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: Registrant is making a filing for 10 of its series, Wells Fargo Advantage Adjustable Rate Government Fund, Wells Fargo Advantage Conservative Income Fund, Wells Fargo Advantage Government Securities Fund, Wells Fargo Advantage High Income Fund, Wells Fargo Advantage High Yield Bond Fund, Wells Fargo Advantage Income Plus Fund, Wells Fargo Advantage Short Duration Government Bond Fund, Wells Fargo Advantage Short-Term Bond Fund, Wells Fargo Advantage Short-Term High Yield Bond Fund, and Wells Fargo Advantage Ultra Short-Term Income Fund. Each series had an August 31 fiscal year end.

Date of reporting period: February 28, 2014

ITEM 1. REPORT TO STOCKHOLDERS

Wells Fargo Advantage

Adjustable Rate Government Fund

Semi-Annual Report

February 28, 2014

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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, 2014, 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 and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

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

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Fixed-income markets shifted during the period, driven by vacillations between U.S. Treasury yield increases and subsequent declines.

Reassurances from the Fed that a highly accommodative monetary policy would continue throughout 2014 inspired price rallies across both the investment-grade and high-yield bond markets.

Dear Valued Shareholder:

We are pleased to offer you this semi-annual report for the Wells Fargo Advantage Adjustable Rate Government Fund for the six-month period that ended February 28, 2014. Fixed-income markets shifted during the period, driven by vacillations between U.S. Treasury yield increases and subsequent declines. However, on the whole, investment-grade (measured by the Barclays U.S. Aggregate Bond Index¹) and high-yield markets (measured by the Barclays U.S. High Yield Bond Index²) generated positive returns during the period, notably benefiting from the strong price improvement and declining U.S. Treasury yields that occurred in September and October of 2013 as well as the opening months of 2014. Although the returns of the U.S. high-yield market have often been positively correlated with U.S. equity returns (measured by the S&P 500 Index³) over the long-run, over the period, high-yield (measured by the Barclays U.S. High Yield Bond Index) generally performed well even when equities did not. The lower-rated corporate bond credit tiers outperformed the respectively higher-rated investment-grade credit tiers during the period.

A decline in bond prices was halted by the Fed’s postponement of tapering its bond-buying program.

Before the six-month period began, equity markets rallied, most notably in May and June of 2013. This led to a sharp increase in U.S. Treasury yields and declining valuations for much of the fixed-income markets (measured by the Barclays U.S. Aggregate Bond Index). However, in July and August 2013, that equity exuberance quieted a bit, and fixed-income markets stabilized. Returns across the fixed-income markets were largely negative in investment-grade and high-yield markets but modest in comparison with the declines in May and June of 2013.

But, by September and October of 2013, investment-grade and high-yield bond markets began generating positive returns yet again, as the Federal Reserve (Fed) backtracked on its intentions to taper its quantitative easing program, postponing it until 2014, at the earliest. This created a temporary rally in bonds that lasted until around November 20, 2013, when notes were released from the Fed’s October 2013 meeting that tapering of the bond-buying programs would not be postponed beyond January 2014. In response, long-term U.S. Treasury yields and mortgage rates ratcheted higher on expectations for an unwinding of monetary accommodation in the upcoming months. This led to declines in pricing across much of the core fixed-income markets (measured by the Barclays U.S. Aggregate Bond Index). U.S. high-yield markets were better able to absorb the shift in U.S. Treasury yields and continued to provide positive returns along with rallies in the equity markets.

Favorable conditions for fixed-income markets were restored in January and February 2014.

Seemingly much to the surprise of many everyday investors and seasoned investment professionals alike, fixed-income markets (measured by the Barclays U.S. Aggregate Bond Index) largely outperformed U.S. equity markets (measured by the S&P 500 Index) during the opening months of 2014. A pullback in equity exuberance in January and reassurances from the Fed that a highly accommodative monetary policy would continue throughout 2014 inspired price rallies across both the investment-grade and high-yield bond markets. U.S. Treasury yields declined in January 2014 and corporate bonds and mortgage-backed securities performed notably well. U.S. high-yield securities generated positive returns in January 2014 but lagged the rally across the investment-grade bond markets. This theme reversed in February 2014, as high-yield sectors rallied and investment-grade sectors performed well but not to the extent of the lowest-rated credit tiers.

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

One positive takeaway for bond investors that helped fuel the fixed-income (measured by the Barclays U.S. Aggregate Bond Index) rallies was former Fed Chairman Bernanke’s guidance at the end of 2013. He indicated that the tapering of the Fed’s bond-buying program would proceed at a slow pace and that a reduction in quantitative easing should not be equivocated with a tightening of monetary policy. The distinction was important—although the bond-buying program was declining in volume, it was, nonetheless, still continuing. Additionally, the federal funds target rate would remain unchanged for the foreseeable future, with the implications that it would not increase until the bond-buying program was fully disbanded. These were important statements for fixed-income investors that helped bolster U.S. fixed-income valuations in the opening months of 2014.

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

Periods of investment uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Advantage Funds offers more than 100 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. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

Thank you for choosing to invest with Wells Fargo 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

1. The Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and CMBS. You cannot invest directly in an index.

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

3. The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock’s weight in the index proportionate to its market value. You cannot invest directly in an index.

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

Notice to shareholders

The Fund and Wells Fargo Funds Management, LLC (“Funds Management”) have received an exemptive order from the SEC that permits Funds Management, subject to the approval of the Board of Trustees of the Fund, to select or replace certain subadvisers to manage all or a portion of the Fund’s assets and enter into, amend or terminate a sub-advisory agreement with certain subadvisers without obtaining shareholder approval (“Multi-manager Structure”). The Multi-manager Structure applies to subadvisers that are not affiliated with Funds Management or the Fund, except to the extent that affiliation arises solely because such subadvisers provide sub-advisory services to the Fund (“Non-affiliated Subadvisers”), as well as subadvisers that are indirect or direct wholly-owned subsidiaries of Funds Management or of another company that, indirectly or directly, wholly owns Funds Management (“Wholly-owned Subadvisers”).

Pursuant to the SEC order, Funds Management, with the approval of the Board of Trustees, has the discretion to terminate any subadvisers and allocate and reallocate the Fund’s assets among any other Non-affiliated Subadvisers or Wholly-owned Subadvisers. Funds Management, subject to oversight and supervision by the Board of Trustees, has responsibility to continue to oversee any subadvisers to the Fund and to recommend, for approval by the Board of Trustees, the hiring, termination and replacement of subadvisers for the Fund. In the event that a new subadviser is hired pursuant to the Multi-manager Structure, the Fund is required to provide notice to shareholders within 90 days.

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

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6 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, 2014

		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		(1.60	)		1.90		2.20		0.44			2.32		2.41		0.79		0.74
Class B (ESABX)*	6-30-2000		(1.81	)		1.73		2.11		(0.31	)		1.73		2.11		1.54		1.49
Class C (ESACX)	6-30-2000		(1.31	)		1.55		1.66		(0.31	)		1.55		1.66		1.54		1.49
Administrator Class (ESADX)	7-30-2010		–			–		–		0.58			2.46		2.56		0.73		0.60
Institutional Class (EKIZX)	10-1-1991		–			–		–		0.62			2.58		2.68		0.46		0.46
Barclays 6-Month Treasury Bill Index4	–		–			–		–		0.19			0.31		1.97		–		–

* 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 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, which 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 7

Ten largest long-term holdings5 (%) as of February 28, 2014
FNMA, 2.55%, 10-1-2033	1.21
FNMA Series 2003-W18 Class 2A, 3.35%, 6-25-2043	1.16
FNMA, 2.80%, 11-1-2035	1.14
FHLMC, 2.12%, 7-1-2034	1.06
FHLMC Series T-67 Class 1A1C, 2.98%, 3-25-2036	1.03
FHLMC, 2.38%, 9-1-2035	1.01
FHLMC, 2.47%, 9-1-2030	0.97
SBA, 4.01%, 9-25-2037	0.95
FNMA, 2.40%, 2-1-2036	0.94
FNMA, 2.32%, 12-1-2040	0.87

Portfolio allocation⁶ as of February 28, 2014

1. Historical performance shown for Administrator Class shares prior to their inception reflects the performance of Institutional Class shares, adjusted to reflect the higher expenses applicable to 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. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report.

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 the amounts shown. 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.

8 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, 2013 to February 28, 2014.

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 9-1-2013		Ending account value 2-28-2014		Expenses paid during the period1		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,004.95	$	3.68		0.74	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.12	$	3.71		0.74	%
Class B
Actual	$	1,000.00	$	1,002.30	$	7.40		1.49	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.41	$	7.45		1.49	%
Class C
Actual	$	1,000.00	$	1,001.22	$	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	$	1,005.65	$	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	$	1,006.36	$	2.29		0.46	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.51	$	2.31		0.46	%

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, 2014 (unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 9

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 -CSRS, 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: 96.73%
FHLMC		0.20-8.50	%		1-1-2016 to 2-25-2045	$	378,290,306	$	402,048,099		26.10	%
FHLMC ±		2.12			7-1-2034		15,455,947		16,396,359		1.06
FHLMC ±		2.33			6-1-2037		9,380,789		10,028,693		0.65
FHLMC ±		2.35			3-1-2035		8,489,037		9,081,562		0.59
FHLMC ±		2.36			6-1-2037		9,953,786		10,546,164		0.68
FHLMC ±		2.36			9-1-2035		9,215,208		9,808,292		0.64
FHLMC ±		2.38			8-1-2035		9,588,365		10,245,818		0.66
FHLMC ±		2.38			9-1-2035		14,560,655		15,508,105		1.01
FHLMC ±		2.38			4-1-2038		9,159,474		9,762,840		0.63
FHLMC ±		2.38			3-1-2037		7,894,394		8,479,073		0.55
FHLMC ±		2.39			2-1-2035		7,223,905		7,738,165		0.50
FHLMC ±		2.41			4-1-2034		7,038,823		7,471,861		0.48
FHLMC ±		2.47			9-1-2030		14,032,446		15,022,972		0.97
FHLMC ±		2.49			9-1-2035		7,055,661		7,624,475		0.49
FHLMC ±		2.63			2-1-2036		8,636,126		9,235,441		0.60
FHLMC ±		2.69			8-1-2030		7,553,487		8,077,246		0.52
FHLMC Series T-67 Class 1A1C ±		2.98			3-25-2036		15,364,881		15,950,190		1.03
FHLMC Series T-67 Class 2A1C ±		3.03			3-25-2036		9,716,861		10,159,931		0.66
FNMA		0.29-12.50			3-1-2014 to 12-1-2050		489,916,143		522,102,079		33.86
FNMA ±		2.03			10-1-2035		10,338,874		10,899,881		0.71
FNMA ±		2.08			12-1-2035		8,816,487		9,325,436		0.60
FNMA ±		2.22			9-1-2032		8,488,649		9,040,558		0.59
FNMA ±		2.30			1-1-2037		11,334,904		12,058,245		0.78
FNMA ±		2.31			7-1-2038		7,808,720		8,411,013		0.55
FNMA ±		2.32			9-1-2039		10,541,690		11,210,591		0.73
FNMA ±		2.32			12-1-2040		12,508,026		13,355,604		0.87
FNMA ±		2.34			1-1-2038		8,289,468		8,836,504		0.57
FNMA ±		2.35			9-1-2034		10,712,322		11,436,154		0.74
FNMA ±		2.36			7-1-2035		7,548,722		8,045,848		0.52
FNMA ±		2.36			2-1-2036		7,205,099		7,704,133		0.50
FNMA ±		2.36			5-1-2042		7,896,217		8,429,926		0.55
FNMA ±		2.38			9-1-2039		8,881,833		9,519,191		0.62
FNMA ±		2.40			2-1-2036		13,420,992		14,445,542		0.94
FNMA ±		2.40			7-1-2048		8,625,890		9,241,391		0.60
FNMA ±		2.40			12-1-2040		6,831,659		7,331,199		0.48
FNMA ±		2.44			4-1-2036		6,837,161		7,315,146		0.47
FNMA ±		2.46			8-1-2039		7,316,310		7,813,370		0.51
FNMA ±		2.49			11-1-2034		8,091,135		8,630,131		0.56
FNMA ±		2.50			9-1-2037		7,232,321		7,748,985		0.50
FNMA ±		2.55			10-1-2033		17,471,054		18,673,513		1.21
FNMA ±		2.56			1-1-2036		11,783,228		12,589,302		0.82
FNMA ±		2.56			10-1-2036		8,060,310		8,489,956		0.55
FNMA ±		2.61			2-1-2035		7,955,862		8,523,493		0.55
FNMA ±		2.80			11-1-2035		16,260,585		17,539,404		1.14

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

10 Wells Fargo Advantage Adjustable Rate Government Fund Summary portfolio of investments—February 28, 2014 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Agency Securities (continued)
FNMA Series 2001-T12 Class A4 ±		3.38	%		8-25-2041	$	9,069,591	$	9,245,042		0.60	%
FNMA Series 2002-66 Class A3 ±		3.09			4-25-2042		12,487,158		12,825,023		0.83
FNMA Series 2003-W18 Class 2A ±		3.35			6-25-2043		17,120,777		17,908,641		1.16
FNMA Series 2004-W12 Class 2A ±		3.36			6-25-2044		8,661,849		9,226,341		0.60
FNMA Series 2004-W15 Class 3A ±		2.67			6-25-2044		11,345,918		11,989,788		0.78
FNMA Series 2006-W1 Class 3A ±		2.15			10-25-2045		12,364,158		13,040,811		0.85
GNMA		0.66-9.00			8-20-2015 to 9-20-2062		30,706,312		31,990,009		2.01
GNMA ±		2.06			8-20-2062		8,685,894		9,156,521		0.59
SBA ±		4.01			9-25-2037		12,752,064		14,658,541		0.95
Other securities									241,657		0.02
Total Agency Securities (Cost $1,465,657,494)									1,492,184,255		96.73
	Yield					Shares
Short-Term Investments: 2.60%
Investment Companies: 2.54%
Wells Fargo Advantage Government Money Market Fund, Institutional Class (l)(u)		0.01					39,291,402		39,291,402		2.54
						Principal
U.S. Treasury Securities: 0.06%
U.S. Treasury Bill #(z)		0.03			3-20-2014	$	900,000		899,987		0.06
Total Short-Term Investments (Cost $40,191,376)									40,191,389		2.60
Total investments in securities (Cost $1,505,848,870) *									1,532,375,644		99.33
Other assets and liabilities, net									10,264,945		0.67
Total net assets								$	1,542,640,589		100.00	%

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

(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 the current yield to maturity.

* Cost for federal income tax purposes is $1,506,813,578 and unrealized appreciation (depreciation) consists of:

Gross unrealized appreciation	$	27,480,767
Gross unrealized depreciation		(1,918,701	)
Net unrealized appreciation	$	25,562,066

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

Statement of assets and liabilities—February 28, 2014 (unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 11

Assets
Investments
In unaffiliated securities, at value (see cost below)	$	1,493,084,242
In affiliated securities, at value (see cost below)		39,291,402
Total investments, at value (see cost below)		1,532,375,644
Cash		3,565,574
Principal paydown receivable		8,786,091
Receivable for Fund shares sold		1,017,021
Receivable for interest		1,275,724
Receivable for daily variation margin on open futures contracts		111,375
Prepaid expenses and other assets		37,296
Total assets		1,547,168,725
Liabilities
Dividends payable		328,202
Payable for investments purchased		2,028,583
Payable for Fund shares redeemed		1,206,895
Advisory fee payable		342,882
Distribution fees payable		104,758
Due to other related parties		195,498
Accrued expenses and other liabilities		321,318
Total liabilities		4,528,136
Total net assets	$	1,542,640,589
NET ASSETS CONSIST OF
Paid-in capital	$	1,586,565,878
Overdistributed net investment income		(1,209,478	)
Accumulated net realized losses on investments		(69,073,508	)
Net unrealized gains on investments		26,357,697
Total net assets	$	1,542,640,589
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE1
Net assets – Class A	$	264,091,076
Shares outstanding – Class A		28,855,067
Net asset value per share – Class A		$9.15
Maximum offering price per share – Class A2		$9.34
Net assets – Class B	$	1,942,990
Shares outstanding – Class B		212,219
Net asset value per share – Class B		$9.16
Net assets – Class C	$	165,841,685
Shares outstanding – Class C		18,119,957
Net asset value per share – Class C		$9.15
Net assets – Administrator Class	$	117,008,488
Shares outstanding – Administrator Class		12,783,258
Net asset value per share – Administrator Class		$9.15
Net assets – Institutional Class	$	993,756,350
Shares outstanding – Institutional Class		108,558,788
Net asset value per share – Institutional Class		$9.15
Investments in unaffiliated securities, at cost	$	1,466,557,468
Investments in affiliated securities, at cost	$	39,291,402
Total investments, at cost	$	1,505,848,870

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.

12 Wells Fargo Advantage Adjustable Rate Government Fund Statement of operations—six months ended February 28, 2014 (unaudited)

Investment income
Interest	$	10,478,611
Income from affiliated securities		2,428
Total investment income		10,481,039
Expenses
Advisory fee		2,320,773
Administration fees
Fund level		369,709
Class A		217,495
Class B		1,959
Class C		141,368
Administrator Class		55,824
Institutional Class		366,464
Shareholder servicing fees
Class A		339,836
Class B		3,061
Class C		220,887
Administrator Class		136,711
Distribution fees
Class B		9,183
Class C		662,660
Custody and accounting fees		51,770
Professional fees		32,147
Registration fees		66,860
Shareholder report expenses		47,002
Trustees’ fees and expenses		5,390
Other fees and expenses		33,876
Total expenses		5,082,975
Less: Fee waivers and/or expense reimbursements		(311,253	)
Net expenses		4,771,722
Net investment income		5,709,317
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		232,644
Futures transactions		(1,473,311	)
Net realized losses on investments		(1,240,667	)
Net change in unrealized gains (losses) on:
Unaffiliated securities		4,223,312
Futures transactions		(61,211	)
Net change in unrealized gains (losses) on investments		4,162,101
Net realized and unrealized gains (losses) on investments		2,921,434
Net increase in net assets resulting from operations	$	8,630,751

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

Statement of changes in net assets Wells Fargo Advantage Adjustable Rate Government Fund 13

	Six months ended February 28, 2014 (unaudited)						Year ended August 31, 2013
Operations
Net investment income				$	5,709,317					$	10,804,546
Net realized gains (losses) on investments					(1,240,667	)					2,659,262
Net change in unrealized gains (losses) on investments					4,162,101						(10,514,094	)
Net increase in net assets resulting from operations					8,630,751						2,949,714
Distributions to shareholders from
Net investment income
Class A					(1,056,274	)					(2,245,241	)
Class B					(276	)					(1,184	)
Class C					(23,815	)					(56,838	)
Administrator Class					(512,593	)					(954,995	)
Institutional Class					(4,866,391	)					(8,298,462	)
Tax basis return of capital
Class A					0						(41,486	)
Class B					0						(22	)
Class C					0						(1,050	)
Administrator Class					0						(17,646	)
Institutional Class					0						(153,334	)
Total distributions to shareholders					(6,459,349	)					(11,770,258	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		4,004,010			36,622,756			9,109,427			83,682,254
Class B		3,857			35,274			31,268			287,126
Class C		303,536			2,776,460			839,351			7,710,932
Administrator Class		3,963,165			36,242,463			8,957,655			82,281,335
Institutional Class		32,425,619			296,816,837			111,798,068			1,027,507,716
					372,493,790						1,201,469,363
Reinvestment of distributions
Class A		97,444			891,123			204,160			1,875,097
Class B		28			259			123			1,136
Class C		1,936			17,707			4,710			43,331
Administrator Class		37,125			339,594			61,507			564,819
Institutional Class		351,660			3,216,587			643,170			5,906,428
					4,465,270						8,390,811
Payment for shares redeemed
Class A		(6,000,961	)		(54,882,675	)		(12,269,012	)		(112,668,495	)
Class B		(107,372	)		(982,625	)		(440,076	)		(4,045,250	)
Class C		(2,989,866	)		(27,345,474	)		(7,063,937	)		(64,901,729	)
Administrator Class		(2,409,385	)		(22,030,368	)		(10,045,881	)		(92,236,416	)
Institutional Class		(23,422,474	)		(214,255,745	)		(87,926,435	)		(807,965,965	)
					(319,496,887	)					(1,081,817,855	)
Net increase in net assets resulting from capital share transactions					57,462,173						128,042,319
Total increase in net assets					59,633,575						119,221,775
Net assets
Beginning of period					1,483,007,014						1,363,785,239
End of period				$	1,542,640,589					$	1,483,007,014
Overdistributed net investment income				$	(1,209,478	)				$	(459,446	)

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, 2014 (unaudited)			Year ended August 31												Year ended June 30
CLASS A				2013			2012			2011			20101,2			20101			20091
Net asset value, beginning of period	$	9.14		$	9.19		$	9.12		$	9.12		$	9.11		$	9.00		$	9.15
Net investment income		0.03			0.06			0.09			0.14			0.02			0.20			0.32
Net realized and unrealized gains (losses) on investments		0.02			(0.04	)		0.08			0.04			0.02			0.11			(0.14	)
Total from investment operations		0.05			0.02			0.17			0.18			0.04			0.31			0.18
Distributions to shareholders from
Net investment income		(0.04	)		(0.07	)		(0.09	)		(0.13	)3		(0.01	)3		(0.20	)		(0.33	)
Tax basis return of capital		0.00			(0.00	)4		(0.01	)		(0.05	)3		(0.02	)3		0.00			0.00
Total distributions to shareholders		(0.04	)		(0.07	)		(0.10	)		(0.18	)		(0.03	)		(0.20	)		(0.33	)
Net asset value, end of period	$	9.15		$	9.14		$	9.19		$	9.12		$	9.12		$	9.11		$	9.00
Total return5		0.49	%		0.23	%		1.84	%		2.04	%		0.49	%		3.51	%		2.09	%
Ratios to average net assets (annualized)
Gross expenses		0.81	%		0.84	%		0.86	%		0.88	%		0.88	%		0.73	%		0.73	%
Net expenses		0.74	%		0.74	%		0.74	%		0.74	%		0.74	%		0.73	%		0.73	%
Net investment income		0.68	%		0.71	%		1.01	%		1.50	%		1.18	%		2.27	%		3.61	%
Supplemental data
Portfolio turnover rate		1	%		10	%		9	%		18	%		0	%		14	%		41	%
Net assets, end of period (000s omitted)		$264,091			$281,028			$309,827			$328,427			$353,453			$271,853			$277,862

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.

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, 2014 (unaudited)			��	Year ended August 31												Year ended June 30
CLASS B					2013			2012			2011			20101,2			20101			20091
Net asset value, beginning of period	$	9.14			$	9.19		$	9.12		$	9.12		$	9.11		$	9.00		$	9.15
Net investment income (loss)		(0.00	)3,4			(0.00	)3,4		0.03	3		0.07	3		0.00	4		0.13	3		0.26	3
Net realized and unrealized gains (losses) on investments		0.02				(0.05	)		0.07			0.05			0.03			0.11			(0.14	)
Total from investment operations		0.02				(0.05	)		0.10			0.12			0.03			0.24			0.12
Distributions to shareholders from
Net investment income		(0.00	)4			(0.00	)4		(0.03	)		(0.07	)3		(0.00	)3,4		(0.13	)		(0.27	)
Tax basis return of capital		0.00				(0.00	)4		(0.00	)4		(0.05	)3		(0.02	)3		0.00			0.00
Total distributions to shareholders		(0.00	)4			(0.00	)4		(0.03	)		(0.12	)		(0.02	)		(0.13	)		(0.27	)
Net asset value, end of period	$	9.16			$	9.14		$	9.19		$	9.12		$	9.12		$	9.11		$	9.00
Total return5		0.23	%			(0.52	)%		1.08	%		1.28	%		0.36	%		2.73	%		1.33	%
Ratios to average net assets (annualized)
Gross expenses		1.56	%			1.60	%		1.61	%		1.63	%		1.62	%		1.48	%		1.48	%
Net expenses		1.49	%			1.49	%		1.49	%		1.49	%		1.49	%		1.48	%		1.48	%
Net investment income (loss)		(0.08	)%			(0.03	)%		0.27	%		0.81	%		0.24	%		1.55	%		2.95	%
Supplemental data
Portfolio turnover rate		1	%			10	%		9	%		18	%		0	%		14	%		41	%
Net assets, end of period (000s omitted)		$1,943				$2,886			$6,660			$14,911			$50,229			$52,414			$90,520

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.

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, 2014 (unaudited)			Year ended August 31												Year ended June 30
CLASS C				2013			2012			2011			20101,2			20101			20091
Net asset value, beginning of period	$	9.14		$	9.19		$	9.12		$	9.12		$	9.11		$	9.00		$	9.15
Net investment income (loss)		(0.01	)		(0.00	)3,4		0.02	4		0.06			0.00	3		0.14			0.25
Net realized and unrealized gains (losses) on investments		0.02			(0.05	)		0.08			0.06			0.03			0.10			(0.13	)
Total from investment operations		0.01			(0.05	)		0.10			0.12			0.03			0.24			0.12
Distributions to shareholders from
Net investment income		(0.00	)3		(0.00	)3		(0.03	)		(0.07	)4		(0.00	)3,4		(0.13	)		(0.27	)
Tax basis return of capital		0.00			(0.00	)3		(0.00	)3		(0.05	)4		(0.02	)4		0.00			0.00
Total distributions to shareholders		(0.00	)3		(0.00	)3		(0.03	)		(0.12	)		(0.02	)		(0.13	)		(0.27	)
Net asset value, end of period	$	9.15		$	9.14		$	9.19		$	9.12		$	9.12		$	9.11		$	9.00
Total return5		0.12	%		(0.52	)%		1.08	%		1.28	%		0.36	%		2.73	%		1.33	%
Ratios to average net assets (annualized)
Gross expenses		1.56	%		1.59	%		1.61	%		1.63	%		1.62	%		1.48	%		1.48	%
Net expenses		1.49	%		1.49	%		1.49	%		1.49	%		1.51	%		1.48	%		1.48	%
Net investment income (loss)		(0.08	)%		(0.04	)%		0.26	%		0.74	%		0.23	%		1.52	%		2.88	%
Supplemental data
Portfolio turnover rate		1	%		10	%		9	%		18	%		0	%		14	%		41	%
Net assets, end of period (000s omitted)		$165,842			$190,110			$248,392			$296,645			$340,278			$349,562			$360,607

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.

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

Financial highlights Wells Fargo Advantage Adjustable Rate Government Fund 17

(For a share outstanding throughout each period)

	Six months ended February 28, 2014 (unaudited)			Year ended August 31
ADMINISTRATOR CLASS				2013			2012			2011			20101
Net asset value, beginning of period	$	9.14		$	9.19		$	9.12		$	9.12		$	9.11
Net investment income		0.04			0.08			0.11			0.14	2		0.02
Net realized and unrealized gains (losses) on investments		0.01			(0.05	)		0.07			0.06			0.01
Total from investment operations		0.05			0.03			0.18			0.20			0.03
Distributions to shareholders from
Net investment income		(0.04	)		(0.08	)		(0.10	)		(0.15	)2		(0.00	)2,3
Tax basis return of capital		0.00			(0.00	)3		(0.01	)		(0.05	)2		(0.02	)2
Total distributions to shareholders		(0.04	)		(0.08	)		(0.11	)		(0.20	)		(0.02	)
Net asset value, end of period	$	9.15		$	9.14		$	9.19		$	9.12		$	9.12
Total return4		0.56	%		0.37	%		1.98	%		2.18	%		0.31	%
Ratios to average net assets (annualized)
Gross expenses		0.74	%		0.77	%		0.79	%		0.78	%		0.90	%
Net expenses		0.60	%		0.60	%		0.60	%		0.60	%		0.62	%
Net investment income		0.82	%		0.85	%		1.14	%		1.49	%		2.01	%
Supplemental data
Portfolio turnover rate		1	%		10	%		9	%		18	%		0	%
Net assets, end of period (000s omitted)		$117,008			$102,284			$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.

18 Wells Fargo Advantage Adjustable Rate Government Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2014 (unaudited)			Year ended August 31												Year ended June 30
INSTITUTIONAL CLASS				2013			2012			2011			20101,2			20101			20091
Net asset value, beginning of period	$	9.14		$	9.19		$	9.12		$	9.12		$	9.11		$	9.00		$	9.15
Net investment income		0.04			0.09	3		0.12	3		0.15			0.02			0.23			0.35
Net realized and unrealized gains (losses) on investments		0.02			(0.04	)		0.07			0.06			0.03			0.10			(0.14	)
Total from investment operations		0.06			0.05			0.19			0.21			0.05			0.33			0.21
Distributions to shareholders from
Net investment income		(0.05	)		(0.10	)		(0.11	)		(0.16	)3		(0.02	)3		(0.22	)		(0.36	)
Tax basis return of capital		0.00			(0.00	)4		(0.01	)		(0.05	)3		(0.02	)3		0.00			0.00
Total distributions to shareholders		(0.05	)		(0.10	)		(0.12	)		(0.21	)		(0.04	)		(0.22	)		(0.36	)
Net asset value, end of period	$	9.15		$	9.14		$	9.19		$	9.12		$	9.12		$	9.11		$	9.00
Total return5		0.64	%		0.50	%		2.09	%		2.30	%		0.53	%		3.76	%		2.35	%
Ratios to average net assets (annualized)
Gross expenses		0.48	%		0.51	%		0.53	%		0.55	%		0.55	%		0.48	%		0.48	%
Net expenses		0.46	%		0.47	%		0.49	%		0.49	%		0.49	%		0.48	%		0.48	%
Net investment income		0.96	%		0.98	%		1.25	%		1.72	%		1.21	%		2.52	%		3.91	%
Supplemental data
Portfolio turnover rate		1	%		10	%		9	%		18	%		0	%		14	%		41	%
Net assets, end of period (000s omitted)		$993,756			$906,698			$686,587			$597,521			$368,066			$389,075			$483,565

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.

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

Notes to financial statements (unaudited) Wells Fargo Advantage Adjustable Rate Government 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 the 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 (generally 4 p.m. Eastern Time).

Fixed income securities acquired with maturities exceeding 60 days are valued based on evaluated bid prices provided by an independent pricing service which may utilize both transaction data and market information such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data. If prices are not available from the independent pricing service or prices received are deemed not representative of market value, prices will be obtained from an independent broker-dealer or otherwise determined based on the Fund’s Valuation Procedures.

Futures that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price.

Short-term securities, with maturities of 60 days or less at time of purchase, 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 in good faith by the Board of Trustees of the Fund. 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 values, to assess the continued appropriateness of the fair valuation methodologies used. These securities are fair valued on a day-to-day basis, taking into consideration changes to appropriate market information and any significant changes to the inputs considered in the valuation process until there is a readily available price provided on an exchange or by an independent pricing service. Valuations received from an independent pricing service or independent broker-dealer quotes are periodically validated by comparisons to most recent trades and valuations provided by other independent pricing services in addition to the review of prices by the adviser and/or subadviser. Unobservable inputs used in determining fair valuations are identified based on the type of security, taking into consideration factors utilized by market participants in valuing the investment, knowledge about the issuer and the current market environment.

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.

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

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

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.

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, 2013, capital loss carryforwards available to offset future net realized capital gains were as follows through the indicated expiration dates:

2014	2015	2016	2017	2018	2019
$11,283,743	$18,541,278	$10,766,785	$24,262,054	$1,705,150	$66,443

As of August 31, 2013, the Fund had $270,821 of current year deferred post-October capital losses, which were 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)

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

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, 2014, the inputs used in valuing investments in securities were as follows:

Investments in securities	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Agency securities	$	0	$	1,492,184,255	$	0	$	1,492,184,255
Short-term investments
Investment companies		39,291,402		0		0		39,291,402
U.S. Treasury securities		899,987		0		0		899,987
	$	40,191,389	$	1,492,184,255	$	0	$	1,532,375,644

As of February 28, 2014, the inputs used in valuing the Fund’s other financial instruments were as follows:

	Quoted prices (Level 1)			Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Futures contracts	$	(169,077	)*	$	0	$	0	$(169,077)

* Amount represents the net unrealized losses.

Transfers in and transfers out are recognized at the end of the reporting period. For the six months ended February 28, 2014, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

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 0.30% and declining to 0.225% as the average daily net assets of the Fund increase. Prior to January 1, 2014, Funds Management was entitled to receive an annual advisory fee which started at 0.35% and declined to 0.25% as the average daily net assets of the Fund increased. For the six months ended February 28, 2014, the advisory fee was equivalent to an annual rate of 0.31% 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 and an indirect, wholly owned subsidiary of Wells Fargo, 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

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

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

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 0.74% 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 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, 2014, Wells Fargo Funds Distributor, LLC received $1,128 from the sale of Class A shares and $219 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 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 obligations, excluding short-term securities, for the six months ended February 28, 2014 were $181,996,940 and $18,188,118, respectively.

6. DERIVATIVE TRANSACTIONS

During the six months ended February 28, 2014, the Fund entered into futures contracts to speculate on interest rates and to help manage the duration of the portfolio.

At February 28, 2014, the Fund had short futures contracts outstanding as follows:

Expiration date	Counterparty	Contracts	Type	Contract value at February 28, 2014		Unrealized losses
6-19-2014	JPMorgan	267 Short	10-Year US Treasury Note	$	33,249,844	$	(67,257	)
6-30-2014	JPMorgan	452 Short	5-Year US Treasury Note		54,176,438		(101,820	)

The Fund had an average notional amount of $84,536,705 in short futures contracts during the six months ended February 28, 2014.

On February 28, 2014, the cumulative unrealized losses on futures contracts in the amount of $169,077 are 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 (losses) on futures contracts are reflected in the Statement of Operations.

For certain types of derivative transactions, the Fund has entered into International Swaps and Derivatives Association, Inc. master agreements (“ISDA Master Agreements”) or similar agreements with approved counterparties. The ISDA Master Agreements or similar agreements may have requirements to deliver/deposit securities or cash to/with an exchange or broker-dealer as collateral and allows the Fund to offset, with each counterparty, certain derivative financial instrument’s assets and/or liabilities with collateral held or pledged. Collateral requirements differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives while collateral terms are contract specific for over-the-counter traded. Cash collateral that has been pledged to cover obligations of the Fund under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Portfolio of Investments. With respect to balance sheet offsetting, absent an event of default by the counterparty or a termination of the agreement, the reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities are not offset across transactions between the Fund and the applicable counterparty. A reconciliation of the gross amounts on the Statement of Assets and Liabilities to the net amounts by derivative type, including any collateral exposure, is as follows:

Derivative type	Counterparty	Gross amounts of assets in the Statement of Assets and Liabilities	Amounts subject to netting agreements		Collateral received		Net amount
Futures – variation margin	JPMorgan	$111,375	$	0	$	0	$	111,375

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

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, 2014, the Fund paid $307 in commitment fees.

For the six months ended February 28, 2014, 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.

24 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 25

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers listed in the table below acts in identical capacities for each fund in the Wells Fargo Advantage family of funds, which consists of 132 mutual 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 Harbor 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 50 portfolios as of 12/16/2013); 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 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 73 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 59 funds and Assistant Treasurer of 73 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 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 —  Columbian Peso

CLP —  Chilean peso

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 —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

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

NGN —  Nigerian naira

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

RON —  Romanian lei

RUB —  Russian ruble

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

THB —  Thai baht

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

© 2014 Wells Fargo Funds Management, LLC. All rights reserved.

223528 04-14 SA215/SAR215 02-14

Wells Fargo Advantage
Conservative Income Fund

Semi-Annual Report

February 28, 2014

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
Portfolio of investments	9
Financial statements
Statement of assets and liabilities	14
Statement of operations	15
Statement of changes in net assets	16
Financial highlights	17
Notes to financial statements	18
Other information	22
List of abbreviations	25

The views expressed and any forward-looking statements are as of February 28, 2014, 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 and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

2 Wells Fargo Advantage Conservative Income Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Fixed-income markets shifted during the period, driven by vacillations between U.S. Treasury yield increases and subsequent declines.

Reassurances from the Fed that a highly accommodative monetary policy would continue throughout 2014 inspired price rallies across both the investment-grade and high-yield bond markets.

Dear Valued Shareholder:

We are pleased to offer you this semi-annual report for the Wells Fargo Advantage Conservative Income Fund for the six-month period that ended February 28, 2014. Fixed-income markets shifted during the period, driven by vacillations between U.S. Treasury yield increases and subsequent declines. However, on the whole, investment-grade (measured by the Barclays U.S. Aggregate Bond Index¹) and high-yield markets (measured by the Barclays U.S. High Yield Bond Index²) generated positive returns during the period, notably benefiting from the strong price improvement and declining U.S. Treasury yields that occurred in September and October of 2013 as well as the opening months of 2014. Although the returns of the U.S. high-yield market have often been positively correlated with U.S. equity returns (measured by the S&P 500 Index³) over the long-run, over the period, high-yield (measured by the Barclays U.S. High Yield Bond Index) generally performed well even when equities did not. The lower-rated corporate bond credit tiers outperformed the respectively higher-rated investment-grade credit tiers during the period.

A decline in bond prices was halted by the Fed’s postponement of tapering its bond-buying program.

Before the six-month period began, equity markets rallied, most notably in May and June of 2013. This led to a sharp increase in U.S. Treasury yields and declining valuations for much of the fixed-income markets (measured by the Barclays U.S. Aggregate Bond Index). However, in July and August 2013, that equity exuberance quieted a bit, and fixed-income markets stabilized. Returns across the fixed-income markets were largely negative in investment-grade and high-yield markets but modest in comparison with the declines in May and June of 2013.

But, by September and October of 2013, investment-grade and high-yield bond markets began generating positive returns yet again, as the Federal Reserve (Fed) backtracked on its intentions to taper its quantitative easing program, postponing it until 2014, at the earliest. This created a temporary rally in bonds that lasted until around November 20, 2013, when notes were released from the Fed’s October 2013 meeting that tapering of the bond-buying programs would not be postponed beyond January 2014. In response, long-term U.S. Treasury yields and mortgage rates ratcheted higher on expectations for an unwinding of monetary accommodation in the upcoming months. This led to declines in pricing across much of the core fixed-income markets (measured by the Barclays U.S. Aggregate Bond Index). U.S. high-yield markets were better able to absorb the shift in U.S. Treasury yields and continued to provide positive returns along with rallies in the equity markets.

Favorable conditions for fixed-income markets were restored in January and February 2014.

Seemingly much to the surprise of many everyday investors and seasoned investment professionals alike, fixed-income markets (measured by the Barclays U.S. Aggregate Bond Index) largely outperformed U.S. equity markets (measured by the S&P 500 Index) during the opening months of 2014. A pullback in equity exuberance in January and reassurances from the Fed that a highly accommodative monetary policy would continue throughout 2014 inspired price rallies across both the investment-grade and high-yield bond markets. U.S. Treasury yields declined in January 2014 and corporate bonds and mortgage-backed securities performed notably well. U.S. high-yield securities generated positive returns in January 2014 but lagged the rally across the investment-grade bond markets. This theme reversed in February 2014, as high-yield sectors rallied and investment-grade sectors performed well but not to the extent of the lowest-rated credit tiers.

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

One positive takeaway for bond investors that helped fuel the fixed-income (measured by the Barclays U.S. Aggregate Bond Index) rallies was former Fed Chairman Bernanke’s guidance at the end of 2013. He indicated that the tapering of the Fed’s bond-buying program would proceed at a slow pace and that a reduction in quantitative easing should not be equivocated with a tightening of monetary policy. The distinction was important—although the bond-buying program was declining in volume, it was, nonetheless, still continuing. Additionally, the federal funds target rate would remain unchanged for the foreseeable future, with the implications that it would not increase until the bond-buying program was fully disbanded. These were important statements for fixed-income investors that helped bolster U.S. fixed-income valuations in the opening months of 2014.

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

Periods of investment uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Advantage Funds offers more than 100 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. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

Thank you for choosing to invest with Wells Fargo 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

1. The Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and CMBS. You cannot invest directly in an index.

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

3. The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock’s weight in the index proportionate to its market value. You cannot invest directly in an index.

4 Wells Fargo Advantage Conservative Income Fund Letter to shareholders (unaudited)

Notice to shareholders

The Fund and Wells Fargo Funds Management, LLC (“Funds Management”) have received an exemptive order from the SEC that permits Funds Management, subject to the approval of the Board of Trustees of the Fund, to select or replace certain subadvisers to manage all or a portion of the Fund’s assets and enter into, amend or terminate a sub-advisory agreement with certain subadvisers without obtaining shareholder approval (“Multi-manager Structure”). The Multi-manager Structure applies to subadvisers that are not affiliated with Funds Management or the Fund, except to the extent that affiliation arises solely because such subadvisers provide sub-advisory services to the Fund (“Non-affiliated Subadvisers”), as well as subadvisers that are indirect or direct wholly-owned subsidiaries of Funds Management or of another company that, indirectly or directly, wholly owns Funds Management (“Wholly-owned Subadvisers”).

Pursuant to the SEC order, Funds Management, with the approval of the Board of Trustees, has the discretion to terminate any subadvisers and allocate and reallocate the Fund’s assets among any other Non-affiliated Subadvisers or Wholly-owned Subadvisers. Funds Management, subject to oversight and supervision by the Board of Trustees, has responsibility to continue to oversee any subadvisers to the Fund and to recommend, for approval by the Board of Trustees, the hiring, termination and replacement of subadvisers for the Fund. In the event that a new subadviser is hired pursuant to the Multi-manager Structure, the Fund is required to provide notice to shareholders within 90 days.

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

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6 Wells Fargo Advantage Conservative 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

Andrew M. Greenberg, CFA

Anthony J. Melville, CFA

Jeffrey L. Weaver, CFA

Average annual total returns (%) as of February 28, 2014

				Expense ratios1 (%)
	Inception date	Since inception		Gross		Net2
Institutional Class (WCIIX)	5-31-2013		0.52		0.74		0.27
Barclays 6-9 Month Treasury Bill Index3	–		0.08		–		–

Figures quoted represent past performance, which is no guarantee of future results, and do not reflect 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, which 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.

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. 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, mortgage- and asset-backed securities risk and municipal securities risk. Consult the Fund’s prospectus for additional information on these and other risks.

Please see footnotes on page 7.

Performance highlights (unaudited) Wells Fargo Advantage Conservative Income Fund 7

Ten largest long-term holdings4 (%) as of February 28, 2014
Fifth Third Auto Trust 2014-1 Class A2, 0.46%, 8-15-2016	1.90
ABN Amro Bank NV, 1.04%, 10-28-2016	1.53
Ford Credit Auto Owner Trust Series 2013-B Class A3, 0.76%, 9-15-2016	1.53
JPMorgan Chase & Company, 0.76%, 2-15-2017	1.53
Suffolk County NY TAN Series I, 1.50%, 8-14-2014	1.53
CarMax Auto Owner Trust Series 2013-3 Class A2, 0.59%, 8-15-2016	1.52
Credit Suisse NY, 0.56%, 8-24-2015	1.52
Volvo Financial Equipment LLC Series 2014-1A Class A2, 0.54%, 11-15-2016	1.52
Citibank Credit Card Issuance Trust Series 2004-A8, 4.90%, 12-12-2016	1.40
HSBC Finance Corporation, 5.00%, 6-30-2015	1.25

Portfolio allocation5 as of February 28, 2014

1. Reflects the expense ratio as stated in the most recent prospectus. The expense ratio shown is subject to change and may differ from the annualized expense ratio shown in the financial highlights of this report.

2. 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 the amount shown. 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.

3. The Barclays 6–9 Month Treasury Bill Index includes all publicly issued zero-coupon U.S. Treasury bills that have a remaining maturity of less than nine months and more than six, are rated investment-grade, and have $250 million or more of outstanding face value. You cannot invest directly in an index.

4. 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.

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

8 Wells Fargo Advantage Conservative Income Fund Fund expenses (unaudited)

As a shareholder of the Fund, you incur ongoing costs 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, 2013 to February 28, 2014.

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 9-1-2013		Ending account value 2-28-2014		Expenses paid during the period1		Net annualized expense ratio
Institutional Class
Actual	$	1,000.00	$	1,005.15	$	1.34		0.27	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.46	$	1.35		0.27	%

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

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage Conservative Income Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Asset-Backed Securities: 22.11%
Ally Auto Receivables Trust Series 2012-3 Class A2		0.52	%		5-20-2015	$	414,033	$	414,040
Cards II Trust Series 2012-4A Class A ±144A		0.60			9-15-2017		1,000,000		1,000,860
CarMax Auto Owner Trust Series 2013-3 Class A2		0.59			8-15-2016		2,000,000		2,002,382
Citibank Credit Card Issuance Trust Series 2004-A8		4.90			12-12-2016		1,775,000		1,838,579
Fifth Third Auto Trust 2014-1 Class A2		0.46			8-15-2016		2,500,000		2,500,100
Ford Credit Auto Owner Trust Series 2013-B Class A3		0.76			9-15-2016		2,000,000		2,006,784
Golden Credit Card Trust Series 2012-5A Class A 144A		0.79			9-15-2017		1,000,000		1,001,949
Hyundai Auto Lease Securitization Trust Series 2013-A Class A3 144A		0.66			6-15-2016		1,250,000		1,251,799
Hyundai Auto Lease Securitization Trust Series 2013-B Class A3 144A		0.98			10-17-2016		600,000		603,236
M&T Bank Auto Receivables Trust Series 2013-1A Class A2 144A		0.66			2-16-2016		1,000,000		1,001,330
M&T Bank Auto Receivables Trust Series 2013-1A Class A3 144A		1.06			11-15-2017		1,200,000		1,209,797
Mercedes-Benz Auto Lease Trust Series 2013-B Class A2		0.53			9-15-2015		250,000		250,207
Mercedes-Benz Auto Lease Trust Series 2013-B Class A3		0.62			7-15-2016		1,000,000		1,000,690
Nissan Auto Lease Trust Series 2012-B Class A2A		0.45			6-15-2015		195,629		195,633
Nissan Auto Lease Trust Series 2013-B Class A3		0.75			6-15-2016		1,000,000		1,002,895
Penarth Master Issuer Series 2012-1A Class A ±144A		0.72			3-18-2014		1,000,000		1,000,106
Penarth Master Issuer Series 2013-1A Class A1 ±144A		0.54			11-18-2017		1,000,000		1,001,378
Porsche Innovative Lease Owner Pilot Trust Series 2013-1 Class A2 144A		0.54			1-22-2016		1,510,000		1,511,416
Smart Trust Series 2011-4USA Class A3A 144A		1.81			11-14-2015		542,499		544,882
USAA Auto Owner Trust 2014-1 Clas A2		0.38			10-17-2016		1,500,000		1,499,959
Volkswagen Auto Lease Trust Series 2013-A Class A2A		0.63			12-21-2015		535,624		536,418
Volkswagen Auto Lease Trust Series 2014-A Class A2A		0.52			10-20-2016		1,500,000		1,503,935
Volvo Financial Equipment LLC Series 2014-1A Class A2 144A%%		0.54			11-15-2016		2,000,000		1,999,994
World Omni Automobile Lease Securitization Trust Series 2012-A Class A3		0.93			11-16-2015		996,894		999,093
World Omni Automobile Receivables Trust Series 2013-B Class A2		0.48			11-15-2016		1,175,000		1,175,605
Total Asset-Backed Securities (Cost $29,034,510)									29,053,067
Certificates of Deposit: 1.52%
Credit Suisse NY ±		0.56			8-24-2015		2,000,000		2,000,000
Total Certificates of Deposit (Cost $2,000,000)									2,000,000
Corporate Bonds and Notes: 17.50%
Consumer Discretionary: 1.66%
Automobiles: 0.47%
American Honda Finance ±		0.74			10-7-2016		615,000		619,749
Media: 1.19%
NBCUniversal Media LLC		3.65			4-30-2015		1,500,000		1,554,746
Financials: 12.30%
Banks: 0.38%
Union Bank NA ±		1.00			9-26-2016		500,000		504,824
Capital Markets: 4.64%
Daimler Finance NA LLC 144A		2.30			1-9-2015		1,030,000		1,045,589
Goldman Sachs Group Incorporated		3.30			5-3-2015		1,250,000		1,287,049
Goldman Sachs Group Incorporated		3.70			8-1-2015		600,000		623,827
Macquarie Group Limited 144A		7.30			8-1-2014		1,000,000		1,027,307
Merrill Lynch & Company		5.30			9-30-2015		595,000		634,243

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

10 Wells Fargo Advantage Conservative Income Fund Portfolio of investments—February 28, 2014 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Capital Markets (continued)
Morgan Stanley		6.00	%		4-28-2015	$	1,400,000	$	1,484,433
									6,102,448
Consumer Finance: 1.95%
American Express Credit Corporation		2.75			9-15-2015		521,000		538,323
Daimler Finance NA LLC 144A		1.65			4-10-2015		375,000		378,881
HSBC Finance Corporation		5.00			6-30-2015		1,560,000		1,644,082
									2,561,286
Diversified Financial Services: 4.75%
Bank of America Corporation ±		0.71			2-14-2017		250,000		249,929
Bank of America Corporation		4.50			4-1-2015		500,000		520,197
Bank of America Corporation		5.00			1-15-2015		450,000		466,747
BHP Billiton Finance USA Limited		1.13			11-21-2014		515,000		518,299
Citigroup Incorporated ±		0.92			11-15-2016		500,000		502,469
Citigroup Incorporated ±		1.20			7-25-2016		500,000		505,577
Citigroup Incorporated		2.25			8-7-2015		500,000		510,079
General Electric Capital Corporation		3.50			6-29-2015		925,000		961,975
JPMorgan Chase & Company ±		0.76			2-15-2017		2,000,000		2,004,094
									6,239,366
Insurance: 0.58%
New York Life Global Funding 144A		1.30			1-12-2015		750,000		756,310
Health Care: 0.76%
Health Care Providers & Services: 0.76%
Providence Health & Services Obligated Group ±		0.90			10-1-2015		1,000,000		998,291
Information Technology: 1.14%
Communications Equipment: 1.14%
Cisco Systems Incorporated ±%%		0.52			3-3-2017		1,500,000		1,503,569
Utilities: 1.64%
Electric Utilities: 1.64%
Commonwealth Edison Company		4.70			4-15-2015		524,000		547,147
Public Service Colorado		5.50			4-1-2014		1,600,000		1,606,008
									2,153,155
Total Corporate Bonds and Notes (Cost $22,938,976)									22,993,744
Municipal Obligations: 8.26%
California: 3.03%
California (GO)		0.85			2-1-2015		1,000,000		1,004,640
California (GO)		5.10			8-1-2014		350,000		357,084
Irvine Ranch CA Water District (Water & Sewer Revenue)		2.39			3-15-2014		565,000		565,458
Northern California Transmission Refunding Oregon Project Series B (Utilities Revenue)		5.37			5-1-2015		1,000,000		1,057,510
University of California Series Y-1 (Education Revenue) ±		0.74			7-1-2041		1,000,000		1,000,060
									3,984,752

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

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage Conservative Income Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Illinois: 1.43%
Chicago IL Midway Airport Series C (Airport Revenue)		1.32	%		1-1-2016	$	600,000	$	608,562
Illinois (GO)		4.96			3-1-2016		1,175,000		1,265,369
									1,873,931
Indiana: 0.38%
Indiana Bond Bank Taxable School Severance Funding (Miscellaneous Revenue)		0.66			1-15-2015		500,000		502,415
New Jersey: 0.77%
New Jersey Building Authority Series B (Miscellaneous Revenue)		0.75			6-15-2015		1,000,000		1,006,190
New York: 1.53%
Suffolk County NY TAN Series I (GO)		1.50			8-14-2014		2,000,000		2,010,780
Ohio: 0.27%
JobsOhio Beverage Systems Statewide Liquor Profits Senior Lien Series 2013-B (Miscellaneous Revenue)		0.87			1-1-2015		350,000		351,652
South Carolina: 0.85%
Lancaster SC Educational Assistance Program Incorporated Installment Purchase Refunding Bonds School District Series 2013-A (Miscellaneous Revenue)		0.73			12-1-2014		355,000		356,367
South Carolina State Public Service Authority Series D (GO) ±		1.03			6-1-2015		760,000		763,374
									1,119,741
Total Municipal Obligations (Cost $10,788,691)									10,849,461
Non-Agency Mortgage Backed Securities: 2.43%
Bear Stearns Commercial Mortgage Securities Incorporated Series 2005-T20 Class A4A ±		5.14			10-12-2042		920,000		972,612
Citigroup/Deutsche Bank Commercial Mortgage Trust Pass-Through Certificate Series 2005-CD1 Class A4 ±		5.22			7-15-2044		500,000		527,829
Commercial Mortgage Trust Pass-Through Ceriificate Series 2005-C6 Class A5A ±		5.12			6-10-2044		599,273		628,661
JPMorgan Chase Commercial Mortgage Securities Trust Series 2005-LDP3 Class A4A ±		4.94			8-15-2042		497,766		520,389
JPMorgan Chase Commercial Mortgage Securities Trust Series 2005-LDP5 Class A4 ±		5.24			12-15-2044		515,000		546,136
Total Non-Agency Mortgage Backed Securities (Cost $3,190,082)									3,195,627
Yankee Corporate Bonds and Notes: 20.95%
Consumer Discretionary: 1.15%
Automobiles: 1.15%
Volkswagen International Finance NV 144A		1.63			3-22-2015		1,500,000		1,515,162
Consumer Staples: 1.23%
Tobacco: 1.23%
BAT International Finance plc 144A		1.40			6-5-2015		1,600,000		1,615,837
Energy: 0.71%
Oil, Gas & Consumable Fuels: 0.71%
BP Capital Markets plc		3.88			3-10-2015		900,000		932,032

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

12 Wells Fargo Advantage Conservative Income Fund Portfolio of investments—February 28, 2014 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Financials: 16.03%
Banks: 13.53%
ABN Amro Bank NV ±144A		1.04	%		10-28-2016	$	2,000,000	$	2,010,004
ANZ New Zealand International Limited of London 144A		1.85			10-15-2015		1,050,000		1,070,012
Banque Federative du Credit Mutuel SA ±144A		1.09			1-20-2017		1,000,000		1,000,287
Barclays Bank plc		5.20			7-10-2014		750,000		762,524
Export-Import Bank of Korea ±		0.99			1-14-2017		500,000		503,535
Export-Import Bank of Korea		5.88			1-14-2015		750,000		783,539
ING Bank NV 144A		2.00			9-25-2015		1,000,000		1,017,364
Kookmin Bank ±144A		1.11			1-27-2017		1,000,000		1,003,860
Kookmin Bank ±144A		1.49			10-11-2016		500,000		506,540
Lloyds TSB Bank plc 144A		4.38			1-12-2015		1,500,000		1,547,403
Macquarie Bank Limited 144A		3.45			7-27-2015		1,000,000		1,034,364
National Australia Bank of New York ±		0.79			7-25-2016		700,000		703,841
Nationwide Building Society 144A		4.65			2-25-2015		1,500,000		1,555,140
Rabobank Nederland 144A		3.20			3-11-2015		900,000		925,371
Royal Bank of Scotland plc		4.88			3-16-2015		850,000		885,360
Royal Bank of Scotland plc 144A		4.88			8-25-2014		500,000		509,698
Sumitomo Mitsui Trust Bank Limited ±144A		1.02			9-16-2016		750,000		755,075
Svenska Handelsbanken AB ±		0.72			9-23-2016		700,000		703,193
Westpac Banking Corporation ±		0.66			11-25-2016		500,000		501,749
									17,778,859
Diversified Financial Services: 2.50%
Abbey National Treasury Services plc		2.88			4-25-2014		500,000		501,748
Abbey National Treasury Services plc 144A		3.88			11-10-2014		1,250,000		1,278,810
Deutsche Bank AG London		3.88			8-18-2014		500,000		507,957
UBS AG (Stamford)		3.88			1-15-2015		961,000		989,730
									3,278,245
Materials: 0.39%
Metals & Mining: 0.39%
Rio Tinto Finance USA Limited		8.95			5-1-2014		500,000		506,602
Telecommunication Services: 1.05%
Wireless Telecommunication Services: 1.05%
America Movil SAB de CV ±		1.24			9-12-2016		850,000		861,455
America Movil SAB de CV		5.75			1-15-2015		500,000		520,625
									1,382,080
Utilities: 0.39%
Electric Utilities: 0.39%
Korea Electric Power Corporation 144A		5.50			7-21-2014		500,000		508,897
Total Yankee Corporate Bonds and Notes (Cost $27,438,355)									27,517,714
Short-Term Investments: 29.58%
Commercial Paper: 26.88%
Anglesea Funding LLC 144A(p)		0.35			5-28-2014		2,000,000		1,998,328

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

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage Conservative Income Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Commercial Paper (continued)
Antalis US Funding Corporation 144A(p)		0.01	%		5-5-2014	$	900,000	$	899,654
Atlantic Asset Securitization LLC 144A		0.21			4-15-2014		1,500,000		1,499,624
Bedford Row Funding Corporation 144A(p)		0.28			5-19-2014		1,250,000		1,249,251
Bennington Stark Capital Company LLC 144A(p)		0.44			6-2-2014		2,200,000		2,197,495
CNPC Finance (HK) Limited 144A(p)		0.38			4-15-2014		2,500,000		2,498,806
Collateralized Commercial Paper Company II LLC (p)		0.41			10-16-2014		2,000,000		1,994,956
GDF Suez 144A		0.24			3-25-2014		1,000,000		999,853
ING (U.S.) Funding LLC		0.32			7-10-2014		1,000,000		998,889
Institutional Secured Funding LLC 144A(p)		0.25			3-11-2014		3,000,000		2,999,779
LMA Americas LLC 144A(p)		0.20			3-19-2014		2,200,000		2,199,774
Mountcliff Funding LLC 144A(p)		0.39			8-7-2014		2,000,000		1,996,686
Natixis US Finance Company LLC		0.35			5-27-2014		950,000		949,193
Natixis US Finance Company LLC		0.42			5-23-2014		1,250,000		1,248,819
Ridgefield Funding Company LLC 144A(p)		0.22			5-6-2014		3,000,000		2,998,773
Sinopec Century Bright Capital Investment Limited 144A		0.23			3-7-2014		1,000,000		999,966
Sinopec Century Bright Capital Investment Limited 144A		0.01			3-12-2014		1,000,000		999,923
Sinopec Century Bright Capital Investment Limited 144A		0.38			4-11-2014		1,000,000		999,599
Starbird Funding Corporation 144A(p)		0.19			5-12-2014		3,000,000		2,998,833
Suncorp Group Limited 144A		0.55			7-10-2014		1,100,000		1,097,832
Suncorp Group Limited 144A		0.01			1-29-2015		1,500,000		1,492,807
									35,318,840
	Yield					Shares
Investment Companies: 2.70%
Wells Fargo Advantage Cash Investment Money Market Fund, Select Class (u)(l)##		0.07					3,542,157		3,542,157
						Principal
U.S. Treasury Securities: 0.00%
U.S. Treasury Bill #(z)		0.00			3-20-2014	$	5,000		5,000
Total Short-Term Investments (Cost $38,865,997)									38,865,997

Total investments in securities (Cost $134,256,611) *	102.35	%		134,475,610
Other assets and liabilities, net	(2.35	)		(3,083,146	)
Total net assets	100.00	%	$	131,392,464

± 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.

(p) Asset-backed commercial paper

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

(l) Investment in an affiliate

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

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

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

* Cost for federal income tax purposes is $134,256,611 and unrealized appreciation (depreciation) consists of:

Gross unrealized appreciation	$	232,413
Gross unrealized depreciation		(13,414	)
Net unrealized appreciation	$	218,999

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

14 Wells Fargo Advantage Conservative Income Fund Statement of assets and liabilities—February 28, 2014 (unaudited)

Assets
Investments
In unaffiliated securities, at value (see cost below)	$	130,933,453
In affiliated securities, at value (see cost below)		3,542,157
Total investments, at value (see cost below)		134,475,610
Receivable for interest		461,919
Receivable for daily variation margin on open futures contracts		469
Prepaid expenses and other assets		9,794
Total assets		134,947,792
Liabilities
Dividends payable		5,300
Payable for investments purchased		3,499,970
Advisory fee payable		4,622
Due to other related parties		13,424
Accrued expenses and other liabilities		32,012
Total liabilities		3,555,328
Total net assets	$	131,392,464
NET ASSETS CONSIST OF
Paid-in capital	$	131,165,102
Accumulated net realized gains on investments		9,329
Net unrealized gains on investments		218,033
Total net assets	$	131,392,464
COMPUTATION OF NET ASSET VALUE PER SHARE1
Net assets – Institutional Class	$	131,392,464
Shares outstanding – Institutional Class		13,112,377
Net asset value per share – Institutional Class		$10.02
Investments in unaffiliated securities, at cost	$	130,714,454
Investments in affiliated securities, at cost	$	3,542,157
Total investments, at cost	$	134,256,611

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

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

Statement of operations—six months ended February 28, 2014 (unaudited) Wells Fargo Advantage Conservative Income Fund 15

Investment income
Interest**	$	338,985
Income from affiliated securities		481
Total investment income		339,466
Expenses
Advisory fee		97,555
Administration fees
Fund level		24,389
Institutional Class		39,022
Custody and accounting fees		3,375
Professional fees		20,556
Registration fees		15,628
Shareholder report expenses		11,946
Trustees’ fees and expenses		6,033
Other fees and expenses		1,289
Total expenses		219,793
Less: Fee waivers and/or expense reimbursements		(88,093	)
Net expenses		131,700
Net investment income		207,766
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		39,889
Futures transactions		(6,838	)
Net realized gains on investments		33,051
Net change in unrealized gains (losses) on:
Unaffiliated securities		277,453
Futures transactions		(966	)
Net change in unrealized gains (losses) on investments		276,487
Net realized and unrealized gains (losses) on investments		309,538
Net increase in net assets resulting from operations	$	517,304
** Net of foreign interest withholding taxes in the amount of		$127

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

16 Wells Fargo Advantage Conservative Income Fund Statement of changes in net assets

	Six months ended February 28, 2014 (unaudited)						Year ended August 31, 20131
Operations
Net investment income				$	207,766				$	55,349
Net realized gains (losses) on investments					33,051					(13,432	)
Net change in unrealized gains (losses) on investments					276,487					(58,454	)
Net increase (decrease) in net assets resulting from operations					517,304					(16,537	)
Distributions to shareholders from
Net investment income
Institutional Class					(207,766	)				(55,808	)
Net realized gains
Institutional Class					(10,290	)				0
Total distributions to shareholders					(218,056	)				(55,808	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Institutional Class		9,404,779			94,102,963			5,000,000		50,000,000
Reinvestment of distributions
Institutional Class		19,558			195,829			5,588		55,808
Payment for shares redeemed
Institutional Class		(1,317,548	)		(13,189,039	)		0		0
Net increase in net assets resulting from capital share transactions					81,109,753					50,055,808
Total increase in net assets					81,409,001					49,983,463
Net assets
Beginning of period					49,983,463					0
End of period				$	131,392,464				$	49,983,463
Undistributed net investment income				$	0				$	0

1. For the period from May 31, 2013 (commencement of operations) to August 31, 2013

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

Financial highlights Wells Fargo Advantage Conservative Income Fund 17

(For a share outstanding throughout each period)

	Six months ended February 28, 2014			Year ended
INSTITUTIONAL CLASS	(unaudited)			August 31, 20131
Net asset value, beginning of period	$	9.99		$	10.00
Net investment income		0.02			0.01
Net realized and unrealized gains (losses) on investments		0.03			(0.01	)
Total from investment operations		0.05			0.00
Distributions to shareholders from
Net investment income		(0.02	)		(0.01	)
Net realized gains		(0.00	)2		0.00
Total distributions to shareholders		(0.02	)		(0.01	)
Net asset value, end of period	$	10.02		$	9.99
Total return3		0.52	%		0.01	%
Ratios to average net assets (annualized)
Gross expenses		0.45	%		0.74	%
Net expenses		0.27	%		0.27	%
Net investment income		0.43	%		0.44	%
Supplemental data
Portfolio turnover rate		33	%		10	%
Net assets, end of period (000s omitted)		$131,392			$49,983

1. For the period from May 31, 2013 (commencement of class operations) to August 31, 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.

18 Wells Fargo Advantage Conservative 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 the Wells Fargo Advantage Conservative 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 (generally 4 p.m. Eastern Time).

Fixed income securities acquired with maturities exceeding 60 days are valued based on evaluated bid prices provided by an independent pricing service which may utilize both transaction data and market information such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data. If prices are not available from the independent pricing service or prices received are deemed not representative of market value, prices will be obtained from an independent broker-dealer or otherwise determined based on the Fund’s Valuation Procedures.

Short-term securities, with maturities of 60 days or less at time of purchase, 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.

Futures that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price.

Investments in registered open-end investment companies are valued at net asset value.

Investments which are not valued using any of the methods discussed above are valued at their fair value, as determined in good faith by the Board of Trustees of the Fund. 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 values, to assess the continued appropriateness of the fair valuation methodologies used. These securities are fair valued on a day-to-day basis, taking into consideration changes to appropriate market information and any significant changes to the inputs considered in the valuation process until there is a readily available price provided on an exchange or by an independent pricing service. Valuations received from an independent pricing service or independent broker-dealer quotes are periodically validated by comparisons to most recent trades and valuations provided by other independent pricing services in addition to the review of prices by the adviser and/or subadviser. Unobservable inputs used in determining fair valuations are identified based on the type of security, taking into consideration factors utilized by market participants in valuing the investment, knowledge about the issuer and the current market environment.

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.

Notes to financial statements (unaudited) Wells Fargo Advantage Conservative Income Fund 19

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.

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.

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

Distributions to shareholders

Distributions to shareholders from net investment income are accrued daily and paid monthly. 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, 2013, the Fund had capital loss carryforwards which consisted of $13,432 in short-term capital losses.

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.

20 Wells Fargo Advantage Conservative Income Fund Notes to financial statements (unaudited)

As of February 28, 2014, the inputs used in valuing investments in securities were as follows:

Investments in securities	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Asset-backed securities	$	0	$	29,053,067	$	0	$	29,053,067
Certificates of deposit		0		2,000,000		0		2,000,000
Corporate bonds and notes		0		22,993,744		0		22,993,744
Municipal obligations		0		10,849,461		0		10,849,461
Non-agency mortgage backed securities		0		3,195,627		0		3,195,627
Yankee corporate bonds and notes		0		27,517,714		0		27,517,714
Short-term investments
Commercial paper		0		35,318,840		0		35,318,840
Investment companies		3,542,157		0		0		3,542,157
U.S. Treasury securities		5,000		0		0		5,000
	$	3,547,157	$	130,928,453	$	0	$	134,475,610

As of February 28, 2014, the inputs used in valuing the Fund’s other financial instruments were as follows:

Other financial instruments	Quoted prices (Level 1)			Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Futures contracts	$	(966	)*	$	0	$	0	$	(966	)

* Amount represents the net unrealized losses.

Transfers in and transfers out are recognized at the end of the reporting period. For the six months ended February 28, 2014, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

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 0.20% and declining to 0.15% as the average daily net assets of the Fund increase. For the six months ended February 28, 2014, the advisory fee was equivalent to an annual rate of 0.20% 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 and an indirect, wholly owned subsidiary of Wells Fargo, is the subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.10% and declining to 0.05% as the average daily net assets of the Fund increase.

Administration and transfer agent fees

The Trust has entered into an administration agreement with Funds Management. Under this agreement, for providing administrative services, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers, Funds Management is entitled to receive from the Fund an annual fund level administration fee starting at 0.05% and declining to 0.03% as the average daily net assets of the Fund increase and for Institutional Class shares a class level administration fee of 0.08% of the average daily net assets.

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 0.27% for Institutional Class shares.

Notes to financial statements (unaudited) Wells Fargo Advantage Conservative Income Fund 21

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, 2014 were $79,992,850 and $21,829,386, respectively.

6. DERIVATIVE TRANSACTIONS

During the six months ended February 28, 2014, the Fund entered into futures contracts to speculate on interest rates and to help manage the duration of the portfolio.

At February 28, 2014, the Fund had short futures contracts outstanding as follows:

Expiration date	Counterparty	Contracts		Type		Contract value at February 28, 2014		Unrealized losses
6-30-2014	JPMorgan		15 Short		2-Year U.S. Treasury Notes	$	3,298,125	$	(966	)

The Fund had an average notional amount of $1,038,199 in short futures contracts during the six months ended February 28, 2014.

On February 28, 2014, the cumulative unrealized losses on futures contracts in the amount of $966 are reflected in net unrealized gains on investments on the Statement of Assets and Liabilities. The receivable for daily variation margin on open futures contracts reflected in the Statement of Assets and Liabilities only represents the current day’s variation margin. The realized losses and change in unrealized gains (losses) on futures contracts are reflected in the Statement of Operations.

For certain types of derivative transactions, the Fund has entered into International Swaps and Derivatives Association, Inc. master agreements (“ISDA Master Agreements”) or similar agreements with approved counterparties. The ISDA Master Agreements or similar agreements may have requirements to deliver/deposit securities or cash to/with an exchange or broker-dealer as collateral and allows the Fund to offset, with each counterparty, certain derivative financial instrument’s assets and/or liabilities with collateral held or pledged. Collateral requirements differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives while collateral terms are contract specific for over-the-counter traded. Cash collateral that has been pledged to cover obligations of the Fund under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Portfolio of Investments. With respect to balance sheet offsetting, absent an event of default by the counterparty or a termination of the agreement, the reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities are not offset across transactions between the Fund and the applicable counterparty. A reconciliation of the gross amounts on the Statement of Assets and Liabilities to the net amounts by derivative type, including any collateral exposure, is as follows:

Derivative type	Counterparty	Gross amounts of assets in the Statement of Assets and Liabilities		Amounts subject to netting agreements		Collateral received		Net amount
Futures - variation margin	JPMorgan	$	469	$	0	$	0	$	469

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, 2014, the Fund paid $42 in commitment fees.

For the six months ended February 28, 2014, 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.

22 Wells Fargo Advantage Conservative 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 Conservative Income Fund 23

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers listed in the table below acts in identical capacities for each fund in the WellsFargo Advantage family of funds, which consists of 132 mutual 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 Harbor 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 50 portfolios as of 12/16/2013); 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 Conservative 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 73 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 59 funds and Assistant Treasurer of 73 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 Conservative Income 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 —  Columbian Peso

CLP —  Chilean peso

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 —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

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

NGN —  Nigerian naira

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

RON —  Romanian lei

RUB —  Russian ruble

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

THB —  Thai baht

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

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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

© 2014 Wells Fargo Funds Management, LLC. All rights reserved.

223529 04-14 SA265/SAR265 02-14

Wells Fargo Advantage

Government Securities Fund

Semi-Annual Report

February 28, 2014

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	12
Statement of operations	13
Statement of changes in net assets	14
Financial highlights	15
Notes to financial statements	21
Other information	27
List of abbreviations	30

The views expressed and any forward-looking statements are as of February 28, 2014, 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 and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

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

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Fixed-income markets shifted during the period, driven by vacillations between U.S. Treasury yield increases and subsequent declines.

Reassurances from the Fed that a highly accommodative monetary policy would continue throughout 2014 inspired price rallies across both the investment-grade and high-yield bond markets.

Dear Valued Shareholder:

We are pleased to offer you this semi-annual report for the Wells Fargo Advantage Government Securities Fund for the six-month period that ended February 28, 2014. Fixed-income markets shifted during the period, driven by vacillations between U.S. Treasury yield increases and subsequent declines. However, on the whole, investment-grade (measured by the Barclays U.S. Aggregate Bond Index¹) and high-yield markets (measured by the Barclays U.S. High Yield Bond Index²) generated positive returns during the period, notably benefiting from the strong price improvement and declining U.S. Treasury yields that occurred in September and October of 2013 as well as the opening months of 2014. Although the returns of the U.S. high-yield market have often been positively correlated with U.S. equity returns (measured by the S&P 500 Index³) over the long-run, over the period, high-yield (measured by the Barclays U.S. High Yield Bond Index) generally performed well even when equities did not. The lower-rated corporate bond credit tiers outperformed the respectively higher-rated investment-grade credit tiers during the period.

A decline in bond prices was halted by the Fed’s postponement of tapering its bond-buying program.

Before the six-month period began, equity markets rallied, most notably in May and June of 2013. This led to a sharp increase in U.S. Treasury yields and declining valuations for much of the fixed-income markets (measured by the Barclays U.S. Aggregate Bond Index). However, in July and August 2013, that equity exuberance quieted a bit, and fixed-income markets stabilized. Returns across the fixed-income markets were largely negative in investment-grade and high-yield markets but modest in comparison with the declines in May and June of 2013.

But, by September and October of 2013, investment-grade and high-yield bond markets began generating positive returns yet again, as the Federal Reserve (Fed) backtracked on its intentions to taper its quantitative easing program, postponing it until 2014, at the earliest. This created a temporary rally in bonds that lasted until around November 20, 2013, when notes were released from the Fed’s October 2013 meeting that tapering of the bond-buying programs would not be postponed beyond January 2014. In response, long-term U.S. Treasury yields and mortgage rates ratcheted higher on expectations for an unwinding of monetary accommodation in the upcoming months. This led to declines in pricing across much of the core fixed-income markets (measured by the Barclays U.S. Aggregate Bond Index). U.S. high-yield markets were better able to absorb the shift in U.S. Treasury yields and continued to provide positive returns along with rallies in the equity markets.

Favorable conditions for fixed-income markets were restored in January and February 2014.

Seemingly much to the surprise of many everyday investors and seasoned investment professionals alike, fixed-income markets (measured by the Barclays U.S. Aggregate Bond Index) largely outperformed U.S. equity markets (measured by the S&P 500 Index) during the opening months of 2014. A pullback in equity exuberance in January and reassurances from the Fed that a highly accommodative monetary policy would continue throughout 2014 inspired price rallies across both the investment-grade and high-yield bond markets. U.S. Treasury yields declined in January 2014 and corporate bonds and mortgage-backed securities performed notably well. U.S. high-yield securities generated positive returns in January 2014 but lagged the rally across the investment-grade bond markets. This theme reversed in February 2014, as high-yield sectors rallied and investment-grade sectors performed well but not to the extent of the lowest-rated credit tiers.

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

One positive takeaway for bond investors that helped fuel the fixed-income (measured by the Barclays U.S. Aggregate Bond Index) rallies was former Fed Chairman Bernanke’s guidance at the end of 2013. He indicated that the tapering of the Fed’s bond-buying program would proceed at a slow pace and that a reduction in quantitative easing should not be equivocated with a tightening of monetary policy. The distinction was important—although the bond-buying program was declining in volume, it was, nonetheless, still continuing. Additionally, the federal funds target rate would remain unchanged for the foreseeable future, with the implications that it would not increase until the bond-buying program was fully disbanded. These were important statements for fixed-income investors that helped bolster U.S. fixed-income valuations in the opening months of 2014.

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

Periods of investment uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Advantage Funds offers more than 100 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. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

Thank you for choosing to invest with Wells Fargo 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

1. The Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and CMBS. You cannot invest directly in an index.

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

3. The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock’s weight in the index proportionate to its market value. You cannot invest directly in an index

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

Notice to shareholders

The Fund and Wells Fargo Funds Management, LLC (“Funds Management”) have received an exemptive order from the SEC that permits Funds Management, subject to the approval of the Board of Trustees of the Fund, to select or replace certain subadvisers to manage all or a portion of the Fund’s assets and enter into, amend or terminate a sub-advisory agreement with certain subadvisers without obtaining shareholder approval (“Multi-manager Structure”). The Multi-manager Structure applies to subadvisers that are not affiliated with Funds Management or the Fund, except to the extent that affiliation arises solely because such subadvisers provide sub-advisory services to the Fund (“Non-affiliated Subadvisers”), as well as subadvisers that are indirect or direct wholly-owned subsidiaries of Funds Management or of another company that, indirectly or directly, wholly owns Funds Management (“Wholly-owned Subadvisers”).

Pursuant to the SEC order, Funds Management, with the approval of the Board of Trustees, has the discretion to terminate any subadvisers and allocate and reallocate the Fund’s assets among any other Non-affiliated Subadvisers or Wholly-owned Subadvisers. Funds Management, subject to oversight and supervision by the Board of Trustees, has responsibility to continue to oversee any subadvisers to the Fund and to recommend, for approval by the Board of Trustees, the hiring, termination and replacement of subadvisers for the Fund. In the event that a new subadviser is hired pursuant to the Multi-manager Structure, the Fund is required to provide notice to shareholders within 90 days.

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

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6 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, 2014

		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		(4.94	)		2.72		3.43		(0.46	)		3.67		3.90		0.88		0.88
Class B (WGSBX)*	7-18-2008		(6.20	)		2.52		3.38		(1.20	)		2.88		3.38		1.63		1.63
Class C (WGSCX)	12-26-2002		(2.21	)		2.88		3.07		(1.21	)		2.88		3.07		1.63		1.63
Administrator Class (WGSDX)	4-8-2005		–			–		–		(0.25	)		3.87		4.13		0.82		0.67
Institutional Class (SGVIX)	8-31-1999		–			–		–		(0.09	)		4.07		4.34		0.55		0.51
Investor Class (STVSX)	10-29-1986		–			–		–		(0.49	)		3.61		3.87		0.91		0.91
Barclays U.S. Aggregate excluding Credit Bond Index4	–		–			–		–		(0.15	)		3.98		4.31		–		–
Barclays Intermediate U.S. Government Bond Index5	–		–			–		–		(0.26	)		2.71		3.69		–		–

* 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 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, which 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 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 Government Securities Fund 7

Ten largest long-term holdings6 (%) as of February 28, 2014
U.S. Treasury Note, 0.25%, 5-31-2014	9.69
U.S. Treasury Note, 0.13%, 7-31-2014	9.69
U.S. Treasury Note, 0.50%, 10-15-2014	9.05
U.S. Treasury Note, 0.38%, 3-15-2015	6.16
FHLMC, 3.50%, 3-1-2044	6.14
FNMA, 3.00%, 3-1-2044	5.93
FNMA, 4.00%, 3-1-2044	4.28
GNMA, 4.50%, 3-1-2044	3.40
U.S. Treasury Note, 1.38%, 2-28-2019	2.72
FNMA, 5.00%, 8-1-2040	2.31

Portfolio allocation7 as of February 28, 2014

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

2. Reflects the expense ratios as stated in the most recent prospectuses, which include the impact of 0.03% in acquired fund fees and expenses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report, which do not include acquired fund fees and expenses.

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 0.85% for Class A, 1.60% for Class B, 1.60% for Class C, 0.64% for Administrator Class, 0.48% 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. 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 10-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.

8 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, 2013 to February 28, 2014.

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 9-1-2013		Ending account value 2-28-2014		Expenses paid during the period1		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,022.87	$	4.31		0.86	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.53	$	4.31		0.86	%
Class B
Actual	$	1,000.00	$	1,018.25	$	7.96		1.59	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.91	$	7.95		1.59	%
Class C
Actual	$	1,000.00	$	1,018.16	$	8.06		1.61	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.81	$	8.05		1.61	%
Administrator Class
Actual	$	1,000.00	$	1,024.01	$	3.21		0.64	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.62	$	3.21		0.64	%
Institutional Class
Actual	$	1,000.00	$	1,024.82	$	2.41		0.48	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.41	$	2.41		0.48	%
Investor Class
Actual	$	1,000.00	$	1,022.72	$	4.46		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).

Summary portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage Government Securities Fund 9

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-CSRS, 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: 66.43%
FDIC Series 2010-S1 Class 1A ± 144A		0.71	%		2-25-2048	$	9,668,791	$	9,708,172		0.73	%
FDIC Series 2013-R1 Class A 144A		1.15			3-25-2033		6,581,242		6,394,135		0.48
FHLB		5.63			3-14-2036		6,150,000		7,551,616		0.57
FHLMC		2.38			1-13-2022		10,415,000		10,263,639		0.77
FHLMC %%		3.50			3-1-2044		80,990,000		81,888,487		6.14
FHLMC %%		4.00			3-1-2044		11,875,000		12,413,086		0.93
FHLMC		5.50			7-1-2035		10,764,843		11,975,290		0.90
FHLMC		5.50			12-1-2038		7,071,545		7,751,900		0.58
FHLMC		6.00			5-25-2043		7,321,620		8,358,002		0.63
FHLMC		0.20-10.50			10-1-2014 to 7-25-2043		112,618,466		71,906,187		5.40
FNMA		1.75			5-30-2019		19,000,000		18,934,241		1.42
FNMA %%		3.00			3-1-2029		18,235,000		18,867,527		1.42
FNMA %%		3.00			3-1-2044		81,485,000		79,142,306		5.93
FNMA %%		3.50			3-1-2029		15,180,000		16,045,734		1.20
FNMA %%		3.50			3-1-2044		28,175,000		28,558,005		2.14
FNMA %%		4.00			3-1-2029		12,615,000		13,458,628		1.01
FNMA %%		4.00			3-1-2044		54,450,000		57,049,138		4.28
FNMA		4.15			7-1-2014		10,294,702		10,302,902		0.77
FNMA %%		4.50			3-1-2029		11,445,000		12,217,538		0.92
FNMA %%		4.50			3-1-2044		17,387,000		18,671,329		1.40
FNMA %%		5.00			8-1-2040		28,108,758		30,864,115		2.31
FNMA		5.50			6-1-2034		10,629,334		11,795,141		0.88
FNMA %%		6.00			3-1-2044		21,385,000		23,804,178		1.79
FNMA		0.36-11.25			4-1-2014 to 8-25-2047		165,139,668		180,157,228		13.50
FNMA Series 2002-T19 Class A1		6.50			7-25-2042		6,867,133		7,889,986		0.59
GNMA		4.00			6-20-2042		19,790,116		21,019,415		1.58
GNMA %%		4.50			3-1-2044		41,770,000		45,379,187		3.40
GNMA		5.00			7-20-2040		9,724,002		10,781,649		0.81
GNMA		0.00-13.00			11-15-2014 to 2-16-2050		143,819,352		13,037,441		0.97
GNMA Series 2006-32 Class C ±		5.51			11-16-2038		12,510,000		13,531,379		1.01
GNMA Series 2006-68 Class D ±		5.31			12-16-2037		12,520,000		13,776,908		1.03
GNMA Series 2007-35 Class NF ±		0.25			10-16-2035		8,556,535		8,550,691		0.64
Other securities									4,054,131		0.30
Total Agency Securities (Cost $869,713,654)									886,099,311		66.43
Municipal Obligations: 0.60%
Arkansas: 0.00%
Other securities									35,550		0.00
Texas: 0.60%
Retama TX Development Corporation (Miscellaneous Revenue)		10.00			12-15-2020		5,405,000		8,023,398		0.60
Total Municipal Obligations (Cost $6,882,723)									8,058,948		0.60

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

10 Wells Fargo Advantage Government Securities Fund Summary portfolio of investments—February 28, 2014 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Non-Agency Mortgage Backed Securities: 6.04%
Citigroup Commercial Mortgage Trust Series 2006-C4 Class A3 ±		5.78	%		3-15-2049	$	9,917,003	$	10,757,122		0.81	%
Citigroup Commercial Mortgage Trust Series 2006-C5 Class A4		5.43			10-15-2049		11,280,000		12,345,983		0.92
GE Capital Commercial Mortgage Corporation Series 2005-C3 Class A7A ±		4.97			7-10-2045		9,360,000		9,778,813		0.73
Lehman Brothers UBS Commercial Mortgage Trust Series 2006-C1 Class A4		5.16			2-15-2031		13,165,000		13,965,129		1.05
National Credit Union Administration Guaranteed Notes Series 2010-C1 Class APT		2.65			10-29-2020		8,600,617		8,871,536		0.66
National Credit Union Administration Guaranteed Notes		0.54-2.90			3-6-2020 to 10-29-2020		9,391,838		9,526,425		0.72
Other securities									15,368,254		1.15
Total Non-Agency Mortgage Backed Securities (Cost $81,236,038)									80,613,262		6.04
U.S. Treasury Securities: 49.23%
U.S. Treasury Bond		2.75			8-15-2042		10,585,000		8,980,716		0.67
U.S. Treasury Bond		3.75			8-15-2041		20,565,000		21,323,334		1.60
U.S. Treasury Bond		4.50			2-15-2036		7,475,000		8,759,766		0.66
U.S. Treasury Bond		4.63			2-15-2040		20,150,000		24,088,700		1.81
U.S. Treasury Bond		6.25			8-15-2023		18,460,000		24,287,877		1.82
U.S. Treasury Bond		7.25			8-15-2022		4,685,000		6,456,881		0.48
U.S. Treasury Note		0.13			7-31-2014		129,195,000		129,215,154		9.69
U.S. Treasury Note ##		0.25			5-31-2014		129,170,000		129,225,543		9.69
U.S. Treasury Note ##		0.38			3-15-2015		82,035,000		82,220,891		6.16
U.S. Treasury Note ##		0.38			11-15-2015		30,605,000		30,667,159		2.30
U.S. Treasury Note ##		0.50			10-15-2014		120,390,000		120,681,585		9.05
U.S. Treasury Note		1.00			8-31-2016		12,240,000		12,390,136		0.93
U.S. Treasury Note		1.38			2-28-2019		36,475,000		36,218,544		2.72
U.S. Treasury Note		2.75			11-15-2023		21,845,000		22,077,103		1.65
Total U.S. Treasury Securities (Cost $654,764,813)									656,593,389		49.23
Yankee Corporate Bonds and Notes: 2.91%
Financials: 2.91%
Banks: 2.91%
Bank of Nova Scotia 144A		1.65			10-29-2015		13,235,000		13,496,629		1.01
Canadian Imperial Bank 144A		0.90			9-19-2014		8,355,000		8,385,788		0.63
Nordea Eiendomskreditt 144A		1.88			4-7-2014		10,430,000		10,445,228		0.79
Other securities									6,437,216		0.48
Total Yankee Corporate Bonds and Notes (Cost $38,374,786)									38,764,861		2.91
	Yield					Shares
Short-Term Investments: 4.48%
Investment Companies: 1.27%
Wells Fargo Advantage Government Money Market Fund, Institutional Class (u)(l)##		0.01					16,851,793		16,851,793		1.27

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

Summary portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage Government Securities Fund 11

Security name	Interest rate			Maturity date		Principal		Value			Percent of net assets
U.S. Treasury Securities: 3.21%
U.S. Treasury Bill (z)#		0.03	%		3-20-2014	$	1,400,000	$	1,399,980			0.10	%
U.S. Treasury Bill (z)#		0.04			3-20-2014		41,450,000		41,449,119			3.11
									42,849,099			3.21
Total Short-Term Investments (Cost $59,700,871)									59,700,892			4.48
Total investments in securities
(Cost $1,710,672,885)*									1,729,830,663			129.69
Other assets and liabilities, net									(396,059,275	)		(29.69	)
Total net assets								$	1,333,771,388			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.

%% Security issued on a when-issued basis.

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

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

(l) Investment in an affiliate

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

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

* Cost for federal income tax purposes is $1,712,116,317 and unrealized appreciation (depreciation) consists of:

Gross unrealized appreciation	$	31,158,764
Gross unrealized depreciation		(13,444,418	)
Net unrealized appreciation	$	17,714,346

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

12 Wells Fargo Advantage Government Securities Fund Statement of assets and liabilities—February 28, 2014 (unaudited)

Assets
Investments
In unaffiliated securities, at value (see cost below)	$	1,712,978,870
In affiliated securities, at value (see cost below)		16,851,793
Total investments, at value (see cost below)		1,729,830,663
Cash		301,934
Receivable for investments sold		15,306,028
Principal paydown receivable		136,930
Receivable for daily variation margin on open futures contracts		21,736
Receivable for Fund shares sold		1,981,118
Receivable for interest		4,412,638
Prepaid expenses and other assets		63,661
Total assets		1,752,054,708
Liabilities
Dividends payable		46,528
Payable for investments purchased		414,290,344
Payable for Fund shares redeemed		2,799,059
Payable for daily variation margin on open futures contracts		269,031
Advisory fee payable		344,371
Distribution fees payable		23,761
Due to other related parties		195,328
Accrued expenses and other liabilities		314,898
Total liabilities		418,283,320
Total net assets	$	1,333,771,388
NET ASSETS CONSIST OF
Paid-in capital	$	1,354,728,182
Overdistributed net investment income		(9,398,601	)
Accumulated net realized losses on investments		(30,840,566	)
Net unrealized gains on investments		19,282,373
Total net assets	$	1,333,771,388
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE1
Net assets – Class A	$	184,204,035
Shares outstanding – Class A		16,829,588
Net asset value per share – Class A		$10.95
Maximum offering price per share – Class A2		$11.47
Net assets – Class B	$	1,664,771
Shares outstanding – Class B		152,125
Net asset value per share – Class B		$10.94
Net assets – Class C	$	36,148,738
Shares outstanding – Class C		3,303,163
Net asset value per share – Class C		$10.94
Net assets – Administrator Class	$	200,138,665
Shares outstanding – Administrator Class		18,292,574
Net asset value per share – Administrator Class		$10.94
Net assets – Institutional Class	$	535,349,226
Shares outstanding – Institutional Class		48,955,556
Net asset value per share – Institutional Class		$10.94
Net assets – Investor Class	$	376,265,953
Shares outstanding – Investor Class		34,355,740
Net asset value per share – Investor Class		$10.95
Investments in unaffiliated securities, at cost	$	1,693,821,092
Investments in affiliated securities, at cost	$	16,851,793
Total investments, at cost	$	1,710,672,885

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, 2014 (unaudited) Wells Fargo Advantage Government Securities Fund 13

Investment income
Interest	$	9,762,863
Income from affiliated securities		12,357
Total investment income		9,775,220
Expenses
Advisory fee		2,612,803
Administration fees
Fund level		346,692
Class A		154,357
Class B		1,537
Class C		31,946
Administrator Class		110,340
Institutional Class		211,416
Investor Class		382,610
Shareholder servicing fees
Class A		241,184
Class B		2,195
Class C		49,916
Administrator Class		270,911
Investor Class		498,085
Distribution fees
Class B		7,204
Class C		149,748
Custody and accounting fees		47,626
Professional fees		40,553
Registration fees		58,009
Shareholder report expenses		79,928
Trustees’ fees and expenses		5,575
Other fees and expenses		26,742
Total expenses		5,329,377
Less: Fee waivers and/or expense reimbursements		(388,853	)
Net expenses		4,940,524
Net investment income		4,834,696
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		11,848,568
Futures transactions		3,158,377
Net realized gains on investments		15,006,945
Net change in unrealized gains (losses) on:
Unaffiliated securities		13,535,191
Futures transactions		(349,500	)
Net change in unrealized gains (losses) on investments		13,185,691
Net realized and unrealized gains (losses) on investments		28,192,636
Net increase in net assets resulting from operations	$	33,027,332

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

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

	Six months ended February 28, 2014 (unaudited)						Year ended August 31, 2013
Operations
Net investment income				$	4,834,696					$	15,501,192
Net realized gains (losses) on investments					15,006,945						(1,664,045	)
Net change in unrealized gains (losses) on investments					13,185,691						(70,187,287	)
Net increase (decrease) in net assets resulting from operations					33,027,332						(56,350,140	)
Distributions to shareholders from
Net investment income
Class A					(1,167,961	)					(1,828,007	)
Class B					(4,313	)					(801	)
Class C					(91,203	)					(14,343	)
Administrator Class					(1,552,594	)					(4,122,563	)
Institutional Class					(4,201,618	)					(7,352,891	)
Investor Class					(2,370,720	)					(4,066,924	)
Net realized gains
Class A					0						(5,787,244	)
Class B					0						(91,631	)
Class C					0						(1,652,441	)
Administrator Class					0						(11,374,048	)
Institutional Class					0						(15,064,172	)
Investor Class					0						(14,139,250	)
Total distributions to shareholders					(9,388,409	)					(65,494,315	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		666,570			7,240,006			2,608,358			29,241,926
Class B		3,264			35,580			4,179			46,967
Class C		51,752			562,749			581,904			6,542,961
Administrator Class		2,319,445			25,161,890			17,563,407			197,163,327
Institutional Class		7,273,349			78,952,125			15,309,231			170,689,174
Investor Class		1,784,642			19,401,537			5,551,759			62,174,744
					131,353,887						465,859,099
Reinvestment of distributions
Class A		94,088			1,020,333			589,275			6,585,929
Class B		334			3,597			6,795			76,052
Class C		3,227			34,774			60,071			672,281
Administrator Class		119,269			1,294,028			596,405			6,657,442
Institutional Class		378,185			4,101,541			1,774,405			19,798,248
Investor Class		212,980			2,311,369			1,574,233			17,613,825
					8,765,642						51,403,777
Payment for shares redeemed
Class A		(2,778,959	)		(30,204,512	)		(6,850,146	)		(76,132,673	)
Class B		(61,964	)		(673,840	)		(212,273	)		(2,365,200	)
Class C		(898,568	)		(9,751,579	)		(3,049,844	)		(33,827,414	)
Administrator Class		(15,682,389	)		(170,331,441	)		(24,665,991	)		(273,105,092	)
Institutional Class		(11,267,870	)		(121,808,424	)		(32,414,586	)		(363,854,199	)
Investor Class		(8,219,364	)		(89,321,194	)		(22,307,918	)		(248,387,251	)
					(422,090,990	)					(997,671,829	)
Net decrease in net assets resulting from capital share transactions					(281,971,461	)					(480,408,953	)
Total decrease in net assets					(258,332,538	)					(602,253,408	)
Net assets
Beginning of period					1,592,103,926						2,194,357,334
End of period				$	1,333,771,388					$	1,592,103,926
Overdistributed net investment income				$	(9,398,601	)				$	(4,844,888	)

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, 2014 (unaudited)			Year ended August 31												Year ended May 31
CLASS A				2013			2012			2011			20101			2010			20092
Net asset value, beginning of period	$	10.77		$	11.48		$	11.23		$	11.16		$	10.89		$	10.71		$	10.45
Net investment income		0.03	3		0.07			0.15			0.25			0.06	3		0.29			0.39	3
Net realized and unrealized gains (losses) on investments		0.22			(0.42	)		0.33			0.16			0.30			0.39			0.34
Total from investment operations		0.25			(0.35	)		0.48			0.41			0.36			0.68			0.73
Distributions to shareholders from
Net investment income		(0.07	)		(0.09	)		(0.17	)		(0.34	)		(0.09	)		(0.41	)		(0.44	)
Net realized gains		0.00			(0.27	)		(0.06	)		0.00			0.00			(0.09	)		(0.03	)
Total distributions to shareholders		(0.07	)		(0.36	)		(0.23	)		(0.34	)		(0.09	)		(0.50	)		(0.47	)
Net asset value, end of period	$	10.95		$	10.77		$	11.48		$	11.23		$	11.16		$	10.89		$	10.71
Total return4		2.29	%		(3.22	)%		4.35	%		3.75	%		3.29	%		6.48	%		7.17	%
Ratios to average net assets (annualized)
Gross expenses		0.87	%		0.85	%		0.86	%		0.85	%		0.86	%		0.89	%		0.90	%
Net expenses		0.86	%		0.85	%		0.86	%		0.85	%		0.86	%		0.89	%		0.90	%
Net investment income		0.54	%		0.67	%		1.35	%		2.31	%		2.10	%		2.71	%		3.65	%
Supplemental data
Portfolio turnover rate		179	%		341	%		327	%		268	%		89	%		194	%		368	%
Net assets, end of period (000s omitted)		$184,204			$202,955			$258,329			$270,253			$326,800			$174,781			$181,342

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.

16 Wells Fargo Advantage Government Securities Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2014 (unaudited)			Year ended August 31												Year ended May 31
CLASS B				2013			2012			2011			20101			2010			20092
Net asset value, beginning of period	$	10.77		$	11.48		$	11.23		$	11.16		$	10.89		$	10.70		$	10.32
Net investment income (loss)		(0.01	)3		(0.03	)		0.08	3		0.15			0.04	3		0.24	3		0.27	3
Net realized and unrealized gains (losses) on investments		0.21			(0.41	)		0.31			0.17			0.30			0.37			0.45
Total from investment operations		0.20			(0.44	)		0.39			0.32			0.34			0.61			0.72
Distributions to shareholders from
Net investment income		(0.03	)		(0.00	)4		(0.08	)		(0.25	)		(0.07	)		(0.33	)		(0.31	)
Net realized gains		0.00			(0.27	)		(0.06	)		0.00			0.00			(0.09	)		(0.03	)
Total distributions to shareholders		(0.03	)		(0.27	)		(0.14	)		(0.25	)		(0.07	)		(0.42	)		(0.34	)
Net asset value, end of period	$	10.94		$	10.77		$	11.48		$	11.23		$	11.16		$	10.89		$	10.70
Total return5		1.83	%		(3.94	)%		3.57	%		2.98	%		3.10	%		5.80	%		7.00	%
Ratios to average net assets (annualized)
Gross expenses		1.60	%		1.60	%		1.61	%		1.60	%		1.60	%		1.63	%		1.65	%
Net expenses		1.59	%		1.60	%		1.61	%		1.60	%		1.60	%		1.63	%		1.65	%
Net investment income (loss)		(0.17	)%		(0.08	)%		0.68	%		1.55	%		1.29	%		2.09	%		2.94	%
Supplemental data
Portfolio turnover rate		179	%		341	%		327	%		268	%		89	%		194	%		368	%
Net assets, end of period (000s omitted)		$1,665			$2,266			$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. For the period from July 18, 2008 (commencement of class operations) to May 31, 2009.

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 17

(For a share outstanding throughout each period)

	Six months ended February 28, 2014 (unaudited)			Year ended August 31												Year ended May 31
CLASS C				2013			2012			2011			20101			2010			2009
Net asset value, beginning of period	$	10.77		$	11.48		$	11.23		$	11.16		$	10.89		$	10.70		$	10.45
Net investment income (loss)		(0.01	)2		(0.02	)		0.07			0.17			0.04	2		0.23			0.30	2
Net realized and unrealized gains (losses) on investments		0.21			(0.42	)		0.32			0.15			0.30			0.38			0.35
Total from investment operations		0.20			(0.44	)		0.39			0.32			0.34			0.61			0.65
Distributions to shareholders from
Net investment income		(0.03	)		(0.00	)3		(0.08	)		(0.25	)		(0.07	)		(0.33	)		(0.37	)
Net realized gains		0.00			(0.27	)		(0.06	)		0.00			0.00			(0.09	)		(0.03	)
Total distributions to shareholders		(0.03	)		(0.27	)		(0.14	)		(0.25	)		(0.07	)		(0.42	)		(0.40	)
Net asset value, end of period	$	10.94		$	10.77		$	11.48		$	11.23		$	11.16		$	10.89		$	10.70
Total return4		1.82	%		(3.94	)%		3.57	%		2.98	%		3.09	%		5.78	%		6.28	%
Ratios to average net assets (annualized)
Gross expenses		1.62	%		1.60	%		1.61	%		1.60	%		1.61	%		1.64	%		1.63	%
Net expenses		1.61	%		1.60	%		1.61	%		1.60	%		1.61	%		1.64	%		1.63	%
Net investment income (loss)		(0.21	)%		(0.08	)%		0.55	%		1.56	%		1.35	%		1.89	%		2.78	%
Supplemental data
Portfolio turnover rate		179	%		341	%		327	%		268	%		89	%		194	%		368	%
Net assets, end of period (000s omitted)		$36,149			$44,647			$75,244			$58,576			$59,580			$34,927			$21,783

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.

18 Wells Fargo Advantage Government Securities Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2014 (unaudited)			Year ended August 31												Year ended May 31
ADMINISTRATOR CLASS				2013			2012			2011			20101			2010			2009
Net asset value, beginning of period	$	10.76		$	11.48		$	11.23		$	11.16		$	10.89		$	10.70		$	10.45
Net investment income		0.04	2		0.09			0.17	2		0.27	2		0.06	2		0.32			0.41	2
Net realized and unrealized gains (losses) on investments		0.22			(0.43	)		0.33			0.16			0.30			0.39			0.34
Total from investment operations		0.26			(0.34	)		0.50			0.43			0.36			0.71			0.75
Distributions to shareholders from
Net investment income		(0.08	)		(0.11	)		(0.19	)		(0.36	)		(0.09	)		(0.43	)		(0.47	)
Net realized gains		0.00			(0.27	)		(0.06	)		0.00			0.00			(0.09	)		(0.03	)
Total distributions to shareholders		(0.08	)		(0.38	)		(0.25	)		(0.36	)		(0.09	)		(0.52	)		(0.50	)
Net asset value, end of period	$	10.94		$	10.76		$	11.48		$	11.23		$	11.16		$	10.89		$	10.70
Total return3		2.40	%		(3.10	)%		4.57	%		3.97	%		3.34	%		6.78	%		7.28	%
Ratios to average net assets (annualized)
Gross expenses		0.81	%		0.79	%		0.79	%		0.74	%		0.79	%		0.81	%		0.81	%
Net expenses		0.64	%		0.64	%		0.64	%		0.64	%		0.67	%		0.70	%		0.70	%
Net investment income		0.79	%		0.88	%		1.49	%		2.50	%		2.30	%		2.90	%		3.86	%
Supplemental data
Portfolio turnover rate		179	%		341	%		327	%		268	%		89	%		194	%		368	%
Net assets, end of period (000s omitted)		$200,139			$339,446			$436,578			$276,334			$366,430			$243,760			$266,579

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 19

(For a share outstanding throughout each period)

	Six months ended February 28, 2014 (unaudited)			Year ended August 31												Year ended May 31
INSTITUTIONAL CLASS				2013			2012			2011			20101			2010			2009
Net asset value, beginning of period	$	10.76		$	11.47		$	11.22		$	11.15		$	10.88		$	10.70		$	10.44
Net investment income		0.05			0.11			0.19	2		0.30			0.07	2		0.32	2		0.44	2
Net realized and unrealized gains (losses) on investments		0.22			(0.42	)		0.33			0.15			0.30			0.41			0.34
Total from investment operations		0.27			(0.31	)		0.52			0.45			0.37			0.73			0.78
Distributions to shareholders from
Net investment income		(0.09	)		(0.13	)		(0.21	)		(0.38	)		(0.10	)		(0.46	)		(0.49	)
Net realized gains		0.00			(0.27	)		(0.06	)		0.00			0.00			(0.09	)		(0.03	)
Total distributions to shareholders		(0.09	)		(0.40	)		(0.27	)		(0.38	)		(0.10	)		(0.55	)		(0.52	)
Net asset value, end of period	$	10.94		$	10.76		$	11.47		$	11.22		$	11.15		$	10.88		$	10.70
Total return3		2.48	%		(2.86	)%		4.74	%		4.14	%		3.39	%		6.92	%		7.62	%
Ratios to average net assets (annualized)
Gross expenses		0.54	%		0.52	%		0.53	%		0.52	%		0.52	%		0.54	%		0.56	%
Net expenses		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%
Net investment income		0.93	%		1.05	%		1.71	%		2.71	%		2.52	%		3.06	%		4.14	%
Supplemental data
Portfolio turnover rate		179	%		341	%		327	%		268	%		89	%		194	%		368	%
Net assets, end of period (000s omitted)		$535,349			$565,573			$778,919			$718,411			$531,890			$463,726			$313,486

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 Government Securities Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2014 (unaudited)			Year ended August 31												Year ended May 31
INVESTOR CLASS				2013			2012			2011			20101			2010			2009
Net asset value, beginning of period	$	10.77		$	11.49		$	11.24		$	11.17		$	10.90		$	10.71		$	10.46
Net investment income		0.02			0.07			0.15	2		0.25	2		0.06	2		0.29			0.39	2
Net realized and unrealized gains (losses) on investments		0.22			(0.44	)		0.33			0.15			0.30			0.40			0.33
Total from investment operations		0.24			(0.37	)		0.48			0.40			0.36			0.69			0.72
Distributions to shareholders from
Net investment income		(0.06	)		(0.08	)		(0.17	)		(0.33	)		(0.09	)		(0.41	)		(0.44	)
Net realized gains		0.00			(0.27	)		(0.06	)		0.00			0.00			(0.09	)		(0.03	)
Total distributions to shareholders		(0.06	)		(0.35	)		(0.23	)		(0.33	)		(0.09	)		(0.50	)		(0.47	)
Net asset value, end of period	$	10.95		$	10.77		$	11.49		$	11.24		$	11.17		$	10.90		$	10.71
Total return3		2.27	%		(3.33	)%		4.31	%		3.72	%		3.28	%		6.53	%		7.02	%
Ratios to average net assets (annualized)
Gross expenses		0.90	%		0.87	%		0.89	%		0.88	%		0.90	%		0.94	%		0.94	%
Net expenses		0.89	%		0.87	%		0.89	%		0.88	%		0.90	%		0.94	%		0.94	%
Net investment income		0.51	%		0.65	%		1.33	%		2.25	%		2.10	%		2.66	%		3.65	%
Supplemental data
Portfolio turnover rate		179	%		341	%		327	%		268	%		89	%		194	%		368	%
Net assets, end of period (000s omitted)		$376,266			$437,217			$640,561			$678,022			$1,146,356			$1,024,088			$1,134,770

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 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 the 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 (generally 4 p.m. Eastern Time).

Fixed income securities acquired with maturities exceeding 60 days are valued based on evaluated bid prices provided by an independent pricing service which may utilize both transaction data and market information such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data. If prices are not available from the independent pricing service or prices received are deemed not representative of market value, prices will be obtained from an independent broker-dealer or otherwise determined based on the Fund’s Valuation Procedures.

Futures that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price.

Short-term securities, with maturities of 60 days or less at time of purchase, 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 vehicles 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 in good faith by the Board of Trustees of the Fund. 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 values, to assess the continued appropriateness of the fair valuation methodologies used. These securities are fair valued on a day-to-day basis, taking into consideration changes to appropriate market information and any significant changes to the inputs considered in the valuation process until there is a readily available price provided on an exchange or by an independent pricing service. Valuations received from an independent pricing service or independent broker-dealer quotes are periodically validated by comparisons to most recent trades and valuations provided by other independent pricing services in addition to the review of prices by the adviser and/or subadviser. Unobservable inputs used in determining fair valuations are identified based on the type of security, taking into consideration factors utilized by market participants in valuing the investment, knowledge about the issuer and the current market environment.

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

22 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 “Securities Lending Fund”). The Securities Lending 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 Securities Lending Fund increase. All of the fees received by Funds Management are paid to WellsCap for its services as subadviser. The Securities Lending 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. Securities Lending Fund investments are fair valued based upon the amortized cost valuation technique. Income earned from investment in the Securities Lending 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.

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.

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.

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

As of August 31, 2013, the Fund had capital loss carryforwards available to offset future net realized capital gains in the amount of $26,015,724 with $2,028,091 expiring in 2016 and $23,987,633 expiring in 2017.

As of August 31, 2013, the Fund had $18,343,495 of current year deferred post-October capital losses, which were 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.

As of February 28, 2014, the inputs used in valuing investments in securities were as follows:

Investments in securities	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Agency securities	$	0	$	886,094,408	$	4,903	$	886,099,311
Municipal obligations		0		8,058,948		0		8,058,948
Non-agency mortgage backed securities		0		80,613,262		0		80,613,262
U.S. Treasury securities		656,593,389		0		0		656,593,389
Yankee corporate bonds and notes		0		38,764,861		0		38,764,861
Short-term investments
Investment companies		16,851,793		0		0		16,851,793
U.S. Treasury securities		1,399,980		41,449,119		0		42,849,099
	$	674,845,162	$	1,054,980,598	$	4,903	$	1,729,830,663

As of February 28, 2014, the inputs used in valuing the Fund’s other financial instruments were as follows:

	Quoted prices (Level 1)			Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Futures contracts	$	124,595	*	$	0	$	0	$124,595

* Amount represents the net unrealized gains.

Transfers in and transfers out are recognized at the end of the reporting period. For the six months ended February 28, 2014, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

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

4. TRANSACTIONS WITH AFFILIATES AND OTHER EXPENSES

Advisory fee

The Trust has entered into an advisory contract with Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”). The adviser is responsible for implementing investment policies and guidelines and for supervising the 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, 2014, 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 and an indirect, wholly owned subsidiary of Wells Fargo, 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, 2014 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.85% for Class A shares, 1.60% for Class B shares, 1.60% for Class C shares, 0.64% for Administrator Class shares, 0.48% for Institutional Class shares, and 0.88% for Investor Class shares. Prior to January 1, 2014, the Fund’s expenses were capped at 0.87% for Class A shares, 1.62% for Class B shares, 1.62% for Class C shares, and 0.90% 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, 2014, Wells Fargo Funds Distributor, LLC received $291 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 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, 2014 were as follows:

Purchases at cost		Sales proceeds
U.S. government	Non-U.S. government	U.S. government	Non-U.S. government
$2,877,821,208	$25,054,652	$2,745,980,971	$47,141,728

Notes to financial statements (unaudited) Wells Fargo Advantage Government Securities Fund 25

6. DERIVATIVE TRANSACTIONS

During the six months ended February 28, 2014, the Fund entered into futures contracts to speculate on interest rates and to help manage the duration of the portfolio.

At February 28, 2014, the Fund had long and short futures contracts outstanding as follows:

Expiration date	Counterparty	Contracts	Type	Contract value at February 28, 2014		Unrealized gains (losses)
6-19-2014	JPMorgan	923 Long	10-Year U.S. Treasury Notes	$	114,942,344	$	236,207
6-19-2014	JPMorgan	159 Short	U.S. Treasury Bonds		22,831,406		(185,441	)
6-30-2014	JPMorgan	203 Short	2-Year U.S. Treasury Notes		44,634,625		(13,073	)
6-30-2014	JPMorgan	742 Long	5-Year U.S. Treasury Notes		88,935,656		86,902

The Fund had an average notional amount of $153,296,589 and $66,254,734 in long futures contracts and short futures contracts, respectively, during the six months ended February 28, 2014.

On February 28, 2014, the cumulative unrealized gains on futures contracts in the amount of $124,595 are reflected in net unrealized gains on investments on the Statement of Assets and Liabilities. The receivable and payable for daily variation margin on open futures contracts reflected in the Statement of Assets and Liabilities only represents the current day’s variation margin. The realized gains and change in unrealized gains (losses) on futures contracts are reflected in the Statement of Operations.

For certain types of derivative transactions, the Fund has entered into International Swaps and Derivatives Association, Inc. master agreements (“ISDA Master Agreements”) or similar agreements with approved counterparties. The ISDA Master Agreements or similar agreements may have requirements to deliver/deposit securities or cash to/with an exchange or broker-dealer as collateral and allows the Fund to offset, with each counterparty, certain derivative financial instrument’s assets and/or liabilities with collateral held or pledged. Collateral requirements differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives while collateral terms are contract specific for over-the-counter traded. Cash collateral that has been pledged to cover obligations of the Fund under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Portfolio of Investments. With respect to balance sheet offsetting, absent an event of default by the counterparty or a termination of the agreement, the reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities are not offset across transactions between the Fund and the applicable counterparty. A reconciliation of the gross amounts on the Statement of Assets and Liabilities to the net amounts by derivative type, including any collateral exposure, is as follows:

Derivative type	Counterparty	Gross amounts of assets in the Statement of Assets and Liabilities	Amounts subject to netting agreements	Collateral received	Net amount
Futures - variation margin	JPMorgan	$21,736	($21,736)	$0	$0

Derivative type	Counterparty	Gross amounts of liabilities in the Statement of Assets and Liabilities	Amounts subject to netting agreements	Collateral pledged	Net amount
Futures - variation margin	JPMorgan	$269,031	$(21,736)	$(247,295)	$0

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, 2014, the Fund paid $314 in commitment fees.

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

For the six months ended February 28, 2014, 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.

Other information (unaudited) Wells Fargo Advantage Government Securities Fund 27

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-800-222-8222, visiting our 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.

28 Wells Fargo Advantage Government Securities 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 each fund in the Wells Fargo Advantage family of funds, which consists of 132 mutual 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 Harbor 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 50 portfolios as of 12/16/2013); 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 Government Securities Fund 29

Name and year of birth	Position held and length of service*	Principal occupations during past five years	Other directorships during past five years
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 73 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 59 funds and Assistant Treasurer of 73 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.

30 Wells Fargo Advantage Government Securities 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 —  Columbian Peso

CLP —  Chilean peso

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 —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

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

NGN —  Nigerian naira

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

RON —  Romanian lei

RUB —  Russian ruble

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

THB —  Thai baht

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

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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

© 2014 Wells Fargo Funds Management, LLC. All rights reserved.

223530 04-14 SA216/SAR216 02-14

Wells Fargo Advantage High Income Fund

Semi-Annual Report

February 28, 2014

Reduce clutter. Save trees.

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Contents

Letter to shareholders	2
Performance highlights	6
Fund expenses	8
Portfolio of investments	9
Financial statements
Statement of assets and liabilities	17
Statement of operations	18
Statement of changes in net assets	19
Financial highlights	20
Notes to financial statements	26
Other information	31
List of abbreviations	34

The views expressed and any forward-looking statements are as of February 28, 2014, 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 and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

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

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Fixed-income markets shifted during the period, driven by vacillations between U.S. Treasury yield increases and subsequent declines.

Reassurances from the Fed that a highly accommodative monetary policy would continue throughout 2014 inspired price rallies across both the investment-grade and high-yield bond markets.

Dear Valued Shareholder:

We are pleased to offer you this semi-annual report for the Wells Fargo Advantage High Income Fund for the six-month period that ended February 28, 2014. Fixed-income markets shifted during the period, driven by vacillations between U.S. Treasury yield increases and subsequent declines. However, on the whole, investment-grade (measured by the Barclays U.S. Aggregate Bond Index¹) and high-yield markets (measured by the Barclays U.S. High Yield Bond Index²) generated positive returns during the period, notably benefiting from the strong price improvement and declining U.S. Treasury yields that occurred in September and October of 2013 as well as the opening months of 2014. Although the returns of the U.S. high-yield market have often been positively correlated with U.S. equity returns (measured by the S&P 500 Index³) over the long-run, over the period, high-yield (measured by the Barclays U.S. High Yield Bond Index) generally performed well even when equities did not. The lower-rated corporate bond credit tiers outperformed the respectively higher-rated investment-grade credit tiers during the period.

A decline in bond prices was halted by the Fed’s postponement of tapering its bond-buying program.

Before the six-month period began, equity markets rallied, most notably in May and June of 2013. This led to a sharp increase in U.S. Treasury yields and declining valuations for much of the fixed-income markets (measured by the Barclays U.S. Aggregate Bond Index). However, in July and August 2013, that equity exuberance quieted a bit, and fixed-income markets stabilized. Returns across the fixed-income markets were largely negative in investment- grade and high-yield markets but modest in comparison with the declines in May and June of 2013.

But, by September and October of 2013, investment-grade and high-yield bond markets began generating positive returns yet again, as the Federal Reserve (Fed) backtracked on its intentions to taper its quantitative easing program, postponing it until 2014, at the earliest. This created a temporary rally in bonds that lasted until around November 20, 2013, when notes were released from the Fed’s October 2013 meeting that tapering of the bond-buying programs would not be postponed beyond January 2014. In response, long-term U.S. Treasury yields and mortgage rates ratcheted higher on expectations for an unwinding of monetary accommodation in the upcoming months. This led to declines in pricing across much of the core fixed-income markets (measured by the Barclays U.S. Aggregate Bond Index). U.S. high-yield markets were better able to absorb the shift in U.S. Treasury yields and continued to provide positive returns along with rallies in the equity markets.

Favorable conditions for fixed-income markets were restored in January and February 2014.

Seemingly much to the surprise of many everyday investors and seasoned investment professionals alike, fixed-income markets (measured by the Barclays U.S. Aggregate Bond Index) largely outperformed U.S. equity markets (measured by the S&P 500 Index) during the opening months of 2014. A pullback in equity exuberance in January and reassurances from the Fed that a highly accommodative monetary policy would continue throughout 2014 inspired price rallies across both the investment-grade and high-yield bond markets. U.S. Treasury yields declined in January 2014 and corporate bonds and mortgage-backed securities performed notably well. U.S. high-yield securities generated positive returns in January 2014 but lagged the rally across the investment-grade

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

bond markets. This theme reversed in February 2014, as high-yield sectors rallied and investment-grade sectors performed well but not to the extent of the lowest-rated credit tiers.

One positive takeaway for bond investors that helped fuel the fixed-income (measured by the Barclays U.S. Aggregate Bond Index) rallies was former Fed Chairman Bernanke’s guidance at the end of 2013. He indicated that the tapering of the Fed’s bond-buying program would proceed at a slow pace and that a reduction in quantitative easing should not be equivocated with a tightening of monetary policy. The distinction was important—although the bond-buying program was declining in volume, it was, nonetheless, still continuing. Additionally, the federal funds target rate would remain unchanged for the foreseeable future, with the implications that it would not increase until the bond-buying program was fully disbanded. These were important statements for fixed-income investors that helped bolster U.S. fixed-income valuations in the opening months of 2014.

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

Periods of investment uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Advantage Funds offers more than 100 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. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

Thank you for choosing to invest with Wells Fargo 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

1. The Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and CMBS. You cannot invest directly in an index.

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

3. The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock’s weight in the index proportionate to its market value. You cannot invest directly in an index.

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

Notice to shareholders

The Fund and Wells Fargo Funds Management, LLC (“Funds Management”) have received an exemptive order from the SEC that permits Funds Management, subject to the approval of the Board of Trustees of the Fund, to select or replace certain subadvisers to manage all or a portion of the Fund’s assets and enter into, amend or terminate a sub-advisory agreement with certain subadvisers without obtaining shareholder approval (“Multi-manager Structure”). The Multi-manager Structure applies to subadvisers that are not affiliated with Funds Management or the Fund, except to the extent that affiliation arises solely because such subadvisers provide sub-advisory services to the Fund (“Non-affiliated Subadvisers”), as well as subadvisers that are indirect or direct wholly-owned subsidiaries of Funds Management or of another company that, indirectly or directly, wholly owns Funds Management (“Wholly-owned Subadvisers”).

Pursuant to the SEC order, Funds Management, with the approval of the Board of Trustees, has the discretion to terminate any subadvisers and allocate and reallocate the Fund’s assets among any other Non-affiliated Subadvisers or Wholly-owned Subadvisers. Funds Management, subject to oversight and supervision by the Board of Trustees, has responsibility to continue to oversee any subadvisers to the Fund and to recommend, for approval by the Board of Trustees, the hiring, termination and replacement of subadvisers for the Fund. In the event that a new subadviser is hired pursuant to the Multi-manager Structure, the Fund is required to provide notice to shareholders within 90 days.

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

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6 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

Thomas M. Price, CFA

Kevin J. Maas, CFA

Michael J. Schueller, CFA

Average annual total returns¹ (%) as of February 28, 2014

		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		1.24		12.19		6.79		6.01		13.23		7.28		1.00		0.91
Class B (WFNBX)*	7-18-2008		0.22		12.13		6.72		5.22		12.39		6.72		1.75		1.66
Class C (WFNCX)	7-18-2008		4.23		12.39		6.48		5.23		12.39		6.48		1.75		1.66
Administrator Class (WFNDX)	7-30-2010		–		–		–		6.11		13.37		7.46		0.94		0.81
Institutional Class (SHYYX)	7-31-2001		–		–		–		6.43		13.69		7.77		0.67		0.51
Investor Class (STHYX)	12-28-1995		–		–		–		5.85		13.16		7.27		1.03		0.94
Barclays U.S. Corporate High Yield Bond Index4	–		–		–		–		8.38		18.94		8.73		–		–

* 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 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, which 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 (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. 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 7.

Performance highlights (unaudited) Wells Fargo Advantage High Income Fund 7

Ten largest long-term holdings5 (%) as of February 28, 2014
Sprint Corporation, 7.88%, 9-15-2023	1.63
Intelsat Bermuda Limited, 7.75%, 6-1-2021	1.35
ArcelorMittal, 6.75%, 2-25-2022	1.24
SLM Corporation, 8.00%, 3-25-2020	1.21
RSC Equipment Rental Incorporated, 8.25%, 2-1-2021	1.11
DaVita Incorporated, 6.63%, 11-1-2020	1.05
Valeant Pharmaceuticals International Incorporated, 7.50%, 7-15-2021	0.96
Ally Financial Incorporated, 8.00%, 3-15-2020	0.95
HealthSouth Corporation, 8.13%, 2-15-2020	0.95
Deluxe Corporation, 7.00%, 3-15-2019	0.94

Credit quality⁶ as of February 28, 2014

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

2. Reflects the expense ratios as stated in the most recent prospectuses, which include the impact of 0.01% in acquired fund fees and expenses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report, which do not include acquired fund fees and expenses.

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 0.90% 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 credit quality of portfolio holdings reflected in the chart is based on ratings from Standard & Poor’s, Moody’s Investors Service, and/or Fitch Ratings Ltd. Credit quality ratings apply to the underlying holdings of the Fund and not to the Fund itself. The percentages of the Fund’s portfolio with the ratings depicted in the chart are calculated based on the total market value of fixed income securities held by the Fund. 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 rating agencies, that rating was utilized. Standard & Poor’s rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Ratings from A to CCC may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the rating categories. Standard & Poor’s rates the creditworthiness of short-term notes from SP-1 (highest) to SP-3 (lowest). Moody’s rates the creditworthiness of bonds, ranging from Aaa (highest) to C (lowest). Ratings Aa to B may be modified by the addition of a number 1 (highest) to 3 (lowest) to show relative standing within the ratings categories. Moody’s rates the creditworthiness of short-term U.S. tax-exempt municipal securities from MIG 1/VMIG 1 (highest) to SG (lowest). Fitch rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Credit quality, and credit quality ratings are subject to change.

8 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, 2013 to February 28, 2014.

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 9-1-2013		Ending account value 2-28-2014		Expenses paid during the period1		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,067.62	$	4.61		0.90	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.33	$	4.51		0.90	%
Class B
Actual	$	1,000.00	$	1,063.68	$	8.44		1.65	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.61	$	8.25		1.65	%
Class C
Actual	$	1,000.00	$	1,063.69	$	8.44		1.65	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.61	$	8.25		1.65	%
Administrator Class
Actual	$	1,000.00	$	1,067.70	$	4.10		0.80	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.83	$	4.01		0.80	%
Institutional Class
Actual	$	1,000.00	$	1,069.34	$	2.57		0.50	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.32	$	2.51		0.50	%
Investor Class
Actual	$	1,000.00	$	1,067.31	$	4.77		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, 2014 (unaudited) Wells Fargo Advantage High Income Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Corporate Bonds and Notes: 82.65%
Consumer Discretionary: 18.99%
Auto Components: 2.12%
American Axle Manufacturing Incorporated		6.63	%		10-15-2022	$	6,000,000	$	6,525,000
Goodyear Tire & Rubber Company		6.50			3-1-2021		5,000,000		5,462,500
Tenneco Automotive Incorporated		7.75			8-15-2018		3,000,000		3,183,750
									15,171,250
Diversified Consumer Services: 0.77%
Service Corporation International		7.50			4-1-2027		200,000		212,500
Stewart Enterprises Incorporated		6.50			4-15-2019		5,000,000		5,265,000
									5,477,500
Hotels, Restaurants & Leisure: 2.36%
Caesars Entertainment Corporation		8.50			2-15-2020		1,000,000		960,000
Caesars Entertainment Corporation		9.00			2-15-2020		5,000,000		4,862,500
MGM Resorts International Company		6.63			12-15-2021		4,000,000		4,390,000
MGM Resorts International Company		8.63			2-1-2019		1,000,000		1,197,500
Tunica-Biloxi Gaming Authority 144A		9.00			11-15-2015		6,260,000		5,477,500
									16,887,500
Household Durables: 2.51%
Beazer Homes USA Company		6.63			4-15-2018		1,000,000		1,080,000
Beazer Homes USA Company		7.25			2-1-2023		5,000,000		5,150,000
Lennar Corporation		4.13			12-1-2018		5,000,000		5,087,500
Meritage Homes Corporation		7.00			4-1-2022		1,500,000		1,642,500
Meritage Homes Corporation		7.15			4-15-2020		4,500,000		4,995,000
									17,955,000
Media: 7.80%
CCO Holdings LLC		6.50			4-30-2021		4,000,000		4,275,000
CCO Holdings LLC		6.63			1-31-2022		2,000,000		2,155,000
Cequel Communications Holdings 144A		6.38			9-15-2020		5,000,000		5,287,500
Clear Channel Communications Incorporated		9.00			3-1-2021		4,000,000		4,190,000
Clear Channel Communications Incorporated		14.00			2-1-2021		2,020,000		2,004,850
Clear Channel Worldwide Holdings Incorporated		6.50			11-15-2022		6,000,000		6,345,000
Cumulus Media Holdings Incorporated		7.75			5-1-2019		2,400,000		2,592,000
DISH DBS Corporation		5.88			7-15-2022		1,500,000		1,578,750
DISH DBS Corporation		7.88			9-1-2019		4,500,000		5,287,500
Lynx I Corporation 144A		5.38			4-15-2021		6,160,000		6,344,800
Lynx II Corporation 144A		6.38			4-15-2023		2,000,000		2,115,000
National CineMedia LLC		6.00			4-15-2022		3,000,000		3,142,500
Regal Entertainment Group %%		5.75			3-15-2022		2,000,000		2,045,000
Sinclair Television Group Incorporated		5.38			4-1-2021		5,000,000		5,025,000
Visant Corporation		10.00			10-1-2017		3,500,000		3,386,250
									55,774,150

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

10 Wells Fargo Advantage High Income Fund Portfolio of investments—February 28, 2014 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Multiline Retail: 0.40%
Bon Ton Stores Incorporated «		8.00	%		6-15-2021	$	3,000,000	$	2,857,500
Specialty Retail: 2.26%
L Brands Incorporated		6.63			4-1-2021		5,000,000		5,606,250
Neiman Marcus Group Limited 144A		8.00			10-15-2021		5,500,000		5,898,750
Sally Beauty Holdings Incorporated		5.75			6-1-2022		4,400,000		4,653,000
									16,158,000
Textiles, Apparel & Luxury Goods: 0.77%
Hanesbrands Incorporated		6.38			12-15-2020		5,000,000		5,487,500
Consumer Staples: 1.98%
Food Products: 1.98%
JBS USA Finance Incorporated 144A		7.25			6-1-2021		4,250,000		4,505,000
Michael Foods Holdings Incorporated (PIK at 9.25%) 144A¥		8.50			7-15-2018		2,000,000		2,097,500
Post Holdings Incorporated 144A		6.75			12-1-2021		4,000,000		4,285,000
Smithfield Foods Incorporated 144A		5.25			8-1-2018		500,000		524,375
TreeHouse Foods Incorporated %%		4.88			3-15-2022		2,730,000		2,777,775
									14,189,650
Energy: 17.83%
Energy Equipment & Services: 3.48%
Basic Energy Services Company		7.75			2-15-2019		2,185,000		2,332,488
Basic Energy Services Company		7.75			10-15-2022		4,000,000		4,270,000
Energy Future Intermediate Holding Company LLC 144A		10.25			12-1-2020		4,000,000		4,160,000
Gulfmark Offshore Incorporated		6.38			3-15-2022		4,000,000		4,120,000
Hercules Offshore Incorporated 144A		7.13			4-1-2017		3,500,000		3,696,875
Key Energy Services Incorporated		6.75			3-1-2021		5,000,000		5,237,500
Parker Drilling Company 144A		6.75			7-15-2022		1,000,000		1,040,000
									24,856,863
Oil, Gas & Consumable Fuels: 14.35%
Arch Coal Incorporated «		7.25			6-15-2021		5,000,000		4,025,000
Athlon Holdings LP 144A		7.38			4-15-2021		4,000,000		4,240,000
Atlas Pipeline Partners LP		5.88			8-1-2023		5,000,000		4,912,500
Bill Barrett Corporation		7.63			10-1-2019		3,100,000		3,340,250
BreitBurn Energy Partners LP		8.63			10-15-2020		4,000,000		4,330,000
Chesapeake Energy Corporation		6.63			11-15-2019		3,100,000		3,286,000
Chesapeake Energy Corporation		6.63			8-15-2020		2,000,000		2,285,000
CITGO Petroleum Corporation 144A		11.50			7-1-2017		6,000,000		6,480,000
Comstock Resources Incorporated		9.50			6-15-2020		5,500,000		6,249,375
El Paso LLC		6.50			9-15-2020		3,500,000		3,836,508
Energy XXI Gulf Coast Incorporated 144A		7.50			12-15-2021		5,000,000		5,225,000
Energy XXI Gulf Coast Incorporated		7.75			6-15-2019		1,450,000		1,558,750
Goodrich Petroleum Corporation		8.88			3-15-2019		4,090,000		4,212,700
Halcon Resources Corporation		8.88			5-15-2021		5,000,000		5,087,500
James River Coal Company (s)		7.88			4-1-2019		5,000,000		837,500
Newfield Exploration Company		6.88			2-1-2020		4,950,000		5,315,063

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

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage High Income Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Oil, Gas & Consumable Fuels (continued)
Oasis Petroleum Incorporated		6.88	%		1-15-2023	$	4,000,000	$	4,350,000
Peabody Energy Corporation		6.00			11-15-2018		1,000,000		1,082,500
Peabody Energy Corporation «		6.25			11-15-2021		5,000,000		5,162,500
Penn Virginia Corporation		8.50			5-1-2020		4,000,000		4,400,000
Sabine Pass Liquefaction LLC 144A		5.88			2-1-2021		4,500,000		4,612,500
Sandridge Energy Incorporated		7.50			2-15-2023		6,000,000		6,330,000
Targa Resources Partners Incorporated		6.38			8-1-2022		750,000		804,375
Targa Resources Partners Incorporated		6.88			2-1-2021		4,000,000		4,340,000
Tesoro Logistics LP Corporation		6.13			10-15-2021		1,000,000		1,045,000
Ultra Petroleum Corporation 144A		5.75			12-15-2018		5,000,000		5,237,500
									102,585,521
Financials: 7.45%
Banks: 1.77%
CIT Group Incorporated		5.25			3-15-2018		5,000,000		5,425,000
CIT Group Incorporated		5.38			5-15-2020		3,000,000		3,240,000
Regions Bank		7.50			5-15-2018		3,350,000		3,988,711
									12,653,711
Consumer Finance: 4.14%
Ally Financial Incorporated		5.50			2-15-2017		1,500,000		1,638,750
Ally Financial Incorporated		6.25			12-1-2017		2,000,000		2,250,000
Ally Financial Incorporated		8.00			3-15-2020		5,500,000		6,806,250
Chrysler Group LLC 144A		8.25			6-15-2021		5,000,000		5,662,500
General Motors Financial Company Incorporated		4.25			5-15-2023		4,550,000		4,595,500
SLM Corporation		8.00			3-25-2020		7,500,000		8,662,500
									29,615,500
Real Estate Management & Development: 0.82%
CBRE Services Incorporated		5.00			3-15-2023		3,000,000		3,000,000
Icahn Enterprises Company 144A		6.00			8-1-2020		2,735,000		2,885,425
									5,885,425
REITs: 0.72%
Crown Castle International Corporation		5.25			1-15-2023		5,000,000		5,125,000
Health Care: 8.27%
Health Care Equipment & Supplies: 1.40%
Biomet Incorporated		6.50			8-1-2020		5,000,000		5,393,750
Kinetics Concepts Incorporated		10.50			11-1-2018		4,000,000		4,625,000
									10,018,750
Health Care Providers & Services: 6.87%
Community Health Systems Incorporated		6.88			2-1-2022		1,000,000		1,063,750
Community Health Systems Incorporated		8.00			11-15-2019		4,000,000		4,444,000
DaVita Incorporated		6.63			11-1-2020		7,000,000		7,516,250
Fresenius Medical Care Holdings Incorporated 144A		5.63			7-31-2019		1,500,000		1,616,250
Fresenius Medical Care Holdings Incorporated 144A		5.88			1-31-2022		2,500,000		2,675,000

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

12 Wells Fargo Advantage High Income Fund Portfolio of investments—February 28, 2014 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Health Care Providers & Services (continued)
Hanger Orthopedic Group		7.13	%		11-15-2018	$	4,000,000	$	4,260,000
HCA Holdings Incorporated		6.25			2-15-2021		4,000,000		4,360,000
HCA Incorporated		4.75			5-1-2023		3,500,000		3,500,000
HealthSouth Corporation		8.13			2-15-2020		6,200,000		6,758,000
Iasis Healthcare Corporation		8.38			5-15-2019		5,000,000		5,350,000
Select Medical Corporation		6.38			6-1-2021		2,000,000		2,040,000
Tenet Healthcare Corporation		8.00			8-1-2020		5,000,000		5,487,500
									49,070,750
Industrials: 12.15%
Aerospace & Defense: 2.29%
BE Aerospace Incorporated		5.25			4-1-2022		3,500,000		3,609,375
DigitalGlobe Incorporated		5.25			2-1-2021		5,000,000		4,950,000
Esterline Technologies Corporation		7.00			8-1-2020		3,750,000		4,078,125
TransDigm Group Incorporated		7.75			12-15-2018		3,500,000		3,749,375
									16,386,875
Building Products: 1.86%
Masco Corporation		5.95			3-15-2022		6,130,000		6,620,400
Nortek Incorporated		8.50			4-15-2021		5,000,000		5,600,000
Ply Gem Industries Incorporated 144A		6.50			2-1-2022		500,000		507,500
USG Corporation 144A		5.88			11-1-2021		500,000		532,500
									13,260,400
Commercial Services & Supplies: 2.41%
Casella Waste Systems Incorporated		7.75			2-15-2019		4,250,000		4,377,500
Clean Harbors Incorporated		5.13			6-1-2021		5,000,000		5,100,000
Deluxe Corporation		6.00			11-15-2020		1,000,000		1,040,000
Deluxe Corporation		7.00			3-15-2019		6,300,000		6,741,000
									17,258,500
Machinery: 2.42%
Briggs & Stratton Corporation		6.88			12-15-2020		2,970,000		3,296,700
Gardner Denver Incorporated 144A		6.88			8-15-2021		1,500,000		1,533,750
Manitowoc Company Incorporated		8.50			11-1-2020		4,000,000		4,535,000
RSC Equipment Rental Incorporated		8.25			2-1-2021		7,000,000		7,901,250
									17,266,700
Professional Services: 1.25%
Checkout Holdings Corporation 144A¤		0.00			11-15-2015		3,000,000		2,535,000
FTI Consulting Incorporated		6.75			10-1-2020		5,900,000		6,416,250
									8,951,250
Road & Rail: 0.41%
Hertz Corporation		5.88			10-15-2020		2,750,000		2,915,000

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

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage High Income Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Trading Companies & Distributors: 1.51%
Ashtead Capital Incorporated 144A		6.50	%		7-15-2022	$	3,740,000	$	4,057,900
International Lease Finance Corporation		8.25			12-15-2020		5,500,000		6,730,625
									10,788,525
Information Technology: 3.74%
Internet Software & Services: 0.28%
Zayo Group LLC		10.13			7-1-2020		1,700,000		1,972,000
IT Services: 1.59%
First Data Corporation 144A		10.63			6-15-2021		3,000,000		3,375,000
First Data Corporation (PIK at 10.00%) 144A¥		8.75			1-15-2022		3,000,000		3,281,250
Neustar Incorporated		4.50			1-15-2023		5,500,000		4,743,750
									11,400,000
Semiconductors & Semiconductor Equipment: 1.87%
Amkor Technology Incorporated		6.38			10-1-2022		5,000,000		5,175,000
Magnachip Semiconductor Corporation		6.63			7-15-2021		4,000,000		4,120,000
Micron Technology Incorporated 144A		5.88			2-15-2022		3,910,000		4,085,950
									13,380,950
Materials: 4.77%
Chemicals: 1.32%
Huntsman International LLC		4.88			11-15-2020		4,000,000		4,075,000
Momentive Performance Materials Incorporated		8.88			10-15-2020		5,000,000		5,350,000
									9,425,000
Containers & Packaging: 2.25%
BOE Intermediate Holding Corporation (PIK at 9.75%) 144A¥		9.00			11-1-2017		2,091,000		2,247,825
BWAY Corporation		10.00			6-15-2018		4,000,000		4,280,000
Reynolds Group Holdings		5.75			10-15-2020		5,000,000		5,225,000
Reynolds Group Holdings		8.25			2-15-2021		4,000,000		4,370,000
									16,122,825
Metals & Mining: 1.20%
AK Steel Corporation		7.63			5-15-2020		1,000,000		990,000
AK Steel Corporation		8.38			4-1-2022		2,840,000		2,811,600
US Steel Corporation		6.88			4-1-2021		4,500,000		4,770,000
									8,571,600
Telecommunication Services: 6.20%
Diversified Telecommunication Services: 3.67%
CenturyLink Incorporated		5.63			4-1-2020		5,000,000		5,225,000
Cincinnati Bell Incorporated		8.38			10-15-2020		3,000,000		3,270,000
Frontier Communications Corporation		8.75			4-15-2022		2,000,000		2,290,000
Level 3 Communications Incorporated		8.88			6-1-2019		3,500,000		3,858,750
Level 3 Financing Incorporated		7.00			6-1-2020		5,000,000		5,450,000
TW Telecommunications Holdings Incorporated		5.38			10-1-2022		6,000,000		6,120,000
									26,213,750

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

14 Wells Fargo Advantage High Income Fund Portfolio of investments—February 28, 2014 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Wireless Telecommunication Services: 2.53%
Sprint Capital Corporation		6.90	%		5-1-2019	$	3,000,000	$	3,300,000
Sprint Corporation 144A		7.88			9-15-2023		10,500,000		11,628,750
T-Mobile USA Incorporated		6.25			4-1-2021		3,000,000		3,198,750
									18,127,500
Utilities: 1.27%
Independent Power & Renewable Electricity Producers: 1.27%
Calpine Corporation 144A		7.88			1-15-2023		4,795,000		5,394,375
NRG Energy Incorporated		6.63			3-15-2023		3,500,000		3,692,500
									9,086,875
Total Corporate Bonds and Notes (Cost $572,178,555)									590,897,320
Municipal Obligations: 0.59%
Florida: 0.59%
Florida Development Financial Corporation Renaissance Charter School Project Series 2011B (Education Revenue)		8.00			12-15-2018		2,710,000		2,772,005
Florida Development Financial Corporation Renaissance Charter School Project Series 2012B (Education Revenue)		7.50			6-15-2018		1,450,000		1,443,475
Total Municipal Obligations (Cost $4,160,000)									4,215,480
Term Loans ±: 0.56%
Dell Incorporated		4.50			4-29-2020		3,990,000		3,977,870
Total Term Loans (Cost $3,955,713)									3,977,870
Yankee Corporate Bonds and Notes: 10.24%
Consumer Discretionary: 1.77%
Automobiles: 1.06%
Jaguar Land Rover plc 144A		5.63			2-1-2023		3,500,000		3,657,500
Jaguar Land Rover plc 144A		8.13			5-15-2021		3,500,000		3,963,750
									7,621,250
Media: 0.71%
Quebecor Media Incorporated		5.75			1-15-2023		5,000,000		5,062,500
Energy: 0.72%
Oil, Gas & Consumable Fuels: 0.72%
Petrobakken Energy Limited 144A		8.63			2-1-2020		5,000,000		5,112,500
Health Care: 0.96%
Pharmaceuticals: 0.96%
Valeant Pharmaceuticals International Incorporated 144A		7.50			7-15-2021		6,000,000		6,840,000
Industrials: 0.57%
Aerospace & Defense: 0.57%
Bombardier Incorporated 144A		6.13			1-15-2023		4,000,000		4,050,000

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

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage High Income Fund 15

Security name	Interest rate			Maturity date		Principal		Value
Information Technology: 1.12%
Electronic Equipment, Instruments & Components: 0.60%
Sensata Technologies BV 144A		6.50	%		5-15-2019	$	4,000,000	$	4,300,000
Semiconductors & Semiconductor Equipment: 0.52%
NXP Funding LLC 144A		5.75			2-15-2021		3,500,000		3,727,500
Materials: 3.75%
Chemicals: 1.18%
Ineos Finance plc 144A		7.50			5-1-2020		1,000,000		1,100,000
Ineos Group Holdings plc 144A		5.88			2-15-2019		1,000,000		1,030,000
Ineos Group Holdings plc 144A		6.13			8-15-2018		5,000,000		5,175,000
Ineos Group Holdings plc 144A		8.38			2-15-2019		1,000,000		1,107,500
									8,412,500
Containers & Packaging: 0.14%
Ardagh Holdings USA Incorporated 144A		6.75			1-31-2021		1,000,000		1,040,000
Metals & Mining: 1.86%
ArcelorMittal «		6.75			2-25-2022		8,000,000		8,880,000
FMG Resources Property Limited 144A		8.25			11-1-2019		4,000,000		4,410,000
									13,290,000
Paper & Forest Products: 0.57%
Sappi Papier Holding GmbH 144A		6.63			4-15-2021		4,000,000		4,080,000
Telecommunication Services: 1.35%
Diversified Telecommunication Services: 1.35%
Intelsat Bermuda Limited 144A		7.75			6-1-2021		9,000,000		9,686,248
Total Yankee Corporate Bonds and Notes (Cost $70,237,545)									73,222,498
	Yield					Shares
Short-Term Investments: 6.80%
Investment Companies: 6.69%
Wells Fargo Advantage Cash Investment Money Market Fund, Select Class (l)(u)##		0.07					33,388,112		33,388,112
Wells Fargo Securities Lending Cash Investments, LLC (l)(r)(u)(v)		0.09					14,423,525		14,423,525
									47,811,637
						Principal
U.S. Treasury Securities: 0.11%
U.S. Treasury Bill (z)#		0.02			3-20-2014	$	800,000		799,989
Total Short-Term Investments (Cost $48,611,614)									48,611,626

Total investments in securities (Cost $699,143,427)*	100.84	%		720,924,794
Other assets and liabilities, net	(0.84	)		(5,983,659	)
Total net assets	100.00	%	$	714,941,135

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

16 Wells Fargo Advantage High Income Fund Portfolio of investments—February 28, 2014 (unaudited)

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

%% Security issued on a when-issued basis.

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

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

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

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

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

(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 the current yield to maturity.

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

* Cost for federal income tax purposes is $699,059,582 and unrealized appreciation (depreciation) consists of:

Gross unrealized appreciation	$	29,414,472
Gross unrealized depreciation		(7,549,260	)
Net unrealized appreciation	$	21,865,212

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

Statement of assets and liabilities—February 28, 2014 (unaudited) Wells Fargo Advantage High Income Fund 17

Assets
Investments
In unaffiliated securities (including securities on loan), at value (see cost below)	$	673,113,157
In affiliated securities, at value (see cost below)		47,811,637
Total investments, at value (see cost below)		720,924,794
Receivable for investments sold		3,440,000
Receivable for Fund shares sold		617,880
Receivable for interest		11,941,783
Receivable for daily variation margin on open futures contracts		57,031
Receivable for securities lending income		8,103
Prepaid expenses and other assets		68,248
Total assets		737,057,839
Liabilities
Dividends payable		728,779
Payable for investments purchased		4,730,000
Payable for Fund shares redeemed		1,726,553
Payable upon receipt of securities loaned		14,423,525
Advisory fee payable		211,861
Distribution fees payable		19,229
Due to other related parties		114,169
Accrued expenses and other liabilities		162,588
Total liabilities		22,116,704
Total net assets	$	714,941,135
NET ASSETS CONSIST OF
Paid-in capital	$	691,057,741
Overdistributed net investment income		(65,214	)
Accumulated net realized gains on investments		2,259,696
Net unrealized gains on investments		21,688,912
Total net assets	$	714,941,135
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE1
Net assets – Class A	$	104,738,318
Shares outstanding – Class A		14,000,687
Net asset value per share – Class A		$7.48
Maximum offering price per share – Class A2		$7.83
Net assets – Class B	$	809,094
Shares outstanding – Class B		108,162
Net asset value per share – Class B		$7.48
Net assets – Class C	$	30,539,948
Shares outstanding – Class C		4,082,573
Net asset value per share – Class C		$7.48
Net assets – Administrator Class	$	71,641,899
Shares outstanding – Administrator Class		9,480,901
Net asset value per share – Administrator Class		$7.56
Net assets – Institutional Class	$	175,316,983
Shares outstanding – Institutional Class		23,215,074
Net asset value per share – Institutional Class		$7.55
Net assets – Investor Class	$	331,894,893
Shares outstanding – Investor Class		44,179,332
Net asset value per share – Investor Class		$7.51
Investments in unaffiliated securities (including securities on loan), at cost	$	651,331,790
Investments in affiliated securities, at cost	$	47,811,637
Total investments, at cost	$	699,143,427
Securities on loan, at value	$	14,120,970

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

2. Maximum offering price is computed as 100/95.50 of net asset value. On investments of $50,000 or more, the offering price is reduced.

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

18 Wells Fargo Advantage High Income Fund Statement of operations—six months ended February 28, 2014 (unaudited)

Investment income
Interest	$	22,509,740
Securities lending income, net		68,220
Income from affiliated securities		10,667
Total investment income		22,588,627
Expenses
Advisory fee		1,759,923
Administration fees
Fund level		178,730
Class A		75,708
Class B		752
Class C		24,728
Administrator Class		33,845
Institutional Class		81,032
Investor Class		302,259
Shareholder servicing fees
Class A		118,293
Class B		1,174
Class C		38,638
Administrator Class		81,043
Investor Class		389,681
Distribution fees
Class B		3,523
Class C		115,914
Custody and accounting fees		21,220
Professional fees		34,258
Registration fees		56,117
Shareholder report expenses		51,771
Trustees’ fees and expenses		6,304
Other fees and expenses		17,628
Total expenses		3,392,541
Less: Fee waivers and/or expense reimbursements		(447,236	)
Net expenses		2,945,305
Net investment income		19,643,322
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		4,476,017
Futures transactions		(1,389,705	)
Net realized gains on investments		3,086,312
Net change in unrealized gains (losses) on:
Unaffiliated securities		24,595,204
Futures transactions		67,680
Net change in unrealized gains (losses) on investments		24,662,884
Net realized and unrealized gains (losses) on investments		27,749,196
Net increase in net assets resulting from operations	$	47,392,518

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

Statement of changes in net assets Wells Fargo Advantage High Income Fund 19

	Six months ended February 28, 2014 (unaudited)						Year ended August 31, 2013
Operations
Net investment income				$	19,643,322					$	46,786,557
Net realized gains on investments					3,086,312						31,870,957
Net change in unrealized gains (losses) on investments					24,662,884						(37,958,563	)
Net increase in net assets resulting from operations					47,392,518						40,698,951
Distributions to shareholders from
Net investment income
Class A					(2,568,610	)					(6,334,223	)
Class B					(21,967	)					(60,295	)
Class C					(723,129	)					(1,561,617	)
Administrator Class					(1,868,766	)					(3,027,716	)
Institutional Class					(5,893,662	)					(16,317,531	)
Investor Class					(8,585,694	)					(19,486,135	)
Net realized gains
Class A					(3,842,804	)					(630,804	)
Class B					(38,215	)					(7,202	)
Class C					(1,274,798	)					(173,756	)
Administrator Class					(2,836,913	)					(184,150	)
Institutional Class					(8,563,107	)					(1,630,359	)
Investor Class					(13,040,948	)					(1,906,689	)
Total distributions to shareholders					(49,258,613	)					(51,320,477	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		2,767,780			20,596,797			3,729,282			28,906,262
Class B		12,058			91,004			34,483			267,438
Class C		309,497			2,332,959			988,380			7,647,434
Administrator Class		2,355,821			17,926,770			10,774,515			84,601,571
Institutional Class		1,448,521			10,963,153			9,948,069			77,497,291
Investor Class		7,546,997			56,788,891			27,967,225			217,146,116
					108,699,574						416,066,112
Reinvestment of distributions
Class A		827,081			6,143,398			863,554			6,659,606
Class B		7,542			55,985			8,173			63,017
Class C		258,015			1,915,079			215,962			1,664,678
Administrator Class		591,839			4,441,554			390,072			3,034,685
Institutional Class		501,603			3,760,383			771,438			6,014,965
Investor Class		2,629,319			19,603,463			2,396,488			18,560,873
					35,919,862						35,997,824
Payment for shares redeemed
Class A		(2,842,579	)		(21,350,360	)		(7,565,808	)		(58,516,955	)
Class B		(51,052	)		(383,490	)		(95,801	)		(739,857	)
Class C		(687,737	)		(5,156,985	)		(1,208,988	)		(9,304,082	)
Administrator Class		(1,997,014	)		(15,120,582	)		(6,972,702	)		(54,516,411	)
Institutional Class		(7,480,428	)		(56,329,830	)		(21,331,616	)		(167,130,276	)
Investor Class		(7,731,605	)		(58,155,653	)		(33,521,435	)		(259,877,886	)
					(156,496,900	)					(550,085,467	)
Net decrease in net assets resulting from capital share transactions					(11,877,464	)					(98,021,531	)
Total decrease in net assets					(13,743,559	)					(108,643,057	)
Net assets
Beginning of period					728,684,694						837,327,751
End of period				$	714,941,135					$	728,684,694
Overdistributed net investment income				$	(65,214	)				$	(46,708	)

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, 2014 (unaudited)			Year ended August 31												Year ended May 31
CLASS A				2013			2012			2011			20101			2010			20092
Net asset value, beginning of period	$	7.50		$	7.63		$	7.17		$	7.14		$	6.90		$	6.35		$	7.25
Net investment income		0.20			0.43			0.46			0.50			0.13			0.53			0.50
Net realized and unrealized gains (losses) on investments		0.29			(0.10	)		0.47			0.03			0.24			0.54			(0.90	)
Total from investment operations		0.49			0.33			0.93			0.53			0.37			1.07			(0.40	)
Distributions to shareholders from
Net investment income		(0.20	)		(0.42	)		(0.47	)		(0.50	)		(0.13	)		(0.52	)		(0.50	)
Net realized gains		(0.31	)		(0.04	)		0.00			0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.51	)		(0.46	)		(0.47	)		(0.50	)		(0.13	)		(0.52	)		(0.50	)
Net asset value, end of period	$	7.48		$	7.50		$	7.63		$	7.17		$	7.14		$	6.90		$	6.35
Total return3		6.76	%		4.42	%		13.30	%		7.41	%		5.44	%		17.20	%		(5.07	)%
Ratios to average net assets (annualized)
Gross expenses		1.00	%		0.99	%		1.00	%		1.01	%		1.00	%		1.03	%		1.05	%
Net expenses		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.89	%
Net investment income		5.43	%		5.52	%		6.30	%		6.77	%		7.52	%		7.86	%		8.13	%
Supplemental data
Portfolio turnover rate		26	%		60	%		22	%		78	%		11	%		77	%		52	%
Net assets, end of period (000s omitted)		$104,738			$99,410			$123,727			$102,361			$124,730			$99,515			$105,678

1. For the three months ended August 31, 2010. The Fund changed its fiscal year end from May 31 to August 31, effective August 31, 2010.

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

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

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

Financial highlights Wells Fargo Advantage High Income Fund 21

(For a share outstanding throughout each period)

	Six months ended February 28, 2014 (unaudited)			Year ended August 31												Year ended May 31
CLASS B				2013			2012			2011			20101			2010			20092
Net asset value, beginning of period	$	7.50		$	7.63		$	7.17		$	7.13		$	6.90		$	6.35		$	6.99
Net investment income		0.17	3		0.37	3		0.41	3		0.45			0.12			0.48			0.39
Net realized and unrealized gains (losses) on investments		0.29			(0.09	)		0.46			0.04			0.23			0.54			(0.64	)
Total from investment operations		0.46			0.28			0.87			0.49			0.35			1.02			(0.25	)
Distributions to shareholders from
Net investment income		(0.17	)		(0.37	)		(0.41	)		(0.45	)		(0.12	)		(0.47	)		(0.39	)
Net realized gains		(0.31	)		(0.04	)		0.00			0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.48	)		(0.41	)		(0.41	)		(0.45	)		(0.12	)		(0.47	)		(0.39	)
Net asset value, end of period	$	7.48		$	7.50		$	7.63		$	7.17		$	7.13		$	6.90		$	6.35
Total return4		6.37	%		3.64	%		12.46	%		6.76	%		5.10	%		16.33	%		(3.11	)%
Ratios to average net assets (annualized)
Gross expenses		1.75	%		1.74	%		1.75	%		1.76	%		1.75	%		1.78	%		1.79	%
Net expenses		1.65	%		1.65	%		1.65	%		1.65	%		1.65	%		1.65	%		1.65	%
Net investment income		4.67	%		4.77	%		5.59	%		6.04	%		6.66	%		7.17	%		7.35	%
Supplemental data
Portfolio turnover rate		26	%		60	%		22	%		78	%		11	%		77	%		52	%
Net assets, end of period (000s omitted)		$809			$1,047			$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.

22 Wells Fargo Advantage High Income Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2014 (unaudited)			Year ended August 31												Year ended May 31
CLASS C				2013			2012			2011			20101			2010			20092
Net asset value, beginning of period	$	7.50		$	7.63		$	7.17		$	7.14		$	6.90		$	6.35		$	6.99
Net investment income		0.17			0.37			0.41			0.45			0.12			0.48			0.39
Net realized and unrealized gains (losses) on investments		0.29			(0.09	)		0.46			0.03			0.24			0.54			(0.64	)
Total from investment operations		0.46			0.28			0.87			0.48			0.36			1.02			(0.25	)
Distributions to shareholders from
Net investment income		(0.17	)		(0.37	)		(0.41	)		(0.45	)		(0.12	)		(0.47	)		(0.39	)
Net realized gains		(0.31	)		(0.04	)		0.00			0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.48	)		(0.41	)		(0.41	)		(0.45	)		(0.12	)		(0.47	)		(0.39	)
Net asset value, end of period	$	7.48		$	7.50		$	7.63		$	7.17		$	7.14		$	6.90		$	6.35
Total return3		6.37	%		3.65	%		12.47	%		6.62	%		5.25	%		16.33	%		(3.12	)%
Ratios to average net assets (annualized)
Gross expenses		1.76	%		1.74	%		1.75	%		1.76	%		1.75	%		1.78	%		1.79	%
Net expenses		1.65	%		1.65	%		1.65	%		1.65	%		1.65	%		1.65	%		1.65	%
Net investment income		4.67	%		4.76	%		5.56	%		6.01	%		6.75	%		7.04	%		7.29	%
Supplemental data
Portfolio turnover rate		26	%		60	%		22	%		78	%		11	%		77	%		52	%
Net assets, end of period (000s omitted)		$30,540			$31,534			$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 23

(For a share outstanding throughout each period)

	Six months ended February 28, 2014 (unaudited)			Year ended August 31
ADMINISTRATOR CLASS				2013			2012			2011			20101
Net asset value, beginning of period	$	7.58		$	7.70		$	7.24		$	7.20		$	7.23
Net investment income		0.21			0.44			0.48			0.51			0.04
Net realized and unrealized gains (losses) on investments		0.29			(0.08	)		0.46			0.04			(0.02	)
Total from investment operations		0.50			0.36			0.94			0.55			0.02
Distributions to shareholders from
Net investment income		(0.21	)		(0.44	)		(0.48	)		(0.51	)		(0.05	)
Net realized gains		(0.31	)		(0.04	)		0.00			0.00			0.00
Total distributions to shareholders		(0.52	)		(0.48	)		(0.48	)		(0.51	)		(0.05	)
Net asset value, end of period	$	7.56		$	7.58		$	7.70		$	7.24		$	7.20
Total return2		6.77	%		4.68	%		13.36	%		7.66	%		0.22	%
Ratios to average net assets (annualized)
Gross expenses		0.93	%		0.91	%		0.90	%		0.92	%		0.99	%
Net expenses		0.80	%		0.80	%		0.80	%		0.79	%		0.84	%
Net investment income		5.52	%		5.57	%		6.37	%		6.73	%		7.78	%
Supplemental data
Portfolio turnover rate		26	%		60	%		22	%		78	%		11	%
Net assets, end of period (000s omitted)		$71,642			$64,626			$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.

24 Wells Fargo Advantage High Income Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2014 (unaudited)			Year ended August 31												Year ended May 31
INSTITUTIONAL CLASS				2013			2012			2011			20101			2010			2009
Net asset value, beginning of period	$	7.57		$	7.70		$	7.24		$	7.20		$	6.96		$	6.40		$	7.31
Net investment income		0.22			0.46			0.50			0.54			0.14			0.57			0.53
Net realized and unrealized gains (losses) on investments		0.29			(0.09	)		0.46			0.04			0.24			0.54			(0.91	)
Total from investment operations		0.51			0.37			0.96			0.58			0.38			1.11			(0.38	)
Distributions to shareholders from
Net investment income		(0.22	)		(0.46	)		(0.50	)		(0.54	)		(0.14	)		(0.55	)		(0.53	)
Net realized gains		(0.31	)		(0.04	)		0.00			0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.53	)		(0.50	)		(0.50	)		(0.54	)		(0.14	)		(0.55	)		(0.53	)
Net asset value, end of period	$	7.55		$	7.57		$	7.70		$	7.24		$	7.20		$	6.96		$	6.40
Total return2		6.93	%		4.85	%		13.69	%		7.98	%		5.52	%		17.76	%		(4.75	)%
Ratios to average net assets (annualized)
Gross expenses		0.67	%		0.66	%		0.67	%		0.68	%		0.67	%		0.68	%		0.70	%
Net expenses		0.50	%		0.50	%		0.50	%		0.50	%		0.50	%		0.50	%		0.50	%
Net investment income		5.81	%		5.92	%		6.69	%		7.15	%		7.94	%		8.18	%		8.42	%
Supplemental data
Portfolio turnover rate		26	%		60	%		22	%		78	%		11	%		77	%		52	%
Net assets, end of period (000s omitted)		$175,317			$217,648			$302,894			$238,490			$197,158		$	189,936			$119,004

1. For the three months ended August 31, 2010. The Fund changed its fiscal year end from May 31 to August 31, effective August 31, 2010.

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

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

Financial highlights Wells Fargo Advantage High Income Fund 25

(For a share outstanding throughout each period)

	Six months ended February 28, 2014 (unaudited)			Year ended August 31												Year ended May 31
INVESTOR CLASS				2013			2012			2011			20101			2010			2009
Net asset value, beginning of period	$	7.53		$	7.66		$	7.20		$	7.16		$	6.93		$	6.37		$	7.28
Net investment income		0.20			0.42			0.47			0.50			0.13			0.53			0.50
Net realized and unrealized gains (losses) on investments		0.29			(0.09	)		0.46			0.04			0.23			0.55			(0.91	)
Total from investment operations		0.49			0.33			0.93			0.54			0.36			1.08			(0.41	)
Distributions to shareholders from
Net investment income		(0.20	)		(0.42	)		(0.47	)		(0.50	)		(0.13	)		(0.52	)		(0.50	)
Net realized gains		(0.31	)		(0.04	)		0.00			0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.51	)		(0.46	)		(0.47	)		(0.50	)		(0.13	)		(0.52	)		(0.50	)
Net asset value, end of period	$	7.51		$	7.53		$	7.66		$	7.20		$	7.16		$	6.93		$	6.37
Total return2		6.73	%		4.40	%		13.24	%		7.53	%		5.27	%		17.28	%		(5.20	)%
Ratios to average net assets (annualized)
Gross expenses		1.03	%		1.01	%		1.03	%		1.04	%		1.04	%		1.07	%		1.10	%
Net expenses		0.93	%		0.93	%		0.93	%		0.93	%		0.94	%		0.95	%		0.92	%
Net investment income		5.39	%		5.48	%		6.27	%		6.73	%		7.49	%		7.76	%		7.95	%
Supplemental data
Portfolio turnover rate		26	%		60	%		22	%		78	%		11	%		77	%		52	%
Net assets, end of period (000s omitted)		$331,895			$314,420			$343,752			$278,024			$322,015			$286,836			$231,308

1. For the three months ended August 31, 2010. The Fund changed its fiscal year end from May 31 to August 31, effective August 31, 2010.

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

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

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

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). These financial statements report on the 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 (generally 4 p.m. Eastern Time).

Fixed income securities acquired with maturities exceeding 60 days are valued based on evaluated bid prices provided by an independent pricing service which may utilize both transaction data and market information such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data. If prices are not available from the independent pricing service or prices received are deemed not representative of market value, prices will be obtained from an independent broker-dealer or otherwise determined based on the Fund’s Valuation Procedures.

Short-term securities, with maturities of 60 days or less at time of purchase, 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.

Futures that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price.

Investments in registered open-end investment companies are valued at net asset value. Non-registered investment vehicles 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 in good faith by the Board of Trustees of the Fund. 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 values, to assess the continued appropriateness of the fair valuation methodologies used. These securities are fair valued on a day-to-day basis, taking into consideration changes to appropriate market information and any significant changes to the inputs considered in the valuation process until there is a readily available price provided on an exchange or by an independent pricing service. Valuations received from an independent pricing service or independent broker-dealer quotes are periodically validated by comparisons to most recent trades and valuations provided by other independent pricing services in addition to the review of prices by the adviser and/or subadviser. Unobservable inputs used in determining fair valuations are identified based on the type of security, taking into consideration factors utilized by market participants in valuing the investment, knowledge about the issuer and the current market environment.

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

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

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 “Securities Lending Fund”). The Securities Lending 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 Securities Lending Fund increase. All of the fees received by Funds Management are paid to WellsCap for its services as subadviser. The Securities Lending 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. Securities Lending Fund investments are fair valued based upon the amortized cost valuation technique. Income earned from investment in the Securities Lending 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.

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.

28 Wells Fargo Advantage High 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.

As of August 31, 2013, the Fund had capital loss carryforwards available to offset future net realized capital gains in the amount of $1,069,723 with $1,019,921 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, 2014, the inputs used in valuing investments in securities were as follows:

Investments in securities	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Corporate bonds and notes	$	0	$	590,897,320	$	0	$	590,897,320
Municipal obligations		0		4,215,480		0		4,215,480
Term loans		0		3,977,870		0		3,977,870
Yankee corporate bonds and notes		0		73,222,498		0		73,222,498
Short-term investments
Investment companies		33,388,112		14,423,525		0		47,811,637
U.S. Treasury securities		799,989		0		0		799,989
	$	34,188,101	$	686,736,693	$	0	$	720,924,794

As of February 28, 2014, the inputs used in valuing the Fund’s other financial instruments were as follows:

	Quoted prices (Level 1)			Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Futures contracts	$	(92,455	)*	$	0	$	0	$	(92,455	)

* Amount represents the net unrealized losses.

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

Transfers in and transfers out are recognized at the end of the reporting period. For the six months ended February 28, 2014, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

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, 2014, 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 and an indirect, wholly owned subsidiary of Wells Fargo, 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, 2014 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, 2014, Wells Fargo Funds Distributor, LLC received $2,570 from the sale of Class A shares and $64 and $24 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, 2014 were $175,430,590 and $214,246,707, respectively.

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

6. DERIVATIVE TRANSACTIONS

During the six months ended February 28, 2014, the Fund entered into futures contracts to speculate on interest rates and to help manage the duration of the portfolio.

At February 28, 2014, the Fund had short futures contracts outstanding as follows:

Expiration date	Counterparty	Contracts	Type	Contract value at February 28, 2014		Unrealized losses
6-19-2014	JPMorgan	100 Short	10-Year U.S. Treasury Notes	$	12,453,125	$	(25,190	)
6-30-2014	JPMorgan	300 Short	5-Year U.S. Treasury Notes		35,957,813		(67,265	)

The Fund had an average notional amount of $64,483,359 in short futures contracts during the six months ended February 28, 2014.

On February 28, 2014, the cumulative unrealized losses on futures contracts in the amount of $92,455 are reflected in net unrealized gains on investments on the Statement of Assets and Liabilities. The receivable for daily variation margin on open futures contracts reflected in the Statement of Assets and Liabilities only represents the current day’s variation margin. The realized losses and change in unrealized gains (losses) on futures contracts are reflected in the Statement of Operations.

For certain types of derivative transactions, the Fund has entered into International Swaps and Derivatives Association, Inc. master agreements (“ISDA Master Agreements”) or similar agreements with approved counterparties. The ISDA Master Agreements or similar agreements may have requirements to deliver/deposit securities or cash to/with an exchange or broker-dealer as collateral and allows the Fund to offset, with each counterparty, certain derivative financial instrument’s assets and/or liabilities with collateral held or pledged. Collateral requirements differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives while collateral terms are contract specific for over-the-counter traded. Cash collateral that has been pledged to cover obligations of the Fund under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Portfolio of Investments. With respect to balance sheet offsetting, absent an event of default by the counterparty or a termination of the agreement, the reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities are not offset across transactions between the Fund and the applicable counterparty. A reconciliation of the gross amounts on the Statement of Assets and Liabilities to the net amounts by derivative type, including any collateral exposure, is as follows:

Derivative type	Counterparty		Gross amounts of assets in the Statement of Assets and Liabilities		Amounts subject to netting agreements		Collateral received		Net amount
Futures - variation margin		JPMorgan	$	57,031	$	0	$	0	$	57,031

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, 2014, the Fund paid $754 in commitment fees.

For the six months ended February 28, 2014, 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.

Other information (unaudited) Wells Fargo Advantage High Income 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 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 each fund in the Wells Fargo Advantage family of funds, which consists of 132 mutual 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 Harbor 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 50 portfolios as of 12/16/2013); 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 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 73 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 59 funds and Assistant Treasurer of 73 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 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 —  Columbian Peso

CLP —  Chilean peso

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 —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

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

NGN —  Nigerian naira

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

RON —  Romanian lei

RUB —  Russian ruble

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

THB —  Thai baht

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

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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

© 2014 Wells Fargo Funds Management, LLC. All rights reserved.

223531 04-14 SA217/SAR217 02-14

Wells Fargo Advantage High Yield Bond Fund

Semi-Annual Report

February 28, 2014

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
Portfolio of investments	9
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	22
Other information	28
List of abbreviations	31

The views expressed and any forward-looking statements are as of February 28, 2014, 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 and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

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

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Fixed-income markets shifted during the period, driven by vacillations between U.S. Treasury yield increases and subsequent declines.

Reassurances from the Fed that a highly accommodative monetary policy would continue throughout 2014 inspired price rallies across both the investment-grade and high-yield bond markets.

Dear Valued Shareholder:

We are pleased to offer you this semi-annual report for the Wells Fargo Advantage High Yield Bond Fund for the six-month period that ended February 28, 2014. Fixed-income markets shifted during the period, driven by vacillations between U.S. Treasury yield increases and subsequent declines. However, on the whole, investment-grade (measured by the Barclays U.S. Aggregate Bond Index¹) and high-yield markets (measured by the Barclays U.S. High Yield Bond Index²) generated positive returns during the period, notably benefiting from the strong price improvement and declining U.S. Treasury yields that occurred in September and October of 2013 as well as the opening months of 2014. Although the returns of the U.S. high-yield market have often been positively correlated with U.S. equity returns (measured by the S&P 500 Index³) over the long-run, over the period, high-yield (measured by the Barclays U.S. High Yield Bond Index) generally performed well even when equities did not. The lower-rated corporate bond credit tiers outperformed the respectively higher-rated investment-grade credit tiers during the period.

A decline in bond prices was halted by the Fed’s postponement of tapering its bond-buying program.

Before the six-month period began, equity markets rallied, most notably in May and June of 2013. This led to a sharp increase in U.S. Treasury yields and declining valuations for much of the fixed-income markets (measured by the Barclays U.S. Aggregate Bond Index). However, in July and August 2013, that equity exuberance quieted a bit, and fixed-income markets stabilized. Returns across the fixed-income markets were largely negative in investment-grade and high-yield markets but modest in comparison with the declines in May and June of 2013.

But, by September and October of 2013, investment-grade and high-yield bond markets began generating positive returns yet again, as the Federal Reserve (Fed) backtracked on its intentions to taper its quantitative easing program, postponing it until 2014, at the earliest. This created a temporary rally in bonds that lasted until around November 20, 2013, when notes were released from the Fed’s October 2013 meeting that tapering of the bond-buying programs would not be postponed beyond January 2014. In response, long-term U.S. Treasury yields and mortgage rates ratcheted higher on expectations for an unwinding of monetary accommodation in the upcoming months. This led to declines in pricing across much of the core fixed-income markets (measured by the Barclays U.S. Aggregate Bond Index). U.S. high-yield markets were better able to absorb the shift in U.S. Treasury yields and continued to provide positive returns along with rallies in the equity markets.

Favorable conditions for fixed-income markets were restored in January and February 2014.

Seemingly much to the surprise of many everyday investors and seasoned investment professionals alike, fixed-income markets (measured by the Barclays U.S. Aggregate Bond Index) largely outperformed U.S. equity markets (measured by the S&P 500 Index) during the opening months of 2014. A pullback in equity exuberance in January and reassurances from the Fed that a highly accommodative monetary policy would continue throughout 2014 inspired price rallies across both the investment-grade and high-yield bond markets. U.S. Treasury yields declined in January 2014 and corporate bonds and mortgage-backed securities performed notably well. U.S. high-yield securities generated positive returns in January 2014 but lagged the rally across the investment-grade bond markets. This theme reversed in February 2014, as high-yield sectors rallied and investment-grade sectors performed well but not to the extent of the lowest-rated credit tiers.

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

One positive takeaway for bond investors that helped fuel the fixed-income (measured by the Barclays U.S. Aggregate Bond Index) rallies was former Fed Chairman Bernanke’s guidance at the end of 2013. He indicated that the tapering of the Fed’s bond-buying program would proceed at a slow pace and that a reduction in quantitative easing should not be equivocated with a tightening of monetary policy. The distinction was important—although the bond-buying program was declining in volume, it was, nonetheless, still continuing. Additionally, the federal funds target rate would remain unchanged for the foreseeable future, with the implications that it would not increase until the bond-buying program was fully disbanded. These were important statements for fixed-income investors that helped bolster U.S. fixed-income valuations in the opening months of 2014.

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

Periods of investment uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Advantage Funds offers more than 100 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. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

Thank you for choosing to invest with Wells Fargo 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

1. The Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and CMBS. You cannot invest directly in an index.

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

3. The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock’s weight in the index proportionate to its market value. You cannot invest directly in an index.

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

Notice to shareholders

The Fund and Wells Fargo Funds Management, LLC (“Funds Management”) have received an exemptive order from the SEC that permits Funds Management, subject to the approval of the Board of Trustees of the Fund, to select or replace certain subadvisers to manage all or a portion of the Fund’s assets and enter into, amend or terminate a sub-advisory agreement with certain subadvisers without obtaining shareholder approval (“Multi-manager Structure”). The Multi-manager Structure applies to subadvisers that are not affiliated with Funds Management or the Fund, except to the extent that affiliation arises solely because such subadvisers provide sub-advisory services to the Fund (“Non-affiliated Subadvisers”), as well as subadvisers that are indirect or direct wholly-owned subsidiaries of Funds Management or of another company that, indirectly or directly, wholly owns Funds Management (“Wholly-owned Subadvisers”).

Pursuant to the SEC order, Funds Management, with the approval of the Board of Trustees, has the discretion to terminate any subadvisers and allocate and reallocate the Fund’s assets among any other Non-affiliated Subadvisers or Wholly-owned Subadvisers. Funds Management, subject to oversight and supervision by the Board of Trustees, has responsibility to continue to oversee any subadvisers to the Fund and to recommend, for approval by the Board of Trustees, the hiring, termination and replacement of subadvisers for the Fund. In the event that a new subadviser is hired pursuant to the Multi-manager Structure, the Fund is required to provide notice to shareholders within 90 days.

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

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6 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, 2014

		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		0.94			15.25		6.52		5.56		16.29		7.00		1.04		1.03
Class B (EKHBX)*	9-11-1935		(0.22	)		15.20		6.46		4.78		15.43		6.46		1.79		1.78
Class C (EKHCX)	1-21-1998		3.78			15.43		6.22		4.78		15.43		6.22		1.79		1.78
Administrator Class (EKHYX)	4-14-1998		–			–		–		5.81		16.56		7.27		0.98		0.80
BofA Merrill Lynch U.S. High Yield Master II Constrained Index4	–		–			–		–		8.37		18.77		8.59		–		–

* 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 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, which 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 7.

Performance highlights (unaudited) Wells Fargo Advantage High Yield Bond Fund 7

Ten largest long-term holdings5 (%) as of February 28, 2014
Tronox Finance LLC, 6.38%, 8-15-2020	5.00
Hertz Corporation, 6.25%, 10-15-2022	4.51
Seagate Technology HDD Holdings, 7.00%, 11-1-2021	4.37
Olin Corporation, 5.50%, 8-15-2022	4.35
DaVita HealthCare Partners Incorporated, 5.75%, 8-15-2022	4.31
Bristow Group Incorporated, 6.25%, 10-15-2022	4.19
NRG Energy Incorporated, 6.63%, 3-15-2023	4.17
Fresenius Medical Care Holdings Incorporated, 5.88%, 1-31-2022	4.07
Valeant Pharmaceuticals International Incorporated, 7.25%, 7-15-2022	4.06
Penske Auto Group Incorporated, 5.75%, 10-1-2022	3.40

Credit quality⁶ as of February 28, 2014

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. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report.

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 the amounts shown. 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 credit quality of portfolio holdings reflected in the chart is based on ratings from Standard & Poor’s, Moody’s Investors Service, and/or Fitch Ratings Ltd. Credit quality ratings apply to the underlying holdings of the Fund and not to the Fund itself. The percentages of the Fund’s portfolio with the ratings depicted in the chart are calculated based on the total market value of fixed income securities held by the Fund. 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 rating agencies, that rating was utilized. Standard & Poor’s rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Ratings from A to CCC may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the rating categories. Standard & Poor’s rates the creditworthiness of short-term notes from SP-1 (highest) to SP-3 (lowest). Moody’s rates the creditworthiness of bonds, ranging from Aaa (highest) to C (lowest). Ratings Aa to B may be modified by the addition of a number 1 (highest) to 3 (lowest) to show relative standing within the ratings categories. Moody’s rates the creditworthiness of short-term U.S. tax-exempt municipal securities from MIG 1/VMIG 1 (highest) to SG (lowest). Fitch rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Credit quality, and credit quality ratings are subject to change.

8 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, 2013 to February 28, 2014.

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 9-1-2013		Ending account value 2-28-2014		Expenses paid during the period1		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,074.67	$	5.30		1.03	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,019.69	$	5.16		1.03	%
Class B
Actual	$	1,000.00	$	1,070.76	$	9.09		1.77	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.02	$	8.85		1.77	%
Class C
Actual	$	1,000.00	$	1,070.73	$	9.14		1.78	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.97	$	8.90		1.78	%
Administrator Class
Actual	$	1,000.00	$	1,075.90	$	4.12		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, 2014 (unaudited) Wells Fargo Advantage High Yield Bond Fund 9

Security name	Shares			Value
Common Stocks: 9.31%
Consumer Discretionary: 1.16%
Distributors: 0.53%
Genuine Parts Company		20,000		$	1,761,800
Hotels, Restaurants & Leisure: 0.00%
Trump Entertainment Resorts Incorporated †(a)(i)		1,840			0
Media: 0.63%
Comcast Corporation Class A		40,000			2,067,600
Consumer Staples: 0.33%
Food & Staples Retailing: 0.33%
CVS Caremark Corporation		15,000			1,097,100
Energy: 2.03%
Energy Equipment & Services: 0.12%
Bristow Group Incorporated		5,000			388,000
Oil, Gas & Consumable Fuels: 1.91%
ConocoPhillips Company		5,000			332,500
Energy Transfer LP		25,000			1,091,250
EOG Resources Incorporated		3,000			568,260
Marathon Petroleum Corporation		12,000			1,008,000
Phillips 66		15,000			1,122,900
Plains All American Pipeline LP		40,000			2,166,800
					6,289,710
Financials: 0.53%
REITs: 0.53%
Plum Creek Timber Company		40,000			1,731,600
Health Care: 1.85%
Biotechnology: 0.19%
Amgen Incorporated		5,000			620,100
Health Care Equipment & Supplies: 0.68%
Becton Dickinson & Company		7,000			806,540
Covidien plc		20,000			1,439,000
					2,245,540
			��
Life Sciences Tools & Services: 0.23%
Thermo Fisher Scientific Incorporated		6,000			747,240
Pharmaceuticals: 0.75%
AbbVie Incorporated		20,000			1,018,200
Eli Lilly & Company		15,000			894,150
Mylan Laboratories Incorporated †		10,000			555,700
					2,468,050

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

10 Wells Fargo Advantage High Yield Bond Fund Portfolio of investments—February 28, 2014 (unaudited)

Security name						Shares		Value
Industrials: 1.37%
Aerospace & Defense: 0.76%
General Dynamics Corporation							8,000	$	876,320
Lockheed Martin Corporation							10,000		1,623,000
									2,499,320
Electrical Equipment: 0.35%
AMETEK Incorporated							10,000		532,400
Regal-Beloit Corporation							2,000		147,380
Rockwell Automation Incorporated							4,000		491,360
									1,171,140
Industrial Conglomerates: 0.03%
General Electric Company							4,000		101,880
Machinery: 0.23%
IDEX Corporation							10,000		750,700
Information Technology : 0.55%
IT Services: 0.23%
Automatic Data Processing Incorporated							10,000		777,800
Technology Hardware, Storage & Peripherals: 0.32%
Seagate Technology plc							20,000		1,043,800
Materials: 1.27%
Chemicals: 1.27%
FMC Corporation							5,000		385,900
LyondellBasell Industries Class A							43,000		3,787,440
									4,173,340
Utilities: 0.22%
Electric Utilities: 0.22%
American Electric Power Company Incorporated							7,000		351,400
Edison International							7,000		366,590
									717,990
Total Common Stocks (Cost $27,091,097)									30,652,710
	Interest rate			Maturity date		Principal
Corporate Bonds and Notes: 83.49%
Consumer Discretionary: 6.35%
Auto Components: 2.08%
American Axle Manufacturing Incorporated		6.63	%		10-15-2022	$	2,250,000		2,446,875
Cooper Tire & Rubber Company		7.63			3-15-2027		1,500,000		1,477,500
Lear Corporation 144A		4.75			1-15-2023		3,000,000		2,910,000
									6,834,375

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

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage High Yield Bond Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Hotels, Restaurants & Leisure: 0.57%
Speedway Motorsports Incorporated		6.75	%		2-1-2019	$	1,775,000	$	1,881,500
Media: 0.30%
DISH DBS Corporation		5.00			3-15-2023		1,000,000		992,500
Specialty Retail: 3.40%
Penske Auto Group Incorporated		5.75			10-1-2022		10,702,000		11,183,590
Energy: 15.84%
Energy Equipment & Services: 7.36%
Atwood Oceanics Incorporated		6.50			2-1-2020		1,000,000		1,077,500
Bristow Group Incorporated		6.25			10-15-2022		12,990,000		13,801,875
Dresser-Rand Group Incorporated		6.50			5-1-2021		1,225,000		1,310,750
Gulfmark Offshore Incorporated		6.38			3-15-2022		1,635,000		1,684,050
Hornbeck Offshore Services Incorporated		5.88			4-1-2020		1,350,000		1,404,000
PHI Incorporated		8.63			10-15-2018		2,050,000		2,203,750
Regency Energy Partners LP		5.88			3-1-2022		2,625,000		2,730,000
									24,211,925
Oil, Gas & Consumable Fuels: 8.48%
Atlas Pipeline Partners LP		5.88			8-1-2023		8,000,000		7,860,000
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		1,995,000
Sabine Pass Liquefaction LLC 144A		5.88			2-1-2021		7,000,000		7,175,000
Suburban Propane Partners LP		7.38			3-15-2020		2,550,000		2,741,250
Tesoro Logistics LP		5.88			10-1-2020		4,000,000		4,180,000
									27,921,438
Financials: 1.84%
REITs: 1.84%
Crown Castle International Corporation		5.25			1-15-2023		2,000,000		2,050,000
Sabra Health Care Incorporated		5.38			6-1-2023		4,000,000		3,990,000
									6,040,000
Health Care: 18.50%
Health Care Equipment & Supplies: 2.60%
Hologic Incorporated		6.25			8-1-2020		8,062,000		8,565,875
Health Care Providers & Services: 9.30%
Aviv Healthcare Properties LP		7.75			2-15-2019		1,150,000		1,242,000
DaVita HealthCare Partners Incorporated		5.75			8-15-2022		13,425,000		14,196,938
Fresenius Medical Care Holdings Incorporated 144A		5.88			1-31-2022		12,529,000		13,406,030
MPT Operating Partnership LP		6.88			5-1-2021		1,625,000		1,759,063
									30,604,031
Pharmaceuticals: 6.60%
Forest Laboratories Incorporated 144A		5.00			12-15-2021		2,000,000		2,140,000
Salix Pharmaceuticals Incorporated 144A		6.00			1-15-2021		5,800,000		6,206,000

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

12 Wells Fargo Advantage High Yield Bond Fund Portfolio of investments—February 28, 2014 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Pharmaceuticals (continued)
Valeant Pharmaceuticals International Incorporated 144A		7.25	%		7-15-2022	$	12,000,000	$	13,350,000
									21,696,000
Industrials: 12.47%
Aerospace & Defense: 0.62%
Alliant Techsystems Incorporated 144A		5.25			10-1-2021		2,000,000		2,050,000
Building Products: 0.66%
Dycom Investments Incorporated		7.13			1-15-2021		2,000,000		2,160,000
Commercial Services & Supplies: 2.28%
Clean Harbors Incorporated		5.13			6-1-2021		1,000,000		1,020,000
Iron Mountain Incorporated		5.75			8-15-2024		6,650,000		6,483,750
									7,503,750
Electrical Equipment: 4.23%
Belden Incorporated 144A		5.50			9-1-2022		2,850,000		2,814,375
General Cable Corporation 144A		6.50			10-1-2022		11,000,000		11,110,000
									13,924,375
Machinery: 0.17%
Columbus McKinnon Corporation		7.88			2-1-2019		525,000		567,000
Road & Rail: 4.51%
Hertz Corporation «		6.25			10-15-2022		14,021,000		14,827,208
Information Technology: 1.57%
IT Services: 1.57%
Neustar Incorporated		4.50			1-15-2023		6,000,000		5,175,000
Materials: 15.99%
Chemicals: 10.94%
Celanese U.S. Holdings LLC		4.63			11-15-2022		2,000,000		1,990,000
Huntsman International LLC		4.88			11-15-2020		1,000,000		1,018,750
Kraton Polymers LLC		6.75			3-1-2019		2,105,000		2,239,194
Olin Corporation		5.50			8-15-2022		14,000,000		14,315,000
Tronox Finance LLC «		6.38			8-15-2020		16,000,000		16,440,000
									36,002,944
Containers & Packaging: 3.60%
Sealed Air Corporation 144A		5.25			4-1-2023		500,000		507,500
Sealed Air Corporation 144A		6.50			12-1-2020		8,635,000		9,552,469
Silgan Holdings Incorporated		5.00			4-1-2020		1,750,000		1,785,000
									11,844,969
Paper & Forest Products: 1.45%
P.H. Glatfelter Company		5.38			10-15-2020		4,630,000		4,768,900

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

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage High Yield Bond Fund 13

Security name	Interest rate			Maturity date		Principal			Value
Telecommunication Services: 4.22%
Diversified Telecommunication Services: 1.06%								��
GCI Incorporated		8.63	%		11-15-2019	$	3,235,000		$	3,477,625
Wireless Telecommunication Services: 3.16%
MetroPCS Wireless Incorporated		6.63			11-15-2020		1,575,000			1,689,188
SBA Telecommunications Corporation		5.63			10-1-2019		6,700,000			7,018,250
SBA Telecommunications Corporation		5.75			7-15-2020		1,625,000			1,710,313
										10,417,751
Utilities: 6.71%
Electric Utilities: 1.33%
DPL Incorporated		7.25			10-15-2021		4,375,000			4,369,531
Gas Utilities: 0.53%
AmeriGas Finance LLC		6.75			5-20-2020		1,600,000			1,744,000
Independent Power & Renewable Electricity Producers: 4.85%
Calpine Corporation 144A		5.88			1-15-2024		500,000			512,500
Calpine Corporation 144A		6.00			1-15-2022		1,625,000			1,722,500
NRG Energy Incorporated		6.63			3-15-2023		13,000,000			13,715,000
										15,950,000
Total Corporate Bonds and Notes (Cost $268,443,195)										274,714,287
Yankee Corporate Bonds and Notes: 5.69%
Financials: 0.00%
Diversified Financial Services: 0.00%
Preferred Term Securities XII Limited (s)(i)		0.00			12-24-2033		720,000			7
Industrials: 0.45%
Electrical Equipment: 0.45%
Sensata Technologies Holdings B.V. 144A		4.88			10-15-2023		1,500,000			1,473,747
Information Technology: 4.37%
Technology Hardware, Storage & Peripherals: 4.37%
Seagate Technology HDD Holdings		7.00			11-1-2021		12,850,000			14,392,000
Telecommunication Services: 0.87%
Diversified Telecommunication Services: 0.87%
Intelsat Jackson Holdings SA		7.25			10-15-2020		2,625,000			2,854,688
Total Yankee Corporate Bonds and Notes (Cost $18,152,338)										18,720,442
	Yield					Shares
Short-Term Investments: 2.02%
Investment Companies: 1.94%
Wells Fargo Advantage Cash Investment Money Market Fund, Select Class (l)(u)		0.07					767,385			767,385
Wells Fargo Securities Lending Cash Investments, LLC (r)(v)(l)(u)		0.09					5,618,660			5,618,660
										6,386,045

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

14 Wells Fargo Advantage High Yield Bond Fund Portfolio of investments—February 28, 2014 (unaudited)

Security name	Yield			Maturity date		Principal		Value
U.S. Treasury Securities: 0.08%
U.S. Treasury Bill (z)#		0.01	%		3-13-2014	$	252,000	$	251,999
Total Short-Term Investments (Cost $6,638,034)									6,638,044

Total investments in securities
(Cost $320,324,664) *	100.51	%		330,725,483
Other assets and liabilities, net	(0.51	)		(1,669,766	)
Total net assets	100.00	%	$	329,055,717

† Non-income-earning 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.

(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 is on loan.

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

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

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

* Cost for federal income tax purposes is $320,320,743 and unrealized appreciation (depreciation) consists of:

Gross unrealized appreciation	$	12,654,734
Gross unrealized depreciation		(2,249,994	)
Net unrealized appreciation	$	10,404,740

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

Statement of assets and liabilities—February 28, 2014 (unaudited) Wells Fargo Advantage High Yield Bond Fund 15

Assets
Investments
In unaffiliated securities (including securities on loan), at value (see cost below)	$	324,339,438
In affiliated securities, at value (see cost below)		6,386,045
Total investments, at value (see cost below)		330,725,483
Foreign currency, at value (see cost below)		48
Receivable for investments sold		2,481,352
Receivable for Fund shares sold		100,560
Receivable for dividends and interest		4,330,316
Receivable for daily variation margin on open futures contracts		35,000
Receivable for securities lending income		882
Prepaid expenses and other assets		127,773
Total assets		337,801,414
Liabilities
Dividends payable		138,000
Payable for investments purchased		1,830,480
Payable for Fund shares redeemed		735,500
Payable upon receipt of securities loaned		5,618,660
Advisory fee payable		129,786
Distribution fees payable		50,580
Due to other related parties		54,877
Accrued expenses and other liabilities		187,814
Total liabilities		8,745,697
Total net assets	$	329,055,717
NET ASSETS CONSIST OF
Paid-in capital	$	380,403,334
Overdistributed net investment income		(108,773	)
Accumulated net realized losses on investments		(61,541,783	)
Net unrealized gains on investments		10,302,939
Total net assets	$	329,055,717
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE1
Net assets – Class A	$	221,601,257
Shares outstanding – Class A		67,042,664
Net asset value per share – Class A		$3.31
Maximum offering price per share – Class A2		$3.47
Net assets – Class B	$	5,338,032
Shares outstanding – Class B		1,614,718
Net asset value per share – Class B		$3.31
Net assets – Class C	$	76,993,411
Shares outstanding – Class C		23,289,209
Net asset value per share – Class C		$3.31
Net assets – Administrator Class	$	25,123,017
Shares outstanding – Administrator Class		7,589,088
Net asset value per share – Administrator Class		$3.31
Investments in unaffiliated securities (including securities on loan), at cost	$	313,938,619
Investments in affiliated securities, at cost	$	6,386,045
Total investments, at cost	$	320,324,664
Securities on loan, at value	$	5,507,087
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.

16 Wells Fargo Advantage High Yield Bond Fund Statement of operations—six months ended February 28, 2014 (unaudited)

Investment income
Interest	$	8,880,596
Dividends		287,048
Securities lending income, net		11,311
Income from affiliated securities		869
Total investment income		9,179,824
Expenses
Advisory fee		817,794
Administration fees
Fund level		81,779
Class A		177,118
Class B		4,698
Class C		63,256
Administrator Class		10,389
Shareholder servicing fees
Class A		276,747
Class B		7,137
Class C		98,837
Administrator Class		24,761
Distribution fees
Class B		22,020
Class C		296,512
Custody and accounting fees		11,610
Professional fees		34,542
Registration fees		30,216
Shareholder report expenses		32,215
Trustees’ fees and expenses		5,017
Other fees and expenses		6,618
Total expenses		2,001,266
Less: Fee waivers and/or expense reimbursements		(22,184	)
Net expenses		1,979,082
Net investment income		7,200,742
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		1,309,355
Futures transactions		(600,678	)
Net realized gains on investments		708,677
Net change in unrealized gains (losses) on:
Unaffiliated securities		15,418,689
Futures transactions		102,594
Net change in unrealized gains (losses) on investments		15,521,283
Net realized and unrealized gains (losses) on investments		16,229,960
Net increase in net assets resulting from operations	$	23,430,702

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

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

	Six months ended February 28, 2014 (unaudited)						Year ended August 31, 2013
Operations
Net investment income				$	7,200,742					$	17,384,672
Net realized gains on investments					708,677						18,224,276
Net change in unrealized gains (losses) on investments					15,521,283						(20,063,715	)
Net increase in net assets resulting from operations					23,430,702						15,545,233
Distributions to shareholders from
Net investment income
Class A					(5,055,774	)					(11,802,757	)
Class B					(112,165	)					(390,499	)
Class C					(1,509,742	)					(3,771,645	)
Administrator Class					(497,874	)					(1,421,343	)
Total distributions to shareholders					(7,175,555	)					(17,386,244	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		2,990,995			9,586,655			8,686,785			28,273,612
Class B		3,953			12,745			67,461			219,086
Class C		496,256			1,593,936			1,743,975			5,681,242
Administrator Class		2,273,680			7,377,623			3,242,704			10,578,643
					18,570,959						44,752,583
Reinvestment of distributions
Class A		1,354,088			4,382,107			3,080,175			9,994,164
Class B		30,873			99,842			103,737			336,538
Class C		424,201			1,372,616			1,024,306			3,323,484
Administrator Class		136,113			440,937			383,719			1,245,710
					6,295,502						14,899,896
Payment for shares redeemed
Class A		(9,043,827	)		(29,054,270	)		(22,446,941	)		(72,965,905	)
Class B		(538,457	)		(1,731,899	)		(2,220,348	)		(7,234,458	)
Class C		(4,178,048	)		(13,437,784	)		(7,565,262	)		(24,547,467	)
Administrator Class		(1,605,729	)		(5,176,241	)		(8,617,078	)		(28,015,457	)
					(49,400,194	)					(132,763,287	)
Net decrease in net assets resulting from capital share transactions					(24,533,733	)					(73,110,808	)
Total decrease in net assets					(8,278,586	)					(74,951,819	)
Net assets
Beginning of period					337,334,303						412,286,122
End of period				$	329,055,717					$	337,334,303
Overdistributed net investment income				$	(108,773	)				$	(133,960	)

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, 2014 (unaudited)			Year ended August 31												Year ended April 30
CLASS A				2013			2012			2011			20101,2			20101			20091
Net asset value, beginning of period	$	3.15		$	3.18		$	3.03		$	3.05		$	3.10		$	2.39		$	3.13
Net investment income		0.07			0.15			0.20			0.21			0.08			0.25			0.27
Net realized and unrealized gains (losses) on investments		0.16			(0.03	)		0.15			(0.02	)		(0.05	)		0.72			(0.76	)
Total from investment operations		0.23			0.12			0.35			0.19			0.03			0.97			(0.49	)
Distributions to shareholders from
Net investment income		(0.07	)		(0.15	)		(0.20	)		(0.21	)		(0.08	)		(0.26	)		(0.25	)
Net asset value, end of period	$	3.31		$	3.15		$	3.18		$	3.03		$	3.05		$	3.10		$	2.39
Total return3		7.47	%		3.78	%		12.00	%		6.07	%		0.99	%		42.27	%		(15.50	)%
Ratios to average net assets (annualized)
Gross expenses		1.03	%		1.04	%		1.02	%		1.02	%		1.06	%		1.14	%		1.22	%
Net expenses		1.03	%		1.03	%		1.02	%		1.02	%		1.05	%		1.13	%		1.08	%
Net investment income		4.58	%		4.65	%		6.52	%		6.60	%		7.70	%		8.96	%		10.60	%
Supplemental data
Portfolio turnover rate		13	%		95	%		37	%		70	%		46	%		129	%		119	%
Net assets, end of period (000s omitted)		$221,601			$225,743			$261,938			$240,653			$281,044			$292,039			$217,199

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.

Financial highlights Wells Fargo Advantage High Yield Bond Fund 19

(For a share outstanding throughout each period)

	Six months ended February 28, 2014 (unaudited)			Year ended August 31												Year ended April 30
CLASS B				2013			2012			2011			20101,2			20101			20091
Net asset value, beginning of period	$	3.15		$	3.18		$	3.03		$	3.05		$	3.10		$	2.39		$	3.13
Net investment income		0.06	3		0.13	3		0.18	3		0.18	3		0.07			0.22			0.25	3
Net realized and unrealized gains (losses) on investments		0.16			(0.03	)		0.15			(0.02	)		(0.05	)		0.73			(0.76	)
Total from investment operations		0.22			0.10			0.33			0.16			0.02			0.95			(0.51	)
Distributions to shareholders from
Net investment income		(0.06	)		(0.13	)		(0.18	)		(0.18	)		(0.07	)		(0.24	)		(0.23	)
Net asset value, end of period	$	3.31		$	3.15		$	3.18		$	3.03		$	3.05		$	3.10		$	2.39
Total return4		7.08	%		3.01	%		11.17	%		5.28	%		0.74	%		41.23	%		(16.13	)%
Ratios to average net assets (annualized)
Gross expenses		1.78	%		1.78	%		1.77	%		1.78	%		1.81	%		1.89	%		1.97	%
Net expenses		1.77	%		1.78	%		1.77	%		1.77	%		1.81	%		1.88	%		1.83	%
Net investment income		3.83	%		3.93	%		5.80	%		5.85	%		6.98	%		8.29	%		9.70	%
Supplemental data
Portfolio turnover rate		13	%		95	%		37	%		70	%		46	%		129	%		119	%
Net assets, end of period (000s omitted)		$5,338			$6,667			$13,247			$21,656			$50,671			$54,017			$58,429

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.

20 Wells Fargo Advantage High Yield Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2014 (unaudited)			Year ended August 31												Year ended April 30
CLASS C				2013			2012			2011			20101,2			20101			20091
Net asset value, beginning of period	$	3.15		$	3.18		$	3.03		$	3.05		$	3.10		$	2.39		$	3.13
Net investment income		0.06			0.13			0.18			0.18			0.07			0.23			0.25
Net realized and unrealized gains (losses) on investments		0.16			(0.03	)		0.15			(0.02	)		(0.05	)		0.72			(0.76	)
Total from investment operations		0.22			0.10			0.33			0.16			0.02			0.95			(0.51	)
Distributions to shareholders from
Net investment income		(0.06	)		(0.13	)		(0.18	)		(0.18	)		(0.07	)		(0.24	)		(0.23	)
Net asset value, end of period	$	3.31		$	3.15		$	3.18		$	3.03		$	3.05		$	3.10		$	2.39
Total return3		7.07	%		3.01	%		11.17	%		5.28	%		0.74	%		41.23	%		(16.13	)%
Ratios to average net assets (annualized)
Gross expenses		1.78	%		1.79	%		1.77	%		1.77	%		1.81	%		1.89	%		1.97	%
Net expenses		1.78	%		1.78	%		1.77	%		1.77	%		1.81	%		1.88	%		1.83	%
Net investment income		3.83	%		3.90	%		5.78	%		5.85	%		6.97	%		8.21	%		9.79	%
Supplemental data
Portfolio turnover rate		13	%		95	%		37	%		70	%		46	%		129	%		119	%
Net assets, end of period (000s omitted)		$76,993			$83,548			$99,633			$95,999			$104,954			$106,886			$78,995

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.

Financial highlights Wells Fargo Advantage High Yield Bond Fund 21

(For a share outstanding throughout each period)

	Six months ended February 28, 2014 (unaudited)			Year ended August 31												Year ended April 30
ADMINISTRATOR CLASS				2013			2012			2011			20101,2			20101			20091
Net asset value, beginning of period	$	3.15		$	3.18		$	3.03		$	3.05		$	3.10		$	2.39		$	3.13
Net investment income		0.08			0.16			0.21			0.22			0.08			0.26			0.28	3
Net realized and unrealized gains (losses) on investments		0.16			(0.03	)		0.15			(0.03	)		(0.05	)		0.72			(0.76	)
Total from investment operations		0.24			0.13			0.36			0.19			0.03			0.98			(0.48	)
Distributions to shareholders from
Net investment income		(0.08	)		(0.16	)		(0.21	)		(0.21	)		(0.08	)		(0.27	)		(0.26	)
Net asset value, end of period		$3.31			$3.15			$3.18			$3.03			$3.05			$3.10			$2.39
Total return4		7.59	%		4.02	%		12.25	%		6.30	%		1.07	%		42.62	%		(15.28	)%
Ratios to average net assets (annualized)
Gross expenses		0.96	%		0.96	%		0.95	%		0.95	%		0.87	%		0.89	%		0.94	%
Net expenses		0.80	%		0.80	%		0.80	%		0.80	%		0.81	%		0.88	%		0.80	%
Net investment income		4.81	%		4.91	%		6.73	%		6.79	%		7.95	%		9.17	%		11.89	%
Supplemental data
Portfolio turnover rate		13	%		95	%		37	%		70	%		46	%		129	%		119	%
Net assets, end of period (000s omitted)		$25,123			$21,376			$37,469			$26,234			$48,709			$93,639			$68,991

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.

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

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). These financial statements report on the 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 (generally 4 p.m. Eastern Time).

Fixed income securities acquired with maturities exceeding 60 days are valued based on evaluated bid prices provided by an independent pricing service which may utilize both transaction data and market information such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data. If prices are not available from the independent pricing service or prices received are deemed not representative of market value, prices will be obtained from an independent broker-dealer or otherwise determined based on the Fund’s Valuation Procedures.

Equity securities and futures that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price. If no sale occurs on the primary exchange or market for the security that day, the prior day’s price will be deemed “stale” and fair values will be determined in accordance with the Fund’s Valuation Procedures.

Short-term securities, with maturities of 60 days or less at time of purchase, 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 vehicles 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 in good faith by the Board of Trustees of the Fund. 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 values, to assess the continued appropriateness of the fair valuation methodologies used. These securities are fair valued on a day-to-day basis, taking into consideration changes to appropriate market information and any significant changes to the inputs considered in the valuation process until there is a readily available price provided on an exchange or by an independent pricing service. Valuations received from an independent pricing service or independent broker-dealer quotes are periodically validated by comparisons to most recent trades and valuations provided by other independent pricing services in addition to the review of prices by the adviser and/or subadviser. Unobservable inputs used in determining fair valuations are identified based on the type of security, taking into consideration factors utilized by market participants in valuing the investment, knowledge about the issuer and the current market environment.

Foreign currency translation

The accounting records of the Fund are maintained in U.S. dollars. The values of other assets and liabilities denominated in foreign currencies will be converted to U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Management Valuation Team. Purchases and sales of securities, and income and expenses are converted at the rate of exchange on the respective dates of such transactions. Reported net realized

Notes to financial statements (unaudited) Wells Fargo Advantage High Yield Bond Fund 23

foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded and the U.S. dollar equivalent of the amounts actually paid or received. Net unrealized foreign exchange gains and losses arise from changes in the fair value of assets and liabilities other than investments in securities resulting from changes in exchange rates.

The changes in net assets arising from changes in exchange rates and the changes in net assets resulting from changes in market prices of securities are not separately presented. Such changes are 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 “Securities Lending Fund”). The Securities Lending 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 Securities Lending Fund increase. All of the fees received by Funds Management are paid to WellsCap for its services as subadviser. The Securities Lending 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. Securities Lending Fund investments are fair valued based upon the amortized cost valuation technique. Income earned from investment in the Securities Lending 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.

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.

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

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.

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, 2013, the Fund had capital loss carryforwards available to offset future net realized capital gains in the amount of $62,421,082 with $25,170,390 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)

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 High Yield Bond Fund 25

As of February 28, 2014, the inputs used in valuing investments in securities were as follows:

Investments in securities	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Equity securities
Common stocks	$	30,652,710	$	0	$	0	$	30,652,710
Corporate bonds and notes		0		274,714,287		0		274,714,287
Yankee corporate bonds and notes		0		18,720,442		0		18,720,442
Short-term investments
Investment companies		767,385		5,618,660		0		6,386,045
U.S. Treasury securities		251,999		0		0		251,999
	$	31,672,094	$	299,053,389	$	0	$	330,725,483

As of February 28, 2014, the inputs used in valuing the Fund’s other financial instruments were as follows:

Other financial instruments	Quoted prices (Level 1)			Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Futures contracts	$	(97,883	)*	$	0	$	0	$	(97,883	)

* Amount represents the net unrealized losses.

Transfers in and transfers out are recognized at the end of the reporting period. For the six months ended February 28, 2014, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

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, 2014, 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 and an indirect, wholly owned subsidiary of Wells Fargo, 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

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.

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

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 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, 2014, Wells Fargo Funds Distributor, LLC received $2,210 from the sale of Class A shares and $19 and $690 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 all classes of the Fund are charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class.

A portion of these total shareholder servicing fees were paid to affiliates of Wells Fargo.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the six months ended February 28, 2014 were $42,772,541 and $66,149,069, respectively.

6. DERIVATIVE TRANSACTIONS

During the six months ended February 28, 2014, the Fund entered into futures contracts to speculate on interest rates and to help manage the duration of the portfolio.

At February 28, 2014, the Fund had short futures contracts outstanding as follows:

Expiration date	Counterparty	Contracts	Type		Contract value at February 28, 2014		Unrealized losses
6-19-2014	Goldman Sachs	160 Short		10-Year U.S. Treasury Notes	$	19,925,000	$	(97,883	)

The Fund had an average notional amount of $19,966,353 in short futures contracts during the six months ended February 28, 2014.

On February 28, 2014, the cumulative unrealized losses on futures contracts in the amount of $97,883 are reflected in net unrealized gains on investments on the Statement of Assets and Liabilities. The receivable for daily variation margin on open futures contracts reflected in the Statement of Assets and Liabilities only represents the current day’s variation margin. The realized losses and change in unrealized gains (losses) on futures contracts are reflected in the Statement of Operations.

For certain types of derivative transactions, the Fund has entered into International Swaps and Derivatives Association, Inc. master agreements (“ISDA Master Agreements”) or similar agreements with approved counterparties. The ISDA Master Agreements or similar agreements may have requirements to deliver/deposit securities or cash to/with an exchange or broker-dealer as collateral and allows the Fund to offset, with each counterparty, certain derivative financial instrument’s assets and/or liabilities with collateral held or pledged. Collateral requirements differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives while collateral terms are contract specific for over-the-counter traded. Cash collateral that has been pledged to cover obligations of the Fund under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Portfolio of Investments. With respect to balance sheet offsetting, absent an event of default by the counterparty or a termination of the agreement, the reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities are not offset across transactions between the Fund and the applicable counterparty. A reconciliation of the gross amounts on the Statement of Assets and Liabilities to the net amounts by derivative type, including any collateral exposure, is as follows:

Derivative type	Counterparty	Gross amounts of assets in the Statement of Assets and Liabilities	Amounts subject to netting agreements		Collateral received		Net amount
Futures - variation margin	Goldman Sachs	$35,000	$	0	$	0	$	35,000

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

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, 2014, the Fund paid $349 in commitment fees.

For the six months ended February 28, 2014, 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.

28 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 29

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers listed in the table below acts in identical capacities for each fund in the Wells Fargo Advantage family of funds, which consists of 132 mutual 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 Harbor 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 50 portfolios as of 12/16/2013); 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 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 73 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 59 funds and Assistant Treasurer of 73 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 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 —  Columbian Peso

CLP —  Chilean peso

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 —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

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

NGN —  Nigerian naira

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

RON —  Romanian lei

RUB —  Russian ruble

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

THB —  Thai baht

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

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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

© 2014 Wells Fargo Funds Management, LLC. All rights reserved.

223532 04-14 SA218/SAR218 02-14

Wells Fargo Advantage Income Plus Fund

Semi-Annual Report

February 28, 2014

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Contents

Letter to shareholders	2
Performance highlights	6
Fund expenses	8
Portfolio of investments	9
Financial statements
Statement of assets and liabilities	17
Statement of operations	18
Statement of changes in net assets	19
Financial highlights	20
Notes to financial statements	26
Other information	32
List of abbreviations	35

The views expressed and any forward-looking statements are as of February 28, 2014, 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 and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

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

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Fixed-income markets shifted during the period, driven by vacillations between U.S. Treasury yield increases and subsequent declines.

Reassurances from the Fed that a highly accommodative monetary policy would continue throughout 2014 inspired price rallies across both the investment-grade and high-yield bond markets.

Dear Valued Shareholder:

We are pleased to offer you this semi-annual report for the Wells Fargo Advantage Income Plus Fund for the six-month period that ended February 28, 2014. Fixed-income markets shifted during the period, driven by vacillations between U.S. Treasury yield increases and subsequent declines. However, on the whole, investment-grade (measured by the Barclays U.S. Aggregate Bond Index¹) and high-yield markets (measured by the Barclays U.S. High Yield Bond Index²) generated positive returns during the period, notably benefiting from the strong price improvement and declining U.S. Treasury yields that occurred in September and October of 2013 as well as the opening months of 2014. Although the returns of the U.S. high-yield market have often been positively correlated with U.S. equity returns (measured by the S&P 500 Index³) over the long-run, over the period, high-yield (measured by the Barclays U.S. High Yield Bond Index) generally performed well even when equities did not. The lower-rated corporate bond credit tiers outperformed the respectively higher-rated investment-grade credit tiers during the period.

A decline in bond prices was halted by the Fed’s postponement of tapering its bond-buying program.

Before the six-month period began, equity markets rallied, most notably in May and June of 2013. This led to a sharp increase in U.S. Treasury yields and declining valuations for much of the fixed-income markets (measured by the Barclays U.S. Aggregate Bond Index). However, in July and August 2013, that equity exuberance quieted a bit, and fixed-income markets stabilized. Returns across the fixed-income markets were largely negative in investment-grade and high-yield markets but modest in comparison with the declines in May and June of 2013.

But, by September and October of 2013, investment-grade and high-yield bond markets began generating positive returns yet again, as the Federal Reserve (Fed) backtracked on its intentions to taper its quantitative easing program, postponing it until 2014, at the earliest. This created a temporary rally in bonds that lasted until around November 20, 2013, when notes were released from the Fed’s October 2013 meeting that tapering of the bond-buying programs would not be postponed beyond January 2014. In response, long-term U.S. Treasury yields and mortgage rates ratcheted higher on expectations for an unwinding of monetary accommodation in the upcoming months. This led to declines in pricing across much of the core fixed-income markets (measured by the Barclays U.S. Aggregate Bond Index). U.S. high-yield markets were better able to absorb the shift in U.S. Treasury yields and continued to provide positive returns along with rallies in the equity markets.

Favorable conditions for fixed-income markets were restored in January and February 2014.

Seemingly much to the surprise of many everyday investors and seasoned investment professionals alike, fixed-income markets (measured by the Barclays U.S. Aggregate Bond Index) largely outperformed U.S. equity markets (measured by the S&P 500 Index) during the opening months of 2014. A pullback in equity exuberance in January and reassurances from the Fed that a highly accommodative monetary policy would continue throughout 2014 inspired price rallies across both the investment-grade and high-yield bond markets. U.S. Treasury yields declined in January 2014 and corporate bonds and mortgage-backed securities performed notably well. U.S. high-yield securities generated positive returns in January 2014 but lagged the rally across the investment-grade bond markets. This theme reversed in February 2014, as high-yield sectors rallied and investment-grade sectors performed well but not to the extent of the lowest-rated credit tiers.

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

One positive takeaway for bond investors that helped fuel the fixed-income (measured by the Barclays U.S. Aggregate Bond Index) rallies was former Fed Chairman Bernanke’s guidance at the end of 2013. He indicated that the tapering of the Fed’s bond-buying program would proceed at a slow pace and that a reduction in quantitative easing should not be equivocated with a tightening of monetary policy. The distinction was important—although the bond-buying program was declining in volume, it was, nonetheless, still continuing. Additionally, the federal funds target rate would remain unchanged for the foreseeable future, with the implications that it would not increase until the bond-buying program was fully disbanded. These were important statements for fixed-income investors that helped bolster U.S. fixed-income valuations in the opening months of 2014.

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

Periods of investment uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Advantage Funds offers more than 100 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. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

Thank you for choosing to invest with Wells Fargo 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

1. The Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and CMBS. You cannot invest directly in an index.

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

3. The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock’s weight in the index proportionate to its market value. You cannot invest directly in an index.

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

Notice to shareholders

The Fund and Wells Fargo Funds Management, LLC (“Funds Management”) have received an exemptive order from the SEC that permits Funds Management, subject to the approval of the Board of Trustees of the Fund, to select or replace certain subadvisers to manage all or a portion of the Fund’s assets and enter into, amend or terminate a sub-advisory agreement with certain subadvisers without obtaining shareholder approval (“Multi-manager Structure”). The Multi-manager Structure applies to subadvisers that are not affiliated with Funds Management or the Fund, except to the extent that affiliation arises solely because such subadvisers provide sub-advisory services to the Fund (“Non-affiliated Subadvisers”), as well as subadvisers that are indirect or direct wholly-owned subsidiaries of Funds Management or of another company that, indirectly or directly, wholly owns Funds Management (“Wholly-owned Subadvisers”).

Pursuant to the SEC order, Funds Management, with the approval of the Board of Trustees, has the discretion to terminate any subadvisers and allocate and reallocate the Fund’s assets among any other Non-affiliated Subadvisers or Wholly-owned Subadvisers. Funds Management, subject to oversight and supervision by the Board of Trustees, has responsibility to continue to oversee any subadvisers to the Fund and to recommend, for approval by the Board of Trustees, the hiring, termination and replacement of subadvisers for the Fund. In the event that a new subadviser is hired pursuant to the Multi-manager Structure, the Fund is required to provide notice to shareholders within 90 days.

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

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6 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

Thomas M. Price, CFA

Janet S. Rilling, CFA, CPA

Michael J. Bray, CFA

Average annual total returns¹ (%) as of February 28, 2014

		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		(3.63	)		5.83		4.88		0.89		6.81		5.37		0.93		0.86
Class B (STYBX)*	7-13-1998		(4.82	)		5.71		4.82		0.18		6.03		4.82		1.68		1.61
Class C (WFIPX)	7-13-1998		(0.79	)		6.04		4.59		0.21		6.04		4.59		1.68		1.61
Administrator Class (WIPDX)	7-30-2010		–			–		–		1.04		6.97		5.38		0.87		0.74
Institutional Class (WIPIX)	7-18-2008		–			–		–		1.18		7.17		5.56		0.60		0.60
Investor Class (WIPNX)	7-18-2008		–			–		–		0.89		6.80		5.35		0.96		0.87
Barclays U.S. Universal Bond Index4	–		–			–		–		0.72		6.07		4.87		–		–

* 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 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, which 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 7.

Performance highlights (unaudited) Wells Fargo Advantage Income Plus Fund 7

Ten largest long-term holdings5 (%) as of  February 28, 2014
U.S. Treasury Note, 0.50%, 8-15-2014	8.09
U.S. Treasury Note, 0.38%, 3-15-2015	5.23
FHLMC, 3.50%, 3-1-2044	4.43
FNMA, 3.00%, 3-1-2044	3.95
U.S. Treasury Note, 2.25%, 7-31-2018	3.93
U.S. Treasury Note, 1.00%, 8-31-2016	2.83
U.S. Treasury Note, 0.88%, 1-31-2018	2.79
U.S. Treasury Note, 0.25%, 12-15-2015	2.43
FNMA, 4.00%, 3-1-2044	2.30
U.S. Treasury Note, 1.00%, 5-31-2018	2.19

Portfolio allocation⁶ as of February 28, 2014

1. Historical performance shown for Administrator Class shares prior to their inception reflects the performance of Institutional Class shares and has been adjusted to include the higher expenses applicable to Administrator Class shares. Historical performance shown for Investor Class shares prior to their inception reflects the performance of Class A shares and has been adjusted to include the higher expenses applicable to Investor Class shares. Historical performance shown for Institutional Class shares prior to their inception reflects the performance of Class A shares and includes the higher expenses applicable to 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, which include the impact of 0.02% in acquired fund fees and expenses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report, which do not include acquired fund fees and expenses.

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 0.84% for Class A, 1.59% for Class B, 1.59% for Class C, 0.72% for Administrator Class, 0.58% for Institutional Class, and 0.85% 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.

8 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, 2013 to February 28, 2014.

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 9-1-2013		Ending account value 2-28-2014		Expenses paid during the period1		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,038.61	$	4.35		0.86	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.53	$	4.31		0.86	%
Class B
Actual	$	1,000.00	$	1,035.34	$	8.12		1.61	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.81	$	8.05		1.61	%
Class C
Actual	$	1,000.00	$	1,035.61	$	8.13		1.61	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.81	$	8.05		1.61	%
Administrator Class
Actual	$	1,000.00	$	1,039.43	$	3.64		0.72	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.22	$	3.61		0.72	%
Institutional Class
Actual	$	1,000.00	$	1,040.05	$	2.93		0.58	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.92	$	2.91		0.58	%
Investor Class
Actual	$	1,000.00	$	1,038.58	$	4.40		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).

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage Income Plus Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities: 33.12%
FHLB Series VN-2015 Class A		5.46	%		11-27-2015	$	920,266	$	974,438
FHLMC ±		1.95			1-1-2036		83,465		88,166
FHLMC %%		3.50			3-1-2044		20,440,000		20,666,757
FHLMC %%		4.00			3-1-2044		6,310,000		6,595,922
FHLMC		5.00			6-1-2036		887,045		968,897
FHLMC		5.00			8-1-2040		841,385		920,757
FHLMC		5.50			10-1-2017		414,041		440,092
FHLMC		5.50			11-1-2023		191,621		209,112
FHLMC		5.50			8-1-2038		209,109		229,227
FHLMC		5.50			12-1-2038		1,766,685		1,936,658
FHLMC		5.50			6-1-2040		1,919,984		2,112,662
FHLMC		7.50			5-1-2038		7,889		8,658
FHLMC		8.00			2-1-2030		613		739
FHLMC Series 2013-K28 Class B ±144A		3.49			6-25-2046		1,970,000		1,831,696
FHLMC Series 2013-K30 Class B ±144A		3.56			6-25-2045		2,515,000		2,347,393
FHLMC Series 2013-K32 Class B ±144A		3.54			10-25-2046		1,875,000		1,746,866
FHLMC Series 3774 Class AB		3.50			12-15-2020		634,074		674,882
FHLMC Series K020 Class X1 ±(c)		1.47			5-25-2022		14,578,923		1,364,339
FHLMC Series K021 Class X1 ±(c)		1.51			6-25-2022		12,985,745		1,268,837
FHLMC Series M009 Class A ±(i)		5.40			10-15-2021		106,099		106,099
FHLMC Series T-42 Class A5		7.50			2-25-2042		2,599,568		3,056,923
FHLMC Series T-57 Class 2A1 ±		3.24			7-25-2043		83,383		87,112
FHLMC Series T-59 Class 2A1 ±		2.91			10-25-2043		76,918		79,348
FNMA ±		2.40			1-1-2036		268,820		285,675
FNMA ±		2.41			8-1-2036		114,153		122,640
FNMA ±		2.48			9-1-2036		67,429		71,501
FNMA		2.75			10-1-2022		2,250,000		2,167,079
FNMA %%		3.00			3-1-2029		3,355,000		3,471,377
FNMA %%		3.00			3-1-2044		18,940,000		18,395,475
FNMA		3.27			7-1-2022		1,313,993		1,348,994
FNMA %%		3.50			3-1-2029		3,655,000		3,863,449
FNMA %%		3.50			3-1-2044		4,400,000		4,459,813
FNMA		3.95			9-1-2021		440,833		472,548
FNMA		4.00			9-1-2024		291,071		310,808
FNMA %%		4.00			3-1-2029		2,570,000		2,741,869
FNMA %%		4.00			3-1-2044		10,230,000		10,718,323
FNMA		4.26			4-1-2021		2,889,528		3,157,503
FNMA		4.39			1-1-2020		1,586,866		1,747,371
FNMA %%		4.50			3-1-2029		3,760,000		4,013,800
FNMA %%		4.50			3-1-2044		8,250,000		8,859,404
FNMA		5.00			1-1-2024		382,844		415,839
FNMA		5.00			2-1-2036		85,128		93,273
FNMA		5.00			6-1-2040		279,667		307,008
FNMA		5.00			8-1-2040		5,031,910		5,525,162
FNMA		5.50			8-1-2034		292,640		324,394
FNMA		5.50			2-1-2035		88,917		98,560
FNMA		5.50			8-1-2038		476,990		525,373
FNMA		5.50			8-1-2038		1,166,317		1,293,408
FNMA		6.00			10-1-2037		1,713,192		1,907,244
FNMA		6.00			11-1-2037		144,873		161,440

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

10 Wells Fargo Advantage Income Plus Fund Portfolio of investments—February 28, 2014 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA %%		6.00	%		3-1-2044	$	795,000	$	884,934
FNMA		6.50			7-1-2036		73,158		81,894
FNMA		6.50			7-1-2036		28,809		32,229
FNMA		6.50			11-1-2036		25,757		28,981
FNMA		6.50			7-1-2037		2,028,819		2,274,926
FNMA		7.00			3-1-2024		837,125		908,250
FNMA		7.00			7-1-2036		35,532		40,665
FNMA		7.00			11-1-2037		39,990		42,842
FNMA		7.50			5-1-2038		2,084		2,126
FNMA Series 2002-T12 Class A3		7.50			5-25-2042		10,437		12,308
FNMA Series 2003-W08 Class 4A ±		3.13			11-25-2042		217,926		227,070
FNMA Series 2003-W14 Class 2A ±		2.21			6-25-2035		194,295		199,164
FNMA Series 2003-W14 Class 2A ±		3.40			1-25-2043		109,733		113,769
FNMA Series 2004-W11 Class 1A3		7.00			5-25-2044		2,143,308		2,566,086
FNMA Series 2004-W15 Class 1A3		7.00			8-25-2044		1,592,063		1,863,829
GNMA		4.00			6-20-2042		4,814,936		5,114,025
GNMA %%		4.50			3-1-2044		7,540,000		8,191,503
GNMA		5.00			7-20-2040		2,158,857		2,393,668
GNMA		7.50			12-15-2029		832		949
GNMA Series 2008-22 Class XM ±(c)		3.70			2-16-2050		5,149,952		183,410
GNMA Series 2008-86 Class D		5.46			6-16-2040		4,365,000		4,680,136
Total Agency Securities (Cost $151,344,438)									154,417,674
Asset-Backed Securities: 1.11%
CVS Pass-Through Trust First Lien		6.04			12-10-2028		1,517,668		1,719,386
Nissan Auto Lease Trust Series 2013-A Class A2A		0.45			9-15-2015		3,441,248		3,442,338
Total Asset-Backed Securities (Cost $4,948,601)									5,161,724
Corporate Bonds and Notes: 25.14%
Consumer Discretionary: 4.22%
Auto Components: 0.62%
Delphi Corporation		5.00			2-15-2023		1,025,000		1,092,906
TRW Automotive Incorporated 144A		4.50			3-1-2021		1,750,000		1,811,250
									2,904,156
Automobiles: 0.45%
Ford Motor Company		7.45			7-16-2031		1,645,000		2,114,626
Diversified Consumer Services: 0.37%
Service Corporation International		8.00			11-15-2021		1,500,000		1,730,625
Hotels, Restaurants & Leisure: 0.33%
Agua Caliente Band of Cahuilla Indians 144A		6.44			10-1-2016		434,000		407,682
Darden Restaurants Incorporated		6.80			10-15-2037		1,060,000		1,147,245
									1,554,927
Household Durables: 0.35%
D.R. Horton Incorporated		4.75			2-15-2023		1,650,000		1,617,000

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

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage Income Plus Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Media: 1.20%
CBS Corporation		7.88	%		7-30-2030	$	775,000	$	1,009,489
CCO Holdings LLC		8.13			4-30-2020		1,300,000		1,423,500
National CineMedia LLC		6.00			4-15-2022		1,500,000		1,571,250
News America Incorporated		7.85			3-1-2039		1,180,000		1,573,018
									5,577,257
Multiline Retail: 0.34%
Macy’s Retail Holdings Incorporated		6.65			7-15-2024		1,330,000		1,599,560
Specialty Retail: 0.56%
L Brands Incorporated		6.63			4-1-2021		1,020,000		1,143,675
Sally Beauty Holdings Incorporated		5.75			6-1-2022		1,360,000		1,438,200
									2,581,875
Consumer Staples: 0.30%
Food Products: 0.04%
TreeHouse Foods Incorporated %%		4.88			3-15-2022		180,000		183,150
Tobacco: 0.26%
Lorillard Incorporated		8.13			6-23-2019		975,000		1,215,936
Energy: 1.98%
Energy Equipment & Services: 0.33%
SESI LLC		7.13			12-15-2021		1,410,000		1,565,100
Oil, Gas & Consumable Fuels: 1.65%
Chesapeake Energy Corporation		6.63			8-15-2020		1,390,000		1,588,075
Energy Transfer Equity LP		7.50			10-15-2020		1,450,000		1,656,625
Kinder Morgan Energy Partners LP		5.50			3-1-2044		1,335,000		1,347,672
Newfield Exploration Company		6.88			2-1-2020		1,500,000		1,610,625
Sabine Pass Liquefaction LLC 144A		5.63			4-15-2023		1,500,000		1,473,750
									7,676,747
Financials: 10.71%
Banks: 3.56%
Australia and New Zealand Banking Group Limited 144A		2.40			11-23-2016		3,320,000		3,445,403
Bank of America Corporation		6.50			8-1-2016		2,300,000		2,590,430
Bank of America Corporation		7.63			6-1-2019		2,480,000		3,089,289
CBA Capital Trust II ±144A		6.02			12-31-2049		1,300,000		1,374,750
CIT Group Incorporated		5.38			5-15-2020		1,650,000		1,782,000
Citigroup Incorporated		5.88			1-30-2042		1,390,000		1,610,120
JPMorgan Chase & Company Series Q ±		5.15			12-31-2049		1,620,000		1,530,900
PNC Financial Services Group Incorporated ±«		4.45			5-29-2049		1,165,000		1,166,165
									16,589,057
Capital Markets: 0.53%
Alterra Finance LLC		6.25			9-30-2020		2,150,000		2,499,736

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

12 Wells Fargo Advantage Income Plus Fund Portfolio of investments—February 28, 2014 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Consumer Finance: 1.91%
Ally Financial Incorporated		8.00	%		3-15-2020	$	1,000,000	$	1,237,500
Discover Financial Services		5.20			4-27-2022		1,795,000		1,933,712
General Motors Financial Company Incorporated		4.25			5-15-2023		1,710,000		1,727,100
HSBC Finance Corporation		6.68			1-15-2021		2,185,000		2,569,250
SLM Corporation		8.00			3-25-2020		1,240,000		1,432,200
									8,899,762
Diversified Financial Services: 1.32%
Blackstone Holdings Finance Company LLC 144A		5.88			3-15-2021		1,110,000		1,274,858
General Electric Capital Corporation ±		6.38			11-15-2067		2,200,000		2,433,750
Moody’s Corporation		5.50			9-1-2020		2,165,000		2,427,740
									6,136,348
Insurance: 3.03%
Allstate Corporation ±		5.75			8-15-2053		1,635,000		1,700,564
National Life Insurance Company of Vermont 144A		10.50			9-15-2039		1,315,000		1,821,596
Platinum Underwriters Finance Incorporated Series B		7.50			6-1-2017		1,730,000		1,958,978
Protective Life Corporation		8.45			10-15-2039		1,855,000		2,495,628
Prudential Financial Incorporated ±		8.88			6-15-2038		1,645,000		2,006,900
Torchmark Corporation		9.25			6-15-2019		1,600,000		2,071,930
ZFS Finance (USA) Trust II ±144A		6.45			12-15-2065		1,920,000		2,054,400
									14,109,996
REITs: 0.36%
American Tower Corporation		7.00			10-15-2017		1,455,000		1,706,311
Health Care: 1.09%
Health Care Providers & Services: 0.76%
Community Health Systems Incorporated		5.13			8-1-2021		335,000		346,725
Fresenius Medical Care Holdings Incorporated 144A		5.88			1-31-2022		1,435,000		1,535,450
HCA Incorporated		6.50			2-15-2020		1,450,000		1,636,688
									3,518,863
Pharmaceuticals: 0.33%
Teva Pharmaceutical Finance Company LLC		6.15			2-1-2036		1,370,000		1,559,407
Industrials: 2.61%
Aerospace & Defense: 0.13%
DigitalGlobe Incorporated		5.25			2-1-2021		635,000		628,650
Building Products: 0.34%
Masco Corporation		5.95			3-15-2022		1,450,000		1,566,000
Commercial Services & Supplies: 0.62%
Clean Harbors Incorporated		5.25			8-1-2020		1,375,000		1,416,250
Penske Truck Leasing Company LP 144A		3.13			5-11-2015		1,445,000		1,485,324
									2,901,574

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

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage Income Plus Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Professional Services: 1.02%
FTI Consulting Incorporated		6.75	%		10-1-2020	$	1,650,000	$	1,794,375
Verisk Analytics Incorporated		5.80			5-1-2021		2,650,000		2,945,043
									4,739,418
Trading Companies & Distributors: 0.50%
Ashtead Capital Incorporated 144A		6.50			7-15-2022		790,000		857,150
International Lease Finance Corporation		8.25			12-15-2020		1,190,000		1,456,263
									2,313,413
Information Technology: 0.82%
Electronic Equipment, Instruments & Components: 0.49%
Corning Incorporated		7.25			8-15-2036		1,912,000		2,306,015
Semiconductors & Semiconductor Equipment: 0.01%
Micron Technology Incorporated 144A		5.88			2-15-2022		60,000		62,700
Software: 0.32%
Activision Blizzard Incorporated 144A		5.63			9-15-2021		1,370,000		1,472,750
Materials: 1.23%
Chemicals: 0.33%
Rockwood Specialties Group Incorporated		4.63			10-15-2020		1,475,000		1,530,313
Metals & Mining: 0.35%
Steel Dynamics Incorporated		6.38			8-15-2022		1,465,000		1,607,838
Paper & Forest Products: 0.55%
International Paper Company		7.30			11-15-2039		1,970,000		2,574,695
Telecommunication Services: 1.37%
Diversified Telecommunication Services: 0.90%
CenturyLink Incorporated		5.63			4-1-2020		1,375,000		1,436,875
Verizon Communications Incorporated		6.55			9-15-2043		1,080,000		1,322,441
Virgin Media Secured Finance plc 144A		5.38			4-15-2021		1,390,000		1,431,700
									4,191,016
Wireless Telecommunication Services: 0.47%
SBA Tower Trust 144A		3.72			4-15-2048		1,820,000		1,744,823
Sprint Corporation 144A		7.88			9-15-2023		430,000		476,225
									2,221,048
Utilities: 0.81%
Independent Power & Renewable Electricity Producers: 0.81%
Calpine Corporation 144A		7.88			1-15-2023		1,294,000		1,455,750
Harper Lake Solar Funding Corporation 144A		7.65			12-31-2018		1,340,064		1,408,687
NRG Energy Incorporated		7.63			1-15-2018		800,000		904,000
									3,768,437
Total Corporate Bonds and Notes (Cost $109,892,543)									117,224,306

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

14 Wells Fargo Advantage Income Plus Fund Portfolio of investments—February 28, 2014 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Municipal Obligations: 2.09%
California: 0.99%
California Build America Bonds Stem Cell Research and Cures Series A (GO)		4.99	%		4-1-2039	$	1,505,000	$	1,511,110
San Jose CA Series B (Airport Revenue, AGM Insured)		6.60			3-1-2041		3,000,000		3,113,880
									4,624,990
Illinois: 0.67%
Illinois (GO)		4.51			3-1-2015		3,000,000		3,114,480
Puerto Rico: 0.43%
Puerto Rico Government Development Bank (Miscellaneous Revenue, National Insured) ±		4.75			12-1-2015		2,005,000		1,986,795
Total Municipal Obligations (Cost $9,430,213)									9,726,265
Non-Agency Mortgage Backed Securities: 3.69%
Bear Stearns Commercial Mortgage Securities Incorporated Series 2005-PWR-7 Class A3 ±		5.12			2-11-2041		1,940,000		2,001,735
Bear Stearns Commercial Mortgage Securities Incorporated Series 2005-T20 Class A4A ±		5.14			10-12-2042		2,480,000		2,621,824
Commercial Mortgage Trust Pass-Through Certificates Series 2005-C6 Class A5A ±		5.12			6-10-2044		1,712,921		1,796,921
Credit Suisse First Boston Commercial Mortgage Trust Series 1998-C2 Class AX ±(c)		0.34			11-15-2030		354,130		1,398
Financial Asset Securitization Incorporated Series 1997-NAM2 Class B2 (s)		7.88			7-25-2027		92,234		90,928
GE Capital Commercial Mortgage Corporation Series 2005-C3 Class A7A ±		4.97			7-10-2045		2,695,000		2,815,588
Lehman Brothers UBS Commercial Mortgage Trust Series 2006-C1 Class A4		5.16			2-15-2031		3,545,000		3,760,454
Mach One Trust Commercial Mortgage Backed Series 2004-1 Class X ±144A(c)(i)		0.53			5-28-2040		630,519		10,870
Morgan Stanley Capital I Series 2004-HQ4 Class A7		4.97			4-14-2040		1,423,767		1,432,167
Morgan Stanley Capital I Series 2004-RR2 Class X ±144A(c)		0.54			10-28-2033		409,743		3,073
Morgan Stanley Capital I Series 2005-T19 Class A4A		4.89			6-12-2047		2,564,008		2,676,316
Total Non-Agency Mortgage Backed Securities (Cost $17,431,202)									17,211,274
U.S. Treasury Securities: 39.43%
U.S. Treasury Bond ##		2.75			11-15-2042		3,280,000		2,776,723
U.S. Treasury Bond		2.88			5-15-2043		5,370,000		4,656,800
U.S. Treasury Bond		3.75			11-15-2043		4,680,000		4,820,400
U.S. Treasury Bond		4.50			2-15-2036		4,415,000		5,173,828
U.S. Treasury Note		0.25			12-15-2015		11,350,000		11,345,562
U.S. Treasury Note		0.25			5-15-2016		2,975,000		2,965,471
U.S. Treasury Note		0.38			3-15-2015		24,345,000		24,400,166
U.S. Treasury Note		0.38			11-15-2015		5,820,000		5,831,820
U.S. Treasury Note ##		0.38			3-15-2016		2,250,000		2,251,582
U.S. Treasury Note ##		0.50			8-15-2014		37,625,000		37,695,547
U.S. Treasury Note ##		0.88			1-31-2018		13,145,000		13,025,880
U.S. Treasury Note		1.00			8-31-2016		13,015,000		13,174,642
U.S. Treasury Note		1.00			5-31-2018		10,335,000		10,228,425
U.S. Treasury Note		1.25			10-31-2018		9,915,000		9,844,514
U.S. Treasury Note ##		1.38			7-31-2018		4,290,000		4,301,394
U.S. Treasury Note		1.38			2-28-2019		7,915,000		7,859,350
U.S. Treasury Note		2.25			7-31-2018		17,585,000		18,300,762
U.S. Treasury Note		2.75			2-15-2024		5,105,000		5,147,275
Total U.S. Treasury Securities (Cost $184,050,901)									183,800,141

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

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage Income Plus Fund 15

Security name	Interest rate			Maturity date		Principal		Value
Yankee Corporate Bonds and Notes: 6.85%
Consumer Discretionary: 1.18%
Media: 1.18%
British Sky Broadcasting Group plc 144A		9.50	%		11-15-2018	$	1,785,000	$	2,340,660
Myriad International Holdings BV 144A		6.38			7-28-2017		1,445,000		1,603,950
WPP Finance 2010		5.63			11-15-2043		1,470,000		1,548,942
									5,493,552
Consumer Staples: 0.28%
Food Products: 0.28%
BRF SA 144A		3.95			5-22-2023		1,525,000		1,322,938
Energy: 1.37%
Oil, Gas & Consumable Fuels: 1.37%
CNOOC Finance 2013 Limited		3.00			5-9-2023		1,565,000		1,418,142
Petroleos Mexicanos 144A		6.38			1-23-2045		2,005,000		2,129,116
Talisman Energy Incorporated		5.50			5-15-2042		1,070,000		1,075,289
Weatherford International Limited		9.63			3-1-2019		1,370,000		1,788,383
									6,410,930
Financials: 1.02%
Banks: 0.82%
BBVA Bancomer SA 144A		4.50			3-10-2016		1,720,000		1,821,050
BPCE SA 144A		5.15			7-21-2024		2,005,000		2,012,820
									3,833,870
Capital Markets: 0.20%
Macquarie Group Limited 144A		6.00			1-14-2020		825,000		921,773
Health Care: 0.37%
Pharmaceuticals: 0.37%
Perrigo Company Limited 144A		5.30			11-15-2043		1,635,000		1,734,581
Information Technology: 0.37%
Internet Software & Services: 0.37%
Tencent Holdings Limited 144A		4.63			12-12-2016		1,595,000		1,708,492
Materials: 0.37%
Metals & Mining: 0.37%
ArcelorMittal		6.13			6-1-2018		1,565,000		1,721,500
Telecommunication Services: 0.96%
Diversified Telecommunication Services: 0.49%
Telefonos de Mexico SAB de CV		5.50			11-15-2019		2,045,000		2,287,844
Wireless Telecommunication Services: 0.47%
Globo Communicacoes Participacoes SA 144A		4.88			4-11-2022		2,145,000		2,166,450

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

16 Wells Fargo Advantage Income Plus Fund Portfolio of investments—February 28, 2014 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Utilities: 0.93%
Electric Utilities: 0.93%
Comision Federal de Electricidad 144A		4.88	%		1-15-2024	$	1,635,000	$	1,655,438
Western Power Distributions Holdings Limited 144A		7.38			12-15-2028		2,265,000		2,701,291
									4,356,729
Total Yankee Corporate Bonds and Notes (Cost $29,618,764)									31,958,659
Yankee Government Bonds: 0.42%
Banco Nacional de Desenvolvimento Economico e Social 144A		5.50			7-12-2020		1,855,000		1,954,706
Total Yankee Government Bonds (Cost $1,841,869)									1,954,706
	Yield					Shares
Short-Term Investments: 7.92%
Investment Companies : 7.83%
Wells Fargo Advantage Cash Investment Money Market Fund, Select Class (l)(u)##		0.07					35,359,841		35,359,841
Wells Fargo Securities Lending Cash Investments, LLC (l)(u)(r)(v)		0.09					1,149,500		1,149,500
									36,509,341
						Principal
U.S. Treasury Securities: 0.09%
U.S. Treasury Bill (z)#		0.03			3-20-2014	$	400,000		399,994
Total Short-Term Investments (Cost $36,909,329)									36,909,335

Total investments in securities (Cost $545,467,860) *	119.77	%		558,364,084
Other assets and liabilities, net	(19.77	)		(92,183,476	)
Total net assets	100.00	%	$	466,180,608

± 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.

(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

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

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

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

(l) Investment in an affiliate

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

(r) The investment company is exempt from registration under Section 3(c)(7) of the 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 the current yield to maturity.

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

* Cost for federal income tax purposes is $545,662,572 and unrealized appreciation (depreciation) consists of:

Gross unrealized appreciation	$	15,288,843
Gross unrealized depreciation		(2,587,331	)
Net unrealized appreciation	$	12,701,512

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

Statement of assets and liabilities—February 28, 2014 (unaudited) Wells Fargo Advantage Income Plus Fund 17

Assets
Investments
In unaffiliated securities (including securities on loan), at value (see cost below)	$	521,854,743
In affiliated securities, at value (see cost below)		36,509,341
Total investments, at value (see cost below)		558,364,084
Receivable for investments sold		3,001,249
Principal paydown receivable		828
Receivable for Fund shares sold		371,049
Receivable for interest		3,268,842
Receivable for daily variation margin on open futures contracts		2,592
Receivable for securities lending income		219
Prepaid expenses and other assets		198,844
Total assets		565,207,707
Liabilities
Payable for investments purchased		94,691,574
Payable for Fund shares redeemed		1,482,961
Payable upon receipt of securities loaned		1,149,500
Payable for daily variation margin on open futures contracts		3,875
Due to custodian bank		1,317,545
Advisory fee payable		113,644
Distribution fees payable		16,756
Due to other related parties		77,471
Accrued expenses and other liabilities		173,773
Total liabilities		99,027,099
Total net assets	$	466,180,608
NET ASSETS CONSIST OF
Paid-in capital	$	485,752,461
Undistributed net investment income		283,691
Accumulated net realized losses on investments		(32,758,223	)
Net unrealized gains on investments		12,902,679
Total net assets	$	466,180,608
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE1
Net assets – Class A	$	136,614,827
Shares outstanding – Class A		11,390,558
Net asset value per share – Class A		$11.99
Maximum offering price per share – Class A2		$12.55
Net assets – Class B	$	1,084,996
Shares outstanding – Class B		90,270
Net asset value per share – Class B		$12.02
Net assets – Class C	$	25,901,963
Shares outstanding – Class C		2,160,633
Net asset value per share – Class C		$11.99
Net assets – Administrator Class	$	103,558,914
Shares outstanding – Administrator Class		8,648,330
Net asset value per share – Administrator Class		$11.97
Net assets – Institutional Class	$	30,793,610
Shares outstanding – Institutional Class		2,565,595
Net asset value per share – Institutional Class		$12.00
Net assets – Investor Class	$	168,226,298
Shares outstanding – Investor Class		14,027,758
Net asset value per share – Investor Class		$11.99
Investments in unaffiliated securities (including securities on loan), at cost	$	508,958,519
Investments in affiliated securities, at cost	$	36,509,341
Total investments, at cost	$	545,467,860
Securities on loan, at value	$	1,125,552

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

2. Maximum offering price is computed as 100/95.50 of net asset value. On investments of $50,000 or more, the offering price is reduced.

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

18 Wells Fargo Advantage Income Plus Fund Statement of operations—six months ended February 28, 2014 (unaudited)

Investment income
Interest	$	7,048,771
Income from affiliated securities		7,470
Securities lending income, net		406
Total investment income		7,056,647
Expenses
Advisory fee		939,948
Administration fees
Fund level		117,494
Class A		110,037
Class B		1,018
Class C		21,962
Administrator Class		51,767
Institutional Class		12,616
Investor Class		160,198
Shareholder servicing fees
Class A		171,932
Class B		1,590
Class C		34,316
Administrator Class		128,434
Investor Class		206,733
Distribution fees
Class B		4,771
Class C		102,949
Custody and accounting fees		18,141
Professional fees		33,833
Registration fees		49,932
Shareholder report expenses		35,968
Trustees’ fees and expenses		5,671
Other fees and expenses		12,433
Total expenses		2,221,743
Less: Fee waivers and/or expense reimbursements		(200,935	)
Net expenses		2,020,808
Net investment income		5,035,839
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		4,666,301
Futures transactions		(348,107	)
Net realized gains on investments		4,318,194
Net change in unrealized gains (losses) on:
Unaffiliated securities		8,613,554
Futures transactions		116,066
Net change in unrealized gains (losses) on investments		8,729,620
Net realized and unrealized gains (losses) on investments		13,047,814
Net increase in net assets resulting from operations	$	18,083,653

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

Statement of changes in net assets Wells Fargo Advantage Income Plus Fund 19

	Six months ended February 28, 2014 (unaudited)						Year ended August 31, 2013
Operations
Net investment income				$	5,035,839					$	11,794,250
Net realized gains on investments					4,318,194						8,469,691
Net change in unrealized gains (losses) on investments					8,729,620						(31,180,884	)
Net increase (decrease) in net assets resulting from operations					18,083,653						(10,916,943	)
Distributions to shareholders from
Net investment income
Class A					(1,377,623	)					(3,255,786	)
Class B					(7,505	)					(28,488	)
Class C					(170,782	)					(477,921	)
Administrator Class					(1,117,187	)					(3,262,469	)
Institutional Class					(362,607	)					(1,185,125	)
Investor Class					(1,688,423	)					(3,772,466	)
Net realized gains
Class A					0						(5,344,156	)
Class B					0						(84,631	)
Class C					0						(1,334,285	)
Administrator Class					0						(5,253,361	)
Institutional Class					0						(3,379,857	)
Investor Class					0						(6,207,603	)
Total distributions to shareholders					(4,724,127	)					(33,586,148	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		656,444			7,771,502			2,194,258			26,576,272
Class B		1,292			15,321			19,713			244,010
Class C		49,236			582,848			557,473			6,833,980
Administrator Class		702,092			8,294,793			3,465,099			42,415,638
Institutional Class		200,845			2,344,569			564,097			6,695,195
Investor Class		414,400			4,902,862			1,665,351			20,364,228
					23,911,895						103,129,323
Reinvestment of distributions
Class A		100,000			1,183,488			626,860			7,655,699
Class B		580			6,874			8,527			104,611
Class C		10,720			126,781			115,670			1,414,974
Administrator Class		93,273			1,102,074			689,176			8,404,691
Institutional Class		27,404			324,617			129,399			1,584,715
Investor Class		130,130			1,540,094			746,653			9,115,740
					4,283,928						28,280,430
Payment for shares redeemed
Class A		(1,958,461	)		(23,094,420	)		(3,958,532	)		(48,016,018	)
Class B		(48,268	)		(569,653	)		(115,777	)		(1,405,362	)
Class C		(447,003	)		(5,281,863	)		(1,409,995	)		(16,983,515	)
Administrator Class		(1,174,023	)		(13,866,577	)		(8,041,038	)		(96,613,493	)
Institutional Class		(338,158	)		(4,001,026	)		(10,844,409	)		(133,899,676	)
Investor Class		(1,313,156	)		(15,517,392	)		(3,158,782	)		(38,294,452	)
					(62,330,931	)					(335,212,516	)
Net decrease in net assets resulting from capital share transactions					(34,135,108	)					(203,802,763	)
Total decrease in net assets					(20,775,582	)					(248,305,854	)
Net assets
Beginning of period					486,956,190						735,262,044
End of period				$	466,180,608					$	486,956,190
Undistributed (overdistributed) net investment income				$	283,691					$	(28,021	)

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, 2014 (unaudited)			Year ended August 31												Year ended May 31
CLASS A				2013			2012			2011			20101			2010			2009
Net asset value, beginning of period	$	11.66		$	12.57		$	12.04		$	12.00		$	11.59		$	10.82		$	10.70
Net investment income		0.13			0.25			0.30			0.37	2		0.09	2		0.37	2		0.42	2
Net realized and unrealized gains (losses) on investments		0.32			(0.51	)		0.55			0.18			0.44			0.88			0.15
Total from investment operations		0.45			(0.26	)		0.85			0.55			0.53			1.25			0.57
Distributions to shareholders from
Net investment income		(0.12	)		(0.25	)		(0.29	)		(0.42	)		(0.12	)		(0.48	)		(0.45	)
Net realized gains		0.00			(0.40	)		(0.03	)		(0.09	)		0.00			0.00			0.00
Total distributions to shareholders		(0.12	)		(0.65	)		(0.32	)		(0.51	)		(0.12	)		(0.48	)		(0.45	)
Net asset value, end of period	$	11.99		$	11.66		$	12.57		$	12.04		$	12.00		$	11.59		$	10.82
Total return3		3.86	%		(2.25	)%		7.19	%		4.76	%		4.62	%		11.74	%		5.52	%
Ratios to average net assets (annualized)
Gross expenses		0.93	%		0.91	%		0.89	%		0.88	%		0.91	%		1.03	%		1.05	%
Net expenses		0.86	%		0.87	%		0.88	%		0.88	%		0.88	%		0.90	%		0.90	%
Net investment income		2.14	%		2.00	%		2.42	%		3.17	%		3.07	%		3.29	%		4.01	%
Supplemental data
Portfolio turnover rate		131	%		256	%		256	%		215	%		84	%		187	%		455	%
Net assets, end of period (000s omitted)		$136,615			$146,836			$172,577			$163,499			$261,227			$130,382			$94,938

1. For the three months ended August 31, 2010. The Fund changed its fiscal year end from May 31 to August 31, effective August 31, 2010.

2. 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, 2014 (unaudited)			Year ended August 31												Year ended May 31
CLASS B				2013			2012			2011			20101			2010			2009
Net asset value, beginning of period	$	11.68		$	12.59		$	12.05		$	12.01		$	11.61		$	10.82		$	10.70
Net investment income		0.08	2		0.15	2		0.21	2		0.29	2		0.07	2		0.29	2		0.35	2
Net realized and unrealized gains (losses) on investments		0.33			(0.51	)		0.56			0.17			0.43			0.89			0.14
Total from investment operations		0.41			(0.36	)		0.77			0.46			0.50			1.18			0.49
Distributions to shareholders from
Net investment income		(0.07	)		(0.15	)		(0.20	)		(0.33	)		(0.10	)		(0.39	)		(0.37	)
Net realized gains		0.00			(0.40	)		(0.03	)		(0.09	)		0.00			0.00			0.00
Total distributions to shareholders		(0.07	)		(0.55	)		(0.23	)		(0.42	)		(0.10	)		(0.39	)		(0.37	)
Net asset value, end of period	$	12.02		$	11.68		$	12.59		$	12.05		$	12.01		$	11.61		$	10.82
Total return3		3.53	%		(3.00	)%		6.45	%		3.97	%		4.31	%		11.04	%		4.69	%
Ratios to average net assets (annualized)
Gross expenses		1.67	%		1.66	%		1.63	%		1.63	%		1.65	%		1.78	%		1.80	%
Net expenses		1.61	%		1.62	%		1.62	%		1.63	%		1.62	%		1.65	%		1.65	%
Net investment income		1.38	%		1.24	%		1.71	%		2.40	%		2.33	%		2.54	%		3.30	%
Supplemental data
Portfolio turnover rate		131	%		256	%		256	%		215	%		84	%		187	%		455	%
Net assets, end of period (000s omitted)		$1,085			$1,597			$2,823			$4,054			$6,140			$1,839			$3,937

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, 2014 (unaudited)			Year ended August 31												Year ended May 31
CLASS C				2013			2012			2011			20101			2010			2009
Net asset value, beginning of period	$	11.65		$	12.56		$	12.03		$	12.00		$	11.59		$	10.82		$	10.69
Net investment income		0.08			0.15			0.21			0.29	2		0.07	2		0.29	2		0.35	2
Net realized and unrealized gains (losses) on investments		0.33			(0.51	)		0.55			0.16			0.44			0.88			0.15
Total from investment operations		0.41			(0.36	)		0.76			0.45			0.51			1.17			0.50
Distributions to shareholders from
Net investment income		(0.07	)		(0.15	)		(0.20	)		(0.33	)		(0.10	)		(0.40	)		(0.37	)
Net realized gains		0.00			(0.40	)		(0.03	)		(0.09	)		0.00			0.00			0.00
Total distributions to shareholders		(0.07	)		(0.55	)		(0.23	)		(0.42	)		(0.10	)		(0.40	)		(0.37	)
Net asset value, end of period	$	11.99		$	11.65		$	12.56		$	12.03		$	12.00		$	11.59		$	10.82
Total return3		3.56	%		(3.00	)%		6.40	%		3.92	%		4.42	%		10.93	%		4.85	%
Ratios to average net assets (annualized)
Gross expenses		1.68	%		1.66	%		1.64	%		1.63	%		1.66	%		1.78	%		1.80	%
Net expenses		1.61	%		1.62	%		1.63	%		1.63	%		1.63	%		1.65	%		1.65	%
Net investment income		1.39	%		1.24	%		1.65	%		2.41	%		2.32	%		2.53	%		3.32	%
Supplemental data
Portfolio turnover rate		131	%		256	%		256	%		215	%		84	%		187	%		455	%
Net assets, end of period (000s omitted)		$25,902			$29,692			$41,259			$30,364			$30,253			$14,533			$7,242

1. For the three months ended August 31, 2010. The Fund changed its fiscal year end from May 31 to August 31, effective August 31, 2010.

2. Calculated based upon average shares outstanding

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

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

Financial highlights Wells Fargo Advantage Income Plus Fund 23

(For a share outstanding throughout each period)

	Six months ended February 28, 2014 (unaudited)			Year ended August 31
ADMINISTRATOR CLASS				2013			2012			2011			20101
Net asset value, beginning of period	$	11.64		$	12.55		$	12.02		$	12.00		$	11.87
Net investment income		0.13			0.26	2		0.33			0.39	2		0.03	2
Net realized and unrealized gains (losses) on investments		0.33			(0.51	)		0.54			0.16			0.14
Total from investment operations		0.46			(0.25	)		0.87			0.55			0.17
Distributions to shareholders from
Net investment income		(0.13	)		(0.26	)		(0.31	)		(0.44	)		(0.04	)
Net realized gains		0.00			(0.40	)		(0.03	)		(0.09	)		0.00
Total distributions to shareholders		(0.13	)		(0.66	)		(0.34	)		(0.53	)		(0.04	)
Net asset value, end of period	$	11.97		$	11.64		$	12.55		$	12.02		$	12.00
Total return3		3.94	%		(2.11	)%		7.37	%		4.82	%		1.43	%
Ratios to average net assets (annualized)
Gross expenses		0.86	%		0.85	%		0.83	%		0.82	%		0.86	%
Net expenses		0.72	%		0.72	%		0.73	%		0.75	%		0.86	%
Net investment income		2.28	%		2.14	%		2.53	%		3.29	%		3.31	%
Supplemental data
Portfolio turnover rate		131	%		256	%		256	%		215	%		84	%
Net assets, end of period (000s omitted)		$103,559			$105,094			$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.

24 Wells Fargo Advantage Income Plus Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2014 (unaudited)			Year ended August 31												Year ended May 31
INSTITUTIONAL CLASS				2013			2012			2011			20101			2010			20092
Net asset value, beginning of period		$11.67			$12.57			$12.03			$12.00			$11.60			$10.82			$10.51
Net investment income		0.14			0.27	3		0.34			0.41	3		0.10	3		0.41	3		0.39	3
Net realized and unrealized gains (losses) on investments		0.32			(0.49	)		0.56			0.17			0.43			0.88			0.36
Total from investment operations		0.46			(0.22	)		0.90			0.58			0.53			1.29			0.75
Distributions to shareholders from
Net investment income		(0.13	)		(0.28	)		(0.33	)		(0.46	)		(0.13	)		(0.51	)		(0.44	)
Net realized gains		0.00			(0.40	)		(0.03	)		(0.09	)		0.00			0.00			0.00
Total distributions to shareholders		(0.13	)		(0.68	)		(0.36	)		(0.55	)		(0.13	)		(0.51	)		(0.44	)
Net asset value, end of period		$12.00			$11.67			$12.57			$12.03			$12.00			$11.60			$10.82
Total return4		4.00	%		(1.89	)%		7.62	%		5.04	%		4.71	%		12.06	%		7.29	%
Ratios to average net assets (annualized)
Gross expenses		0.60	%		0.56	%		0.56	%		0.55	%		0.59	%		0.68	%		0.69	%
Net expenses		0.58	%		0.56	%		0.56	%		0.55	%		0.56	%		0.61	%		0.61	%
Net investment income		2.42	%		2.26	%		2.74	%		3.53	%		3.36	%		3.58	%		4.29	%
Supplemental data
Portfolio turnover rate		131	%		256	%		256	%		215	%		84	%		187	%		455	%
Net assets, end of period (000s omitted)	$	30,794		$	31,221		$	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.

Financial highlights Wells Fargo Advantage Income Plus Fund 25

(For a share outstanding throughout each period)

	Six months ended February 28, 2014 (unaudited)			Year ended August 31												Year ended May 31
INVESTOR CLASS				2013			2012			2011			20101			2010			20092
Net asset value, beginning of period	$	11.66		$	12.57		$	12.03		$	12.00		$	11.60		$	10.82		$	10.51
Net investment income		0.13			0.24			0.30			0.37	3		0.09	3		0.37	3		0.36	3
Net realized and unrealized gains (losses) on investments		0.32			(0.51	)		0.56			0.17			0.43			0.88			0.36
Total from investment operations		0.45			(0.27	)		0.86			0.54			0.52			1.25			0.72
Distributions to shareholders from
Net investment income		(0.12	)		(0.24	)		(0.29	)		(0.42	)		(0.12	)		(0.47	)		(0.41	)
Net realized gains		0.00			(0.40	)		(0.03	)		(0.09	)		0.00			0.00			0.00
Total distributions to shareholders		(0.12	)		(0.64	)		(0.32	)		(0.51	)		(0.12	)		(0.47	)		(0.41	)
Net asset value, end of period	$	11.99		$	11.66		$	12.57		$	12.03		$	12.00		$	11.60		$	10.82
Total return4		3.86	%		(2.26	)%		7.25	%		4.67	%		4.52	%		11.79	%		6.99	%
Ratios to average net assets (annualized)
Gross expenses		0.95	%		0.93	%		0.91	%		0.90	%		0.97	%		1.07	%		1.08	%
Net expenses		0.87	%		0.89	%		0.90	%		0.90	%		0.92	%		0.94	%		0.94	%
Net investment income		2.13	%		1.98	%		2.40	%		3.14	%		3.00	%		3.25	%		3.94	%
Supplemental data
Portfolio turnover rate		131	%		256	%		256	%		215	%		84	%		187	%		455	%
Net assets, end of period (000s omitted)		$168,226			$172,516			$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.

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

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). These financial statements report on the 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 (generally 4 p.m. Eastern Time).

Fixed income securities acquired with maturities exceeding 60 days are valued based on evaluated bid prices provided by an independent pricing service which may utilize both transaction data and market information such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data. If prices are not available from the independent pricing service or prices received are deemed not representative of market value, prices will be obtained from an independent broker-dealer or otherwise determined based on the Fund’s Valuation Procedures.

Futures that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price.

Short-term securities, with maturities of 60 days or less at time of purchase, 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 vehicles 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 in good faith by the Board of Trustees of the Fund. 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 values, to assess the continued appropriateness of the fair valuation methodologies used. These securities are fair valued on a day-to-day basis, taking into consideration changes to appropriate market information and any significant changes to the inputs considered in the valuation process until there is a readily available price provided on an exchange or by an independent pricing service. Valuations received from an independent pricing service or independent broker-dealer quotes are periodically validated by comparisons to most recent trades and valuations provided by other independent pricing services in addition to the review of prices by the adviser and/or subadviser. Unobservable inputs used in determining fair valuations are identified based on the type of security, taking into consideration factors utilized by market participants in valuing the investment, knowledge about the issuer and the current market environment.

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

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

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 “Securities Lending Fund”). The Securities Lending 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 Securities Lending Fund increase. All of the fees received by Funds Management are paid to WellsCap for its services as subadviser. The Securities Lending 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. Securities Lending Fund investments are fair valued based upon the amortized cost valuation technique. Income earned from investment in the Securities Lending 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.

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.

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.

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

As of August 31, 2013, the Fund had capital loss carryforwards available to offset future net realized capital gains in the amount of $33,383,427 with $1,522,495 expiring in 2015; $21,588,119 expiring in 2016; and $10,272,813 expiring in 2017.

As of August 31, 2013, the Fund had $3,018,429 of current year deferred post-October capital losses, which were 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.

As of February 28, 2014, the inputs used in valuing investments in securities were as follows:

Investments in securities	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Agency securities	$	0	$	154,417,674	$	0	$	154,417,674
Asset-backed securities		0		5,161,724		0		5,161,724
Corporate bonds and notes		0		117,224,306		0		117,224,306
Municipal obligations		0		9,726,265		0		9,726,265
Non-agency mortgage backed securities		0		17,211,274		0		17,211,274
U.S. Treasury securities		183,800,141		0		0		183,800,141
Yankee corporate bonds and notes		0		31,958,659		0		31,958,659
Yankee government bonds		0		1,954,706		0		1,954,706
Short-term investments
Investment companies		35,359,841		1,149,500		0		36,509,341
U.S. Treasury securities		399,994		0		0		399,994
	$	219,559,976	$	338,804,108	$	0	$	558,364,084

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

As of February 28, 2014, the inputs used in valuing the Fund’s other financial instruments were as follows:

	Quoted prices (Level 1)			Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Futures contracts	$	6,455	*	$	0	$	0	$	6,455

* Amount represents the net unrealized gains.

Transfers in and transfers out are recognized at the end of the reporting period. For the six months ended February 28, 2014, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

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, 2014, the advisory fee was equivalent to an annual rate of 0.40% 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 and an indirect, wholly owned subsidiary of Wells Fargo, 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, 2014 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.84% for Class A shares, 1.59% for Class B shares, 1.59% for Class C shares, 0.72% for Administrator Class shares, 0.58% for Institutional Class shares, and 0.85% for Investor Class shares. Prior to January 1, 2014, the Fund’s expenses were capped at 0.87% for Class A shares, 1.62% for Class B shares, 1.62% for Class C shares, and 0.88% 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, 2014, Wells Fargo Funds Distributor, LLC received $3,296 from the sale of Class A shares.

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

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, 2014 were as follows:

Purchases at cost		Sales proceeds
U.S. government	Non-U.S. government	U.S. government	Non-U.S. government
$639,319,022	$69,781,372	$642,731,034	$92,901,285

6. DERIVATIVE TRANSACTIONS

During the six months ended February 28, 2014, the Fund entered into futures contracts to speculate on interest rates and to help manage the duration of the portfolio.

At February 28, 2014, the Fund had long futures contracts outstanding as follows:

Expiration date	Counterparty	Contracts	Type	Contract value at February 28, 2014		Unrealized gains
6-19-2014	JPMorgan	37 Long	10-Year U.S. Treasury Notes	$	4,607,656	$	3,359
6-30-2014	JPMorgan	103 Long	2-Year U.S. Treasury Notes		22,647,125		3,096

The Fund had an average notional amount of $16,746,477 and $22,298,583 in long and short futures contracts, respectively, during the six months ended February 28, 2014.

On February 28, 2014, the cumulative unrealized gains on futures contracts in the amount of $6,455 is reflected in net unrealized gains on investments on the Statement of Assets and Liabilities. The receivable and payable for daily variation margin on open futures contracts reflected in the Statement of Assets and Liabilities only represents the current day’s variation margin. The realized losses and change in unrealized gains (losses) on futures contracts are reflected in the Statement of Operations.

For certain types of derivative transactions, the Fund has entered into International Swaps and Derivatives Association, Inc. master agreements (“ISDA Master Agreements”) or similar agreements with approved counterparties. The ISDA Master Agreements or similar agreements may have requirements to deliver/deposit securities or cash to/with an exchange or broker-dealer as collateral and allows the Fund to offset, with each counterparty, certain derivative financial instrument’s assets and/or liabilities with collateral held or pledged. Collateral requirements differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives while collateral terms are contract specific for over-the-counter traded. Cash collateral that has been pledged to cover obligations of the Fund under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Portfolio of Investments. With respect to balance sheet offsetting, absent an event of default by the counterparty or a termination of the agreement, the reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities are not offset across transactions between the Fund and the applicable counterparty. A reconciliation of the gross amounts on the Statement of Assets and Liabilities to the net amounts by derivative type, including any collateral exposure, is as follows:

Derivative type	Counterparty	Gross amounts of assets in the Statement of Assets and Liabilities		Amounts subject to netting agreements			Collateral received		Net amount
Futures – variation margin	JPMorgan	$	2,592	$	(2,592	)	$	0	$	0

Notes to financial statements (unaudited) Wells Fargo Advantage Income Plus Fund 31

Derivative type	Counterparty	Gross amounts of liabilities in the Statement of Assets and Liabilities		Amounts subject to netting agreements			Collateral pledged			Net amount
Futures – variation margin	JPMorgan	$	3,875	$	(2,592	)	$	(1,283	)	$	0

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, 2014, the Fund paid $305 in commitment fees.

For the six months ended February 28, 2014, 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. SUBSEQUENT DISTRIBUTIONS

On March 25, 2014, the Fund declared distributions from net investment income to shareholders of record on March 24, 2014. The per share amounts payable on March 26, 2014 were as follows:

	Net investment income
Class A	$	0.01974
Class B		0.01218
Class C		0.01247
Administrator Class		0.02088
Institutional Class		0.02220
Investor Class		0.01963

On April 24, 2014, the Fund declared distributions from net investment income to shareholders of record on April 23, 2014. The per share amounts payable on April 25, 2014 were as follows:

	Net investment income
Class A	$	0.02302
Class B		0.01415
Class C		0.01479
Administrator Class		0.02432
Institutional Class		0.02588
Investor Class		0.02292

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

32 Wells Fargo Advantage Income Plus 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 Income Plus Fund 33

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers listed in the table below acts in identical capacities for each fund in the Wells Fargo Advantage family of funds, which consists of 132 mutual 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 Harbor 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 50 portfolios as of 12/16/2013); 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

34 Wells Fargo Advantage Income Plus 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 73 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 59 funds and Assistant Treasurer of 73 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 Income Plus Fund 35

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 —  Columbian Peso

CLP —  Chilean peso

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 —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

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

NGN —  Nigerian naira

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

RON —  Romanian lei

RUB —  Russian ruble

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

THB —  Thai baht

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

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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

© 2014 Wells Fargo Funds Management, LLC. All rights reserved.

223533 04-14 SA219/SAR219 02-14

Wells Fargo Advantage

Short Duration Government Bond Fund

Semi-Annual Report

February 28, 2014

Reduce clutter. Save trees.

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Contents

Letter to shareholders	2
Performance highlights	6
Fund expenses	8
Portfolio of investments	9
Financial statements
Statement of assets and liabilities	13
Statement of operations	14
Statement of changes in net assets	15
Financial highlights	16
Notes to financial statements	22
Other information	27
List of abbreviations	30

The views expressed and any forward-looking statements are as of February 28, 2014, 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 and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

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

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Fixed-income markets shifted during the period, driven by vacillations between U.S. Treasury yield increases and subsequent declines.

Reassurances from the Fed that a highly accommodative monetary policy would continue throughout 2014 inspired price rallies across both the investment-grade and high-yield bond markets.

Dear Valued Shareholder:

We are pleased to offer you this semi-annual report for the Wells Fargo Advantage Short Duration Government Bond Fund for the six-month period that ended February 28, 2014. Fixed-income markets shifted during the period, driven by vacillations between U.S. Treasury yield increases and subsequent declines. However, on the whole, investment-grade (measured by the Barclays U.S. Aggregate Bond Index¹) and high-yield markets (measured by the Barclays U.S. High Yield Bond Index²) generated positive returns in September and October of 2013 as well as the period, notably benefiting from the strong price improvement and declining U.S. Treasury yields that occurred during the opening months of 2014. Although the returns of the U.S. high-yield market have often been positively correlated with U.S. equity returns (measured by the S&P 500 Index³) over the long-run, over the period, high-yield (measured by the Barclays U.S. High Yield Bond Index) generally performed well even when equities did not. The lower-rated corporate bond credit tiers outperformed the respectively higher-rated investment-grade credit tiers during the period.

A decline in bond prices was halted by the Fed’s postponement of tapering its bond-buying program.

Before the six-month period began, equity markets rallied, most notably in May and June of 2013. This led to a sharp increase in U.S. Treasury yields and declining valuations for much of the fixed-income markets (measured by the Barclays U.S. Aggregate Bond Index). However, in July and August 2013, that equity exuberance quieted a bit, and fixed-income markets stabilized. Returns across the fixed-income markets were largely negative in investment-grade and high-yield markets but modest in comparison with the declines in May and June of 2013.

But, by September and October of 2013, investment-grade and high-yield bond markets began generating positive returns yet again, as the Federal Reserve (Fed) backtracked on its intentions to taper its quantitative easing program, postponing it until 2014, at the earliest. This created a temporary rally in bonds that lasted until around November 20, 2013, when notes were released from the Fed’s October 2013 meeting that tapering of the bond-buying programs would not be postponed beyond January 2014. In response, long-term U.S. Treasury yields and mortgage rates ratcheted higher on expectations for an unwinding of monetary accommodation in the upcoming months. This led to declines in pricing across much of the core fixed-income markets (measured by the Barclays U.S. Aggregate Bond Index). U.S. high-yield markets were better able to absorb the shift in U.S. Treasury yields and continued to provide positive returns along with rallies in the equity markets.

Favorable conditions for fixed-income markets were restored in January and February 2014.

Seemingly much to the surprise of many everyday investors and seasoned investment professionals alike, fixed-income markets (measured by the Barclays U.S. Aggregate Bond Index) largely outperformed U.S. equity markets (measured by the S&P 500 Index) during the opening months of 2014. A pullback in equity exuberance in January and reassurances from the Fed that a highly accommodative monetary policy would continue throughout 2014 inspired price rallies across both the investment-grade and high-yield bond markets. U.S. Treasury yields declined in January 2014 and corporate bonds and mortgage-backed securities performed notably well. U.S. high-yield securities generated positive returns in January 2014 but lagged the rally across the investment-grade

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

bond markets. This theme reversed in February 2014, as high-yield sectors rallied and investment-grade sectors performed well but not to the extent of the lowest-rated credit tiers.

One positive takeaway for bond investors that helped fuel the fixed-income (measured by the Barclays U.S. Aggregate Bond Index) rallies was former Fed Chairman Bernanke’s guidance at the end of 2013. He indicated that the tapering of the Fed’s bond-buying program would proceed at a slow pace and that a reduction in quantitative easing should not be equivocated with a tightening of monetary policy. The distinction was important—although the bond-buying program was declining in volume, it was, nonetheless, still continuing. Additionally, the federal funds target rate would remain unchanged for the foreseeable future, with the implications that it would not increase until the bond-buying program was fully disbanded. These were important statements for fixed-income investors that helped bolster U.S. fixed-income valuations in the opening months of 2014.

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

Periods of investment uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Advantage Funds offers more than 100 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. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

Thank you for choosing to invest with Wells Fargo 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

1. The Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and CMBS. You cannot invest directly in an index.

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

3. The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock’s weight in the index proportionate to its market value. You cannot invest directly in an index.

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

Notice to shareholders

The Fund and Wells Fargo Funds Management, LLC (“Funds Management”) have received an exemptive order from the SEC that permits Funds Management, subject to the approval of the Board of Trustees of the Fund, to select or replace certain subadvisers to manage all or a portion of the Fund’s assets and enter into, amend or terminate a sub-advisory agreement with certain subadvisers without obtaining shareholder approval (“Multi-manager Structure”). The Multi-manager Structure applies to subadvisers that are not affiliated with Funds Management or the Fund, except to the extent that affiliation arises solely because such subadvisers provide sub-advisory services to the Fund (“Non-affiliated Subadvisers”), as well as subadvisers that are indirect or direct wholly-owned subsidiaries of Funds Management or of another company that, indirectly or directly, wholly owns Funds Management (“Wholly-owned Subadvisers”).

Pursuant to the SEC order, Funds Management, with the approval of the Board of Trustees, has the discretion to terminate any subadvisers and allocate and reallocate the Fund’s assets among any other Non-affiliated Subadvisers or Wholly-owned Subadvisers. Funds Management, subject to oversight and supervision by the Board of Trustees, has responsibility to continue to oversee any subadvisers to the Fund and to recommend, for approval by the Board of Trustees, the hiring, termination and replacement of subadvisers for the Fund. In the event that a new subadviser is hired pursuant to the Multi-manager Structure, the Fund is required to provide notice to shareholders within 90 days.

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

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6 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

Thomas O’Connor, CFA

Troy Ludgood

Average annual total returns¹ (%) as of February 28, 2014

		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	(2.04)	2.01	2.72		(0.04	)		2.43		2.93	0.77	0.77
Class B (MSDBX)*	5-31-2002	(3.88)	1.82	2.62		(0.88	)		1.82		2.62	1.52	1.52
Class C (MSDCX)	5-31-2002	(1.88)	1.66	2.15		(0.88	)		1.66		2.15	1.52	1.52
Class R6 (MSDRX)	11-30-2012	–	–	–		0.28			2.89		3.35	0.39	0.37
Administrator Class (MNSGX)	12-18-1992	–	–	–		0.05			2.65		3.16	0.71	0.60
Institutional Class (WSGIX)	4-8-2005	–	–	–		0.23			2.84		3.33	0.44	0.42
Barclays 1-3 Year U.S. Government Bond Index4	–	–	–	–		0.53			1.34		2.62	–	–

* 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 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, which 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 7.

Performance highlights (unaudited) Wells Fargo Advantage Short Duration Government Bond Fund 7

Ten largest long-term holdings5 (%) as of February 28, 2014
U.S. Treasury Note, 0.25%, 2-29-2016	17.38
U.S. Treasury Note, 0.25%, 5-31-2014	14.55
U.S. Treasury Note, 0.38%, 1-31-2016	6.96
FNMA Series 2013-121 Class LB, 3.00%, 12-25-2043	4.21
U.S. Treasury Note, 0.25%, 7-31-2015	3.42
U.S. Treasury Note, 0.25%, 9-30-2015	2.82
U.S. Treasury Note, 0.25%, 10-31-2015	2.69
FNMA, 5.50%, 12-1-2041	2.20
FNMA Series 2011-53 Class TN, 4.00%, 6-25-2041	1.85
FNMA, 2.76%, 1-1-2044	1.63

Portfolio allocation⁶ as of February 28, 2014

1. Historical performance shown for Class R6 shares prior to its inception reflects the performance of Institutional Class shares and includes the higher expenses applicable to Institutional Class shares. If these expenses had not been included, returns would be higher. Historical performance shown for Institutional Class shares prior to their inception reflects the performance of Administrator Class shares and includes the higher expenses applicable to 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. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report.

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 composed of all publicly issued, nonconvertible domestic debt of the U.S. government and its agencies. The 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.

8 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, 2013 to February 28, 2014.

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 9-1-2013		Ending account value 2-28-2014		Expenses paid during the period1		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,008.60	$	3.88		0.78	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.93	$	3.91		0.78	%
Class B
Actual	$	1,000.00	$	1,003.87	$	7.60		1.53	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.21	$	7.65		1.53	%
Class C
Actual	$	1,000.00	$	1,003.87	$	7.60		1.53	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.21	$	7.65		1.53	%
Class R6
Actual	$	1,000.00	$	1,009.64	$	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	$	1,008.50	$	2.99		0.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.82	$	3.01		0.60	%
Institutional Class
Actual	$	1,000.00	$	1,010.39	$	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, 2014 (unaudited) Wells Fargo Advantage Short Duration Government Bond Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities: 32.36%
FHLMC (a)%%		2.93	%		3-15-2044	$	8,548,000	$	8,875,466
FHLMC ±		3.11			10-1-2043		1,224,513		1,276,923
FHLMC ±		3.15			8-1-2041		6,614,629		6,927,658
FHLMC ±%%		3.26			10-1-2041		4,802,019		5,027,559
FHLMC ±		3.56			8-1-2041		1,567,400		1,670,125
FHLMC ±		3.63			6-1-2041		7,677,482		8,142,900
FHLMC ±		3.65			10-1-2041		6,505,478		6,877,368
FHLMC		4.50			9-1-2024		3,982,319		4,298,055
FHLMC		4.50			12-1-2024		1,327,483		1,432,996
FHLMC		4.50			7-1-2025		2,923,735		3,155,159
FHLMC		4.50			6-1-2026		1,428,654		1,542,228
FHLMC		4.50			7-1-2026		1,756,342		1,896,517
FHLMC		4.50			8-1-2026		775,843		837,548
FHLMC		5.50			12-15-2039		14,786,376		16,512,271
FHLMC		5.50			7-1-2041		1,816,476		2,061,637
FHLMC ±		5.86			7-1-2038		7,396,439		7,980,467
FHLMC ±		5.95			10-1-2038		593,608		635,322
FHLMC		6.00			5-15-2039		4,938,888		5,477,010
FHLMC ±		6.06			6-1-2037		1,591,409		1,706,861
FHLMC		6.50			11-1-2037		952,122		1,079,187
FHLMC		6.50			12-1-2038		1,912,480		2,107,094
FHLMC		7.00			3-25-2044		2,259,579		2,738,728
FHLMC Series 2638 Class MJ		5.00			7-15-2033		4,711,000		5,193,562
FHLMC Series 2744 Class JH		5.00			2-15-2034		1,809,000		1,981,105
FHLMC Series 2762 Class LY		5.00			3-15-2034		1,888,000		2,082,821
FHLMC Series 3704 Class CT		7.00			12-15-2036		2,905,715		3,496,423
FHLMC Series T-57 Class 1A3		7.50			7-25-2043		437,470		525,424
FHLMC Series T-59 Class 1A3		7.50			10-25-2043		183,642		218,564
FHLMC Series T-60 Class 1A3		7.50			3-25-2044		68,377		82,002
FHLMC Structured Pass-Through Securities Series T-51 Class 2A ±		7.50			8-25-2042		2,030,543		2,442,426
FHLMC Structured Pass-Through Securities Series T-55 Class 1A2		7.00			3-25-2043		632,835		712,112
FNMA ±		2.76			1-1-2044		21,373,680		22,149,188
FNMA ±		2.80			3-1-2044		12,059,000		12,479,945
FNMA ±		2.81			11-1-2043		5,748,685		5,968,912
FNMA ±		2.89			4-1-2042		4,412,052		4,582,071
FNMA ±		3.04			10-1-2041		1,307,780		1,384,851
FNMA ±		3.26			6-1-2041		2,275,451		2,387,755
FNMA ±		3.29			7-1-2041		3,194,552		3,385,862
FNMA ±		3.30			11-1-2041		6,165,510		6,466,869
FNMA ±		3.55			7-1-2041		4,133,774		4,398,434
FNMA ±		3.67			7-1-2041		2,356,388		2,516,030
FNMA		4.50			8-1-2024		794,824		861,370
FNMA		4.50			10-1-2024		3,362,995		3,644,132
FNMA		4.50			12-1-2024		1,294,841		1,403,097
FNMA		4.50			6-1-2025		828,871		898,334
FNMA		4.50			2-1-2026		1,044,389		1,131,963
FNMA		5.00			2-1-2023		7,422,522		8,041,360
FNMA		5.00			5-1-2023		1,308,355		1,419,321
FNMA %%		5.00			8-1-2030		1,474,262		1,621,356
FNMA		5.50			11-1-2033		13,055,415		14,518,413

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, 2014 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA		5.50	%		9-1-2039	$	1,328,147	$	1,501,878
FNMA		5.50			8-1-2040		1,596,485		1,787,790
FNMA		5.50			12-1-2041		26,882,182		29,902,001
FNMA		6.00			3-25-2035		1,733,385		1,844,704
FNMA		6.00			7-1-2036		8,703,082		10,053,566
FNMA		6.50			8-1-2037		9,176,465		10,476,026
FNMA		6.50			6-1-2038		6,398,658		7,463,015
FNMA		6.50			8-1-2039		7,213,916		8,158,079
FNMA		6.50			2-1-2041		2,560,879		2,893,648
FNMA		7.50			7-1-2032		311,703		356,241
FNMA Grantor Trust Series 2000-T6 Class A1		7.50			6-25-2030		695,647		811,618
FNMA Grantor Trust Series 2001-T16 Class A2		7.00			7-25-2042		284,289		328,903
FNMA Grantor Trust Series 2001-T3 Class A1		7.50			11-25-2040		767,457		902,586
FNMA Series 1999-T2 Class A1 ±		7.50			1-19-2039		453,960		507,683
FNMA Series 2001-T4 Class A1		7.50			7-25-2041		103,130		123,689
FNMA Series 2001-W03 Class A ±		7.00			9-25-2041		780,075		899,962
FNMA Series 2002-14 Class A2		7.00			1-25-2042		743,473		852,133
FNMA Series 2002-14 Class A2		7.50			1-25-2042		1,597,600		1,892,925
FNMA Series 2002-26 Class A1		7.00			1-25-2048		980,897		1,145,432
FNMA Series 2002-33 Class A2		7.50			6-25-2032		232,032		275,028
FNMA Series 2002-90 Class A1		6.50			6-25-2042		28,417		32,859
FNMA Series 2002-T12 Class A3		7.50			5-25-2042		3,886,949		4,584,069
FNMA Series 2002-W1 Class 2A ±		6.64			2-25-2042		605,002		711,786
FNMA Series 2002-W6 Class 2A1 ±		6.50			6-25-2042		12,863		14,796
FNMA Series 2003-W1 Class 2A ±		6.68			12-25-2042		314,711		370,979
FNMA Series 2003-W2 Class 1A1		6.50			7-25-2042		179,902		206,376
FNMA Series 2003-W4 Class 4A ±		7.07			10-25-2042		824,899		954,023
FNMA Series 2004-W02 Class 5A		7.50			3-25-2044		153,839		181,093
FNMA Series 2004-W8 Class 3A		7.50			6-25-2044		1,378,237		1,616,706
FNMA Series 2004-W9 Class 1A3		6.05			2-25-2044		4,735,804		5,379,220
FNMA Series 2004-W9 Class 2A3		7.50			2-25-2044		850,040		1,042,680
FNMA Series 2005-W3 Class 1A		7.50			3-25-2045		254,693		304,526
FNMA Series 2009-14 Class A		7.00			6-25-2035		1,870,739		2,194,671
FNMA Series 2010-111 Class WA ±		6.05			10-25-2040		1,120,894		1,293,069
FNMA Series 2011-53 Class TN		4.00			6-25-2041		23,639,217		25,144,633
FNMA Series 2011-58 Class AT		4.00			7-25-2041		257,854		271,970
FNMA Series 2011-M2 Class A1		2.02			4-25-2021		3,760,039		3,850,836
FNMA Series 2012-28 Class PT		4.00			3-25-2042		1,368,755		1,440,619
FNMA Series 2012-65 Class HJ		5.00			7-25-2040		12,183,032		13,511,384
FNMA Series 2013-121 Class LB		3.00			12-25-2043		55,575,688		57,298,868
FNMA Whole Loan Series 2002-W8 Class A3		7.50			6-25-2042		129,180		152,564
FNMA Whole Loan Series 2004-W11 Class 1A2		6.50			5-25-2044		5,442,427		6,334,310
FNMA Whole Loan Series 2004-W14 Class 2A		7.50			7-25-2044		164,385		183,952
FNMA Whole Loan Series 2005-W1 Class 1A4		7.50			10-25-2044		421,356		505,439
GNMA ±		3.00			8-20-2041		5,110,991		5,322,244
GNMA		5.50			3-15-2033		1,721,574		1,939,254
GNMA		6.00			9-15-2035		11,584,732		13,321,157
GNMA Series 2009-42 Class CT		6.00			8-16-2035		1,623,521		1,900,461
Total Agency Securities (Cost $439,258,787)									440,494,232

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

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage Short Duration Government Bond Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Asset-Backed Securities: 11.69%
Ally Auto Receivables Trust Series 2013-2 Class A4		1.24	%		11-15-2018	$	3,396,000	$	3,393,422
Ally Master Owner Trust Series 2014-1 Class A1 ±		0.62			1-15-2019		4,646,000		4,651,394
American Express Issuance Trust II Series 2013-1 Class A ±		0.43			2-15-2019		8,456,000		8,462,875
American Express Issuance Trust II Series 2013-2 Class A ±		0.57			5-17-2021		7,166,000		7,189,533
American Express Issuance Trust II Series 2013-2 Class A ±		0.58			8-15-2019		4,304,000		4,321,677
California Republic Auto Receivables Trust Series 2013-2 Class A2		1.23			3-15-2019		6,225,000		6,226,282
Capital Auto Receivables Asset Trust Series 2013-1 Class A3		0.79			6-20-2017		5,028,000		5,031,867
Capital Auto Receivables Asset Trust Series 2013-3 Class A2		1.04			11-21-2016		8,512,000		8,551,096
Capital Auto Receivables Asset Trust Series 2014-1 Class A3		1.32			6-20-2018		7,667,000		7,690,530
Citibank Credit Card Issuance Trust Series 2013-A7 Class A7 ±		0.59			9-10-2020		5,664,000		5,684,742
Developers Diversified Realty Corporation Trust Series 2009-DDR1 Class A 144A		3.81			10-14-2022		8,357,131		8,500,924
Discover Card Master Trust I Series 2013-A1 Class A1 ±		0.45			8-17-2020		3,443,000		3,436,696
Ford Credit Floorplan Master Owner Trust Series 2014-1 Class A1		1.20			2-15-2019		8,063,000		8,064,459
Nelnet Student Loan Trust Series 2006-2 Class A4 ±		0.32			10-26-2026		6,484,687		6,467,892
Nelnet Student Loan Trust Series 2007-1 Class A1 ±		0.24			11-27-2018		876,318		874,668
Santander Drive Auto Receivables Trust Series 2012-5 Class A2		0.57			12-15-2015		469,498		469,531
Santander Drive Auto Receivables Trust Series 2012-5 Class A3		0.83			12-15-2016		2,745,000		2,749,562
SLC Student Loan Trust Series 2010-1 Class A ±		1.11			11-25-2042		2,234,705		2,267,075
SLM Student Loan Trust Series 2002-6 Class A4 ±		0.40			3-15-2019		1,252,181		1,251,499
SLM Student Loan Trust Series 2003-6 Class A4 ±		0.44			12-17-2018		759,300		758,765
SLM Student Loan Trust Series 2005-6 Class A5 ±		1.44			7-27-2026		1,855,871		1,883,413
SLM Student Loan Trust Series 2006-7 Class A5 ±		0.34			1-27-2025		11,255,000		11,109,934
SLM Student Loan Trust Series 2007-2 Class A2 ±		0.64			5-15-2028		1,166,773		1,164,775
SLM Student Loan Trust Series 2010-1 Class A ±		0.56			3-25-2025		5,448,998		5,466,893
SLM Student Loan Trust Series 2010-A Class 2A ±144A		3.40			5-16-2044		12,943,329		13,745,790
SLM Student Loan Trust Series 2010-A Class1A ±144A		3.20			5-16-2044		4,269,701		4,431,881
SLM Student Loan Trust Series 2011-B Class A4 ±144A		1.00			12-16-2024		2,997,560		3,006,807
SLM Student Loan Trust Series 2011-C Class A2A ±144A		3.40			10-17-2044		1,882,000		2,031,128
SLM Student Loan Trust Series 2012-E Class A2 ±144A		1.90			6-15-2045		3,636,000		3,722,911
SLM Student Loan Trust Series 2013-1 Class A2 ±		0.41			9-25-2019		2,919,000		2,895,309
SLM Student Loan Trust Series 2013-3 Class A2 ±		0.46			5-26-2020		1,762,000		1,761,209
SLM Student Loan Trust Series 2013-6 Class A2 ±		0.66			2-25-2021		1,490,000		1,495,379
SLM Student Loan Trust Series 2013-B Class A2A 144A		1.85			6-17-2030		6,259,000		6,098,012
SLM Student Loan Trust Series 2014-A Class A2B ±144A%%		1.71			1-15-2026		4,304,000		4,304,052
Total Asset-Backed Securities (Cost $159,165,633)									159,161,982
Non-Agency Mortgage Backed Securities: 5.71%
CFCRE Commercial Mortgage Trust Series 2011-C1 Class A1 144A		1.87			4-15-2044		2,970,666		3,002,924
CFCRE Commercial Mortgage Trust Series 2011-C2 Class A1		1.56			12-15-2047		2,172,176		2,183,801
Commercial Mortgage Trust Series 2013-CR10 Class A1		1.28			8-10-2046		5,630,614		5,649,944
Commercial Mortgage Trust Series 2013-CR11 Class A1		1.47			10-10-2046		3,286,733		3,301,428
Commercial Mortgage Trust Series 2013-CR12 Class A1		1.30			10-10-2046		2,312,713		2,316,936
Commercial Mortgage Trust Series 2013-CR6 Class A1		0.72			3-10-2046		3,510,608		3,489,351
Commercial Mortgage Trust Series 2013-CR8 Class A1		1.02			6-10-2046		7,741,087		7,727,695
Credit Suisse First Boston Mortgage Securities Corporation Series 2005-C1 Class A4 ±		5.01			2-15-2038		3,203,629		3,282,214
DBUBS Mortgage Trust Series 2011 Class C2 144A		3.53			7-10-2044		1,156,628		1,222,473
DBUBS Mortgage Trust Series 2011-LC3A Class A1		2.24			8-10-2044		2,074,746		2,101,552
GS Mortgage Securities Trust Series 2010-C2 Class A1 144A		3.85			12-10-2043		7,562,473		7,973,372
GS Mortgage Securities Trust Series 2013-GC16 Class A1		1.26			11-10-2046		4,431,880		4,445,198

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

12 Wells Fargo Advantage Short Duration Government Bond Fund Portfolio of investments—February 28, 2014 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage Backed Securities (continued)
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2010-C1 Class A2 144A		4.61	%		6-15-2043	$	2,478,000	$	2,706,323
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2010-CNTR Class A1 144A		3.30			8-5-2032		1,866,737		1,954,498
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2011-C3 Class A1 144A		1.87			2-15-2046		684,792		687,105
Lehman Brothers UBS Commercial Mortgage Trust Series 2004-C6 Class A6 ±		5.02			8-15-2029		2,279,412		2,299,052
Lehman Brothers UBS Commercial Mortgage Trust Series 2005-C7 Class A3 ±		5.46			11-15-2030		2,404,619		2,481,454
Morgan Stanley Capital I Trust Series 2011-C2 Class A1 144A		1.48			6-15-2044		1,561,244		1,565,625
Motel 6 Trust Series 2012-MTL6 Class A2 144A		1.95			10-5-2025		19,517,000		19,380,264
Total Non-Agency Mortgage Backed Securities (Cost $78,655,315)									77,771,209
U.S. Treasury Securities: 49.75%
U.S. Treasury Note		0.13			12-31-2014		19,046,000		19,046,000
U.S. Treasury Note		0.25			5-31-2014		197,940,000		198,025,114
U.S. Treasury Note		0.25			7-31-2015		46,514,000		46,559,444
U.S. Treasury Note		0.25			9-30-2015		38,312,000		38,332,957
U.S. Treasury Note		0.25			10-31-2015		36,571,000		36,576,705
U.S. Treasury Note		0.25			12-31-2015		2,004,000		2,003,138
U.S. Treasury Note		0.25			2-29-2016		236,983,000		236,631,317
U.S. Treasury Note		0.38			8-31-2015		1,200,000		1,203,094
U.S. Treasury Note		0.38			1-31-2016		94,595,000		94,728,001
U.S. Treasury Note		0.75			1-15-2017		3,995,000		4,007,030
Total U.S. Treasury Securities (Cost $676,638,367)									677,112,800
	Yield					Shares
Short-Term Investments: 5.49%
Investment Companies: 5.49%
Wells Fargo Advantage Government Money Market Fund, Institutional Class (l)(u)##		0.01					74,690,151		74,690,151
Total Short-Term Investments (Cost $74,690,151)									74,690,151

Total investments in securities
(Cost $1,428,408,253) *	105.00	%		1,429,230,374
Other assets and liabilities, net	(5.00	)		(68,063,485	)
Total net assets	100.00	%	$	1,361,166,889

(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.

%% Security issued on a when-issued basis.

± 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.

(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.

* Cost for federal income tax purposes is $1,429,476,231 and unrealized appreciation (depreciation) consists of:

Gross unrealized appreciation	$	4,756,591
Gross unrealized depreciation		(5,002,448	)
Net unrealized depreciation	$	(245,857)

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

Statement of assets and liabilities—February 28, 2014 (unaudited) Wells Fargo Advantage Short Duration Government Bond Fund 13

Assets
Investments
In unaffiliated securities, at value (see cost below)	$	1,354,540,223
In affiliated securities, at value (see cost below)		74,690,151
Total investments, at value (see cost below)		1,429,230,374
Receivable for investments sold		17,668,134
Principal paydown receivable		677,080
Receivable for Fund shares sold		426,576
Receivable for interest		2,263,986
Prepaid expenses and other assets		60,315
Total assets		1,450,326,465
Liabilities
Dividends payable		119,009
Payable for investments purchased		84,321,130
Payable for Fund shares redeemed		4,115,661
Advisory fee payable		267,191
Distribution fees payable		33,060
Due to other related parties		155,522
Accrued expenses and other liabilities		148,003
Total liabilities		89,159,576
Total net assets	$	1,361,166,889
NET ASSETS CONSIST OF
Paid-in capital	$	1,394,814,398
Overdistributed net investment income		(6,864,789	)
Accumulated net realized losses on investments		(27,604,841	)
Net unrealized gains on investments		822,121
Total net assets	$	1,361,166,889
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE1
Net assets – Class A	$	113,374,037
Shares outstanding – Class A		11,218,128
Net asset value per share – Class A		$10.11
Maximum offering price per share – Class A2		$10.32
Net assets – Class B	$	400,123
Shares outstanding – Class B		39,567
Net asset value per share – Class B		$10.11
Net assets – Class C	$	52,522,043
Shares outstanding – Class C		5,188,431
Net asset value per share – Class C		$10.12
Net assets – Class R6	$	58,796,713
Share outstanding – Class R6		5,799,756
Net asset value per share – Class R6		$10.14
Net assets – Administrator Class	$	205,352,236
Shares outstanding – Administrator Class		20,286,268
Net asset value per share – Administrator Class		$10.12
Net assets – Institutional Class	$	930,721,737
Shares outstanding – Institutional Class		91,958,130
Net asset value per share – Institutional Class		$10.12
Investments in unaffiliated securities, at cost	$	1,353,718,102
Investments in affiliated securities, at cost	$	74,690,151
Total investments, at cost	$	1,428,408,253

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.

14 Wells Fargo Advantage Short Duration Government Bond Fund Statement of operations—six months ended February 28, 2014 (unaudited)

Investment income
Interest	$	7,698,642
Income from affiliated securities		3,193
Total investment income		7,701,835
Expenses
Advisory fee		2,126,880
Administration fees
Fund level		335,918
Class A		94,125
Class B		526
Class C		45,636
Class R6		591
Administrator Class		104,432
Institutional Class		382,204
Shareholder servicing fees
Class A		147,070
Class B		821
Class C		71,307
Administrator Class		261,081
Distribution fees
Class B		2,464
Class C		213,922
Custody and accounting fees		38,832
Professional fees		26,232
Registration fees		83,354
Shareholder report expenses		52,738
Trustees’ fees and expenses		5,808
Other fees and expenses		19,928
Total expenses		4,013,869
Less: Fee waivers and/or expense reimbursements		(473,131	)
Net expenses		3,540,738
Net investment income		4,161,097
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		(4,196,892	)
TBA sale commitments		161,445
Net realized losses on investments		(4,035,447	)
Net change in unrealized gains (losses) on:
Unaffiliated securities		12,763,174
TBA sale commitments		47,031
Net change in unrealized gains (losses) on investments		12,810,205
Net realized and unrealized gains (losses) on investments		8,774,758
Net increase in net assets resulting from operations	$	12,935,855

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

Statement of changes in net assets Wells Fargo Advantage Short Duration Government Bond Fund 15

	Six months ended February 28, 2014 (unaudited)						Year ended August 31, 2013
Operations
Net investment income				$	4,161,097					$	11,723,427
Net realized gains (losses) on investments					(4,035,447	)					3,557,750
Net change in unrealized gains (losses) on investments					12,810,205						(20,513,653	)
Net increase (decrease) in net assets resulting from operations					12,935,855						(5,232,476	)
Distributions to shareholders from
Net investment income
Class A					(780,732	)					(2,893,432	)
Class B					(2,001	)					(12,194	)
Class C					(166,380	)					(849,500	)
Class R6					(32,381	)					(2,174	)1
Administrator Class					(1,572,723	)					(5,836,366	)
Institutional Class					(8,048,451	)					(24,450,585	)
Total distributions to shareholders					(10,602,668	)					(34,044,251	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		1,108,699			11,200,615			5,827,532			59,920,732
Class B		5,110			51,685			39,572			406,801
Class C		207,605			2,101,610			1,407,819			14,495,026
Class R6		5,868,873			59,513,180			297,805	1		3,017,844	1
Administrator Class		2,525,266			25,564,265			12,119,160			124,915,405
Institutional Class		15,611,631			158,034,854			57,274,381			589,598,252
					256,466,209						792,354,060
Reinvestment of distributions
Class A		71,247			720,195			262,636			2,692,834
Class B		174			1,764			1,070			10,987
Class C		15,210			153,985			76,201			782,704
Class R6		3,193			32,381			213	1		2,174	1
Administrator Class		142,010			1,437,625			447,427			4,598,087
Institutional Class		725,116			7,340,752			2,105,516			21,621,155
					9,686,702						29,707,941
Payment for shares redeemed
Class A		(2,481,865	)		(25,074,869	)		(9,733,675	)		(99,903,018	)
Class B		(50,496	)		(510,667	)		(63,520	)		(651,395	)
Class C		(1,280,941	)		(12,965,116	)		(2,799,797	)		(28,742,133	)
Class R6		(366,865	)		(3,720,380	)		(3,463	)1		(35,115	)1
Administrator Class		(5,617,260	)		(56,823,536	)		(16,889,747	)		(173,638,405	)
Institutional Class		(28,467,033	)		(288,006,461	)		(66,951,756	)		(689,561,038	)
					(387,101,029	)					(992,531,104	)
Net decrease in net assets resulting from capital share transactions					(120,948,118	)					(170,469,103	)
Total decrease in net assets					(118,614,931	)					(209,745,830	)
Net assets
Beginning of period					1,479,781,820						1,689,527,650
End of period				$	1,361,166,889					$	1,479,781,820
Undistributed (overdistributed) net investment income				$	(6,864,789	)				$	606,566

1. For the period from November 30, 2012 (commencement of class operations) to August 31, 2013

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, 2014 (unaudited)			Year ended August 31												Year ended May 31
CLASS A				2013			2012			2011			20101			2010			2009
Net asset value, beginning of period	$	10.09		$	10.35		$	10.36		$	10.47		$	10.41		$	10.30		$	10.01
Net investment income		0.02			0.08	2		0.10			0.16			0.05			0.19	2		0.37
Net realized and unrealized gains (losses) on investments		0.07			(0.14	)		0.09			0.07			0.08			0.20			0.32
Total from investment operations		0.09			(0.06	)		0.19			0.23			0.13			0.39			0.69
Distributions to shareholders from
Net investment income		(0.07	)		(0.20	)		(0.20	)		(0.25	)		(0.07	)		(0.28	)		(0.40	)
Net realized gains		0.00			0.00			0.00			(0.09	)		0.00			0.00			0.00
Total distributions to shareholders		(0.07	)		(0.20	)		(0.20	)		(0.34	)		(0.07	)		(0.28	)		(0.40	)
Net asset value, end of period	$	10.11		$	10.09		$	10.35		$	10.36		$	10.47		$	10.41		$	10.30
Total return3		0.86	%		(0.63	)%		1.86	%		2.17	%		1.23	%		3.85	%		7.05	%
Ratios to average net assets (annualized)
Gross expenses		0.81	%		0.82	%		0.86	%		0.87	%		0.86	%		0.88	%		0.94	%
Net expenses		0.78	%		0.79	%		0.83	%		0.83	%		0.84	%		0.85	%		0.85	%
Net investment income		0.09	%		0.80	%		0.98	%		1.60	%		1.85	%		1.86	%		3.61	%
Supplemental data
Portfolio turnover rate		198	%		324	%		399	%		485	%		135	%		501	%		277	%
Net assets, end of period (000s omitted)		$113,374			$126,316			$167,266			$162,719			$181,951			$162,737			$105,430

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, 2014 (unaudited)			Year ended August 31												Year ended May 31
CLASS B				2013			2012			2011			20101			2010			2009
Net asset value, beginning of period	$	10.10		$	10.36		$	10.36		$	10.48		$	10.42		$	10.31		$	10.01
Net investment income (loss)		(0.02	)2		0.01	2		0.03	2		0.09			0.03			0.14	2		0.30
Net realized and unrealized gains (losses) on investments		0.06			(0.15	)		0.10			0.05			0.08			0.18			0.32
Total from investment operations		0.04			(0.14	)		0.13			0.14			0.11			0.32			0.62
Distributions to shareholders from
Net investment income		(0.03	)		(0.12	)		(0.13	)		(0.17	)		(0.05	)		(0.21	)		(0.32	)
Net realized gains		0.00			0.00			0.00			(0.09	)		0.00			0.00			0.00
Total distributions to shareholders		(0.03	)		(0.12	)		(0.13	)		(0.26	)		(0.05	)		(0.21	)		(0.32	)
Net asset value, end of period	$	10.11		$	10.10		$	10.36		$	10.36		$	10.48		$	10.42		$	10.31
Total return3		0.39	%		(1.37	)%		1.22	%		1.32	%		1.04	%		3.08	%		6.36	%
Ratios to average net assets (annualized)
Gross expenses		1.56	%		1.58	%		1.60	%		1.62	%		1.62	%		1.66	%		1.69	%
Net expenses		1.53	%		1.54	%		1.57	%		1.58	%		1.59	%		1.60	%		1.60	%
Net investment income (loss)		(0.10	)%		0.06	%		0.25	%		0.85	%		1.07	%		1.30	%		2.90	%
Supplemental data
Portfolio turnover rate		198	%		324	%		399	%		485	%		135	%		501	%		277	%
Net assets, end of period (000s omitted)		$400			$856			$1,115			$1,543			$1,548			$1,760			$4,779

1. For the three months ended August 31, 2010. The Fund changed its fiscal year end from May 31 to August 31, effective August 31, 2010.

2. Calculated based upon average shares outstanding

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

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

18 Wells Fargo Advantage Short Duration Government Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2014 (unaudited)			Year ended August 31												Year ended May 31
CLASS C				2013			2012			2011			20101			2010			2009
Net asset value, beginning of period	$	10.11		$	10.37		$	10.37		$	10.48		$	10.43		$	10.32		$	10.02
Net investment income (loss)		(0.02	)		0.01	2		0.03			0.08			0.03			0.11	2		0.34
Net realized and unrealized gains (losses) on investments		0.06			(0.15	)		0.09			0.07			0.07			0.20			0.28
Total from investment operations		0.04			(0.14	)		0.12			0.15			0.10			0.31			0.62
Distributions to shareholders from
Net investment income		(0.03	)		(0.12	)		(0.12	)		(0.17	)		(0.05	)		(0.20	)		(0.32	)
Net realized gains		0.00			0.00			0.00			(0.09	)		0.00			0.00			0.00
Total distributions to shareholders		(0.03	)		(0.12	)		(0.12	)		(0.26	)		(0.05	)		(0.20	)		(0.32	)
Net asset value, end of period	$	10.12		$	10.11		$	10.37		$	10.37		$	10.48		$	10.43		$	10.32
Total return3		0.39	%		(1.37	)%		1.20	%		1.41	%		0.94	%		3.06	%		6.34	%
Ratios to average net assets (annualized)
Gross expenses		1.56	%		1.57	%		1.61	%		1.62	%		1.62	%		1.65	%		1.69	%
Net expenses		1.53	%		1.54	%		1.58	%		1.58	%		1.59	%		1.60	%		1.60	%
Net investment income (loss)		(0.09	)%		0.05	%		0.23	%		0.85	%		1.10	%		1.01	%		2.82	%
Supplemental data
Portfolio turnover rate		198	%		324	%		399	%		485	%		135	%		501	%		277	%
Net assets, end of period (000s omitted)		$52,522			$63,126			$78,385			$69,077			$72,124			$65,664			$18,009

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

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

Financial highlights Wells Fargo Advantage Short Duration Government Bond Fund 19

(For a share outstanding throughout each period)

CLASS R6	Six months ended February 28, 2014 (unaudited)			Year ended August 31, 20131
Net asset value, beginning of period	$	10.13		$	10.33
Net investment income		0.05	2		0.13	2
Net realized and unrealized gains (losses) on investments		0.05			(0.15	)
Total from investment operations		0.10			(0.02	)
Distributions to shareholders from
Net investment income		(0.09	)		(0.18	)
Net asset value, end of period	$	10.14		$	10.13
Total return3		0.96	%		(0.17	)%
Ratios to average net assets (annualized)
Gross expenses		0.42	%		0.43	%
Net expenses		0.37	%		0.37	%
Net investment income		0.22	%		0.81	%
Supplemental data
Portfolio turnover rate		198	%		324	%
Net assets, end of period (000s omitted)		$58,797			$2,983

1. For the period from November 30, 2012 (commencement of class operations) to August 31, 2013

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, 2014 (unaudited)			Year ended August 31												Year ended May 31
ADMINISTRATOR CLASS				2013			2012			2011			20101			2010			2009
Net asset value, beginning of period	$	10.11		$	10.36		$	10.37		$	10.48		$	10.42		$	10.32		$	10.02
Net investment income		0.03			0.10	2		0.13			0.17			0.05			0.22	2		0.39
Net realized and unrealized gains (losses) on investments		0.06			(0.13	)		0.09			0.08			0.08			0.19			0.33
Total from investment operations		0.09			(0.03	)		0.22			0.25			0.13			0.41			0.72
Distributions to shareholders from
Net investment income		(0.08	)		(0.22	)		(0.23	)		(0.27	)		(0.07	)		(0.31	)		(0.42	)
Net realized gains		0.00			0.00			0.00			(0.09	)		0.00			0.00			0.00
Total distributions to shareholders		(0.08	)		(0.22	)		(0.23	)		(0.36	)		(0.07	)		(0.31	)		(0.42	)
Net asset value, end of period	$	10.12		$	10.11		$	10.36		$	10.37		$	10.48		$	10.42		$	10.32
Total return3		0.85	%		(0.34	)%		2.10	%		2.41	%		1.29	%		4.01	%		7.42	%
Ratios to average net assets (annualized)
Gross expenses		0.75	%		0.76	%		0.80	%		0.80	%		0.79	%		0.80	%		0.84	%
Net expenses		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Net investment income		0.13	%		0.99	%		1.20	%		1.84	%		2.06	%		2.13	%		3.89	%
Supplemental data
Portfolio turnover rate		198	%		324	%		399	%		485	%		135	%		501	%		277	%
Net assets, end of period (000s omitted)		$205,352			$234,808			$285,637			$247,357			$435,363			$505,432			$356,409

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 Short Duration Government Bond Fund 21

(For a share outstanding throughout each period)

	Six months ended February 28, 2014 (unaudited)			Year ended August 31												Year ended May 31
INSTITUTIONAL CLASS				2013			2012			2011			20101			2010			2009
Net asset value, beginning of period	$	10.10		$	10.36		$	10.37		$	10.48		$	10.43		$	10.32		$	10.02
Net investment income		0.04			0.12			0.15			0.21			0.06			0.31	2		0.41
Net realized and unrealized gains (losses) on investments		0.06			(0.15	)		0.09			0.06			0.07			0.13			0.33
Total from investment operations		0.10			(0.03	)		0.24			0.27			0.13			0.44			0.74
Distributions to shareholders from
Net investment income		(0.08	)		(0.23	)		(0.25	)		(0.29	)		(0.08	)		(0.33	)		(0.44	)
Net realized gains		0.00			0.00			0.00			(0.09	)		0.00			0.00			0.00
Total distributions to shareholders		(0.08	)		(0.23	)		(0.25	)		(0.38	)		(0.08	)		(0.33	)		(0.44	)
Net asset value, end of period	$	10.12		$	10.10		$	10.36		$	10.37		$	10.48		$	10.43		$	10.32
Total return3		1.04	%		(0.26	)%		2.28	%		2.59	%		1.24	%		4.30	%		7.61	%
Ratios to average net assets (annualized)
Gross expenses		0.48	%		0.49	%		0.53	%		0.54	%		0.53	%		0.55	%		0.59	%
Net expenses		0.42	%		0.42	%		0.42	%		0.42	%		0.42	%		0.42	%		0.42	%
Net investment income		0.18	%		1.16	%		1.39	%		1.97	%		2.27	%		2.98	%		4.02	%
Supplemental data
Portfolio turnover rate		198	%		324	%		399	%		485	%		135	%		501	%		277	%
Net assets, end of period (000s omitted)		$930,722			$1,051,693			$1,157,125			$862,174			$572,274			$489,762			$248,124

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.

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

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). These financial statements report on the 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 (generally 4 p.m. Eastern Time).

Fixed income securities acquired with maturities exceeding 60 days are valued based on evaluated bid prices provided by an independent pricing service which may utilize both transaction data and market information such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data. If prices are not available from the independent pricing service or prices received are deemed not representative of market value, prices will be obtained from an independent broker-dealer or otherwise determined based on the Fund’s Valuation Procedures.

Short-term securities, with maturities of 60 days or less at time of purchase, 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 vehicles 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 in good faith by the Board of Trustees of the Fund. 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 values, to assess the continued appropriateness of the fair valuation methodologies used. These securities are fair valued on a day-to-day basis, taking into consideration changes to appropriate market information and any significant changes to the inputs considered in the valuation process until there is a readily available price provided on an exchange or by an independent pricing service. Valuations received from an independent pricing service or independent broker-dealer quotes are periodically validated by comparisons to most recent trades and valuations provided by other independent pricing services in addition to the review of prices by the adviser and/or subadviser. Unobservable inputs used in determining fair valuations are identified based on the type of security, taking into consideration factors utilized by market participants in valuing the investment, knowledge about the issuer and the current market environment.

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

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

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 “Securities Lending Fund”). The Securities Lending 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 Securities Lending Fund increase. All of the fees received by Funds Management are paid to WellsCap for its services as subadviser. The Securities Lending 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. Securities Lending Fund investments are fair valued based upon the amortized cost valuation technique.

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.

TBA sale commitments

The Fund may enter into To Be Announced (“TBA”) sale commitments to hedge its portfolio positions or to sell mortgage-backed securities it owns under delayed delivery arrangements. Proceeds of TBA sale commitments are not received until the contractual settlement date. During the time a TBA sale commitment is outstanding, equivalent deliverable securities or offsetting TBA purchase commitments, which are deliverable on or before the sale commitment date, are held as “cover” for the transaction. Unsettled TBA sale commitments are valued at the current market value of the underlying securities, according to the procedures described under “Securities valuation”. The contract is marked-to-market daily and the change in market value is recorded by the Fund as an unrealized gain or loss. If the TBA sale commitment is closed through the acquisition of an offsetting purchase commitment, the Fund realizes a gain or loss. If the Fund delivers securities under the commitment, the Fund realizes a gain or a loss from the sale of the securities based upon the unit price established at the date the commitment was entered into.

Security transactions and income recognition

Securities transactions are recorded on a trade date basis. Realized gains or losses are 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.

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

As of August 31, 2013, the Fund had capital loss carryforwards which consisted of $5,241,457 in short-term capital losses and $409,157 in long-term capital losses.

As of August 31, 2013, the Fund had $16,977,404 of current year deferred post-October capital losses, which were 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.

As of February 28, 2014, the inputs used in valuing investments in securities were as follows:

Investments in securities	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Agency securities	$	0	$	440,494,232	$	0	$	440,494,232
Asset-backed securities		0		159,161,982		0		159,161,982
Non-agency mortgage backed securities		0		77,771,209		0		77,771,209
U.S. Treasury securities		677,112,800		0		0		677,112,800
Short-term investments
Investment companies		74,690,151		0		0		74,690,151
	$	751,802,951	$	677,427,423	$	0	$	1,429,230,374

Transfers in and transfers out are recognized at the end of the reporting period. For the six months ended February 28, 2014, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

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.

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

Pursuant to the contract, Funds Management is entitled to receive an annual advisory fee starting at 0.30% and declining to 0.225% as the average daily net assets of the Fund increase. Prior to January 1, 2014, Funds Management was entitled to receive an annual advisory fee which started at 0.35% and declined to 0.25% as the average daily net assets of the Fund increased. For the six months ended February 28, 2014, the advisory fee was equivalent to an annual rate of 0.32% 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 and an indirect, wholly owned subsidiary of Wells Fargo, is a subadviser to the Fund and is entitled to receive a fee from Funds Management at an annual rate starting at 0.15% and declining to 0.05% as the average daily net assets of the Fund increase.

Administration and transfer agent fees

The Trust has entered into an administration agreement with Funds Management. Under this agreement, for providing administrative services, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers, Funds Management is entitled to receive from the Fund an annual fund level administration fee starting at 0.05% and declining to 0.03% as the average daily net assets of the Fund increase and a class level administration fee which is calculated based on the average daily net assets of each class as follows:

	Class level administration fee
Class A, Class B, Class C		0.16	%
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, 2014, Wells Fargo Funds Distributor, LLC received $701 from the sale of Class A shares and $21 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 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, 2014 were as follows:

Purchases at cost		Sales proceeds
U.S. government	Non-U.S. government	U.S. government	Non-U.S. government
$2,564,541,662	$155,985,812	$2,563,002,629	$147,622,878

26 Wells Fargo Advantage Short Duration Government Bond 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, 2014, the Fund paid $874 in commitment fees.

For the six months ended February 28, 2014, 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.

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

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-800-222-8222, visiting our 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.

28 Wells Fargo Advantage Short Duration Government 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 each fund in the Wells Fargo Advantage family of funds, which consists of 132 mutual 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 Harbor 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 50 portfolios as of 12/16/2013); 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 Duration Government Bond Fund 29

Name and year of birth	Position held and length of service*	Principal occupations during past five years	Other directorships during past five years
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 73 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 59 funds and Assistant Treasurer of 73 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.

30 Wells Fargo Advantage Short Duration Government 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 —  Columbian Peso

CLP —  Chilean peso

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 —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

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

NGN —  Nigerian naira

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

RON —  Romanian lei

RUB —  Russian ruble

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

THB —  Thai baht

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

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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

© 2014 Wells Fargo Funds Management, LLC. All rights reserved.

223534 04-14 SA220/SAR220 02-14

Wells Fargo Advantage Short-Term Bond Fund

Semi-Annual Report

February 28, 2014

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
Portfolio of investments	9
Financial statements
Statement of assets and liabilities	21
Statement of operations	22
Statement of changes in net assets	23
Financial highlights	24
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, 2014, 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 and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

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

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Fixed-income markets shifted during the period, driven by vacillations between U.S. Treasury yield increases and subsequent declines.

Reassurances from the Fed that a highly accommodative monetary policy would continue throughout 2014 inspired price rallies across both the investment-grade and high-yield bond markets.

Dear Valued Shareholder:

We are pleased to offer you this semi-annual report for the Wells Fargo Advantage Short-Term Bond Fund for the six-month period that ended February 28, 2014. Fixed-income markets shifted during the period, driven by vacillations between U.S. Treasury yield increases and subsequent declines. However, on the whole, investment-grade (measured by the Barclays U.S. Aggregate Bond Index¹) and high-yield markets (measured by the Barclays U.S. High Yield Bond Index²) generated positive returns during the period, notably benefiting from the strong price improvement and declining U.S. Treasury yields that occurred in September and October of 2013 as well as the opening months of 2014. Although the returns of the U.S. high-yield market have often been positively correlated with U.S. equity returns (measured by the S&P 500 Index³) over the long-run, over the period, high-yield (measured by the Barclays U.S. High Yield Bond Index) generally performed well even when equities did not. The lower-rated corporate bond credit tiers outperformed the respectively higher-rated investment-grade credit tiers during the period.

A decline in bond prices was halted by the Fed’s postponement of tapering its bond-buying program.

Before the six-month period began, equity markets rallied, most notably in May and June of 2013. This led to a sharp increase in U.S. Treasury yields and declining valuations for much of the fixed-income markets (measured by the Barclays U.S. Aggregate Bond Index). However, in July and August 2013, that equity exuberance quieted a bit, and fixed-income markets stabilized. Returns across the fixed-income markets were largely negative in investment-grade and high-yield markets but modest in comparison with the declines in May and June of 2013.

But, by September and October of 2013, investment-grade and high-yield bond markets began generating positive returns yet again, as the Federal Reserve (Fed) backtracked on its intentions to taper its quantitative easing program, postponing it until 2014, at the earliest. This created a temporary rally in bonds that lasted until around November 20, 2013, when notes were released from the Fed’s October 2013 meeting that tapering of the bond-buying programs would not be postponed beyond January 2014. In response, long-term U.S. Treasury yields and mortgage rates ratcheted higher on expectations for an unwinding of monetary accommodation in the upcoming months. This led to declines in pricing across much of the core fixed-income markets (measured by the Barclays U.S. Aggregate Bond Index). U.S. High-yield markets were better able to absorb the shift in U.S. Treasury yields and continued to provide positive returns along with rallies in the equity markets.

Favorable conditions for fixed-income markets were restored in January and February 2014.

Seemingly much to the surprise of many everyday investors and seasoned investment professionals alike, fixed-income markets (measured by the Barclays U.S. Aggregate Bond Index) largely outperformed U.S. equity markets (measured by the S&P 500 Index) during the opening months of 2014. A pullback in equity exuberance in January and reassurances from the Fed that a highly accommodative monetary policy would continue throughout 2014 inspired price rallies across both the investment-grade and high-yield bond markets. U.S. Treasury yields declined in January 2014 and corporate bonds and mortgage-backed securities performed notably well. U.S. high-yield securities generated positive returns in January 2014 but lagged the rally across the investment-grade

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

bond markets. This theme reversed in February 2014, as high-yield sectors rallied and investment-grade sectors performed well but not to the extent of the lowest-rated credit tiers.

One positive takeaway for bond investors that helped fuel the fixed-income (measured by the Barclays U.S. Aggregate Bond Index) rallies was former Fed Chairman Bernanke’s guidance at the end of 2013. He indicated that the tapering of the Fed’s bond-buying program would proceed at a slow pace and that a reduction in quantitative easing should not be equivocated with a tightening of monetary policy. The distinction was important—although the bond-buying program was declining in volume, it was, nonetheless, still continuing. Additionally, the federal funds target rate would remain unchanged for the foreseeable future, with the implications that it would not increase until the bond-buying program was fully disbanded. These were important statements for fixed-income investors that helped bolster U.S. fixed-income valuations in the opening months of 2014.

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

Periods of investment uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Advantage Funds offers more than 100 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. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

Thank you for choosing to invest with Wells Fargo 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

1. The Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and CMBS. You cannot invest directly in an index.

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

3. The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock’s weight in the index proportionate to its market value. You cannot invest directly in an index.

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

Notice to shareholders

The Fund and Wells Fargo Funds Management, LLC (“Funds Management”) have received an exemptive order from the SEC that permits Funds Management, subject to the approval of the Board of Trustees of the Fund, to select or replace certain subadvisers to manage all or a portion of the Fund’s assets and enter into, amend or terminate a sub-advisory agreement with certain subadvisers without obtaining shareholder approval (“Multi-manager Structure”). The Multi-manager Structure applies to subadvisers that are not affiliated with Funds Management or the Fund, except to the extent that affiliation arises solely because such subadvisers provide sub-advisory services to the Fund (“Non-affiliated Subadvisers”), as well as subadvisers that are indirect or direct wholly-owned subsidiaries of Funds Management or of another company that, indirectly or directly, wholly owns Funds Management (“Wholly-owned Subadvisers”).

Pursuant to the SEC order, Funds Management, with the approval of the Board of Trustees, has the discretion to terminate any subadvisers and allocate and reallocate the Fund’s assets among any other Non-affiliated Subadvisers or Wholly-owned Subadvisers. Funds Management, subject to oversight and supervision by the Board of Trustees, has responsibility to continue to oversee any subadvisers to the Fund and to recommend, for approval by the Board of Trustees, the hiring, termination and replacement of subadvisers for the Fund. In the event that a new subadviser is hired pursuant to the Multi-manager Structure, the Fund is required to provide notice to shareholders within 90 days.

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

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6 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

Jay N. Mueller, CFA

Christopher Y. Kauffman, CFA

Noah Wise, CFA

Average annual total returns¹ (%) as of February 28, 2014

		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		(0.94	)		3.24		2.87		1.09		3.65		3.07		0.81		0.78
Class C (WFSHX)	3-31-2008		(0.67	)		2.88		2.32		0.33		2.88		2.32		1.56		1.53
Institutional Class (SSHIX)	8-31-1999		–			–		–		1.41		3.96		3.43		0.48		0.48
Investor Class (SSTBX)	8-31-1987		–			–		–		1.07		3.62		3.06		0.84		0.79
Barclays 1-3 Year U.S. Government/Credit Bond Index4	–		–			–		–		0.81		2.07		2.86		–		–

Figures quoted represent past performance, which is no guarantee of future results, and do not reflect 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, which 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. 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. 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 7.

Performance highlights (unaudited) Wells Fargo Advantage Short-Term Bond Fund 7

Ten largest long-term holdings5 (%) as of  February 28, 2014
Nordea Eiendomskreditt, 1.88%, 4-7-2014	0.93%
Volvo Financial Equipment LLC Series 2014-1A Class A2, 0.54%, 11-15-2016	0.79%
CNH Equipment Trust Series 2013-C Class A2, 0.63%, 1-17-2017	0.77%
GNMA Series 2012-19 Class A, 1.83%, 3-16-2039	0.74%
Ford Credit Auto Owner Trust Series 2014-A Class A2, 0.48%, 11-15-2016	0.72%
FNMA, 3.25%, 4-1-2015	0.65%
Mercedes-Benz Auto Lease Trust Series 2013-B Class A2, 0.53%, 9-15-2015	0.64%
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series D, 0.28%, 11-1-2040	0.64%
Murray Street Investment Trust I, 4.65%, 3-9-2017	0.62%
Portland OR Taxable Pension, 0.08%, 6-1-2019	0.61%

Portfolio allocation⁶ as of February 28, 2014

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

2. Reflects the expense ratios as stated in the most recent prospectuses, which include the impact of 0.01% in acquired fund fees and expenses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report, which do not include acquired fund fees and expenses.

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 0.77% for Class A, 1.52% for Class C, 0.48% for Institutional Class, and 0.78% 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 one- to three-year component of the Barclays Government/Credit Bond Index which includes securities in the Government and Credit Indices. The Government Index includes Treasuries (that is, public obligations of the U.S. Treasury that have remaining maturities of more than one year) and agencies (that is, 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.

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.

8 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, 2013 to February 28, 2014.

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 9-1-2013		Ending account value 2-28-2014		Expenses paid during the period1		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,011.54	$	3.94		0.79	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.88	$	3.96		0.79	%
Class C
Actual	$	1,000.00	$	1,007.79	$	7.67		1.54	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.16	$	7.70		1.54	%
Institutional Class
Actual	$	1,000.00	$	1,013.10	$	2.40		0.48	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.41	$	2.41		0.48	%
Investor Class
Actual	$	1,000.00	$	1,012.63	$	3.99		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, 2014 (unaudited) Wells Fargo Advantage Short-Term Bond Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities: 16.04%
FDIC Series 2010-R1 Class A 144A		2.18	%		5-25-2050	$	2,405,586	$	2,422,103
FDIC Series 2013-R1 Class A 144A		1.15			3-25-2033		2,056,638		1,998,167
FHLMC ±		2.38			4-1-2032		68,742		72,753
FHLMC ±		2.53			7-1-2029		5,828		6,146
FHLMC ±		2.53			9-1-2031		7,404		7,556
FHLMC ±		2.95			5-1-2026		136,200		142,503
FHLMC		3.00			2-15-2024		1,753,033		1,813,939
FHLMC		3.50			6-15-2038		1,730,935		1,816,534
FHLMC		4.50			5-15-2018		320,085		337,785
FHLMC		4.50			7-15-2022		404,263		411,535
FHLMC		5.00			10-15-2032		757,102		789,138
FHLMC		6.00			10-1-2021		748,735		820,156
FHLMC		8.50			9-1-2017		117,018		123,857
FHLMC		9.00			8-1-2018		95,938		103,366
FHLMC		9.00			6-1-2019		113,517		122,624
FHLMC		9.00			10-1-2019		211,007		234,155
FHLMC		9.50			12-1-2022		181,875		200,105
FHLMC		10.50			1-1-2016		1,663		1,756
FHLMC		10.50			11-1-2017		939		1,033
FHLMC		10.50			8-1-2018		81,640		90,643
FHLMC		10.50			2-1-2019		1,175		1,330
FHLMC		10.50			4-1-2019		494		544
FHLMC		10.50			5-1-2019		561		634
FHLMC		10.50			6-1-2019		4,381		4,885
FHLMC		10.50			7-1-2019		1,159		1,316
FHLMC Series 2597 Series AE		5.50			4-15-2033		454,310		506,044
FHLMC Series 2631 Class LC		4.50			6-15-2018		717,032		755,784
FHLMC Series 2656 Class BG		5.00			10-15-2032		1,755,218		1,849,708
FHLMC Series 2958 Class QD		4.50			4-15-2020		2,343,604		2,477,783
FHLMC Series 3117 Class PL		5.00			8-15-2034		1,563,103		1,604,095
FHLMC Series 3656 Class BH		3.00			12-15-2019		3,079,695		3,129,047
FHLMC Series 3778 Class BM		3.50			8-15-2028		839,332		875,278
FHLMC Series 3794 Class LK		3.00			2-15-2024		3,167,097		3,285,733
FHLMC Series 3855 Class HL		3.50			2-15-2026		654,422		693,099
FHLMC Series 3920 Class AB		3.00			9-15-2025		1,519,328		1,591,661
FHLMC Series T-57 Class 2A1 ±		3.24			7-25-2043		28,489		29,763
FHLMC Series T-59 Class 2A1 ±		2.91			10-25-2043		1,196,438		1,234,242
FHLMC Structured Pass-Through Securities Series T-42 Class A6		9.50			2-25-2042		556,488		695,777
FNMA ±		2.31			11-1-2031		71,608		76,214
FNMA		2.73			10-1-2017		3,083,386		3,229,526
FNMA		2.93			12-1-2017		2,407,994		2,537,306
FNMA		3.25			4-1-2015		4,415,480		4,526,874
FNMA		3.33			10-1-2017		1,659,210		1,719,356
FNMA		3.34			4-1-2016		975,359		1,017,811
FNMA		3.34			9-1-2017		1,431,210		1,523,236
FNMA		3.50			10-1-2023		1,977,322		2,100,010
FNMA		3.50			11-1-2023		1,184,099		1,257,635
FNMA		3.69			6-1-2017		3,387,307		3,649,246
FNMA		3.74			5-1-2018		1,327,545		1,433,328
FNMA		3.85			10-1-2016		3,167,929		3,236,903

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

10 Wells Fargo Advantage Short-Term Bond Fund Portfolio of investments—February 28, 2014 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA		4.00	%		5-25-2019	$	578,996	$	610,230
FNMA		4.00			12-15-2024		908,898		959,763
FNMA		4.00			6-25-2026		1,728,034		1,856,775
FNMA		4.00			8-25-2037		1,812,115		1,882,468
FNMA		4.34			2-1-2017		475,888		490,213
FNMA		4.44			9-1-2015		1,718,645		1,822,674
FNMA		4.69			11-1-2015		1,781,801		1,863,472
FNMA		5.00			1-15-2022		2,545,761		2,719,398
FNMA		5.00			3-25-2034		812,503		831,380
FNMA		5.09			2-1-2016		875,711		926,077
FNMA		5.19			1-1-2018		2,365,155		2,540,770
FNMA		5.29			8-1-2015		2,700,053		2,837,782
FNMA		5.50			1-1-2016		344,486		365,333
FNMA		5.50			8-25-2034		1,242,736		1,341,424
FNMA		6.00			4-1-2021		1,292,197		1,377,969
FNMA		6.00			3-1-2033		1,057,214		1,196,228
FNMA		6.28			11-1-2018		754,708		787,771
FNMA		6.50			8-1-2031		514,666		582,518
FNMA		7.60			8-1-2018		205,675		225,320
FNMA		8.00			4-1-2017		156,369		166,231
FNMA		8.00			9-1-2019		110,272		117,428
FNMA		8.00			9-1-2023		12,164		13,132
FNMA		8.33			7-15-2020		39,743		44,488
FNMA		8.50			7-1-2018		73,522		78,382
FNMA		8.50			2-1-2023		78,604		84,276
FNMA		9.00			2-15-2020		1,495		1,730
FNMA		9.00			11-1-2024		132,380		150,449
FNMA		11.00			10-15-2020		62,049		64,627
FNMA		12.00			3-1-2017		6,570		6,638
FNMA Grantor Trust Series 2002-T12 Class A4		9.50			5-25-2042		882,428		1,103,301
FNMA Series 1989-29 Class Z		10.00			6-25-2019		127,813		146,256
FNMA Series 1989-63 Class Z		9.40			10-25-2019		66,694		73,063
FNMA Series 2002-T1 Class A4		9.50			11-25-2031		77,276		94,836
FNMA Series 2003-15 Class CB		5.00			3-25-2018		1,478,793		1,565,224
FNMA Series 2003-41 Class PE		5.50			5-25-2023		1,908,411		2,087,202
FNMA Series 2004-90 Class XY		4.00			9-25-2034		1,233,596		1,301,389
FNMA Series 2006-48 Class TD		5.50			12-25-2034		992,309		1,017,581
FNMA Series 2006-9 Class BM		6.00			10-25-2033		490,509		492,908
FNMA Series 2008-53 Class CA		5.00			7-25-2023		1,549,791		1,660,573
FNMA Series 2011-133 Class A		3.50			6-25-2029		2,388,455		2,507,156
FNMA Series 2011-17 Class ED		3.50			7-25-2025		710,688		740,799
FNMA Series 2011-39 Class CA		3.00			5-25-2024		623,678		648,960
FNMA Series 2011-66 Class BE		3.00			3-25-2025		1,531,117		1,589,468
FNMA Series 2011-71 Class DJ		3.00			3-25-2025		3,037,839		3,134,937
FNMA Series G95-2 Class IO		10.00			5-25-2020		166,957		15,401
FNMA Whole Loan Series 2003-W06 Class PT4 ±		8.86			10-25-2042		121,557		141,421
FNMA Whole Loan Series 2003-W11 Class A1 ±		3.29			6-25-2033		25,294		25,001
FNMA Whole Loan Series 2003-W6 Class 6A ±		3.05			8-25-2042		1,419,973		1,481,920
FNMA Whole Loan Series 2004-W6 Class 1A4		5.50			7-25-2034		1,109,313		1,127,650
GNMA		4.00			8-16-2023		1,090,657		1,165,675

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

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage Short-Term Bond Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
GNMA		4.50	%		4-20-2035	$	871,615	$	934,261
GNMA		8.00			12-15-2023		44,967		53,253
GNMA		9.00			11-15-2017		52,306		56,786
GNMA		9.00			11-15-2024		31,690		37,164
GNMA		10.00			2-20-2018		8,955		9,857
GNMA		12.50			4-15-2019		44,618		45,842
GNMA Series 2010-6 Class EA		4.00			9-16-2023		1,108,247		1,164,395
GNMA Series 2012-19 Class A		1.83			3-16-2039		5,201,063		5,201,885
Total Agency Securities (Cost $111,079,240)									112,129,132
Asset-Backed Securities: 8.28%
ASG Resecuritization Trust Series 2009-4 Class A60 144A		6.00			6-28-2037		676,915		707,272
CNH Equipment Trust Series 2013-C Class A2		0.63			1-17-2017		5,402,964		5,409,907
DBRR Trust Series 2012-EZ1 Class A 144A		0.95			9-25-2045		548,818		548,847
Ford Credit Auto Owner Trust Series 2012-D Class A2		0.40			9-15-2015		456,698		456,707
Ford Credit Auto Owner Trust Series 2013-A Class A2		0.38			11-15-2015		809,501		809,716
Ford Credit Auto Owner Trust Series 2014-A Class A2		0.48			11-15-2016		5,000,000		5,003,435
GE Equipment LLC Series 2013-2 Class A2		0.61			6-24-2016		3,250,000		3,252,418
GE Equipment Small Ticket LLC Series 2013-1A Class A2 144A		0.73			1-25-2016		1,700,000		1,702,491
GE Equipment Transportation LLC Series 2013-1 Class A2		0.50			11-24-2015		2,147,204		2,147,024
Home Equity Asset Trust Series 2003-6 Class M1 ±		1.66			2-25-2034		1,696,076		1,594,293
Honda Auto Receivables Owner Trust Series 2014-1 Class A2		0.41			9-21-2016		2,700,000		2,699,668
Hyundai Auto Lease Securitization Trust Series 2013-A Class A2 144A		0.51			9-15-2015		2,102,622		2,103,318
Hyundai Auto Lease Securitization Trust Series 2013-B Class A2 144A		0.75			3-15-2016		3,900,000		3,908,424
Hyundai Auto Receivables Trust Hart Series 2013-A Class A2		0.40			12-15-2015		1,208,274		1,208,779
Mercedes-Benz Auto Lease Trust Series 2013-B Class A2		0.53			9-15-2015		4,500,000		4,503,722
Mercedes-Benz Auto Receivables Trust Series 2012-1 Class A2		0.37			3-16-2015		299,346		299,362
Newcastle Investment Trust Series 2011-MH1 Class A 144A		2.45			12-10-2033		554,690		559,569
Nissan Auto Lease Trust Series 2013-A Class A2A		0.45			9-15-2015		3,236,140		3,237,166
Nissan Auto Receivables Owner Trust Series 2012-B Class A2		0.39			4-15-2015		338,981		338,993
Porsche Innovative Lease Owner Pilot Trust Series 2013-1 Class A2 144A		0.54			1-22-2016		3,000,000		3,002,814
Volkswagen Auto Lease Trust Series 2013-A Class A2A		0.63			12-21-2015		2,357,701		2,361,195
Volkswagen Auto Lease Trust Series 2014-A Class A2A		0.52			10-20-2016		4,100,000		4,110,754
Volvo Financial Equipment LLC Series 2013-1A Class A2 144A		0.53			11-16-2015		2,407,499		2,408,023
Volvo Financial Equipment LLC Series 2014-1A Class A2 144A%%		0.54			11-15-2016		5,500,000		5,499,985
Total Asset-Backed Securities (Cost $57,895,006)									57,873,882
Corporate Bonds and Notes: 41.01%
Consumer Discretionary: 5.57%
Automobiles: 0.89%
Ford Motor Company		6.50			8-1-2018		2,667,000		3,108,124
Hyundai Motor Company 144A		4.50			4-15-2015		3,006,000		3,121,893
									6,230,017
Leisure Products: 0.39%
Hasbro Incorporated		6.13			5-15-2014		2,725,000		2,754,174

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

12 Wells Fargo Advantage Short-Term Bond Fund Portfolio of investments—February 28, 2014 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Media: 3.36%
Cox Communications Incorporated		5.45	%		12-15-2014	$	1,543,000	$	1,601,569
Cox Communications Incorporated		5.50			10-1-2015		2,000,000		2,143,576
Interpublic Group of Companies Incorporated		6.25			11-15-2014		2,860,000		2,956,525
McGraw-Hill Company Incorporated		5.90			11-15-2017		3,500,000		3,855,541
TCI Communications Incorporated		8.75			8-1-2015		2,290,000		2,550,078
Tcm Sub LLC 144A		3.55			1-15-2015		4,000,000		4,101,132
Thompson Reuters Corporation		6.50			7-15-2018		2,500,000		2,911,778
Viacom Incorporated		6.25			4-30-2016		3,000,000		3,335,841
									23,456,040
Multiline Retail: 0.93%
Dollar General Corporation		4.13			7-15-2017		3,000,000		3,229,926
Macy’s Retail Holding Incorporated		7.88			7-15-2015		3,000,000		3,278,454
									6,508,380
Consumer Staples: 1.63%
Beverages: 0.16%
Constellation Brands Incorporated		7.25			9-1-2016		1,000,000		1,132,500
Food & Staples Retailing: 0.99%
Safeway Incorporated		5.63			8-15-2014		3,000,000		3,055,911
Tyson Foods Incorporated		6.60			4-1-2016		3,495,000		3,883,805
									6,939,716
Household Products: 0.48%
Newell Rubbermaid Incorporated		2.00			6-15-2015		3,290,000		3,336,646
Energy: 3.65%
Oil, Gas & Consumable Fuels: 3.65%
Boardwalk Pipelines LP		5.88			11-15-2016		1,000,000		1,093,635
Buckeye Partners LP		2.65			11-15-2018		3,000,000		3,007,746
Continental Resources Company		8.25			10-1-2019		3,075,000		3,328,688
Energy Transfer Partners LP		5.95			2-1-2015		3,205,000		3,351,174
Marathon Petroleum Corporation		3.50			3-1-2016		3,000,000		3,150,288
Nabors Industries Incorporated 144A		2.35			9-15-2016		3,000,000		3,071,946
Pioneer Natural Resources Company		5.88			7-15-2016		2,940,000		3,251,614
Weatherford Bermuda Company		5.50			2-15-2016		2,000,000		2,154,678
Williams Partners LP		3.80			2-15-2015		3,000,000		3,086,979
									25,496,748
Financials: 14.43%
Banks: 1.65%
Australia and New Zealand Banking Group Limited 144A		2.40			11-23-2016		3,000,000		3,113,316
Bank of America Corporation		6.50			8-1-2016		3,000,000		3,378,822
Bank One Corporation		4.90			4-30-2015		1,500,000		1,571,459
ING Bank NV ±		0.91			5-23-2016		2,500,000		2,468,750
US Bank NA ±		3.78			4-29-2020		1,006,000		1,040,315
									11,572,662

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

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage Short-Term Bond Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Capital Markets: 1.11%
Janus Capital Group Incorporated		6.70	%		6-15-2017	$	2,500,000	$	2,849,883
Lazard Group LLC		6.85			6-15-2017		3,000,000		3,428,883
Merrill Lynch & Company		5.30			9-30-2015		1,400,000		1,492,336
									7,771,102
Consumer Finance: 3.96%
Capital One Bank Company		1.20			2-13-2017		3,000,000		3,002,085
Discover Financial Services Company		6.45			6-12-2017		3,000,000		3,400,392
Ford Motor Credit Company		5.63			9-15-2015		1,000,000		1,070,401
Gatx Financial Corporation		5.70			4-15-2015		2,635,000		2,776,571
General Motors Financial Company Incorporated		2.75			5-15-2016		3,665,000		3,736,468
Harley-Davidson Funding Corporation 144A		5.75			12-15-2014		3,000,000		3,117,240
Murray Street Investment Trust I		4.65			3-9-2017		4,000,000		4,335,284
Nissan Motor Acceptance Corporation ±144A%%		1.00			3-3-2017		3,000,000		2,995,500
SLM Corporation		3.88			9-10-2015		1,500,000		1,551,266
SLM Corporation		6.25			1-25-2016		1,535,000		1,657,800
									27,643,007
Diversified Financial Services: 3.36%
Citigroup Incorporated		1.30			4-1-2016		2,300,000		2,313,108
HSBC Finance Corporation		5.25			4-15-2015		3,000,000		3,150,750
JPMorgan Chase & Company		1.35			2-15-2017		2,000,000		2,008,316
Morgan Stanley		4.75			4-1-2014		3,000,000		3,009,294
Raymond James Financial Incorporated		4.25			4-15-2016		2,000,000		2,129,304
Santander Holdings USA		4.63			4-19-2016		2,000,000		2,143,980
Toll Road Investors Partnership II 144A¤		0.00			2-15-2016		2,500,000		2,312,205
UBS AG Stamford Connecticut		5.88			7-15-2016		3,000,000		3,332,829
Woodside Finance Limited 144A		4.50			11-10-2014		3,000,000		3,077,154
									23,476,940
Insurance: 2.21%
Genworth Financial Incorporated		8.63			12-15-2016		2,000,000		2,365,064
MetLife Insurance Company 144A		7.70			11-1-2015		3,000,000		3,302,862
Prudential Insurance Company 144A		8.10			7-15-2015		3,910,000		4,205,099
Symetra Financial Corporation 144A		6.13			4-1-2016		2,150,000		2,297,327
Unum Group 144A		6.85			11-15-2015		2,997,000		3,264,117
									15,434,469
REITs: 2.14%
American Tower Corporation		4.50			1-15-2018		2,700,000		2,936,966
ARC Properties Operating Partnership LP 144A		2.00			2-6-2017		3,245,000		3,247,197
Digital Realty Trust LP		4.50			7-15-2015		3,000,000		3,115,698
Health Care REIT Incorporated		3.63			3-15-2016		2,380,000		2,505,033
Regency Centers LP		5.25			8-1-2015		3,000,000		3,172,218
									14,977,112
Health Care: 1.30%
Biotechnology: 0.52%
Biogen Idec Incorporated		6.88			3-1-2018		3,045,000		3,611,397

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

14 Wells Fargo Advantage Short-Term Bond Fund Portfolio of investments—February 28, 2014 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Health Care Equipment & Supplies: 0.31%
Boston Scientific Corporation		6.25	%		11-15-2015	$	2,000,000	$	2,177,320
Life Sciences Tools & Services: 0.47%
Life Technologies Corporation		4.40			3-1-2015		3,170,000		3,284,380
Industrials: 4.52%
Aerospace & Defense: 0.92%
BAE Systems Holdings Incorporated 144A		4.95			6-1-2014		3,000,000		3,031,065
L-3 Communications Corporation		3.95			11-15-2016		3,175,000		3,379,499
									6,410,564
Airlines: 0.43%
Delta Air Lines Incorporated		4.75			11-7-2021		2,789,789		2,999,023
Building Products: 0.41%
Owens Corning Incorporated		6.50			12-1-2016		2,575,000		2,863,907
Commercial Services & Supplies: 1.39%
Boardwalk Pipelines LLC		5.20			6-1-2018		2,179,000		2,311,287
Brambles USA Incorporated 144A		3.95			4-1-2015		2,000,000		2,062,728
Equifax Incorporated		4.45			12-1-2014		2,000,000		2,055,138
Penske Truck Leasing Company LP 144A		2.50			7-11-2014		1,500,000		1,509,936
Penske Truck Leasing Company LP 144A		3.13			5-11-2015		1,740,000		1,788,556
									9,727,645
Machinery: 0.42%
CNH Capital LLC		3.25			2-1-2017		1,760,000		1,786,400
CNH Capital LLC		3.88			11-1-2015		1,145,000		1,177,919
									2,964,319
Road & Rail: 0.95%
JB Hunt Transportation Services Company		3.38			9-15-2015		3,700,000		3,827,099
Ryder System Incoporated		3.60			3-1-2016		2,675,000		2,807,217
									6,634,316
Information Technology: 3.43%
Electronic Equipment, Instruments & Components: 0.64%
Agilent Technologies Incorporated		5.50			9-14-2015		1,300,000		1,393,428
Arrow Electronics Incorporated		3.38			11-1-2015		3,000,000		3,104,037
									4,497,465
IT Services: 0.40%
Western Union Company		2.38			12-10-2015		2,700,000		2,770,419

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

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage Short-Term Bond Fund 15

Security name	Interest rate			Maturity date			Principal		Value
Software: 1.53%
Autodesk Incorporated		1.95	%		12-15-2017		$	3,000,000	$	3,024,468
CA Incorporated		6.13			12-1-2014			3,000,000		3,121,953
Fidelity National Information Services Incorporated		2.00			4-15-2018			2,000,000		1,969,610
Symantec Corporation		2.75			9-15-2015			1,000,000		1,029,685
Symantec Corporation		2.75			6-15-2017			1,500,000		1,555,128
										10,700,844
Technology Hardware, Storage & Peripherals: 0.86%
Hewlett-Packard Company		2.75			1-14-2019			3,000,000		3,043,692
Xerox Corporation		8.25			5-15-2014			2,940,000		2,981,866
										6,025,558
Materials: 0.77%
Chemicals: 0.19%
CF Industries Incorporated		6.88			5-1-2018			1,165,000		1,357,922
Metals & Mining: 0.58%
Arcelormittal Company		3.75			2-25-2015			1,000,000		1,023,750
Glencore Funding LLC 144A		1.70			5-27-2016			3,000,000		3,019,569
										4,043,319
Telecommunication Services: 1.65%
Diversified Telecommunication Services: 1.65%
Crown Castle Towers LLC 144A		3.21			8-15-2035			2,650,000		2,701,431
Qwest Corporation		7.50			10-1-2014			3,520,000		3,648,110
SBA Tower Trust 144A		4.25			4-15-2040			3,000,000		3,033,741
Verizon Communications Incorporated		3.65			9-14-2018			2,000,000		2,131,360
										11,514,642
Utilities: 4.06%
Electric Utilities: 4.06%
Ameren Corporation		8.88			5-15-2014			3,738,000		3,797,662
Dayton Power & Light Company 144A		1.88			9-15-2016			4,000,000		4,071,916
FPL Group Capital Incorporated		2.60			9-1-2015			3,000,000		3,082,413
Interstate Power & Light Company		3.30			6-15-2015			3,750,000		3,859,136
ITC Holdings Corporation 144A		5.88			9-30-2016			3,000,000		3,311,052
Monongahela Power Company 144A		5.70			3-15-2017			3,000,000		3,263,937
Niagara Mohawk Power Corporation 144A		3.55			10-1-2014			3,667,000		3,731,987
Progress Energy Incorporated		5.63			1-15-2016			3,000,000		3,260,922
										28,379,025
						��
Total Corporate Bonds and Notes (Cost $283,993,172)										286,691,578
Municipal Obligations: 6.27%
California: 1.90%
California PCFA Solid Waste Disposal Series A (Resource Recovery Revenue) ø144A		0.55			8-1-2023			3,000,000		3,000,000
California PCFA Waste Management Services Incorporated Series A1 (Resource Recovery Revenue) ±		1.88			4-1-2025			2,000,000		2,021,340

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

16 Wells Fargo Advantage Short-Term Bond Fund Portfolio of investments—February 28, 2014 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
California (continued)
California Public Works Board Lease Series E (Miscellaneous Revenue)		3.68	%		12-1-2015	$	2,960,000	$	3,068,810
Irvine Ranch CA Water District (Water & Sewer Revenue)		2.39			3-15-2014		2,305,000		2,306,867
San Bernardino County CA Financing Authority (Miscellaneous Revenue, National Insured) ¤		0.00			8-1-2017		3,500,000		2,911,300
									13,308,317
Florida: 0.17%
Miami-Dade County FL IDA Waste Management Incorporated Florida Project (Resource Recovery Revenue) ±		2.63			8-1-2023		1,200,000		1,208,172
Georgia: 0.45%
Georgia Municipal Gas Authority Taxable Gas Portfolio III Series F (Utilities Revenue)		4.77			8-1-2015		3,000,000		3,172,080
Illinois: 0.79%
Chicago IL (Tax Revenue)		6.30			12-1-2021		2,000,000		2,242,320
Illinois (GO)		5.16			2-1-2018		2,545,000		2,754,479
Illinois (GO)		5.20			3-1-2018		500,000		542,380
									5,539,179
Michigan: 0.27%
Michigan Strategic Fund Limited Obligation Revenue (Resource Recovery Revenue) ±		4.25			8-1-2031		1,885,000		1,888,450
Ohio: 0.43%
Columbus Franklin County OH Finance Authority Research & Development (Industrial Development Revenue)		3.45			2-15-2015		2,885,000		2,965,463
Oregon: 0.61%
Portland OR Taxable Pension (GO) ±(m)(n)		0.08			6-1-2019		4,525,000		4,253,500
Pennsylvania: 0.29%
Bucks County PA IDA (Resource Recovery Revenue) ±		1.38			12-1-2022		2,000,000		2,005,980
South Carolina: 0.43%
South Carolina Public Service Authority Series D (GO) ±		1.03			6-1-2015		3,000,000		3,013,320
Texas: 0.64%
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series D (Industrial Development Revenue) ø		0.28			11-1-2040		4,500,000		4,500,000
Wisconsin: 0.29%
Menomonee Falls WI (GO)		4.25			11-1-2014		2,000,000		2,007,340
Total Municipal Obligations (Cost $43,718,595)									43,861,801
Non-Agency Mortgage Backed Securities: 8.65%
Bank of America Mortgage Securities Series 2002-K Class 3A1 ±		2.63			10-20-2032		23,040		23,428
Bear Stearns Commercial Mortgage Securities Incorporated Series 2005-PWR 9 Class A4A		4.87			9-11-2042		3,302,000		3,453,615
Bear Stearns Commercial Mortgage Securities Incorporated Series 2005-PWR-7 Class A3 ±		5.12			2-11-2041		2,055,000		2,120,394

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

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage Short-Term Bond Fund 17

Security name	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage Backed Securities (continued)
Bear Stearns Commercial Mortgage Securities Incorporated Series 2005-PWR8 Class A4		4.67	%		6-11-2041	$	2,719,934	$	2,822,258
Bear Stearns Commercial Mortgage Securities Incorporated Series 2005-T18 Class A4 ±		4.93			2-13-2042		2,431,979		2,508,802
Bear Stearns Commercial Mortgage Securities Incorporated Series 2005-T20 Class A4A ±		5.14			10-12-2042		1,100,000		1,162,906
Citigroup Commercial Mortgage Trust Series 2004-C1 Class A4 ±		5.35			4-15-2040		1,483,328		1,489,269
Citigroup/Deutsche Bank Commercial Mortgage Trust Pass-Through Certificate Series 2005-CD1 Class A4 ±		5.22			7-15-2044		2,500,000		2,639,145
Commercial Mortgage Trust Pass-Through Certificate Series 2005-C6 Class A5A ±		5.12			6-10-2044		2,790,614		2,927,463
Commercial Mortgage Trust Series 2010-C1 Class A1 144A		3.16			7-10-2046		2,720,628		2,794,871
Commercial Mortgage Trust Series 2012-CR2 Class A1		0.82			8-15-2045		1,802,193		1,799,409
Commercial Mortgage Trust Series 2013-FL3 Class B ±144A		2.15			10-13-2028		3,000,000		3,004,791
ContiMortgage Home Equity Trust Series 1996-2 ±(c)(i)		0.00			7-15-2027		1,049,571		5,573
Countrywide Home Loans Mortgage Pass-Through Trust Series 2001-HYB1 Class 2A1 ±		1.93			6-19-2031		334,308		335,925
Countrywide Home Loans Mortgage Pass-Through Trust Series 2004-20 Class 3A1 ±		2.27			9-25-2034		87,475		75,427
Credit Suisse First Boston Mortgage Securities Corporation Series 2006-C1 Class AAB ±		5.49			2-15-2039		1,144,664		1,166,266
Credit Suisse Mortgage Capital Certificates Series 2006-C5 Class A3		5.31			12-15-2039		1,000,000		1,089,015
Drexel Burnham Lambert CMO Trust Series T Class 4		8.45			9-20-2019		118,455		128,609
EquiFirst Mortgage Loan Trust Series 2003-2 Class 3A3 ±		1.28			9-25-2033		633,477		607,431
Fedex Express Corporation 1998 Pass Through Certificates Series 981C Class C		7.02			1-15-2016		1,173,444		1,232,116
Golden National Mortgage Asset-Backed Certificates Series 1998-GN1 Class M2 (s)(i)		8.02			2-25-2027		46,429		46,439
Greenwich Capital Commercial Funding Corporation Series 2007-GG9 Class A4		5.44			3-10-2039		3,000,000		3,307,095
GSMPS Mortgage Loan Trust Series 1998-1 Class A ±144A		8.00			9-19-2027		382,760		390,730
GSMPS Mortgage Loan Trust Series 2006-RP2 Class 1AF1 ±144A		0.56			4-25-2036		1,302,504		1,089,480
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2006-CB16 Class A4		5.55			5-12-2045		973,042		1,055,734
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2007-CB18 Class A4		5.44			6-12-2047		2,810,000		3,095,145
Lehman Brothers UBS Commercial Mortgage Trust Series 2004-C6 Class A6 ±		5.02			8-15-2029		199,162		200,878
Lehman Brothers UBS Commercial Mortgage Trust Series 2005-C1 Class A4		4.74			2-15-2030		2,506,386		2,572,016
Lehman Brothers UBS Commercial Mortgage Trust Series 2005-C5 Class 4		4.95			9-15-2030		2,457,320		2,564,464
Master Mortgages Trust Series 2002-3 Class 4A1 ±		2.50			10-25-2032		9,818		9,877
Merrill Lynch Mortgage Trust Series 2004-KEY 2 Class A4 ±		4.86			8-12-2039		1,142,195		1,153,754
Morgan Stanley Capital I Series 2005-IQ10 Class A4A ±		5.23			9-15-2042		3,021,993		3,167,562
Morgan Stanley Capital I Series 2005-T19 Class A4A		4.89			6-12-2047		2,549,043		2,660,696
Morgan Stanley Capital I Series 2007-IQ Class A4		5.81			12-12-2049		2,705,000		3,035,253
Morgan Stanley Dean Witter Capital I Series 2005-IQ9 Class A5		4.70			7-15-2056		919,389		936,906
NCUA Guaranteed Notes Series 2010-C1 Class APT		2.65			10-29-2020		2,428,717		2,505,221
Nomura Asset Acceptance Corporation Series 2005-AR1 Class 1A1 ±		2.62			2-25-2035		1,134,894		1,144,166
Salomon Brothers Mortgage Securities VI Series 1987-3 Class A ¤		0.00			10-23-2017		55		55
Structured Mortgage Asset Residential Trust Series 1992-5B Class BO ¤(i)		0.00			6-25-2023		8,054		7,592
Terwin Mortgage Trust Series 2004-21HE Class 1A1 ±		1.12			12-25-2034		16,249		15,522
Wilshire Funding Corporation Series 1996-3 Class M2 ±		5.76			8-25-2032		96,936		95,088
Wilshire Funding Corporation Series 1996-3 Class M3 ±		5.76			8-25-2032		98,532		94,684
Wilshire Funding Corporation Series 1998-2 Class M1 ±		2.00			12-28-2037		36,408		33,405
Total Non-Agency Mortgage Backed Securities (Cost $61,024,574)									60,568,475

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

18 Wells Fargo Advantage Short-Term Bond Fund Portfolio of investments—February 28, 2014 (unaudited)

Security name	Dividend yield					Shares		Value
Preferred Stocks: 0.23%
Financials: 0.23%
Banks: 0.23%
Huntington Bancshares ±(a)(i)		3.69	%				80,000	$	1,610,000
Total Preferred Stocks (Cost $1,958,484)									1,610,000
	Interest rate			Maturity date		Principal
Yankee Corporate Bonds and Notes: 13.69%
Consumer Discretionary: 0.72%
Auto Components: 0.29%
Autoliv Incorporated		3.85			4-30-2014	$	2,000,000		2,004,072
Diversified Consumer Services: 0.43%
Anglo American Capital Company 144A		9.38			4-8-2014		3,000,000		3,023,271
Consumer Staples: 0.89%
Food & Staples Retailing: 0.45%
Tesco plc 144A		2.70			1-5-2017		3,000,000		3,105,747
Food Products: 0.44%
Tate & Lyle International Finance plc 144A		5.00			11-15-2014		3,000,000		3,083,070
Energy: 1.47%
Oil, Gas & Consumable Fuels: 1.47%
Korea National Oil Corporation 144A		2.75			1-23-2019		3,000,000		3,038,376
Petrobras International Finance Company		2.88			2-6-2015		3,000,000		3,037,500
Petroleos Mexicanos Company 144A		3.13			1-23-2019		1,000,000		1,022,000
Petroleos Mexicanos Company		4.88			3-15-2015		3,070,000		3,188,963
									10,286,839
Financials: 7.21%
Banks: 4.82%
Bank of Montreal 144A		1.30			10-31-2014		2,500,000		2,517,508
Bank of Nova Scotia 144A		1.65			10-29-2015		3,430,000		3,497,804
Banque Federative du Credit Mutuel SA 144A		1.70			1-20-2017		2,850,000		2,858,550
Canadian Imperial Bank 144A		0.90			9-19-2014		4,100,000		4,115,109
Canadian Imperial Bank 144A		2.75			1-27-2016		3,000,000		3,125,007
Corporacion Andina De Fomento		3.75			1-15-2016		3,385,000		3,536,885
Lloyds TSB Bank plc		4.88			1-21-2016		2,000,000		2,154,652
Nordea Eiendomskreditt 144A		1.88			4-7-2014		6,500,000		6,509,490
Swedbank Hypotek 144A		2.13			8-31-2016		3,000,000		3,094,929
Westpac Banking Corporation 144A		5.30			10-15-2015		2,150,000		2,286,598
									33,696,532
Capital Markets: 0.43%
Nomura Holdings Incorporated		2.00			9-13-2016		3,000,000		3,040,620

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

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage Short-Term Bond Fund 19

Security name	Interest rate			Maturity date		Principal		Value
Diversified Financial Services: 0.52%
WPP Finance		8.00	%		9-15-2014	$	3,485,000	$	3,619,465
Insurance: 0.85%
Endurance Specialty Holdings Limited		6.15			10-15-2015		2,850,000		3,059,880
QBE Insurance Group Limited 144A		2.40			5-1-2018		2,985,000		2,916,205
									5,976,085
Real Estate Management & Development: 0.59%
Deutsche Annington Finance BV 144A		3.20			10-2-2017		4,000,000		4,102,760
Health Care: 0.46%
Pharmaceuticals: 0.46%
Warner Chilcott Company		7.75			9-15-2018		3,000,000		3,210,000
Information Technology: 0.64%
Electronic Equipment, Instruments & Components: 0.22%
Seagate HDD Cayman Company 144A		3.75			11-15-2018		1,500,000		1,548,750
Semiconductors & Semiconductor Equipment: 0.42%
TSMC Global Limited 144A		1.63			4-3-2018		3,035,000		2,928,050
Materials: 0.19%
Construction Materials: 0.19%
Lafarge SA 144A		6.20			7-9-2015		1,255,000		1,327,163
Telecommunication Services: 1.10%
Diversified Telecommunication Services: 0.81%
Orange SA		2.75			2-6-2019		3,000,000		3,040,047
Telefonos de Mexico SA		5.50			1-27-2015		2,510,000		2,597,850
									5,637,897
Wireless Telecommunication Services: 0.29%
Telefonica Moviles Chile SA 144A		2.88			11-9-2015		2,000,000		2,037,972
Utilities: 1.01%
Independent Power & Renewable Electricity Producers: 0.56%
TransAlta Corporation		4.75			1-15-2015		3,820,000		3,946,068
Multi-Utilities: 0.45%
Korea Western Power Company 144A		3.13			5-10-2017		3,000,000		3,123,111
Total Yankee Corporate Bonds and Notes (Cost $94,805,217)									95,697,472
	Yield					Shares
Short-Term Investments: 6.24%
Investment Companies: 6.20%
Wells Fargo Advantage Cash Investment Money Market Fund, Select Class (l)(u)##		0.07					43,314,863		43,314,863

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

20 Wells Fargo Advantage Short-Term Bond Fund Portfolio of investments—February 28, 2014 (unaudited)

Security name	Yield			Maturity date		Principal		Value
U.S. Treasury Securities: 0.04%
U.S. Treasury Bill #(z)		0.06	%		3-20-2014	$	300,000	$	299,996
Total Short-Term Investments (Cost $43,614,854)									43,614,859

Total investments in securities
(Cost $698,089,142) *	100.41	%		702,047,199
Other assets and liabilities, net	(0.41	)		(2,880,874	)
Total net assets	100.00	%	$	699,166,325

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.

ø Variable rate demand notes are subject to a demand feature which reduces the effective maturity. The maturity date shown represents the final maturity date of the security. The interest rate is determined and reset by the issuer daily, weekly, or monthly depending upon the terms of the security. The interest rate shown is the rate in effect at period end.

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

%% Security issued on a when-issued basis.

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

(m) An auction-rate security whose interest rate resets at predetermined short-term intervals through a Dutch auction; rate shown represents the rate in effect at period-end.

(n) Auction to set interest rate on security failed at period end due to insufficient investor interest; failed auction does not itself cause a default.

(i) Illiquid security

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

(l) Investment in an affiliate

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

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

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

(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.

* Cost for federal income tax purposes is $698,094,953 and unrealized appreciation (depreciation) consists of:

Gross unrealized appreciation	$	6,313,525
Gross unrealized depreciation		(2,361,279	)
Net unrealized appreciation	$	3,952,246

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

Statement of assets and liabilities—February 28, 2014 (unaudited) Wells Fargo Advantage Short-Term Bond Fund 21

Assets
Investments
In unaffiliated securities, at value (see cost below)	$	658,732,336
In affiliated securities, at value (see cost below)		43,314,863
Total investments, at value (see cost below)		702,047,199
Principal paydown receivable		28,596
Receivable for Fund shares sold		1,274,508
Receivable for dividend and interest		5,407,192
Receivable for daily variation margin on open futures contracts		38,438
Prepaid expenses and other assets		41,167
Total assets		708,837,100
Liabilities
Dividends payable		152,103
Payable for investments purchased		8,499,919
Payable for Fund shares redeemed		595,615
Payable for daily variation margin on open futures contracts		23,671
Advisory fee payable		156,308
Distribution fees payable		9,520
Due to other related parties		101,691
Accrued expenses and other liabilities		131,948
Total liabilities		9,670,775
Total net assets	$	699,166,325
NET ASSETS CONSIST OF
Paid-in capital	$	694,721,655
Undistributed net investment income		145,691
Accumulated net realized gains on investments		392,074
Net unrealized gains on investments		3,906,905
Total net assets	$	699,166,325
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE1
Net assets – Class A	$	78,398,482
Shares outstanding – Class A		8,888,825
Net asset value per share – Class A		$8.82
Maximum offering price per share – Class A2		$9.00
Net assets – Class C	$	15,934,142
Shares outstanding – Class C		1,808,640
Net asset value per share – Class C		$8.81
Net assets – Institutional Class	$	356,362,569
Shares outstanding – Institutional Class		40,384,583
Net asset value per share – Institutional Class		$8.82
Net assets – Investor Class	$	248,471,132
Shares outstanding – Investor Class		28,184,332
Net asset value per share – Investor Class		$8.82
Investments in unaffiliated securities, at cost	$	654,774,279
Investments in affiliated securities, at cost	$	43,314,863
Total investments, at cost	$	698,089,142

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.

22 Wells Fargo Advantage Short-Term Bond Fund Statement of operations—six months ended February 28, 2014 (unaudited)

Investment income
Interest**	$	5,896,663
Dividends		29,558
Income from affiliated securities		11,666
Securities lending income, net		1,479
Total investment income		5,939,366
Expenses
Advisory fee		1,022,835
Administration fees
Fund level		155,203
Class A		57,440
Class C		12,802
Institutional Class		115,449
Investor Class		232,167
Shareholder servicing fees
Class A		89,750
Class C		20,004
Investor Class		305,231
Distribution fees
Class C		60,012
Custody and accounting fees		21,373
Professional fees		26,898
Registration fees		41,219
Shareholder report expenses		30,603
Trustees’ fees and expenses		6,058
Other fees and expenses		10,931
Total expenses		2,207,975
Less: Fee waivers and/or expense reimbursements		(135,272	)
Net expenses		2,072,703
Net investment income		3,866,663
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		1,123,917
Futures transactions		(427,900	)
Net realized gains on investments		696,017
Net change in unrealized gains (losses) on:
Unaffiliated securities		3,200,826
Futures transactions		36,650
Net change in unrealized gains (losses) on investments		3,237,476
Net realized and unrealized gains (losses) on investments		3,933,493
Net increase in net assets resulting from operations	$	7,800,156
** Net of foreign interest withholding taxes in the amount of		$168

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

Statement of changes in net assets Wells Fargo Advantage Short-Term Bond Fund 23

	Six months ended February 28, 2014 (unaudited)						Year ended August 31, 2013
Operations
Net investment income				$	3,866,663					$	7,271,403
Net realized gains on investments					696,017						3,042,972
Net change in unrealized gains (losses) on investments					3,237,476						(5,844,682	)
Net increase in net assets resulting from operations					7,800,156						4,469,693
Distributions to shareholders from
Net investment income
Class A					(417,700	)					(765,025	)
Class C					(33,546	)					(77,500	)
Institutional Class					(2,119,999	)					(3,571,064	)
Investor Class					(1,408,490	)					(2,857,617	)
Total distributions to shareholders					(3,979,735	)					(7,271,206	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		2,871,354			25,246,036			4,511,065			39,715,808
Class C		366,171			3,217,089			802,264			7,057,514
Institutional Class		15,550,877			136,861,317			21,596,913			190,360,131
Investor Class		3,484,644			30,634,865			6,399,086			56,331,030
					195,959,307						293,464,483
Reinvestment of distributions
Class A		40,702			358,188			75,025			660,884
Class C		3,134			27,537			7,821			68,854
Institutional Class		138,680			1,220,734			216,233			1,904,254
Investor Class		149,164			1,311,994			296,167			2,607,124
					2,918,453						5,241,116
Payment for shares redeemed
Class A		(1,530,887	)		(13,468,784	)		(4,941,438	)		(43,537,034	)
Class C		(466,251	)		(4,095,183	)		(1,007,483	)		(8,862,824	)
Institutional Class		(5,990,350	)		(52,603,330	)		(23,189,763	)		(204,359,095	)
Investor Class		(3,767,626	)		(33,105,884	)		(6,579,452	)		(57,918,194	)
					(103,273,181	)					(314,677,147	)
Net increase (decrease) in net assets resulting from capital share transactions					95,604,579						(15,971,548	)
Total increase (decrease) in net assets					99,425,000						(18,773,061	)
Net assets
Beginning of period					599,741,325						618,514,386
End of period				$	699,166,325					$	599,741,325
Undistributed net investment income				$	145,691					$	258,763

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, 2014 (unaudited)			Year ended August 28												Year ended May 31
CLASS A				2013			2012			2011			20101			2010			20092
Net asset value, beginning of period	$	8.77		$	8.81		$	8.76		$	8.73		$	8.66		$	8.23		$	8.38
Net investment income		0.05			0.10			0.14			0.16			0.05			0.23			0.32
Net realized and unrealized gains (losses) on investments		0.05			(0.04	)		0.05			0.04			0.07			0.46			(0.15	)
Total from investment operations		0.10			0.06			0.19			0.20			0.12			0.69			0.17
Distributions to shareholders from
Net investment income		(0.05	)		(0.10	)		(0.14	)		(0.17	)		(0.05	)		(0.26	)		(0.32	)
Net asset value, end of period	$	8.82		$	8.77		$	8.81		$	8.76		$	8.73		$	8.66		$	8.23
Total return3		1.15	%		0.72	%		2.22	%		2.33	%		1.37	%		8.43	%		2.14	%
Ratios to average net assets (annualized)
Gross expenses		0.83	%		0.87	%		0.90	%		0.89	%		0.89	%		0.93	%		0.95	%
Net expenses		0.79	%		0.80	%		0.80	%		0.80	%		0.80	%		0.80	%		0.80	%
Net investment income		1.13	%		1.17	%		1.63	%		1.84	%		2.05	%		2.64	%		3.86	%
Supplemental data
Portfolio turnover rate		36	%		75	%		44	%		51	%		11	%		45	%		50	%
Net assets, end of period (000s omitted)		$78,398			$65,812			$69,247			$56,555			$47,121			$41,369			$16,456

1. For the three months ended August 31, 2010. The Fund changed its fiscal year end from May 31 to August 31, effective August 31, 2010.

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

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

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

Financial highlights Wells Fargo Advantage Short-Term Bond Fund 25

(For a share outstanding throughout each period)

	Six months ended February 28, 2014 (unaudited)			Year ended August 28												Year ended May 31
CLASS C				2013			2012			2011			20101			2010			2009
Net asset value, beginning of period	$	8.76		$	8.80		$	8.75		$	8.73		$	8.65		$	8.22		$	8.37
Net investment income		0.02			0.04			0.08			0.10			0.03			0.16			0.26
Net realized and unrealized gains (losses) on investments		0.05			(0.04	)		0.05			0.03			0.08			0.46			(0.15	)
Total from investment operations		0.07			0.00			0.13			0.13			0.11			0.62			0.11
Distributions to shareholders from
Net investment income		(0.02	)		(0.04	)		(0.08	)		(0.11	)		(0.03	)		(0.19	)		(0.26	)
Net asset value, end of period	$	8.81		$	8.76		$	8.80		$	8.75		$	8.73		$	8.65		$	8.22
Total return2		0.78	%		(0.03	)%		1.46	%		1.45	%		1.29	%		7.61	%		1.35	%
Ratios to average net assets (annualized)
Gross expenses		1.59	%		1.62	%		1.65	%		1.65	%		1.65	%		1.68	%		1.67	%
Net expenses		1.54	%		1.55	%		1.55	%		1.55	%		1.55	%		1.55	%		1.53	%
Net investment income		0.37	%		0.42	%		0.89	%		1.10	%		1.28	%		1.70	%		2.72	%
Supplemental data
Portfolio turnover rate		36	%		75	%		44	%		51	%		11	%		45	%		50	%
Net assets, end of period (000s omitted)		$15,934			$16,686			$18,501			$19,510			$14,299			$11,050			$1,199

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

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

26 Wells Fargo Advantage Short-Term Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2014 (unaudited)			Year ended February 28												Year ended May 31
INSTITUTIONAL CLASS				2013			2012			2011			20101			2010			2009
Net asset value, beginning of period	$	8.77		$	8.81		$	8.77		$	8.74		$	8.66		$	8.24		$	8.39
Net investment income		0.06			0.13			0.17			0.19			0.06			0.25			0.35
Net realized and unrealized gains (losses) on investments		0.05			(0.04	)		0.04			0.04			0.08			0.45			(0.15	)
Total from investment operations		0.11			0.09			0.21			0.23			0.14			0.70			0.20
Distributions to shareholders from
Net investment income		(0.06	)		(0.13	)		(0.17	)		(0.20	)		(0.06	)		(0.28	)		(0.35	)
Net asset value, end of period	$	8.82		$	8.77		$	8.81		$	8.77		$	8.74		$	8.66		$	8.24
Total return2		1.31	%		1.04	%		2.43	%		2.66	%		1.57	%		8.65	%		2.47	%
Ratios to average net assets (annualized)
Gross expenses		0.50	%		0.53	%		0.57	%		0.56	%		0.56	%		0.58	%		0.59	%
Net expenses		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%
Net investment income		1.44	%		1.47	%		1.95	%		2.17	%		2.38	%		2.84	%		4.22	%
Supplemental data
Portfolio turnover rate		36	%		75	%		44	%		51	%		11	%		45	%		50	%
Net assets, end of period (000s omitted)		$356,363			$269,123			$282,512			$327,124			$292,080			$285,559			$77,900

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 Short-Term Bond Fund 27

(For a share outstanding throughout each period)

	Six months ended February 28, 2014 (unaudited)			Year ended August 31												Year ended May 31
INVESTOR CLASS				2013			2012			2011			20101			2010			2009
Net asset value, beginning of period	$	8.76		$	8.80		$	8.76		$	8.73		$	8.66		$	8.23		$	8.38
Net investment income		0.05			0.10			0.14			0.16			0.05			0.23			0.32
Net realized and unrealized gains (losses) on investments		0.06			(0.04	)		0.04			0.04			0.07			0.45			(0.15	)
Total from investment operations		0.11			0.06			0.18			0.20			0.12			0.68			0.17
Distributions to shareholders from
Net investment income		(0.05	)		(0.10	)		(0.14	)		(0.17	)		(0.05	)		(0.25	)		(0.32	)
Net asset value, end of period	$	8.82		$	8.76		$	8.80		$	8.76		$	8.73		$	8.66		$	8.23
Total return2		1.26	%		0.70	%		2.08	%		2.30	%		1.36	%		8.38	%		2.09	%
Ratios to average net assets (annualized)
Gross expenses		0.86	%		0.90	%		0.93	%		0.92	%		0.94	%		0.99	%		0.99	%
Net expenses		0.80	%		0.82	%		0.83	%		0.83	%		0.84	%		0.85	%		0.85	%
Net investment income		1.11	%		1.15	%		1.61	%		1.82	%		2.02	%		2.73	%		3.87	%
Supplemental data
Portfolio turnover rate		36	%		75	%		44	%		51	%		11	%		45	%		50	%
Net assets, end of period (000s omitted)		$248,471			$248,120			$248,254			$248,514			$266,746			$267,625			$250,572

1. For the three months ended August 31, 2010. The Fund changed its fiscal year end from May 31 to August 31, effective August 31, 2010.

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

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

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

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). These financial statements report on the 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 (generally 4 p.m. Eastern Time).

Fixed income securities acquired with maturities exceeding 60 days are valued based on evaluated bid prices provided by an independent pricing service which may utilize both transaction data and market information such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data. If prices are not available from the independent pricing service or prices received are deemed not representative of market value, prices will be obtained from an independent broker-dealer or otherwise determined based on the Fund’s Valuation Procedures.

Short-term securities, with maturities of 60 days or less at time of purchase, 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 and futures that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price. If no sale occurs on the primary exchange or market for the security that day, 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 vehicles 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 in good faith by the Board of Trustees of the Fund. 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 values, to assess the continued appropriateness of the fair valuation methodologies used. These securities are fair valued on a day-to-day basis, taking into consideration changes to appropriate market information and any significant changes to the inputs considered in the valuation process until there is a readily available price provided on an exchange or by an independent pricing service. Valuations received from an independent pricing service or independent broker-dealer quotes are periodically validated by comparisons to most recent trades and valuations provided by other independent pricing services in addition to the review of prices by the adviser and/or subadviser. Unobservable inputs used in determining fair valuations are identified based on the type of security, taking into consideration factors utilized by market participants in valuing the investment, knowledge about the issuer and the current market environment.

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

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

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 “Securities Lending Fund”). The Securities Lending 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 Securities Lending Fund increase. All of the fees received by Funds Management are paid to WellsCap for its services as subadviser. The Securities Lending 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. Securities Lending Fund investments are fair valued based upon the amortized cost valuation technique. Income earned from investment in the Securities Lending 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.

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.

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

Distributions to shareholders

Distributions to shareholders from net investment income are accrued daily and paid monthly. 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 Short-Term Bond 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.

As of August 31, 2013, the Fund had capital loss carryforwards which consisted of $385,934 in long-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. 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, 2014, the inputs used in valuing investments in securities were as follows:

Investments in securities	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Agency securities	$	0	$	112,129,132	$	0	$	112,129,132
Asset-backed securities		0		57,873,882		0		57,873,882
Corporate bonds and notes		0		286,691,578		0		286,691,578
Municipal obligations		0		39,608,301		4,253,500		43,861,801
Non-agency mortgage backed securities		0		60,568,475		0		60,568,475
Equity securities
Preferred stocks		0		0		1,610,000		1,610,000
Yankee corporate bonds and notes		0		95,697,472		0		95,697,472
Short-term investments
Investment companies		43,314,863		0		0		43,314,863
U.S. Treasury securities		299,996		0		0		299,996
	$	43,614,859	$	652,568,840	$	5,863,500	$	702,047,199

Notes to financial statements (unaudited) Wells Fargo Advantage Short-Term Bond Fund 31

As of February 28, 2014, the inputs used in valuing the Fund’s other financial instruments were as follows:

Other financial instruments	Quoted prices (Level 1)			Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Futures contracts	$	(51,152	)*	$	0	$	0	$	(51,152	)

* Amount represents the net unrealized losses.

Transfers in and transfers out are recognized at the end of the reporting period. For the six months ended February 28, 2014, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

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 0.30% and declining to 0.225% as the average daily net assets of the Fund increase. Prior to January 1, 2014, Funds Management was 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 increased. For the six months ended February 28, 2014, the advisory fee was equivalent to an annual rate of 0.33% 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 and an indirect, wholly owned subsidiary of Wells Fargo, 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.

Administration and transfer agent fees

The Trust has entered into an administration agreement with Funds Management. Under this agreement, for providing administrative services, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers, Funds Management is entitled to receive from the Fund an annual fund level administration fee starting at 0.05% and declining to 0.03% as the average daily net assets of the Fund increase and a class level administration fee which is calculated based on the average daily net assets of each class as follows:

	Class level administration fee
Class A, Class C		0.16	%
Institutional Class		0.08
Investor Class		0.19

Funds Management has contractually waived and/or reimbursed advisory and administration fees to the extent necessary to maintain certain net operating expense ratios for the Fund. Waiver of fees and/or reimbursement of expenses by Funds Management were made first from fund level expenses on a proportionate basis and then from class specific expenses. Funds Management has committed through December 31, 2014 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.77% for Class A shares, 1.52% for Class C shares, 0.48% for Institutional Class shares, and 0.78% for Investor Class shares. Prior to January 1, 2014, the Fund’s expenses were capped at 0.80% for Class A shares, 1.55% for Class B shares, 1.55% for Class C 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, 2014, Wells Fargo Funds Distributor, LLC received $497 from the sale of Class A shares and $107 and $100 in contingent deferred sales charges from redemptions of Class A and Class C shares, respectively.

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

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, 2014 were as follows:

Purchases at cost		Sales proceeds
U.S. government	Non-U.S. government	U.S. government	Non-U.S. government
$50,572,710	$283,307,917	$10,577,284	$208,244,402

6. DERIVATIVE TRANSACTIONS

During the six months ended February 28, 2014, the Fund entered into futures contracts for to speculate on interest rates and to help manage the duration of the portfolio.

At February 28, 2014, the Fund had long and short futures contracts outstanding as follows:

Expiration date	Counterparty	Contracts	Type	Contract value at February 28, 2014		Unrealized gains (losses)
6-30-2014	JPMorgan	842 Long	2-Year U.S. Treasury Notes	$	185,134,750	$	22,479
6-30-2014	JPMorgan	328 Short	5-Year U.S. Treasury Notes		39,313,875		(73,631	)

The Fund had an average notional amount of $152,059,955 and $44,534,800 in long and short futures contracts, respectively, during the six months ended February 28, 2014.

On February 28, 2014, the cumulative unrealized loss on futures contracts in the amount of $51,152 are reflected in net unrealized gains on investments on the Statement of Assets and Liabilities. The receivable and payable for daily variation margin on open futures contracts reflected in the Statement of Assets and Liabilities only represents the current day’s variation margin. The realized losses and change in unrealized gains (losses) on futures contracts are reflected in the Statement of Operations.

For certain types of derivative transactions, the Fund has entered into International Swaps and Derivatives Association, Inc. master agreements (“ISDA Master Agreements”) or similar agreements with approved counterparties. The ISDA Master Agreements or similar agreements may have requirements to deliver/deposit securities or cash to/with an exchange or broker-dealer as collateral and allows the Fund to offset, with each counterparty, certain derivative financial instrument’s assets and/or liabilities with collateral held or pledged. Collateral requirements differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives while collateral terms are contract specific for over-the-counter traded. Cash collateral that has been pledged to cover obligations of the Fund under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Portfolio of Investments. With respect to balance sheet offsetting, absent an event of default by the counterparty or a termination of the agreement, the reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities are not offset across transactions between the Fund and the applicable counterparty. A reconciliation of the gross amounts on the Statement of Assets and Liabilities to the net amounts by derivative type, including any collateral exposure, is as follows:

Derivative type	Counterparty	Gross amounts of assets in the Statement of Assets and Liabilities		Amounts subject to netting agreements			Collateral received		Net amount
Futures – variation margin	JPMorgan	$	38,438	$	(23,671	)	$	0	$	14,767

Derivative type	Counterparty	Gross amounts of liabilities in the Statement of Assets and Liabilities		Amounts subject to netting agreements			Collateral pledged		Net amount
Futures – variation margin	JPMorgan	$	23,671	$	(23,671	)	$	0	$	0

Notes to financial statements (unaudited) Wells Fargo Advantage Short-Term Bond Fund 33

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 year ended August 31, 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, 2014, the Fund paid $373 in commitment fees.

For the six months ended February 28, 2014, 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.

34 Wells Fargo Advantage Short-Term Bond Fund Other information (unaudited)

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-800-222-8222, visiting our 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 Bond Fund 35

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers listed in the table below acts in identical capacities for each fund in the Wells Fargo Advantage family of funds, which consists of 132 mutual 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 Harbor 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 50 portfolios as of 12/16/2013); 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 Short-Term Bond Fund Other information (unaudited)

Name and year of birth	Position held and length of service*	Principal occupations during past five years	Other directorships during past five years
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 73 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 59 funds and Assistant Treasurer of 73 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 Bond 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 —  Columbian Peso

CLP —  Chilean peso

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 —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

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

NGN —  Nigerian naira

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

RON —  Romanian lei

RUB —  Russian ruble

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

THB —  Thai baht

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

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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

© 2014 Wells Fargo Funds Management, LLC. All rights reserved.

223535 04-14 SA221/SAR221 02-14

Wells Fargo Advantage

Short-Term High Yield Bond Fund

Semi-Annual Report

February 28, 2014

Reduce clutter. Save trees.

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Contents

Letter to shareholders	2
Performance highlights	6
Fund expenses	8
Portfolio of investments	9
Financial statements
Statement of assets and liabilities	17
Statement of operations	18
Statement of changes in net assets	19
Financial highlights	20
Notes to financial statements	25
Other information	29
List of abbreviations	32

The views expressed and any forward-looking statements are as of February 28, 2014, 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 and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

2 Wells Fargo Advantage Short-Term High Yield Bond Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Fixed-income markets shifted during the period, driven by vacillations between U.S. Treasury yield increases and subsequent declines.

Reassurances from the Fed that a highly accommodative monetary policy would continue throughout 2014 inspired price rallies across both the investment-grade and high-yield bond markets.

Dear Valued Shareholder:

We are pleased to offer you this semi-annual report for the Wells Fargo Advantage Short-Term High Yield Bond Fund for the six-month period that ended February 28, 2014. Fixed-income markets shifted during the period, driven by vacillations between U.S. Treasury yield increases and subsequent declines. However, on the whole, investment-grade (measured by the Barclays U.S. Aggregate Bond Index¹) and high-yield markets (measured by the Barclays U.S. High Yield Bond Index²) generated positive returns during the period, notably benefiting from the strong price improvement and declining U.S. Treasury yields that occurred in September and October of 2013 as well as the opening months of 2014. Although the returns of the U.S. high-yield market have often been positively correlated with U.S. equity returns (measured by the S&P 500 Index³) over the long-run, over the period, high-yield (measured by the Barclays U.S. High Yield Bond Index) generally performed well even when equities did not. The lower-rated corporate bond credit tiers outperformed the respectively higher-rated investment-grade credit tiers during the period.

A decline in bond prices was halted by the Fed’s postponement of tapering its bond-buying program.

Before the six-month period began, equity markets rallied, most notably in May and June of 2013. This led to a sharp increase in U.S. Treasury yields and declining valuations for much of the fixed-income markets (measured by the Barclays U.S. Aggregate Bond Index). However, in July and August 2013, that equity exuberance quieted a bit, and fixed-income markets stabilized. Returns across the fixed-income markets were largely negative in investment-grade and high-yield markets but modest in comparison with the declines in May and June of 2013.

But, by September and October of 2013, investment-grade and high-yield bond markets began generating positive returns yet again, as the Federal Reserve (Fed) backtracked on its intentions to taper its quantitative easing program, postponing it until 2014, at the earliest. This created a temporary rally in bonds that lasted until around November 20, 2013, when notes were released from the Fed’s October 2013 meeting that tapering of the bond-buying programs would not be postponed beyond January 2014. In response, long-term U.S. Treasury yields and mortgage rates ratcheted higher on expectations for an unwinding of monetary accommodation in the upcoming months. This led to declines in pricing across much of the core fixed-income markets (measured by the Barclays U.S. Aggregate Bond Index). U.S. high-yield markets were better able to absorb the shift in U.S. Treasury yields and continued to provide positive returns along with rallies in the equity markets.

Favorable conditions for fixed-income markets were restored in January and February 2014.

Seemingly much to the surprise of many everyday investors and seasoned investment professionals alike, fixed-income markets (measured by the Barclays U.S. Aggregate Bond Index) largely outperformed U.S. equity markets (measured by the S&P 500 Index) during the opening months of 2014. A pullback in equity exuberance in January and reassurances from the Fed that a highly accommodative monetary policy would continue throughout 2014 inspired price rallies across both the investment-grade and high-yield bond markets. U.S. Treasury yields declined in January 2014 and corporate bonds and mortgage-backed securities performed notably well. U.S. high-yield securities generated positive returns in January 2014 but lagged the rally across the investment-grade bond markets. This theme reversed in February 2014, as high-yield sectors rallied and investment-grade sectors performed well but not to the extent of the lowest-rated credit tiers.

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

One positive takeaway for bond investors that helped fuel the fixed-income (measured by the Barclays U.S. Aggregate Bond Index) rallies was former Fed Chairman Bernanke’s guidance at the end of 2013. He indicated that the tapering of the Fed’s bond-buying program would proceed at a slow pace and that a reduction in quantitative easing should not be equivocated with a tightening of monetary policy. The distinction was important—although the bond-buying program was declining in volume, it was, nonetheless, still continuing. Additionally, the federal funds target rate would remain unchanged for the foreseeable future, with the implications that it would not increase until the bond-buying program was fully disbanded. These were important statements for fixed-income investors that helped bolster U.S. fixed-income valuations in the opening months of 2014.

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

Periods of investment uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Advantage Funds offers more than 100 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. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

Thank you for choosing to invest with Wells Fargo 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

1. The Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and CMBS. You cannot invest directly in an index.

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

3. The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock’s weight in the index proportionate to its market value. You cannot invest directly in an index.

4 Wells Fargo Advantage Short-Term High Yield Bond Fund Letter to shareholders (unaudited)

Notice to shareholders

The Fund and Wells Fargo Funds Management, LLC (“Funds Management”) have received an exemptive order from the SEC that permits Funds Management, subject to the approval of the Board of Trustees of the Fund, to select or replace certain subadvisers to manage all or a portion of the Fund’s assets and enter into, amend or terminate a sub-advisory agreement with certain subadvisers without obtaining shareholder approval (“Multi-manager Structure”). The Multi-manager Structure applies to subadvisers that are not affiliated with Funds Management or the Fund, except to the extent that affiliation arises solely because such subadvisers provide sub-advisory services to the Fund (“Non-affiliated Subadvisers”), as well as subadvisers that are indirect or direct wholly-owned subsidiaries of Funds Management or of another company that, indirectly or directly, wholly owns Funds Management (“Wholly-owned Subadvisers”).

Pursuant to the SEC order, Funds Management, with the approval of the Board of Trustees, has the discretion to terminate any subadvisers and allocate and reallocate the Fund’s assets among any other Non-affiliated Subadvisers or Wholly-owned Subadvisers. Funds Management, subject to oversight and supervision by the Board of Trustees, has responsibility to continue to oversee any subadvisers to the Fund and to recommend, for approval by the Board of Trustees, the hiring, termination and replacement of subadvisers for the Fund. In the event that a new subadviser is hired pursuant to the Multi-manager Structure, the Fund is required to provide notice to shareholders within 90 days.

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

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6 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

Thomas M. Price, CFA

Kevin J. Maas, CFA

Michael J. Schueller, CFA

Average annual total returns¹ (%) as of February 28, 2014

		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		0.40		5.64		4.18		3.51		6.29		4.50		0.94		0.83
Class C (WFHYX)	3-31-2008		1.74		5.49		3.74		2.74		5.49		3.74		1.69		1.58
Administrator Class (WDHYX)	7-30-2010		–		–		–		3.68		6.40		4.55		0.88		0.67
Institutional Class (STYIX)	11-30-2012		–		–		–		3.83		6.40		4.55		0.61		0.52
Investor Class (STHBX)	6-30-1997		–		–		–		3.48		6.25		4.49		0.97		0.86
BofA Merrill Lynch High Yield U.S. Corporates, Cash Pay, BB Rated, 1-5 Year Index4	–		–		–		–		6.83		13.35		7.23		–		–
Short-Term High Yield Bond Index III5	–		–		–		–		7.18		14.16		7.54		–		–

Figures quoted represent past performance, which is no guarantee of future results, and do not reflect 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, which 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. 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. 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 7.

Performance highlights (unaudited) Wells Fargo Advantage Short-Term High Yield Bond Fund 7

Ten largest long-term holdings6 (%) as of February 28, 2014
CIT Group Incorporated, 4.25%, 8-15-2017	1.13
Sally Beauty Holdings Incorporated, 6.88%, 11-15-2019	1.13
FMG Resources Limited, 6.00%, 4-1-2017	1.05
United Rentals Incorporated, 5.75%, 7-15-2018	1.04
Kodiak Oil & Gas Corporation, 8.13%, 12-1-2019	1.01
Regency Energy Partners Company, 6.88%, 12-1-2018	1.01
Energy XXI Gulf Coast Incorporated, 9.25%, 12-15-2017	0.98
SESI LLC, 6.38%, 5-1-2019	0.96
General Motors Financial Company Incorporated, 4.75%, 8-15-2017	0.93
Sprint Nextel Corporation, 6.00%, 12-1-2016	0.90

Credit quality⁷ as of February 28, 2014

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

2. Reflects the expense ratios as stated in the most recent prospectuses, which include the impact of 0.02% in acquired fund fees and expenses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report, which do not include acquired fund fees and expenses.

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 0.81% 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 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.

5. 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 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 credit quality of portfolio holdings reflected in the chart is based on ratings from Standard & Poor’s, Moody’s Investors Service, and/or Fitch Ratings Ltd. Credit quality ratings apply to the underlying holdings of the Fund and not to the Fund itself. The percentages of the Fund’s portfolio with the ratings depicted in the chart are calculated based on the total market value of fixed income securities held by the Fund. 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 rating agencies, that rating was utilized. Standard & Poor’s rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Ratings from A to CCC may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the rating categories. Standard & Poor’s rates the creditworthiness of short-term notes from SP-1 (highest) to SP-3 (lowest). Moody’s rates the creditworthiness of bonds, ranging from Aaa (highest) to C (lowest). Ratings Aa to B may be modified by the addition of a number 1 (highest) to 3 (lowest) to show relative standing within the ratings categories. Moody’s rates the creditworthiness of short-term U.S. tax-exempt municipal securities from MIG 1/VMIG 1 (highest) to SG (lowest). Fitch rates the creditworthiness of bonds, ranging from AAA (highest) to D (lowest). Credit quality, and credit quality ratings are subject to change.

8 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, 2013 to February 28, 2014.

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 9-1-2013		Ending account value 2-28-2014		Expenses paid during the period1		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,026.17	$	4.07		0.81	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.78	$	4.06		0.81	%
Class C
Actual	$	1,000.00	$	1,022.37	$	7.82		1.56	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.06	$	7.80		1.56	%
Administrator Class
Actual	$	1,000.00	$	1,028.24	$	3.27		0.65	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.57	$	3.26		0.65	%
Institutional Class
Actual	$	1,000.00	$	1,029.02	$	2.52		0.50	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.32	$	2.51		0.50	%
Investor Class
Actual	$	1,000.00	$	1,026.02	$	4.22		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, 2014 (unaudited) Wells Fargo Advantage Short-Term High Yield Bond Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Corporate Bonds and Notes: 63.43%
Consumer Discretionary: 17.01
Auto Components: 1.89%
Cooper-Standard Holdings Incorporated		8.50	%		5-1-2018	$	6,280,000	$	6,609,700
Lear Corporation		7.88			3-15-2018		9,273,000		9,655,511
Tenneco Automotive Incorporated		7.75			8-15-2018		7,570,000		8,033,663
TRW Automotive Incorporated 144A		7.25			3-15-2017		7,400,000		8,454,500
									32,753,374
Automobiles: 0.75
Chrysler Group LLC/CG Co-Issuer Incorporated 144A		8.00			6-15-2019		3,200,000		3,520,000
Chrysler Group LLC/CG Co-Issuer Incorporated		8.00			6-15-2019		8,630,000		9,493,000
									13,013,000
Diversified Consumer Services: 2.87%
ADT Corporation		2.25			7-15-2017		13,255,000		13,163,090
Avis Budget Car Rental LLC ±144A		2.99			12-1-2017		7,000,000		7,070,000
Avis Budget Car Rental LLC «		4.88			11-15-2017		8,120,000		8,566,600
Hertz Corporation		7.50			10-15-2018		5,870,000		6,273,563
Service Corporation International		7.00			6-15-2017		13,006,000		14,615,493
									49,688,746
Hotels, Restaurants & Leisure: 0.92%
Burger King Corporation		9.88			10-15-2018		3,310,000		3,616,175
MGM Resorts International		6.63			7-15-2015		6,000,000		6,397,200
MGM Resorts International		7.50			6-1-2016		5,265,000		5,870,475
									15,883,850
Household Durables: 3.30%
Beazer Homes USA Company		6.63			4-15-2018		12,395,000		13,386,600
DR Horton Incorporated		3.63			2-15-2018		2,000,000		2,052,500
DR Horton Incorporated		4.75			5-15-2017		6,050,000		6,473,500
Jarden Corporation		7.50			5-1-2017		12,300,000		14,145,000
Lennar Corporation		4.13			12-1-2018		7,000,000		7,122,500
Lennar Corporation		4.75			12-15-2017		300,000		318,750
Mohawk Industries Incorporated		6.13			1-15-2016		7,035,000		7,632,975
Pulte Group Incorporated		7.63			10-15-2017		5,155,000		5,966,913
									57,098,738
Media: 4.03%
Allbritton Communications Company		8.00			5-15-2018		12,955,000		13,619,592
CSC Holdings LLC		7.63			7-15-2018		8,050,000		9,358,125
DISH DBS Corporation		4.63			7-15-2017		12,800,000		13,584,000
Gannett Companies Incorporated		7.13			9-1-2018		11,500,000		12,190,000
Gannett Companies Incorporated		8.75			11-15-2014		5,000,000		5,250,000
Lamar Media Corporation		7.88			4-15-2018		300,000		314,250
Mediacom LLC/Mediacom Capital Corporation		9.13			8-15-2019		9,430,000		10,137,250
Regal Cinemas Corporation		8.63			7-15-2019		5,000,000		5,355,000
									69,808,217

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, 2014 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Multiline Retail: 0.15%
Macy’s Retail Holdings Incorporated		5.75	%		7-15-2014	$	2,500,000	$	2,545,968
Specialty Retail: 2.61%
AutoNation Incorporated		6.75			4-15-2018		10,382,000		11,965,255
Limited Brands Incorporated		6.90			7-15-2017		12,025,000		13,768,625
Sally Beauty Holdings Incorporated		6.88			11-15-2019		17,825,000		19,562,938
									45,296,818
Textiles, Apparel & Luxury Goods: 0.49%
Jones Group Incorporated		5.13			11-15-2014		8,385,000		8,573,663
Consumer Staples: 1.69%
Beverages: 0.86%
Constellation Brands Incorporated		7.25			9-1-2016		13,190,000		14,937,675
Food Products: 0.83%
Dean Foods Company		7.00			6-1-2016		5,300,000		5,843,250
TreeHouse Foods Incorporated		7.75			3-1-2018		8,205,000		8,557,815
									14,401,065
Energy: 12.31%
Energy Equipment & Services: 2.65%
Exterran Holdings Incorporated		7.25			12-1-2018		5,910,000		6,249,825
Hercules Offshore Incorporated 144A		7.13			4-1-2017		11,455,000		12,099,344
SESI LLC		6.38			5-1-2019		15,550,000		16,599,625
Targa Resources Partners LP		7.88			10-15-2018		10,255,000		10,998,488
									45,947,282
Oil, Gas & Consumable Fuels: 9.66%
Berry Petroleum Companies Class A		10.25			6-1-2014		5,329,000		5,435,580
Carrizo Oil & Gas Incorporated		8.63			10-15-2018		12,185,000		13,129,338
Chesapeake Energy Corporation		3.25			3-15-2016		965,000		972,238
Chesapeake Energy Corporation		9.50			2-15-2015		7,700,000		8,287,125
CITGO Petroleum Corporation 144A		11.50			7-1-2017		9,500,000		10,260,000
Consol Energy Incorporated		8.00			4-1-2017		9,300,000		9,706,875
El Paso LLC		7.00			6-15-2017		5,300,000		5,992,662
Energy XXI Gulf Coast Incorporated		9.25			12-15-2017		15,595,000		17,037,538
Kinder Morgan Finance Company LLC 144A		6.00			1-15-2018		9,000,000		9,922,500
Kodiak Oil & Gas Corporation		8.13			12-1-2019		15,785,000		17,560,813
Oasis Petroleum Incorporated		7.25			2-1-2019		1,860,000		1,999,491
Peabody Energy Corporation		7.38			11-1-2016		7,100,000		8,005,250
Plains Exploration & Production Company		6.13			6-15-2019		13,755,000		15,147,694
PVR Partners LP		8.25			4-15-2018		7,140,000		7,479,150
Regency Energy Partners Company		6.88			12-1-2018		16,311,000		17,411,993
Tesoro Corporation		4.25			10-1-2017		4,000,000		4,210,000
Tesoro Corporation		9.75			6-1-2019		1,300,000		1,387,750
WPX Energy Incorporated		5.25			1-15-2017		12,450,000		13,368,188
									167,314,185

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

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage Short-Term High Yield Bond Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Financials: 8.09%
Banks: 1.88%
AmSouth Bank		5.20	%		4-1-2015	$	5,370,000	$	5,593,671
CIT Group Incorporated		4.25			8-15-2017		18,700,000		19,611,625
CIT Group Incorporated		5.00			5-15-2017		135,000		144,788
Zions Bancorporation		7.75			9-23-2014		7,000,000		7,256,347
									32,606,431
Consumer Finance: 6.21%
Ally Financial Incorporated ±		2.92			7-18-2016		4,560,000		4,654,757
Ally Financial Incorporated		5.50			2-15-2017		9,500,000		10,378,750
Discover Financial Services Company		6.45			6-12-2017		8,035,000		9,107,383
Ford Motor Credit Company LLC		3.88			1-15-2015		2,000,000		2,055,308
Ford Motor Credit Company LLC		8.00			12-15-2016		8,385,000		9,859,293
Ford Motor Credit Company LLC		8.70			10-1-2014		3,500,000		3,661,312
General Motors Financial Company Incorporated		3.25			5-15-2018		880,000		900,900
General Motors Financial Company Incorporated		4.75			8-15-2017		14,970,000		16,190,055
Icahn Enterprises LP/Icahn Enterprises Finance Corporation 144A		3.50			3-15-2017		8,595,000		8,702,438
Nielsen Finance LLC		7.75			10-15-2018		13,880,000		14,868,950
SLM Corporation		3.88			9-10-2015		8,000,000		8,273,416
SLM Corporation Series A		5.00			4-15-2015		7,300,000		7,592,000
Toll Brothers Finance Corporation		4.00			12-31-2018		1,905,000		1,952,625
Toll Brothers Finance Corporation		8.91			10-15-2017		7,750,000		9,377,500
									107,574,687
Health Care: 3.39%
Health Care Equipment & Supplies: 0.44%
Fresenius US Finance II Incorporated 144A		9.00			7-15-2015		7,000,000		7,682,500
Health Care Providers & Services: 2.95%
DaVita HealthCare Partners Incorporated		6.38			11-1-2018		7,400,000		7,779,250
Fresenius Medical Care Holdings Incorporated		6.88			7-15-2017		9,120,000		10,351,200
Hanger Incorporated		7.13			11-15-2018		13,547,000		14,427,555
HealthSouth Corporation		7.25			10-1-2018		7,470,000		7,936,875
Universal Health Services Incorporated		7.00			10-1-2018		9,650,000		10,229,000
Universal Health Services Incorporated		7.13			6-30-2016		300,000		337,500
									51,061,380
Industrials: 6.79%
Building Products: 0.63%
Masco Corporation		5.85			3-15-2017		508,000		560,070
Masco Corporation		6.13			10-3-2016		9,409,000		10,443,990
									11,004,060
Commercial Services & Supplies: 3.50%
Case Corporation		7.25			1-15-2016		5,800,000		6,380,000
Deluxe Corporation		5.13			10-1-2014		5,000,000		5,090,625
Deluxe Corporation		7.00			3-15-2019		6,770,000		7,243,900
International Lease Finance Corporation		4.88			4-1-2015		5,300,000		5,498,750
International Lease Finance Corporation		5.65			6-1-2014		5,000,000		5,058,100
RR Donnelley & Sons Company		5.50			5-15-2015		6,550,000		6,861,125
Swift Services Holdings Incorporated		10.00			11-15-2018		11,775,000		12,967,219
West Corporation		7.88			1-15-2019		2,420,000		2,601,500
West Corporation		8.63			10-1-2018		8,230,000		8,867,825
									60,569,044

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, 2014 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Electrical Equipment: 0.29%
General Cable Corporation ±		2.62	%		4-1-2015	$	5,000,000	$	4,987,500
Machinery: 1.33%
Case New Holland Incorporated		7.88			12-1-2017		8,000,000		9,370,000
CNH Capital America LLC Company		3.88			11-1-2015		2,000,000		2,057,500
Oshkosh Corporation		8.25			3-1-2017		2,985,000		3,111,863
SPX Corporation		6.88			9-1-2017		7,545,000		8,582,438
									23,121,801
Trading Companies & Distributors: 1.04%
United Rentals Incorporated		5.75			7-15-2018		16,730,000		17,942,925
Information Technology: 2.95%
Communications Equipment: 0.50%
Crown Castle International Corporation		7.13			11-1-2019		8,070,000		8,614,725
Electronic Equipment, Instruments & Components: 0.56%
CDW LLC		8.00			12-15-2018		275,000		297,688
Jabil Circuit Incorporated		7.75			7-15-2016		8,300,000		9,451,625
									9,749,313
Internet Software & Services: 0.46%
IAC/InterActiveCorp 144A		4.88			11-30-2018		7,640,000		7,964,700
IT Services: 1.43%
Cardtronics Incorporated		8.25			9-1-2018		8,535,000		9,132,450
iGATE Corporation		9.00			5-1-2016		14,755,000		15,584,969
									24,717,419
Materials: 4.65%
Chemicals: 0.39%
Celanese US Holdings LLC		6.63			10-15-2018		6,299,000		6,676,940
Construction Materials: 0.52%
Vulcan Materials Company		6.40			11-30-2017		3,250,000		3,680,625
Vulcan Materials Company		6.50			12-1-2016		4,735,000		5,350,550
									9,031,175
Containers & Packaging: 2.69%
Graphic Packaging International Company		7.88			10-1-2018		3,482,000		3,730,093
Greif Incorporated		6.75			2-1-2017		10,590,000		11,754,900
Owens Brockway Glass Container Incorporated		7.38			5-15-2016		6,560,000		7,306,200
Owens-Illinois Incorporated		7.80			5-15-2018		7,975,000		9,370,625
Reynolds Group Holdings Limited		7.13			4-15-2019		195,000		207,431
Reynolds Group Holdings Limited		7.88			8-15-2019		2,500,000		2,762,500
Sealed Air Corporation 144A		8.13			9-15-2019		10,285,000		11,532,056
									46,663,805

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

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage Short-Term High Yield Bond Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Metals & Mining: 1.05%
Sunchoke Energy Incorporated		7.63	%		8-1-2019	$	9,850,000	$	10,588,750
US Steel Corporation		7.00			2-1-2018		6,903,000		7,627,815
									18,216,565
Telecommunication Services: 4.52%
Diversified Telecommunication Services: 2.60%
Centurylink Incorporated		6.00			4-1-2017		10,390,000		11,480,950
Frontier Communications Corporation		8.25			4-15-2017		7,630,000		8,869,875
Windstream Corporation		7.88			11-1-2017		8,050,000		9,217,250
Windstream Corporation		9.88			12-1-2018		3,630,000		4,020,225
Zayo Group LLC/Zayo Capital Incorporated		8.13			1-1-2020		10,290,000		11,344,725
									44,933,025
Wireless Telecommunication Services: 1.92%
CCO Holdings LLC		7.00			1-15-2019		4,625,000		4,896,719
CCO Holdings LLC		7.25			10-30-2017		8,500,000		9,031,250
MetroPCS Wireless Incorporated		7.88			9-1-2018		3,545,000		3,775,425
Sprint Nextel Corporation		6.00			12-1-2016		14,260,000		15,596,875
									33,300,269
Utilities: 2.03%
Gas Utilities: 0.56%
AmeriGas Partners LP		6.25			8-20-2019		9,085,000		9,766,375
Independent Power & Renewable Electricity Producers: 1.47%
AES Corporation		8.00			10-15-2017		13,110,000		15,535,350
NRG Energy Incorporated		7.63			5-15-2019		9,470,000		9,919,825
									25,455,175
Total Corporate Bonds and Notes (Cost $1,085,922,060)									1,098,902,395
Municipal Obligations: 0.49%
California: 0.49%
California Judgment Trust (Miscellaneous Revenue) ±		1.59			6-1-2015		3,175,000		3,174,905
Oakland CA Redevelopment Agency Refunding Bond Subordinated Housing Series 2006A (Tax Revenue, Ambac Insured)		5.38			9-1-2016		5,000,000		5,201,450
Total Municipal Obligations (Cost $8,159,536)									8,376,355
Non-Agency Mortgage Backed Securities: 0.00%
Salomon Brothers Mortgage Securities VII Series 1994-5 Class B2 ±(i)		2.80			4-25-2024		46,822		39,249
Total Non-Agency Mortgage Backed Securities (Cost $47,954)									39,249
Term Loans ±: 27.15%
Activision Blizzard Incorporated		3.25			10-12-2020		11,441,250		11,458,641
Allison Transmission Incorporated		3.16			8-7-2017		2,085,748		2,092,693
Allison Transmission Incorporated		3.50			8-23-2019		6,260,765		6,258,824
ARAMARK Corporation <		0.00			9-21-2019		7,775,000		7,742,578

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, 2014 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Term Loans ± (continued)
ARAMARK Corporation		3.60	%		7-26-2016	$	253,281	$	253,342
Berry Plastics Group Incorporated		3.50			2-8-2020		14,213,448		14,129,446
Biomet Incorporated		3.66			7-25-2017		10,833,804		10,848,430
Biomet Incorporated		3.15			3-25-2015		1,042,070		1,045,978
Burger King Corporation		3.75			9-28-2019		7,607,957		7,640,291
BWAY Holding Company		4.50			8-6-2017		10,288,270		10,329,423
CDW LLC		3.25			4-29-2020		11,910,019		11,845,466
Cequel Communications LLC <		3.50			2-14-2019		11,977,273		11,965,655
Chrysler Group LLC		3.50			5-24-2017		7,829,471		7,844,112
CHS/Community Health System Incorporated		4.25			1-22-2021		6,900,000		6,957,477
CHS/Community Health System Incorporated		3.45			1-25-2017		9,300,000		9,342,594
Cinemark USA Incorporated		3.16			12-18-2019		990,000		990,139
Crown Castle Operating Company		3.25			1-31-2021		2,000,000		1,999,620
DaVita Incorporated		4.50			10-20-2016		4,850,000		4,872,747
Dell Incorporated		4.50			4-29-2020		8,349,075		8,323,694
DigitalGlobe Incorporated		3.75			1-31-2020		11,441,112		11,426,811
EFS Cogen Holdings I LLC		3.75			12-17-2020		8,230,000		8,267,693
Generac Power Systems Incorporated <		3.50			5-31-2020		14,527,075		14,524,460
HCA Incorporated		2.65			2-2-2016		6,809,764		6,804,112
HCA Incorporated		2.90			3-31-2017		8,977,500		8,966,278
Huntsman International LLC <		0.00			10-15-2020		11,120,000		11,130,453
Iasis Healthcare LLC		4.50			5-3-2018		7,811,025		7,832,974
Ineos US Finance LLC <		3.75			5-4-2018		15,566,003		15,522,729
Intelsat Jackson Holdings <		3.75			6-30-2019		14,548,512		14,644,677
KAR Auction Services Incorporated <		3.75			5-19-2017		12,283,411		12,288,570
Lifepoint Hospitals Incorporated		2.66			7-24-2017		4,793,654		4,803,577
Manitowoc Company Incorporated		3.25			1-3-2021		2,000,000		2,007,460
Michaels Stores Incorporated		3.75			1-28-2020		11,215,996		11,239,774
NBTY Incorporated		3.50			10-1-2017		8,172,889		8,178,038
Novelis Incorporated <		3.75			3-10-2017		13,333,904		13,377,639
Omnova Solutions Incorporated		4.25			5-31-2018		2,297,813		2,306,429
Peabody Energy Corporation		4.25			9-24-2020		7,595,963		7,612,598
Phillips Van Heusen Corporation		3.25			2-13-2020		7,437,705		7,443,878
Pinnacle Foods Finance LLC		3.25			4-29-2020		6,962,450		6,934,182
Progressive Waste Solutions Limited		3.00			10-24-2019		11,294,444		11,333,974
Rexnord LLC		4.00			8-21-2020		11,556,536		11,581,267
Reynolds Group Holdings Incorporated		4.00			12-1-2018		7,377,237		7,427,033
Salix Pharmaceuticals Limited <		4.25			1-2-2020		10,510,000		10,601,963
Select Medical Corporation		3.50			2-19-2016		990,000		991,238
Select Medical Corporation		4.00			6-1-2018		9,710,323		9,742,658
Sensata Technologies Finance Company		3.25			5-12-2018		1,701,418		1,706,301
Serta Simmons Holdings LLC		4.25			10-1-2019		1,939,198		1,950,271
Spectrum Brands Incorporated		3.50			9-4-2019		997,500		996,253
Sungard Data Systems Incorporated		4.00			3-8-2020		6,054,682		6,079,203
Swift Transportation Company LLC		2.90			12-21-2016		1,326,019		1,331,323
Swift Transportation Company LLC		4.00			12-21-2017		4,422,287		4,463,768
Tempur-Pedic International Incorporated		3.50			3-18-2020		11,745,415		11,736,606
Terex Corporation <		3.50			4-28-2017		11,223,795		11,265,884
The Hertz Corporation		3.00			3-11-2018		9,328,635		9,297,571

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

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage Short-Term High Yield Bond Fund 15

Security name	Interest rate			Maturity date		Principal		Value
Term Loans ± (continued)
The Hertz Corporation		3.75	%		3-11-2018	$	2,227,500	$	2,230,262
Transdigm Group Incorporated		3.50			2-14-2017		784,270		788,583
Transdigm Group Incorporated		3.75			2-28-2020		12,748,968		12,796,777
UCI International Incorporarted		5.50			7-26-2017		3,543,657		3,537,030
Universal Health Services Incorporated		2.40			11-15-2016		3,423,473		3,440,591
Valeant Pharmaceuticals International Incorporated		3.75			2-13-2019		10,917,085		10,946,125
Virgin Media Investment Holdings Limited		3.50			6-7-2020		14,270,000		14,254,731
Wendy’s International Incorporated		3.25			5-15-2019		2,041,408		2,037,591
West Corporation <		0.00			6-30-2018		8,600,000		8,551,668
Total Term Loans (Cost $471,163,396)									470,342,153
Yankee Corporate Bonds and Notes: 5.25%
Consumer Discretionary: 0.17%
Automobiles: 0.17%
Jaguar Land Rover Automotive plc 144A		4.13			12-15-2018		2,905,000		2,963,100
Financials: 0.12%
Consumer Finance: 0.12%
Inmarsat Finance plc 144A		7.38			12-1-2017		2,000,000		2,080,000
Health Care: 0.38%
Pharmaceuticals : 0.38%
Valeant Pharmaceuticals International Incorporated 144A		6.75			8-15-2018		5,900,000		6,504,750
Information Technology: 1.71%
Electronic Equipment, Instruments & Components: 1.24%
NXP BV/NXP Funding LLC 144A		3.50			9-15-2016		8,705,000		8,922,622
Sensata Technologies BV 144A		6.50			5-15-2019		11,709,000		12,587,175
									21,509,797
Technology Hardware, Storage & Peripherals: 0.47%
Seagate Technology HDD Holdings		6.80			10-1-2016		7,300,000		8,194,250
Materials: 2.74%
Metals & Mining: 2.10%
ArcelorMittal SA		4.25			8-5-2015		7,300,000		7,528,125
ArcelorMittal SA		5.00			2-25-2017		10,000,000		10,687,500
FMG Resources Limited 144A«		6.00			4-1-2017		17,260,000		18,209,300
									36,424,925
Paper & Forest Products: 0.64%
Smurfit Kappa Acquisitions 144A		4.88			9-15-2018		8,000,000		8,420,000
UPM Kymmene Corporation 144A		5.63			12-1-2014		2,500,000		2,581,250
									11,001,250

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

16 Wells Fargo Advantage Short-Term High Yield Bond Fund Portfolio of investments—February 28, 2014 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Telecommunication Services: 0.13%
Diversified Telecommunication Services: 0.13%
Intelsat Jackson Holdings SA		7.25	%		4-1-2019	$	2,140,000	$	2,305,850
Total Yankee Corporate Bonds and Notes (Cost $89,762,602)									90,983,922
	Yield					Shares
Short-Term Investments: 6.15%
Investment Companies: 6.15%
Wells Fargo Advantage Cash Investment Money Market Fund, Select Class (l)(u)##		0.07					100,726,393		100,726,393
Wells Fargo Securities Lending Cash Investments, LLC (l)(r)(u)(v)		0.09					5,794,353		5,794,353
Total Short-Term Investments (Cost $106,520,746)									106,520,746

Total investments in securities (Cost $1,761,576,294)*	102.47	%		1,775,164,820
Other assets and liabilities, net	(2.47	)		(42,761,414	)
Total net assets	100.00	%	$	1,732,403,406

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 this security is on loan.

(i) Illiquid security

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

(l) Investment in an affiliate

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

## All or a portion of this security has been segregated for unfunded term 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 $1,761,579,460 and unrealized appreciation (depreciation) consists of:

Gross unrealized appreciation	$	19,232,664
Gross unrealized depreciation		(5,647,304	)
Net unrealized appreciation	$	13,585,360

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

Statement of assets and liabilities—February 28, 2014 (unaudited) Wells Fargo Advantage Short-Term High Yield Bond Fund 17

Assets
Investments
In unaffiliated securities (including securities on loan), at value (see cost below)	$	1,668,644,074
In affiliated securities, at value (see cost below)		106,520,746
Total investments, at value (see cost below)		1,775,164,820
Receivable for investments sold		7,367,317
Receivable for Fund shares sold		4,750,236
Receivable for interest		23,085,097
Receivable for securities lending income		1,704
Prepaid expenses and other assets		83,257
Total assets		1,810,452,431
Liabilities
Dividends payable		944,497
Payable for investments purchased		66,650,713
Payable for Fund shares redeemed		3,576,928
Payable upon receipt of securities loaned		5,794,353
Advisory fee payable		423,816
Distribution fees payable		87,973
Due to other related parties		246,174
Accrued expenses and other liabilities		324,571
Total liabilities		78,049,025
Total net assets	$	1,732,403,406
NET ASSETS CONSIST OF
Paid-in capital	$	1,720,661,035
Overdistributed net investment income		(422,872	)
Accumulated net realized losses on investments		(1,423,283	)
Net unrealized gains on investments		13,588,526
Total net assets	$	1,732,403,406
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE1
Net assets – Class A	$	324,640,254
Shares outstanding – Class A		39,247,644
Net asset value per share – Class A		$8.27
Maximum offering price per share – Class A2		$8.53
Net assets – Class C	$	143,983,131
Shares outstanding – Class C		17,406,687
Net asset value per share – Class C		$8.27
Net assets – Administrator Class	$	591,018,937
Shares outstanding – Administrator Class		71,473,658
Net asset value per share – Administrator Class		$8.27
Net assets – Institutional Class	$	413,501,415
Shares outstanding – Institutional Class		50,078,559
Net asset value per share – Institutional Class		$8.26
Net assets – Investor Class	$	259,259,669
Shares outstanding – Investor Class		31,340,997
Net asset value per share – Investor Class		$8.27
Investments in unaffiliated securities (including securities on loan), at cost	$	1,655,055,548
Investments in affiliated securities, at cost	$	106,520,746
Total investments, at cost	$	1,761,576,294
Securities on loan, at value	$	5,669,258

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.

18 Wells Fargo Advantage Short-Term High Yield Bond Fund Statement of operations—six months ended February 28, 2014 (unaudited)

Investment income
Interest	$	32,179,777
Income from affiliated securities		41,230
Securities lending income, net		21,691
Total investment income		32,242,698
Expenses
Advisory fee		3,284,019
Administration fees
Fund level		387,258
Class A		241,317
Class C		110,409
Administrator Class		277,436
Institutional Class		117,124
Investor Class		248,604
Shareholder servicing fees
Class A		377,058
Class C		172,513
Administrator Class		672,657
Investor Class		327,110
Distribution fees
Class C		517,540
Custody and accounting fees		40,670
Professional fees		27,802
Registration fees		63,766
Shareholder report expenses		48,973
Trustees’ fees and expenses		5,245
Other fees and expenses		13,607
Total expenses		6,933,108
Less: Fee waivers and/or expense reimbursements		(1,000,498	)
Net expenses		5,932,610
Net investment income		26,310,088
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized losses on investments		(1,276,047	)
Net change in unrealized gains (losses) on investments		15,942,942
Net realized and unrealized gains (losses) on investments		14,666,895
Net increase in net assets resulting from operations	$	40,976,983

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 19

	Six months ended February 28, 2014 (unaudited)						Year ended August 31, 2013
Operations
Net investment income				$	26,310,088					$	47,173,697
Net realized gains (losses) on investments					(1,276,047	)					3,396,952
Net change in unrealized gains (losses) on investments					15,942,942						(13,871,308	)
Net increase in net assets resulting from operations					40,976,983						36,699,341
Distributions to shareholders from
Net investment income
Class A					(4,975,102	)					(10,513,974	)
Class C					(1,758,568	)					(3,582,237	)
Administrator Class					(9,615,919	)					(20,506,069	)
Institutional Class					(5,325,387	)					(3,103,533	)1
Investor Class					(4,268,857	)					(9,162,511	)
Net realized gains
Class A					(679,349	)					(39,696	)
Class C					(311,057	)					(16,294	)
Administrator Class					(1,207,759	)					(72,797	)
Institutional Class					(665,596	)					(720	)1
Investor Class					(604,264	)					(34,580	)
Total distributions to shareholders					(29,411,858	)					(47,032,411	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		9,781,990			80,845,404			20,148,710			166,913,214
Class C		3,573,647			29,515,203			7,114,933			58,920,937
Administrator Class		30,718,372			253,873,882			52,099,199			430,972,636
Institutional Class		37,955,425			313,265,925			29,495,940	1		243,096,222	1
Investor Class		11,845,658			97,907,563			20,125,073			166,584,407
					775,407,977						1,066,487,416
Reinvestment of distributions
Class A		659,588			5,453,152			1,222,470			10,111,232
Class C		238,894			1,975,054			407,267			3,367,963
Administrator Class		1,096,702			9,063,556			1,777,306			14,688,659
Institutional Class		408,573			3,373,025			324,060	1		2,672,119	1
Investor Class		537,638			4,445,138			932,578			7,712,933
					24,309,925						38,552,906
Payment for shares redeemed
Class A		(6,007,476	)		(49,644,290	)		(18,180,394	)		(150,369,835	)
Class C		(2,657,076	)		(21,953,406	)		(3,715,552	)		(30,732,520	)
Administrator Class		(27,495,426	)		(227,270,967	)		(42,406,628	)		(350,281,858	)
Institutional Class		(14,118,097	)		(116,600,427	)		(3,987,342	)1		(32,846,380	)1
Investor Class		(12,513,166	)		(103,441,106	)		(17,698,204	)		(146,319,663	)
					(518,910,196	)					(710,550,256	)
Net increase in net assets resulting from capital share transactions					280,807,706						394,490,066
Total increase in net assets					292,372,831						384,156,996
Net assets
Beginning of period					1,440,030,575						1,055,873,579
End of period				$	1,732,403,406					$	1,440,030,575
Overdistributed net investment income				$	(422,872	)				$	(789,127	)

1. For the period from November 30, 2012 (commencement of class operations) to August 31, 2013

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, 2014 (unaudited)			Year ended August 31												Year ended May 31
CLASS A				2013			2012			2011			20101			2010			20092
Net asset value, beginning of period	$	8.21		$	8.26		$	8.04		$	8.18		$	8.09		$	7.82		$	8.31
Net investment income		0.14			0.31			0.36			0.40			0.11			0.45			0.40
Net realized and unrealized gains (losses) on investments		0.08			(0.05	)		0.26			(0.14	)		0.09			0.26			(0.49	)
Total from investment operations		0.22			0.26			0.62			0.26			0.20			0.71			(0.09	)
Distributions to shareholders from
Net investment income		(0.14	)		(0.31	)		(0.36	)		(0.40	)		(0.11	)		(0.44	)		(0.40	)
Net realized gains		(0.02	)		(0.00	)3		(0.04	)		0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.16	)		(0.31	)		(0.40	)		(0.40	)		(0.11	)		(0.44	)		(0.40	)
Net asset value, end of period	$	8.27		$	8.21		$	8.26		$	8.04		$	8.18		$	8.09		$	7.82
Total return4		2.62	%		3.17	%		7.81	%		3.10	%		2.43	%		9.17	%		(0.89	)%
Ratios to average net assets (annualized)
Gross expenses		0.91	%		0.94	%		0.99	%		1.00	%		1.01	%		1.03	%		1.08	%
Net expenses		0.81	%		0.81	%		0.81	%		0.81	%		0.81	%		0.81	%		0.81	%
Net investment income		3.35	%		3.73	%		4.33	%		4.77	%		5.14	%		5.50	%		5.27	%
Supplemental data
Portfolio turnover rate		14	%		33	%		28	%		36	%		15	%		40	%		46	%
Net assets, end of period (000s omitted)		$324,640			$285,726			$261,173			$201,523			$235,754			$212,688			$110,451

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 21

(For a share outstanding throughout each period)

	Six months ended February 28, 2014 (unaudited)			Year ended August 31												Year ended May 31
CLASS C				2013			2012			2011			20101			2010			2009
Net asset value, beginning of period	$	8.21		$	8.26		$	8.04		$	8.18		$	8.09		$	7.82		$	8.31
Net investment income		0.11			0.25			0.29	2		0.33			0.09			0.38			0.34
Net realized and unrealized gains (losses) on investments		0.07			(0.06	)		0.26			(0.14	)		0.09			0.26			(0.49	)
Total from investment operations		0.18			0.19			0.55			0.19			0.18			0.64			(0.15	)
Distributions to shareholders from
Net investment income		(0.10	)		(0.24	)		(0.29	)		(0.33	)		(0.09	)		(0.37	)		(0.34	)
Net realized gains		(0.02	)		(0.00	)3		(0.04	)		0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.12	)		(0.24	)		(0.33	)		(0.33	)		(0.09	)		(0.37	)		(0.34	)
Net asset value, end of period	$	8.27		$	8.21		$	8.26		$	8.04		$	8.18		$	8.09		$	7.82
Total return4		2.24	%		2.40	%		7.00	%		2.33	%		2.24	%		8.35	%		(1.70	)%
Ratios to average net assets (annualized)
Gross expenses		1.66	%		1.69	%		1.73	%		1.75	%		1.76	%		1.78	%		1.76	%
Net expenses		1.56	%		1.56	%		1.56	%		1.56	%		1.56	%		1.56	%		1.56	%
Net investment income		2.60	%		2.98	%		3.58	%		3.97	%		4.39	%		4.69	%		4.50	%
Supplemental data
Portfolio turnover rate		14	%		33	%		28	%		36	%		15	%		40	%		46	%
Net assets, end of period (000s omitted)		$143,983			$133,379			$102,780			$71,831			$36,050			$32,985			$11,096

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.

22 Wells Fargo Advantage Short-Term High Yield Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2014 (unaudited)			Year ended August 31
ADMINISTRATOR CLASS				2013			2012			2011			20101
Net asset value, beginning of period	$	8.20		$	8.26		$	8.03		$	8.18		$	8.18
Net investment income		0.14			0.32			0.37			0.41			0.03	2
Net realized and unrealized gains (losses) on investments		0.09			(0.06	)		0.27			(0.15	)		0.00	3
Total from investment operations		0.23			0.26			0.64			0.26			0.03
Distributions to shareholders from
Net investment income		(0.14	)		(0.32	)		(0.37	)		(0.41	)		(0.03	)
Net realized gains		(0.02	)		(0.00	)3		(0.04	)		0.00			0.00
Total distributions to shareholders		(0.16	)		(0.32	)		(0.41	)		(0.41	)		(0.03	)
Net asset value, end of period	$	8.27		$	8.20		$	8.26		$	8.03		$	8.18
Total return4		2.82	%		3.21	%		8.12	%		3.15	%		0.39	%
Ratios to average net assets (annualized)
Gross expenses		0.84	%		0.87	%		0.92	%		0.94	%		0.89	%
Net expenses		0.65	%		0.65	%		0.65	%		0.65	%		0.64	%
Net investment income		3.52	%		3.89	%		4.48	%		4.87	%		4.39	%
Supplemental data
Portfolio turnover rate		14	%		33	%		28	%		36	%		15	%
Net assets, end of period (000s omitted)		$591,019			$550,981			$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 23

(For a share outstanding throughout each period)

INSTITUTIONAL CLASS	Six months ended February 28, 2014 (unaudited)			Year ended August 31, 20131
Net asset value, beginning of period	$	8.19		$	8.28
Net investment income		0.15			0.25
Net realized and unrealized gains (losses) on investments		0.09			(0.09	)
Total from investment operations		0.24			0.16
Distributions to shareholders from
Net investment income		(0.15	)		(0.25	)
Net realized gains		(0.02	)		(0.00	)2
Total distributions to shareholders		(0.17	)		(0.25	)
Net asset value, end of period	$	8.26		$	8.19
Total return3		2.90	%		1.92	%
Ratios to average net assets (annualized)
Gross expenses		0.58	%		0.60	%
Net expenses		0.50	%		0.50	%
Net investment income		3.67	%		4.05	%
Supplemental data
Portfolio turnover rate		14	%		33	%
Net assets, end of period (000s omitted)		$413,501			$211,642

1. For the period from November 30, 2012 (commencement of class operations) to August 31, 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.

24 Wells Fargo Advantage Short-Term High Yield Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2014 (unaudited)			Year ended August 31												Year ended May 31
INVESTOR CLASS				2013			2012			2011			20101			2010			2009
Net asset value, beginning of period	$	8.21		$	8.26		$	8.03		$	8.18		$	8.09		$	7.82		$	8.31
Net investment income		0.14			0.31			0.35	2		0.39			0.11			0.44			0.40
Net realized and unrealized gains (losses) on investments		0.07			(0.06	)		0.27			(0.15	)		0.08			0.26			(0.49	)
Total from investment operations		0.21			0.25			0.62			0.24			0.19			0.70			(0.09	)
Distributions to shareholders from
Net investment income		(0.13	)		(0.30	)		(0.35	)		(0.39	)		(0.10	)		(0.43	)		(0.40	)
Net realized gains		(0.02	)		(0.00	)3		(0.04	)		0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.15	)		(0.30	)		(0.39	)		(0.39	)		(0.10	)		(0.43	)		(0.40	)
Net asset value, end of period	$	8.27		$	8.21		$	8.26		$	8.03		$	8.18		$	8.09		$	7.82
Total return4		2.60	%		3.13	%		7.91	%		2.95	%		2.42	%		9.12	%		(0.91	)%
Ratios to average net assets (annualized)
Gross expenses		0.94	%		0.97	%		1.01	%		1.03	%		1.05	%		1.07	%		1.13	%
Net expenses		0.84	%		0.84	%		0.84	%		0.84	%		0.85	%		0.86	%		0.84	%
Net investment income		3.31	%		3.70	%		4.30	%		4.76	%		5.10	%		5.49	%		5.20	%
Supplemental data
Portfolio turnover rate		14	%		33	%		28	%		36	%		15	%		40	%		46	%
Net assets, end of period (000s omitted)		$259,260			$258,302			$232,175			$170,952			$177,946			$165,759			$128,789

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 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 the 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 (generally 4 p.m. Eastern Time).

Fixed income securities acquired with maturities exceeding 60 days are valued based on evaluated bid prices provided by an independent pricing service which may utilize both transaction data and market information such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data. If prices are not available from the independent pricing service or prices received are deemed not representative of market value, prices will be obtained from an independent broker-dealer or otherwise determined based on the Fund’s Valuation Procedures.

Short-term securities, with maturities of 60 days or less at time of purchase, 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 vehicles 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 in good faith by the Board of Trustees of the Fund. 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 values, to assess the continued appropriateness of the fair valuation methodologies used. These securities are fair valued on a day-to-day basis, taking into consideration changes to appropriate market information and any significant changes to the inputs considered in the valuation process until there is a readily available price provided on an exchange or by an independent pricing service. Valuations received from an independent pricing service or independent broker-dealer quotes are periodically validated by comparisons to most recent trades and valuations provided by other independent pricing services in addition to the review of prices by the adviser and/or subadviser. Unobservable inputs used in determining fair valuations are identified based on the type of security, taking into consideration factors utilized by market participants in valuing the investment, knowledge about the issuer and the current market environment.

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

26 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 “Securities Lending Fund”). The Securities Lending 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 Securities Lending Fund increase. All of the fees received by Funds Management are paid to WellsCap for its services as subadviser. The Securities Lending 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. Securities Lending Fund investments are fair valued based upon the amortized cost valuation technique. Income earned from investment in the Securities Lending 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.

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-Term High Yield Bond Fund 27

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, 2014, the inputs used in valuing investments in securities were as follows:

Investments in securities	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		��	Significant unobservable inputs (Level 3)		Total
Corporate bonds and notes	$	0	$	1,098,902,395		$	0	$	1,098,902,395
Municipal obligations		0		8,376,355			0		8,376,355
Non-agency mortgage backed securities		0		39,249			0		39,249
Term loans		0		468,035,724			2,306,429		470,342,153
Yankee corporate bonds and notes		0		90,983,922			0		90,983,922
Short-term investments
Investment companies		100,726,393		5,794,353			0		106,520,746
	$	100,726,393	$	1,672,131,998		$	2,306,429	$	1,775,164,820

Transfers in and transfers out are recognized at the end of the reporting period. For the six months ended February 28, 2014, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

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. For the six months ended February 28, 2014, the advisory fee was equivalent to an annual rate of 0.42% 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 and an

indirect, wholly owned subsidiary of Wells Fargo, 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

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

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, 2014 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, 2014, Wells Fargo Funds Distributor, LLC received $12,720 from the sale of Class A shares and $120 and $787 in contingent deferred sales charges from redemptions of Class A and Class C shares, respectively.

Shareholder servicing fees

The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class C, Administrator Class, and Investor Class of the Fund is charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class.

A portion of these total shareholder servicing fees were paid to affiliates of Wells Fargo.

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, 2014 were $678,591,567 and $205,105,225, respectively.

As of February 28, 2014, the Fund had unfunded term loan commitments of $63,210,713.

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, 2014, the Fund paid $1,476 in commitment fees.

For the six months ended February 28, 2014, 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.

Other information (unaudited) Wells Fargo Advantage Short-Term High Yield Bond 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 Short-Term High Yield 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 each fund in the Wells Fargo Advantage family of funds, which consists of 132 mutual 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 Harbor 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 50 portfolios as of 12/16/2013); 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 High Yield Bond 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 73 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 59 funds and Assistant Treasurer of 73 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 Short-Term High Yield 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 —  Columbian Peso

CLP —  Chilean peso

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 —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

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

NGN —  Nigerian naira

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

RON —  Romanian lei

RUB —  Russian ruble

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

THB —  Thai baht

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

© 2014 Wells Fargo Funds Management, LLC. All rights reserved.

223536 04-14 SA222/SAR222 02-14

Wells Fargo Advantage
Ultra Short-Term Income Fund

Semi-Annual Report

February 28, 2014

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
Portfolio of investments	9
Financial statements
Statement of assets and liabilities	23
Statement of operations	24
Statement of changes in net assets	25
Financial highlights	26
Notes to financial statements	31
Other information	37
List of abbreviations	40

The views expressed and any forward-looking statements are as of February 28, 2014, 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 and the Fund disclaim any obligation to publicly update or revise any views expressed or forward-looking statements.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

2 Wells Fargo Advantage Ultra Short-Term Income Fund Letter to shareholders (unaudited)

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Fixed-income markets shifted during the period, driven by vacillations between U.S. Treasury yield increases and subsequent declines.

Reassurances from the Fed that a highly accommodative monetary policy would continue throughout 2014 inspired price rallies across both the investment-grade and high-yield bond markets.

Dear Valued Shareholder:

We are pleased to offer you this semi-annual report for the Wells Fargo Advantage Ultra Short-Term Income Fund for the six-month period that ended February 28, 2014. Fixed-income markets shifted during the period, driven by vacillations between U.S. Treasury yield increases and subsequent declines. However, on the whole, investment-grade (measured by the Barclays U.S. Aggregate Bond Index¹) and high-yield markets (measured by the Barclays U.S. High Yield Bond Index²) generated positive returns during the period, notably benefiting from the strong price improvement and declining U.S. Treasury yields that occurred in September and October of 2013 as well as the opening months of 2014. Although the returns of the U.S. high-yield market have often been positively correlated with U.S. equity returns (measured by the S&P 500 Index³) over the long-run, over the period, high-yield (measured by the Barclays U.S. High Yield Bond Index) generally performed well even when equities did not. The lower-rated corporate bond credit tiers outperformed the respectively higher-rated investment-grade credit tiers during the period.

A decline in bond prices was halted by the Fed’s postponement of tapering its bond-buying program.

Before the six-month period began, equity markets rallied, most notably in May and June of 2013. This led to a sharp increase in U.S. Treasury yields and declining valuations for much of the fixed-income markets (measured by the Barclays U.S. Aggregate Bond Index). However, in July and August 2013, that equity exuberance quieted a bit, and fixed-income markets stabilized. Returns across the fixed-income markets were largely negative in investment-grade and high-yield markets but modest in comparison with the declines in May and June of 2013.

But, by September and October of 2013, investment-grade and high-yield bond markets began generating positive returns yet again, as the Federal Reserve (Fed) backtracked on its intentions to taper its quantitative easing program, postponing it until 2014, at the earliest. This created a temporary rally in bonds that lasted until around November 20, 2013, when notes were released from the Fed’s October 2013 meeting that tapering of the bond-buying programs would not be postponed beyond January 2014. In response, long-term U.S. Treasury yields and mortgage rates ratcheted higher on expectations for an unwinding of monetary accommodation in the upcoming months. This led to declines in pricing across much of the core fixed-income markets (measured by the Barclays U.S. Aggregate Bond Index). U.S. high-yield markets were better able to absorb the shift in U.S. Treasury yields and continued to provide positive returns along with rallies in the equity markets.

Favorable conditions for fixed-income markets were restored in January and February 2014.

Seemingly much to the surprise of many everyday investors and seasoned investment professionals alike, fixed-income markets (measured by the Barclays U.S. Aggregate Bond Index) largely outperformed U.S. equity markets (measured by the S&P 500 Index) during the opening months of 2014. A pullback in equity exuberance in January and reassurances from the Fed that a highly accommodative monetary policy would continue throughout 2014 inspired price rallies across both the investment-grade and high-yield bond markets. U.S. Treasury yields declined in January 2014 and corporate bonds and mortgage-backed securities performed notably well. U.S. high-yield securities generated positive returns in January 2014 but lagged the rally across the investment-grade bond markets. This theme reversed in February 2014, as high-yield sectors rallied and investment-grade sectors performed well but not to the extent of the lowest-rated credit tiers.

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

One positive takeaway for bond investors that helped fuel the fixed-income (measured by the Barclays U.S. Aggregate Bond Index) rallies was former Fed Chairman Bernanke’s guidance at the end of 2013. He indicated that the tapering of the Fed’s bond-buying program would proceed at a slow pace and that a reduction in quantitative easing should not be equivocated with a tightening of monetary policy. The distinction was important—although the bond-buying program was declining in volume, it was, nonetheless, still continuing. Additionally, the federal funds target rate would remain unchanged for the foreseeable future, with the implications that it would not increase until the bond-buying program was fully disbanded. These were important statements for fixed-income investors that helped bolster U.S. fixed-income valuations in the opening months of 2014.

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

Periods of investment uncertainty can present challenges, but experience has taught us that maintaining long-term investment goals can be an effective way to plan for the future. To help you create a sound strategy based on your personal goals and risk tolerance, Wells Fargo Advantage Funds offers more than 100 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. We encourage investors to know their investments and to understand that appropriate levels of risk-taking may unlock opportunities.

Thank you for choosing to invest with Wells Fargo 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

1. The Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment-grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and CMBS. You cannot invest directly in an index.

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

3. The S&P 500 Index consists of 500 stocks chosen for market size, liquidity, and industry group representation. It is a market-value-weighted index with each stock’s weight in the index proportionate to its market value. You cannot invest directly in an index.

4 Wells Fargo Advantage Ultra Short-Term Income Fund Letter to shareholders (unaudited)

Notice to shareholders

The Fund and Wells Fargo Funds Management, LLC (“Funds Management”) have received an exemptive order from the SEC that permits Funds Management, subject to the approval of the Board of Trustees of the Fund, to select or replace certain subadvisers to manage all or a portion of the Fund’s assets and enter into, amend or terminate a sub-advisory agreement with certain subadvisers without obtaining shareholder approval (“Multi-manager Structure”). The Multi-manager Structure applies to subadvisers that are not affiliated with Funds Management or the Fund, except to the extent that affiliation arises solely because such subadvisers provide sub-advisory services to the Fund (“Non-affiliated Subadvisers”), as well as subadvisers that are indirect or direct wholly-owned subsidiaries of Funds Management or of another company that, indirectly or directly, wholly owns Funds Management (“Wholly-owned Subadvisers”).

Pursuant to the SEC order, Funds Management, with the approval of the Board of Trustees, has the discretion to terminate any subadvisers and allocate and reallocate the Fund’s assets among any other Non-affiliated Subadvisers or Wholly-owned Subadvisers. Funds Management, subject to oversight and supervision by the Board of Trustees, has responsibility to continue to oversee any subadvisers to the Fund and to recommend, for approval by the Board of Trustees, the hiring, termination and replacement of subadvisers for the Fund. In the event that a new subadviser is hired pursuant to the Multi-manager Structure, the Fund is required to provide notice to shareholders within 90 days.

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

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6 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

Thomas M. Price, CFA

Jay N. Mueller, CFA

Christopher Y. Kauffman, CFA

Noah Wise, CFA

Average annual total returns¹ (%) as of February 28, 2014

		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		(1.53	)		2.41		1.83		0.48			2.82		2.03		0.79		0.71
Class C (WUSTX)	7-18-2008		(1.09	)		2.07		1.31		(0.09	)		2.07		1.31		1.54		1.46
Administrator Class (WUSDX)	4-8-2005		–			–		–		0.75			2.96		2.20		0.73		0.56
Institutional Class (SADIX)	8-31-1999		–			–		–		0.95			3.19		2.47		0.46		0.36
Investor Class (STADX)	11-25-1998		–			–		–		0.57			2.79		2.04		0.82		0.74
Barclays Short-Term U.S. Government/Corporate Index4	–		–			–		–		0.25			0.60		–		–		–
Barclays 9-12 Month U.S. Short-Term Treasury Index5	–		–			–		–		0.25			0.52		2.04		–		–
Barclays 1-3 Year U.S. Government/Credit Bond Index6	–		–			–		–		0.81			2.07		2.86		–		–

Figures quoted represent past performance, which is no guarantee of future results, and do not reflect 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, which 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 7.

Performance highlights (unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 7

Ten largest long-term holdings7 (%) as of February 28, 2014
Bank Nederlandse Gemeenten, 5.00%, 5-16-2014	0.80
Ford Credit Auto Owner Trust Series 2014-A Class A2, 0.48%, 11-15-2016	0.79
California PCFA Solid Waste Disposal Series A, 0.55%, 8-1-2023	0.79
Nordea Eiendomskreditt, 1.88%, 4-7-2014	0.71
Mercedes-Benz Auto Lease Trust Series 2013-B Class A2, 0.53%, 9-15-2015	0.68
Port Arthur TX Navigation District Motiva Enterprises Project Series B, 0.28%, 12-1-2039	0.68
Providence Health & Services Company, 1.05%, 10-1-2016	0.68
Prudential Insurance Company, 8.10%, 7-15-2015	0.68
FHLMC Series 3166 Class AC, 5.00%, 6-15-2021	0.67
Mercedes-Benz Auto Lease Trust Series 2013-A Class A2, 0.49%, 6-15-2015	0.66

Portfolio allocation8 as of February 28, 2014

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

2. Reflects the expense ratios as stated in the most recent prospectuses, which include the impact of 0.01% in acquired fund fees and expenses. The expense ratios shown are subject to change and may differ from the annualized expense ratios shown in the financial highlights of this report, which do not include acquired fund fees and expenses.

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 0.70% 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/Corporate 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/Corporate Index must have a maturity from one 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 9, 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 nine 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 one- to three-year component of the Barclays U.S. 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.

8 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, 2013 to February 28, 2014.

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 9-1-2013		Ending account value 2-28-2014		Expenses paid during the period1		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,004.87	$	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	$	1,002.62	$	7.20		1.45	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.60	$	7.25		1.45	%
Administrator Class
Actual	$	1,000.00	$	1,005.63	$	2.74		0.55	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.07	$	2.76		0.55	%
Institutional Class
Actual	$	1,000.00	$	1,007.80	$	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	$	1,005.90	$	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, 2014 (unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities: 14.72%
FDIC Series 2013-R1 Class A 144A		1.15	%		3-25-2033	$	4,524,604	$	4,395,968
FHLMC ±		2.35			3-1-2035		1,837,497		1,965,752
FHLMC ±		2.37			11-1-2035		7,940,574		8,461,896
FHLMC ±		2.38			4-1-2032		163,263		172,789
FHLMC ±		2.38			6-1-2032		7,634		8,037
FHLMC ±		2.46			1-1-2029		83,027		83,731
FHLMC ±		2.53			7-1-2029		5,828		6,146
FHLMC ±		2.69			10-1-2031		81,129		81,609
FHLMC		5.00			12-1-2019		3,342,241		3,631,635
FHLMC		5.50			8-1-2018		940,227		1,008,838
FHLMC		6.00			4-1-2016		183,917		190,757
FHLMC		6.00			5-1-2017		356,404		374,001
FHLMC		6.00			1-1-2024		2,952,217		3,232,799
FHLMC		7.00			6-1-2031		439,143		498,551
FHLMC		9.00			11-1-2016		80,438		85,943
FHLMC		9.00			12-1-2016		394,543		419,137
FHLMC		9.00			8-1-2018		106,546		114,796
FHLMC		9.00			10-1-2019		61,827		68,610
FHLMC		9.50			12-1-2016		41,090		43,569
FHLMC		9.50			5-1-2020		19,859		21,448
FHLMC		9.50			9-1-2020		160,522		179,694
FHLMC		9.50			12-1-2022		310,999		342,172
FHLMC		10.00			11-17-2021		49,792		51,683
FHLMC		10.50			5-1-2020		134,472		153,363
FHLMC Series 2530 Class BH		5.00			11-15-2017		2,535,637		2,679,149
FHLMC Series 2617 Class GR		4.50			5-15-2018		735,588		775,639
FHLMC Series 2684 Class PE		5.00			1-15-2033		113,019		117,438
FHLMC Series 2690 Class TG		4.50			4-15-2032		653,246		678,262
FHLMC Series 2707 Class QE		4.50			11-15-2018		709,548		753,100
FHLMC Series 2727 Class PE		4.50			7-15-2032		1,385,983		1,426,096
FHLMC Series 2843 Class BC		5.00			8-15-2019		1,671,732		1,789,232
FHLMC Series 2849 Class B		5.00			8-15-2019		3,172,443		3,398,546
FHLMC Series 2855 Class WN		4.00			9-15-2019		692,372		729,587
FHLMC Series 2864 Class NB		5.50			7-15-2033		2,827,761		3,067,001
FHLMC Series 2896 Class CB		4.50			11-15-2019		2,585,623		2,751,193
FHLMC Series 2911 Class UE		5.00			6-15-2033		1,392,970		1,420,093
FHLMC Series 2937 Class HJ		5.00			10-15-2019		513,028		524,932
FHLMC Series 2948 Class KB		4.50			7-15-2019		484,964		487,776
FHLMC Series 2953 Class LD		5.00			12-15-2034		803,698		867,722
FHLMC Series 2963 Class BP		5.00			9-15-2034		550,509		576,130
FHLMC Series 3053 Class AC		5.00			2-15-2035		1,622,254		1,653,807
FHLMC Series 3166 Class AC		5.00			6-15-2021		10,585,600		11,848,589
FHLMC Series 3420 Class A		4.50			1-15-2027		603,840		615,555
FHLMC Series 3574 Class EA		3.00			9-15-2021		697,163		715,293
FHLMC Series 3589 Class CA		4.00			10-15-2021		1,231,082		1,278,013
FHLMC Series 3643 Class AJ		1.50			7-15-2015		137,024		137,026
FHLMC Series 3647 Class BG		4.00			12-15-2027		924,353		933,178
FHLMC Series 3689 Class AJ		4.00			12-15-2027		1,881,631		1,898,148
FHLMC Series 3689 Class BD		2.00			7-15-2020		1,025,353		1,033,171
FHLMC Series 3772 Class HC		3.00			10-15-2018		1,917,664		1,985,873

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, 2014 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC Series 3780 Class DG		3.00	%		10-15-2027	$	1,530,142	$	1,566,248
FHLMC Series 3821 Class LA		3.50			4-15-2025		1,073,560		1,127,689
FHLMC Series 3834 Class EA		3.50			6-15-2029		1,159,434		1,228,902
FHLMC Series 3842 Class CJ		2.00			9-15-2018		618,100		628,758
FHLMC Series 3878 Class JA		3.50			1-15-2025		1,020,348		1,064,658
FHLMC Series 3898 Class NE		4.00			7-15-2040		1,648,978		1,728,686
FHLMC Series 3952 Class MK		3.00			11-15-2021		2,207,856		2,249,461
FHLMC Series K003 Class A3		4.32			12-25-2015		2,025,000		2,141,974
FHLMC Series K003 Class AAB		4.77			5-25-2018		1,291,000		1,388,625
FHLMC Structured Pass-Through Securities Series T-42 Class A6		9.50			2-25-2042		1,070,170		1,338,033
FNMA ±		1.77			10-1-2031		156,223		161,206
FNMA		1.89			2-1-2017		2,000,000		2,046,073
FNMA ±		1.98			1-1-2023		22,615		22,931
FNMA ±		2.14			12-1-2034		1,777,275		1,881,310
FNMA ±		2.25			5-1-2032		49,701		52,766
FNMA ±		2.31			11-1-2031		102,922		109,542
FNMA ±		2.34			6-1-2032		151,196		154,809
FNMA ±		2.39			12-1-2040		482,352		516,493
FNMA ±		2.39			2-1-2033		1,205,474		1,279,481
FNMA ±		2.41			8-1-2045		1,648,837		1,754,288
FNMA ±		2.42			5-1-2036		1,885,540		2,014,927
FNMA ±		2.49			11-1-2034		1,288,397		1,374,225
FNMA ±		2.51			5-1-2036		1,843,353		1,953,964
FNMA		2.71			9-1-2017		3,414,922		3,571,191
FNMA		3.00			1-1-2021		1,229,408		1,287,419
FNMA		3.03			1-1-2015		2,600,000		2,623,766
FNMA ±		3.05			4-1-2033		9,088		9,681
FNMA		3.09			5-1-2016		1,167,112		1,211,265
FNMA ±		3.45			7-1-2033		66,652		66,829
FNMA		3.50			9-1-2018		1,199,040		1,269,774
FNMA		3.77			1-1-2018		958,414		979,712
FNMA		3.85			10-1-2016		7,178,249		7,334,538
FNMA		4.00			5-25-2019		246,073		259,348
FNMA		4.00			12-15-2024		1,413,142		1,492,227
FNMA		4.22			5-1-2016		2,285,049		2,418,830
FNMA		4.29			5-1-2016		784,550		830,148
FNMA		4.33			8-1-2014		700,115		704,121
FNMA		4.34			2-1-2017		727,643		749,546
FNMA		4.44			9-1-2015		4,008,544		4,251,181
FNMA		4.50			6-1-2019		376,640		402,524
FNMA		4.50			5-1-2020		651,642		696,246
FNMA		5.00			1-15-2022		5,673,411		6,060,372
FNMA		5.09			12-1-2016		985,111		1,080,780
FNMA		5.13			2-1-2016		6,484,391		6,892,965
FNMA		5.17			1-1-2016		1,132,695		1,194,427
FNMA		5.19			1-1-2018		2,421,468		2,601,265
FNMA		5.23			7-1-2018		1,747,098		1,846,495
FNMA		5.27			12-1-2016		958,594		1,055,568
FNMA		5.29			8-1-2015		5,767,933		6,062,154
FNMA		5.40			12-1-2016		991,284		1,091,435

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

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA		5.50	%		1-1-2016	$	2,814,949	$	2,985,300
FNMA		5.85			5-1-2016		4,000,000		4,369,488
FNMA		6.00			4-1-2021		2,399,794		2,559,085
FNMA		6.50			8-1-2031		828,037		937,202
FNMA		7.00			11-1-2014		23,233		23,505
FNMA		7.84			4-1-2018		4,798,235		5,184,792
FNMA		8.33			7-15-2020		55,334		61,941
FNMA		8.50			7-1-2017		284,590		303,979
FNMA		9.00			12-1-2016		262,111		280,092
FNMA		9.00			2-15-2020		169,472		196,069
FNMA		9.00			10-1-2021		104,806		117,914
FNMA		9.00			6-1-2024		127,584		142,024
FNMA		9.50			12-1-2020		119,575		133,898
FNMA		9.50			3-1-2021		31,414		33,619
FNMA		10.00			3-1-2018		47,946		49,510
FNMA		10.25			9-1-2021		134,088		150,610
FNMA		10.50			10-1-2014		10,170		10,222
FNMA		10.50			8-1-2020		5,701		6,452
FNMA		10.50			4-1-2022		167,042		182,671
FNMA Grantor Trust Series 2000-T6 Class A2		9.50			6-25-2030		656,125		754,270
FNMA Grantor Trust Series 2001-T10 Class A3		9.50			12-25-2041		1,361,190		1,567,795
FNMA Grantor Trust Series 2001-T12 Class A3		9.50			8-25-2041		1,138,686		1,344,128
FNMA Grantor Trust Series 2001-T8 Class A3 ±		3.61			7-25-2041		2,724,653		2,746,101
FNMA Series 1988-4 Class Z		9.25			3-25-2018		60,988		66,796
FNMA Series 1988-9 Class Z		9.45			4-25-2018		34,552		37,703
FNMA Series 1989-30 Class Z		9.50			6-25-2019		178,241		199,402
FNMA Series 1989-49 Class E		9.30			8-25-2019		24,252		26,584
FNMA Series 1990-111 Class Z		8.75			9-25-2020		36,887		40,133
FNMA Series 1990-119 Class J		9.00			10-25-2020		107,332		122,463
FNMA Series 1990-124 Class Z		9.00			10-25-2020		44,501		50,802
FNMA Series 1990-21 Class Z		9.00			3-25-2020		163,033		186,057
FNMA Series 1990-27 Class Z		9.00			3-25-2020		121,703		139,059
FNMA Series 1990-30 Class D		9.75			3-25-2020		50,692		57,932
FNMA Series 1990-77 Class D		9.00			6-25-2020		49,454		55,528
FNMA Series 1991-132 Class Z		8.00			10-25-2021		222,087		255,658
FNMA Series 1992-71 Class X		8.25			5-25-2022		80,910		95,064
FNMA Series 2002-94 Class BK		5.50			1-25-2018		2,182,782		2,302,381
FNMA Series 2002-T1 Class A4		9.50			11-25-2031		1,441,622		1,769,208
FNMA Series 2002-W4 Class A6 ±		3.33			5-25-2042		1,335,129		1,407,098
FNMA Series 2003-125 Class AY		4.00			12-25-2018		3,418,195		3,591,945
FNMA Series 2003-129 Class AP		4.00			1-25-2019		1,015,738		1,050,436
FNMA Series 2003-15 Class CN		5.00			3-25-2018		646,419		685,965
FNMA Series 2003-35 Class BC		5.00			5-25-2018		1,210,423		1,286,432
FNMA Series 2003-35 Class ME		5.00			5-25-2018		640,613		681,131
FNMA Series 2006-74 Class DP %%		5.50			3-25-2035		847,429		867,299
FNMA Series 2006-9 Class BM		6.00			10-25-2033		1,118,090		1,123,557
FNMA Series 2006-M3 Class B		5.10			8-25-2016		634,506		688,356
FNMA Series 2007-2 Class FA ±		0.36			2-25-2037		261,519		261,554
FNMA Series 2007-79 Class A		6.00			10-25-2036		635,268		641,517
FNMA Series 2007-W2 Class 1A1 ±		0.48			3-25-2037		1,667,456		1,662,552

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, 2014 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA Series 2008-36 Class AB		4.50	%		10-25-2022	$	1,234,727	$	1,273,275
FNMA Series 2009-76 Class HA		4.00			1-25-2019		898,475		932,992
FNMA Series 2010-153 Class AB		2.00			11-25-2018		1,814,533		1,847,414
FNMA Series 2010-153 Class BG		2.50			11-25-2018		1,117,183		1,148,246
FNMA Series 2010-39 Class PD		3.00			6-25-2038		964,494		988,604
FNMA Series 2010-39 Class VY		4.50			3-25-2025		2,570,000		2,748,050
FNMA Series 2010-57 Class DQ		3.00			6-25-2025		1,206,528		1,264,248
FNMA Series 2010-9 Class PD		4.50			10-25-2039		1,290,330		1,321,915
FNMA Series 2011-111 Class MA		4.00			7-25-2038		2,068,378		2,134,996
FNMA Series 2011-115 Class DP		3.50			4-25-2034		957,191		988,589
FNMA Series 2011-122 Class A		3.00			12-25-2025		796,510		821,215
FNMA Series 2011-129 Class LG		3.00			3-25-2037		1,336,620		1,388,219
FNMA Series 2011-33 Class GA		3.50			10-25-2028		2,136,384		2,220,295
FNMA Series 2011-35 Class PA		4.00			2-25-2039		1,571,200		1,640,522
FNMA Series 2011-39 Class DA		3.50			7-25-2024		1,125,432		1,165,976
FNMA Series 2011-40 Class CA		3.50			12-25-2028		1,686,145		1,757,933
FNMA Series 2011-42 Class A		3.00			2-25-2024		8,670,036		9,007,448
FNMA Series 2011-56 Class AC		2.00			7-25-2018		635,671		645,457
FNMA Series 2011-99 Class AB		4.00			12-25-2038		514,942		534,531
FNMA Series 2012-94 Class E		3.00			6-25-2022		270,757		283,021
FNMA Series 2013-M5 Class ASQ2		0.59			8-25-2015		4,455,236		4,464,102
FNMA Series G-22 Class ZT		8.00			12-25-2016		307,728		328,630
FNMA Whole Loan Series 2003-W11 Class A1 ±		3.29			6-25-2033		65,213		64,458
FNMA Whole Loan Series 2003-W3 Class 1A4 ±		3.36			8-25-2042		59,008		61,720
FNMA Whole Loan Series 2003-W6 Class 6A ±		3.05			8-25-2042		3,904,926		4,075,279
FNMA Whole Loan Series 2004-W6 Class 1A4		5.50			7-25-2034		3,314,003		3,368,784
GNMA		7.00			6-15-2033		811,556		971,762
GNMA		9.00			11-15-2017		91,646		99,495
GNMA		9.50			11-15-2017		25,635		26,752
GNMA		10.00			10-20-2017		65,650		68,197
GNMA Series 2004-11 Class QE		5.00			12-16-2032		2,094,096		2,170,035
GNMA Series 2009-35 Class PA		5.00			11-16-2032		1,052,578		1,090,725
GNMA Series 2009-74 Class BP		3.50			1-20-2037		873,218		907,696
GNMA Series 2010-10 Class KC		3.00			8-20-2035		1,224,593		1,246,204
GNMA Series 2010-133 Class QK		3.50			9-16-2034		1,412,163		1,474,719
GNMA Series 2010-145 Class UA		1.25			1-20-2036		452,161		453,788
GNMA Series 2010-29 Class PL		3.00			8-20-2036		1,191,817		1,216,936
GNMA Series 2010-32 Class PL %%		3.25			3-20-2036		1,203,246		1,229,435
GNMA Series 2010-43 Class JA		3.00			9-20-2037		1,210,015		1,246,727
GNMA Series 2010-7 Class CK		3.50			1-16-2034		1,002,894		1,029,353
GNMA Series 2010-84 Class PA		2.00			2-20-2033		167,994		168,993
GNMA Series 2011-29 Class AG		3.00			8-16-2037		545,357		561,508
Total Agency Securities (Cost $257,076,398)									259,493,852
Asset-Backed Securities: 9.85%
CNH Equipment Trust Series 2012-C Class A2		0.44			2-16-2016		1,290,282		1,290,430
CNH Equipment Trust Series 2013-A Class A2		0.44			7-15-2016		3,571,222		3,571,536
CNH Equipment Trust Series 2013-C Class A2		0.63			1-17-2017		6,409,801		6,418,038
Countrywide Asset-Backed Certificates Series 2004-AB2 Class A3 ±		0.98			5-25-2036		1,141,919		1,134,061
DBRR Trust Series 2012-EZ1 Class A 144A		0.95			9-25-2045		1,324,002		1,324,072

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

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Asset-Backed Securities (continued)
Ford Credit Auto Lease Trust Series 2012-A Class A3		0.85	%		1-15-2015	$	4,511,018	$	4,513,634
Ford Credit Auto Lease Trust Series 2012-B Class A2		0.54			11-15-2014		512,980		513,044
Ford Credit Auto Owner Trust Series 2012-D Class A2		0.40			9-15-2015		20,902		20,902
Ford Credit Auto Owner Trust Series 2013-A Class A2		0.38			11-15-2015		1,688,620		1,689,067
Ford Credit Auto Owner Trust Series 2014-A Class A2		0.48			11-15-2016		14,000,000		14,009,618
GE Equipment LLC Series 2013-1 Class A2		0.64			3-22-2016		5,000,000		5,003,540
GE Equipment LLC Series 2013-2 Class A2		0.61			6-24-2016		8,750,000		8,756,510
GE Equipment Small Ticket LLC Series 2013-1A Class A2 144A		0.73			1-25-2016		10,800,000		10,815,822
GE Equipment Transportation LLC Series 2013-1 Class A2		0.50			11-24-2015		4,402,563		4,402,193
Honda Auto Receivables Owner Trust 2014-1 Class A2		0.41			9-21-2016		7,300,000		7,299,102
Honda Auto Receivables Owner Trust Series 2012-4 Class A2		0.40			4-20-2015		1,174,003		1,174,245
Hyundai Auto Lease Securitization Trust Series 2013-A Class A2 144A		0.51			9-15-2015		4,552,311		4,553,818
Hyundai Auto Lease Securitization Trust Series 2013-A Class A3 144A		0.66			6-15-2016		6,407,000		6,416,220
Hyundai Auto Lease Securitization Trust Series 2013-B Class A2 144A		0.75			3-15-2016		10,600,000		10,622,896
Hyundai Auto Receivables Trust Hart Series 2013-A Class A2		0.40			12-15-2015		2,909,722		2,910,938
Mercedes-Benz Auto Lease Trust Series 2013-A Class A2		0.49			6-15-2015		11,641,696		11,644,793
Mercedes-Benz Auto Lease Trust Series 2013-B Class A2		0.53			9-15-2015		12,000,000		12,009,924
Mercedes-Benz Auto Receivables Trust Series 2012-1 Class A2		0.37			3-16-2015		628,888		628,922
Nissan Auto Lease Trust Series 2013-A Class A2A		0.45			9-15-2015		7,634,556		7,636,976
Nissan Auto Receivables Owner Trust Series 2012-B Class A2		0.39			4-15-2015		1,001,829		1,001,865
Porsche Innovative Lease Owner Pilot Trust Series 2013-1 Class A2 144A		0.54			1-22-2016		8,000,000		8,007,504
Toyota Auto Receivables Owner Trust Series 2013-B Class A2		0.48			2-15-2016		7,000,000		7,006,013
Volkswagen Auto Lease Trust Series 2013-A Class A2A		0.63			12-21-2015		5,035,819		5,043,282
Volkswagen Auto Lease Trust Series 2014-A Class A2A		0.52			10-20-2016		11,055,000		11,083,997
Volvo Financial Equipment LLC Series 2013-1A Class A2 144A		0.53			11-16-2015		5,165,179		5,166,305
World Omni Automobile Lease Trust Series 2013-A Class A2A		0.73			5-16-2016		7,970,000		7,989,359
Total Asset-Backed Securities (Cost $173,509,641)									173,658,626
Corporate Bonds and Notes: 40.91%
Consumer Discretionary: 4.85%
Automobiles: 0.46%
Harley-Davidson Financial Services Incorporated 144A		1.15			9-15-2015		2,500,000		2,510,553
Harley-Davidson Financial Services Incorporated 144A		3.88			3-15-2016		1,500,000		1,585,377
Nissan Motor Acceptance Corporation ±144A%%		0.79			3-3-2017		4,000,000		3,994,000
									8,089,930
Leisure Products: 0.29%
Hasbro Incorporated		6.13			5-15-2014		5,000,000		5,053,530
Media: 3.56%
Cox Communications Incorporated		5.50			10-1-2015		9,000,000		9,646,092
DIRECTV Holdings LLC		3.55			3-15-2015		3,000,000		3,085,170
DIRECTV Holdings LLC		4.75			10-1-2014		7,000,000		7,169,701
Interpublic Group of Companies Incorporated		6.25			11-15-2014		8,243,000		8,521,201
News America Incorporated		7.60			10-11-2015		5,618,000		6,183,047
News America Incorporated		8.00			10-17-2016		827,000		973,507
Omnicom Group Incorporated		5.90			4-15-2016		7,000,000		7,702,065
Tcm Sub LLC 144A		3.55			1-15-2015		9,071,000		9,300,342
Thompson Reuters Corporation		1.30			2-23-2017		3,000,000		2,997,753
Viacom Incorporated		6.25			4-30-2016		6,500,000		7,227,656
									62,806,534

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, 2014 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Multiline Retail: 0.54%
Macy’s Retail Holdings Incorporated		5.75	%		7-15-2014	$	6,000,000	$	6,110,322
Macy’s Retail Holdings Incorporated		5.90			12-1-2016		3,000,000		3,357,882
									9,468,204
Consumer Staples: 2.20%
Beverages: 0.42%
Constellation Brands Incorporated		7.25			9-1-2016		6,600,000		7,474,500
Food & Staples Retailing: 0.81%
Safeway Incorporated		5.63			8-15-2014		6,600,000		6,723,004
Tyson Foods Incorporated		6.60			4-1-2016		6,760,000		7,512,023
									14,235,027
Food Products: 0.43%
Conagra Foods Incorporated		5.88			4-15-2014		5,500,000		5,534,007
Kraft Foods Group Incorporated		4.13			2-9-2016		2,000,000		2,124,916
									7,658,923
Household Products: 0.54%
Newell Rubbermaid Incorporated		2.00			6-15-2015		9,360,000		9,492,706
Energy: 5.36%
Energy Equipment & Services: 0.35%
Enterprise Products Operating LLC		3.70			6-1-2015		6,000,000		6,225,300
Oil, Gas & Consumable Fuels: 5.01%
Boardwalk Pipelines LP		5.88			11-15-2016		9,000,000		9,842,715
Colorado Interstate Gas Company		5.95			3-15-2015		8,450,000		8,863,087
Energy Transfer Partners LP		5.95			2-1-2015		3,970,000		4,151,064
Enterprise Products Operating LLC		1.25			8-13-2015		3,000,000		3,023,523
Magellan Midstream Partners LP		6.45			6-1-2014		6,929,000		7,028,577
Marathon Petroleum Corporation		3.50			3-1-2016		9,029,000		9,481,317
Maritimes & NE Pipeline Company 144A		7.50			5-31-2014		2,468,400		2,499,517
Nabors Industries Incorporated 144A		2.35			9-15-2016		10,000,000		10,239,820
ONEOK Partners LP		3.25			2-1-2016		10,000,000		10,427,210
Spectra Energy Capital LLC		5.67			8-15-2014		6,996,000		7,155,236
Valero Energy Corporation		4.75			4-1-2014		5,125,000		5,140,759
Williams Partners LP		3.80			2-15-2015		6,000,000		6,173,958
Williams Partners LP		7.25			2-1-2017		3,700,000		4,275,587
									88,302,370
Financials: 13.86%
Banks: 0.84%
Bank One Corporation		4.90			4-30-2015		4,260,000		4,462,942
US Bank NA ±		3.78			4-29-2020		10,000,000		10,341,100
									14,804,042

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

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 15

Security name	Interest rate			Maturity date		Principal		Value
Capital Markets: 1.21%
Goldman Sachs Group Incorporated		5.13	%		1-15-2015	$	3,000,000	$	3,116,844
Goldman Sachs Group Incorporated		5.63			1-15-2017		6,261,000		6,939,511
Merrill Lynch & Company		5.30			9-30-2015		1,600,000		1,705,526
Morgan Stanley		1.75			2-25-2016		5,500,000		5,594,298
Morgan Stanley		6.00			4-28-2015		3,660,000		3,880,731
									21,236,910
Consumer Finance: 4.19%
American Express Company		7.25			5-20-2014		6,000,000		6,085,716
Capital One Financial Corporation		1.00			11-6-2015		2,315,000		2,321,457
Capital One Financial Corporation		7.38			5-23-2014		7,000,000		7,105,819
Ford Motor Credit Company LLC		3.88			1-15-2015		5,000,000		5,138,270
Ford Motor Credit Company LLC		4.21			4-15-2016		5,000,000		5,322,060
Ford Motor Credit Company LLC		12.00			5-15-2015		1,000,000		1,131,531
General Motors Financial Company Incorporated		2.75			5-15-2016		9,890,000		10,082,855
Harley-Davidson Funding Corporation 144A		5.75			12-15-2014		4,866,000		5,056,163
HSBC Finance Corporation		5.50			1-19-2016		2,665,000		2,886,789
Hyundai Capital America Company 144A		3.75			4-6-2016		7,331,000		7,700,761
Nisource Finance Corporation		5.40			7-15-2014		4,797,000		4,879,902
SLM Corporation		3.88			9-10-2015		3,500,000		3,619,620
SLM Corporation		6.25			1-25-2016		3,465,000		3,742,200
Western Union Company ±		1.23			8-21-2015		8,830,000		8,895,836
									73,968,979
Diversified Financial Services: 2.70%
Bank of America Corporation		6.05			5-16-2016		8,000,000		8,803,560
Citigroup Incorporated		4.88			5-7-2015		5,589,000		5,844,635
Citigroup Incorporated		6.38			8-12-2014		3,556,000		3,647,738
JPMorgan Chase & Company		1.35			2-15-2017		5,000,000		5,020,790
PNC Funding Corporation		5.25			11-15-2015		9,221,000		9,890,426
Toll Road Investors Partnership II 144A¤		0.00			2-15-2016		6,000,000		5,549,292
UBS AG Stamford Connecticut		5.88			7-15-2016		8,000,000		8,887,544
									47,643,985
Insurance: 1.92%
American International Group Incorporated		5.05			10-1-2015		1,675,000		1,785,957
MetLife Insurance Company 144A		7.70			11-1-2015		8,500,000		9,358,109
Prudential Insurance Company 144A		8.10			7-15-2015		11,090,000		11,926,996
Unum Group 144A		6.85			11-15-2015		7,425,000		8,086,775
W.R. Berkley Corporation		5.60			5-15-2015		2,620,000		2,755,572
									33,913,409
REITs: 3.00%
American Tower Corporation		4.63			4-1-2015		7,300,000		7,593,372
ARC Properties Operating Partnership LP 144A		2.00			2-6-2017		8,755,000		8,760,927
Camden Property Trust		5.00			6-15-2015		6,490,000		6,831,374
Digital Realty Trust LP		4.50			7-15-2015		8,210,000		8,526,627
Health Care REIT Incorporated		3.63			3-15-2016		5,470,000		5,757,366
Health Care REIT Incorporated		6.20			6-1-2016		3,000,000		3,337,299
Liberty Property LP		5.65			8-15-2014		2,750,000		2,807,899
Realty Income Corporation		5.50			11-15-2015		3,833,000		4,125,316
Regency Centers LP		5.25			8-1-2015		4,788,000		5,062,860
									52,803,040

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, 2014 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Health Care: 2.39%
Health Care Equipment & Supplies: 0.23%
CareFusion Corporation		5.13	%		8-1-2014	$	4,000,000	$	4,073,988
Health Care Providers & Services: 1.53%
Cardinal Health Incorporated		5.80			10-15-2016		4,500,000		5,045,184
Express Scripts Holding Company		2.10			2-12-2015		8,160,000		8,273,767
Express Scripts Holding Company		2.75			11-21-2014		1,745,000		1,773,105
Providence Health & Services Company ±		1.05			10-1-2016		12,000,000		11,936,352
									27,028,408
Life Sciences Tools & Services: 0.63%
Life Technologies Corporation		4.40			3-1-2015		5,830,000		6,040,358
Thermo Fisher Scientific Incorporated		1.30			2-1-2017		5,000,000		5,000,535
									11,040,893
Industrials: 2.63%
Aerospace & Defense: 0.52%
L-3 Communications Corporation		3.95			11-15-2016		8,590,000		9,143,273
Air Freight & Logistics: 0.19%
Fedex Express Corporation 1998 Pass Through Certificates		7.02			1-15-2016		3,295,054		3,459,807
Commercial Services & Supplies: 0.64%
Penske Truck Leasing Company LP 144A		2.50			7-11-2014		2,000,000		2,013,248
Penske Truck Leasing Company LP 144A		2.50			3-15-2016		2,720,000		2,797,743
Penske Truck Leasing Company LP 144A		3.13			5-11-2015		6,310,000		6,486,087
									11,297,078
Machinery: 0.50%
CNH Capital LLC		3.25			2-1-2017		5,240,000		5,318,600
CNH Capital LLC		3.88			11-1-2015		3,355,000		3,451,456
									8,770,056
Road & Rail: 0.78%
Erac USA Finance LLC 144A		1.40			4-15-2016		1,024,000		1,032,076
Erac USA Finance LLC 144A		2.75			3-15-2017		750,000		773,012
Erac USA Finance LLC 144A		5.90			11-15-2015		1,020,000		1,105,531
GATX Corporation		4.75			5-15-2015		5,442,000		5,699,554
Ryder System Incorporated		3.15			3-2-2015		5,000,000		5,123,295
									13,733,468
Information Technology: 2.38%
Electronic Equipment, Instruments & Components: 0.97%
Agilent Technologies Incorporated		5.50			9-14-2015		7,456,000		7,991,848
Arrow Electronics Incorporated		3.38			11-1-2015		8,800,000		9,105,175
									17,097,023
Software: 0.35%
CA Incorporated		6.13			12-1-2014		6,000,000		6,243,906

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

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 17

Security name	Interest rate			Maturity date		Principal		Value
Technology Hardware, Storage & Peripherals: 1.06%
Hewlett-Packard Company		6.13	%		3-1-2014	$	9,257,000	$	9,257,000
Xerox Corporation		6.40			3-15-2016		2,950,000		3,262,591
Xerox Corporation		8.25			5-15-2014		6,000,000		6,085,440
									18,605,031
Materials: 1.04%
Chemicals: 0.57%
Eastman Chemical Company		3.00			12-15-2015		9,760,000		10,120,368
Paper & Forest Products: 0.47%
Georgia-Pacific LLC		7.70			6-15-2015		7,570,000		8,240,604
Telecommunication Services: 2.62%
Diversified Telecommunication Services: 2.62%
Alltel Corporation		7.00			3-15-2016		1,000,000		1,119,037
AT&T Incorporated		0.88			2-13-2015		6,976,000		7,005,446
Crown Castle Towers LLC 144A		3.21			8-15-2035		8,061,000		8,217,448
Qwest Corporation		7.50			10-1-2014		8,609,000		8,922,325
SBA Tower Trust 144A		4.25			4-15-2040		10,090,000		10,203,482
Verizon Communications Incorporated		0.70			11-2-2015		2,325,000		2,326,862
Verizon Communications Incorporated		2.50			9-15-2016		8,000,000		8,302,600
									46,097,200
Utilities: 3.58%
Electric Utilities: 2.44%
Ameren Corporation		8.88			5-15-2014		8,000,000		8,127,688
Dayton Power & Light Company 144A		1.88			9-15-2016		9,000,000		9,161,811
Exelon Corporation		4.90			6-15-2015		2,000,000		2,100,824
ITC Holdings Corporation 144A		5.88			9-30-2016		7,000,000		7,725,788
LG&E & KU Energy LLC		2.13			11-15-2015		7,635,000		7,782,638
Nextera Energy Capital Holdings Incorporated		1.34			9-1-2015		7,000,000		7,060,802
PECO Energy Company		5.00			10-1-2014		1,000,000		1,025,630
									42,985,181
Gas Utilities: 0.33%
Atmos Energy Corporation		4.95			10-15-2014		5,640,000		5,789,466
Multi-Utilities: 0.81%
CMS Energy Corporation		4.25			9-30-2015		6,901,000		7,271,411
DTE Energy Company		6.35			6-1-2016		6,250,000		6,980,768
									14,252,179
Total Corporate Bonds and Notes (Cost $718,725,713)									721,155,318
Municipal Obligations: 5.55%
California: 1.63%
California PCFA Solid Waste Disposal Series A (Resource Recovery Revenue) ±144A		0.55			8-1-2023		14,000,000		14,000,000
California PCFA Waste Management Services Incorporated Series A1 (Resource Recovery Revenue) ±		1.88			4-1-2025		4,000,000		4,042,680
California Public Works Board Lease Series E (Miscellaneous Revenue)		3.68			12-1-2015		5,000,000		5,183,800
Irvine Ranch CA Water District (Water & Sewer Revenue)		2.39			3-15-2014		5,535,000		5,539,483
									28,765,963

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, 2014 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Connecticut: 0.44%
Connecticut Series A (GO)		5.46	%		3-1-2019	$	7,090,000	$	7,699,315
Florida: 0.16%
Miami-Dade County FL IDA Waste Management Incorporated Florida Project (Resource Recovery Revenue) ±		2.63			8-1-2023		2,800,000		2,819,068
Illinois: 0.58%
Illinois (GO)		4.42			1-1-2015		9,865,000		10,174,169
Michigan: 0.13%
Michigan Housing Development Authority Series A (Housing Revenue) ±		0.81			12-1-2014		2,300,000		2,300,230
Minnesota: 0.08%
Minnesota Tobacco Securitization Authority Series A (Tobacco Revenue)		2.64			3-1-2014		1,500,000		1,500,285
New York: 0.67%
Dutchess County NY Local Development Corporation (Health Revenue)		1.35			7-1-2014		1,775,000		1,779,296
Suffolk County NY TAN Series I (GO)		1.50			8-14-2014		10,000,000		10,053,900
									11,833,196
Pennsylvania: 0.46%
Bucks County PA IDA (Resource Recovery Revenue) ±		1.38			12-1-2022		1,000,000		1,002,990
Pennsylvania EDFA Waste Management Incorporated (Resource Recovery Revenue) ±		0.50			8-1-2045		4,000,000		4,000,000
Philadelphia PA School District Series C (GO, AGM Insured)		4.66			7-1-2014		3,145,000		3,183,023
									8,186,013
South Carolina: 0.63%
South Carolina Jobs EDA Waste Management South Carolina Incorporated Project (Resource Recovery Revenue) ±		1.88			11-1-2016		2,500,000		2,516,925
South Carolina Public Service Authority Series D (GO) ±		1.03			6-1-2015		8,500,000		8,537,740
									11,054,665
Texas: 0.77%
Port Arthur TX Navigation District Jefferson County Environmental Facilities Motiva Enterprises LLC Project Series D (Industrial Development Revenue) §		0.28			11-1-2040		1,500,000		1,500,000
Port Arthur TX Navigation District Motiva Enterprises Project Series B (Resource Recovery Revenue) §		0.28			12-1-2039		12,000,000		12,000,000
									13,500,000
Total Municipal Obligations (Cost $97,508,229)									97,832,904
Non-Agency Mortgage Backed Securities: 10.14%
Bank of America Commercial Mortgage Incorporated Series 2004-3 Class A5 ±		5.35			6-10-2039		3,020,500		3,026,284
Bank of America Commercial Mortgage Incorporated Series 2004-5 Class A4 ±		4.94			11-10-2041		4,832,880		4,879,073
Bank of America Commercial Mortgage Incorporated Series 2007-3 Class A1A ±		5.62			6-10-2049		1,208,596		1,317,016
Bank of America Mortgage Securities Series 2002-K Class 3A1 ±		2.63			10-20-2032		2,560		2,603
Bear Stearns Commercial Mortgage Securities Incorporated Series 2005-PW10 Class A4 ±		5.41			12-11-2040		7,430,805		7,827,721
Bear Stearns Commercial Mortgage Securities Incorporated Series 2005-PWR 9 Class A4A		4.87			9-11-2042		5,850,000		6,118,609

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

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 19

Security name	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage Backed Securities (continued)
Bear Stearns Commercial Mortgage Securities Incorporated Series 2005-PWR-7 Class A3 ±		5.12	%		2-11-2041	$	5,270,000	$	5,437,702
Bear Stearns Commercial Mortgage Securities Incorporated Series 2005-PWR8 Class A4		4.67			6-11-2041		6,178,136		6,410,557
Bear Stearns Commercial Mortgage Securities Incorporated Series 2005-T18 Class A4 ±		4.93			2-13-2042		5,589,675		5,766,247
Bear Stearns Commercial Mortgage Securities Incorporated Series 2007-PWR15 Class A4		5.33			2-11-2044		2,606,376		2,842,444
Citigroup Commercial Mortgage Trust Series 2004-C1 Class A4 ±		5.35			4-15-2040		2,786,859		2,798,021
Citigroup/Deutsche Bank Commercial Mortgage Trust Pass-Through Certificate Series 2005-CD1 Class A4 ±		5.22			7-15-2044		3,675,000		3,879,543
Collateralized Mortgage Obligation Trust Series 66 Class Z		8.00			9-20-2021		93,803		103,801
Commercial Mortgage Trust Pass-Through Ceriificate Series 2005-C6 Class A5A ±		5.12			6-10-2044		5,578,231		5,851,782
Commercial Mortgage Trust Series 2010-C1 Class A1 144A		3.16			7-10-2046		8,321,921		8,549,018
Commercial Mortgage Trust Series 2013-FL3 Class B ±144A		2.15			10-13-2028		9,000,000		9,014,373
Countrywide Home Loans Mortgage Pass-Through Trust Series 2001-HYB1 Class 1A1 ±		2.08			6-19-2031		625,680		626,957
Countrywide Home Loans Mortgage Pass-Through Trust Series 2001-HYB1 Class 2A1 ±		1.93			6-19-2031		285,418		286,799
Countrywide Home Loans Mortgage Pass-Through Trust Series 2004-20 Class 3A1 ±		2.27			9-25-2034		210,425		181,445
Credit Suisse First Boston Mortgage Securities Corporation Series 2004-C3 Class A5 ±		5.11			7-15-2036		2,671,217		2,693,263
Credit Suisse First Boston Mortgage Securities Corporation Series 2005-C3 Class A4		4.69			7-15-2037		5,747,000		5,928,691
Credit Suisse First Boston Mortgage Securities Corporation Series 2005-C5 Class A4 ±		5.10			8-15-2038		2,850,000		2,979,732
Credit Suisse First Boston Mortgage Securities Corporation Series 2006-C4 Class A3		5.47			9-15-2039		5,155,542		5,614,035
Credit Suisse Mortgage Capital Certificates Series 2006-C5 Class A3		5.31			12-15-2039		8,958,064		9,755,466
DLJ Mortgage Acceptance Corporation Series 1990-2 Class A ±		3.34			1-25-2022		107,035		109,399
DLJ Mortgage Acceptance Corporation Series 1991-3 Class A1 ±		1.93			1-25-2021		34,742		35,396
EquiFirst Mortgage Loan Trust Series 2003-2 Class 3A3 ±		1.28			9-25-2033		731,378		701,307
GE Capital Commercial Mortgage Corporation Series 2004-C3 Class A4 ±		5.19			7-10-2039		2,860,820		2,883,703
GE Capital Commercial Mortgage Corporation Series 2005-C3 Class A7A ±		4.97			7-10-2045		5,430,000		5,672,965
GSMPS Mortgage Loan Trust Series 1998-1 Class A ±144A		8.00			9-19-2027		88,035		89,868
Housing Securities Incorporated Series 1992-8 Class E ±		3.56			6-25-2024		142,544		143,975
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2006-LDP6 Class A4 ±		5.48			4-15-2043		1,752,503		1,887,549
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2006-LDP7 Class A4 ±		5.87			4-15-2045		2,200,000		2,403,773
Lehman Brothers UBS Commercial Mortgage Trust Series 2005-C1 Class A4		4.74			2-15-2030		5,083,167		5,216,270
Lehman Brothers UBS Commercial Mortgage Trust Series 2005-C5 Class 4		4.95			9-15-2030		4,838,066		5,049,015
Lehman Brothers UBS Commercial Mortgage Trust Series 2007-C2 Class A3		5.43			2-15-2040		2,941,736		3,252,078
Master Mortgages Trust Series 2002-3 Class 4A1 ±		2.50			10-25-2032		19,635		19,753
Morgan Stanley Capital I Series 2005-IQ10 Class A4A ±		5.23			9-15-2042		5,905,784		6,190,266
Morgan Stanley Capital I Series 2005-T19 Class A4A		4.89			6-12-2047		4,828,715		5,040,222
Morgan Stanley Capital I Series 2007-IQ Class A4		5.81			12-12-2049		7,800,000		8,752,302
Morgan Stanley Dean Witter Capital I Series 2005-IQ9 Class A5		4.70			7-15-2056		919,389		936,906
Morgan Stanley Mortgage Trust Series 35 Class 2 ±(w)(i)		15,333.50			4-20-2021		16		2,680
NCUA Guaranteed Notes Series 2010-C1 Class A1		1.60			10-29-2020		5,831,414		5,876,526
NCUA Guaranteed Notes Series 2010-C1 Class APT		2.65			10-29-2020		4,840,023		4,992,484
NCUA Guaranteed Notes Series 2010-R1 Class 2A		1.84			10-7-2020		688,442		694,434
Prudential Home Mortgage Securities Series 1988-1 Class A ±		2.43			4-25-2018		21,350		21,746
Resecuritization Mortgage Trust Series 1998-B Class A ±144A		0.40			4-26-2021		9,822		9,233
Salomon Brothers Mortgage Securities VII Series 1990-2 Class A ±		2.24			11-25-2020		409,869		419,787
SCG Trust Series 2013-SRP1 Class A ±144A		1.55			11-15-2026		7,500,000		7,507,763
Springleaf Mortgage Loan Trust Series 2012-2A Class A ±144A		2.22			10-25-2057		2,541,616		2,587,538
Structured Asset Mortgage Investments Incorporated Series 2001-4 Class A2 ±		9.54			10-25-2024		148,873		156,040

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

20 Wells Fargo Advantage Ultra Short-Term Income Fund Portfolio of investments—February 28, 2014 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage Backed Securities (continued)
Structured Asset Securities Corporation Series 1998-2 Class A ±		0.68	%		2-25-2028	$	268,125	$	263,931
Terwin Mortgage Trust Series 2004-21HE Class 1A1 ±		1.12			12-25-2034		34,215		32,684
UBS Barclays Commercial Mortgage Trust Series 2012-C2 Class A1		1.01			5-10-2063		4,887,830		4,908,950
Wilshire Funding Corporation Series 1996-3 Class M2 ±		5.76			8-25-2032		160,222		157,168
Wilshire Funding Corporation Series 1996-3 Class M3 ±		5.76			8-25-2032		143,574		137,968
Wilshire Funding Corporation Series 1998-2 Class M1 ±		2.00			12-28-2037		695,373		638,021
Total Non-Agency Mortgage Backed Securities (Cost $178,558,191)									178,682,882
Yankee Corporate Bonds and Notes: 14.41%
Consumer Discretionary: 0.58%
Auto Components: 0.23%
Autoliv Incorporated		3.85			4-30-2014		4,000,000		4,008,144
Diversified Consumer Services: 0.35%
Anglo American Capital Company 144A		9.38			4-8-2014		6,130,000		6,177,550
Consumer Staples: 1.23%
Food & Staples Retailing: 0.82%
FBG Finance Limited 144A		5.13			6-15-2015		5,900,000		6,222,022
Tesco plc 144A		2.70			1-5-2017		8,000,000		8,281,992
									14,504,014
Food Products: 0.41%
Tate & Lyle International Finance plc 144A		5.00			11-15-2014		7,000,000		7,193,830
Energy: 2.15%
Energy Equipment & Services: 0.50%
Ensco plc		3.25			3-15-2016		8,380,000		8,774,597
Oil, Gas & Consumable Fuels: 1.65%
Husky Energy Incorporated		5.90			6-15-2014		8,640,000		8,770,395
Petrobras International Finance Company		2.88			2-6-2015		7,000,000		7,087,500
Petroleos Mexicanos Company		4.88			3-15-2015		6,930,000		7,198,538
Woodside Finance Limited 144A		8.13			3-1-2014		6,000,000		6,000,000
									29,056,433
Financials: 6.74%
Banks: 4.59%
ABN AMRO Bank NV 144A		1.38			1-22-2016		9,815,000		9,912,914
ANZ New Zealand International Limited 144A		1.13			3-24-2016		4,000,000		4,015,532
Bank Nederlandse Gemeenten		5.00			5-16-2014		14,000,000		14,132,636
Bank of Montreal 144A		1.30			10-31-2014		5,500,000		5,538,517
Banque Federative du Credit Mutuel SA 144A		1.70			1-20-2017		8,150,000		8,174,450
ING Bank NV 144A		1.38			3-7-2016		8,000,000		8,036,648
Macquarie Bank Limited 144A		3.45			7-27-2015		5,000,000		5,171,820
Nordea Eiendomskreditt 144A		1.88			4-7-2014		12,500,000		12,518,250
Royal Bank of Scotland plc		3.95			9-21-2015		3,000,000		3,140,145
Westpac Banking Corporation 144A		5.30			10-15-2015		4,040,000		4,296,677
Xstrata Finance Canada Limited 144A		2.85			11-10-2014		6,000,000		6,074,928
									81,012,517

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

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 21

Security name	Interest rate			Maturity date		Principal		Value
Diversified Financial Services: 0.82%
Abbey National Treasury Services plc 144A		3.88	%		11-10-2014	$	4,400,000	$	4,501,411
WPP Finance		8.00			9-15-2014		9,533,000		9,900,821
									14,402,232
Insurance: 1.03%
Allied World Assurance Company Holdings AG		7.50			8-1-2016		9,252,000		10,570,105
Endurance Specialty Holdings Limited		6.15			10-15-2015		7,130,000		7,655,067
									18,225,172
Thrifts & Mortgage Finance: 0.30%
Korea Finance Corporation		3.25			9-20-2016		5,000,000		5,254,365
Information Technology: 0.19%
Semiconductors & Semiconductor Equipment: 0.19%
TSMC Global Limited 144A		0.95			4-3-2016		3,385,000		3,352,446
Materials: 1.08%
Construction Materials: 0.46%
Lafarge SA 144A		6.20			7-9-2015		7,720,000		8,163,900
Metals & Mining: 0.62%
ArcelorMittal		9.50			2-15-2015		5,450,000		5,845,125
Rio Tinto Finance USA Limited		8.95			5-1-2014		5,000,000		5,066,015
									10,911,140
Telecommunication Services: 1.78%
Diversified Telecommunication Services: 1.55%
Deutsche Telekom International Finance Company 144A		3.13			4-11-2016		10,290,000		10,753,914
Rogers Cable Incorporated		5.50			3-15-2014		2,000,000		2,002,828
Telefonica Emisiones SAU		6.42			6-20-2016		7,500,000		8,345,948
Telefonos de Mexico SA		5.50			1-27-2015		6,000,000		6,210,000
									27,312,690
Wireless Telecommunication Services: 0.23%
America Movil SAB de CV ±		1.24			9-12-2016		4,000,000		4,053,908
Utilities: 0.66%
Independent Power & Renewable Electricity Producers: 0.66%
TransAlta Corporation		4.75			1-15-2015		11,217,000		11,587,183
Total Yankee Corporate Bonds and Notes (Cost $252,572,355)									253,990,121
	Yield					Shares
Short-Term Investments: 3.49%
Investment Companies: 3.39%
Wells Fargo Advantage Cash Investment Money Market Fund, Select Class (l)(u)##		0.07					59,839,038		59,839,038

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

22 Wells Fargo Advantage Ultra Short-Term Income Fund Portfolio of investments—February 28, 2014 (unaudited)

Security name	Yield			Maturity date		Principal		Value
U.S. Treasury Securities: 0.10%
U.S. Treasury Bill (z)#		0.02	%		3-20-2014	$	1,750,000	$	1,749,976
Total Short-Term Investments (Cost $61,588,989)									61,589,014

Total investments in securities
(Cost $1,739,539,516)*	99.07	%		1,746,402,717
Other assets and liabilities, net	0.93			16,430,246
Total net assets	100.00	%	$	1,762,832,963

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.

%% Security issued on a when-issued basis.

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

§ Security is subject to a demand feature which reduces the effective maturity.

(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 amandatory 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.

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

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

* Cost for federal income tax purposes is $1,739,078,990 and unrealized appreciation (depreciation) consists of:

Gross unrealized appreciation	$	9,722,053
Gross unrealized depreciation		(2,398,326	)
Net unrealized appreciation	$	7,323,727

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

Statement of assets and liabilities—February 28, 2014 (unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 23

Assets
Investments
In unaffiliated securities, at value (see cost below)	$	1,686,563,679
In affiliated securities, at value (see cost below)		59,839,038
Total investments, at value (see cost below)		1,746,402,717
Cash		3,354,221
Receivable for investments sold		1,420,000
Principal paydown receivable		3,706,435
Receivable for Fund shares sold		8,723,182
Receivable for interest		11,250,293
Receivable for daily variation margin on open futures contracts		202,518
Prepaid expenses and other assets		89,197
Total assets		1,775,148,563
Liabilities
Dividends payable		835,652
Payable for investments purchased		6,345,826
Payable for Fund shares redeemed		4,361,728
Advisory fee payable		295,568
Distribution fees payable		6,421
Due to other related parties		238,043
Accrued expenses and other liabilities		232,362
Total liabilities		12,315,600
Total net assets	$	1,762,832,963
NET ASSETS CONSIST OF
Paid-in capital	$	1,866,290,411
Overdistributed net investment income		(1,016,381	)
Accumulated net realized losses on investments		(108,916,467	)
Net unrealized gains on investments		6,475,400
Total net assets	$	1,762,832,963
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE1
Net assets – Class A	$	181,030,577
Shares outstanding – Class A		21,189,773
Net asset value per share – Class A		$8.54
Maximum offering price per share – Class A2		$8.71
Net assets – Class C	$	10,428,880
Shares outstanding – Class C		1,221,834
Net asset value per share – Class C		$8.54
Net assets – Administrator Class	$	116,036,206
Shares outstanding – Administrator Class		13,632,159
Net asset value per share – Administrator Class		$8.51
Net assets – Institutional Class	$	1,130,915,287
Shares outstanding – Institutional Class		132,446,202
Net asset value per share – Institutional Class		$8.54
Net assets – Investor Class	$	324,422,013
Shares outstanding – Investor Class		37,962,698
Net asset value per share – Investor Class		$8.55
Investments in unaffiliated securities, at cost	$	1,679,700,478
Investments in affiliated securities, at cost	$	59,839,038
Total investments, at cost	$	1,739,539,516

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.

24 Wells Fargo Advantage Ultra Short-Term Income Fund Statement of operations—six months ended February 28, 2014 (unaudited)

Investment income
Interest**	$	11,842,698
Income from affiliated securities		42,620
Securities lending income, net		1,546
Total investment income		11,886,864
Expenses
Advisory fee		2,679,692
Administration fees
Fund level		431,560
Class A		134,438
Class C		8,765
Administrator Class		62,815
Institutional Class		438,123
Investor Class		309,983
Shareholder servicing fees
Class A		210,060
Class C		13,696
Administrator Class		156,650
Investor Class		407,633
Distribution fees
Class C		41,088
Custody and accounting fees		46,078
Professional fees		36,397
Registration fees		50,018
Shareholder report expenses		52,269
Trustees’ fees and expenses		6,056
Other fees and expenses		17,065
Total expenses		5,102,386
Less: Fee waivers and/or expense reimbursements		(981,524	)
Net expenses		4,120,862
Net investment income		7,766,002
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		1,724,421
Futures transactions		(4,722,183	)
Net realized losses on investments		(2,997,762	)
Net change in unrealized gains (losses) on:
Unaffiliated securities		6,550,570
Futures transactions		72,725
Net change in unrealized gains (losses) on investments		6,623,295
Net realized and unrealized gains (losses) on investments		3,625,533
Net increase in net assets resulting from operations	$	11,391,535
** Net of foreign interest withholding taxes in the amount of		$578

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

Statement of changes in net assets Wells Fargo Advantage Ultra Short-Term Income Fund 25

	Six months ended February 28, 2014 (unaudited)						Year ended August 31, 2013
Operations
Net investment income				$	7,766,002					$	11,503,650
Net realized losses on investments					(2,997,762	)					(234,972	)
Net change in unrealized gains (losses) on investments					6,623,295						(3,619,071	)
Net increase in net assets resulting from operations					11,391,535						7,649,607
Distributions to shareholders from
Net investment income
Class A					(628,048	)					(1,173,593	)
Class C					(2,957	)					(5,744	)
Administrator Class					(562,652	)					(902,787	)
Institutional Class					(6,025,382	)					(7,274,377	)
Investor Class					(1,169,750	)					(2,478,423	)
Total distributions to shareholders					(8,388,789	)					(11,834,924	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		9,128,557			77,934,305			19,035,708			162,795,928
Class C		98,403			839,441			361,139			3,086,464
Administrator Class		7,906,377			67,258,913			19,412,067			165,243,754
Institutional Class		102,372,291			873,555,924			151,122,150			1,291,229,934
Investor Class		5,045,081			43,088,037			11,705,065			100,154,971
					1,062,676,620						1,722,511,051
Reinvestment of distributions
Class A		72,159			616,019			134,732			1,152,206
Class C		333			2,841			655			5,604
Administrator Class		35,176			299,156			66,524			566,898
Institutional Class		302,703			2,582,951			455,243			3,890,255
Investor Class		131,046			1,119,395			272,097			2,328,027
					4,620,362						7,942,990
Payment for shares redeemed
Class A		(6,580,232	)		(56,178,770	)		(17,716,568	)		(151,488,125	)
Class C		(268,370	)		(2,289,037	)		(718,484	)		(6,146,290	)
Administrator Class		(11,434,114	)		(97,240,981	)		(14,537,285	)		(123,830,546	)
Institutional Class		(87,132,153	)		(743,545,574	)		(103,476,714	)		(884,571,432	)
Investor Class		(6,328,983	)		(54,052,069	)		(13,992,732	)		(119,750,034	)
					(953,306,431	)					(1,285,786,427	)
Net increase in net assets resulting from capital share transactions					113,990,551						444,667,614
Total increase in net assets					116,993,297						440,482,297
Net assets
Beginning of period					1,645,839,666						1,205,357,369
End of period				$	1,762,832,963					$	1,645,839,666
Overdistributed net investment income				$	(1,016,381	)				$	(393,594	)

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, 2014 (unaudited)			Year ended August 31												Year ended May 31
CLASS A				2013			2012			2011			20101			2010			20092
Net asset value, beginning of period	$	8.53		$	8.55		$	8.52		$	8.52		$	8.48		$	8.03		$	8.71
Net investment income		0.03			0.06			0.10			0.10			0.04			0.17			0.31
Net realized and unrealized gains (losses) on investments		0.01			(0.02	)		0.03			0.02			0.04			0.48			(0.68	)
Total from investment operations		0.04			0.04			0.13			0.12			0.08			0.65			(0.37	)
Distributions to shareholders from
Net investment income		(0.03	)		(0.06	)		(0.10	)		(0.12	)		(0.04	)		(0.20	)		(0.31	)
Net asset value, end of period	$	8.54		$	8.53		$	8.55		$	8.52		$	8.52		$	8.48		$	8.03
Total return3		0.49	%		0.52	%		1.47	%		1.37	%		0.94	%		8.22	%		(4.27	)%
Ratios to average net assets (annualized)
Gross expenses		0.79	%		0.83	%		0.88	%		0.87	%		0.88	%		0.91	%		0.93	%
Net expenses		0.70	%		0.70	%		0.70	%		0.70	%		0.70	%		0.70	%		0.70	%
Net investment income		0.68	%		0.72	%		1.11	%		1.17	%		1.62	%		1.98	%		3.70	%
Supplemental data
Portfolio turnover rate		25	%		56	%		61	%		60	%		9	%		45	%		32	%
Net assets, end of period (000s omitted)		$181,031			$158,363			$146,400			$160,768			$208,845			$154,016			$44,163

1. For the three months ended August 31, 2010. The Fund changed its fiscal year end from May 31 to August 31, effective August 31, 2010.

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

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

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

Financial highlights Wells Fargo Advantage Ultra Short-Term Income Fund 27

(For a share outstanding throughout each period)

	Six months ended February 28, 2014 (unaudited)			Year ended August 31												Year ended May 31
CLASS C				2013			2012			2011			20101			2010			20092
Net asset value, beginning of period	$	8.52		$	8.55		$	8.52		$	8.52		$	8.48		$	8.03		$	8.57
Net investment income (loss)		(0.00	)3		(0.00	)3		0.03			0.04			0.02			0.12			0.21
Net realized and unrealized gains (losses) on investments		0.02			(0.03	)		0.03			0.01			0.04			0.47			(0.54	)
Total from investment operations		0.02			(0.03	)		0.06			0.05			0.06			0.59			(0.33	)
Distributions to shareholders from
Net investment income		(0.00	)3		(0.00	)3		(0.03	)		(0.05	)		(0.02	)		(0.14	)		(0.21	)
Net asset value, end of period	$	8.54		$	8.52		$	8.55		$	8.52		$	8.52		$	8.48		$	8.03
Total return4		0.26	%		(0.31	)%		0.71	%		0.61	%		0.75	%		7.41	%		(3.85	)%
Ratios to average net assets (annualized)
Gross expenses		1.55	%		1.59	%		1.63	%		1.62	%		1.63	%		1.67	%		1.64	%
Net expenses		1.45	%		1.45	%		1.45	%		1.45	%		1.45	%		1.45	%		1.45	%
Net investment income (loss)		(0.07	)%		(0.02	)%		0.37	%		0.43	%		0.88	%		1.30	%		2.77	%
Supplemental data
Portfolio turnover rate		25	%		56	%		61	%		60	%		9	%		45	%		32	%
Net assets, end of period (000s omitted)		$10,429			$11,859			$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.

28 Wells Fargo Advantage Ultra Short-Term Income Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2014 (unaudited)			Year ended August 31												Year ended May 31
ADMINISTRATOR CLASS				2013			2012			2011			20101			2010			2009
Net asset value, beginning of period	$	8.50		$	8.52		$	8.48		$	8.48		$	8.45		$	8.00		$	8.68
Net investment income		0.04			0.07			0.11			0.11			0.04			0.19			0.32
Net realized and unrealized gains (losses) on investments		0.01			(0.01	)		0.04			0.02			0.03			0.46			(0.68	)
Total from investment operations		0.05			0.06			0.15			0.13			0.07			0.65			(0.36	)
Distributions to shareholders from
Net investment income		(0.04	)		(0.08	)		(0.11	)		(0.13	)		(0.04	)		(0.20	)		(0.32	)
Net asset value, end of period	$	8.51		$	8.50		$	8.52		$	8.48		$	8.48		$	8.45		$	8.00
Total return2		0.56	%		0.67	%		1.74	%		1.52	%		0.86	%		8.41	%		(4.15	)%
Ratios to average net assets (annualized)
Gross expenses		0.74	%		0.77	%		0.82	%		0.79	%		0.79	%		0.81	%		0.81	%
Net expenses		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%
Net investment income		0.83	%		0.87	%		1.26	%		1.33	%		1.65	%		2.32	%		3.77	%
Supplemental data
Portfolio turnover rate		25	%		56	%		61	%		60	%		9	%		45	%		32	%
Net assets, end of period (000s omitted)		$116,036			$145,498			$103,810			$107,449			$205,587			$82,835			$59,184

1. For the three months ended August 31, 2010. The Fund changed its fiscal year end from May 31 to August 31, effective August 31, 2010.

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

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

Financial highlights Wells Fargo Advantage Ultra Short-Term Income Fund 29

(For a share outstanding throughout each period)

	Six months ended February 28, 2014 (unaudited)			Year ended August 31												Year ended May 31
INSTITUTIONAL CLASS				2013			2012			2011			20101			2010			2009
Net asset value, beginning of period	$	8.52		$	8.55		$	8.51		$	8.51		$	8.48		$	8.03		$	8.71
Net investment income		0.04			0.09			0.13			0.13			0.04			0.19			0.33
Net realized and unrealized gains (losses) on investments		0.03			(0.03	)		0.04			0.02			0.04			0.49			(0.67	)
Total from investment operations		0.07			0.06			0.17			0.15			0.08			0.68			(0.34	)
Distributions to shareholders from
Net investment income		(0.05	)		(0.09	)		(0.13	)		(0.15	)		(0.05	)		(0.23	)		(0.34	)
Net asset value, end of period	$	8.54		$	8.52		$	8.55		$	8.51		$	8.51		$	8.48		$	8.03
Total return2		0.78	%		0.75	%		1.94	%		1.72	%		1.03	%		8.48	%		(3.93	)%
Ratios to average net assets (annualized)
Gross expenses		0.46	%		0.50	%		0.55	%		0.54	%		0.54	%		0.57	%		0.59	%
Net expenses		0.35	%		0.35	%		0.35	%		0.35	%		0.35	%		0.35	%		0.35	%
Net investment income		1.03	%		1.07	%		1.46	%		1.50	%		2.01	%		2.26	%		4.09	%
Supplemental data
Portfolio turnover rate		25	%		56	%		61	%		60	%		9	%		45	%		32	%
Net assets, end of period (000s omitted)		$1,130,915			$996,437			$588,228			$596,838			$260,747			$197,087			$27,680

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.

30 Wells Fargo Advantage Ultra Short-Term Income Fund Financial highlights

(For a share outstanding throughout each period)

	Six months ended February 28, 2014 (unaudited)			Year ended August 31												Year ended May 31
INVESTOR CLASS				2013			2012			2011			20101			2010			2009
Net asset value, beginning of period	$	8.53		$	8.56		$	8.52		$	8.52		$	8.48		$	8.03		$	8.71
Net investment income		0.03			0.06			0.09			0.10			0.04			0.18			0.31
Net realized and unrealized gains (losses) on investments		0.02			(0.03	)		0.04			0.01			0.04			0.47			(0.68	)
Total from investment operations		0.05			0.03			0.13			0.11			0.08			0.65			(0.37	)
Distributions to shareholders from
Net investment income		(0.03	)		(0.06	)		(0.09	)		(0.11	)		(0.04	)		(0.20	)		(0.31	)
Net asset value, end of period	$	8.55		$	8.53		$	8.56		$	8.52		$	8.52		$	8.48		$	8.03
Total return2		0.59	%		0.37	%		1.56	%		1.34	%		0.93	%		8.18	%		(4.32	)%
Ratios to average net assets (annualized)
Gross expenses		0.82	%		0.87	%		0.91	%		0.90	%		0.92	%		0.98	%		0.99	%
Net expenses		0.73	%		0.73	%		0.73	%		0.73	%		0.74	%		0.75	%		0.75	%
Net investment income		0.65	%		0.69	%		1.08	%		1.15	%		1.66	%		2.16	%		3.69	%
Supplemental data
Portfolio turnover rate		25	%		56	%		61	%		60	%		9	%		45	%		32	%
Net assets, end of period (000s omitted)		$324,422			$333,684			$351,969			$384,998			$436,991			$453,772			$423,039

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 Ultra Short-Term Income Fund 31

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). These financial statements report on the 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 (generally 4 p.m. Eastern Time).

Fixed income securities acquired with maturities exceeding 60 days are valued based on evaluated bid prices provided by an independent pricing service which may utilize both transaction data and market information such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other market data. If prices are not available from the independent pricing service or prices received are deemed not representative of market value, prices will be obtained from an independent broker-dealer or otherwise determined based on the Fund’s Valuation Procedures.

Futures that are listed on a foreign or domestic exchange or market are valued at the official closing price or, if none, the last sales price.

Short-term securities, with maturities of 60 days or less at time of purchase, 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 vehicles 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 in good faith by the Board of Trustees of the Fund. 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 values, to assess the continued appropriateness of the fair valuation methodologies used. These securities are fair valued on a day-to-day basis, taking into consideration changes to appropriate market information and any significant changes to the inputs considered in the valuation process until there is a readily available price provided on an exchange or by an independent pricing service. Valuations received from an independent pricing service or independent broker-dealer quotes are periodically validated by comparisons to most recent trades and valuations provided by other independent pricing services in addition to the review of prices by the adviser and/or subadviser. Unobservable inputs used in determining fair valuations are identified based on the type of security, taking into consideration factors utilized by market participants in valuing the investment, knowledge about the issuer and the current market environment.

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

32 Wells Fargo Advantage Ultra Short-Term Income 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 “Securities Lending Fund”). The Securities Lending 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 Securities Lending Fund increase. All of the fees received by Funds Management are paid to WellsCap for its services as subadviser. The Securities Lending 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. Securities Lending Fund investments are fair valued based upon the amortized cost valuation technique. Income earned from investment in the Securities Lending 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.

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.

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

Distributions to shareholders

Distributions to shareholders from net investment income are accrued daily and paid monthly. 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.

Notes to financial statements (unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 33

As of August 31, 2013, capital loss carryforwards available to offset future net realized capital gains were as follows through the indicated expiration dates:

											No expiration
2014	2015		2016		2017		2018		2019		Short-term		Long-term
$25,866,042	$	2,154,408	$	8,848,032	$	35,029,445	$	7,738,751	$	7,448,920	$	870,403	$	18,423,230

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, 2014, the inputs used in valuing investments in securities were as follows:

Investments in securities	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Agency securities	$	0	$	259,493,852	$	0	$	259,493,852
Asset-backed securities		0		173,658,626		0		173,658,626
Corporate bonds and notes		0		721,155,318		0		721,155,318
Municipal obligations		0		97,832,904		0		97,832,904
Non-agency mortgage backed securities		0		178,682,882		0		178,682,882
Yankee corporate bonds and notes		0		253,990,121		0		253,990,121
Short-term investments
Investment companies		59,839,038		0		0		59,839,038
U.S. Treasury securities		1,749,976		0		0		1,749,976
	$	61,589,014	$	1,684,813,703	$	0	$	1,746,402,717

34 Wells Fargo Advantage Ultra Short-Term Income Fund Notes to financial statements (unaudited)

As of February 28, 2014, the inputs used in valuing the Fund’s other financial instruments were as follows:

Other financial instruments	Quoted prices (Level 1)			Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Futures contracts	$	(387,801	)*	$	0	$	0	$	(387,801	)

* Amount represents the net unrealized losses.

Transfers in and transfers out are recognized at the end of the reporting period. For the six months ended February 28, 2014, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

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 0.30% and declining to 0.225% as the average daily net assets of the Fund increase. Prior to January 1, 2014, Funds Management was entitled to receive an annual advisory fee which started at 0.35% and declined to 0.25% as the average daily net assets of the Fund increased. For the six months ended February 28, 2014, the advisory fee was equivalent to an annual rate of 0.31% 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 and an indirect, wholly owned subsidiary of Wells Fargo, 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.

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, 2014 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 shares, 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, 2014, Wells Fargo Funds Distributor, LLC received $855 from the sale of Class A shares and $550 in contingent deferred sales charges from redemptions of Class C shares.

Notes to financial statements (unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 35

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, 2014 were as follows:

Purchases at cost		Sales proceeds
U.S. government	Non-U.S. government	U.S. government	Non-U.S. government
$144,880,519	$722,751,036	$17,852,902	$382,855,572

6. DERIVATIVE TRANSACTIONS

During the six months ended February 28, 2014, the Fund entered into futures contracts to speculate on interest rates and to help manage the duration of the portfolio.

At February 28, 2014, the Fund had short futures contracts outstanding as follows:

Expiration date	Counterparty	Contracts	Type	Contract value at February 28, 2014		Unrealized losses
6-30-2014	JPMorgan	2,149 Short	2-Year U.S. Treasury Notes	$	472,511,375	$	(138,396	)
6-30-2014	JPMorgan	1,110 Short	5-Year U.S. Treasury Notes		133,043,906		(249,405	)

The Fund had an average notional amount of $687,303,411 in short futures contracts during the six months ended February 28, 2014.

On August 31, 2013, the cumulative unrealized losses on futures contracts in the amount of $387,801 is reflected in net unrealized gains on investments on the Statement of Assets and Liabilities. The receivable for daily variation margin on open futures contracts reflected in the Statement of Assets and Liabilities only represents the current day’s variation margin. The realized losses and change in unrealized gains (losses) on futures contracts are reflected in the Statement of Operations.

For certain types of derivative transactions, the Fund has entered into International Swaps and Derivatives Association, Inc. master agreements (“ISDA Master Agreements”) or similar agreements with approved counterparties. The ISDA Master Agreements or similar agreements may have requirements to deliver/deposit securities or cash to/with an exchange or broker-dealer as collateral and allows the Fund to offset, with each counterparty, certain derivative financial instrument’s assets and/or liabilities with collateral held or pledged. Collateral requirements differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives while collateral terms are contract specific for over-the-counter traded. Cash collateral that has been pledged to cover obligations of the Fund under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Portfolio of Investments. With respect to balance sheet offsetting, absent an event of default by the counterparty or a termination of the agreement, the reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities are not offset across transactions between the Fund and the applicable counterparty. A reconciliation of the gross amounts on the Statement of Assets and Liabilities to the net amounts by derivative type, including any collateral exposure, is as follows:

Derivative type	Counterparty		Gross amounts of assets in the Statement of Assets and Liabilities		Amounts subject to netting agreements		Collateral received		Net amount
Futures - variation margin		JPMorgan	$	202,518	$	0	$	0	$	202,518

36 Wells Fargo Advantage Ultra Short-Term Income Fund Notes to financial statements (unaudited)

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, 2014, the Fund paid $930 in commitment fees.

For the six months ended February 28, 2014, 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.

Other information (unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 37

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.

38 Wells Fargo Advantage Ultra Short-Term 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 each fund in the Wells Fargo Advantage family of funds, which consists of 132 mutual 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 Harbor 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 50 portfolios as of 12/16/2013); 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 Ultra Short-Term Income Fund 39

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 73 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 59 funds and Assistant Treasurer of 73 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.

40 Wells Fargo Advantage Ultra Short-Term 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 —  Columbian Peso

CLP —  Chilean peso

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 —  Indonesian rupiah

IEP —  Irish pound

JPY —  Japanese yen

KRW —  Republic of Korea won

LIBOR —  London Interbank Offered Rate

LIQ —  Liquidity agreement

LLC —  Limited liability company

LLLP —  Limited liability limited partnership

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

NGN —  Nigerian naira

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

RON —  Romanian lei

RUB —  Russian ruble

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

THB —  Thai baht

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

© 2014 Wells Fargo Funds Management, LLC. All rights reserved.

223537 04-14 SA223/SAR223 02-14

ITEM 2. CODE OF ETHICS

Not applicable.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT

Not applicable.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES

Not applicable.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS

Not applicable.

ITEM 6. INVESTMENTS

Except as noted below, the schedules of investments are included as part of the report to shareholders filed under Item 1 of this Form. The schedules of investments for Wells Fargo Advantage Adjustable Rate Government Fund and Wells Fargo Advantage Government Securities Fund, are filed under this Item.

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 1

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities: 96.73%
Federal Agricultural Mortgage Corporation Series 2000-A Class A ±		1.22	%		12-15-2039	$	239,106	$	241,657
FHLMC ±		1.79			2-1-2037		17,373		18,550
FHLMC ±		1.97			3-15-2024		1,292,404		1,337,115
FHLMC ±		2.00			1-1-2023		63,394		65,719
FHLMC ±		2.03			2-1-2037		738,290		781,231
FHLMC ±		2.04			5-1-2035		1,296,295		1,365,287
FHLMC ±		2.05			5-1-2028		373,780		399,379
FHLMC ±		2.05			6-1-2037		1,614,558		1,697,251
FHLMC ±		2.07			1-1-2037		3,802,249		4,055,890
FHLMC ±		2.10			1-1-2024		39,770		39,347
FHLMC ±		2.11			6-1-2024		11,754		12,646
FHLMC ±		2.11			11-1-2034		1,056,904		1,118,394
FHLMC ±		2.12			7-1-2034		15,455,947		16,396,359
FHLMC ±		2.13			5-1-2019		7,931		8,048
FHLMC ±		2.14			6-1-2020		2,418		2,428
FHLMC ±		2.14			5-1-2020		748		762
FHLMC ±		2.14			5-1-2020		1,583		1,591
FHLMC ±		2.16			3-1-2025		142,195		146,566
FHLMC ±		2.19			7-1-2024		54,514		56,586
FHLMC ±		2.20			8-1-2033		3,211,459		3,432,547
FHLMC ±		2.21			1-1-2030		8,973		9,383
FHLMC ±		2.21			1-1-2030		15,487		16,324
FHLMC ±		2.21			7-1-2030		202,074		214,470
FHLMC ±		2.21			6-1-2035		4,349,576		4,598,981
FHLMC ±		2.21			9-1-2016		4,756		4,826
FHLMC ±		2.21			11-1-2016		102,610		106,891
FHLMC ±		2.21			7-1-2018		2,766		2,822
FHLMC ±		2.21			1-1-2019		7,981		8,359
FHLMC ±		2.21			2-1-2019		14,050		14,724
FHLMC ±		2.21			7-1-2030		27,963		29,436
FHLMC ±		2.21			2-1-2035		476,362		500,640
FHLMC ±		2.23			1-1-2030		33,016		35,322
FHLMC ±		2.23			2-1-2035		1,857,996		1,954,795
FHLMC ±		2.24			12-1-2017		5,783		5,768
FHLMC ±		2.25			12-1-2017		20,669		21,688
FHLMC ±		2.25			5-1-2018		1,004		1,052
FHLMC ±		2.25			6-1-2018		12,640		13,237
FHLMC ±		2.25			9-1-2018		2,351		2,481
FHLMC ±		2.26			7-1-2019		1,991		2,004
FHLMC ±		2.29			6-1-2033		827,310		878,637
FHLMC ±		2.29			10-1-2037		2,001,321		2,142,816
FHLMC ±		2.29			11-1-2030		1,339,033		1,382,660
FHLMC ±		2.30			8-1-2034		2,311,984		2,461,318
FHLMC ±		2.30			8-1-2036		5,351,546		5,706,625
FHLMC ±		2.30			4-1-2023		487,850		503,656
FHLMC ±		2.33			7-1-2036		887,079		945,996
FHLMC ±		2.33			6-1-2037		9,380,789		10,028,693
FHLMC ±		2.34			10-1-2033		3,083,152		3,279,438
FHLMC ±		2.34			10-1-2033		762,520		811,065
FHLMC ±		2.34			10-1-2033		1,559,207		1,658,473

2 Wells Fargo Advantage Adjustable Rate Government Fund Portfolio of investments—February 28, 2014 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC ±		2.34	%		8-1-2036	$	4,831,244	$	5,166,803
FHLMC ±		2.35			8-1-2033		694,966		739,737
FHLMC ±		2.35			12-1-2034		1,051,105		1,118,356
FHLMC ±		2.35			1-1-2033		1,473,746		1,557,525
FHLMC ±		2.35			7-1-2036		6,443,555		6,913,967
FHLMC ±		2.35			10-1-2033		67,871		70,448
FHLMC ±		2.35			2-1-2034		2,041,105		2,174,495
FHLMC ±		2.35			4-1-2034		1,517,567		1,618,109
FHLMC ±		2.35			1-1-2035		609,990		644,927
FHLMC ±		2.35			9-1-2035		3,317,877		3,558,659
FHLMC ±		2.35			5-1-2032		79,490		81,072
FHLMC ±		2.35			5-1-2034		4,319,163		4,614,541
FHLMC ±		2.35			3-1-2035		8,489,037		9,081,562
FHLMC ±		2.36			4-1-2034		1,269,673		1,354,003
FHLMC ±		2.36			6-1-2037		9,953,786		10,546,164
FHLMC ±		2.36			9-1-2035		9,215,208		9,808,292
FHLMC ±		2.36			10-1-2030		19,095		20,234
FHLMC ±		2.36			7-1-2034		312,924		332,592
FHLMC ±		2.36			5-1-2038		3,543,369		3,796,142
FHLMC ±		2.36			1-1-2036		3,736,556		3,978,987
FHLMC ±		2.36			2-1-2036		1,618,364		1,734,557
FHLMC ±		2.36			5-1-2036		3,391,197		3,589,398
FHLMC ±		2.37			12-1-2032		4,898,171		5,246,576
FHLMC ±		2.37			6-1-2035		4,264,100		4,537,822
FHLMC ±		2.37			12-1-2036		736,466		780,874
FHLMC ±		2.37			11-1-2035		2,726,041		2,905,014
FHLMC ±		2.37			11-1-2022		438,674		451,905
FHLMC ±		2.37			3-1-2027		322,973		346,260
FHLMC ±		2.37			4-1-2035		4,350,442		4,665,009
FHLMC ±		2.37			2-1-2036		1,719,860		1,830,754
FHLMC ±		2.37			5-1-2036		2,639,195		2,816,418
FHLMC ±		2.37			11-1-2036		2,187,449		2,329,630
FHLMC ±		2.37			8-1-2035		1,167,775		1,242,935
FHLMC ±		2.37			8-1-2035		5,512,763		5,905,656
FHLMC ±		2.38			12-1-2032		2,810,180		2,967,229
FHLMC ±		2.38			9-1-2033		547,025		579,883
FHLMC ±		2.38			4-1-2034		5,646,486		6,045,237
FHLMC ±		2.38			5-1-2034		1,240,309		1,322,715
FHLMC ±		2.38			5-1-2034		183,881		195,503
FHLMC ±		2.38			9-1-2034		1,319,035		1,420,628
FHLMC ±		2.38			2-1-2035		3,232,702		3,443,448
FHLMC ±		2.38			7-1-2035		5,309,911		5,678,538
FHLMC ±		2.38			8-1-2035		9,588,365		10,245,818
FHLMC ±		2.38			9-1-2035		14,560,655		15,508,105
FHLMC ±		2.38			12-1-2035		4,229,455		4,543,315
FHLMC ±		2.38			2-1-2036		2,510,268		2,685,085
FHLMC ±		2.38			2-1-2036		2,791,197		2,994,145
FHLMC ±		2.38			3-1-2036		1,762,455		1,882,554
FHLMC ±		2.38			1-1-2037		484,090		509,083
FHLMC ±		2.38			4-1-2038		9,159,474		9,762,840

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 3

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC ±		2.38	%		3-1-2037	$	7,894,394	$	8,479,073
FHLMC ±		2.38			2-1-2036		1,420,064		1,511,483
FHLMC ±		2.38			9-1-2030		685,780		733,215
FHLMC ±		2.38			7-1-2031		3,516,633		3,687,099
FHLMC ±		2.38			12-1-2034		6,404,898		6,868,671
FHLMC ±		2.38			10-1-2034		2,399,369		2,575,467
FHLMC ±		2.38			6-1-2036		5,648,199		6,016,450
FHLMC ±		2.39			2-1-2035		7,223,905		7,738,165
FHLMC ±		2.39			5-1-2035		5,257,718		5,582,228
FHLMC ±		2.39			10-1-2035		5,967,681		6,424,654
FHLMC ±		2.39			8-1-2035		403,500		413,530
FHLMC ±		2.39			2-1-2036		1,695,527		1,809,705
FHLMC ±		2.39			8-1-2027		9,775		9,985
FHLMC ±		2.40			5-1-2025		112,265		120,055
FHLMC ±		2.40			11-1-2029		203,822		218,303
FHLMC ±		2.40			10-1-2036		1,703,618		1,807,286
FHLMC ±		2.40			10-1-2036		1,096,716		1,182,009
FHLMC ±		2.40			11-1-2035		837,517		889,999
FHLMC ±		2.40			2-1-2034		4,205,276		4,498,185
FHLMC ±		2.41			3-1-2018		19,152		19,320
FHLMC ±		2.41			1-1-2035		729,519		775,282
FHLMC ±		2.41			11-1-2036		2,194,971		2,350,868
FHLMC ±		2.41			5-1-2034		3,570,308		3,820,147
FHLMC ±		2.41			11-1-2035		2,541,034		2,724,388
FHLMC ±		2.41			11-1-2027		994,101		1,064,972
FHLMC ±		2.41			11-1-2029		415,741		444,555
FHLMC ±		2.41			4-1-2034		7,038,823		7,471,861
FHLMC ±		2.42			9-1-2033		1,988,562		2,127,852
FHLMC ±		2.42			6-1-2020		123,505		131,660
FHLMC ±		2.42			6-1-2026		1,748,474		1,884,672
FHLMC ±		2.42			2-1-2031		1,457,927		1,531,295
FHLMC ±		2.43			6-1-2035		702,458		745,241
FHLMC ±		2.43			6-1-2035		2,725,824		2,893,825
FHLMC ±		2.43			9-1-2032		3,568,000		3,826,485
FHLMC ±		2.44			7-1-2031		416,266		446,671
FHLMC ±		2.44			10-1-2035		4,232,931		4,488,232
FHLMC ±		2.45			6-1-2035		4,189,822		4,491,060
FHLMC ±		2.45			10-1-2033		3,483,840		3,730,190
FHLMC ±		2.46			9-1-2033		1,502,053		1,624,104
FHLMC ±		2.46			8-1-2018		3,808		4,028
FHLMC ±		2.47			9-1-2030		14,032,446		15,022,972
FHLMC ±		2.48			1-1-2033		254,836		254,858
FHLMC ±		2.48			10-1-2035		3,495,364		3,732,508
FHLMC ±		2.48			7-1-2038		3,869,028		4,167,017
FHLMC ±		2.48			2-1-2036		299,406		318,790
FHLMC ±		2.48			6-1-2035		1,095,894		1,170,284
FHLMC ±		2.48			9-1-2036		3,097,874		3,293,762
FHLMC ±		2.48			1-1-2038		4,572,726		4,906,341
FHLMC ±		2.48			4-1-2038		3,076,994		3,282,005
FHLMC ±		2.48			1-1-2028		33,855		36,254

4 Wells Fargo Advantage Adjustable Rate Government Fund Portfolio of investments—February 28, 2014 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC ±		2.48	%		1-1-2028	$	7,757	$	8,334
FHLMC ±		2.48			12-1-2034		6,052,748		6,496,767
FHLMC ±		2.48			2-1-2035		2,601,597		2,781,346
FHLMC ±		2.48			9-1-2038		1,401,648		1,500,976
FHLMC ±		2.48			1-1-2037		2,155,118		2,304,849
FHLMC ±		2.49			1-1-2019		934		941
FHLMC ±		2.49			5-1-2037		4,617,565		4,926,711
FHLMC ±		2.49			9-1-2035		7,055,661		7,624,475
FHLMC ±		2.49			7-1-2034		1,377,766		1,492,643
FHLMC ±		2.50			5-1-2037		535,648		566,108
FHLMC ±		2.50			6-1-2033		2,959,284		3,173,907
FHLMC ±		2.50			7-1-2027		901,290		968,676
FHLMC ±		2.51			10-1-2030		3,416,446		3,671,049
FHLMC ±		2.51			5-1-2033		461,880		476,055
FHLMC ±		2.51			4-1-2034		1,372,995		1,466,087
FHLMC ±		2.51			12-1-2032		1,253,372		1,323,934
FHLMC ±		2.52			3-1-2037		3,490,969		3,717,693
FHLMC ±		2.52			5-1-2023		91,958		92,397
FHLMC ±		2.52			6-1-2035		3,151,872		3,373,562
FHLMC ±		2.53			9-1-2031		157,474		161,710
FHLMC ±		2.53			7-1-2029		110,949		118,881
FHLMC ±		2.53			4-1-2035		695,435		740,622
FHLMC ±		2.53			4-1-2036		4,192,025		4,446,866
FHLMC ±		2.53			7-1-2037		1,294,571		1,389,481
FHLMC ±		2.54			10-1-2029		144,409		153,369
FHLMC ±		2.54			1-1-2022		28,731		28,928
FHLMC ±		2.54			10-1-2036		1,491,398		1,598,521
FHLMC ±		2.55			6-1-2025		111,002		113,008
FHLMC ±		2.55			8-1-2029		169,762		172,593
FHLMC ±		2.55			6-1-2028		507,850		531,567
FHLMC ±		2.55			2-1-2037		880,002		934,327
FHLMC ±		2.56			11-1-2018		16,405		16,513
FHLMC ±		2.57			2-1-2029		278,252		281,231
FHLMC ±		2.57			4-1-2029		174,049		182,281
FHLMC ±		2.57			10-1-2024		241,383		258,072
FHLMC ±		2.57			11-1-2035		5,340,818		5,707,437
FHLMC ±		2.58			4-1-2035		1,724,034		1,833,958
FHLMC ±		2.59			6-1-2019		95,351		95,812
FHLMC ±		2.60			7-1-2034		2,851,181		3,045,639
FHLMC ±		2.60			7-1-2017		29,998		31,903
FHLMC ±		2.60			10-1-2025		139,963		142,257
FHLMC ±		2.60			10-1-2025		46,094		46,564
FHLMC ±		2.60			2-1-2030		66,353		71,169
FHLMC ±		2.60			6-1-2030		146,772		157,372
FHLMC ±		2.60			6-1-2030		544,813		585,084
FHLMC ±		2.60			6-1-2030		142,363		145,387
FHLMC ±		2.60			11-1-2032		242,853		251,950
FHLMC ±		2.60			4-1-2035		4,224,896		4,512,612
FHLMC ±		2.62			5-1-2035		675,310		716,983
FHLMC ±		2.62			5-1-2036		5,905,890		6,357,400

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 5

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC ±		2.63	%		2-1-2036	$	8,636,126	$	9,235,441
FHLMC ±		2.63			11-1-2029		1,443,459		1,533,938
FHLMC ±		2.65			11-1-2029		325,250		333,633
FHLMC ±		2.66			7-1-2036		1,453,342		1,554,345
FHLMC ±		2.67			1-1-2017		544		550
FHLMC ±		2.67			9-1-2029		177,931		190,640
FHLMC ±		2.69			8-1-2030		7,553,487		8,077,246
FHLMC ±		2.69			5-1-2028		458,140		472,834
FHLMC ±		2.69			11-1-2026		377,533		388,299
FHLMC ±		2.70			10-1-2018		70,580		74,039
FHLMC ±		2.70			4-1-2035		2,617,299		2,811,778
FHLMC ±		2.71			4-1-2037		2,194,310		2,349,841
FHLMC ±		2.71			2-1-2036		6,732,226		7,278,230
FHLMC ±		2.73			6-1-2032		257,444		259,190
FHLMC ±		2.74			9-1-2030		184,461		188,431
FHLMC ±		2.74			3-1-2032		1,968,387		2,124,173
FHLMC ±		2.75			4-1-2037		991,920		1,061,761
FHLMC ±		2.75			8-1-2029		254,418		257,454
FHLMC ±		2.75			4-1-2020		29,709		31,763
FHLMC ±		2.79			2-1-2024		34,726		34,999
FHLMC ±		2.84			6-1-2022		1,741		1,721
FHLMC ±		2.88			6-1-2019		114,425		122,131
FHLMC ±		2.88			10-1-2019		31,790		31,656
FHLMC ±		2.88			5-1-2039		3,003,276		3,206,780
FHLMC ±		2.91			2-1-2018		5,104		5,136
FHLMC ±		2.91			12-1-2018		34,101		34,288
FHLMC ±		2.91			12-1-2018		30,781		30,883
FHLMC ±		2.91			3-1-2025		3,804,463		4,013,934
FHLMC ±		2.92			5-1-2032		293,463		314,735
FHLMC ±		2.95			4-1-2032		139,535		141,895
FHLMC ±		2.97			6-1-2029		1,284,684		1,374,001
FHLMC ±		3.00			9-1-2016		23,295		23,142
FHLMC ±		3.08			12-1-2025		554,842		576,588
FHLMC ±		3.12			2-1-2027		194,400		203,354
FHLMC ±		3.15			4-1-2019		28,842		28,903
FHLMC ±		3.25			8-1-2019		21,637		21,750
FHLMC ±		3.29			6-1-2035		2,241,898		2,433,435
FHLMC ±		3.32			7-1-2028		100,945		102,902
FHLMC ±		3.37			5-1-2031		191,814		196,688
FHLMC ±		3.39			6-1-2021		143,203		152,316
FHLMC ±		3.48			7-1-2018		82,132		82,691
FHLMC ±		3.56			12-1-2025		884,709		955,183
FHLMC ±		3.61			11-1-2026		197,068		205,931
FHLMC ±		3.90			4-1-2023		206,989		211,085
FHLMC		4.00			12-15-2023		260,659		273,923
FHLMC		4.00			3-15-2039		536,619		550,485
FHLMC ±		4.21			8-1-2029		43,624		45,031
FHLMC ±		4.47			10-1-2029		3,485		3,412
FHLMC ±		4.52			2-1-2021		44,593		45,558
FHLMC ±		4.72			8-1-2027		82,798		83,124

6 Wells Fargo Advantage Adjustable Rate Government Fund Portfolio of investments—February 28, 2014 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC		5.00	%		10-1-2022	$	51,314	$	55,853
FHLMC ±		5.50			8-1-2024		645,377		691,855
FHLMC		6.50			4-1-2018		99,105		110,873
FHLMC		7.00			9-1-2035		70,415		77,489
FHLMC		7.50			1-1-2016		13,555		13,824
FHLMC		7.50			6-1-2016		4,859		4,951
FHLMC		8.50			5-1-2020		125,656		134,419
FHLMC Series 0020 Class F ±		1.15			7-1-2029		30,869		31,512
FHLMC Series 1671 Class QA ±		1.73			2-15-2024		590,190		607,955
FHLMC Series 1686 Class FE ±		1.88			2-15-2024		53,162		54,568
FHLMC Series 1730 Class FA ±		2.22			5-15-2024		357,910		373,417
FHLMC Series 2315 Class FW ±		0.70			4-15-2027		213,549		216,029
FHLMC Series 2391 Class EF ±		0.65			6-15-2031		186,139		188,004
FHLMC Series 2454 Class SL ±(c)		7.85			3-15-2032		423,125		85,466
FHLMC Series 2461 Class FI ±		0.65			4-15-2028		275,123		278,139
FHLMC Series 2464 Class FE ±		1.15			3-15-2032		275,782		283,642
FHLMC Series 2466 Class FV ±		0.70			3-15-2032		458,409		463,981
FHLMC Series 2882 Class EC		4.00			9-15-2034		4,927,257		5,250,534
FHLMC Series T-48 Class 2A ±		3.35			7-25-2033		3,525,051		3,686,611
FHLMC Series T-54 Class 4A ±		3.05			2-25-2043		2,521,522		2,649,343
FHLMC Series T-55 Class 1A1		6.50			3-25-2043		116,219		130,785
FHLMC Series T-62 Class 1A1 ±		1.34			10-25-2044		5,938,282		6,057,802
FHLMC Series T-63 Class 1A1 ±		1.34			2-25-2045		3,554,631		3,637,717
FHLMC Series T-66 Class 2A1 ±		2.84			1-25-2036		4,269,980		4,435,570
FHLMC Series T-67 Class 1A1C ±		2.98			3-25-2036		15,364,881		15,950,190
FHLMC Series T-67 Class 2A1C ±		3.03			3-25-2036		9,716,861		10,159,931
FHLMC Series T-75 Class A1 ±		0.20			12-25-2036		4,013,788		3,983,504
FHLMC Series T61 Class 1A1 ±		1.54			7-25-2044		2,040,150		2,075,183
FNMA ±		2.30			12-1-2034		2,485,760		2,644,808
FNMA ±		1.25			12-1-2020		32,734		32,794
FNMA ±		1.25			6-1-2021		78,310		80,199
FNMA ±		1.38			1-1-2021		5,002		5,170
FNMA ±		1.38			1-1-2021		4,887		4,922
FNMA ±		1.45			9-1-2032		66,881		67,712
FNMA ±		1.52			8-1-2032		276,753		280,818
FNMA ±		1.53			12-1-2030		175,627		183,343
FNMA ±		1.63			12-1-2016		1,223		1,227
FNMA ±		1.63			7-1-2017		1,547		1,555
FNMA ±		1.63			3-1-2015		4,582		4,590
FNMA ±		1.71			3-1-2034		672,521		693,613
FNMA ±		1.73			1-1-2017		1,601		1,623
FNMA ±		1.74			1-1-2032		450,079		460,846
FNMA ±		1.74			8-1-2033		428,904		442,833
FNMA ±		1.75			8-1-2033		4,152		4,259
FNMA ±		1.75			8-1-2031		163,266		165,828
FNMA ±		1.75			12-1-2031		27,601		28,235
FNMA ±		1.77			5-1-2029		460,562		493,959
FNMA ±		1.79			1-1-2035		156,070		161,970
FNMA ±		1.79			8-1-2031		146,523		148,095
FNMA ±		1.79			9-1-2031		265,983		280,229

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA ±		1.79	%		12-1-2031	$	399,465	$	425,056
FNMA ±		1.79			4-1-2033		691,002		733,873
FNMA ±		1.80			12-1-2022		16,189		16,495
FNMA ±		1.81			12-1-2031		168,385		179,987
FNMA ±		1.82			3-1-2030		24,471		25,099
FNMA ±		1.83			7-1-2020		15,923		16,089
FNMA ±		1.87			5-1-2018		8,072		8,058
FNMA ±		1.87			1-1-2032		36,954		36,814
FNMA ±		1.88			1-1-2022		13,263		13,423
FNMA ±		1.88			8-1-2032		169,738		178,035
FNMA ±		1.92			2-1-2035		5,404,166		5,746,976
FNMA ±		1.92			1-1-2035		4,237,505		4,469,537
FNMA ±		1.94			2-1-2033		268,891		282,522
FNMA ±		1.95			6-1-2031		334,535		354,024
FNMA ±		1.95			4-1-2038		1,225,091		1,293,799
FNMA ±		2.01			8-1-2031		76,780		78,295
FNMA ±		2.01			7-1-2032		222,553		223,340
FNMA ±		2.02			6-1-2032		155,419		156,035
FNMA ±		2.03			10-1-2035		10,338,874		10,899,881
FNMA ±		2.03			4-1-2042		4,399,068		4,653,101
FNMA ±		2.03			10-1-2044		2,098,898		2,220,751
FNMA ±		2.08			12-1-2035		8,816,487		9,325,436
FNMA ±		2.08			7-1-2035		2,470,671		2,591,610
FNMA ±		2.10			7-1-2018		2,470		2,484
FNMA ±		2.10			1-1-2036		5,031,526		5,328,728
FNMA ±		2.10			10-1-2018		120,503		126,616
FNMA ±		2.12			10-1-2024		61,927		65,722
FNMA ±		2.12			12-1-2024		96,464		101,904
FNMA ±		2.13			11-1-2017		153,331		162,286
FNMA ±		2.13			2-1-2020		16,081		16,893
FNMA ±		2.15			7-1-2035		2,034,779		2,144,978
FNMA ±		2.15			10-1-2035		1,066,484		1,127,408
FNMA ±		2.15			11-1-2027		63,505		67,386
FNMA ±		2.15			12-1-2032		1,284,045		1,343,798
FNMA ±		2.16			6-1-2018		1,985		2,054
FNMA ±		2.16			6-1-2034		1,084,893		1,153,491
FNMA ±		2.17			9-1-2035		1,940,316		2,053,449
FNMA ±		2.18			4-1-2030		173,795		185,106
FNMA ±		2.18			1-1-2034		4,184,486		4,464,140
FNMA ±		2.18			12-1-2023		12,749		12,890
FNMA ±		2.20			4-1-2021		93,153		97,567
FNMA ±		2.20			4-1-2019		7,024		7,079
FNMA ±		2.21			10-1-2017		57,569		59,231
FNMA ±		2.21			3-1-2033		297,889		310,502
FNMA ±		2.21			8-1-2033		1,687,022		1,796,281
FNMA ±		2.21			11-1-2024		13,266		13,911
FNMA ±		2.21			8-1-2025		51,567		54,743
FNMA ±		2.21			1-1-2036		537,960		568,179
FNMA ±		2.21			1-1-2018		73,364		75,634
FNMA ±		2.21			11-1-2023		45,104		46,824

8 Wells Fargo Advantage Adjustable Rate Government Fund Portfolio of investments—February 28, 2014 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA ±		2.22	%		11-1-2034	$	1,752,886	$	1,876,511
FNMA ±		2.22			9-1-2032		8,488,649		9,040,558
FNMA ±		2.22			12-1-2017		80,181		81,573
FNMA ±		2.22			1-1-2038		754,039		791,080
FNMA ±		2.23			4-1-2018		395,142		416,435
FNMA ±		2.23			7-1-2038		1,671,389		1,773,848
FNMA ±		2.23			7-1-2018		450,739		474,757
FNMA ±		2.23			12-1-2033		2,135,173		2,276,464
FNMA ±		2.23			7-1-2036		4,847,853		5,163,461
FNMA ±		2.23			9-1-2036		1,886,048		2,020,093
FNMA ±		2.23			3-1-2034		971,526		1,035,429
FNMA ±		2.24			11-1-2035		964,263		1,011,612
FNMA ±		2.24			8-1-2036		5,035,385		5,335,319
FNMA ±		2.24			12-1-2025		24,869		25,030
FNMA ±		2.24			8-1-2026		112,481		113,871
FNMA ±		2.24			7-1-2035		2,010,740		2,146,061
FNMA ±		2.25			3-1-2031		44,281		46,765
FNMA ±		2.25			4-1-2035		4,276,124		4,549,182
FNMA ±		2.25			1-1-2035		1,607,837		1,681,283
FNMA ±		2.25			7-1-2017		3,114		3,171
FNMA ±		2.25			8-1-2017		1,250		1,267
FNMA ±		2.25			1-1-2018		652,272		686,295
FNMA ±		2.25			3-1-2021		1,223		1,277
FNMA ±		2.25			10-1-2025		166,641		175,405
FNMA ±		2.25			1-1-2027		46,048		48,794
FNMA ±		2.25			3-1-2030		38,066		40,063
FNMA ±		2.25			5-1-2033		1,277,820		1,361,579
FNMA ±		2.26			10-1-2035		516,643		552,073
FNMA ±		2.26			8-1-2035		826,399		867,239
FNMA ±		2.26			4-1-2040		370,693		395,475
FNMA ±		2.26			7-1-2029		917,488		963,541
FNMA ±		2.26			12-1-2033		2,810,591		2,992,496
FNMA ±		2.26			9-1-2035		3,570,144		3,805,055
FNMA ±		2.27			10-1-2033		904,339		963,141
FNMA ±		2.27			1-1-2037		4,121,875		4,352,127
FNMA ±		2.28			4-1-2018		5,543		5,708
FNMA ±		2.28			12-1-2039		438,386		465,981
FNMA ±		2.29			4-1-2034		5,518,277		5,876,579
FNMA ±		2.29			4-1-2028		46,977		47,360
FNMA ±		2.29			4-1-2033		1,071,127		1,150,134
FNMA ±		2.30			10-1-2035		4,077,720		4,342,123
FNMA ±		2.30			12-1-2024		38,457		40,686
FNMA ±		2.30			6-1-2032		47,278		48,502
FNMA ±		2.30			6-1-2032		368,772		377,510
FNMA ±		2.30			1-1-2035		503,309		535,945
FNMA ±		2.30			6-1-2035		604,823		648,869
FNMA ±		2.30			1-1-2036		1,756,701		1,864,709
FNMA ±		2.30			1-1-2037		11,334,904		12,058,245
FNMA ±		2.30			3-1-2038		5,898,991		6,268,928
FNMA ±		2.31			2-1-2036		1,504,245		1,601,897

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA ±		2.31	%		7-1-2038	$	7,808,720	$	8,411,013
FNMA ±		2.31			3-1-2035		1,826,366		1,965,010
FNMA ±		2.31			2-1-2033		420,660		449,058
FNMA ±		2.31			1-1-2035		3,451,035		3,646,964
FNMA ±		2.31			12-1-2035		991,658		1,055,227
FNMA ±		2.32			6-1-2033		1,230,279		1,303,024
FNMA ±		2.32			9-1-2039		10,541,690		11,210,591
FNMA ±		2.32			7-1-2048		6,307,329		6,743,252
FNMA ±		2.32			1-1-2040		726,138		771,270
FNMA ±		2.32			12-1-2043		3,492,510		3,717,138
FNMA ±		2.32			6-1-2023		842		850
FNMA ±		2.32			2-1-2035		571,246		602,453
FNMA ±		2.32			7-1-2043		2,848,373		3,043,329
FNMA ±		2.32			10-1-2024		407,372		436,833
FNMA ±		2.32			12-1-2040		12,508,026		13,355,604
FNMA ±		2.33			5-1-2033		782,459		836,966
FNMA ±		2.33			7-1-2025		5,782		6,003
FNMA ±		2.33			2-1-2035		5,615,162		6,005,834
FNMA ±		2.33			6-1-2035		3,732,294		3,973,512
FNMA ±		2.33			5-1-2034		3,930,447		4,148,600
FNMA ±		2.33			6-1-2033		685,241		722,334
FNMA ±		2.33			5-1-2037		2,778,713		2,957,689
FNMA ±		2.33			1-1-2027		915,882		976,987
FNMA ±		2.34			7-1-2033		216,439		226,666
FNMA ±		2.34			6-1-2035		1,939,910		2,058,142
FNMA ±		2.34			7-1-2035		2,467,741		2,646,805
FNMA ±		2.34			7-1-2038		1,551,467		1,663,380
FNMA ±		2.34			1-11-2035		2,986,904		3,194,855
FNMA ±		2.34			9-1-2034		6,060,461		6,446,236
FNMA ±		2.34			1-1-2044		2,974,187		3,159,757
FNMA ±		2.34			4-1-2030		19,788		21,026
FNMA ±		2.34			9-1-2032		141,951		142,751
FNMA ±		2.34			2-1-2033		2,045		2,049
FNMA ±		2.34			4-1-2033		2,766,153		2,932,370
FNMA ±		2.34			6-1-2037		405,492		430,444
FNMA ±		2.34			1-1-2038		8,289,468		8,836,504
FNMA ±		2.34			6-1-2027		119,656		127,385
FNMA ±		2.34			7-1-2040		4,901,349		5,205,909
FNMA ±		2.34			4-1-2043		6,094,935		6,508,789
FNMA ±		2.35			8-1-2031		138,306		140,126
FNMA ±		2.35			10-1-2034		566,334		605,239
FNMA ±		2.35			7-1-2035		2,697,880		2,888,250
FNMA ±		2.35			7-1-2035		987,732		1,053,073
FNMA ±		2.35			6-1-2026		98,841		105,829
FNMA ±		2.35			7-1-2033		103,991		110,700
FNMA ±		2.35			7-1-2038		4,181,365		4,467,202
FNMA ±		2.35			9-1-2033		65,291		68,987
FNMA ±		2.35			9-1-2033		70,418		71,524
FNMA ±		2.35			10-1-2035		2,070,708		2,212,177
FNMA ±		2.35			1-1-2036		613,334		640,214

10 Wells Fargo Advantage Adjustable Rate Government Fund Portfolio of investments—February 28, 2014 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA ±		2.35	%		12-1-2040	$	4,060,787	$	4,313,881
FNMA ±		2.35			9-1-2034		10,712,322		11,436,154
FNMA ±		2.35			5-1-2035		3,168,427		3,374,789
FNMA ±		2.36			7-1-2035		7,548,722		8,045,848
FNMA ±		2.36			7-1-2028		312		332
FNMA ±		2.36			2-1-2036		7,205,099		7,704,133
FNMA ±		2.36			5-1-2036		6,274,307		6,726,546
FNMA ±		2.36			10-1-2036		6,083,013		6,520,916
FNMA ±		2.36			5-1-2042		7,896,217		8,429,926
FNMA ±		2.36			2-1-2034		4,409,723		4,729,987
FNMA ±		2.37			4-1-2032		45,599		47,850
FNMA ±		2.37			4-1-2033		1,198,706		1,280,473
FNMA ±		2.37			8-1-2026		980,732		1,046,543
FNMA ±		2.37			6-1-2034		6,086,170		6,489,750
FNMA ±		2.37			6-1-2036		6,107,649		6,502,720
FNMA ±		2.37			1-1-2031		1,172,470		1,244,705
FNMA ±		2.37			6-1-2027		2,893		3,037
FNMA ±		2.38			1-1-2019		134,678		139,499
FNMA ±		2.38			9-1-2019		7,654		7,733
FNMA ±		2.38			6-1-2025		9,840		9,926
FNMA ±		2.38			5-1-2033		6,700,825		7,133,926
FNMA ±		2.38			10-1-2029		218,303		224,708
FNMA ±		2.38			3-1-2035		6,008,789		6,410,797
FNMA ±		2.38			5-1-2035		799,684		838,319
FNMA ±		2.38			5-1-2018		145,061		142,639
FNMA ±		2.38			9-1-2036		1,583,706		1,683,328
FNMA ±		2.38			9-1-2039		8,881,833		9,519,191
FNMA ±		2.39			6-1-2034		1,653,572		1,754,040
FNMA ±		2.39			7-1-2034		1,188,409		1,259,995
FNMA ±		2.40			8-1-2017		480,517		493,217
FNMA ±		2.40			2-1-2036		13,420,992		14,445,542
FNMA ±		2.40			7-1-2048		8,625,890		9,241,391
FNMA ±		2.40			4-1-2024		80,055		85,672
FNMA ±		2.40			4-1-2024		28,860		30,189
FNMA ±		2.40			7-1-2024		16,789		17,657
FNMA ±		2.40			9-1-2026		118,311		121,501
FNMA ±		2.40			2-1-2037		4,258,341		4,572,396
FNMA ±		2.40			9-1-2030		221,187		237,386
FNMA ±		2.40			12-1-2040		6,831,659		7,331,199
FNMA ±		2.41			10-1-2036		1,622,281		1,733,734
FNMA ±		2.42			12-1-2030		87,244		88,972
FNMA ±		2.42			9-1-2034		2,760,562		2,974,691
FNMA ±		2.42			8-1-2035		1,749,658		1,834,069
FNMA ±		2.42			7-1-2035		4,347,260		4,665,441
FNMA ±		2.42			5-1-2034		1,703,580		1,819,014
FNMA ±		2.42			6-1-2035		2,827,100		3,010,050
FNMA ±		2.42			1-1-2019		3,903		3,970
FNMA ±		2.42			5-1-2036		3,451,891		3,672,985
FNMA ±		2.42			9-1-2036		1,090,972		1,159,498
FNMA ±		2.43			9-1-2037		1,290,178		1,376,393

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA ±		2.43	%		12-1-2042	$	2,137,029	$	2,270,044
FNMA ±		2.44			12-1-2034		1,498,523		1,598,173
FNMA ±		2.44			2-1-2035		2,141,579		2,287,741
FNMA ±		2.44			5-1-2035		2,837,648		3,039,439
FNMA ±		2.44			5-1-2025		66,370		70,881
FNMA ±		2.44			4-1-2036		6,837,161		7,315,146
FNMA ±		2.44			5-1-2039		5,632,401		5,981,276
FNMA ±		2.44			2-1-2038		1,660,503		1,759,428
FNMA ±		2.45			4-1-2028		344,046		368,818
FNMA ±		2.45			6-1-2032		53,497		53,423
FNMA ±		2.45			4-1-2033		1,453,639		1,555,993
FNMA ±		2.45			4-1-2020		7,431		7,554
FNMA ±		2.45			3-1-2033		7,812		7,880
FNMA ±		2.45			6-1-2033		581,982		624,773
FNMA ±		2.45			1-1-2028		10,226		10,887
FNMA ±		2.45			9-1-2028		118,711		121,714
FNMA ±		2.46			11-1-2024		184,496		190,280
FNMA ±		2.46			4-1-2034		1,916,989		2,035,418
FNMA ±		2.46			12-1-2028		55,754		59,200
FNMA ±		2.46			8-1-2039		7,316,310		7,813,370
FNMA ±		2.46			1-1-2026		479,226		503,916
FNMA ±		2.46			2-1-2032		1,996,240		2,104,328
FNMA ±		2.47			4-1-2024		3,637,393		3,887,431
FNMA ±		2.48			6-1-2030		215,104		230,813
FNMA ±		2.48			11-1-2017		74,895		77,363
FNMA ±		2.48			6-1-2027		100,116		106,438
FNMA ±		2.48			12-1-2030		1,038,497		1,116,157
FNMA ±		2.48			9-1-2037		1,214,249		1,290,313
FNMA ±		2.49			1-1-2029		893,658		942,652
FNMA ±		2.49			11-1-2034		8,091,135		8,630,131
FNMA ±		2.49			3-1-2033		2,484,701		2,670,505
FNMA ±		2.49			5-1-2032		228,154		232,188
FNMA ±		2.50			7-1-2027		101,349		109,078
FNMA ±		2.50			9-1-2030		1,163,766		1,239,411
FNMA ±		2.50			8-1-2035		4,371,475		4,658,612
FNMA ±		2.50			1-1-2032		152,315		163,024
FNMA ±		2.50			6-1-2017		19,836		19,806
FNMA ±		2.50			5-1-2017		51,305		51,231
FNMA ±		2.50			5-1-2017		54,314		55,928
FNMA ±		2.50			7-1-2017		5,567		5,768
FNMA ±		2.50			2-1-2018		8,826		9,046
FNMA ±		2.50			2-1-2019		2,211		2,251
FNMA ±		2.50			5-1-2019		742		752
FNMA ±		2.50			6-1-2019		998		993
FNMA ±		2.50			7-1-2027		373,542		402,270
FNMA ±		2.50			9-1-2037		7,232,321		7,748,985
FNMA ±		2.50			12-1-2021		103,819		106,569
FNMA ±		2.51			6-1-2036		967,102		1,035,935
FNMA ±		2.51			11-1-2020		1,165,582		1,227,419
FNMA ±		2.51			12-1-2033		2,743,535		2,936,938

12 Wells Fargo Advantage Adjustable Rate Government Fund Portfolio of investments—February 28, 2014 (unaudited)

Security name	Interest rate				Maturity date		Principal		Value
Agency Securities (continued)
FNMA ±		2.52	%			9-1-2022	$	588,974	$	634,035
FNMA ±		2.52				4-1-2035		3,124,816		3,322,176
FNMA ±		2.52				4-1-2035		2,782,102		2,966,524
FNMA ±		2.53		��		6-1-2024		61,120		64,321
FNMA ±		2.53				7-1-2035		1,517,974		1,617,463
FNMA ±		2.53				7-1-2017		154,437		159,097
FNMA ±		2.53				5-1-2027		104,226		111,964
FNMA ±		2.53				7-1-2037		2,184,564		2,338,777
FNMA ±		2.53				7-1-2020		154,447		163,486
FNMA ±		2.54				10-1-2034		793,213		850,935
FNMA ±		2.54				8-1-2035		1,890,499		2,013,569
FNMA ±		2.54				5-1-2036		915,628		976,053
FNMA ±		2.55				7-1-2033		1,600,967		1,721,012
FNMA ±		2.55				10-1-2033		17,471,054		18,673,513
FNMA ±		2.55				5-1-2035		2,170,004		2,324,423
FNMA ±		2.56				1-1-2036		11,783,228		12,589,302
FNMA ±		2.56				4-1-2030		33,996		36,009
FNMA ±		2.56				10-1-2036		8,060,310		8,489,956
FNMA ±		2.56				4-1-2018		716,214		738,121
FNMA ±		2.57				3-1-2035		4,775,158		5,115,861
FNMA ±		2.57				8-1-2036		696,698		743,609
FNMA ±		2.57				12-1-2046		1,968,917		2,099,182
FNMA ±		2.57				8-1-2040		1,445,276		1,556,607
FNMA ±		2.58				1-1-2033		2,850,048		3,062,015
FNMA ±		2.58				1-1-2036		145,708		153,374
FNMA ±		2.58				3-1-2027		198,318		199,095
FNMA ±		2.59				9-1-2035		190,616		203,499
FNMA ±		2.59				9-1-2033		1,444,904		1,540,479
FNMA ±		2.59				5-1-2033		1,475,799		1,581,731
FNMA ±		2.59				3-1-2036		928,717		997,151
FNMA ±		2.60				2-1-2035		1,738,276		1,857,266
FNMA ±		2.60				4-1-2036		6,299,304		6,646,188
FNMA ±		2.61				2-1-2035		7,955,862		8,523,493
FNMA ±		2.62				9-1-2030		986,131		1,060,521
FNMA ±		2.63				10-1-2029		605,317		650,286
FNMA ±		2.64				7-1-2036		5,011,356		5,400,934
FNMA ±		2.64				6-1-2032		235,300		252,495
FNMA ±		2.64				9-1-2035		1,066,952		1,136,536
FNMA ±		2.64				11-1-2024		94,817		96,570
FNMA ±		2.64				3-1-2033		737,258		784,089
FNMA ±		2.64				5-1-2035		2,807,852		3,014,500
FNMA ±		2.65				10-1-2024		54,006		54,884
FNMA ±		2.65				9-1-2030		901,877		950,516
FNMA ±		2.65				5-1-2037		2,896,609		3,108,641
FNMA ±		2.65				6-1-2040		1,296,712		1,374,829
FNMA ±		2.65				5-1-2035		4,081,660		4,393,820
FNMA ±		2.66				8-1-2034		4,037,492		4,315,402
FNMA ±		2.68				1-1-2025		72,331		73,493
FNMA ±		2.70				5-1-2028		88,212		92,024
FNMA ±		2.70				3-1-2032		144,810		155,689

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA ±		2.70	%		3-1-2035	$	1,593,667	$	1,702,822
FNMA ±		2.72			10-1-2018		651,028		675,801
FNMA ±		2.72			10-1-2025		15,405		16,545
FNMA ±		2.72			2-1-2028		49,764		53,282
FNMA ±		2.72			4-1-2026		9,302		9,297
FNMA ±		2.74			8-1-2035		4,291,355		4,596,518
FNMA ±		2.74			10-1-2018		139,079		144,079
FNMA ±		2.74			9-1-2017		456,853		475,561
FNMA ±		2.75			6-1-2016		78,993		82,874
FNMA ±		2.75			7-1-2016		16,289		17,153
FNMA ±		2.75			6-1-2018		20,797		20,949
FNMA ±		2.75			8-1-2018		79,189		83,518
FNMA ±		2.75			12-1-2028		177,652		187,249
FNMA ±		2.75			1-1-2029		23,198		24,481
FNMA ±		2.76			3-1-2034		67,435		67,888
FNMA ±		2.76			5-1-2018		405,377		422,790
FNMA ±		2.76			4-1-2033		656,271		704,930
FNMA ±		2.77			10-1-2025		9,640		10,184
FNMA ±		2.78			11-1-2022		83,367		88,810
FNMA ±		2.78			9-1-2032		179,112		186,480
FNMA ±		2.78			1-1-2033		173,744		177,760
FNMA ±		2.79			11-1-2034		1,145,782		1,225,146
FNMA ±		2.79			7-1-2020		2,564,530		2,662,630
FNMA ±		2.80			11-1-2035		16,260,585		17,539,404
FNMA ±		2.80			10-1-2028		295,284		317,048
FNMA ±		2.80			7-1-2039		3,116,018		3,412,180
FNMA ±		2.80			11-1-2034		2,801,699		3,017,439
FNMA ±		2.83			10-1-2017		4,850		4,804
FNMA ±		2.85			5-1-2028		274,535		285,876
FNMA ±		2.86			9-1-2019		70,465		71,169
FNMA ±		2.86			9-1-2033		43,116		43,678
FNMA ±		2.87			10-1-2024		15,279		16,413
FNMA ±		2.88			7-1-2028		374,713		402,548
FNMA ±		2.91			7-1-2019		3,284		3,349
FNMA ±		2.93			3-1-2019		591,628		624,291
FNMA ±		2.96			4-1-2040		2,882,067		3,130,786
FNMA ±		2.97			9-1-2021		120,007		120,364
FNMA ±		2.98			9-1-2032		1,871,876		2,043,801
FNMA ±		3.00			1-1-2029		36,477		38,069
FNMA ±		3.00			8-1-2030		255,090		263,594
FNMA ±		3.00			5-1-2017		74,238		79,113
FNMA ±		3.00			11-1-2028		208,011		222,853
FNMA ±		3.00			2-1-2029		135,148		144,981
FNMA ±		3.00			8-1-2029		903,790		970,367
FNMA ±		3.02			1-1-2031		84,506		84,300
FNMA ±		3.02			11-1-2024		167,442		167,964
FNMA ±		3.04			5-1-2018		917		924
FNMA ±		3.09			8-1-2031		72,216		76,698
FNMA ±		3.09			3-1-2030		165,566		177,742
FNMA ±		3.12			4-1-2020		2,096,436		2,224,151

14 Wells Fargo Advantage Adjustable Rate Government Fund Portfolio of investments—February 28, 2014 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA ±		3.15	%		4-1-2024	$	438,599	$	465,963
FNMA ±		3.16			7-1-2033		28,184		28,464
FNMA ±		3.16			9-1-2033		191,100		191,370
FNMA ±		3.17			1-1-2033		72,829		73,074
FNMA ±		3.19			1-1-2021		643,651		683,688
FNMA ±		3.23			7-1-2017		117,419		119,253
FNMA ±		3.23			4-1-2034		3,531,003		3,812,007
FNMA ±		3.25			9-1-2017		2,784		2,814
FNMA ±		3.25			7-1-2028		104,346		108,687
FNMA ±		3.36			6-1-2024		35,886		36,474
FNMA ±		3.37			2-1-2029		2,338,565		2,517,845
FNMA ±		3.45			11-1-2031		45,924		45,768
FNMA ±		3.46			11-1-2029		10,735		11,432
FNMA ±		3.48			9-1-2033		62,496		62,563
FNMA ±		3.58			10-1-2017		487,872		500,754
FNMA ±		3.61			4-1-2034		1,912,238		2,065,493
FNMA ±		3.63			7-1-2021		234,412		238,835
FNMA ±		3.75			10-1-2034		388,747		400,450
FNMA ±		3.78			12-1-2050		222,291		224,210
FNMA ±		3.83			7-1-2017		40,483		43,409
FNMA ±		3.85			12-1-2032		177,296		187,105
FNMA ±		3.92			2-1-2033		101,845		102,889
FNMA ±		3.92			4-1-2032		260,440		261,748
FNMA ±		3.95			9-1-2023		7,624		7,716
FNMA ±		3.97			9-1-2028		8,017		8,374
FNMA ±		4.05			5-1-2034		561,416		605,752
FNMA ±		4.06			10-1-2018		60		61
FNMA ±		4.09			6-1-2019		5,203		5,298
FNMA ±		4.20			9-1-2017		3,287		3,286
FNMA ±		4.20			11-1-2031		158,020		157,470
FNMA ±		4.20			11-1-2031		23,993		24,290
FNMA ±		4.26			8-1-2017		33,394		34,847
FNMA ±		4.30			1-1-2018		998		994
FNMA ±		4.31			6-1-2034		495,728		526,937
FNMA ±		4.34			5-1-2017		1,582		1,598
FNMA ±		4.39			9-1-2031		349,405		355,979
FNMA ±		4.40			12-1-2036		174,637		185,726
FNMA ±		4.47			6-1-2028		83,801		89,913
FNMA		4.60			9-1-2016		471,727		480,744
FNMA ±		4.61			2-1-2019		471,899		504,836
FNMA ±		4.79			1-1-2019		636,726		681,822
FNMA ±		4.94			4-1-2018		256,991		275,058
FNMA ±		4.96			5-1-2025		1,260		1,277
FNMA ±		5.06			11-1-2019		410		416
FNMA ±		5.16			6-1-2028		53,290		51,824
FNMA ±		5.25			10-1-2021		16,724		16,757
FNMA ±		5.45			11-1-2014		481		480
FNMA ±		5.49			7-1-2037		1,481,192		1,554,512
FNMA		5.50			9-1-2019		231,005		248,117
FNMA ±		5.57			1-1-2019		145,771		158,543

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 15

Security name	Interest rate			Maturity date		Principal			Value
Agency Securities (continued)
FNMA ±		5.85	%		3-1-2014	$	802		$	853
FNMA ±		6.00			1-1-2020		16,884			17,206
FNMA ±		6.14			9-1-2017		437			453
FNMA ±		6.45			2-1-2034		79,939			79,189
FNMA		6.50			8-1-2028		72,194			74,404
FNMA		6.50			5-1-2031		213,009	��		238,593
FNMA ±		6.72			3-1-2023		6,489			6,349
FNMA		7.00			11-1-2014		1,277			1,292
FNMA		7.00			11-1-2017		37,246			39,636
FNMA		7.06			11-1-2024		51,884			54,298
FNMA		7.06			12-1-2024		35,564			36,006
FNMA		7.06			1-1-2025		32,150			32,453
FNMA		7.06			3-1-2025		67,199			70,415
FNMA		7.06			3-1-2025		12,111			12,154
FNMA		7.06			4-1-2025		24,141			24,228
FNMA		7.06			1-1-2027		62,186			64,777
FNMA		7.50			2-1-2016		144,576			149,868
FNMA		7.50			1-1-2031		240,498			274,501
FNMA		7.50			1-1-2033		331,976			377,696
FNMA		7.50			5-1-2033		235,899			268,365
FNMA		7.50			5-1-2033		219,122			248,463
FNMA		7.50			6-1-2033		140,282			153,096
FNMA		7.50			7-1-2033		289,589			330,509
FNMA		7.50			8-1-2033		260,432			297,111
FNMA		8.00			12-1-2026		142,232			163,170
FNMA		8.00			2-1-2030		372			381
FNMA		8.00			3-1-2030		418			474
FNMA		8.00			7-1-2031		47,126			48,412
FNMA		8.00			5-1-2033		326,937			376,667
FNMA		8.50			10-1-2026		18,615			21,062
FNMA		8.50			2-1-2027		50,956			54,084
FNMA		8.50			6-1-2030		66,508			70,503
FNMA		8.51			8-1-2024		82,330			87,199
FNMA		9.00			7-1-2030		15,319			15,395
FNMA ±		9.10			10-1-2024		524			496
FNMA		9.50			8-1-2021		39,573			42,286
FNMA		9.50			12-1-2024		29,022			29,634
FNMA		10.00			1-1-2021		25,720			26,501
FNMA		11.00			1-1-2018		9,459			10,496
FNMA		12.50			7-1-2015		127			128
FNMA Series 1989-74 Class J		9.80			10-25-2019		23,945			27,469
FNMA Series 1989-96 Class H		9.00			12-25-2019		13,526			15,176
FNMA Series 1992-39 Class FA ±		2.18			3-25-2022		273,617			288,501
FNMA Series 1992-45 Class F ±		2.18			4-25-2022		49,089			51,548
FNMA Series 1992-87 Class Z		8.00			5-25-2022		30,835			35,032
FNMA Series 1993-113 Class FA ±		2.10			7-25-2023		193,877			202,396
FNMA Series 1994-14 Class F ±		2.38			10-25-2023		427,887			444,221
FNMA Series 1998-T2 Class A5 ±		2.35			1-25-2032		952,531			975,302
FNMA Series 2001-50 Class BA		7.00			10-25-2041		322,335			371,209
FNMA Series 2001-63 Class FD ±		0.75			12-18-2031		229,539			232,658

16 Wells Fargo Advantage Adjustable Rate Government Fund Portfolio of investments—February 28, 2014 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA Series 2001-81 Class F ±		0.71	%		1-25-2032	$	154,391	$	156,284
FNMA Series 2001-T08 Class A1		7.50			7-25-2041		220,856		258,876
FNMA Series 2001-T10 Class A2		7.50			12-25-2041		4,946,993		5,748,589
FNMA Series 2001-T12 Class A2		7.50			8-25-2041		359,550		425,039
FNMA Series 2001-T12 Class A4 ±		3.38			8-25-2041		9,069,591		9,245,042
FNMA Series 2001-W03 Class A ±		7.00			9-25-2041		1,152,839		1,330,015
FNMA Series 2002-05 Class FD ±		1.06			2-25-2032		431,696		441,885
FNMA Series 2002-66 Class A3 ±		3.09			4-25-2042		12,487,158		12,825,023
FNMA Series 2002-T12 Class A3		7.50			5-25-2042		1,591,813		1,877,303
FNMA Series 2002-T12 Class A5 ±		3.44			10-25-2041		2,966,020		3,083,133
FNMA Series 2002-T18 Class A5 ±		3.53			5-25-2042		868,861		912,840
FNMA Series 2002-T19 Class A4 ±		3.32			3-25-2042		181,756		189,125
FNMA Series 2002-W1 Class 3A ±		3.15			4-25-2042		2,132,180		2,173,511
FNMA Series 2002-W4 Class A6 ±		3.33			5-25-2042		3,295,452		3,473,090
FNMA Series 2003-07 Class A2 ±		2.41			5-25-2042		1,486,249		1,560,492
FNMA Series 2003-63 Class A8 ±		2.64			1-25-2043		1,993,735		2,034,016
FNMA Series 2003-W02 Class 1A3		7.50			7-25-2042		519,197		613,703
FNMA Series 2003-W04 Class 5A ±		3.13			10-25-2042		1,923,316		1,987,385
FNMA Series 2003-W08 Class 4A ±		3.13			11-25-2042		2,416,824		2,518,229
FNMA Series 2003-W10 Class 2A ±		3.07			6-25-2043		4,709,416		4,949,280
FNMA Series 2003-W18 Class 2A ±		3.35			6-25-2043		17,120,777		17,908,641
FNMA Series 2004-T3 Class 1A3		7.00			2-25-2044		807,506		919,656
FNMA Series 2004-T3 Class 2A ±		3.13			8-25-2043		2,797,745		2,951,492
FNMA Series 2004-T9 Class A1 ±		0.29			4-25-2035		178,826		177,555
FNMA Series 2004-W02 Class 5A		7.50			3-25-2044		323,641		380,976
FNMA Series 2004-W1 Class 2A2		7.00			12-25-2033		443,445		513,468
FNMA Series 2004-W1 Class 3A ±		3.28			1-25-2043		144,346		153,454
FNMA Series 2004-W12 Class 2A ±		3.36			6-25-2044		8,661,849		9,226,341
FNMA Series 2004-W15 Class 3A ±		2.67			6-25-2044		11,345,918		11,989,788
FNMA Series 2005-W3 Class 3A ±		2.69			4-25-2045		2,228,313		2,372,645
FNMA Series 2006-W1 Class 3A ±		2.15			10-25-2045		12,364,158		13,040,811
FNMA Series 2009-95 Class AY		4.00			6-25-2023		2,185		2,185
FNMA Series 2010-M3 Class A1		2.59			3-25-2020		59,170		59,634
FNMA Series G92-20 Class FB ±		2.18			4-25-2022		167,161		166,272
FNMA Series G93-1 Class K		6.68			1-25-2023		817,335		914,820
FNMA Series G93-19 Class FD ±		2.10			4-25-2023		734,487		768,307
GNMA ±		1.63			2-20-2017		11,302		11,383
GNMA ±		1.63			3-20-2017		14,533		15,116
GNMA ±		1.63			5-20-2017		34,127		35,430
GNMA ±		1.63			5-20-2017		15,818		16,423
GNMA ±		1.63			6-20-2017		3,389		3,519
GNMA ±		1.63			9-20-2017		23,598		24,297
GNMA ±		1.63			9-20-2017		2,035		2,115
GNMA ±		1.63			6-20-2021		67,199		69,805
GNMA ±		1.63			8-20-2021		24,397		25,369
GNMA ±		1.63			8-20-2021		52,430		54,519
GNMA ±		1.63			12-20-2021		10,778		11,238
GNMA ±		1.63			1-20-2022		120,908		125,847
GNMA ±		1.63			2-20-2022		46,342		47,922
GNMA ±		1.63			2-20-2022		108,553		112,989

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 17

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
GNMA ±		1.63	%		2-20-2022	$	7,037	$	7,325
GNMA ±		1.63			3-20-2022		130,983		136,335
GNMA ±		1.63			3-20-2022		220,291		229,292
GNMA ±		1.63			4-20-2022		351,224		364,860
GNMA ±		1.63			4-20-2022		342,510		355,807
GNMA ±		1.63			5-20-2022		33,131		34,418
GNMA ±		1.63			5-20-2022		327,362		340,073
GNMA ±		1.63			5-20-2022		90,149		93,649
GNMA ±		1.63			6-20-2022		27,163		28,218
GNMA ±		1.63			7-20-2022		13,261		13,789
GNMA ±		1.63			9-20-2022		113,402		113,619
GNMA ±		1.63			9-20-2022		51,370		53,419
GNMA ±		1.63			9-20-2022		11,407		11,862
GNMA ±		1.63			10-20-2022		38,286		39,921
GNMA ±		1.63			10-20-2022		134,330		140,066
GNMA ±		1.63			11-20-2022		84,027		87,615
GNMA ±		1.63			11-20-2022		105,639		110,150
GNMA ±		1.63			12-20-2022		31,202		32,534
GNMA ±		1.63			12-20-2022		421,088		439,071
GNMA ±		1.63			12-20-2022		8,439		8,799
GNMA ±		1.63			1-20-2023		944,705		983,345
GNMA ±		1.63			1-20-2023		67,019		69,760
GNMA ±		1.63			2-20-2023		84,927		88,401
GNMA ±		1.63			2-20-2023		47,408		49,348
GNMA ±		1.63			2-20-2023		87,131		90,695
GNMA ±		1.63			3-20-2023		90,052		93,736
GNMA ±		1.63			4-20-2023		14,794		15,369
GNMA ±		1.63			4-20-2023		35,986		37,385
GNMA ±		1.63			5-20-2023		13,332		13,850
GNMA ±		1.63			5-20-2023		31,300		31,953
GNMA ±		1.63			6-20-2023		336,348		349,424
GNMA ±		1.63			6-20-2023		147,389		153,118
GNMA ±		1.63			7-20-2023		4,940		5,138
GNMA ±		1.63			9-20-2023		449,894		467,859
GNMA ±		1.63			9-20-2023		97,936		101,846
GNMA ±		1.63			9-20-2023		388,528		404,042
GNMA ±		1.63			10-20-2023		961,057		1,002,135
GNMA ±		1.63			11-20-2023		703,724		733,805
GNMA ±		1.63			11-20-2023		684,442		713,698
GNMA ±		1.63			12-20-2023		31,440		32,784
GNMA ±		1.63			12-20-2023		123,429		128,705
GNMA ±		1.63			12-20-2023		913,545		952,595
GNMA ±		1.63			4-20-2024		47,276		49,115
GNMA ±		1.63			4-20-2024		263,499		273,750
GNMA ±		1.63			5-20-2024		222,224		230,870
GNMA ±		1.63			5-20-2024		20,071		20,852
GNMA ±		1.63			6-20-2024		24,403		25,352
GNMA ±		1.63			6-20-2024		35,884		37,280
GNMA ±		1.63			6-20-2024		127,959		132,937
GNMA ±		1.63			7-20-2024		87,961		91,476

18 Wells Fargo Advantage Adjustable Rate Government Fund Portfolio of investments—February 28, 2014 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
GNMA ±		1.63	%		7-20-2024	$	660,507	$	686,900
GNMA ±		1.63			8-20-2024		43,640		45,384
GNMA ±		1.63			11-20-2024		114,130		119,012
GNMA ±		1.63			4-20-2025		138,530		143,924
GNMA ±		1.63			9-20-2025		184,138		191,504
GNMA ±		1.63			10-20-2025		672,653		701,453
GNMA ±		1.63			1-20-2026		732,050		762,071
GNMA ±		1.63			2-20-2026		568,952		592,286
GNMA ±		1.63			10-20-2026		125,727		131,113
GNMA ±		1.63			1-20-2027		261,131		271,847
GNMA ±		1.63			1-20-2027		10,151		10,459
GNMA ±		1.63			5-20-2027		27,060		28,115
GNMA ±		1.63			8-20-2027		21,677		22,512
GNMA ±		1.63			9-20-2027		3,871		4,026
GNMA ±		1.63			10-20-2027		7,882		8,220
GNMA ±		1.63			1-20-2028		8,690		9,047
GNMA ±		1.63			12-20-2029		238,112		248,326
GNMA ±		1.63			1-20-2030		132,499		137,942
GNMA ±		1.63			10-20-2030		167,328		174,508
GNMA ±		1.63			11-20-2031		6,157		6,345
GNMA ±		1.63			4-20-2032		80,878		84,037
GNMA ±		1.63			5-20-2032		218,634		227,172
GNMA ±		1.63			6-20-2032		472,709		491,170
GNMA ±		1.63			11-20-2032		559,163		583,168
GNMA ±		1.63			2-20-2033		4,263		4,438
GNMA ±		1.63			3-20-2033		48,683		50,685
GNMA ±		2.00			1-20-2017		8,511		8,849
GNMA ±		2.00			2-20-2017		46,352		48,197
GNMA ±		2.00			3-20-2017		8,021		8,340
GNMA ±		2.00			9-20-2017		2,939		3,066
GNMA ±		2.00			7-20-2018		481		501
GNMA ±		2.00			8-20-2018		7,221		7,536
GNMA ±		2.00			1-20-2021		22,730		23,650
GNMA ±		2.00			2-20-2021		54,000		56,187
GNMA ±		2.00			8-20-2021		11,536		12,042
GNMA ±		2.00			10-20-2021		247,261		258,113
GNMA ±		2.00			11-20-2021		31,510		32,894
GNMA ±		2.00			2-20-2022		4,987		5,189
GNMA ±		2.00			3-20-2022		42,246		43,960
GNMA ±		2.00			5-20-2022		20,419		21,367
GNMA ±		2.00			7-20-2022		7,098		7,410
GNMA ±		2.00			12-20-2022		71,490		74,632
GNMA ±		2.00			2-20-2023		5,834		6,071
GNMA ±		2.00			10-20-2024		1,200,675		1,253,537
GNMA ±		2.00			11-20-2024		578,886		604,374
GNMA ±		2.00			7-20-2025		8,109		8,467
GNMA ±		2.00			9-20-2026		121,152		126,495
GNMA ±		2.00			11-20-2026		10,659		11,128
GNMA ±		2.00			2-20-2027		7,536		7,843
GNMA ±		2.00			7-20-2027		2,869		2,995

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 19

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
GNMA ±		2.00	%		8-20-2027	$	4,578	$	4,780
GNMA ±		2.00			11-20-2027		6,713		6,874
GNMA ±		2.06			8-20-2062		8,685,894		9,156,521
GNMA ±		2.07			9-20-2062		2,693,790		2,844,383
GNMA ±		2.13			1-20-2022		4,614		4,806
GNMA ±		2.13			7-20-2022		5,236		5,468
GNMA ±		2.13			7-20-2022		6,584		6,876
GNMA ±		2.50			7-20-2016		9,961		10,402
GNMA ±		2.50			8-20-2017		15,482		16,176
GNMA ±		2.50			10-20-2017		6,872		7,216
GNMA ±		2.50			11-20-2017		14,400		15,120
GNMA ±		2.50			12-20-2017		15,447		16,221
GNMA ±		2.50			7-20-2018		41,960		43,851
GNMA ±		2.50			8-20-2018		16,887		17,649
GNMA ±		2.50			3-20-2019		2,767		2,889
GNMA ±		2.50			11-20-2020		17,930		18,838
GNMA ±		2.50			12-20-2020		12,314		12,938
GNMA ±		2.50			5-20-2021		11,790		12,338
GNMA ±		2.50			12-20-2021		30,005		31,050
GNMA ±		2.50			7-20-2022		7,335		7,669
GNMA ±		2.50			7-20-2024		318,339		332,850
GNMA ±		2.50			8-20-2024		58,575		61,245
GNMA ±		2.50			10-20-2024		558,308		586,696
GNMA ±		2.50			12-20-2024		399,450		419,762
GNMA ±		2.50			4-20-2025		5,843		6,116
GNMA ±		2.75			10-20-2017		38,350		40,141
GNMA ±		3.00			2-20-2016		6,240		6,338
GNMA ±		3.00			3-20-2016		12,542		12,787
GNMA ±		3.00			4-20-2016		11,041		11,399
GNMA ±		3.00			5-20-2016		965		996
GNMA ±		3.00			7-20-2017		7,924		8,189
GNMA ±		3.00			8-20-2017		82,974		86,279
GNMA ±		3.00			8-20-2017		6,717		6,939
GNMA ±		3.00			9-20-2017		87,289		90,768
GNMA ±		3.00			11-20-2017		16,997		17,692
GNMA ±		3.00			12-20-2017		107,510		111,906
GNMA ±		3.00			1-20-2018		29,048		30,486
GNMA ±		3.00			6-20-2018		6,611		6,864
GNMA ±		3.00			11-20-2018		3,999		4,179
GNMA ±		3.00			12-20-2018		978		1,022
GNMA ±		3.00			1-20-2019		3,143		3,299
GNMA ±		3.00			2-20-2019		7,250		7,611
GNMA ±		3.00			3-20-2019		10,463		10,984
GNMA ±		3.00			5-20-2019		17,484		18,156
GNMA ±		3.00			6-20-2019		37,421		38,859
GNMA ±		3.00			8-20-2019		13,238		13,687
GNMA ±		3.00			6-20-2020		8,429		8,754
GNMA ±		3.00			1-20-2021		260		273
GNMA ±		3.00			2-20-2021		366		384
GNMA ±		3.50			9-20-2017		14,987		15,770

20 Wells Fargo Advantage Adjustable Rate Government Fund Portfolio of investments—February 28, 2014 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
GNMA ±		3.50	%		10-20-2017	$	257	$	259
GNMA ±		3.50			11-20-2017		38,433		40,473
GNMA ±		3.50			2-20-2018		29,182		30,714
GNMA ±		3.50			3-20-2018		3,589		3,777
GNMA ±		3.50			4-20-2018		5,804		6,117
GNMA ±		3.50			5-20-2018		1,324		1,338
GNMA ±		3.50			9-20-2018		4,425		4,657
GNMA ±		3.50			2-20-2019		25,232		26,561
GNMA ±		3.50			9-20-2019		35,900		37,790
GNMA ±		3.50			1-20-2020		12,100		12,664
GNMA ±		4.00			1-20-2016		96,053		101,276
GNMA ±		4.00			3-20-2016		17,588		18,546
GNMA ±		4.00			4-20-2016		2,321		2,441
GNMA ±		4.00			5-20-2016		328		344
GNMA ±		4.00			11-20-2017		16,155		17,040
GNMA ±		4.00			4-20-2018		10,530		11,060
GNMA ±		4.00			11-20-2018		60,973		64,342
GNMA ±		4.00			1-20-2019		84,723		86,250
GNMA ±		4.00			5-20-2019		4,468		4,693
GNMA ±		4.50			12-20-2017		2,808		2,987
GNMA ±		5.00			8-20-2015		2,288		2,378
GNMA ±		5.00			9-20-2015		3,827		3,995
GNMA ±		5.00			10-20-2015		4,030		4,212
GNMA		6.45			4-20-2025		76,008		84,936
GNMA		6.45			5-20-2025		34,926		37,934
GNMA		6.45			9-20-2025		50,257		57,959
GNMA		6.50			6-20-2034		84,827		88,771
GNMA		6.50			8-20-2034		1,079,523		1,287,573
GNMA		6.50			8-20-2034		122,098		130,098
GNMA		6.75			2-15-2029		135,760		153,254
GNMA		7.00			7-20-2034		67,206		77,443
GNMA		7.25			7-15-2017		15,736		15,976
GNMA		7.25			8-15-2017		35,779		37,952
GNMA		7.25			8-15-2017		18,225		18,558
GNMA		7.25			9-15-2017		27,674		29,444
GNMA		7.25			10-15-2017		48,813		51,724
GNMA		7.25			10-15-2017		23,749		25,122
GNMA		7.25			11-15-2017		20,618		21,622
GNMA		7.25			1-15-2018		8,083		8,116
GNMA		7.25			1-15-2018		10,677		10,720
GNMA		7.25			2-15-2018		21,079		21,581
GNMA		7.25			5-15-2018		11,215		11,261
GNMA		9.00			5-15-2016		5,963		5,994
GNMA		9.00			7-15-2016		625		628
GNMA		9.00			8-15-2016		8,452		8,497
GNMA		9.00			11-15-2016		5,154		5,182
GNMA		9.00			11-15-2016		3,224		3,399
GNMA		9.00			12-15-2016		202		203
GNMA		9.00			2-15-2017		5,567		5,931
GNMA		9.00			5-15-2017		1,020		1,025

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 21

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
GNMA		9.00	%		7-15-2017	$	8,436	$	8,482
GNMA		9.00			3-15-2020		4,149		4,293
GNMA		9.00			8-15-2021		705		709
GNMA		9.00			7-20-2024		1,055		1,087
GNMA		9.00			8-20-2024		445		504
GNMA		9.00			9-20-2024		2,583		2,983
GNMA		9.00			10-20-2024		10,591		11,844
GNMA		9.00			11-20-2024		582		634
GNMA		9.00			1-20-2025		8,777		10,224
GNMA		9.00			2-20-2025		25,141		29,042
GNMA Series 2011-H12 Class FA ±		0.66			2-20-2061		3,406,369		3,391,221
GNMA Series 2011-H17 Class FA ±		0.70			6-20-2061		1,857,225		1,852,270
SBA ±		4.01			9-25-2037		12,752,064		14,658,541
Total Agency Securities (Cost $1,465,657,494)									1,492,184,255
	Yield					Shares
Short-Term Investments: 2.60%
Investment Companies: 2.54%
Wells Fargo Advantage Government Money Market Fund, Institutional Class (l)(u)		0.01					39,291,402		39,291,402
						Principal
U.S. Treasury Securities: 0.06%
U.S. Treasury Bill #(z)		0.03			3-20-2014	$	900,000		899,987
Total Short-Term Investments (Cost $40,191,376)									40,191,389

Total investments in securities (Cost $1,505,848,870) *	99.33	%		1,532,375,644
Other assets and liabilities, net	0.67			10,264,945
Total net assets	100.00	%	$	1,542,640,589

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

(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 the current yield to maturity.

* Cost for federal income tax purposes is $1,506,813,578 and unrealized appreciation (depreciation) consists of:

Gross unrealized appreciation	$	27,480,767
Gross unrealized depreciation		(1,918,701	)
Net unrealized appreciation	$	25,562,066

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage Government Securities Fund 1

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities: 66.43%
FDIC Series 2010-S1 Class 1A ±144A		0.71	%		2-25-2048	$	9,668,791	$	9,708,172
FDIC Series 2013-R1 Class A 144A		1.15			3-25-2033		6,581,242		6,394,135
FHLB		5.63			3-14-2036		6,150,000		7,551,616
FHLMC ±		0.59			11-15-2033		1,658,032		1,659,561
FHLMC ±		2.26			10-1-2026		247,899		264,680
FHLMC		2.38			1-13-2022		10,415,000		10,263,639
FHLMC ±		2.38			6-1-2032		98,824		104,054
FHLMC ±		2.53			7-1-2029		240,638		253,768
FHLMC ±		2.53			9-1-2031		9,876		10,079
FHLMC ±		2.53			9-1-2031		59,944		60,960
FHLMC ±		2.62			1-1-2038		1,098,283		1,177,708
FHLMC ±		2.95			5-1-2026		75,354		78,841
FHLMC ±		3.05			7-1-2032		1,939,678		1,987,031
FHLMC %%		3.50			3-1-2044		80,990,000		81,888,487
FHLMC %%		4.00			3-1-2044		11,875,000		12,413,086
FHLMC		4.50			3-1-2042		1,252,193		1,344,009
FHLMC		5.00			5-1-2018		359,840		384,013
FHLMC		5.00			4-1-2019		310,791		331,891
FHLMC		5.00			4-1-2019		334,010		356,686
FHLMC		5.00			6-1-2019		446,950		477,406
FHLMC		5.00			8-1-2019		1,714,297		1,830,792
FHLMC		5.00			10-1-2019		612,631		659,960
FHLMC		5.00			2-1-2020		1,758,000		1,894,042
FHLMC		5.00			8-1-2040		3,931,429		4,302,298
FHLMC		5.50			11-1-2023		283,753		309,654
FHLMC		5.50			7-1-2035		10,764,843		11,975,290
FHLMC		5.50			12-1-2038		7,071,545		7,751,900
FHLMC		6.00			1-1-2024		4,383,564		4,800,183
FHLMC		6.00			10-1-2032		85,432		96,093
FHLMC		6.00			5-25-2043		7,321,620		8,358,002
FHLMC ±		6.38			1-1-2026		83,263		82,287
FHLMC		6.50			4-1-2018		34,533		36,545
FHLMC		6.50			4-1-2021		71,548		75,650
FHLMC		6.50			4-1-2022		157,019		175,989
FHLMC		6.50			9-1-2028		47,965		54,504
FHLMC		6.50			9-1-2028		24,159		27,077
FHLMC		6.50			7-1-2031		8		9
FHLMC		6.50			8-1-2037		213,461		231,303
FHLMC		7.00			10-1-2014		96,115		97,458
FHLMC		7.00			12-1-2023		7,359		8,305
FHLMC		7.00			5-1-2024		11,903		12,218
FHLMC		7.00			12-1-2026		2,442		2,500
FHLMC		7.00			12-1-2026		4,449		4,824
FHLMC		7.00			12-1-2026		377		379
FHLMC		7.00			12-1-2026		990		1,111
FHLMC		7.00			4-1-2029		4,130		4,631
FHLMC		7.00			4-1-2029		1,959		1,966
FHLMC		7.00			5-1-2029		28,529		31,942
FHLMC		7.00			4-1-2032		246,194		280,862
FHLMC		7.50			11-1-2031		306,923		355,125

2 Wells Fargo Advantage Government Securities Fund Portfolio of investments—February 28, 2014 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC		7.50	%		4-1-2032	$	289,840	$	335,170
FHLMC		8.00			2-1-2017		8,987		9,548
FHLMC		8.00			8-1-2023		41,497		46,040
FHLMC		8.00			6-1-2024		10,487		12,243
FHLMC		8.00			6-1-2024		4,120		4,273
FHLMC		8.00			6-1-2024		13,488		15,143
FHLMC		8.00			8-1-2026		30,512		36,716
FHLMC		8.00			11-1-2026		32,937		39,001
FHLMC		8.00			11-1-2028		24,020		27,532
FHLMC		8.50			7-1-2022		5,588		6,298
FHLMC		8.50			12-1-2025		22,625		26,306
FHLMC		8.50			5-1-2026		3,231		3,684
FHLMC		8.50			8-1-2026		7,587		8,016
FHLMC		8.50			8-1-2026		27,350		27,487
FHLMC		9.00			6-1-2016		4,214		4,263
FHLMC		9.00			1-1-2017		9,513		9,611
FHLMC		9.00			4-1-2017		13,849		14,727
FHLMC		9.00			11-1-2018		52,391		55,610
FHLMC		9.00			8-1-2019		564		615
FHLMC		9.00			8-1-2019		95		97
FHLMC		9.00			12-1-2019		258		286
FHLMC		9.00			1-1-2020		49		49
FHLMC		9.00			2-1-2020		179		200
FHLMC		9.00			3-1-2020		2,197		2,255
FHLMC		9.00			3-1-2020		295		307
FHLMC		9.00			9-1-2020		284		316
FHLMC		9.00			9-1-2020		850		894
FHLMC		9.00			12-1-2020		70		72
FHLMC		9.00			3-1-2021		6,015		6,684
FHLMC		9.00			4-1-2021		7,054		7,745
FHLMC		9.00			4-1-2021		311		353
FHLMC		9.00			4-1-2021		68,990		74,282
FHLMC		9.00			7-1-2021		5,307		5,335
FHLMC		9.00			7-1-2021		4,463		4,652
FHLMC		9.00			8-1-2021		728		832
FHLMC		9.00			4-1-2022		1,231		1,236
FHLMC		9.00			7-1-2022		835		893
FHLMC		9.00			9-1-2024		1,769		1,999
FHLMC		9.50			9-1-2016		45		48
FHLMC		9.50			10-1-2016		297		317
FHLMC		9.50			8-1-2018		38		38
FHLMC		9.50			8-1-2019		193		215
FHLMC		9.50			2-1-2020		10		11
FHLMC		9.50			6-1-2020		102		114
FHLMC		9.50			8-1-2020		478		538
FHLMC		9.50			9-1-2020		22		22
FHLMC		9.50			9-1-2020		8,013		8,717
FHLMC		9.50			9-1-2020		70		80
FHLMC		9.50			10-1-2020		85		96
FHLMC		9.50			10-1-2020		47		53

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage Government Securities Fund 3

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC		9.50	%		11-1-2020	$	97	$	109
FHLMC		9.50			5-1-2021		290		331
FHLMC		9.50			9-17-2022		790,266		884,296
FHLMC		9.50			4-1-2025		73,398		84,431
FHLMC		10.00			8-1-2017		19		21
FHLMC		10.00			1-1-2019		19		21
FHLMC		10.00			8-1-2019		23		24
FHLMC		10.00			12-1-2019		294		332
FHLMC		10.00			3-1-2020		28		31
FHLMC		10.00			6-1-2020		41		47
FHLMC		10.00			7-1-2020		54		58
FHLMC		10.00			8-1-2020		45		52
FHLMC		10.00			10-1-2021		76,104		85,148
FHLMC		10.00			8-17-2022		360,044		385,542
FHLMC		10.00			2-17-2025		795,584		869,478
FHLMC		10.50			2-1-2019		29		30
FHLMC		10.50			5-1-2019		123		125
FHLMC		10.50			6-1-2019		16		18
FHLMC		10.50			8-1-2019		21,657		24,322
FHLMC		10.50			12-1-2019		35,942		38,394
FHLMC		10.50			5-1-2020		50,424		57,278
FHLMC		10.50			5-1-2020		6,210		6,451
FHLMC		10.50			8-1-2020		15,895		15,999
FHLMC		10.50			8-1-2020		35,908		37,823
FHLMC Series 16 Class D		10.00			10-15-2019		16,553		17,943
FHLMC Series 2882 Class TF ±		0.40			10-15-2034		3,327,286		3,333,412
FHLMC Series 3221 Class VA		5.00			9-15-2017		5,023,385		5,266,080
FHLMC Series 3706 Class C		2.00			8-15-2020		6,488,207		6,600,894
FHLMC Series 3767 Class PD		4.00			7-15-2040		538,617		567,032
FHLMC Series 3948 Class DA		3.00			12-15-2024		1,118,302		1,176,381
FHLMC Series K020 Class X1 ±(c)		1.47			5-25-2022		48,522,330		4,540,865
FHLMC Series T-57 Class 1A1		6.50			7-25-2043		1,837,924		2,070,324
FHLMC Series T-57 Class 2A1 ±		3.24			7-25-2043		3,697,078		3,862,415
FHLMC Series T-67 Class 1A1C ±		2.97			3-25-2036		2,041,827		2,119,609
FHLMC Series T-67 Class 2A1C ±		3.00			3-25-2036		3,767,706		3,939,506
FHLMC Series T-75 Class A1 ±		0.20			12-25-2036		7,114,659		7,060,979
FHLMC Series T-15 Class A6 ±		0.59			11-25-2028		254,112		251,676
FHLMC Series T-23 Class A ±		0.44			5-25-2030		1,117,484		1,087,867
FHLMC Series T-35 Class A ±		0.44			9-25-2031		471,595		439,717
FHLMC Series T-42 Class A6		9.50			2-25-2042		1,376,457		1,720,984
FHLMC Series T-55 Class 2A1 ±		2.67			3-25-2043		684,510		690,729
FNMA		1.75			5-30-2019		19,000,000		18,934,241
FNMA ±		1.85			1-1-2043		2,744,485		2,792,715
FNMA ±		2.17			12-1-2035		2,360,201		2,494,932
FNMA ±		2.20			5-1-2036		2,408,099		2,550,063
FNMA ±		2.29			5-1-2036		4,040,293		4,253,858
FNMA ±		2.31			9-1-2031		110,002		117,542
FNMA ±		2.31			11-1-2031		214,823		228,641
FNMA ±		2.34			6-1-2032		179,996		184,297
FNMA ±		2.35			12-1-2034		2,119,915		2,253,694

4 Wells Fargo Advantage Government Securities Fund Portfolio of investments—February 28, 2014 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA ±		2.39	%		12-1-2040	$	91,877	$	98,380
FNMA ±		2.40			9-1-2031		486,764		519,820
FNMA ±		2.41			8-1-2036		2,984,473		3,206,362
FNMA ±		2.42			6-1-2034		826,183		868,976
FNMA ±		2.44			4-1-2032		209,841		224,140
FNMA ±		2.48			9-1-2036		1,836,669		1,947,587
FNMA		2.50			4-25-2039		454,912		464,124
FNMA ±		2.53			10-1-2027		300,975		323,862
FNMA ±		2.83			9-1-2027		811,448		865,251
FNMA		3.00			4-1-2022		1,605,312		1,680,841
FNMA %%		3.00			3-1-2029		18,235,000		18,867,527
FNMA %%		3.00			3-1-2044		81,485,000		79,142,306
FNMA ±		3.05			4-1-2033		136,322		145,215
FNMA ±		3.16			5-1-2036		1,698,994		1,802,926
FNMA ±		3.17			2-1-2027		1,175,540		1,206,144
FNMA ±		3.20			7-1-2026		570,069		614,537
FNMA ±		3.22			1-1-2033		100,039		100,423
FNMA %%		3.50			3-1-2029		15,180,000		16,045,734
FNMA %%		3.50			3-1-2044		28,175,000		28,558,005
FNMA ±		3.97			9-1-2028		473,863		494,976
FNMA		4.00			5-1-2021		1,642,155		1,752,255
FNMA %%		4.00			3-1-2029		12,615,000		13,458,628
FNMA %%		4.00			3-1-2044		54,450,000		57,049,138
FNMA ±		4.11			7-1-2033		166,146		167,130
FNMA		4.15			7-1-2014		10,294,702		10,302,902
FNMA		4.50			8-1-2018		1,646,044		1,758,305
FNMA		4.50			12-1-2018		1,336,314		1,428,224
FNMA %%		4.50			3-1-2029		11,445,000		12,217,538
FNMA %%		4.50			3-1-2044		17,387,000		18,671,329
FNMA		4.68			2-1-2020		3,300,626		3,673,467
FNMA		4.79			5-1-2019		2,191,921		2,441,885
FNMA		5.00			4-1-2014		682		731
FNMA		5.00			12-1-2018		1,022,818		1,096,209
FNMA		5.00			6-1-2019		1,009,083		1,081,518
FNMA		5.00			6-1-2023		2,143,002		2,323,769
FNMA		5.00			3-1-2034		1,518,469		1,670,375
FNMA %%		5.00			8-1-2040		28,108,758		30,864,115
FNMA		5.03			5-1-2015		6,266,968		6,514,868
FNMA		5.22			10-1-2015		3,250,428		3,409,810
FNMA		5.38			5-1-2017		722,127		787,160
FNMA		5.39			1-1-2024		2,732,989		3,073,725
FNMA		5.50			6-1-2016		222,895		238,022
FNMA		5.50			1-1-2025		286,231		312,187
FNMA		5.50			1-1-2025		1,181,157		1,288,976
FNMA		5.50			9-1-2033		4,882,754		5,410,277
FNMA		5.50			9-1-2033		2,219,692		2,456,000
FNMA		5.50			6-1-2034		10,629,334		11,795,141
FNMA		5.50			8-1-2035		1,835,845		2,034,935
FNMA		5.50			1-1-2037		2,042,993		2,262,884
FNMA		5.55			5-1-2016		3,096,413		3,370,743

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage Government Securities Fund 5

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA		5.55	%		9-1-2019	$	2,987,257	$	3,124,773
FNMA		5.61			2-1-2021		2,877,403		3,213,099
FNMA		5.63			2-1-2018		1,088,837		1,222,594
FNMA		5.67			3-1-2016		6,151,311		6,627,497
FNMA		5.67			11-1-2021		5,561,138		6,076,313
FNMA		5.70			3-1-2016		940,280		1,013,300
FNMA		5.75			5-1-2021		3,539,891		4,003,775
FNMA		5.79			10-1-2017		1,080,488		1,213,104
FNMA		5.95			6-1-2024		1,790,022		2,060,736
FNMA		6.00			5-1-2016		102,480		104,796
FNMA		6.00			3-1-2024		179,928		200,205
FNMA		6.00			2-1-2035		2,438,735		2,661,432
FNMA		6.00			11-1-2037		1,869,909		2,083,734
FNMA %%		6.00			3-1-2044		21,385,000		23,804,178
FNMA		6.08			1-1-2019		969,007		1,011,712
FNMA		6.50			6-1-2017		175,314		183,957
FNMA		6.50			1-1-2024		89,653		100,401
FNMA		6.50			3-1-2028		45,741		50,760
FNMA		6.50			12-1-2029		587,809		671,771
FNMA		6.50			11-1-2031		140,782		160,379
FNMA		6.50			7-1-2036		1,113,928		1,246,948
FNMA		6.50			7-1-2036		801,921		897,131
FNMA		6.50			9-1-2037		216,960		235,839
FNMA		6.50			7-25-2042		2,557,728		2,924,503
FNMA		6.65			5-1-2016		1,423,295		1,576,755
FNMA		7.00			11-1-2026		17,293		19,738
FNMA		7.00			9-1-2031		6,305		6,371
FNMA		7.00			1-1-2032		7,025		7,958
FNMA		7.00			2-1-2032		180,353		208,514
FNMA		7.00			2-1-2032		8,456		8,816
FNMA		7.00			10-1-2032		471,789		550,257
FNMA		7.00			2-1-2034		3,896		4,441
FNMA		7.00			4-1-2034		355,300		406,851
FNMA		7.00			12-1-2034		43,765		45,837
FNMA		7.00			1-1-2036		12,295		14,023
FNMA		7.00			9-1-2036		421,006		453,311
FNMA		7.50			7-1-2015		4,914		4,943
FNMA		7.50			9-1-2031		160,429		194,085
FNMA		7.50			11-25-2031		832,202		972,289
FNMA		7.50			2-1-2032		67,284		81,694
FNMA		7.50			10-1-2037		2,839,630		3,361,277
FNMA		8.00			8-1-2020		5,006		5,025
FNMA		8.00			5-1-2027		62,271		65,655
FNMA		8.00			10-1-2027		13,478		13,536
FNMA		8.00			6-1-2028		10,286		11,743
FNMA		8.00			2-1-2030		198,484		228,596
FNMA		8.00			9-1-2040		2,110,441		2,514,065
FNMA		8.50			12-1-2014		176		177
FNMA		8.50			5-1-2017		264,300		283,488
FNMA		8.50			5-1-2017		4,360		4,669

6 Wells Fargo Advantage Government Securities Fund Portfolio of investments—February 28, 2014 (unaudited)

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA		8.50	%		8-1-2024	$	37,851	$	43,091
FNMA		8.50			5-1-2026		244,500		278,929
FNMA		8.50			7-1-2026		33,965		36,684
FNMA		8.50			8-1-2026		17,205		17,723
FNMA		8.50			9-1-2026		504		572
FNMA		8.50			10-1-2026		37,246		38,169
FNMA		8.50			10-1-2026		389		413
FNMA		8.50			10-1-2026		9,879		9,925
FNMA		8.50			11-1-2026		36,422		37,744
FNMA		8.50			11-1-2026		12,172		13,260
FNMA		8.50			11-1-2026		6,251		6,280
FNMA		8.50			12-1-2026		279,653		327,302
FNMA		8.50			12-1-2026		24,207		27,993
FNMA		8.50			12-1-2026		344		345
FNMA		8.50			2-1-2027		579		673
FNMA		8.50			2-1-2027		9,295		9,424
FNMA		8.50			3-1-2027		1,520		1,766
FNMA		8.50			3-1-2027		3,058		3,079
FNMA		8.50			6-1-2027		280,647		323,902
FNMA		8.50			7-1-2029		980		994
FNMA		9.00			3-1-2021		50,021		55,037
FNMA		9.00			6-1-2021		249		281
FNMA		9.00			7-1-2021		76,294		83,755
FNMA		9.00			8-1-2021		340		387
FNMA		9.00			10-1-2021		52,741		57,100
FNMA		9.00			1-1-2025		3,016		3,099
FNMA		9.00			1-1-2025		24,793		28,643
FNMA		9.00			2-1-2025		10,366		10,419
FNMA		9.00			3-1-2025		1,036		1,065
FNMA		9.00			3-1-2025		4,191		4,458
FNMA		9.00			3-1-2025		1,655		1,664
FNMA		9.00			4-1-2025		4,052		4,073
FNMA		9.00			7-1-2028		51,145		58,025
FNMA		9.50			11-1-2020		223		253
FNMA		9.50			12-15-2020		87,128		93,567
FNMA		9.50			1-1-2021		32,025		33,689
FNMA		9.50			6-1-2022		5,104		5,456
FNMA		9.50			7-1-2028		76,064		89,296
FNMA		10.00			12-1-2020		121,812		135,847
FNMA		11.00			2-1-2019		13,701		13,790
FNMA		11.00			10-15-2020		9,640		10,040
FNMA		11.25			2-1-2016		2,685		2,702
FNMA Series 2000-T6 Class A2		9.50			6-25-2030		1,366,138		1,570,489
FNMA Series 2001-T10 Class A3		9.50			12-25-2041		2,072,431		2,386,991
FNMA Series 2001-T12 Class A3		9.50			8-25-2041		518,084		611,557
FNMA Series 2001-T8 Class A3 ±		3.61			7-25-2041		1,443,985		1,455,352
FNMA Series 2002-T19 Class A1		6.50			7-25-2042		6,867,133		7,889,986
FNMA Series 2002-T5 Class A1 ±		0.40			5-25-2032		457,916		450,160
FNMA Series 2003-T2 Class A1 ±		0.44			3-25-2033		410,829		397,087
FNMA Series 2004-T1 Class 1A2		6.50			1-25-2044		1,077,653		1,235,397

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage Government Securities Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA Series 1988-2 Class Z		10.10	%		2-25-2018	$	11,473	$	12,124
FNMA Series 1988-7 Class Z		9.25			4-25-2018		31,859		35,081
FNMA Series 1989-10 Class Z		9.50			3-25-2019		211,514		238,666
FNMA Series 1989-100 Class Z		8.75			12-25-2019		161,900		181,992
FNMA Series 1989-12 Class Y		10.00			3-25-2019		331,552		374,448
FNMA Series 1989-22 Class G		10.00			5-25-2019		216,594		247,510
FNMA Series 1989-63 Class Z		9.40			10-25-2019		31,124		34,096
FNMA Series 1989-98 Class E		9.20			12-25-2019		80,987		90,021
FNMA Series 1990-144 Class W		9.50			12-25-2020		140,086		160,906
FNMA Series 1990-75 Class Z		9.50			7-25-2020		153,229		175,911
FNMA Series 1990-84 Class Y		9.00			7-25-2020		34,563		39,065
FNMA Series 1990-96 Class Z		9.67			8-25-2020		221,147		254,688
FNMA Series 1991-5 Class Z		8.75			1-25-2021		67,929		76,514
FNMA Series 1991-85 Class Z		8.00			6-25-2021		167,155		182,181
FNMA Series 1992-45 Class Z		8.00			4-25-2022		179,677		209,714
FNMA Series 2001-T4 Class A1		7.50			7-25-2041		1,217,753		1,460,521
FNMA Series 2002-T12 Class A5 ±		3.44			10-25-2041		1,672,722		1,738,769
FNMA Series 2002-W4 Class A4		6.25			5-25-2042		1,118,743		1,254,658
FNMA Series 2003-W1 Class 1A1 ±		5.95			12-25-2042		999,421		1,164,352
FNMA Series 2003-W19 Class 1A6		5.29			11-25-2033		104,483		104,576
FNMA Series 2004-79 Class FA ±		0.45			8-25-2032		1,628,654		1,627,024
FNMA Series 2004-W1 Class 2A2		7.00			12-25-2033		2,353,377		2,724,992
FNMA Series 2004-W15 Class 1A3		7.00			8-25-2044		2,022,663		2,367,934
FNMA Series 2005-71 Class DB		4.50			8-25-2025		2,330,010		2,530,552
FNMA Series 2006-9 Class BM		6.00			10-25-2033		1,509,893		1,517,276
FNMA Series 2007-2 Class FA ±		0.36			2-25-2037		454,323		454,384
FNMA Series 2007-W10 Class 2A ±		6.29			8-25-2047		1,223,896		1,391,173
FNMA Series 2009-108 Class DE		4.50			8-25-2027		256,387		261,774
FNMA Series 2011-42 Class A		3.00			2-25-2024		1,685,889		1,751,498
FNMA Series G-8 Class E		9.00			4-25-2021		174,012		197,545
FNMA Series G92-30 Class Z		7.00			6-25-2022		349,340		383,975
FNMA Series G93-39 Class ZQ		6.50			12-25-2023		3,313,831		3,711,988
FNMA Series 161 Class 2		8.50			7-25-2022		81,389		21,690
FNMA Series 265 Class 2		9.00			3-1-2024		217,621		262,265
FNMA Series 1999-W6 Class A ±		9.39			9-25-2028		29,096		30,474
FNMA Series 2003-W06 Class PT4 ±		8.86			10-25-2042		2,671,151		3,107,646
FNMA Series 2003-W11 Class A1 ±		3.29			6-25-2033		184,148		182,017
FNMA Series 2003-W3 Class 1A4 ±		3.36			8-25-2042		4,217,616		4,411,437
FNMA Series 2003-W5 Class A ±		0.38			4-25-2033		443,175		433,860
FNMA Series 2003-W6 Class 6A ±		3.05			8-25-2042		3,033,592		3,165,933
FNMA Series 2003-W8 Class PT1 ±		9.59			12-25-2042		1,101,553		1,286,893
FNMA Series 2003-W9 Class A ±		0.40			6-25-2033		202,749		195,524
GNMA ±		3.00			8-20-2020		223,522		232,554
GNMA ±		3.00			11-20-2020		162,181		168,898
GNMA		4.00			6-20-2042		19,790,116		21,019,415
GNMA		4.00			9-20-2042		461,975		490,523
GNMA %%		4.50			3-1-2044		41,770,000		45,379,187
GNMA		5.00			7-20-2040		9,724,002		10,781,649
GNMA		6.00			8-20-2034		374,519		418,068
GNMA		6.50			12-15-2025		45,346		51,142

8 Wells Fargo Advantage Government Securities Fund Portfolio of investments—February 28, 2014 (unaudited)

Security name	Interest rate			Maturity date		Principal			Value
Agency Securities (continued)
GNMA		6.50	%		4-15-2029	$	628		$	708
GNMA		6.50			5-15-2029		4,100			4,625
GNMA		6.50			5-15-2031		2,667			3,010
GNMA		6.50			7-15-2032		2,043			2,305
GNMA		6.50			9-20-2033		105,871			124,915
GNMA		7.00			12-15-2022		57,869			63,628
GNMA		7.00			5-15-2026		5,530			6,159
GNMA		7.00			3-15-2028		76,119			85,385
GNMA		7.00			1-15-2031		492			510
GNMA		7.00			4-15-2031		3,852			3,971
GNMA		7.00			4-15-2031		1,325			1,374
GNMA		7.00			8-15-2031		22,735			24,364
GNMA		7.00			3-15-2032		16,907			17,510
GNMA		7.34			10-20-2021		65,855			68,700
GNMA		7.34			12-20-2021		23,441			23,536
GNMA		7.34			2-20-2022		21,155			21,240
GNMA		7.34			4-20-2022		28,223	��		28,338
GNMA		7.34			9-20-2022		48,268			52,610
GNMA		8.00			4-15-2023		1,521			1,527
GNMA		8.00			6-15-2023		7,122			7,995
GNMA		8.00			12-15-2023		585,401			693,277
GNMA		8.00			2-15-2024		1,510			1,708
GNMA		8.00			9-15-2024		5,142			5,433
GNMA		8.00			6-15-2025		100			101
GNMA		8.00			6-15-2025		19,534			19,627
GNMA		8.35			4-15-2020		482,549			550,274
GNMA		8.40			5-15-2020		223,496			251,115
GNMA		8.50			7-15-2016		799			803
GNMA		9.00			12-15-2016		4,245			4,268
GNMA		9.00			4-15-2021		3,137			3,204
GNMA		9.50			10-20-2019		101,805			108,708
GNMA		10.00			12-15-2018		8,151			8,202
GNMA		12.50			4-15-2019		6,386			6,561
GNMA		13.00			11-15-2014		277			280
GNMA Series 2002-53 Class IO ±(c)		0.00			4-16-2042		5,343,780			53
GNMA Series 2003-110 Class FT ±		1.40			12-16-2030		2,381			2,382
GNMA Series 2005-23 Class IO ±		0.35			6-17-2045		35,103,473			427,560
GNMA Series 2006-32 Class C ±		5.51			11-16-2038		12,510,000			13,531,379
GNMA Series 2006-32 Class XM ±		0.07			11-16-2045		23,373,010			128,458
GNMA Series 2006-68 Class D ±		5.31			12-16-2037		12,520,000			13,776,908
GNMA Series 2007-35 Class NF ±		0.25			10-16-2035		8,556,535			8,550,691
GNMA Series 2007-44 Class FP ±		0.32			3-20-2036		5,330,632			5,330,189
GNMA Series 2007-69 Class D ±		5.25			6-16-2041		1,000,000			1,082,271
GNMA Series 2008-22 Class XM ±(c)		3.70			2-16-2050		70,460,278			2,509,372
SBA (a)(c)(i)		1.75			2-15-2018		319,068			2,056
SBA Series 1992-6 Class A (a)(c)(i)		2.41			10-15-2017		414,320			2,847
TVA		5.38			4-1-2056		3,670,000			4,049,228
Total Agency Securities (Cost $869,713,654)										886,099,311

Portfolio of investments—February 28, 2014 (unaudited) Wells Fargo Advantage Government Securities Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Municipal Obligations: 0.60%
Arkansas: 0.00%
Arkansas Development Finance Authority (Housing Revenue, GNMA Insured)		9.75	%		11-15-2014	$	35,015	$	35,550
Texas: 0.60%
Retama TX Development Corporation (Miscellaneous Revenue)		10.00			12-15-2020		5,405,000		8,023,398
Total Municipal Obligations (Cost $6,882,723)									8,058,948
Non-Agency Mortgage Backed Securities: 6.04%
Bear Stearns Commercial Mortgage Securities Incorporated Series 2005-PWR-7 Class A3 ±		5.12			2-11-2041		6,450,000		6,655,252
Citigroup Commercial Mortgage Trust Series 2006-C4 Class A3 ±		5.78			3-15-2049		9,917,003		10,757,122
Citigroup Commercial Mortgage Trust Series 2006-C5 Class A4		5.43			10-15-2049		11,280,000		12,345,983
GE Capital Commercial Mortgage Corporation Series 2005-C3 Class A7A ±		4.97			7-10-2045		9,360,000		9,778,813
Lehman Brothers UBS Commercial Mortgage Trust Series 2006-C1 Class A4		5.16			2-15-2031		13,165,000		13,965,129
Morgan Stanley Capital I Series 2004-HQ4 Class A7		4.97			4-14-2040		4,933,142		4,962,247
Morgan Stanley Capital I Series 2006-HQ8 Class A4 ±		5.42			3-12-2044		2,439,621		2,596,267
National Credit Union Administration Board Guaranteed Notes Series 2010-C1 Class A2		2.90			10-29-2020		2,810,000		2,932,465
National Credit Union Administration Board Guaranteed Notes Series 2010-C1 Class APT		2.65			10-29-2020		8,600,617		8,871,536
National Credit Union Administration Board Guaranteed Notes Series 2011-R4 Class 1A ±		0.54			3-6-2020		3,289,748		3,298,226
National Credit Union Administration Board Guaranteed Notes Series 2011-R6 Class 1A ±		0.54			5-7-2020		3,292,090		3,295,734
Vendee Mortgage Trust Series 1995-1 Class 4 ±		8.77			2-15-2025		418,330		484,440
Vendee Mortgage Trust Series 1995-2C Class 3A		8.79			6-15-2025		553,766		670,048
Total Non-Agency Mortgage Backed Securities (Cost $81,236,038)									80,613,262
U.S. Treasury Securities: 49.23%
U.S. Treasury Bond		2.75			8-15-2042		10,585,000		8,980,716
U.S. Treasury Bond		3.75			8-15-2041		20,565,000		21,323,334
U.S. Treasury Bond		4.50			2-15-2036		7,475,000		8,759,766
U.S. Treasury Bond		4.63			2-15-2040		20,150,000		24,088,700
U.S. Treasury Bond		6.25			8-15-2023		18,460,000		24,287,877
U.S. Treasury Bond		7.25			8-15-2022		4,685,000		6,456,881
U.S. Treasury Note		0.13			7-31-2014		129,195,000		129,215,154
U.S. Treasury Note ##		0.25			5-31-2014		129,170,000		129,225,543
U.S. Treasury Note ##		0.38			3-15-2015		82,035,000		82,220,891
U.S. Treasury Note ##		0.38			11-15-2015		30,605,000		30,667,159
U.S. Treasury Note ##		0.50			10-15-2014		120,390,000		120,681,585
U.S. Treasury Note		1.00			8-31-2016		12,240,000		12,390,136
U.S. Treasury Note		1.38			2-28-2019		36,475,000		36,218,544
U.S. Treasury Note		2.75			11-15-2023		21,845,000		22,077,103
Total U.S. Treasury Securities (Cost $654,764,813)									656,593,389

10 Wells Fargo Advantage Government Securities Fund Portfolio of investments—February 28, 2014 (unaudited)

Security name	Interest rate			Maturity date			Principal		Value
Yankee Corporate Bonds and Notes: 2.91%
Financials: 2.91%
Banks: 2.91%
Bank of Nova Scotia 144A		1.65	%		10-29-2015		$	13,235,000	$	13,496,629
Canadian Imperial Bank 144A		0.90			9-19-2014			8,355,000		8,385,788
Nordea Eiendomskreditt 144A		1.88			4-7-2014			10,430,000		10,445,228
Royal Bank of Canada Incorporated		2.00			10-1-2018			6,370,000		6,437,216
Total Yankee Corporate Bonds and Notes (Cost $38,374,786)										38,764,861
	Yield						Shares
Short-Term Investments: 4.48%
Investment Companies: 1.27%
Wells Fargo Advantage Government Money Market Fund, Institutional Class (u)(l)##		0.01						16,851,793		16,851,793
						��
	Interest rate						Principal
U.S. Treasury Securities: 3.21%
Treasury Bill (z)#		0.03			3-20-2014		$	1,400,000		1,399,980
Treasury Bill (z)#		0.04			3-20-2014			41,450,000		41,449,119
										42,849,099
Total Short-Term Investments (Cost $59,700,871)										59,700,892

Total investments in securities (Cost $1,710,672,885) *	129.69	%		1,729,830,663
Other assets and liabilities, net	(29.69	)		(396,059,275	)
Total net assets	100.00	%	$	1,333,771,388

± 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.

(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

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

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

(l) Investment in an affiliate

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

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

* Cost for federal income tax purposes is $1,712,116,317 and unrealized appreciation (depreciation) consists of:

Gross unrealized appreciation	$	31,158,764
Gross unrealized depreciation		(13,444,418	)
Net unrealized appreciation	$	17,714,346

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMEENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS

Not applicable.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

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

ITEM 11. CONTROLS AND PROCEDURES

(a) The President and Treasurer have concluded that the Wells Fargo 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 fiscal quarter of the period covered by this report that materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

ITEM 12. EXHIBITS

(a)(1) Not applicable.

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

(a)(3) Not applicable.

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

SIGNATURES

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

Wells Fargo Funds Trust
By:	/s/ Karla M. Rabusch
	Karla M. Rabusch
	President
Date:	April 25, 2014

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 25, 2014
By:	/s/ Nancy Wiser
	Nancy Wiser
	Treasurer
Date:	April 25, 2014