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian 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

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

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

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 depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Industrial development revenue

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

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

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

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

SPA —  Standby purchase agreement

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

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

For more information

More information about Wells Fargo Advantage Funds is available free upon request. To obtain literature, please write, email, visit the Fund’s website, or call:

Wells Fargo Advantage Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: wfaf@wellsfargo.com

Website: 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 current prospectus and, if available, a summary prospectus containing more complete information, including charges and expenses, call 1-800-222-8222 or visit the Fund’s website 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

© 2013 Wells Fargo Funds Management, LLC. All rights reserved.

215350 04-13 SA221/SAR221 2-13

Wells Fargo Advantage

Short-Term High Yield Bond Fund

Semi-Annual Report

February 28, 2013

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	4
Fund expenses	6
Portfolio of investments	7
Financial statements
Statement of assets and liabilities	15
Statement of operations	16
Statement of changes in net assets	17
Financial highlights	18
Notes to financial statements	23
Other information	28
List of abbreviations	31

The views expressed and any forward-looking statements are as of February 28, 2013, 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 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 the 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 the investment objectives, risks, charges, and expenses before investing. For a current prospectus and, if available, a summary prospectus, for Wells Fargo Advantage Funds, 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, 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 $225 billion in assets under management, as of February 28, 2013.

Equity funds
Asia Pacific Fund	Enterprise Fund†	Opportunity Fund†
C&B Large Cap Value Fund	Global Opportunities Fund	Precious Metals Fund
C&B Mid Cap Value Fund	Growth Fund	Premier Large Company Growth Fund
Capital Growth Fund	Index Fund	Small Cap Opportunities Fund
Common Stock Fund	International Equity Fund	Small Cap Value Fund
Disciplined U.S. Core Fund	International Value Fund	Small Company Growth Fund
Discovery Fund†	Intrinsic Small Cap Value Fund	Small Company Value Fund
Diversified Equity Fund	Intrinsic Value Fund	Small/Mid Cap Value Fund
Diversified International Fund	Intrinsic World Equity Fund	Special Mid Cap Value Fund
Emerging Growth Fund	Large Cap Core Fund	Special Small Cap Value Fund
Emerging Markets Equity Fund	Large Cap Growth Fund	Specialized Technology Fund
Emerging Markets Equity Income Fund	Large Company Value Fund	Traditional Small Cap Growth Fund
Endeavor Select Fund†	Omega Growth Fund	Utility and Telecommunications Fund
Bond funds
Adjustable Rate Government Fund	High Yield Municipal Bond Fund	Short Duration Government Bond Fund
California Limited-Term Tax-Free Fund	Income Plus Fund	Short-Term Bond Fund
California Tax-Free Fund	Inflation-Protected Bond Fund	Short-Term High Yield Bond Fund
Colorado Tax-Free Fund	Intermediate Tax/AMT-Free Fund	Short-Term Municipal Bond Fund
Core Bond Fund	International Bond Fund	Strategic Income Fund
Emerging Markets Local Bond Fund	Minnesota Tax-Free Fund	Strategic Municipal Bond Fund
Government Securities Fund	Municipal Bond Fund	Ultra Short-Term Income Fund
High Income Fund	North Carolina Tax-Free Fund	Ultra Short-Term Municipal Income Fund
High Yield Bond Fund	Pennsylvania Tax-Free 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	Treasury Plus Money Market Fund
Cash Investment Money Market Fund	Municipal Cash Management 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 (unaudited)

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Fixed-income performance was best among lower-rated corporate bonds and commercial mortgage-backed securities, as continued monetary accommodation from the U.S. Federal Reserve strengthened the demand for securities with higher yields.

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 28, 2013. During the period, fixed-income performance was best among lower-rated corporate bonds and commercial mortgage-backed securities (CMBS), as continued monetary accommodation from the U.S. Federal Reserve (Fed) strengthened the demand for securities with higher yields. However, the longest-maturity segments of the fixed-income market generally underperformed the mid-maturity and short-maturity segments because longer-maturity U.S. Treasury yields shifted higher, most notably in January 2013, thereby influencing a decline in the prices of longer-maturity fixed-income securities.

Credit sectors rallied for much of the second half of 2012, outperforming U.S. Treasuries.

As policymaking in Europe during the summer months of 2012 began to reassure global credit markets that the euro would likely survive and that all appropriate measures would be taken to bolster European debt markets, lower-rated securities in the U.S. once again rallied in price, significantly outpacing the returns from U.S. Treasuries. Corporate bonds and CMBS were once again the best-performing sectors of the core fixed income markets from August 2012 through the end of the year, as they had been before the European credit crisis escalated in the spring.

In December 2012, the Fed reaffirmed its commitment to highly accommodative monetary policy, citing its dual mandate of fostering maximum employment and price stability. For the first time since the financial crisis began in 2008, the Fed formally announced specific target ranges that could trigger a change to its highly accommodative monetary policy, most notably that exceptionally low interest rates would be appropriate at least as long as the unemployment rate remained above 6.5% and inflation expectations were no more than half a percentage point above its 2.0% inflation target. These thresholds were the first official measures of when and how a change to monetary policy may take effect.

U.S. Treasury yields shift significantly higher in January 2013.

With growing confidence in the U.S. economy and improving stability in the European credit markets, longer-maturity U.S. Treasury yields began to shift significantly higher in January 2013. The yield on the 10-year U.S. Treasury note ratcheted higher to 2.00% in January 2013, after finishing 2012 at 1.75% and reaching a modern-era record low of 1.41% in late July 2012. The 30-year U.S. Treasury bond finished the period at a yield of 3.09%, up from 2.58% at the start of the period. Thus, during the period, longer-maturity securities felt the pressure of yields shifting higher, which eroded some of their pricing. The best-performing sections of the yield curve were generally in the five- to 10-year range, which benefited from relatively adequate yields while remaining mostly insulated from the price erosion in maturities of 10 years and longer.

Despite this persistent trend toward higher yields during the final three months of the period, which chipped away at some security prices, several areas of the taxable fixed income markets continued to generate relatively compelling returns, considering the extraordinarily low level of interest rates. Spreads in the corporate bond sector continued to tighten while U.S. Treasury yields shifted higher, thus providing some protection against price erosion. CMBS spreads also tightened during the period resulting in some of the strongest six-month returns in the taxable investment-grade sectors. Within the Barclays U.S. Aggregate Bond Index¹, the CMBS sector returned 2.35% during the six-month period, the corporate sector

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

Letter to shareholders (unaudited) Wells Fargo Advantage Short-Term High Yield Bond Fund 3

returned 1.64%, and the U.S. Treasury sector returned (0.67)%. The lower-rated credit tiers continued to outperform each respectively higher credit tier during the period, despite the rising yield influence in the longest maturities.

Overall, the theme for the six-month period in the U.S. fixed income markets was relatively strong performance from the corporate and CMBS sectors, particularly in the lower-rated credit tiers, with a protracted decline in prices of U.S. Treasuries. On the whole, most credit-related sectors generated relatively generous returns during the six-month period considering the extraordinarily low level of interest rates. However, the trend from previous periods of strong performance from longer-maturity securities began to unwind in January and February 2013. During this period, credit risks were rewarded better than interest rate risks, meaning that higher-yield compensation from lower-rated securities performed better than higher-yield compensation from longer-maturity securities, which experienced price pressures. Investment strategies that focused on mid- to lower-rated credit tiers and mid-maturity securities generally saw the strongest returns during the period.

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.

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 website 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

Most credit-related sectors generated relatively generous returns during the six-month period considering the extraordinarily low level of interest rates.

Notice to shareholders

At its November 6-7, 2012 meeting, the Board of Trustees unanimously approved the following modifications to certain Class A sales load waiver privileges, with each change becoming effective on July 1, 2013:

n Annuity payments received under an annuity option or from death proceeds will no longer qualify for net asset value (NAV) repurchase privileges.

n The ability to reinvest redemption proceeds at NAV will be reduced from 120 days to 90 days.

n NAV purchase privileges for certain types of “grandfathered” shareholders will be modified to remove the ability to purchase Class A shares at NAV, unless those shares are held directly with the Fund.

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

4 Wells Fargo Advantage Short-Term High Yield Bond Fund Performance highlights (unaudited)

Investment objective

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

Adviser

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Kevin J. Maas, CFA

Thomas M. Price, CFA

Michael J. Schueller, CFA

Average annual total returns¹ (%) as of February 28, 2013

			Including sales charge						Excluding sales charge						Expense ratios2 (%)
	Inception date		1 year		5 year		10 year		1 year		5 year		10 year		Gross		Net3
Class A (SSTHX)		2-29-2000		1.68		4.64		4.65		4.82		5.28		4.97		0.95		0.82
Class C (WFHYX)		3-31-2008		3.04		4.48		4.24		4.04		4.48		4.24		1.70		1.57
Administrator Class (WDHYX)		7-30-2010		–		–		–		4.99		5.36		5.01		0.89		0.66
Institutional Class (STYIX)		11-30-2012		–		–		–		4.88		5.33		5.00		0.62		0.51
Investor Class (STHBX)		6-30-1997		–		–		–		4.79		5.25		4.99		0.98		0.85
Short-Term High Yield Bond Index III4		–		–		–		–		10.08		9.39		8.39		–		–
BofA Merrill Lynch High Yield U.S. Corporates, Cash Pay, BB Rated, 1-5 Year Index5		–		–		–		–		9.66		9.20		7.92		–		–

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 website, 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, Institutional Class, and Investor Class shares are sold without a front-end sales charge or contingent deferred sales charge.

Bond 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 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). The Fund is exposed to foreign investment risk. Consult the Fund’s prospectus for additional information on these and other risks.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Advantage Short-Term High Yield Bond Fund 5

Ten largest long-term holdings6 (%) as of February 28, 2013
Constellation Brands Incorporated, 7.25%, 9-1-2016	1.12
EchoStar DBS Corporation, 7.13%, 2-1-2016	1.08
Health Management Associates Incorporated, 6.13%, 4-15-2016	0.97
Hornbeck Offshore Services Incorporated Series B, 8.00%, 9-1-2017	0.94
Cott Beverages Incorporated, 8.38%, 11-15-2017	0.94
HollyFrontier Corporation, 9.88%, 6-15-2017	0.92
Owens Brockway Glass Container Incorporated, 7.38%, 5-15-2016	0.89
Jarden Corporation, 7.50%, 5-1-2017	0.88
Sinclair Television Group, 9.25%, 11-1-2017	0.86
Resolute Forest Products Incorporated, 10.25%, 10-15-2018	0.86

Credit quality⁷ as of February 28, 2013

1. Effective June 20, 2008, the Advisor Class was renamed Class A and modified to assume the features and attributes of Class A. 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 the Class A shares. If these expenses had not been included, returns would be higher. 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.

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

3. The Adviser has committed through December 31, 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 0.81% for Class A, 1.56% for Class C, 0.65% for Administrator Class, 0.50% for Institutional Class, and 0.84% for Investor Class. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the cap. Without this cap, the Fund’s returns would have been lower.

4. 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 U.S. 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 U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic marke twith maturities of one to five years. You cannot invest directly in an index.

5. 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.

6. 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.

7. 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). Moody’s rates the creditworthiness of short-term securities from P-1 (highest) to P-3 (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 long-term investments of the Fund. We generally define higher-quality (investment grade) bonds as bonds having a rating above BBB/Baa and lower-quality bonds as bonds having a rating below BBB/Baa.

6 Wells Fargo Advantage Short-Term High Yield Bond Fund Fund expenses (unaudited)

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, 2012 to February 28, 2013.

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 9-1-2012		Ending account value 2-28-2013		Expenses paid during the period1		Net annual expense ratio
Class A
Actual	$	1,000.00	$	1,022.76	$	4.06		0.81	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.78	$	4.06		0.81	%
Class C
Actual	$	1,000.00	$	1,018.97	$	7.81		1.56	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.06	$	7.80		1.56	%
Administrator Class
Actual	$	1,000.00	$	1,023.58	$	3.26		0.65	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.57	$	3.26		0.65	%
Institutional Class
Actual	$	1,000.00	$	1,022.50	$	2.51		0.50	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.32	$	2.51		0.50	%
Investor Class
Actual	$	1,000.00	$	1,022.61	$	4.21		0.84	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.63	$	4.21		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).

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Short-Term High Yield Bond Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Corporate Bonds and Notes: 66.46%
Consumer Discretionary: 18.64%
Auto Components: 2.55%
American Axle & Manufacturing Holdings Incorporated «144A		9.25	%		1-15-2017	$	7,444,000	$	8,188,400
Lear Corporation		7.88			3-15-2018		5,693,000		6,162,673
Tenneco Automotive Incorporated		7.75			8-15-2018		5,870,000		6,449,663
TRW Automotive Incorporated 144A		7.25			3-15-2017		7,400,000		8,510,000
TRW Automotive Incorporated 144A		8.88			12-1-2017		3,325,000		3,632,563
									32,943,299
Diversified Consumer Services: 0.76%
Service Corporation International		6.75			4-1-2015		3,300,000		3,588,750
Service Corporation International		7.00			6-15-2017		5,500,000		6,221,875
									9,810,625
Hotels, Restaurants & Leisure: 0.95%
MGM Resorts International		6.63			7-15-2015		6,000,000		6,480,000
Seminole Indian Tribe of Florida 144A		7.75			10-1-2017		5,340,000		5,787,225
									12,267,225
Household Durables: 2.88%
DR Horton Incorporated «		3.63			2-15-2018		2,000,000		2,005,000
DR Horton Incorporated		4.75			5-15-2017		5,750,000		6,066,250
DR Horton Incorporated		6.13			1-15-2014		3,000,000		3,101,250
Jarden Corporation		7.50			5-1-2017		10,000,000		11,312,500
Lennar Corporation 144A		4.13			12-1-2018		7,000,000		6,947,500
Mohawk Industries Incorporated		6.38			1-15-2016		6,900,000		7,779,750
									37,212,250
Leisure Equipment & Products: 0.49%
Easton Bell Sports Incorporated		9.75			12-1-2016		5,830,000		6,289,171
Media: 6.36%
Belo Corporation		8.00			11-15-2016		1,580,000		1,702,450
CC Holdings GS V LLC 144A		2.38			12-15-2017		6,000,000		6,041,040
Cequel Communications Holdings 144A		8.63			11-15-2017		7,000,000		7,490,000
Cinemark USA Incorporated		8.63			6-15-2019		6,500,000		7,206,875
CSC Holdings LLC		7.63			7-15-2018		7,750,000		8,912,500
EchoStar DBS Corporation		7.13			2-1-2016		12,500,000		13,906,250
Gannett Companies Incorporated		8.75			11-15-2014		5,000,000		5,575,000
Lamar Media Corporation Series C		9.75			4-1-2014		7,500,000		8,128,125
Sinclair Television Group 144A		9.25			11-1-2017		10,250,000		11,121,250
Sirius XM Radio Incorporated 144A		7.63			11-1-2018		4,217,000		4,649,243
Sirius XM Radio Incorporated 144A		8.75			4-1-2015		6,500,000		7,263,750
									81,996,483

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

8 Wells Fargo Advantage Short-Term High Yield Bond Fund Portfolio of investments—February 28, 2013 (unaudited)

Security name		Interest rate			Maturity date		Principal		Value
Multiline Retail: 0.21%
Macy’s Retail Holdings Incorporated			5.75	%		7-15-2014	$	2,500,000	$	2,661,233
Specialty Retail: 2.74%
Autonation Incorporated			6.75			4-15-2018		147,000		167,948
Avis Budget Car Rental LLC ±			2.79			5-15-2014		7,900,000		7,900,079
Avis Budget Finance Incorporated «144A			4.88			11-15-2017		3,000,000		3,022,500
Best Buy Company Incorporated			7.25			7-15-2013		3,880,000		3,928,500
Limited Brands Incorporated			5.25			11-1-2014		6,000,000		6,345,000
Limited Brands Incorporated			6.90			7-15-2017		5,540,000		6,357,150
Sally Beauty Holdings Incorporated			6.88			11-15-2019		6,850,000		7,637,750
										35,358,927
Textiles, Apparel & Luxury Goods: 0.95%
Hanesbrands Incorporated	��		8.00			12-15-2016		3,375,000		3,666,094
Jones Group Incorporated			5.13			11-15-2014		8,250,000		8,641,875
										12,307,969
Consumer Staples: 5.14%
Beverages: 2.06%
Constellation Brands Incorporated			7.25			9-1-2016		12,750,000		14,455,313
Cott Beverages Incorporated			8.38			11-15-2017		11,218,000		12,129,463
										26,584,776
Food & Staples Retailing: 0.47%
Dollar General Corporation			4.13			7-15-2017		5,750,000		6,080,625
Food Products: 1.97%
B&G Foods Incorporated			7.63			1-15-2018		8,325,000		8,928,563
Dean Foods Company			7.00			6-1-2016		5,000,000		5,531,250
Dole Food Company Incorporated			13.88			3-15-2014		5,500,000		5,898,750
TreeHouse Foods Incorporated			7.75			3-1-2018		4,705,000		5,087,281
										25,445,844
Household Products: 0.64%
Spectrum Brands			9.50			6-15-2018		7,250,000		8,219,688
Energy: 10.52%
Energy Equipment & Services: 1.19%
Hornbeck Offshore Services Incorporated Series B			8.00			9-1-2017		11,435,000		12,163,981
Targa Resources Partners LP			7.88			10-15-2018		2,950,000		3,230,250
										15,394,231
Oil, Gas & Consumable Fuels: 9.33%
Arch Coal Incorporated «			8.75			8-1-2016		6,000,000		6,120,000
Berry Petroleum Companies Class A			10.25			6-1-2014		5,194,000		5,661,460
Bill Barrett Corporation			9.88			7-15-2016		6,000,000		6,450,000
Chesapeake Energy Corporation			9.50			2-15-2015		7,700,000		8,701,000

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

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Short-Term High Yield Bond Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Oil, Gas & Consumable Fuels (continued)
CITGO Petroleum Corporation 144A		11.50	%		7-1-2017	$	9,000,000	$	10,260,000
Concho Resources Incorporated		8.63			10-1-2017		4,640,000		4,988,000
Consol Energy Incorporated		8.00			4-1-2017		5,000,000		5,437,500
Energy XXI Gulf Coast Incorporated		9.25			12-15-2017		8,000,000		9,040,000
Forest Oil Corporation «		8.50			2-15-2014		3,000,000		3,217,500
HollyFrontier Corporation		9.88			6-15-2017		11,155,000		11,907,963
Kinder Morgan Energy 144A		6.00			1-15-2018		2,000,000		2,207,610
Kinder Morgan Incorporated		5.15			3-1-2015		7,000,000		7,436,583
Peabody Energy Corporation		7.38			11-1-2016		6,800,000		7,752,000
Petrohawk Energy Corporation		10.50			8-1-2014		5,500,000		5,832,882
Plains Exploration & Production Company		6.13			6-15-2019		5,375,000		5,939,375
Regency Energy Partners Company		6.88			12-1-2018		5,579,000		6,025,320
Regency Energy Partners Company		9.38			6-1-2016		3,730,000		3,953,800
Tesoro Corporation		4.25			10-1-2017		4,000,000		4,160,000
Tesoro Corporation		9.75			6-1-2019		1,000,000		1,132,500
Whiting Petroleum Corporation		7.00			2-1-2014		4,000,000		4,170,000
									120,393,493
Financials: 9.72%
Commercial Banks: 3.25%
ABN AMRO North America Holding ±144A		3.39			12-29-2049		10,395,000		10,395,000
AmSouth Bancorporation		4.85			4-1-2013		5,014,000		5,031,549
AmSouth Bancorporation		5.20			4-1-2015		5,370,000		5,698,644
CIT Group Incorporated		4.25			8-15-2017		9,700,000		10,039,500
CIT Group Incorporated 144A		4.75			2-15-2015		3,000,000		3,157,500
Zions Bancorporation		7.75			9-23-2014		7,000,000		7,645,533
									41,967,726
Consumer Finance: 7.08%
Ally Financial Incorporated		5.50			2-15-2017		9,500,000		10,300,755
Discover Financial Services Company		6.45			6-12-2017		7,900,000		9,278,708
Ford Motor Credit Company LLC		3.88			1-15-2015		2,000,000		2,081,650
Ford Motor Credit Company LLC		8.00			12-15-2016		8,000,000		9,587,152
Ford Motor Credit Company LLC		8.70			10-1-2014		3,500,000		3,884,930
General Motors Financial Company 144A		4.75			8-15-2017		9,035,000		9,446,860
JBS USA Finance Incorporated		11.63			5-1-2014		6,000,000		6,637,500
Nielsen Finance LLC		11.63			2-1-2014		6,975,000		7,620,188
SLM Corporation		3.88			9-10-2015		8,000,000		8,250,792
SLM Corporation Series A		5.00			4-15-2015		5,000,000		5,300,425
Toll Brothers Finance Corporation		8.91			10-15-2017		7,450,000		9,314,646
UR Financing Escrow Corporation		5.75			7-15-2018		9,000,000		9,686,250
									91,389,856
REITs: 0.14%
Host Marriott LP Series Q		6.75			6-1-2016		1,729,000		1,772,225
Health Care: 3.30%
Health Care Equipment & Supplies: 0.62%
Fresenius US Finance II Incorporated 144A		9.00			7-15-2015		7,000,000		8,032,500

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 28, 2013 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Health Care Providers & Services: 2.42%
Community Health Systems Incorporated		5.13	%		8-15-2018	$	2,000,000	$	2,102,500
Fresenius Medical Care Holdings Incorporated		6.88			7-15-2017		5,820,000		6,663,900
Health Management Associates Incorporated		6.13			4-15-2016		11,341,000		12,475,100
HealthSouth Corporation		7.25			10-1-2018		8,000,000		8,640,000
Select Medical Corporation «		7.63			2-1-2015		1,299,000		1,299,000
									31,180,500
Pharmaceuticals: 0.26%
Mylan Incorporated 144A		7.63			7-15-2017		3,000,000		3,348,453
Industrials: 5.71%
Aerospace & Defense: 0.26%
GeoEye Incorporated		9.63			10-1-2015		3,000,000		3,288,750
Building Products: 0.78%
Masco Corporation		6.13			10-3-2016		9,109,000		10,113,531
Commercial Services & Supplies: 2.73%
ARAMARK Corporation ±		3.80			2-1-2015		2,500,000		2,503,775
ARAMARK Corporation		8.50			2-1-2015		3,000,000		3,015,030
Case Corporation		7.25			1-15-2016		5,500,000		6,160,000
Deluxe Corporation		5.13			10-1-2014		5,000,000		5,150,000
International Lease Finance Corporation		4.88			4-1-2015		5,000,000		5,218,750
International Lease Finance Corporation		5.65			6-1-2014		5,000,000		5,225,000
RR Donnelley & Sons Company «		5.50			5-15-2015		6,000,000		6,270,000
Swift Services Holdings Incorporated		10.00			11-15-2018		1,450,000		1,660,250
									35,202,805
Electrical Equipment: 0.38%
General Cable Corporation ±		2.68			4-1-2015		5,000,000		4,943,750
Machinery: 1.56%
Case New Holland Incorporated		7.75			9-1-2013		3,500,000		3,600,625
CNH Capital America LLC Company		3.88			11-1-2015		2,000,000		2,055,000
SPX Corporation		6.88			9-1-2017		5,245,000		5,861,288
SPX Corporation		7.63			12-15-2014		4,085,000		4,467,969
Westinghouse Air Brake Technology Corporation		6.88			7-31-2013		4,000,000		4,075,000
									20,059,882
Information Technology: 2.06%
Electronic Equipment, Instruments & Components: 0.72%
Jabil Circuit Incorporated		7.75			7-15-2016		8,000,000		9,220,000
IT Services: 1.34%
Fidelity National Information Services Incorporated		7.63			7-15-2017		6,000,000		6,457,500
iGATE Corporation		9.00			5-1-2016		10,000,000		10,887,500
									17,345,000

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

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Short-Term High Yield Bond Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Materials: 5.51%
Chemicals: 0.53%
Ashland Incorporated 144A		3.00	%		3-15-2016	$	2,840,000	$	2,875,500
Celanese US Holdings LLC		6.63			10-15-2018		1,450,000		1,566,000
Huntsman International LLC «		5.50			6-30-2016		2,334,000		2,334,000
									6,775,500
Containers & Packaging: 2.67%
Ball Corporation		7.13			9-1-2016		7,000,000		7,420,000
Berry Plastics Corporation ±		5.05			2-15-2015		4,080,000		4,080,816
Berry Plastics Corporation		8.25			11-15-2015		5,000,000		5,211,000
Greif Incorporated		6.75			2-1-2017		4,400,000		4,906,000
Owens Brockway Glass Container Incorporated		7.38			5-15-2016		10,000,000		11,500,000
Owens-Illinois Incorporated		7.80			5-15-2018		1,185,000		1,389,413
									34,507,229
Paper & Forest Products: 2.31%
Appleton Papers Incorporated 144A		10.50			6-15-2015		7,000,000		7,367,500
Boise Paper Holdings LLC		9.00			11-1-2017		9,000,000		9,731,250
Neenah Paper Incorporated		7.38			11-15-2014		1,614,000		1,616,018
Resolute Forest Products Incorporated		10.25			10-15-2018		9,580,000		11,088,850
									29,803,618
Telecommunication Services: 4.57%
Diversified Telecommunication Services: 2.18%
Cincinnati Bell Incorporated		8.25			10-15-2017		9,635,000		10,213,100
Frontier Communications Corporation		6.63			3-15-2015		7,000,000		7,560,000
Frontier Communications Corporation		7.88			4-15-2015		1,330,000		1,476,300
Frontier Communications Corporation		8.25			5-1-2014		130,000		139,100
Windstream Corporation		7.88			11-1-2017		7,750,000		8,776,875
									28,165,375
Wireless Telecommunication Services: 2.39%
Allbritton Communications Company		8.00			5-15-2018		5,430,000		5,918,700
CCO Holdings LLC		7.25			10-30-2017		8,500,000		9,180,000
Sprint Nextel Corporation		6.00			12-1-2016		9,750,000		10,530,000
TW Telecommunications Holdings Incorporated		8.00			3-1-2018		4,744,000		5,159,100
									30,787,800
Utilities: 1.29%
Independent Power Producers & Energy Traders: 0.55%
AES Corporation		7.75			3-1-2014		6,750,000		7,138,125
Multi-Utilities: 0.74%
Calpine Construction Finance Company 144A		8.00			6-1-2016		9,000,000		9,495,000
Total Corporate Bonds and Notes (Cost $847,045,701)									857,503,464

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 28, 2013 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Municipal Obligations: 0.85%
California: 0.72%
California Judgment Trust (Miscellaneous Revenue) ±		1.63	%		6-1-2015	$	4,170,000	$	4,135,472
Oakland CA Redevelopment Agency Refunding Subordinated Housing Set Aside Series 2006A (Tax Revenue, Ambac Insured)		5.38			9-1-2016		5,000,000		5,141,100
									9,276,572
Michigan: 0.13%
Wayne County MI (Tax Revenue)		5.00			9-15-2013		1,711,000		1,715,603
Total Municipal Obligations (Cost $10,788,023)									10,992,175
Non-Agency Mortgage Backed Securities: 0.01%
Salomon Brothers Mortgage Securities VII Series 1994-5 Class B2 ±(i)		3.16			4-25-2024		80,495		67,123
Total Non-Agency Mortgage Backed Securities (Cost $80,932)									67,123
Term Loans: 23.49%
Allison Transmission Incorporated <		3.20			8-7-2017		9,750,000		9,764,918
ARAMARK Corporation		3.46			7-26-2016		253,281		254,601
ARAMARK Corporation		3.52			7-26-2016		2,612,497		2,626,108
Berry Plastics Holding Corporation		3.50			2-4-2020		8,750,000		8,691,375
Biomet Incorporated		3.20			3-25-2015		1,053,154		1,058,862
Biomet Incorporated		4.00			7-25-2017		7,980,000		8,035,860
Burger King Corporation		3.75			9-27-2019		5,985,000		6,024,262
BWAY Corporation		4.50			8-7-2017		3,000,000		3,026,790
CDW LLC		4.00			7-14-2017		8,500,966		8,516,948
Chrysler Group LLC		6.00			5-24-2017		7,909,773		8,074,138
Cinemark USA Incorporated		3.21			12-18-2019		1,000,000		1,002,750
Community Health Systems Incorporated		2.45			7-25-2014		1,919,489		1,925,497
Community Health Systems Incorporated		3.79			1-25-2017		6,000,000		6,040,500
DaVita Incorporated		4.50			10-20-2016		4,900,000		4,934,986
Delphi Corporation		4.75			3-31-2017		3,523,365		3,529,249
DigitalGlobe Incorporated		3.75			1-24-2020		500,000		502,030
Dollar General Corporation		2.95			7-7-2014		4,659,542		4,667,882
Dynegy Power LLC		9.25			8-4-2016		8,000,000		8,320,000
HCA Incorporated		3.45			2-2-2016		6,826,832		6,837,481
HCA Incorporated		3.56			3-31-2017		5,000,000		5,021,050
Hertz Corporation		3.75			3-9-2018		9,174,372		9,216,941
Iasis Healthcare Corporation		4.50			5-3-2018		7,889,924		7,922,351
Intelsat Jackson Holdings Limited		4.50			4-2-2018		6,932,625		6,997,653
Interactive Data Corporation		3.75			2-11-2018		500,000		500,710
KAR Auction Services Incorporated		5.00			5-19-2017		7,893,186		7,972,118
Levi Strauss & Company		2.45			4-4-2014		5,659,754		5,659,640
Lifepoint Hospital Incorporated <		2.71			7-24-2017		7,000,000		7,029,190
Manitowoc Company Incorporated		4.25			11-13-2017		942,950		947,193
MetroPCS Wireless Incorporated		4.07			11-3-2016		7,371,699		7,393,225
Michaels Stores Incorporated		3.75			1-31-2020		7,000,000		7,015,540
NBTY Incorporated		4.25			10-2-2017		8,172,889		8,281,834
Neiman Marcus Group Incorporated		4.00			5-16-2018		10,000,000		9,996,700
Novelis Incorporated <		4.00			3-10-2017		7,934,922		7,942,857

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

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Short-Term High Yield Bond Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Term Loans (continued)
Omnova Solutions Incorporated		5.50	%		5-31-2017	$	2,321,563	$	2,344,778
Phillips Van Heusen Corporation <		3.25			12-19-2019		7,500,000		7,560,150
Pinnacle Foods Finance LLC		3.70			10-3-2016		2,955,661		2,973,513
Progressive Waste Solutions Limited		3.50			10-24-2019		8,500,000		8,574,375
Reynolds Group Holdings Incorporated		4.75			9-28-2018		6,733,125		6,807,459
SBA Senior Finance II LLC <		3.75			9-27-2019		3,625,000		3,643,125
Scientific Games International Incorporated		3.21			6-30-2015		8,444,264		8,475,930
Select Medical Corporation		3.46			2-13-2016		1,000,000		999,170
Select Medical Corporation		5.50			6-1-2018		9,424,992		9,460,242
Seminole Tribe of Florida		1.81			3-5-2014		2,214,215		2,215,587
Sensata Technologies Finance Company		3.75			5-11-2018		4,925,000		4,953,861
Serta Simmons Holdings LLC		5.00			10-1-2019		2,000,000		2,021,600
Sungard Data Systems Incorporated		3.85			2-26-2016		1,546,473		1,548,778
Sungard Data Systems Incorporated		3.95			2-28-2017		4,553,962		4,580,101
Swift Transportation Companies Incorporated		3.95			12-21-2016		1,447,619		1,453,352
Swift Transportation Companies Incorporated		5.00			12-21-2017		5,479,321		5,514,553
Terex Corporation		4.50			4-28-2017		6,693,225		6,758,082
Time Warner Telecom Holdings		3.46			12-29-2016		5,950,843		5,991,785
Transdigm Incorporated <		0.00			2-14-2017		500,000		502,000
Transdigm Incorporated		3.75			2-28-2020		6,847,595		6,863,276
UCI International Incorporarted		5.50			7-26-2017		3,580,189		3,588,030
Universal Health Services Incorporated		3.75			11-15-2016		4,642,852		4,650,606
Vanguard Health Holding Company LLC		5.00			1-29-2016		6,861,477		6,887,208
Wendy’s International Incorporated		4.75			5-15-2019		2,992,500		3,017,547
West Corporation		4.25			6-29-2018		5,866,677		5,883,808
Total Term Loans (Cost $301,614,997)									303,000,155
Yankee Corporate Bonds and Notes: 4.69%
Consumer Discretionary: 0.46%
Media: 0.46%
Virgin Media Finance plc		8.38			10-15-2019		5,339,000		5,952,985
Financials: 1.38%
Consumer Finance: 1.38%
Ineos Finance plc 144A		9.00			5-15-2015		7,000,000		7,402,500
National Money Mart Company		10.38			12-15-2016		9,420,000		10,409,100
									17,811,600
Industrials: 1.31%
Building Products: 0.82%
ArcelorMittal		3.75			8-5-2015		10,250,000		10,612,266
Professional Services: 0.49%
FMG Resources Limited 144A		7.00			11-1-2015		6,000,000		6,285,000
Information Technology: 0.70%
Computers & Peripherals: 0.61%
Seagate Technology HDD Holdings		6.80			10-1-2016		7,000,000		7,875,000

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 28, 2013 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Semiconductors & Semiconductor Equipment: 0.09%
Magnachip Semiconductor Limited		10.50	%		4-15-2018	$	1,000,000	$	1,120,000
Materials: 0.84%
Paper & Forest Products: 0.84%
Smurfit Kappa Acquisitions 144A		4.88			9-15-2018		8,000,000		8,199,996
UPM Kymmene Corporation 144A		5.63			12-1-2014		2,500,000		2,612,496
									10,812,492
Total Yankee Corporate Bonds and Notes (Cost $59,839,986)									60,469,343
	Yield					Shares
Short-Term Investments: 6.00%
Investment Companies: 6.00%
Wells Fargo Advantage Cash Investment Money Market Fund, Select Class (l)(u)##		0.13					61,567,358		61,567,358
Wells Fargo Securities Lending Cash Investments, LLC (l)(u)(r)(v)		0.18					15,841,883		15,841,883
Total Short-Term Investments (Cost $77,409,241)									77,409,241

Total investments in securities (Cost $1,296,778,880)*	101.50	%		1,309,441,501
Other assets and liabilities, net	(1.50	)		(19,295,819	)
Total net assets	100.00	%	$	1,290,145,682

« 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.

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

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

(i) Illiquid security

(l) Investment in an affiliate

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

## All or a portion of this security has been segregated for unfunded loans.

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

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

* Cost for federal income tax purposes is $1,297,069,157 and unrealized appreciation (depreciation) consists of:

Gross unrealized appreciation	$	16,197,608
Gross unrealized depreciation		(3,825,264	)
Net unrealized appreciation	$	12,372,344

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

Statement of assets and liabilities—February 28, 2013 (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)	$	1,232,032,260
In affiliated securities, at value (see cost below)		77,409,241
Total investments, at value (see cost below)		1,309,441,501
Receivable for investments sold		9,409,759
Receivable for Fund shares sold		11,450,542
Receivable for interest		17,959,548
Receivable for securities lending income		11,229
Prepaid expenses and other assets		98,150
Total assets		1,348,370,729
Liabilities
Dividends payable		731,197
Payable for investments purchased		35,944,974
Payable for Fund shares redeemed		4,913,047
Payable upon receipt of securities loaned		15,841,883
Advisory fee payable		275,255
Distribution fees payable		69,804
Due to other related parties		179,839
Accrued expenses and other liabilities		269,048
Total liabilities		58,225,047
Total net assets	$	1,290,145,682
NET ASSETS CONSIST OF
Paid-in capital	$	1,275,472,308
Overdistributed net investment income		(664,611	)
Accumulated net realized gains on investments		2,675,364
Net unrealized gains on investments		12,662,621
Total net assets	$	1,290,145,682
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE1
Net assets – Class A	$	284,149,396
Shares outstanding – Class A		34,264,405
Net asset value per share – Class A		$8.29
Maximum offering price per share – Class A2		$8.55
Net assets – Class C	$	123,998,728
Shares outstanding – Class C		14,952,720
Net asset value per share – Class C		$8.29
Net assets – Administrator Class	$	533,576,745
Shares outstanding – Administrator Class		64,364,598
Net asset value per share – Administrator Class		$8.29
Net assets – Institutional Class	$	95,562,177
Shares outstanding – Institutional Class		11,543,418
Net asset value per share – Institutional Class		$8.28
Net assets – Investor Class	$	252,858,636
Shares outstanding – Investor Class		30,490,780
Net asset value per share – Investor Class		$8.29
Investment in unaffiliated securities (including securities on loan), at cost	$	1,219,369,639
Investments in affiliated securities, at cost	$	77,409,241
Total investments, at cost	$	1,296,778,880
Securities on loan, at value	$	15,497,838

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 28, 2013 (unaudited)

Investment income
Interest	$	25,869,888
Securities lending income, net		83,002
Income from affiliated securities		72,936
Total investment income		26,025,826
Expenses
Advisory fee		2,631,548
Administration fees
Fund level		282,991
Class A		215,496
Class C		88,450
Administrator Class		244,764
Institutional Class		10,966	1
Investor Class		223,335
Shareholder servicing fees
Class A		336,713
Class C		138,203
Administrator Class		596,189
Investor Class		293,862
Distribution fees
Class C		414,608
Custody and accounting fees		32,657
Professional fees		16,358
Registration fees		38,351
Shareholder report expenses		43,485
Trustees’ fees and expenses		5,158
Other fees and expenses		20,438
Total expenses		5,633,572
Less: Fee waivers and/or expense reimbursements		(1,033,361	)
Net expenses		4,600,211
Net investment income		21,425,615
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments		3,164,339
Net change in unrealized gains (losses) on investments		1,145,729
Net realized and unrealized gains (losses) on investments		4,310,068
Net increase in net assets resulting from operations	$	25,735,683

1. For the period from November 30, 2012 (commencement of class operations) to February 28, 2013.

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

Statement of changes in net assets Wells Fargo Advantage Short-Term High Yield Bond Fund 17

	Six months ended February 28, 2013 (unaudited)						Year ended August 31, 2012
Operations
Net investment income				$	21,425,615					$	37,942,659
Net realized gains (losses) on investments					3,164,339						(362,485	)
Net change in unrealized gains (losses) on investments					1,145,729						27,268,399
Net increase in net assets resulting from operations					25,735,683						64,848,573
Distributions to shareholders from
Net investment income
Class A					(5,095,657	)					(9,592,912	)
Class C					(1,675,639	)					(3,038,303	)
Administrator Class					(9,658,620	)					(16,276,949	)
Institutional Class					(565,963	)1					N/A
Investor Class					(4,412,659	)					(8,793,670	)
Net realized gains
Class A					(39,696	)					(1,020,607	)
Class C					(16,294	)					(396,551	)
Administrator Class					(72,797	)					(1,507,049	)
Institutional Class					(720	)1					N/A
Investor Class					(34,580	)					(980,285	)
Total distributions to shareholders					(21,572,625	)					(41,606,326	)
	Shares						Shares
Capital share transactions
Proceeds from shares sold
Class A		9,774,680			81,057,485			17,590,353			143,996,918
Class C		3,821,090			31,692,214			5,412,553			44,308,248
Administrator Class		25,345,959			210,189,936			45,381,895			370,447,337
Institutional Class		11,485,171	1		95,300,948	1		N/A			N/A
Investor Class		8,856,593			73,453,610			21,791,794			177,797,841
					491,694,193						736,550,344
Reinvestment of distributions
Class A		592,262			4,911,046			1,181,327			9,653,193
Class C		189,692			1,572,949			343,696			2,809,382
Administrator Class		831,014			6,884,976			1,364,052			11,156,063
Institutional Class		58,247	1		482,516	1		N/A			N/A
Investor Class		445,922			3,697,468			1,000,677			8,174,691
					17,548,955						31,793,329
Payment for shares redeemed
Class A		(7,725,293	)		(64,074,970	)		(12,229,453	)		(99,883,582	)
Class C		(1,502,636	)		(12,464,521	)		(2,251,113	)		(18,420,165	)
Administrator Class		(17,496,508	)		(145,168,762	)		(22,097,995	)		(180,623,473	)
Investor Class		(6,923,155	)		(57,425,850	)		(15,957,501	)		(130,392,297	)
					(279,134,103	)					(429,319,517	)
Net increase in net assets resulting from capital share transactions					230,109,045						339,024,156
Total increase in net assets					234,272,103						362,266,403
Net assets
Beginning of period					1,055,873,579						693,607,176
End of period				$	1,290,145,682					$	1,055,873,579
Overdistributed net investment income				$	(664,611	)				$	(681,688	)

1. For the period from November 30, 2012 (commencement of class operations) to February 28, 2013.

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 28, 2013 (unaudited)			Year ended August 31									Year ended May 31
CLASS A				2012			2011			20101			2010			20092			20082
Net asset value, beginning of period	$	8.26		$	8.04		$	8.18		$	8.09		$	7.82		$	8.31		$	8.54
Net investment income		0.15			0.36			0.40			0.11			0.45			0.40			0.47
Net realized and unrealized gains (losses) on investments		0.03			0.26			(0.14	)		0.09			0.26			(0.49	)		(0.23	)
Total from investment operations		0.18			0.62			0.26			0.20			0.71			(0.09	)		0.24
Distributions to shareholders from
Net investment income		(0.15	)		(0.36	)		(0.40	)		(0.11	)		(0.44	)		(0.40	)		(0.47	)
Net realized gains		(0.00	)3		(0.04	)		0.00			0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.15	)		(0.40	)		(0.40	)		(0.11	)		(0.44	)		(0.40	)		(0.47	)
Net asset value, end of period	$	8.29		$	8.26		$	8.04		$	8.18		$	8.09		$	7.82		$	8.31
Total return4		2.28	%		7.81	%		3.10	%		2.43	%		9.17	%		(0.89	)%		2.98	%
Ratios to average net assets (annualized)
Gross expenses		0.95	%		0.99	%		1.00	%		1.01	%		1.03	%		1.08	%		1.20	%
Net expenses		0.81	%		0.81	%		0.81	%		0.81	%		0.81	%		0.81	%		0.86	%
Net investment income		3.79	%		4.33	%		4.77	%		5.14	%		5.50	%		5.27	%		5.70	%
Supplemental data
Portfolio turnover rate		13	%		28	%		36	%		15	%		40	%		46	%		59	%
Net assets, end of period (000s omitted)	$	284,149		$	261,173		$	201,523		$	235,754		$	212,688		$	110,451		$	15,781

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. Amount is less than $0.005.

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 Short-Term High Yield Bond Fund 19

(For a share outstanding throughout each period)

	Six months ended February 28, 2013 (unaudited)			Year ended August 31									Year ended May 31
CLASS C				2012			2011			20101			2010			2009			20082
Net asset value, beginning of period	$	8.26		$	8.04		$	8.18		$	8.09		$	7.82		$	8.31		$	8.22
Net investment income		0.12			0.29	3		0.33			0.09			0.38			0.34			0.06
Net realized and unrealized gains (losses) on investments		0.03			0.26			(0.14	)		0.09			0.26			(0.49	)		0.09
Total from investment operations		0.15			0.55			0.19			0.18			0.64			(0.15	)		0.15
Distributions to shareholders from
Net investment income		(0.12	)		(0.29	)		(0.33	)		(0.09	)		(0.37	)		(0.34	)		(0.06	)
Net realized gains		(0.00	)4		(0.04	)		0.00			0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.12	)		(0.33	)		(0.33	)		(0.09	)		(0.37	)		(0.34	)		(0.06	)
Net asset value, end of period	$	8.29		$	8.26		$	8.04		$	8.18		$	8.09		$	7.82		$	8.31
Total return5		1.90	%		7.00	%		2.33	%		2.24	%		8.35	%		(1.70	)%		2.48	%
Ratios to average net assets (annualized)
Gross expenses		1.70	%		1.73	%		1.75	%		1.76	%		1.78	%		1.76	%		1.97	%
Net expenses		1.56	%		1.56	%		1.56	%		1.56	%		1.56	%		1.56	%		1.56	%
Net investment income		3.03	%		3.58	%		3.97	%		4.39	%		4.69	%		4.50	%		4.37	%
Supplemental data
Portfolio turnover rate		13	%		28	%		36	%		15	%		40	%		46	%		59	%
Net assets, end of period (000s omitted)		$123,999			$102,780			$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. 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.

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 28, 2013 (unaudited)			Year ended August 31
ADMINISTRATOR CLASS				2012			2011			20101
Net asset value, beginning of period	$	8.26		$	8.03		$	8.18		$	8.18
Net investment income		0.16			0.37			0.41			0.03	2
Net realized and unrealized gains (losses) on investments		0.03			0.27			(0.15	)		0.00	3
Total from investment operations		0.19			0.64			0.26			0.03
Distributions to shareholders from
Net investment income		(0.16	)		(0.37	)		(0.41	)		(0.03	)
Net realized gains		(0.00	)3		(0.04	)		0.00			0.00
Total distributions to shareholders		(0.16	)		(0.41	)		(0.41	)		(0.03	)
Net asset value, end of period	$	8.29		$	8.26		$	8.03		$	8.18
Total return4		2.36	%		8.12	%		3.15	%		0.39	%
Ratios to average net assets (annualized)
Gross expenses		0.89	%		0.92	%		0.94	%		0.89	%
Net expenses		0.65	%		0.65	%		0.65	%		0.64	%
Net investment income		3.95	%		4.48	%		4.87	%		4.39	%
Supplemental data
Portfolio turnover rate		13	%		28	%		36	%		15	%
Net assets, end of period (000s omitted)		$533,577			$459,746			$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. 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 Short-Term High Yield Bond Fund 21

(For a share outstanding throughout the period)

INSTITUTIONAL CLASS	Period ended February 28, 20131 (unaudited)
Net asset value, beginning of period	$	8.28
Net investment income		0.08
Net realized and unrealized gains (losses) on investments		0.00	2
Total from investment operations		0.08
Distributions to shareholders from
Net investment income		(0.08	)
Net realized gains		(0.00	)2
Total distributions to shareholders		(0.08	)
Net asset value, end of period	$	8.28
Total return3		1.01	%
Ratios to average net assets (annualized)
Gross expenses		0.59	%
Net expenses		0.50	%
Net investment income		4.17	%
Supplemental data
Portfolio turnover rate		13	%
Net assets, end of period (000s omitted)		$95,562

1. For the period from November 30, 2012 (commencement of class operations) to February 28, 2013

2. Amount is less than $0.005.

3. 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 Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2013 (unaudited)			Year ended August 31									Year ended May 31
INVESTOR CLASS				2012			2011			20101			2010			2009			2008
Net asset value, beginning of period	$	8.26		$	8.03		$	8.18		$	8.09		$	7.82		$	8.31		$	8.54
Net investment income		0.15			0.35	2		0.39			0.11			0.44			0.40			0.47
Net realized and unrealized gains (losses) on investments		0.03			0.27			(0.15	)		0.08			0.26			(0.49	)		(0.23	)
Total from investment operations		0.18			0.62			0.24			0.19			0.70			(0.09	)		0.24
Distributions to shareholders from
Net investment income		(0.15	)		(0.35	)		(0.39	)		(0.10	)		(0.43	)		(0.40	)		(0.47	)
Net realized gains		(0.00	)3		(0.04	)		0.00			0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.15	)		(0.39	)		(0.39	)		(0.10	)		(0.43	)		(0.40	)		(0.47	)
Net asset value, end of period	$	8.29		$	8.26		$	8.03		$	8.18		$	8.09		$	7.82		$	8.31
Total return4		2.26	%		7.91	%		2.95	%		2.42	%		9.12	%		(0.91	)%		2.98	%
Ratios to average net assets (annualized)
Gross expenses		0.98	%		1.01	%		1.03	%		1.05	%		1.07	%		1.13	%		1.34	%
Net expenses		0.84	%		0.84	%		0.84	%		0.85	%		0.86	%		0.84	%		0.86	%
Net investment income		3.76	%		4.30	%		4.76	%		5.10	%		5.49	%		5.20	%		5.69	%
Supplemental data
Portfolio turnover rate		13	%		28	%		36	%		15	%		40	%		46	%		59	%
Net assets, end of period (000s omitted)		$252,859			$232,175			$170,952			$177,946			$165,759			$128,789			$70,420

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. 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.

Notes to financial statements (unaudited) Wells Fargo Advantage Short-Term High Yield Bond Fund 23

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

All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (normally 4 p.m. Eastern Time).

Fixed income securities acquired with maturities exceeding 60 days are valued based on evaluated bid prices received from an independent pricing service 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 independent pricing service or values received are deemed not representative of market value, values will be obtained from a broker-dealer or otherwise determined based on the Fund’s Valuation Procedures.

Debt securities of sufficient credit quality acquired with 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 registered open-end investment companies are valued at net asset value. Non-registered investment companies are fair 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. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Management Valuation Team of Wells Fargo Funds Management, LLC (“Funds Management”). The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Management Valuation Team which may include items for ratification.

Valuations of fair valued securities are compared to the next actual sales price when available, or other appropriate market information to assess the continued appropriateness of the fair valuation methodology used. These securities are fair valued on a day-to-day basis, taking into consideration changes to appropriate market information and any significant changes to the input factors considered in the valuation process until there is a readily available price provided on the exchange or by an independent pricing service. Valuations received from an independent pricing service or broker quotes are periodically validated by comparisons to most recent trades and valuations provided by other independent pricing services in addition to the review of prices by the adviser and/or subadviser. Unobservable inputs used in determining fair valuations are identified based on the type of security, taking into consideration factors utilized by market participants in valuing the investment, knowledge about the issuer and the current market environment.

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

24 Wells Fargo Advantage Short-Term High Yield Bond Fund Notes to financial statements (unaudited)

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 Funds Management and is subadvised by Wells Capital Management Incorporated (“WellsCap”). 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 WellsCap for its services as subadviser. 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 in an amount at least equal in value to the Fund’s commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.

Term loans

The Fund may invest in term loans. 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 recorded on the basis of identified cost.

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

Federal and other taxes

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

The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

As of August 31, 2012, the Fund had $297,050 of current year deferred post-October capital losses which was recognized on the first day of the current fiscal 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 any unrealized

Notes to financial statements (unaudited) Wells Fargo Advantage Short-Term High Yield Bond Fund 25

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, use of amortized cost, etc.)

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

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

As of February 28, 2013, the inputs used in valuing investments in securities, 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	$	857,503,464	$	0	$	857,503,464
Municipal obligations		0		10,992,175		0		10,992,175
Non-agency mortgaged backed securities		0		67,123		0		67,123
Term loans		0		292,081,002		10,919,153		303,000,155
Yankee corporate bonds and notes		0		60,469,343		0		60,469,343
Short-term investments
Investment companies		61,567,358		15,841,883		0		77,409,241
	$	61,567,358	$	1,236,954,990	$	10,919,153	$	1,309,441,501

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 28, 2013, the Fund did not have any transfers into/out of Level 1 or Level 2.

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 subadviser, 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 0.45% and declining to 0.35% as the average daily net assets of the Fund increase. Prior to January 1, 2013, the annual advisory started at 0.50% and declined to 0.40% as the average daily net assets of the Fund increased. For the six months ended February 28, 2013, the advisory fee was equivalent to an annual rate of 0.46% of the Fund’s average daily net assets.

26 Wells Fargo Advantage Short-Term High Yield Bond Fund Notes to financial statements (unaudited)

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. WellsCap, an affiliate of Funds Management, is the subadviser 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
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, 2013 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.81% for Class A shares, 1.56% for Class C shares, 0.65% for Administrator Class shares, 0.50% for Institutional Class shares, and 0.84% for Investor Class shares.

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 28, 2013, Wells Fargo Funds Distributor, LLC received $19,313 from the sale of Class A shares and $4,390 in contingent deferred sales charges from redemptions of Class C shares.

Shareholder servicing fees

The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, 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, for the six months ended February 28, 2013 were $565,680,608 and $141,349,156, respectively.

As of February 28, 2013, the Fund had unfunded term loan commitments of $16,657,813.

6. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds in the Trust) 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. For the six months ended February 28, 2013, the Fund paid $1,178 in commitment fees.

For the six months ended February 28, 2013, there were no borrowings by the Fund under the agreement.

Notes to financial statements (unaudited) Wells Fargo Advantage Short-Term High Yield Bond Fund 27

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 PRONOUNCEMENT

In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2011-11, Disclosures about Offsetting Assets and Liabilities. ASU 2011-11, which amends FASB ASC Topic 210, Balance Sheet, creates new disclosure requirements which require entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently assessing the potential impact, in addition to expanded financial statement disclosure, that may result from adopting this ASU.

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

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available on the Fund’s website (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 website 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 website at sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at 233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Other information (unaudited) Wells Fargo Advantage Short-Term High Yield Bond Fund 29

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers listed in the table below acts in identical capacities for the Wells Fargo Advantage family of funds, which consists of 135 funds¹ comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information². 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	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. Advisory Board Member, Palm Coast Academy (charter school). Mr. Harris is a certified public accountant.	CIGNA Corporation; Deluxe Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, 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 48 portfolios as of 1/31/2013); 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, Morgan Stanley Director of the Center for Leadership Development and Research 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
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

30 Wells Fargo Advantage Short-Term High Yield 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
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.	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 Tree Trust (non-profit corporation). Director of the American Chestnut Foundation (non-profit corporation).	Asset Allocation Trust

* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.

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.
Nancy Wiser1 (Born 1967)	Treasurer, since 2012	Executive Vice President of Wells Fargo Funds Management, LLC since 2011. Chief Operating Officer and Chief Compliance Officer at LightBox Capital Management LLC, from 2008 to 2011. Owned and operated a consulting business providing services to various hedge funds including acting as Chief Operating Officer and Chief Compliance Officer for a hedge fund from 2007 to 2008. Chief Operating Officer and Chief Compliance Officer of GMN Capital LLC from 2006 to 2007.
C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Officer, since 2003	Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001. Vice President and Managing Counsel of Wells Fargo Bank, N.A. since 1996.
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.
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 DePalma1 (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.

1. Nancy Wiser acts as Treasurer of 74 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 61 funds and Assistant Treasurer of 74 funds in the Fund Complex.

2. 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 website at wellsfargoadvantagefunds.com.

List of abbreviations Wells Fargo Advantage Short-Term High Yield Bond Fund 31

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian 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

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

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

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 depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Industrial development revenue

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

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

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

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

SPA —  Standby purchase agreement

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

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

ZAR —  South African rand

This page is intentionally left blank.

This page is intentionally left blank.

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, email, visit the Fund’s website, or call:

Wells Fargo Advantage Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: wfaf@wellsfargo.com

Website: 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 current prospectus and, if available, a summary prospectus containing more complete information, including charges and expenses, call 1-800-222-8222 or visit the Fund’s website 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

© 2013 Wells Fargo Funds Management, LLC. All rights reserved.

215351 04-13 SA222/SAR222 2-13

Wells Fargo Advantage

Ultra Short-Term Income Fund

Semi-Annual Report

February 28, 2013

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	4
Fund expenses	6
Portfolio of investments	7
Financial statements
Statement of assets and liabilities	20
Statement of operations	21
Statement of changes in net assets	22
Financial highlights	23
Notes to financial statements	28
Other information	34
List of abbreviations	37

The views expressed and any forward-looking statements are as of February 28, 2013, 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 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 the 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 the investment objectives, risks, charges, and expenses before investing. For a current prospectus and, if available, a summary prospectus, for Wells Fargo Advantage Funds, 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, 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 $225 billion in assets under management, as of February 28, 2013.

Equity funds
Asia Pacific Fund	Enterprise Fund†	Opportunity Fund†
C&B Large Cap Value Fund	Global Opportunities Fund	Precious Metals Fund
C&B Mid Cap Value Fund	Growth Fund	Premier Large Company Growth Fund
Capital Growth Fund	Index Fund	Small Cap Opportunities Fund
Common Stock Fund	International Equity Fund	Small Cap Value Fund
Disciplined U.S. Core Fund	International Value Fund	Small Company Growth Fund
Discovery Fund†	Intrinsic Small Cap Value Fund	Small Company Value Fund
Diversified Equity Fund	Intrinsic Value Fund	Small/Mid Cap Value Fund
Diversified International Fund	Intrinsic World Equity Fund	Special Mid Cap Value Fund
Emerging Growth Fund	Large Cap Core Fund	Special Small Cap Value Fund
Emerging Markets Equity Fund	Large Cap Growth Fund	Specialized Technology Fund
Emerging Markets Equity Income Fund	Large Company Value Fund	Traditional Small Cap Growth Fund
Endeavor Select Fund†	Omega Growth Fund	Utility and Telecommunications Fund
Bond funds
Adjustable Rate Government Fund	High Yield Municipal Bond Fund	Short Duration Government Bond Fund
California Limited-Term Tax-Free Fund	Income Plus Fund	Short-Term Bond Fund
California Tax-Free Fund	Inflation-Protected Bond Fund	Short-Term High Yield Bond Fund
Colorado Tax-Free Fund	Intermediate Tax/AMT-Free Fund	Short-Term Municipal Bond Fund
Core Bond Fund	International Bond Fund	Strategic Income Fund
Emerging Markets Local Bond Fund	Minnesota Tax-Free Fund	Strategic Municipal Bond Fund
Government Securities Fund	Municipal Bond Fund	Ultra Short-Term Income Fund
High Income Fund	North Carolina Tax-Free Fund	Ultra Short-Term Municipal Income Fund
High Yield Bond Fund	Pennsylvania Tax-Free 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	Treasury Plus Money Market Fund
Cash Investment Money Market Fund	Municipal Cash Management 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 (unaudited)

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Fixed-income performance was best among lower-rated corporate bonds and commercial mortgage-backed securities, as continued monetary accommodation from the U.S. Federal Reserve strengthened the demand for securities with higher yields.

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 28, 2013. During the period, fixed-income performance was best among lower-rated corporate bonds and commercial mortgage-backed securities (CMBS), as continued monetary accommodation from the U.S. Federal Reserve (Fed) strengthened the demand for securities with higher yields. However, the longest-maturity segments of the fixed-income market generally underperformed the mid-maturity and short-maturity segments because longer-maturity U.S. Treasury yields shifted higher, most notably in January 2013, thereby influencing a decline in the prices of longer-maturity fixed-income securities.

Credit sectors rallied for much of the second half of 2012, outperforming U.S. Treasuries.

As policymaking in Europe during the summer months of 2012 began to reassure global credit markets that the euro would likely survive and that all appropriate measures would be taken to bolster European debt markets, lower-rated securities in the U.S. once again rallied in price, significantly outpacing the returns from U.S. Treasuries. Corporate bonds and CMBS were once again the best-performing sectors of the core fixed income markets from August 2012 through the end of the year, as they had been before the European credit crisis escalated in the spring.

In December 2012, the Fed reaffirmed its commitment to highly accommodative monetary policy, citing its dual mandate of fostering maximum employment and price stability. For the first time since the financial crisis began in 2008, the Fed formally announced specific target ranges that could trigger a change to its highly accommodative monetary policy, most notably that exceptionally low interest rates would be appropriate at least as long as the unemployment rate remained above 6.5% and inflation expectations were no more than half a percentage point above its 2.0% inflation target. These thresholds were the first official measures of when and how a change to monetary policy may take effect.

U.S. Treasury yields shift significantly higher in January 2013.

With growing confidence in the U.S. economy and improving stability in the European credit markets, longer-maturity U.S. Treasury yields began to shift significantly higher in January 2013. The yield on the 10-year U.S. Treasury note ratcheted higher to 2.00% in January 2013, after finishing 2012 at 1.75% and reaching a modern-era record low of 1.41% in late July 2012. The 30-year U.S. Treasury bond finished the period at a yield of 3.09%, up from 2.58% at the start of the period. Thus, during the period, longer-maturity securities felt the pressure of yields shifting higher, which eroded some of their pricing. The best-performing sections of the yield curve were generally in the five-to 10-year range, which benefited from relatively adequate yields while remaining mostly insulated from the price erosion in maturities of 10 years and longer.

Despite this persistent trend toward higher yields during the final three months of the period, which chipped away at some security prices, several areas of the taxable fixed income markets continued to generate relatively compelling returns, considering the extraordinarily low level of interest rates. Spreads in the corporate bond sector continued to tighten while U.S. Treasury yields shifted higher, thus providing some protection against price erosion. CMBS spreads also tightened during the period resulting in some of the strongest six-month returns in the taxable investment-grade sectors. Within the Barclays U.S. Aggregate Bond Index¹,

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

Letter to shareholders (unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 3

the CMBS sector returned 2.35% during the six-month period, the corporate sector returned 1.64%, and the U.S. Treasury sector returned (0.67)%. The lower- rated credit tiers continued to outperform each respectively higher credit tier during the period, despite the rising yield influence in the longest maturities.

Overall, the theme for the six-month period in the U.S. fixed income markets was relatively strong performance from the corporate and CMBS sectors, particularly in the lower-rated credit tiers, with a protracted decline in prices of U.S. Treasuries. On the whole, most credit-related sectors generated relatively generous returns during the six-month period considering the extraordinarily low level of interest rates. However, the trend from previous periods of strong performance from longer-maturity securities began to unwind in January and February 2013. During this period, credit risks were rewarded better than interest rate risks, meaning that higher-yield compensation from lower-rated securities performed better than higher-yield compensation from longer-maturity securities, which experienced price pressures. Investment strategies that focused on mid-to lower-rated credit tiers and mid-maturity securities generally saw the strongest returns during the period.

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.

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 website 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

Most credit-related sectors generated relatively generous returns during the six-month period considering the extraordinarily low level of interest rates.

Notice to shareholders

At its November 6-7, 2012 meeting, the Board of Trustees unanimously approved the following modifications to certain Class A sales load waiver privileges, with each change becoming effective on July 1, 2013:

n Annuity payments received under an annuity option or from death proceeds will no longer qualify for net asset value (NAV) repurchase privileges.

n The ability to reinvest redemption proceeds at NAV will be reduced from 120 days to 90 days.

n NAV purchase privileges for certain types of “grandfathered” shareholders will be modified to remove the ability to purchase Class A shares at NAV, unless those shares are held directly with the Fund.

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

4 Wells Fargo Advantage Ultra Short-Term Income Fund Performance highlights (unaudited)

Investment objective

The Fund seeks current income consistent with capital preservation.

Adviser

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Christopher Y. Kauffman, CFA

Jay N. Mueller, CFA

Thomas M. Price, CFA

Noah Wise, CFA

Average annual total returns¹ (%) as of February 28, 2013

		Including sales charge							Excluding sales charge						Expense ratios2 (%)
	Inception date	1 year			5 year		10 year		1 year		5 year		10 year		Gross		Net3
Class A (SADAX)	8-31-1999		(0.65	)		0.99		1.98		1.38		1.40		2.18		0.85		0.72
Class C (WUSTX)	7-18-2008		(0.50	)		0.59		1.46		0.50		0.59		1.46		1.60		1.47
Administrator Class (WUSDX)	4-8-2005		–			–		–		1.41		1.50		2.37		0.79		0.57
Institutional Class (SADIX)	8-31-1999		–			–		–		1.61		1.73		2.63		0.52		0.37
Investor Class (STADX)	11-25-1988		–			–		–		1.23		1.34		2.20		0.88		0.75
Barclays Short-Term U.S. Government/Credit Bond Index4	–		–			–		–		0.34		1.07		–		–		–
Barclays 9-12 Month U.S. Short-Term Treasury Index5	–		–			–		–		0.28		1.02		2.16		–		–
Barclays 1-3 Year U.S. Government/Credit Bond Index6	–		–			–		–		1.06		2.38		3.07		–		–

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 website, 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 Class, and Investor Class shares are sold without a front-end sales charge or contingent deferred sales charge.

Bond 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 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). The 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.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 5

Ten largest long-term holdings7 (%) as of February 28, 2013
Bank Nederlandse Gemeenten, 5.00%, 5-16-2014	1.13
SpareBank 1 Boligkreditt, 1.25%, 10-25-2014	1.07
Nordea Eiendomskreditt, 1.88%, 4-7-2015	0.97
Stadshypotek AB, 1.45%, 9-30-2013	0.96
Bank of Nova Scotia, 1.45%, 7-26-2014	0.92
Phoenix AZ IDA Various Refunding Republic Services Incorporated Project, 0.58%, 12-1-2035	0.76
CNH Equipment Trust Series 2013-A Class A2, 0.44%, 7-15-2016	0.74
TCM Sub LLC, 3.55%, 1-15-2015	0.72
Colorado Interstate Gas Company, 5.95%, 3-15-2015	0.71
Twins Ballpark LLC, 0.95%, 10-1-2034	0.69

Portfolio allocation⁸ as of February 28, 2013

1. Effective June 20, 2008, the Advisor Class was renamed Class A and modified to assume the features and attributes of Class A. 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, adjusted to include the higher expenses applicable to the Administrator Class shares.

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

3. The Adviser has committed through December 31, 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. Brokerage commissions, stamp duty fees, interest, taxes, acquired fund fees and expenses, and extraordinary expenses are excluded from the cap. Without this cap, the Fund’s returns would have been lower.

4. 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.

5. The Barclays 9-12 Month U.S. Short-Term 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.

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. You cannot invest directly in an index.

7. 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.

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

6 Wells Fargo Advantage Ultra Short-Term Income Fund Fund expenses (unaudited)

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, 2012 to February 28, 2013.

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 9-1-2012		Ending account value 2-28-2013		Expenses paid during the period1		Net annual expense ratio
Class A
Actual	$	1,000.00	$	1,005.28	$	3.48		0.70	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.32	$	3.51		0.70	%
Class C
Actual	$	1,000.00	$	1,000.39	$	7.19		1.45	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.60	$	7.25		1.45	%
Administrator Class
Actual	$	1,000.00	$	1,004.86	$	2.73		0.55	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.07	$	2.76		0.55	%
Institutional Class
Actual	$	1,000.00	$	1,005.86	$	1.74		0.35	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.06	$	1.76		0.35	%
Investor Class
Actual	$	1,000.00	$	1,003.96	$	3.63		0.73	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.17	$	3.66		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).

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities: 10.12%
FHLMC ±		2.38	%		6-1-2032	$	9,726	$	10,301
FHLMC ±		2.38			4-1-2032		182,127		191,615
FHLMC ±		2.46			1-1-2029		89,125		89,472
FHLMC ±		2.50			7-1-2029		7,995		8,466
FHLMC		3.00			3-15-2041		1,086,000		1,099,936
FHLMC ±		3.06			10-1-2031		84,603		84,705
FHLMC		6.00			4-1-2016		354,118		378,454
FHLMC		6.00			5-1-2017		602,899		642,483
FHLMC		7.00			6-1-2031		456,087		544,822
FHLMC		9.00			11-1-2016		105,283		116,827
FHLMC		9.00			12-1-2016		657,859		722,863
FHLMC		9.00			8-1-2018		149,713		167,020
FHLMC		9.00			10-1-2019		91,743		105,997
FHLMC		9.50			12-1-2016		55,836		62,270
FHLMC		9.50			5-1-2020		30,266		33,448
FHLMC		9.50			9-1-2020		208,031		244,404
FHLMC		9.50			12-1-2022		453,122		517,111
FHLMC		10.00			11-1-2021		66,696		69,824
FHLMC		10.50			5-1-2020		152,692		184,712
FHLMC Series 2582 Class CW		4.50			11-15-2017		59,316		60,124
FHLMC Series 2617 Class GR		4.50			5-15-2018		1,146,323		1,221,291
FHLMC Series 2684 Class PE		5.00			1-15-2033		241,851		251,205
FHLMC Series 2690 Class TG		4.50			4-15-2032		1,327,231		1,375,736
FHLMC Series 2707 Class QE		4.50			11-15-2018		996,614		1,066,887
FHLMC Series 2843 Class BC		5.00			8-15-2019		2,382,274		2,583,500
FHLMC Series 2855 Class WN		4.00			9-15-2019		1,109,591		1,176,489
FHLMC Series 2937 Class HJ		5.00			10-15-2019		1,130,363		1,173,753
FHLMC Series 2948 Class KB		4.50			7-15-2019		2,217,942		2,287,168
FHLMC Series 3834 Class EA		3.50			6-15-2029		1,516,866		1,585,766
FHLMC Series 3842 Class CJ		2.00			9-15-2018		963,659		983,448
FHLMC Series 3952 Class MK		3.00			11-15-2021		3,448,809		3,549,004
FHLMC Series 4030 Class PA		3.50			6-15-2040		4,099,846		4,251,143
FHLMC Series 4157 Class MP		2.50			12-15-2015		942,156		946,203
FHLMC Structured Pass-Through Securities Series T-42 Class A6		9.50			2-25-2042		1,184,289		1,449,582
FNMA ±		1.98			1-1-2023		25,441		25,546
FNMA ±		2.04			10-1-2031		163,567		168,993
FNMA ±		2.25			5-1-2032		62,853		66,671
FNMA ±		2.37			11-1-2031		118,015		125,633
FNMA ±		2.42			6-1-2032		203,320		208,545
FNMA ±		2.45			12-1-2040		524,319		560,049
FNMA		3.03			1-1-2015		2,600,000		2,689,076
FNMA		3.09			5-1-2016		1,196,713		1,270,923
FNMA ±		3.36			4-1-2033		9,427		10,048
FNMA ±		3.58			7-1-2033		68,540		68,508
FNMA		3.93			8-1-2014		4,055,692		4,150,632
FNMA		4.00			12-15-2024		2,138,880		2,268,532
FNMA		4.22			5-1-2016		2,323,710		2,529,136
FNMA		4.44			9-1-2015		4,088,848		4,462,359
FNMA		4.88			1-1-2014		7,295,815		7,486,504
FNMA		5.23			7-1-2018		1,778,423		1,929,687

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

8 Wells Fargo Advantage Ultra Short-Term Income Fund Portfolio of investments—February 28, 2013 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA		5.24	%		1-1-2015	$	2,840,084	$	3,014,339
FNMA		5.42			11-1-2013		353,676		353,635
FNMA		6.00			4-1-2021		3,758,772		4,083,189
FNMA		6.50			8-1-2031		1,158,458		1,311,928
FNMA		7.00			11-1-2014		76,766		79,378
FNMA		7.84			4-1-2018		4,928,935		5,390,281
FNMA		8.33			7-15-2020		74,069		85,343
FNMA		8.50			7-1-2017		408,372		450,346
FNMA		9.00			10-1-2013		627		627
FNMA		9.00			12-1-2016		424,756		469,977
FNMA		9.00			2-15-2020		226,723		266,897
FNMA		9.00			10-1-2021		145,831		167,956
FNMA		9.00			6-1-2024		192,062		224,974
FNMA		9.50			12-1-2020		155,749		183,186
FNMA		9.50			3-1-2021		41,263		46,806
FNMA		10.00			3-1-2018		61,967		64,537
FNMA		10.25			9-1-2021		159,597		188,540
FNMA		10.50			10-1-2014		25,569		26,730
FNMA		10.50			8-1-2020		8,296		9,731
FNMA		10.50			4-1-2022		259,626		297,303
FNMA Grantor Trust Series 2000-T6 Class A2		9.50			6-25-2030		745,067		868,390
FNMA Grantor Trust Series 2001-T10 Class A3		9.50			12-25-2041		1,730,374		2,056,182
FNMA Grantor Trust Series 2001-T12 Class A3		9.50			8-25-2041		1,546,036		1,856,764
FNMA Grantor Trust Series 2001-T8 Class A3 ±		3.73			7-25-2041		3,261,316		3,294,356
FNMA Grantor Trust Series 2002-T1 Class A4		9.50			11-25-2031		2,075,395		2,485,026
FNMA Series 1988-4 Class Z		9.25			3-25-2018		84,738		94,390
FNMA Series 1988-9 Class Z		9.45			4-25-2018		51,247		57,119
FNMA Series 1989-30 Class Z		9.50			6-25-2019		244,465		275,647
FNMA Series 1989-49 Class E		9.30			8-25-2019		35,972		39,735
FNMA Series 1990-111 Class Z		8.75			9-25-2020		48,319		52,897
FNMA Series 1990-119 Class J		9.00			10-25-2020		135,137		155,616
FNMA Series 1990-124 Class Z		9.00			10-25-2020		89,309		102,902
FNMA Series 1990-21 Class Z		9.00			3-25-2020		202,255		230,692
FNMA Series 1990-27 Class Z		9.00			3-25-2020		147,962		169,832
FNMA Series 1990-30 Class D		9.75			3-25-2020		69,269		80,136
FNMA Series 1990-77 Class D		9.00			6-25-2020		64,165		72,681
FNMA Series 1991-132 Class Z		8.00			10-25-2021		293,268		341,330
FNMA Series 1992-71 Class X		8.25			5-25-2022		107,079		127,179
FNMA Series 2002-W4 Class A6 ±		3.31			5-25-2042		1,498,212		1,605,698
FNMA Series 2003-125 Class AY		4.00			12-25-2018		5,289,262		5,614,403
FNMA Series 2003-129 Class AP		4.00			1-25-2019		1,640,159		1,727,385
FNMA Series 2003-15 Class CN		5.00			3-25-2018		1,000,000		1,070,601
FNMA Series 2003-35 Class ME		5.00			5-25-2018		999,854		1,068,254
FNMA Series 2005-22 Class KJ		5.00			7-25-2033		2,433,935		2,462,422
FNMA Series 2007-2 Class FA ±		0.40			2-25-2037		620,944		618,686
FNMA Series 2007-B2 Class AB		5.50			12-25-2020		571,453		577,775
FNMA Series 2010-153 Class AB		2.00			11-25-2018		993,570		1,018,649
FNMA Series 2010-153 Class BG		2.50			11-25-2018		1,559,905		1,615,640
FNMA Series 2011-35 Class PA		4.00			2-25-2039		3,136,000		3,182,683
FNMA Series 2011-56 Class AC		2.00			7-25-2018		1,008,148		1,027,762

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

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA Series 2011-99 Class AB		4.00	%		12-25-2038	$	782,399	$	799,381
FNMA Series 2012-80 Class NA		2.75			6-25-2042		4,842,420		4,961,268
FNMA Series 2013-M1 Class ASQ1		0.49			11-25-2016		5,271,705		5,275,458
FNMA Series G-22 Class ZT		8.00			12-25-2016		485,925		528,714
FNMA Whole Loan Series 2003-W11 Class A1 ±		3.26			6-25-2033		81,331		80,973
FNMA Whole Loan Series 2003-W3 Class 1A4 ±		3.39			8-25-2042		63,608		68,520
FNMA Whole Loan Series 2003-W6 Class 6A ±		3.06			8-25-2042		4,430,964		4,719,787
FNMA Whole Loan Series 2004-W6 Class 1A4		5.50			7-25-2034		5,946,921		6,080,055
GNMA		7.00			5-15-2013		414		415
GNMA		7.00			6-15-2033		1,055,046		1,246,167
GNMA		9.00			11-15-2017		151,502		161,962
GNMA		9.50			11-15-2017		37,768		40,272
GNMA		10.00			10-20-2017		104,964		111,712
GNMA Series 2010-84 Class PA		2.00			2-20-2033		556,062		561,516
Total Agency Securities (Cost $129,857,490)									132,559,606
Asset-Backed Securities: 10.81%
Ally Auto Receivables Trust Series 2012-2 Class A2		0.56			10-15-2014		4,929,347		4,932,630
Chase Issuance Trust Series 2011-A2 Class A2±		0.29			5-15-2015		1,800,000		1,800,229
Citigroup Commercial Mortgage Trust Series 2004-C1 Class A4 ±		5.36			4-15-2040		6,200,000		6,459,557
CNH Equipment Trust Series 2012-A Class A2		0.65			7-15-2015		1,960,326		1,962,189
CNH Equipment Trust Series 2012-C Class A2		0.44			2-16-2016		8,500,000		8,502,950
CNH Equipment Trust Series 2013-A Class A2		0.44			7-15-2016		9,645,000		9,646,659
Countrywide Asset-Backed Certificates Series 2004-AB2 Class A3 ±		0.61			5-25-2036		1,921,800		1,905,197
DBRR Trust Series 2012-EZ1 Class A 144A		0.95			9-25-2045		3,252,318		3,262,689
Ford Credit Auto Lease Trust Series 2011-B Class A2		0.82			1-15-2014		3,769,565		3,772,840
Ford Credit Auto Lease Trust Series 2012-A Class A2		0.63			4-15-2014		4,054,767		4,057,954
Ford Credit Auto Owner Trust Series 2012-A Class A2		0.62			9-15-2014		1,110,061		1,110,683
Ford Credit Auto Owner Trust Series 2012-B Class A2		0.57			1-15-2015		4,958,623		4,962,560
Ford Credit Auto Owner Trust Series 2012-C Class A2		0.47			4-15-2015		3,476,666		3,479,180
Ford Credit Auto Owner Trust Series 2013-A Class A2		0.38			11-15-2015		4,000,000		3,999,678
Honda Auto Receivables Owner Trust Series 2012-1 Class A2		0.57			8-15-2014		4,725,856		4,729,996
Honda Auto Receivables Owner Trust Series 2012-2 Class A2		0.56			11-17-2014		6,564,590		6,571,962
Honda Auto Receivables Owner Trust Series 2012-3 Class A2		0.46			12-15-2014		5,000,000		5,003,565
Honda Auto Receivables Owner Trust Series 2012-4 Class A2		0.40			4-20-2015		3,950,000		3,950,770
Hyundai Auto Lease Securitization Trust Series 2013-A Class A2 144A%%		0.73			9-15-2015		6,755,000		6,754,791
Hyundai Auto Lease Securitization Trust Series 2012-A Class A2 144A		0.68			1-15-2015		3,812,992		3,818,071
Hyundai Auto Receivables Trust Hart Series 2011-C Class A2		0.62			7-15-2014		588,407		588,699
Hyundai Auto Receivables Trust Hart Series 2012-A Class A2		0.55			6-16-2014		1,862,112		1,863,065
Hyundai Auto Receivables Trust Hart Series 2012-B Class A2		0.54			1-15-2015		4,500,000		4,505,018
Hyundai Auto Receivables Trust Hart Series 2013-A Class A2		0.40			12-15-2015		5,310,000		5,310,000
John Deere Owner Trust Series 2012-A Class A2		0.59			6-16-2014		3,309,867		3,311,800
Mercedes-Benz Auto Lease Trust Series 2011-B Class A2 144A		0.90			1-15-2014		1,593,183		1,593,930
Mercedes-Benz Auto Receivables Trust Series 2012-1 Class A2		0.37			3-16-2015		5,000,000		5,001,895
Nissan Auto Receivables Owner Trust Series 2011-B Class A2		0.74			9-15-2014		605,886		606,672
Nissan Auto Receivables Owner Trust Series 2012-B Class A2		0.39			4-15-2015		6,000,000		6,002,286
Porsche Innovative Lease Owner Pilot Trust Series 2011-1 Class A2 144A		0.92			2-20-2014		657,122		657,480

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

10 Wells Fargo Advantage Ultra Short-Term Income Fund Portfolio of investments—February 28, 2013 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Asset-Backed Securities (continued)
Porsche Innovative Lease Owner Pilot Trust Series 2012-1 Class A2 144A		0.44	%		2-23-2015	$	6,000,000	$	6,002,370
Residential Asset Securities Corporation Series 2001-KS1 Class AII ±		0.67			3-25-2032		33,657		33,358
Structured Asset Investment Loan Trust Series 2005-10 Class A4 ±		0.40			12-25-2035		3,967,534		3,940,765
Volkswagen Auto Lease Trust Series 2011-A Class A2		1.00			2-20-2014		1,047,441		1,048,031
Volkswagen Auto Lease Trust Series 2012-A Class A2		0.66			11-20-2014		6,455,822		6,465,209
Volkswagen Auto Loan Enhanced Valet Series 2012-1 Class A2		0.61			10-20-2014		1,688,408		1,690,024
World Omni Automobile Lease Trust Series 2012-A Class A2		0.71			1-15-2015		2,250,174		2,253,100
Total Asset-Backed Securities (Cost $141,498,052)									141,557,852
Corporate Bonds and Notes: 38.66%
Consumer Discretionary: 5.39%
Automobiles: 0.27%
Daimler Finance NA LLC 144A		1.25			1-11-2016		3,510,000		3,518,227
Diversified Consumer Services: 0.17%
Life Technologies Corporation		3.38			3-1-2013		2,170,000		2,170,000
Leisure Equipment & Products: 0.40%
Hasbro Incorporated		6.13			5-15-2014		5,000,000		5,304,155
Media: 3.64%
DIRECTV Holdings LLC		4.75			10-1-2014		7,000,000		7,419,972
Discovery Communications LLC		3.70			6-1-2015		5,277,000		5,605,171
EchoStar DBS Corporation		7.00			10-1-2013		3,000,000		3,093,750
Interpublic Group of Companies Incorporated		6.25			11-15-2014		2,000,000		2,157,500
TCI Communications Incorporated		8.75			8-1-2015		6,000,000		7,118,580
TCM Sub LLC 144A		3.55			1-15-2015		9,071,000		9,446,521
Time Warner Cable Incorporated		6.20			7-1-2013		3,320,000		3,378,425
Time Warner Cable Incorporated		8.25			2-14-2014		2,455,000		2,625,785
Viacom Incorporated		4.38			9-15-2014		6,512,000		6,871,137
									47,716,841
Multiline Retail: 0.49%
Macy’s Retail Holdings Incorporated		5.75			7-15-2014		6,000,000		6,386,958
Specialty Retail: 0.42%
Best Buy Company Incorporated		7.25			7-15-2013		5,500,000		5,568,750
Consumer Staples: 3.21%
Beverages: 0.23%
Anheuser Busch InBev Worldwide Incorporated ±		1.04			3-26-2013		3,000,000		3,001,431
Food & Staples Retailing: 0.54%
Safeway Incorporated		5.63			8-15-2014		6,600,000		7,000,435
Food Products: 0.95%
Cadbury Schweppes Company 144A		5.13			10-1-2013		6,545,000		6,694,881
Conagra Foods Incorporated		5.88			4-15-2014		5,500,000		5,800,636
									12,495,517

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

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Household Products: 0.57%
Newell Rubbermaid Incorporated		2.00	%		6-15-2015	$	7,360,000	$	7,493,856
Personal Products: 0.46%
Avon Products Incorporated		4.80			3-1-2013		6,000,000		6,000,000
Tobacco: 0.46%
Reynolds American Incorporated		1.05			10-30-2015		4,050,000		4,045,974
Reynolds American Incorporated		7.30			7-15-2015		1,770,000		2,023,344
									6,069,318
Energy: 4.03%
Energy Equipment & Services: 1.05%
Enbridge Energy Partners LP		4.75			6-1-2013		7,350,000		7,405,735
Enterprise Products Operating LLC		3.70			6-1-2015		6,000,000		6,367,620
									13,773,355
Oil, Gas & Consumable Fuels: 2.98%
Apache Corporation		6.00			9-15-2013		6,175,000		6,352,507
Colorado Interstate Gas Company		5.95			3-15-2015		8,450,000		9,244,866
Energy Transfer Partners LP		5.95			2-1-2015		2,795,000		3,044,451
Marathon Oil Corporation		0.90			11-1-2015		4,000,000		3,990,788
Phillips 66 Company		1.95			3-5-2015		4,600,000		4,701,241
Valero Energy Corporation		4.75			4-1-2014		5,125,000		5,337,406
Williams Partners LP		3.80			2-15-2015		6,000,000		6,330,078
									39,001,337
Financials: 11.37%
Capital Markets: 1.40%
BlackRock Incorporated		1.38			6-1-2015		5,000,000		5,087,385
Goldman Sachs Group Incorporated		6.00			5-1-2014		6,000,000		6,351,756
Morgan Stanley		1.75			2-25-2016		4,000,000		4,017,804
Morgan Stanley		6.00			4-28-2015		2,660,000		2,903,762
									18,360,707
Commercial Banks: 1.06%
Associated Banc-Corp		1.88			3-12-2014		4,000,000		4,019,556
Fifth Third Bank		4.75			2-1-2015		3,000,000		3,212,730
First Tennessee Bank		4.63			5-15-2013		5,620,000		5,656,760
Union Bank NA		2.13			12-16-2013		1,000,000		1,013,555
									13,902,601
Consumer Finance: 3.51%
American Express Company		7.25			5-20-2014		6,000,000		6,469,062
American Honda Finance Corporation 144A		2.38			3-18-2013		4,000,000		4,002,908
Capital One Financial Corporation		7.38			5-23-2014		7,000,000		7,551,726
Caterpillar Financial Services Corporation		0.70			2-26-2016		4,785,000		4,781,344
Ford Motor Credit Company LLC		3.88			1-15-2015		6,000,000		6,244,950
Harley-Davidson Funding Corporation 144A		5.75			12-15-2014		4,866,000		5,275,975

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

12 Wells Fargo Advantage Ultra Short-Term Income Fund Portfolio of investments—February 28, 2013 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Consumer Finance (continued)
Nisource Finance Corporation		5.40	%		7-15-2014	$	4,797,000	$	5,087,099
PACCAR Financial Corporation		0.80			2-8-2016		3,000,000		3,000,342
SLM Corporation		3.88			9-10-2015		3,500,000		3,609,722
									46,023,128
Diversified Financial Services: 2.72%
Bank of America Corporation		7.38			5-15-2014		7,000,000		7,531,188
Citigroup Incorporated «		6.38			8-12-2014		7,000,000		7,527,968
General Electric Capital Corporation		1.00			1-8-2016		6,000,000		6,019,140
HSBC Finance Corporation		4.75			7-15-2013		6,000,000		6,090,408
HSBC Finance Corporation		5.50			1-19-2016		2,165,000		2,413,479
JPMorgan Chase & Company		1.13			2-26-2016		6,000,000		6,010,332
									35,592,515
Insurance: 1.45%
Genworth Life Institutional Funding Trust 144A		5.88			5-3-2013		3,715,000		3,743,535
MetLife Global Funding I 144A		2.00			1-10-2014		3,000,000		3,037,248
MetLife Institutional Funding III 144A		1.63			4-2-2015		3,500,000		3,560,169
Principal Life Global Funding II 144A		1.00			12-11-2015		5,000,000		5,015,255
Prudential Covered Trust Company 144A		3.00			9-30-2015		3,486,500		3,640,387
									18,996,594
REITs: 1.23%
American Tower Corporation		4.63			4-1-2015		6,300,000		6,747,250
Duke Realty LP		6.25			5-15-2013		1,950,000		1,970,816
Simon Property Group LP		5.45			3-15-2013		4,800,000		4,806,408
Ventas Realty LP		3.13			11-30-2015		2,400,000		2,534,750
									16,059,224
Health Care: 3.41%
Biotechnology: 0.55%
Biogen Idec Incorporated		6.00			3-1-2013		7,226,000		7,226,000
Health Care Equipment & Supplies: 0.51%
Boston Scientific Corporation		4.50			1-15-2015		4,500,000		4,770,900
Boston Scientific Corporation		5.45			6-15-2014		1,750,000		1,846,341
									6,617,241
Health Care Providers & Services: 0.95%
Express Scripts Holding Company		2.10			2-12-2015		6,400,000		6,542,336
McKesson HBOC Incorporated		5.25			3-1-2013		3,829,000		3,829,000
Unitedhealth Group Incorporated		0.85			10-15-2015		2,000,000		2,006,660
									12,377,996
Life Sciences Tools & Services: 1.02%
Life Technologies Corporation		4.40			3-1-2015		5,830,000		6,150,877
Thermo Fisher Scientific Incorporated		3.20			3-1-2016		6,823,000		7,223,278
									13,374,155

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

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Pharmaceuticals: 0.38%
AbbVie Incorporated 144A		1.20	%		11-6-2015	$	5,000,000	$	5,041,050
Industrials: 3.42%
Commercial Services & Supplies: 1.12%
Penske Truck Leasing Company LP 144A		2.50			7-11-2014		2,000,000		2,033,672
Penske Truck Leasing Company LP 144A		2.50			3-15-2016		2,720,000		2,788,326
Penske Truck Leasing Company LP 144A		3.13			5-11-2015		3,310,000		3,429,557
Pitney Bowes Incorporated		3.88			6-15-2013		6,412,000		6,459,212
									14,710,767
Electrical Equipment: 1.40%
Dayton Power & Light Company		5.13			10-1-2013		6,000,000		6,156,972
Eaton Corporation 144A		0.95			11-2-2015		5,000,000		5,022,575
Roper Industries Incorporated		6.63			8-15-2013		6,895,000		7,072,939
									18,252,486
Machinery: 0.39%
Case New Holland Incorporated		7.75			9-1-2013		5,000,000		5,143,750
Road & Rail: 0.51%
Ryder System Incorporated		3.50			6-1-2017		6,195,000		6,636,208
Information Technology: 1.84%
IT Services: 0.54%
Electronic Data Systems Corporation Series B		6.00			8-1-2013		7,000,000		7,148,239
Office Electronics: 0.50%
Xerox Corporation		8.25			5-15-2014		6,000,000		6,500,886
Semiconductors & Semiconductor Equipment: 0.31%
Broadcom Corporation		1.50			11-1-2013		4,000,000		4,030,404
Software: 0.49%
CA Incorporated		6.13			12-1-2014		6,000,000		6,481,074
Materials: 0.77%
Metals & Mining: 0.77%
Barrick Gold Corporation		1.75			5-30-2014		7,000,000		7,093,058
Freeport-McMoRan Copper & Gold Incorporated		1.40			2-13-2015		3,000,000		3,023,673
									10,116,731
Telecommunication Services: 2.45%
Diversified Telecommunication Services: 1.91%
AT&T Incorporated		0.88			2-13-2015		6,445,000		6,464,445
Crown Castle Towers LLC 144A		3.21			8-15-2035		6,000,000		6,270,546
Qwest Corporation ±		3.56			6-15-2013		3,000,000		3,008,835
Qwest Corporation		7.50			10-1-2014		3,274,000		3,573,319
SBA Tower Trust 144A		4.25			4-15-2040		5,415,000		5,745,770
									25,062,915

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

14 Wells Fargo Advantage Ultra Short-Term Income Fund Portfolio of investments—February 28, 2013 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Wireless Telecommunication Services: 0.54%
Verizon Wireless Capital LLC		7.38	%		11-15-2013	$	6,688,000	$	6,998,116
Utilities: 2.77%
Electric Utilities: 2.08%
Ameren Corporation		8.88			5-15-2014		6,000,000		6,508,278
Dominion Resources Incorporated		5.00			3-15-2013		8,425,000		8,435,995
Exelon Corporation		4.90			6-15-2015		2,000,000		2,168,670
Georgia Power Company		0.63			11-15-2015		3,000,000		2,998,956
LG&E and KU Energy LLC		2.13			11-15-2015		5,000,000		5,122,495
Nextera Energy Capital Company		1.61			6-1-2014		2,000,000		2,020,246
									27,254,640
Gas Utilities: 0.46%
Atmos Energy Corporation		4.95			10-15-2014		5,640,000		6,006,555
Multi-Utilities: 0.23%
DTE Energy Company±		1.01			6-3-2013		3,000,000		3,004,143
Total Corporate Bonds and Notes (Cost $504,018,848)									506,418,305
Municipal Obligations: 5.27%
Arizona: 0.76%
Phoenix AZ IDA Various Refunding Republic Services Incorporated Project (IDR) ±		0.58			12-1-2035		10,000,000		10,000,000
California: 1.14%
California PCFA Waste Management Services Incorporated Series A1 (Resource Recovery Revenue) ±		1.88			4-1-2025		4,000,000		4,072,520
California Public Works Board Lease Series E (Health Revenue)		3.68			12-1-2015		5,000,000		5,131,800
Irvine Ranch CA Water District (Water & Sewer Revenue)		2.39			3-15-2014		5,680,000		5,693,916
									14,898,236
Florida: 0.22%
Miami-Dade County FL IDA Waste Management Incorporated Florida Project (Resource Recovery Revenue) ±		2.63			8-1-2023		2,800,000		2,863,392
Illinois: 0.45%
Illinois State (Tax Revenue)		4.42			1-1-2015		5,635,000		5,940,192
Louisiana: 0.40%
Louisiana State Gas & Fuels Tax Build America Bonds Series A-4 (Tax Revenue) ±		2.70			5-1-2043		5,250,000		5,261,918
Michigan: 0.81%
Michigan State Housing Development Authority Series A (Housing Revenue) ±		0.85			12-1-2014		4,100,000		4,100,164
Wayne County MI (Tax Revenue)		3.00			3-15-2013		6,500,000		6,505,200
									10,605,364

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

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 15

Security name	Interest rate			Maturity date		Principal		Value
Minnesota: 0.80%
Minnesota Tobacco Securitization Authority Series A (Tobacco Revenue)		2.64	%		3-1-2014	$	1,500,000	$	1,528,140
Twins Ballpark LLC (Commercial Services & Supplies) ±144A		0.95			10-1-2034		9,000,000		9,000,000
									10,528,140
New Jersey: 0.11%
Atlantic City NJ (Tax Revenue, AGM Insured)		4.00			12-15-2013		1,375,000		1,398,444
New York: 0.15%
Dutchess County NY Local Development Corporation (Health Revenue)		1.35			7-1-2014		1,775,000		1,778,994
Onondaga County NY Property Tax Receivables (Lease Revenue)		3.50			4-1-2013		165,000		165,183
									1,944,177
Ohio: 0.23%
Ohio State Water Development Authority Solid Waste Management Incorporated Project (Resource Recovery Revenue) ±		1.75			6-1-2013		3,000,000		3,011,910
Texas: 0.20%
Houston TX Airport Services Sub-Lien Series A (Airport Revenue)		5.00			7-1-2013		2,500,000		2,540,500
Total Municipal Obligations (Cost $68,687,989)									68,992,273
Non-Agency Mortgage Backed Securities: 9.20%
Bank of America Commercial Mortgage Incorporated Series 2004-1 Class A4		4.76			11-10-2039		6,618,172		6,784,394
Bank of America Commercial Mortgage Incorporated Series 2004-3 Class A5 ±		5.55			6-10-2039		6,417,522		6,700,926
Bank of America Commercial Mortgage Incorporated Series 2004-5 Class A4 ±		4.94			11-10-2041		5,789,502		6,092,565
Bank of America Mortgage Securities Series 2002-K Class 3A1 ±		2.75			10-20-2032		2,684		2,752
Bear Stearns Commercial Mortgage Securities Incorporated Series 2004-PWR3 Class A4		4.72			2-11-2041		1,500,000		1,530,512
Bear Stearns Commercial Mortgage Securities Incorporated Series 2005-PWR 9 Class A4A		4.87			9-11-2042		5,850,000		6,345,840
Bear Stearns Commercial Mortgage Securities Incorporated Series 2005-PWR-7 Class A3 ±		5.12			2-11-2041		3,700,000		3,962,578
Bear Stearns Commercial Mortgage Securities Incorporated Series 2005-PWR8 Class A4		4.67			6-11-2041		2,130,000		2,282,911
Bear Stearns Commercial Mortgage Securities Incorporated Series 2005-T18 Class A4 ±		4.93			2-13-2042		5,959,190		6,383,770
Citigroup Deutsche Bank Commercial Mortgage Trust Series 2005-CD1 Class A4 ±		5.22			7-15-2044		3,500,000		3,841,506
Collateralized Mortgage Obligation Trust Series 66 Class Z		8.00			9-20-2021		124,822		139,169
Commercial Mortgage Pass-Through Trust Series 2010-C1 Class A1 144A		3.16			7-10-2046		5,661,985		5,950,967
Commercial Mortgage Trust Pass-Through Certificates Series 2004-LB4A Class A4		4.58			10-15-2037		961,589		964,130
Commercial Mortgage Trust Pass-Through Certificates Series 2005-C6 Class A5A ±		5.12			6-10-2044		5,585,000		6,083,517
Countrywide Home Loans Mortgage Pass-Through Trust Series 2001-HYB1 Class 1A1 ±		2.11			6-19-2031		660,263		662,552

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

16 Wells Fargo Advantage Ultra Short-Term Income Fund Portfolio of investments—February 28, 2013 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage Backed Securities (continued)
Countrywide Home Loans Mortgage Pass-Through Trust Series 2001-HYB1 Class 2A1 ±		1.95	%		6-19-2031	$	301,247	$	304,329
Countrywide Home Loans Mortgage Pass-Through Trust Series 2004-20 Class 3A1 ±		2.23			9-25-2034		252,639		198,440
Credit Suisse First Boston Mortgage Securities Corporation Series 2005-C3 Class A4		4.69			7-15-2037		1,168,000		1,255,308
Credit Suisse First Boston Mortgage Securities Corporation Series 2005-C5 Class A4 ±		5.10			8-15-2038		2,850,000		3,091,877
Credit Suisse Mortgage Capital Certificates Series 2010-12R Class 11A1 ±144A		4.00			7-26-2036		1,280,761		1,284,856
DLJ Mortgage Acceptance Corporation Series 1990-2 Class A ±(i)		3.40			1-25-2022		122,980		125,595
DLJ Mortgage Acceptance Corporation Series 1991-3 Class A1 ±(i)		1.97			1-25-2021		47,513		48,178
EquiFirst Mortgage Loan Trust Series 2003-2 Class 3A3 ±		1.33			9-25-2033		867,362		866,806
GE Capital Commercial Mortgage Corporation Series 2004-C1 Class A3		4.60			11-10-2038		451,857		460,819
GE Capital Commercial Mortgage Corporation Series 2004-C2 Class A4		4.89			3-10-2040		5,636,000		5,811,184
GE Capital Commercial Mortgage Corporation Series 2004-C3 Class A4 ±		5.19			7-10-2039		3,880,259		4,068,071
GE Capital Commercial Mortgage Corporation Series 2005-C3 Class A7A ±		4.97			7-10-2045		5,430,000		5,904,848
GSMPS Mortgage Loan Trust Series 1998-1 Class A ±144A		8.00			9-19-2027		104,517		108,158
Housing Securities Incorporated Series 1992-8 Class E±		3.58			6-25-2024		167,357		166,397
Lehman Brothers UBS Commercial Mortgage Trust Series 2005-C1 Class A4		4.74			2-15-2030		6,210,000		6,578,744
Lehman Brothers UBS Commercial Mortgage Trust Series 2005-C5 Class 4		4.95			9-15-2030		6,950,000		7,519,358
Master Mortgages Trust Series 2002-3 Class 4A1 ±		2.50			10-25-2032		34,090		34,575
Morgan Stanley Capital I Series 2005-IQ10 Class A4A ±		5.23			9-15-2042		6,380,000		6,911,052
Morgan Stanley Capital I Series 2005-T19 Class A4A		4.89			6-12-2047		4,815,000		5,216,744
Morgan Stanley Dean Witter Capital I Series 2004-T15 Class A3		5.03			6-13-2041		1,267,764		1,275,157
Morgan Stanley Dean Witter Capital I Series 2005-IQ9 Class A5		4.70			7-15-2056		1,000,000		1,060,634
Morgan Stanley Mortgage Trust Series 35 Class 2 ±(i)(w)		15,273.50			4-20-2021		28		5,777
Prudential Home Mortgage Securities Series 1988-1 Class A ±		2.50			4-25-2018		26,463		26,867
Resecuritization Mortgage Trust Series 1998-B Class A ±144A		0.45			4-26-2021		10,810		10,081
Salomon Brothers Mortgage Securities VII Series 1990-2 Class A ±		2.06			11-25-2020		493,021		505,032
Springleaf Mortgage Loan Trust Series 2012-2A Class A ±144A		2.22			10-25-2057		3,501,942		3,543,265
Structured Asset Mortgage Investments Incorporated Series 2001-4 Class A2 ±		9.61			10-25-2024		194,695		205,834
Structured Asset Securities Corporation Series 1998-2 Class A ±		0.72			2-25-2028		348,084		344,679
Terwin Mortgage Trust Series 2004-21HE Class 1A1 ±		1.16			12-25-2034		74,641		70,731
UBS Barclays Commercial Mortgage Trust Series 2012-C2 Class A1		1.01			5-10-2063		4,540,281		4,565,920
Wilshire Funding Corporation Series 1996-3 Class M2 ±		5.77			8-25-2032		202,998		198,925
Wilshire Funding Corporation Series 1996-3 Class M3 ±		5.77			8-25-2032		181,906		174,232
Wilshire Funding Corporation Series 1998-2 Class M1 ±		2.00			12-28-2037		864,393		789,980
Total Non-Agency Mortgage Backed Securities (Cost $120,630,429)									120,460,542
Yankee Corporate Bonds and Notes: 18.75%
Consumer Discretionary: 1.36%
Auto Components: 0.31%
Autoliv Incorporated		3.85			4-30-2014		4,000,000		4,059,180

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

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 17

Security name	Interest rate			Maturity date		Principal		Value
Diversified Consumer Services: 0.51%
Anglo American Capital Company 144A		9.38	%		4-8-2014	$	6,130,000	$	6,651,479
Media: 0.23%
Thomson Reuters Corporation		5.95			7-15-2013		3,000,000		3,059,169
Multiline Retail: 0.31%
Wesfarmers Limited 144A		7.00			4-10-2013		4,000,000		4,021,276
Consumer Staples: 0.37%
Beverages: 0.16%
Heineken NV 144A		0.80			10-1-2015		2,000,000		2,003,152
Tobacco: 0.21%
BAT International Finance plc 144A		1.40			6-5-2015		2,750,000		2,782,519
Energy: 2.56%
Oil, Gas & Consumable Fuels: 2.56%
Husky Energy Incorporated		5.90			6-15-2014		6,000,000		6,382,734
Noble Corporation		5.88			6-1-2013		7,420,000		7,499,854
Petrobras International Finance Company		2.88			2-6-2015		7,000,000		7,128,513
Weatherford International Limited		4.95			10-15-2013		6,000,000		6,153,762
Woodside Finance Limited 144A		8.13			3-1-2014		6,000,000		6,415,332
									33,580,195
Financials: 10.46%
Commercial Banks: 9.56%
ABN AMRO Bank NV 144A		1.38			1-22-2016		3,935,000		3,938,046
Bank Nederlandse Gemeenten		5.00			5-16-2014		14,000,000		14,739,956
Bank of Montreal 144A		1.30			10-31-2014		5,500,000		5,579,200
Bank of Nova Scotia		0.75			10-9-2015		4,000,000		3,999,176
Bank of Nova Scotia 144A		1.45			7-26-2014		12,000,000		12,052,800
Canadian Imperial Bank 144A«		0.90			9-19-2014		4,000,000		4,031,600
Commonwealth Bank of Australia ±144A		0.86			3-19-2013		4,500,000		4,500,959
Commonwealth Bank of Australia (New York)		1.95			3-16-2015		1,000,000		1,025,812
ING Bank NV ±144A		1.36			3-15-2013		6,000,000		6,002,286
ING Bank NV 144A%%		1.38			3-7-2016		6,000,000		5,987,520
Intesa Sanpaolo SpA		3.13			1-15-2016		5,805,000		5,728,026
KFW Bankengruppe ±		0.28			11-28-2014		7,000,000		6,997,571
Macquarie Bank Limited 144A		3.45			7-27-2015		5,000,000		5,199,845
Nordea Eiendomskreditt 144A		1.88			4-7-2015		12,500,000		12,702,500
SpareBank 1 Boligkreditt 144A		1.25			10-25-2014		14,000,000		14,068,418
Stadshypotek AB 144A		1.45			9-30-2013		12,500,000		12,579,113
Xstrata Finance Canada Limited 144A		2.85			11-10-2014		6,000,000		6,156,300
									125,289,128
Diversified Financial Services: 0.90%
Abbey National Treasury Service plc 144A		3.88			11-10-2014		4,400,000		4,574,354
WPP Finance		8.00			9-15-2014		6,500,000		7,158,931
									11,733,285

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

18 Wells Fargo Advantage Ultra Short-Term Income Fund Portfolio of investments—February 28, 2013 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Health Care: 0.58%
Health Care Equipment & Supplies: 0.31%
Covidien International Finance SA		1.35	%		5-29-2015	$	4,000,000	$	4,051,436
Pharmaceuticals: 0.27%
Takeda Pharmaceutical Company 144A		1.03			3-17-2015		3,500,000		3,524,150
Industrials: 0.27%
Machinery: 0.27%
Pentair Finance SA 144A		1.35			12-1-2015		3,500,000		3,505,800
Materials: 0.84%
Metals & Mining: 0.84%
Arcelormittal Company		5.38			6-1-2013		5,500,000		5,549,566
Rio Tinto Finance USA Limited		8.95			5-1-2014		5,000,000		5,472,730
									11,022,296
Telecommunication Services: 2.31%
Diversified Telecommunication Services: 1.97%
Deutsche Telekom International Finance BV		5.25			7-22-2013		7,000,000		7,123,298
Telefonica Emisiones SAU		2.58			4-26-2013		6,145,000		6,156,958
Telefonos de Mexico SA		5.50			1-27-2015		6,000,000		6,471,618
Vivendi SA 144A		2.40			4-10-2015		6,000,000		6,106,296
									25,858,170
Wireless Telecommunication Services: 0.34%
Rogers Wireless Incorporated		6.38			3-1-2014		4,200,000		4,429,692
Total Yankee Corporate Bonds and Notes (Cost $244,131,603)									245,570,927
	Yield					Shares
Short-Term Investments: 6.59%
Investment Companies: 6.54%
Wells Fargo Advantage Cash Investment Money Market Fund, Select Class (l)(u) ##		0.13					81,349,139		81,349,139
Wells Fargo Securities Lending Cash Investments, LLC (l)(u)(r)(v)		0.18					4,256,788		4,256,788
									85,605,927
	Interest rate					Principal
U.S. Treasury Securities: 0.05%
U.S. Treasury Bill (z) #		0.03			3-21-2013	$	100,000		99,998
U.S. Treasury Bill (z) #		0.06			3-21-2013		600,000		599,979
									699,977
Total Short-Term Investments (Cost $86,305,904)									86,305,904

Total investments in securities (Cost $1,295,130,315) *	99.40	%		1,301,865,409
Other assets and liabilities, net	0.60			7,890,132
Total net assets	100.00	%	$	1,309,755,541

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

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 19

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

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.

%% Security issued on a when-issued basis.

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

(i) Illiquid security

(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%.

(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 Investment Company Act of 1940, as amended.

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

(z) Zero coupon security. Rate represents yield to maturity at time of purchase.

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

* Cost for federal income tax purposes is $1,294,957,643 and unrealized appreciation (depreciation) consists of:

Gross unrealized appreciation	$	8,984,656
Gross unrealized depreciation		(2,076,890	)
Net unrealized appreciation	$	6,907,766

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 28, 2013 (unaudited)

Assets
Investments
In unaffiliated securities (including securities on loan), at value (see cost below)	$	1,216,259,482
In affiliated securities, at value (see cost below)		85,605,927
Total investments, at value (see cost below)		1,301,865,409
Receivable for investments sold		2,503,679
Principal paydown receivable		11,499
Receivable for Fund shares sold		28,685,569
Receivable for interest		10,043,787
Prepaid expenses and other assets		71,713
Total assets		1,343,181,656
Liabilities
Dividends payable		276,977
Payable for investments purchased		23,813,013
Payable for Fund shares redeemed		4,458,095
Payable upon receipt of securities loaned		4,256,788
Payable for daily variation margin on open futures contracts		54,717
Advisory fee payable		185,715
Distribution fees payable		7,646
Due to other related parties		167,266
Accrued expenses and other liabilities		205,898
Total liabilities		33,426,115
Total net assets	$	1,309,755,541
NET ASSETS CONSIST OF
Paid-in capital	$	1,412,241,680
Overdistributed net investment income		(127,979	)
Accumulated net realized losses on investments		(108,740,646	)
Net unrealized gains on investments		6,382,486
Total net assets	$	1,309,755,541
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE1
Net assets – Class A	$	171,670,850
Shares outstanding – Class A		20,064,863
Net asset value per share – Class A		$8.56
Maximum offering price per share – Class A2		$8.73
Net assets – Class C	$	12,556,724
Shares outstanding – Class C		1,467,881
Net asset value per share – Class C		$8.55
Net assets – Administrator Class	$	81,862,451
Shares outstanding – Administrator Class		9,604,872
Net asset value per share – Administrator Class		$8.52
Net assets – Institutional Class	$	699,875,670
Shares outstanding – Institutional Class		81,842,648
Net asset value per share – Institutional Class		$8.55
Net assets – Investor Class	$	343,789,846
Shares outstanding – Investor Class		40,166,445
Net asset value per share – Investor Class		$8.56
Investment in unaffiliated securities (including securities on loan), at cost	$	1,209,524,388
Investments in affiliated securities, at cost	$	85,605,927
Total investments, at cost	$	1,295,130,315
Securities on loan, at value	$	4,169,389

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 28, 2013 (unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 21

Investment income
Interest	$	8,865,006
Income from affiliated securities		79,097
Securities lending income, net		2,561
Total investment income		8,946,664
Expenses
Advisory fee		2,175,989
Administration fees
Fund level		298,943
Class A		119,081
Class C		11,160
Administrator Class		48,352
Institutional Class		236,691
Investor Class		327,312
Shareholder servicing fees
Class A		186,065
Class C		17,437
Administrator Class		120,879
Investor Class		430,428
Distribution fees
Class C		52,311
Custody and accounting fees		34,699
Professional fees		29,258
Registration fees		31,712
Shareholder report expenses		54,869
Trustees’ fees and expenses		5,214
Other fees and expenses		12,493
Total expenses		4,192,893
Less: Fee waivers and/or expense reimbursements		(1,011,752	)
Net expenses		3,181,141
Net investment income		5,765,523
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized losses on:
Unaffiliated securities		(2,294,018	)
Futures transactions		(189,259	)
Net realized losses on investments		(2,483,277	)
Net change in unrealized gains (losses) on:
Unaffiliated securities		2,884,840
Futures transactions		26,470
Net change in unrealized gains (losses) on investments		2,911,310
Net realized and unrealized gains (losses) on investments		428,033
Net increase in net assets resulting from operations	$	6,193,556

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

22 Wells Fargo Advantage Ultra Short-Term Income Fund Statement of changes in net assets

	Six months ended February 28, 2013 (unaudited)						Year ended August 31, 2012
Operations
Net investment income				$	5,765,523					$	15,874,973
Net realized losses on investments					(2,483,277	)					(13,553,590	)
Net change in unrealized gains (losses) on investments					2,911,310						18,318,278
Net increase in net assets resulting from operations					6,193,556						20,639,661
Distributions to shareholders from
Net investment income
Class A					(610,375	)					(1,706,164	)
Class C					(5,389	)					(64,064	)
Administrator Class					(471,515	)					(1,280,299	)
Institutional Class					(3,472,875	)					(8,845,086	)
Investor Class					(1,367,050	)					(3,979,306	)
Total distributions to shareholders					(5,927,204	)					(15,874,919	)
		Shares						Shares
Capital share transactions
Proceeds from shares sold
Class A		9,611,586			82,286,665			15,297,629			130,298,204
Class C		156,676			1,341,622			362,604			3,087,501
Administrator Class		3,543,224			30,225,214			7,201,060			61,111,549
Institutional Class		60,212,229			515,295,250			67,423,753			574,226,398
Investor Class		6,793,856			58,188,848			8,117,216			69,152,270
					687,337,599						837,875,922
Reinvestment of distributions
Class A		70,070			599,915			172,365			1,467,779
Class C		614			5,261			6,133			52,184
Administrator Class		37,336			318,503			108,875			923,444
Institutional Class		221,651			1,896,572			702,514			5,980,790
Investor Class		149,670			1,281,973			433,571			3,693,726
					4,102,224						12,117,923
Payment for shares redeemed
Class A		(6,732,210	)		(57,648,122	)		(17,228,488	)		(146,679,783	)
Class C		(437,567	)		(3,746,115	)		(865,189	)		(7,362,232	)
Administrator Class		(6,159,102	)		(52,524,862	)		(7,790,125	)		(66,050,255	)
Institutional Class		(47,393,914	)		(405,644,560	)		(69,420,229	)		(591,167,085	)
Investor Class		(7,908,205	)		(67,744,344	)		(12,597,641	)		(107,310,761	)
					(587,308,003	)					(918,570,116	)
Net increase (decrease) in net assets resulting from capital share transactions					104,131,820						(68,576,271	)
Total increase (decrease) in net assets					104,398,172						(63,811,529	)
Net assets
Beginning of period					1,205,357,369						1,269,168,898
End of period				$	1,309,755,541					$	1,205,357,369
Undistributed (overdistributed) net investment income				$	(127,979	)				$	33,702

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 28, 2013 (unaudited)			Year ended August 31									Year ended May 31
CLASS A				2012			2011			20101			2010			20092			20082
Net asset value, beginning of period	$	8.55		$	8.52		$	8.52		$	8.48		$	8.03		$	8.71		$	9.09
Net investment income		0.03			0.10			0.10			0.04			0.17			0.31			0.43
Net realized and unrealized gains (losses) on investments		0.01			0.03			0.02			0.04			0.48			(0.68	)		(0.37	)
Total from investment operations		0.04			0.13			0.12			0.08			0.65			(0.37	)		0.06
Distributions to shareholders from
Net investment income		(0.03	)		(0.10	)		(0.12	)		(0.04	)		(0.20	)		(0.31	)		(0.44	)
Net asset value, end of period	$	8.56		$	8.55		$	8.52		$	8.52		$	8.48		$	8.03		$	8.71
Total return3		0.53	%		1.47	%		1.37	%		0.94	%		8.22	%		(4.27	)%		0.68	%
Ratios to average net assets (annualized)
Gross expenses		0.85	%		0.88	%		0.87	%		0.88	%		0.91	%		0.93	%		1.08	%
Net expenses		0.70	%		0.70	%		0.70	%		0.70	%		0.70	%		0.70	%		0.73	%
Net investment income		0.79	%		1.11	%		1.17	%		1.62	%		1.98	%		3.70	%		4.89	%
Supplemental data
Portfolio turnover rate		29	%		61	%		60	%		9	%		45	%		32	%		48	%
Net assets, end of period (000s omitted)	$	171,671		$	146,400		$	160,768		$	208,845		$	154,016		$	44,163		$	42,615

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 28, 2013 (unaudited)			Year ended August 31									Year ended May 31
CLASS C				2012			2011			20101			2010			20092
Net asset value, beginning of period	$	8.55		$	8.52		$	8.52		$	8.48		$	8.03		$	8.57
Net investment income		0.00	3		0.03			0.04			0.02			0.12			0.21
Net realized and unrealized gains (losses) on investments		0.00	3		0.03			0.01			0.04			0.47			(0.54	)
Total from investment operations		0.00	3		0.06			0.05			0.06			0.59			(0.33	)
Distributions to shareholders from
Net investment income		(0.00	)3		(0.03	)		(0.05	)		(0.02	)		(0.14	)		(0.21	)
Net asset value, end of period	$	8.55		$	8.55		$	8.52		$	8.52		$	8.48		$	8.03
Total return4		0.04	%		0.71	%		0.61	%		0.75	%		7.41	%		(3.85	)%
Ratios to average net assets (annualized)
Gross expenses		1.60	%		1.63	%		1.62	%		1.63	%		1.67	%		1.64	%
Net expenses		1.45	%		1.45	%		1.45	%		1.45	%		1.45	%		1.45	%
Net investment income		0.05	%		0.37	%		0.43	%		0.88	%		1.30	%		2.77	%
Supplemental data
Portfolio turnover rate		29	%		61	%		60	%		9	%		45	%		32	%
Net assets, end of period (000s omitted)	$	12,557		$	14,951		$	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. Amount is less than $0.005.

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 Ultra Short-Term Income Fund 25

(For a share outstanding throughout each period)

	Six months ended February 28, 2013 (unaudited)			Year ended August 31									Year ended May 31
ADMINISTRATOR CLASS				2012			2011			20101			2010			2009			2008
Net asset value, beginning of period	$	8.52		$	8.48		$	8.48		$	8.45		$	8.00		$	8.68		$	9.06
Net investment income		0.04			0.11			0.11			0.04			0.19			0.32			0.46
Net realized and unrealized gains (losses) on investments		0.00	2		0.04			0.02			0.03			0.46			(0.68	)		(0.38	)
Total from investment operations		0.04			0.15			0.13			0.07			0.65			(0.36	)		0.08
Distirbutions to shareholders from
Net investment income		(0.04	)		(0.11	)		(0.13	)		(0.04	)		(0.20	)		(0.32	)		(0.46	)
Net asset value, end of period	$	8.52		$	8.52		$	8.48		$	8.48		$	8.45		$	8.00		$	8.68
Total return3		0.49	%		1.74	%		1.52	%		0.86	%		8.41	%		(4.15	)%		0.84	%
Ratios to average net assets (annualized)
Gross expenses		0.79	%		0.82	%		0.79	%		0.79	%		0.81	%		0.81	%		0.90	%
Net expenses		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%		0.57	%
Net investment income		0.94	%		1.26	%		1.33	%		1.65	%		2.32	%		3.77	%		5.03	%
Supplemental data
Portfolio turnover rate		29	%		61	%		60	%		9	%		45	%		32	%		48	%
Net assets, end of period (000s omitted)		$81,862			$103,810			$107,449			$205,587			$82,835			$59,184			$28,254

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. Amount is less than $0.005.

3. 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 28, 2013 (unaudited)			Year ended August 31									Year ended May 31
INSTITUTIONAL CLASS				2012			2011			20101			2010			2009			2008
Net asset value, beginning of period	$	8.55		$	8.51		$	8.51		$	8.48		$	8.03		$	8.71		$	9.09
Net investment income		0.05			0.13			0.13			0.04			0.19			0.33			0.47
Net realized and unrealized gains (losses) on investments		0.00	2		0.04			0.02			0.04			0.49			(0.67	)		(0.37	)
Total from investment operations		0.05			0.17			0.15			0.08			0.68			(0.34	)		0.10
Distributions to shareholders from
Net investment income		(0.05	)		(0.13	)		(0.15	)		(0.05	)		(0.23	)		(0.34	)		(0.48	)
Net asset value, end of period	$	8.55		$	8.55		$	8.51		$	8.51		$	8.48		$	8.03		$	8.71
Total return3		0.59	%		1.94	%		1.72	%		1.03	%		8.48	%		(3.93	)%		1.07	%
Ratios to average net assets (annualized)
Gross expenses		0.52	%		0.55	%		0.54	%		0.54	%		0.57	%		0.59	%		0.63	%
Net expenses		0.35	%		0.35	%		0.35	%		0.35	%		0.35	%		0.35	%		0.35	%
Net investment income		1.15	%		1.46	%		1.50	%		2.01	%		2.26	%		4.09	%		5.24	%
Supplemental data
Portfolio turnover rate		29	%		61	%		60	%		9	%		45	%		32	%		48	%
Net assets, end of period (000s omitted)		$699,876			$588,228			$596,838			$260,747			$197,087			$27,680			$61,898

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. Amount is less than $0.005.

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 Ultra Short-Term Income Fund 27

(For a share outstanding throughout each period)

	Six months ended February 28, 2013 (unaudited)			Year ended August 31									Year ended May 31
INVESTOR CLASS				2012			2011			20101			2010			2009			2008
Net asset value, beginning of period	$	8.56		$	8.52		$	8.52		$	8.48		$	8.03		$	8.71		$	9.09
Net investment income		0.03			0.09			0.10			0.04			0.18			0.31			0.43
Net realized and unrealized gains (losses) on investments		0.00	2		0.04			0.01			0.04			0.47			(0.68	)		(0.37	)
Total from investment operations		0.03			0.13			0.11			0.08			0.65			(0.37	)		0.06
Distributions to shareholders from
Net investment income		(0.03	)		(0.09	)		(0.11	)		(0.04	)		(0.20	)		(0.31	)		(0.44	)
Net asset value, end of period	$	8.56		$	8.56		$	8.52		$	8.52		$	8.48		$	8.03		$	8.71
Total return3		0.40	%		1.56	%		1.34	%		0.93	%		8.18	%		(4.32	)%		0.64	%
Ratios to average net assets (annualized)
Gross expenses		0.88	%		0.91	%		0.90	%		0.92	%		0.98	%		0.99	%		1.21	%
Net expenses		0.73	%		0.73	%		0.73	%		0.74	%		0.75	%		0.75	%		0.78	%
Net investment income		0.76	%		1.08	%		1.15	%		1.66	%		2.16	%		3.69	%		4.86	%
Supplemental data
Portfolio turnover rate		29	%		61	%		60	%		9	%		45	%		32	%		48	%
Net assets, end of period (000s omitted)		$343,790			$351,969			$384,998			$436,991			$453,772			$423,039			$594,246

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. Amount is less than $0.005.

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 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

All investments are valued each business day as of the close of regular trading on the New York Stock Exchange (normally 4 p.m. Eastern Time).

Fixed income securities acquired with maturities exceeding 60 days are valued based on evaluated bid prices received from an independent pricing service 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 independent pricing service or values received are deemed not representative of market value, values will be obtained from a broker-dealer or otherwise determined based on the Fund’s Valuation Procedures.

Debt securities of sufficient credit quality acquired with 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 registered open-end investment companies are valued at net asset value. Non-registered investment companies are fair 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. The Board of Trustees has established a Valuation Committee comprised of the Trustees and has delegated to it the authority to take any actions regarding the valuation of portfolio securities that the Valuation Committee deems necessary or appropriate, including determining the fair value of portfolio securities, unless the determination has been delegated to the Management Valuation Team of Wells Fargo Funds Management, LLC (“Funds Management”). The Board of Trustees retains the authority to make or ratify any valuation decisions or approve any changes to the Valuation Procedures as it deems appropriate. On a quarterly basis, the Board of Trustees receives reports on any valuation actions taken by the Valuation Committee or the Management Valuation Team which may include items for ratification.

Valuations of fair valued securities are compared to the next actual sales price when available, or other appropriate market information to assess the continued appropriateness of the fair valuation methodology used. These securities are fair valued on a day-to-day basis, taking into consideration changes to appropriate market information and any significant changes to the input factors considered in the valuation process until there is a readily available price provided on the exchange or by an independent pricing service. Valuations received from an independent pricing service or broker quotes are periodically validated by comparisons to most recent trades and valuations provided by other independent pricing services in addition to the review of prices by the adviser and/or subadviser. Unobservable inputs used in determining fair valuations are identified based on the type of security, taking into consideration factors utilized by market participants in valuing the investment, knowledge about the issuer and the current market environment.

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

Notes to financial statements (unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 29

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 Funds Management and is subadvised by Wells Capital Management Incorporated (“WellsCap”). 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 WellsCap for its services as subadviser. 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 in an amount at least equal in value to the Fund’s commitment to purchase when-issued securities. Securities purchased on a when-issued basis are marked-to-market daily and the Fund begins earning interest on the settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.

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 recorded on the basis of identified cost.

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

Federal and other taxes

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

30 Wells Fargo Advantage Ultra Short-Term Income Fund Notes to financial statements (unaudited)

The Fund’s income and federal excise tax returns and all financial records supporting those returns for the prior three fiscal years are subject to examination by the federal and Delaware revenue authorities. Management has analyzed the Fund’s tax positions taken on federal, state, and foreign tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

At August 31, 2012, net capital loss carryforwards, which were available to offset future net realized capital gains, were as follows:

Pre-enactment capital loss expiration*							Post-enactment capital loss**
2013	2014	2015	2016	2017	2018	2019	Short-term	Long-term
$477,614	$25,866,042	$2,154,408	$8,848,032	$35,029,445	$7,738,751	$7,448,920	$973,451	$3,552,534

* Losses incurred in taxable years beginning before December 22, 2010.

** Losses incurred in taxable years which began after December 22, 2010 are carried forward for an unlimited period.

As of August 31, 2012, the Fund had $14,340,844 of current year deferred post-October capital losses which will be recognized on the first day of the current fiscal 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 any 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, use of amortized cost, etc.)

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

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

Notes to financial statements (unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 31

As of February 28, 2013, the inputs used in valuing investments in securities, 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	$	132,559,606	$	0	$	132,559,606
Asset-backed securities		0		141,557,852		0		141,557,852
Corporate bonds and notes		0		506,418,305		0		506,418,305
Municipal obligations		0		68,992,273		0		68,992,273
Non-agency mortgage backed securities		0		120,460,542		0		120,460,542
Yankee corporate bonds and notes		0		245,570,927		0		245,570,927
Short-term investments
Investment companies		81,349,139		4,256,788		0		85,605,927
U.S. Treasury securities		699,977		0		0		699,977
	$	82,049,116	$	1,219,816,293	$	0	$	1,301,865,409

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

As of February 28, 2013, 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+	$	(352,608	)	$	0	$	0	$	(352,608	)

+ 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 28, 2013, 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 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 subadviser, 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 0.35% and declining to 0.25% as the average daily net assets of the Fund increase. Prior to January 1, 2013, the annual advisory started at 0.40% and declined to 0.30% as the average daily net assets of the Fund increased. For the six months ended February 28, 2013, the advisory fee was equivalent to an annual rate of 0.36% of the Fund’s average daily net assets.

Funds Management has retained the services of a subadviser to provide daily portfolio management to the Fund. The fee for subadvisory services is borne by Funds Management. WellsCap, an affiliate of Funds Management, is the subadviser 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.

32 Wells Fargo Advantage Ultra Short-Term Income Fund Notes to financial statements (unaudited)

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 December 31, 2013 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.70% for Class A shares, 1.45% for Class C shares, 0.55% for Administrator Class shares, 0.35% for Institutional Class, and 0.73% for Investor Class shares.

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 28, 2013, Wells Fargo Funds Distributor, LLC received $1,396 from the sale of Class A shares.

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.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding short-term securities, for the six months ended February 28, 2013 were as follows:

Purchases at cost		Sales proceeds
U.S. government	Non-U.S. government	U.S. government	Non-U.S. government
$81,016,971	$450,170,099	$32,784,199	$297,478,621

6. DERIVATIVE TRANSACTIONS

During the six months ended February 28, 2013, the Fund entered into futures contracts to speculate on interest rates and to help shorten or lengthen the duration of the portfolio.

At February 28, 2013, the Fund had short futures contracts outstanding as follows:

Expiration date	Contracts	Type	Contract value at February 28, 2013		Unrealized losses
6-28-2013	303 Short	5-Year U.S. Treasury Notes	$	37,567,266	$	(121,302	)
6-28-2013	2,111 Short	2-Year U.S. Treasury Notes		465,409,531		(231,306	)

Notes to financial statements (unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 33

The Fund had an average notional amount of $433,897,646 in short futures contracts during the year ended February 28, 2013.

On February 28, 2013, the cumulative unrealized losses on futures contracts in the amount of $352,608 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 losses and change in unrealized gains or losses on futures contracts are reflected in the Statement of Operations.

7. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds in the Trust) 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. For the six months ended February 28, 2013, the Fund paid $1,334 in commitment fees.

For the six months ended February 28, 2013, 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 PRONOUNCEMENT

In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2011-11, Disclosures about Offsetting Assets and Liabilities. ASU 2011-11, which amends FASB ASC Topic 210, Balance Sheet, creates new disclosure requirements which require entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently assessing the potential impact, in addition to expanded financial statement disclosure, that may result from adopting this ASU.

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

PORTFOLIO HOLDINGS INFORMATION

The complete portfolio holdings for the Fund are publicly available on the Fund’s website (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 website 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 website at sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at 233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Other information (unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 35

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers listed in the table below acts in identical capacities for the Wells Fargo Advantage family of funds, which consists of 135 funds¹ comprising the Wells Fargo Funds Trust, Wells Fargo Variable Trust, Wells Fargo Master Trust and four closed-end funds (collectively the “Fund Complex”). This table should be read in conjunction with the Prospectus and the Statement of Additional Information². 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	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. Advisory Board Member, Palm Coast Academy (charter school). Mr. Harris is a certified public accountant.	CIGNA Corporation; Deluxe Corporation; Asset Allocation Trust
Judith M. Johnson (Born 1949)	Trustee, since 2008; Audit Committee Chairman, 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 48 portfolios as of 1/31/2013); 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, Morgan Stanley Director of the Center for Leadership Development and Research 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
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

36 Wells Fargo Advantage Ultra Short-Term 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
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.	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 Tree Trust (non-profit corporation). Director of the American Chestnut Foundation (non-profit corporation).	Asset Allocation Trust

* Length of service dates reflect the Trustee’s commencement of service with the Trust’s predecessor entities, where applicable.

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.
Nancy Wiser1 (Born 1967)	Treasurer, since 2012	Executive Vice President of Wells Fargo Funds Management, LLC since 2011. Chief Operating Officer and Chief Compliance Officer at LightBox Capital Management LLC, from 2008 to 2011. Owned and operated a consulting business providing services to various hedge funds including acting as Chief Operating Officer and Chief Compliance Officer for a hedge fund from 2007 to 2008. Chief Operating Officer and Chief Compliance Officer of GMN Capital LLC from 2006 to 2007.
C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Officer, since 2003	Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001. Vice President and Managing Counsel of Wells Fargo Bank, N.A. since 1996.
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.
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 DePalma1 (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.

1. Nancy Wiser acts as Treasurer of 74 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 61 funds and Assistant Treasurer of 74 funds in the Fund Complex.

2. 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 website at wellsfargoadvantagefunds.com.

List of abbreviations Wells Fargo Advantage Ultra Short-Term Income Fund 37

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian 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

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

FDIC —  Federal Deposit Insurance Corporation

FFCB —  Federal Farm Credit Banks

FGIC —  Financial Guaranty Insurance Corporation

FHA —  Federal Housing Administration

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 depositary receipt

GNMA —  Government National Mortgage Association

GO —  General obligation

HCFR —  Healthcare facilities revenue

HEFA —  Health & Educational Facilities Authority

HEFAR —  Higher education facilities authority revenue

HFA —  Housing Finance Authority

HFFA —  Health Facilities Financing Authority

HKD —  Hong Kong dollar

HUD —  Department of Housing and Urban Development

HUF —  Hungarian forint

IDA —  Industrial Development Authority

IDAG —  Industrial Development Agency

IDR —  Industrial development revenue

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLP —  Limited liability partnership

LOC —  Letter of credit

LP —  Limited partnership

MBIA —  Municipal Bond Insurance Association

MFHR —  Multifamily housing revenue

MSTR —  Municipal securities trust receipts

MTN —  Medium-term note

MUD —  Municipal Utility District

MXN —  Mexican peso

MYR —  Malaysian ringgit

National —  National Public Finance Guarantee Corporation

NOK —  Norwegian krone

NZD —  New Zealand dollar

PCFA —  Pollution Control Financing Authority

PCL —  Public Company Limited

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

Radian —  Radian Asset Assurance

RAN —  Revenue anticipation notes

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

SPA —  Standby purchase agreement

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

TRY —  Turkish lira

TTFA —  Transportation Trust Fund Authority

TVA —  Tennessee Valley Authority

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, email, visit the Fund’s website, or call:

Wells Fargo Advantage Funds

P.O. Box 8266

Boston, MA 02266-8266

Email: wfaf@wellsfargo.com

Website: 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 current prospectus and, if available, a summary prospectus containing more complete information, including charges and expenses, call 1-800-222-8222 or visit the Fund’s website 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

© 2013 Wells Fargo Funds Management, LLC. All rights reserved.

215352 04-13 SA223/SAR223 2-13

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. PORTFOLIO OF INVESTMENTS

The Portfolio of investments is included as part of the report to shareholders filed under Item 1 of this Form.

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 1

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities: 94.56%
FDIC Series 2010-S1 Class 1A ±144A		0.75	%		2-25-2048	$	9,623,032	$	9,642,162
Federal Agricultural Mortgage Corporation Series 2000-A Class A ±		5.46			12-15-2039		884,241		883,242
FHLMC ±		2.06			1-1-2024		61,408		61,589
FHLMC ±		2.13			5-1-2028		598,212		636,138
FHLMC ±		2.14			6-1-2020		2,928		2,935
FHLMC ±		2.14			5-1-2020		1,881		1,890
FHLMC ±		2.14			1-1-2023		69,877		72,395
FHLMC ±		2.18			3-1-2025		155,172		159,838
FHLMC ±		2.19			5-1-2020		1,017		1,033
FHLMC ±		2.23			8-1-2033		3,810,087		4,056,562
FHLMC ±		2.24			3-1-2020		3,080		3,098
FHLMC ±		2.24			12-1-2017		15,917		15,987
FHLMC ±		2.25			12-1-2017		43,406		45,449
FHLMC ±		2.25			5-1-2018		1,218		1,273
FHLMC ±		2.25			6-1-2018		15,672		16,384
FHLMC ±		2.25			9-1-2018		2,898		3,048
FHLMC ±		2.25			5-1-2019		9,265		9,345
FHLMC ±		2.25			7-1-2030		31,539		33,107
FHLMC ±		2.26			7-1-2019		2,311		2,319
FHLMC ±		2.26			9-1-2016		7,284		7,375
FHLMC ±		2.26			11-1-2016		135,873		141,617
FHLMC ±		2.26			7-1-2018		3,530		3,602
FHLMC ±		2.26			1-1-2019		9,674		10,123
FHLMC ±		2.26			2-1-2019		16,692		17,468
FHLMC ±		2.26			2-1-2035		578,498		606,969
FHLMC ±		2.27			1-1-2030		50,813		54,292
FHLMC ±		2.29			1-1-2030		10,841		11,328
FHLMC ±		2.29			1-1-2030		19,431		20,430
FHLMC ±		2.29			7-1-2030		213,539		225,671
FHLMC ±		2.31			8-1-2034		2,607,013		2,761,447
FHLMC ±		2.31			7-1-2024		59,450		61,630
FHLMC ±		2.31			2-1-2035		2,481,967		2,635,535
FHLMC ±		2.32			4-1-2023		568,662		583,321
FHLMC ±		2.32			8-1-2036		6,792,852		7,264,399
FHLMC ±		2.33			6-1-2036		10,513,669		11,167,010
FHLMC ±		2.35			8-1-2033		787,935		835,905
FHLMC ±		2.35			7-1-2036		1,128,670		1,201,017
FHLMC ±		2.35			10-1-2033		70,431		72,939
FHLMC ±		2.35			5-1-2032		83,465		84,919
FHLMC ±		2.35			5-1-2034		5,414,812		5,771,491
FHLMC ±		2.36			9-1-2035		3,987,147		4,251,072
FHLMC ±		2.36			12-1-2034		1,263,230		1,345,532
FHLMC ±		2.36			3-1-2035		9,988,533		10,658,331
FHLMC ±		2.36			7-1-2036		7,922,161		8,455,614
FHLMC ±		2.37			2-1-2036		1,958,341		2,098,038
FHLMC ±		2.37			5-1-2036		2,824,760		3,009,743
FHLMC ±		2.37			1-1-2036		4,564,951		4,881,348
FHLMC ±		2.38			1-1-2029		10,973		11,235
FHLMC ±		2.38			12-1-2032		3,377,447		3,609,679
FHLMC ±		2.38			7-1-2035		6,410,873		6,832,600

2 Wells Fargo Advantage Adjustable Rate Government Fund Portfolio of investments—February 28, 2013 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC ±		2.38	%		1-1-2037	$	4,731,037	$	5,041,229
FHLMC ±		2.38			12-1-2032		5,811,739		6,192,465
FHLMC ±		2.38			8-1-2035		7,300,323		7,803,022
FHLMC ±		2.39			8-1-2027		12,258		12,501
FHLMC ±		2.39			4-1-2034		6,778,735		7,279,559
FHLMC ±		2.39			2-1-2036		2,073,623		2,203,888
FHLMC ±		2.39			8-1-2035		2,048,539		2,183,399
FHLMC ±		2.40			11-1-2029		216,234		230,986
FHLMC ±		2.40			10-1-2030		27,995		29,394
FHLMC ±		2.40			3-1-2027		350,655		374,976
FHLMC ±		2.40			9-1-2030		821,419		875,887
FHLMC ±		2.40			2-1-2035		9,153,053		9,769,404
FHLMC ±		2.40			11-1-2022		534,230		548,136
FHLMC ±		2.41			10-1-2035		7,529,057		8,081,503
FHLMC ±		2.41			12-1-2034		7,489,997		8,011,559
FHLMC ±		2.41			11-1-2029		516,867		551,361
FHLMC ±		2.41			4-1-2035		1,868,908		1,999,149
FHLMC ±		2.42			2-1-2036		3,466,344		3,703,572
FHLMC ±		2.42			11-1-2036		2,313,304		2,477,012
FHLMC ±		2.42			9-1-2033		701,805		746,114
FHLMC ±		2.42			4-1-2034		8,739,071		9,374,481
FHLMC ±		2.42			10-1-2036		2,266,934		2,414,408
FHLMC ±		2.43			9-1-2033		2,305,450		2,461,485
FHLMC ±		2.43			2-1-2035		4,334,542		4,619,884
FHLMC ±		2.43			7-1-2034		12,247,674		13,017,162
FHLMC ±		2.43			3-1-2037		8,264,100		8,845,193
FHLMC ±		2.43			5-1-2034		3,952,807		4,217,211
FHLMC ±		2.44			7-1-2031		442,308		473,220
FHLMC ±		2.44			10-1-2036		1,340,035		1,434,429
FHLMC ±		2.44			6-1-2035		3,171,406		3,399,181
FHLMC ±		2.44			10-1-2033		3,799,468		4,035,793
FHLMC ±		2.45			9-1-2032		4,263,151		4,560,872
FHLMC ±		2.45			10-1-2037		2,495,011		2,653,220
FHLMC ±		2.45			10-1-2033		1,011,681		1,076,675
FHLMC ±		2.45			2-1-2034		2,226,453		2,385,984
FHLMC ±		2.45			11-1-2027		1,208,856		1,293,175
FHLMC ±		2.46			2-1-2034		5,603,367		6,002,356
FHLMC ±		2.46			11-1-2030		2,016,047		2,087,041
FHLMC ±		2.47			6-1-2035		5,178,184		5,543,317
FHLMC ±		2.47			11-1-2035		3,294,145		3,524,866
FHLMC ±		2.48			1-1-2033		264,834		265,996
FHLMC ±		2.48			2-1-2036		2,964,233		3,178,826
FHLMC ±		2.48			7-1-2038		4,367,039		4,700,564
FHLMC ±		2.48			9-1-2030		17,158,787		18,289,227
FHLMC ±		2.49			1-1-2019		1,411		1,420
FHLMC ±		2.49			10-1-2033		3,834,343		4,096,037
FHLMC ±		2.50			1-1-2028		44,700		47,851
FHLMC ±		2.50			9-1-2033		1,814,011		1,943,027
FHLMC ±		2.50			5-1-2038		4,601,385		4,904,200
FHLMC ±		2.51			8-1-2018		4,655		4,918

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 3

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC ±		2.51	%		5-1-2025	$	121,116	$	129,558
FHLMC ±		2.52			1-1-2028		8,513		9,122
FHLMC ±		2.53			7-1-2029		117,292		124,943
FHLMC ±		2.53			3-1-2018		24,107		24,425
FHLMC ±		2.53			8-1-2018		330		330
FHLMC ±		2.54			7-1-2034		1,555,106		1,673,606
FHLMC ±		2.54			10-1-2030		4,012,640		4,305,444
FHLMC ±		2.54			6-1-2035		1,607,287		1,722,551
FHLMC ±		2.54			10-1-2029		153,264		163,948
FHLMC ±		2.55			6-1-2025		124,178		125,984
FHLMC ±		2.55			8-1-2029		189,984		193,140
FHLMC ±		2.55			6-1-2028		545,038		568,661
FHLMC ±		2.57			6-1-2020		149,735		159,452
FHLMC ±		2.57			10-1-2024		278,187		297,325
FHLMC ±		2.57			9-1-2031		260,719		266,056
FHLMC ±		2.58			4-1-2034		1,507,504		1,605,560
FHLMC ±		2.58			6-1-2024		38,538		41,067
FHLMC ±		2.58			4-1-2029		353,745		367,791
FHLMC ±		2.58			2-1-2035		3,453,159		3,698,141
FHLMC ±		2.59			7-1-2027		961,090		1,030,881
FHLMC ±		2.59			7-1-2037		1,575,507		1,684,738
FHLMC ±		2.60			7-1-2034		3,066,541		3,278,433
FHLMC ±		2.60			3-1-2036		2,056,982		2,193,556
FHLMC ±		2.60			10-1-2025		156,405		158,335
FHLMC ±		2.60			10-1-2025		49,872		50,099
FHLMC ±		2.60			2-1-2030		98,880		105,398
FHLMC ±		2.60			6-1-2030		175,304		178,302
FHLMC ±		2.60			6-1-2030		803,592		861,196
FHLMC ±		2.63			11-1-2018		20,349		20,514
FHLMC ±		2.64			6-1-2026		2,330,660		2,506,019
FHLMC ±		2.64			6-1-2030		155,129		166,043
FHLMC ±		2.65			1-1-2022		36,392		36,768
FHLMC ±		2.66			11-1-2029		364,476		372,457
FHLMC ±		2.67			8-1-2036		5,846,354		6,243,911
FHLMC ±		2.68			4-1-2020		48,334		51,764
FHLMC ±		2.69			7-1-2017		41,606		44,066
FHLMC ±		2.71			8-1-2030		9,045,308		9,678,007
FHLMC ±		2.72			5-1-2028		490,389		504,478
FHLMC ±		2.72			11-1-2026		418,751		430,776
FHLMC ±		2.73			6-1-2032		265,275		267,918
FHLMC ±		2.74			1-1-2035		966,196		1,024,948
FHLMC ±		2.74			12-1-2036		880,912		938,334
FHLMC ±		2.75			6-1-2033		3,707,362		3,969,774
FHLMC ±		2.76			5-1-2033		480,671		492,949
FHLMC ±		2.77			6-1-2035		3,603,610		3,843,608
FHLMC ±		2.77			9-1-2030		193,733		197,959
FHLMC ±		2.79			8-1-2035		403,500		412,168
FHLMC ±		2.82			10-1-2018		97,636		103,080
FHLMC ±		2.82			10-1-2035		4,427,834		4,731,614
FHLMC ±		2.83			4-1-2036		5,263,389		5,614,109

4 Wells Fargo Advantage Adjustable Rate Government Fund Portfolio of investments—February 28, 2013 (unaudited)

Security name	Interest rate			Maturity date			Principal		Value
Agency Securities (continued)
FHLMC ±		2.84	%		10-1-2036		$	1,877,373	$	2,001,187
FHLMC ±		2.84			3-1-2037			4,456,935		4,768,499
FHLMC ±		2.85			6-1-2019			190,075		191,693
FHLMC ±		2.85			11-1-2035			994,434		1,055,921
FHLMC ±		2.85			5-1-2023			100,340		100,538
FHLMC ±		2.86			10-1-2035			5,608,025		5,982,235
FHLMC ±		2.87			4-1-2035			4,826,561		5,121,903
FHLMC ±		2.87			9-1-2035			7,856,861		8,421,680
FHLMC ±		2.87			4-1-2035			839,494		888,354
FHLMC ±		2.91			2-1-2037			1,017,061		1,085,399
FHLMC ±		2.91			2-1-2036			10,557,330		11,265,955
FHLMC ±		2.93			5-1-2032			314,173		327,527
FHLMC ±		2.93			4-1-2035			1,992,064		2,130,687
FHLMC ±		2.93			11-1-2035			6,406,179		6,841,212
FHLMC ±		2.94			5-1-2035			878,201		932,019
FHLMC ±		2.96			4-1-2035			3,463,656		3,699,478
FHLMC ±		2.97			2-1-2036			8,426,840		9,019,423
FHLMC ±		2.98			11-1-2032			368,888		385,124
FHLMC ±		2.98			12-1-2018			43,175		43,386
FHLMC ±		2.99			6-1-2019			142,957		150,687
FHLMC ±		3.00			10-1-2019			37,716		37,697
FHLMC		3.00			3-15-2041			1,628,999		1,649,904
FHLMC ±		3.01			4-1-2037			2,236,909		2,391,256
FHLMC ±		3.02			6-1-2022			2,754		2,778
FHLMC ±		3.03			3-1-2025			5,162,211		5,470,131
FHLMC ±		3.03			2-1-2018			6,649		6,681
FHLMC ±		3.03			12-1-2018			37,726		37,770
FHLMC ±		3.03			3-1-2032			2,279,187		2,440,767
FHLMC ±		3.08			5-1-2039			3,519,397		3,762,589
FHLMC ±		3.08			6-1-2029			1,908,518		2,028,443
FHLMC ±		3.11			2-1-2024			38,897		38,954
FHLMC ±		3.12			2-1-2027			205,442		213,054
FHLMC ±		3.14			9-1-2016			81,234		81,571
FHLMC ±		3.21			12-1-2025			689,006		714,411
FHLMC ±		3.24			8-1-2029			269,806		275,334
FHLMC ±		3.27			4-1-2019			34,027		34,118
FHLMC ±		3.38			8-1-2019			24,984		25,070
FHLMC ±		3.43			1-1-2026			15,168		15,221
FHLMC ±		3.45			7-1-2028			107,647		108,952
FHLMC ±		3.53			6-1-2035			2,927,869		3,139,719
FHLMC ±		3.54			7-1-2018			148,814		150,345
FHLMC ±		3.60			6-1-2021			227,107		240,474
FHLMC ±		3.69			12-1-2025			1,118,674		1,201,134
FHLMC ±		3.77			2-1-2021			52,315		52,858
FHLMC ±		3.84			11-1-2026			211,344		220,419
FHLMC ±		3.92			1-1-2017	��		1,409		1,450
FHLMC ±		3.95			6-1-2033			1,009,806		1,079,753
FHLMC ±		4.01			4-1-2023			246,206		251,260
FHLMC ±		4.06			5-1-2031			263,082		267,717
FHLMC ±		4.38			8-1-2029			46,393		47,470

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 5

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC ±		4.47	%		10-1-2029	$	9,277	$	9,298
FHLMC ±		4.50			2-1-2029		292,821		297,254
FHLMC ±		4.71			4-1-2032		153,171		155,811
FHLMC ±		4.72			8-1-2027		87,097		87,401
FHLMC ±		5.50			8-1-2024		814,432		877,114
FHLMC		6.50			4-1-2018		137,906		152,900
FHLMC		7.00			9-1-2035		70,465		79,487
FHLMC		7.50			1-1-2016		32,847		34,840
FHLMC		7.50			6-1-2016		10,242		10,634
FHLMC		8.50			5-1-2020		171,813		189,884
FHLMC		8.50			9-1-2022		32,556		33,315
FHLMC Series 0020 Class F ±		1.15			7-1-2029		35,777		36,156
FHLMC Series 1671 Class QA ±		2.02			2-15-2024		590,190		612,045
FHLMC Series 1686 Class FE ±		2.17			2-15-2024		57,056		58,374
FHLMC Series 1730 Class FA ±		1.27			5-15-2024		456,084		468,279
FHLMC Series 2315 Class FW ±		0.75			4-15-2027		273,056		274,835
FHLMC Series 2391 Class EF ±		0.70			6-15-2031		252,894		253,877
FHLMC Series 2454 Class SL ±(c)		7.80			3-15-2032		602,411		118,256
FHLMC Series 2461 Class FI ±		0.70			4-15-2028		374,355		377,171
FHLMC Series 2464 Class FE ±		1.20			3-15-2032		392,636		401,782
FHLMC Series 2466 Class FV ±		0.75			3-15-2032		594,868		600,038
FHLMC Series T-48 Class 2A ±		3.39			7-25-2033		3,873,384		3,981,118
FHLMC Series T-54 Class 4A ±		3.09			2-25-2043		2,814,740		2,931,127
FHLMC Series T-55 Class 1A1		6.50			3-25-2043		129,995		148,450
FHLMC Series T-66 Class 2A1 ±		2.88			1-25-2036		5,078,878		5,290,042
FHLMC Series T-67 Class 1A1C ±		3.05			3-25-2036		18,504,924		19,332,279
FHLMC Series T-67 Class 2A1C ±		3.06			3-25-2036		10,303,443		10,819,069
FHLMC Series T-75 Class A1 ±		0.24			12-25-2036		3,979,860		3,954,401
FNMA ±		2.30			12-1-2034		2,897,495		3,079,181
FNMA ±		1.38			1-1-2021		6,128		6,315
FNMA ±		1.38			1-1-2021		7,695		7,785
FNMA ±		1.40			6-1-2021		109,125		111,590
FNMA ±		1.45			12-1-2020		63,436		63,670
FNMA ±		1.57			12-1-2030		237,485		245,716
FNMA ±		1.63			12-1-2016		1,633		1,638
FNMA ±		1.63			7-1-2017		1,982		1,992
FNMA ±		1.65			8-1-2032		288,228		288,099
FNMA ±		1.69			3-1-2015		16,659		17,132
FNMA ±		1.71			3-1-2034		861,454		886,769
FNMA ±		1.79			4-1-2033		1,121,669		1,185,866
FNMA ±		1.83			9-1-2032		69,678		70,140
FNMA ±		1.86			1-1-2032		479,953		486,816
FNMA ±		1.87			5-1-2018		10,094		10,114
FNMA ±		1.88			7-1-2020		19,291		19,461
FNMA ±		1.88			8-1-2032		177,707		185,744
FNMA ±		1.88			12-1-2031		30,340		30,612
FNMA ±		1.89			5-1-2029		464,924		493,485
FNMA ±		1.92			12-1-2022		18,417		18,500
FNMA ±		1.96			10-1-2017		13,582		13,791
FNMA ±		1.99			1-1-2032		39,412		39,667

6 Wells Fargo Advantage Adjustable Rate Government Fund Portfolio of investments—February 28, 2013 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA ±		2.00	%		8-1-2033	$	4,307	$	4,335
FNMA ±		2.00			1-1-2022		14,784		14,819
FNMA ±		2.01			8-1-2031		80,695		82,115
FNMA ±		2.01			7-1-2032		231,593		231,993
FNMA ±		2.02			6-1-2032		161,930		162,920
FNMA ±		2.06			2-1-2033		279,660		293,717
FNMA ±		2.07			10-1-2035		12,277,520		12,891,678
FNMA ±		2.07			6-1-2031		350,173		370,499
FNMA ±		2.07			1-1-2035		4,673,697		4,960,113
FNMA ±		2.08			8-1-2033		712,655		731,665
FNMA ±		2.09			12-1-2031		421,073		444,398
FNMA ±		2.10			12-1-2035		11,603,745		12,206,406
FNMA ±		2.12			1-1-2036		6,390,555		6,732,281
FNMA ±		2.12			12-1-2031		177,484		186,861
FNMA ±		2.13			10-1-2018		158,263		165,355
FNMA ±		2.13			8-1-2031		170,701		173,888
FNMA ±		2.14			9-1-2031		429,612		451,840
FNMA ±		2.15			7-1-2018		3,247		3,253
FNMA ±		2.15			2-1-2035		5,860,551		6,191,109
FNMA ±		2.16			6-1-2018		2,502		2,564
FNMA ±		2.17			8-1-2031		153,157		153,219
FNMA ±		2.17			4-1-2030		200,379		213,151
FNMA ±		2.19			11-1-2027		68,576		72,876
FNMA ±		2.19			6-1-2034		1,129,722		1,201,551
FNMA ±		2.20			7-1-2035		2,937,775		3,088,145
FNMA ±		2.21			11-1-2017		225,407		239,735
FNMA ±		2.21			8-1-2025		55,693		58,848
FNMA ±		2.23			9-1-2036		2,417,810		2,580,861
FNMA ±		2.24			12-1-2025		26,731		26,853
FNMA ±		2.24			8-1-2026		121,705		123,087
FNMA ±		2.25			3-1-2031		46,625		49,000
FNMA ±		2.25			7-1-2017		4,541		4,590
FNMA ±		2.25			1-1-2018		907,165		951,950
FNMA ±		2.25			2-1-2020		20,390		21,289
FNMA ±		2.25			3-1-2021		1,389		1,441
FNMA ±		2.25			10-1-2025		178,617		187,135
FNMA ±		2.25			1-1-2027		48,975		52,046
FNMA ±		2.25			3-1-2030		48,480		50,837
FNMA ±		2.25			4-1-2042		5,156,878		5,421,681
FNMA ±		2.25			10-1-2044		3,063,663		3,223,352
FNMA ±		2.25			5-1-2033		1,665,846		1,776,107
FNMA ±		2.25			1-1-2019		4,818		4,808
FNMA ±		2.26			4-1-2035		4,868,450		5,189,796
FNMA ±		2.26			7-1-2036		5,214,799		5,569,315
FNMA ±		2.26			8-1-2035		853,356		891,084
FNMA ±		2.26			7-1-2035		2,497,869		2,658,401
FNMA ±		2.26			7-1-2038		2,217,470		2,358,630
FNMA ±		2.26			9-1-2032		9,882,007		10,521,030
FNMA ±		2.26			10-1-2017		82,772		84,491
FNMA ±		2.26			1-1-2018		95,065		97,890

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA ±		2.26	%		11-1-2023	$	49,013	$	50,581
FNMA ±		2.26			1-1-2035		1,762,824		1,834,425
FNMA ±		2.27			4-1-2040		425,535		453,246
FNMA ±		2.28			3-1-2034		1,011,846		1,078,506
FNMA ±		2.28			12-1-2033		2,442,371		2,608,682
FNMA ±		2.28			6-1-2033		1,773,393		1,882,236
FNMA ±		2.28			11-1-2024		16,226		16,943
FNMA ±		2.28			4-1-2019		8,504		8,547
FNMA ±		2.29			4-1-2028		49,850		50,105
FNMA ±		2.29			7-1-2035		2,490,883		2,607,962
FNMA ±		2.30			4-1-2018		541,906		569,874
FNMA ±		2.30			4-1-2021		111,732		116,640
FNMA ±		2.30			8-1-2036		6,186,615		6,524,636
FNMA ±		2.30			10-1-2035		755,091		808,486
FNMA ±		2.30			12-1-2024		41,440		43,486
FNMA ±		2.30			10-1-2033		1,126,476		1,195,209
FNMA ±		2.30			7-1-2018		637,116		671,655
FNMA ±		2.30			1-1-2036		1,966,111		2,092,590
FNMA ±		2.31			4-1-2034		6,597,766		7,036,463
FNMA ±		2.31			12-1-2035		1,272,255		1,353,299
FNMA ±		2.31			12-1-2039		461,447		492,410
FNMA ±		2.31			10-1-2035		5,163,054		5,482,016
FNMA ±		2.32			6-1-2023		919		925
FNMA ±		2.32			3-1-2035		2,256,752		2,412,702
FNMA ±		2.32			2-1-2036		1,969,812		2,090,044
FNMA ±		2.33			5-1-2034		5,608,425		5,936,041
FNMA ±		2.33			12-1-2040		15,134,809		16,164,946
FNMA ±		2.33			7-1-2048		7,836,876		8,358,576
FNMA ±		2.34			6-1-2035		2,281,876		2,428,596
FNMA ±		2.34			7-1-2035		2,983,765		3,186,828
FNMA ±		2.34			4-1-2030		20,904		22,078
FNMA ±		2.34			9-1-2032		149,560		150,176
FNMA ±		2.34			2-1-2033		7,218		7,225
FNMA ±		2.34			4-1-2033		3,087,994		3,278,929
FNMA ±		2.34			7-1-2038		1,749,991		1,877,594
FNMA ±		2.34			4-1-2034		1,000,028		1,057,399
FNMA ±		2.35			8-1-2031		144,604		146,122
FNMA ±		2.35			1-11-2035		3,869,224		4,122,331
FNMA ±		2.35			12-1-2017		100,103		101,347
FNMA ±		2.35			7-1-2035		3,059,565		3,277,479
FNMA ±		2.35			5-1-2033		986,260		1,054,258
FNMA ±		2.35			2-1-2035		7,437,416		7,945,687
FNMA ±		2.35			1-1-2027		1,147,525		1,227,828
FNMA ±		2.35			6-1-2037		525,794		555,605
FNMA ±		2.36			7-1-2025		6,496		6,671
FNMA ±		2.36			5-1-2035		4,142,041		4,409,603
FNMA ±		2.36			7-1-2028		358		385
FNMA ±		2.36			10-1-2034		891,213		957,690
FNMA ±		2.37			12-1-2024		105,033		110,699
FNMA ±		2.37			9-1-2030		329,184		351,517

8 Wells Fargo Advantage Adjustable Rate Government Fund Portfolio of investments—February 28, 2013 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA ±		2.37	%		7-1-2035	$	9,069,605	$	9,662,613
FNMA ±		2.37			1-1-2038		9,489,360		10,125,155
FNMA ±		2.37			12-1-2040		5,055,550		5,381,130
FNMA ±		2.37			7-1-2038		5,020,652		5,364,896
FNMA ±		2.37			5-1-2042		9,922,660		10,579,639
FNMA ±		2.37			6-1-2027		127,318		135,901
FNMA ±		2.37			6-1-2034		7,252,310		7,721,871
FNMA ±		2.37			7-1-2038		9,678,858		10,401,970
FNMA ±		2.38			8-1-2017		1,584		1,586
FNMA ±		2.38			6-1-2025		10,623		10,677
FNMA ±		2.38			1-1-2038		1,090,303		1,136,771
FNMA ±		2.38			8-1-2026		1,272,665		1,355,998
FNMA ±		2.38			5-1-2035		1,316,175		1,383,490
FNMA ±		2.39			6-1-2034		1,927,630		2,051,950
FNMA ±		2.39			2-1-2034		5,309,513		5,670,162
FNMA ±		2.39			9-1-2034		2,280,145		2,423,934
FNMA ±		2.39			4-1-2033		1,439,079		1,527,604
FNMA ±		2.40			9-1-2039		11,236,053		12,067,723
FNMA ±		2.40			4-1-2024		87,823		93,907
FNMA ±		2.40			7-1-2024		18,218		19,119
FNMA ±		2.40			9-1-2026		126,841		129,750
FNMA ±		2.40			6-1-2027		3,820		4,029
FNMA ±		2.42			10-1-2033		109,078		114,047
FNMA ±		2.42			7-1-2048		10,242,763		10,940,997
FNMA ±		2.42			8-1-2035		1,838,138		1,917,426
FNMA ±		2.42			6-1-2035		3,568,193		3,804,323
FNMA ±		2.42			9-1-2037		1,551,783		1,661,513
FNMA ±		2.43			1-1-2035		521,517		557,077
FNMA ±		2.43			3-1-2035		7,796,399		8,337,181
FNMA ±		2.43			6-1-2026		107,067		114,756
FNMA ±		2.43			5-1-2018		205,606		207,023
FNMA ±		2.43			1-1-2034		4,612,033		4,890,744
FNMA ±		2.44			5-1-2035		3,549,935		3,800,021
FNMA ±		2.44			4-1-2024		32,559		34,199
FNMA ±		2.44			12-1-2042		2,696,086		2,866,485
FNMA ±		2.44			5-1-2025		94,663		101,221
FNMA ±		2.44			10-1-2036		2,009,976		2,133,207
FNMA ±		2.44			12-1-2040		8,531,308		9,130,795
FNMA ±		2.44			5-1-2034		1,957,700		2,095,365
FNMA ±		2.45			4-1-2028		400,720		429,410
FNMA ±		2.45			6-1-2032		57,256		57,317
FNMA ±		2.45			9-1-2028		125,652		127,910
FNMA ±		2.45			4-1-2036		7,870,698		8,447,282
FNMA ±		2.45			1-1-2028		11,481		12,168
FNMA ±		2.45			10-1-2029		277,422		283,466
FNMA ±		2.46			12-1-2028		89,890		95,928
FNMA ±		2.46			2-1-2033		524,970		561,315
FNMA ±		2.46			4-1-2018		8,010		8,266
FNMA ±		2.46			2-1-2032		2,694,687		2,830,922
FNMA ±		2.46			12-1-2034		1,945,747		2,069,008

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA ±		2.47	%		2-1-2035	$	2,534,062	$	2,709,007
FNMA ±		2.47			8-1-2017		661,600		676,275
FNMA ±		2.48			9-1-2033		73,574		73,882
FNMA ±		2.48			6-1-2027		106,327		114,058
FNMA ±		2.49			3-1-2033		3,203,203		3,424,036
FNMA ±		2.49			10-1-2024		66,818		71,214
FNMA ±		2.49			6-1-2030		237,899		254,761
FNMA ±		2.49			12-1-2021		163,372		167,799
FNMA ±		2.49			11-1-2034		4,127,602		4,431,989
FNMA ±		2.49			2-1-2036		14,068,519		15,008,834
FNMA ±		2.49			12-1-2030		1,342,365		1,438,931
FNMA ±		2.50			5-1-2017		81,566		83,378
FNMA ±		2.50			1-1-2019		177,896		184,234
FNMA ±		2.50			2-1-2019		2,621		2,639
FNMA ±		2.50			12-1-2030		91,282		92,457
FNMA ±		2.51			11-1-2024		215,635		230,332
FNMA ±		2.51			7-1-2027		517,489		555,513
FNMA ±		2.53			6-1-2024		66,378		69,771
FNMA ±		2.53			10-1-2024		462,775		495,282
FNMA ±		2.54			1-1-2032		191,850		205,355
FNMA ±		2.54			7-1-2027		130,585		140,406
FNMA ±		2.55			7-1-2017		197,274		202,036
FNMA ±		2.55			11-1-2020		1,355,440		1,414,073
FNMA ±		2.55			6-1-2032		49,143		49,735
FNMA ±		2.56			12-1-2023		13,856		13,918
FNMA ±		2.56			5-1-2036		8,008,530		8,570,459
FNMA ±		2.56			4-1-2018		876,059		900,786
FNMA ±		2.57			1-1-2036		695,460		720,036
FNMA ±		2.57			9-1-2019		12,560		12,663
FNMA ±		2.57			9-1-2022		791,414		851,323
FNMA ±		2.58			6-1-2035		4,622,254		4,916,349
FNMA ±		2.58			4-1-2033		1,116,163		1,193,191
FNMA ±		2.58			6-1-2032		383,396		385,699
FNMA ±		2.59			5-1-2027		111,396		119,312
FNMA ±		2.59			5-1-2036		1,086,479		1,154,165
FNMA ±		2.59			12-1-2033		3,514,632		3,727,932
FNMA ±		2.60			8-1-2040		1,733,914		1,854,241
FNMA ±		2.60			3-1-2035		5,988,252		6,453,532
FNMA ±		2.62			2-1-2018		12,256		12,557
FNMA ±		2.62			4-1-2032		47,471		50,220
FNMA ±		2.63			7-1-2017		7,896		8,168
FNMA ±		2.63			6-1-2019		1,302		1,303
FNMA ±		2.63			3-1-2027		213,280		214,058
FNMA ±		2.63			10-1-2029		643,038		690,018
FNMA ±		2.64			11-1-2024		102,130		104,169
FNMA ±		2.65			10-1-2024		58,593		58,828
FNMA ±		2.65			5-1-2036		6,675,334		7,187,436
FNMA ±		2.65			6-1-2040		1,386,145		1,461,143
FNMA ±		2.66			2-1-2036		8,200,385		8,777,438
FNMA ±		2.66			1-1-2040		945,284		1,005,542

10 Wells Fargo Advantage Adjustable Rate Government Fund Portfolio of investments—February 28, 2013 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA ±		2.66	%		5-1-2019	$	2,472	$	2,487
FNMA ±		2.66			9-1-2030		1,092,946		1,172,848
FNMA ±		2.66			5-1-2035		3,490,930		3,730,562
FNMA ±		2.67			1-1-2035		4,215,080		4,459,826
FNMA ±		2.67			11-1-2017		114,557		117,916
FNMA ±		2.68			5-1-2035		4,592,007		4,962,138
FNMA ±		2.68			3-1-2033		1,081,139		1,144,057
FNMA ±		2.68			6-1-2032		261,266		280,064
FNMA ±		2.69			2-1-2035		2,621,210		2,780,861
FNMA ±		2.69			7-1-2035		5,309,988		5,665,496
FNMA ±		2.69			10-1-2018		922,944		957,160
FNMA ±		2.69			7-1-2020		218,574		230,941
FNMA ±		2.70			3-1-2032		150,698		161,790
FNMA ±		2.71			6-1-2017		40,406		40,608
FNMA ±		2.71			11-1-2018		4,284		4,304
FNMA ±		2.72			4-1-2026		9,925		9,956
FNMA ±		2.72			2-1-2028		52,596		56,199
FNMA ±		2.73			9-1-2033		67,475		70,985
FNMA ±		2.73			4-1-2030		45,098		47,774
FNMA ±		2.74			5-1-2033		8,393,603		8,889,964
FNMA ±		2.74			9-1-2017		575,971		597,092
FNMA ±		2.74			10-1-2018		186,992		192,722
FNMA ±		2.75			5-1-2032		309,281		312,860
FNMA ±		2.75			5-1-2036		4,363,258		4,647,199
FNMA ±		2.75			6-1-2016		143,576		150,619
FNMA ±		2.75			7-1-2016		24,069		25,236
FNMA ±		2.75			5-1-2017		66,121		66,285
FNMA ±		2.75			12-1-2028		229,984		242,702
FNMA ±		2.76			5-1-2018		559,930		583,630
FNMA ±		2.77			4-1-2034		2,338,556		2,486,955
FNMA ±		2.77			1-1-2029		32,264		34,013
FNMA ±		2.78			6-1-2033		451,261		480,303
FNMA ±		2.78			11-1-2022		96,280		101,948
FNMA ±		2.79			9-1-2036		1,823,117		1,948,011
FNMA ±		2.79			9-1-2034		3,035,389		3,228,886
FNMA ±		2.79			7-1-2020		2,921,138		3,003,832
FNMA ±		2.79			7-1-2039		3,693,242		4,021,344
FNMA ±		2.79			8-1-2039		9,321,265		9,921,721
FNMA ±		2.80			7-1-2035		2,018,502		2,159,196
FNMA ±		2.81			1-1-2036		213,695		223,851
FNMA ±		2.81			11-1-2034		3,222,116		3,468,374
FNMA ±		2.81			8-1-2018		98,523		103,711
FNMA ±		2.81			10-1-2025		16,563		17,824
FNMA ±		2.81			11-1-2035		19,819,201		21,466,466
FNMA ±		2.83			3-1-2033		8,552		8,572
FNMA ±		2.83			9-1-2032		193,163		199,542
FNMA ±		2.84			12-1-2046		2,062,478		2,204,677
FNMA ±		2.85			4-1-2035		3,529,851		3,773,382
FNMA ±		2.85			12-1-2033		3,668,792		3,911,285
FNMA ±		2.85			1-1-2033		3,664,559		3,925,844

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA ±		2.87	%		4-1-2033	$	787,562	$	836,707
FNMA ±		2.89			7-1-2028		396,633		426,224
FNMA ±		2.89			10-1-2028		312,289		336,010
FNMA ±		2.89			5-1-2028		103,953		107,946
FNMA ±		2.89			9-1-2037		9,291,505		9,955,392
FNMA ±		2.90			1-1-2036		13,870,737		14,797,490
FNMA ±		2.91			4-1-2035		3,503,626		3,742,097
FNMA ±		2.91			8-1-2035		5,022,832		5,356,233
FNMA ±		2.91			7-1-2036		4,113,468		4,395,732
FNMA ±		2.91			7-1-2019		4,168		4,321
FNMA ±		2.93			7-1-2033		2,045,525		2,189,476
FNMA ±		2.93			1-1-2025		77,988		78,146
FNMA ±		2.94			9-1-2032		2,160,957		2,343,320
FNMA ±		2.95			10-1-2033		22,826,023		24,466,142
FNMA ±		2.98			9-1-2019		83,873		84,296
FNMA ±		2.98			4-1-2040		3,598,978		3,885,705
FNMA ±		2.98			10-1-2024		20,563		21,982
FNMA ±		2.98			1-1-2033		179,918		181,212
FNMA ±		2.98			9-1-2033		44,739		44,785
FNMA ±		2.99			10-1-2017		9,988		10,006
FNMA ±		3.00			8-1-2030		267,072		276,722
FNMA ±		3.00			6-1-2018		45,845		45,870
FNMA ±		3.02			3-1-2019		1,079,295		1,132,217
FNMA ±		3.03			10-1-2034		940,061		1,005,212
FNMA ±		3.03			5-1-2028		347,846		360,725
FNMA ±		3.05			8-1-2035		5,483,100		5,855,441
FNMA ±		3.08			3-1-2030		179,436		192,228
FNMA ±		3.09			8-1-2031		75,305		78,808
FNMA ±		3.09			9-1-2021		142,703		142,897
FNMA ±		3.10			1-1-2031		89,341		89,662
FNMA ±		3.12			9-1-2035		1,320,144		1,411,595
FNMA ±		3.12			1-1-2029		49,225		51,563
FNMA ±		3.12			11-1-2031		85,918		86,317
FNMA ±		3.13			11-1-2028		277,104		295,903
FNMA ±		3.14			2-1-2029		186,283		199,031
FNMA ±		3.14			8-1-2029		1,181,394		1,263,058
FNMA ±		3.15			11-1-2024		183,091		183,342
FNMA ±		3.19			5-1-2017		116,407		123,457
FNMA ±		3.20			4-1-2020		2,310,824		2,438,420
FNMA ±		3.22			7-1-2017		155,377		156,866
FNMA ±		3.23			4-1-2034		4,167,444		4,471,246
FNMA ±		3.25			9-1-2017		3,662		3,677
FNMA ±		3.28			7-1-2033		30,074		30,082
FNMA ±		3.30			7-1-2028		136,239		141,178
FNMA ±		3.42			4-1-2024		505,190		538,292
FNMA ±		3.44			11-1-2029		11,886		12,596
FNMA ±		3.45			1-1-2021		939,653		984,613
FNMA ±		3.49			2-1-2029		3,103,467		3,326,407
FNMA ±		3.54			9-1-2033		197,262		197,375
FNMA ±		3.54			5-1-2018		1,359		1,383

12 Wells Fargo Advantage Adjustable Rate Government Fund Portfolio of investments—February 28, 2013 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA ±		3.55	%		1-1-2033	$	75,351	$	75,521
FNMA ±		3.57			10-1-2034		721,264		746,386
FNMA ±		3.58			10-1-2017		576,120		588,464
FNMA ±		3.62			7-1-2021		296,024		300,213
FNMA ±		3.73			1-1-2017		2,173		2,187
FNMA ±		3.80			4-1-2019		728		727
FNMA ±		3.82			4-1-2018		31		31
FNMA ±		3.82			3-1-2030		25,871		26,509
FNMA ±		3.82			11-1-2031		48,732		48,826
FNMA ±		3.85			9-1-2033		64,312		64,339
FNMA ±		3.90			12-1-2050		230,986		231,563
FNMA ±		3.96			4-1-2034		2,302,637		2,452,617
FNMA ±		4.00			7-1-2017		63,204		67,224
FNMA ±		4.00			3-1-2023		9,535		9,583
FNMA ±		4.00			10-1-2025		16,043		17,093
FNMA ±		4.04			2-1-2033		105,176		105,728
FNMA ±		4.16			12-1-2032		184,549		196,334
FNMA ±		4.22			6-1-2034		620,418		656,369
FNMA ±		4.23			4-1-2032		270,513		272,886
FNMA ±		4.23			9-1-2017		4,628		4,653
FNMA ±		4.26			8-1-2017		41,862		43,430
FNMA ±		4.27			5-1-2034		787,629		844,636
FNMA ±		4.30			1-1-2018		1,236		1,236
FNMA ±		4.30			9-1-2028		12,974		13,498
FNMA ±		4.34			6-1-2024		50,674		51,118
FNMA ±		4.36			9-1-2031		368,416		374,742
FNMA ±		4.42			5-1-2017		2,256		2,266
FNMA ±		4.48			12-1-2036		220,690		233,321
FNMA ±		4.50			4-1-2020		21,084		21,201
FNMA ±		4.56			10-1-2018		84		87
FNMA ±		4.57			11-1-2031		169,992		170,070
FNMA		4.60			9-1-2016		478,955		505,100
FNMA ±		4.61			2-1-2019		562,773		600,455
FNMA ±		4.65			3-1-2014		106		106
FNMA ±		4.86			1-1-2023		16,803		17,994
FNMA ±		4.87			1-1-2019		868,455		927,730
FNMA ±		4.89			6-1-2019		7,140		7,236
FNMA ±		5.03			4-1-2018		369,167		394,323
FNMA ±		5.07			6-1-2028		124,391		134,800
FNMA ±		5.16			6-1-2028		64,177		64,215
FNMA ±		5.20			9-1-2023		9,123		9,157
FNMA ±		5.25			10-1-2021		19,984		20,021
FNMA ±		5.35			11-1-2014		2,541		2,557
FNMA		5.50			9-1-2019		361,403		387,831
FNMA ±		5.55			1-1-2019		175,756		190,184
FNMA ±		5.56			11-1-2019		473		472
FNMA ±		5.85			3-1-2014		10,091		10,740
FNMA ±		5.88			5-1-2025		1,354		1,362
FNMA ±		5.96			9-1-2017		810		834
FNMA ±		6.00			2-1-2017		4,781		4,806

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA ±		6.00	%		1-1-2020	$	23,571	$	24,274
FNMA ±		6.45			2-1-2034		87,146		87,548
FNMA		6.50			8-1-2028		310,895		347,375
FNMA		6.50			5-1-2031		245,191		277,469
FNMA ±		6.72			3-1-2023		6,983		6,993
FNMA		7.00			11-1-2014		4,693		4,853
FNMA		7.00			11-1-2017		38,321		41,932
FNMA		7.06			11-1-2024		56,745		64,240
FNMA		7.06			12-1-2024		37,664		42,638
FNMA		7.06			1-1-2025		35,417		40,095
FNMA		7.06			3-1-2025		71,514		80,960
FNMA		7.06			3-1-2025		13,698		15,507
FNMA		7.06			4-1-2025		25,476		29,014
FNMA		7.06			1-1-2027		65,657		77,472
FNMA		7.50			2-1-2016		250,300		266,307
FNMA		7.50			1-1-2031		258,370		311,902
FNMA		7.50			1-1-2033		408,639		491,484
FNMA		7.50			5-1-2033		369,735		446,842
FNMA		7.50			5-1-2033		299,230		358,045
FNMA		7.50			6-1-2033		262,608		316,623
FNMA		7.50			7-1-2033		299,763		366,283
FNMA		7.50			8-1-2033		269,748		328,915
FNMA ±		7.75			1-1-2026		321		323
FNMA		8.00			12-1-2026		168,495		204,538
FNMA		8.00			2-1-2030		795		915
FNMA		8.00			3-1-2030		461		555
FNMA		8.00			2-1-2031		13,013		13,394
FNMA		8.00			7-1-2031		51,010		52,563
FNMA		8.00			5-1-2033		343,419		420,056
FNMA		8.50			10-1-2026		20,947		25,194
FNMA		8.50			2-1-2027		72,251		79,395
FNMA		8.50			6-1-2030		125,906		145,280
FNMA		8.51			8-1-2024		115,223		123,964
FNMA		9.00			5-1-2021		745		747
FNMA		9.00			7-1-2030		19,008		19,083
FNMA ±		9.10			10-1-2024		1,271		1,273
FNMA		9.50			8-1-2021		63,352		71,728
FNMA		9.50			12-1-2024		38,409		39,514
FNMA		10.00			1-1-2021		37,149		38,844
FNMA		10.50			4-1-2019		4,826		4,848
FNMA		11.00			1-1-2018		11,626		13,284
FNMA		12.50			7-1-2015		788		792
FNMA Series 1989-74 Class J		9.80			10-25-2019		47,464		54,828
FNMA Series 1989-96 Class H		9.00			12-25-2019		17,551		19,845
FNMA Series 1992-39 Class FA ±		1.38			3-25-2022		334,049		345,195
FNMA Series 1992-45 Class F ±		1.38			4-25-2022		61,560		61,083
FNMA Series 1992-87 Class Z		8.00			5-25-2022		43,856		50,339
FNMA Series 1993-113 Class FA ±		1.36			7-25-2023		253,622		260,084
FNMA Series 1994-14 Class F ±		2.67			10-25-2023		548,270		566,128
FNMA Series 1998-T2 Class A5 ±		2.42			1-25-2032		1,372,671		1,407,250

14 Wells Fargo Advantage Adjustable Rate Government Fund Portfolio of investments—February 28, 2013 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA Series 2001-50 Class BA		7.00	%		10-25-2041	$	380,658	$	403,921
FNMA Series 2001-63 Class FD ±		0.80			12-18-2031		318,221		320,977
FNMA Series 2001-81 Class F ±		0.75			1-25-2032		216,472		218,645
FNMA Series 2001-T08 Class A1		7.50			7-25-2041		263,680		287,985
FNMA Series 2001-T10 Class A2		7.50			12-25-2041		6,288,723		7,661,142
FNMA Series 2001-T12 Class A2		7.50			8-25-2041		488,175		571,528
FNMA Series 2001-T12 Class A4 ±		3.36			8-25-2041		10,123,005		10,767,283
FNMA Series 2001-W03 Class A ±		7.00			9-25-2041		1,362,582		1,610,031
FNMA Series 2002-05 Class FD ±		1.10			2-25-2032		538,863		547,854
FNMA Series 2002-66 Class A3 ±		3.10			4-25-2042		14,364,266		15,407,471
FNMA Series 2002-T12 Class A3		7.50			5-25-2042		1,737,379		2,096,674
FNMA Series 2002-T12 Class A5 ±		3.40			10-25-2041		3,426,523		3,514,900
FNMA Series 2002-T19 Class A4 ±		3.33			3-25-2042		213,782		224,378
FNMA Series 2002-W1 Class 3A ±		3.19			4-25-2042		2,284,925		2,338,708
FNMA Series 2002-W4 Class A6 ±		3.32			5-25-2042		3,697,985		3,963,289
FNMA Series 2003-07 Class A2 ±		2.44			5-25-2042		1,667,985		1,754,488
FNMA Series 2003-63 Class A8 ±		2.61			1-25-2043		2,596,072		2,790,975
FNMA Series 2003-W02 Class 1A3		7.50			7-25-2042		590,333		729,854
FNMA Series 2003-W04 Class 5A ±		3.17			10-25-2042		2,190,178		2,312,558
FNMA Series 2003-W08 Class 4A ±		3.15			11-25-2042		2,763,198		2,908,166
FNMA Series 2003-W10 Class 2A ±		3.21			6-25-2043		5,325,474		5,652,799
FNMA Series 2003-W18 Class 2A ±		3.36			6-25-2043		19,091,938		20,316,763
FNMA Series 2004-T3 Class 1A3		7.00			2-25-2044		1,024,427		1,218,032
FNMA Series 2004-T3 Class 2A ±		3.14			8-25-2043		2,519,315		2,670,363
FNMA Series 2004-W02 Class 5A		7.50			3-25-2044		419,504		514,328
FNMA Series 2004-W1 Class 2A2		7.00			12-25-2033		491,081		585,539
FNMA Series 2004-W1 Class 3A ±		3.31			1-25-2043		162,170		173,071
FNMA Series 2004-W12 Class 2A ±		3.42			6-25-2044		9,788,844		10,486,876
FNMA Series 2004-W15 Class 3A ±		2.78			6-25-2044		13,359,964		14,284,379
FNMA Series 2005-W3 Class 3A ±		2.75			4-25-2045		2,486,288		2,567,378
FNMA Series 2006-W1 Class 3A ±		2.20			10-25-2045		14,129,564		14,965,822
FNMA Series 2009-95 Class AY		4.00			6-25-2023		81,459		82,646
FNMA Series G92-20 Class FB ±		1.38			4-25-2022		246,241		245,029
FNMA Series G93-1 Class K		6.68			1-25-2023		1,006,056		1,139,078
FNMA Series G93-19 Class FD ±		1.36			4-25-2023		913,166		938,977
GNMA ±		1.63			2-20-2017		15,866		16,317
GNMA ±		1.63			3-20-2017		22,821		23,767
GNMA ±		1.63			9-20-2017		30,331		31,486
GNMA ±		1.63			12-20-2021		12,770		13,319
GNMA ±		1.63			1-20-2022		154,335		160,733
GNMA ±		1.63			2-20-2022		52,917		54,797
GNMA ±		1.63			2-20-2022		132,297		137,781
GNMA ±		1.63			2-20-2022		7,946		8,275
GNMA ±		1.63			3-20-2022		150,337		156,569
GNMA ±		1.63			3-20-2022		264,601		275,569
GNMA ±		1.63			10-20-2022		46,254		48,243
GNMA ±		1.63			10-20-2022		162,202		169,175
GNMA ±		1.63			11-20-2022		100,991		105,333
GNMA ±		1.63			11-20-2022		127,127		132,593
GNMA ±		1.63			12-20-2022		37,693		39,314

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 15

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
GNMA ±		1.63	%		12-20-2022	$	491,853	$	512,999
GNMA ±		1.63			12-20-2022		9,810		10,232
GNMA ±		1.63			1-20-2023		1,125,285		1,171,930
GNMA ±		1.63			1-20-2023		79,728		83,033
GNMA ±		1.63			2-20-2023		97,452		101,495
GNMA ±		1.63			2-20-2023		57,721		60,114
GNMA ±		1.63			2-20-2023		102,465		106,712
GNMA ±		1.63			3-20-2023		110,829		115,423
GNMA ±		1.63			10-20-2023		1,104,033		1,151,505
GNMA ±		1.63			11-20-2023		809,460		844,262
GNMA ±		1.63			11-20-2023		828,936		864,575
GNMA ±		1.63			12-20-2023		140,438		146,476
GNMA ±		1.63			12-20-2023		1,061,890		1,107,545
GNMA ±		1.63			12-20-2023		36,261		37,820
GNMA ±		1.63			11-20-2024		124,247		129,589
GNMA ±		1.63			10-20-2025		736,076		767,723
GNMA ±		1.63			1-20-2026		800,099		833,265
GNMA ±		1.63			2-20-2026		639,774		666,294
GNMA ±		1.63			10-20-2026		135,994		141,841
GNMA ±		1.63			1-20-2027		327,086		340,645
GNMA ±		1.63			1-20-2027		10,812		11,224
GNMA ±		1.63			10-20-2027		9,007		9,395
GNMA ±		1.63			1-20-2028		9,455		9,847
GNMA ±		1.63			12-20-2029		272,956		284,691
GNMA ±		1.63			1-20-2030		149,719		155,925
GNMA ±		1.63			10-20-2030		206,406		215,281
GNMA ±		1.63			11-20-2031		11,400		11,834
GNMA ±		1.63			11-20-2032		614,501		640,921
GNMA ±		1.63			2-20-2033		4,624		4,815
GNMA ±		1.63			3-20-2033		53,941		56,177
GNMA ±		1.75			5-20-2017		46,860		49,166
GNMA ±		1.75			5-20-2017		21,424		22,478
GNMA ±		1.75			6-20-2017		5,770		6,054
GNMA ±		1.75			9-20-2017		2,956		3,090
GNMA ±		1.75			6-20-2021		75,681		79,404
GNMA ±		1.75			8-20-2021		28,485		29,776
GNMA ±		1.75			8-20-2021		62,845		65,696
GNMA ±		1.75			4-20-2022		415,808		436,266
GNMA ±		1.75			4-20-2022		410,857		431,072
GNMA ±		1.75			5-20-2022		37,083		38,908
GNMA ±		1.75			5-20-2022		387,441		406,504
GNMA ±		1.75			5-20-2022		109,284		114,661
GNMA ±		1.75			6-20-2022		32,159		33,741
GNMA ±		1.75			7-20-2022		15,601		16,309
GNMA ±		1.75			9-20-2022		128,576		134,410
GNMA ±		1.75			9-20-2022		61,798		64,601
GNMA ±		1.75			9-20-2022		13,198		13,797
GNMA ±		1.75			4-20-2023		17,590		18,455
GNMA ±		1.75			4-20-2023		42,352		44,436
GNMA ±		1.75			5-20-2023		14,747		15,472

16 Wells Fargo Advantage Adjustable Rate Government Fund Portfolio of investments—February 28, 2013 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
GNMA ±		1.75	%		5-20-2023	$	38,868	$	40,780
GNMA ±		1.75			6-20-2023		389,106		408,251
GNMA ±		1.75			6-20-2023		174,042		182,605
GNMA ±		1.75			7-20-2023		6,543		6,840
GNMA ±		1.75			9-20-2023		112,813		117,931
GNMA ±		1.75			9-20-2023		436,767		456,583
GNMA ±		1.75			9-20-2023		528,003		551,958
GNMA ±		1.75			4-20-2024		56,730		59,521
GNMA ±		1.75			4-20-2024		310,094		325,351
GNMA ±		1.75			5-20-2024		260,532		273,351
GNMA ±		1.75			5-20-2024		23,932		25,110
GNMA ±		1.75			6-20-2024		28,462		29,862
GNMA ±		1.75			6-20-2024		40,730		42,734
GNMA ±		1.75			6-20-2024		151,382		158,831
GNMA ±		1.75			7-20-2024		104,109		108,832
GNMA ±		1.75			7-20-2024		777,932		813,225
GNMA ±		1.75			8-20-2024		51,516		53,853
GNMA ±		1.75			4-20-2025		173,143		181,662
GNMA ±		1.75			9-20-2025		215,386		225,158
GNMA ±		1.75			5-20-2027		30,828		32,345
GNMA ±		1.75			8-20-2027		23,616		24,688
GNMA ±		1.75			9-20-2027		4,732		4,947
GNMA ±		1.75			4-20-2032		93,468		98,067
GNMA ±		1.75			5-20-2032		245,704		257,793
GNMA ±		1.75			6-20-2032		556,587		583,973
GNMA ±		2.00			1-20-2017		12,396		12,870
GNMA ±		2.00			2-20-2017		71,234		73,956
GNMA ±		2.00			3-20-2017		12,211		12,677
GNMA ±		2.00			9-20-2017		4,593		4,783
GNMA ±		2.00			7-20-2018		596		620
GNMA ±		2.00			8-20-2018		8,897		9,263
GNMA ±		2.00			1-20-2021		25,697		26,679
GNMA ±		2.00			2-20-2021		62,649		65,043
GNMA ±		2.00			8-20-2021		14,546		15,145
GNMA ±		2.00			10-20-2021		311,475		324,049
GNMA ±		2.00			11-20-2021		37,592		39,109
GNMA ±		2.00			2-20-2022		5,603		5,817
GNMA ±		2.00			3-20-2022		48,135		49,974
GNMA ±		2.00			5-20-2022		24,363		25,440
GNMA ±		2.00			7-20-2022		8,044		8,375
GNMA ±		2.00			12-20-2022		79,833		83,056
GNMA ±		2.00			2-20-2023		11,846		12,299
GNMA ±		2.00			10-20-2024		1,396,380		1,452,750
GNMA ±		2.00			11-20-2024		663,472		690,256
GNMA ±		2.00			7-20-2025		8,964		9,333
GNMA ±		2.00			9-20-2026		134,580		140,125
GNMA ±		2.00			11-20-2026		12,815		13,332
GNMA ±		2.00			2-20-2027		8,097		8,406
GNMA ±		2.00			7-20-2027		3,199		3,330
GNMA ±		2.00			8-20-2027		4,952		5,156

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 17

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
GNMA ±		2.00	%		11-20-2027	$	7,471	$	7,772
GNMA ±		2.10			8-20-2062		9,621,297		10,304,111
GNMA ±		2.12			9-20-2062		3,377,116		3,625,952
GNMA ±		2.13			1-20-2022		5,533		5,747
GNMA ±		2.25			7-20-2022		6,060		6,313
GNMA ±		2.25			7-20-2022		7,272		7,575
GNMA ±		2.50			7-20-2016		14,143		14,778
GNMA ±		2.50			8-20-2017		22,128		23,121
GNMA ±		2.50			10-20-2017		8,862		9,289
GNMA ±		2.50			11-20-2017		24,996		26,201
GNMA ±		2.50			12-20-2017		20,397		21,380
GNMA ±		2.50			7-20-2018		52,158		54,498
GNMA ±		2.50			8-20-2018		29,055		30,359
GNMA ±		2.50			3-20-2019		3,440		3,590
GNMA ±		2.50			11-20-2020		20,468		21,454
GNMA ±		2.50			12-20-2020		14,291		14,979
GNMA ±		2.50			5-20-2021		13,416		14,017
GNMA ±		2.50			12-20-2021		38,300		40,151
GNMA ±		2.50			7-20-2022		11,319		11,827
GNMA ±		2.50			7-20-2024		382,569		399,734
GNMA ±		2.50			8-20-2024		68,054		71,108
GNMA ±		2.50			10-20-2024		659,693		691,492
GNMA ±		2.50			12-20-2024		456,163		478,151
GNMA ±		2.50			4-20-2025		6,877		7,186
GNMA ±		2.75			10-20-2017		53,378		55,702
GNMA ±		3.00			2-20-2016		10,612		11,116
GNMA ±		3.00			3-20-2016		22,789		23,871
GNMA ±		3.00			4-20-2016		18,224		19,041
GNMA ±		3.00			5-20-2016		1,782		1,862
GNMA ±		3.00			7-20-2017		12,328		12,848
GNMA ±		3.00			8-20-2017		113,171		118,532
GNMA ±		3.00			8-20-2017		11,031		11,490
GNMA ±		3.00			9-20-2017		128,448		134,533
GNMA ±		3.00			11-20-2017		24,756		25,966
GNMA ±		3.00			12-20-2017		148,582		155,843
GNMA ±		3.00			1-20-2018		46,822		49,046
GNMA ±		3.00			6-20-2018		9,398		9,820
GNMA ±		3.00			11-20-2018		4,794		5,000
GNMA ±		3.00			12-20-2018		1,593		1,661
GNMA ±		3.00			1-20-2019		3,734		3,912
GNMA ±		3.00			2-20-2019		8,750		9,165
GNMA ±		3.00			3-20-2019		14,000		14,665
GNMA ±		3.00			5-20-2019		20,720		21,649
GNMA ±		3.00			6-20-2019		46,102		48,171
GNMA ±		3.00			8-20-2019		15,410		16,059
GNMA ±		3.00			6-20-2020		11,239		11,743
GNMA ±		3.00			1-20-2021		317		332
GNMA ±		3.00			2-20-2021		429		449
GNMA ±		3.50			9-20-2017		20,531		21,521
GNMA ±		3.50			10-20-2017		330		346

18 Wells Fargo Advantage Adjustable Rate Government Fund Portfolio of investments—February 28, 2013 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
GNMA ±		3.50	%		11-20-2017	$	57,892	$	60,731
GNMA ±		3.50			2-20-2018		36,483		38,246
GNMA ±		3.50			3-20-2018		4,617		4,840
GNMA ±		3.50			4-20-2018		7,224		7,584
GNMA ±		3.50			5-20-2018		2,757		2,895
GNMA ±		3.50			9-20-2018		5,822		6,103
GNMA ±		3.50			2-20-2019		32,490		34,060
GNMA ±		3.50			9-20-2019		58,685		61,514
GNMA ±		3.50			1-20-2020		14,059		14,699
GNMA ±		4.00			1-20-2016		172,987		181,873
GNMA ±		4.00			3-20-2016		29,129		30,625
GNMA ±		4.00			4-20-2016		4,257		4,452
GNMA ±		4.00			5-20-2016		662		692
GNMA ±		4.00			11-20-2017		23,786		25,052
GNMA ±		4.00			4-20-2018		13,170		13,772
GNMA ±		4.00			11-20-2018		86,207		90,794
GNMA ±		4.00			1-20-2019		108,926		110,723
GNMA ±		4.00			5-20-2019		5,239		5,479
GNMA ±		4.50			12-20-2017		3,456		3,661
GNMA ±		5.00			8-20-2015		3,799		4,039
GNMA ±		5.00			9-20-2015		6,243		6,638
GNMA ±		5.00			10-20-2015		6,408		6,814
GNMA		6.45			4-20-2025		85,738		97,426
GNMA		6.45			5-20-2025		43,239		47,188
GNMA		6.45			9-20-2025		53,008		62,100
GNMA		6.50			6-20-2034		140,590		159,436
GNMA		6.50			6-20-2034		86,860		98,503
GNMA		6.50			8-20-2034		1,449,073		1,643,316
GNMA		6.50			8-20-2034		91,229		103,721
GNMA		6.50			8-20-2034		116,785		132,440
GNMA		6.50			8-20-2034		126,306		143,602
GNMA		6.75			2-15-2029		140,658		166,781
GNMA		7.00			7-20-2034		69,810		81,595
GNMA		7.25			7-15-2017		20,740		22,760
GNMA		7.25			8-15-2017		45,362		50,135
GNMA		7.25			8-15-2017		23,386		25,776
GNMA		7.25			9-15-2017		34,342		38,091
GNMA		7.25			10-15-2017		63,667		70,339
GNMA		7.25			10-15-2017		36,076		39,786
GNMA		7.25			11-15-2017		28,750		31,605
GNMA		7.25			1-15-2018		10,527		11,640
GNMA		7.25			1-15-2018		25,432		28,336
GNMA		7.25			2-15-2018		25,916		28,737
GNMA		7.25			5-15-2018		13,543		14,829
GNMA		9.00			5-15-2016		8,232		8,269
GNMA		9.00			7-15-2016		1,107		1,112
GNMA		9.00			8-15-2016		11,454		11,504
GNMA		9.00			11-15-2016		6,723		6,753
GNMA		9.00			11-15-2016		4,791		5,260
GNMA		9.00			12-15-2016		265		266

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 19

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
GNMA		9.00	%		2-15-2017	$	7,391	$	8,197
GNMA		9.00			5-15-2017		1,380		1,386
GNMA		9.00			7-15-2017		10,553		10,665
GNMA		9.00			3-15-2020		4,806		5,031
GNMA		9.00			8-15-2021		813		817
GNMA		9.00			7-20-2024		1,112		1,148
GNMA		9.00			8-20-2024		503		586
GNMA		9.00			9-20-2024		2,743		3,378
GNMA		9.00			10-20-2024		12,929		14,826
GNMA		9.00			11-20-2024		658		727
GNMA		9.00			1-20-2025		9,228		11,435
GNMA		9.00			2-20-2025		28,810		35,245
GNMA Series 2011-H12 Class FA ±		0.70			2-20-2061		3,609,318		3,624,799
GNMA Series 2011-H17 Class FA ±		0.74			6-20-2061		2,037,230		2,049,042
SBA ±		4.01			9-25-2037		13,082,880		15,355,888
Total Agency Securities (Cost $1,333,936,801)									1,363,705,521
	Yield					Shares
Short-Term Investments: 5.75%
Investment Companies: 5.74%
Wells Fargo Advantage Government Money Market Fund, Institutional Class (l)(u)		0.01					82,744,393		82,744,393
	Interest rate					Principal
U.S. Treasury Securities: 0.01%
U.S. Treasury Bill #(z)		0.06			3-21-2013	$	200,000		199,993
Total Short-Term Investments (Cost $82,944,386)									82,944,386

Total investments in securities
(Cost $1,416,881,187) *	100.31	%		1,446,649,907
Other assets and liabilities, net	(0.31	)		(4,509,789	)
Total net assets	100.00	%	$	1,442,140,118

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

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.

(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.

(z) Zero coupon security. Rate represents yield to maturity at time of purchase.

* Cost for federal income tax purposes is $1,417,851,315 and unrealized appreciation (depreciation) consists of:

Gross unrealized appreciation	$	31,001,805
Gross unrealized depreciation		(2,203,213	)
Net unrealized appreciation	$	28,798,592

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Government Securities Fund 1

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities: 62.78%
FDIC Series 2010-S1 Class 1A ±144A		0.75	%		2-25-2048	$	14,434,548	$	14,463,244
FHLB		5.63			3-14-2036		6,150,000		8,334,929
FHLMC ±		0.65			2-15-2033		165,607		165,671
FHLMC ±		2.26			10-1-2026		314,190		334,599
FHLMC ±		2.38			6-1-2032		125,913		133,354
FHLMC ±		2.50			7-1-2029		331,672		351,184
FHLMC ±		3.03			9-1-2031		10,319		10,494
FHLMC ±		3.03			9-1-2031		258,156		260,856
FHLMC ±		3.21			7-1-2032		2,382,143		2,440,887
FHLMC %%		3.50			3-1-2043		92,285,000		97,158,809
FHLMC ±		3.75			5-1-2026		99,441		105,448
FHLMC %%		4.00			3-1-2043		29,010,000		30,814,059
FHLMC ±		4.08			1-1-2038		1,098,993		1,190,227
FHLMC		4.50			3-1-2042		1,748,353		1,879,782
FHLMC		5.00			5-1-2018		563,215		602,112
FHLMC		5.00			4-1-2019		541,113		583,557
FHLMC		5.00			4-1-2019		440,466		475,015
FHLMC		5.00			6-1-2019		628,133		677,402
FHLMC		5.00			8-1-2019		2,588,287		2,779,173
FHLMC		5.00			10-1-2019		775,620		836,458
FHLMC		5.00			2-1-2020		2,367,873		2,553,603
FHLMC		5.00			8-1-2040		5,161,301		5,602,316
FHLMC		5.50			11-1-2023		427,385		467,185
FHLMC		5.50			7-1-2035		15,396,051		16,858,332
FHLMC		5.50			12-1-2038		11,945,639		12,964,485
FHLMC		6.00			10-1-2032		120,991		135,243
FHLMC		6.00			5-25-2043		8,276,456		9,341,454
FHLMC ±		6.38			1-1-2026		88,071		88,703
FHLMC		6.50			4-1-2018		54,997		57,931
FHLMC		6.50			4-1-2021		131,584		135,802
FHLMC		6.50			4-1-2022		211,185		234,146
FHLMC		6.50			4-1-2026		1,881		2,192
FHLMC		6.50			9-1-2028		67,156		78,823
FHLMC		6.50			9-1-2028		25,088		29,446
FHLMC		6.50			7-1-2031		10		12
FHLMC		6.50			8-1-2037		1,069,858		1,178,659
FHLMC		6.50			10-1-2037		139,720		153,929
FHLMC		7.00			11-17-2013		3,344		3,343
FHLMC		7.00			10-1-2014		260,207		269,531
FHLMC		7.00			12-1-2023		9,403		10,954
FHLMC		7.00			5-1-2024		12,665		14,753
FHLMC		7.00			12-1-2026		2,581		3,058
FHLMC		7.00			12-1-2026		4,645		5,503
FHLMC		7.00			12-1-2026		142		169
FHLMC		7.00			12-1-2026		404		479
FHLMC		7.00			12-1-2026		1,292		1,530
FHLMC		7.00			4-1-2029		5,199		6,211
FHLMC		7.00			4-1-2029		2,140		2,545
FHLMC		7.00			5-1-2029		44,385		52,802
FHLMC		7.00			4-1-2032		331,749		388,666

2 Wells Fargo Advantage Government Securities Fund Portfolio of investments—February 28, 2013 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC		7.50	%		11-1-2031	$	387,683	$	475,823
FHLMC		7.50			4-1-2032		340,493		391,922
FHLMC		8.00			2-1-2017		12,064		13,221
FHLMC		8.00			8-1-2023		50,992		59,267
FHLMC		8.00			6-1-2024		13,756		16,399
FHLMC		8.00			6-1-2024		4,358		4,523
FHLMC		8.00			6-1-2024		14,674		17,490
FHLMC		8.00			8-1-2026		36,105		43,911
FHLMC		8.00			11-1-2026		37,526		45,700
FHLMC		8.00			11-1-2028		28,415		34,130
FHLMC		8.50			7-1-2022		6,159		7,371
FHLMC		8.50			12-1-2025		31,624		38,686
FHLMC		8.50			5-1-2026		4,219		5,138
FHLMC		8.50			8-1-2026		8,294		8,788
FHLMC		8.50			8-1-2026		30,882		31,184
FHLMC		9.00			6-1-2016		7,784		8,383
FHLMC		9.00			1-1-2017		14,674		14,949
FHLMC		9.00			4-1-2017		20,976		23,084
FHLMC		9.00			11-1-2018		77,327		84,908
FHLMC		9.00			8-1-2019		680		758
FHLMC		9.00			8-1-2019		110		112
FHLMC		9.00			8-1-2019		292		301
FHLMC		9.00			12-1-2019		304		352
FHLMC		9.00			1-1-2020		85		93
FHLMC		9.00			2-1-2020		200		236
FHLMC		9.00			2-1-2020		4,345		4,361
FHLMC		9.00			3-1-2020		2,462		2,537
FHLMC		9.00			3-1-2020		337		354
FHLMC		9.00			9-1-2020		948		1,006
FHLMC		9.00			9-1-2020		378		441
FHLMC		9.00			12-1-2020		78		81
FHLMC		9.00			2-1-2021		154		155
FHLMC		9.00			3-1-2021		7,536		8,772
FHLMC		9.00			4-1-2021		7,690		8,487
FHLMC		9.00			4-1-2021		457		544
FHLMC		9.00			4-1-2021		109,406		121,887
FHLMC		9.00			6-1-2021		1,200		1,237
FHLMC		9.00			7-1-2021		5,910		5,937
FHLMC		9.00			7-1-2021		4,859		5,076
FHLMC		9.00			8-1-2021		994		1,183
FHLMC		9.00			4-1-2022		3,665		3,680
FHLMC		9.00			7-1-2022		1,151		1,339
FHLMC		9.00			9-1-2024		1,945		2,324
FHLMC		9.00			10-1-2024		732		735
FHLMC		9.50			9-1-2016		63		69
FHLMC		9.50			10-1-2016		431		478
FHLMC		9.50			8-1-2018		45		45
FHLMC		9.50			8-1-2019		272		316
FHLMC		9.50			2-1-2020		13		15
FHLMC		9.50			6-1-2020		113		135

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Government Securities Fund 3

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC		9.50	%		8-1-2020	$	721	$	848
FHLMC		9.50			9-1-2020		94		112
FHLMC		9.50			9-1-2020		25		25
FHLMC		9.50			9-1-2020		12,437		14,035
FHLMC		9.50			10-1-2020		95		114
FHLMC		9.50			10-1-2020		55		63
FHLMC		9.50			11-1-2020		116		138
FHLMC		9.50			5-1-2021		320		387
FHLMC		9.50			9-17-2022		1,096,238		1,267,973
FHLMC		9.50			4-1-2025		116,737		142,887
FHLMC		10.00			8-1-2017		32		36
FHLMC		10.00			1-1-2019		22		26
FHLMC		10.00			8-1-2019		35		37
FHLMC		10.00			12-1-2019		354		425
FHLMC		10.00			3-1-2020		37		44
FHLMC		10.00			6-1-2020		57		67
FHLMC		10.00			7-1-2020		61		67
FHLMC		10.00			8-1-2020		65		77
FHLMC		10.00			10-1-2021		112,536		131,381
FHLMC		10.00			8-17-2022		497,932		539,478
FHLMC		10.00			2-17-2025		987,218		1,086,065
FHLMC		10.50			2-1-2019		36		36
FHLMC		10.50			5-1-2019		154		157
FHLMC		10.50			6-1-2019		23		27
FHLMC		10.50			8-1-2019		28,293		33,326
FHLMC		10.50			12-1-2019		39,901		42,946
FHLMC		10.50			5-1-2020		7,201		7,511
FHLMC		10.50			5-1-2020		76,103		90,747
FHLMC		10.50			8-1-2020		39,862		42,329
FHLMC		10.50			8-1-2020		17,891		17,993
FHLMC Series 16 Class D		10.00			10-15-2019		25,355		28,119
FHLMC Series 1671 Class 1671-TA ±		0.75			2-15-2024		17,331		17,334
FHLMC Series 2882 Class TF ±		0.45			10-15-2034		4,664,792		4,664,400
FHLMC Series 3221 Class VA		5.00			9-15-2017		6,280,916		6,685,024
FHLMC Series 3706 Class C		2.00			8-15-2020		8,961,223		9,194,233
FHLMC Series 3767 Class PD		4.00			7-15-2040		1,010,725		1,056,653
FHLMC Series K020 Class X1 ±(c)		1.48			5-25-2022		48,960,634		5,230,024
FHLMC Series R008 Class FK ±		0.60			7-15-2023		788,358		788,825
FHLMC Series T-57 Class 1A1		6.50			7-25-2043		2,052,636		2,349,408
FHLMC Series T-57 Class 2A1 ±		3.34			7-25-2043		4,105,904		4,260,885
FHLMC Series T-67 Class 1A1C ±		3.05			3-25-2036		2,459,105		2,569,052
FHLMC Series T-67 Class 2A1C ±		3.06			3-25-2036		3,995,153		4,195,086
FHLMC Series T-75 Class A1 ±		0.24			12-25-2036		8,444,954		8,390,932
FHLMC Structured Pass-Through Securities Series T-15 Class A6 ±		0.65			11-25-2028		297,840		285,808
FHLMC Structured Pass-Through Securities Series T-23 Class A ±		0.48			5-25-2030		1,245,122		1,184,756
FHLMC Structured Pass-Through Securities Series T-35 Class A ±		0.48			9-25-2031		544,712		503,647
FHLMC Structured Pass-Through Securities Series T-42 Class A6		9.50			2-25-2042		1,523,238		1,864,458
FHLMC Structured Pass-Through Securities Series T-55 Class 2A1 ±		2.76			3-25-2043		775,201		786,841
FHMLC ±		0.64			11-15-2033		8,686,040		8,699,590
FNMA		1.75			5-30-2019		19,000,000		19,607,107

4 Wells Fargo Advantage Government Securities Fund Portfolio of investments—February 28, 2013 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA ±		2.31	%		9-1-2031	$	118,613	$	126,141
FNMA ±		2.37			11-1-2031		246,328		262,228
FNMA		2.38			1-13-2022		10,415,000		10,822,008
FNMA ±		2.40			9-1-2031		519,740		552,551
FNMA ±		2.41			12-1-2034		2,209,279		2,352,409
FNMA ±		2.42			6-1-2032		242,047		248,268
FNMA ±		2.42			6-1-2034		1,029,084		1,087,221
FNMA ±		2.45			12-1-2040		99,870		106,676
FNMA ±		2.47			5-1-2036		4,705,181		4,910,064
FNMA		2.50			4-25-2039		582,543		606,043
FNMA ±		2.51			12-1-2035		2,781,210		2,945,296
FNMA ±		2.55			10-1-2027		352,111		378,708
FNMA ±		2.59			5-1-2036		2,873,408		3,045,815
FNMA ±		2.81			4-1-2032		220,011		232,501
FNMA ±		2.86			9-1-2036		2,154,655		2,301,880
FNMA ±		2.87			8-1-2036		3,456,227		3,684,176
FNMA ±		2.91			9-1-2027		1,004,395		1,060,253
FNMA		3.00			5-1-2027		1,481,526		1,562,084
FNMA %%		3.00			3-1-2028		2,810,000		2,957,525
FNMA %%		3.00			3-1-2043		56,720,000		58,722,925
FNMA ±		3.17			7-1-2026		661,782		713,206
FNMA ±		3.17			2-1-2027		1,590,296		1,647,356
FNMA ±		3.22			5-1-2036		2,215,319		2,337,705
FNMA ±		3.36			4-1-2033		141,412		150,722
FNMA ±		3.42			1-1-2033		103,683		103,564
FNMA		3.50			2-1-2026		6,855,839		7,272,546
FNMA %%		3.50			3-1-2028		9,465,000		10,032,900
FNMA %%		3.50			3-1-2043		39,660,000		41,940,450
FNMA		3.69			6-1-2017		14,137,615		15,560,567
FNMA		4.00			5-1-2021		2,552,176		2,744,386
FNMA %%		4.00			3-1-2043		58,655,000		62,522,564
FNMA %%		4.00			3-1-2028		16,645,000		17,812,750
FNMA		4.15			7-1-2014		10,466,504		10,809,663
FNMA ±		4.24			7-1-2033		170,867		171,732
FNMA ±		4.30			9-1-2028		766,891		797,873
FNMA		4.50			8-1-2018		2,614,723		2,819,407
FNMA		4.50			12-1-2018		1,964,655		2,118,450
FNMA %%		4.50			3-1-2043		71,092,000		76,523,870
FNMA %%		4.50			3-1-2028		14,130,000		15,198,581
FNMA		4.62			7-1-2013		3,958,220		3,947,144
FNMA		4.68			2-1-2020		3,348,296		3,882,990
FNMA		4.79			5-1-2019		2,226,435		2,567,791
FNMA		5.00			4-1-2014		1,090,514		1,099,552
FNMA		5.00			12-1-2018		1,532,609		1,660,785
FNMA		5.00			6-1-2019		1,593,447		1,726,711
FNMA		5.00			6-1-2023		4,035,602		4,363,652
FNMA		5.00			3-1-2034		2,347,484		2,556,504
FNMA		5.00			8-1-2040		10,737,730		11,841,225
FNMA		5.00			8-1-2040		60,898,322		65,927,541
FNMA		5.03			5-1-2015		6,422,431		6,920,447

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Government Securities Fund 5

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA		5.12	%		1-1-2017	$	11,700,000	$	13,083,797
FNMA		5.22			10-1-2015		3,320,808		3,601,459
FNMA		5.38			5-1-2017		735,735		822,623
FNMA		5.39			1-1-2024		2,928,342		3,414,850
FNMA		5.50			6-1-2016		402,974		431,478
FNMA		5.50			1-1-2025		509,601		557,058
FNMA		5.50			1-1-2025		1,936,679		2,117,032
FNMA		5.50			9-1-2033		6,675,232		7,342,606
FNMA		5.50			9-1-2033		3,623,071		3,985,297
FNMA		5.50			6-1-2034		14,705,979		16,208,418
FNMA		5.50			8-1-2035		3,669,674		4,021,652
FNMA		5.50			1-1-2037		3,547,769		3,888,054
FNMA		5.55			5-1-2016		3,144,579		3,516,478
FNMA		5.55			9-1-2019		3,604,735		3,807,656
FNMA		5.61			2-1-2021		3,200,269		3,677,218
FNMA		5.63			2-1-2018		1,106,568		1,277,232
FNMA		5.67			3-1-2016		6,260,302		6,945,688
FNMA		5.67			11-1-2021		5,655,749		6,536,835
FNMA		5.70			3-1-2016		958,312		1,063,577
FNMA		5.75			5-1-2021		3,609,156		4,293,323
FNMA		5.79			10-1-2017		1,098,169		1,266,808
FNMA		5.95			6-1-2024		1,823,827		2,192,118
FNMA		6.00			12-1-2013		17,583		17,790
FNMA		6.00			5-1-2016		414,014		417,781
FNMA		6.00			3-1-2024		216,341		238,207
FNMA		6.00			2-1-2035		2,893,384		3,243,690
FNMA		6.00			11-1-2037		3,435,980		3,774,669
FNMA %%		6.00			3-1-2043		21,385,000		23,436,623
FNMA		6.08			1-1-2019		1,369,399		1,438,680
FNMA		6.50			6-1-2017		296,148		316,164
FNMA		6.50			1-1-2024		98,192		112,637
FNMA		6.50			3-1-2028		55,793		62,526
FNMA		6.50			12-1-2029		791,170		924,769
FNMA		6.50			11-1-2031		193,011		224,734
FNMA		6.50			7-1-2036		1,887,717		2,110,750
FNMA		6.50			7-1-2036		1,458,981		1,632,966
FNMA		6.50			9-1-2037		458,357		505,615
FNMA		6.50			7-25-2042		2,925,480		3,359,642
FNMA		6.65			5-1-2016		1,460,187		1,639,532
FNMA		7.00			11-1-2026		21,885		25,638
FNMA		7.00			9-1-2031		6,714		8,011
FNMA		7.00			1-1-2032		7,212		8,606
FNMA		7.00			2-1-2032		255,357		304,690
FNMA		7.00			2-1-2032		33,050		39,459
FNMA		7.00			10-1-2032		527,785		629,112
FNMA		7.00			2-1-2034		5,881		6,990
FNMA		7.00			4-1-2034		483,795		577,494
FNMA		7.00			12-1-2034		71,983		85,551
FNMA		7.00			6-1-2035		10,276		12,190
FNMA		7.00			1-1-2036		39,958		47,403

6 Wells Fargo Advantage Government Securities Fund Portfolio of investments—February 28, 2013 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA		7.00	%		9-1-2036	$	590,062	$	700,854
FNMA		7.48			1-1-2025		966,624		974,198
FNMA		7.50			7-1-2015		10,682		10,813
FNMA		7.50			9-1-2031		179,290		219,461
FNMA		7.50			11-25-2031		1,198,058		1,369,816
FNMA		7.50			2-1-2032		69,481		85,173
FNMA		7.50			10-1-2037		4,440,087		5,199,330
FNMA		8.00			8-1-2020		11,029		11,063
FNMA		8.00			5-1-2027		66,851		70,646
FNMA		8.00			10-1-2027		15,493		15,542
FNMA		8.00			6-1-2028		11,590		13,953
FNMA		8.00			1-1-2030		19,830		19,892
FNMA		8.00			2-1-2030		252,449		310,056
FNMA		8.00			9-1-2040		2,416,672		2,935,169
FNMA		8.50			12-1-2014		467		468
FNMA		8.50			5-1-2017		7,808		8,627
FNMA		8.50			5-1-2017		364,727		405,089
FNMA		8.50			8-1-2024		45,674		55,613
FNMA		8.50			5-1-2026		300,658		365,084
FNMA		8.50			7-1-2026		35,833		38,769
FNMA		8.50			8-1-2026		18,163		18,759
FNMA		8.50			9-1-2026		720		845
FNMA		8.50			10-1-2026		39,224		40,286
FNMA		8.50			10-1-2026		408		434
FNMA		8.50			10-1-2026		10,840		10,879
FNMA		8.50			11-1-2026		78,745		87,683
FNMA		8.50			11-1-2026		12,976		14,311
FNMA		8.50			11-1-2026		6,800		6,825
FNMA		8.50			12-1-2026		25,817		31,793
FNMA		8.50			12-1-2026		359		363
FNMA		8.50			12-1-2026		341,664		419,217
FNMA		8.50			2-1-2027		731		903
FNMA		8.50			2-1-2027		9,763		9,907
FNMA		8.50			3-1-2027		1,587		1,964
FNMA		8.50			3-1-2027		3,179		3,213
FNMA		8.50			6-1-2027		685,995		843,231
FNMA		8.50			7-1-2029		1,009		1,024
FNMA		9.00			3-1-2021		72,852		83,509
FNMA		9.00			6-1-2021		297		352
FNMA		9.00			7-1-2021		126,007		142,544
FNMA		9.00			8-1-2021		426		509
FNMA		9.00			10-1-2021		70,431		79,118
FNMA		9.00			1-1-2025		3,164		3,258
FNMA		9.00			1-1-2025		31,916		39,304
FNMA		9.00			2-1-2025		11,877		11,925
FNMA		9.00			3-1-2025		1,624		1,709
FNMA		9.00			3-1-2025		4,415		4,706
FNMA		9.00			3-1-2025		16,660		16,724
FNMA		9.00			3-1-2025		1,770		1,781
FNMA		9.00			4-1-2025		4,514		4,569

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Government Securities Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA		9.00	%		7-1-2028	$	62,921	$	75,701
FNMA		9.50			11-1-2020		318		382
FNMA		9.50			12-15-2020		119,725		129,852
FNMA		9.50			1-1-2021		36,305		38,350
FNMA		9.50			6-1-2022		7,875		9,276
FNMA		9.50			7-1-2028		98,933		122,544
FNMA		10.00			12-1-2020		153,896		179,532
FNMA		11.00			2-1-2019		19,593		19,701
FNMA		11.00			10-15-2020		18,138		19,285
FNMA		11.25			2-1-2016		4,591		4,616
FNMA		12.00			7-15-2014		27,931		28,067
FNMA Grantor Trust Series 2000-T6 Class A2		9.50			6-25-2030		1,551,326		1,808,102
FNMA Grantor Trust Series 2001-T10 Class A3		9.50			12-25-2041		2,634,518		3,130,566
FNMA Grantor Trust Series 2001-T12 Class A3		9.50			8-25-2041		703,422		844,799
FNMA Grantor Trust Series 2001-T8 Class A3 ±		3.73			7-25-2041		1,728,401		1,745,911
FNMA Grantor Trust Series 2002-T19 Class A1		6.50			7-25-2042		7,674,856		8,976,611
FNMA Grantor Trust Series 2002-T5 Class A1 ±		0.44			5-25-2032		499,209		490,465
FNMA Grantor Trust Series 2003-T2 Class A1 ±		0.48			3-25-2033		410,829		396,077
FNMA Grantor Trust Series 2004-T1 Class 1A2		6.50			1-25-2044		1,282,178		1,529,161
FNMA Series 1988-2 Class Z		10.10			2-25-2018		37,019		40,029
FNMA Series 1988-7 Class Z		9.25			4-25-2018		41,126		45,439
FNMA Series 1989-10 Class Z		9.50			3-25-2019		274,393		313,713
FNMA Series 1989-100 Class Z		8.75			12-25-2019		223,017		250,958
FNMA Series 1989-12 Class Y		10.00			3-25-2019		454,013		520,861
FNMA Series 1989-22 Class G		10.00			5-25-2019		290,052		334,801
FNMA Series 1989-63 Class Z		9.40			10-25-2019		46,711		51,900
FNMA Series 1989-98 Class E		9.20			12-25-2019		93,938		105,514
FNMA Series 1990-144 Class W		9.50			12-25-2020		165,265		191,535
FNMA Series 1990-75 Class Z		9.50			7-25-2020		181,712		210,948
FNMA Series 1990-84 Class Y		9.00			7-25-2020		47,511		54,249
FNMA Series 1990-96 Class Z		9.67			8-25-2020		251,278		292,387
FNMA Series 1991-5 Class Z		8.75			1-25-2021		89,568		101,896
FNMA Series 1991-85 Class Z		8.00			6-25-2021		241,825		265,183
FNMA Series 1992-45 Class Z		8.00			4-25-2022		225,321		265,637
FNMA Series 2001-T4 Class A1		7.50			7-25-2041		1,350,803		1,609,787
FNMA Series 2002-T12 Class A5 ±		3.40			10-25-2041		1,932,428		1,982,269
FNMA Series 2003-90 Class FL ±		0.65			3-25-2031		1,274,507		1,275,118
FNMA Series 2003-W1 Class 1A1 ±		6.14			12-25-2042		1,142,221		1,328,003
FNMA Series 2003-W19 Class 1A6		5.29			11-25-2033		1,451,547		1,485,378
FNMA Series 2004-79 Class FA ±		0.49			8-25-2032		2,318,776		2,318,180
FNMA Series 2004-W1 Class 2A2		7.00			12-25-2033		2,621,950		3,126,280
FNMA Series 2004-W15 Class 1A3		7.00			8-25-2044		2,441,126		2,844,241
FNMA Series 2004-W4 Class A9		5.50			6-25-2034		1,515,160		1,517,951
FNMA Series 2005-71 Class DB		4.50			8-25-2025		3,272,609		3,564,689
FNMA Series 2007-2 Class FA ±		0.40			2-25-2037		1,078,734		1,074,812
FNMA Series 2007-W10 Class 2A ±		6.25			8-25-2047		1,539,923		1,792,939
FNMA Series 2009-108 Class DE		4.50			8-25-2027		661,558		676,178
FNMA Series G-8 Class E		9.00			4-25-2021		231,552		264,666
FNMA Series G92-30 Class Z		7.00			6-25-2022		461,905		510,029
FNMA Series G93-39 Class ZQ		6.50			12-25-2023		4,153,437		4,688,059

8 Wells Fargo Advantage Government Securities Fund Portfolio of investments—February 28, 2013 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA STRIPS Series 161 Class 2		8.50	%		7-25-2022	$	96,012	$	20,588
FNMA STRIPS Series 265 Class 2		9.00			3-1-2024		263,532		309,710
FNMA Whole Loan Series 1999-W6 Class A ±		9.59			9-25-2028		56,227		59,963
FNMA Whole Loan Series 2002-W4 Class A4		6.25			5-25-2042		1,283,289		1,459,052
FNMA Whole Loan Series 2003-W06 Class PT4 ±		9.18			10-25-2042		3,204,962		3,722,342
FNMA Whole Loan Series 2003-W11 Class A1 ±		3.26			6-25-2033		229,663		228,652
FNMA Whole Loan Series 2003-W3 Class 1A4 ±		3.39			8-25-2042		4,546,365		4,897,499
FNMA Whole Loan Series 2003-W5 Class A ±		0.42			4-25-2033		574,049		564,666
FNMA Whole Loan Series 2003-W6 Class 6A ±		3.06			8-25-2042		3,356,791		3,575,596
FNMA Whole Loan Series 2003-W8 Class PT1 ±		8.69			12-25-2042		1,441,912		1,692,266
FNMA Whole Loan Series 2003-W9 Class A ±		0.44			6-25-2033		184,481		175,691
GNMA ±		3.00			8-20-2020		273,811		286,782
GNMA ±		3.00			11-20-2020		184,692		193,718
GNMA		4.00			6-20-2042		25,333,604		27,343,327
GNMA		4.00			9-20-2042		597,270		644,651
GNMA %%		4.50			3-1-2043		57,530,000		62,626,801
GNMA		5.00			7-20-2040		12,932,149		14,381,805
GNMA		6.00			8-20-2034		716,131		809,348
GNMA		6.50			12-15-2025		48,035		55,725
GNMA		6.50			4-15-2029		1,105		1,301
GNMA		6.50			5-15-2029		4,359		5,053
GNMA		6.50			5-15-2031		3,249		3,813
GNMA		6.50			7-15-2032		2,096		2,418
GNMA		6.50			9-20-2033		136,685		156,631
GNMA		7.00			12-15-2022		76,249		88,184
GNMA		7.00			5-15-2026		6,754		8,002
GNMA		7.00			3-15-2028		79,781		95,303
GNMA		7.00			1-15-2031		506		602
GNMA		7.00			4-15-2031		10,704		12,744
GNMA		7.00			4-15-2031		1,382		1,646
GNMA		7.00			8-15-2031		23,342		27,790
GNMA		7.00			3-15-2032		17,341		20,604
GNMA		7.00			5-15-2032		3,771		3,777
GNMA		7.34			10-20-2021		72,677		84,081
GNMA		7.34			12-20-2021		25,961		30,034
GNMA		7.34			2-20-2022		24,382		28,456
GNMA		7.34			4-20-2022		30,808		35,956
GNMA		7.34			9-20-2022		86,383		100,817
GNMA		8.00			4-15-2023		2,653		2,663
GNMA		8.00			6-15-2023		7,690		9,161
GNMA		8.00			12-15-2023		767,819		913,818
GNMA		8.00			2-15-2024		1,647		1,969
GNMA		8.00			9-15-2024		5,480		5,801
GNMA		8.00			6-15-2025		194		205
GNMA		8.00			6-15-2025		20,561		20,641
GNMA		8.35			4-15-2020		595,877		643,809
GNMA		8.40			5-15-2020		277,412		300,219
GNMA		8.50			7-15-2016		1,093		1,098
GNMA		9.00			12-15-2016		5,680		5,705
GNMA		9.00			3-15-2020		6,567		6,597

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Government Securities Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
GNMA		9.00	%		4-15-2021	$	3,446	$	3,536
GNMA		9.50			10-20-2019		137,953		148,589
GNMA		10.00			12-15-2018		9,421		9,471
GNMA		12.50			4-15-2019		26,883		28,282
GNMA		13.00			11-15-2014		895		959
GNMA Series 2002-53 Class IO ±(c)		0.00			4-16-2042		26,098,268		3,628
GNMA Series 2003-110 Class FT ±		1.45			12-16-2030		1,309,268		1,315,433
GNMA Series 2005-23 Class IO ±(c)		1.70			6-17-2045		66,594,958		750,192
GNMA Series 2006-32 Class C ±		5.51			11-16-2038		12,510,000		13,991,109
GNMA Series 2006-32 Class XM ±(c)		0.18			11-16-2045		39,410,646		326,202
GNMA Series 2006-68 Class D ±		5.31			12-16-2037		12,520,000		13,899,654
GNMA Series 2007-35 Class NF ±		0.30			10-16-2035		15,924,441		15,935,286
GNMA Series 2007-44 Class FP ±		0.37			3-20-2036		12,441,851		12,453,198
GNMA Series 2007-69 Class D ±		5.25			6-16-2041		1,000,000		1,123,001
GNMA Series 2008-22 Class XM ±(c)		0.60			2-16-2050		122,279,516		4,360,854
GNMA Series 2009-29 Class CN		4.50			2-20-2032		1,039,686		1,046,164
SBA (i)(a)(c)		1.44			2-15-2018		438,704		5,686
SBA Series 1992- 6 Class A (a)(c)(i)		1.51			10-15-2017		1,393,668		17,153
TVA		5.38			4-1-2056		3,670,000		4,770,593
Total Agency Securities (Cost $1,156,233,000)									1,179,709,067
Municipal Obligations: 0.46%
Arkansas: 0.01%
Arkansas Development Finance Authority (Housing Revenue, GNMA Insured)		9.75			11-15-2014		100,179		104,287
Texas: 0.45%
Retama TX Development Corporation (Miscellaneous Revenue)		10.00			12-15-2020		5,405,000		8,423,422
Total Municipal Obligations (Cost $7,124,755)									8,527,709
Non-Agency Mortgage Backed Securities: 5.03%
Bear Stearns Commercial Mortgage Securities Incorporated Series 2005-PWR-7 Class A3 ±		5.12			2-11-2041		6,450,000		6,907,737
Citigroup Commercial Mortgage Trust Series 2006-C4 Class A3 ±		5.74			3-15-2049		10,188,000		11,494,346
Citigroup Commercial Mortgage Trust Series 2006-C5 Class A4		5.43			10-15-2049		11,280,000		12,739,553
Commercial Mortgage Trust Pass-Through Certificates Series 2004-LB4A Class A4		4.58			10-15-2037		3,247,424		3,256,003
GE Capital Commercial Mortgage Corporation Series 2005-C3 Class A7A ±		4.97			7-10-2045		9,360,000		10,178,523
Lehman Brothers UBS Commercial Mortgage Trust Series 2006-C1 Class A4		5.16			2-15-2031		13,165,000		14,518,717
Morgan Stanley Capital I Series 2004-HQ4 Class A7		4.97			4-14-2040		7,640,000		7,980,484
Morgan Stanley Capital I Series 2006-HQ8 Class A4 ±		5.42			3-12-2044		1,995,000		2,204,423
Morgan Stanley Dean Witter Capital I Series 2004-T15 Class A3		5.03			6-13-2041		2,233,777		2,246,803
National Credit Union Administration Board Guaranteed Notes Series 2010-C1 Class A2		2.90			10-29-2020		1,310,000		1,403,306
National Credit Union Administration Board Guaranteed Notes Series 2010-C1 Class APT		2.65			10-29-2020		9,125,508		9,671,888
National Credit Union Administration Board Guaranteed Notes Series 2011-R4 Class 1A ±		0.58			3-6-2020		4,454,576		4,464,332
National Credit Union Administration Board Guaranteed Notes Series 2011-R6 Class 1A ±		0.58			5-7-2020		6,055,427		6,066,544

10 Wells Fargo Advantage Government Securities Fund Portfolio of investments—February 28, 2013 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage Backed Securities (continued)
Vendee Mortgage Trust Series 1995-1 Class 4 ±		8.78	%		2-15-2025	$	462,193	$	548,981
Vendee Mortgage Trust Series 1995-2C Class 3A		8.79			6-15-2025		653,366		798,455
Total Non-Agency Mortgage Backed Securities (Cost $92,996,570)									94,480,095
U.S. Treasury Securities: 30.02%
U.S. Treasury Bond		2.75			8-15-2042		11,050,000		10,304,125
U.S. Treasury Bond		3.75			8-15-2041		29,900,000		34,001,921
U.S. Treasury Bond ##		4.50			2-15-2036		16,065,000		20,507,969
U.S. Treasury Bond ##		4.63			2-15-2040		22,800,000		29,860,886
U.S. Treasury Note		0.25			1-31-2014		28,380,000		28,399,951
U.S. Treasury Note		0.38			3-15-2015		82,035,000		82,233,689
U.S. Treasury Note		0.38			11-15-2015		25,000,000		25,041,025
U.S. Treasury Note «		0.50			10-15-2014		124,500,000		125,073,821
U.S. Treasury Note		0.63			4-30-2013		11,450,000		11,459,836
U.S. Treasury Note		0.88			1-31-2018		50,785,000		51,094,484
U.S. Treasury Note		2.00			11-15-2021		50,440,000		51,886,216
U.S. Treasury Note		2.25			7-31-2018		25,740,000		27,630,294
U.S. Treasury Note		6.25			8-15-2023		25,060,000		35,475,563
U.S. Treasury Note		7.25			8-15-2022		20,950,000		31,148,397
Total U.S. Treasury Securities (Cost $549,413,874)									564,118,177
Yankee Corporate Bonds and Notes: 4.44%
Financials: 4.44%
Commercial Banks: 3.77%
Bank of Nova Scotia 144A		1.65			10-29-2015		13,235,000		13,601,610
Canadian Imperial Bank 144A		0.90			9-19-2014		8,355,000		8,421,005
Kommunalbanken AS 144A		2.38			1-19-2016		10,135,000		10,646,007
Landwirtschaftliche Rentenbank		2.50			2-15-2016		14,125,000		14,925,323
Nordea Eiendomskreditt 144A		1.88			4-7-2015		10,430,000		10,598,966
Swedbank Hypotek 144A		2.13			8-31-2016		12,110,000		12,606,147
									70,799,058
Diversified Financial Services: 0.67%
FMS Wertmanagement		1.00			11-21-2017		12,660,000		12,666,355
Total Yankee Corporate Bonds and Notes (Cost $80,949,639)									83,465,413
	Yield					Shares
Short-Term Investments: 24.18%
Investment Companies: 24.16%
Wells Fargo Advantage Government Money Market Fund, Institutional Class (u)(l)##		0.01					451,921,531		451,921,531
Wells Fargo Securities Lending Cash Investments, LLC (r)(v)(u)(l)		0.18					2,055,200		2,055,200
									453,976,731
						Principal
U.S. Treasury Securities: 0.02%
U.S Treasury Bill (z)#		0.07			3-21-2013	$	400,000		399,986
Total Short-Term Investments (Cost $454,376,717)									454,376,717

Portfolio of investments—February 28, 2013 (unaudited) Wells Fargo Advantage Government Securities Fund 11

Security name			Value
Total investments in securities
(Cost $2,341,094,555)*	126.91	%	$	2,384,677,178
Other assets and liabilities, net	(26.91	)		(505,581,039	)
Total net assets	100.00	%	$	1,879,096,139

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

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.

%% Security issued on a when-issued 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.

(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.

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

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

(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 Investment Company Act of 1940, as amended.

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

(z) Zero coupon security. Rate represents yield to maturity at time of purchase.

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

* Cost for federal income tax purposes is $2,347,288,896 and unrealized appreciation (depreciation) consists of:

Gross unrealized appreciation	$	58,623,292
Gross unrealized depreciation		(21,235,010	)
Net unrealized appreciation	$	37,388,282

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 26, 2013

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the date indicated.

Wells Fargo Funds Trust
By:	/s/ Karla M. Rabusch
	Karla M. Rabusch
	President
Date: April 26, 2013

By:	/s/ Nancy Wiser
	Nancy Wiser
	Treasurer
Date: April 26, 2013