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

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-09253

Wells Fargo Funds Trust

(Exact name of registrant as specified in charter)

525 Market St., San Francisco, CA 94105

(Address of principal executive offices) (Zip code)

C. David Messman

Wells Fargo Funds Management, LLC

525 Market St., San Francisco, CA 94105

(Name and address of agent for service)

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

Date of fiscal year end: August 31

Registrant is making a filing for 10 of its series:

Wells Fargo Advantage Adjustable Rate Government Bond 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.

Date of reporting period: August 31, 2015

ITEM 1. REPORT TO STOCKHOLDERS

Wells Fargo Advantage

Adjustable Rate Government Fund

Annual Report

August 31, 2015

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

Contents

Letter to shareholders	2
Performance highlights	4
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
Report of independent registered public accounting firm	24
Other information	25
List of abbreviations	31

* A complete schedule of portfolio holdings as of the report date may be obtained, free of charge, by accessing the following website: https://www.wellsfargoadvantagefunds.com/assets/edocs/regulatory/holdings/adjustable-rate-government-ann.pdf or by calling Wells Fargo Advantage Funds at 1-800-222-8222. This complete schedule, filed on Form N-CSR, is also available on the SEC’s website at sec.gov.

The views expressed and any forward-looking statements are as of August 31, 2015, 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

Major central banks continued to inject liquidity into global banks and markets through various accommodative monetary policies, including quantitative easing.

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Advantage Adjustable Rate Government Fund for the 12-month period that ended August 31, 2015. The period was marked by low interest rates, low oil prices, and moderate U.S. economic growth. Short-term investment-grade bonds, as measured by the Barclays U.S. 1–3 Year Government/Credit Bond Index,¹ returned 0.81% during the period. Meanwhile, strong demand for high-quality, liquid assets kept returns on Treasury bills more modest; the Barclays 6-Month Treasury Bill Index² returned 0.15% during the period.

Major central banks continued to provide stimulus.

Major central banks continued to inject liquidity into global banks and markets through various accommodative monetary policies, including quantitative easing. In the U.S., the Federal Reserve (Fed) kept its key interest rate near zero in order to support the economy and the financial system. However, it set expectations for it to begin normalizing monetary policy with higher target ranges for the federal funds rate.

Meanwhile, European markets continued to benefit from the European Central Bank’s (ECB’s) willingness to maintain low interest rates. In addition to its targeted longer-term refinancing operations that are designed to increase bank lending, the ECB expanded its quantitative easing program to include the purchase of eurozone government bonds. In Japan, the Bank of Japan maintained an aggressive monetary program aimed at combating deflation.

Economic growth was moderate, and oil prices plummeted.

U.S. economic growth advanced during the reporting period, the unemployment rate ticked lower to 5.1% as of August 2015, and inflation remained below the Fed’s longer-run objective of a 2% pace. The period was also marked by lower oil prices, which began the reporting period near $90 per barrel but declined to $46 per barrel at the end of August 2015. While lower oil prices benefited consumers of oil products, the lower prices pressured companies within the energy sector.

Bond yields rose but remained low by historical standards.

Short-term interest rates increased during the reporting period, with a flattening in the shape of the short-term yield curve. During this time frame, 1-year Treasury bills rose 29 basis points (bps; 100 bps equals 1.00%) to yield 0.38%, 2-year Treasury note yields rose 21 bps to yield 0.74%, and 3-year Treasury note yields rose only 8 bps to yield 1.05%. Meanwhile, ultra-short-term yields were little changed at ultralow levels, anchored by the easy monetary policy.

Since the end of the financial crisis, structural changes in the fixed-income markets have reduced trading liquidity (the degree to which assets can be bought or sold without affecting the price). New regulations and capital requirements have caused traditional liquidity suppliers (banks and broker/dealers) to be more risk-averse and hold less inventory. Meanwhile, corporate-debt issuance has spiked as companies finance themselves at record-low yields, bond mutual funds hold larger amounts of this new debt supply, trading volumes are lower, and large-size trades are more difficult to execute. However, fixed-income markets appear to have functioned well over the past year with sufficient liquidity and muted volatility.

¹ The Barclays U.S. 1–3 Year Government/Credit Bond Index is the one- to three-year component of the Barclays U.S. Government/Credit Bond Index that includes securities in the Government and Credit Indexes. 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.

² 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.

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

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

Periods of 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 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 in Wells Fargo Advantage Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.

Sincerely,

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Periods of 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.

Notice to shareholders

At a meeting held on August 11–12, 2015, the Board of Trustees of the Fund approved a change in the name of the Fund whereby the word “Advantage” will be removed from its name, effective December 15, 2015.

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.

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

Investment objective

The Fund seeks current income consistent with capital preservation.

Adviser

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Christopher Y. Kauffman, CFA

Michal Stanczyk

Average annual total returns¹ (%) as of August 31, 2015

		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		(1.80	)		0.63		2.02		0.24			1.05		2.22		0.79		0.74
Class B (ESABX)*	6-30-2000		(1.98	)		0.44		1.93		(0.49	)		0.44		1.93		1.54		1.49
Class C (ESACX)	6-30-2000		(1.51	)		0.29		1.47		(0.51	)		0.29		1.47		1.54		1.49
Administrator Class (ESADX)	7-30-2010		–			–		–		0.38			1.19		2.37		0.73		0.60
Institutional Class (EKIZX)	10-1-1991		–			–		–		0.52			1.32		2.50		0.46		0.46
Barclays 6-Month Treasury Bill Index4	–		–			–		–		0.15			0.20		1.70		–		–

* 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 a contigent deferred 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. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the Fund and its share price can be sudden and unpredictable. 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. The U.S. government guarantee applies to certain underlying securities and not to shares of the Fund. Consult the Fund’s prospectus for additional information on these and other risks.

Please see footnotes on page 5.

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

Growth of $10,000 investment⁵ as of August 31, 2015

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 contractually committed through December 31, 2015, 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. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. 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 chart compares the performance of Class A shares for the most recent 10 years with the performance of the Barclays 6-Month Treasury Bill Index. The chart assumes a hypothetical investment of $10,000 in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 2.00%.

⁶  The ten largest holdings, excluding cash and cash equivalents, are calculated based on the value of the investments divided by total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

⁷  Amounts are calculated based on the total long-term investments of the Fund. These amounts are subject to change and may have changed since the date specified.

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

MANAGER’S DISCUSSION

Fund highlights

n The Fund (Class A, excluding sales charges) outperformed its benchmark, the Barclays 6-Month Treasury Bill Index, for the 12-month period that ended August 31, 2015.

n Positive yield spread from adjustable-rate mortgages (ARMs) over short-term Treasuries contributed to outperformance during the period, although spread widening in the sector resulted in negative price performance.

n The Fund’s focus on seasoned ARMs that have already had rate-adjustment resets helped performance because these securities generally exhibited slower, more stable prepayments compared with ARMs with rate-adjustment resets still pending.

n The Fund’s duration during the period was increased from roughly 0.5 years to 0.7 years.

Ten largest holdings6 (%) as of August 31, 2015
FNMA Series 2003-W18 Class 2A, 3.46%, 6-25-2043	1.14
FNMA, 2.86%, 11-1-2035	0.97
FHLMC Series T-67 Class 1A1C, 2.91%, 3-25-2036	0.94
FNMA, 2.41%, 2-1-2036	0.94
FHLMC, 2.02%, 7-1-2034	0.91
FNMA Series 2002-66 Class A3, 3.19%, 4-25-2042	0.87
FHLMC, 2.54%, 9-1-2030	0.82
FNMA Series 2006-W1 Class 3A, 2.18%, 10-25-2045	0.80
FNMA Series 2004-W15 Class 3A, 2.69%, 6-25-2044	0.76
FNMA, 2.42%, 12-1-2040	0.73

The economic climate remained benign.

The U.S. economy featured trend-like growth, a steadily improving labor market, and generally stable inflation over the past 12 months. Real gross domestic product growth averaged about 2.7% in the most recent four quarters as personal income gains supported consumption. In contrast, business investment softened, in part, due to weakness in the energy industry brought on by a collapse in global oil prices.

The labor market continued to tighten over the past 12 months, as evidenced by a full percentage point decline in the unemployment rate to 5.1%. Nonfarm payrolls expanded at an average pace of about 240,000 per month over the period. Following a persistent theme of this

expansion, some of the improvement in the unemployment rate can be attributed to a decline in the labor force participation rate, which fell to 62.6% at the end of the period versus 62.8% a year ago.

The inflationary environment was mixed over the past 12 months as the drop in oil prices pushed the year-over-year change in the headline Consumer Price Index (CPI) down to 0.2% compared with a 1.7% headline inflation rate a year ago. Excluding food and energy, however, the CPI rose 1.8%, which is in line with the average rate of core inflation recorded over the past five years.

Monetary policy transitioned from maximal accommodation to the beginning of a tightening cycle over the past 12 months. The Federal Open Market Committee (FOMC) completed its third round of asset purchases (popularly known as quantitative easing) in the fourth quarter of 2014, though the monetary authorities continue to reinvest the proceeds of maturing principal and interest payments from their existing portfolio. The U.S. Federal Reserve’s overnight rate target remained unchanged throughout the period, with the federal funds rate held to a range of 0.00% to 0.25%. The FOMC has said an initial hike to the federal funds target rate may be appropriate before the end of 2015, to be followed by a very gradual normalization of monetary policy.

Portfolio allocation⁷ as of August 31, 2015

The Fund was predominantly invested in adjustable-rate residential mortgage securities.

The Fund remains defensively positioned with a significant out-of-benchmark allocation to ARMs and floating-rate collateralized mortgage obligations that have frequent rate resets. In addition, we increased the Fund’s duration to approximately 0.7 years over the reporting period. We continue to find value in seasoned ARMs that have already had their rates reset with favorable prepayment characteristics.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 7

We expect a gradual rise in short-term interest rates.

The relatively benign domestic economic conditions described above are likely to result in an increase in interest rates. We believe the FOMC is likely to raise its target rate by 0.75% to 1.00% over the next 12 months, a result which is largely reflected in the current term structure of interest rates. Should market rates diverge from the policy path we think most likely, we will be prepared to modify our duration and yield-curve posture in response to the opportunities presented. The Fund’s short duration and its heavy emphasis on floating-rate assets are expected to result in higher income as short-term rates rise.

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 servicing 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 March 1, 2015 to August 31, 2015.

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 3-1-2015		Ending account value 8-31-2015		Expenses paid during the period1		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,001.80	$	3.73		0.74	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.48	$	3.77		0.74	%
Class B
Actual	$	1,000.00	$	998.16	$	7.30		1.45	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.90	$	7.38		1.45	%
Class C
Actual	$	1,000.00	$	998.02	$	7.50		1.49	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.69	$	7.58		1.49	%
Administrator Class
Actual	$	1,000.00	$	1,002.50	$	3.03		0.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.18	$	3.06		0.60	%
Institutional Class
Actual	$	1,000.00	$	1,003.23	$	2.27		0.45	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.94	$	2.29		0.45	%

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—August 31, 2015 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.

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Agency Securities: 93.87%
FHLMC		0.24-8.50	%		1-1-2016 to 2-25-2045	$	316,843,272	$	334,857,745		25.52	%
FHLMC ±		2.02			7-1-2034		11,303,596		11,963,007		0.91
FHLMC ±		2.39			9-1-2034		5,750,029		6,124,814		0.47
FHLMC ±		2.43			9-1-2035		7,203,669		7,663,631		0.59
FHLMC ±		2.45			6-1-2037		7,455,243		7,949,431		0.61
FHLMC ±		2.45			2-1-2035		5,740,780		6,126,882		0.47
FHLMC ±		2.45			4-1-2038		7,392,534		7,884,172		0.60
FHLMC ±		2.46			6-1-2037		7,446,519		7,957,377		0.61
FHLMC ±		2.48			1-1-2038		7,756,443		8,315,691		0.64
FHLMC ±		2.51			12-1-2034		5,601,651		5,992,920		0.46
FHLMC ±		2.53			4-1-2034		5,252,394		5,619,538		0.43
FHLMC ±		2.54			9-1-2030		10,080,026		10,693,719		0.82
FHLMC ±		2.71			2-1-2036		5,009,906		5,385,657		0.41
FHLMC ±		2.75			8-1-2030		5,602,947		5,991,240		0.46
FHLMC Series T-62 Class 1A1 ±		1.37			10-25-2044		5,775,941		5,907,026		0.45
FHLMC Series T-67 Class 1A1C ±		2.91			3-25-2036		11,682,136		12,327,387		0.94
FHLMC Series T-67 Class 2A1C ±		2.88			3-25-2036		7,259,215		7,562,207		0.58
FNMA		0.44-11.00			2-1-2016 to 12-1-2046		476,396,223		506,651,067		38.68
FNMA ±		2.04			10-1-2035		8,199,443		8,605,789		0.66
FNMA ±		2.07			12-1-2035		6,196,903		6,486,289		0.50
FNMA ±		2.26			5-1-2033		5,435,597		5,801,498		0.44
FNMA ±		2.26			2-1-2036		5,635,587		6,002,542		0.46
FNMA ±		2.29			9-1-2032		6,940,067		7,377,965		0.56
FNMA ±		2.35			5-1-2038		5,120,569		5,451,035		0.42
FNMA ±		2.35			7-1-2038		6,606,841		7,050,988		0.54
FNMA ±		2.37			9-1-2035		7,635,779		8,127,562		0.62
FNMA ±		2.38			1-1-2038		7,005,939		7,499,881		0.57
FNMA ±		2.40			8-1-2039		5,163,696		5,499,079		0.42
FNMA ±		2.40			9-1-2039		7,463,271		7,955,220		0.61
FNMA ±		2.40			12-1-2044		6,021,083		6,400,645		0.49
FNMA ±		2.40			7-1-2039		5,157,361		5,491,980		0.42
FNMA ±		2.40			8-1-2037		5,138,720		5,488,507		0.42
FNMA ±		2.40			1-1-2037		8,598,833		9,160,417		0.70
FNMA ±		2.40			12-1-2040		5,574,437		5,930,876		0.45
FNMA ±		2.41			9-1-2034		5,140,779		5,473,147		0.42
FNMA ±		2.41			2-1-2036		11,516,300		12,322,460		0.94
FNMA ±		2.41			7-1-2036		5,141,918		5,472,014		0.42
FNMA ±		2.42			12-1-2040		9,041,046		9,609,314		0.73
FNMA ±		2.42			1-1-2035		6,088,020		6,462,571		0.49
FNMA ±		2.43			12-1-2035		5,438,788		5,792,671		0.44
FNMA ±		2.46			12-1-2040		5,875,677		6,222,103		0.48
FNMA ±		2.48			2-1-2038		6,399,072		6,820,687		0.52
FNMA ±		2.50			3-1-2037		5,355,053		5,743,458		0.44
FNMA ±		2.86			11-1-2035		11,809,341		12,709,958		0.97
FNMA Series 2001-T12 Class A4 ±		3.47			8-25-2041		7,175,168		7,426,787		0.57
FNMA Series 2002-66 Class A3 ±		3.19			4-25-2042		10,703,098		11,342,287		0.87

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

10 Wells Fargo Advantage Adjustable Rate Government Fund Summary portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Agency Securities (continued)
FNMA Series 2003-W18 Class 2A ±		3.46	%		6-25-2043	$	13,876,110	$	14,905,107		1.14	%
FNMA Series 2004-W12 Class 2A ±		3.43			6-25-2044		7,168,626		7,593,633		0.58
FNMA Series 2004-W15 Class 3A ±		2.69			6-25-2044		9,233,840		10,001,310		0.76
FNMA Series 2006-W1 Class 3A ±		2.18			10-25-2045		9,783,242		10,418,429		0.80
GNMA ±		2.07			8-20-2062		7,473,014		7,878,844		0.60
GNMA		0.68-9.00			5-15-2016 to 9-20-2062		8,396,596		8,703,387		0.66
Other securities									1,408,857		0.11
Total Agency Securities (Cost $1,208,326,955)									1,229,610,808		93.87
Non-Agency Mortgage-Backed Securities: 0.47%
NCUA Guaranteed Notes Program Series 2010-C1 Class A2		2.90			10-29-2020		6,121,289		6,163,354		0.47
Total Non-Agency Mortgage-Backed Securities (Cost $6,164,966)									6,163,354		0.47
	Yield					Shares
Short-Term Investments: 5.18%
Investment Companies: 5.11%
Wells Fargo Advantage Government Money Market Fund, Institutional Class (l)(u)		0.01					66,990,777		66,990,777		5.11
						Principal
U.S. Treasury Securities: 0.07%
U.S. Treasury Bill #(z)		0.01			9-17-2015	$	900,000		899,999		0.07
Total Short-Term Investments (Cost $67,890,774)									67,890,776		5.18
Total investments in securities (Cost $1,282,382,695) *									1,303,664,938		99.52	%
Other assets and liabilities, net									6,269,362		0.48
Total net assets								$	1,309,934,300		100.00	%

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

(l) The security represents an affiliate of the Fund as defined in the Investment Company Act of 1940.

(u) The rate represents 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. The rate represents the current yield to maturity.

* Cost for federal income tax purposes is $1,283,147,636 and unrealized gains (losses) consists of:

Gross unrealized gains	$	22,123,207
Gross unrealized losses		(1,605,905	)
Net unrealized gains	$	20,517,302

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

Statement of assets and liabilities—August 31, 2015 Wells Fargo Advantage Adjustable Rate Government Fund 11

Assets
Investments
In unaffiliated securities, at value (cost $1,215,391,918)	$	1,236,674,161
In affiliated securities, at value (cost $66,990,777)		66,990,777
Total investments, at value (cost $1,282,382,695)		1,303,664,938
Cash		5,417,472
Principal paydown receivable		5,942,991
Receivable for Fund shares sold		164,130
Receivable for interest		3,159,567
Prepaid expenses and other assets		25,420
Total assets		1,318,374,518
Liabilities
Dividends payable		198,760
Payable for investments purchased		6,720,706
Payable for Fund shares redeemed		644,055
Management fee payable		357,897
Distribution fees payable		78,135
Administration fees payable		112,184
Accrued expenses and other liabilities		328,481
Total liabilities		8,440,218
Total net assets	$	1,309,934,300
NET ASSETS CONSIST OF
Paid-in capital	$	1,327,239,172
Overdistributed net investment income		(305,548	)
Accumulated net realized losses on investments		(38,281,567	)
Net unrealized gains on investments		21,282,243
Total net assets	$	1,309,934,300
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	215,829,758
Shares outstanding – Class A1		23,727,708
Net asset value per share – Class A		$9.10
Maximum offering price per share – Class A2		$9.29
Net assets – Class B	$	414,933
Shares outstanding – Class B1		45,610
Net asset value per share – Class B		$9.10
Net assets – Class C	$	121,116,921
Shares outstanding – Class C1		13,314,996
Net asset value per share – Class C		$9.10
Net assets – Administrator Class	$	66,036,633
Shares outstanding – Administrator Class1		7,260,120
Net asset value per share – Administrator Class		$9.10
Net assets – Institutional Class	$	906,536,055
Shares outstanding – Institutional Class1		99,643,898
Net asset value per share – Institutional Class		$9.10

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—year ended August 31, 2015

Investment income
Interest	$	17,549,041
Income from affiliated securities		4,970
Total investment income		17,554,011
Expenses
Management fee		4,553,071
Administration fees
Class A		370,749
Class B		1,194
Class C		214,266
Administrator Class		88,251
Institutional Class		695,681
Shareholder servicing fees
Class A		579,296
Class B		1,663
Class C		334,791
Administrator Class		219,666
Distribution fees
Class B		5,596
Class C		1,004,371
Custody and accounting fees		102,380
Professional fees		66,077
Registration fees		98,018
Shareholder report expenses		81,347
Trustees’ fees and expenses		11,590
Other fees and expenses		61,964
Total expenses		8,489,971
Less: Fee waivers and/or expense reimbursements		(276,904	)
Net expenses		8,213,067
Net investment income		9,340,944
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		1,164,928
Futures transactions		(2,026,616	)
Net realized losses on investments		(861,688	)
Net change in unrealized gains (losses) on:
Unaffiliated securities		(4,742,139	)
Futures transactions		282,276
Net change in unrealized gains (losses) on investments		(4,459,863	)
Net realized and unrealized gains (losses) on investments		(5,321,551	)
Net increase in net assets resulting from operations	$	4,019,393

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

	Year ended August 31, 2015						Year ended August 31, 2014
Operations
Net investment income				$	9,340,944					$	10,805,581
Net realized gains (losses) on investments					(861,688	)					593,005
Net change in unrealized gains (losses) on investments					(4,459,863	)					3,546,510
Net increase in net assets resulting from operations					4,019,393						14,945,096
Distributions to shareholders from
Net investment income
Class A					(1,404,414	)					(1,733,771	)
Class B					(319	)					(575	)
Class C					(36,268	)					(56,786	)
Administrator Class					(629,900	)					(875,098	)
Institutional Class					(7,185,378	)					(8,075,183	)
Tax basis return of capital
Class A					(415,038	)					(366,434	)
Class B					(94	)					(121	)
Class C					(10,718	)					(12,002	)
Administrator Class					(186,151	)					(184,953	)
Institutional Class					(2,123,451	)					(1,706,699	)
Total distributions to shareholders					(11,991,731	)					(13,011,622	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		4,112,767			37,551,166			7,244,221			66,263,594
Class B		4,653			42,472			3,858			35,285
Class C		248,392			2,269,918			452,217			4,137,215
Administrator Class		3,453,369			31,554,369			6,986,964			63,914,051
Institutional Class		67,145,587			613,368,221			62,792,794			574,754,504
					684,786,146						709,104,649
Reinvestment of distributions
Class A		170,092			1,552,037			193,274			1,767,656
Class B		39			359			70			646
Class C		3,834			34,986			5,609			51,307
Administrator Class		79,070			721,555			77,012			704,495
Institutional Class		751,073			6,854,023			729,403			6,672,314
					9,162,960						9,196,418
Payment for shares redeemed
Class A		(8,062,085	)		(73,611,767	)		(10,685,135	)		(97,752,051	)
Class B		(89,311	)		(816,162	)		(189,405	)		(1,734,110	)
Class C		(3,168,935	)		(28,936,430	)		(5,030,472	)		(46,016,981	)
Administrator Class		(9,860,896	)		(90,104,047	)		(4,667,752	)		(42,695,260	)
Institutional Class		(60,499,655	)		(552,540,872	)		(70,479,287	)		(645,076,343	)
					(746,009,278	)					(833,274,745	)
Net decrease in net assets resulting from capital share transactions					(52,060,172	)					(114,973,678	)
Total decrease in net assets					(60,032,510	)					(113,040,204	)
Net assets
Beginning of period					1,369,966,810						1,483,007,014
End of period				$	1,309,934,300					$	1,369,966,810
Overdistributed net investment income				$	(305,548	)				$	(390,213	)

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)

	Year ended August 31
CLASS A	2015			2014			2013			2012			2011
Net asset value, beginning of period		$9.15			$9.14			$9.19			$9.12			$9.12
Net investment income		0.05			0.06			0.06			0.09			0.14
Net realized and unrealized gains (losses) on investments		(0.03	)		0.02			(0.04	)		0.08			0.04
Total from investment operations		0.02			0.08			0.02			0.17			0.18
Distributions to shareholders from
Net investment income		(0.05	)		(0.06	)		(0.07	)		(0.09	)		(0.13	)1
Tax basis return of capital		(0.02	)		(0.01	)		(0.00	)2		(0.01	)		(0.05	)1
Total distributions to shareholders		(0.07	)		(0.07	)		(0.07	)		(0.10	)		(0.18	)
Net asset value, end of period		$9.10			$9.15			$9.14			$9.19			$9.12
Total return3		0.24	%		0.90	%		0.23	%		1.84	%		2.04	%
Ratios to average net assets (annualized)
Gross expenses		0.79	%		0.80	%		0.84	%		0.86	%		0.88	%
Net expenses		0.74	%		0.74	%		0.74	%		0.74	%		0.74	%
Net investment income		0.58	%		0.64	%		0.71	%		1.01	%		1.50	%
Supplemental data
Portfolio turnover rate		10	%		18	%		10	%		9	%		18	%
Net assets, end of period (000s omitted)		$215,830			$251,686			$281,028			$309,827			$328,427

¹  Calculated based upon average shares outstanding

²  Amount is less than $0.005.

³  Total return calculations do not include any sales charges.

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)

	Year ended August 31
CLASS B	2015			2014			2013			2012			2011
Net asset value, beginning of period		$9.15			$9.14			$9.19			$9.12			$9.12
Net investment income (loss)		(0.01	)1		(0.01	)1		(0.00	)1,2		0.03	1		0.07	1
Net realized and unrealized gains (losses) on investments		(0.03	)		0.02			(0.05	)		0.07			0.05
Total from investment operations		(0.04	)		0.01			(0.05	)		0.10			0.12
Distributions to shareholders from
Net investment income		(0.01	)		(0.00	)2		(0.00	)2		(0.03	)		(0.07	)1
Tax basis return of capital		(0.00	)2		(0.00	)2		(0.00	)2		(0.00	)2		(0.05	)1
Total distributions to shareholders		(0.01	)		(0.00	)2		(0.00	)2		(0.03	)		(0.12	)
Net asset value, end of period		$9.10			$9.15			$9.14			$9.19			$9.12
Total return3		(0.49	)%		0.15	%		(0.52	)%		1.08	%		1.28	%
Ratios to average net assets (annualized)
Gross expenses		1.51	%		1.55	%		1.60	%		1.61	%		1.63	%
Net expenses		1.47	%		1.49	%		1.49	%		1.49	%		1.49	%
Net investment income (loss)		(0.14	)%		(0.11	)%		(0.03	)%		0.27	%		0.81	%
Supplemental data
Portfolio turnover rate		10	%		18	%		10	%		9	%		18	%
Net assets, end of period (000s omitted)		$415			$1,192			$2,886			$6,660			$14,911

¹  Calculated based upon average shares outstanding

²  Amount is less than $0.005.

³  Total return calculations do not include any sales charges.

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)

	Year ended August 31
CLASS C	2015			2014			2013			2012			2011
Net asset value, beginning of period		$9.15			$9.14			$9.19			$9.12			$9.12
Net investment income (loss)		(0.01	)1		(0.01	)1		(0.00	)1,2		0.02	1		0.06
Net realized and unrealized gains (losses) on investments		(0.04	)		0.02			(0.05	)		0.08			0.06
Total from investment operations		(0.05	)		0.01			(0.05	)		0.10			0.12
Distributions to shareholders from
Net investment income		(0.00	)2		(0.00	)2		(0.00	)2		(0.03	)		(0.07	)1
Tax basis return of capital		(0.00	)2		(0.00	)2		(0.00	)2		(0.00	)2		(0.05	)1
Total distributions to shareholders		(0.00	)2		(0.00	)2		(0.00	)2		(0.03	)		(0.12	)
Net asset value, end of period		$9.10			$9.15			$9.14			$9.19			$9.12
Total return3		(0.51	)%		0.15	%		(0.52	)%		1.08	%		1.28	%
Ratios to average net assets (annualized)
Gross expenses		1.54	%		1.55	%		1.59	%		1.61	%		1.63	%
Net expenses		1.49	%		1.49	%		1.49	%		1.49	%		1.49	%
Net investment income (loss)		(0.16	)%		(0.11	)%		(0.04	)%		0.26	%		0.74	%
Supplemental data
Portfolio turnover rate		10	%		18	%		10	%		9	%		18	%
Net assets, end of period (000s omitted)		$121,117			$148,523			$190,110			$248,392			$296,645

¹  Calculated based upon average shares outstanding

²  Amount is less than $0.005.

³  Total return calculations do not include any sales charges.

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)

	Year ended August 31
ADMINISTRATOR CLASS	2015			2014			2013			2012			2011
Net asset value, beginning of period		$9.15			$9.14			$9.19			$9.12			$9.12
Net investment income		0.06			0.07			0.08			0.11			0.14	1
Net realized and unrealized gains (losses) on investments		(0.03	)		0.03			(0.05	)		0.07			0.06
Total from investment operations		0.03			0.10			0.03			0.18			0.20
Distributions to shareholders from
Net investment income		(0.06	)		(0.07	)		(0.08	)		(0.10	)		(0.15	)1
Tax basis return of capital		(0.02	)		(0.02	)		(0.00	)2		(0.01	)		(0.05	)1
Total distributions to shareholders		(0.08	)		(0.09	)		(0.08	)		(0.11	)		(0.20	)
Net asset value, end of period		$9.10			$9.15			$9.14			$9.19			$9.12
Total return		0.38	%		1.05	%		0.37	%		1.98	%		2.18	%
Ratios to average net assets (annualized)
Gross expenses		0.72	%		0.73	%		0.77	%		0.79	%		0.78	%
Net expenses		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Net investment income		0.72	%		0.78	%		0.85	%		1.14	%		1.49	%
Supplemental data
Portfolio turnover rate		10	%		18	%		10	%		9	%		18	%
Net assets, end of period (000s omitted)		$66,037			$124,345			$102,284			$112,319			$34,946

¹  Calculated based upon average shares outstanding

²  Amount is less than $0.005.

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)

	Year ended August 31
INSTITUTIONAL CLASS	2015			2014			2013			2012			2011
Net asset value, beginning of period		$9.15			$9.14			$9.19			$9.12			$9.12
Net investment income		0.08			0.08			0.09	1		0.12	1		0.15
Net realized and unrealized gains (losses) on investments		(0.03	)		0.03			(0.04	)		0.07			0.06
Total from investment operations		0.05			0.11			0.05			0.19			0.21
Distributions to shareholders from
Net investment income		(0.08	)		(0.08	)		(0.10	)		(0.11	)		(0.16	)1
Tax basis return of capital		(0.02	)		(0.02	)		(0.00	)2		(0.01	)		(0.05	)1
Total distributions to shareholders		(0.10	)		(0.10	)		(0.10	)		(0.12	)		(0.21	)
Net asset value, end of period		$9.10			$9.15			$9.14			$9.19			$9.12
Total return		0.52	%		1.19	%		0.50	%		2.09	%		2.30	%
Ratios to average net assets (annualized)
Gross expenses		0.46	%		0.47	%		0.51	%		0.53	%		0.55	%
Net expenses		0.46	%		0.46	%		0.47	%		0.49	%		0.49	%
Net investment income		0.87	%		0.93	%		0.98	%		1.25	%		1.72	%
Supplemental data
Portfolio turnover rate		10	%		18	%		10	%		9	%		18	%
Net assets, end of period (000s omitted)		$906,536			$844,221			$906,698			$686,587			$597,521

¹  Calculated based upon average shares outstanding

²  Amount is less than $0.005.

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

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

Debt securities are valued at the evaluated bid price provided by an independent pricing service or, if a reliable price is not available, the quoted bid price from an independent broker-dealer.

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 manager 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 is 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.

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

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.

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The primary permanent difference causing such reclassifications is due to expiration of capital loss carryforwards. At August 31, 2015, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Paid-in capital	Accumulated net realized losses on investments
$(18,541,278)	$18,541,278

As of August 31, 2015, capital loss carryforwards available to offset future net realized capital gains were as follows through the indicated expiration dates:

				No expiration
2016	2017	2018	2019	Short-term	Long-term
$10,766,785	$24,262,054	$1,705,150	$66,443	$169,319	$57,466

As of August 31, 2015, the Fund had current year deferred post-October capital losses consisting of $489,409 in short-term losses which will be recognized on the first day of the following 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. Class specific expenses are charged directly to that share class. Investment income, common expenses, and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.

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

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

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.

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of August 31, 2015:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Agency securities	$	0	$	1,229,610,808	$	0	$	1,229,610,808
Non-agency mortgage-backed securities		0		6,163,354		0		6,163,354
Short-term investments
Investment companies		66,990,777		0		0		66,990,777
U.S. Treasury securities		899,999		0		0		899,999
	$	67,890,776	$	1,235,774,162	$	0	$	1,303,664,938

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At August 31, 2015, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

4. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the applicable subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.35% and declining to 0.255% as the average daily net assets of the Fund increase.

Prior to July 1, 2015, Funds Management provided advisory services pursuant to an investment advisory agreement and was entitled to receive an annual fee which started at 0.30% and declined to 0.225% as the average daily net assets of the Fund increased. In addition, fund-level administrative services were provided by Funds Management under a separate administration agreement at an annual fee which started at 0.05% and declined to 0.03% as the average daily net assets of the Fund increased. For financial statement purposes, the advisory fee and fund-level administration fee for the year ended August 31, 2015 have been included in management fee on the Statement of Operations.

For the year ended August 31, 2015, the management fee was equivalent to an annual rate of 0.34% 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.

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

Administration fees

Under a class-level administration agreement, Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Funds Management receives an annual 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 management 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, 2015 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. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

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 (“Funds Distributor”), the principal underwriter, at an annual rate of 0.75% of the average daily net assets of Class B and Class C shares.

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class B and Class C shares. For the year ended August 31, 2015, Funds Distributor received $1,616 from the sale of Class A shares and $792 and $1,086 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 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 U.S. government obligations (if any) and short-term securities, for the year ended August 31, 2015 were $266,222,788 and $129,419,228, respectively.

6. DERIVATIVE TRANSACTIONS

During the year ended August 31, 2015, the Fund entered into futures contracts to speculate on interest rates and to help manage the duration of the portfolio.

As of August 31, 2015, the Fund did not have any open futures contracts. The Fund had an average notional amount of $72,372,027 in short futures contracts during the year ended August 31, 2015.

The realized losses and change in unrealized gains (losses) on futures contracts are reflected in the Statement of Operations.

7. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds in the Trust) and Wells Fargo Variable Trust are parties to a $150,000,000 revolving credit agreement, whereby the Fund is permitted to use bank borrowings for

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

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 year ended August 31, 2015, the Fund paid $488 in commitment fees.

For the year ended August 31, 2015, there were no borrowings by the Fund under the agreement.

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended August 31, 2015 and August 31, 2014 were as follows:

	Year ended August 31
	2015		2014
Ordinary income	$	9,256,279	$	10,741,413
Tax basis return of capital		2,735,452		2,270,209

As of August 31, 2015, the components of distributable earnings on a tax basis were as follows:

Unrealized gains	Post-October capital losses deferred	Capital loss carryforward
$20,517,302	$(489,409)	$(37,027,217)

9. INDEMNIFICATION

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

24 Wells Fargo Advantage Adjustable Rate Government Fund Report of independent registered public accounting firm

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments and the summary portfolio of investments, of the Wells Fargo Advantage Adjustable Rate Government Fund (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, as of August 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of August 31, 2015, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Advantage Adjustable Rate Government Fund as of August 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

October 22, 2015

Other information (unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 25

TAX INFORMATION

For the fiscal year ended August 31, 2015, $9,315,901 has been designated as interest-related dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at 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 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 monthly on the Fund’s website (wellsfargoadvantagefunds.com), on a one-month delayed basis. In addition, top ten holdings information (excluding derivative positions) 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 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.

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

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo Advantage family of funds, which consists of 133 mutual funds 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. 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 or longer	Other public company or investment company directorships during past 5 years
William R. Ebsworth (Born 1957)	Trustee, since 2015**	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director at Fidelity Management and Research Company and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. in Boston, Tokyo, and Hong Kong where he led a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Mr. Ebsworth is a CFA® charterholder and an Adjunct Lecturer, Finance, at Babson College.	Asset Allocation Trust
Jane A. Freeman (Born 1953)	Trustee, since 2015**	Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is Chair of Taproot Foundation (non-profit organization), a Board Member of Ruth Bancroft Garden (non-profit organization) and an inactive chartered financial analyst.	Asset Allocation Trust; Harding Loevner Funds; Russell Exchange Traded Funds Trust
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. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (charter school). Mr. Harris is a certified public accountant.	CIGNA 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
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

Other information (unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 27

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Other public company or investment company directorships during past 5 years
Timothy J. Penny (Born 1951)	Trustee, since 1996	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
Michael S. Scofield (Born 1943)	Trustee, since 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 complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust
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.

** William R. Ebsworth and Jane A. Freeman each became a Trustee effective January 1, 2015.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Karla M. Rabusch (Born 1959)	President, since 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.
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. Assistant General Counsel of Wells Fargo Bank, N.A. since 2013 and Vice President and Managing Counsel of Wells Fargo Bank N.A. from 1996 to 2013.
Debra Ann Early (Born 1964)	Chief Compliance Officer, since 2007	Executive Vice President of Wells Fargo Funds Management, LLC since 2014, Senior Vice President and Chief Compliance Officer from 2007 to 2014.
David Berardi (Born 1975)	Assistant Treasurer, since 2009	Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.
Jeremy DePalma1 (Born 1974)	Assistant Treasurer, since 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 and head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.

¹ Nancy Wiser acts as Treasurer of 72 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 61 funds and Assistant Treasurer of 72 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.

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

BOARD CONSIDERATION OF INVESTMENT ADVISORY, INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment advisory and sub-advisory agreements. In this regard, at an in-person meeting held on May 19-20, 2015 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment advisory and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo Advantage Adjustable Rate Government Fund (the “Fund”): (i) an investment advisory agreement (the “Advisory Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); (ii) an investment management agreement (the “Management Agreement”) with Funds Management; and (iii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the “Sub-Adviser”), an affiliate of Funds Management. The Management Agreement combines the terms of the Advisory Agreement with the terms of the Fund’s Amended and Restated Administration Agreement (the “Administration Agreement”) applicable to Fund-level administrative services. The Advisory Agreement, the Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”

At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in March 2015, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2015. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

After its deliberations, the Board unanimously approved the continuation of the Advisory Agreement for the period from June 1, 2015 through June 30, 2015, approved the Management Agreement for the period from July 1, 2015 through May 31, 2016, and approved the continuation of the Sub-Advisory Agreement for a one-year term through May 31, 2016. The Board also determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.

Nature, extent and quality of services

The Board received and considered various information regarding the nature, extent and quality of services provided to the Fund by Funds Management and the Sub-Adviser under the Advisory Agreements. This information included, among other things, a summary of the background and experience of senior management of Funds Management, and the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund. The Board noted that the services to be provided to the Fund pursuant to the Management Agreement combined the advisory services previously provided to the Fund pursuant to the Fund’s Advisory Agreement with the Fund-level administrative services previously provided to the Fund pursuant to the Fund’s Administration Agreement. The Board received a representation from Funds Management that combining these services would not result in any change to the nature or level of services provided by Funds Management to the Fund.

The Board evaluated the ability of Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory and supervisory personnel. The Board further considered the compliance

Other information (unaudited) Wells Fargo Advantage Adjustable Rate Government Fund 29

programs and compliance records of Funds Management and the Sub-Adviser. In addition, the Board took into account the full range of services provided to the Fund by Funds Management and its affiliates.

Fund performance and expenses

The Board considered the performance results for the Fund over various time periods ended March 31, 2015. The Board considered these results in comparison to the performance of funds in a universe that was determined by Lipper Inc. (“Lipper”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Lipper is an independent provider of investment company data. The Board received a description of the methodology used by Lipper to select the mutual funds in the performance Universe. The Board noted that the performance of the Fund (Class A) was higher than or equal to the average performance of the Universe for all periods under review except for the first quarter of 2015. The Board also noted that the performance of the Fund was higher than or in range of its benchmark, the Barclays 6-Month Treasury Bill Index, for all periods under review.

The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees (which reflect fee waivers, if any, and include advisory, administration and transfer agent fees), custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Lipper to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Lipper to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Lipper reports, the Board noted that the net operating expense ratios of the Fund were lower than or in range of the median net operating expense ratios of the expense Groups.

The Board took into account the Fund performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreement and Sub-Advisory Agreement and approve the Management Agreement.

Investment advisory and sub-advisory fee rates

The Board reviewed and considered the contractual investment advisory fee rates that are payable by the Fund to Funds Management for investment advisory services (the “Advisory Agreement Rates”), both on a stand-alone basis and on a combined basis with the Fund’s fund-level and class-level contractual administration fee rates (the “Management Rates”). The Board noted that the Management Rates include transfer agency and sub-transfer agency costs. The Board also noted that the fee rate to be paid by the Fund under the Management Agreement will incorporate the advisory fee and Fund-level administration fee previously payable separately by the Fund under the Fund’s Advisory Agreement and Administration Agreement with Funds Management. The Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Funds Management to the Sub-Adviser for investment sub-advisory services (the “Sub-Advisory Agreement Rates”).

Among other information reviewed by the Board was a comparison of the Management Rates of the Fund with those of other funds in the expense Groups at a common asset level. The Board noted that the Management Rates of the Fund were lower than or in range of the average rates for the Fund’s expense Groups for all share classes.

The Board also received and considered information about the portion of the total advisory fee that was retained by Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Funds Management and not delegated to or assumed by the Sub-Adviser, and about Funds Management’s on-going oversight services. However, given the affiliation between Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of the advisory fee between them.

The Board also received and considered information about the nature and extent of services offered and fee rates charged by Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing mutual funds compared with those associated with managing assets of non-mutual fund clients such as collective funds or institutional separate accounts.

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Funds Management under the Management Agreement and Advisory Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable, in light of the services covered by the Advisory Agreements.

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

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also received and considered information concerning the profitability of the Sub-Adviser from providing services to the fund family as a whole, noting that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo profitability analysis.

Funds Management reported on the methodologies and estimates used in calculating profitability. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size and type of fund. Based on its review, the Board did not deem the profits reported by Funds Management or Wells Fargo from its services to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.

Economies of scale

With respect to possible economies of scale, the Board noted the existence of breakpoints in the Fund’s advisory and management fee structures, and the Fund’s administration fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered that fee waiver and expense reimbursement arrangements and competitive fee rates at the outset are means of sharing potential economies of scale with shareholders of the Fund and the fund family as a whole. The Board considered Funds Management’s view that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments that Funds Management incurs across the fund family as a whole.

The Board concluded that the Fund’s fee and expense arrangements, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.

Other benefits to Funds Management and the Sub-Adviser

The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that various affiliates of Funds Management may receive distribution-related fees, shareholder servicing payments and sub-transfer agency fees in respect of shares sold or held through them and services provided.

The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser, fees earned by Funds Management and the Sub-Adviser from managing a private investment vehicle for the fund family’s securities lending collateral and commissions earned by an affiliated broker from portfolio transactions.

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory Agreement for the period from June 1, 2015 through June 30, 2015, approved the Management Agreement for the period from July 1, 2015 through May 31, 2016, and approved the continuation of the Sub-Advisory Agreement for a one-year term through May 31, 2016. The Board also determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable.

List of abbreviations Wells Fargo Advantage Adjustable Rate Government 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 —  Colombian 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

LIFER —  Long Inverse Floating Exempt Receipts

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

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —   Short Puttable Exempt Adjustable 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. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at wellsfargoadvantagefunds.com. 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, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

© 2015 Wells Fargo Funds Management, LLC. All rights reserved.

236800 10-15 A215/AR215 08-15

Wells Fargo Advantage

Conservative Income Fund

Annual Report

August 31, 2015

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	8
Portfolio of investments	9
Financial statements
Statement of assets and liabilities	16
Statement of operations	17
Statement of changes in net assets	18
Financial highlights	19
Notes to financial statements	20
Report of independent registered public accounting firm	25
Other information	26
List of abbreviations	32

The views expressed and any forward-looking statements are as of August 31, 2015, 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

Major central banks continued to inject liquidity into global banks and markets through various accommodative monetary policies, including quantitative easing.

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Advantage Conservative Income Fund for the 12-month period that ended August 31, 2015. The period was marked by low interest rates, low oil prices, and moderate U.S. economic growth. Short-term investment-grade bonds, as measured by the Barclays U.S. 1–3 Year Government/Credit Bond Index,¹ returned 0.81% during the period. Meanwhile, strong demand for high-quality, liquid assets kept returns on Treasury bills more modest; the Barclays 6-Month Treasury Bill Index² returned 0.15% during the period.

Major central banks continued to provide stimulus.

Major central banks continued to inject liquidity into global banks and markets through various accommodative monetary policies, including quantitative easing. In the U.S., the Federal Reserve (Fed) kept its key interest rate near zero in order to support the economy and the financial system. However, it set expectations for it to begin normalizing monetary policy with higher target ranges for the federal funds rate.

Meanwhile, European markets continued to benefit from the European Central Bank’s (ECB’s) willingness to maintain low interest rates. In addition to its targeted longer-term refinancing operations that are designed to increase bank lending, the ECB expanded its quantitative easing program to include the purchase of eurozone government bonds. In Japan, the Bank of Japan maintained an aggressive monetary program aimed at combating deflation.

Economic growth was moderate, and oil prices plummeted.

U.S. economic growth advanced during the reporting period, the unemployment rate ticked lower to 5.1% as of August 2015, and inflation remained below the Fed’s longer-run objective of a 2% pace. The period was also marked by lower oil prices, which began the reporting period near $90 per barrel but declined to $46 per barrel at the end of August 2015. While lower oil prices benefited consumers of oil products, the lower prices pressured companies within the energy sector.

Bond yields rose but remained low by historical standards.

Short-term interest rates increased during the reporting period, with a flattening in the shape of the short-term yield curve. During this time frame, 1-year Treasury bills rose 29 basis points (bps; 100 bps equals 1.00%) to yield 0.38%, 2-year Treasury note yields rose 21 bps to yield 0.74%, and 3-year Treasury note yields rose only 8 bps to yield 1.05%. Meanwhile, ultra-short-term yields were little changed at ultralow levels, anchored by the easy monetary policy.

Since the end of the financial crisis, structural changes in the fixed-income markets have reduced trading liquidity (the degree to which assets can be bought or sold without affecting the price). New regulations and capital requirements have caused traditional liquidity suppliers (banks and broker/dealers) to be more risk-averse and hold less inventory. Meanwhile, corporate-debt issuance has spiked as companies finance themselves at record-low yields, bond mutual funds hold

¹  The Barclays U.S. 1–3 Year Government/Credit Bond Index is the one- to three-year component of the Barclays U.S. Government/Credit Bond Index that includes securities in the Government and Credit Indexes. 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.

²  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.

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

larger amounts of this new debt supply, trading volumes are lower, and large-size trades are more difficult to execute. However, fixed-income markets appear to have functioned well over the past year with sufficient liquidity and muted volatility.

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

Periods of 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 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 in Wells Fargo Advantage Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.

Sincerely,

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Periods of 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.

Notice to shareholders

At a meeting held on August 11–12, 2015, the Board of Trustees of the Fund approved a change in the name of the Fund whereby the word “Advantage” will be removed from its name, effective December 15, 2015.

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.

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

Investment objective

The Fund seeks current income consistent with capital preservation.

Manager

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 August 31, 2015

							Expense ratios1 (%)
	Inception date	1 year		Since inception			Gross		Net2
Institutional Class (WCIIX)	5-31-2013		0.28		0.46			0.43		0.27
Barclays 6-9 Month Treasury Bill Index3	–		0.13		0.12	*		–		–

* Based on inception date of Institutional Class.

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. 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 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. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the fund and its share price can be sudden and unpredictable. 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 use of derivatives may reduce returns and/or increase volatility. 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 5.

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

Growth of $1,000,000 investment⁴ as of August 31, 2015

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

²  The manager has contractually committed through December 31, 2015, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver at the amount shown. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. 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 chart compares the performance of Institutional Class shares since inception with the performance of the Barclays 6–9 Month Treasury Bill Index. The chart assumes a hypothetical investment of $1,000,000 in Institutional Class shares and reflects all operating expenses.

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

⁶  The BofA Merrill Lynch U.S. Fixed-Rate Asset-Backed Securities, AAA Rated, 1–3 Year Index is an unmanaged index that generally tracks the performance of AAA-rated asset-backed securities with maturities between one and three years. You cannot invest directly in an index.

⁷  Amounts are calculated based on the total long-term investments of the Fund. These amounts are subject to change and may have changed since the date specified.

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

MANAGER’S DISCUSSION

Fund highlights

n The Fund outperformed its benchmark, the Barclays 6–9 Month Treasury Bill Index, for the 12-month period that ended August 31, 2015. Fund performance was driven by an emphasis on yield-advantaged sectors.

n The portfolio is primarily invested in yield-advantaged securities and all of the sectors added to the performance of the Fund. Asset-backed securities (ABS), municipals, and sovereign bonds had the highest returns over the past year. The allocation to corporate bonds, the largest sector represented in the Fund, and commercial paper, used for liquidity purposes, both contributed to relative results.

n In order to minimize the Fund’s price volatility with the U.S. Federal Reserve (Fed) on the verge of entering a tightening cycle, we shortened the Fund’s duration even further from 0.56 years to 0.38 years. We believe it is likely that the Fed will begin tightening monetary policy by the end of 2015 or shortly thereafter. We expect interest-rate increases to occur at a slower pace than previous tightening cycles, and this should serve to limit the impact on the portfolio.

n While the portfolio’s duration was reduced in anticipation of higher rates, the longer corporate positions in both fixed-rate (maturities between one and one and a half years) and floating-rate (final maturities between two and three years) generally underperformed versus the benchmark.

Ten largest holdings5 (%) as of August 31, 2015
North Carolina Eastern Municipal Power Agency, 1.09%, 7-1-2016	1.72
Kentucky Municipal Power Agency Series B002, 0.54%, 9-1-2037	1.48
ING Bank NV, 2.00%, 9-25-2015	1.44
BAT International Finance plc, 0.80%, 6-15-2018	1.31
Volkswagen Auto Lease Trust Series 2014-A Class A3, 0.80%, 4-20-2017	1.27
Citibank Credit Card Issuance Trust Series 2013-A3 Class A3, 1.11%, 7-23-2018	1.26
Golden Credit Card Trust Series 2012-2A Class A1, 1.77%, 1-15-2019	1.20
Honda Auto Receivables Owner Trust Series 2015-3 Class A2, 0.92%, 11-20-2017	1.19
JPMorgan Chase & Company, 0.84%, 2-15-2017	1.19
Wesfarmers Limited, 2.98%, 5-18-2016	1.14

We found value in ABS.

The ABS sector had the highest return among the sectors within the Fund. The BofA Merrill Lynch U.S. Fixed-Rate Asset-Backed Securities, AAA Rated, 1-3 Year Index⁶ returned 34 basis points (bps; 100 bps equals 1.00%) of excess return versus comparable-maturity Treasuries. We favored AAA-rated short-dated tranches (one-year weighted average life) across ABS sectors, with particular emphasis on senior classes in the equipment and prime auto-related ABS sectors.

Corporate bonds with maturities greater than one year underperformed comparable-maturity Treasuries over the past 12 months due to heavy new issuance and the expectation of higher interest rates. Another factor pressuring corporate bonds was an emphasis on increasing shareholder value, which in turn caused higher leverage, most notably in industrial issuers. Within the Fund, we focused on shorter-term corporate notes as well as floating-rate notes, both of which offered better

performance than longer-dated corporates. A majority of the Fund’s corporate exposure was in the bank and finance issues, which outperformed similarly rated industrials.

Portfolio allocation⁷ as of August 31, 2015

We decreased duration due to concerns about higher interest rates.

Short-term interest rates increased during the reporting period, with a flattening in the shape of the short-term yield curve. During the 12-month period that ended August 31, 2015, 1-year Treasury bills rose 29 bps to yield 0.38%, 2-year Treasury note yields rose 21 bps to yield 0.74%, and 3-year Treasury note yields rose only 8 bps to yield 1.05%.

We decreased the Fund’s duration from 0.56 years to 0.38 years over the past 12 months, and the Fund benefited as rates moved higher. Additionally, the Fed appeared ready to increase the federal funds target rate by the end of 2015, which could cause interest rates in the front end of the yield curve (out to three years) to move higher.

Please see footnotes on page 5.

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

The Fund’s allocation to the sectors we emphasize (commercial paper, ABS, municipal securities, and corporate bonds) remained stable during the year. However, we shortened the portfolio by investing in securities that generally had less than one and a half years’ maturity. Short-term, high-grade corporate yields widened relative to comparable-maturity Treasury yields over the past year, which led to the underperformance of that sector. The Fund benefited from the ABS sector and floating-rate corporate notes, both of which had positive returns versus Treasuries.

We see opportunities ahead.

Looking forward, we will continue to seek to protect the portfolio from a rising rate environment by maintaining duration below 0.5 years and limiting exposure to securities with maturities longer than 18 months. This should help mitigate the effect of higher interest rates on the Fund’s net asset value. An improving economy should prove beneficial to corporate bond investments. We will continue to rely on our credit research capabilities in order to avoid credit downgrades from companies engaging in merger and acquisition activity or other leveraging events. Investments in banks and finance companies continue to look attractive to us as well as investments in ABS. AAA-rated ABS are secured, bankruptcy-remote investments that offer attractive return potential as well as strong credit fundamentals.

Please see footnotes on page 5.

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 March 1, 2015 to August 31, 2015.

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. 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.

	Beginning account value 3-1-2015		Ending account value 8-31-2015		Expenses paid during the period1		Net annualized expense ratio
Institutional Class
Actual	$	1,000.00	$	1,002.30	$	1.36		0.27	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.84	$	1.38		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—August 31, 2015 Wells Fargo Advantage Conservative Income Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Asset-Backed Securities: 21.94%
Ally Auto Receivables Trust Series 2014-3 Class A2		0.81	%		9-15-2017	$	905,201	$	905,574
Bank of the West Auto Trust Series 2014-1 Class A2 144A		0.69			7-17-2017		2,274,073		2,273,177
BMW Vehicle Lease Trust Series 2014-1 Class A2		0.45			3-21-2016		85,000		84,986
California Republic Auto Receivables Trust Series 2014-3 Class A3		1.09			11-15-2018		1,500,000		1,497,798
Capital One Multi Asset Execution Trust Series 2006-A3 Class A3		5.05			12-17-2018		1,805,000		1,840,952
CarMax Auto Owner Trust Series 2014-4 Class A2A		0.67			2-15-2018		2,455,406		2,454,176
CarMax Auto Owner Trust Series 2015-2 Class A2A		0.82			6-15-2018		500,000		499,711
Citibank Credit Card Issuance Trust Series 2013-A3 Class A3		1.11			7-23-2018		4,220,000		4,228,592
Fifth Third Auto Trust Series 2014-1 Class A3		0.68			4-16-2018		1,856,305		1,854,874
Ford Credit Auto Lease Trust Series 2013-B Class A3		0.76			9-15-2016		374,702		374,732
Ford Credit Auto Lease Trust Series 2014-A Class A3		0.68			4-15-2017		900,000		899,421
Ford Credit Auto Lease Trust Series 2015-A Class A2A		0.79			12-15-2017		2,000,000		2,000,906
Ford Credit Auto Lease Trust Series 2015-A Class A2A		0.81			1-15-2018		1,000,000		999,763
GE Equipment Transportation LLC Series 2015-1 Class A2		0.89			11-24-2017		1,825,000		1,826,119
GM Financial Automobile Leasing Trust Series 2014-1A Class A2 144A		0.61			7-20-2016		650,951		650,548
GM Financial Automobile Leasing Trust Series 2014-2A Class A3 144A		1.22			1-22-2018		2,500,000		2,502,498
GM Financial Automobile Leasing Trust Series 2015-2 Class A2A		1.18			4-20-2018		1,000,000		1,001,771
Golden Credit Card Trust Series 2012-2A Class A1 144A		1.77			1-15-2019		4,000,000		4,033,148
Honda Auto Receivables Owner Trust Series 2015-3 Class A2		0.92			11-20-2017		4,000,000		4,000,356
Hyundai Auto Lease Securitization Trust Series 2013-B Class A3 144A		0.98			10-17-2016		1,063,144		1,063,572
Hyundai Auto Lease Securitization Trust Series 2015-A Class A2 144A		1.00			10-16-2017		1,000,000		1,000,349
Hyundai Auto Receivables Trust Series 2012-C Class A3		0.53			4-17-2017		106,438		106,423
John Deere Owner Trust Series 2015-A Class A2A		0.87			2-15-2018		2,000,000		1,999,092
Leaf II Receivables Funding LLC Series 2015-1 Class A2 144A		1.13			3-15-2017		3,500,000		3,493,042
M&T Bank Auto Receivables Trust Series 2013-1A Class A3 144A		1.06			11-15-2017		630,992		631,198
Mercedes-Benz Auto Lease Trust Series 2013-B Class A3		0.62			7-15-2016		311,369		311,327
MMAF Equipment Finance LLC Series 2014-AA Class A2 144A		0.52			4-10-2017		1,431,666		1,429,658
MMAF Equipment Finance LLC Series 2015-AA Class A2 144A		0.96			9-18-2017		2,200,000		2,196,218
Nissan Auto Lease Trust Series 2013-B Class A3		0.75			6-15-2016		558,572		558,520
Nissan Auto Lease Trust Series 2014-A Class A2A		0.48			9-15-2016		2,029,610		2,028,433
Oscar US Funding Trust Series 2015-1A Class A2A 144A		1.30			2-15-2018		3,000,000		3,012,564
Penarth Master Issuer Series 2013-1A Class A1 144A±		0.59			11-18-2017		2,000,000		1,999,826
Porsche Innovative Lease Owner Trust Series 2015-1 Class A2 144A		0.79			11-21-2017		1,000,000		1,000,055
Smart Trust Series 2013-2US Class A3A		0.83			1-14-2017		1,120,486		1,119,524
Smart Trust Series 2014-1US Class A2A		0.58			7-14-2016		101,713		101,699
Smart Trust Series 2015-1US Class A2A		0.99			8-14-2017		1,880,000		1,881,359
SunTrust Auto Receivables Trust Series 2015-1A Class A2 144A		0.99			6-15-2018		2,000,000		1,994,984
Toyota Auto Receivables Owner Trust Series 2015-C Class A2A		0.92			2-15-2018		3,700,000		3,701,706
Volkswagen Auto Lease Trust Series 2014-A Class A3		0.80			4-20-2017		4,265,000		4,264,002
Volkswagen Auto Lease Trust Series 2014-A Class A2A		0.52			10-20-2016		305,655		305,551
Volkswagen Auto Lease Trust Series 2015-A Class A2A		0.87			6-20-2017		958,644		958,553
Volvo Financial Equipment LLC Series 2014-1A Class A2 144A		0.54			11-15-2016		896,497		896,229
World Omni Automobile Lease Series 2015-A Class A2A		1.06			5-15-2018		2,900,000		2,899,081
World Omni Automobile Receivables Trust Series 2015-A Class A2A		0.79			7-16-2018		976,467		976,052
Total Asset-Backed Securities (Cost $73,861,406)									73,858,119

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

10 Wells Fargo Advantage Conservative Income Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Corporate Bonds and Notes: 23.52%
Consumer Discretionary: 0.75%
Specialty Retail: 0.75%
Lowe’s Companies Incorporated		2.13	%		4-15-2016	$	2,500,000	$	2,518,410
Financials: 19.96%
Banks: 10.06%
Bank of America Corporation ±		0.73			6-5-2017		1,000,000		997,388
Bank of America Corporation ±		0.78			2-14-2017		1,890,000		1,888,038
Branch Banking & Trust Company ±		0.61			9-13-2016		1,050,000		1,050,531
Branch Banking & Trust Company		5.63			9-15-2016		250,000		260,948
Branch Banking & Trust Corporation		3.95			4-29-2016		1,884,000		1,921,433
Capital One NA ±		0.98			2-5-2018		1,500,000		1,496,931
Citigroup Incorporated ±		0.82			3-10-2017		1,350,000		1,346,724
Citigroup Incorporated ±		1.00			11-15-2016		500,000		501,740
Citigroup Incorporated ±		1.18			7-30-2018		900,000		900,201
Citigroup Incorporated ±		1.26			7-25-2016		500,000		501,195
Credit Suisse New York ±		0.98			4-27-2018		2,500,000		2,477,070
Credit Suisse New York ±		0.98			1-29-2018		1,750,000		1,746,465
Fifth Third Bank		0.90			2-26-2016		2,300,000		2,300,041
HSBC USA Incorporated ±		1.08			8-7-2018		2,000,000		1,996,482
JPMorgan Chase & Company ±		0.84			2-15-2017		4,000,000		3,994,656
JPMorgan Chase & Company		1.10			10-15-2015		375,000		375,263
Merrill Lynch & Company Incorporated		5.30			9-30-2015		595,000		596,936
MUFG Union Bank NA ±		1.03			9-26-2016		1,625,000		1,628,356
PNC Bank NA ±		0.60			8-1-2017		1,650,000		1,642,339
PNC Bank NA ±		0.70			6-1-2018		500,000		497,294
PNC Bank NA		1.13			1-27-2017		750,000		747,174
PNC Bank NA		1.30			10-3-2016		2,000,000		2,005,128
UBS AG ±		0.84			6-1-2017		1,000,000		999,481
UBS AG ±		0.98			3-26-2018		2,000,000		1,998,912
									33,870,726
Capital Markets: 1.68%
Goldman Sachs Group Incorporated ±		0.73			3-22-2016		1,000,000		999,756
Goldman Sachs Group Incorporated		3.63			2-7-2016		1,750,000		1,770,129
Morgan Stanley ±		1.02			1-5-2018		1,350,000		1,349,992
Morgan Stanley		3.80			4-29-2016		1,500,000		1,528,446
									5,648,323
Consumer Finance: 5.32%
American Express Centurion Bank		0.88			11-13-2015		900,000		900,459
American Express Credit Corporation		1.30			7-29-2016		1,750,000		1,755,464
American Express Credit Corporation		2.75			9-15-2015		1,021,000		1,021,690
American Honda Finance Corporation ±		0.41			9-2-2016		1,150,000		1,149,933
Daimler Finance North America LLC 144A		1.45			8-1-2016		3,550,000		3,559,922
Harley-Davidson Financial Services Incorporated 144A		3.88			3-15-2016		3,400,000		3,453,778
HSBC Finance Corporation		5.50			1-19-2016		2,200,000		2,238,766
Nissan Motor Acceptance Corporation 144A		1.00			3-15-2016		1,845,000		1,845,867

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

Portfolio of investments—August 31, 2015 Wells Fargo Advantage Conservative Income Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Consumer Finance (continued)
Volkswagen Group of America Finance LLC 144A±		0.77	%		11-20-2017	$	725,000	$	722,942
Volkswagen Group of America Finance LLC 144A±		0.80			5-22-2018		1,250,000		1,249,503
									17,898,324
Diversified Financial Services: 0.97%
General Electric Capital Corporation		5.00			1-8-2016		1,650,000		1,675,613
General Electric Capital Corporation Series A		5.38			10-20-2016		1,500,000		1,570,817
									3,246,430
Insurance: 1.93%
ACE INA Holdings Incorporated		2.60			11-23-2015		3,810,000		3,824,550
Jackson National Life Global Funding Company 144A±		0.54			7-29-2016		2,000,000		2,001,018
Principal Life Global Funding II 144A		1.00			12-11-2015		675,000		675,859
									6,501,427
Health Care: 1.68%
Health Care Providers & Services: 1.32%
Novant Health Incorporated		5.35			11-1-2016		3,300,000		3,461,746
Providence Health & Services Obligated Group ±		0.93			10-1-2015		1,000,000		1,000,137
									4,461,883
Pharmaceuticals: 0.36%
Bayer US Finance LLC 144A±		0.53			10-7-2016		1,200,000		1,198,577
Information Technology: 0.59%
Communications Equipment: 0.59%
Cisco Systems Incorporated ±		0.59			6-15-2018		2,000,000		1,994,456
Utilities: 0.54%
Electric Utilities: 0.54%
Southern Company		2.38			9-15-2015		1,825,000		1,825,944
Total Corporate Bonds and Notes (Cost $79,262,472)									79,164,500
Municipal Obligations: 9.23%
California: 3.13%
California Earthquake Authority (Miscellaneous Revenue)		1.19			7-1-2016		1,750,000		1,752,520
California Industry Public Facilities Authority Series A (Tax Revenue, AGM Insured)		1.76			1-1-2017		2,500,000		2,507,350
Oakland-Alameda County CA Coliseum Authority Series A (Miscellaneous Revenue)		1.25			2-1-2017		2,250,000		2,241,495
Riverside County CA Public Financing Authority Indian Wells Project Series A Class T (Tax Revenue)		0.83			9-1-2015		1,045,000		1,045,000
University of California Series Y-1 (Education Revenue) ±		0.69			7-1-2041		2,985,000		2,984,552
									10,530,917
Florida: 0.79%
Village Center Florida Community Development District (Miscellaneous Revenue) 144A		1.30			11-1-2015		2,665,000		2,664,440

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

12 Wells Fargo Advantage Conservative Income Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Illinois: 0.59%
Chicago IL Midway Airport Series C (Airport Revenue)		1.32	%		1-1-2016	$	600,000	$	601,818
Illinois (GO Revenue)		4.96			3-1-2016		1,365,000		1,386,854
									1,988,672
Kentucky: 1.48%
Kentucky Municipal Power Agency Series B002 (Miscellaneous Revenue, AGM Insured, Morgan Stanley Bank LIQ) 144A±		0.54			9-1-2037		5,000,000		5,000,000
Minnesota: 0.33%
Saint Paul MN Housing & Redevelopment Authority HealthPartners Obligated Group Series B (Health Revenue)		1.04			7-1-2016		1,100,000		1,099,549
New Jersey: 0.27%
New Jersey EDA School Facilities Construction Series QQ (Miscellaneous Revenue)		1.10			6-15-2016		900,000		898,524
New York: 0.92%
Nassau County NY Series C (GO Revenue)		1.13			12-15-2016		1,400,000		1,396,766
New York NY Housing Development Corporation Series B1 (Housing Revenue)		0.75			5-1-2016		1,700,000		1,701,802
									3,098,568
North Carolina: 1.72%
North Carolina Eastern Municipal Power Agency (Utilities Revenue)		1.09			7-1-2016		5,750,000		5,778,405
Total Municipal Obligations (Cost $31,031,753)									31,059,075
Non-Agency Mortgage-Backed Securities: 2.87%
Bank of America Commercial Mortgage Trust Series 2007-1 Class A4		5.45			1-15-2049		1,175,805		1,229,755
Bear Stearns Commercial Mortgage Securities Incorporated Series 2005-T20 Class A4A ±		5.26			10-12-2042		14,272		14,257
CCG Receivables Trust Class 2014-1 Class A2 144A		1.06			11-15-2021		1,468,491		1,464,896
Dell Equipment Finance Trust 2015-1 Class A2 144A		1.01			7-24-2017		2,000,000		1,997,668
JPMorgan Chase Commercial Mortgage Securities Trust Series 2005-LDP5 Class A4 ±		5.41			12-15-2044		611,103		610,382
JPMorgan Chase Commercial Mortgage Securities Trust Series 2006-LDP6 Class A4 ±		5.48			4-15-2043		1,326,188		1,337,431
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-LDPX Class A1A		5.44			1-15-2049		1,033,285		1,079,661
JPMorgan Chase Commercial Mortgage Securities Trust Series 2012-C6 Class A2		2.21			5-15-2045		1,901,238		1,920,425
Total Non-Agency Mortgage-Backed Securities (Cost $9,724,933)									9,654,475
Yankee Corporate Bonds and Notes: 20.55%
Consumer Staples: 2.45%
Food & Staples Retailing: 1.14%
Wesfarmers Limited 144A		2.98			5-18-2016		3,810,000		3,860,029
Tobacco: 1.31%
BAT International Finance plc 144A±		0.80			6-15-2018		4,400,000		4,398,720
Energy: 1.48%
Oil, Gas & Consumable Fuels: 1.48%
BP Capital Markets plc ±		0.66			2-10-2017		1,250,000		1,248,025
BP Capital Markets plc		3.13			10-1-2015		1,000,000		1,002,112
BP Capital Markets plc		3.20			3-11-2016		1,701,000		1,721,189

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

Portfolio of investments—August 31, 2015 Wells Fargo Advantage Conservative Income Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Oil, Gas & Consumable Fuels (continued)
CNPC General Capital Limited 144A±		1.21	%		5-14-2017	$	1,000,000	$	998,444
									4,969,770
Financials: 15.19%
Banks: 11.73%
ABN Amro Bank NV 144A±		1.09			10-28-2016		2,000,000		2,007,580
ANZ New Zealand International Limited of London 144A		1.85			10-15-2015		1,050,000		1,051,856
Australia & New Zealand Banking Group Limited 144A±		0.73			1-16-2018		1,500,000		1,498,100
Banco Santander Chile 144A±		1.19			4-11-2017		1,250,000		1,240,175
Bank of Montreal		1.30			7-15-2016		3,000,000		3,014,547
Banque Federative du Credit Mutuel SA 144A±		1.14			1-20-2017		1,000,000		1,005,090
BPCE SA		1.70			4-25-2016		2,695,000		2,705,780
Export-Import Bank of Korea ±		1.04			1-14-2017		1,400,000		1,403,650
Export-Import Bank of Korea		1.25			11-20-2015		2,000,000		2,001,580
Export-Import Bank of Korea 144A		5.38			10-4-2016		1,000,000		1,044,716
Industrial & Commercial Bank of China Limited ±		1.50			11-13-2017		1,500,000		1,506,189
ING Bank NV 144A		2.00			9-25-2015		4,840,000		4,844,932
Kookmin Bank 144A±		1.17			1-27-2017		2,000,000		2,008,782
Kookmin Bank 144A±		1.54			10-11-2016		500,000		503,634
Lloyds Bank plc ±		1.10			8-17-2018		3,500,000		3,508,341
Macquarie Bank Limited 144A±		1.07			3-24-2017		1,000,000		1,001,486
Mizuho Bank Limited 144A±		0.92			3-26-2018		2,500,000		2,504,970
National Australia Bank Limited 144A±		0.93			7-23-2018		1,750,000		1,748,908
National Australia Bank Limited		1.30			7-25-2016		1,000,000		1,004,951
Sumitomo Mitsui Banking Corporation ±		0.87			1-16-2018		1,500,000		1,496,940
Sumitomo Mitsui Trust Bank Limited 144A±		1.06			9-16-2016		750,000		752,451
Suncorp-Metway Limited 144A		1.70			3-28-2017		1,625,000		1,632,691
									39,487,349
Consumer Finance: 0.91%
Volkswagen International Finance NV 144A		1.13			11-18-2016		1,000,000		998,718
Volkswagen International Finance NV 144A		2.88			4-1-2016		2,032,000		2,057,884
									3,056,602
Diversified Financial Services: 1.66%
Abbey National Treasury Services plc ±		0.80			3-13-2017		500,000		499,457
Abbey National Treasury Services plc		4.00			4-27-2016		1,300,000		1,326,420
La Caisse Centrale Desjardins du Quebec 144A±		0.96			1-29-2018		3,760,000		3,774,326
									5,600,203
Insurance: 0.89%
Manulife Financial Corporation		3.40			9-17-2015		3,000,000		3,003,264
Information Technology: 0.68%
Internet Software & Services: 0.68%
Alibaba Group Holding Limited 144A±		0.85			11-28-2017		2,300,000		2,288,298

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

14 Wells Fargo Advantage Conservative Income Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Telecommunication Services: 0.75%
Wireless Telecommunication Services: 0.75%
America Movil SAB de CV ±		1.29	%		9-12-2016	$	2,500,000	$	2,511,153
Total Yankee Corporate Bonds and Notes (Cost $69,174,090)									69,175,388
Short-Term Investments: 20.55%
Certificates of Deposit: 0.59%
Bank of Tokyo-Mitsubishi LLC		0.66			7-15-2016		2,000,000		1,999,406
Commercial Paper: 19.38%
Atlantic Asset Securitization LLC (p)(z)		0.24			10-14-2015		4,000,000		3,998,695
Barton Capital LLC (p)(z)		0.11			9-8-2015		1,500,000		1,499,963
Cancara Asset Securitisation LLC (p)(z)		0.23			10-1-2015		5,000,000		4,998,997
CNPC Finance Limited (z)		0.14			9-17-2015		4,000,000		3,999,730
Coca-Cola Company (z)		0.07			9-8-2015		1,500,000		1,499,976
Collateralized Commercial Paper Company LLC (z)		0.20			9-24-2015		1,000,000		999,869
Collateralized Commercial Paper Company LLC (z)		0.27			10-13-2015		4,400,000		4,398,607
Crown Point Capital Company (p)(z)		0.25			10-9-2015		4,500,000		4,498,762
Institutional Secured Funding LLC (p)(z)		0.14			9-1-2015		2,500,000		2,499,990
Institutional Secured Funding LLC (p)(z)		0.17			10-2-2015		2,500,000		2,499,620
Liberty Street Funding LLC (p)(z)		0.27			10-13-2015		7,000,000		6,997,784
LMA Americas LLC (p)(z)		0.25			10-9-2015		3,000,000		2,999,166
Mountcliff Funding LLC (p)(z)		0.24			10-5-2015		4,350,000		4,348,972
Prudential plc (z)		0.15			9-23-2015		5,000,000		4,999,508
Ridgefield Funding Company LLC (p)(z)		0.17			9-2-2015		5,500,000		5,499,948
Sumitomo Mitsui Trust NY (z)		0.22			10-13-2015		4,000,000		3,998,963
Suncorp-Metway Limited (z)		0.17			10-6-2015		2,000,000		1,999,652
Suncorp-Metway Limited (z)		0.30			1-5-2016		3,500,000		3,496,308
									65,234,510
	Yield					Shares
Investment Companies: 0.57%
Wells Fargo Advantage Cash Investment Money Market Fund, Select Class (l)(u)		0.15					1,920,819		1,920,819
						Principal
U.S. Treasury Securities: 0.01%
U.S. Treasury Bill (z)#		0.01			9-17-2015	$	30,000		30,000
Total Short-Term Investments (Cost $69,203,972)									69,184,735

Total investments in securities (Cost $332,258,626) *	98.66	%		332,096,292
Other assets and liabilities, net	1.34			4,512,201
Total net assets	100.00	%	$	336,608,493

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

Portfolio of investments—August 31, 2015 Wells Fargo Advantage Conservative Income Fund 15

144A The security may be resold in transactions exempt from registration, normally to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933.

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

(p) Asset-backed commercial paper

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

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

(l) The security represents an affiliate of the Fund as defined in the Investment Company Act of 1940.

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

* Cost for federal income tax purposes is $332,260,241 and unrealized gains (losses) consists of:

Gross unrealized gains	$	144,679
Gross unrealized losses		(308,628	)
Net unrealized losses	$	(163,949	)

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

16 Wells Fargo Advantage Conservative Income Fund Statement of assets and liabilities—August 31, 2015

Assets
Investments
In unaffiliated securities, at value (cost $330,337,807)	$	330,175,473
In affiliated securities, at value (cost $1,920,819)		1,920,819
Total investments, at value (cost $332,258,626)		332,096,292
Receivable for investments sold		4,241,737
Receivable for interest		879,147
Receivable for daily variation margin on open futures contracts		4,375
Prepaid expenses and other assets		41,087
Total assets		337,262,638
Liabilities
Dividends payable		48,742
Payable for Fund shares redeemed		500,000
Management fee payable		39,083
Administration fee payable		22,823
Accrued expenses and other liabilities		43,497
Total liabilities		654,145
Total net assets	$	336,608,493
NET ASSETS CONSIST OF
Paid-in capital	$	336,829,356
Undistributed net investment income		6,466
Accumulated net realized losses on investments		(89,290	)
Net unrealized losses on investments		(138,039	)
Total net assets	$	336,608,493
COMPUTATION OF NET ASSET VALUE PER SHARE
Net assets – Institutional Class	$	336,608,493
Shares outstanding – Institutional Class1		33,667,225
Net asset value per share – Institutional Class		$10.00

¹  The Fund has an unlimited number of authorized shares.

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

Statement of operations—year ended August 31, 2015 Wells Fargo Advantage Conservative Income Fund 17

Investment income
Interest (net of foreign interest withholding taxes of $2,299)	$	1,781,534
Income from affiliated securities		1,392
Total investment income		1,782,926
Expenses
Management fee		598,278
Administration fee		191,449
Custody and accounting fees		20,395
Professional fees		39,237
Registration fees		28,854
Shareholder report expenses		17,688
Trustees’ fees and expenses		17,761
Other fees and expenses		6,029
Total expenses		919,691
Less: Fee waivers and/or expense reimbursements		(273,552	)
Net expenses		646,139
Net investment income		1,136,787
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized losses on:
Unaffiliated securities		(4,330	)
Futures transactions		(87,876	)
Net realized losses on investments		(92,206	)
Net change in unrealized gains (losses) on:
Unaffiliated securities		(335,993	)
Futures transactions		27,605
Net change in unrealized gains (losses) on investments		(308,388	)
Net realized and unrealized gains (losses) on investments		(400,594	)
Net increase in net assets resulting from operations	$	736,193

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

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

	Year ended August 31, 2015						Year ended August 31, 2014
Operations
Net investment income				$	1,136,787					$	521,040
Net realized gains (losses) on investments					(92,206	)					36,110
Net change in unrealized gains (losses) on investments					(308,388	)					228,803
Net increase in net assets resulting from operations					736,193						785,953
Distributions to shareholders from
Net investment income
Institutional Class					(1,128,996	)					(522,365	)
Net realized gains
Institutional Class					(9,602	)					(10,290	)
Total distributions to shareholders					(1,138,598	)					(532,655	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Institutional Class		27,133,297			271,477,199			17,611,286			176,332,163
Reinvestment of distributions
Institutional Class		73,619			736,530			44,616			446,908
Payment for shares redeemed
Institutional Class		(7,856,856	)		(78,621,317	)		(8,344,325	)		(83,597,346	)
Net increase in net assets resulting from capital share transactions					193,592,412						93,181,725
Total increase in net assets					193,190,007						93,435,023
Net assets
Beginning of period					143,418,486						49,983,463
End of period				$	336,608,493					$	143,418,486
Undistributed (overdistributed) net investment income				$	6,466					$	(1,325	)

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

Financial highlights Wells Fargo Advantage Conservative Income Fund 19

(For a share outstanding throughout each period)

	Year ended August 31
INSTITUTIONAL CLASS	2015			2014			20131
Net asset value, beginning of period		$10.02			$9.99			$10.00
Net investment income		0.05			0.04			0.01
Net realized and unrealized gains (losses) on investments		(0.02	)		0.03			(0.01	)
Total from investment operations		0.03			0.07			0.00
Distributions to shareholders from
Net investment income		(0.05	)		(0.04	)		(0.01	)
Net realized gains		(0.00	)2		(0.00	)2		0.00
Total distributions to shareholders		(0.05	)		(0.04	)		(0.01	)
Net asset value, end of period		$10.00			$10.02			$9.99
Total return3		0.28	%		0.74	%		0.01	%
Ratios to average net assets (annualized)
Gross expenses		0.38	%		0.43	%		0.74	%
Net expenses		0.27	%		0.27	%		0.27	%
Net investment income		0.48	%		0.44	%		0.44	%
Supplemental data
Portfolio turnover rate		80	%		55	%		10	%
Net assets, end of period (000s omitted)		$336,608			$143,418			$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.

20 Wells Fargo Advantage Conservative Income Fund Notes to financial statements

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

Debt securities are valued at the evaluated bid price provided by an independent pricing service or, if a reliable price is not available, the quoted bid price from an independent broker-dealer.

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 manager 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.

Futures contracts

The Fund is subject to interest rate risk in the normal course of pursuing its investment objectives. The Fund may buy and sell futures contracts in order to gain exposure to, or protect against, changes in security values and interest rates. The primary risks associated with the use of futures contracts are the imperfect correlation between changes in market values of securities held by the Fund and the prices of futures contracts, and the possibility of an illiquid market.

Notes to financial statements Wells Fargo Advantage Conservative Income Fund 21

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 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.

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. At August 31, 2015, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Paid-in capital	Accumulated net realized losses on investments
$(130)	$130

As of August 31, 2015, the Fund had capital loss carryforwards which consist of $24,859 in short-term capital losses and $38,521 in long-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)

22 Wells Fargo Advantage Conservative Income Fund Notes to financial statements

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

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of August 31, 2015:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Asset-backed securities	$	0	$	73,858,119	$	0	$	73,858,119
Corporate bonds and notes		0		79,164,500		0		79,164,500
Municipal obligations		0		31,059,075		0		31,059,075
Non-agency mortgage-backed securities		0		9,654,475		0		9,654,475
Yankee corporate bonds and notes		0		69,175,388		0		69,175,388
Short-term investments
Certificates of deposit		0		1,999,406		0		1,999,406
Commercial paper		0		65,234,510		0		65,234,510
Investment companies		1,920,819		0		0		1,920,819
U.S. Treasury securities		30,000		0		0		30,000
	$	1,950,819	$	330,145,473	$	0	$	332,096,292
Futures contracts		4,375		0		0		4,375
Total assets	$	1,955,194	$	330,145,473	$	0	$	332,100,667

Futures contracts are reported at their variation margin at measurement date, which represents the amount due to the Fund at that date. All other assets and liabilities are reported at their market value at measurement date.

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At August 31, 2015, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

4. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the applicable subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.25% and declining to 0.18% as the average daily net assets of the Fund increase.

Prior to July 1, 2015, Funds Management provided advisory services pursuant to an investment advisory agreement and was entitled to receive an annual fee which started at 0.20% and declined to 0.15% as the average daily net assets of the Fund increased. In addition, fund-level administrative services were provided by Funds Management under a separate administration agreement at an annual fee which started at 0.05% and declined to 0.03% as the average daily net assets of the Fund increased. For financial statement purposes, the advisory fee and fund-level administration fee for the year ended August 31, 2015 have been included in management fee on the Statement of Operations.

For the year ended August 31, 2015, the management fee was equivalent to an annual rate of 0.25% 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.

Notes to financial statements Wells Fargo Advantage Conservative Income Fund 23

Administration fee

Under a class-level administration agreement, Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Funds Management receives an annual fee of 0.08% which is calculated based on its average daily net assets.

Funds Management has contractually waived and/or reimbursed management 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, 2015 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.27% for Institutional Class shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended August 31, 2015 were $422,446,177 and $167,163,436, respectively.

6. DERIVATIVE TRANSACTIONS

During the year ended August 31, 2015, the Fund entered into futures contracts to speculate on interest rates and to help manage the duration of the portfolio.

At August 31, 2015, the Fund had short futures contracts outstanding as follows:

Expiration date	Counterparty	Contracts	Type	Contract value at August 31, 2015	Unrealized gains
12-31-2015	JPMorgan	40 Short	2-Year U.S. Treasury Notes	$8,738,750	$24,295

The Fund had an average notional amount of $5,804,165 in short futures contracts during the year ended August 31, 2015.

On August 31, 2015, the cumulative unrealized gains on futures contracts in the amount of $24,295 are reflected in net unrealized losses on investments on the Statement of Assets and Liabilities. The receivable for daily variation margin on open futures contracts reflected in the Statement of Assets and Liabilities only represents the current day’s variation margin. The realized 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 derivatives. Cash collateral that has been pledged to cover obligations of the Fund under ISDA Master Agreements or similar agreements, 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 of assets
Futures – variation margin	JPMorgan	$4,375	$	0	$	0	$	4,375

24 Wells Fargo Advantage Conservative Income Fund Notes to financial statements

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, 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 year ended August 31, 2015, the Fund paid $220 in commitment fees.

For the year ended August 31, 2015, there were no borrowings by the Fund under the agreement.

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid was $1,138,598 and $532,655 of ordinary income for the years ended August 31, 2015 and August 31, 2014, respectively.

As of August 31, 2015, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Unrealized losses	Capital loss carryforward
$55,208	$(163,949)	$(63,380)

9. INDEMNIFICATION

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

Report of independent registered public accounting firm Wells Fargo Advantage Conservative Income Fund 25

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Advantage Conservative Income Fund (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, as of August 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the three-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of August 31, 2015, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Advantage Conservative Income Fund as of August 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the three-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

October 26, 2015

26 Wells Fargo Advantage Conservative Income Fund Other information (unaudited)

TAX INFORMATION

For the fiscal year ended August 31, 2015, $772,551 has been designated as interest-related dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

For the fiscal year ended August 31, 2015, $9,472 has been designated as short-term capital gain dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at 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 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 monthly on the Fund’s website (wellsfargoadvantagefunds.com), on a one-month delayed basis. In addition, top ten holdings information (excluding derivative positions) 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 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 27

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo Advantage family of funds, which consists of 133 mutual funds 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. 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 or longer	Other public company or investment company directorships during past 5 years
William R. Ebsworth (Born 1957)	Trustee, since 2015**	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director at Fidelity Management and Research Company and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. in Boston, Tokyo, and Hong Kong where he led a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Mr. Ebsworth is a CFA ® charterholder and an Adjunct Lecturer, Finance, at Babson College.	Asset Allocation Trust
Jane A. Freeman (Born 1953)	Trustee, since 2015**	Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is Chair of Taproot Foundation (non-profit organization), a Board Member of Ruth Bancroft Garden (non-profit organization) and an inactive chartered financial analyst.	Asset Allocation Trust; Harding Loevner Funds; Russell Exchange Traded Funds Trust
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. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (charter school). Mr. Harris is a certified public accountant.	CIGNA 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
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

28 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 or longer	Other public company or investment company directorships during past 5 years
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 Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
Michael S. Scofield (Born 1943)	Trustee, since 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 complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust
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.

** William R. Ebsworth and Jane A. Freeman each became a Trustee effective January 1, 2015.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Karla M. Rabusch (Born 1959)	President, since 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.
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. Assistant General Counsel of Wells Fargo Bank, N.A. since 2013 and Vice President and Managing Counsel of Wells Fargo Bank N.A. from 1996 to 2013.
Debra Ann Early (Born 1964)	Chief Compliance Officer, since 2007	Executive Vice President of Wells Fargo Funds Management, LLC since 2014, Senior Vice President and Chief Compliance Officer from 2007 to 2014.
David Berardi (Born 1975)	Assistant Treasurer, since 2009	Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.
Jeremy DePalma1 (Born 1974)	Assistant Treasurer, since 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 and head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.

¹ Nancy Wiser acts as Treasurer of 72 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 61 funds and Assistant Treasurer of 72 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.

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

BOARD CONSIDERATION OF INVESTMENT ADVISORY, INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment advisory and sub-advisory agreements. In this regard, at an in-person meeting held on May 19-20, 2015 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment advisory and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo Advantage Conservative Income Fund (the “Fund”): (i) an investment advisory agreement (the “Advisory Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); (ii) an investment management agreement (the “Management Agreement”) with Funds Management; and (iii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the “Sub-Adviser”), an affiliate of Funds Management. The Management Agreement combines the terms of the Advisory Agreement with the terms of the Fund’s Amended and Restated Administration Agreement (the “Administration Agreement”) applicable to Fund-level administrative services. The Advisory Agreement, the Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”

At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in March 2015, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2015. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

After its deliberations, the Board unanimously approved the continuation of the Advisory Agreement for the period from June 1, 2015 through June 30, 2015, approved the Management Agreement for the period from July 1, 2015 through May 31, 2016, and approved the continuation of the Sub-Advisory Agreement for a one-year term through May 31, 2016. The Board also determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.

Nature, extent and quality of services

The Board received and considered various information regarding the nature, extent and quality of services provided to the Fund by Funds Management and the Sub-Adviser under the Advisory Agreements. This information included, among other things, a summary of the background and experience of senior management of Funds Management, and the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund. The Board noted that the services to be provided to the Fund pursuant to the Management Agreement combined the advisory services previously provided to the Fund pursuant to the Fund’s Advisory Agreement with the Fund-level administrative services previously provided to the Fund pursuant to the Fund’s Administration Agreement. The Board received a representation from Funds Management that combining these services would not result in any change to the nature or level of services provided by Funds Management to the Fund.

The Board evaluated the ability of Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory and supervisory personnel. The Board further considered the compliance programs and compliance records of Funds Management and the Sub-Adviser. In addition, the Board took into account the full range of services provided to the Fund by Funds Management and its affiliates.

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

Fund performance and expenses

The Board considered the performance results for the Fund over various time periods ended March 31, 2015. The Board considered these results in comparison to the performance of funds in a universe that was determined by Lipper Inc. (“Lipper”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Lipper is an independent provider of investment company data. The Board received a description of the methodology used by Lipper to select the mutual funds in the performance Universe. The Board noted that the performance of the Fund (Institutional Class) was in range of the average performance of the Universe for the first quarter of 2015 and lower than the average performance of the Universe for the one-year period. The Board also noted that the performance of the Fund was higher than its benchmark, the Barclays U.S. Treasury Bills: 6-9 Months Index, for all periods under review.

The Board also received and considered information regarding the Fund’s net operating expense ratio and its various components, including actual management fees (which reflect fee waivers, if any, and include advisory, administration and transfer agent fees), custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 service fees. The Board considered this ratio in comparison to the median ratio of funds in a class-specific expense group that was determined by Lipper to be similar to the Fund (the “Group”). The Board received a description of the methodology used by Lipper to select the mutual funds in the expense Group and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Lipper reports, the Board noted that the net operating expense ratio of the Fund was lower than the median net operating expense ratio of the expense Group.

The Board took into account the Fund performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreement and Sub-Advisory Agreement and approve the Management Agreement.

Investment advisory and sub-advisory fee rates

The Board reviewed and considered the contractual investment advisory fee rates that are payable by the Fund to Funds Management for investment advisory services (the “Advisory Agreement Rates”), both on a stand-alone basis and on a combined basis with the Fund’s fund-level and class-level contractual administration fee rates (the “Management Rates”). The Board noted that the Management Rates include transfer agency and sub-transfer agency costs. The Board also noted that the fee rate to be paid by the Fund under the Management Agreement will incorporate the advisory fee and Fund-level administration fee previously payable separately by the Fund under the Fund’s Advisory Agreement and Administration Agreement with Funds Management. The Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Funds Management to the Sub-Adviser for investment sub-advisory services (the “Sub-Advisory Agreement Rates”).

Among other information reviewed by the Board was a comparison of the Management Rate of the Fund with those of other funds in the expense Group at a common asset level. The Board noted that the Management Rate of the Fund was lower than the average rate for the Fund’s expense Group.

The Board also received and considered information about the portion of the total advisory fee that was retained by Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Funds Management and not delegated to or assumed by the Sub-Adviser, and about Funds Management’s on-going oversight services. However, given the affiliation between Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of the advisory fee between them.

The Board also received and considered information about the nature and extent of services offered and fee rates charged by Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing mutual funds compared with those associated with managing assets of non-mutual fund clients such as collective funds or institutional separate accounts.

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Funds Management under the Management Agreement and Advisory Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable, in light of the services covered by the Advisory Agreements.

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also

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

received and considered information concerning the profitability of the Sub-Adviser from providing services to the fund family as a whole, noting that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo profitability analysis.

Funds Management reported on the methodologies and estimates used in calculating profitability. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size and type of fund. Based on its review, the Board did not deem the profits reported by Funds Management or Wells Fargo from its services to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.

Economies of scale

With respect to possible economies of scale, the Board noted the existence of breakpoints in the Fund’s advisory and management fee structures, and the Fund’s administration fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered that fee waiver and expense reimbursement arrangements and competitive fee rates at the outset are means of sharing potential economies of scale with shareholders of the Fund and the fund family as a whole. The Board considered Funds Management’s view that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments that Funds Management incurs across the fund family as a whole.

The Board concluded that the Fund’s fee and expense arrangements, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.

Other benefits to Funds Management and the Sub-Adviser

The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that various affiliates of Funds Management may receive distribution-related fees, shareholder servicing payments and sub-transfer agency fees in respect of shares sold or held through them and services provided.

The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser, fees earned by Funds Management and the Sub-Adviser from managing a private investment vehicle for the fund family’s securities lending collateral and commissions earned by an affiliated broker from portfolio transactions.

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory Agreement for the period from June 1, 2015 through June 30, 2015, approved the Management Agreement for the period from July 1, 2015 through May 31, 2016, and approved the continuation of the Sub-Advisory Agreement for a one-year term through May 31, 2016. The Board also determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable.

32 Wells Fargo Advantage Conservative 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 —  Colombian 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

LIFER —  Long Inverse Floating Exempt Receipts

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

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —   Short Puttable Exempt Adjustable 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. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at wellsfargoadvantagefunds.com. 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, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

© 2015 Wells Fargo Funds Management, LLC. All rights reserved.

236801 10-15 A265/AR265 08-15

Wells Fargo Advantage
Government Securities Fund

Annual Report

August 31, 2015

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	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
Report of independent registered public accounting firm	28
Other information	29
List of abbreviations	35

* A complete schedule of portfolio holdings as of the report date may be obtained, free of charge, by accessing the following website: https://www.wellsfargoadvantagefunds.com/assets/edocs/regulatory/holdings/government-securities-ann.pdf or by calling Wells Fargo Advantage Funds at 1-800-222-8222. This complete schedule, filed on Form N-CSR, is also available on the SEC’s website at sec.gov.

The views expressed and any forward-looking statements are as of August 31, 2015, 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

Major central banks continued to inject liquidity into global banks and markets through various accommodative monetary policies, including quantitative easing.

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Advantage Government Securities Fund for the 12-month period that ended August 31, 2015. The period was marked by low interest rates, low oil prices, and moderate U.S. economic growth. Short-term investment-grade bonds, as measured by the Barclays U.S. 1–3 Year Government/Credit Bond Index¹, returned 0.81% during the period. Meanwhile, strong demand for high-quality, liquid assets kept returns on Treasury bills more modest; the Barclays 6-Month Treasury Bill Index² returned 0.15% during the period.

Major central banks continued to provide stimulus.

Major central banks continued to inject liquidity into global banks and markets through various accommodative monetary policies, including quantitative easing. In the U.S., the Federal Reserve (Fed) kept its key interest rate near zero in order to support the economy and the financial system. However, it set expectations for it to begin normalizing monetary policy with higher target ranges for the federal funds rate.

Meanwhile, European markets continued to benefit from the European Central Bank’s (ECB’s) willingness to maintain low interest rates. In addition to its targeted longer-term refinancing operations that are designed to increase bank lending, the ECB expanded its quantitative easing program to include the purchase of eurozone government bonds. In Japan, the Bank of Japan maintained an aggressive monetary program aimed at combating deflation.

Economic growth was moderate, and oil prices plummeted.

U.S. economic growth advanced during the reporting period, the unemployment rate ticked lower to 5.1% as of August 2015, and inflation remained below the Fed’s longer-run objective of a 2% pace. The period was also marked by lower oil prices, which began the reporting period near $90 per barrel but declined to $46 per barrel at the end of August 2015. While lower oil prices benefited consumers of oil products, the lower prices pressured companies within the energy sector.

Bond yields rose but remained low by historical standards.

Short-term interest rates increased during the reporting period, with a flattening in the shape of the short-term yield curve. During this time frame, 1-year Treasury bills rose 29 basis points (bps; 100 bps equals 1.00%) to yield 0.38%, 2-year Treasury note yields rose 21 bps to yield 0.74%, and 3-year Treasury note yields rose only 8 bps to yield 1.05%. Meanwhile, ultra-short-term yields were little changed at ultralow levels, anchored by the easy monetary policy.

Since the end of the financial crisis, structural changes in the fixed-income markets have reduced trading liquidity (the degree to which assets can be bought or sold without affecting the price). New regulations and capital requirements have caused traditional liquidity suppliers (banks and broker/dealers) to be more risk-averse and hold less inventory. Meanwhile, corporate-debt issuance has

¹  The Barclays U.S. 1–3 Year Government/Credit Bond Index is the one- to three-year component of the Barclays U.S. Government/Credit Bond Index that includes securities in the Government and Credit Indexes. 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.

²  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.

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

spiked as companies finance themselves at record-low yields, bond mutual funds hold larger amounts of this new debt supply, trading volumes are lower, and large-size trades are more difficult to execute. However, fixed-income markets appear to have functioned well over the past year with sufficient liquidity and muted volatility.

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

Periods of 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 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 in Wells Fargo Advantage Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.

Sincerely,

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Periods of 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.

Notice to shareholders

At a meeting held on August 11–12, 2015, the Board of Trustees of the Fund approved a change in the name of the Fund whereby the word “Advantage” will be removed from its name, effective December 15, 2015.

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.

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

Investment objective

The Fund seeks current income.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Ashok Bhatia, CFA

Christopher Y. Kauffman, CFA

Jay Mueller, CFA

Average annual total returns¹ (%) as of August 31, 2015

		Including sales charge							Excluding sales charge						Expense ratios2 (%)
	Inception date	1 year			5 year		10 year		1 year		5 year		10 year		Gross		Net3
Class A (SGVDX)	8-31-1999		(2.74	)		1.21		3.40		1.84		2.14		3.88		0.89		0.86
Class B (WGSBX)*	7-18-2008		(4.01	)		0.98		3.35		0.99		1.36		3.35		1.64		1.61
Class C (WGSCX)	12-26-2002		0.08			1.38		3.10		1.08		1.38		3.10		1.64		1.61
Administrator Class (WGSDX)	4-08-2005		–			–		–		1.97		2.34		4.09		0.83		0.65
Institutional Class (SGVIX)	8-31-1999		–			–		–		2.22		2.52		4.28		0.56		0.49
Investor Class (STVSX)	10-29-1986		–			–		–		1.72		2.09		3.84		0.92		0.89
Barclays U.S. Aggregate ex Credit Index4	–		–			–		–		2.41		2.59		4.25		–		–
Barclays Intermediate Government Index5	–		–			–		–		1.89		1.78		3.70		–		–

* 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 a contingent deferred 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. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the Fund and its share price can be sudden and unpredictable. 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 5.

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

Growth of $10,000 investment⁶ as of August 31, 2015

¹  Effective June 20, 2008, the Advisor Class was renamed Class A and modified to assume the features and attributes of Class A. Historical performance shown for Class A shares through June 19, 2008, includes Advisor Class expenses. 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.

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 manager has contractually committed through December 31, 2015, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver 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. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. 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 ex Credit Index is composed of the Barclays U.S. Government 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 Government 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 chart compares the performance of Class A shares for the most recent 10 years with the performance of the Barclays Intermediate Government Index and the Barclays U.S. Aggregate ex Credit Index. The chart assumes a hypothetical investment of $10,000 in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 4.50%.

⁷  The ten largest holdings, excluding cash and cash equivalents, are calculated based on the value of the investments divided by total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

⁸  Amounts are calculated based on the total long-term investments of the Fund. These amounts are subject to change and may have changed since the date specified.

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

MANAGER’S DISCUSSION

Fund highlights

n The Fund underperformed its benchmarks, the Barclays U.S. Aggregate ex Credit Index and the Barclays Intermediate Government Index, for the 12-month period that ended August 31, 2015.

n The Fund’s overweight to nonagency commercial mortgage-backed securities (CMBS) detracted from performance due to wider spreads caused by increased CMBS supply as well as wider corporate credit spreads.

n The Fund’s overweight allocation to agency collateralized mortgage obligations and agency CMBS contributed to performance because those yield spreads narrowed.

Ten largest holdings7 (%) as of August 31, 2015
U.S. Treasury Note, 0.10%, 1-31-2016	10.54
U.S. Treasury Note, 0.25%, 12-31-2015	8.85
U.S. Treasury Note, 0.38%, 2-15-2016	7.85
U.S. Treasury Note, 0.38%, 11-15-2015	6.56
FNMA, 4.50%, 9-14-2045	5.16
FNMA, 4.00%, 9-14-2045	4.97
U.S. Treasury Note, 1.38%, 2-28-2019	4.56
FHLMC, 3.50%, 9-14-2045	4.54
FNMA, 3.00%, 9-14-2045	4.10
U.S. Treasury Note, 0.25%, 11-30-2015	3.52

The economic climate remained benign.

The U.S. economy featured trend-like growth, a steadily improving labor market, and generally stable inflation over the past 12 months. Real gross domestic product growth averaged about 2.7% in the most recent four quarters as personal income gains supported consumption. In contrast, business investment softened, in part, due to weakness in the energy industry brought on by a collapse in global oil prices.

The labor market continued to tighten over the past 12 months, as evidenced by a full percentage point decline in the unemployment rate to 5.1%. Nonfarm payrolls expanded at an average pace of about 240,000 per month over the period. Following a persistent theme

of this expansion, some of the improvement in the unemployment rate can be attributed to a decline in the labor force participation rate, which fell to 62.6% at the end of the period versus 62.8% a year ago.

The inflationary environment was mixed over the past 12 months as the drop in oil prices pushed the year-over-year change in the headline Consumer Price Index (CPI) down to 0.2% compared with a 1.7% headline inflation rate a year ago. Excluding food and energy, however, the CPI rose 1.8%, which is in line with the average rate of core inflation recorded over the past five years.

Monetary policy transitioned from maximal accommodation to the beginning of a tightening cycle over the past 12 months. The Federal Open Market Committee (FOMC) completed its third round of asset purchases, also known as quantitative easing, in the fourth quarter of 2014, though the monetary authorities continue to reinvest the proceeds of maturing principal and interest payments from their existing portfolio. The FOMC’s overnight federal funds rate target remained unchanged throughout the period, with the federal funds rate held to a range of 0.00% to 0.25%. There is a good chance that an initial hike in the target range will occur before the end of 2015, to be followed by a very gradual normalization of monetary policy.

Please see footnotes on page 5.

Performance highlights (unaudited) Wells Fargo Advantage Government Securities Fund 7

Portfolio allocation⁸ as of August 31, 2015

Sector allocations were overweight securitized investments.

We continued to find relative value among securitized bonds, particularly residential mortgage-backed securities (MBS) and CMBS. Within the MBS sector, the Fund was positioned with an emphasis on higher-coupon paper as a defensive strategy ahead of higher interest rates and an underweight to Ginnie Mae bonds due to their rich valuations. The Fund maintained an overweight to both agency and nonagency CMBS during the period. In lieu of holding cash (given its near-zero yield), we instead purchased U.S. Treasuries with final maturities less than one year because we believed they offered more income than cash without significant incremental interest-rate or credit risk.

We expect a gradual rise in short-term interest rates.

The relatively benign domestic economic conditions described above are likely to result in a gradual upward bias toward interest rates. We believe FOMC is likely to raise its target rate by 0.75% to 1.00% over the next 12 months, a result which is largely reflected in the current term structure of interest rates. Should market rates diverge from the policy path we think most likely, we will be prepared to modify our duration and yield-curve posture in response to the opportunities presented.

Please see footnotes on page 5.

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 servicing 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 March 1, 2015 to August 31, 2015.

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 3-1-2015		Ending account value 8-31-2015		Expenses paid during the period¹			Net annualized expense ratio
Class A
Actual	$	1,000.00	$	996.87	$	4.28			0.85	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.92	$	4.33			0.85	%
Class B
Actual	$	1,000.00	$	992.22	$	8.03			1.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.14	$	8.13	��		1.60	%
Class C
Actual	$	1,000.00	$	993.11	$	8.04			1.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.14	$	8.13			1.60	%
Administrator Class
Actual	$	1,000.00	$	997.03	$	3.22			0.64	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.98	$	3.26			0.64	%
Institutional Class
Actual	$	1,000.00	$	998.72	$	2.42			0.48	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.79	$	2.45			0.48	%
Investor Class
Actual	$	1,000.00	$	995.83	$	4.43			0.88	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.77	$	4.48			0.88	%

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—August 31, 2015 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.

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Agency Securities: 66.21%
FHLB		5.63	%		3-14-2036	$	6,150,000	$	8,004,717		0.64	%
FHLMC ¤		0.00			11-20-2015		14,000,000		13,995,548		1.13
FHLMC %%		3.50			9-14-2045		54,565,000		56,424,472		4.54
FHLMC		4.00			6-1-2044		10,836,264		11,498,872		0.93
FHLMC		5.50			7-1-2035		6,551,164		7,331,479		0.59
FHLMC		6.00			5-25-2043		6,335,211		7,158,566		0.58
FHLMC		0.24-10.50			6-1-2016 to 5-25-2045		102,531,506		61,610,892		4.93
FNMA ¤		0.00			11-25-2015		40,000,000		39,986,480		3.22
FNMA		2.63			9-6-2024		16,000,000		16,117,840		1.30
FNMA %%		3.00			9-17-2030		18,235,000		18,915,964		1.52
FNMA %%		3.00			9-14-2045		50,715,000		50,936,878		4.10
FNMA %%		3.50			9-17-2030		23,385,000		24,634,636		1.98
FNMA %%		3.50			9-14-2045		34,805,000		36,067,350		2.90
FNMA %%		4.00			9-14-2045		58,150,000		61,768,483		4.97
FNMA		4.50			1-1-2026		8,705,800		9,051,541		0.73
FNMA %%		4.50			9-14-2045		59,157,000		64,090,670		5.16
FNMA		5.00			8-1-2040		20,600,847		22,821,692		1.84
FNMA		5.30			4-1-2017		6,196,583		6,466,756		0.52
FNMA		5.50			8-1-2033		6,832,846		7,674,115		0.62
FNMA %%		6.00			9-14-2045		15,585,000		17,621,191		1.42
FNMA Series 2002-T19 Class A1		6.50			7-25-2042		5,853,686		6,789,368		0.55
FNMA Series 2006-M2 Class A2F ±		5.26			5-25-2020		5,717,033		6,156,947		0.50
FNMA		0.40-11.00			10-1-2015 to 8-25-2047		125,306,440		135,686,218		10.93
GNMA		3.00			7-20-2045		24,467,529		24,827,343		2.00
GNMA %%		3.50			9-21-2045		36,705,000		38,217,646		3.08
GNMA		4.00			1-20-2045		15,883,314		16,862,400		1.36
GNMA		5.00			7-20-2040		6,731,286		7,481,390		0.60
GNMA Series 2006-32 Class C ±		5.30			11-16-2038		6,692,871		6,958,678		0.56
GNMA Series 2006-68 Class D ±		5.31			12-16-2037		12,520,000		13,532,202		1.09
GNMA		0.02-10.00			7-15-2016 to 5-20-2062		66,177,762		10,370,490		0.81
Other securities									13,862,564		1.11
Total Agency Securities (Cost $806,666,573)									822,923,388		66.21
Municipal Obligations: 0.61%
Texas: 0.61%
San Antonio TX Retama Development Corporation (Miscellaneous Revenue)		10.00			12-15-2020		5,405,000		7,557,271		0.61
Total Municipal Obligations (Cost $6,570,827)									7,557,271		0.61
Non-Agency Mortgage-Backed Securities: 5.80%
Citigroup Commercial Mortgage Trust Series 2006-C4 Class A3 ±		5.97			3-15-2049		8,499,800		8,610,739		0.69
Citigroup Commercial Mortgage Trust Series 2006-C5 Class A4		5.43			10-15-2049		11,280,000		11,603,849		0.93
Citigroup Commercial Mortgage Trust Series 2015-GC27 Class A5		3.14			2-10-2048		6,130,000		6,003,471		0.48

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

10 Wells Fargo Advantage Government Securities Fund Summary portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value		Percent of net assets
Non-Agency Mortgage-Backed Securities (continued)
Morgan Stanley Bank of America Merrill Lynch Trust Series 2015-C23 Class A4		3.72	%		7-15-2050	$	8,500,000	$	8,694,412		0.70	%
NCUA Guaranteed Notes Program Series 2010-C1 Class APT		2.65			10-29-2020		6,222,604		6,247,725		0.50
Other securities									30,883,643		2.50
Total Non-Agency Mortgage-Backed Securities (Cost $73,792,503)									72,043,839		5.80
U.S. Treasury Securities: 54.56%
TIPS		0.38			7-15-2025		39,364,067		38,569,109		3.10
U.S. Treasury Bond		2.75			8-15-2042		16,720,000		16,039,881		1.29
U.S. Treasury Bond		3.00			11-15-2044		5,965,000		5,994,437		0.48
U.S. Treasury Bond		3.00			5-15-2045		17,355,000		17,477,925		1.41
U.S. Treasury Bond ##		4.63			2-15-2040		20,150,000		26,338,246		2.12
U.S. Treasury Bond		7.25			8-15-2022		4,685,000		6,321,944		0.51
U.S. Treasury Note ±##		0.10			1-31-2016		130,990,000		131,007,946		10.54
U.S. Treasury Note		0.25			9-30-2015		8,900,000		8,900,000		0.72
U.S. Treasury Note		0.25			11-30-2015		43,700,000		43,705,681		3.52
U.S. Treasury Note ##		0.25			12-31-2015		110,000,000		110,000,000		8.85
U.S. Treasury Note		0.38			11-15-2015		81,495,000		81,528,983		6.56
U.S. Treasury Note ##		0.38			2-15-2016		97,455,000		97,488,037		7.85
U.S. Treasury Note		1.00			8-31-2016		12,240,000		12,306,463		0.99
U.S. Treasury Note		1.38			2-28-2019		56,455,000		56,679,917		4.56
U.S. Treasury Note		2.13			6-30-2022		15,105,000		15,300,504		1.23
U.S. Treasury Note		6.25			8-15-2023		7,915,000		10,366,798		0.83
Total U.S. Treasury Securities (Cost $671,412,253)									678,025,871		54.56
Yankee Corporate Bonds and Notes: 1.58%
Financials: 1.58%
Banks: 1.58%
Bank of Nova Scotia 144A		1.65			10-29-2015		13,235,000		13,257,102		1.06
Royal Bank of Canada Incorporated		2.00			10-1-2018		6,370,000		6,436,923		0.52
Total Yankee Corporate Bonds and Notes (Cost $19,601,211)									19,694,025		1.58
Yankee Government Bonds: 0.87%
Hashemite Kingdom of Jordan		2.58			6-30-2022		10,630,000		10,775,163		0.87
Total Yankee Government Bonds (Cost $10,630,000)									10,775,163		0.87
	Yield					Shares
Short-Term Investments: 1.61%
Investment Companies: 1.47%
Wells Fargo Advantage Government Money Market Fund, Institutional Class ##(l)(u)		0.01					18,254,235		18,254,235		1.47

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

Summary portfolio of investments—August 31, 2015 Wells Fargo Advantage Government Securities Fund 11

Security name	Yield			Maturity date		Principal			Value			Percent of net assets
U.S. Treasury Securities: 0.14%
U.S. Treasury Bill (z)#		0.01	%		9-17-2015	$	1,775,000		$	1,774,998			0.14	%
Total Short-Term Investments (Cost $20,029,229)										20,029,233			1.61
	Interest rate
TBA Sale Commitments: (0.29%)
FNMA %%		5.50			9-14-2045		(3,250,000	)		(3,635,938	)		(0.29	)
Total TBA Sale Commitments (Proceeds $(3,640,000))										(3,635,938	)		(0.29	)
Total investments in securities (excluding TBA sale commitments) (Cost $1,608,702,596) *										1,631,048,790			131.24	%
Total TBA sale commitments										(3,635,938	)		(0.29	)
Other assets and liabilities, net										(384,634,729	)		(30.95	)
Total net assets									$	1,242,778,123			100.00	%

¤ The security is issued in zero coupon form with no periodic interest payments.

%% Security issued on a when-issued basis

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

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

144A The security may be resold in transactions exempt from registration, normally to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933.

(l) The security represents an affiliate of the Fund as defined in the Investment Company Act of 1940.

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

(z) Zero coupon security. The 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 $1,609,447,026 and unrealized gains (losses) consists of:

Gross unrealized gains	$	28,698,849
Gross unrealized losses		(7,097,085	)
Net unrealized gains	$	21,601,764

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

12 Wells Fargo Advantage Government Securities Fund Statement of assets and liabilities—August 31, 2015

Assets
Investments
In unaffiliated securities, at value (cost $1,590,448,361)	$	1,612,794,555
In affiliated securities, at value (cost $18,254,235)		18,254,235
Total investments, at value (cost $1,608,702,596)		1,631,048,790
Cash		280,344
Receivable for investments sold		3,646,455
Principal paydown receivable		30,883
Receivable for Fund shares sold		508,317
Receivable for interest		3,490,560
Receivable for daily variation margin on open futures contracts		17,219
Prepaid expenses and other assets		41,100
Total assets		1,639,063,668
Liabilities
Dividends payable		46,417
Payable for investments purchased		389,298,941
Payable for Fund shares redeemed		2,168,257
Payable for daily variation margin on open futures contracts		210,375
Payable for interest on TBA sale commitments		6,455
TBA sale commitments, at value (proceeds $3,640,000)		3,635,938
Management fee payable		393,626
Distribution fees payable		17,770
Administration fees payable		134,409
Accrued expenses and other liabilities		373,357
Total liabilities		396,285,545
Total net assets	$	1,242,778,123
NET ASSETS CONSIST OF
Paid-in capital	$	1,232,258,450
Overdistributed net investment income		(12,581,307	)
Accumulated net realized gains on investments		2,398,681
Net unrealized gains on investments		20,702,299
Total net assets	$	1,242,778,123
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	232,545,098
Shares outstanding – Class A1		20,732,992
Net asset value per share – Class A		$11.22
Maximum offering price per share – Class A2		$11.75
Net assets – Class B	$	536,557
Shares outstanding – Class B1		47,847
Net asset value per share – Class B		$11.21
Net assets – Class C	$	26,980,533
Shares outstanding – Class C1		2,405,830
Net asset value per share – Class C		$11.21
Net assets – Administrator Class	$	216,427,836
Shares outstanding – Administrator Class1		19,302,633
Net asset value per share – Administrator Class		$11.21
Net assets – Institutional Class	$	468,858,862
Shares outstanding – Institutional Class1		41,838,729
Net asset value per share – Institutional Class		$11.21
Net assets – Investor Class	$	297,429,237
Shares outstanding – Investor Class1		26,502,195
Net asset value per share – Investor Class		$11.22

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—year ended August 31, 2015 Wells Fargo Advantage Government Securities Fund 13

Investment income
Interest	$	18,556,788
Income from affiliated securities		1,319
Total investment income		18,558,107
Expenses
Management fee		5,444,088
Administration fees
Class A		326,875
Class B		1,278
Class C		47,402
Administrator Class		198,059
Institutional Class		410,092
Investor Class		612,053
Shareholder servicing fees
Class A		510,742
Class B		1,997
Class C		74,066
Administrator Class		480,331
Investor Class		803,763
Distribution fees
Class B		5,990
Class C		222,197
Custody and accounting fees		83,732
Professional fees		76,968
Registration fees		55,947
Shareholder report expenses		90,247
Trustees’ fees and expenses		7,881
Other fees and expenses		40,916
Total expenses		9,494,624
Less: Fee waivers and/or expense reimbursements		(708,485	)
Net expenses		8,786,139
Net investment income		9,771,968
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		15,820,082
Futures transactions		7,340,069
Net realized gains on investments		23,160,151
Net change in unrealized gains (losses) on:
Unaffiliated securities		(6,290,872	)
Futures transactions		(2,117,120	)
TBA sale commitments		4,062
Net change in unrealized gains (losses) on investments		(8,403,930	)
Net realized and unrealized gains (losses) on investments		14,756,221
Net increase in net assets resulting from operations	$	24,528,189

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

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

	Year ended August 31, 2015						Year ended August 31, 2014
Operations
Net investment income				$	9,771,968					$	9,641,392
Net realized gains on investments					23,160,151						26,150,713
Net change in unrealized gains (losses) on investments					(8,403,930	)					23,009,547
Net increase in net assets resulting from operations					24,528,189						58,801,652
Distributions to shareholders from
Net investment income
Class A					(1,703,954	)					(1,872,053	)
Class B					(832	)					(4,542	)
Class C					(28,250	)					(97,114	)
Administrator Class					(2,081,044	)					(2,550,531	)
Institutional Class					(6,227,671	)					(7,287,898	)
Investor Class					(2,626,026	)					(3,734,536	)
Total distributions to shareholders					(12,667,777	)					(15,546,674	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		8,954,742			101,054,999			1,334,647			14,597,639
Class B		1,366			15,353			3,268			35,619
Class C		215,398			2,419,561			104,199			1,140,397
Administrator Class		8,056,276			90,448,540			5,338,839			58,457,305
Institutional Class		10,133,981			113,615,861			11,859,778			129,354,060
Investor Class		4,347,873			48,789,291			3,439,701			37,627,752
					356,343,605						241,212,772
Reinvestment of distributions
Class A		132,277			1,487,481			150,226			1,639,169
Class B		55			612			350			3,778
Class C		971			10,885			3,431			37,019
Administrator Class		178,706			2,007,738			199,621			2,179,413
Institutional Class		527,852			5,927,967			652,963			7,128,143
Investor Class		227,765			2,561,820			333,416			3,639,504
					11,996,503						14,627,026
Payment for shares redeemed
Class A		(3,992,999	)		(44,888,826	)		(4,693,790	)		(51,288,609	)
Class B		(57,706	)		(648,068	)		(109,977	)		(1,201,292	)
Class C		(682,542	)		(7,665,778	)		(1,382,379	)		(15,072,513	)
Administrator Class		(7,982,527	)		(89,380,947	)		(18,024,531	)		(196,102,002	)
Institutional Class		(17,526,446	)		(196,591,403	)		(16,381,291	)		(177,928,722	)
Investor Class		(8,619,296	)		(96,975,184	)		(13,804,746	)		(150,877,755	)
					(436,150,206	)					(592,470,893	)
Net decrease in net assets resulting from capital share transactions					(67,810,098	)					(336,631,095	)
Total decrease in net assets					(55,949,686	)					(293,376,117	)
Net assets
Beginning of period					1,298,727,809						1,592,103,926
End of period				$	1,242,778,123					$	1,298,727,809
Overdistributed net investment income				$	(12,581,307	)				$	(10,750,170	)

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)

	Year ended August 31
CLASS A	2015			2014			2013			2012			2011
Net asset value, beginning of period		$11.11			$10.77			$11.48			$11.23			$11.16
Net investment income		0.07	1		0.05			0.07			0.15			0.25
Net realized and unrealized gains (losses) on investments		0.13			0.40			(0.42	)		0.33			0.16
Total from investment operations		0.20			0.45			(0.35	)		0.48			0.41
Distributions to shareholders from
Net investment income		(0.09	)		(0.11	)		(0.09	)		(0.17	)		(0.34	)
Net realized gains		0.00			0.00			(0.27	)		(0.06	)		0.00
Total distributions to shareholders		(0.09	)		(0.11	)		(0.36	)		(0.23	)		(0.34	)
Net asset value, end of period		$11.22			$11.11			$10.77			$11.48			$11.23
Total return2		1.84	%		4.19	%		(3.22	)%		4.35	%		3.75	%
Ratios to average net assets (annualized)
Gross expenses		0.87	%		0.88	%		0.85	%		0.86	%		0.85	%
Net expenses		0.85	%		0.86	%		0.85	%		0.86	%		0.85	%
Net investment income		0.59	%		0.56	%		0.67	%		1.35	%		2.31	%
Supplemental data
Portfolio turnover rate		349	%		349	%		341	%		327	%		268	%
Net assets, end of period (000s omitted)		$232,545			$173,772			$202,955			$258,329			$270,253

¹  Calculated based upon average shares outstanding

²  Total return calculations do not include any sales charges.

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)

	Year ended August 31
CLASS B	2015			2014			2013			2012			2011
Net asset value, beginning of period		$11.11			$10.77			$11.48			$11.23			$11.16
Net investment income (loss)		(0.01	)1		(0.02	)1		(0.03	)		0.08	1		0.15
Net realized and unrealized gains (losses) on investments		0.12			0.39			(0.41	)		0.31			0.17
Total from investment operations		0.11			0.37			(0.44	)		0.39			0.32
Distributions to shareholders from
Net investment income		(0.01	)		(0.03	)		(0.00	)2		(0.08	)		(0.25	)
Net realized gains		0.00			0.00			(0.27	)		(0.06	)		0.00
Total distributions to shareholders		(0.01	)		(0.03	)		(0.27	)		(0.14	)		(0.25	)
Net asset value, end of period		$11.21			$11.11			$10.77			$11.48			$11.23
Total return3		0.99	%		3.42	%		(3.94	)%		3.57	%		2.98	%
Ratios to average net assets (annualized)
Gross expenses		1.62	%		1.61	%		1.60	%		1.61	%		1.60	%
Net expenses		1.60	%		1.60	%		1.60	%		1.61	%		1.60	%
Net investment income (loss)		(0.10	)%		(0.18	)%		(0.08	)%		0.68	%		1.55	%
Supplemental data
Portfolio turnover rate		349	%		349	%		341	%		327	%		268	%
Net assets, end of period (000s omitted)		$537			$1,157			$2,266			$4,727			$7,083

¹  Calculated based upon average shares outstanding

²  Amount is less than $0.005.

³  Total return calculations do not include any sales charges.

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)

	Year ended August 31
CLASS C	2015			2014			2013			2012			2011
Net asset value, beginning of period		$11.11			$10.77			$11.48			$11.23			$11.16
Net investment income (loss)		(0.01	)1		(0.02	)1		(0.02	)		0.07			0.17
Net realized and unrealized gains (losses) on investments		0.12			0.39			(0.42	)		0.32			0.15
Total from investment operations		0.11			0.37			(0.44	)		0.39			0.32
Distributions to shareholders from
Net investment income		(0.01	)		(0.03	)		(0.00	)2		(0.08	)		(0.25	)
Net realized gains		0.00			0.00			(0.27	)		(0.06	)		0.00
Total distributions to shareholders		(0.01	)		(0.03	)		(0.27	)		(0.14	)		(0.25	)
Net asset value, end of period		$11.21			$11.11			$10.77			$11.48			$11.23
Total return3		1.08	%		3.42	%		(3.94	)%		3.57	%		2.98	%
Ratios to average net assets (annualized)
Gross expenses		1.62	%		1.63	%		1.60	%		1.61	%		1.60	%
Net expenses		1.60	%		1.61	%		1.60	%		1.61	%		1.60	%
Net investment income (loss)		(0.13	)%		(0.20	)%		(0.08	)%		0.55	%		1.56	%
Supplemental data
Portfolio turnover rate		349	%		349	%		341	%		327	%		268	%
Net assets, end of period (000s omitted)		$26,981			$31,908			$44,647			$75,244			$58,576

¹  Calculated based upon average shares outstanding

²  Amount is less than $0.005.

³  Total return calculations do not include any sales charges.

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)

	Year ended August 31
ADMINISTRATOR CLASS	2015			2014			2013			2012			2011
Net asset value, beginning of period		$11.11			$10.76			$11.48			$11.23			$11.16
Net investment income		0.10			0.06			0.09			0.17	1		0.27	1
Net realized and unrealized gains (losses) on investments		0.12			0.42			(0.43	)		0.33			0.16
Total from investment operations		0.22			0.48			(0.34	)		0.50			0.43
Distributions to shareholders from
Net investment income		(0.12	)		(0.13	)		(0.11	)		(0.19	)		(0.36	)
Net realized gains		0.00			0.00			(0.27	)		(0.06	)		0.00
Total distributions to shareholders		(0.12	)		(0.13	)		(0.38	)		(0.25	)		(0.36	)
Net asset value, end of period		$11.21			$11.11			$10.76			$11.48			$11.23
Total return		1.97	%		4.51	%		(3.10	)%		4.57	%		3.97	%
Ratios to average net assets (annualized)
Gross expenses		0.80	%		0.81	%		0.79	%		0.79	%		0.74	%
Net expenses		0.64	%		0.64	%		0.64	%		0.64	%		0.64	%
Net investment income		0.82	%		0.79	%		0.88	%		1.49	%		2.50	%
Supplemental data
Portfolio turnover rate		349	%		349	%		341	%		327	%		268	%
Net assets, end of period (000s omitted)		$216,428			$211,589			$339,446			$436,578			$276,334

¹  Calculated based upon average shares outstanding

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)

	Year ended August 31
INSTITUTIONAL CLASS	2015			2014			2013			2012			2011
Net asset value, beginning of period		$11.10			$10.76			$11.47			$11.22			$11.15
Net investment income		0.11	1		0.10			0.11			0.19	1		0.30
Net realized and unrealized gains (losses) on investments		0.14			0.39			(0.42	)		0.33			0.15
Total from investment operations		0.25			0.49			(0.31	)		0.52			0.45
Distributions to shareholders from
Net investment income		(0.14	)		(0.15	)		(0.13	)		(0.21	)		(0.38	)
Net realized gains		0.00			0.00			(0.27	)		(0.06	)		0.00
Total distributions to shareholders		(0.14	)		(0.15	)		(0.40	)		(0.27	)		(0.38	)
Net asset value, end of period		$11.21			$11.10			$10.76			$11.47			$11.22
Total return		2.22	%		4.59	%		(2.86	)%		4.74	%		4.14	%
Ratios to average net assets (annualized)
Gross expenses		0.54	%		0.55	%		0.52	%		0.53	%		0.52	%
Net expenses		0.48	%		0.48	%		0.48	%		0.48	%		0.48	%
Net investment income		0.99	%		0.94	%		1.05	%		1.71	%		2.71	%
Supplemental data
Portfolio turnover rate		349	%		349	%		341	%		327	%		268	%
Net assets, end of period (000s omitted)		$468,859			$540,684			$565,573			$778,919			$718,411

¹  Calculated based upon average shares outstanding

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)

	Year ended August 31
INVESTOR CLASS	2015			2014			2013			2012			2011
Net asset value, beginning of period		$11.12			$10.77			$11.49			$11.24			$11.17
Net investment income		0.07	1		0.04			0.07			0.15	1		0.25	1
Net realized and unrealized gains (losses) on investments		0.12			0.42			(0.44	)		0.33			0.15
Total from investment operations		0.19			0.46			(0.37	)		0.48			0.40
Distributions to shareholders from
Net investment income		(0.09	)		(0.11	)		(0.08	)		(0.17	)		(0.33	)
Net realized gains		0.00			0.00			(0.27	)		(0.06	)		0.00
Total distributions to shareholders		(0.09	)		(0.11	)		(0.35	)		(0.23	)		(0.33	)
Net asset value, end of period		$11.22			$11.12			$10.77			$11.49			$11.24
Total return		1.72	%		4.25	%		(3.33	)%		4.31	%		3.72	%
Ratios to average net assets (annualized)
Gross expenses		0.90	%		0.90	%		0.87	%		0.89	%		0.88	%
Net expenses		0.88	%		0.89	%		0.87	%		0.89	%		0.88	%
Net investment income		0.59	%		0.53	%		0.65	%		1.33	%		2.25	%
Supplemental data
Portfolio turnover rate		349	%		349	%		341	%		327	%		268	%
Net assets, end of period (000s omitted)		$297,429			$339,618			$437,217			$640,561			$678,022

¹  Calculated based upon average shares outstanding

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

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

Debt securities are valued at the evaluated bid price provided by an independent pricing service or, if a reliable price is not available, the quoted bid price from an independent broker-dealer.

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.

Futures contracts

The Fund is 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.

22 Wells Fargo Advantage Government Securities Fund Notes to financial statements

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.

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.

Inflation-indexed bonds and TIPS

The Fund may invest in inflation-indexed bonds, including Treasury inflation-protected securities (TIPS). Inflation-indexed bonds are fixed income securities whose principal value is periodically adjusted according to the rate of inflation. If the index measuring inflation falls, the principal value of inflation-indexed bonds (other than municipal inflation indexed bonds and certain corporate inflation-indexed bonds) will be adjusted downward, and consequently the interest payable on these securities (calculated with respect to a smaller principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury inflation-indexed bonds. For bonds that do not provide a similar guarantee, the adjusted principal value of the bond repaid at maturity may be less than the original principal. The value of inflation-indexed bonds is expected to change in response to changes in real interest rates. Real interest rates are tied to the relationship between nominal interest rates and the rate of inflation. If nominal interest rates increase at a faster rate than inflation, real interest rates may rise, leading to a decrease in value of inflation-indexed bonds. Inflation-indexed bonds, including TIPS, decline in value when real interest rates rise. In certain interest rate environments, such as when real interest rates are rising faster than nominal interest rates, inflation-indexed bonds may experience greater losses than other fixed income securities with similar durations.

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.

Notes to financial statements Wells Fargo Advantage Government Securities Fund 23

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.

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The primary permanent differences causing such reclassifications are due to certain distributions paid. At August 31, 2015, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Overdistributed net investment income	Accumulated net realized gains  on investments
$1,064,672	$(1,064,672)

As of August 31, 2015, the Fund had capital loss carryforwards available to offset future net realized capital gains in the amount of $1,568,458 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. Class specific expenses are charged directly to that share class. Investment income, common expenses, and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.

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.

24 Wells Fargo Advantage Government Securities Fund Notes to financial statements

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of August 31, 2015:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Agency securities	$	0	$	822,918,553	$	4,835	$	822,923,388
Municipal obligations		0		7,557,271		0		7,557,271
Non-agency mortgage-backed securities		0		72,043,839		0		72,043,839
U.S. Treasury securities		678,025,871		0		0		678,025,871
Yankee corporate bonds and notes		0		19,694,025		0		19,694,025
Yankee government bonds		0		10,775,163		0		10,775,163
Short-term investments
Investment companies		18,254,235		0		0		18,254,235
U.S. Treasury securities		1,774,998		0		0		1,774,998
		698,055,104		932,988,851		4,835		1,631,048,790
Futures contracts		17,219		0		0		17,219
Total assets	$	698,072,323	$	932,988,851	$	4,835	$	1,631,066,009
Liabilities
TBA sale commitments	$	0	$	3,635,938	$	0	$	3,635,938
Futures contracts		210,375		0		0		210,375
Total liabilities	$	210,375	$	3,635,938	$	0	$	3,846,313

Futures contracts are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. All other assets and liabilities are reported at their market value at measurement date.

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At August 31, 2015, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

4. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the applicable subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.45% and declining to 0.33% as the average daily net assets of the Fund increase.

Prior to July 1, 2015, Funds Management provided advisory services pursuant to an investment advisory agreement and was entitled to receive an annual fee which started at 0.40% and declined to 0.30% as the average daily net assets of the Fund increased. In addition, fund-level administrative services were provided by Funds Management under a separate administration agreement at an annual fee which started at 0.05% and declined to 0.03% as the average daily net assets of the Fund increased. For financial statement purposes, the advisory fee and fund-level administration fee for the year ended August 31, 2015 have been included in management fee on the Statement of Operations.

For the year ended August 31, 2015, the management fee was equivalent to an annual rate of 0.43% of the Fund’s average daily net assets.

Notes to financial statements Wells Fargo Advantage Government Securities Fund 25

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 fees

Under a class-level administration agreement, Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Funds Management receives an annual 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 management 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, 2015 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. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

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 (“Funds Distributor”), the principal underwriter, at an annual rate of 0.75% of the average daily net assets of Class B and Class C shares.

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class B and Class C shares. For the year ended August 31, 2015, Funds Distributor received $4,015 from the sale of Class A shares and $20 and $105 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 short-term securities, for the year ended August 31, 2015 were as follows:

Purchases at cost		Sales proceeds
U.S. government	Non-U.S. government	U.S. government	Non-U.S. government
$5,755,003,502	$50,061,331	$5,755,398,241	$10,000,500

26 Wells Fargo Advantage Government Securities Fund Notes to financial statements

6. DERIVATIVE TRANSACTIONS

During the year ended August 31, 2015, the Fund entered into futures contracts to speculate on interest rates and to help manage the duration of the portfolio.

At August 31, 2015, the Fund had long and short futures contracts outstanding as follows:

Expiration date	Counterparty	Contracts	Type	Contract value at August 31, 2015			Unrealized gains (losses)
12-21-2015	JPMorgan	29 Short	U.S. Treasury Bonds	$	(4,484,125	)	$	35,289
12-21-2015	JPMorgan	423 Long	10-Year U.S. Treasury Notes		53,747,438			(671,655	)
12-21-2015	JPMorgan	30 Long	U.S. Treasury Bonds		4,752,188			(24,367	)
12-31-2015	JPMorgan	957 Long	5-Year U.S. Treasury Notes		114,301,688			(913,959	)
12-31-2015	JPMorgan	123 Long	2-Year U.S. Treasury Notes		26,871,656			(73,265	)

The Fund had an average notional amount of $ $193,265,208 and $7,588,023 in long futures contracts and short futures contracts, respectively, during the year ended August 31, 2015.

On August 31 2014, the cumulative unrealized losses on futures contracts in the amount of $1,647,957 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 derivatives. Cash collateral that has been pledged to cover obligations of the Fund under ISDA Master Agreements or similar agreements, 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 Summary 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 of assets
Futures – variation margin	JPMorgan	$17,219	$	(17,219	)	$	0	$	0

Derivative type	Counterparty	Gross amounts of liabilities in the Statement of Assets and Liabilities	Amounts subject to netting agreements			Collateral pledged1		Net amount of liabilities
Futures – variation margin	JPMorgan	$210,375	$	(17,219	)	$	193,156	$	0

¹  Collateral pledged within this table is limited to the collateral for the net transaction with the counterparty.

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 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

Notes to financial statements Wells Fargo Advantage Government Securities Fund 27

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 year ended August 31, 2015, the Fund paid $469 in commitment fees.

For the year ended August 31, 2015, there were no borrowings by the Fund under the agreement.

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended August 31, 2015 and August 31, 2014 were as follows:

	Year ended August 31
	2015		2014
Ordinary income	$	11,607,144	$	15,546,674
Long-term capital gain		1,060,633		0

As of August 31, 2015, the components of distributable earnings on a tax basis were as follows:

Undistributed long-term gain	Unrealized gains	Capital loss carryforward
$3,651,903	$8,507,399	$(1,568,458)

9. INDEMNIFICATION

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

28 Wells Fargo Advantage Government Securities Fund Report of independent registered public accounting firm

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments and the summary portfolio of investments, of the Wells Fargo Advantage Government Securities Fund (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, as of August 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of August 31, 2015, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Advantage Government Securities Fund as of August 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

October 26, 2015

Other information (unaudited) Wells Fargo Advantage Government Securities Fund 29

TAX INFORMATION

Pursuant to Section 852 of the Internal Revenue Code, $1,060,633 was designated as long-term capital gain distributions for the fiscal year ended August 31, 2015.

For the fiscal year ended August 31, 2015, $11,376,285 has been designated as interest-related dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

For the fiscal year ended August 31, 2015, 26.05% of the ordinary income distributed was derived from interest on U.S. government securities.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at 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 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 monthly on the Fund’s website (wellsfargoadvantagefunds.com), on a one-month delayed basis. In addition, top ten holdings information (excluding derivative positions) 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 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 Government Securities Fund Other information (unaudited)

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo Advantage family of funds, which consists of 133 mutual funds 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. 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 or longer	Other public company or investment company directorships during past 5 years
William R. Ebsworth (Born 1957)	Trustee, since 2015**	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director at Fidelity Management and Research Company and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. in Boston, Tokyo, and Hong Kong where he led a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Mr. Ebsworth is a CFA ® charterholder and an Adjunct Lecturer, Finance, at Babson College.	Asset Allocation Trust
Jane A. Freeman (Born 1953)	Trustee, since 2015**	Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is Chair of Taproot Foundation (non-profit organization), a Board Member of Ruth Bancroft Garden (non-profit organization) and an inactive chartered financial analyst.	Asset Allocation Trust; Harding Loevner Funds; Russell Exchange Traded Funds Trust
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. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (charter school). Mr. Harris is a certified public accountant.	CIGNA 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
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

Other information (unaudited) Wells Fargo Advantage Government Securities Fund 31

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Other public company or investment company directorships during past 5 years
Timothy J. Penny (Born 1951)	Trustee, since 1996	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
Michael S. Scofield (Born 1943)	Trustee, since 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 complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust
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.

** William R. Ebsworth and Jane A. Freeman each became a Trustee effective January 1, 2015.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Karla M. Rabusch (Born 1959)	President, since 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.
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. Assistant General Counsel of Wells Fargo Bank, N.A. since 2013 and Vice President and Managing Counsel of Wells Fargo Bank N.A. from 1996 to 2013.
Debra Ann Early (Born 1964)	Chief Compliance Officer, since 2007	Executive Vice President of Wells Fargo Funds Management, LLC since 2014, Senior Vice President and Chief Compliance Officer from 2007 to 2014.
David Berardi (Born 1975)	Assistant Treasurer, since 2009	Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.
Jeremy DePalma1 (Born 1974)	Assistant Treasurer, since 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 and head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.

¹ Nancy Wiser acts as Treasurer of 72 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 61 funds and Assistant Treasurer of 72 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 Government Securities Fund Other information (unaudited)

BOARD CONSIDERATION OF INVESTMENT ADVISORY, INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment advisory and sub-advisory agreements. In this regard, at an in-person meeting held on May 19-20, 2015 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment advisory and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo Advantage Government Securities Fund (the “Fund”): (i) an investment advisory agreement (the “Advisory Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); (ii) an investment management agreement (the “Management Agreement”) with Funds Management; and (iii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the “Sub-Adviser”), an affiliate of Funds Management. The Management Agreement combines the terms of the Advisory Agreement with the terms of the Fund’s Amended and Restated Administration Agreement (the “Administration Agreement”) applicable to Fund-level administrative services. The Advisory Agreement, the Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”

At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in March 2015, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2015. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

After its deliberations, the Board unanimously approved the continuation of the Advisory Agreement for the period from June 1, 2015 through June 30, 2015, approved the Management Agreement for the period from July 1, 2015 through May 31, 2016, and approved the continuation of the Sub-Advisory Agreement for a one-year term through May 31, 2016. The Board also determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.

Nature, extent and quality of services

The Board received and considered various information regarding the nature, extent and quality of services provided to the Fund by Funds Management and the Sub-Adviser under the Advisory Agreements. This information included, among other things, a summary of the background and experience of senior management of Funds Management, and the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund. The Board noted that the services to be provided to the Fund pursuant to the Management Agreement combined the advisory services previously provided to the Fund pursuant to the Fund’s Advisory Agreement with the Fund-level administrative services previously provided to the Fund pursuant to the Fund’s Administration Agreement. The Board received a representation from Funds Management that combining these services would not result in any change to the nature or level of services provided by Funds Management to the Fund.

The Board evaluated the ability of Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory and supervisory personnel. The Board further considered the compliance

Other information (unaudited) Wells Fargo Advantage Government Securities Fund 33

programs and compliance records of Funds Management and the Sub-Adviser. In addition, the Board took into account the full range of services provided to the Fund by Funds Management and its affiliates.

Fund performance and expenses

The Board considered the performance results for the Fund over various time periods ended March 31, 2015. The Board considered these results in comparison to the performance of funds in a universe that was determined by Lipper Inc. (“Lipper”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Lipper is an independent provider of investment company data. The Board received a description of the methodology used by Lipper to select the mutual funds in the performance Universe. The Board noted that the performance of the Fund (Administrator Class) was higher than or equal to the average performance of the Universe for all periods under review. The Board also noted that the performance of the Fund was in range of its benchmark, the Barclays U.S. Aggregate ex Credit Index, for all periods under review.

The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees (which reflect fee waivers, if any, and include advisory, administration and transfer agent fees), custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Lipper to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Lipper to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Lipper reports, the Board noted that the net operating expense ratios of the Fund were lower than the median net operating expense ratios of the expense Groups.

The Board took into account the Fund performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreement and Sub-Advisory Agreement and approve the Management Agreement.

Investment advisory and sub-advisory fee rates

The Board reviewed and considered the contractual investment advisory fee rates that are payable by the Fund to Funds Management for investment advisory services (the “Advisory Agreement Rates”), both on a stand-alone basis and on a combined basis with the Fund’s fund-level and class-level contractual administration fee rates (the “Management Rates”). The Board noted that the Management Rates include transfer agency and sub-transfer agency costs. The Board also noted that the fee rate to be paid by the Fund under the Management Agreement will incorporate the advisory fee and Fund-level administration fee previously payable separately by the Fund under the Fund’s Advisory Agreement and Administration Agreement with Funds Management. The Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Funds Management to the Sub-Adviser for investment sub-advisory services (the “Sub-Advisory Agreement Rates”).

Among other information reviewed by the Board was a comparison of the Management Rates of the Fund with those of other funds in the expense Groups at a common asset level. The Board noted that the Management Rates of the Fund were lower than or equal to the average rates for the Fund’s expense Groups for all share classes.

The Board also received and considered information about the portion of the total advisory fee that was retained by Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Funds Management and not delegated to or assumed by the Sub-Adviser, and about Funds Management’s on-going oversight services. However, given the affiliation between Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of the advisory fee between them.

The Board also received and considered information about the nature and extent of services offered and fee rates charged by Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing mutual funds compared with those associated with managing assets of non-mutual fund clients such as collective funds or institutional separate accounts.

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Funds Management under the Management Agreement and Advisory Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable, in light of the services covered by the Advisory Agreements.

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

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also received and considered information concerning the profitability of the Sub-Adviser from providing services to the fund family as a whole, noting that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo profitability analysis.

Funds Management reported on the methodologies and estimates used in calculating profitability. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size and type of fund. Based on its review, the Board did not deem the profits reported by Funds Management or Wells Fargo from its services to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.

Economies of scale

With respect to possible economies of scale, the Board noted the existence of breakpoints in the Fund’s advisory and management fee structures, and the Fund’s administration fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered that fee waiver and expense reimbursement arrangements and competitive fee rates at the outset are means of sharing potential economies of scale with shareholders of the Fund and the fund family as a whole. The Board considered Funds Management’s view that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments that Funds Management incurs across the fund family as a whole.

The Board concluded that the Fund’s fee and expense arrangements, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.

Other benefits to Funds Management and the Sub-Adviser

The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that various affiliates of Funds Management may receive distribution-related fees, shareholder servicing payments and sub-transfer agency fees in respect of shares sold or held through them and services provided.

The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser, fees earned by Funds Management and the Sub-Adviser from managing a private investment vehicle for the fund family’s securities lending collateral and commissions earned by an affiliated broker from portfolio transactions.

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory Agreement for the period from June 1, 2015 through June 30, 2015, approved the Management Agreement for the period from July 1, 2015 through May 31, 2016, and approved the continuation of the Sub-Advisory Agreement for a one-year term through May 31, 2016. The Board also determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable.

List of abbreviations Wells Fargo Advantage Government Securities 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 —  Colombian 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

LIFER —  Long Inverse Floating Exempt Receipts

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

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —   Short Puttable Exempt Adjustable 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. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at wellsfargoadvantagefunds.com. 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, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

© 2015 Wells Fargo Funds Management, LLC. All rights reserved.

236802 10-15 A216/AR216 08-15

Wells Fargo Advantage High Income Fund

Annual Report

August 31, 2015

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	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
Report of independent registered public accounting firm	32
Other information	33
List of abbreviations	39

The views expressed and any forward-looking statements are as of August 31, 2015, 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

Major central banks continued to inject liquidity into global banks and markets through various accommodative monetary policies, including quantitative easing.

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Advantage High Income Fund for the 12-month period that ended August 31, 2015. The period was marked by low interest rates, low oil prices, and moderate U.S. economic growth. Short-term investment-grade bonds, as measured by the Barclays U.S. 1-3 Year Government/Credit Bond Index,¹ returned 0.81% during the period. Meanwhile, strong demand for high-quality, liquid assets kept returns on Treasury bills more modest; the Barclays 6-Month Treasury Bill Index² returned 0.15% during the period.

Major central banks continued to provide stimulus.

Major central banks continued to inject liquidity into global banks and markets through various accommodative monetary policies, including quantitative easing. In the U.S., the Federal Reserve (Fed) kept its key interest rate near zero in order to support the economy and the financial system. However, it set expectations for it to begin normalizing monetary policy with higher target ranges for the federal funds rate.

Meanwhile, European markets continued to benefit from the European Central Bank’s (ECB’s) willingness to maintain low interest rates. In addition to its targeted longer-term refinancing operations that are designed to increase bank lending, the ECB expanded its quantitative easing program to include the purchase of eurozone government bonds. In Japan, the Bank of Japan maintained an aggressive monetary program aimed at combating deflation.

Economic growth was moderate, and oil prices plummeted.

U.S. economic growth advanced during the reporting period, the unemployment rate ticked lower to 5.1% as of August 2015, and inflation remained below the Fed’s longer-run objective of a 2% pace. The period was also marked by lower oil prices, which began the reporting period near $90 per barrel but declined to $46 per barrel at the end of August 2015. While lower oil prices benefited consumers of oil products, the lower prices pressured companies within the energy sector.

Bond yields rose but remained low by historical standards.

Short-term interest rates increased during the reporting period, with a flattening in the shape of the short-term yield curve. During this time frame, 1-year Treasury bills rose 29 basis points (bps; 100 bps equals 1.00%) to yield 0.38%, 2-year Treasury note yields rose 21 bps to yield 0.74%, and 3-year Treasury note yields rose only 8 bps to yield 1.05%. Meanwhile, ultra-short-term yields were little changed at ultralow levels, anchored by the easy monetary policy.

Since the end of the financial crisis, structural changes in the fixed-income markets have reduced trading liquidity (the degree to which assets can be bought or sold without affecting the price). New regulations and capital requirements have caused traditional liquidity suppliers (banks and broker/dealers) to be more risk-averse and hold less inventory. Meanwhile, corporate-debt issuance has spiked as companies finance themselves at record-low yields, bond mutual funds hold larger amounts of this new debt supply, trading volumes are lower, and large-size trades are more difficult to execute. However, fixed-income markets appear to have functioned well over the past year with sufficient liquidity and muted volatility.

¹  The Barclays U.S. 1–3 Year Government/Credit Bond Index is the one- to three-year component of the Barclays U.S. Government/Credit Bond Index that includes securities in the Government and Credit Indexes. 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.

²  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.

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

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

Periods of 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 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 in Wells Fargo Advantage Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.

Sincerely,

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Periods of 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.

Notice to shareholders

At a meeting held on August 11–12, 2015, the Board of Trustees of the Fund approved a change in the name of the Fund whereby the word “Advantage” will be removed from its name, effective December 15, 2015.

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.

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

Investment objective

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

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Kevin J. Maas, CFA

Thomas M. Price, CFA

Michael J. Schueller, CFA

Average annual total returns¹ (%) as of August 31, 2015

		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		(9.27	)		4.60		5.26		(5.00	)		5.57		5.75		1.01		0.91
Class B (WFNBX)*	7-18-2008		(10.71	)		4.48		5.20		(5.71	)		4.81		5.20		1.76		1.66
Class C (WFNCX)	7-18-2008		(6.71	)		4.78		4.97		(5.71	)		4.78		4.97		1.76		1.66
Administrator Class (WFNDX)	7-30-2010		–			–		–		(4.81	)		5.71		5.88		0.95		0.81
Institutional Class (SHYYX)	7-31-2001		–			–		–		(4.52	)		6.02		6.20		0.68		0.51
Investor Class (STHYX)	12-28-1995		–			–		–		(4.99	)		5.57		5.74		1.04		0.94
Barclays U.S. Corporate High Yield Bond Index4	–		–			–		–		(2.93	)		7.34		7.43		–		–

* 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 a contingent deferred 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. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the Fund and its share price can be sudden and unpredictable. 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 5.

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

Growth of $10,000 investment⁵ as of August 31, 2015

¹  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. 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.

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 manager has contractually committed through December 31, 2015, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver at 0.93% for Class A, 1.68% for Class B, 1.68% for Class C, 0.80% for Administrator Class, 0.50% for Institutional Class, and 0.93% for Investor Class. Effective January 1, 2016, the manager has contractually committed through December 31, 2016, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver at 0.83% for Administrator Class and 0.53% for Institutional Class, respectively. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. 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 chart compares the performance of Class A shares for the most recent 10 years with the performance of the Barclays U.S. Corporate High Yield Bond Index. The chart assumes a hypothetical investment of $10,000 in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 4.50%.

⁶  The ten largest holdings, excluding cash and cash equivalents, are calculated based on the value of the investments 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 distribution 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 distribution is subject to change and may have changed since the date specified.

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

MANAGER’S DISCUSSION

Fund highlights

n The Fund underperformed its benchmark, the Barclays U.S. Corporate High Yield Bond Index, for the 12-month period that ended August 31, 2015.

n The Fund underperformed its benchmark because of its exposure to the energy sector. Other sectors that detracted included media/entertainment, technology, cable/satellite, and wireless.

n The Fund ended the period with a below-benchmark weighting in CCC-rated bonds, which proved beneficial because such bonds underperformed.

Declining commodity prices drove weakness in the high-yield market, and the Fund’s energy exposure hampered its relative returns.

Despite modest growth in the U.S. economy and low default rates, the Barclays U.S. Corporate High Yield Bond Index lost 2.93% for the period due to weakness in commodity prices. For example, the high-yield energy sector lost 19.86% while the metals and mining sector lost 19.50%. Most other sectors posted slightly positive returns for the 12 months.

Ten largest holdings6 (%) as of August 31, 2015
Sprint Corporation, 7.88%, 9-15-2023	1.99
Valeant Pharmaceuticals International Incorporated, 6.13%, 4-15-2025	1.71
Tenet Healthcare Corporation, 6.75%, 6-15-2023	1.22
American Axle Manufacturing Incorporated, 6.63%, 10-15-2022	1.21
HCA Incorporated, 4.75%, 5-1-2023	1.20
Clear Channel Worldwide Holdings Incorporated, 6.50, 11-15-2022	1.19
Crown Castle Operating Company, 3.00%, 1-31-2021	1.16
Kindred Healthcare Incorporated, 8.75%, 1-15-2023	1.06
Sabine Pass Liquefaction LLC, 5.63%, 2-1-2021	1.05
Casella Waste Systems Incorporated, 7.75%, 2-15-2019	1.00

Entering the reporting period, we expected returns primarily would be driven by income because the average price on high-yield bonds was well above par (and not far from all-time highs), leaving minimal room for price appreciation, in our opinion, especially if U.S. Treasury rates rose. We did not expect significant depreciation because we believed that most companies were appropriately capitalized for prevailing economic conditions. Although oil prices had declined in July and August of 2014, they began the period in the $90–$110 range that had been in place since January 2013. We were not expecting the precipitous drop in oil that occurred in the fourth quarter of 2014 and drove meaningful bond price declines in the energy sector. The decline was driven by the combination of continued high oil supply and unexpectedly weak demand. The Fund entered the period with an overweight to the energy sector, but we reduced the position in the fourth quarter of 2014. By the end of the reporting period, the Fund had an underweight to energy.

The other sector that significantly underperformed was metals and mining, largely because of the secular decline in the coal industry. The Fund’s underweight allocation to metals and mining was its largest contributor relative to the benchmark.

Looking at other sectors, detractors included the Fund’s exposure to media/entertainment, technology, cable/satellite, and wireless. Sector contributors included health care, consumer products, and retailers.

Credit quality⁷ as of August 31, 2015

The Fund was positioned with an underweight to CCC-rated credits and below-benchmark interest-rate sensitivity.

In a period marked by moderate economic growth and modestly lower Treasury rates, higher-quality high-yield bonds outperformed. Although the Barclays U.S. Corporate High Yield Bond Index returned -2.93% for the 12-month period, higher-quality BB-rated credits returned 0.18%, medium-quality B-rated credits lost 3.20%, and lower-rated CCC-rated credits lost 8.73%.

Please see footnotes on page 5.

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

Throughout the period, we remained disciplined in our security selection. Although credit fundamentals were solid and we expected default rates to remain below average during the period, we reduced the Fund’s exposure to CCC-rated bonds in 2015 because we did not believe the additional yield was fairly compensating investors for the incremental credit risk and the potential for price declines. CCC-rated bonds underperformed over the period, and this positioning benefited the Fund’s relative performance.

However, given that we expect the economy to grow modestly and the default rate to remain low outside the commodity sectors, we kept the Fund slightly overweight to B-rated securities in order to generate income for the portfolio. We also kept the Fund’s interest-rate sensitivity (duration) below that of the benchmark in an effort to protect against possibly higher interest rates. Although this positioning detracted during the reporting period, we remain comfortable with the Fund’s relatively shorter duration as we seek to protect against a possible increase in Treasury rates. We continued to hold approximately 6% of the portfolio in leveraged loans to generate income; the loan exposure also helped reduce the Fund’s duration. Finally, with lower secondary liquidity in the high-yield market due to regulations enacted after the financial crisis, we maintained a cash position slightly higher than we did historically.

Will the high-yield weakness continue?

After an extended period of strong returns after the financial crisis, the high-yield market weakened from June 2014 through the end of the reporting period. The commodity sectors were the primary drivers of the weakness, but many of the factors that contributed to high-yield strength are expected to continue: moderate economic growth, low default rates outside of the commodity sectors, corporate earnings growth, and generally prudent balance sheet management. However, easy monetary policy may have been the largest contributor to high-yield performance, and that will likely end; many investors expect the U.S. Federal Reserve (Fed) to begin raising short-term rates in late 2015. Our view is that any Fed moves will be gradual and dependent on economic and market conditions.

Volatility may continue in the commodity sectors due to concerns about China’s economic growth and OPEC decisions. However, outside of commodities, we believe that spreads (or the yield of high-yield bonds relative to comparable Treasuries) are wider than would be expected given the U.S. economic outlook and projected lower-than-average default rates. We therefore believe that high-yield bond spreads are likely to tighten over the next 12 months.

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 servicing 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 March 1, 2015 to August 31, 2015.

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 3-1-2015		Ending account value 8-31-2015		Expenses paid during the period¹		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	969.62	$	4.47		0.90	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.67	$	4.58		0.90	%
Class B
Actual	$	1,000.00	$	965.94	$	8.18		1.65	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.89	$	8.39		1.65	%
Class C
Actual	$	1,000.00	$	965.96	$	8.18		1.65	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.89	$	8.39		1.65	%
Administrator Class
Actual	$	1,000.00	$	970.65	$	3.97		0.80	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.17	$	4.08		0.80	%
Institutional Class
Actual	$	1,000.00	$	972.12	$	2.49		0.50	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.68	$	2.55		0.50	%
Investor Class
Actual	$	1,000.00	$	969.70	$	4.62		0.93	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.52	$	4.74		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—August 31, 2015 Wells Fargo Advantage High Income Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Corporate Bonds and Notes: 74.27%
Consumer Discretionary: 18.02%
Auto Components: 3.65%
American Axle Manufacturing Incorporated		6.63	%		10-15-2022	$	5,000,000	$	5,100,000
Goodyear Tire & Rubber Company		6.50			3-1-2021		4,000,000		4,234,000
Lear Corporation		5.25			1-15-2025		2,500,000		2,487,500
ZF North America Capital Incorporated 144A		4.00			4-29-2020		675,000		674,899
ZF North America Capital Incorporated 144A		4.50			4-29-2022		3,000,000		2,913,750
									15,410,149
Diversified Consumer Services: 0.92%
Ashtead Capital Incorporated 144A		5.63			10-1-2024		3,935,000		3,907,967
Hotels, Restaurants & Leisure: 1.58%
MGM Resorts International Company		6.63			12-15-2021		2,000,000		2,125,000
MGM Resorts International Company		8.63			2-1-2019		1,000,000		1,117,200
Tunica-Biloxi Gaming Authority 144A(i)(s)		9.00			11-15-2015		6,260,000		3,443,000
									6,685,200
Household Durables: 2.65%
Beazer Homes USA Company		7.25			2-1-2023		3,000,000		2,872,500
KB Home		7.50			9-15-2022		3,000,000		3,090,000
Lennar Corporation		4.75			5-30-2025		2,500,000		2,425,000
Standard Pacific Corporation		8.38			1-15-2021		2,400,000		2,820,000
									11,207,500
Media: 6.76%
CCO Holdings LLC		6.50			4-30-2021		3,000,000		3,135,600
CCO Holdings LLC		6.63			1-31-2022		2,000,000		2,105,000
Clear Channel Communications Incorporated «		10.00			1-15-2018		3,000,000		2,178,750
Clear Channel Communications Incorporated (PIK at 14.00%) ¥		14.00			2-1-2021		2,081,208		1,181,086
Clear Channel Worldwide Holdings Incorporated		6.50			11-15-2022		5,000,000		5,052,500
Cumulus Media Holdings Incorporated «		7.75			5-1-2019		2,400,000		1,992,000
DISH DBS Corporation		5.88			7-15-2022		3,000,000		2,836,890
Gannett Company Incorporated 144A		5.50			9-15-2024		885,000		876,150
iHeartCommunications Incorporated		9.00			3-1-2021		2,000,000		1,760,000
Nielsen Finance LLC 144A		5.00			4-15-2022		500,000		493,121
Sinclair Television Group Incorporated 144A		5.63			8-1-2024		3,000,000		2,853,750
Sirius XM Radio Incorporated 144A		5.75			8-1-2021		2,000,000		2,070,000
Sirius XM Radio Incorporated 144A		6.00			7-15-2024		2,000,000		2,060,000
									28,594,847
Specialty Retail: 2.22%
L Brands Incorporated		6.63			4-1-2021		2,000,000		2,250,000
Neiman Marcus Group Limited 144A		8.00			10-15-2021		3,500,000		3,696,875
Outerwall Incorporated		5.88			6-15-2021		1,000,000		945,000
Sally Beauty Holdings Incorporated		5.75			6-1-2022		2,400,000		2,496,000
									9,387,875

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

10 Wells Fargo Advantage High Income Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Textiles, Apparel & Luxury Goods: 0.24%
JC Penney Corporation Incorporated		8.13	%		10-1-2019	$	1,000,000	$	1,015,000
Consumer Staples: 3.39%
Food Products: 2.66%
Dean Foods Company 144A		6.50			3-15-2023		2,000,000		2,020,000
JBS USA LLC/JBS USA Finance Incorporated 144A		5.88			7-15-2024		3,500,000		3,486,875
Post Holdings Incorporated 144A		6.75			12-1-2021		3,000,000		3,018,750
TreeHouse Foods Incorporated		4.88			3-15-2022		2,730,000		2,709,525
									11,235,150
Household Products: 0.73%
Spectrum Brands Incorporated 144A		5.75			7-15-2025		3,000,000		3,090,000
Energy: 10.21%
Energy Equipment & Services: 2.11%
EP Energy LLC & Everest Acquisition Finance Incorporated «		6.38			6-15-2023		1,000,000		850,000
EP Energy LLC & Everest Acquisition Finance Incorporated		9.38			5-1-2020		2,000,000		1,937,000
Gulfmark Offshore Incorporated «		6.38			3-15-2022		2,000,000		1,280,000
Key Energy Services Incorporated		6.75			3-1-2021		2,000,000		840,000
SESI LLC		7.13			12-15-2021		4,000,000		3,990,640
									8,897,640
Oil, Gas & Consumable Fuels: 8.10%
California Resources Corporation «		6.00			11-15-2024		2,000,000		1,510,000
Carrizo Oil & Gas Incorporated		6.25			4-15-2023		2,000,000		1,800,000
Chesapeake Energy Corporation		4.88			4-15-2022		2,000,000		1,450,000
Chesapeake Energy Corporation		6.63			11-15-2019		3,100,000		2,046,000
Concho Resources Incorporated		5.50			4-1-2023		2,000,000		1,975,000
Crestwood Midstream Partners LP		6.13			3-1-2022		2,500,000		2,275,000
Energy XXI Gulf Coast Incorporated 144A		11.00			3-15-2020		3,000,000		1,845,000
Halcon Resources Corporation		8.88			5-15-2021		2,000,000		720,000
Midstates Petroleum Incorporated LLC		10.75			10-1-2020		1,000,000		290,000
Newfield Exploration Company		5.38			1-1-2026		2,065,000		1,935,938
Oasis Petroleum Incorporated		6.88			1-15-2023		4,000,000		3,200,000
Penn Virginia Corporation		8.50			5-1-2020		3,000,000		780,000
Sabine Pass Liquefaction LLC		5.63			2-1-2021		4,500,000		4,432,500
Targa Resources Partners Incorporated		6.88			2-1-2021		4,000,000		4,000,000
Tesoro Logistics LP Corporation		6.13			10-15-2021		3,500,000		3,508,750
Transocean Incorporated «		6.88			12-15-2021		2,000,000		1,595,000
Whiting Petroleum Corp Company		6.25			4-1-2023		1,000,000		902,500
									34,265,688
Financials: 6.48%
Banks: 1.19%
Bank of America Corporation ±		6.10			12-29-2049		3,000,000		2,928,750
CIT Group Incorporated		5.25			3-15-2018		2,000,000		2,077,500
									5,006,250

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

Portfolio of investments—August 31, 2015 Wells Fargo Advantage High Income Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Capital Markets: 1.40%
Goldman Sachs Group Incorporated ±		5.38	%		12-29-2049	$	3,000,000	$	2,940,000
Morgan Stanley ±		5.55			12-29-2049		3,000,000		2,996,250
									5,936,250
Consumer Finance: 1.56%
Ally Financial Incorporated		4.13			2-13-2022		2,000,000		1,955,000
Navient Corporation		5.88			10-25-2024		3,000,000		2,535,000
SLM Corporation		5.50			1-25-2023		2,500,000		2,106,250
									6,596,250
Diversified Financial Services: 1.57%
Alphabet Holdings Company Incorporated (PIK at 8.50%) ¥		7.75			11-1-2017		3,500,000		3,491,250
Argos Merger Incorporated 144A		7.13			3-15-2023		3,000,000		3,142,500
									6,633,750
Insurance: 0.76%
Genworth Holdings Incorporated		4.80			2-15-2024		4,000,000		3,220,000
Health Care: 8.99%
Health Care Equipment & Supplies: 0.47%
DJO Finco Incorporated 144A		8.13			6-15-2021		1,000,000		1,034,500
Universal Hospital Services Incorporated		7.63			8-15-2020		1,000,000		970,000
									2,004,500
Health Care Providers & Services: 7.66%
Community Health Systems Incorporated		8.00			11-15-2019		4,000,000		4,180,000
DaVita HealthCare Partners Incorporated		5.00			5-1-2025		3,000,000		2,940,000
Hanger Orthopedic Group		7.13			11-15-2018		4,000,000		3,960,000
HCA Incorporated		4.75			5-1-2023		5,000,000		5,068,700
HealthSouth Corporation		5.75			11-1-2024		3,000,000		3,041,700
Kindred Healthcare Incorporated 144A		8.75			1-15-2023		4,000,000		4,480,000
Select Medical Corporation		6.38			6-1-2021		3,500,000		3,552,500
Tenet Healthcare Corporation		6.75			6-15-2023		5,000,000		5,150,000
									32,372,900
Pharmaceuticals: 0.86%
Endo Finance LLC 144A		6.00			7-15-2023		3,500,000		3,640,000
Industrials: 10.28%
Aerospace & Defense: 1.83%
DigitalGlobe Incorporated 144A		5.25			2-1-2021		4,000,000		3,840,000
TransDigm Group Incorporated		6.50			7-15-2024		4,000,000		3,910,000
									7,750,000
Airlines: 0.67%
United Continental Holdings Incorporated		6.00			12-1-2020		2,700,000		2,818,125

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

12 Wells Fargo Advantage High Income Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Building Products: 0.71%
USG Corporation 144A		5.50	%		3-1-2025	$	3,000,000	$	2,985,000
Commercial Services & Supplies: 2.28%
ADT Corporation «		6.25			10-15-2021		2,500,000		2,581,250
Casella Waste Systems Incorporated		7.75			2-15-2019		4,250,000		4,239,375
West Corporation 144A		5.38			7-15-2022		3,000,000		2,820,000
									9,640,625
Machinery: 2.35%
Manitowoc Company Incorporated		8.50			11-1-2020		4,000,000		4,192,500
Navistar International Corporation		8.25			11-1-2021		4,000,000		3,490,000
Terex Corporation		6.00			5-15-2021		2,250,000		2,272,500
									9,955,000
Road & Rail: 0.90%
The Hertz Corporation		5.88			10-15-2020		2,750,000		2,778,490
The Hertz Corporation		6.25			10-15-2022		1,000,000		1,017,500
									3,795,990
Trading Companies & Distributors: 1.54%
Aircastle Limited		5.50			2-15-2022		2,500,000		2,587,500
United Rentals North America Incorporated		5.75			11-15-2024		4,000,000		3,940,000
									6,527,500
Information Technology: 2.40%
Communications Equipment: 0.23%
CommScope Technologies Finance LLC 144A		6.00			6-15-2025		1,000,000		972,500
Internet Software & Services: 0.11%
Infor US Incorporated 144A		6.50			5-15-2022		500,000		468,750
IT Services: 2.06%
First Data Corporation		10.63			6-15-2021		1,950,000		2,157,188
First Data Corporation 144A		8.75			1-15-2022		3,000,000		3,157,500
Neustar Incorporated «		4.50			1-15-2023		4,000,000		3,400,000
									8,714,688
Materials: 5.32%
Chemicals: 1.85%
Huntsman International LLC		4.88			11-15-2020		4,000,000		3,920,000
Tronox Finance LLC		6.38			8-15-2020		1,000,000		820,000
W.R. Grace & Company 144A		5.63			10-1-2024		3,000,000		3,093,750
									7,833,750
Containers & Packaging: 1.18%
Crown Americas Capital Corporation lV		4.50			1-15-2023		3,000,000		2,936,250
Owens-Brockway Glass Container Incorporated 144A		5.88			8-15-2023		2,000,000		2,035,000
									4,971,250

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

Portfolio of investments—August 31, 2015 Wells Fargo Advantage High Income Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Metals & Mining: 2.29%
AK Steel Corporation		7.63	%		5-15-2020	$	1,000,000	$	655,000
AK Steel Corporation		8.38			4-1-2022		2,840,000		1,789,200
Steel Dynamics Incorporated		5.50			10-1-2024		4,250,000		4,127,812
United States Steel Corporation «		6.88			4-1-2021		3,500,000		3,115,000
									9,687,012
Telecommunication Services: 6.13%
Diversified Telecommunication Services: 2.01%
CenturyLink Incorporated		5.63			4-1-2020		3,000,000		2,996,250
Cincinnati Bell Incorporated		8.38			10-15-2020		3,000,000		3,135,000
Frontier Communications Corporation		6.25			9-15-2021		2,615,000		2,386,188
									8,517,438
Wireless Telecommunication Services: 4.12%
Sprint Capital Corporation		6.90			5-1-2019		3,000,000		3,041,250
Sprint Corporation		7.88			9-15-2023		8,750,000		8,410,938
T-Mobile USA Incorporated		6.25			4-1-2021		3,000,000		3,098,400
T-Mobile USA Incorporated		6.38			3-1-2025		2,000,000		2,040,000
Windstream Services LLC		7.75			10-1-2021		1,000,000		815,010
									17,405,598
Utilities: 3.05%
Independent Power & Renewable Electricity Producers: 3.05%
Calpine Corporation		5.38			1-15-2023		1,500,000		1,447,050
Dynergy Incorporated		5.88			6-1-2023		3,000,000		2,865,000
NRG Energy Incorporated		6.63			3-15-2023		3,500,000		3,438,750
TerraForm Power Operating LLC 144A		5.88			2-1-2023		1,500,000		1,425,000
The AES Corporation		5.50			3-15-2024		3,910,000		3,734,050
									12,909,850
Total Corporate Bonds and Notes (Cost $334,921,408)									314,059,992
Loans: 6.09%
Consumer Discretionary: 0.91%
Hotels, Restaurants & Leisure: 0.91%
Aramark Corporation ±		3.25			9-7-2019		3,880,000		3,864,480
Financials: 1.87%
Diversified Financial Services: 0.71%
Delos Finance SARL ±		3.50			3-6-2021		3,000,000		2,994,750
REITs: 1.16%
Crown Castle Operating Company ±		3.00			1-31-2021		4,925,000		4,903,724
Industrials: 0.82%
Commercial Services & Supplies: 0.82%
ServiceMaster Company ±		4.25			7-1-2021		3,473,750		3,453,915

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

14 Wells Fargo Advantage High Income Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Information Technology: 1.57%
Internet Software & Services: 0.75%
Zayo Group LLC ±		3.75	%		5-6-2021	$	3,201,404	$	3,180,883
Semiconductors & Semiconductor Equipment: 0.82%
Freescale Semiconductor Incorporated ±		4.25			3-1-2020		3,447,500		3,442,122
Telecommunication Services: 0.92%
Wireless Telecommunication Services: 0.92%
SBA Communications Corporation ±		3.25			3-24-2021		3,960,000		3,914,817
Total Loans (Cost $25,886,846)									25,754,691
Municipal Obligations: 1.78%
Alabama: 0.42%
Jefferson County AL Taxable Warrants Series D (GO Revenue)		4.90			4-1-2017		1,750,000		1,773,345
Florida: 0.72%
Florida Development Financial Corporation Renaissance Charter School Project Series B (Education Revenue)		7.50			6-15-2018		1,015,000		1,017,091
Florida Development Financial Corporation Renaissance Charter School Project Series B (Education Revenue)		8.00			12-15-2018		1,965,000		2,009,409
									3,026,500
Illinois: 0.64%
Chicago IL Build America Bonds Direct Payment Project Series 2010B (GO Revenue)		7.52			1-1-2040		2,855,000		2,714,877
Total Municipal Obligations (Cost $7,640,126)									7,514,722
Yankee Corporate Bonds and Notes: 12.11%
Consumer Discretionary:2.56%
Automobiles: 0.70%
Fiat Chrysler Automobiles		5.25			4-15-2023		3,000,000		2,966,250
Hotels, Restaurants & Leisure: 0.67%
International Game Technology 144A		6.50			2-15-2025		3,000,000		2,842,500
Media: 1.19%
Altice SA 144A		7.75			5-15-2022		1,000,000	��	975,000
Quebecor Media Incorporated		5.75			1-15-2023		4,000,000		4,039,000
									5,014,000
Financials: 2.67%
Banks: 0.95%
Royal Bank of Scotland Group plc		5.13			5-28-2024		4,000,000		4,033,324

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

Portfolio of investments—August 31, 2015 Wells Fargo Advantage High Income Fund 15

Security name	Interest rate			Maturity date		Principal		Value
Diversified Financial Services: 1.72%
AerCap Ireland Capital Limited		5.00	%		10-1-2021	$	3,500,000	$	3,622,500
Schaeffler Finance BV 144A		4.75			5-15-2023		2,670,000		2,569,875
Schaeffler Holding Finance BV 144A		6.75			11-15-2022		1,000,000		1,067,500
									7,259,875
Health Care: 1.70%
Pharmaceuticals: 1.70%
Valeant Pharmaceuticals International Incorporated 144A		6.13			4-15-2025		7,000,000		7,210,000
Industrials: 0.36%
Aerospace & Defense: 0.36%
Bombardier Incorporated 144A		7.50			3-15-2025		2,000,000		1,505,000
Information Technology: 0.62%
Semiconductors & Semiconductor Equipment: 0.62%
NXP Funding LLC 144A		5.75			2-15-2021		2,500,000		2,609,375
Materials: 2.35%
Containers & Packaging: 0.91%
Ardagh Holdings USA Incorporated 144A		6.75			1-31-2021		3,750,000		3,825,000
Metals & Mining: 0.47%
ArcelorMittal SA		7.00			2-25-2022		2,000,000		1,995,000
Paper & Forest Products: 0.97%
Sappi Papier Holding GmbH 144A		6.63			4-15-2021		4,000,000		4,100,000
Telecommunication Services: 1.85%
Diversified Telecommunication Services: 1.85%
Intelsat Luxembourg SA		7.75			6-1-2021		5,000,000		3,746,250
Virgin Media Finance plc 144A		5.75			1-15-2025		1,500,000		1,506,563
Virgin Media Finance plc 144A		6.00			10-15-2024		500,000		513,125
Virgin Media Finance plc 144A		6.38			4-15-2023		2,000,000		2,078,740
									7,844,678
Total Yankee Corporate Bonds and Notes (Cost $53,419,282)									51,205,002
	Yield					Shares
Short-Term Investments: 5.94%
Investment Companies: 5.75%
Securities Lending Cash Investments, LLC (l)(r)(u)		0.15					15,766,988		15,766,988
Wells Fargo Advantage Cash Investment Money Market Fund, Select Class (l)(u)		0.15					8,550,902		8,550,902
									24,317,890

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

16 Wells Fargo Advantage High Income Fund Portfolio of investments—August 31, 2015

Security name	Yield			Maturity date		Principal		Value
U.S. Treasury Securities: 0.19%
U.S. Treasury Bill (z)#		0.01	%		9-17-2015	$	800,000	$	799,999
Total Short-Term Investments (Cost $25,117,888)									25,117,889

Total investments in securities (Cost $446,985,550) *	100.19	%		423,652,296
Other assets and liabilities, net	(0.19	)		(794,695	)
Total net assets	100.00	%	$	422,857,601

144A The security may be resold in transactions exempt from registration, normally to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933.

(i) Illiquid security for which the designation as illiquid is unaudited.

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

« 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.

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

(l) The security represents an affiliate of the Fund as defined in the Investment Company Act of 1940.

(r) The investment is a non-registered investment vehicle purchased with cash collateral received from securities on loan.

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

(z) Zero coupon security. The 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 $447,000,740 and unrealized gains (losses) consists of:

Gross unrealized gains	$	4,062,202
Gross unrealized losses		(27,410,646	)
Net unrealized losses	$	(23,348,444	)

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

Statement of assets and liabilities—August 31, 2015 Wells Fargo Advantage High Income Fund 17

Assets
Investments
In unaffiliated securities (including $15,394,388 of securities loaned), at value (cost $422,667,660)	$	399,334,406
In affiliated securities, at value (cost $24,317,890)		24,317,890
Total investments, at value (cost $446,985,550)		423,652,296
Receivable for investments sold		13,506,688
Receivable for Fund shares sold		340,655
Receivable for interest		7,272,829
Receivable for daily variation margin on open futures contracts		26,500
Receivable for securities lending income		17,470
Prepaid expenses and other assets		43,246
Total assets		444,859,684
Liabilities
Dividends payable		442,671
Payable for Fund shares redeemed		5,410,495
Payable upon receipt of securities loaned		15,766,988
Management fee payable		154,520
Distribution fees payable		12,468
Administration fees payable		54,225
Accrued expenses and other liabilities		160,716
Total liabilities		22,002,083
Total net assets	$	422,857,601
NET ASSETS CONSIST OF
Paid-in capital	$	465,491,578
Overdistributed net investment income		(45,674	)
Accumulated net realized losses on investments		(19,458,365	)
Net unrealized losses on investments		(23,129,938	)
Total net assets	$	422,857,601
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	55,873,438
Shares outstanding – Class A1		8,446,516
Net asset value per share – Class A		$6.61
Maximum offering price per share – Class A2		$6.92
Net assets – Class B	$	194,427
Shares outstanding – Class B1		29,398
Net asset value per share – Class B		$6.61
Net assets – Class C	$	18,967,542
Shares outstanding – Class C1		2,867,809
Net asset value per share – Class C		$6.61
Net assets – Administrator Class	$	70,841,420
Shares outstanding – Administrator Class1		10,601,126
Net asset value per share – Administrator Class		$6.68
Net assets – Institutional Class	$	92,215,763
Shares outstanding – Institutional Class1		13,812,268
Net asset value per share – Institutional Class		$6.68
Net assets – Investor Class	$	184,765,011
Shares outstanding – Investor Class1		27,814,122
Net asset value per share – Investor Class		$6.64

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—year ended August 31, 2015

Investment income
Interest	$	31,012,731
Securities lending income, net		183,063
Income from affiliated securities		28,780
Total investment income		31,224,574
Expenses
Management fee		2,894,278
Administration fees
Class A		109,726
Class B		494
Class C		36,095
Administrator Class		83,449
Institutional Class		100,139
Investor Class		432,870
Shareholder servicing fees
Class A		171,447
Class B		772
Class C		56,398
Administrator Class		177,012
Investor Class		568,737
Distribution fees
Class B		2,317
Class C		169,194
Custody and accounting fees		35,357
Professional fees		58,939
Registration fees		86,854
Shareholder report expenses		90,807
Trustees’ fees and expenses		9,642
Other fees and expenses		13,123
Total expenses		5,097,650
Less: Fee waivers and/or expense reimbursements		(690,872	)
Net expenses		4,406,778
Net investment income		26,817,796
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized losses on:
Unaffiliated securities		(18,466,872	)
Futures transactions		(1,085,805	)
Net realized losses on investments		(19,552,677	)
Net change in unrealized gains (losses) on:
Unaffiliated securities		(33,933,888	)
Futures transactions		298,971
Net change in unrealized gains (losses) on investments		(33,634,917	)
Net realized and unrealized gains (losses) on investments		(53,187,594	)
Net decrease in net assets resulting from operations	$	(26,369,798	)

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

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

	Year ended August 31, 2015						Year ended August 31, 2014
Operations
Net investment income				$	26,817,796					$	36,580,956
Net realized gains (losses) on investments					(19,552,677	)					8,047,490
Net change in unrealized gains (losses) on investments					(33,634,917	)					13,478,951
Net increase (decrease) in net assets resulting from operations					(26,369,798	)					58,107,397
Distributions to shareholders from
Net investment income
Class A					(3,438,812	)					(4,988,884	)
Class B					(13,181	)					(35,240	)
Class C					(964,110	)					(1,345,745	)
Administrator Class					(4,275,963	)					(3,773,802	)
Institutional Class					(6,767,866	)					(9,751,084	)
Investor Class					(11,357,864	)					(16,603,815	)
Net realized gains
Class A					(969,256	)					(3,842,804	)
Class B					(4,641	)					(38,215	)
Class C					(329,907	)					(1,274,798	)
Administrator Class					(1,216,589	)					(2,836,913	)
Institutional Class					(1,577,413	)					(8,563,107	)
Investor Class					(3,110,108	)					(13,040,948	)
Total distributions to shareholders					(34,025,710	)					(66,095,355	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		2,385,439			16,516,128			3,794,924			28,252,612
Class B		215			1,490			16,194			121,959
Class C		142,066			992,784			485,547			3,643,236
Administrator Class		2,599,187			18,252,362			8,278,192			62,362,797
Institutional Class		9,831,357			68,763,262			2,525,658			19,041,640
Investor Class		11,226,065			78,579,771			14,510,420			108,878,323
					183,105,797						222,300,567
Reinvestment of distributions
Class A		617,709			4,276,903			1,143,459			8,497,069
Class B		2,193			15,217			9,113			67,675
Class C		178,104			1,232,399			337,949			2,509,671
Administrator Class		778,068			5,443,239			829,521			6,226,308
Institutional Class		454,543			3,178,002			683,853			5,128,743
Investor Class		1,849,895			12,873,589			3,599,102			26,847,596
					27,019,349						49,277,062
Payment for shares redeemed
Class A		(5,407,997	)		(37,617,999	)		(7,335,423	)		(54,765,677	)
Class B		(44,840	)		(316,746	)		(93,091	)		(696,788	)
Class C		(1,200,156	)		(8,371,010	)		(1,278,499	)		(9,551,308	)
Administrator Class		(6,146,825	)		(43,257,396	)		(4,267,272	)		(32,180,199	)
Institutional Class		(12,944,454	)		(89,504,800	)		(15,484,067	)		(116,484,382	)
Investor Class		(24,564,932	)		(172,729,048	)		(20,541,049	)		(153,671,049	)
					(351,796,999	)					(367,349,403	)
Net decrease in net assets resulting from capital share transactions					(141,671,853	)					(95,771,774	)
Total decrease in net assets					(202,067,361	)					(103,759,732	)
Net assets
Beginning of period					624,924,962						728,684,694
End of period				$	422,857,601					$	624,924,962
Overdistributed net investment income				$	(45,674	)				$	(46,842	)

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)

	Year ended August 31
CLASS A	2015			2014			2013			2012			2011
Net asset value, beginning of period		$7.42			$7.50			$7.63			$7.17			$7.14
Net investment income		0.35	1		0.39	1		0.43			0.46			0.50
Net realized and unrealized gains (losses) on investments		(0.71	)		0.23			(0.10	)		0.47			0.03
Total from investment operations		(0.36	)		0.62			0.33			0.93			0.53
Distributions to shareholders from
Net investment income		(0.35	)		(0.39	)		(0.42	)		(0.47	)		(0.50	)
Net realized gains		(0.10	)		(0.31	)		(0.04	)		0.00			0.00
Total distributions to shareholders		(0.45	)		(0.70	)		(0.46	)		(0.47	)		(0.50	)
Net asset value, end of period		$6.61			$7.42			$7.50			$7.63			$7.17
Total return2		(5.00	)%		8.60	%		4.42	%		13.30	%		7.41	%
Ratios to average net assets (annualized)
Gross expenses		1.01	%		1.01	%		0.99	%		1.00	%		1.01	%
Net expenses		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%
Net investment income		5.01	%		5.22	%		5.52	%		6.30	%		6.77	%
Supplemental data
Portfolio turnover rate		51	%		46	%		60	%		22	%		78	%
Net assets, end of period (000s omitted)		$55,873			$80,478			$99,410			$123,727			$102,361

¹  Calculated based upon average shares outstanding

²  Total return calculations do not include any sales charges.

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)

	Year ended August 31
CLASS B	2015			2014			2013			2012			2011
Net asset value, beginning of period		$7.42			$7.50			$7.63			$7.17			$7.13
Net investment income		0.30	1		0.34	1		0.37	1		0.41	1		0.45
Net realized and unrealized gains (losses) on investments		(0.71	)		0.22			(0.09	)		0.46			0.04
Total from investment operations		(0.41	)		0.56			0.28			0.87			0.49
Distributions to shareholders from
Net investment income		(0.30	)		(0.33	)		(0.37	)		(0.41	)		(0.45	)
Net realized gains		(0.10	)		(0.31	)		(0.04	)		0.00			0.00
Total distributions to shareholders		(0.40	)		(0.64	)		(0.41	)		(0.41	)		(0.45	)
Net asset value, end of period		$6.61			$7.42			$7.50			$7.63			$7.17
Total return2		(5.71	)%		7.79	%		3.64	%		12.46	%		6.76	%
Ratios to average net assets (annualized)
Gross expenses		1.76	%		1.76	%		1.74	%		1.75	%		1.76	%
Net expenses		1.65	%		1.65	%		1.65	%		1.65	%		1.65	%
Net investment income		4.27	%		4.51	%		4.77	%		5.59	%		6.04	%
Supplemental data
Portfolio turnover rate		51	%		46	%		60	%		22	%		78	%
Net assets, end of period (000s omitted)		$194			$533			$1,047			$1,470			$2,452

¹  Calculated based upon average shares outstanding

²  Total return calculations do not include any sales charges.

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)

	Year ended August 31
CLASS C	2015			2014			2013			2012			2011
Net asset value, beginning of period		$7.42			$7.50			$7.63			$7.17			$7.14
Net investment income		0.30	1		0.32			0.37			0.41			0.45
Net realized and unrealized gains (losses) on investments		(0.71	)		0.24			(0.09	)		0.46			0.03
Total from investment operations		(0.41	)		0.56			0.28			0.87			0.48
Distributions to shareholders from
Net investment income		(0.30	)		(0.33	)		(0.37	)		(0.41	)		(0.45	)
Net realized gains		(0.10	)		(0.31	)		(0.04	)		0.00			0.00
Total distributions to shareholders		(0.40	)		(0.64	)		(0.41	)		(0.41	)		(0.45	)
Net asset value, end of period		$6.61			$7.42			$7.50			$7.63			$7.17
Total return2		(5.71	)%		7.80	%		3.65	%		12.47	%		6.62	%
Ratios to average net assets (annualized)
Gross expenses		1.76	%		1.76	%		1.74	%		1.75	%		1.76	%
Net expenses		1.65	%		1.65	%		1.65	%		1.65	%		1.65	%
Net investment income		4.27	%		4.48	%		4.76	%		5.56	%		6.01	%
Supplemental data
Portfolio turnover rate		51	%		46	%		60	%		22	%		78	%
Net assets, end of period (000s omitted)		$18,968			$27,791			$31,534			$32,089			$30,645

¹  Calculated based upon average shares outstanding

²  Total return calculations do not include any sales charges.

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)

	Year ended August 31
ADMINISTRATOR CLASS	2015			2014			2013			2012			2011
Net asset value, beginning of period		$7.49			$7.58			$7.70			$7.24			$7.20
Net investment income		0.36			0.40			0.44			0.48			0.51
Net realized and unrealized gains (losses) on investments		(0.71	)		0.22			(0.08	)		0.46			0.04
Total from investment operations		(0.35	)		0.62			0.36			0.94			0.55
Distributions to shareholders from
Net investment income		(0.36	)		(0.40	)		(0.44	)		(0.48	)		(0.51	)
Net realized gains		(0.10	)		(0.31	)		(0.04	)		0.00			0.00
Total distributions to shareholders		(0.46	)		(0.71	)		(0.48	)		(0.48	)		(0.51	)
Net asset value, end of period		$6.68			$7.49			$7.58			$7.70			$7.24
Total return		(4.81	)%		8.53	%		4.68	%		13.36	%		7.66	%
Ratios to average net assets (annualized)
Gross expenses		0.92	%		0.94	%		0.91	%		0.90	%		0.92	%
Net expenses		0.80	%		0.80	%		0.80	%		0.80	%		0.79	%
Net investment income		5.12	%		5.31	%		5.57	%		6.37	%		6.73	%
Supplemental data
Portfolio turnover rate		51	%		46	%		60	%		22	%		78	%
Net assets, end of period (000s omitted)		$70,841			$100,159			$64,626			$33,395			$14,654

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)

	Year ended August 31
INSTITUTIONAL CLASS	2015			2014			2013			2012			2011
Net asset value, beginning of period		$7.49			$7.57			$7.70			$7.24			$7.20
Net investment income		0.38			0.43			0.46			0.50			0.54
Net realized and unrealized gains (losses) on investments		(0.71	)		0.22			(0.09	)		0.46			0.04
Total from investment operations		(0.33	)		0.65			0.37			0.96			0.58
Distributions to shareholders from
Net investment income		(0.38	)		(0.42	)		(0.46	)		(0.50	)		(0.54	)
Net realized gains		(0.10	)		(0.31	)		(0.04	)		0.00			0.00
Total distributions to shareholders		(0.48	)		(0.73	)		(0.50	)		(0.50	)		(0.54	)
Net asset value, end of period		$6.68			$7.49			$7.57			$7.70			$7.24
Total return		(4.52	)%		9.01	%		4.85	%		13.69	%		7.98	%
Ratios to average net assets (annualized)
Gross expenses		0.68	%		0.68	%		0.66	%		0.67	%		0.68	%
Net expenses		0.50	%		0.50	%		0.50	%		0.50	%		0.50	%
Net investment income		5.41	%		5.65	%		5.92	%		6.69	%		7.15	%
Supplemental data
Portfolio turnover rate		51	%		46	%		60	%		22	%		78	%
Net assets, end of period (000s omitted)		$92,216			$123,288			$217,648			$302,894			$238,490

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)

	Year ended August 31
INVESTOR CLASS	2015			2014			2013			2012			2011
Net asset value, beginning of period		$7.45			$7.53			$7.66			$7.20			$7.16
Net investment income		0.35			0.39			0.42			0.47			0.50
Net realized and unrealized gains (losses) on investments		(0.71	)		0.23			(0.09	)		0.46			0.04
Total from investment operations		(0.36	)		0.62			0.33			0.93			0.54
Distributions to shareholders from
Net investment income		(0.35	)		(0.39	)		(0.42	)		(0.47	)		(0.50	)
Net realized gains		(0.10	)		(0.31	)		(0.04	)		0.00			0.00
Total distributions to shareholders		(0.45	)		(0.70	)		(0.46	)		(0.47	)		(0.50	)
Net asset value, end of period		$6.64			$7.45			$7.53			$7.66			$7.20
Total return		(4.99	)%		8.56	%		4.40	%		13.24	%		7.53	%
Ratios to average net assets (annualized)
Gross expenses		1.04	%		1.03	%		1.01	%		1.03	%		1.04	%
Net expenses		0.93	%		0.93	%		0.93	%		0.93	%		0.93	%
Net investment income		4.99	%		5.19	%		5.48	%		6.27	%		6.73	%
Supplemental data
Portfolio turnover rate		51	%		46	%		60	%		22	%		78	%
Net assets, end of period (000s omitted)		$184,765			$292,677			$314,420			$343,752			$278,024

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

26 Wells Fargo Advantage High Income Fund Notes to financial statements

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

Debt securities are valued at the evaluated bid price provided by an independent pricing service or, if a reliable price is not available, the quoted bid price from an independent broker-dealer.

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. Interests in non-registered investment vehicles that are redeemable at net asset value are fair valued at net asset value when available.

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 manager 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 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.

Notes to financial statements Wells Fargo Advantage High Income Fund 27

The Fund lends its securities through an unaffiliated securities lending agent. Cash collateral received in connection with its securities lending transactions is invested in 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.

Loans

The Fund may invest in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. The loans pay interest at rates which are periodically reset by reference to a base lending rate plus a spread. Investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties. When the Fund purchases participations, it generally has no rights to enforce compliance with terms of the loan agreement with the borrower. As a result, the Fund assumes the credit risk of both the borrower and the lender that is selling the participation. When the Fund purchases assignments from lenders, it acquires direct rights against the borrower on the loan and may enforce compliance by the borrower with the terms of the loan agreement. Loans may include fully funded term loans or unfunded loan commitments, which are contractual obligations for future funding.

Futures contracts

The Fund is 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

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.

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. At August 31, 2015, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Overdistributed net investment income	Accumulated net realized losses on investments
$1,168	$(1,168)

As of August 31, 2015, the Fund had capital loss carryforwards which consist of $112,566 in short-term capital losses and $3,953,475 in long-term capital losses.

As of August 31, 2015, the Fund had current year deferred post-October capital losses consisting of $5,971,737 in short-term losses and $9,202,081 in long-term losses which will be recognized on the first day of the following 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. Class specific expenses are charged directly to that share class. Investment income, common expenses, and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.

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 Wells Fargo Advantage High Income Fund 29

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of August 31, 2015:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Corporate bonds and notes	$	0	$	314,059,992	$	0	$	314,059,992
Loans		0		25,754,691		0		25,754,691
Municipal obligations		0		7,514,722		0		7,514,722
Yankee corporate bonds and notes		0		51,205,002		0		51,205,002
Short-term investments
Investment companies		8,550,902		15,766,988		0		24,317,890
U.S. Treasury securities		799,999		0		0		799,999
		9,350,901		414,301,395		0		423,652,296
Futures contracts		26,500		0		0		26,500
Total assets	$	9,377,401	$	414,301,395	$	0	$	423,678,796

Futures contracts are reported at their variation margin at measurement date, which represents the amount due to the Fund at that date. All other assets and liabilities are reported at their market value at measurement date.

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At August 31, 2015, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

4. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the applicable subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.55% and declining to 0.43% as the average daily net assets of the Fund increase.

Prior to July 1, 2015, Funds Management provided advisory services pursuant to an investment advisory agreement and was entitled to receive an annual fee which started at 0.50% and declined to 0.40% as the average daily net assets of the Fund increased. In addition, fund-level administrative services were provided by Funds Management under a separate administration agreement at an annual fee which started at 0.05% and declined to 0.03% as the average daily net assets of the Fund increased. For financial statement purposes, the advisory fee and fund-level administration fee for the year ended August 31, 2015 have been included in management fee on the Statement of Operations.

For the year ended August 31, 2015, the management fee was equivalent to an annual rate of 0.55% 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 fees

Under a class-level administration agreement, Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus

30 Wells Fargo Advantage High Income Fund Notes to financial statements

account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Funds Management receives an annual 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 management 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, 2015 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. Effective January 1, 2016, the manager has contractually committed through December 31, 2016, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver at 0.93 for Class A, 1.68% for Class B, 1.68% for Class C, 0.83% for Administrator Class and 0.53% for Institutional Class, respectively. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

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 (“Funds Distributor”), the principal underwriter, at an annual rate of 0.75% of the average daily net assets of Class B and Class C shares.

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class B and Class C shares. For the year ended August 31, 2015, Funds Distributor received $3,170 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 U.S. government obligations (if any) and short-term securities, for the year ended August 31, 2015 were $249,692,454 and $357,804,385, respectively.

6. DERIVATIVE TRANSACTIONS

During the year ended August 31, 2015, the Fund entered into futures contracts to speculate on interest rates and to help manage the duration of the portfolio.

At August 31, 2015, the Fund had short futures contracts outstanding as follows:

Expiration date	Counterparty	Contracts	Type		Contract value at August 31, 2015		Unrealized gains
12-31-2015	JPMorgan	212 Short		5-Year U.S. Treasury Notes	$	25,320,750	$	203,316

The Fund had an average notional amount of $34,323,727 in short futures contracts during the year ended August 31, 2015.

On August 31, 2015, the cumulative unrealized gains on futures contracts in the amount of $203,316 are reflected in net unrealized losses on investments on the Statement of Assets and Liabilities. The receivable for daily variation margin on open futures contracts reflected in the Statement of Assets and Liabilities only represents the current day’s variation margin. The realized losses and change in unrealized gains (losses) on futures contracts are reflected in the Statement of Operations.

Notes to financial statements Wells Fargo Advantage High Income Fund 31

For certain types of derivative transactions, the Fund has entered into International Swaps and Derivatives Association, Inc. master agreements (“ISDA Master Agreements”) or similar agreements with approved counterparties. The ISDA Master Agreements or similar agreements may have requirements to deliver/deposit securities or cash to/with an exchange or broker-dealer as collateral and allows the Fund to offset, with each counterparty, certain derivative financial instrument’s assets and/or liabilities with collateral held or pledged. Collateral requirements differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives while collateral terms are contract specific for over-the-counter traded derivatives. Cash collateral that has been pledged to cover obligations of the Fund under ISDA Master Agreements or similar agreements, if any, 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 of assets
Futures – variation margin	JPMorgan	$26,500	$	0	$	0	$	26,500

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, 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 year ended August 31, 2015, the Fund paid $1,037 in commitment fees.

For the year ended August 31, 2015, there were no borrowings by the Fund under the agreement.

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended August 31, 2015 and August 31, 2014 were as follows:

	Year ended August 31
	2015		2014
Ordinary income	$	26,817,971	$	37,069,679
Long-term capital gain		7,207,739		29,025,676

As of August 31, 2015, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Unrealized losses	Post-October capital losses deferred	Capital loss carryforward
$396,997	$(23,348,444)	$(15,173,818)	$(4,066,041)

9. INDEMNIFICATION

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

32 Wells Fargo Advantage High Income Fund Report of independent registered public accounting firm

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Advantage High Income Fund (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, as of August 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of August 31, 2015, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Advantage High Income Fund as of August 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

October 26, 2015

Other information (unaudited) Wells Fargo Advantage High Income Fund 33

TAX INFORMATION

Pursuant to Section 852 of the Internal Revenue Code, $7,207,739 was designated as long-term capital gain distributions for the fiscal year ended August 31, 2015.

For the fiscal year ended August 31, 2015, $22,502,793 has been designated as interest-related dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at 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 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 monthly on the Fund’s website (wellsfargoadvantagefunds.com), on a one-month delayed basis. In addition, top ten holdings information (excluding derivative positions) 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 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.

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

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo Advantage family of funds, which consists of 133 mutual funds 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. 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 or longer	Other public company or investment company directorships during past 5 years
William R. Ebsworth (Born 1957)	Trustee, since 2015**	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director at Fidelity Management and Research Company and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. in Boston, Tokyo, and Hong Kong where he led a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Mr. Ebsworth is a CFA® charterholder and an Adjunct Lecturer, Finance, at Babson College.	Asset Allocation Trust
Jane A. Freeman (Born 1953)	Trustee, since 2015**	Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is Chair of Taproot Foundation (non-profit organization), a Board Member of Ruth Bancroft Garden (non-profit organization) and an inactive chartered financial analyst.	Asset Allocation Trust; Harding Loevner Funds; Russell Exchange Traded Funds Trust
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. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (charter school). Mr. Harris is a certified public accountant.	CIGNA 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
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

Other information (unaudited) Wells Fargo Advantage High Income Fund 35

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Other public company or investment company directorships during past 5 years
Timothy J. Penny (Born 1951)	Trustee, since 1996	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
Michael S. Scofield (Born 1943)	Trustee, since 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 complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust
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.

** William R. Ebsworth and Jane A. Freeman each became a Trustee effective January 1, 2015.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Karla M. Rabusch (Born 1959)	President, since 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.
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. Assistant General Counsel of Wells Fargo Bank, N.A. since 2013 and Vice President and Managing Counsel of Wells Fargo Bank N.A. from 1996 to 2013.
Debra Ann Early (Born 1964)	Chief Compliance Officer, since 2007	Executive Vice President of Wells Fargo Funds Management, LLC since 2014, Senior Vice President and Chief Compliance Officer from 2007 to 2014.
David Berardi (Born 1975)	Assistant Treasurer, since 2009	Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.
Jeremy DePalma1 (Born 1974)	Assistant Treasurer, since 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 and head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.

¹ Nancy Wiser acts as Treasurer of 72 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 61 funds and Assistant Treasurer of 72 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.

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

BOARD CONSIDERATION OF INVESTMENT ADVISORY, INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment advisory and sub-advisory agreements. In this regard, at an in-person meeting held on May 19-20, 2015 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment advisory and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo Advantage High Income Fund (the “Fund”): (i) an investment advisory agreement (the “Advisory Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); (ii) an investment management agreement (the “Management Agreement”) with Funds Management; and (iii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the “Sub-Adviser”), an affiliate of Funds Management. The Management Agreement combines the terms of the Advisory Agreement with the terms of the Fund’s Amended and Restated Administration Agreement (the “Administration Agreement”) applicable to Fund-level administrative services. The Advisory Agreement, the Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”

At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in March 2015, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2015. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

After its deliberations, the Board unanimously approved the continuation of the Advisory Agreement for the period from June 1, 2015 through June 30, 2015, approved the Management Agreement for the period from July 1, 2015 through May 31, 2016, and approved the continuation of the Sub-Advisory Agreement for a one-year term through May 31, 2016. The Board also determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.

Nature, extent and quality of services

The Board received and considered various information regarding the nature, extent and quality of services provided to the Fund by Funds Management and the Sub-Adviser under the Advisory Agreements. This information included, among other things, a summary of the background and experience of senior management of Funds Management, and the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund. The Board noted that the services to be provided to the Fund pursuant to the Management Agreement combined the advisory services previously provided to the Fund pursuant to the Fund’s Advisory Agreement with the Fund-level administrative services previously provided to the Fund pursuant to the Fund’s Administration Agreement. The Board received a representation from Funds Management that combining these services would not result in any change to the nature or level of services provided by Funds Management to the Fund.

The Board evaluated the ability of Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory and supervisory personnel. The Board further considered the compliance

Other information (unaudited) Wells Fargo Advantage High Income Fund 37

programs and compliance records of Funds Management and the Sub-Adviser. In addition, the Board took into account the full range of services provided to the Fund by Funds Management and its affiliates.

Fund performance and expenses

The Board considered the performance results for the Fund over various time periods ended March 31, 2015. The Board considered these results in comparison to the performance of funds in a universe that was determined by Lipper Inc. (“Lipper”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Lipper is an independent provider of investment company data. The Board received a description of the methodology used by Lipper to select the mutual funds in the performance Universe. The Board noted that the performance of the Fund (Class A) was lower than the average performance of the Universe for all periods under review. The Board also noted that the performance of the Fund was lower than its benchmark, the Barclays U.S. Corporate High Yield Index, for all periods under review.

The Board received information concerning, and discussed factors contributing to, the underperformance of the Fund relative to the Universe and benchmark for the periods noted above. The Board took note of the explanations for the relative underperformance in these periods, including with respect to the investment process generally and investment decisions and market factors that affected the Fund’s performance.

The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees (which reflect fee waivers, if any, and include advisory, administration and transfer agent fees), custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Lipper to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Lipper to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Lipper reports, the Board noted that the net operating expense ratios of the Fund were lower than or in range of the median net operating expense ratios of the expense Groups. The Board discussed and accepted Funds Management’s proposal to convert the Investor Class shares into Class A shares. The Board also discussed with Funds Management proposed net operating expense ratio cap increases for Class A, Class B, Class C, Institutional Class, and Administrator Class. The Board accepted Funds Management’s net operating expense ratio cap increase proposals for Class A, Class B, and Class C, as initially proposed to the Board, and, after further discussions, operating expense ratio cap increases for the Institutional Class and Administrator Class, that were lower than those initially proposed to the Board. In accepting such proposed new net operating expense ratio caps, the Board noted that the Fund’s new net operating expense ratios would still be lower than or in range of the median net operating expense ratios of the expense Groups.

The Board took into account the Fund performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreement and Sub-Advisory Agreement and approve the Management Agreement.

Investment advisory and sub-advisory fee rates

The Board reviewed and considered the contractual investment advisory fee rates that are payable by the Fund to Funds Management for investment advisory services (the “Advisory Agreement Rates”), both on a stand-alone basis and on a combined basis with the Fund’s fund-level and class-level contractual administration fee rates (the “Management Rates”). The Board noted that the Management Rates include transfer agency and sub-transfer agency costs. The Board also noted that the fee rate to be paid by the Fund under the Management Agreement will incorporate the advisory fee and Fund-level administration fee previously payable separately by the Fund under the Fund’s Advisory Agreement and Administration Agreement with Funds Management. The Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Funds Management to the Sub-Adviser for investment sub-advisory services (the “Sub-Advisory Agreement Rates”).

Among other information reviewed by the Board was a comparison of the Management Rates of the Fund with those of other funds in the expense Groups at a common asset level. The Board noted that the Management Rates of the Fund were lower than the average rates for the Fund’s expense Groups for all share classes.

The Board also received and considered information about the portion of the total advisory fee that was retained by Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Funds Management and not delegated to or assumed by the Sub-Adviser, and about Funds Management’s on-going oversight services. However, given the affiliation between Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of the advisory fee between them.

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

The Board also received and considered information about the nature and extent of services offered and fee rates charged by Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing mutual funds compared with those associated with managing assets of non-mutual fund clients such as collective funds or institutional separate accounts.

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Funds Management under the Management Agreement and Advisory Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable, in light of the services covered by the Advisory Agreements.

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also received and considered information concerning the profitability of the Sub-Adviser from providing services to the fund family as a whole, noting that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo profitability analysis.

Funds Management reported on the methodologies and estimates used in calculating profitability. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size and type of fund. Based on its review, the Board did not deem the profits reported by Funds Management or Wells Fargo from its services to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.

Economies of scale

With respect to possible economies of scale, the Board noted the existence of breakpoints in the Fund’s advisory and management fee structures, and the Fund’s administration fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered that fee waiver and expense reimbursement arrangements and competitive fee rates at the outset are means of sharing potential economies of scale with shareholders of the Fund and the fund family as a whole. The Board considered Funds Management’s view that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments that Funds Management incurs across the fund family as a whole.

The Board concluded that the Fund’s fee and expense arrangements, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.

Other benefits to Funds Management and the Sub-Adviser

The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that various affiliates of Funds Management may receive distribution-related fees, shareholder servicing payments and sub-transfer agency fees in respect of shares sold or held through them and services provided.

The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser, fees earned by Funds Management and the Sub-Adviser from managing a private investment vehicle for the fund family’s securities lending collateral and commissions earned by an affiliated broker from portfolio transactions.

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory Agreement for the period from June 1, 2015 through June 30, 2015, approved the Management Agreement for the period from July 1, 2015 through May 31, 2016, and approved the continuation of the Sub-Advisory Agreement for a one-year term through May 31, 2016. The Board also determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable.

List of abbreviations Wells Fargo Advantage High Income Fund 39

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 —  Colombian 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

LIFER —  Long Inverse Floating Exempt Receipts

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

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —   Short Puttable Exempt Adjustable 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. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at wellsfargoadvantagefunds.com. 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, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

© 2015 Wells Fargo Funds Management, LLC. All rights reserved.

236803 10-15 A217/AR217 08-15

Wells Fargo Advantage High Yield Bond Fund

Annual Report

August 31, 2015

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	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	23
Report of independent registered public accounting firm	29
Other information	30
List of abbreviations	36

The views expressed and any forward-looking statements are as of August 31, 2015, 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

Major central banks continued to inject liquidity into global banks and markets through various accommodative monetary policies, including quantitative easing.

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Advantage High Yield Bond Fund for the 12-month period that ended August 31, 2015. The period was marked by low interest rates, low oil prices, and moderate U.S. economic growth. Short-term investment-grade bonds, as measured by the Barclays U.S. 1–3 Year Government/Credit Bond Index,¹ returned 0.81% during the period. Meanwhile, strong demand for high-quality, liquid assets kept returns on Treasury bills more modest; the Barclays 6-Month Treasury Bill Index² returned 0.15% during the period.

Major central banks continued to provide stimulus.

Major central banks continued to inject liquidity into global banks and markets through various accommodative monetary policies, including quantitative easing. In the U.S., the Federal Reserve (Fed) kept its key interest rate near zero in order to support the economy and the financial system. However, it set expectations for it to begin normalizing monetary policy with higher target ranges for the federal funds rate.

Meanwhile, European markets continued to benefit from the European Central Bank’s (ECB’s) willingness to maintain low interest rates. In addition to its targeted longer-term refinancing operations that are designed to increase bank lending, the ECB expanded its quantitative easing program to include the purchase of eurozone government bonds. In Japan, the Bank of Japan maintained an aggressive monetary program aimed at combating deflation.

Economic growth was moderate, and oil prices plummeted.

U.S. economic growth advanced during the reporting period, the unemployment rate ticked lower to 5.1% as of August 2015, and inflation remained below the Fed’s longer-run objective of a 2% pace. The period was also marked by lower oil prices, which began the reporting period near $90 per barrel but declined to $46 per barrel at the end of August 2015. While lower oil prices benefited consumers of oil products, the lower prices pressured companies within the energy sector.

Bond yields rose but remained low by historical standards.

Short-term interest rates increased during the reporting period, with a flattening in the shape of the short-term yield curve. During this time frame, 1-year Treasury bills rose 29 basis points (bps; 100 bps equals 1.00%) to yield 0.38%, 2-year Treasury note yields rose 21 bps to yield 0.74%, and 3-year Treasury note yields rose only 8 bps to yield 1.05%. Meanwhile, ultra-short-term yields were little changed at ultralow levels, anchored by the easy monetary policy.

Since the end of the financial crisis, structural changes in the fixed-income markets have reduced trading liquidity (the degree to which assets can be bought or sold without affecting the price). New regulations and capital requirements have caused traditional liquidity suppliers (banks and broker/dealers) to be more risk-averse and hold less inventory. Meanwhile, corporate-debt issuance has spiked as companies finance themselves at record-low yields, bond mutual funds hold larger amounts of

¹  The Barclays U.S. 1–3 Year Government/Credit Bond Index is the one- to three-year component of the Barclays U.S. Government/Credit Bond Index that includes securities in the Government and Credit Indexes. 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.

²  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.

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

this new debt supply, trading volumes are lower, and large-size trades are more difficult to execute. However, fixed-income markets appear to have functioned well over the past year with sufficient liquidity and muted volatility.

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

Periods of 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 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 in Wells Fargo Advantage Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.

Sincerely,

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Periods of 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.

Notice to shareholders

At a meeting held on August 11–12, 2015, the Board of Trustees of the Fund approved a change in the name of the Fund whereby the word “Advantage” will be removed from its name, effective December 15, 2015.

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.

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

Investment objective

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

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio manager

Margaret D. Patel

Average annual total returns¹ (%) as of August 31, 2015

		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		(6.27	)		5.15		5.67		(1.79	)		6.10		6.16		1.03		1.03
Class B (EKHBX)*	9-11-1935		(7.52	)		4.98		5.61		(2.81	)		5.31		5.61		1.78		1.78
Class C (EKHCX)	1-21-1998		(3.52	)		5.31		5.37		(2.52	)		5.31		5.37		1.78		1.78
Administrator Class (EKHYX)	4-14-1998		–			–		–		(1.86	)		6.33		6.41		0.97		0.80
Institutional Class (EKHIX)	10-31-2014		–			–		–		(1.49	)		6.41		6.45		0.70		0.70
BofA Merrill Lynch U.S. High Yield Master II Constrained Index4	–		–			–		–		(3.08	)		7.10		7.32		–		–

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

Figures quoted represent past performance, which is no guarantee of future results, and do not reflect 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 a contingent deferred 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. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the Fund and its share price can be sudden and unpredictable. The use of derivatives may reduce returns and/or increase volatility. 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. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to foreign investment risk. Consult the Fund’s prospectus for additional information on these and other risks.

Please see footnotes on page 5.

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

Growth of $10,000 investment⁵ as of August 31, 2015

¹  Historical performance shown for the Institutional Class shares prior to their inception reflects the performance of the Administration Class shares, and is not adjusted to reflect the Institutional Class expenses. If these expenses had been included, returns for the Institutional Class would be higher. 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 manager has contractually committed through December 31, 2015, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver at the amounts shown. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. 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 chart compares the performance of Class A shares for the most recent 10 years with the performance of the BofA Merrill Lynch U.S. High Yield Master II Constrained Index. The chart assumes a hypothetical investment of $10,000 in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 4.50%.

⁶  The ten largest holdings, excluding cash and cash equivalents, are calculated based on the value of the investments 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 distribution 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 distribution is subject to change and may have changed since the date specified.

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

MANAGER’S DISCUSSION

Fund highlights

n The Fund outperformed its benchmark, the BofA Merrill Lynch U.S. High Yield Master II Constrained Index, for the 12-month period that ended August 31, 2015.

n The Fund’s overweight to better-quality, BB-rated high-yield bonds contributed to performance over the fiscal year. Although the portfolio’s bonds posted price declines that more than offset their earned income, the aggregate decline was less than that of the index.

n The Fund’s substantial underweight to the energy and metals and mining sectors versus the index contributed to the Fund’s outperformance. Detractors included some of the Fund’s holdings in commodity-related industries, as well as its minimal holdings in the energy sector.

The performance of U.S. Treasuries and high-yield bonds diverged as investors worried about sluggish economic growth.

Intermediate U.S. Treasury yields fluctuated in a relatively narrow range over the reporting period, beginning the fiscal year at a 2.35% yield to maturity and ending the year at a modestly lower 2.22%. Many investors worried that interest rates would rise over the fiscal year as the U.S. Federal Reserve (Fed) began to gradually raise short-term interest rates and several analysts hoped that higher economic activity would cause inflation to increase. However, neither event occurred. Once again, instead of rising as many participants had feared, rates declined modestly over the past 12 months. The continued sluggish pace of economic growth, and especially the lack of acceleration in economic growth, contributed to market uncertainty. As a result, despite continued low defaults, the yield on high-yield bonds increased notably relative to comparable maturity Treasuries. The yield advantage increased from 400 basis points (bps; 100 bps equals 1.00%) at the beginning of the fiscal year to 576 bps at fiscal year-end.

Ten largest holdings6 (%) as of August 31, 2015
CommScope Incorporated, 5.50%, 6-15-2024	3.81
Tronox Finance LLC, 6.38%, 8-15-2020	3.28
Olin Corporation, 5.50%, 8-15-2022	3.04
Constellation Brands Incorporated, 4.75%, 11-15-2024	2.70
Clean Harbors Incorporated, 5.13%, 6-1-2021	2.59
HCA Incorporated, 5.38%, 2-1-2025	2.54
Horizon Pharma plc, 6.63%, 5-1-2023	2.46
Penske Auto Group Incorporated, 5.75%, 10-1-2022	2.46
Endo Limited, 6.00%, 2-1-2025	2.37
Lear Corporation, 4.75%, 1-15-2023	2.29

Lower-rated high-yield bonds lagged the performance of higher-quality BB-rated bonds, which had less price depreciation than that of lower-rated issues. In particular, during the high-yield bond market decline that occurred in the last few months of the fiscal year, price declines were most pronounced in lower-rated issues—those rated CCC- or below. Also, the energy sector came under extreme price pressure as prices of oil and gas declined. Concerns intensified about the economic viability of many companies that had issued high-yield bonds but possessed relatively high-cost oil and gas exploration acreage. Energy service companies also came under severe pressure as orders dropped and the prices for their services fell. The metals and mining industry further experienced price declines as reduced demand from

primarily emerging markets economies saddled that industry with overcapacity and plummeting prices. The expectation that high-yield bond defaults would rise over the next year further supported an increase in lower-quality bond yields.

The Fund benefited from a relatively high-quality portfolio and favorable sector positioning.

The Fund’s above-benchmark allocation to holdings in better-quality BB-rated bonds, as well as a lack of exposure to lower-quality CCC-rated issues, aided its performance relative to the benchmark. Holdings in industries such as consumer staples, consumer discretionary, health care, and utilities outperformed the index because companies whose revenues were concentrated in consumer products, or whose revenues were largely concentrated in the U.S., had solid financial results. The bonds of Constellation Brands, Incorporated, a producer of alcoholic beverages, were notable contributors. Several of the Fund’s health care bonds performed particularly well, including those of specialty pharmaceutical company Endo Limited and dialysis service provider DaVita HealthCare Partners Incorporated. The Fund’s modest allocation (about 9% of total assets) to stocks also provided modest positive relative performance compared with the total return for the high-yield market as a whole.

Please see footnotes on page 5.

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

The Fund’s modest exposure to the energy sector further helped relative performance because this industry was the worst-performing industry in the entire high-yield market. However, individual energy holdings detracted because virtually every issue in the energy space underperformed the benchmark.

Other detractors included the bonds of Bristow Group Incorporated, a provider of helicopter services to the energy sector. In addition, several of the Fund’s issues in the materials sector underperformed the market, reflecting low demand from many emerging economies and subsequent price pressure on the companies’ products. Bonds of Tronox Finance LLC (a producer of Tio2 chemicals) and Rayonier Advanced Materials Incorporated, a producer of specialty cellulose products, also detracted from performance.

Credit quality⁷ as of August 31, 2015

The Fund is positioned to reflect our forecast of continued slow economic growth and a continued moderate default rate.

The portfolio is overweight BB-rated and better-quality B-rated issues, with continued avoidance of CCC-rated and distressed holdings, which we feel do not represent good relative risk/reward characteristics. In addition, the portfolio is concentrated in companies whose operations are primarily in the U.S., with minimal exposure to the energy sector or to companies whose products and services are dependent on emerging markets economies, many of which appear to be nearing recession.

All of the Fund’s bond holdings are in companies with public equity outstanding, which we think provides a more flexible capital structure and more transparent reporting of financial results. We continue to hold a modest amount (about 9%) of total assets in stocks, believing that this exposure offers fixed-income investors the potential for capital appreciation.

We believe that the recent increase in the yields on high-yield bonds, despite falling Treasury yields, means that the high-yield market has become relatively more attractive to yield-oriented investors, especially because we expect high-yield fundamentals to remain solid. Outside of very low-quality, speculative issues and the challenges in the energy sector, we believe the default rate should continue near its current historically low 2% level. With the economy growing, albeit slowly, and the Fed conscious of its role in maintaining liquidity to the financial markets, we expect the high-yield market to stabilize at a yield advantage to Treasuries that is moderately above its long-term average.

Please see footnotes on page 5.

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 servicing 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 March 1, 2015 to August 31, 2015.

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 3-1-2015		Ending account value 8-31-2015		Expenses paid during the period¹		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	973.90	$	5.12		1.03	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.01	$	5.24		1.03	%
Class B
Actual	$	1,000.00	$	970.22	$	8.84		1.78	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.23	$	9.05		1.78	%
Class C
Actual	$	1,000.00	$	970.23	$	8.84		1.78	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.23	$	9.05		1.78	%
Administrator Class
Actual	$	1,000.00	$	975.04	$	3.98		0.80	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.17	$	4.08		0.80	%
Institutional Class
Actual	$	1,000.00	$	975.67	$	3.49		0.70	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.68	$	3.57		0.70	%

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—August 31, 2015 Wells Fargo Advantage High Yield Bond Fund 9

Security name	Shares		Value
Common Stocks: 8.08%
Consumer Discretionary: 0.62%
Auto Components: 0.18%
Gentex Corporation		30,000	$	465,000
Household Durables: 0.40%
Harman International Industries Incorporated		6,000		586,440
Leggett & Platt Incorporated		10,000		444,200
				1,030,640
Specialty Retail: 0.04%
The Home Depot Incorporated		1,000		116,460
Consumer Staples: 0.77%
Food Products: 0.40%
ConAgra Foods Incorporated		25,000		1,042,000
Personal Products: 0.37%
The Estee Lauder Companies Incorporated Class A		12,000		957,240
Energy: 0.29%
Oil, Gas & Consumable Fuels: 0.29%
Columbia Pipeline Group		30,000		760,800
Financials: 0.38%
Real Estate Management & Development: 0.25%
CBRE Group Incorporated Class A †		20,000		640,400
REITs: 0.13%
Saul Centers Incorporated		7,000		345,380
Health Care: 1.60%
Biotechnology: 0.19%
Baxalta Incorporated		4,000		140,600
Celgene Corporation †		3,000		354,240
				494,840
Health Care Equipment & Supplies: 0.50%
C.R. Bard Incorporated		4,000		775,160
Medtronic plc		5,000		361,450
West Pharmaceutical Services Incorporated		3,000		167,550
				1,304,160
Life Sciences Tools & Services: 0.43%
Quintiles Transnational Holdings Incorporated †		15,000		1,117,650
Pharmaceuticals: 0.48%
Eli Lilly & Company		1,000		82,350
Endo International plc †		1,000		77,000

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

10 Wells Fargo Advantage High Yield Bond Fund Portfolio of investments—August 31, 2015

Security name						Shares		Value
Pharmaceuticals (continued)
Mallinckrodt plc †							1,000	$	86,240
Mylan NV †							20,000		991,800
									1,237,390
Industrials: 0.25%
Machinery: 0.25%
John Bean Technologies Corporation							20,000		662,400
Information Technology: 1.51%
Communications Equipment: 0.12%
Palo Alto Networks Incorporated †							2,000		328,440
Electronic Equipment, Instruments & Components: 0.35%
Amphenol Corporation Class A							10,000		523,600
FEI Company							5,000		377,400
									901,000
Internet Software & Services: 0.25%
Akamai Technologies Incorporated †							9,000		641,790
IT Services: 0.33%
Automatic Data Processing Incorporated							11,000		850,520
Software: 0.46%
FireEye Incorporated †							7,000		264,460
Splunk Incorporated †							15,000		929,550
									1,194,010
Utilities: 2.66%
Electric Utilities: 0.19%
NextEra Energy Incorporated							5,000		492,050
Gas Utilities: 0.11%
Atmos Energy Corporation							5,000		273,950
Multi-Utilities: 2.36%
CMS Energy Corporation							28,000		917,840
Dominion Resources Incorporated							12,000		837,000
DTE Energy Company							20,000		1,561,200
NiSource Incorporated							10,000		167,900
Sempra Energy							28,000		2,655,800
									6,139,740
Total Common Stocks (Cost $21,893,064)									20,995,860
	Interest rate			Maturity date		Principal
Corporate Bonds and Notes: 85.17%
Consumer Discretionary: 12.52%
Auto Components: 3.93%
American Axle Manufacturing Incorporated		6.63	%		10-15-2022	$	2,250,000		2,295,000
Dana Holding Corporation		5.50			12-15-2024		2,000,000		1,965,000

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

Portfolio of investments—August 31, 2015 Wells Fargo Advantage High Yield Bond Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Auto Components (continued)
Lear Corporation		4.75	%		1-15-2023	$	6,000,000	$	5,955,000
									10,215,000
Diversified Consumer Services: 0.65%
Avis Budget Car Rental LLC / Avis Budget Finance Incorporated 144A		5.25			3-15-2025		1,775,000		1,681,813
Hotels, Restaurants & Leisure: 1.18%
Speedway Motorsports Incorporated		5.13			2-1-2023		3,115,000		3,083,850
Media: 2.40%
DISH DBS Corporation		5.00			3-15-2023		5,500,000		4,867,500
DISH DBS Corporation		5.88			11-15-2024		1,500,000		1,366,875
									6,234,375
Specialty Retail: 4.36%
Group 1 Automotive Incorporated		5.00			6-1-2022		5,000,000		4,962,500
Penske Auto Group Incorporated		5.75			10-1-2022		6,200,000		6,386,000
									11,348,500
Consumer Staples: 2.70%
Beverages: 2.70%
Constellation Brands Incorporated		4.75			11-15-2024		6,876,000		7,030,710
Energy: 2.55%
Energy Equipment & Services: 2.03%
Bristow Group Incorporated		6.25			10-15-2022		5,990,000		5,271,200
Oil, Gas & Consumable Fuels: 0.52%
NGL Energy Partners LP		5.13			7-15-2019		1,460,000		1,350,500
Financials: 5.53%
REITs: 5.53%
Crown Castle International Corporation		4.88			4-15-2022		1,000,000		1,026,250
Crown Castle International Corporation		5.25			1-15-2023		4,000,000		4,185,000
Iron Mountain Incorporated		5.75			8-15-2024		5,000,000		5,018,750
Sabra Health Care Incorporated		5.38			6-1-2023		4,000,000		4,140,000
									14,370,000
Health Care: 16.39%
Biotechnology: 1.14%
AMAG Pharmaceuticals Incorporated 144A		7.88			9-1-2023		2,900,000		2,969,310
Health Care Equipment & Supplies: 0.60%
Halyard Health Incorporated 144A		6.25			10-15-2022		1,000,000		1,034,375
Hologic Incorporated 144A		5.25			7-15-2022		500,000		511,875
									1,546,250

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

12 Wells Fargo Advantage High Yield Bond Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Health Care Providers & Services: 8.84%
DaVita HealthCare Partners Incorporated		5.13	%		7-15-2024	$	2,000,000	$	1,991,250
DaVita HealthCare Partners Incorporated		5.75			8-15-2022		4,265,000		4,537,960
Fresenius Medical Care Holdings Incorporated 144A		5.88			1-31-2022		4,529,000		4,891,320
HCA Incorporated		5.38			2-1-2025		6,500,000		6,597,500
HealthSouth Corporation		5.13			3-15-2023		5,000,000		4,950,000
									22,968,030
Life Sciences Tools & Services: 0.98%
Quintiles Transnational Corporation 144A		4.88			5-15-2023		2,500,000		2,550,000
Pharmaceuticals: 4.83%
Endo Limited 144A		6.00			2-1-2025		6,000,000		6,165,000
Horizon Pharma plc 144A		6.63			5-1-2023		6,200,000		6,401,500
									12,566,500
Industrials: 12.58%
Aerospace & Defense: 3.39%
Moog Incorporated 144A		5.25			12-1-2022		5,000,000		5,050,000
Orbital ATK Incorporated		5.25			10-1-2021		3,675,000		3,748,500
									8,798,500
Building Products: 1.61%
Dycom Investments Incorporated		7.13			1-15-2021		4,000,000		4,170,000
Commercial Services & Supplies: 2.59%
Clean Harbors Incorporated		5.13			6-1-2021		6,663,000		6,728,964
Electrical Equipment: 2.08%
Belden Incorporated 144A		5.50			9-1-2022		5,500,000		5,417,500
Machinery: 1.15%
Oshkosh Corporation		5.38			3-1-2025		3,000,000		3,000,000
Road & Rail: 1.76%
The Hertz Corporation		6.25			10-15-2022		4,500,000		4,578,750
Information Technology: 9.49%
Communications Equipment: 3.81%
CommScope Incorporated 144A		5.50			6-15-2024		10,200,000		9,906,750
Electronic Equipment, Instruments & Components: 0.56%
Anixter International Incorporated		5.13			10-1-2021		1,000,000		997,500
Belden Incorporated 144A		5.25			7-15-2024		485,000		459,538
									1,457,038
IT Services: 2.07%
Neustar Incorporated «		4.50			1-15-2023		6,350,000		5,397,500

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

Portfolio of investments—August 31, 2015 Wells Fargo Advantage High Yield Bond Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Semiconductors & Semiconductor Equipment: 3.05%
Micron Technology Incorporated 144A		5.25	%		8-1-2023	$	3,600,000	$	3,366,000
Micron Technology Incorporated		5.50			2-1-2025		4,900,000		4,557,000
									7,923,000
Materials: 17.80%
Chemicals: 12.55%
A. Schulman Incorporated 144A		6.88			6-1-2023		3,200,000		3,184,000
Celanese U.S. Holdings LLC		4.63			11-15-2022		4,729,000		4,604,864
Huntsman International LLC		4.88			11-15-2020		1,000,000		980,000
Kraton Polymers LLC		6.75			3-1-2019		2,105,000		2,115,525
Olin Corporation		5.50			8-15-2022		7,750,000		7,905,000
Rayonier Advanced Materials Incorporated 144A		5.50			6-1-2024		7,775,000		5,306,438
Tronox Finance LLC		6.38			8-15-2020		10,400,000		8,528,000
									32,623,827
Containers & Packaging: 3.28%
Ball Corporation		4.00			11-15-2023		1,500,000		1,413,750
Ball Corporation		5.00			3-15-2022		5,500,000		5,582,500
Sealed Air Corporation 144A		5.25			4-1-2023		1,500,000		1,533,750
									8,530,000
Metals & Mining: 0.16%
Commercial Metals Company		4.88			5-15-2023		150,000		132,750
Steel Dynamics Incorporated		5.50			10-1-2024		300,000		291,375
									424,125
Paper & Forest Products: 1.81%
P.H. Glatfelter Company		5.38			10-15-2020		4,630,000		4,687,875
Utilities: 5.61%
Electric Utilities: 1.73%
DPL Incorporated		7.25			10-15-2021		4,375,000		4,511,719
Independent Power & Renewable Electricity Producers: 3.88%
Calpine Corporation 144A		5.88			1-15-2024		2,576,000		2,704,800
Calpine Corporation 144A		6.00			1-15-2022		1,625,000		1,728,594
NRG Energy Incorporated		6.63			3-15-2023		5,743,000		5,642,495
									10,075,889
Total Corporate Bonds and Notes (Cost $229,708,515)									221,417,475
Yankee Corporate Bonds and Notes: 4.27%
Health Care: 1.71%
Pharmaceuticals: 1.71%
Mallinckrodt plc 144A		5.50			4-15-2025		4,500,000		4,460,625

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

14 Wells Fargo Advantage High Yield Bond Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Industrials: 2.32%
Electrical Equipment: 2.32%
Sensata Technologies BV 144A		4.88	%		10-15-2023	$	3,000,000	$	2,947,500
Sensata Technologies BV 144A		5.63			11-1-2024		3,000,000		3,075,000
									6,022,500
Information Technology: 0.24%
Technology Hardware, Storage & Peripherals: 0.24%
Seagate HDD (Cayman)		4.75			6-1-2023		640,000		620,358
Total Yankee Corporate Bonds and Notes (Cost $11,253,212)									11,103,483
	Yield					Shares
Short-Term Investments: 2.08%
Investment Companies: 2.08%
Securities Lending Cash Investments, LLC (l)(r)(u)		0.15					2,329,763		2,329,763
Wells Fargo Advantage Cash Investment Money Market Fund, Select Class (l)(u)		0.15					3,067,086		3,067,086
Total Short-Term Investments (Cost $5,396,849)									5,396,849

Total investments in securities (Cost $268,251,640) *	99.60	%		258,913,667
Other assets and liabilities, net	0.40			1,041,242
Total net assets	100.00	%	$	259,954,909

† Non-income-earning security

144A The security may be resold in transactions exempt from registration, normally to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933.

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

(l) The security represents an affiliate of the Fund as defined in the Investment Company Act of 1940.

(r) The investment is a non-registered investment vehicle purchased with cash collateral received from securities on loan.

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

* Cost for federal income tax purposes is $268,175,047 and unrealized gains (losses) consists of:

Gross unrealized gains	$	1,838,749
Gross unrealized losses		(11,100,129	)
Net unrealized losses	$	(9,261,380	)

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

Statement of assets and liabilities—August 31, 2015 Wells Fargo Advantage High Yield Bond Fund 15

Assets
Investments
In unaffiliated securities (including $2,252,762 of securities loaned), at value (cost $262,854,791)	$	253,516,818
In affiliated securities, at value (cost $5,396,849)		5,396,849
Total investments, at value (cost $268,251,640)		258,913,667
Foreign currency, at value (cost $45)		39
Receivable for investments sold		1,200,278
Receivable for Fund shares sold		23,199
Receivable for dividends and interest		3,402,482
Receivable for securities lending income		6,262
Prepaid expenses and other assets		138,798
Total assets		263,684,725
Liabilities
Dividends payable		82,340
Payable for investments purchased		348,739
Payable for Fund shares redeemed		586,749
Payable upon receipt of securities loaned		2,329,763
Management fee payable		116,949
Distribution fees payable		40,962
Administration fees payable		34,932
Accrued expenses and other liabilities		189,382
Total liabilities		3,729,816
Total net assets	$	259,954,909
NET ASSETS CONSIST OF
Paid-in capital	$	323,594,871
Overdistributed net investment income		(119,927	)
Accumulated net realized losses on investments		(54,182,056	)
Net unrealized losses on investments		(9,337,979	)
Total net assets	$	259,954,909
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	179,357,056
Shares outstanding – Class A1		56,777,714
Net asset value per share – Class A		$3.16
Maximum offering price per share – Class A2		$3.31
Net assets – Class B	$	1,868,362
Shares outstanding – Class B1		591,238
Net asset value per share – Class B		$3.16
Net assets – Class C	$	60,753,360
Shares outstanding – Class C1		19,229,282
Net asset value per share – Class C		$3.16
Net assets – Administrator Class	$	13,129,161
Shares outstanding – Administrator Class1		4,150,322
Net asset value per share – Administrator Class		$3.16
Net assets – Institutional Class	$	4,846,970
Shares outstanding – Institutional Class1		1,531,175
Net asset value per share – Institutional Class		$3.17

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—year ended August 31, 2015

Investment income
Interest	$	13,985,799
Dividends (net of foreign withholding taxes of $1,993)		530,937
Securities lending income, net		85,118
Income from affiliated securities		2,574
Total investment income		14,604,428
Expenses
Management fee		1,584,806
Administration fees
Class A		317,856
Class B		4,553
Class C		106,852
Administrator Class		18,653
Institutional Class		964	1
Shareholder servicing fees
Class A		496,652
Class B		7,114
Class C		166,955
Administrator Class		46,633
Distribution fees
Class B		21,342
Class C		500,867
Custody and accounting fees		23,677
Professional fees		68,432
Registration fees		53,566
Shareholder report expenses		55,448
Trustees’ fees and expenses		10,090
Other fees and expenses		13,894
Total expenses		3,498,354
Less: Fee waivers and/or expense reimbursements		(55,325	)
Net expenses		3,443,029
Net investment income		11,161,399
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) on:
Unaffiliated securities		2,699,618
Futures transactions		(288,529	)
Net realized gains on investments		2,411,089
Net change in unrealized gains (losses) on:
Unaffiliated securities		(19,793,858	)
Futures transactions		214,228
Net change in unrealized gains (losses) on investments		(19,579,630	)
Net realized and unrealized gains (losses) on investments		(17,168,541	)
Net decrease in net assets resulting from operations	$	(6,007,142	)

¹  For the period from October 31, 2014 (commencement of class operations) to August 31, 2015

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

	Year ended August 31, 2015						Year ended August 31, 2014
Operations
Net investment income				$	11,161,399					$	13,443,918
Net realized gains on investments					2,411,089						5,377,718
Net change in unrealized gains (losses) on investments					(19,579,630	)					15,459,995
Net increase (decrease) in net assets resulting from operations					(6,007,142	)					34,281,631
Distributions to shareholders from
Net investment income
Class A					(8,019,970	)					(9,459,253	)
Class B					(93,822	)					(189,519	)
Class C					(2,197,041	)					(2,766,449	)
Administrator Class					(796,962	)					(967,151	)
Institutional Class					(52,204	)1					N/A
Total distributions to shareholders					(11,159,999	)					(13,382,372	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		11,660,936			38,274,681			4,174,488			13,529,333
Class B		52,608			173,419			17,151			56,831
Class C		780,954			2,557,227			821,870			2,678,022
Administrator Class		1,586,653			5,225,031			2,812,042			9,171,050
Institutional Class		1,709,640	1		5,538,268	1		N/A			N/A
					51,768,626						25,435,236
Reinvestment of distributions
Class A		2,163,645			7,069,289			2,511,673			8,240,513
Class B		25,351			82,962			51,262			167,850
Class C		619,791			2,025,306			770,176			2,526,354
Administrator Class		223,657			732,250			262,316			862,288
Institutional Class		6,536	1		20,901	1		N/A			N/A
					9,930,708						11,797,005
Payment for shares redeemed
Class A		(19,652,201	)		(64,201,730	)		(15,822,235	)		(51,599,260	)
Class B		(670,606	)		(2,199,762	)		(1,002,877	)		(3,278,584	)
Class C		(3,849,430	)		(12,539,667	)		(6,460,879	)		(21,047,143	)
Administrator Class		(3,665,523	)		(11,914,124	)		(3,853,847	)		(12,658,859	)
Institutional Class		(185,001	)1		(603,958	)1		N/A			N/A
					(91,459,241	)					(88,583,846	)
Net decrease in net assets resulting from capital share transactions					(29,759,907	)					(51,351,605	)
Total decrease in net assets					(46,927,048	)					(30,452,346	)
Net assets
Beginning of period					306,881,957						337,334,303
End of period				$	259,954,909					$	306,881,957
Overdistributed net investment income				$	(119,927	)				$	(163,588	)

¹  For the period from October 31, 2014 (commencement of class operations) to August 31, 2015

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)

	Year ended August 31
CLASS A	2015			2014			2013			2012			2011
Net asset value, beginning of period		$3.35			$3.15			$3.18			$3.03			$3.05
Net investment income		0.13			0.14			0.15			0.20			0.21
Net realized and unrealized gains (losses) on investments		(0.19	)		0.20			(0.03	)		0.15			(0.02	)
Total from investment operations		(0.06	)		0.34			0.12			0.35			0.19
Distributions to shareholders from
Net investment income		(0.13	)		(0.14	)		(0.15	)		(0.20	)		(0.21	)
Net asset value, end of period		$3.16			$3.35			$3.15			$3.18			$3.03
Total return1		(1.79	)%		11.02	%		3.78	%		12.00	%		6.07	%
Ratios to average net assets (annualized)
Gross expenses		1.04	%		1.03	%		1.04	%		1.02	%		1.02	%
Net expenses		1.03	%		1.03	%		1.03	%		1.02	%		1.02	%
Net investment income		4.04	%		4.35	%		4.65	%		6.52	%		6.60	%
Supplemental data
Portfolio turnover rate		55	%		40	%		95	%		37	%		70	%
Net assets, end of period (000s omitted)		$179,357			$210,005			$225,743			$261,938			$240,653

¹  Total return calculations do not include any sales charges.

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)

	Year ended August 31
CLASS B	2015			2014			2013			2012			2011
Net asset value, beginning of period		$3.36			$3.15			$3.18			$3.03			$3.05
Net investment income		0.11	1		0.12			0.13			0.18	1		0.18	1
Net realized and unrealized gains (losses) on investments		(0.20	)		0.21			(0.03	)		0.15			(0.02	)
Total from investment operations		(0.09	)		0.33			0.10			0.33			0.16
Distributions to shareholders from
Net investment income		(0.11	)		(0.12	)		(0.13	)		(0.18	)		(0.18	)
Net asset value, end of period		$3.16			$3.36			$3.15			$3.18			$3.03
Total return2		(2.81	)%		10.53	%		3.01	%		11.17	%		5.28	%
Ratios to average net assets (annualized)
Gross expenses		1.79	%		1.78	%		1.78	%		1.77	%		1.78	%
Net expenses		1.78	%		1.78	%		1.78	%		1.77	%		1.77	%
Net investment income		3.30	%		3.63	%		3.93	%		5.80	%		5.85	%
Supplemental data
Portfolio turnover rate		55	%		40	%		95	%		37	%		70	%
Net assets, end of period (000s omitted)		$1,868			$3,972			$6,667			$13,247			$21,656

¹  Calculated based upon average shares outstanding

²  Total return calculations do not include any sales charges.

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)

	Year ended August 31
CLASS C	2015			2014			2013			2012			2011
Net asset value, beginning of period		$3.35			$3.15			$3.18			$3.03			$3.05
Net investment income		0.11			0.12			0.13			0.18			0.18
Net realized and unrealized gains (losses) on investments		(0.19	)		0.20			(0.03	)		0.15			(0.02	)
Total from investment operations		(0.08	)		0.32			0.10			0.33			0.16
Distributions to shareholders from
Net investment income		(0.11	)		(0.12	)		(0.13	)		(0.18	)		(0.18	)
Net asset value, end of period		$3.16			$3.35			$3.15			$3.18			$3.03
Total return1		(2.52	)%		10.20	%		3.01	%		11.17	%		5.28	%
Ratios to average net assets (annualized)
Gross expenses		1.79	%		1.78	%		1.79	%		1.77	%		1.77	%
Net expenses		1.78	%		1.78	%		1.78	%		1.77	%		1.77	%
Net investment income		3.29	%		3.60	%		3.90	%		5.78	%		5.85	%
Supplemental data
Portfolio turnover rate		55	%		40	%		95	%		37	%		70	%
Net assets, end of period (000s omitted)		$60,753			$72,728			$83,548			$99,633			$95,999

¹  Total return calculations do not include any sales charges.

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)

	Year ended August 31
ADMINISTRATOR CLASS	2015			2014			2013			2012			2011
Net asset value, beginning of period		$3.36			$3.15			$3.18			$3.03			$3.05
Net investment income		0.14			0.15			0.16			0.21			0.22
Net realized and unrealized gains (losses) on investments		(0.20	)		0.21			(0.03	)		0.15			(0.03	)
Total from investment operations		(0.06	)		0.36			0.13			0.36			0.19
Distributions to shareholders from
Net investment income		(0.14	)		(0.15	)		(0.16	)		(0.21	)		(0.21	)
Net asset value, end of period		$3.16			$3.36			$3.15			$3.18			$3.03
Total return		(1.86	)%		11.61	%		4.02	%		12.25	%		6.30	%
Ratios to average net assets (annualized)
Gross expenses		0.98	%		0.96	%		0.96	%		0.95	%		0.95	%
Net expenses		0.80	%		0.80	%		0.80	%		0.80	%		0.80	%
Net investment income		4.27	%		4.57	%		4.91	%		6.73	%		6.79	%
Supplemental data
Portfolio turnover rate		55	%		40	%		95	%		37	%		70	%
Net assets, end of period (000s omitted)		$13,129			$20,177			$21,376			$37,469			$26,234

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

22 Wells Fargo Advantage High Yield Bond Fund Financial highlights

(For a share outstanding throughout each period)

INSTITUTIONAL CLASS	Year ended August 31, 20151
Net asset value, beginning of period		$3.33
Net investment income		0.12
Net realized and unrealized gains (losses) on investments		(0.16	)
Total from investment operations		(0.04	)
Distributions to shareholders from
Net investment income		(0.12	)
Net asset value, end of period		$3.17
Total return2		(1.31	)%
Ratios to average net assets (annualized)
Gross expenses		0.71	%
Net expenses		0.70	%
Net investment income		4.33	%
Supplemental data
Portfolio turnover rate		55	%
Net assets, end of period (000s omitted)		$4,847

¹  For the period from October 31, 2014 (commencement of class operations) to August 31, 2015

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 Wells Fargo Advantage High Yield Bond Fund 23

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. 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).

Debt securities are valued at the evaluated bid price provided by an independent pricing service or, if a reliable price is not available, the quoted bid price from an independent broker-dealer.

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

Equity securities that are not listed on a foreign or domestic exchange or market, but have a public trading market, are valued at the quoted bid price from an independent broker-dealer that the Management Valuation Team of Wells Fargo Funds Management, LLC (“Funds Management”) has determined is an acceptable source.

Investments in registered open-end investment companies are valued at net asset value. Interests in non-registered investment vehicles that are redeemable at net asset value are fair valued at net asset value when available.

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. 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 manager and/or subadviser. Unobservable inputs used in determining fair valuations are identified based on the type of security, taking into consideration factors utilized by market participants in valuing the investment, knowledge about the issuer and the current market environment.

Foreign currency translation

The accounting records of the Fund are maintained in U.S. dollars. The values of other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at rates provided by an independent foreign currency pricing source at a time each business day specified by the Management Valuation Team. Purchases and sales of securities, and income and expenses are converted at the rate of exchange on the respective dates of such transactions. Net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded and the U.S. dollar equivalent of the amounts actually paid or received. Net unrealized

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

foreign exchange gains and losses arise from changes in the fair value of assets and liabilities other than investments in securities resulting from changes in exchange rates. The changes in net assets arising from changes in exchange rates and the changes in net assets resulting from changes in market prices of securities are not separately presented. Such changes are included in net realized and unrealized gains or losses from investments.

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 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 is 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.

Notes to financial statements Wells Fargo Advantage High Yield Bond Fund 25

Dividend income is recognized on the ex-dividend date. Dividend income is recorded net of foreign taxes withheld where recovery of such taxes is not assured.

Distributions to shareholders

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

Federal and other taxes

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

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

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. At August 31, 2015, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Paid-in capital	Overdistributed net investment income	Accumulated net realized losses on investments
$(60,861)	$42,261	$18,600

As of August 31, 2015, the Fund had capital loss carryforwards available to offset future net realized capital gains in the amount of $53,607,343 with $16,356,651 expiring in 2016; and $37,250,692 expiring in 2017.

As of August 31, 2015, the Fund had current year deferred post-October capital losses consisting of $651,306 in short-term losses which will be recognized on the first day of the following 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. Class specific expenses are charged directly to that share class. Investment income, common expenses, and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.

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)

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

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

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of August 31, 2015:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in :
Common stocks
Consumer discretionary	$	1,612,100	$	0	$	0	$	1,612,100
Consumer staples		1,999,240		0		0		1,999,240
Energy		760,800		0		0		760,800
Financials		985,780		0		0		985,780
Health care		4,154,040		0		0		4,154,040
Industrials		662,400		0		0		662,400
Information technology		3,915,760		0		0		3,915,760
Utilities		6,905,740		0		0		6,905,740
Corporate bonds and notes		0		221,417,475		0		221,417,475
Yankee corporate bonds and notes		0		11,103,483		0		11,103,483
Short-term investments
Investment companies		3,067,086		2,329,763		0		5,396,849
Total assets	$	24,062,946	$	234,850,721	$	0	$	258,913,667

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At August 31, 2015, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

4. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the applicable subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.55% and declining to 0.43% as the average daily net assets of the Fund increase.

Prior to July 1, 2015, Funds Management provided advisory services pursuant to an investment advisory agreement and was entitled to receive an annual fee which started at 0.50% and declined to 0.40% as the average daily net assets of the Fund increased. In addition, fund-level administrative services were provided by Funds Management under a separate administration agreement at an annual fee which started at 0.05% and declined to 0.03% as the average daily net assets of the Fund increased. For financial statement purposes, the advisory fee and fund-level administration fee for the year ended August 31, 2015 have been included in management fee on the Statement of Operations.

For the year ended August 31, 2015, the management fee was equivalent to an annual rate of 0.55% 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.

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

Administration fees

Under a class-level administration agreement, Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Funds Management receives an annual 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 management 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, 2015 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, 0.80% for Administrator Class shares and 0.70% for Institutional Class shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

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 (“Funds Distributor”), the principal underwriter, at an annual rate of 0.75% of the average daily net assets of Class B and Class C shares.

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class B and Class C shares. For the year ended August 31, 2015, Funds Distributor received $4,217 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 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 U.S. government obligations (if any) and short-term securities, for the year ended August 31, 2015 were $154,987,430 and $178,868,582, respectively.

6. DERIVATIVE TRANSACTIONS

During the year ended August 31, 2015, the Fund entered into futures contracts to speculate on interest rates and to help manage the duration of the portfolio.

As of August 31, 2015, the Fund did not have any open futures contracts. The Fund had an average notional amount of $1,515,190 in short futures contracts during the year ended August 31, 2015.

The realized losses and change in unrealized gains (losses) on futures contracts are reflected in the Statement of Operations.

7. BANK BORROWINGS

The Trust (excluding the money market funds and certain other funds in the Trust) and Wells Fargo Variable Trust are parties to a $150,000,000 revolving credit agreement, 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

28 Wells Fargo Advantage High Yield Bond Fund Notes to financial statements

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 year ended August 31, 2015, the Fund paid $545 in commitment fees.

For the year ended August 31, 2015, there were no borrowings by the Fund under the agreement.

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid was $11,159,999 and $13,382,372 of ordinary income for the years ended August 31, 2015 and August 31, 2014, respectively.

As of August 31, 2015, the components of distributable earnings on a tax basis were as follows:

Unrealized losses	Post-October capital losses deferred	Capital loss carryforward
$(9,261,387)	$(651,306)	$(53,607,343)

9. INDEMNIFICATION

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

Report of independent registered public accounting firm Wells Fargo Advantage High Yield Bond Fund 29

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Advantage High Yield Bond Fund (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, as of August 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of August 31, 2015, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Advantage High Yield Bond Fund as of August 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

October 26, 2015

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

TAX INFORMATION

For corporate shareholders, pursuant to Section 854 of the Internal Revenue Code, 3.40% of ordinary income dividends qualify for the corporate dividends-received deduction for the fiscal year ended August 31, 2015.

Pursuant to Section 854 of the Internal Revenue Code, $414,632 of income dividends paid during the fiscal year ended August 31, 2015 has been designated as qualified dividend income (QDI).

For the fiscal year ended August 31, 2015, $9,999,236 has been designated as interest-related dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at 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 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 monthly on the Fund’s website (wellsfargoadvantagefunds.com), on a one-month delayed basis. In addition, top ten holdings information (excluding derivative positions) 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 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 31

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo Advantage family of funds, which consists of 133 mutual funds 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. 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 or longer	Other public company or investment company directorships during past 5 years
William R. Ebsworth (Born 1957)	Trustee, since 2015**	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director at Fidelity Management and Research Company and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. in Boston, Tokyo, and Hong Kong where he led a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Mr. Ebsworth is a CFA® charterholder and an Adjunct Lecturer, Finance, at Babson College.	Asset Allocation Trust
Jane A. Freeman (Born 1953)	Trustee, since 2015**	Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is Chair of Taproot Foundation (non-profit organization), a Board Member of Ruth Bancroft Garden (non-profit organization) and an inactive chartered financial analyst.	Asset Allocation Trust; Harding Loevner Funds; Russell Exchange Traded Funds Trust
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. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (charter school). Mr. Harris is a certified public accountant.	CIGNA 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
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

32 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 or longer	Other public company or investment company directorships during past 5 years
Timothy J. Penny (Born 1951)	Trustee, since 1996	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
Michael S. Scofield (Born 1943)	Trustee, since 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 complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust
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.

** William R. Ebsworth and Jane A. Freeman each became a Trustee effective January 1, 2015.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Karla M. Rabusch (Born 1959)	President, since 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.
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. Assistant General Counsel of Wells Fargo Bank, N.A. since 2013 and Vice President and Managing Counsel of Wells Fargo Bank N.A. from 1996 to 2013.
Debra Ann Early (Born 1964)	Chief Compliance Officer, since 2007	Executive Vice President of Wells Fargo Funds Management, LLC since 2014, Senior Vice President and Chief Compliance Officer from 2007 to 2014.
David Berardi (Born 1975)	Assistant Treasurer, since 2009	Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.
Jeremy DePalma1 (Born 1974)	Assistant Treasurer, since 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 and head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.

¹  Nancy Wiser acts as Treasurer of 72 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 61 funds and Assistant Treasurer of 72 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.

Other information (unaudited) Wells Fargo Advantage High Yield Bond Fund 33

BOARD CONSIDERATION OF INVESTMENT ADVISORY, INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment advisory and sub-advisory agreements. In this regard, at an in-person meeting held on May 19-20, 2015 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment advisory and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo Advantage High Yield Bond Fund (the “Fund”): (i) an investment advisory agreement (the “Advisory Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); (ii) an investment management agreement (the “Management Agreement”) with Funds Management; and (iii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the “Sub-Adviser”), an affiliate of Funds Management. The Management Agreement combines the terms of the Advisory Agreement with the terms of the Fund’s Amended and Restated Administration Agreement (the “Administration Agreement”) applicable to Fund-level administrative services. The Advisory Agreement, the Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”

At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in March 2015, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2015. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

After its deliberations, the Board unanimously approved the continuation of the Advisory Agreement for the period from June 1, 2015 through June 30, 2015, approved the Management Agreement for the period from July 1, 2015 through May 31, 2016, and approved the continuation of the Sub-Advisory Agreement for a one-year term through May 31, 2016. The Board also determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.

Nature, extent and quality of services

The Board received and considered various information regarding the nature, extent and quality of services provided to the Fund by Funds Management and the Sub-Adviser under the Advisory Agreements. This information included, among other things, a summary of the background and experience of senior management of Funds Management, and the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund. The Board noted that the services to be provided to the Fund pursuant to the Management Agreement combined the advisory services previously provided to the Fund pursuant to the Fund’s Advisory Agreement with the Fund-level administrative services previously provided to the Fund pursuant to the Fund’s Administration Agreement. The Board received a representation from Funds Management that combining these services would not result in any change to the nature or level of services provided by Funds Management to the Fund.

The Board evaluated the ability of Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory and supervisory personnel. The Board further considered the compliance

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

programs and compliance records of Funds Management and the Sub-Adviser. In addition, the Board took into account the full range of services provided to the Fund by Funds Management and its affiliates.

Fund performance and expenses

The Board considered the performance results for the Fund over various time periods ended March 31, 2015. The Board considered these results in comparison to the performance of funds in a universe that was determined by Lipper Inc. (“Lipper”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Lipper is an independent provider of investment company data. The Board received a description of the methodology used by Lipper to select the mutual funds in the performance Universe. The Board noted that the performance of the Fund (Administrator Class) was higher than the average performance of the Universe for all periods under review. The Board also noted that the performance of the Fund was higher than its benchmark, the BofAML US High Yield Master II Constrained Index, for the one-year period under review and lower than its benchmark for all other periods under review.

The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees (which reflect fee waivers, if any, and include advisory, administration and transfer agent fees), custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Lipper to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Lipper to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Lipper reports, the Board noted that the net operating expense ratios of the Fund were lower than the median net operating expense ratios of the expense Groups.

The Board took into account the Fund performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreement and Sub-Advisory Agreement and approve the Management Agreement.

Investment advisory and sub-advisory fee rates

The Board reviewed and considered the contractual investment advisory fee rates that are payable by the Fund to Funds Management for investment advisory services (the “Advisory Agreement Rates”), both on a stand-alone basis and on a combined basis with the Fund’s fund-level and class-level contractual administration fee rates (the “Management Rates”). The Board noted that the Management Rates include transfer agency and sub-transfer agency costs. The Board also noted that the fee rate to be paid by the Fund under the Management Agreement will incorporate the advisory fee and Fund-level administration fee previously payable separately by the Fund under the Fund’s Advisory Agreement and Administration Agreement with Funds Management. The Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Funds Management to the Sub-Adviser for investment sub-advisory services (the “Sub-Advisory Agreement Rates”).

Among other information reviewed by the Board was a comparison of the Management Rates of the Fund with those of other funds in the expense Groups at a common asset level. The Board noted that the Management Rates of the Fund were lower than the average rates for the Fund’s expense Groups for all share classes.

The Board also received and considered information about the portion of the total advisory fee that was retained by Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Funds Management and not delegated to or assumed by the Sub-Adviser, and about Funds Management’s on-going oversight services. However, given the affiliation between Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of the advisory fee between them.

The Board also received and considered information about the nature and extent of services offered and fee rates charged by Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing mutual funds compared with those associated with managing assets of non-mutual fund clients such as collective funds or institutional separate accounts.

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Funds Management under the Management Agreement and Advisory Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable, in light of the services covered by the Advisory Agreements.

Other information (unaudited) Wells Fargo Advantage High Yield Bond Fund 35

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also received and considered information concerning the profitability of the Sub-Adviser from providing services to the fund family as a whole, noting that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo profitability analysis.

Funds Management reported on the methodologies and estimates used in calculating profitability. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size and type of fund. Based on its review, the Board did not deem the profits reported by Funds Management or Wells Fargo from its services to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.

Economies of scale

With respect to possible economies of scale, the Board noted the existence of breakpoints in the Fund’s advisory and management fee structures, and the Fund’s administration fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered that fee waiver and expense reimbursement arrangements and competitive fee rates at the outset are means of sharing potential economies of scale with shareholders of the Fund and the fund family as a whole. The Board considered Funds Management’s view that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments that Funds Management incurs across the fund family as a whole.

The Board concluded that the Fund’s fee and expense arrangements, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.

Other benefits to Funds Management and the Sub-Adviser

The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that various affiliates of Funds Management may receive distribution-related fees, shareholder servicing payments and sub-transfer agency fees in respect of shares sold or held through them and services provided.

The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser, fees earned by Funds Management and the Sub-Adviser from managing a private investment vehicle for the fund family’s securities lending collateral and commissions earned by an affiliated broker from portfolio transactions.

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory Agreement for the period from June 1, 2015 through June 30, 2015, approved the Management Agreement for the period from July 1, 2015 through May 31, 2016, and approved the continuation of the Sub-Advisory Agreement for a one-year term through May 31, 2016. The Board also determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable.

36 Wells Fargo Advantage 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 —  Colombian 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

LIFER —  Long Inverse Floating Exempt Receipts

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

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —   Short Puttable Exempt Adjustable 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. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at wellsfargoadvantagefunds.com. 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, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

© 2015 Wells Fargo Funds Management, LLC. All rights reserved.

236804 10-15 A218/AR218 08-15

Wells Fargo Advantage Income Plus Fund

Annual Report

August 31, 2015

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	8
Portfolio of investments	9
Financial statements
Statement of assets and liabilities	19
Statement of operations	20
Statement of changes in net assets	21
Financial highlights	22
Notes to financial statements	28
Report of independent registered public accounting firm	35
Other information	36
List of abbreviations	42

The views expressed and any forward-looking statements are as of August 31, 2015, 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

Major central banks continued to inject liquidity into global banks and markets through various accommodative monetary policies, including quantitative easing.

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Advantage Income Plus Fund for the 12-month period that ended August 31, 2015. The period was marked by low interest rates, low oil prices, and moderate U.S. economic growth. Short-term investment-grade bonds, as measured by the Barclays U.S. 1–3 Year Government/Credit Bond Index¹ returned 0.81% during the period. Meanwhile, strong demand for high-quality, liquid assets kept returns on Treasury bills more modest; the Barclays 6-Month Treasury Bill Index² returned 0.15% during the period.

Major central banks continued to provide stimulus.

Major central banks continued to inject liquidity into global banks and markets through various accommodative monetary policies, including quantitative easing. In the U.S., the Federal Reserve (Fed) kept its key interest rate near zero in order to support the economy and the financial system. However, it set expectations for it to begin normalizing monetary policy with higher target ranges for the federal funds rate.

Meanwhile, European markets continued to benefit from the European Central Bank’s (ECB’s) willingness to maintain low interest rates. In addition to its targeted longer-term refinancing operations that are designed to increase bank lending, the ECB expanded its quantitative easing program to include the purchase of eurozone government bonds. In Japan, the Bank of Japan maintained an aggressive monetary program aimed at combating deflation.

Economic growth was moderate, and oil prices plummeted.

U.S. economic growth advanced during the reporting period, the unemployment rate ticked lower to 5.1% as of August 2015, and inflation remained below the Fed’s longer-run objective of a 2% pace. The period was also marked by lower oil prices, which began the reporting period near $90 per barrel but declined to $46 per barrel at the end of August 2015. While lower oil prices benefited consumers of oil products, the lower prices pressured companies within the energy sector.

Bond yields rose but remained low by historical standards.

Short-term interest rates increased during the reporting period, with a flattening in the shape of the short-term yield curve. During this time frame, 1-year Treasury bills rose 29 basis points (bps; 100 bps equals 1.00%) to yield 0.38%, 2-year Treasury note yields rose 21 bps to yield 0.74%, and 3-year Treasury note yields rose only 8 bps to yield 1.05%. Meanwhile, ultra-short-term yields were little changed at ultralow levels, anchored by the easy monetary policy.

Since the end of the financial crisis, structural changes in the fixed-income markets have reduced trading liquidity (the degree to which assets can be bought or sold without affecting the price). New regulations and capital requirements have caused traditional liquidity suppliers (banks and broker/dealers) to be more risk-averse and hold less inventory. Meanwhile, corporate-debt issuance has spiked as companies finance themselves at record-low yields, bond mutual funds

¹  The Barclays U.S. 1–3 Year Government/Credit Bond Index is the one- to three-year component of the Barclays U.S. Government/Credit Bond Index that includes securities in the Government and Credit Indexes. 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.

²  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.

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

hold larger amounts of this new debt supply, trading volumes are lower, and large-size trades are more difficult to execute. However, fixed-income markets appear to have functioned well over the past year with sufficient liquidity and muted volatility.

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

Periods of 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 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 in Wells Fargo Advantage Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.

Sincerely,

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Periods of 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.

Notice to shareholders

At a meeting held on August 11–12, 2015, the Board of Trustees of the Fund approved a change in the name of the Fund whereby the word “Advantage” will be removed from its name, effective December 15, 2015.

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.

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

Investment objective

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

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Ashok Bhatia, CFA

Christopher Y. Kauffman, CFA

Thomas M. Price, CFA

Janet Rilling CFA, CPA

Noah Wise, CFA

Average annual total returns¹ (%) as of August 31, 2015

		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		(3.53	)		2.56		4.65		1.04		3.51		5.14		0.94		0.85
Class B (STYBX)*	7-13-1998		(4.61	)		2.40		4.59		0.39		2.76		4.59		1.69		1.60
Class C (WFIPX)	7-13-1998		(0.65	)		2.74		4.36		0.35		2.74		4.36		1.69		1.60
Administrator Class (WIPDX)	7-30-2010		–			–		–		1.15		3.64		5.20		0.88		0.73
Institutional Class (WIPIX)	7-18-2008		–			–		–		1.37		3.84		5.37		0.61		0.59
Investor Class (WIPNX)	7-18-2008		–			–		–		1.10		3.50		5.13		0.97		0.86
Barclays U.S. Universal Bond Index4	–		–			–		–		1.13		3.34		4.66		–		–

* 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 a contingent deferred 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. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the Fund and its share price can be sudden and unpredictable. 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 5.

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

Growth of $10,000 investment⁵ as of August 31, 2015

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 Institutional Class shares prior to their inception reflects the performance of Class A shares and includes the higher expenses applicable to Class A 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. If these expenses had not been included, returns would have been higher.

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 manager has contractually committed through December 31, 2015, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver 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. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. 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 chart compares the performance of Class A shares for the most recent 10 years with the performance of the Barclays U.S. Universal Bond Index. The chart assumes a hypothetical investment of $10,000 in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 4.50%.

⁶  The ten largest holdings, excluding cash and cash equivalents, are calculated based on the value of the investments divided by total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

⁷  Amounts are calculated based on the total long-term investments of the Fund. These amounts are subject to change and may have changed since the date specified.

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

MANAGER’S DISCUSSION

Fund highlights

n The Fund underperformed its benchmark, the Barclays U.S. Universal Bond Index, for the 12-month period that ended August 31, 2015.

n The Fund was overweight high yield credit which hurt performance, especially the underperforming industrials sector. An underweight to U.S. Treasuries was also a detractor during the period.

n Positive yield spread from mortgage-related securities (relative to U.S. Treasuries) contributed to performance given the Funds’ overweight during the period, as did an underweight to sovereign securities.

Ten largest holdings6 (%) as of August 31, 2015
U.S. Treasury Note, 2.25%, 7-31-2018	3.33
FNMA, 4.50%, 9-14-2045	3.13
FNMA, 3.00%, 9-14-2045	2.98
GNMA, 3.50%, 9-21-2045	2.92
FNMA, 4.00%, 9-14-2045	2.54
U.S. Treasury Note, 1.00%, 8-31-2016	2.50
FHLMC, 3.50%, 9-14-2045	2.38
U.S. Treasury Note, 0.25%, 12-15-2015	2.08
U.S. Treasury Note, 1.00%, 5-31-2018	1.89
FNMA, 3.50%, 9-14-2045	1.85

The economic climate remained benign.

The U.S. economy featured trend-like growth, a steadily improving labor market, and generally stable inflation over the past 12 months. Real gross domestic product growth averaged about 2.7% in the most recent four quarters, as personal income gains supported consumption. In contrast, business investment softened, in part due to weakness in the energy industry brought on by a collapse in global oil prices.

The labor market continued to tighten over the past 12 months, as evidenced by a full percentage point decline in the unemployment rate to 5.1%. Nonfarm payrolls expanded at an average pace of about 240,000 per month over the period. Following a

persistent theme of this economic expansion, some of the improvement in the unemployment rate can be attributed to a decline in the labor force participation rate, which fell to 62.6% at the end of the period versus 62.8% a year ago.

The inflationary environment was mixed over the past 12 months, as the drop in oil prices pushed the year-over-year change in headline inflation down to 0.2% compared with a 1.7% headline inflation rate a year ago. Excluding food and energy, however, inflation rose 1.8%, which is basically in line with the average rate of core inflation over the past five years.

During the reporting period, the Federal Reserve’s (the Fed’s) monetary policy transitioned from maximum accommodation to the possible beginning of a tightening cycle. The Federal Open Market Committee (FOMC)—the Fed’s policymaking committee—completed its third round of asset purchases in the fourth quarter of 2014, though the Fed continued to reinvest the proceeds of maturing principal and interest payments from its existing portfolio. The Fed’s overnight rate targets remained unchanged throughout the period, with the key federal funds rate held to a range of 0.00% to 0.25%. There is a possibility that an initial hike in the target range will occur before the end of 2015, to be followed by a gradual normalization of monetary policy (as opposed to the loose monetary policy of recent years).

Please see footnotes on page 5.

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

Portfolio allocation⁷ as of August 31, 2015

The Fund remained overweight corporate securities and securitized debt.

During the period, the Fund maintained an overweight to investment-grade corporate and securitized debt and an underweight to U.S. Treasuries and agency debentures. We maintained the Fund’s duration and yield-curve positioning close to those of the Fund’s benchmark.

During the reporting period, a wider spread (or yield differential) for high-grade, high-yield credit, and commercial mortgage-backed securities relative to comparable Treasuries detracted from performance versus the benchmark. However, a positive spread for mortgage-related securities and corporate bonds contributed to performance during the period. An underweight to government securities also contributed, as did security selection in several sectors, including financials and holdings in agency mortgage-backed securities.

We expect a gradual rise in short-term interest rates.

In this environment of trend-like growth, stable core inflation, and still-accommodative monetary policy, we believe that the spread sectors—corporate credit, structured product, and select high-yield sectors—represent good value, particularly now that spreads have widened. In our view, the spread widening reflected concerns about supply and global macroeconomic uncertainty rather than deterioration in domestic fundamentals. That said, corporate credit metrics weakened in certain industries, such as mineral extraction and energy, over the period, and a management focus on rewarding shareholders has often resulted in additional leverage.

The relatively benign domestic economic conditions described above are likely to result in a gradual upward bias for interest rates. We believe FOMC is likely to raise its target rates by 0.75% to 1.00% over the next 12 months, a result which is largely reflected in the current yield curve. Should market rates diverge from the Fed’s policy path, we remain prepared to modify the Fund’s duration and yield-curve posture in order to take advantage of any opportunities.

Please see footnotes on page 5.

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 servicing 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 March 1, 2015 to August 31, 2015.

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 3-1-2015		Ending account value 8-31-2015		Expenses paid during the period¹		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	987.26	$	4.21		0.84	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.97	$	4.28		0.84	%
Class B
Actual	$	1,000.00	$	984.01	$	7.95		1.59	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.19	$	8.08		1.59	%
Class C
Actual	$	1,000.00	$	983.43	$	7.95		1.59	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.19	$	8.08		1.59	%
Administrator Class
Actual	$	1,000.00	$	987.79	$	3.61		0.72	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.58	$	3.67		0.72	%
Institutional Class
Actual	$	1,000.00	$	988.54	$	2.91		0.58	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.28	$	2.96		0.58	%
Investor Class
Actual	$	1,000.00	$	987.16	$	4.26		0.85	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.92	$	4.33		0.85	%

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—August 31, 2015 Wells Fargo Advantage Income Plus Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities: 29.75%
FHLB Series VN-2015 Class A		5.46	%		11-27-2015	$	621,813	$	629,129
FHLMC ±		1.90			1-1-2036		69,505		73,423
FHLMC %%		3.50			9-14-2045		12,585,000		13,013,873
FHLMC		4.00			6-1-2044		5,758,048		6,110,137
FHLMC		5.00			6-1-2036		566,997		625,662
FHLMC		5.00			8-1-2040		581,241		641,335
FHLMC		5.50			10-1-2017		171,357		176,118
FHLMC		5.50			8-1-2038		125,961		140,189
FHLMC		5.50			12-1-2038		1,113,364		1,238,371
FHLMC		5.50			6-1-2040		1,655,134		1,844,459
FHLMC		7.50			5-1-2038		3,867		4,028
FHLMC		8.00			2-1-2030		417		520
FHLMC Series 2013-K28 Class B ±144A		3.61			6-25-2046		1,970,000		1,944,686
FHLMC Series 2013-K30 Class B ±144A		3.67			6-25-2045		2,515,000		2,523,506
FHLMC Series 2013-K32 Class B ±144A		3.65			10-25-2046		1,875,000		1,881,244
FHLMC Series 2015-SC01 Class 1A		3.50			5-25-2045		2,182,831		2,207,015
FHLMC Series 2640 Class G		4.50			7-15-2018		623,501		644,763
FHLMC Series 3774 Class AB		3.50			12-15-2020		396,335		413,615
FHLMC Series K020 Class X1 ±(c)		1.59			5-25-2022		14,254,458		1,123,294
FHLMC Series T-42 Class A5		7.50			2-25-2042		2,245,491		2,670,873
FHLMC Series T-57 Class 2A1 ±		3.26			7-25-2043		68,023		71,760
FHLMC Series T-59 Class 2A1 ±		2.92			10-25-2043		325,749		336,957
FNMA ±		2.32			8-1-2036		113,335		120,881
FNMA ±		2.36			9-1-2036		52,027		55,355
FNMA ±		2.40			1-1-2036		226,525		241,939
FNMA		2.75			10-1-2022		2,250,000		2,303,610
FNMA %%		3.00			9-17-2030		3,355,000		3,480,288
FNMA %%		3.00			9-14-2045		16,180,000		16,250,788
FNMA		3.27			7-1-2022		1,282,596		1,356,189
FNMA %%		3.50			9-17-2030		6,615,000		6,968,489
FNMA %%		3.50			9-14-2045		9,725,000		10,077,718
FNMA		3.95			9-1-2021		430,057		468,952
FNMA		4.00			9-1-2024		216,044		226,265
FNMA %%		4.00			9-14-2045		13,030,000		13,840,814
FNMA		4.26			4-1-2021		2,822,052		3,120,576
FNMA		4.39			1-1-2020		1,548,569		1,701,025
FNMA		4.50			1-1-2026		2,575,931		2,678,231
FNMA %%		4.50			9-14-2045		15,790,000		17,106,880
FNMA		5.00			1-1-2024		238,094		257,313
FNMA		5.00			2-1-2036		57,601		63,519
FNMA		5.00			6-1-2040		201,776		223,528
FNMA		5.00			8-1-2040		3,687,876		4,085,442
FNMA		5.50			11-1-2023		122,110		134,120
FNMA		5.50			8-1-2034		200,407		225,904
FNMA		5.50			2-1-2035		60,232		67,827
FNMA		5.50			8-1-2038		226,524		253,030
FNMA		5.50			8-1-2038		678,476		766,433
FNMA		6.00			10-1-2037		1,074,297		1,216,913
FNMA		6.00			11-1-2037		80,713		91,082
FNMA %%		6.00			9-14-2045		795,000		898,867
FNMA		6.50			7-1-2036		44,284		50,827
FNMA		6.50			7-1-2036		20,027		23,978

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

10 Wells Fargo Advantage Income Plus Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA		6.50	%		11-1-2036	$	13,888	$	16,516
FNMA		6.50			7-1-2037		1,608,241		1,919,732
FNMA		7.00			12-1-2022		389,933		421,737
FNMA		7.00			7-1-2036		27,649		30,642
FNMA		7.00			11-1-2037		15,554		17,441
FNMA		7.50			5-1-2038		2,044		2,081
FNMA Series 2002-T12 Class A3		7.50			5-25-2042		8,957		10,994
FNMA Series 2003-W08 Class 4A ±		3.17			11-25-2042		238,436		249,659
FNMA Series 2003-W14 Class 2A ±		2.29			6-25-2045		184,343		190,831
FNMA Series 2003-W14 Class 2A ±		3.57			1-25-2043		414,992		422,138
FNMA Series 2004-W11 Class 1A3		7.00			5-25-2044		1,856,888		2,191,815
FNMA Series 2004-W15 Class 1A3		7.00			8-25-2044		1,156,586		1,336,948
GNMA		3.00			7-20-2045		6,030,834		6,119,523
GNMA %%		3.50			9-21-2045		15,320,000		15,951,351
GNMA		4.00			1-20-2045		3,776,963		4,009,784
GNMA		5.00			7-20-2040		1,494,434		1,660,967
GNMA		7.50			12-15-2029		786		897
GNMA Series 2008-22 Class XM ±(c)		0.74			2-16-2050		2,563,406		81,034
GNMA Series 2008-86 Class D		5.46			6-16-2040		1,044,219		1,081,054
Total Agency Securities (Cost $158,779,981)									162,386,884
Asset-Backed Securities: 1.10%
CVS Pass-Through Trust First Lien		6.04			12-10-2028		1,416,973		1,603,959
GE Equipment Transportation LLC Series 2015-1 Class A2		0.89			11-24-2017		840,000		840,515
GMF Floorplan Owner Revolving Trust Series 2015-1 Class A1 144A		1.65			5-15-2020		1,600,000		1,589,813
Volkswagen Auto Lease Trust Series 2015-A Class A2A		0.87			6-20-2017		1,993,980		1,993,790
Total Asset-Backed Securities (Cost $5,841,633)									6,028,077
Corporate Bonds and Notes: 28.37%
Consumer Discretionary: 3.67%
Auto Components: 0.72%
Delphi Corporation		5.00			2-15-2023		2,190,000		2,277,600
Lear Corporation		5.38			3-15-2024		1,320,000		1,339,800
ZF North America Capital Incorporated 144A		4.00			4-29-2020		325,000		324,951
									3,942,351
Automobiles: 0.38%
Ford Motor Company		7.45			7-16-2031		1,645,000		2,069,014
Diversified Consumer Services: 0.47%
Ashtead Capital Incorporated 144A		5.63			10-1-2024		795,000		789,538
Service Corporation International		8.00			11-15-2021		1,500,000		1,747,500
									2,537,038
Hotels, Restaurants & Leisure: 0.05%
Agua Caliente Band of Cahuilla Indians 144A		6.44			10-1-2016		298,000		290,374
Household Durables: 0.30%
Lennar Corporation		4.75			11-15-2022		845,000		840,775
Toll Brothers Finance Corporation		4.38			4-15-2023		810,000		795,825
									1,636,600

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

Portfolio of investments—August 31, 2015 Wells Fargo Advantage Income Plus Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Internet & Catalog Retail: 0.17%
Amazon.com Incorporated		4.95	%		12-5-2044	$	955,000	$	952,796
Media: 1.05%
CCO Holdings LLC		6.63			1-31-2022		1,300,000		1,368,250
CCO Safari II LLC 144A		6.48			10-23-2045		655,000		664,309
DISH DBS Corporation		5.13			5-1-2020		965,000		945,700
Gannett Company Incorporated 144A		5.50			9-15-2024		1,405,000		1,390,950
Sirius XM Radio Incorporated 144A		6.00			7-15-2024		1,320,000		1,359,600
									5,728,809
Specialty Retail: 0.47%
L Brands Incorporated		6.63			4-1-2021		1,020,000		1,147,500
Sally Beauty Holdings Incorporated		5.75			6-1-2022		1,360,000		1,414,400
									2,561,900
Textiles, Apparel & Luxury Goods: 0.06%
Levi Strauss & Company		5.00			5-1-2025		325,000		318,094
Consumer Staples: 0.51%
Beverages: 0.26%
Constellation Brands Incorporated		4.25			5-1-2023		1,385,000		1,393,310
Food Products: 0.25%
The JM Smucker Company 144A		4.38			3-15-2045		1,485,000		1,367,617
Energy: 3.46%
Energy Equipment & Services: 0.26%
SESI LLC		7.13			12-15-2021		1,410,000		1,406,701
Oil, Gas & Consumable Fuels: 3.20%
Anadarko Petroleum Corporation		4.50			7-15-2044		1,310,000		1,186,307
Concho Resources Incorporated		5.50			4-1-2023		820,000		809,750
Continental Resources Incorporated		4.50			4-15-2023		1,300,000		1,170,160
Energy Transfer Equity LP		7.50			10-15-2020		1,200,000		1,282,500
Energy Transfer Partners LP		6.13			12-15-2045		1,585,000		1,519,652
Enterprise Products Operating LLC		5.10			2-15-2045		1,135,000		1,046,831
Kinder Morgan Energy Partners LP		5.55			6-1-2045		1,305,000		1,121,790
Marathon Petroleum Corporation		4.75			9-15-2044		630,000		553,706
Newfield Exploration Company		5.38			1-1-2026		280,000		262,500
Newfield Exploration Company		5.63			7-1-2024		325,000		316,063
Occidental Petroleum Corporation		4.63			6-15-2045		1,175,000		1,163,896
Range Resources Corporation 144A		4.88			5-15-2025		645,000		583,725
Sabine Pass Liquefaction LLC		5.63			4-15-2023		1,300,000		1,262,625
Targa Resources Partners LP		4.25			11-15-2023		715,000		625,625
TC Pipelines LP		4.38			3-13-2025		1,880,000		1,793,832
Tesoro Logistics LP Corporation		6.13			10-15-2021		980,000		982,450
Whiting Petroleum Corporation		5.75			3-15-2021		650,000		581,750
Williams Partners LP		4.88			3-15-2024		1,285,000		1,198,185
									17,461,347

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

12 Wells Fargo Advantage Income Plus Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Financials: 10.09%
Banks: 3.15%
Australia and New Zealand Banking Group Limited 144A		2.40	%		11-23-2016	$	3,320,000	$	3,375,969
Bank of America Corporation		3.95			4-21-2025		1,950,000		1,885,506
Bank of America Corporation ±		6.10			12-29-2049		1,290,000		1,259,363
Bank of America Corporation		7.63			6-1-2019		2,480,000		2,927,417
CBA Capital Trust II ±144A		6.02			3-29-2049		1,300,000		1,313,000
CIT Group Incorporated		5.38			5-15-2020		1,650,000		1,724,250
Fifth Third Bank		2.15			8-20-2018		1,885,000		1,888,749
JPMorgan Chase & Company Series Q ±		5.15			12-29-2049		1,620,000		1,530,900
JPMorgan Chase & Company Series Z ±		5.30			12-29-2049		1,300,000		1,281,313
									17,186,467
Capital Markets: 1.41%
Blackstone Holdings Finance Company LLC 144A		5.88			3-15-2021		1,110,000		1,263,756
Goldman Sachs Group Incorporated		3.75			5-22-2025		1,635,000		1,626,693
Goldman Sachs Group Incorporated		5.15			5-22-2045		1,305,000		1,285,695
Goldman Sachs Group Incorporated ±		5.38			12-29-2049		1,295,000		1,269,100
Legg Mason Incorporated		5.63			1-15-2044		965,000		998,702
Morgan Stanley		4.35			9-8-2026		1,260,000		1,257,043
									7,700,989
Consumer Finance: 0.75%
Ally Financial Incorporated		5.13			9-30-2024		850,000		858,500
ERAC USA Finance LLC 144A		4.50			2-15-2045		1,950,000		1,782,864
Navient Corporation		8.00			3-25-2020		1,425,000		1,440,105
									4,081,469
Diversified Financial Services: 1.11%
General Electric Capital Corporation ±		6.38			11-15-2067		2,200,000		2,348,500
JBS USA LLC / JBS USA Finance Incorporated 144A		5.75			6-15-2025		1,310,000		1,270,700
McGraw Hill Financial Incorporated 144A		4.00			6-15-2025		2,530,000		2,446,287
									6,065,487
Insurance: 3.26%
Endurance Specialty Holdings Limited		7.00			7-15-2034		1,520,000		1,809,852
Genworth Holdings Incorporated		4.80			2-15-2024		390,000		313,950
Genworth Holdings Incorporated		7.63			9-24-2021		330,000		338,250
National Life Insurance Company of Vermont 144A		10.50			9-15-2039		1,315,000		2,020,008
Platinum Underwriters Finance Incorporated Series B		7.50			6-1-2017		1,730,000		1,879,519
Progressive Corporation ±		6.70			6-15-2067		2,050,000		2,080,750
Protective Life Corporation		8.45			10-15-2039		1,855,000		2,524,030
Prudential Financial Incorporated ±		8.88			6-15-2068		1,645,000		1,897,179
RenaissanceRe Finance Incorporated		3.70			4-1-2025		1,290,000		1,248,668
Transatlantic Holdings Incorporated		8.00			11-30-2039		1,300,000		1,721,424
ZFS Finance (USA) Trust II ±144A		6.45			12-15-2065		1,920,000		1,948,800
									17,782,430
Real Estate Management & Development: 0.17%
CBRE Services Incorporated		5.00			3-15-2023		940,000		948,297

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

Portfolio of investments—August 31, 2015 Wells Fargo Advantage Income Plus Fund 13

Security name	Interest rate			Maturity date		Principal		Value
REITs: 0.24%
Crown Castle International Corporation		5.25	%		1-15-2023	$	1,250,000	$	1,307,813
Health Care: 1.53%
Health Care Equipment & Supplies: 0.34%
Medtronic Incorporated 144A		4.63			3-15-2045		1,825,000		1,859,312
Health Care Providers & Services: 1.19%
DaVita HealthCare Partners Incorporated		5.00			5-1-2025		1,620,000		1,587,600
HCA Incorporated		6.50			2-15-2020		1,450,000		1,602,250
HealthSouth Corporation		5.75			11-1-2024		980,000		993,622
Tenet Healthcare Corporation		6.00			10-1-2020		1,540,000		1,647,800
UnitedHealth Group Incorporated		4.63			7-15-2035		660,000		688,409
									6,519,681
Industrials: 1.66%
Aerospace & Defense: 0.11%
DigitalGlobe Incorporated 144A		5.25			2-1-2021		635,000		609,600
Airlines: 0.41%
American Airlines Incorporated		3.70			11-1-2024		2,280,000		2,240,100
Commercial Services & Supplies: 0.12%
The ADT Corporation		3.50			7-15-2022		730,000		653,569
Professional Services: 0.37%
Verisk Analytics Incorporated		5.80			5-1-2021		1,810,000		2,020,356
Trading Companies & Distributors: 0.52%
International Lease Finance Corporation		8.25			12-15-2020		1,190,000		1,410,150
United Rentals North America Incorporated		5.75			11-15-2024		1,460,000		1,438,100
									2,848,250
Transportation Infrastructure: 0.13%
Burlington Northern Santa Fe LLC		4.70			9-1-2045		680,000		678,582
Information Technology: 2.20%
Communications Equipment: 0.25%
Motorola Solutions Incorporated		4.00			9-1-2024		1,465,000		1,346,518
Electronic Equipment, Instruments & Components: 1.09%
Arrow Electronics Incorporated		4.00			4-1-2025		2,410,000		2,354,435
Corning Incorporated		7.25			8-15-2036		1,417,000		1,726,467
Flextronics International Limited 144A		4.75			6-15-2025		1,960,000		1,896,124
									5,977,026
Semiconductors & Semiconductor Equipment: 0.25%
Micron Technology Incorporated		5.88			2-15-2022		1,385,000		1,364,225
Software: 0.49%
Activision Blizzard Incorporated 144A		5.63			9-15-2021		1,370,000		1,440,213
Autodesk Incorporated		4.38			6-15-2025		1,210,000		1,210,495
									2,650,708

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

14 Wells Fargo Advantage Income Plus Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Technology Hardware, Storage & Peripherals: 0.12%
Dell Incorporated		5.88	%		6-15-2019	$	650,000	$	674,310
Materials: 2.14%
Chemicals: 1.19%
Ashland Incorporated		4.75			8-15-2022		1,470,000		1,458,975
Rockwood Specialties Group Incorporated		4.63			10-15-2020		2,155,000		2,230,425
RPM International Incorporated		5.25			6-1-2045		1,305,000		1,258,169
W.R. Grace & Company 144A		5.63			10-1-2024		1,520,000		1,567,500
									6,515,069
Construction Materials: 0.21%
Vulcan Materials Company		4.50			4-1-2025		1,155,000		1,134,788
Containers & Packaging: 0.24%
Crown Americas Capital Corporation IV		4.50			1-15-2023		1,310,000		1,282,163
Metals & Mining: 0.39%
Alcoa Incorporated		5.13			10-1-2024		650,000		637,000
Steel Dynamics Incorporated		6.38			8-15-2022		1,465,000		1,512,613
									2,149,613
Paper & Forest Products: 0.11%
International Paper Company		7.30			11-15-2039		500,000		599,508
Telecommunication Services: 2.47%
Diversified Telecommunication Services: 1.24%
AT&T Incorporated		4.75			5-15-2046		1,890,000		1,723,247
CenturyLink Incorporated		5.63			4-1-2020		1,375,000		1,373,281
Frontier Communications Corporation		6.25			9-15-2021		575,000		524,688
Verizon Communications Incorporated		6.55			9-15-2043		2,670,000		3,152,640
									6,773,856
Wireless Telecommunication Services: 1.23%
Crown Castle Towers LLC 144A		3.22			5-15-2042		2,600,000		2,549,456
SBA Tower Trust 144A		3.72			4-15-2048		1,820,000		1,845,207
Sprint Corporation		7.88			9-15-2023		860,000		826,675
T-Mobile USA Incorporated		6.63			4-1-2023		1,435,000		1,496,705
									6,718,043
Utilities: 0.64%
Independent Power & Renewable Electricity Producers: 0.64%
Calpine Corporation 144A		5.88			1-15-2024		1,275,000		1,338,750
Harper Lake Solar Funding Corporation 144A		7.65			12-31-2018		1,110,914		1,183,123
The AES Corporation		5.50			3-15-2024		1,010,000		964,550
									3,486,423
Total Corporate Bonds and Notes (Cost $155,050,218)									154,840,603

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

Portfolio of investments—August 31, 2015 Wells Fargo Advantage Income Plus Fund 15

Security name	Interest rate			Maturity date		Principal		Value
Municipal Obligations: 3.29%
California: 0.69%
California Build America Bonds Stem Cell Research and Cures Series A (GO Revenue)		4.99	%		4-1-2039	$	1,505,000	$	1,548,194
San Jose CA Series B (Airport Revenue, AGM Insured)		6.60			3-1-2041		2,000,000		2,238,760
									3,786,954
Illinois: 0.63%
Chicago IL Series B (GO Revenue)		6.31			1-1-2044		675,000		578,333
Chicago IL Series B (GO Revenue)		7.38			1-1-2033		1,125,000		1,093,253
Cook County IL Series B (GO Revenue)		6.36			11-15-2033		1,745,000		1,754,039
									3,425,625
Michigan: 0.40%
Michigan Finance Authority Local Government Loan Program Project Series E (Miscellaneous Revenue)		7.19			11-1-2022		1,915,000		2,190,588
New Jersey: 0.69%
New Jersey EDA Series B (Lease Revenue, AGM Insured) ¤		0.00			2-15-2019		4,250,000		3,765,968
Puerto Rico: 0.37%
Puerto Rico Government Development Bank Series 1985 (Miscellaneous Revenue, National Insured)		4.75			12-1-2015		2,005,000		2,011,637
Texas: 0.35%
North Texas Tollway Authority Build America Bonds Sub Lien Series B-2 (Transportation Revenue)		8.91			2-1-2030		1,595,000		1,900,092
Washington: 0.16%
Metropolitan Washington DC Airports Authority Dulles Toll Road Revenue Build America Bonds (Transportation Revenue)		7.46			10-1-2046		695,000		895,709
Total Municipal Obligations (Cost $17,691,093)									17,976,573
Non-Agency Mortgage-Backed Securities: 3.22%
Banc of America Commercial Mortgage Securities Incorporated Series 2007-1 Class AMFX ±		5.48			1-15-2049		2,535,000		2,629,827
Bear Stearns Commercial Mortgage Securities Incorporated Series 2005-T20 Class A4A ±		5.26			10-12-2042		38,472		38,431
Citigroup Commercial Mortgage Trust Series 2015-GC27 Class A5		3.14			2-10-2048		2,315,000		2,267,216
Commercial Mortgage Trust Pass-Through Certificate Series 2014-CR20 Class 4		3.59			11-10-2047		3,033,000		3,098,762
Commercial Mortgage Trust Pass-Through Certificate Series 2014-LC17 Class A5		3.92			10-10-2047		1,270,000		1,330,848
Credit Suisse First Boston Commercial Mortgage Trust Series 1998-C2 Class AX ±(c)		0.42			11-15-2030		258,949		665
Financial Asset Securitization Incorporated Series 1997-NAM2 Class B2 (s)		7.88			7-25-2027		45,624		42,408
GAHR Commercial Mortgage Trust Series 2015-NRF Class AFX 144A		3.23			12-15-2019		1,600,000		1,629,936
JPMorgan Chase Commercial Mortgage Trust Series 2007-LDPX Class AM ±		5.46			1-15-2049		1,980,000		2,033,015
Lehman Brothers UBS Commercial Mortgage Trust Series 2006-C1 Class A4		5.16			2-15-2031		1,415,835		1,419,245
Mach One Trust Commercial Mortgage Backed Series 2004-1 Class X ±144A(c)(i)		0.55			5-28-2040		322,165		3,191
Morgan Stanley Bank of America Merrill Lynch Trust Series 2015-C23 Class A4		3.72			7-15-2050		3,000,000		3,068,616
Morgan Stanley Capital I Series 2004-RR2 Class X ±144A(c)		0.29			10-28-2033		158,504		1,126
Total Non-Agency Mortgage-Backed Securities (Cost $17,975,619)									17,563,286

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

16 Wells Fargo Advantage Income Plus Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
U.S. Treasury Securities: 20.87%
TIPS		0.38	%		7-15-2025	$	2,520,782	$	2,475,683
U.S. Treasury Bond		2.50			2-15-2045		2,675,000		2,422,616
U.S. Treasury Bond		2.75			11-15-2042		3,280,000		3,141,797
U.S. Treasury Bond		2.88			5-15-2043		5,370,000		5,268,335
U.S. Treasury Bond		4.50			2-15-2036		6,605,000		8,504,882
U.S. Treasury Note		0.25			12-15-2015		11,350,000		11,351,771
U.S. Treasury Note		0.25			5-15-2016		2,975,000		2,972,367
U.S. Treasury Note		0.38			11-15-2015		5,820,000		5,822,427
U.S. Treasury Note		0.38			3-15-2016		2,250,000		2,250,673
U.S. Treasury Note		1.00			8-31-2016		13,565,000		13,638,658
U.S. Treasury Note		1.00			3-15-2018		9,655,000		9,665,186
U.S. Treasury Note		1.00			5-31-2018		10,335,000		10,326,660
U.S. Treasury Note		1.38			7-31-2018		4,290,000		4,327,036
U.S. Treasury Note		1.38			4-30-2020		2,540,000		2,524,191
U.S. Treasury Note		1.63			7-31-2020		2,005,000		2,011,683
U.S. Treasury Note		2.13			6-30-2022		3,740,000		3,788,407
U.S. Treasury Note		2.13			5-15-2025		5,250,000		5,202,971
U.S. Treasury Note		2.25			7-31-2018		17,585,000		18,178,951
Total U.S. Treasury Securities (Cost $112,607,068)									113,874,294
Yankee Corporate Bonds and Notes: 6.67%
Consumer Discretionary: 0.46%
Automobiles: 0.18%
Fiat Chrysler Automobiles		5.25			4-15-2023		980,000		968,975
Media: 0.28%
Myriad International Holdings BV 144A		6.38			7-28-2017		1,445,000		1,532,316
Consumer Staples: 0.14%
Food Products: 0.14%
BRF SA 144A		3.95			5-22-2023		795,000		749,288
Energy: 1.02%
Energy Equipment & Services: 0.72%
Ensco plc		4.70			3-15-2021		2,605,000		2,385,203
Ensco plc «		5.20			3-15-2025		650,000		580,857
Noble Holding International Limited		6.95			4-1-2045		1,190,000		963,052
									3,929,112
Oil, Gas & Consumable Fuels: 0.30%
Ecopetrol SA		4.13			1-16-2025		1,860,000		1,639,032
Financials: 2.71%
Banks: 2.03%
BBVA Bancomer SA 144A		4.50			3-10-2016		1,720,000		1,742,360
BPCE SA 144A		5.15			7-21-2024		2,005,000		2,032,068
Credit Agricole SA 144A		4.38			3-17-2025		1,820,000		1,767,140
HSBC Holdings plc ±		6.38			12-29-2049		1,290,000		1,281,938

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

Portfolio of investments—August 31, 2015 Wells Fargo Advantage Income Plus Fund 17

Security name	Interest rate			Maturity date		Principal		Value
Banks (continued)
Nordea Bank AB ±144A		5.50	%		12-31-2049	$	1,800,000	$	1,782,000
Rabobank Nederland		4.38			8-4-2025		1,160,000		1,163,178
Royal Bank of Scotland Group plc		5.13			5-28-2024		1,295,000		1,305,789
									11,074,473
Capital Markets: 0.48%
Macquarie Group Limited 144A		6.00			1-14-2020		2,365,000		2,647,329
Diversified Financial Services: 0.20%
Schaeffler Finance BV 144A		4.75			5-15-2023		1,120,000		1,078,000
Health Care: 0.13%
Pharmaceuticals: 0.13%
Valeant Pharmaceuticals International Incorporated 144A		7.50			7-15-2021		650,000		697,938
Information Technology: 0.33%
Technology Hardware, Storage & Peripherals: 0.33%
Seagate Technology HDD Holdings		4.75			1-1-2025		1,915,000		1,819,754
Materials: 0.61%
Chemicals: 0.31%
Agrium Incorporated		4.13			3-15-2035		1,955,000		1,706,952
Metals & Mining: 0.30%
ArcelorMittal SA		6.13			6-1-2018		1,565,000		1,627,600
Telecommunication Services: 0.55%
Diversified Telecommunication Services: 0.15%
Virgin Media Finance plc 144A		6.38			4-15-2023		815,000		847,087
Wireless Telecommunication Services: 0.40%
Globo Communicacoes Participacoes SA 144A		4.88			4-11-2022		2,145,000		2,171,813
Utilities: 0.72%
Electric Utilities: 0.72%
Comision Federal de Electricidad 144A		6.13			6-16-2045		1,030,000		1,027,425
Western Power Distributions Holdings Limited 144A		7.38			12-15-2028		2,265,000		2,887,141
									3,914,566
Total Yankee Corporate Bonds and Notes (Cost $36,507,067)									36,404,235
	Yield					Shares
Short-Term Investments: 24.41%
Investment Companies: 24.26%
Securities Lending Cash Investments, LLC (l)(r)(u)		0.15					578,250		578,250
Wells Fargo Advantage Cash Investment Money Market Fund, Select Class (l)(u)##		0.15					131,791,787		131,791,787
									132,370,037

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

18 Wells Fargo Advantage Income Plus Fund Portfolio of investments—August 31, 2015

Security name	Yield			Maturity date		Principal		Value
U.S. Treasury Securities: 0.15%
U.S. Treasury Bill (z)#		0.01	%		9-17-2015	$	825,000	$	824,999
Total Short-Term Investments (Cost $133,195,034)									133,195,036

Total investments in securities (Cost $637,647,713) *	117.68	%		642,268,988
Other assets and liabilities, net	(17.68	)		(96,494,018	)
Total net assets	100.00	%	$	545,774,970

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

%% The security is issued on a when-issued basis.

144A The security may be resold in transactions exempt from registration, normally to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933.

(c) Investment in an interest-only security entitles holders to receive only the interest payments on the underlying mortgages. The principal amount shown is the notional amount of the underlying mortgages. The rate represents the coupon rate.

¤ The security is issued in zero coupon form with no periodic interest payments.

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

(i) Illiquid security for which the designation as illiquid is unaudited.

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

(l) The security represents an affiliate of the Fund as defined in the Investment Company Act of 1940.

(r) The investment is a non-registered investment vehicle purchased with cash collateral received from securities on loan.

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

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

(z) Zero coupon security. The 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 $637,877,660 and unrealized gains (losses) consists of:

Gross unrealized gains	$	10,543,571
Gross unrealized losses		(6,152,243	)
Net unrealized gains	$	4,391,328

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

Statement of assets and liabilities—August 31, 2015 Wells Fargo Advantage Income Plus Fund 19

Assets
Investments
In unaffiliated securities (including $566,826 of securities loaned), at value (cost $505,277,676)	$	509,898,951
In affiliated securities, at value (cost $132,370,037)		132,370,037
Total investments, at value (cost $637,647,713)		642,268,988
Principal paydown receivable		2,322
Receivable for Fund shares sold		851,766
Receivable for interest		3,919,650
Receivable for daily variation margin on open futures contracts		22,500
Receivable for securities lending income		409
Prepaid expenses and other assets		196,001
Total assets		647,261,636
Liabilities
Payable for investments purchased		99,968,840
Payable for Fund shares redeemed		360,943
Payable upon receipt of securities loaned		578,250
Payable for daily variation margin on open futures contracts		118,469
Management fee payable		173,561
Distribution fees payable		13,371
Administration fees payable		70,731
Accrued expenses and other liabilities		202,501
Total liabilities		101,486,666
Total net assets	$	545,774,970
NET ASSETS CONSIST OF
Paid-in capital	$	552,437,582
Undistributed net investment income		164,350
Accumulated net realized losses on investments		(11,081,175	)
Net unrealized gains on investments		4,254,213
Total net assets	$	545,774,970
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	223,755,362
Shares outstanding – Class A1		18,426,088
Net asset value per share – Class A		$12.14
Maximum offering price per share – Class A2		$12.71
Net assets – Class B	$	389,136
Shares outstanding – Class B1		31,956
Net asset value per share – Class B		$12.18
Net assets – Class C	$	20,380,781
Shares outstanding – Class C1		1,678,673
Net asset value per share – Class C		$12.14
Net assets – Administrator Class	$	85,430,516
Shares outstanding – Administrator Class1		7,046,292
Net asset value per share – Administrator Class		$12.12
Net assets – Institutional Class	$	54,418,994
Shares outstanding – Institutional Class1		4,477,331
Net asset value per share – Institutional Class		$12.15
Net assets – Investor Class	$	161,400,181
Shares outstanding – Investor Class1		13,291,717
Net asset value per share – Investor Class		$12.14

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.

20 Wells Fargo Advantage Income Plus Fund Statement of operations—year ended August 31, 2015

Investment income
Interest	$	13,303,048
Income from affiliated securities		134,306
Securities lending income, net		7,945
Total investment income		13,445,299
Expenses
Management fee		2,376,744
Administration fees
Class A		298,991
Class B		928
Class C		35,438
Administrator Class		98,055
Institutional Class		44,913
Investor Class		316,044
Shareholder servicing fees
Class A		467,173
Class B		1,449
Class C		55,371
Administrator Class		245,137
Investor Class		406,929
Distribution fees
Class B		4,348
Class C		166,113
Custody and accounting fees		38,914
Professional fees		64,384
Registration fees		80,298
Shareholder report expenses		66,099
Trustees’ fees and expenses		10,811
Other fees and expenses		16,088
Total expenses		4,794,227
Less: Fee waivers and/or expense reimbursements		(418,274	)
Net expenses		4,375,953
Net investment income		9,069,346
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		6,445,411
Futures transactions		1,675,910
Net realized gains on investments		8,121,321
Net change in unrealized gains (losses) on:
Unaffiliated securities		(11,228,514	)
Futures transactions		(420,063	)
Net change in unrealized gains (losses) on investments		(11,648,577	)
Net realized and unrealized gains (losses) on investments		(3,527,256	)
Net increase in net assets resulting from operations	$	5,542,090

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

Statement of changes in net assets Wells Fargo Advantage Income Plus Fund 21

	Year ended August 31, 2015						Year ended August 31, 2014
Operations
Net investment income				$	9,069,346					$	9,774,480
Net realized gains on investments					8,121,321						10,554,149
Net change in unrealized gains (losses) on investments					(11,648,577	)					11,729,731
Net increase in net assets resulting from operations					5,542,090						32,058,360
Distributions to shareholders from
Net investment income
Class A					(3,199,153	)					(2,785,204	)
Class B					(5,109	)					(13,132	)
Class C					(204,128	)					(338,257	)
Administrator Class					(1,758,958	)					(2,257,480	)
Institutional Class					(1,097,205	)					(736,477	)
Investor Class					(2,779,423	)					(3,450,416	)
Net realized gains
Class A					(280,520	)					0
Class B					(1,076	)					0
Class C					(36,727	)					0
Administrator Class					(161,370	)					0
Institutional Class					(105,379	)					0
Investor Class					(272,008	)					0
Total distributions to shareholders					(9,901,056	)					(9,580,966	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		11,032,995			135,376,151			1,160,901			13,868,244
Class B		3,027			37,063			1,314			15,572
Class C		178,733			2,193,314			121,464			1,456,327
Administrator Class		3,503,950			43,239,853			1,398,185			16,701,941
Institutional Class		2,939,036			35,874,535			492,530			5,877,370
Investor Class		1,859,847			22,905,250			1,209,453			14,530,064
					239,626,166						52,449,518
Reinvestment of distributions
Class A		261,460			3,206,823			200,967			2,404,891
Class B		467			5,740			1,010			12,092
Class C		14,426			176,818			21,094			252,249
Administrator Class		156,012			1,910,601			186,098			2,223,323
Institutional Class		91,910			1,128,770			55,722			667,499
Investor Class		231,754			2,842,217			264,594			3,166,726
					9,270,969						8,726,780
Payment for shares redeemed
Class A		(3,464,196	)		(42,471,695	)		(3,358,614	)		(40,016,695	)
Class B		(32,941	)		(404,956	)		(77,587	)		(923,855	)
Class C		(494,066	)		(6,052,812	)		(710,658	)		(8,466,146	)
Administrator Class		(4,935,292	)		(60,666,579	)		(2,289,649	)		(27,320,284	)
Institutional Class		(1,202,777	)		(14,829,017	)		(574,594	)		(6,862,926	)
Investor Class		(2,576,230	)		(31,581,304	)		(2,494,085	)		(29,776,812	)
					(156,006,363	)					(113,366,718	)
Net increase (decrease) in net assets resulting from capital share transactions					92,890,772						(52,190,420	)
Total increase (decrease) in net assets					88,531,806						(29,713,026	)
Net assets
Beginning of period					457,243,164						486,956,190
End of period				$	545,774,970					$	457,243,164
Undistributed net investment income				$	164,350					$	138,830

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)

	Year ended August 31
CLASS A	2015			2014			2013			2012			2011
Net asset value, beginning of period		$12.24			$11.66			$12.57			$12.04			$12.00
Net investment income		0.21	1		0.26			0.25			0.30			0.37	1
Net realized and unrealized gains (losses) on investments		(0.08	)		0.57			(0.51	)		0.55			0.18
Total from investment operations		0.13			0.83			(0.26	)		0.85			0.55
Distributions to shareholders from
Net investment income		(0.21	)		(0.25	)		(0.25	)		(0.29	)		(0.42	)
Net realized gains		(0.02	)		0.00			(0.40	)		(0.03	)		(0.09	)
Total distributions to shareholders		(0.23	)		(0.25	)		(0.65	)		(0.32	)		(0.51	)
Net asset value, end of period		$12.14			$12.24			$11.66			$12.57			$12.04
Total return2		1.04	%		7.16	%		(2.25	)%		7.19	%		4.76	%
Ratios to average net assets (annualized)
Gross expenses		0.91	%		0.93	%		0.91	%		0.89	%		0.88	%
Net expenses		0.84	%		0.85	%		0.87	%		0.88	%		0.88	%
Net investment income		1.69	%		2.10	%		2.00	%		2.42	%		3.17	%
Supplemental data
Portfolio turnover rate		322	%		267	%		256	%		256	%		215	%
Net assets, end of period (000s omitted)		$223,755			$129,646			$146,836			$172,577			$163,499

¹  Calculated based upon average shares outstanding

²  Total return calculations do not include any sales charges.

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)

	Year ended August 31
CLASS B	2015			2014			2013			2012			2011
Net asset value, beginning of period		$12.26			$11.68			$12.59			$12.05			$12.01
Net investment income		0.12	1		0.16	1		0.15	1		0.21	1		0.29	1
Net realized and unrealized gains (losses) on investments		(0.07	)		0.57			(0.51	)		0.56			0.17
Total from investment operations		0.05			0.73			(0.36	)		0.77			0.46
Distributions to shareholders from
Net investment income		(0.11	)		(0.15	)		(0.15	)		(0.20	)		(0.33	)
Net realized gains		(0.02	)		0.00			(0.40	)		(0.03	)		(0.09	)
Total distributions to shareholders		(0.13	)		(0.15	)		(0.55	)		(0.23	)		(0.42	)
Net asset value, end of period		$12.18			$12.26			$11.68			$12.59			$12.05
Total return2		0.39	%		6.30	%		(3.00	)%		6.45	%		3.97	%
Ratios to average net assets (annualized)
Gross expenses		1.66	%		1.68	%		1.66	%		1.63	%		1.63	%
Net expenses		1.59	%		1.60	%		1.62	%		1.62	%		1.63	%
Net investment income		0.95	%		1.35	%		1.24	%		1.71	%		2.40	%
Supplemental data
Portfolio turnover rate		322	%		267	%		256	%		256	%		215	%
Net assets, end of period (000s omitted)		$389			$753			$1,597			$2,823			$4,054

¹  Calculated based upon average shares outstanding

²  Total return calculations do not include any sales charges.

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)

	Year ended August 31
CLASS C	2015			2014			2013			2012			2011
Net asset value, beginning of period		$12.23			$11.65			$12.56			$12.03			$12.00
Net investment income		0.12	1		0.16			0.15			0.21			0.29	1
Net realized and unrealized gains (losses) on investments		(0.08	)		0.58			(0.51	)		0.55			0.16
Total from investment operations		0.04			0.74			(0.36	)		0.76			0.45
Distributions to shareholders from
Net investment income		(0.11	)		(0.16	)		(0.15	)		(0.20	)		(0.33	)
Net realized gains		(0.02	)		0.00			(0.40	)		(0.03	)		(0.09	)
Total distributions to shareholders		(0.13	)		(0.16	)		(0.55	)		(0.23	)		(0.42	)
Net asset value, end of period		$12.14			$12.23			$11.65			$12.56			$12.03
Total return2		0.35	%		6.35	%		(3.00	)%		6.40	%		3.92	%
Ratios to average net assets (annualized)
Gross expenses		1.66	%		1.68	%		1.66	%		1.64	%		1.63	%
Net expenses		1.59	%		1.60	%		1.62	%		1.63	%		1.63	%
Net investment income		0.95	%		1.35	%		1.24	%		1.65	%		2.41	%
Supplemental data
Portfolio turnover rate		322	%		267	%		256	%		256	%		215	%
Net assets, end of period (000s omitted)		$20,381			$24,212			$29,692			$41,259			$30,364

¹  Calculated based upon average shares outstanding

²  Total return calculations do not include any sales charges.

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)

	Year ended August 31
ADMINISTRATOR CLASS	2015			2014			2013			2012			2011
Net asset value, beginning of period		$12.22			$11.64			$12.55			$12.02			$12.00
Net investment income		0.22			0.27	1		0.26	1		0.33			0.39	1
Net realized and unrealized gains (losses) on investments		(0.08	)		0.57			(0.51	)		0.54			0.16
Total from investment operations		0.14			0.84			(0.25	)		0.87			0.55
Distributions to shareholders from
Net investment income		(0.22	)		(0.26	)		(0.26	)		(0.31	)		(0.44	)
Net realized gains		(0.02	)		0.00			(0.40	)		(0.03	)		(0.09	)
Total distributions to shareholders		(0.24	)		(0.26	)		(0.66	)		(0.34	)		(0.53	)
Net asset value, end of period		$12.12			$12.22			$11.64			$12.55			$12.02
Total return		1.15	%		7.31	%		(2.11	)%		7.37	%		4.82	%
Ratios to average net assets (annualized)
Gross expenses		0.85	%		0.87	%		0.85	%		0.83	%		0.82	%
Net expenses		0.72	%		0.72	%		0.72	%		0.73	%		0.75	%
Net investment income		1.82	%		2.24	%		2.14	%		2.53	%		3.29	%
Supplemental data
Portfolio turnover rate		322	%		267	%		256	%		256	%		215	%
Net assets, end of period (000s omitted)		$85,431			$101,653			$105,094			$162,067			$90,063

¹  Calculated based upon average shares outstanding

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

26 Wells Fargo Advantage Income Plus Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
INSTITUTIONAL CLASS	2015			2014			2013			2012			2011
Net asset value, beginning of period		$12.24			$11.67			$12.57			$12.03			$12.00
Net investment income		0.24	1		0.28			0.27	1		0.34			0.41	1
Net realized and unrealized gains (losses) on investments		(0.07	)		0.57			(0.49	)		0.56			0.17
Total from investment operations		0.17			0.85			(0.22	)		0.90			0.58
Distributions to shareholders from
Net investment income		(0.24	)		(0.28	)		(0.28	)		(0.33	)		(0.46	)
Net realized gains		(0.02	)		0.00			(0.40	)		(0.03	)		(0.09	)
Total distributions to shareholders		(0.26	)		(0.28	)		(0.68	)		(0.36	)		(0.55	)
Net asset value, end of period		$12.15			$12.24			$11.67			$12.57			$12.03
Total return		1.37	%		7.36	%		(1.89	)%		7.62	%		5.04	%
Ratios to average net assets (annualized)
Gross expenses		0.58	%		0.60	%		0.56	%		0.56	%		0.55	%
Net expenses		0.58	%		0.58	%		0.56	%		0.56	%		0.55	%
Net investment income		1.95	%		2.38	%		2.26	%		2.74	%		3.53	%
Supplemental data
Portfolio turnover rate		322	%		267	%		256	%		256	%		215	%
Net assets, end of period (000s omitted)		$54,419			$32,438			$31,221			$161,191			$161,276

¹  Calculated based upon average shares outstanding

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

Financial highlights Wells Fargo Advantage Income Plus Fund 27

(For a share outstanding throughout each period)

	Year ended August 31
INVESTOR CLASS	2015			2014			2013			2012			2011
Net asset value, beginning of period		$12.23			$11.66			$12.57			$12.03			$12.00
Net investment income		0.21			0.25			0.24			0.30			0.37	1
Net realized and unrealized gains (losses) on investments		(0.08	)		0.57			(0.51	)		0.56			0.17
Total from investment operations		0.13			0.82			(0.27	)		0.86			0.54
Distributions to shareholders from
Net investment income		(0.20	)		(0.25	)		(0.24	)		(0.29	)		(0.42	)
Net realized gains		(0.02	)		0.00			(0.40	)		(0.03	)		(0.09	)
Total distributions to shareholders		(0.22	)		(0.25	)		(0.64	)		(0.32	)		(0.51	)
Net asset value, end of period		$12.14			$12.23			$11.66			$12.57			$12.03
Total return		1.10	%		7.06	%		(2.26	)%		7.25	%		4.67	%
Ratios to average net assets (annualized)
Gross expenses		0.93	%		0.95	%		0.93	%		0.91	%		0.90	%
Net expenses		0.85	%		0.86	%		0.89	%		0.90	%		0.90	%
Net investment income		1.69	%		2.10	%		1.98	%		2.40	%		3.14	%
Supplemental data
Portfolio turnover rate		322	%		267	%		256	%		256	%		215	%
Net assets, end of period (000s omitted)		$161,400			$168,541			$172,516			$195,346			$189,051

¹  Calculated based upon average shares outstanding

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

28 Wells Fargo Advantage Income Plus Fund Notes to financial statements

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

Debt securities are valued at the evaluated bid price provided by an independent pricing service or, if a reliable price is not available, the quoted bid price from an independent broker-dealer.

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. Interests in non-registered investment vehicles that are redeemable at net asset value are fair valued at net asset value when available.

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 manager 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 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.

Notes to financial statements Wells Fargo Advantage Income Plus Fund 29

The Fund lends its securities through an unaffiliated securities lending agent. Cash collateral received in connection with its securities lending transactions is invested in 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 is 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.

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally

30 Wells Fargo Advantage Income Plus Fund Notes to financial statements

accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The primary permanent differences causing such reclassifications are due to expiration of capital loss carryforwards. At August 31, 2015, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Paid-in capital	Undistributed net investment income	Accumulated net realized losses on investments
$(8,177,207)	$150	$8,177,057

As of August 31, 2015, the Fund had capital loss carryforwards available to offset future net realized capital gains in the amount of $12,603,110 with $6,301,555 expiring in 2016 and $6,301,555 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. Class specific expenses are charged directly to that share class. Investment income, common expenses, and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.

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 Wells Fargo Advantage Income Plus Fund 31

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of August 31, 2015:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Agency securities	$	0	$	162,386,884	$	0	$	162,386,884
Asset-backed securities		0		6,028,077		0		6,028,077
Corporate bonds and notes		0		154,840,603		0		154,840,603
Municipal obligations		0		17,976,573		0		17,976,573
Non-agency mortgage backed securities		0		17,563,286		0		17,563,286
U.S. Treasury securities		113,874,294		0		0		113,874,294
Yankee corporate bonds and notes		0		36,404,235		0		36,404,235
Short-term investments
Investment companies		131,791,787		578,250		0		132,370,037
U.S. Treasury securities		824,999		0		0		824,999
		246,491,080		395,777,908		0		642,268,988
Futures contracts		22,500		0		0		22,500
Total assets	$	246,513,580	$	395,777,908	$	0	$	642,291,488
Liabilities
Futures contracts	$	118,469	$	0	$	0	$	118,469
Total liabilities	$	118,469	$	0	$	0	$	118,469

Futures contracts are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. All other assets and liabilities are reported at their market value at measurement date.

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At August 31, 2015, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

4. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the applicable subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.45% and declining to 0.33% as the average daily net assets of the Fund increase.

Prior to July 1, 2015, Funds Management provided advisory services pursuant to an investment advisory agreement and was entitled to receive an annual fee which started at 0.40% and declined to 0.30% as the average daily net assets of the Fund increased. In addition, prior to July 1, 2015, fund-level administrative services were provided by Funds Management under a separate administration agreement at an annual fee which started at 0.05% and declined to 0.03% as the average daily net assets of the Fund increased. For financial statement purposes, the advisory fee and fund-level administration fee for the year ended August 31, 2015 have been included in management fee on the Statement of Operations.

For the year ended August 31, 2015, the management fee was equivalent to an annual rate of 0.45% 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

32 Wells Fargo Advantage Income Plus Fund Notes to financial statements

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 fees

Under a class-level administration agreement, Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Funds Management receives an annual 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 management 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, 2015 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. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

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 (“Funds Distributor”), the principal underwriter, at an annual rate of 0.75% of the average daily net assets of Class B and Class C shares.

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class B and Class C shares. For the year ended August 31, 2015, Funds Distributor received $2,865 from the sale of Class A shares and $76 and $55 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 short-term securities, for the year ended August 31, 2015 were as follows:

Purchases at cost		Sales proceeds
U.S. government	Non-U.S. government	U.S. government	Non-U.S. government
$1,451,254,279	$229,105,077	$1,455,793,110	$150,761,168

6. DERIVATIVE TRANSACTIONS

During the year ended August 31, 2015, the Fund entered into futures contracts to speculate on interest rates and to help manage the duration of the portfolio.

Notes to financial statements Wells Fargo Advantage Income Plus Fund 33

At August 31, 2015, the Fund had long and short futures contracts outstanding as follows:

Expiration date	Counterparty	Contracts	Type	Contract value at August 31, 2015		Unrealized gains (losses)
12-21-2015	JPMorgan	68 Long	U.S. Treasury Bonds	$	10,771,625	$	(58,240	)
12-21-2015	JPMorgan	9 Short	U.S. Treasury Bonds		1,391,625		43,225
12-21-2015	JPMorgan	122 Short	10-Year U.S. Treasury Notes		15,501,625		194,206
12-31-2015	JPMorgan	441 Long	5-Year U.S. Treasury Notes		52,671,938		(421,166	)
12-31-2015	JPMorgan	210 Long	2-Year U.S. Treasury Notes		45,878,438		(125,087	)

The Fund had an average notional amount of $102,121,653 and $8,437,987 in long and short futures contracts, respectively, during the year ended August 31, 2015.

On August 31, 2015, the cumulative unrealized losses on futures contracts in the amount of $367,062 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 derivatives. Cash collateral that has been pledged to cover obligations of the Fund under ISDA Master Agreements or similar agreements, 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 of assets
Futures – variation margin	JPMorgan	$	22,500	$	(22,500	)	$	0	$	0

Derivative type	Counterparty	Gross amounts of liabilities in the Statement of Assets and Liabilities		Amounts subject to netting agreements			Collateral pledged1			Net amount of liabilities
Futures – variation margin	JPMorgan	$	118,469	$	(22,500	)	$	(95,969	)	$	0

¹  Collateral pledged within this table is limited to the collateral for the net transaction with the counterparty.

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, 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 year ended August 31, 2015, the Fund paid $561 in commitment fees.

For the year ended August 31, 2015, there were no borrowings by the Fund under the agreement.

34 Wells Fargo Advantage Income Plus Fund Notes to financial statements

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended August 31, 2015 and August 31, 2014 were as follows:

	Year ended August 31,
	2015		2014
Ordinary income	$	9,043,976	$	9,580,966
Long-term capital gain		857,080		0

As of August 31, 2015, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Undistributed long-term gain	Unrealized gains	Capital loss carryforward
$274,815	$1,559,175	$4,127,175	$(12,603,110)

9. INDEMNIFICATION

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

10. SUBSEQUENT DISTRIBUTIONS

On September 24, 2015, the Fund declared distributions from net investment income to shareholders of record on September 23, 2015. The per share amounts payable on September 25, 2015 were as follows:

	Net investment income
Class A		$0.01595
Class B		0.00969
Class C		0.00984
Administrator Class		0.01688
Institutional Class		0.01806
Investor Class		0.01588

On October 21, 2015, the Fund declared distributions from net investment income to shareholders of record on October 20, 2015. The per share amounts payable on October 22, 2015 were as follows:

	Net investment income
Class A		$0.02464
Class B		0.01627
Class C		0.01686
Administrator Class		0.02604
Institutional Class		0.02790
Investor Class		0.02490

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.

Report of independent registered public accounting firm Wells Fargo Advantage Income Plus Fund 35

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Advantage Income Plus Fund (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, as of August 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of August 31, 2015, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Advantage Income Plus Fund as of August 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

October 26, 2015

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

TAX INFORMATION

Pursuant to Section 852 of the Internal Revenue Code, $857,080 was designated as long-term capital gain distributions for the fiscal year ended August 31, 2015.

For the fiscal year ended August 31, 2015, $7,513,446 has been designated as interest-related dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

For the fiscal year ended August 31, 2015, 11.27% of the ordinary income distributed was derived from interest on U.S. government securities.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at 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 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 monthly on the Fund’s website (wellsfargoadvantagefunds.com), on a one-month delayed basis. In addition, top ten holdings information (excluding derivative positions) 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 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 37

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo Advantage family of funds, which consists of 133 mutual funds 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. 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 or longer	Other public company or investment company directorships during past 5 years
William R. Ebsworth (Born 1957)	Trustee, since 2015**	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director at Fidelity Management and Research Company and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. in Boston, Tokyo, and Hong Kong where he led a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Mr. Ebsworth is a CFA ® charterholder and an Adjunct Lecturer, Finance, at Babson College.	Asset Allocation Trust
Jane A. Freeman (Born 1953)	Trustee, since 2015**	Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is Chair of Taproot Foundation (non-profit organization), a Board Member of Ruth Bancroft Garden (non-profit organization) and an inactive chartered financial analyst.	Asset Allocation Trust; Harding Loevner Funds; Russell Exchange Traded Funds Trust
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. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (charter school). Mr. Harris is a certified public accountant.	CIGNA 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
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

38 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 or longer	Other public company or investment company directorships during past 5 years
Timothy J. Penny (Born 1951)	Trustee, since 1996	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
Michael S. Scofield (Born 1943)	Trustee, since 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 complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust
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.

** William R. Ebsworth and Jane A. Freeman each became a Trustee effective January 1, 2015.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Karla M. Rabusch (Born 1959)	President, since 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.
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. Assistant General Counsel of Wells Fargo Bank, N.A. since 2013 and Vice President and Managing Counsel of Wells Fargo Bank N.A. from 1996 to 2013.
Debra Ann Early (Born 1964)	Chief Compliance Officer, since 2007	Executive Vice President of Wells Fargo Funds Management, LLC since 2014, Senior Vice President and Chief Compliance Officer from 2007 to 2014.
David Berardi (Born 1975)	Assistant Treasurer, since 2009	Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.
Jeremy DePalma1 (Born 1974)	Assistant Treasurer, since 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 and head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.

¹ Nancy Wiser acts as Treasurer of 72 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 61 funds and Assistant Treasurer of 72 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.

Other information (unaudited) Wells Fargo Advantage Income Plus Fund 39

BOARD CONSIDERATION OF INVESTMENT ADVISORY, INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment advisory and sub-advisory agreements. In this regard, at an in-person meeting held on May 19-20, 2015 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment advisory and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo Advantage Income Plus Fund (the “Fund”): (i) an investment advisory agreement (the “Advisory Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); (ii) an investment management agreement (the “Management Agreement”) with Funds Management; and (iii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the “Sub-Adviser”), an affiliate of Funds Management. The Management Agreement combines the terms of the Advisory Agreement with the terms of the Fund’s Amended and Restated Administration Agreement (the “Administration Agreement”) applicable to Fund-level administrative services. The Advisory Agreement, the Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”

At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in March 2015, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2015. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

After its deliberations, the Board unanimously approved the continuation of the Advisory Agreement for the period from June 1, 2015 through June 30, 2015, approved the Management Agreement for the period from July 1, 2015 through May 31, 2016, and approved the continuation of the Sub-Advisory Agreement for a one-year term through May 31, 2016. The Board also determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.

Nature, extent and quality of services

The Board received and considered various information regarding the nature, extent and quality of services provided to the Fund by Funds Management and the Sub-Adviser under the Advisory Agreements. This information included, among other things, a summary of the background and experience of senior management of Funds Management, and the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund. The Board noted that the services to be provided to the Fund pursuant to the Management Agreement combined the advisory services previously provided to the Fund pursuant to the Fund’s Advisory Agreement with the Fund-level administrative services previously provided to the Fund pursuant to the Fund’s Administration Agreement. The Board received a representation from Funds Management that combining these services would not result in any change to the nature or level of services provided by Funds Management to the Fund.

The Board evaluated the ability of Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory and supervisory personnel. The Board further considered the compliance

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

programs and compliance records of Funds Management and the Sub-Adviser. In addition, the Board took into account the full range of services provided to the Fund by Funds Management and its affiliates.

Fund performance and expenses

The Board considered the performance results for the Fund over various time periods ended March 31, 2015. The Board considered these results in comparison to the performance of funds in a universe that was determined by Lipper Inc. (“Lipper”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Lipper is an independent provider of investment company data. The Board received a description of the methodology used by Lipper to select the mutual funds in the performance Universe. The Board noted that the performance of the Fund (Class A) was higher than or in range of the average performance of the Universe for all periods under review. The Board also noted that the performance of the Fund was higher than its benchmark, the Barclays U.S. Universal Bond Index, for all periods under review.

The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees (which reflect fee waivers, if any, and include advisory, administration and transfer agent fees), custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Lipper to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Lipper to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Lipper reports, the Board noted that the net operating expense ratios of the Fund were lower than the median net operating expense ratios of the expense Groups. The Board discussed and accepted Funds Management’s proposal to convert the Investor Class shares into Class A shares.

The Board took into account the Fund performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreement and Sub-Advisory Agreement and approve the Management Agreement.

Investment advisory and sub-advisory fee rates

The Board reviewed and considered the contractual investment advisory fee rates that are payable by the Fund to Funds Management for investment advisory services (the “Advisory Agreement Rates”), both on a stand-alone basis and on a combined basis with the Fund’s fund-level and class-level contractual administration fee rates (the “Management Rates”). The Board noted that the Management Rates include transfer agency and sub-transfer agency costs. The Board also noted that the fee rate to be paid by the Fund under the Management Agreement will incorporate the advisory fee and Fund-level administration fee previously payable separately by the Fund under the Fund’s Advisory Agreement and Administration Agreement with Funds Management. The Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Funds Management to the Sub-Adviser for investment sub-advisory services (the “Sub-Advisory Agreement Rates”).

Among other information reviewed by the Board was a comparison of the Management Rates of the Fund with those of other funds in the expense Groups at a common asset level. The Board noted that the Management Rates of the Fund were lower than or in range of the average rates for the Fund’s expense Groups for all share classes.

The Board also received and considered information about the portion of the total advisory fee that was retained by Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Funds Management and not delegated to or assumed by the Sub-Adviser, and about Funds Management’s on-going oversight services. However, given the affiliation between Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of the advisory fee between them.

The Board also received and considered information about the nature and extent of services offered and fee rates charged by Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing mutual funds compared with those associated with managing assets of non-mutual fund clients such as collective funds or institutional separate accounts.

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Funds Management under the Management Agreement and Advisory Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable, in light of the services covered by the Advisory Agreements.

Other information (unaudited) Wells Fargo Advantage Income Plus Fund 41

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also received and considered information concerning the profitability of the Sub-Adviser from providing services to the fund family as a whole, noting that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo profitability analysis.

Funds Management reported on the methodologies and estimates used in calculating profitability. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size and type of fund. Based on its review, the Board did not deem the profits reported by Funds Management or Wells Fargo from its services to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.

Economies of scale

With respect to possible economies of scale, the Board noted the existence of breakpoints in the Fund’s advisory and management fee structures, and the Fund’s administration fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered that fee waiver and expense reimbursement arrangements and competitive fee rates at the outset are means of sharing potential economies of scale with shareholders of the Fund and the fund family as a whole. The Board considered Funds Management’s view that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments that Funds Management incurs across the fund family as a whole.

The Board concluded that the Fund’s fee and expense arrangements, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.

Other benefits to Funds Management and the Sub-Adviser

The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that various affiliates of Funds Management may receive distribution-related fees, shareholder servicing payments and sub-transfer agency fees in respect of shares sold or held through them and services provided.

The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser, fees earned by Funds Management and the Sub-Adviser from managing a private investment vehicle for the fund family’s securities lending collateral and commissions earned by an affiliated broker from portfolio transactions.

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory Agreement for the period from June 1, 2015 through June 30, 2015, approved the Management Agreement for the period from July 1, 2015 through May 31, 2016, and approved the continuation of the Sub-Advisory Agreement for a one-year term through May 31, 2016. The Board also determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable.

42 Wells Fargo Advantage Income Plus Fund List of abbreviations

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian 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

LIFER —  Long Inverse Floating Exempt Receipts

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

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —   Short Puttable Exempt Adjustable 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. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at wellsfargoadvantagefunds.com. 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, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

© 2015 Wells Fargo Funds Management, LLC. All rights reserved.

236805 10-15 A219/AR219 08-15

Wells Fargo Advantage

Short Duration Government Bond Fund

Annual Report

August 31, 2015

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	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	23
Report of independent registered public accounting firm	28
Other information	29
List of abbreviations	35

The views expressed and any forward-looking statements are as of August 31, 2015, 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

Major central banks continued to inject liquidity into global banks and markets through various accommodative monetary policies, including quantitative easing.

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Advantage Short Duration Government Bond Fund for the 12-month period that ended August 31, 2015. The period was marked by low interest rates, low oil prices, and moderate U.S. economic growth. Short-term investment-grade bonds, as measured by the Barclays U.S. 1–3 Year Government/Credit Bond Index,¹ returned 0.81% during the period. Meanwhile, strong demand for high-quality, liquid assets kept returns on Treasury bills more modest; the Barclays 6-Month Treasury Bill Index² returned 0.15% during the period.

Major central banks continued to provide stimulus.

Major central banks continued to inject liquidity into global banks and markets through various accommodative monetary policies, including quantitative easing. In the U.S., the Federal Reserve (Fed) kept its key interest rate near zero in order to support the economy and the financial system. However, it set expectations for it to begin normalizing monetary policy with higher target ranges for the federal funds rate.

Meanwhile, European markets continued to benefit from the European Central Bank’s (ECB’s) willingness to maintain low interest rates. In addition to its targeted longer-term refinancing operations that are designed to increase bank lending, the ECB expanded its quantitative easing program to include the purchase of eurozone government bonds. In Japan, the Bank of Japan maintained an aggressive monetary program aimed at combating deflation.

Economic growth was moderate, and oil prices plummeted.

U.S. economic growth advanced during the reporting period, the unemployment rate ticked lower to 5.1% as of August 2015, and inflation remained below the Fed’s longer-run objective of a 2% pace. The period was also marked by lower oil prices, which began the reporting period near $90 per barrel but declined to $46 per barrel at the end of August 2015. While lower oil prices benefited consumers of oil products, the lower prices pressured companies within the energy sector.

Bond yields rose but remained low by historical standards.

Short-term interest rates increased during the reporting period, with a flattening in the shape of the short-term yield curve. During this time frame, 1-year Treasury bills rose 29 basis points (bps; 100 bps equals 1.00%) to yield 0.38%, 2-year Treasury note yields rose 21 bps to yield 0.74%, and 3-year Treasury note yields rose only 8 bps to yield 1.05%. Meanwhile, ultra-short-term yields were little changed at ultralow levels, anchored by the easy monetary policy.

Since the end of the financial crisis, structural changes in the fixed-income markets have reduced trading liquidity (the degree to which assets can be bought or sold without affecting the price). New regulations and capital requirements have caused traditional liquidity suppliers (banks and broker/dealers) to be more risk-averse and hold less inventory. Meanwhile, corporate-debt issuance has spiked as companies finance themselves at record-low yields, bond mutual funds hold larger amounts of this new debt supply, trading volumes are lower, and large-size trades are more difficult to execute. However, fixed-income markets appear to have functioned well over the past year with sufficient liquidity and muted volatility.

¹  The Barclays U.S. 1–3 Year Government/Credit Bond Index is the one- to three-year component of the Barclays U.S. Government/Credit Bond Index that includes securities in the Government and Credit Indexes. 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.

²  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.

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

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

Periods of 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 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 in Wells Fargo Advantage Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.

Sincerely,

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Periods of 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.

Notice to shareholders

At a meeting held on August 11–12, 2015, the Board of Trustees of the Fund approved a change in the name of the Fund whereby the word “Advantage” will be removed from its name, effective December 15, 2015.

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.

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

Investment objective

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

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Troy Ludgood

Thomas O’Connor, CFA

Average annual total returns¹ (%) as of August 31, 2015

		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		(1.46	)		0.59		2.65		0.55			0.99		2.86		0.79		0.78
Class B (MSDBX)*	5-31-2002		(3.30	)		0.40		2.55		(0.30	)		0.40		2.55		1.54		1.53
Class C (MSDCX)	5-31-2002		(1.30	)		0.24		2.08		(0.30	)		0.24		2.08		1.54		1.53
Class R6 (MSDRX)	11-30-2012		–			–		–		0.96			1.45		3.30		0.42		0.37
Administrator Class (MNSGX)	12-18-1992		–			–		–		0.63			1.20		3.08		0.73		0.60
Institutional Class (WSGIX)	4-8-2005		–			–		–		0.81			1.38		3.27		0.46		0.42
Barclays 1–3 Year Government Index4	–		–			–		–		0.84			0.77		2.57		–		–

* 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 a contingent deferred 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. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the fund and its share price can be sudden and unpredictable. Securities issued by U.S. government agencies or government sponsored entities may not be guaranteed by the U.S. Treasury. Certain investment strategies tend to increase the total risk of an investment (relative to the broader market). The Fund is exposed to mortgage- and asset-backed securities risk. Consult the Fund’s prospectus for additional information on these and other risks. The U.S. government guarantee applies to certain underlying securities and not to shares of the Fund.

Please see footnotes on page 5.

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

Growth of $10,000 investment⁵ as of August 31, 2015

¹  Historical performance shown for Class R6 shares prior to their 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.

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 manager has contractually committed through December 31, 2015, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver at the amounts shown. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. 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 Government 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 chart compares the performance of Class A shares for the most recent 10 years with the performance of the Barclays 1–3 Year Government Index. The chart assumes a hypothetical investment of $10,000 in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 2.00%.

⁶  The ten largest holdings, excluding cash and cash equivalents, are calculated based on the value of the investments divided by total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

⁷  Amounts are calculated based on the total long-term investments of the Fund. These amounts are subject to change and may have changed since the date specified.

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

MANAGER’S DISCUSSION

Fund highlights

n The Fund underperformed its benchmark, the Barclays 1–3 Year Government Index, for the 12-month period that ended August 31, 2015.

n The Fund’s mortgage holdings benefited less from declining rates than mortgages within the index, which detracted from performance.

n The Fund has out-of-benchmark allocations to agency MBS, asset-backed securities (ABS), and commercial mortgage-backed securities (CMBS). These sector allocations also contributed to results.

U.S. economic growth remained moderate.

The past 12 months have been volatile for the fixed-income markets as the timing of the U.S. Federal Reserve’s (Fed’s) first rate hike in nearly 10 years has been at the forefront of investors’ minds. A crash in global commodities, including oil, which began last summer, signaled a slowdown in global growth that is now starting to take hold. China has emerged as the focal point of a global economic turmoil following the collapse of its stock market and the devaluation of its currency. Despite international concerns and headwinds, U.S. economic growth has remained moderate with the unemployment rate falling to 5.1%, placing pressure on the Fed to hike the federal funds rate by year-end.

After a volatile start for the reporting period, the markets settled down and came to grips with the end of quantitative easing (QE) by the Fed, as QE officially ended in October 2014. Markets seemed to take the well-anticipated move in stride as the European Central Bank (ECB) started to telegraph its own QE program that was announced in January and implemented in March 2015. The commodity sell-off that began last summer accelerated into year-end with follow-on impacts across risk assets, most notably in high-yield, energy, and emerging markets. By the end of 2014, two-year Treasury yields surged to 0.74% as market participants started to price in the possibility of a Fed rate hike.

2015 began with market participants digesting the implications of European QE and the rise of Syriza in Greek elections. U.S. 10-year yields fell to the reporting period’s low at 1.64% in the wake of a global bond rally that left many wondering if there would be a shortage of bonds for the ECB to buy. Geopolitical tensions were ever-present throughout most of this past year with headline risk being transferred from the Iran nuclear deal, to Greece defiance and fear of a euro exit, to a collapse of the China stock market and a hard landing of its economy. U.S. economic data has been generally moderate, with notable bright spots in employment and housing.

Ten largest holdings6 (%) as of August 31, 2015
U.S. Treasury Note, 1.00%, 8-15-2018	9.08
U.S. Treasury Note, 0.50%, 8-31-2016	7.50
FHLMC, 4.50%, 8-1-2020	6.84
U.S. Treasury Note, 0.63%, 8-31-2017	3.94
FHLMC Series 4483 Class PA, 2.50%, 6-15-2045	2.60
U.S. Treasury Note, 0.38%, 10-31-2016	2.19
FNMA Series 2015-53 Class MA, 2.50%, 6-25-2045	1.98
FNMA, 4.50%, 5-1-2020	1.79
U.S. Treasury Note, 0.63%, 5-31-2017	1.71
FNMA, 4.50%, 1-1-2020	1.55

We focused on security selection.

Market volatility resulting from uncertainty around the timing of the first Fed rate hike created an attractive opportunity to employ our bottom-up security selection process. Our positioning and active relative-value management within mortgage pass-throughs and CMOs through the period contributed to our performance. Consistent with our bottom-up process, we maintained a neutral duration to the benchmark throughout the period. However, our yield curve positioning favored the five-year area. We believe we are well positioned should volatility increase further and stand ready to take advantage of relative-value trading opportunities as they arise.

We continued to hold out-of-benchmark positions in MBS, ABS, and CMBS, while maintaining underweight allocations to both agency debt and U.S. Treasuries. In agency MBS, security selection in specified pools, CMOs, and hybrid ARMs were the top contributors to performance. Over the year, we increased our exposure to agency MBS as valuations became more attractive. Within the sector, we increased exposure to specified pools, CMOs, and hybrid ARMs.

Please see footnotes on page 5.

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

Security selection and sector allocations to structured product sectors (ABS and CMBS) contributed to performance during the period. We decreased our exposure to credit-card ABS during the period while adding exposure to nonprime auto ABS. Within the student loan subsector, we reduced our positioning in Federal Family Education Loan Program student loans while slightly increasing our positioning in private student loans. In CMBS, we reduced our exposure, mainly in 2014 and 2015 vintage last cash flow bonds. Within our mortgage holdings, the bonds we held were less sensitive to declining interest rates than the index holdings, which held back their price performance and detracted from results.

Portfolio allocation⁷ as of August 31, 2015

The Fed is poised to raise rates gradually.

In light of the more difficult backdrop of a global economic slowdown, despite modest growth in the U.S., all eyes will be watching to see if the Fed raises rates before year end. An increase still appears likely and would be driven by incoming data and forward-looking projections. Policymakers will likely communicate that the path of subsequent increases will be gradual, in order to cushion impacts to foreign markets. Increased volatility around any Fed move will create opportunities.

Please see footnotes on page 5.

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 servicing 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 March 1, 2015 to August 31, 2015.

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 3-1-2015		Ending account value 8-31-2015		Expenses paid during the period1		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,001.28	$	3.93		0.78	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.27	$	3.97		0.78	%
Class B
Actual	$	1,000.00	$	996.51	$	7.70		1.53	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.49	$	7.78		1.53	%
Class C
Actual	$	1,000.00	$	996.52	$	7.70		1.53	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.49	$	7.78		1.53	%
Class R6
Actual	$	1,000.00	$	1,003.36	$	1.87		0.37	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.34	$	1.89		0.37	%
Administrator Class
Actual	$	1,000.00	$	1,001.19	$	3.03		0.60	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.18	$	3.06		0.60	%
Institutional Class
Actual	$	1,000.00	$	1,002.10	$	2.12		0.42	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.09	$	2.14		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—August 31, 2015 Wells Fargo Advantage Short Duration Government Bond Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities: 49.21%
FHLMC ±		2.31	%		8-1-2044	$	7,947,294	$	8,117,692
FHLMC ±		2.95			5-1-2044		1,534,549		1,593,456
FHLMC ±		2.97			9-1-2045		3,288,665		3,382,200
FHLMC ±%%		2.99			9-1-2045		2,085,235		2,144,645
FHLMC (a)%%		3.01			9-1-2045		3,257,000		3,337,621
FHLMC ±		3.03			12-1-2043		4,668,655		4,849,139
FHLMC ±		3.12			8-1-2041		4,428,606		4,656,120
FHLMC ±		3.15			7-1-2042		2,819,797		2,919,469
FHLMC ±		3.70			10-1-2041		3,666,435		3,877,316
FHLMC		4.00			6-1-2025		2,766,526		2,960,161
FHLMC		4.00			2-1-2026		3,783,569		4,051,043
FHLMC		4.00			10-1-2026		1,678,091		1,790,257
FHLMC		4.00			6-1-2031		3,502,620		3,742,159
FHLMC		4.00			4-1-2032		1,378,671		1,462,973
FHLMC		4.50			8-1-2018		3,990,309		4,147,232
FHLMC		4.50			10-1-2018		2,133,322		2,217,217
FHLMC		4.50			8-1-2020		70,451,466		73,222,036
FHLMC		4.50			8-1-2026		5,611,704		6,031,620
FHLMC		4.50			4-1-2031		2,499,502		2,726,732
FHLMC		5.50			5-1-2041		534,354		611,213
FHLMC		5.50			5-1-2041		321,376		367,607
FHLMC ±		5.90			7-1-2038		4,085,874		4,356,885
FHLMC		6.00			5-15-2039		3,357,540		3,834,163
FHLMC		7.00			3-25-2044		1,948,971		2,289,917
FHLMC Series 2638 Class MJ		5.00			7-15-2033		3,322,905		3,686,617
FHLMC Series 2744 Class JH		5.00			2-15-2034		2,594,400		2,872,785
FHLMC Series 2762 Class LY		5.00			3-15-2034		1,475,474		1,619,632
FHLMC Series 3574 Class D		5.00			9-15-2039		1,702,630		1,876,996
FHLMC Series 4227 Class AB		3.50			10-15-2037		7,056,194		7,423,292
FHLMC Series 4382 Class AB		3.00			7-15-2040		7,394,672		7,622,243
FHLMC Series 4483 Class PA		2.50			6-15-2045		27,352,887		27,858,122
FNMA ±		2.14			6-1-2043		5,042,121		5,135,449
FNMA ±		2.19			9-1-2043		11,818,049		12,038,681
FNMA ±		2.29			5-1-2042		3,965,512		4,089,412
FNMA ±		2.31			8-1-2043		5,544,653		5,663,521
FNMA ±		2.33			10-1-2043		2,925,700		2,990,438
FNMA ±		2.34			5-1-2042		5,770,973		5,956,301
FNMA ±		2.47			10-1-2043		4,215,855		4,320,991
FNMA ±		2.63			4-1-2045		7,674,120		7,864,079
FNMA ±		2.66			11-1-2044		7,292,410		7,495,771
FNMA %%		2.77			9-1-2045		7,795,000		8,020,629
FNMA ±		2.79			5-1-2044		3,728,221		3,839,790
FNMA (a)%%		2.97			9-1-2045		3,257,000		3,332,614
FNMA ±		3.24			12-1-2043		2,239,185		2,334,357
FNMA		3.50			12-1-2029		2,593,715		2,734,898
FNMA		3.50			2-1-2030		2,722,815		2,888,286
FNMA		3.50			5-1-2030		2,954,020		3,125,504
FNMA		3.50			8-1-2030		5,084,000		5,406,798
FNMA ±		3.52			3-1-2041		1,044,485		1,093,519

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

10 Wells Fargo Advantage Short Duration Government Bond Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA ±		3.54	%		12-1-2041	$	4,696,435	$	4,974,865
FNMA		4.00			3-1-2026		3,042,137		3,257,253
FNMA		4.00			5-1-2026		948,000		1,018,510
FNMA		4.00			5-1-2027		2,437,695		2,595,618
FNMA		4.00			4-1-2032		1,249,714		1,349,812
FNMA		4.00			8-1-2032		1,316,159		1,420,760
FNMA		4.00			3-1-2033		7,004,757		7,496,358
FNMA		4.50			1-1-2020		13,418,069		13,935,888
FNMA		4.50			1-1-2020		10,354,988		10,754,157
FNMA		4.50			1-1-2020		15,938,663		16,553,375
FNMA		4.50			1-1-2020		14,622,565		15,185,579
FNMA		4.50			5-1-2020		18,507,527		19,222,281
FNMA		4.50			10-1-2020		5,027,768		5,222,023
FNMA		4.50			6-1-2025		2,210,782		2,374,973
FNMA		4.50			2-1-2026		607,552		653,336
FNMA		4.50			10-1-2026		7,589,540		8,171,760
FNMA		5.00			2-1-2023		4,274,177		4,577,868
FNMA		5.00			5-1-2023		837,831		907,144
FNMA		5.00			8-1-2030		1,025,285		1,129,865
FNMA		5.50			6-1-2040		96,929		110,991
FNMA		5.50			7-1-2040		321,619		368,666
FNMA		5.50			5-1-2041		185,784		212,240
FNMA		5.50			7-1-2041		192,883		220,939
FNMA		5.50			8-1-2041		2,212,050		2,533,009
FNMA		6.00			3-25-2035		887,912		938,996
FNMA Grantor Trust Series 2000-T6 Class A1		7.50			6-25-2030		573,319		658,282
FNMA Series 1999-T2 Class A1 ±		7.50			1-19-2039		366,033		402,175
FNMA Series 2001-W03 Class A ±		6.85			9-25-2041		565,666		643,149
FNMA Series 2002-90 Class A1		6.50			6-25-2042		24,518		27,989
FNMA Series 2002-W6 Class 2A1 ±		6.36			6-25-2042		10,429		11,968
FNMA Series 2003-63 Class GB		4.00			7-25-2033		3,625,759		3,850,549
FNMA Series 2003-W1 Class 2A ±		6.44			12-25-2042		272,083		316,373
FNMA Series 2004-W9 Class 2A3		7.50			2-25-2044		721,671		825,588
FNMA Series 2010-71 Class HJ		5.50			7-25-2040		1,393,747		1,585,728
FNMA Series 2010-98 Class EA		4.00			9-25-2030		2,244,758		2,401,266
FNMA Series 2011-46 Class BA		4.00			4-25-2037		8,679,316		9,049,680
FNMA Series 2011-M2 Class A1		2.02			4-25-2021		2,556,683		2,589,843
FNMA Series 2012-28 Class PT		4.00			3-25-2042		1,129,464		1,196,761
FNMA Series 2012-65 Class HJ		5.00			7-25-2040		8,191,882		9,096,209
FNMA Series 2013-103 Class H		4.50			3-25-2038		5,886,415		6,408,834
FNMA Series 2015-53 Class MA		2.50			6-25-2045		20,755,354		21,201,989
FNMA Series 2015-69 Class MC		2.50			9-25-2045		11,448,000		11,627,047
FNMA Series 2015-M10 Class FA ±		0.45			3-25-2019		6,612,590		6,600,608
FNMA Series 2015-M4 Class FA ±		0.41			9-25-2018		10,639,527		10,646,198
FNMA Series 2015-M8 Class FA ±		0.37			11-25-2018		6,723,684		6,716,261
GNMA ±		2.50			6-20-2045		622,619		636,218
GNMA		4.50			8-20-2045		9,228,000		9,927,695
GNMA ##		5.50			3-15-2033		1,351,405		1,553,115
GNMA Series 2001-53 Class PB		6.50			11-20-2031		3,336,000		3,859,672
Total Agency Securities (Cost $528,248,081)									526,999,061

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

Portfolio of investments—August 31, 2015 Wells Fargo Advantage Short Duration Government Bond Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Asset-Backed Securities: 11.66%
Ally Master Owner Trust Series 2015-2 Class A1 ±		0.77	%		1-15-2021	$	3,676,000	$	3,674,710
Avis Budget Rental Car Funding LLC Series 2012-3A Class A 144A		2.10			3-20-2019		8,126,000		8,158,634
California Republic Auto Receivables Trust Series 2013-2 Class A2		1.23			3-15-2019		3,118,695		3,116,833
California Republic Auto Receivables Trust Series 2014-1 Class A4		1.48			8-15-2019		3,136,000		3,147,415
California Republic Auto Receivables Trust Series 2014-2 Class A3		0.91			8-15-2018		3,253,000		3,254,145
California Republic Auto Receivables Trust Series 2014-2 Class A4		1.57			12-16-2019		3,579,000		3,593,960
California Republic Auto Receivables Trust Series 2014-3 Class A4		1.79			3-16-2020		3,179,000		3,204,572
California Republic Auto Receivables Trust Series 2015-1 Class A4		1.82			9-15-2020		3,620,000		3,650,687
Capital Auto Receivables Asset Trust Series 2014-1 Class A3		1.32			6-20-2018		6,380,000		6,386,182
Capital Auto Receivables Asset Trust Series 2014-2 Class A4		1.62			10-22-2018		3,186,000		3,199,693
Capital Auto Receivables Asset Trust Series 2014-3 Class A4		1.83			4-22-2019		3,144,000		3,154,363
Capital Auto Receivables Asset Trust Series 2015-1 Class A4		1.86			10-21-2019		2,433,000		2,429,112
Capital Auto Receivables Asset Trust Series 2015-2 Class A2		1.39			9-20-2018		7,230,000		7,198,246
Capital Auto Receivables Asset Trust Series 2015-2 Class A3		1.73			9-20-2019		2,230,000		2,225,698
Capital Auto Receivables Asset Trust Series 2015-3 Class A3		1.94			1-21-2020		11,350,000		11,355,970
Navient Student Loan Trust Series 2014-CTA Class A 144A±		0.90			9-16-2024		11,632,388		11,545,273
Nelnet Student Loan Trust Series 2004-4 Class A5 ±		0.46			1-25-2037		3,836,279		3,734,852
SLC Student Loan Trust Series 2007-2 Class A2 ±		0.72			5-15-2028		872,882		862,157
SLC Student Loan Trust Series 2010-1 Class A ±		1.20			11-25-2042		1,737,101		1,738,683
SLM Student Loan Trust Series 2002-6 Class A4 ±		0.47			3-15-2019		310,379		310,093
SLM Student Loan Trust Series 2005-6 Class A5 ±		1.50			7-27-2026		2,450,950		2,457,023
SLM Student Loan Trust Series 2005-6 Class A5A ±		0.41			7-27-2026		1,918,700		1,893,558
SLM Student Loan Trust Series 2010-1 Class A ±		0.60			3-25-2025		3,968,286		3,912,298
SLM Student Loan Trust Series 2010-A Class 1A 144A±		3.20			5-16-2044		2,239,176		2,309,762
SLM Student Loan Trust Series 2010-A Class 2A 144A±		3.45			5-16-2044		4,496,174		4,678,121
SLM Student Loan Trust Series 2011-C Class A2A 144A±		3.45			10-17-2044		1,882,000		1,999,158
SLM Student Loan Trust Series 2012-B Class A2 144A		3.48			10-15-2030		3,197,000		3,286,906
SLM Student Loan Trust Series 2013-A Class A1 144A±		0.80			8-15-2022		2,813,187		2,801,706
SLM Student Loan Trust Series 2014-A Class A2B 144A±		1.34			1-15-2026		3,457,000		3,454,169
SMB Private Education Loan Trust Series 2015-A Class A1 144A±		0.80			7-17-2023		12,219,502		12,106,655
Total Asset-Backed Securities (Cost $125,378,017)									124,840,634
Non-Agency Mortgage-Backed Securities: 5.79%
Commercial Mortgage Trust Series 2012-LC4 Class A2		2.26			12-10-2044		4,632,182		4,679,713
Commercial Mortgage Trust Series 2012-LC4 Class A3		3.07			12-10-2044		6,335,000		6,566,715
Commercial Mortgage Trust Series 2013-CR6 Class A1		0.72			3-10-2046		2,320,564		2,302,918
DBUBS Mortgage Trust Series 2011-LC2A Class A1 144A		3.53			7-10-2044		762,216		795,126
GS Mortgage Securities Trust Series 2010-C1 Class A1 144A		3.68			8-10-2043		1,237,663		1,278,208
GS Mortgage Securities Trust Series 2010-C2 Class A1 144A		3.85			12-10-2043		2,766,562		2,836,329
GS Mortgage Securities Trust Series 2011-GC3 Class A2 144A		3.65			3-10-2044		3,913,591		3,927,543
GS Mortgage Securities Trust Series 2012-GCJ7 Class AAB		2.94			5-10-2045		2,579,000		2,651,627
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2010-C1 Class A2 144A		4.61			6-15-2043		2,478,000		2,597,018
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2010-C2 Class A2 144A		3.62			11-15-2043		2,259,000		2,334,082
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2010-CNTR Class A1 144A		3.30			8-5-2032		1,496,614		1,538,106
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2011-C3 Class A2 144A		3.67			2-15-2046		4,540,533		4,611,524
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2011-C5 Class A2		3.15			8-15-2046		751,395		763,565

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

12 Wells Fargo Advantage Short Duration Government Bond Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage-Backed Securities (continued)
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2012-CBX Class A3		3.14	%		6-15-2045	$	4,793,684	$	4,897,937
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2012-LC9 Class A2		1.68			12-15-2047		3,876,000		3,880,279
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2014-C18 Class A1		1.25			2-15-2047		1,623,444		1,619,541
JPMorgan Chase Commercial Mortgage Securities Trust Series 2015-IVR2 Class A2 144A±		2.77			1-25-2045		5,989,575		6,041,319
JPMorgan Mortgage Trust Series 2015-1 Class 1A2 144A±		2.69			12-25-2044		3,744,715		3,796,273
Morgan Stanley Capital I Trust Series 2011-C2 Class A3 144A		4.21			6-15-2044		705,000		749,801
Morgan Stanley Dean Witter Capital I Series 2011-C3 Class A2		3.22			7-15-2049		4,127,539		4,194,404
Total Non-Agency Mortgage-Backed Securities (Cost $63,131,003)									62,062,028
U.S. Treasury Securities: 31.04%
U.S. Treasury Note		0.38			10-31-2016		23,514,000		23,480,328
U.S. Treasury Note		0.50			8-31-2016		80,290,000		80,338,094
U.S. Treasury Note		0.50			4-30-2017		9,452,000		9,427,387
U.S. Treasury Note		0.63			5-31-2017		18,361,000		18,339,720
U.S. Treasury Note		0.63			6-30-2017		16,290,000		16,267,732
U.S. Treasury Note ##		0.63			7-31-2017		8,931,000		8,916,576
U.S. Treasury Note		0.63			8-31-2017		42,343,000		42,244,298
U.S. Treasury Note		0.88			7-15-2017		10,983,000		11,012,885
U.S. Treasury Note		0.88			1-15-2018		11,788,000		11,776,943
U.S. Treasury Note		0.88			7-15-2018		13,423,000		13,356,583
U.S. Treasury Note		1.00			8-15-2018		97,369,000		97,204,154
Total U.S. Treasury Securities (Cost $332,560,516)									332,364,700
Yankee Corporate Bonds and Notes: 1.30%
Financials: 1.30%
Banks: 1.30%
Royal Bank of Canada Incorporated		2.00			10-1-2018		13,745,000		13,889,405
Total Yankee Corporate Bonds and Notes (Cost $13,882,862)									13,889,405
	Yield					Shares
Short-Term Investments: 1.43%
Investment Companies: 1.43%
Wells Fargo Advantage Government Money Market Fund, Institutional Class ##(l)(u)		0.01					15,356,055		15,356,055
Total Short-Term Investments (Cost $15,356,055)									15,356,055

Total investments in securities (Cost $1,078,556,534) *	100.43	%		1,075,511,883
Other assets and liabilities, net	(0.43	)		(4,615,390	)
Total net assets	100.00	%	$	1,070,896,493

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

Portfolio of investments—August 31, 2015 Wells Fargo Advantage Short Duration Government Bond Fund 13

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

%% The security is issued on a when-issued basis.

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

144A The security may be resold in transactions exempt from registration, normally to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933.

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

(l) The security represents an affiliate of the Fund as defined in the Investment Company Act of 1940.

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

* Cost for federal income tax purposes is $1,078,752,666 and unrealized gains (losses) consists of:

Gross unrealized gains	$	987,296
Gross unrealized losses		(4,228,079	)
Net unrealized losses	$	(3,240,783	)

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

14 Wells Fargo Advantage Short Duration Government Bond Fund Statement of assets and liabilities—August 31, 2015

Assets
Investments
In unaffiliated securities, at value (cost $1,063,200,479)	$	1,060,155,828
In affiliated securities, at value (cost $15,356,055)		15,356,055
Total investments, at value (cost $1,078,556,534)		1,075,511,883
Receivable for investments sold		79,694,294
Principal paydown receivable		1,091,457
Receivable for Fund shares sold		11,634,017
Receivable for interest		2,120,048
Prepaid expenses and other assets		10,902
Total assets		1,170,062,601
Liabilities
Dividends payable		77,328
Payable for investments purchased		96,023,094
Payable for Fund shares redeemed		2,549,597
Management fee payable		273,427
Distribution fees payable		20,477
Administration fees payable		71,932
Accrued expenses and other liabilities		150,253
Total liabilities		99,166,108
Total net assets	$	1,070,896,493
NET ASSETS CONSIST OF
Paid-in capital	$	1,115,292,800
Undistributed net investment income		606,284
Accumulated net realized losses on investments		(41,957,940	)
Net unrealized losses on investments		(3,044,651	)
Total net assets	$	1,070,896,493
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	62,503,800
Shares outstanding – Class A1		6,239,616
Net asset value per share – Class A		$10.02
Maximum offering price per share – Class A2		$10.22
Net assets – Class B	$	99,454
Shares outstanding – Class B1		9,922
Net asset value per share – Class B		$10.02
Net assets – Class C	$	31,910,201
Shares outstanding – Class C1		3,180,543
Net asset value per share – Class C		$10.03
Net assets – Class R6	$	231,878,114
Shares outstanding – Class R61		23,074,629
Net asset value per share – Class R6		$10.05
Net assets – Administrator Class	$	156,669,449
Shares outstanding – Administrator Class1		15,615,313
Net asset value per share – Administrator Class		$10.03
Net assets – Institutional Class	$	587,835,475
Shares outstanding – Institutional Class1		58,601,165
Net asset value per share – Institutional Class		$10.03

¹  The Fund has an unlimited number of authorized shares.

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

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

Statement of operations—year ended August 31, 2015 Wells Fargo Advantage Short Duration Government Bond Fund 15

Investment income
Interest	$	16,383,237
Income from affiliated securities		4,362
Total investment income		16,387,599
Expenses
Management fee		4,254,892
Administration fees
Class A		141,147
Class B		275
Class C		59,033
Class R6		22,728
Administrator Class		179,475
Institutional Class		681,574
Shareholder servicing fees
Class A		220,542
Class B		430
Class C		92,239
Administrator Class		447,598
Distribution fees
Class B		1,290
Class C		276,718
Custody and accounting fees		71,509
Professional fees		52,620
Registration fees		86,971
Shareholder report expenses		63,915
Trustees’ fees and expenses		9,642
Other fees and expenses		32,184
Total expenses		6,694,782
Less: Fee waivers and/or expense reimbursements		(505,102	)
Net expenses		6,189,680
Net investment income		10,197,919
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on investments		3,936,012
Net change in unrealized gains (losses) on investments		(4,300,460	)
Net realized and unrealized gains (losses) on investments		(364,448	)
Net increase in net assets resulting from operations	$	9,833,471

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

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

	Year ended August 31, 2015						Year ended August 31, 2014
Operations
Net investment income				$	10,197,919					$	8,479,376
Net realized gains (losses) on investments					3,936,012						(4,014,003	)
Net change in unrealized gains (losses) on investments					(4,300,460	)					13,243,893
Net increase in net assets resulting from operations					9,833,471						17,709,266
Distributions to shareholders from
Net investment income
Class A					(994,941	)					(1,294,991	)
Class B					(619	)					(2,258	)
Class C					(143,212	)					(209,312	)
Class R6					(1,252,381	)					(380,974	)
Administrator Class					(2,366,248	)					(2,670,961	)
Institutional Class					(12,686,313	)					(13,956,138	)
Total distributions to shareholders					(17,443,714	)					(18,514,634	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		893,467			8,994,855			2,050,091			20,702,596
Class B		4,666			47,051			6,231			62,998
Class C		250,331			2,525,080			299,780			3,033,330
Class R6		20,670,721			208,583,613			6,291,982			63,793,536
Administrator Class		3,720,185			37,515,205			3,637,751			36,805,716
Institutional Class		23,657,641			238,649,165			33,734,906			341,098,630
					496,314,969						465,496,806
Reinvestment of distributions
Class A		90,064			907,044			118,250			1,194,227
Class B		54			540			198			1,999
Class C		12,948			130,546			19,110			193,392
Class R6		124,189			1,252,381			37,650			380,974
Administrator Class		223,156			2,250,925			243,609			2,464,121
Institutional Class		1,154,458			11,642,358			1,258,055			12,725,255
					16,183,794						16,959,968
Payment for shares redeemed
Class A		(5,356,128	)		(53,879,586	)		(4,076,175	)		(41,155,799	)
Class B		(17,358	)		(175,084	)		(68,648	)		(693,890	)
Class C		(1,481,247	)		(14,946,317	)		(2,166,936	)		(21,918,485	)
Class R6		(2,510,257	)		(25,335,737	)		(1,834,211	)		(18,570,451	)
Administrator Class		(7,286,511	)		(73,464,583	)		(8,159,129	)		(82,511,132	)
Institutional Class		(55,650,292	)		(560,857,859	)		(49,642,019	)		(501,916,330	)
					(728,659,166	)					(666,766,087	)
Net decrease in net assets resulting from capital share transactions					(216,160,403	)					(184,309,313	)
Total decrease in net assets					(223,770,646	)					(185,114,681	)
Net assets
Beginning of period					1,294,667,139						1,479,781,820
End of period				$	1,070,896,493					$	1,294,667,139
Undistributed net investment income				$	606,284					$	606,284

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)

	Year ended August 31
CLASS A	2015			2014			2013			2012			2011
Net asset value, beginning of period		$10.08			$10.09			$10.35			$10.36			$10.47
Net investment income		0.04			0.03			0.08	1		0.10			0.16
Net realized and unrealized gains (losses) on investments		0.02			0.07			(0.14	)		0.09			0.07
Total from investment operations		0.06			0.10			(0.06	)		0.19			0.23
Distributions to shareholders from
Net investment income		(0.12	)		(0.11	)		(0.20	)		(0.20	)		(0.25	)
Net realized gains		0.00			0.00			0.00			0.00			(0.09	)
Total distributions to shareholders		(0.12	)		(0.11	)		(0.20	)		(0.20	)		(0.34	)
Net asset value, end of period		$10.02			$10.08			$10.09			$10.35			$10.36
Total return2		0.55	%		1.03	%		(0.63	)%		1.86	%		2.17	%
Ratios to average net assets (annualized)
Gross expenses		0.78	%		0.80	%		0.82	%		0.86	%		0.87	%
Net expenses		0.78	%		0.78	%		0.79	%		0.83	%		0.83	%
Net investment income		0.55	%		0.38	%		0.80	%		0.98	%		1.60	%
Supplemental data
Portfolio turnover rate		500	%		408	%		324	%		399	%		485	%
Net assets, end of period (000s omitted)		$62,504			$107,005			$126,316			$167,266			$162,719

¹  Calculated based upon average shares outstanding

²  Total return calculations do not include any sales charges.

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)

	Year ended August 31
CLASS B	2015			2014			2013			2012			2011
Net asset value, beginning of period		$10.09			$10.10			$10.36			$10.36			$10.48
Net investment income (loss)		(0.02	)1		(0.04	)1		0.01	1		0.03	1		0.09
Net realized and unrealized gains (losses) on investments		(0.01	)		0.07			(0.15	)		0.10			0.05
Total from investment operations		(0.03	)		0.03			(0.14	)		0.13			0.14
Distributions to shareholders from
Net investment income		(0.04	)		(0.04	)		(0.12	)		(0.13	)		(0.17	)
Net realized gains		0.00			0.00			0.00			0.00			(0.09	)
Total distributions to shareholders		(0.04	)		(0.04	)		(0.12	)		(0.13	)		(0.26	)
Net asset value, end of period		$10.02			$10.09			$10.10			$10.36			$10.36
Total return2		(0.30	)%		0.28	%		(1.37	)%		1.22	%		1.32	%
Ratios to average net assets (annualized)
Gross expenses		1.53	%		1.56	%		1.58	%		1.60	%		1.62	%
Net expenses		1.53	%		1.53	%		1.54	%		1.57	%		1.58	%
Net investment income (loss)		(0.19	)%		(0.37	)%		0.06	%		0.25	%		0.85	%
Supplemental data
Portfolio turnover rate		500	%		408	%		324	%		399	%		485	%
Net assets, end of period (000s omitted)		$99			$228			$856			$1,115			$1,543

¹  Calculated based upon average shares outstanding

²  Total return calculations do not include any sales charges.

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)

	Year ended August 31
CLASS C	2015			2014			2013			2012			2011
Net asset value, beginning of period		$10.10			$10.11			$10.37			$10.37			$10.48
Net investment income (loss)		(0.03	)		(0.05	)		0.01	1		0.03			0.08
Net realized and unrealized gains (losses) on investments		0.00	2		0.08			(0.15	)		0.09			0.07
Total from investment operations		(0.03	)		0.03			(0.14	)		0.12			0.15
Distributions to shareholders from
Net investment income		(0.04	)		(0.04	)		(0.12	)		(0.12	)		(0.17	)
Net realized gains		0.00			0.00			0.00			0.00			(0.09	)
Total distributions to shareholders		(0.04	)		(0.04	)		(0.12	)		(0.12	)		(0.26	)
Net asset value, end of period		$10.03			$10.10			$10.11			$10.37			$10.37
Total return3		(0.30	)%		0.28	%		(1.37	)%		1.20	%		1.41	%
Ratios to average net assets (annualized)
Gross expenses		1.53	%		1.55	%		1.57	%		1.61	%		1.62	%
Net expenses		1.53	%		1.53	%		1.54	%		1.58	%		1.58	%
Net investment income (loss)		(0.20	)%		(0.37	)%		0.05	%		0.23	%		0.85	%
Supplemental data
Portfolio turnover rate		500	%		408	%		324	%		399	%		485	%
Net assets, end of period (000s omitted)		$31,910			$44,423			$63,126			$78,385			$69,077

¹  Calculated based upon average shares outstanding

²  Amount is less than $0.005.

³  Total return calculations do not include any sales charges.

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)

	Year ended August 31
CLASS R6	2015			2014			20131
Net asset value, beginning of period		$10.11			$10.13			$10.33
Net investment income		0.09	2		0.08	2		0.13	2
Net realized and unrealized gains (losses) on investments		0.01			0.05			(0.15	)
Total from investment operations		0.10			0.13			(0.02	)
Distributions to shareholders from
Net investment income		(0.16	)		(0.15	)		(0.18	)
Net asset value, end of period		$10.05			$10.11			$10.13
Total return3		0.96	%		1.35	%		(0.17	)%
Ratios to average net assets (annualized)
Gross expenses		0.40	%		0.41	%		0.43	%
Net expenses		0.37	%		0.37	%		0.37	%
Net investment income		0.88	%		0.76	%		0.81	%
Supplemental data
Portfolio turnover rate		500	%		408	%		324	%
Net assets, end of period (000s omitted)		$231,878			$48,446			$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.

Financial highlights Wells Fargo Advantage Short Duration Government Bond Fund 21

(For a share outstanding throughout each period)

	Year ended August 31
ADMINISTRATOR CLASS	2015			2014			2013			2012			2011
Net asset value, beginning of period		$10.10			$10.11			$10.36			$10.37			$10.48
Net investment income		0.06			0.06	1		0.10	1		0.13			0.17
Net realized and unrealized gains (losses) on investments		0.00	2		0.06			(0.13	)		0.09			0.08
Total from investment operations		0.06			0.12			(0.03	)		0.22			0.25
Distributions to shareholders from
Net investment income		(0.13	)		(0.13	)		(0.22	)		(0.23	)		(0.27	)
Net realized gains		0.00			0.00			0.00			0.00			(0.09	)
Total distributions to shareholders		(0.13	)		(0.13	)		(0.22	)		(0.23	)		(0.36	)
Net asset value, end of period		$10.03			$10.10			$10.11			$10.36			$10.37
Total return		0.63	%		1.21	%		(0.34	)%		2.10	%		2.41	%
Ratios to average net assets (annualized)
Gross expenses		0.72	%		0.74	%		0.76	%		0.80	%		0.80	%
Net expenses		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Net investment income		0.73	%		0.56	%		0.99	%		1.20	%		1.84	%
Supplemental data
Portfolio turnover rate		500	%		408	%		324	%		399	%		485	%
Net assets, end of period (000s omitted)		$156,669			$191,469			$234,808			$285,637			$247,357

¹  Calculated based upon average shares outstanding

²  Amount is less than $0.005.

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

22 Wells Fargo Advantage Short Duration Government Bond Fund Financial highlights

(For a share outstanding throughout each period)

	Year ended August 31
INSTITUTIONAL CLASS	2015			2014			2013			2012			2011
Net asset value, beginning of period		$10.10			$10.10			$10.36			$10.37			$10.48
Net investment income		0.09	1		0.07			0.12			0.15			0.21
Net realized and unrealized gains (losses) on investments		(0.01	)		0.08			(0.15	)		0.09			0.06
Total from investment operations		0.08			0.15			(0.03	)		0.24			0.27
Distributions to shareholders from
Net investment income		(0.15	)		(0.15	)		(0.23	)		(0.25	)		(0.29	)
Net realized gains		0.00			0.00			0.00			0.00			(0.09	)
Total distributions to shareholders		(0.15	)		(0.15	)		(0.23	)		(0.25	)		(0.38	)
Net asset value, end of period		$10.03			$10.10			$10.10			$10.36			$10.37
Total return		0.81	%		1.50	%		(0.26	)%		2.28	%		2.59	%
Ratios to average net assets (annualized)
Gross expenses		0.45	%		0.47	%		0.49	%		0.53	%		0.54	%
Net expenses		0.42	%		0.42	%		0.42	%		0.42	%		0.42	%
Net investment income		0.92	%		0.74	%		1.16	%		1.39	%		1.97	%
Supplemental data
Portfolio turnover rate		500	%		408	%		324	%		399	%		485	%
Net assets, end of period (000s omitted)		$587,835			$903,096			$1,051,693			$1,157,125			$862,174

¹  Calculated based upon average shares outstanding

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

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

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. 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).

Debt securities are valued at the evaluated bid price provided by an independent pricing service or, if a reliable price is not available, the quoted bid price from an independent broker-dealer.

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

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

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.

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

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.

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The primary permanent differences causing such reclassifications are due to bond premiums and paydown losses. At August 31, 2015, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Undistributed net investment income	Accumulated net realized losses on investments
$7,245,795	$(7,245,795)

As of August 31, 2015, the Fund had capital loss carryforwards which consist of $24,698,768 in short-term capital losses and $13,704,689 in long-term capital losses.

As of August 31, 2015, the Fund had current year deferred post-October capital losses consisting of $2,886,253 in short-term losses and $472,095 in long-term losses which will be recognized on the first day of the following 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. Class specific expenses are charged directly to that share class. Investment income, common expenses, and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.

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 Wells Fargo Advantage Short Duration Government Bond Fund 25

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of August 31, 2015:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in :
Agency securities	$	0	$	526,999,061	$	0	$	526,999,061
Asset-backed securities		0		124,840,634		0		124,840,634
Non-agency mortgage-backed securities		0		62,062,028		0		62,062,028
U.S. Treasury securities		332,364,700		0		0		332,364,700
Yankee corporate bonds and notes		0		13,889,405		0		13,889,405
Short-term investments
Investment companies		15,356,055		0		0		15,356,055
Total assets	$	347,720,755	$	727,791,128	$	0	$	1,075,511,883

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At August 31, 2015, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

4. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the applicable subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.35% and declining to 0.255% as the average daily net assets of the Fund increase.

Prior to July 1, 2015, Funds Management provided advisory services pursuant to an investment advisory agreement and was entitled to receive an annual fee which started at 0.30% and declined to 0.225% as the average daily net assets of the Fund increased. In addition, fund-level administrative services were provided by Funds Management under a separate administration agreement at an annual fee which started at 0.05% and declined to 0.03% as the average daily net assets of the Fund increased. For financial statement purposes, the advisory fee and fund-level administration fee for the year ended August 31, 2015 have been included in management fee on the Statement of Operations.

For the year ended August 31, 2015, the management fee was equivalent to an annual rate of 0.35% 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 0.15% and declining to 0.05% as the average daily net assets of the Fund increase.

Administration fees

Under a class-level administration agreement, Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account

26 Wells Fargo Advantage Short Duration Government Bond Fund Notes to financial statements

servicers and record-keepers. As compensation for its services under the class-level administration agreement, Funds Management receives an annual 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 management 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, 2015 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. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

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 (“Funds Distributor”), the principal underwriter, at an annual rate of 0.75% of the average daily net assets of Class B and Class C shares.

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class B and Class C shares. For the year ended August 31, 2015, Funds Distributor received $1,415 from the sale of Class A shares and $19 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 year ended August 31, 2015 were as follows:

Purchases at cost		Sales proceeds
U.S. government	Non-U.S. government	U.S. government	Non-U.S. government
$5,892,253,918	$274,977,505	$5,985,849,393	$267,936,776

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, 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 year ended August 31, 2015, the Fund paid $1,399 in commitment fees.

For the year ended August 31, 2015, there were no borrowings by the Fund under the agreement.

Notes to financial statements Wells Fargo Advantage Short Duration Government Bond Fund 27

7. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid was $17,443,714 and $18,514,634 of ordinary income for the years ended August 31, 2015 and August 31, 2014, respectively.

As of August 31, 2015, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Unrealized losses	Post-October capital losses deferred	Capital loss carryforward
$683,609	$(3,240,783)	$(3,358,348)	$(38,403,457)

8. INDEMNIFICATION

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

28 Wells Fargo Advantage Short Duration Government Bond Fund Report of independent registered public accounting firm

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Advantage Short Duration Government Bond Fund (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, as of August 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of August 31, 2015, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Advantage Short Duration Government Bond Fund as of August 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

October 26, 2015

Other information (unaudited) Wells Fargo Advantage Short Duration Government Bond Fund 29

TAX INFORMATION

For the fiscal year ended August 31, 2015, $17,464,077 has been designated as interest-related dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

For the fiscal year ended August 31, 2015, 13.50% of the dividends distributed was derived from interest on U.S. government securities.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at 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 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 monthly on the Fund’s website (wellsfargoadvantagefunds.com), on a one-month delayed basis. In addition, top ten holdings information (excluding derivative positions) 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 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 Duration Government Bond Fund Other information (unaudited)

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo Advantage family of funds, which consists of 133 mutual funds 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. 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 or longer	Other public company or investment company directorships during past 5 years
William R. Ebsworth (Born 1957)	Trustee, since 2015**	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director at Fidelity Management and Research Company and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. in Boston, Tokyo, and Hong Kong where he led a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Mr. Ebsworth is a CFA ® charterholder and an Adjunct Lecturer, Finance, at Babson College.	Asset Allocation Trust
Jane A. Freeman (Born 1953)	Trustee, since 2015**	Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is Chair of Taproot Foundation (non-profit organization) (non-profit organization), a Board Member of Ruth Bancroft Garden (non-profit organization) and an inactive chartered financial analyst.	Asset Allocation Trust; Harding Loevner Funds; Russell Exchange Traded Funds Trust
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. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (charter school). Mr. Harris is a certified public accountant.	CIGNA 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
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

Other information (unaudited) Wells Fargo Advantage Short Duration Government Bond Fund 31

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Other public company or investment company directorships during past 5 years
Timothy J. Penny (Born 1951)	Trustee, since 1996	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
Michael S. Scofield (Born 1943)	Trustee, since 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 complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust
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.

** William R. Ebsworth and Jane A. Freeman each became a Trustee effective January 1, 2015.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Karla M. Rabusch (Born 1959)	President, since 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.
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. Assistant General Counsel of Wells Fargo Bank, N.A. since 2013 and Vice President and Managing Counsel of Wells Fargo Bank N.A. from 1996 to 2013.
Debra Ann Early (Born 1964)	Chief Compliance Officer, since 2007	Executive Vice President of Wells Fargo Funds Management, LLC since 2014, Senior Vice President and Chief Compliance Officer from 2007 to 2014.
David Berardi (Born 1975)	Assistant Treasurer, since 2009	Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.
Jeremy DePalma1 (Born 1974)	Assistant Treasurer, since 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 and head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.

¹ Nancy Wiser acts as Treasurer of 72 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 61 funds and Assistant Treasurer of 72 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 Duration Government Bond Fund Other information (unaudited)

BOARD CONSIDERATION OF INVESTMENT ADVISORY, INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment advisory and sub-advisory agreements. In this regard, at an in-person meeting held on May 19-20, 2015 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment advisory and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo Advantage Short Duration Government Bond Fund (the “Fund”): (i) an investment advisory agreement (the “Advisory Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); (ii) an investment management agreement (the “Management Agreement”) with Funds Management; and (iii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the “Sub-Adviser”), an affiliate of Funds Management. The Management Agreement combines the terms of the Advisory Agreement with the terms of the Fund’s Amended and Restated Administration Agreement (the “Administration Agreement”) applicable to Fund-level administrative services. The Advisory Agreement, the Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”

At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in March 2015, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2015. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

After its deliberations, the Board unanimously approved the continuation of the Advisory Agreement for the period from June 1, 2015 through June 30, 2015, approved the Management Agreement for the period from July 1, 2015 through May 31, 2016, and approved the continuation of the Sub-Advisory Agreement for a one-year term through May 31, 2016. The Board also determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.

Nature, extent and quality of services

The Board received and considered various information regarding the nature, extent and quality of services provided to the Fund by Funds Management and the Sub-Adviser under the Advisory Agreements. This information included, among other things, a summary of the background and experience of senior management of Funds Management, and the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund. The Board noted that the services to be provided to the Fund pursuant to the Management Agreement combined the advisory services previously provided to the Fund pursuant to the Fund’s Advisory Agreement with the Fund-level administrative services previously provided to the Fund pursuant to the Fund’s Administration Agreement. The Board received a representation from Funds Management that combining these services would not result in any change to the nature or level of services provided by Funds Management to the Fund.

The Board evaluated the ability of Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory and supervisory personnel. The Board further considered the compliance programs and compliance records of Funds Management and the Sub-Adviser. In addition, the Board took into account the full range of services provided to the Fund by Funds Management and its affiliates.

Other information (unaudited) Wells Fargo Advantage Short Duration Government Bond Fund 33

Fund performance and expenses

The Board considered the performance results for the Fund over various time periods ended March 31, 2015. The Board considered these results in comparison to the performance of funds in a universe that was determined by Lipper Inc. (“Lipper”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Lipper is an independent provider of investment company data. The Board received a description of the methodology used by Lipper to select the mutual funds in the performance Universe. The Board noted that the performance of the Fund (Administrator Class) was higher than the average performance of the Universe for all periods under review. The Board also noted that the performance of the Fund was higher than its benchmark, the Barclays 1-3 Year Government Index, for all periods under review.

The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees (which reflect fee waivers, if any, and include advisory, administration and transfer agent fees), custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Lipper to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Lipper to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Lipper reports, the Board noted that the net operating expense ratios of the Fund were lower than the median net operating expense ratios of the expense Groups.

The Board took into account the Fund performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreement and Sub-Advisory Agreement and approve the Management Agreement.

Investment advisory and sub-advisory fee rates

The Board reviewed and considered the contractual investment advisory fee rates that are payable by the Fund to Funds Management for investment advisory services (the “Advisory Agreement Rates”), both on a stand-alone basis and on a combined basis with the Fund’s fund-level and class-level contractual administration fee rates (the “Management Rates”). The Board noted that the Management Rates include transfer agency and sub-transfer agency costs. The Board also noted that the fee rate to be paid by the Fund under the Management Agreement will incorporate the advisory fee and Fund-level administration fee previously payable separately by the Fund under the Fund’s Advisory Agreement and Administration Agreement with Funds Management. The Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Funds Management to the Sub-Adviser for investment sub-advisory services (the “Sub-Advisory Agreement Rates”).

Among other information reviewed by the Board was a comparison of the Management Rates of the Fund with those of other funds in the expense Groups at a common asset level. The Board noted that the Management Rates of the Fund were lower than the average rates for the Fund’s expense Groups for all share classes.

The Board also received and considered information about the portion of the total advisory fee that was retained by Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Funds Management and not delegated to or assumed by the Sub-Adviser, and about Funds Management’s on-going oversight services. However, given the affiliation between Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of the advisory fee between them.

The Board also received and considered information about the nature and extent of services offered and fee rates charged by Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing mutual funds compared with those associated with managing assets of non-mutual fund clients such as collective funds or institutional separate accounts.

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Funds Management under the Management Agreement and Advisory Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable, in light of the services covered by the Advisory Agreements.

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also

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

received and considered information concerning the profitability of the Sub-Adviser from providing services to the fund family as a whole, noting that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo profitability analysis.

Funds Management reported on the methodologies and estimates used in calculating profitability. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size and type of fund. Based on its review, the Board did not deem the profits reported by Funds Management or Wells Fargo from its services to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.

Economies of scale

With respect to possible economies of scale, the Board noted the existence of breakpoints in the Fund’s advisory and management fee structures, and the Fund’s administration fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered that fee waiver and expense reimbursement arrangements and competitive fee rates at the outset are means of sharing potential economies of scale with shareholders of the Fund and the fund family as a whole. The Board considered Funds Management’s view that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments that Funds Management incurs across the fund family as a whole.

The Board concluded that the Fund’s fee and expense arrangements, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.

Other benefits to Funds Management and the Sub-Adviser

The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that various affiliates of Funds Management may receive distribution-related fees, shareholder servicing payments and sub-transfer agency fees in respect of shares sold or held through them and services provided.

The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser, fees earned by Funds Management and the Sub-Adviser from managing a private investment vehicle for the fund family’s securities lending collateral and commissions earned by an affiliated broker from portfolio transactions.

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory Agreement for the period from June 1, 2015 through June 30, 2015, approved the Management Agreement for the period from July 1, 2015 through May 31, 2016, and approved the continuation of the Sub-Advisory Agreement for a one-year term through May 31, 2016. The Board also determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable.

List of abbreviations Wells Fargo Advantage Short Duration Government Bond 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 —  Colombian 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

LIFER —  Long Inverse Floating Exempt Receipts

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

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —   Short Puttable Exempt Adjustable 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. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at wellsfargoadvantagefunds.com. 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, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

© 2015 Wells Fargo Funds Management, LLC. All rights reserved.

236806 10-15 A220/AR220 08-15

Wells Fargo Advantage Short-Term Bond Fund

Annual Report

August 31, 2015

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

Letter to shareholders	2
Performance highlights	4
Fund expenses	8
Portfolio of investments	9
Financial statements
Statement of assets and liabilities	20
Statement of operations	21
Statement of changes in net assets	22
Financial highlights	23
Notes to financial statements	27
Report of independent registered public accounting firm	33
Other information	34
List of abbreviations	40

The views expressed and any forward-looking statements are as of August 31, 2015, 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

Major central banks continued to inject liquidity into global banks and markets through various accommodative monetary policies, including quantitative easing.

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Advantage Short-Term Bond Fund for the 12-month period that ended August 31, 2015. The period was marked by low interest rates, low oil prices, and moderate U.S. economic growth. Short-term investment-grade bonds, as measured by the Barclays U.S. 1–3 Year Government/Credit Bond Index,¹ returned 0.81% during the period. Meanwhile, strong demand for high-quality, liquid assets kept returns on Treasury bills more modest; the Barclays 6-Month Treasury Bill Index² returned 0.15% during the period.

Major central banks continued to provide stimulus.

Major central banks continued to inject liquidity into global banks and markets through various accommodative monetary policies, including quantitative easing. In the U.S., the Federal Reserve (Fed) kept its key interest rate near zero in order to support the economy and the financial system. However, it set expectations for it to begin normalizing monetary policy with higher target ranges for the federal funds rate.

Meanwhile, European markets continued to benefit from the European Central Bank’s (ECB’s) willingness to maintain low interest rates. In addition to its targeted longer-term refinancing operations that are designed to increase bank lending, the ECB expanded its quantitative easing program to include the purchase of eurozone government bonds. In Japan, the Bank of Japan maintained an aggressive monetary program aimed at combating deflation.

Economic growth was moderate, and oil prices plummeted.

U.S. economic growth advanced during the reporting period, the unemployment rate ticked lower to 5.1% as of August 2015, and inflation remained below the Fed’s longer-run objective of a 2% pace. The period was also marked by lower oil prices, which began the reporting period near $90 per barrel but declined to $46 per barrel at the end of August 2015. While lower oil prices benefited consumers of oil products, the lower prices pressured companies within the energy sector.

Bond yields rose but remained low by historical standards.

Short-term interest rates increased during the reporting period, with a flattening in the shape of the short-term yield curve. During this time frame, 1-year Treasury bills rose 29 basis points (bps; 100 bps equals 1.00%) to yield 0.38%, 2-year Treasury note yields rose 21 bps to yield 0.74%, and 3-year Treasury note yields rose only 8 bps to yield 1.05%. Meanwhile, ultra-short-term yields were little changed at ultralow levels, anchored by the easy monetary policy.

Since the end of the financial crisis, structural changes in the fixed-income markets have reduced trading liquidity (the degree to which assets can be bought or sold without affecting the price). New regulations and capital requirements have caused traditional liquidity suppliers (banks and broker/dealers) to be more risk-averse and hold less inventory. Meanwhile, corporate-debt issuance has spiked as companies finance themselves at record-low yields, bond mutual funds hold larger amounts of this new debt supply, trading volumes are lower, and large-size trades are more

¹  The Barclays U.S. 1–3 Year Government/Credit Bond Index is the one- to three-year component of the Barclays U.S. Government/Credit Bond Index that includes securities in the Government and Credit Indexes. 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.

²  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.

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

difficult to execute. However, fixed-income markets appear to have functioned well over the past year with sufficient liquidity and muted volatility.

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

Periods of 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 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 in Wells Fargo Advantage Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.

Sincerely,

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Periods of 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.

Notice to shareholders

At a meeting held on August 11–12, 2015, the Board of Trustees of the Fund approved a change in the name of the Fund whereby the word “Advantage” will be removed from its name, effective December 15, 2015.

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.

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

Investment objective

The Fund seeks current income consistent with capital preservation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Christopher Y. Kauffman, CFA

Jay N. Mueller, CFA

Noah Wise, CFA

Average annual total returns¹ (%) as of August 31, 2015

		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		(1.35	)		1.12		2.78		0.66			1.53		2.98		0.81		0.73
Class C (WFSHX)	3-31-2008		(1.09	)		0.75		2.20		(0.09	)		0.75		2.20		1.56		1.48
Institutional Class (SSHIX)	8-31-1999		–			–		–		0.82			1.82		3.31		0.48		0.48
Investor Class (SSTBX)	8-31-1987		–			–		–		0.54			1.49		2.94		0.84		0.74
Barclays U.S. 1-3 Year Government /Credit Bond Index4	–		–			–		–		0.81			1.03		2.79		–		–

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 a contingent deferred 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. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the Fund and its share price can be sudden and unpredictable. 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 5.

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

Growth of $10,000 investment⁵ as of August 31, 2015

¹  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. 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.

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 manager has contractually committed through December 31, 2015, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver at 0.72% for Class A, 1.47% for Class C, 0.48% for Institutional Class, and 0.73% for Investor Class. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. 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. 1-3 Year Government/Credit Bond Index is the one- to three-year component of the Barclays U.S. Government/Credit Bond Index that includes securities in the Government and Credit Indexes. 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 chart compares the performance of Class A shares for the most recent 10 years with the performance of the Barclays 1-3 Year Government/Credit Index. The chart assumes a hypothetical investment of $10,000 in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 2.00%.

⁶  The ten largest holdings, excluding cash and cash equivalents, are calculated based on the value of the investments divided by total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

⁷  Amounts are calculated based on the total long-term investments of the Fund. These amounts are subject to change and may have changed since the date specified.

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

MANAGER’S DISCUSSION

Fund highlights

n The Fund underperformed its benchmark, the Barclays U.S. 1–3 Year Government/Credit Bond Index, for the 12-month period that ended August 31, 2015.

n The Fund’s overweight to corporate debt had a mixed impact on performance as the higher income generated by this sector was largely offset by spread widening.

n The Fund’s holdings in asset-backed securities (ABS) generated positive excess returns, while mortgage-backed securities (MBS) turned in an uneven performance, with agency-guaranteed residential MBS outperforming Treasuries while commercial MBS generally lagged.

The economic climate remained benign.

The U.S. economy featured trend-like growth, a steadily improving labor market, and generally stable inflation over the past 12 months. Real gross domestic product growth averaged about 2.7% in the most recent four quarters as personal income gains supported consumption. In contrast, business investment softened, in part, due to weakness in the energy industry brought on by a collapse in global oil prices.

The labor market continued to tighten over the past 12 months, as evidenced by a full percentage point decline in the unemployment rate to 5.1%. Nonfarm payrolls expanded at an average pace of about 240,000 per month over the period. Following a persistent theme of this expansion, some of the improvement in the unemployment rate can be attributed to a decline in the labor force participation rate, which fell to 62.6% at the end of the period versus 62.8% a year ago.

The inflationary environment was mixed over the past 12 months as the drop in oil prices pushed the year-over-year change in the headline Consumer Price Index (CPI) down to 0.2% compared with a 1.7% headline inflation rate a year ago. Excluding food and energy, however, the CPI rose 1.8%, which is basically in line with the average rate of core inflation recorded over the past five years.

Monetary policy transitioned from maximal accommodation toward the beginning of a tightening cycle over the past 12 months. The Federal Open Market Committee (FOMC) completed its third round of asset purchases, also known as quantitative easing, in the fourth quarter of 2014, though the monetary authorities continue to reinvest the proceeds of maturing principal and interest payments from their existing portfolio. The FOMC’s overnight rate targets remained unchanged throughout the period, with the federal funds rate held to a range of 0.00% to 0.25%. The FOMC has said an initial hike to the federal funds target rate may be appropriate before the end of 2015, to be followed by a very gradual normalization of monetary policy.

Ten largest holdings6 (%) as of August 31, 2015
Mercedes-Benz Auto Receivables Series 2015-1 Class A2A, 0.82%, 6-15-2018	1.21
Verizon Communications Incorporated, 1.35%, 6-9-2017	1.05
DIRECTV Holdings LLC, 2.40%, 3-15-2017	0.90
Chase Issuance Trust Series 2012-A9 Class A9, 0.35%, 10-16-2017	0.89
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2014-INN Class A, 1.12%, 6-15-2029	0.81
World Omni Automobile Lease Series 2015-A Class A2A, 1.06%, 5-15-2018	0.74
U.S. Treasury Note, 1.38%, 2-28-2019	0.74
Port Arthur TX Navigation District Motiva Enterprises Project, 0.30%, 11-1-2040	0.73
CNH Equipment Trust Series 2015-C Class A2A, 1.10%, 12-17-2018	0.71
Nissan Auto Lease Trust Series 2014-B Class A2A, 0.73%, 4-17-2017	0.68

The Fund remained overweight corporate notes and securitized debt.

During the period, the Fund maintained an overweight to short-term corporate notes and securitized debt while being underweight U.S. Treasuries and agency debentures. About half of Fund assets were invested in corporate debt securities, while the other primary sector commitment was to securitized debt: MBS pass-throughs, ABS, and collateralized mortgage obligations. We maintained the Fund’s duration near 1.85 years.

Please see footnotes on page 5.

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

In this environment of trend-like growth, stable core inflation, and still accommodative monetary policy, we believe that the spread sectors, including both corporate credit and structured product, represented good value, particularly with spreads having widened in recent months. In our view, the spread widening has been more a function of supply concerns and global macro uncertainty than deterioration in domestic fundamentals. That said, corporate credit metrics have weakened in certain industries such as mineral extraction and energy, and management focus on rewarding shareholders has resulted in additional leverage in several industries.

Portfolio allocation⁷ as of August 31, 2015

We expect a gradual rise in short-term interest rates.

The relatively benign domestic economic conditions described above are likely to result in a gradual upward bias toward interest rates. We believe the FOMC is likely to raise the federal funds target rate by 0.75% to 1.00% over the next 12 months, a result which is largely reflected in the current term structure of interest rates. Should market rates diverge from the policy path we think most likely, we will be prepared to modify our duration and yield-curve posture in response to the opportunities presented.

Please see footnotes on page 5.

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 servicing 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 March 1, 2015 to August 31, 2015.

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 3-1-2015		Ending account value 8-31-2015		Expenses paid during the period¹		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,002.87	$	3.63		0.72	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.58	$	3.67		0.72	%
Class C
Actual	$	1,000.00	$	999.08	$	7.41		1.47	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.80	$	7.48		1.47	%
Institutional Class
Actual	$	1,000.00	$	1,004.15	$	2.37		0.47	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.84	$	2.40		0.47	%
Investor Class
Actual	$	1,000.00	$	1,001.67	$	3.68		0.73	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.53	$	3.72		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—August 31, 2015 Wells Fargo Advantage Short-Term Bond Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities: 11.80%
FDIC Series 2010-R1 Class A 144A		2.18	%		5-25-2050	$	2,142,734	$	2,159,098
FDIC Series 2013-R1 Class A 144A		1.15			3-25-2033		1,504,578		1,487,239
FHLMC ±		2.41			9-1-2031		6,907		7,058
FHLMC ±		2.50			4-1-2032		57,160		60,439
FHLMC ±		2.65			7-1-2029		3,673		3,831
FHLMC ±		2.90			5-1-2026		94,252		99,119
FHLMC		3.00			2-15-2024		1,011,265		1,039,022
FHLMC		3.50			6-15-2038		1,128,391		1,180,655
FHLMC		4.50			5-15-2018		149,758		155,848
FHLMC		5.00			10-15-2032		266,851		272,616
FHLMC		6.00			10-1-2021		469,117		512,155
FHLMC		8.50			9-1-2017		39,937		40,785
FHLMC		9.00			8-1-2018		39,695		41,237
FHLMC		9.00			6-1-2019		43,038		45,550
FHLMC		9.00			10-1-2019		133,531		144,740
FHLMC		9.50			12-1-2022		89,990		96,765
FHLMC		10.50			1-1-2016		165		166
FHLMC		10.50			11-1-2017		408		434
FHLMC		10.50			8-1-2018		38,583		40,747
FHLMC		10.50			2-1-2019		887		974
FHLMC		10.50			4-1-2019		377		403
FHLMC		10.50			5-1-2019		377		414
FHLMC		10.50			6-1-2019		2,122		2,329
FHLMC		10.50			7-1-2019		892		974
FHLMC Series 2597 Series AE		5.50			4-15-2033		249,437		274,861
FHLMC Series 2631 Class LC		4.50			6-15-2018		331,234		344,703
FHLMC Series 2642 Class AR		4.50			7-15-2023		395,856		425,361
FHLMC Series 2656 Class BG		5.00			10-15-2032		1,186,564		1,235,856
FHLMC Series 2958 Class QD		4.50			4-15-2020		1,167,330		1,209,291
FHLMC Series 3266 Class D		5.00			1-15-2022		1,274,478		1,332,968
FHLMC Series 3609 Class LA		4.00			12-15-2024		482,248		500,591
FHLMC Series 3656 Class BH		3.00			12-15-2019		1,113,044		1,120,693
FHLMC Series 3778 Class BM		3.50			8-15-2028		458,126		469,869
FHLMC Series 3794 Class LK		3.00			2-15-2024		1,593,479		1,622,461
FHLMC Series 3855 Class HL		3.50			2-15-2026		387,887		402,516
FHLMC Series 3920 Class AB		3.00			9-15-2025		1,057,654		1,084,910
FHLMC Series T-42 Class A6		9.50			2-25-2042		477,216		591,280
FHLMC Series T-57 Class 2A1 ±		3.26			7-25-2043		49,317		52,026
FHLMC Series T-59 Class 2A1 ±		2.92			10-25-2043		1,280,981		1,325,055
FNMA ±		1.45			8-1-2034		703,669		716,975
FNMA ±		2.33			11-1-2031		66,489		69,841
FNMA ±		2.54			10-1-2036		3,388,500		3,608,121
FNMA ±		2.64			7-1-2036		2,155,676		2,303,621
FNMA		2.73			10-1-2017		2,996,982		3,078,700
FNMA		2.93			12-1-2017		2,335,559		2,411,432
FNMA		3.34			4-1-2016		948,771		953,218
FNMA		3.34			9-1-2017		1,391,742		1,446,763
FNMA		3.50			10-1-2023		1,373,322		1,449,795
FNMA		3.50			11-1-2023		826,658		872,697
FNMA		3.69			6-1-2017		3,324,021		3,476,462

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

10 Wells Fargo Advantage Short-Term Bond Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA		3.74	%		5-1-2018	$	2,233,156	$	2,365,664
FNMA		4.00			6-25-2026		1,266,046		1,348,638
FNMA		4.00			8-25-2037		1,069,548		1,097,864
FNMA		5.00			3-25-2034		57,761		57,828
FNMA		5.09			2-1-2016		845,176		844,936
FNMA		5.39			1-1-2018		951,359		992,756
FNMA		5.50			8-25-2034		1,943,655		2,039,584
FNMA		6.00			4-1-2021		570,046		597,876
FNMA		6.00			3-1-2033		764,216		873,789
FNMA		6.28			11-1-2018		535,136		547,244
FNMA		6.50			8-1-2031		429,121		503,818
FNMA		7.60			8-1-2018		196,710		196,604
FNMA		8.00			4-1-2017		58,751		60,625
FNMA		8.00			9-1-2019		30,707		32,496
FNMA		8.00			9-1-2023		6,631		7,054
FNMA		8.33			7-15-2020		22,960		25,279
FNMA		8.50			7-1-2018		29,015		30,659
FNMA		8.50			2-1-2023		27,717		28,069
FNMA		9.00			2-15-2020		1,013		1,163
FNMA		9.00			11-1-2024		89,540		100,812
FNMA		11.00			10-15-2020		7,233		7,410
FNMA Grantor Trust Series 2002-T12 Class A4		9.50			5-25-2042		755,859		941,915
FNMA Series 1989-29 Class Z		10.00			6-25-2019		72,380		80,203
FNMA Series 1989-63 Class Z		9.40			10-25-2019		30,599		32,968
FNMA Series 2002-T1 Class A4		9.50			11-25-2031		63,772		77,401
FNMA Series 2003-15 Class CB		5.00			3-25-2018		667,484		691,084
FNMA Series 2003-41 Class PE		5.50			5-25-2023		1,090,208		1,176,411
FNMA Series 2003-W11 Class A1 ±		3.46			6-25-2033		16,748		17,548
FNMA Series 2003-W6 Class 6A ±		3.13			8-25-2042		1,218,543		1,313,188
FNMA Series 2003-W6 Class PT4 ±		8.67			10-25-2042		103,762		126,863
FNMA Series 2004-32 Class AY		4.00			5-25-2019		301,167		311,378
FNMA Series 2004-90 Class XY		4.00			9-25-2034		735,546		762,350
FNMA Series 2006-48 Class TD		5.50			12-25-2034		93,311		93,632
FNMA Series 2008-53 Class CA		5.00			7-25-2023		848,783		886,619
FNMA Series 2009-M01 Class A2		4.29			7-25-2019		1,334,742		1,445,791
FNMA Series 2011-133 Class A		3.50			6-25-2029		1,544,676		1,603,652
FNMA Series 2011-17 Class ED		3.50			7-25-2025		384,620		398,712
FNMA Series 2011-39 Class CA		3.00			5-25-2024		415,137		425,295
FNMA Series 2011-66 Class BE		3.00			3-25-2025		852,700		873,169
FNMA Series 2011-71 Class DJ		3.00			3-25-2025		1,675,168		1,714,684
FNMA Series G95-2 Class IO ±(c)		10.00			5-25-2020		88,712		4,876
GNMA		4.00			8-16-2023		516,761		539,741
GNMA		4.50			4-20-2035		523,963		552,896
GNMA		8.00			12-15-2023		31,082		36,136
GNMA		9.00			11-15-2017		15,895		16,495
GNMA		9.00			11-15-2024		21,088		23,906
GNMA		10.00			2-20-2018		5,496		5,735
GNMA Series 2008-36 Class AN		4.25			10-16-2022		431,838		440,173
GNMA Series 2008-36 Class NA		4.25			10-16-2022		908,794		926,071
GNMA Series 2010-6 Class EA		4.00			9-16-2023		592,498		612,530

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

Portfolio of investments—August 31, 2015 Wells Fargo Advantage Short-Term Bond Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
GNMA Series 2010-89 Class DG		3.00	%		12-20-2035	$	777,480	$	783,903
GNMA Series 2011-82 Class HT		2.00			7-16-2036		261,521		263,749
GNMA Series 2012-19 Class A		1.83			3-16-2039		4,095,874		4,116,693
Total Agency Securities (Cost $72,068,506)									72,828,599
Asset-Backed Securities: 10.45%
Ally Auto Receivables Trust Series 2015-1 Class A2		0.92			2-15-2018		4,000,000		4,000,604
ASG Resecuritization Trust Series 2009-4 Class A60 144A		6.00			6-28-2037		172,700		173,808
Carmax Auto Owner Trust Series 2015-3 Class A2A		1.10			11-15-2018		3,000,000		3,001,917
Chase Issuance Trust Series 2012-A9 Class A9 ±		0.35			10-16-2017		5,500,000		5,500,000
Citibank Credit Card Issuance Trust Series 2012-A1 Class A1		0.55			10-10-2017		3,000,000		3,000,030
Delta Air Lines Incorporated 2012-1 Series A Pass-Through Trust		4.75			11-7-2021		2,495,131		2,594,936
Ford Credit Auto Lease Trust Series 2014-B Class A2A		0.51			3-15-2017		2,359,280		2,357,886
GE Equipment Transportation LLC Series 2015-1 Class A2		0.89			11-24-2017		1,430,000		1,430,877
GM Financial Automobile Leasing Trust Series 2015-2 Class A2A		1.18			4-20-2018		4,050,000		4,057,173
GMF Floorplan Owner Revolving Trust Series 2015-1 Class A1 144A		1.65			5-15-2020		2,050,000		2,036,948
Home Equity Asset Trust Series 2003-6 Class M1 ±		1.25			2-25-2034		1,408,946		1,331,059
Honda Auto Receivables Owner Trust Series 2014-3 Class A2		0.48			12-15-2016		1,439,284		1,438,435
Honda Auto Receivables Owner Trust Series 2015-3 Class A2		0.92			11-20-2017		3,280,000		3,280,292
Hyundai Auto Lease Securitization Trust Series 2014-A Class A2 144A		0.52			7-15-2016		170,051		170,037
Hyundai Auto Lease Securitization Trust Series 2015-B Class A2A 144A		0.95			12-15-2017		3,300,000		3,302,729
Hyundai Auto Receivables Trust Series 2013-B Class A3		0.71			9-15-2017		1,925,602		1,925,910
Leaf II Receivables Funding LLC Series 2015-1 Class A2 144A		1.13			3-15-2017		1,400,000		1,397,217
Mercedes-Benz Auto Lease Trust Series 2014-A Class A2A		0.48			6-15-2016		498,572		498,557
Mercedes-Benz Auto Receivables Series 2015-1 Class A2A		0.82			6-15-2018		7,500,000		7,481,453
Nissan Auto Lease Trust Series 2014-B Class A2A		0.73			4-17-2017		4,213,687		4,213,611
Susquehanna Auto Receivables Trust Series 2014-1A Class A2 144A		0.58			10-17-2016		639,696		639,384
US Airway 2010-1 Series B Pass-Through Trust		8.50			10-22-2018		1,099,772		1,176,756
Volkswagen Auto Lease Trust Series 2015-A Class A2A		0.87			6-20-2017		3,374,427		3,374,106
Volvo Financial Equipment LLC Series 2014-1A Class A2 144A		0.54			11-15-2016		1,565,313		1,564,845
World Omni Automobile Lease Series 2015-A Class A2A		1.06			5-15-2018		4,600,000		4,598,542
Total Asset-Backed Securities (Cost $64,768,112)									64,547,112
Corporate Bonds and Notes: 35.31%
Consumer Discretionary: 2.70%
Automobiles: 0.48%
Ford Motor Company		6.50			8-1-2018		2,667,000		2,971,374
Media: 1.70%
CCO Safari II LLC 144A		3.58			7-23-2020		3,000,000		2,990,640
Cox Communications Incorporated		5.50			10-1-2015		2,000,000		2,007,528
DIRECTV Holdings LLC		2.40			3-15-2017		5,495,000		5,530,981
									10,529,149
Specialty Retail: 0.52%
International Game Technology		7.50			6-15-2019		3,000,000		3,210,000

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

12 Wells Fargo Advantage Short-Term Bond Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Consumer Staples: 1.31%
Beverages: 0.17%
Constellation Brands Incorporated		7.25	%		9-1-2016	$	1,000,000	$	1,047,500
Food Products: 1.14%
J.M. Smucker Company 144A		1.75			3-15-2018		3,000,000		2,995,929
Kraft Heinz Foods Company 144A		2.00			7-2-2018		2,000,000		1,997,342
Tyson Foods Incorporated		6.60			4-1-2016		1,995,000		2,057,434
									7,050,705
Energy: 3.38%
Energy Equipment & Services: 1.02%
SESI LLC		6.38			5-1-2019		3,000,000		2,985,000
Spectra Energy Capital Company		6.20			4-15-2018		3,000,000		3,281,499
									6,266,499
Oil, Gas & Consumable Fuels: 2.36%
Boardwalk Pipelines LLC		5.88			11-15-2016		1,000,000		1,035,107
DCP Midstream Operating Company		2.50			12-1-2017		3,000,000		2,834,481
Enterprise Products Operating LLC		5.25			1-31-2020		2,010,000		2,207,472
Kinder Morgan Incorporated		3.05			12-1-2019		3,500,000		3,442,086
Pioneer Natural Resources Company		5.88			7-15-2016		2,940,000		3,048,677
Weatherford Bermuda Company		5.50			2-15-2016		2,000,000		2,014,144
									14,581,967
Financials: 16.15%
Banks: 4.36%
Associated Banc Corporation		5.13			3-28-2016		2,000,000		2,041,426
Australia and New Zealand Banking Group Limited 144A		2.40			11-23-2016		3,000,000		3,050,574
Bank of America Corporation		6.50			8-1-2016		3,000,000		3,140,997
Citigroup Incorporated		5.38			8-9-2020		2,000,000		2,231,040
JPMorgan Chase & Company		2.25			1-23-2020		1,500,000		1,480,451
Merrill Lynch & Company Incorporated		5.30			9-30-2015		1,400,000		1,404,556
PNC Bank NA		1.50			2-23-2018		3,000,000		2,975,547
Santander Holdings USA		4.63			4-19-2016		2,000,000		2,043,712
UBS AG		5.88			7-15-2016		3,000,000		3,109,458
Union Bank NA		5.95			5-11-2016		3,325,000		3,430,137
US Bancorp NA		3.44			2-1-2016		2,000,000		2,018,204
									26,926,102
Capital Markets: 2.27%
Ameriprise Financial Incorporated		5.65			11-15-2015		2,000,000		2,020,308
Bear Stearns Companies LLC		5.55			1-22-2017		3,875,000		4,076,089
Goldman Sachs Group Incorporated		6.15			4-1-2018		2,965,000		3,267,406
Lazard Group LLC		6.85			6-15-2017		538,000		582,317
Morgan Stanley		1.88			1-5-2018		2,045,000		2,044,941
Morgan Stanley		2.20			12-7-2018		2,000,000		2,008,184
									13,999,245

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

Portfolio of investments—August 31, 2015 Wells Fargo Advantage Short-Term Bond Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Consumer Finance: 3.56%
Daimler Finance NA LLC 144A		1.65	%		3-2-2018	$	3,000,000	$	2,978,997
Discover Financial Services Company		6.45			6-12-2017		3,000,000		3,244,713
Ford Motor Credit Company		5.63			9-15-2015		1,000,000		1,001,569
General Motors Financial Company		3.15			1-15-2020		3,000,000		2,962,137
Harley-Davidson Financial Services Incorporated 144A		2.70			3-15-2017		3,000,000		3,060,690
Murray Street Investment Trust I		4.65			3-9-2017		4,000,000		4,167,076
Navient Corporation		3.88			9-10-2015		1,500,000		1,492,500
Toll Brothers Finance Corporation		8.91			10-15-2017		2,710,000		3,055,525
									21,963,207
Diversified Financial Services: 1.92%
McGraw Hill Financial Incorporated 144A		2.50			8-15-2018		550,000		552,853
McGraw Hill Financial Incorporated		5.90			11-15-2017		3,500,000		3,792,670
Moody’s Corporation		2.75			7-15-2019		3,000,000		3,036,252
Raymond James Financial Incorporated		4.25			4-15-2016		2,000,000		2,039,056
Toll Road Investors Partnership II LP 144A¤		0.00			2-15-2016		2,500,000		2,450,855
									11,871,686
Insurance: 2.92%
Genworth Financial Incorporated		8.63			12-15-2016		2,000,000		2,112,500
Lincoln National Corporation		8.75			7-1-2019		2,426,000		2,970,693
MetLife Insurance Company 144A		7.70			11-1-2015		3,000,000		3,030,525
Platinum Underwriters Finance Incorporated Series B		7.50			6-1-2017		3,070,000		3,335,331
Reliance Standard 144A		2.38			5-4-2020		2,000,000		1,972,164
Symetra Financial Corporation 144A		6.13			4-1-2016		3,000,000		3,075,204
Unum Group 144A		6.85			11-15-2015		1,533,000		1,550,824
									18,047,241
REITs: 1.12%
American Tower Corporation		4.50			1-15-2018		2,700,000		2,833,007
ARC Properties Operating Partnership LP		2.00			2-6-2017		1,085,000		1,059,231
Realty Income Corporation		2.00			1-31-2018		3,000,000		3,018,876
									6,911,114
Health Care: 1.66%
Biotechnology: 1.00%
Biogen Idec Incorporated		6.88			3-1-2018		3,262,000		3,655,707
Celgene Corporation		2.13			8-15-2018		2,500,000		2,500,438
									6,156,145
Health Care Equipment & Supplies: 0.22%
Zimmer Holdings Incorporated		1.45			4-1-2017		1,370,000		1,365,995
Health Care Providers & Services: 0.44%
UnitedHealth Group Incorporated		1.45			7-17-2017		1,375,000		1,376,048
UnitedHealth Group Incorporated		1.90			7-16-2018		1,375,000		1,378,560
									2,754,608

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

14 Wells Fargo Advantage Short-Term Bond Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Industrials: 2.54%
Aerospace & Defense: 0.52%
L-3 Communications Corporation		5.20	%		10-15-2019	$	3,000,000	$	3,210,849
Building Products: 0.02%
Owens Corning Incorporated		6.50			12-1-2016		148,000		156,276
Commercial Services & Supplies: 0.37%
Boardwalk Pipelines LLC		5.20			6-1-2018		2,179,000		2,258,799
Machinery: 1.03%
CNH Capital LLC		3.25			2-1-2017		1,760,000		1,749,000
CNH Capital LLC		3.88			11-1-2015		1,145,000		1,145,000
SPX Corporation		6.88			9-1-2017		3,250,000		3,461,250
									6,355,250
Road & Rail: 0.60%
JB Hunt Transportation Services Company		3.38			9-15-2015		3,700,000		3,703,563
Information Technology: 1.80%
IT Services: 0.44%
The Western Union Company		2.38			12-10-2015		2,700,000		2,708,718
Semiconductors & Semiconductor Equipment: 0.55%
KLA-Tencor Corporation		2.38			11-1-2017		1,365,000		1,373,810
KLA-Tencor Corporation		3.38			11-1-2019		2,000,000		2,042,596
									3,416,406
Software: 0.81%
CA Incorporated		3.60			8-1-2020		2,000,000		2,004,548
Fidelity National Information Services Incorporated		2.00			4-15-2018		2,000,000		1,964,990
Symantec Corporation		2.75			9-15-2015		1,000,000		1,000,389
									4,969,927
Materials: 1.02%
Construction Materials: 0.53%
Martin Marietta Material ±		1.38			6-30-2017		3,310,000		3,287,859
Metals & Mining: 0.49%
Glencore Funding LLC 144A		1.70			5-27-2016		3,000,000		2,991,849
Telecommunication Services: 2.16%
Diversified Telecommunication Services: 2.16%
AT&T Incorporated		2.45			6-30-2020		1,000,000		990,562
Clearwire Communications LLC 144A		14.75			12-1-2016		2,710,000		3,089,400
Crown Castle Towers LLC 144A		5.50			1-15-2037		2,695,000		2,770,948
Verizon Communications Incorporated		1.35			6-9-2017		6,479,000		6,457,850
									13,308,760

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

Portfolio of investments—August 31, 2015 Wells Fargo Advantage Short-Term Bond Fund 15

Security name	Interest rate			Maturity date		Principal		Value
Utilities: 2.59%
Electric Utilities: 2.59%
Dayton Power & Light Company		1.88	%		9-15-2016	$	4,000,000	$	4,006,572
FPL Group Capital Incorporated		2.60			9-1-2015		3,000,000		3,000,000
Monongahela Power Company 144A		5.70			3-15-2017		3,000,000		3,173,643
NextEra Energy Capital Holdings Incorporated		2.06			9-1-2017		2,725,000		2,732,739
Progress Energy Incorporated		5.63			1-15-2016		3,000,000		3,051,627
									15,964,581
Total Corporate Bonds and Notes (Cost $218,840,093)									217,985,374
Municipal Obligations: 4.08%
California: 1.03%
California Public Works Board Lease Series E (Miscellaneous Revenue)		3.68			12-1-2015		2,960,000		2,979,743
San Bernardino County CA Financing Authority (Miscellaneous Revenue, National Insured) ¤		0.00			8-1-2017		3,500,000		3,366,265
									6,346,008
Florida: 0.23%
Village Center Florida Community Development District Utility (Water & Sewer Revenue) 144A		1.60			10-1-2016		1,445,000		1,443,179
Illinois: 0.30%
Chicago IL (Tax Revenue)		6.30			12-1-2021		1,800,000		1,865,538
Michigan: 0.32%
Michigan Finance Authority Series D5 (Water & Sewer Revenue)		2.85			7-1-2019		2,000,000		1,973,460
New Jersey: 0.95%
New Jersey EDA Series B (Miscellaneous Revenue, AGM Insured) ¤		0.00			2-15-2018		3,000,000		2,785,440
New Jersey EDA Series B (Lease Revenue, AGM Insured) ¤		0.00			2-15-2019		3,500,000		3,101,385
									5,886,825
Oregon: 0.52%
Portland OR Taxable Pension (GO Revenue) ±(m)(n)		0.23			6-1-2019		3,350,000		3,203,438
Texas: 0.73%
Port Arthur TX Navigation District Motiva Enterprises Project (Industrial Development Revenue) ø		0.30			11-1-2040		4,500,000		4,500,000
Total Municipal Obligations (Cost $25,250,303)									25,218,448
Non-Agency Mortgage-Backed Securities: 10.17%
Bank of America Mortgage Securities Series 2002-K Class 3A1 ±		2.63			10-20-2032		20,318		20,462
Bear Stearns Commercial Mortgage Securities Incorporated Series 2005-T20 Class A4A ±		5.26			10-12-2042		28,621		28,591
CNH Equipment Trust Series 2014-A Class A2		0.49			6-15-2017		641,722		641,396
CNH Equipment Trust Series 2015-C Class A2A		1.10			12-17-2018		4,400,000		4,402,028

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

16 Wells Fargo Advantage Short-Term Bond Fund Portfolio of investments—August 31, 2015

Security name		Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage-Backed Securities (continued)
Commercial Mortgage Trust Series 2010-C1 Class A1 144A			3.16	%		7-10-2046	$	689,097	$	688,735
Commercial Mortgage Trust Series 2012-CR2 Class A1			0.82			8-15-2045		1,200,712		1,197,242
Commercial Mortgage Trust Series 2013-FL3 Class B 144A±			2.35			10-13-2028		3,000,000		2,988,885
Commercial Mortgage Trust Series 2014-BBG Class A 144A±			1.00			3-15-2029		2,100,000		2,088,200
ContiMortgage Home Equity Trust Series 1996-2 ±(c)(i)			6.97			7-15-2027		820,871		17,073
Countrywide Home Loans Mortgage Pass-Through Trust Series 2001-HYB1 Class 2A1 ±			2.00			6-19-2031		305,637		276,286
Credit Suisse Mortgage Capital Certificates Series 2006-C5 Class A3			5.31			12-15-2039		1,178,141		1,209,548
Drexel Burnham Lambert CMO Trust Series T Class 4			8.45			9-20-2019		48,083		50,377
EquiFirst Mortgage Loan Trust Series 2003-2 Class 3A3 ±			1.32			9-25-2033		531,499		508,881
Equity Mortgage Trust Series 2014-INNS Class A 144A±			1.04			5-8-2031		3,059,884		3,038,192
FedEx Corporation 1998 Series 981C Pass-Through Certificates			7.02			1-15-2016		605,317		620,450
Golden National Mortgage Asset-Backed Certificates Series 1998-GN1 Class M2 (i)(s)	��		8.02			2-25-2027		34,322		34,294
Greenwich Capital Commercial Funding Corporation Series 2007-GG9 Class A4			5.44			3-10-2039		2,651,572		2,766,900
GS Mortgage Securities Trust Series 2014-GSFL Class A 144A±			1.20			7-15-2031		2,459,841		2,452,555
GSMPS Mortgage Loan Trust Series 1998-1 Class A 144A±			8.00			9-19-2027		290,404		296,332
GSMPS Mortgage Loan Trust Series 2006-RP2 Class 1AF1 144A±			0.60			4-25-2036		1,102,666		921,729
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2006-CB16 Class A4			5.55			5-12-2045		969,954		986,393
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2007-CB18 Class A4			5.44			6-12-2047		2,645,145		2,752,892
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2014-INN Class A 144A±			1.12			6-15-2029		5,000,000		4,986,235
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2014-PHH Class A 144A±			1.39			8-15-2027		3,000,000		3,005,979
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2015-CSMO Class A 144A±			1.44			1-15-2032		3,300,000		3,288,599
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2015-FL7 Class A 144A±			1.44			5-15-2028		2,446,867		2,446,571
JPMorgan Chase Commercial Mortgage Securities Trust Series 2005-LDP5 Class A4 ±			5.41			12-15-2044		1,072,983		1,071,717
JPMorgan Chase Commercial Mortgage Trust Series 2007-LDPX Class AM ±			5.46			1-15-2049		3,300,000		3,388,358
Lehman Brothers UBS Commercial Mortgage Trust Series 2007-C6 Class A4 ±			5.86			7-15-2040		2,754,891		2,872,103
Macquarie Equipment Funding Trust Series 2014-A Class A2 144A			0.80			11-21-2016		2,997,694		2,998,714
Master Mortgages Trust Series 2002-3 Class 4A1 ±			2.63			10-25-2032		9,166		9,159
Morgan Stanley Capital I Series 2006-HQ8 Class A4 ±			5.58			3-12-2044		1,657,420		1,660,396
Morgan Stanley Capital I Series 2007-IQ Class A4			5.81			12-12-2049		2,528,722		2,693,674
NCUA Guaranteed Notes Program Series 2010-C1 Class A2			2.90			10-29-2020		913,625		919,904
NCUA Guaranteed Notes Program Series 2010-C1 Class APT			2.65			10-29-2020		1,757,193		1,764,287
Nomura Asset Acceptance Corporation Series 2005-AR1 Class 1A1 ±			2.48			2-25-2035		501,874		500,655
SBA Tower Trust Series 2014-1A Class C 144A			2.90			10-15-2044		3,000,000		2,984,232
Structured Mortgage Asset Residential Trust Series 1992-5B Class BO ¤(i)			0.00			6-25-2023		6,734		6,565
Wilshire Funding Corporation Series 1996-3 Class M2 ±			7.15			8-25-2032		86,024		84,311
Wilshire Funding Corporation Series 1996-3 Class M3 ±			7.15			8-25-2032		87,621		84,419
Wilshire Funding Corporation Series 1998-2 Class M1 ±			2.00			12-28-2037		29,932		29,325
Total Non-Agency Mortgage-Backed Securities (Cost $63,350,532)										62,782,644

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

Portfolio of investments—August 31, 2015 Wells Fargo Advantage Short-Term Bond Fund 17

Security name	Dividend yield					Shares		Value
Preferred Stocks: 0.24%
Financials: 0.24%
Banks: 0.24%
Huntington Bancshares ±(a)(i)		3.92	%				80,000	$	1,503,402
Total Preferred Stocks (Cost $1,958,484)									1,503,402
	Interest rate			Maturity date		Principal
U.S. Treasury Securities: 1.22%
U.S. Treasury Note		1.38			2-28-2019	$	4,530,000		4,548,048
U.S. Treasury Note		1.38			4-30-2020		2,985,000		2,966,421
Total U.S. Treasury Securities (Cost $7,469,714)									7,514,469
Yankee Corporate Bonds and Notes: 14.91%
Consumer Discretionary: 1.08%
Media: 0.50%
British Sky Broadcasting Group plc 144A		6.10			2-15-2018		2,838,000		3,096,400
Specialty Retail: 0.58%
Seagate HDD Cayman Company		3.75			11-15-2018		3,500,000		3,597,990
Consumer Staples: 0.57%
Food & Staples Retailing: 0.57%
Tesco plc 144A		2.70			1-5-2017		3,470,000		3,492,312
Energy: 2.29%
Energy Equipment & Services: 0.45%
Noble Corporation		4.00			3-16-2018		2,800,000		2,764,888
Oil, Gas & Consumable Fuels: 1.84%
Ecopetrol SA		4.25			9-18-2018		3,000,000		3,084,150
Korea National Oil Corporation 144A		2.75			1-23-2019		3,000,000		3,041,154
Petrobras Global Finance Company		3.25			3-17-2017		2,065,000		1,978,477
Transocean Incorporated		5.55			12-15-2016		3,235,000		3,243,896
									11,347,677
Financials: 9.18%
Banks: 5.99%
Abbey National Treasury Services plc		2.38			3-16-2020		3,000,000		2,986,392
Bank of Nova Scotia 144A		1.65			10-29-2015		3,430,000		3,435,728
Banque Federative du Credit Mutuel SA 144A		1.70			1-20-2017		2,850,000		2,859,773
BPCE SA		1.61			7-25-2017		3,000,000		3,008,472
Canadian Imperial Bank 144A		2.75			1-27-2016		3,000,000		3,025,947
Corporacion Andina De Fomento		3.75			1-15-2016		3,385,000		3,418,725
Experian Finance plc 144A		2.38			6-15-2017		3,800,000		3,822,355
HBOS plc 144A		6.75			5-21-2018		2,000,000		2,206,678
ING Bank NV 144A		1.80			3-16-2018		3,000,000		2,991,978
Lloyds Bank plc		2.00			8-17-2018		1,000,000		999,343

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

18 Wells Fargo Advantage Short-Term Bond Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Banks (continued)
Macquarie Bank Limited 144A«		2.85	%		7-29-2020	$	3,000,000	$	3,022,815
Swedbank Hypotek 144A		2.13			8-31-2016		3,000,000		3,037,257
Westpac Banking Corporation 144A		5.30			10-15-2015		2,150,000		2,162,242
									36,977,705
Diversified Financial Services: 0.75%
Credit Suisse New York		6.00			2-15-2018		1,500,000		1,632,300
Shell International Finance BV		2.13			5-11-2020		3,000,000		2,978,715
									4,611,015
Insurance: 1.46%
Allied World Assurance Company		7.50			8-1-2016		3,000,000		3,159,921
Endurance Specialty Holdings Limited		6.15			10-15-2015		2,850,000		2,866,781
QBE Insurance Group Limited 144A		2.40			5-1-2018		2,985,000		3,004,883
									9,031,585
Real Estate Management & Development: 0.98%
Deutsche Annington Finance BV 144A		3.20			10-2-2017		4,000,000		4,064,148
Korea Land & Housing Corporation 144A		1.88			8-2-2017		2,000,000		2,004,408
									6,068,556
Health Care: 0.48%
Pharmaceuticals: 0.48%
Perrigo Company plc		1.30			11-8-2016		3,000,000		2,981,754
Information Technology: 0.48%
Semiconductors & Semiconductor Equipment: 0.48%
TSMC Global Limited 144A		1.63			4-3-2018		3,035,000		2,988,971
Telecommunication Services: 0.33%
Wireless Telecommunication Services: 0.33%
Telefonica Moviles Chile SA 144A		2.88			11-9-2015		2,000,000		2,004,638
Utilities: 0.50%
Multi-Utilities: 0.50%
Korea Western Power Company 144A		3.13			5-10-2017		3,000,000		3,066,930
Total Yankee Corporate Bonds and Notes (Cost $92,110,089)									92,030,421
	Yield					Shares
Short-Term Investments: 11.79%
Investment Companies: 11.69%
Securities Lending Cash Investments, LLC (l)(r)(u)		0.15					2,921,975		2,921,975
Wells Fargo Advantage Cash Investment Money Market Fund, Select Class (l)(u)		0.15					69,257,438		69,257,438
									72,179,413

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

Portfolio of investments—August 31, 2015 Wells Fargo Advantage Short-Term Bond Fund 19

Security name	Interest rate			Maturity date		Principal		Value
U.S. Treasury Securities: 0.10%
U.S. Treasury Bill #(z)		0.03	%		9-17-2015	$	625,000	$	624,999
Total Short-Term Investments (Cost $72,804,403)									72,804,412

Total investments in securities (Cost $618,620,236) *	99.97	%		617,214,881
Other assets and liabilities, net	0.03			204,608
Total net assets	100.00	%	$	617,419,489

144A The security may be resold in transactions exempt from registration, normally to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933.

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

(c) Investment in an interest-only security entitles holders to receive only the interest payments on the underlying mortgages. The principal amount shown is the notional amount of the underlying mortgages. The rate represents the coupon rate.

¤ The security is issued in zero coupon form with no periodic interest payments.

(m) The security is an auction-rate security which has an interest rate that resets at predetermined short-term intervals through a Dutch auction. The rate shown is the rate in effect at period end.

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

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 rate shown is the rate in effect at period end.

(i) Illiquid security for which the designation as illiquid is unaudited.

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

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

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

(l) The security represents an affiliate of the Fund as defined in the Investment Company Act of 1940.

(r) The investment is a non-registered investment vehicle purchased with cash collateral received from securities on loan.

(u) The rate represents 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. The rate represents the current yield to maturity.

* Cost for federal income tax purposes is $618,620,236 and unrealized gains (losses) consists of:

Gross unrealized gains	$	2,172,898
Gross unrealized losses		(3,578,253	)
Net unrealized losses	$	(1,405,355	)

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

20 Wells Fargo Advantage Short-Term Bond Fund Statement of assets and liabilities —August 31, 2015

Assets
Investments
In unaffiliated securities (including $2,860,108 of securities loaned), at value (cost $546,440,823)	$	545,035,468
In affiliated securities, at value (cost $72,179,413)		72,179,413
Total investments, at value (cost $618,620,236)		617,214,881
Cash		22,772
Receivable for investments sold		1,985,420
Principal paydown receivable		11,665
Receivable for Fund shares sold		672,742
Receivable for interest		3,840,802
Receivable for securities lending income		1,334
Receivable for daily variation margin on open futures contracts		23,250
Prepaid expenses and other assets		47,316
Total assets		623,820,182
Liabilities
Dividends payable		149,183
Payable for investments purchased		2,238,207
Payable for Fund shares redeemed		613,146
Payable upon receipt of securities loaned		2,921,975
Payable for daily variation margin on open futures contracts		112,472
Management fee payable		160,131
Distribution fee payable		7,505
Administration fees payable		69,185
Accrued expenses and other liabilities		128,889
Total liabilities		6,400,693
Total net assets	$	617,419,489
NET ASSETS CONSIST OF
Paid-in capital	$	616,745,319
Undistributed net investment income		43,132
Accumulated net realized gains on investments		2,460,648
Net unrealized losses on investments		(1,829,610	)
Total net assets	$	617,419,489
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	65,454,334
Shares outstanding – Class A1		7,463,506
Net asset value per share – Class A		$8.77
Maximum offering price per share – Class A2		$8.95
Net assets – Class C	$	11,508,498
Shares outstanding – Class C1		1,313,898
Net asset value per share – Class C		$8.76
Net assets – Institutional Class	$	306,832,279
Shares outstanding – Institutional Class1		34,977,735
Net asset value per share – Institutional Class		$8.77
Net assets – Investor Class	$	233,624,378
Shares outstanding – Investor Class1		26,654,285
Net asset value per share – Investor Class		$8.76

¹  The Fund has an unlimited number of authorized shares.

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

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

Statement of operations —year ended August 31, 2015 Wells Fargo Advantage Short-Term Bond Fund 21

Investment income
Interest (net of foreign interest withholding taxes of $1,572)	$	10,841,682
Dividends		58,964
Income from affiliated securities		54,542
Securities lending income, net		1,468
Total investment income		10,956,656
Expenses
Management fee		2,215,503
Administration fees
Class A		98,472
Class C		21,200
Institutional Class		255,953
Investor Class		452,703
Shareholder servicing fees
Class A		153,863
Class C		33,125
Investor Class		594,379
Distribution fee
Class C		99,376
Custody and accounting fees		41,548
Professional fees		52,372
Registration fees		61,137
Shareholder report expenses		44,070
Trustees’ fees and expenses		9,642
Other fees and expenses		13,170
Total expenses		4,146,513
Less: Fee waivers and/or expense reimbursements		(227,890	)
Net expenses		3,918,623
Net investment income		7,038,033
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains on:
Unaffiliated securities		638,758
Futures transactions		1,937,754
Net realized gains on investments		2,576,512
Net change in unrealized gains (losses) on:
Unaffiliated securities		(4,358,266	)
Futures transactions		(536,619	)
Net change in unrealized gains (losses) on investments		(4,894,885	)
Net realized and unrealized gains (losses) on investments		(2,318,373	)
Net increase in net assets resulting from operations	$	4,719,660

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

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

	Year ended August 31, 2015						Year ended August 31, 2014
Operations
Net investment income				$	7,038,033					$	8,049,360
Net realized gains on investments					2,576,512						1,660,981
Net change in unrealized gains (losses) on investments					(4,894,885	)					2,395,846
Net increase in net assets resulting from operations					4,719,660						12,106,187
Distributions to shareholders from
Net investment income
Class A					(611,894	)					(785,936	)
Class C					(32,258	)					(61,579	)
Institutional Class					(4,040,692	)					(4,551,352	)
Investor Class					(2,344,424	)					(2,784,889	)
Net realized gains
Class A					(151,151	)					0
Class C					(33,347	)					0
Institutional Class					(806,358	)					0
Investor Class					(572,046	)					0
Total distributions to shareholders					(8,592,170	)					(8,183,756	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		4,914,966			43,266,990			4,711,737			41,479,785
Class C		335,725			2,949,884			485,053			4,264,729
Institutional Class		20,218,812			177,920,421			22,820,784			201,021,960
Investor Class		4,502,556			39,601,187			5,760,381			50,701,458
					263,738,482						297,467,932
Reinvestment of distributions
Class A		75,345			662,376			76,536			674,307
Class C		5,808			50,955			5,618			49,419
Institutional Class		327,146			2,877,470			303,096			2,671,966
Investor Class		313,223			2,752,124			295,606			2,603,622
					6,342,925						5,999,314
Payment for shares redeemed
Class A		(4,323,667	)		(38,041,780	)		(5,499,067	)		(48,464,493	)
Class C		(713,141	)		(6,266,736	)		(710,751	)		(6,249,544	)
Institutional Class		(23,028,729	)		(202,625,671	)		(16,348,750	)		(144,017,590	)
Investor Class		(6,220,552	)		(54,684,744	)		(6,315,079	)		(55,569,852	)
					(301,618,931	)					(254,301,479	)
Net increase (decrease) in net assets resulting from capital share transactions					(31,537,524	)					49,165,767
Total increase (decrease) in net assets					(35,410,034	)					53,088,198
Net assets
Beginning of period					652,829,523						599,741,325
End of period				$	617,419,489					$	652,829,523
Undistributed net investment income				$	43,132					$	34,367

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

Financial highlights Wells Fargo Advantage Short-Term Bond Fund 23

(For a share outstanding throughout each period)

	Year ended August 31
CLASS A	2015			2014			2013			2012			2011
Net asset value, beginning of period		$8.82			$8.77			$8.81			$8.76			$8.73
Net investment income		0.09			0.10			0.10			0.14			0.16
Net realized and unrealized gains (losses) on investments		(0.03	)		0.05			(0.04	)		0.05			0.04
Total from investment operations		0.06			0.15			0.06			0.19			0.20
Distributions to shareholders from
Net investment income		(0.09	)		(0.10	)		(0.10	)		(0.14	)		(0.17	)
Net realized gains		(0.02	)		0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.11	)		(0.10	)		(0.10	)		(0.14	)		(0.17	)
Net asset value, end of period		$8.77			$8.82			$8.77			$8.81			$8.76
Total return1		0.66	%		1.72	%		0.72	%		2.22	%		2.33	%
Ratios to average net assets (annualized)
Gross expenses		0.80	%		0.82	%		0.87	%		0.90	%		0.89	%
Net expenses		0.74	%		0.78	%		0.80	%		0.80	%		0.80	%
Net investment income		1.00	%		1.12	%		1.17	%		1.63	%		1.84	%
Supplemental data
Portfolio turnover rate		57	%		70	%		75	%		44	%		51	%
Net assets, end of period (000s omitted)		$65,454			$59,962			$65,812			$69,247			$56,555

¹  Total return calculations do not include any sales charges.

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)

	Year ended August 31
CLASS C	2015			2014			2013			2012			2011
Net asset value, beginning of period		$8.81			$8.76			$8.80			$8.75			$8.73
Net investment income		0.02			0.03			0.04			0.08			0.10
Net realized and unrealized gains (losses) on investments		(0.03	)		0.05			(0.04	)		0.05			0.03
Total from investment operations		(0.01	)		0.08			0.00			0.13			0.13
Distributions to shareholders from
Net investment income		(0.02	)		(0.03	)		(0.04	)		(0.08	)		(0.11	)
Net realized gains		(0.02	)		0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.04	)		(0.03	)		(0.04	)		(0.08	)		(0.11	)
Net asset value, end of period		$8.76			$8.81			$8.76			$8.80			$8.75
Total return1		(0.09	)%		0.97	%		(0.03	)%		1.46	%		1.45	%
Ratios to average net assets (annualized)
Gross expenses		1.55	%		1.57	%		1.62	%		1.65	%		1.65	%
Net expenses		1.49	%		1.53	%		1.55	%		1.55	%		1.55	%
Net investment income		0.25	%		0.37	%		0.42	%		0.89	%		1.10	%
Supplemental data
Portfolio turnover rate		57	%		70	%		75	%		44	%		51	%
Net assets, end of period (000s omitted)		$11,508			$14,852			$16,686			$18,501			$19,510

¹  Total return calculations do not include any sales charges.

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)

	Year ended August 31
INSTITUTIONAL CLASS	2015			2014			2013			2012			2011
Net asset value, beginning of period		$8.83			$8.77			$8.81			$8.77			$8.74
Net investment income		0.11			0.12			0.13			0.17			0.19
Net realized and unrealized gains (losses) on investments		(0.04	)		0.07			(0.04	)		0.04			0.04
Total from investment operations		0.07			0.19			0.09			0.21			0.23
Distributions to shareholders from
Net investment income		(0.11	)		(0.13	)		(0.13	)		(0.17	)		(0.20	)
Net realized gains		(0.02	)		0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.13	)		(0.13	)		(0.13	)		(0.17	)		(0.20	)
Net asset value, end of period		$8.77			$8.83			$8.77			$8.81			$8.77
Total return		0.82	%		2.15	%		1.04	%		2.43	%		2.66	%
Ratios to average net assets (annualized)
Gross expenses		0.47	%		0.49	%		0.53	%		0.57	%		0.56	%
Net expenses		0.47	%		0.47	%		0.48	%		0.48	%		0.48	%
Net investment income		1.26	%		1.42	%		1.47	%		1.95	%		2.17	%
Supplemental data
Portfolio turnover rate		57	%		70	%		75	%		44	%		51	%
Net assets, end of period (000s omitted)		$306,832			$330,613			$269,123			$282,512			$327,124

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)

	Year ended August 31
INVESTOR CLASS	2015			2014			2013			2012			2011
Net asset value, beginning of period		$8.82			$8.76			$8.80			$8.76			$8.73
Net investment income		0.09			0.09			0.10			0.14			0.16
Net realized and unrealized gains (losses) on investments		(0.04	)		0.07			(0.04	)		0.04			0.04
Total from investment operations		0.05			0.16			0.06			0.18			0.20
Distributions to shareholders from
Net investment income		(0.09	)		(0.10	)		(0.10	)		(0.14	)		(0.17	)
Net realized gains		(0.02	)		0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.11	)		(0.10	)		(0.10	)		(0.14	)		(0.17	)
Net asset value, end of period		$8.76			$8.82			$8.76			$8.80			$8.76
Total return		0.54	%		1.83	%		0.70	%		2.08	%		2.30	%
Ratios to average net assets (annualized)
Gross expenses		0.82	%		0.85	%		0.90	%		0.93	%		0.92	%
Net expenses		0.75	%		0.79	%		0.82	%		0.83	%		0.83	%
Net investment income		0.99	%		1.10	%		1.15	%		1.61	%		1.82	%
Supplemental data
Portfolio turnover rate		57	%		70	%		75	%		44	%		51	%
Net assets, end of period (000s omitted)		$233,624			$247,403			$248,120			$248,254			$248,514

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

Notes to financial statements Wells Fargo Advantage Short-Term Bond Fund 27

1. ORGANIZATION

Wells Fargo Funds Trust (the “Trust”), a Delaware statutory trust organized on March 10, 1999, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As an investment company, the Trust follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies. 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).

Debt securities are valued at the evaluated bid price provided by an independent pricing service or, if a reliable price is not available, the quoted bid price from an independent broker-dealer.

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

Equity securities that are not listed on a foreign or domestic exchange or market, but have a public trading market, are valued at the quoted bid price from an independent broker-dealer that the Management Valuation Team of Wells Fargo Funds Management, LLC (“Funds Management”) has determined is an acceptable source.

Investments in registered open-end investment companies are valued at net asset value. Interests in non-registered investment vehicles that are redeemable at net asset value are fair valued at net asset value when available.

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. 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 manager 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

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

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 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 is 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 is recorded net of 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.

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

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. Class specific expenses are charged directly to that share class. Investment income, common expenses, and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.

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.

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of August 31, 2015:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in :
Agency securities	$	0	$	72,828,599	$	0	$	72,828,599
Asset-backed securities		0		64,547,112		0		64,547,112
Corporate bonds and notes		0		217,985,374		0		217,985,374
Municipal obligations		0		25,218,448		0		25,218,448
Non-agency mortgage backed securities		0		62,782,644		0		62,782,644
Preferred stocks
Financials		0		0		1,503,402		1,503,402
U.S. Treasury securities		7,514,469		0		0		7,514,469
Yankee corporate bonds and notes		0		92,030,421		0		92,030,421
Short-term investments
Investment companies		69,257,438		2,921,975		0		72,179,413
U.S. Treasury securities		624,999		0		0		624,999
		77,396,906		538,314,573		1,503,402		617,214,881
Futures contracts		23,250		0		0		23,250
Total assets	$	77,420,156	$	538,314,573	$	1,503,402	$	617,238,131
Liabilities
Futures contracts	$	112,472	$	0	$	0	$	112,472
Total liabilities	$	112,472	$	0	$	0	$	112,472

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

Futures contracts are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. All other assets and liabilities are reported at their market value at measurement date.

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At August 31, 2015, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

4. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the applicable subadviser providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.35% and declining to 0.255% as the average daily net assets of the Fund increase.

Prior to July 1, 2015, Funds Management provided advisory services pursuant to an investment advisory agreement and was entitled to receive an annual fee which started at 0.30% and declined to 0.225% as the average daily net assets of the Fund increased. In addition, fund-level administrative services were provided by Funds Management under a separate administration agreement at an annual fee which started at 0.05% and declined to 0.03% as the average daily net assets of the Fund increased. For financial statement purposes, the advisory fee and fund-level administration fee for the year ended August 31, 2015 have been included in management fee on the Statement of Operations.

For the year ended August 31, 2015, the management fee was equivalent to an annual rate of 0.35% 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 fees

Under a class-level administration agreement, Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Funds Management receives an annual 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 management 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, 2015 to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s expenses at 0.72% for Class A shares, 1.47% for Class C shares, 0.48% for Institutional shares, and 0.73% for Investor shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. Prior to
January 1, 2015, the Fund’s expenses were capped at 0.77% for Class A shares, 1.52% for Class C shares, and 0.78% for Investor Class shares.

Distribution fee

The Trust has adopted a distribution plan for Class C shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is 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.

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

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the year ended August 31, 2015, Funds Distributor received $1,438 from the sale of Class A shares.

Shareholder servicing fees

The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class C, 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 year ended August 31, 2015 were as follows:

Purchases at cost		Sales proceeds
U.S. government	Non-U.S. government	U.S. government	Non-U.S. government
$18,742,450	$397,619,709	$1,614,215	$336,256,645

6. DERIVATIVE TRANSACTIONS

During the year ended August 31, 2015, the Fund entered into futures contracts to speculate on interest rates and to help manage the duration of the portfolio.

At August 31, 2015, the Fund had long and short futures contracts outstanding as follows:

Expiration date	Counterparty	Contracts	Type		Contract value at August 31, 2015		Unrealized gains (losses)
12-31-2015	JPMorgan	1075 Long		2-Year U.S. Treasury Notes	$	234,853,906	$	(602,636	)
12-31-2015	JPMorgan	186 Short		5-Year U.S. Treasury Notes		22,215,375		178,381

The Fund had an average notional amount of $188,768,717 and $11,329,049 in long and short futures contracts, respectively, during the year ended August 31, 2015.

On August 31, 2015, the cumulative unrealized losses on futures contracts in the amount of $424,255 are reflected in net unrealized losses 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 derivatives. Cash collateral that has been pledged to cover obligations of the Fund under ISDA Master Agreements or similar agreements, 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

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

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 of assets
Futures – variation margin	JPMorgan	$23,250	$	(23,250	)	$	0	$	0

Derivative type	Counterparty	Gross amounts of liabilities in the Statement of Assets and Liabilities	Amounts subject to netting agreements			Collateral pledged1			Net amount of liabilities
Futures – variation margin	JPMorgan	$112,472	$	(23,250	)	$	(89,222	)	$	0

¹  Collateral pledged within this table is limited to the collateral for the net transaction with the counterparty.

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 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 year ended August 31, 2015, the Fund paid $704 in commitment fees.

For the year ended August 31, 2015, there were no borrowings by the Fund under the agreement.

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended August 31, 2015 and August 31, 2014 were as follows:

	Year ended August 31
	2015		2014
Ordinary income	$	8,008,998	$	8,183,756
Long-term capital gain		583,172		0

As of August 31, 2015, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Undistributed long-term gain	Unrealized losses
$1,003,944	$1,307,846	$(1,488,437)

9. INDEMNIFICATION

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

Report of independent registered public accounting firm Wells Fargo Advantage Short-Term Bond Fund 33

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Advantage Short-Term Bond Fund (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, as of August 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of August 31, 2015, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Advantage Short-Term Bond Fund as of August 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

October 26, 2015

34 Wells Fargo Advantage Short-Term Bond Fund Other information (unaudited)

TAX INFORMATION

Pursuant to Section 852 of the Internal Revenue Code, $583,172 was designated as long-term capital gain distributions for the fiscal year ended August 31, 2015.

For the fiscal year ended August 31, 2015, $5,516,548 has been designated as interest-related dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

For the fiscal year ended August 31, 2015, $979,729 has been designated as short-term capital gain dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at 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 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 monthly on the Fund’s website (wellsfargoadvantagefunds.com), on a one-month delayed basis. In addition, top ten holdings information (excluding derivative positions) 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 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 Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo Advantage family of funds, which consists of 133 mutual funds 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. 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 or longer	Other public company or investment company directorships during past 5 years
William R. Ebsworth (Born 1957)	Trustee, since 2015**	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director at Fidelity Management and Research Company and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. in Boston, Tokyo, and Hong Kong where he led a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Mr. Ebsworth is a CFA ® charterholder and an Adjunct Lecturer, Finance, at Babson College.	Asset Allocation Trust
Jane A. Freeman (Born 1953)	Trustee, since 2015**	Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is Chair of Taproot Foundation (non-profit organization), a Board Member of Ruth Bancroft Garden (non-profit organization) and an inactive chartered financial analyst.	Asset Allocation Trust; Harding Loevner Funds; Russell Exchange Traded Funds Trust
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. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business (charter school). Advisory Board Member, Palm Harbor Academy. Mr. Harris is a certified public accountant.	CIGNA 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
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

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 or longer	Other public company or investment company directorships during past 5 years
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 Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
Michael S. Scofield (Born 1943)	Trustee, since 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 complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust
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.

** William R. Ebsworth and Jane A. Freeman each became a Trustee effective January 1, 2015.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Karla M. Rabusch (Born 1959)	President, since 2003	Executive Vice President of Wells Fargo Bank, N.A. and President of Wells Fargo Funds Management, L LC since 2003.
Nancy Wiser1 (Born 1967)	Treasurer, since 2012	Executive Vice President of Wells Fargo Funds Management, LLC since 2011. Chief Operating Officer and Chief Compliance Officer at LightBox Capital Management LLC, from 2008 to 2011.
C. David Messman (Born 1960)	Secretary, since 2000; Chief Legal Officer, since 2003	Senior Vice President and Secretary of Wells Fargo Funds Management, LLC since 2001. Assistant General Counsel of Wells Fargo Bank, N.A. since 2013 and Vice President and Managing Counsel of Wells Fargo Bank N.A. from 1996 to 2013.
Debra Ann Early (Born 1964)	Chief Compliance Officer, since 2007	Executive Vice President of Wells Fargo Funds Management, LLC since 2014, Senior Vice President and Chief Compliance Officer from 2007 to 2014.
David Berardi (Born 1975)	Assistant Treasurer, since 2009	Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.
Jeremy DePalma1 (Born 1974)	Assistant Treasurer, since 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 and head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.

¹  Nancy Wiser acts as Treasurer of 72 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 61 funds and Assistant Treasurer of 72 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.

Other information (unaudited) Wells Fargo Advantage Short-Term Bond Fund 37

BOARD CONSIDERATION OF INVESTMENT ADVISORY, INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment advisory and sub-advisory agreements. In this regard, at an in-person meeting held on May 19-20, 2015 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment advisory and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo Advantage Short-Term Bond Fund (the “Fund”): (i) an investment advisory agreement (the “Advisory Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); (ii) an investment management agreement (the “Management Agreement”) with Funds Management; and (iii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the “Sub-Adviser”), an affiliate of Funds Management. The Management Agreement combines the terms of the Advisory Agreement with the terms of the Fund’s Amended and Restated Administration Agreement (the “Administration Agreement”) applicable to Fund-level administrative services. The Advisory Agreement, the Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”

At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in March 2015, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2015. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

After its deliberations, the Board unanimously approved the continuation of the Advisory Agreement for the period from June 1, 2015 through June 30, 2015, approved the Management Agreement for the period from July 1, 2015 through May 31, 2016, and approved the continuation of the Sub-Advisory Agreement for a one-year term through May 31, 2016. The Board also determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.

Nature, extent and quality of services

The Board received and considered various information regarding the nature, extent and quality of services provided to the Fund by Funds Management and the Sub-Adviser under the Advisory Agreements. This information included, among other things, a summary of the background and experience of senior management of Funds Management, and the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund. The Board noted that the services to be provided to the Fund pursuant to the Management Agreement combined the advisory services previously provided to the Fund pursuant to the Fund’s Advisory Agreement with the Fund-level administrative services previously provided to the Fund pursuant to the Fund’s Administration Agreement. The Board received a representation from Funds Management that combining these services would not result in any change to the nature or level of services provided by Funds Management to the Fund.

38 Wells Fargo Advantage Short-Term Bond Fund Other information (unaudited)

The Board evaluated the ability of Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory and supervisory personnel. The Board further considered the compliance programs and compliance records of Funds Management and the Sub-Adviser. In addition, the Board took into account the full range of services provided to the Fund by Funds Management and its affiliates.

Fund performance and expenses

The Board considered the performance results for the Fund over various time periods ended March 31, 2015. The Board considered these results in comparison to the performance of funds in a universe that was determined by Lipper Inc. (“Lipper”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Lipper is an independent provider of investment company data. The Board received a description of the methodology used by Lipper to select the mutual funds in the performance Universe. The Board noted that the performance of the Fund (Class A) was higher than or in range of the average performance of the Universe for all periods under review. The Board also noted that the performance of the Fund was higher than its benchmark, the Barclays 1-3 Year Government/Credit Index, for all periods under review.

The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees (which reflect fee waivers, if any, and include advisory, administration and transfer agent fees), custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Lipper to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Lipper to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Lipper reports, the Board noted that the net operating expense ratios of the Fund were lower than or in range of the median net operating expense ratios of the expense Groups for all share classes except the Investor Class. The Board discussed and accepted Funds Management’s proposal to convert the Investor Class shares into Class A shares.

The Board took into account the Fund performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreement and Sub-Advisory Agreement and approve the Management Agreement.

Investment advisory and sub-advisory fee rates

The Board reviewed and considered the contractual investment advisory fee rates that are payable by the Fund to Funds Management for investment advisory services (the “Advisory Agreement Rates”), both on a stand-alone basis and on a combined basis with the Fund’s fund-level and class-level contractual administration fee rates (the “Management Rates”). The Board noted that the Management Rates include transfer agency and sub-transfer agency costs. The Board also noted that the fee rate to be paid by the Fund under the Management Agreement will incorporate the advisory fee and Fund-level administration fee previously payable separately by the Fund under the Fund’s Advisory Agreement and Administration Agreement with Funds Management. The Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Funds Management to the Sub-Adviser for investment sub-advisory services (the “Sub-Advisory Agreement Rates”).

Among other information reviewed by the Board was a comparison of the Management Rates of the Fund with those of other funds in the expense Groups at a common asset level. The Board noted that the Management Rates of the Fund were lower than or in range of the average rates for the Fund’s expense Groups for all share classes.

The Board also received and considered information about the portion of the total advisory fee that was retained by Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Funds Management and not delegated to or assumed by the Sub-Adviser, and about Funds Management’s on-going oversight services. However, given the affiliation between Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of the advisory fee between them.

The Board also received and considered information about the nature and extent of services offered and fee rates charged by Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing mutual funds compared with those associated with managing assets of non-mutual fund clients such as collective funds or institutional separate accounts.

Other information (unaudited) Wells Fargo Advantage Short-Term Bond Fund 39

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Funds Management under the Management Agreement and Advisory Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable, in light of the services covered by the Advisory Agreements.

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also received and considered information concerning the profitability of the Sub-Adviser from providing services to the fund family as a whole, noting that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo profitability analysis.

Funds Management reported on the methodologies and estimates used in calculating profitability. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size and type of fund. Based on its review, the Board did not deem the profits reported by Funds Management or Wells Fargo from its services to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.

Economies of scale

With respect to possible economies of scale, the Board noted the existence of breakpoints in the Fund’s advisory and management fee structures, and the Fund’s administration fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered that fee waiver and expense reimbursement arrangements and competitive fee rates at the outset are means of sharing potential economies of scale with shareholders of the Fund and the fund family as a whole. The Board considered Funds Management’s view that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments that Funds Management incurs across the fund family as a whole.

The Board concluded that the Fund’s fee and expense arrangements, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.

Other benefits to Funds Management and the Sub-Adviser

The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that various affiliates of Funds Management may receive distribution-related fees, shareholder servicing payments and sub-transfer agency fees in respect of shares sold or held through them and services provided.

The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser, fees earned by Funds Management and the Sub-Adviser from managing a private investment vehicle for the fund family’s securities lending collateral and commissions earned by an affiliated broker from portfolio transactions.

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory Agreement for the period from June 1, 2015 through June 30, 2015, approved the Management Agreement for the period from July 1, 2015 through May 31, 2016, and approved the continuation of the Sub-Advisory Agreement for a one-year term through May 31, 2016. The Board also determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable.

40 Wells Fargo Advantage Short-Term Bond Fund List of abbreviations

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

ACA —  ACA Financial Guaranty Corporation

ADR —  American depositary receipt

ADS —  American depositary shares

AGC —  Assured Guaranty Corporation

AGM —  Assured Guaranty Municipal

Ambac —  Ambac Financial Group Incorporated

AMT —  Alternative minimum tax

AUD —  Australian dollar

BAN —  Bond anticipation notes

BHAC —  Berkshire Hathaway Assurance Corporation

BRL —  Brazilian real

CAB —  Capital appreciation bond

CAD —  Canadian dollar

CCAB —  Convertible capital appreciation bond

CDA —  Community Development Authority

CDO —  Collateralized debt obligation

CHF —  Swiss franc

COP —  Colombian 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

LIFER —  Long Inverse Floating Exempt Receipts

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

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —   Short Puttable Exempt Adjustable 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. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at wellsfargoadvantagefunds.com. 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, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

© 2015 Wells Fargo Funds Management, LLC. All rights reserved.

236807 10-15 A221/AR221 08-15

Wells Fargo Advantage

Short-Term High Yield Bond Fund

Annual Report

August 31, 2015

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	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
Report of independent registered public accounting firm	30
Other information	31
List of abbreviations	37

The views expressed and any forward-looking statements are as of August 31, 2015, 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

Major central banks continued to inject liquidity into global banks and markets through various accommodative monetary policies, including quantitative easing.

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Advantage Short-Term High Yield Bond Fund for the 12-month period that ended August 31, 2015. The period was marked by low interest rates, low oil prices, and moderate U.S. economic growth. Short-term investment-grade bonds, as measured by the Barclays U.S. 1-3 Year Government/Credit Bond Index,¹ returned 0.81% during the period. Meanwhile, strong demand for high-quality, liquid assets kept returns on Treasury bills more modest; the Barclays 6-Month Treasury Bill Index² returned 0.15% during the period.

Major central banks continued to provide stimulus.

Major central banks continued to inject liquidity into global banks and markets through various accommodative monetary policies, including quantitative easing. In the U.S., the Federal Reserve (Fed) kept its key interest rate near zero in order to support the economy and the financial system. However, it set expectations for it to begin normalizing monetary policy with higher target ranges for the federal funds rate.

Meanwhile, European markets continued to benefit from the European Central Bank’s (ECB’s) willingness to maintain low interest rates. In addition to its targeted longer-term refinancing operations that are designed to increase bank lending, the ECB expanded its quantitative easing program to include the purchase of eurozone government bonds. In Japan, the Bank of Japan maintained an aggressive monetary program aimed at combating deflation.

Economic growth was moderate, and oil prices plummeted.

U.S. economic growth advanced during the reporting period, the unemployment rate ticked lower to 5.1% as of August 2015, and inflation remained below the Fed’s longer-run objective of a 2% pace. The period was also marked by lower oil prices, which began the reporting period near $90 per barrel but declined to $46 per barrel at the end of August 2015. While lower oil prices benefited consumers of oil products, the lower prices pressured companies within the energy sector.

Bond yields rose but remained low by historical standards.

Short-term interest rates increased during the reporting period, with a flattening in the shape of the short-term yield curve. During this time frame, 1-year Treasury bills rose 29 basis points (bps; 100 bps equals 1.00%) to yield 0.38%, 2-year Treasury note yields rose 21 bps to yield 0.74%, and 3-year Treasury note yields rose only 8 bps to yield 1.05%. Meanwhile, ultra-short-term yields were little changed at ultralow levels, anchored by the easy monetary policy.

Since the end of the financial crisis, structural changes in the fixed-income markets have reduced trading liquidity (the degree to which assets can be bought or sold without affecting the price). New regulations and capital requirements have caused traditional liquidity suppliers (banks and broker/dealers) to be more risk-averse and hold less inventory. Meanwhile, corporate-debt issuance has

¹  The Barclays U.S. 1–3 Year Government/Credit Bond Index is the one- to three-year component of the Barclays U.S. Government/Credit Bond Index that includes securities in the Government and Credit Indexes. 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.

²  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.

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

spiked as companies finance themselves at record-low yields, bond mutual funds hold larger amounts of this new debt supply, trading volumes are lower, and large-size trades are more difficult to execute. However, fixed-income markets appear to have functioned well over the past year with sufficient liquidity and muted volatility.

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

Periods of 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 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 in Wells Fargo Advantage Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.

Sincerely,

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Periods of 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.

Notice to shareholders

At a meeting held on August 11–12, 2015, the Board of Trustees of the Fund approved a change in the name of the Fund whereby the word “Advantage” will be removed from its name, effective December 15, 2015.

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.

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

Investment objective

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

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Kevin J. Maas, CFA

Thomas M. Price, CFA

Michael J. Schueller, CFA

Average annual total returns¹ (%) as of August 31, 2015

		Including sales charge							Excluding sales charge							Expense ratios2 (%)
	Inception date	1 year			5 year		10 year		1 year			5 year		10 year		Gross		Net3
Class A (SSTHX)	2-29-2000		(1.58	)		3.13		3.87		1.46			3.77		4.19		0.92		0.83
Class C (WFHYX)	3-31-2008		(0.30	)		2.99		3.42		0.70			2.99		3.42		1.67		1.58
Administrator Class (WDHYX)	7-30-2010		–			–		–		1.62			3.93		4.27		0.86		0.67
Institutional Class (STYIX)	11-30-2012		–			–		–		1.90			3.99		4.29		0.59		0.52
Investor Class (STHBX)	6-30-1997		–			–		–		1.43			3.73		4.17		0.95		0.86
BofA Merrill Lynch High Yield U.S. Corporates, Cash Pay, BB Rated, 1-5 Year Index4	–		–			–		–		1.45			6.33		6.77		–		–
Short-Term High Yield Bond Index III5	–		–			–		–		(0.24	)		6.23		6.80		–		–
BofA Merrill Lynch High Yield U.S. Corporates, Cash Pay, B Rated, 1-5 Year Index6	–		–			–		–		(4.12	)		5.99		6.76		–		–

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 a contingent deferred 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. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the fund and its share price can be sudden and unpredictable. 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 5.

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

Growth of $10,000 investment⁷ as of August 31, 2015

¹  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. 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.

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 manager has contractually committed through December 31, 2015, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver 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. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. 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  Source: Wells Fargo Funds Management, LLC. 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 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.

⁷  The chart compares the performance of Class A shares for the most recent 10 years with the performance of the BofA Merrill Lynch High Yield U.S. Corporates, Cash Pay, BB Rated, 1-5 Year Index, the Short-Term High Yield Bond Index III, and the BofA Merrill Lynch High Yield U.S. Corporates, Cash Pay, B Rated, 1-5 Year Index. The chart assumes a hypothetical investment of $10,000 in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 3.00%.

⁸  The ten largest holdings, excluding cash and cash equivalents, are calculated based on the value of the investments divided by total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

⁹  The credit quality distribution 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 distribution is subject to change and may have changed since the date specified.

¹⁰  The option-adjusted spread measures the yield difference between an income-paying security and a comparable maturity U.S. Treasury, with an adjustment to account for an embedded option on the security.

6 Wells Fargo Advantage Short-Term High Yield Bond Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

n The Fund (Class A, excluding sales charges) outperformed the BofA Merrill Lynch High Yield U.S. Corporates, Cash Pay, BB Rated, 1-5 Year Index and the Short-Term High Yield Bond Index III for the 12-month period that ended August 31, 2015.

n The Fund modestly outperformed the BofA Merrill Lynch High Yield U.S. Corporates, Cash Pay, BB Rated, 1-5 Year Index because the benefits of conservative credit selection offset weakness in the Fund’s energy holdings early in the period. The Fund outperformed the Short-Term High Yield Bond Index III due to the index having 30% in B-rated bonds, which underperformed the Fund’s more conservative portfolio.

n We continue to believe that we are in a period of modest economic growth and decent credit fundamentals. As part of that scenario, we expect to continue to see a below-average default rate, excluding the commodity sectors. Given our objective of delivering a lower-volatility offering in the high-yield space, we intend to continue with our conservative credit selection.

The Fund’s investments in relatively higher-rated, short-term high-yield securities allowed it to outperform during a weak period for the high-yield market.

The U.S. economy continued to grow modestly during the 12-month period. Despite moderate economic growth and an accommodative U.S. Federal Reserve (Fed), the high-yield market was weak because of unfavorable performance by commodity-related credits and lower-rated bonds.

Our expectation as we entered the period was that returns would be primarily driven by income, because the average price on high-yield bonds was well above par (and not far from all-time highs), leaving minimal room for appreciation, in our opinion, especially if U.S. Treasury yields increased. We did not expect significant depreciation because we believed that most companies were appropriately capitalized for the economic conditions.

Ten largest holdings8 (%) as of August 31, 2015
CIT Group Incorporated, 4.25%, 8-15-2017	1.54
United Rentals North America Incorporated, 7.38%, 5-15-2020	1.47
Ineos US Finance LLC, 3.75%, 12-15-2020	1.39
CCO Holdings LLC, 7.38%, 6-1-2020	1.37
Valeant Pharmaceuticals International Incorporated, 3.50%, 2-13-2019	1.37
Sally Holdings Incorporated, 6.88%, 11-15-2019	1.30
Case New Holland Industrial Incorporated, 7.88%, 12-1-2017	1.22
NRG Energy Incorporated, 7.63%, 1-15-2018	1.19
TransDigm Incorporated, 3.75%, 2-28-2020	1.17
Zayo Group LLC, 3.75%, 5-6-2021	1.14

Although our view on the overall economy was accurate, we did not expect the precipitous drop in oil prices in late 2014. The Fund’s exposure to energy credits detracted, and the energy sector was the only negative contributor to returns during the period. We cut the Fund’s energy exposure from 12.5% to 6.4% during the period by selling the riskier holdings. We believe our focus on higher-rated, short-term high-yield securities allowed the Fund to generate a positive return despite the negative returns for the overall high-yield market.

During the reporting period, we gained confidence that the slow-growth recovery would continue. Slow growth, in our view, is more than sufficient to support the credit prospects of higher-quality, short-term high-yield securities.

Please see footnotes on page 5.

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

Credit quality⁹ as of August 31, 2015

We continued to adhere to the Fund’s basic portfolio strategy.

The Fund’s investments fit into three principal categories. The first category is composed of short maturity bonds that we expect to be repaid on the maturity date. The second category is made up of bonds with high coupons that we expect to be refinanced on a call date. These two categories comprised less than 70% of the portfolio during the period. The third category consists of floating-rate securities, primarily leveraged loans, which ranged from 30% to 37%. Yields on the Fund’s fixed-rate and floating-rate holdings were approximately similar over the period.

Conservative credit selection will continue to drive our selection process, and we monitor market conditions to determine the Fund’s floating-rate exposure. If the Fed begins to tighten monetary policy as expected in 2015, we will monitor demand for floating-rate investments and may increase the Fund’s exposure provided the yields are appropriate for the greater spread risk (or the price sensitivity to a change in its option-adjusted spread¹⁰). We intend to continue evaluating relative-value opportunities for the Fund in the upcoming period, but we do not expect significant changes to overall portfolio positioning.

Please see footnotes on page 5.

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 servicing 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 March 1, 2015 to August 31, 2015.

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 3-1-2015		Ending account value 8-31-2015		Expenses paid during the period¹		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,005.84	$	4.10		0.81	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.12	$	4.13		0.81	%
Class C
Actual	$	1,000.00	$	1,002.06	$	7.87		1.56	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.34	$	7.93		1.56	%
Administrator Class
Actual	$	1,000.00	$	1,006.66	$	3.29		0.65	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.93	$	3.31		0.65	%
Institutional Class
Actual	$	1,000.00	$	1,007.41	$	2.53		0.50	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.68	$	2.55		0.50	%
Investor Class
Actual	$	1,000.00	$	1,005.69	$	4.25		0.84	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.97	$	4.28		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—August 31, 2015 Wells Fargo Advantage Short-Term High Yield Bond Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Corporate Bonds and Notes: 55.00%
Consumer Discretionary: 19.69%
Airlines: 0.72%
US Airways Group Incorporated		6.13	%		6-1-2018	$	10,000,000	$	10,375,000
Auto Components: 2.69%
American Axle & Manufacturing Incorporated		6.25			3-15-2021		13,000,000		13,260,000
Goodyear Tire & Rubber Company		8.25			8-15-2020		14,590,000		15,210,075
Tenneco Incorporated		6.88			12-15-2020		9,650,000		10,060,125
									38,530,200
Diversified Consumer Services: 3.10%
Avis Budget Car Rental LLC ±		3.03			12-1-2017		11,611,000		11,552,945
Avis Budget Car Rental LLC		4.88			11-15-2017		8,120,000		8,272,250
Hertz Corporation		6.75			4-15-2019		2,800,000		2,863,000
Hertz Corporation		7.50			10-15-2018		5,870,000		5,994,738
Service Corporation International		7.00			6-15-2017		14,676,000		15,776,700
									44,459,633
Hotels, Restaurants & Leisure: 1.42%
Hilton Worldwide Finance LLC		5.63			10-15-2021		8,450,000		8,809,125
MGM Resorts International		7.50			6-1-2016		5,265,000		5,449,275
MGM Resorts International		7.63			1-15-2017		5,735,000		6,036,088
									20,294,488
Household Durables: 3.99%
Beazer Homes USA Company		6.63			4-15-2018		13,090,000		13,482,700
DR Horton Incorporated		3.63			2-15-2018		3,930,000		3,988,950
DR Horton Incorporated		4.75			5-15-2017		6,050,000		6,246,625
Jarden Corporation		7.50			5-1-2017		13,115,000		14,098,625
Lennar Corporation		4.13			12-1-2018		12,870,000		13,095,225
Lennar Corporation		4.75			12-15-2017		600,000		622,500
Pulte Group Incorporated		7.63			10-15-2017		5,185,000		5,703,500
									57,238,125
Media: 4.26%
CCO Holdings LLC		7.38			6-1-2020		18,865,000		19,666,763
CSC Holdings LLC		7.63			7-15-2018		8,050,000		8,814,750
DISH DBS Corporation		4.25			4-1-2018		14,670,000		14,625,843
Gannett Company Incorporated		5.13			10-15-2019		9,910,000		10,232,075
Nexstar Broadcasting Group Incorporated		6.88			11-15-2020		3,170,000		3,328,500
Starz LLC/Starz Finance Corporation		5.00			9-15-2019		4,310,000		4,320,775
									60,988,706
Specialty Retail: 3.14%
Best Buy Company Incorporated		5.00			8-1-2018		8,880,000		9,392,376
L Brands Incorporated		8.50			6-15-2019		2,700,000		3,179,250
Limited Brands Incorporated		6.90			7-15-2017		12,815,000		13,904,275
Sally Holdings Incorporated		6.88			11-15-2019		17,825,000		18,582,563
									45,058,464

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

10 Wells Fargo Advantage Short-Term High Yield Bond Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Textiles, Apparel & Luxury Goods: 0.37%
HanesBrands Incorporated		6.38	%		12-15-2020	$	5,035,000	$	5,242,694
Consumer Staples: 1.00%
Household Products: 1.00%
Spectrum Brands Incorporated		6.38			11-15-2020		13,495,000		14,287,831
Energy: 5.65%
Energy Equipment & Services: 2.41%
Exterran Holdings Incorporated		7.25			12-1-2018		7,840,000		7,683,200
SESI LLC		6.38			5-1-2019		16,400,000		16,318,000
Targa Resources Partners 144A		5.00			1-15-2018		10,655,000		10,548,450
									34,549,650
Oil, Gas & Consumable Fuels: 3.24%
Kinder Morgan Finance Company LLC 144A		6.00			1-15-2018		9,000,000		9,623,277
Kinder Morgan Incorporated		7.00			6-15-2017		5,300,000		5,694,278
Sabine Pass LNG LP		7.50			11-30-2016		8,430,000		8,682,900
Tesoro Corporation		4.25			10-1-2017		4,000,000		4,090,000
Tesoro Logistics LP		5.88			10-1-2020		3,615,000		3,624,038
WPX Energy Incorporated		5.25			1-15-2017		14,965,000		14,703,113
									46,417,606
Financials: 7.00%
Banks: 1.55%
CIT Group Incorporated		4.25			8-15-2017		21,755,000		22,081,325
CIT Group Incorporated		5.00			5-15-2017		135,000		138,881
									22,220,206
Consumer Finance: 3.41%
Ally Financial Incorporated ±		2.97			7-18-2016		4,560,000		4,590,242
Ally Financial Incorporated		5.50			2-15-2017		9,500,000		9,810,650
Ally Financial Incorporated		6.25			12-1-2017		1,915,000		2,039,475
General Motors Financial Company Incorporated		3.25			5-15-2018		11,880,000		11,946,421
Navient Corporation		6.00			1-25-2017		8,000,000		8,130,000
SLM Corporation		4.63			9-25-2017		870,000		863,475
Toll Brothers Finance Corporation		4.00			12-31-2018		2,650,000		2,703,000
Toll Brothers Finance Corporation		8.91			10-15-2017		7,750,000		8,738,125
									48,821,388
Insurance: 0.61%
Genworth Financial Incorporated		8.63			12-15-2016		8,350,000		8,819,688
REITs: 1.43%
ARC Properties Operating Partnership LP		2.00			2-6-2017		7,670,000		7,487,838
Iron Mountain Incorporated		7.75			10-1-2019		12,520,000		13,020,800
									20,508,638

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

Portfolio of investments—August 31, 2015 Wells Fargo Advantage Short-Term High Yield Bond Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Health Care: 3.08%
Health Care Providers & Services: 2.36%
Fresenius Medical Care Holdings Incorporated		6.88	%		7-15-2017	$	12,834,000	$	13,892,805
HCA Incorporated		8.00			10-1-2018		6,610,000		7,584,975
Tenet Healthcare Corporation		6.25			11-1-2018		11,125,000		12,056,719
Universal Health Services Incorporated		7.13			6-30-2016		300,000		312,375
									33,846,874
Pharmaceuticals: 0.72%
Endo Finance LLC/Endo Finco Incorporated 144A		7.25			12-15-2020		9,867,000		10,286,348
Industrials: 7.24%
Aerospace & Defense: 0.03%
Huntington Ingalls Industries Incorporated		7.13			3-15-2021		365,000		386,444
Airlines: 0.74%
United Continental Holdings Incorporated		6.38			6-1-2018		10,125,000		10,593,281
Building Products: 0.24%
Masco Corporation		5.85			3-15-2017		508,000		536,321
USG Corporation		9.75			1-15-2018		2,570,000		2,897,675
									3,433,996
Commercial Services & Supplies: 1.09%
ADT Corporation		2.25			7-15-2017		13,255,000		13,238,431
Mobile Mini Incorporated		7.88			12-1-2020		470,000		489,975
RR Donnelley & Sons Company		7.25			5-15-2018		1,705,000		1,812,790
									15,541,196
Machinery: 2.54%
Case New Holland Industrial Incorporated		7.88			12-1-2017		16,095,000		17,442,956
Manitowoc Company Incorporated		8.50			11-1-2020		6,140,000		6,435,488
SPX Corporation		6.88			9-1-2017		11,805,000		12,572,325
									36,450,769
Trading Companies & Distributors: 2.60%
Aircastle Limited		4.63			12-15-2018		13,060,000		13,419,150
International Lease Finance Corporation		5.75			5-15-2016		2,750,000		2,801,563
United Rentals North America Incorporated		7.38			5-15-2020		19,870,000		21,087,038
									37,307,751
Information Technology: 2.19%
Communications Equipment: 0.39%
ViaSat Incorporated		6.88			6-15-2020		5,260,000		5,523,000
Electronic Equipment, Instruments & Components: 0.60%
Jabil Circuit Incorporated		7.75			7-15-2016		8,300,000		8,632,000

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

12 Wells Fargo Advantage Short-Term High Yield Bond Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Internet Software & Services: 0.96%
IAC/InterActiveCorp		4.88	%		11-30-2018	$	13,400,000	$	13,768,500
Technology Hardware, Storage & Peripherals: 0.24%
Dell Incorporated		5.88			6-15-2019		3,280,000		3,402,672
Materials: 4.22%
Chemicals: 0.33%
PolyOne Corporation		7.38			9-15-2020		4,480,000		4,654,720
Construction Materials: 0.10%
Vulcan Materials Company		7.00			6-15-2018		1,265,000		1,427,869
Containers & Packaging: 1.50%
Crown Americas LLC		6.25			2-1-2021		3,025,000		3,149,781
Greif Incorporated		6.75			2-1-2017		4,470,000		4,648,800
Owens Brockway Glass Container Incorporated		7.38			5-15-2016		3,280,000		3,398,900
Owens-Illinois Incorporated		7.80			5-15-2018		9,305,000		10,282,025
									21,479,506
Metals & Mining: 2.29%
Commercial Metals Company		7.35			8-15-2018		13,150,000		14,004,750
Steel Dynamics Incorporated		6.13			8-15-2019		9,690,000		10,041,263
Sunchoke Energy Incorporated		7.63			8-1-2019		1,831,000		1,867,620
US Steel Corporation		7.00			2-1-2018		6,923,000		6,957,615
									32,871,248
Telecommunication Services: 3.09%
Diversified Telecommunication Services: 1.41%
CenturyLink Incorporated		6.00			4-1-2017		10,390,000		10,935,475
Frontier Communications Corporation		8.13			10-1-2018		8,540,000		9,223,200
									20,158,675
Wireless Telecommunication Services: 1.68%
Sprint Nextel Corporation		6.00			12-1-2016		14,260,000		14,580,850
T-Mobile USA Incorporated		6.46			4-28-2019		9,270,000		9,536,513
									24,117,363
Utilities: 1.84%
Gas Utilities: 0.65%
AmeriGas Partners LP		6.25			8-20-2019		9,085,000		9,289,413
Independent Power & Renewable Electricity Producers: 1.19%
NRG Energy Incorporated		7.63			1-15-2018		16,230,000		17,122,640
Total Corporate Bonds and Notes (Cost $797,162,923)									788,106,582

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

Portfolio of investments—August 31, 2015 Wells Fargo Advantage Short-Term High Yield Bond Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Loans: 31.25%
Consumer Discretionary: 6.79%
Auto Components: 0.49%
Allison Transmission Incorporated ±		2.95	%		8-7-2017	$	930,761	$	928,285
Allison Transmission Incorporated ±		3.50			8-23-2019		6,166,853		6,150,018
									7,078,303
Automobiles: 1.40%
Chrysler Group LLC ±		3.50			5-24-2017		7,709,018		7,692,983
The Hertz Corporation ±		3.00			3-11-2018		10,046,062		9,945,601
The Hertz Corporation ±		3.75			3-11-2018		2,487,245		2,473,267
									20,111,851
Hotels, Restaurants & Leisure: 1.07%
Aramark Corporation ±		3.25			9-7-2019		14,137,750		14,081,199
Aramark Corporation ±		3.69			7-26-2016		253,281		251,065
Cinemark USA Incorporated ±		3.20			5-6-2022		975,000		976,521
									15,308,785
Household Durables: 0.91%
Serta Simmons Holdings LLC ±		4.25			10-1-2019		1,771,260		1,770,941
Tempur-Pedic International Incorporated ±		3.50			3-18-2020		11,210,644		11,193,716
									12,964,657
Media: 1.95%
Cequel Communications LLC ±		3.50			2-14-2019		13,032,985		12,959,739
Virgin Media Investment Holdings Limited ±		3.50			6-30-2023		15,187,695		15,003,316
									27,963,055
Specialty Retail: 0.97%
Michaels Stores Incorporated ±		3.75			1-28-2020		13,889,670		13,835,917
Consumer Staples: 1.79%
Food Products: 1.79%
NBTY Incorporated ±		3.50			10-1-2017		8,552,889		8,506,533
Pinnacle Foods Finance LLC ±		3.00			4-29-2020		10,066,631		10,002,506
Reynolds Group Holdings Incorporated ±		4.50			12-1-2018		7,118,478		7,112,285
									25,621,324
Energy: 0.44%
Oil, Gas & Consumable Fuels: 0.44%
EFS Cogen Holdings I LLC ±		3.75			12-17-2020		6,418,125		6,398,100
Financials: 1.29%
Diversified Financial Services: 0.69%
Delos Finance SARL ±		3.50			3-6-2021		9,865,000		9,847,736
REITs: 0.60%
Crown Castle Operating Company ±		3.00			1-31-2021		8,684,787		8,647,269

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

14 Wells Fargo Advantage Short-Term High Yield Bond Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Health Care: 5.24%
Health Care Providers & Services: 3.87%
Community Health Systems Incorporated ±		4.00	%		1-27-2021	$	4,414,520	$	4,422,554
Community Health Systems Incorporated ±		3.75			12-31-2019		2,399,230		2,394,744
Community Health Systems Incorporated ±		3.57			12-31-2018		10,044,647		10,032,091
HCA Incorporated ±		2.95			3-31-2017		8,842,500		8,821,543
Iasis Healthcare LLC ±		4.50			5-3-2018		15,173,494		15,176,225
Lifepoint Hospitals Incorporated ±		2.70			7-24-2017		4,793,654		4,790,682
Select Medical Corporation ±		3.04			12-20-2016		915,973		914,828
Select Medical Corporation ±		3.75			6-1-2018		8,984,238		8,955,040
									55,507,707
Pharmaceuticals: 1.37%
Valeant Pharmaceuticals International Incorporated ±		3.50			2-13-2019		19,677,867		19,606,043
Industrials: 5.05%
Aerospace & Defense: 1.22%
TransDigm Incorporated ±		3.50			5-14-2022		772,524		763,030
TransDigm Incorporated ±		3.75			2-28-2020		16,920,425		16,736,162
									17,499,192
Airlines: 0.77%
Delta Air Lines Incorporated ±<		0.00			8-12-2022		11,130,000		11,088,263
Commercial Services & Supplies: 2.16%
KAR Auction Services Incorporated ±		3.50			3-7-2021		10,605,583		10,592,220
Novelis Incorporated ±		4.00			6-2-2022		13,162,377		13,004,034
Sensata Technologies BV ±		3.00			10-14-2021		3,824,705		3,812,160
ServiceMaster Company ±		4.25			7-1-2021		3,498,744		3,478,766
									30,887,180
Communications Equipment: 0.78%
DigitalGlobe Incorporated ±		3.75			1-31-2020		11,268,199		11,207,125
Machinery: 0.12%
The Manitowoc Company Incorporated ±		3.25			1-3-2021		1,685,000		1,663,938
Information Technology: 3.12%
Internet Software & Services: 1.99%
Activision Blizzard Incorporated ±		3.25			10-12-2020		12,091,250		12,096,328
Zayo Group LLC ±		3.75			5-6-2021		16,479,994		16,374,358
									28,470,686
Technology Hardware, Storage & Peripherals: 1.13%
CDW LLC ±		3.25			4-29-2020		16,376,281		16,235,609
Materials: 3.24%
Chemicals: 2.16%
Huntsman International LLC ±		3.75			10-1-2021		11,064,400		11,050,570
Ineos US Finance LLC ±		3.75			12-15-2020		20,049,951		19,862,083
									30,912,653

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

Portfolio of investments—August 31, 2015 Wells Fargo Advantage Short-Term High Yield Bond Fund 15

Security name		Interest rate			Maturity date		Principal		Value
Containers & Packaging: 1.08%
Berry Plastics Group Incorporated ±			3.50	%		2-8-2020	$	15,755,559	$	15,508,354
Telecommunication Services: 4.29%
Diversified Telecommunication Services: 2.98%
Intelsat Jackson Holdings SA ±			3.75			6-30-2019		14,548,512		14,275,727
Level 3 Financing Incorporated ±			3.50			5-31-2022		7,610,000		7,533,900
Level 3 Financing Incorporated ±			4.00			1-15-2020		8,300,000		8,292,198
West Corporation ±			3.25			6-30-2018		12,772,955		12,638,839
										42,740,664
Wireless Telecommunication Services: 1.31%
SBA Communications Corporation ±			3.25			3-24-2021		13,597,749		13,442,599
SunGard Data Systems Incorporated ±			4.00			3-8-2020		5,317,693		5,306,047
										18,748,646
Total Loans (Cost $450,918,647)										447,853,057
Municipal Obligations: 1.06%
Alabama: 0.27%
Jefferson County AL Taxable Warrants Series B (GO Revenue)			4.90			4-1-2017		2,815,000		2,852,552
Jefferson County AL Taxable Warrants Series D (GO Revenue)			4.90			4-1-2017		1,025,000		1,038,674
										3,891,226
California: 0.12%
Oakland CA Redevelopment Agency Refunding Bond Subordinated Housing Series A (Tax Revenue, Ambac Insured)			5.38			9-1-2016		1,755,000		1,767,443
Illinois: 0.35%
Chicago IL Board of Education Series G (GO Revenue) ±			4.02			3-1-2032		5,000,000		4,947,350
Texas: 0.32%
Dallas-Fort Worth TX International Airport Facilities Improvement Corporation (Industrial Development Revenue)			7.00			1-1-2016		4,485,000		4,547,925
Total Municipal Obligations (Cost $15,193,357)										15,153,944
Non-Agency Mortgage-Backed Securities: 0.00%
Salomon Brothers Mortgage Securities VII Series 1994-5 Class B2 ±(i)			2.76			4-25-2024		39,596		33,756
Total Non-Agency Mortgage-Backed Securities (Cost $39,213)										33,756
Yankee Corporate Bonds and Notes: 7.56%
Consumer Discretionary: 2.70%
Auto Components: 0.82%
Schaeffler Holding Finance B.V. 144A			6.25			11-15-2019		11,130,000		11,714,325
Automobiles: 0.93%
Jaguar Land Rover Automotive plc 144A			4.13			12-15-2018		13,235,000		13,334,263
Diversified Consumer Services: 0.34%
AerCap Ireland Capital Limited	��		2.75			5-15-2017		4,955,000		4,905,450

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

16 Wells Fargo Advantage Short-Term High Yield Bond Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Media: 0.61%
Numericable Group SA 144A		4.88	%		5-15-2019	$	8,745,000	$	8,810,588
Financials: 0.52%
Banks: 0.52%
Royal Bank of Scotland Group plc		4.70			7-3-2018		7,240,000		7,470,449
Health Care: 1.01%
Pharmaceuticals: 1.01%
Mallinckrodt International Finance SA		3.50			4-15-2018		14,520,000		14,520,000
Information Technology: 1.58%
Communications Equipment: 0.63%
Nokia Corporation		5.38			5-15-2019		8,425,000		8,951,563
Electronic Equipment, Instruments & Components: 0.95%
NXP BV/NXP Funding LLC 144A		3.50			9-15-2016		13,600,000		13,668,000
Materials: 1.60%
Metals & Mining: 1.02%
ArcelorMittal SA		6.13			6-1-2018		14,000,000		14,560,000
Paper & Forest Products: 0.58%
Sappi Papier Holding GmbH 144A		6.63			4-15-2021		8,165,000		8,369,125
Telecommunication Services: 0.15%
Diversified Telecommunication Services: 0.15%
Intelsat Jackson Holdings SA		7.25			4-1-2019		2,140,000		2,097,200
Total Yankee Corporate Bonds and Notes (Cost $109,808,917)									108,400,963
	Yield					Shares
Short-Term Investments: 4.93%
Investment Companies: 4.93%
Wells Fargo Advantage Cash Investment Money Market Fund, Select Class (l)(u)##		0.15					70,743,835		70,743,835
Total Short-Term Investments (Cost $70,743,835)									70,743,835

Total investments in securities (Cost $1,443,866,892)*	99.80	%		1,430,292,137
Other assets and liabilities, net	0.20			2,801,447
Total net assets	100.00	%	$	1,433,093,584

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

144A The security may be resold in transactions exempt from registration, normally to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933.

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

(i) Illiquid security for which the designation as illiquid is unaudited.

(l) The security represents an affiliate of the Fund as defined in the Investment Company Act of 1940.

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

## All or a portion of this security is segregated for unfunded loans.

* Cost for federal income tax purposes is $1,443,870,201 and unrealized gains (losses) consists of:

Gross unrealized gains	$	3,079,424
Gross unrealized losses		(16,657,488	)
Net unrealized losses	$	(13,578,064	)

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

Statement of assets and liabilities—August 31, 2015 Wells Fargo Advantage Short-Term High Yield Bond Fund 17

Assets
Investments
In unaffiliated securities, at value (cost $1,373,123,057)	$	1,359,548,302
In affiliated securities, at value (cost $70,743,835)		70,743,835
Total investments, at value (cost $1,443,866,892)		1,430,292,137
Receivable for investments sold		4,281,055
Receivable for Fund shares sold		3,834,536
Receivable for interest		15,196,763
Receivable for securities lending income		71
Prepaid expenses and other assets		60,722
Total assets		1,453,665,284
Liabilities
Dividends payable		540,890
Payable for investments purchased		14,074,997
Payable for Fund shares redeemed		5,021,736
Management fee payable		436,729
Distribution fee payable		79,398
Administration fees payable		142,437
Accrued expenses and other liabilities		275,513
Total liabilities		20,571,700
Total net assets	$	1,433,093,584
NET ASSETS CONSIST OF
Paid-in capital	$	1,463,621,404
Accumulated net realized losses on investments		(16,953,065	)
Net unrealized losses on investments		(13,574,755	)
Total net assets	$	1,433,093,584
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE
Net assets – Class A	$	203,856,155
Shares outstanding – Class A1		25,258,667
Net asset value per share – Class A		$8.07
Maximum offering price per share – Class A2		$8.32
Net assets – Class C	$	123,520,671
Shares outstanding – Class C1		15,304,648
Net asset value per share – Class C		$8.07
Net assets – Administrator Class	$	328,934,264
Shares outstanding – Administrator Class1		40,770,792
Net asset value per share – Administrator Class		$8.07
Net assets – Institutional Class	$	608,704,021
Shares outstanding – Institutional Class1		75,549,060
Net asset value per share – Institutional Class		$8.06
Net assets – Investor Class	$	168,078,473
Shares outstanding – Investor Class1		20,824,543
Net asset value per share – Investor Class		$8.07

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—year ended August 31, 2015

Investment income
Interest	$	59,462,737
Income from affiliated securities		70,518
Securities lending income, net		51,743
Total investment income		59,584,998
Expenses
Management fee		7,221,133
Administration fees
Class A		362,069
Class C		207,078
Administrator Class		394,500
Institutional Class		466,774
Investor Class		357,024
Shareholder servicing fees
Class A		565,733
Class C		323,559
Administrator Class		982,452
Investor Class		468,606
Distribution fee
Class C		970,678
Custody and accounting fees		82,966
Professional fees		58,207
Registration fees		136,784
Shareholder report expenses		126,115
Trustees’ fees and expenses		10,549
Other fees and expenses		48,615
Total expenses		12,782,842
Less: Fee waivers and/or expense reimbursements		(1,870,850	)
Net expenses		10,911,992
Net investment income		48,673,006
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized losses on investments		(16,191,024	)
Net change in unrealized gains (losses) on investments		(11,157,694	)
Net realized and unrealized gains (losses) on investments		(27,348,718	)
Net increase in net assets resulting from operations	$	21,324,288

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

	Year ended August 31, 2015						Year ended August 31, 2014
Operations
Net investment income				$	48,673,006					$	54,855,027
Net realized losses on investments					(16,191,024	)					(1,133,585	)
Net change in unrealized gains (losses) on investments					(11,157,694	)					(62,645	)
Net increase in net assets resulting from operations					21,324,288						53,658,797
Distributions to shareholders from
Net investment income
Class A					(6,933,480	)					(9,990,440	)
Class C					(2,986,338	)					(3,525,479	)
Administrator Class					(12,745,406	)					(18,901,024	)
Institutional Class					(19,514,685	)					(13,627,741	)
Investor Class					(5,702,061	)					(8,293,472	)
Net realized gains
Class A					0						(679,349	)
Class C					0						(311,057	)
Administrator Class					0						(1,207,759	)
Institutional Class					0						(665,596	)
Investor Class					0						(604,264	)
Total distributions to shareholders					(47,881,970	)					(57,806,181	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		6,389,757			51,850,164			15,249,110			125,909,022
Class C		2,902,472			23,560,523			5,706,301			47,093,148
Administrator Class		15,702,034			127,280,452			44,029,190			363,558,568
Institutional Class		42,733,442			346,627,984			64,080,938			527,975,480
Investor Class		9,357,563			75,960,409			18,738,706			154,708,427
					625,279,532						1,219,244,645
Reinvestment of distributions
Class A		813,304			6,601,461			1,244,498			10,266,433
Class C		352,560			2,861,800			444,388			3,665,809
Administrator Class		1,415,868			11,486,162			2,075,373			17,116,408
Institutional Class		1,608,395			13,032,069			970,793			7,988,302
Investor Class		677,127			5,496,288			994,682			8,205,806
					39,477,780						47,242,758
Payment for shares redeemed
Class A		(15,664,276	)		(126,984,161	)		(17,587,268	)		(144,910,840	)
Class C		(5,447,783	)		(44,184,843	)		(4,904,512	)		(40,456,301	)
Administrator Class		(38,462,893	)		(311,878,917	)		(51,142,790	)		(422,085,077	)
Institutional Class		(34,879,242	)		(281,848,045	)		(24,797,924	)		(204,250,615	)
Investor Class		(16,991,722	)		(137,734,753	)		(23,422,680	)		(193,143,088	)
					(902,630,719	)					(1,004,845,921	)
Net increase (decrease) in net assets resulting from capital share transactions					(237,873,407	)					261,641,482
Total increase (decrease) in net assets					(264,431,089	)					257,494,098
Net assets
Beginning of period					1,697,524,673						1,440,030,575
End of period				$	1,433,093,584					$	1,697,524,673
Undistributed (overdistributed) net investment income				$	0					$	(791,036	)

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)

	Year ended August 31
CLASS A	2015			2014			2013			2012			2011
Net asset value, beginning of period		$8.20			$8.21			$8.26			$8.04			$8.18
Net investment income		0.25			0.27			0.31			0.36			0.40
Net realized and unrealized gains (losses) on investments		(0.13	)		0.01			(0.05	)		0.26			(0.14	)
Total from investment operations		0.12			0.28			0.26			0.62			0.26
Distributions to shareholders from
Net investment income		(0.25	)		(0.27	)		(0.31	)		(0.36	)		(0.40	)
Net realized gains		0.00			(0.02	)		(0.00	)1		(0.04	)		0.00
Total distributions to shareholders		(0.25	)		(0.29	)		(0.31	)		(0.40	)		(0.40	)
Net asset value, end of period		$8.07			$8.20			$8.21			$8.26			$8.04
Total return2		1.46	%		3.40	%		3.17	%		7.81	%		3.10	%
Ratios to average net assets (annualized)
Gross expenses		0.92	%		0.91	%		0.94	%		0.99	%		1.00	%
Net expenses		0.81	%		0.81	%		0.81	%		0.81	%		0.81	%
Net investment income		3.11	%		3.27	%		3.73	%		4.33	%		4.77	%
Supplemental data
Portfolio turnover rate		40	%		28	%		33	%		28	%		36	%
Net assets, end of period (000s omitted)		$203,856			$276,436			$285,726			$261,173			$201,523

¹  Amount is less than $0.005.

²  Total return calculations do not include any sales charges.

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)

	Year ended August 31
CLASS C	2015			2014			2013			2012			2011
Net asset value, beginning of period		$8.20			$8.21			$8.26			$8.04			$8.18
Net investment income		0.19			0.21			0.25			0.29	1		0.33
Net realized and unrealized gains (losses) on investments		(0.13	)		0.01			(0.06	)		0.26			(0.14	)
Total from investment operations		0.06			0.22			0.19			0.55			0.19
Distributions to shareholders from
Net investment income		(0.19	)		(0.21	)		(0.24	)		(0.29	)		(0.33	)
Net realized gains		0.00			(0.02	)		(0.00	)2		(0.04	)		0.00
Total distributions to shareholders		(0.19	)		(0.23	)		(0.24	)		(0.33	)		(0.33	)
Net asset value, end of period		$8.07			$8.20			$8.21			$8.26			$8.04
Total return3		0.70	%		2.62	%		2.40	%		7.00	%		2.33	%
Ratios to average net assets (annualized)
Gross expenses		1.67	%		1.66	%		1.69	%		1.73	%		1.75	%
Net expenses		1.56	%		1.56	%		1.56	%		1.56	%		1.56	%
Net investment income		2.36	%		2.52	%		2.98	%		3.58	%		3.97	%
Supplemental data
Portfolio turnover rate		40	%		28	%		33	%		28	%		36	%
Net assets, end of period (000s omitted)		$123,521			$143,444			$133,379			$102,780			$71,831

¹  Calculated based upon average shares outstanding

²  Amount is less than $0.005.

³  Total return calculations do not include any sales charges.

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)

	Year ended August 31
ADMINISTRATOR CLASS	2015			2014			2013			2012			2011
Net asset value, beginning of period		$8.20			$8.20			$8.26			$8.03			$8.18
Net investment income		0.26			0.28			0.32			0.37			0.41
Net realized and unrealized gains (losses) on investments		(0.13	)		0.02			(0.06	)		0.27			(0.15	)
Total from investment operations		0.13			0.30			0.26			0.64			0.26
Distributions to shareholders from
Net investment income		(0.26	)		(0.28	)		(0.32	)		(0.37	)		(0.41	)
Net realized gains		0.00			(0.02	)		(0.00	)1		(0.04	)		0.00
Total distributions to shareholders		(0.26	)		(0.30	)		(0.32	)		(0.41	)		(0.41	)
Net asset value, end of period		$8.07			$8.20			$8.20			$8.26			$8.03
Total return		1.62	%		3.69	%		3.21	%		8.12	%		3.15	%
Ratios to average net assets (annualized)
Gross expenses		0.85	%		0.84	%		0.87	%		0.92	%		0.94	%
Net expenses		0.65	%		0.65	%		0.65	%		0.65	%		0.65	%
Net investment income		3.28	%		3.44	%		3.89	%		4.48	%		4.87	%
Supplemental data
Portfolio turnover rate		40	%		28	%		33	%		28	%		36	%
Net assets, end of period (000s omitted)		$328,934			$509,059			$550,981			$459,746			$249,301

¹  Amount is less than $0.005.

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)

	Year ended August 31
INSTITUTIONAL CLASS	2015			2014			20131
Net asset value, beginning of period		$8.18			$8.19			$8.28
Net investment income		0.28			0.29			0.25
Net realized and unrealized gains (losses) on investments		(0.13	)		0.01			(0.09	)
Total from investment operations		0.15			0.30			0.16
Distributions to shareholders from
Net investment income		(0.27	)		(0.29	)		(0.25	)
Net realized gains		0.00			(0.02	)		(0.00	)2
Total distributions to shareholders		(0.27	)		(0.31	)		(0.25	)
Net asset value, end of period		$8.06			$8.18			$8.19
Total return3		1.90	%		3.72	%		1.92	%
Ratios to average net assets (annualized)
Gross expenses		0.59	%		0.58	%		0.60	%
Net expenses		0.50	%		0.50	%		0.50	%
Net investment income		3.40	%		3.58	%		4.05	%
Supplemental data
Portfolio turnover rate		40	%		28	%		33	%
Net assets, end of period (000s omitted)		$608,704			$540,824			$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)

	Year ended August 31
INVESTOR CLASS	2015			2014			2013			2012			2011
Net asset value, beginning of period		$8.20			$8.21			$8.26			$8.03			$8.18
Net investment income		0.25			0.27			0.31			0.35	1		0.39
Net realized and unrealized gains (losses) on investments		(0.14	)		0.00	2		(0.06	)		0.27			(0.15	)
Total from investment operations		0.11			0.27			0.25			0.62			0.24
Distributions to shareholders from
Net investment income		(0.24	)		(0.26	)		(0.30	)		(0.35	)		(0.39	)
Net realized gains		0.00			(0.02	)		(0.00	)2		(0.04	)		0.00
Total distributions to shareholders		(0.24	)		(0.28	)		(0.30	)		(0.39	)		(0.39	)
Net asset value, end of period		$8.07			$8.20			$8.21			$8.26			$8.03
Total return		1.43	%		3.36	%		3.13	%		7.91	%		2.95	%
Ratios to average net assets (annualized)
Gross expenses		0.94	%		0.94	%		0.97	%		1.01	%		1.03	%
Net expenses		0.84	%		0.84	%		0.84	%		0.84	%		0.84	%
Net investment income		3.08	%		3.24	%		3.70	%		4.30	%		4.76	%
Supplemental data
Portfolio turnover rate		40	%		28	%		33	%		28	%		36	%
Net assets, end of period (000s omitted)		$168,078			$227,763			$258,302			$232,175			$170,952

¹  Calculated based upon average shares outstanding

²  Amount is less than $0.005.

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

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

Debt securities are valued at the evaluated bid price provided by an independent pricing service or, if a reliable price is not available, the quoted bid price from an independent broker-dealer.

Investments in registered open-end investment companies are valued at net asset value. Interests in non-registered investment vehicles that are redeemable at net asset value are fair valued at net asset value when available.

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 manager 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 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.

26 Wells Fargo Advantage Short-Term High Yield Bond Fund Notes to financial statements

The Fund lends its securities through an unaffiliated securities lending agent. Cash collateral received in connection with its securities lending transactions is invested in 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.

Loans

The Fund may invest in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. The loans pay interest at rates which are periodically reset by reference to a base lending rate plus a spread. Investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties. When the Fund purchases participations, it generally has no rights to enforce compliance with terms of the loan agreement with the borrower. As a result, the Fund assumes the credit risk of both the borrower and the lender that is selling the participation. When the Fund purchases assignments from lenders, it acquires direct rights against the borrower on the loan and may enforce compliance by the borrower with the terms of the loan agreement. Loans may include fully funded term loans or unfunded loan commitments, which are contractual obligations for future funding.

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, 2015, the Fund had capital loss carryforwards which consist of $1,166,087 in short-term capital losses and $1,031,107 in long-term capital losses.

As of August 31, 2015, the Fund had current year deferred post-October capital losses consisting of $6,730,571 in short-term losses and $8,021,991 in long-term losses which will be recognized on the first day of the following fiscal year.

Notes to financial statements Wells Fargo Advantage Short-Term High Yield Bond Fund 27

Class allocations

The separate classes of shares offered by the Fund differ principally in applicable sales charges, distribution, shareholder servicing, and administration fees. Class specific expenses are charged directly to that share class. Investment income, common expenses, and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.

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.

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of August 31, 2015:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Corporate bonds and notes	$	0	$	788,106,582	$	0	$	788,106,582
Loans		0		445,938,054		1,915,003		447,853,057
Municipal obligations		0		15,153,944		0		15,153,944
Non-agency mortgage-backed securities		0		33,756		0		33,756
Yankee corporate bonds and notes		0		108,400,963		0		108,400,963
Short-term investments
Investment companies		70,743,835		0		0		70,743,835
Total assets	$	70,743,835	$	1,357,633,299	$	1,915,003	$	1,430,292,137

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At August 31, 2015, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

4. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the applicable subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.50% and declining to 0.38% as the average daily net assets of the Fund increase.

Prior to July 1, 2015, Funds Management provided advisory services pursuant to an investment advisory agreement and was entitled to receive an annual fee which started at 0.45% and declined to 0.35% as the average daily net assets of the

28 Wells Fargo Advantage Short-Term High Yield Bond Fund Notes to financial statements

Fund increased. In addition, fund-level administrative services were provided by Funds Management under a separate administration agreement at an annual fee which started at 0.05% and declined to 0.03% as the average daily net assets of the Fund increased. For financial statement purposes, the advisory fee and fund-level administration fee for the year ended August 31, 2015 have been included in management fee on the Statement of Operations.

For the year ended August 31, 2015, the management fee was equivalent to an annual rate of 0.47% 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 fees

Under a class-level administration agreement, Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Funds Management receives an annual 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 management 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, 2015 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. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Distribution fee

The Trust has adopted a distribution plan for Class C shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class C shares and paid to Wells Fargo Funds Distributor, LLC (“Funds Distributor”), the principal underwriter, at an annual rate of 0.75% of the average daily net assets of Class C shares.

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the year ended August 31, 2015, Funds Distributor received $5,848 from the sale of Class A shares and $249 in contingent deferred sales charges from redemptions of Class C shares.

Shareholder servicing fees

The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class C, Administrator Class, and Investor Class of the Fund is charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class.

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding U.S. government obligations (if any) and short-term securities, for the year ended August 31, 2015 were $585,800,336 and $607,493,838, respectively.

Notes to financial statements Wells Fargo Advantage Short-Term High Yield Bond Fund 29

As of August 31, 2015, the Fund had unfunded term loan commitments of $11,143,913.

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, 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 year ended August 31, 2015, the Fund paid $2,894 in commitment fees.

For the year ended August 31, 2015, there were no borrowings by the Fund under the agreement.

7. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended August 31, 2015 and August 31, 2014 were as follows:

	Year ended August 31
	2015		2014
Ordinary income	$	47,881,970	$	55,020,724
Long-term capital gain		0		2,785,457

As of August 31, 2015, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	Unrealized losses	Post-October capital losses deferred	Capital loss carryforward
$540,890	$(13,578,064)	$(14,752,562)	$(2,197,194)

8. INDEMNIFICATION

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

30 Wells Fargo Advantage Short-Term High Yield Bond Fund Report of independent registered public accounting firm

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Advantage Short-Term High Yield Bond Fund (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, as of August 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of August 31, 2015, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Advantage Short-Term High Yield Bond Fund as of August 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

October 26, 2015

Other information (unaudited) Wells Fargo Advantage Short-Term High Yield Bond Fund 31

TAX INFORMATION

For the fiscal year ended August 31, 2015, $30,949,686 has been designated as interest-related dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at 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 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 monthly on the Fund’s website (wellsfargoadvantagefunds.com), on a one-month delayed basis. In addition, top ten holdings information (excluding derivative positions) 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 by visiting the SEC website at sec.gov. In addition, the Fund’s Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and at regional offices in New York City, at 233 Broadway, and in Chicago, at 175 West Jackson Boulevard, Suite 900. Information about the Public Reference Room may be obtained by calling 1-800-SEC-0330.

32 Wells Fargo Advantage Short-Term High Yield Bond Fund Other information (unaudited)

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo Advantage family of funds, which consists of 133 mutual funds 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. 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 or longer	Other public company or investment company directorships during past 5 years
William R. Ebsworth (Born 1957)	Trustee, since 2015**	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director at Fidelity Management and Research Company and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. in Boston, Tokyo, and Hong Kong where he led a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Mr. Ebsworth is a CFA ® charterholder and an Adjunct Lecturer, Finance, at Babson College.	Asset Allocation Trust
Jane A. Freeman (Born 1953)	Trustee, since 2015**	Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is Chair of Taproot Foundation (non-profit organization), a Board Member of Ruth Bancroft Garden (non-profit organization) and an inactive chartered financial analyst.	Asset Allocation Trust; Harding Loevner Funds; Russell Exchange Traded Funds Trust
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. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (charter school). Mr. Harris is a certified public accountant.	CIGNA 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
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

Other information (unaudited) Wells Fargo Advantage Short-Term High Yield Bond Fund 33

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Other public company or investment company directorships during past 5 years
Timothy J. Penny (Born 1951)	Trustee, since 1996	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
Michael S. Scofield (Born 1943)	Trustee, since 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 complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust
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.

** William R. Ebsworth and Jane A. Freeman each became a Trustee effective January 1, 2015.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Karla M. Rabusch (Born 1959)	President, since 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.
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. Assistant General Counsel of Wells Fargo Bank, N.A. since 2013 and Vice President and Managing Counsel of Wells Fargo Bank N.A. from 1996 to 2013.
Debra Ann Early (Born 1964)	Chief Compliance Officer, since 2007	Executive Vice President of Wells Fargo Funds Management, LLC since 2014, Senior Vice President and Chief Compliance Officer from 2007 to 2014.
David Berardi (Born 1975)	Assistant Treasurer, since 2009	Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.
Jeremy DePalma1 (Born 1974)	Assistant Treasurer, since 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 and head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.

¹ Nancy Wiser acts as Treasurer of 72 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 61 funds and Assistant Treasurer of 72 funds in the Fund Complex.

² The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request, by calling 1-800-222-8222 or by visiting the website at wellsfargoadvantagefunds.com.

34 Wells Fargo Advantage Short-Term High Yield Bond Fund Other information (unaudited)

BOARD CONSIDERATION OF INVESTMENT ADVISORY, INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment advisory and sub-advisory agreements. In this regard, at an in-person meeting held on May 19-20, 2015 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment advisory and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo Advantage Short-Term High Yield Bond Fund (the “Fund”): (i) an investment advisory agreement (the “Advisory Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); (ii) an investment management agreement (the “Management Agreement”) with Funds Management; and (iii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the “Sub-Adviser”), an affiliate of Funds Management. The Management Agreement combines the terms of the Advisory Agreement with the terms of the Fund’s Amended and Restated Administration Agreement (the “Administration Agreement”) applicable to Fund-level administrative services. The Advisory Agreement, the Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”

At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in March 2015, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2015. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

After its deliberations, the Board unanimously approved the continuation of the Advisory Agreement for the period from June 1, 2015 through June 30, 2015, approved the Management Agreement for the period from July 1, 2015 through May 31, 2016, and approved the continuation of the Sub-Advisory Agreement for a one-year term through May 31, 2016. The Board also determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.

Nature, extent and quality of services

The Board received and considered various information regarding the nature, extent and quality of services provided to the Fund by Funds Management and the Sub-Adviser under the Advisory Agreements. This information included, among other things, a summary of the background and experience of senior management of Funds Management, and the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund. The Board noted that the services to be provided to the Fund pursuant to the Management Agreement combined the advisory services previously provided to the Fund pursuant to the Fund’s Advisory Agreement with the Fund-level administrative services previously provided to the Fund pursuant to the Fund’s Administration Agreement. The Board received a representation from Funds Management that combining these services would not result in any change to the nature or level of services provided by Funds Management to the Fund.

The Board evaluated the ability of Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory and supervisory personnel. The Board further considered the compliance

Other information (unaudited) Wells Fargo Advantage Short-Term High Yield Bond Fund 35

programs and compliance records of Funds Management and the Sub-Adviser. In addition, the Board took into account the full range of services provided to the Fund by Funds Management and its affiliates.

Fund performance and expenses

The Board considered the performance results for the Fund over various time periods ended March 31, 2015. The Board considered these results in comparison to the performance of funds in a universe that was determined by Lipper Inc. (“Lipper”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Lipper is an independent provider of investment company data. The Board received a description of the methodology used by Lipper to select the mutual funds in the performance Universe. The Board noted that the performance of the Fund (Class A) was lower than the average performance of the Universe for all periods under review except the one-year period. The Board also noted that the performance of the Fund was lower than its benchmark, the BofAML High Yield U.S. Corp Cash Pay BB 1-5 Yrs, for all periods under review except the first quarter of 2015.

The Board received information concerning, and discussed factors contributing to, the underperformance of the Fund relative to the Universe and benchmark for the periods noted above. The Board took note of the explanations for the relative underperformance in these periods, including with respect to market factors that affected the Fund’s performance and the composition of the funds in the Universe, and of recent improved performance.

The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees (which reflect fee waivers, if any, and include advisory, administration and transfer agent fees), custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Lipper to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Lipper to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Lipper reports, the Board noted that the net operating expense ratios of the Fund were lower than the median net operating expense ratios of the expense Groups. The Board discussed and accepted Funds Management’s proposal to convert the Investor Class shares into Class A shares.

The Board took into account the Fund performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreement and Sub-Advisory Agreement and approve the Management Agreement.

Investment advisory and sub-advisory fee rates

The Board reviewed and considered the contractual investment advisory fee rates that are payable by the Fund to Funds Management for investment advisory services (the “Advisory Agreement Rates”), both on a stand-alone basis and on a combined basis with the Fund’s fund-level and class-level contractual administration fee rates (the “Management Rates”). The Board noted that the Management Rates include transfer agency and sub-transfer agency costs. The Board also noted that the fee rate to be paid by the Fund under the Management Agreement will incorporate the advisory fee and Fund-level administration fee previously payable separately by the Fund under the Fund’s Advisory Agreement and Administration Agreement with Funds Management. The Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Funds Management to the Sub-Adviser for investment sub-advisory services (the “Sub-Advisory Agreement Rates”).

Among other information reviewed by the Board was a comparison of the Management Rates of the Fund with those of other funds in the expense Groups at a common asset level. The Board noted that the Management Rates of the Fund were lower than the Fund’s expense Groups for all share classes.

The Board also received and considered information about the portion of the total advisory fee that was retained by Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Funds Management and not delegated to or assumed by the Sub-Adviser, and about Funds Management’s on-going oversight services. However, given the affiliation between Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of the advisory fee between them.

The Board also received and considered information about the nature and extent of services offered and fee rates charged by Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing mutual funds compared with those associated with managing assets of non-mutual fund clients such as collective funds or institutional separate accounts.

36 Wells Fargo Advantage Short-Term High Yield Bond Fund Other information (unaudited)

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Funds Management under the Management Agreement and Advisory Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable, in light of the services covered by the Advisory Agreements.

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also received and considered information concerning the profitability of the Sub-Adviser from providing services to the fund family as a whole, noting that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo profitability analysis.

Funds Management reported on the methodologies and estimates used in calculating profitability. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size and type of fund. Based on its review, the Board did not deem the profits reported by Funds Management or Wells Fargo from its services to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.

Economies of scale

With respect to possible economies of scale, the Board noted the existence of breakpoints in the Fund’s advisory and management fee structures, and the Fund’s administration fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered that fee waiver and expense reimbursement arrangements and competitive fee rates at the outset are means of sharing potential economies of scale with shareholders of the Fund and the fund family as a whole. The Board considered Funds Management’s view that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments that Funds Management incurs across the fund family as a whole.

The Board concluded that the Fund’s fee and expense arrangements, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.

Other benefits to Funds Management and the Sub-Adviser

The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that various affiliates of Funds Management may receive distribution-related fees, shareholder servicing payments and sub-transfer agency fees in respect of shares sold or held through them and services provided.

The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser, fees earned by Funds Management and the Sub-Adviser from managing a private investment vehicle for the fund family’s securities lending collateral and commissions earned by an affiliated broker from portfolio transactions.

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory Agreement for the period from June 1, 2015 through June 30, 2015, approved the Management Agreement for the period from July 1, 2015 through May 31, 2016, and approved the continuation of the Sub-Advisory Agreement for a one-year term through May 31, 2016. The Board also determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable.

List of abbreviations Wells Fargo Advantage Short-Term High Yield 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 —  Colombian 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

LIFER —  Long Inverse Floating Exempt Receipts

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

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —   Short Puttable Exempt Adjustable 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. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at wellsfargoadvantagefunds.com. 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, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

© 2015 Wells Fargo Funds Management, LLC. All rights reserved.

236808 10-15 A222/AR222 08-15

Wells Fargo Advantage

Ultra Short-Term Income Fund

Annual Report

August 31, 2015

Reduce clutter. Save trees.

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

Contents

Letter to shareholders	2
Performance highlights	4
Fund expenses	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
Report of independent registered public accounting firm	38
Other information	39
List of abbreviations	45

The views expressed and any forward-looking statements are as of August 31, 2015, 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

Major central banks continued to inject liquidity into global banks and markets through various accommodative monetary policies, including quantitative easing.

Dear Valued Shareholder:

We are pleased to offer you this annual report for the Wells Fargo Advantage Ultra Short-Term Income Fund for the 12-month period that ended August 31, 2015. The period was marked by low interest rates, low oil prices, and moderate U.S. economic growth. Short-term investment-grade bonds, as measured by the Barclays U.S. 1–3 Year Government/Credit Bond Index,¹ returned 0.81% during the period. Meanwhile, strong demand for high-quality, liquid assets kept returns on Treasury bills more modest; the Barclays 6-Month Treasury Bill Index² returned 0.15% during the period.

Major central banks continued to provide stimulus.

Major central banks continued to inject liquidity into global banks and markets through various accommodative monetary policies, including quantitative easing. In the U.S., the Federal Reserve (Fed) kept its key interest rate near zero in order to support the economy and the financial system. However, it set expectations for it to begin normalizing monetary policy with higher target ranges for the federal funds rate.

Meanwhile, European markets continued to benefit from the European Central Bank’s (ECB’s) willingness to maintain low interest rates. In addition to its targeted longer-term refinancing operations that are designed to increase bank lending, the ECB expanded its quantitative easing program to include the purchase of eurozone government bonds. In Japan, the Bank of Japan maintained an aggressive monetary program aimed at combating deflation.

Economic growth was moderate, and oil prices plummeted.

U.S. economic growth advanced during the reporting period, the unemployment rate ticked lower to 5.1% as of August 2015, and inflation remained below the Fed’s longer-run objective of a 2% pace. The period was also marked by lower oil prices, which began the reporting period near $90 per barrel but declined to $46 per barrel at the end of August 2015. While lower oil prices benefited consumers of oil products, the lower prices pressured companies within the energy sector.

Bond yields rose but remained low by historical standards.

Short-term interest rates increased during the reporting period, with a flattening in the shape of the short-term yield curve. During this time frame, 1-year Treasury bills rose 29 basis points (bps; 100 bps equals 1.00%) to yield 0.38%, 2-year Treasury note yields rose 21 bps to yield 0.74%, and 3-year Treasury note yields rose only 8 bps to yield 1.05%. Meanwhile, ultra-short-term yields were little changed at ultralow levels, anchored by the easy monetary policy.

Since the end of the financial crisis, structural changes in the fixed-income markets have reduced trading liquidity (the degree to which assets can be bought or sold without affecting the price). New regulations and capital requirements have caused traditional liquidity suppliers (banks and broker/dealers) to be more risk-averse and hold less inventory. Meanwhile, corporate-debt issuance has spiked as

¹  The Barclays U.S. 1–3 Year Government/Credit Bond Index is the one- to three-year component of the Barclays U.S. Government/Credit Bond Index that includes securities in the Government and Credit Indexes. 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.

²  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.

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

companies finance themselves at record-low yields, bond mutual funds hold larger amounts of this new debt supply, trading volumes are lower, and large-size trades are more difficult to execute. However, fixed-income markets appear to have functioned well over the past year with sufficient liquidity and muted volatility.

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

Periods of 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 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 in Wells Fargo Advantage Funds. We appreciate your confidence in us and remain committed to helping you meet your financial needs.

Sincerely,

Karla M. Rabusch

President

Wells Fargo Advantage Funds

Periods of 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.

Notice to shareholders

At a meeting held on August 11–12, 2015, the Board of Trustees of the Fund approved a change in the name of the Fund whereby the word “Advantage” will be removed from its name, effective December 15, 2015.

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.

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

Investment objective

The Fund seeks current income consistent with capital preservation.

Manager

Wells Fargo Funds Management, LLC

Subadviser

Wells Capital Management Incorporated

Portfolio managers

Christopher Y. Kauffman, CFA

Jay N. Mueller, CFA

Thomas M. Price, CFA

Noah Wise, CFA

Average annual total returns¹ (%) as of August 31, 2015

		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		(2.07	)		0.40		1.50		(0.07	)		0.80		1.71		0.78		0.71
Class C (WUSTX)	7-18-2008		(1.81	)		0.05		0.95		(0.81	)		0.05		0.95		1.53		1.46
Administrator Class (WUSDX)	4-8-2005		–			–		–		(0.04	)		0.95		1.86		0.72		0.56
Institutional Class (SADIX)	8-31-1999		–			–		–		0.16			1.16		2.07		0.45		0.36
Investor Class (STADX)	11-25-1998		–			–		–		(0.10	)		0.77		1.67		0.81		0.74
Barclays Short-Term Government/ Corporate Index4	–		–			–		–		0.81			1.03		2.79		–		–
Barclays Short Treasury Index 9-12 Month5	–		–			–		–		0.20			0.30		1.85		–		–
Barclays 1-3 Year Government/Credit Index6	–		–			–		–		0.22			0.30		1.84		–		–

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 a contingent deferred 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. Changes in market conditions and government policies may lead to periods of heightened volatility in the bond market and reduced liquidity for certain bonds held by the Fund. In general, when interest rates rise, bond values fall and investors may lose principal value. Interest-rate changes and their impact on the Fund and its share price can be sudden and unpredictable. 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 5.

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

Growth of $10,000 investment⁷ as of August 31, 2015

¹  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. 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.

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 manager has contractually committed through December 31, 2015, to waive fees and/or reimburse expenses to the extent necessary to cap the Fund’s Total Annual Fund Operating Expenses After Fee Waiver 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. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees. 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 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 Government/Corporate Index must have a maturity from one up to (but not including) 12 months. You cannot invest directly in an index.

⁵  The Barclays Short Treasury Index 9-12 Month is an unmnaged index that 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 Government/Credit Bond Index is the one- to three-year component of the Barclays 1-3 Year Government/Credit Bond Index that includes securities in the Government and Credit Indexes. 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.

⁷  The chart compares the performance of Class A shares for the most recent 10 years with the performance of the Barclays Short-Term U.S. Government/Corporate Index, the Barclays 9-12 Month U.S. Short-Term Treasury Index, and the Barclays 1-3 Year U.S. Government/Credit Bond Index. The chart assumes a hypothetical investment of $10,000 in Class A shares and reflects all operating expenses and assumes the maximum initial sales charge of 2.00%.

⁸  The ten largest holdings, excluding cash and cash equivalents, are calculated based on the value of the investments divided by total net assets of the Fund. Holdings are subject to change and may have changed since the date specified.

⁹  Amounts are calculated based on the total long-term investments of the Fund. These amounts are subject to change and may have changed since the date specified.

6 Wells Fargo Advantage Ultra Short-Term Income Fund Performance highlights (unaudited)

MANAGER’S DISCUSSION

Fund highlights

n The Fund underperformed its benchmarks, the Barclays Short-Term U.S. Government/Corporate Index, the Barclays 9–12 Month U.S. Short-Term Treasury Index, and the Barclays U.S. 1–3 Year Government/Credit Bond Index, for the 12-month period that ended August 31, 2015.

n The Fund’s overweight in corporate debt had a mixed impact on relative performance during the period because wider credit spreads detracted from results more than the higher income from this sector contributed to results. The Fund’s holdings in asset-backed securities (ABS) generated positive relative returns. Meanwhile, mortgage-backed securities (MBS) results were mixed: Agency MBS outperformed, while commercial MBS lagged.

Ten largest holdings8 (%) as of August 31, 2015
FNMA, 3.50%, 9-17-2030	1.12
Mercedes-Benz Auto Receivables Series 2015-1 Class A2A, 0.82%, 6-15-2018	1.02
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2014-INN Class A, 1.12%, 6-15-2029	0.93
DIRECTV Holdings LLC, 2.40%, 3-15-2017	0.91
Verizon Communications Incorporated, 1.35%, 6-9-2017	0.90
Chase Issuance Trust Series 2012-A9 Class A9, 0.35%, 10-16-2017	0.90
Nissan Auto Lease Trust Series 2014-B Class A2A, 0.73%, 4-17-2017	0.82
Providence Health & Services Company, 1.08%, 10-1-2016	0.75
Port Arthur TX Navigation District Motiva Enterprises LLC Series B, 0.30%, 12-1-2039	0.75
CNH Equipment Trust Series 2015-C Class A2A, 1.10%, 12-17-2018	0.72

The economic climate remained benign.

The U.S. economy featured trend-like growth, a steadily improving labor market, and generally stable inflation over the past 12 months. Real gross domestic product growth averaged about 2.7% in the most recent four quarters as personal income gains supported consumption. In contrast, business investment softened, in part, due to weakness in the energy industry brought on by a collapse in global oil prices.

The labor market continued to tighten over the past 12 months, as evidenced by a full percentage point decline in the unemployment rate to 5.1%. Nonfarm payrolls expanded at an average pace of about 240,000 per month over the period. Following a persistent theme of this expansion, some of the improvement in the unemployment rate can be attributed to a decline in the labor force participation rate, which fell to 62.6% at the end of the period versus 62.8% a year ago.

The inflationary environment was mixed over the past 12 months as the drop in oil prices pushed the year-over-year change in the headline Consumer Price Index (CPI)

down to 0.2% compared with a 1.7% headline inflation rate a year ago. Excluding food and energy, however, the CPI rose 1.8%, which is basically in line with the average rate of core inflation recorded over the past five years.

Monetary policy transitioned from maximal accommodation to the beginning of a tightening cycle over the past 12 months. The Federal Open Market Committee (FOMC) completed its third round of asset purchases, which is popularly known as quantitative easing, in the fourth quarter of 2014, though the monetary authorities continue to reinvest the proceeds of maturing principal and interest payments from their existing portfolio. The FOMC’s overnight federal funds rate target remained unchanged throughout the period, with the federal funds rate held to a range of 0.00% to 0.25%. The FOMC has said an initial hike to the federal funds target rate may be appropriate before the end of 2015, to be followed by a very gradual normalization of monetary policy.”

Please see footnotes on page 5.

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

Portfolio allocation⁹ as of August 31, 2015

The Fund remained overweight corporate notes and securitized debt.

During the period, the Fund maintained an overweight to short-term corporate notes and securitized debt while being underweight U.S. Treasuries and agency debentures. About half of Fund assets were invested in corporate debt securities, while the other primary sector commitment was to securitized debt: MBS pass-throughs, ABS, and collateralized mortgage obligations. We maintained the Fund’s duration near six months.

In this environment of trend-like growth, stable core inflation, and still accommodative monetary policy, we believe that the spread sectors, including both corporate credit and structured product, represented good value,

particularly with spreads having widened in recent months. In our view, the spread widening has been more a function of supply concerns and global macro uncertainty than deterioration in domestic fundamentals. That said, corporate credit metrics have weakened in certain industries such as mineral extraction and energy, and management focus on rewarding shareholders has resulted in additional leverage in several industries.

We expect a gradual rise in short-term interest rates.

The relatively benign domestic economic conditions described above are likely to result in a gradual upward bias toward interest rates. The FOMC is likely to raise its target rate by 0.75% to 1.00% over the next 12 months, a result which is largely reflected in the current term structure of interest rates. Should market rates diverge from the policy path we think most likely, we will be prepared to modify our duration and yield-curve posture in response to the opportunities presented.

Please see footnotes on page 5.

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 servicing 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 March 1, 2015 to August 31, 2015.

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 3-1-2015		Ending account value 8-31-2015		Expenses paid during the period1		Net annualized expense ratio
Class A
Actual	$	1,000.00	$	1,000.29	$	3.53		0.70	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.68	$	3.57		0.70	%
Class C
Actual	$	1,000.00	$	996.52	$	7.30		1.45	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.90	$	7.38		1.45	%
Administrator Class
Actual	$	1,000.00	$	999.85	$	2.77		0.55	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.43	$	2.80		0.55	%
Institutional Class
Actual	$	1,000.00	$	1,000.87	$	1.77		0.35	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.44	$	1.79		0.35	%
Investor Class
Actual	$	1,000.00	$	1,000.14	$	3.68		0.73	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.53	$	3.72		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—August 31, 2015 Wells Fargo Advantage Ultra Short-Term Income Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities: 12.85%
FDIC Series 2013-R1 Class A 144A		1.15	%		3-25-2033	$	3,310,072	$	3,271,925
FHLMC ±		2.45			3-1-2035		1,453,464		1,551,010
FHLMC ±		2.49			11-1-2035		5,827,973		6,207,043
FHLMC ±		2.50			4-1-2032		135,755		143,542
FHLMC ±		2.50			6-1-2032		6,368		6,709
FHLMC ±		2.56			10-1-2031		75,588		76,165
FHLMC ±		2.58			1-1-2029		73,809		74,487
FHLMC ±		2.65			7-1-2029		3,673		3,831
FHLMC ±		3.03			10-1-2038		2,060,650		2,201,519
FHLMC		4.50			2-1-2020		1,676,591		1,752,759
FHLMC		4.50			8-1-2020		942,540		985,360
FHLMC		4.50			1-1-2022		749,975		780,903
FHLMC		5.00			12-1-2019		1,937,141		2,048,211
FHLMC		5.50			8-1-2018		455,971		477,880
FHLMC		6.00			4-1-2016		34,811		35,178
FHLMC		6.00			5-1-2017		209,659		214,918
FHLMC		6.00			1-1-2024		1,781,879		1,942,209
FHLMC		7.00			6-1-2031		409,954		472,973
FHLMC		9.00			11-1-2016		29,634		29,959
FHLMC		9.00			12-1-2016		110,081		112,661
FHLMC		9.00			8-1-2018		44,084		45,797
FHLMC		9.00			10-1-2019		39,126		42,410
FHLMC		9.50			12-1-2016		14,728		14,871
FHLMC		9.50			5-1-2020		4,930		4,978
FHLMC		9.50			9-1-2020		88,576		96,960
FHLMC		9.50			12-1-2022		153,879		165,465
FHLMC		10.00			11-17-2021		24,260		24,884
FHLMC		10.50			5-1-2020		103,459		114,916
FHLMC Series 2495 Class UJ		3.50			7-15-2032		33,133		33,799
FHLMC Series 2530 Class BH		5.00			11-15-2017		1,001,094		1,033,977
FHLMC Series 2617 Class GR		4.50			5-15-2018		348,413		360,091
FHLMC Series 2684 Class PE		5.00			1-15-2033		34,174		34,795
FHLMC Series 2690 Class TG		4.50			4-15-2032		210,352		214,137
FHLMC Series 2704 Class BH		4.50			11-15-2023		1,102,232		1,180,616
FHLMC Series 2707 Class QE		4.50			11-15-2018		729,817		760,791
FHLMC Series 2727 Class PE		4.50			7-15-2032		158,990		159,309
FHLMC Series 2843 Class BC		5.00			8-15-2019		900,372		941,867
FHLMC Series 2849 Class B		5.00			8-15-2019		1,589,410		1,662,412
FHLMC Series 2855 Class WN		4.00			9-15-2019		350,101		362,476
FHLMC Series 2864 Class NB		5.50			7-15-2033		1,538,686		1,624,096
FHLMC Series 2881 Class AE		5.00			8-15-2034		749,360		798,985
FHLMC Series 2896 Class CB		4.50			11-15-2019		1,307,599		1,362,100
FHLMC Series 2907 Class HE		5.00			5-15-2033		1,105,867		1,113,805
FHLMC Series 2953 Class LD		5.00			12-15-2034		506,281		534,026
FHLMC Series 2963 Class BP		5.00			9-15-2034		206,842		209,968
FHLMC Series 3166 Class AC		5.00			6-15-2021		10,518,979		11,197,558
FHLMC Series 3266 Class D		5.00			1-15-2022		2,840,264		2,970,615
FHLMC Series 3501 Class AC		4.00			8-15-2023		886,470		906,442
FHLMC Series 3538 Class DE		3.50			7-15-2023		619,893		626,509
FHLMC Series 3574 Class EA		3.00			9-15-2021		393,912		402,122

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

10 Wells Fargo Advantage Ultra Short-Term Income Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC Series 3589 Class CA		4.00	%		10-15-2021	$	496,806	$	506,391
FHLMC Series 3609 Class LA		4.00			12-15-2024		749,792		778,313
FHLMC Series 3619 Class EB		3.50			5-15-2024		175,210		180,515
FHLMC Series 3649 Class DG		4.00			4-15-2028		1,950,878		1,972,319
FHLMC Series 3656 Class EC		3.50			5-15-2024		227,661		228,856
FHLMC Series 3660 Class HE		3.50			10-15-2023		80,167		80,369
FHLMC Series 3689 Class BD		2.00			7-15-2020		155,837		155,946
FHLMC Series 3706 Class AB		3.50			7-15-2020		1,207,977		1,228,440
FHLMC Series 3728 Class EA		3.50			9-15-2020		1,120,881		1,130,538
FHLMC Series 3728 Class EH		3.00			9-15-2020		838,565		845,334
FHLMC Series 3772 Class HC		3.00			10-15-2018		939,786		961,866
FHLMC Series 3780 Class DG		3.00			10-15-2027		747,390		756,832
FHLMC Series 3780 Class GX		3.50			9-15-2028		3,945,209		4,070,821
FHLMC Series 3784 Class DA		4.00			7-15-2025		331,958		342,415
FHLMC Series 3786 Class EY		4.50			1-15-2032		188,066		191,510
FHLMC Series 3821 Class LA		3.50			4-15-2025		736,804		765,246
FHLMC Series 3829 Class CA		4.00			8-15-2024		1,255,388		1,266,713
FHLMC Series 3834 Class EA		3.50			6-15-2029		818,156		850,977
FHLMC Series 3842 Class CJ		2.00			9-15-2018		306,219		309,201
FHLMC Series 3878 Class JA		3.50			1-15-2025		490,227		503,196
FHLMC Series 3888 Class JP		4.00			2-15-2037		149,126		151,376
FHLMC Series 3898 Class NE		4.00			7-15-2040		946,117		979,422
FHLMC Series 3952 Class MK		3.00			11-15-2021		359,180		359,898
FHLMC Series K003 Class A3		4.32			12-25-2015		1,139,413		1,145,164
FHLMC Series K003 Class AAB		4.77			5-25-2018		916,705		960,079
FHLMC Series T-42 Class A6		9.50			2-25-2042		917,724		1,137,077
FNMA ±		1.77			10-1-2031		144,975		149,174
FNMA ±		1.85			9-1-2037		897,391		940,293
FNMA		1.89			2-1-2017		2,000,000		2,032,643
FNMA ±		2.11			1-1-2023		17,679		17,760
FNMA ±		2.16			12-1-2034		1,291,618		1,367,707
FNMA ±		2.31			11-1-2031		95,564		100,381
FNMA ±		2.36			5-1-2032		43,665		46,238
FNMA ±		2.37			4-1-2038		4,081,710		4,337,621
FNMA ±		2.40			11-1-2032		1,347,641		1,435,739
FNMA ±		2.40			8-1-2045		1,431,049		1,518,739
FNMA ±		2.43			12-1-2040		439,862		467,323
FNMA ±		2.47			6-1-2032		141,545		148,989
FNMA ±		2.47			6-1-2034		1,773,997		1,862,277
FNMA ±		2.49			2-1-2033		464,108		489,822
FNMA ±		2.49			5-1-2036		1,473,249		1,573,404
FNMA ±		2.52			11-1-2034		2,276,337		2,437,795
FNMA ±		2.53			5-1-2036		1,670,295		1,770,776
FNMA		2.71			9-1-2017		3,555,442		3,645,755
FNMA		2.99			7-1-2016		3,895,998		3,924,558
FNMA		3.00			1-1-2021		765,154		796,528
FNMA		3.18			12-1-2017		4,328,541		4,366,882
FNMA		3.21			2-1-2016		462,592		462,503
FNMA ±		3.36			4-1-2033		5,284		5,503
FNMA ±		3.45			7-1-2033		63,606		64,659

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

Portfolio of investments—August 31, 2015 Wells Fargo Advantage Ultra Short-Term Income Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA		3.50	%		9-1-2018	$	687,917	$	724,946
FNMA %%		3.50			9-17-2030		17,000,000		17,908,438
FNMA		3.77			1-1-2018		1,168,324		1,166,517
FNMA		4.22			5-1-2016		2,222,408		2,241,453
FNMA		4.29			5-1-2016		762,863		769,535
FNMA		4.50			6-1-2019		204,654		213,588
FNMA		5.09			12-1-2016		964,043		1,004,551
FNMA		5.17			2-1-2016		2,269,995		2,276,058
FNMA		5.23			7-1-2018		1,270,085		1,320,624
FNMA		5.27			12-1-2016		935,824		972,634
FNMA		5.39			1-1-2018		1,160,885		1,211,399
FNMA		5.40			12-1-2016		959,425		1,001,953
FNMA		5.52			5-1-2017		1,417,206		1,508,562
FNMA		5.85			5-1-2016		4,000,000		4,045,461
FNMA		6.00			4-1-2021		1,058,656		1,110,342
FNMA		6.50			8-1-2031		690,405		810,583
FNMA		6.74			12-1-2015		1,184,773		1,194,534
FNMA		8.33			7-15-2020		31,966		35,195
FNMA		8.50			7-1-2017		107,856		112,268
FNMA		9.00			12-1-2016		81,209		83,772
FNMA		9.00			2-15-2020		114,862		131,778
FNMA		9.00			10-15-2021		55,300		62,256
FNMA		9.00			6-1-2024		83,470		91,020
FNMA		9.50			12-1-2020		76,842		83,965
FNMA		9.50			3-1-2021		16,390		16,829
FNMA		10.00			3-20-2018		20,382		20,968
FNMA		10.25			9-1-2021		65,246		72,860
FNMA		10.50			8-1-2020		4,275		4,698
FNMA		10.50			4-1-2022		47,873		50,535
FNMA Series 1988-4 Class Z		9.25			3-25-2018		28,895		30,448
FNMA Series 1988-9 Class Z		9.45			4-25-2018		17,854		18,775
FNMA Series 1989-30 Class Z		9.50			6-25-2019		84,986		92,358
FNMA Series 1989-49 Class E		9.30			8-25-2019		9,554		10,145
FNMA Series 1990-111 Class Z		8.75			9-25-2020		21,370		22,720
FNMA Series 1990-119 Class J		9.00			10-25-2020		60,237		67,130
FNMA Series 1990-124 Class Z		9.00			10-25-2020		27,283		30,451
FNMA Series 1990-21 Class Z		9.00			3-25-2020		113,506		126,063
FNMA Series 1990-27 Class Z		9.00			3-25-2020		70,026		78,549
FNMA Series 1990-30 Class D		9.75			3-25-2020		22,865		25,866
FNMA Series 1990-77 Class D		9.00			6-25-2020		35,024		39,144
FNMA Series 1991-132 Class Z		8.00			10-25-2021		138,549		156,258
FNMA Series 1992-71 Class X		8.25			5-25-2022		59,736		68,759
FNMA Series 2000-T6 Class A2		9.50			6-25-2030		540,927		646,758
FNMA Series 2001-T10 Class A3		9.50			12-25-2041		1,124,546		1,294,667
FNMA Series 2001-T12 Class A3		9.50			8-25-2041		955,112		1,111,385
FNMA Series 2002-94 Class BK		5.50			1-25-2018		712,364		729,526
FNMA Series 2002-T1 Class A4		9.50			11-25-2031		1,189,708		1,443,960
FNMA Series 2002-W4 Class A6 ±		3.38			5-25-2042		1,121,897		1,176,517
FNMA Series 2003-125 Class AY		4.00			12-25-2018		1,698,294		1,751,717

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

12 Wells Fargo Advantage Ultra Short-Term Income Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA Series 2003-129 Class AP		4.00	%		1-25-2019	$	367,784	$	373,697
FNMA Series 2003-15 Class CN		5.00			3-25-2018		291,775		302,614
FNMA Series 2003-35 Class BC		5.00			5-25-2018		561,440		581,403
FNMA Series 2003-35 Class ME		5.00			5-25-2018		293,988		305,438
FNMA Series 2003-92 Class PE		4.50			9-25-2018		768,481		799,149
FNMA Series 2003-W11 Class A1 ±		3.46			6-25-2033		43,181		45,243
FNMA Series 2003-W3 Class 1A4 ±		3.46			8-25-2042		51,805		54,719
FNMA Series 2004-10 Class FA ±		0.55			2-25-2034		1,556,833		1,561,681
FNMA Series 2004-17 Class HJ		4.75			4-25-2019		1,676,251		1,775,145
FNMA Series 2004-32 Class AY		4.00			5-25-2019		127,996		132,335
FNMA Series 2004-92 Class QY		4.50			8-25-2034		720,040		749,444
FNMA Series 2006-74 Class DP		5.50			3-25-2035		3,996		3,996
FNMA Series 2006-M3 Class B		5.10			8-25-2016		1,055,342		1,092,938
FNMA Series 2007-2 Class FA ±		0.40			2-25-2037		29,169		29,175
FNMA Series 2007-36 Class AB		5.00			11-25-2021		649,750		660,622
FNMA Series 2007-W2 Class 1A1 ±		0.52			3-25-2037		1,053,214		1,054,312
FNMA Series 2008-36 Class AB		4.50			10-25-2022		239,887		241,157
FNMA Series 2008-76 Class GF ±		0.85			9-25-2023		713,965		718,166
FNMA Series 2008-81 Class LK		5.00			9-25-2023		406,548		424,181
FNMA Series 2009-76 Class HA		4.00			1-25-2019		355,502		362,650
FNMA Series 2010-153 Class AB		2.00			11-25-2018		1,084,926		1,097,678
FNMA Series 2010-153 Class BG		2.50			11-25-2018		838,158		850,781
FNMA Series 2010-25 Class ND		3.50			3-25-2025		441,673		455,839
FNMA Series 2010-39 Class PD		3.00			6-25-2038		369,799		375,026
FNMA Series 2010-39 Class VY		4.50			3-25-2025		2,570,000		2,637,473
FNMA Series 2010-57 Class DQ		3.00			6-25-2025		751,976		777,547
FNMA Series 2010-70 Class CT		4.00			11-25-2027		37,929		37,922
FNMA Series 2010-9 Class MB		5.00			5-25-2032		890,434		904,063
FNMA Series 2011-111 Class MA		4.00			7-25-2038		235,794		236,929
FNMA Series 2011-115 Class DP		3.50			4-25-2034		111,733		111,960
FNMA Series 2011-122 Class A		3.00			12-25-2025		526,100		543,059
FNMA Series 2011-129 Class LG		3.00			3-25-2037		787,938		807,720
FNMA Series 2011-33 Class GA		3.50			10-25-2028		1,353,120		1,388,121
FNMA Series 2011-35 Class PA		4.00			2-25-2039		994,949		1,016,327
FNMA Series 2011-39 Class DA		3.50			7-25-2024		477,609		483,756
FNMA Series 2011-40 Class CA		3.50			12-25-2028		3,661,839		3,761,445
FNMA Series 2011-42 Class A		3.00			2-25-2024		5,266,091		5,425,986
FNMA Series 2011-56 Class AC		2.00			7-25-2018		278,576		281,440
FNMA Series 2011-61 Class VA		5.00			4-25-2040		1,590,847		1,608,338
FNMA Series 2011-99 Class AB		4.00			12-25-2038		325,175		332,312
FNMA Series 2012-94 Class E		3.00			6-25-2022		164,608		169,359
FNMA Series 2013-M12 Class A		1.53			10-25-2017		1,799,023		1,811,355
FNMA Series 2014-M3 Class ASQ2		0.56			3-25-2016		3,130,089		3,128,887
FNMA Series G-22 Class ZT		8.00			12-25-2016		92,289		94,642
GNMA		7.00			6-15-2033		583,797		716,588
GNMA		9.00			11-15-2017		27,850		28,902
GNMA		9.50			11-15-2017		8,662		8,703
GNMA		10.00			10-20-2017		19,116		19,210
GNMA Series 2004-11 Class QE		5.00			12-16-2032		689,708		705,646
GNMA Series 2008-36 Class GA		4.25			10-16-2022		2,010,948		2,049,763

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

Portfolio of investments—August 31, 2015 Wells Fargo Advantage Ultra Short-Term Income Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
GNMA Series 2009-122 Class AC		4.00	%		3-16-2023	$	636,624	$	655,212
GNMA Series 2009-35 Class PA		5.00			11-16-2032		277,107		281,377
GNMA Series 2009-74 Class BP		3.50			1-20-2037		287,189		289,812
GNMA Series 2009-93 Class UW		5.00			10-20-2020		1,606,386		1,630,167
GNMA Series 2010-133 Class QK		3.50			9-16-2034		565,403		572,698
GNMA Series 2010-167 Class KW		5.00			9-20-2036		43,001		43,263
GNMA Series 2010-27 Class AK		4.00			2-16-2023		1,419,739		1,456,117
GNMA Series 2010-29 Class PL		3.00			8-20-2036		48,033		48,018
GNMA Series 2010-43 Class JA		3.00			9-20-2037		544,378		552,493
GNMA Series 2010-69 Class DQ		2.75			4-20-2040		190,131		192,447
GNMA Series 2010-7 Class CK		3.50			1-16-2034		255,953		257,289
GNMA Series 2010-87 Class ME		2.00			3-20-2036		322,947		323,344
GNMA Series 2011-29 Class AG		3.00			8-16-2037		210,279		212,827
Total Agency Securities (Cost $205,298,477)									206,030,326
Asset-Backed Securities: 13.44%
Ally Auto Receivables Trust Series 2015-1 Class A2		0.92			2-15-2018		10,000,000		10,001,510
Carmax Auto Owner Trust Series 2015-3 Class A2A		1.10			11-15-2018		7,500,000		7,504,793
Chase Issuance Trust Series 2012-A9 Class A9 ±		0.35			10-16-2017		14,350,000		14,350,000
Citibank Credit Card Issuance Trust Series 2006-A3 Class A3		5.30			3-15-2018		10,423,000		10,676,268
Citibank Credit Card Issuance Trust Series 2012-A1 Class A1		0.55			10-10-2017		10,000,000		10,000,100
Countrywide Asset-Backed Certificates Series 2004-AB2 Class A3 ±		1.02			5-25-2036		126,489		126,362
Dell Equipment Finance Trust Series 2014-1 Class A2 144A		0.64			7-22-2016		2,194,930		2,193,130
Delta Air Lines Incorporated 2009-1 Series B Pass Through Trust		9.75			6-17-2018		7,561,648		8,109,867
Ford Credit Auto Lease Trust Series 2014-A Class A2A		0.50			10-15-2016		1,309,600		1,309,485
Ford Credit Auto Lease Trust Series 2014-B Class A2A		0.51			3-15-2017		7,343,260		7,338,920
GE Equipment Transportation LLC Series 2015-1 Class A2		0.89			11-24-2017		3,995,000		3,997,449
GM Financial Automobile Leasing Trust Series 2015-2 Class A2A		1.18			4-20-2018		11,500,000		11,520,367
Honda Auto Receivables Owner Trust Series 2013-2 Class A3		0.53			2-16-2017		1,604,220		1,603,231
Honda Auto Receivables Owner Trust Series 2013-3 Class A3		0.77			5-15-2017		914,439		914,742
Honda Auto Receivables Owner Trust Series 2013-4 Class A3		0.69			9-18-2017		8,370,845		8,364,558
Honda Auto Receivables Owner Trust Series 2014-3 Class A2		0.48			12-15-2016		4,317,852		4,315,305
Honda Auto Receivables Owner Trust Series 2015-3 Class A2		0.92			11-20-2017		8,720,000		8,720,776
Hyundai Auto Lease Securitization Trust Series 2014-A Class A2 144A		0.52			7-15-2016		449,692		449,652
Hyundai Auto Lease Securitization Trust Series 2014-B Class A2 144A		0.61			2-15-2017		6,431,024		6,428,484
Hyundai Auto Lease Securitization Trust Series 2015-B Class A2A 144A		0.95			12-15-2017		9,400,000		9,407,774
Hyundai Auto Receivables Trust Series 2013-B Class A3		0.71			9-15-2017		5,776,807		5,777,731
Leaf II Receivables Funding LLC Series 2015-1 Class A2 144A		1.13			3-15-2017		3,600,000		3,592,843
Mercedes-Benz Auto Lease Trust Series 2013-B Class A4		0.76			7-15-2019		2,350,000		2,350,531
Mercedes-Benz Auto Lease Trust Series 2014-A Class A2A		0.48			6-15-2016		1,390,394		1,390,351
Mercedes-Benz Auto Receivables Series 2015-1 Class A2A		0.82			6-15-2018		16,400,000		16,359,443
Nissan Auto Lease Trust Series 2014-A Class A4		1.04			10-15-2019		1,593,000		1,593,648
Nissan Auto Lease Trust Series 2014-B Class A2A		0.73			4-17-2017		13,099,634		13,099,398
Porsche Innovative Lease Owner Trust Series 2015-1 Class A2 144A		0.79			11-21-2017		9,500,000		9,500,523
Susquehanna Auto Receivables Trust Series 2014-1A Class A2 144A		0.58			10-17-2016		1,839,127		1,838,229
United Airlines Incorporated 2009-2A Series A-2 Pass Through Trust		9.75			7-15-2018		1,873,256		2,013,750
Volkswagen Auto Lease Trust Series 2015-A Class A2A		0.87			6-20-2017		9,298,847		9,297,963
Volvo Financial Equipment LLC Series 2014-1A Class A2 144A		0.54			11-15-2016		2,447,580		2,446,848
Volvo Financial Equipment LLC Series 2015-1A Class A2 144A		0.95			11-15-2017		7,500,000		7,504,485
World Omni Automobile Lease Series 2015-A Class A2A		1.06			5-15-2018		11,400,000		11,396,377
Total Asset-Backed Securities (Cost $215,911,428)									215,494,893

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

14 Wells Fargo Advantage Ultra Short-Term Income Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Corporate Bonds and Notes: 38.25%
Consumer Discretionary: 2.96%
Media: 2.96%
21st Century Fox America Incorporated		7.60	%		10-11-2015	$	5,618,000	$	5,656,113
21st Century Fox America Incorporated		8.00			10-17-2016		827,000		888,028
Cox Communications Incorporated		5.50			10-1-2015		9,000,000		9,033,876
DIRECTV Holdings LLC		2.40			3-15-2017		14,563,000		14,658,359
Omnicom Group Incorporated		5.90			4-15-2016		7,000,000		7,190,708
Thomson Reuters Corporation		1.65			9-29-2017		10,000,000		9,984,210
									47,411,294
Consumer Staples: 3.11%
Beverages: 0.56%
Constellation Brands Incorporated		7.25			9-1-2016		8,600,000		9,008,500
Food & Staples Retailing: 0.50%
CVS Health Corporation		1.90			7-20-2018		8,000,000		8,023,256
Food Products: 1.10%
Kraft Heinz Foods Company 144A		1.60			6-30-2017		7,000,000		6,993,777
Kraft Heinz Foods Company 144A		2.00			7-2-2018		3,000,000		2,996,013
Tyson Foods Incorporated		6.60			4-1-2016		7,446,000		7,679,023
									17,668,813
Tobacco: 0.95%
Reynolds American Incorporated		2.30			6-12-2018		5,000,000		5,030,370
Reynolds American Incorporated 144A		3.50			8-4-2016		10,000,000		10,181,500
									15,211,870
Energy: 4.83%
Energy Equipment & Services: 0.34%
Texas Eastern Transmission LP 144A		6.00			9-15-2017		5,000,000		5,399,150
Oil, Gas & Consumable Fuels: 4.49%
Anadarko Petroleum Corporation		6.38			9-15-2017		9,700,000		10,494,731
Boardwalk Pipelines LLC		5.88			11-15-2016		9,000,000		9,315,963
DCP Midstream Operating Company		2.50			12-1-2017		7,628,000		7,207,140
Energy Transfer Partners LP		2.50			6-15-2018		5,000,000		4,965,000
Kinder Morgan Incorporated		7.00			6-15-2017		4,574,000		4,914,269
Marathon Petroleum Corporation		3.50			3-1-2016		9,029,000		9,138,576
Nabors Industries Incorporated		2.35			9-15-2016		10,000,000		9,930,200
ONEOK Partners LP		3.25			2-1-2016		10,000,000		10,051,370
Southwestern Energy Company		3.30			1-23-2018		2,000,000		1,993,892
Williams Partners LP		7.25			2-1-2017		3,700,000		3,955,215
									71,966,356

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

Portfolio of investments—August 31, 2015 Wells Fargo Advantage Ultra Short-Term Income Fund 15

Security name	Interest rate			Maturity date		Principal		Value
Financials: 13.14%
Banks: 2.50%
Associated Banc Corporation		5.13	%		3-28-2016	$	3,500,000	$	3,572,496
Bank of America Corporation		1.70			8-25-2017		4,000,000		3,993,124
Bank of America Corporation		6.05			5-16-2016		8,000,000		8,254,456
Discover Bank		2.60			11-13-2018		5,000,000		5,005,705
Merrill Lynch & Company Incorporated		5.30			9-30-2015		1,600,000		1,605,206
PNC Funding Corporation		5.25			11-15-2015		9,221,000		9,301,444
UBS AG		5.88			7-15-2016		8,000,000		8,291,888
									40,024,319
Capital Markets: 2.44%
Bear Stearns Companies LLC		5.55			1-22-2017		10,785,000		11,344,677
Goldman Sachs Group Incorporated		5.63			1-15-2017		6,261,000		6,574,025
Goldman Sachs Group Incorporated		6.15			4-1-2018		5,085,000		5,603,629
Morgan Stanley		1.75			2-25-2016		5,500,000		5,523,441
Morgan Stanley		1.88			1-5-2018		6,060,000		6,059,824
Morgan Stanley		2.20			12-7-2018		4,000,000		4,016,368
									39,121,964
Consumer Finance: 4.64%
AIG Global Funding 144A		1.65			12-15-2017		4,000,000		3,994,028
American Express		1.80			7-31-2018		8,000,000		7,971,448
Capital One Financial Corporation		1.00			11-6-2015		2,315,000		2,315,877
Daimler Finance North America LLC 144A		1.60			8-3-2017		5,000,000		4,990,315
Discover Financial Services Company		6.45			6-12-2017		570,000		616,495
ERAC USA Finance LLC 144A		1.40			4-15-2016		1,024,000		1,024,885
ERAC USA Finance LLC 144A		2.75			3-15-2017		750,000		764,141
ERAC USA Finance LLC 144A		5.90			11-15-2015		1,020,000		1,030,161
Ford Motor Credit Company LLC		2.24			6-15-2018		3,000,000		2,984,364
Ford Motor Credit Company LLC		6.63			8-15-2017		5,180,000		5,601,642
Harley-Davidson Financial Services Incorporated 144A		1.15			9-15-2015		2,500,000		2,500,595
Harley-Davidson Financial Services Incorporated 144A		2.70			3-15-2017		6,000,000		6,121,380
Harley-Davidson Financial Services Incorporated 144A		3.88			3-15-2016		1,500,000		1,523,726
General Motors Financial Company		2.40			4-10-2018		10,000,000		9,880,940
HSBC Finance Corporation		5.50			1-19-2016		2,665,000		2,711,960
Hyundai Capital America Company 144A		3.75			4-6-2016		7,331,000		7,443,370
Navient Corporation		3.88			9-10-2015		3,500,000		3,482,500
Toll Brothers Finance Corporation		8.91			10-15-2017		8,405,000		9,476,638
									74,434,465
Diversified Financial Services: 1.05%
McGraw Hill Financial Incorporated 144A		2.50			8-15-2018		1,450,000		1,457,523
McGraw Hill Financial Incorporated		5.90			11-15-2017		8,692,000		9,418,825
Toll Road Investors Partnership II LP 144A¤		0.00			2-15-2016		6,000,000		5,882,052
									16,758,400

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

16 Wells Fargo Advantage Ultra Short-Term Income Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Insurance: 1.90%
MetLife Insurance Company 144A		7.70	%		11-1-2015	$	8,500,000	$	8,586,488
Platinum Underwriters Finance Incorporated Series B		7.50			6-1-2017		8,075,000		8,772,898
Symetra Financial Corporation 144A		6.13			4-1-2016		9,100,000		9,328,119
Unum Group 144A		6.85			11-15-2015		3,799,000		3,843,171
									30,530,676
REITs: 0.61%
ARC Properties Operating Partnership LP		2.00			2-6-2017		2,915,000		2,845,769
Health Care REIT Incorporated		6.20			6-1-2016		3,000,000		3,103,842
Realty Income Corporation		5.50			11-15-2015		3,833,000		3,865,868
									9,815,479
Health Care: 3.02%
Biotechnology: 1.28%
Baxalta Incorporated 144A		2.00			6-22-2018		3,000,000		2,985,126
Biogen Idec Incorporated		6.88			3-1-2018		8,975,000		10,058,238
Celgene Corporation		2.13			8-15-2018		7,500,000		7,501,313
									20,544,677
Health Care Equipment & Supplies: 0.23%
Zimmer Holdings Incorporated		1.45			4-1-2017		3,630,000		3,619,390
Health Care Providers & Services: 1.20%
Providence Health & Services Company ±		1.08			10-1-2016		12,000,000		12,038,184
UnitedHealth Group Incorporated		1.45			7-17-2017		3,625,000		3,627,762
UnitedHealth Group Incorporated		1.90			7-16-2018		3,625,000		3,634,385
									19,300,331
Life Sciences Tools & Services: 0.31%
Thermo Fisher Scientific Incorporated		1.30			2-1-2017		5,000,000		4,971,930
Industrials: 1.77%
Aerospace & Defense: 0.58%
L-3 Communications Corporation		3.95			11-15-2016		9,000,000		9,232,110
Commercial Services & Supplies: 0.17%
Penske Truck Leasing Company LP 144A		2.50			3-15-2016		2,720,000		2,738,999
Machinery: 0.58%
CNH Capital LLC		3.25			2-1-2017		5,240,000		5,207,250
CNH Capital LLC		3.88			11-1-2015		4,105,000		4,105,000
									9,312,250
Trading Companies & Distributors: 0.44%
International Lease Finance Corporation		8.63			9-15-2015		7,000,000		7,008,925
Information Technology: 1.50%
Communications Equipment: 0.50%
Cisco Systems Incorporated		1.65			6-15-2018		8,000,000		7,996,080

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

Portfolio of investments—August 31, 2015 Wells Fargo Advantage Ultra Short-Term Income Fund 17

Security name	Interest rate			Maturity date		Principal		Value
IT Services: 0.37%
Fidelity National Information Services Incorporated		1.45	%		6-5-2017	$	3,000,000	$	2,963,307
Xerox Corporation		6.40			3-15-2016		2,950,000		3,035,037
									5,998,344
Semiconductors & Semiconductor Equipment: 0.63%
KLA-Tencor Corporation		2.38			11-1-2017		10,000,000		10,064,540
Materials: 1.58%
Chemicals: 0.61%
Eastman Chemical Company		3.00			12-15-2015		9,760,000		9,816,549
Construction Materials: 0.60%
Martin Marietta Material ±		1.38			6-30-2017		9,690,000		9,625,184
Metals & Mining: 0.37%
Glencore Funding LLC 144A		1.70			5-27-2016		3,000,000		2,991,849
Glencore Funding LLC 144A		2.13			4-16-2018		3,000,000		2,853,906
									5,845,755
Telecommunication Services: 2.19%
Diversified Telecommunication Services: 2.19%
CenturyLink Incorporated		5.15			6-15-2017		1,500,000		1,548,750
CenturyLink Incorporated		6.00			4-1-2017		1,000,000		1,052,500
Clearwire Communications LLC 144A		14.75			12-1-2016		7,290,000		8,310,600
Crown Castle Towers LLC 144A		5.50			1-15-2037		7,305,000		7,510,862
Verizon Communications Incorporated		0.70			11-2-2015		2,325,000		2,324,891
Verizon Communications Incorporated		1.35			6-9-2017		14,450,000		14,402,835
									35,150,438
Utilities: 4.15%
Electric Utilities: 2.86%
Dayton Power & Light Company		1.88			9-15-2016		9,000,000		9,014,787
Eversource Energy		1.60			1-15-2018		5,000,000		5,017,485
Exelon Corporation		1.55			6-9-2017		10,000,000		9,975,300
LG&E & KU Energy LLC		2.13			11-15-2015		7,635,000		7,654,920
NextEra Energy Capital Holdings Incorporated		2.06			9-1-2017		7,275,000		7,295,661
NextEra Energy Capital Holdings Incorporated		1.34			9-1-2015		7,000,000		7,000,000
									45,958,153
Gas Utilities: 0.79%
CenterPoint Energy Resource Corporation		6.15			5-1-2016		3,000,000		3,096,576
Questar Corporation		2.75			2-1-2016		9,500,000		9,577,321
									12,673,897
Multi-Utilities: 0.50%
WEC Energy Group Incorporated		1.65			6-15-2018		8,000,000		7,985,176
Total Corporate Bonds and Notes (Cost $615,526,279)									613,217,270

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

18 Wells Fargo Advantage Ultra Short-Term Income Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Municipal Obligations: 3.46%
California: 0.31%
California Public Works Board Lease Series E (Miscellaneous Revenue)		3.68	%		12-1-2015	$	5,000,000	$	5,033,350
Connecticut: 0.38%
Connecticut Series A (GO Revenue)		5.46			3-1-2019		5,675,000		6,026,339
Florida: 0.36%
Village Center Florida Community Development District (Miscellaneous Revenue) 144A		1.30			11-1-2015		2,750,000		2,749,423
Village Center Florida Community Development District (Miscellaneous Revenue) 144A		1.60			11-1-2016		2,000,000		1,997,360
Village Center Florida Community Development District Little Sumter Service Area System Series B (Water & Sewer Revenue) 144A		1.30			10-1-2015		1,000,000		999,870
									5,746,653
New Jersey: 1.41%
Atlantic City NJ (GO Revenue, AGM Insured)		3.30			12-15-2016		1,600,000		1,625,216
New Jersey EDA School Facilities Series QQ (Education Revenue)		1.80			6-15-2017		10,000,000		9,930,500
New Jersey EDA Series B (Miscellaneous Revenue, AGM Insured) ¤		0.00			2-15-2018		10,000,000		9,284,800
New Jersey Turnpike Authority Series B (Transportation Revenue, Ambac Insured)		4.25			1-1-2016		1,725,000		1,745,579
									22,586,095
South Carolina: 0.16%
South Carolina Jobs EDA Waste Management South Carolina Incorporated Project (Resource Recovery Revenue)		1.88			11-1-2016		2,500,000		2,528,600
Texas: 0.84%
Port Arthur TX Navigation District Motiva Enterprises LLC Series B (Resource Recovery Revenue) ø		0.30			12-1-2039		12,000,000		12,000,000
Port Arthur TX Navigation District Motiva Enterprises Project (Industrial Development Revenue) ø		0.30			11-1-2040		1,500,000		1,500,000
									13,500,000
Total Municipal Obligations (Cost $55,589,823)									55,421,037
Non-Agency Mortgage-Backed Securities: 11.37%
Bank of America Commercial Mortgage Trust Series 2006-6 Class A4		5.36			10-10-2045		3,500,000		3,570,378
Bank of America Commercial Mortgage Trust Series 2007-3 Class A1A ±		5.74			6-10-2049		916,274		968,072
Bank of America Mortgage Securities Series 2002-K Class 3A1 ±		2.63			10-20-2032		2,258		2,274
Bear Stearns Commercial Mortgage Securities Incorporated Series 2005-PW10 Class A4 ±		5.41			12-11-2040		3,083,392		3,086,753
Bear Stearns Commercial Mortgage Securities Incorporated Series 2007-PWR15 Class A4		5.33			2-11-2044		2,252,150		2,354,427
CFCRE Commercial Mortgage Trust Series 2015-RUM Class A 144A±		1.90			7-15-2030		3,000,000		3,001,104
CNH Equipment Trust Series 2014-A Class A2		0.49			6-15-2017		2,475,215		2,473,955
CNH Equipment Trust Series 2015-C Class A2A		1.10			12-17-2018		11,600,000		11,605,348
Collateralized Mortgage Obligation Trust Series 66 Class Z		8.00			9-20-2021		55,012		59,673
Commercial Mortgage Trust Series 2010-C1 Class A1 144A		3.16			7-10-2046		2,378,060		2,376,809
Commercial Mortgage Trust Series 2013-FL3 Class B 144A±		2.35			10-13-2028		9,100,000		9,066,285
Commercial Mortgage Trust Series 2014-BBG Class A 144A±		1.00			3-15-2029		5,400,000		5,369,657

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

Portfolio of investments—August 31, 2015 Wells Fargo Advantage Ultra Short-Term Income Fund 19

Security name	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage-Backed Securities (continued)
Countrywide Home Loans Mortgage Pass-Through Trust Series 2001-HYB1 Class 1A1 ±		2.16	%		6-19-2031	$	572,590	$	545,865
Countrywide Home Loans Mortgage Pass-Through Trust Series 2001-HYB1 Class 2A1 ±		2.00			6-19-2031		260,940		235,881
Credit Suisse First Boston Mortgage Securities Corporation Series 2006-C4 Class A3		5.47			9-15-2039		5,190,122		5,319,024
Credit Suisse Mortgage Capital Certificates Series 2006-C5 Class A3		5.31			12-15-2039		8,722,199		8,954,716
DLJ Mortgage Acceptance Corporation Series 1990-2 Class A ±(i)		3.43			1-25-2022		68,185		69,225
DLJ Mortgage Acceptance Corporation Series 1991-3 Class A1 ±(i)		1.99			1-25-2021		16,454		16,573
EquiFirst Mortgage Loan Trust Series 2003-2 Class 3A3 ±		1.32			9-25-2033		613,640		587,526
Equity Mortgage Trust Series 2014-INNS Class A 144A±		1.04			5-8-2031		8,414,680		8,355,029
FedEx Corporation 1998 Series 981C Pass-Through Certificates		7.02			1-15-2016		1,699,742		1,742,236
GE Commercial Mortgage Corporation Series 2007-C1 Class A4		5.54			12-10-2049		3,566,000		3,695,492
GE Equipment Transportation LLC Series 2014-1 Class A2		0.55			12-23-2016		3,984,404		3,982,706
GS Mortgage Securities Trust Series 2014-GSFL Class A 144A±		1.20			7-15-2031		8,199,470		8,175,183
GSMPS Mortgage Loan Trust Series 1998-1 Class A 144A±		8.00			9-19-2027		66,793		68,156
Housing Securities Incorporated Series 1992-8 Class E ±		3.61			6-25-2024		104,858		104,923
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2006-CB14 Class A4 ±		5.48			12-12-2044		83,472		83,910
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2006-CB17 Class A4		5.43			12-12-2043		943,370		972,242
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2006-LDP7 Class A4 ±		6.09			4-15-2045		1,786,698		1,816,788
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2007-LD12 Class A4 ±		5.88			2-15-2051		145,000		152,615
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2014-INN Class A 144A±		1.12			6-15-2029		15,000,000		14,958,705
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2014-PHH Class A 144A±		1.39			8-15-2027		10,000,000		10,019,930
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2015-CSMO Class A 144A±		1.45			1-15-2032		8,700,000		8,669,942
JPMorgan Chase Commercial Mortgage Securities Corporation Series 2015-FL7 Class A 144A±		1.44			5-15-2028		8,971,847		8,970,762
JPMorgan Chase Commercial Mortgage Securities Trust Series 2005-LDP5 Class A4 ±		5.41			12-15-2044		1,808,438		1,806,304
JPMorgan Chase Commercial Mortgage Securities Trust Series 2006-LDP6 Class A4 ±		5.48			4-15-2043		1,311,812		1,322,933
Lehman Brothers UBS Commercial Mortgage Trust Series 2007-C2 Class A3		5.43			2-15-2040		2,898,939		3,030,649
Lehman Brothers UBS Commercial Mortgage Trust Series 2007-C6 Class A4 ±		5.86			7-15-2040		6,607,803		6,888,945
Macquarie Equipment Funding Trust Series 2014-A Class A2 144A		0.80			11-21-2016		9,492,699		9,495,926
Master Mortgages Trust Series 2002-3 Class 4A1 ±		2.63			10-25-2032		18,332		18,317
Morgan Stanley Capital I Series 2006-HQ8 Class A4 ±		5.58			3-12-2044		1,104,947		1,106,930
Morgan Stanley Capital I Series 2007-IQ Class A4		5.81			12-12-2049		7,291,695		7,767,339
Morgan Stanley Mortgage Trust Series 35 Class 2 ±(i)(w)		15,269.38			4-20-2021		4		262
NCUA Guaranteed Notes Program Series 2010-C1 Class A2		2.90			10-29-2020		3,250,678		3,273,017
NCUA Guaranteed Notes Program Series 2010-C1 Class APT		2.65			10-29-2020		4,093,818		4,110,345
NCUA Guaranteed Notes Program Series 2010-R1 Class 2A		1.84			10-7-2020		146,573		146,934
Prudential Home Mortgage Securities Series 1988-1 Class A ±		2.48			4-25-2018		9,296		9,373
Resecuritization Mortgage Trust Series 1998-B Class A 144A±		0.45			4-26-2021		8,361		7,986
Salomon Brothers Mortgage Securities VII Series 1990-2 Class A ±		2.52			11-25-2020		327,807		332,968
SCG Trust Series 2013-SRP1 Class A 144A±		1.59			11-15-2026		7,500,000		7,459,448
Structured Asset Mortgage Investments Incorporated Series 2001-4 Class A2 ±		9.31			10-25-2024		74,972		77,256

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

20 Wells Fargo Advantage Ultra Short-Term Income Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Non-Agency Mortgage-Backed Securities (continued)
Structured Asset Securities Corporation Series 1998-2 Class A ±		0.72	%		2-25-2028	$	362,176	$	356,924
UBS Barclays Commercial Mortgage Trust Series 2012-C2 Class A1		1.01			5-10-2063		2,747,846		2,747,277
Wilshire Funding Corporation Series 1996-3 Class M2 ±		7.15			8-25-2032		142,187		139,354
Wilshire Funding Corporation Series 1996-3 Class M3 ±		7.15			8-25-2032		127,677		123,011
Wilshire Funding Corporation Series 1998-2 Class M1 ±		2.00			12-28-2037		571,690		560,100
Total Non-Agency Mortgage-Backed Securities (Cost $182,923,788)									182,213,762
Yankee Corporate Bonds and Notes: 11.03%
Consumer Discretionary: 0.16%
Diversified Financial Services: 0.16%
AerCap Ireland Capital Limited		2.75			5-15-2017		2,600,000		2,574,000
Consumer Staples: 1.46%
Food & Staples Retailing: 0.64%
Tesco plc 144A		2.70			1-5-2017		10,100,000		10,164,943
Tobacco: 0.82%
British American Tobacco International Finance plc 144A		1.85			6-15-2018		5,700,000		5,695,583
Imperial Tobacco Finance plc 144A		2.05			7-20-2018		7,500,000		7,464,885
									13,160,468
Energy: 0.87%
Oil, Gas & Consumable Fuels: 0.87%
Petrobras Global Finance Company		3.25			3-17-2017		5,435,000		5,207,274
Transocean Incorporated		5.55			12-15-2016		8,765,000		8,789,104
									13,996,378
Financials: 6.81%
Banks: 4.68%
ABN AMRO Bank NV 144A		1.38			1-22-2016		9,815,000		9,832,127
Banque Federative du Credit Mutuel SA 144A		1.70			1-20-2017		8,150,000		8,177,946
BPCE SA		1.61			7-25-2017		10,000,000		10,028,240
Corporacion Andina De Fomento		3.75			1-15-2016		2,360,000		2,383,513
Experian Finance plc 144A		2.38			6-15-2017		11,500,000		11,567,655
ING Bank NV 144A		1.38			3-7-2016		8,000,000		8,019,520
Lloyds Bank plc		2.00			8-17-2018		8,000,000		7,994,744
Royal Bank of Scotland plc		3.95			9-21-2015		3,000,000		3,005,010
Shinhan Bank 144A±		0.93			4-8-2017		5,000,000		4,995,560
Sumitomo Mitsui Banking Corporation		1.35			7-11-2017		5,000,000		4,973,325
Westpac Banking Corporation 144A		5.30			10-15-2015		4,040,000		4,063,004
									75,040,644
Diversified Financial Services: 0.51%
Credit Suisse New York		6.00			2-15-2018		7,500,000		8,161,500

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

Portfolio of investments—August 31, 2015 Wells Fargo Advantage Ultra Short-Term Income Fund 21

Security name	Interest rate			Maturity date		Principal		Value
Insurance: 1.05%
Allied World Assurance Company		7.50	%		8-1-2016	$	9,252,000	$	9,745,196
Endurance Specialty Holdings Limited		6.15			10-15-2015		7,130,000		7,171,981
									16,917,177
Real Estate Management & Development: 0.25%
Korea Land & Housing Corporation 144A		1.88			8-2-2017		4,000,000		4,008,816
Thrifts & Mortgage Finance: 0.32%
Korea Development Bank		3.25			9-20-2016		5,000,000		5,102,970
Health Care: 0.65%
Pharmaceuticals: 0.65%
Perrigo Company plc		1.30			11-8-2016		10,550,000		10,485,835
Industrials: 0.13%
Electrical Equipment: 0.13%
Siemens Financieringsmaatschappij NV		5.63			3-16-2016		2,000,000		2,051,660
Information Technology: 0.21%
Semiconductors & Semiconductor Equipment: 0.21%
TSMC Global Limited 144A		0.95			4-3-2016		3,385,000		3,375,583
Telecommunication Services: 0.74%
Diversified Telecommunication Services: 0.49%
Telefonica Emisiones SAU		6.42			6-20-2016		7,500,000		7,790,205
Wireless Telecommunication Services: 0.25%
America Movil SAB de CV ±		1.29			9-12-2016		4,000,000		4,017,844
Total Yankee Corporate Bonds and Notes (Cost $177,460,406)									176,848,023
	Yield					Shares
Short-Term Investments: 10.37%
Investment Companies: 10.25%
Wells Fargo Advantage Cash Investment Money Market Fund, Select Class (l)(u)##		0.15					164,351,553		164,351,553
						Principal
U.S. Treasury Securities: 0.12%
U.S. Treasury Bill (z)#		0.01			9-17-2015	$	1,950,000		1,949,998
Total Short-Term Investments (Cost $166,301,547)									166,301,551

Total investments in securities (Cost $1,619,011,748) *	100.77	%		1,615,526,862
Other assets and liabilities, net	(0.77	)		(12,423,355	)
Total net assets	100.00	%	$	1,603,103,507

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

22 Wells Fargo Advantage Ultra Short-Term Income Fund Portfolio of investments—August 31, 2015

144A The security may be resold in transactions exempt from registration, normally to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933.

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

%% The security is issued on a when-issued basis.

¤ The security is issued in zero coupon form with no periodic interest payments.

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 rate shown is the rate in effect at period end.

(i) Illiquid security for which the designation as illiquid is unaudited.

(w) The security is a structured note which generates income based on a coupon formula (-1,500 * 1 month LIBOR + 15,573.5%) and the prepayment behavior of the underlying collateral. The coupon is subject to a mandatory cap of 15,573.5% and a mandatory floor of 11%.

(l) The security represents an affiliate of the Fund as defined in the Investment Company Act of 1940.

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

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

(z) Zero coupon security. The 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 $1,619,011,748 and unrealized gains (losses) consists of:

Gross unrealized gains	$	4,082,576
Gross unrealized losses		(7,567,462	)
Net unrealized losses	$	(3,484,886	)

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

Statement of assets and liabilities—August 31, 2015 Wells Fargo Advantage Ultra Short-Term Income Fund 23

Assets
Investments
In unaffiliated securities, at value (cost $1,454,660,195)	$	1,451,175,309
In affiliated securities, at value (cost $164,351,553)		164,351,553
Total investments, at value (cost $1,619,011,748)		1,615,526,862
Principal paydown receivable		111,524
Receivable for Fund shares sold		2,298,136
Receivable for interest		9,827,444
Receivable for daily variation margin on open futures contracts		229,718
Prepaid expenses and other assets		143,438
Total assets		1,628,137,122
Liabilities
Dividends payable		648,647
Payable for investments purchased		18,060,956
Payable for Fund shares redeemed		5,624,360
Due to custodian bank		7,880
Management fee payable		347,126
Distribution fee payable		4,838
Administration fees payable		147,359
Accrued expenses and other liabilities		192,449
Total liabilities		25,033,615
Total net assets	$	1,603,103,507
NET ASSETS CONSIST OF
Paid-in capital	$	1,695,045,421
Overdistributed net investment income		(648,647	)
Accumulated net realized losses on investments		(89,010,572	)
Net unrealized losses on investments		(2,282,695	)
Total net assets	$	1,603,103,507
COMPUTATION OF NET ASSET VALUE AND OFFERING PRICE PER SHARE1
Net assets – Class A	$	151,561,282
Shares outstanding – Class A1		17,924,049
Net asset value per share – Class A		$8.46
Maximum offering price per share – Class A2		$8.63
Net assets – Class C	$	7,642,010
Shares outstanding – Class C1		904,842
Net asset value per share – Class C		$8.45
Net assets – Administrator Class	$	44,681,503
Shares outstanding – Administrator Class1		5,305,038
Net asset value per share – Administrator Class		$8.42
Net assets – Institutional Class	$	1,137,807,595
Shares outstanding – Institutional Class1		134,619,661
Net asset value per share – Institutional Class		$8.45
Net assets – Investor Class	$	261,411,117
Shares outstanding – Investor Class1		30,904,245
Net asset value per share – Investor Class		$8.46

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 —year ended August 31, 2015

Investment income
Interest	$	23,748,816
Income from affiliated securities		147,021
Securities lending income, net		852
Total investment income		23,896,689
Expenses
Management fee		6,025,414
Administration fees
Class A		281,934
Class C		13,034
Administrator Class		64,722
Institutional Class		994,127
Investor Class		542,499
Shareholder servicing fees
Class A		440,522
Class C		20,366
Administrator Class		160,731
Investor Class		712,761
Distribution fee
Class C		61,098
Custody and accounting fees		102,676
Professional fees		72,422
Registration fees		87,538
Shareholder report expenses		79,006
Trustees’ fees and expenses		9,642
Other fees and expenses		26,896
Total expenses		9,695,388
Less: Fee waivers and/or expense reimbursements		(1,554,203	)
Net expenses		8,141,185
Net investment income		15,755,504
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized losses
Unaffiliated securities		(380,370	)
Futures transactions		(7,843,902	)
Net realized losses on investments		(8,224,272	)
Net change in unrealized gains (losses) on:
Unaffiliated securities		(8,009,349	)
Futures transactions		1,753,036
Net change in unrealized gains (losses) on investments		(6,256,313	)
Net realized and unrealized gains (losses) on investments		(14,480,585	)
Net increase in net assets resulting from operations	$	1,274,919

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

	Year ended August 31, 2015						Year ended August 31, 2014
Operations
Net investment income				$	15,755,504					$	16,905,144
Net realized losses on investments					(8,224,272	)					(3,098,045	)
Net change in unrealized gains (losses) on investments					(6,256,313	)					4,121,513
Net increase in net assets resulting from operations					1,274,919						17,928,612
Distributions to shareholders from
Net investment income
Class A					(1,171,060	)					(1,311,025	)
Class C					(706	)					(4,885	)
Administrator Class					(517,254	)					(1,089,252	)
Institutional Class					(12,114,320	)					(12,933,549	)
Investor Class					(1,827,644	)					(2,280,773	)
Tax basis return of capital
Class A					(158,830	)					0
Class C					(96	)					0
Administrator Class					(70,154	)					0
Institutional Class					(1,643,052	)					0
Investor Class					(247,882	)					0
Total distributions to shareholders					(17,750,998	)					(17,619,484	)
Capital share transactions		Shares						Shares
Proceeds from shares sold
Class A		16,734,640			142,192,104			19,620,269			167,527,734
Class C		246,952			2,095,919			160,363			1,367,745
Administrator Class		2,828,325			23,960,440			13,855,490			117,870,044
Institutional Class		146,858,524			1,247,347,113			200,951,647			1,715,174,083
Investor Class		4,953,813			42,107,482			9,811,002			83,805,971
					1,457,703,058						2,085,745,577
Reinvestment of distributions
Class A		152,627			1,295,814			148,168			1,264,904
Class C		90			764			549			4,687
Administrator Class		53,897			455,869			67,702			575,851
Institutional Class		615,519			5,223,336			590,277			5,037,910
Investor Class		235,018			1,995,430			256,307			2,188,945
					8,971,213						9,072,297
Payment for shares redeemed
Class A		(21,989,454	)		(186,752,566	)		(15,311,490	)		(130,736,274	)
Class C		(407,520	)		(3,458,657	)		(487,060	)		(4,154,932	)
Administrator Class		(11,680,543	)		(98,990,356	)		(16,944,553	)		(144,114,902	)
Institutional Class		(179,151,799	)		(1,521,293,663	)		(152,147,868	)		(1,298,604,917	)
Investor Class		(10,954,296	)		(93,074,087	)		(12,513,153	)		(106,880,999	)
					(1,903,569,329	)					(1,684,492,024	)
Net increase (decrease) in net assets resulting from capital share transactions					(436,895,058	)					410,325,850
Total increase (decrease) in net assets					(453,371,137	)					410,634,978
Net assets
Beginning of period					2,056,474,644						1,645,839,666
End of period				$	1,603,103,507					$	2,056,474,644
Overdistributed net investment income				$	(648,647	)				$	(773,167	)

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)

	Year ended August 31
CLASS A	2015			2014			2013			2012			2011
Net asset value, beginning of period		$8.53			$8.53			$8.55			$8.52			$8.52
Net investment income		0.05			0.06			0.06			0.10			0.10
Net realized and unrealized gains (losses) on investments		(0.06	)		0.00			(0.02	)		0.03			0.02
Total from investment operations		(0.01	)		0.06			0.04			0.13			0.12
Distributions to shareholders from
Net investment income		(0.05	)		(0.06	)		(0.06	)		(0.10	)		(0.12	)
Tax basis return of capital		(0.01	)		0.00			0.00			0.00			0.00
Total from investment operations		(0.06	)		(0.06	)		(0.06	)		(0.10	)		(0.12	)
Net asset value, end of period		$8.46			$8.53			$8.53			$8.55			$8.52
Total return1		(0.07	)%		0.74	%		0.52	%		1.47	%		1.37	%
Ratios to average net assets (annualized)
Gross expenses		0.77	%		0.78	%		0.83	%		0.88	%		0.87	%
Net expenses		0.70	%		0.70	%		0.70	%		0.70	%		0.70	%
Net investment income		0.64	%		0.70	%		0.72	%		1.11	%		1.17	%
Supplemental data
Portfolio turnover rate		70	%		47	%		56	%		61	%		60	%
Net assets, end of period (000s omitted)		$151,561			$196,459			$158,363			$146,400			$160,768

¹  Total return calculations do not include any sales charges.

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)

	Year ended August 31
CLASS C	2015			2014			2013			2012			2011
Net asset value, beginning of period		$8.52			$8.52			$8.55			$8.52			$8.52
Net investment income (loss)		(0.01	)		(0.01	)		(0.00	)1		0.03			0.04
Net realized and unrealized gains (losses) on investments		(0.06	)		0.01			(0.03	)		0.03			0.01
Total from investment operations		(0.07	)		0.00			(0.03	)		0.06			0.05
Distributions to shareholders from
Net investment income		(0.00	)1		(0.00	)1		(0.00	)1		(0.03	)		(0.05	)
Tax basis return of capital		(0.00	)1		0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.00	)1		(0.00	)1		(0.00	)1		(0.03	)		(0.05	)
Net asset value, end of period		$8.45			$8.52			$8.52			$8.55			$8.52
Total return2		(0.81	)%		0.05	%		(0.31	)%		0.71	%		0.61	%
Ratios to average net assets (annualized)
Gross expenses		1.52	%		1.53	%		1.59	%		1.63	%		1.62	%
Net expenses		1.45	%		1.45	%		1.45	%		1.45	%		1.45	%
Net investment income (loss)		(0.10	)%		(0.05	)%		(0.02	)%		0.37	%		0.43	%
Supplemental data
Portfolio turnover rate		70	%		47	%		56	%		61	%		60	%
Net assets, end of period (000s omitted)		$7,642			$9,078			$11,859			$14,951			$19,117

¹  Amount is less than $0.005.

²  Total return calculations do not include any sales charges.

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)

	Year ended August 31
ADMINISTRATOR CLASS	2015			2014			2013			2012			2011
Net asset value, beginning of period		$8.50			$8.50			$8.52			$8.48			$8.48
Net investment income		0.07	1		0.07			0.07			0.11			0.11
Net realized and unrealized gains (losses) on investments		(0.07	)		0.01			(0.01	)		0.04			0.02
Total from investment operations		0.00			0.08			0.06			0.15			0.13
Distributions to shareholders from
Net investment income		(0.07	)		(0.08	)		(0.08	)		(0.11	)		(0.13	)
Tax basis return of capital		(0.01	)		0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.08	)		(0.08	)		(0.08	)		(0.11	)		(0.13	)
Net asset value, end of period		$8.42			$8.50			$8.50			$8.52			$8.48
Total return		(0.04	)%		0.89	%		0.67	%		1.74	%		1.52	%
Ratios to average net assets (annualized)
Gross expenses		0.71	%		0.72	%		0.77	%		0.82	%		0.79	%
Net expenses		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%
Net investment income		0.81	%		0.84	%		0.87	%		1.26	%		1.33	%
Supplemental data
Portfolio turnover rate		70	%		47	%		56	%		61	%		60	%
Net assets, end of period (000s omitted)		$44,682			$119,884			$145,498			$103,810			$107,449

¹  Calculated based upon average shares outstanding

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)

	Year ended August 31
INSTITUTIONAL CLASS	2015			2014			2013			2012			2011
Net asset value, beginning of period		$8.53			$8.52			$8.55			$8.51			$8.51
Net investment income		0.08			0.09			0.09			0.13			0.13
Net realized and unrealized gains (losses) on investments		(0.07	)		0.01			(0.03	)		0.04			0.02
Total from investment operations		0.01			0.10			0.06			0.17			0.15
Distributions to shareholders from
Net investment income		(0.08	)		(0.09	)		(0.09	)		(0.13	)		(0.15	)
Tax basis return of capital		(0.01	)		0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.09	)		(0.09	)		(0.09	)		(0.13	)		(0.15	)
Net asset value, end of period		$8.45			$8.53			$8.52			$8.55			$8.51
Total return		0.16	%		1.21	%		0.75	%		1.94	%		1.72	%
Ratios to average net assets (annualized)
Gross expenses		0.44	%		0.45	%		0.50	%		0.55	%		0.54	%
Net expenses		0.35	%		0.35	%		0.35	%		0.35	%		0.35	%
Net investment income		0.99	%		1.05	%		1.07	%		1.46	%		1.50	%
Supplemental data
Portfolio turnover rate		70	%		47	%		56	%		61	%		60	%
Net assets, end of period (000s omitted)		$1,137,808			$1,418,101			$996,437			$588,228			$596,838

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)

	Year ended August 31
INVESTOR CLASS	2015			2014			2013			2012			2011
Net asset value, beginning of period		$8.53			$8.53			$8.56			$8.52			$8.52
Net investment income		0.05			0.06			0.06			0.09			0.10
Net realized and unrealized gains (losses) on investments		(0.06	)		0.00			(0.03	)		0.04			0.01
Total from investment operations		(0.01	)		0.06			0.03			0.13			0.11
Distributions to shareholders from
Net investment income		(0.05	)		(0.06	)		(0.06	)		(0.09	)		(0.11	)
Tax basis return of capital		(0.01	)		0.00			0.00			0.00			0.00
Total distributions to shareholders		(0.06	)		(0.06	)		(0.06	)		(0.09	)		(0.11	)
Net asset value, end of period		$8.46			$8.53			$8.53			$8.56			$8.52
Total return		(0.10	)%		0.71	%		0.37	%		1.56	%		1.34	%
Ratios to average net assets (annualized)
Gross expenses		0.80	%		0.81	%		0.87	%		0.91	%		0.90	%
Net expenses		0.73	%		0.73	%		0.73	%		0.73	%		0.73	%
Net investment income		0.62	%		0.67	%		0.69	%		1.08	%		1.15	%
Supplemental data
Portfolio turnover rate		70	%		47	%		56	%		61	%		60	%
Net assets, end of period (000s omitted)		$261,411			$312,953			$333,684			$351,969			$384,998

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

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

Debt securities are valued at the evaluated bid price provided by an independent pricing service or, if a reliable price is not available, the quoted bid price from an independent broker-dealer.

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. Interests in non-registered investment vehicles that are redeemable at net asset value are fair valued at net asset value when available.

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 manager 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 by the borrower, the Fund may be prevented from recovering the loaned securities or gaining access to the collateral or

32 Wells Fargo Advantage Ultra Short-Term Income Fund Notes to financial statements

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 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 is 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 Wells Fargo Advantage Ultra Short-Term Income Fund 33

Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under federal income tax regulations. U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The primary permanent difference causing such reclassifications is due to expiration of capital loss carryforwards. At August 31, 2015, as a result of permanent book-to-tax differences, the following reclassification adjustments were made on the Statement of Assets and Liabilities:

Paid-in capital	Accumulated net realized losses on investments
$(2,154,408)	$2,154,408

As of August 31, 2015, capital loss carryforwards available to offset future net realized capital gains were as follows through the indicated expiration dates:

				No expiration
2016	2017	2018	2019	Short-term	Long-term
$8,848,032	$35,029,445	$7,738,751	$7,448,920	$1,790,107	$21,927,737

As of August 31, 2015, the Fund had current year deferred post-October capital losses consisting of $2,136,415 in short-term losses and $2,888,974 in long-term losses which will be recognized on the first day of the following 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. Class specific expenses are charged directly to that share class. Investment income, common expenses, and realized and unrealized gains (losses) on investments are allocated daily to each class of shares based on the relative proportion of net assets of each class.

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.

34 Wells Fargo Advantage Ultra Short-Term Income Fund Notes to financial statements

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities as of August 31, 2015:

	Quoted prices (Level 1)		Other significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Assets
Investments in:
Agency securities	$	0	$	206,030,326	$	0	$	206,030,326
Asset-backed securities		0		215,494,893		0		215,494,893
Corporate bonds and notes		0		613,217,270		0		613,217,270
Municipal obligations		0		55,421,037		0		55,421,037
Non-agency mortgage-backed securities		0		182,213,762		0		182,213,762
Yankee corporate bonds and notes		0		176,848,023		0		176,848,023
Short-term investments
Investment companies		164,351,553		0		0		164,351,553
U.S. Treasury securities		1,949,998		0		0		1,949,998
		166,301,551		1,449,225,311		0		1,615,526,862
Futures contracts		229,718		0		0		229,718
Total assets	$	166,531,269	$	1,449,225,311	$	0	$	1,615,756,580

Futures contracts are reported at their variation margin at measurement date, which represents the amount due to the Fund at that date. All other assets and liabilities are reported at their market value at measurement date.

The Fund recognizes transfers between levels within the fair value hierarchy at the end of the reporting period. At August 31, 2015, the Fund did not have any transfers into/out of Level 1, Level 2, or Level 3.

4. TRANSACTIONS WITH AFFILIATES

Management fee

Funds Management, an indirect wholly owned subsidiary of Wells Fargo & Company (“Wells Fargo”), is the manager of the Fund and provides advisory and fund-level administrative services under an investment management agreement. Under the investment management agreement, Funds Management is responsible for, among other services, implementing the investment objectives and strategies of the Fund, supervising the applicable subadviser, providing fund-level administrative services in connection with the Fund’s operations, and providing any other fund-level administrative services reasonably necessary for the operation of the Fund. As compensation for its services under the investment management agreement, Funds Management is entitled to receive an annual management fee starting at 0.35% and declining to 0.255% as the average daily net assets of the Fund increase.

Prior to July 1, 2015, Funds Management provided advisory services pursuant to an investment advisory agreement and was entitled to receive an annual fee which started at 0.30% and declined to 0.225% as the average daily net assets of the Fund increased. In addition, fund-level administrative services were provided by Funds Management under a separate administration agreement at an annual fee which started at 0.05% and declined to 0.03% as the average daily net assets of the Fund increased. For financial statement purposes, the advisory fee and fund-level administration fee for the year ended August 31, 2015 have been included in management fee on the Statement of Operations.

For the year ended August 31, 2015, the management fee was equivalent to an annual rate of 0.34% 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.

Notes to financial statements Wells Fargo Advantage Ultra Short-Term Income Fund 35

Administration fees

Under a class-level administration agreement, Funds Management provides class-level administrative services to the Fund, which includes paying fees and expenses for services provided by the transfer agent, sub-transfer agents, omnibus account servicers and record-keepers. As compensation for its services under the class-level administration agreement, Funds Management receives an annual 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 management 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, 2015 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 Class Administrator Class shares, 0.35% for Class Institutional Class shares, and 0.73% for Investor Class shares. After this time, the cap may be increased or the commitment to maintain the cap may be terminated only with the approval of the Board of Trustees.

Distribution fee

The Trust has adopted a distribution plan for Class C shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. A distribution fee is charged to Class C shares and paid to Wells Fargo Funds Distributor, LLC (“Funds Distributor”), the principal underwriter, at an annual rate of 0.75% of the average daily net assets of Class C shares.

In addition, Funds Distributor is entitled to receive the front-end sales charge from the purchase of Class A shares and a contingent deferred sales charge on the redemption of certain Class A shares. Funds Distributor is also entitled to receive the contingent deferred sales charges from redemptions of Class C shares. For the year ended August 31, 2015, Funds Distributor received $1,581 from the sale of Class A shares.

Shareholder servicing fees

The Trust has entered into contracts with one or more shareholder servicing agents, whereby Class A, Class C, Administrator Class, and Investor Class of the Fund is charged a fee at an annual rate of 0.25% of the average daily net assets of each respective class.

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

5. INVESTMENT PORTFOLIO TRANSACTIONS

Purchases and sales of investments, excluding short-term securities, for the year ended August 31, 2015 were as follows:

Purchases at cost		Sales proceeds
U.S. government	Non-U.S. government	U.S. government	Non-U.S. government
$257,941,664	$944,864,955	$226,682,632	$927,952,363

6. DERIVATIVE TRANSACTIONS

During the year ended August 31, 2015, the Fund entered into futures contracts to speculate on interest rates and to help manage the duration of the portfolio.

At August 31, 2015, the Fund had short futures contracts outstanding as follows:

Expiration date	Counterparty	Contracts		Type		Contract value at August 31, 2015		Unrealized gains
12-31-2015	JPMorgan		1,979 Short		2-Year U.S. Treasury Notes	$	432,349,656	$	1,202,191

36 Wells Fargo Advantage Ultra Short-Term Income Fund Notes to financial statements

The Fund had an average notional amount of $3,563,078 in long and $538,772,020 in short futures contracts during the year ended August 31, 2015.

On August 31, 2015, the cumulative unrealized gains on futures contracts in the amount of $1,202,191 are reflected in net unrealized losses on investments on the Statement of Assets and Liabilities. The receivable for daily variation margin on open futures contracts reflected in the Statement of Assets and Liabilities only represents the current day’s variation margin. The realized 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 derivatives. Cash collateral that has been pledged to cover obligations of the Fund under ISDA Master Agreements or similar agreements, 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 of assets
Futures – variation margin	JPMorgan	$229,718	$	0	$	0	$	229,718

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, 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 year ended August 31, 2015, the Fund paid $ 2,024 in commitment fees.

For the year ended August 31, 2015, there were no borrowings by the Fund under the agreement.

8. DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the years ended August 31, 2015 and August 31, 2014, were as follows:

	Year ended August 31
	2015		2014
Ordinary income	$	15,630,984	$	17,619,484
Tax basis return of capital		2,120,014		0

As of August 31, 2015, the components of distributable earnings on a tax basis were as follows:

Unrealized losses	Post-October capital losses deferred	Capital loss carryforward
$(3,484,886)	$(5,025,389)	$(82,782,992)

Notes to financial statements Wells Fargo Advantage Ultra Short-Term Income Fund 37

9. INDEMNIFICATION

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

38 Wells Fargo Advantage Ultra Short-Term Income Fund Report of independent registered public accounting firm

BOARD OF TRUSTEES AND SHAREHOLDERS OF WELLS FARGO FUNDS TRUST:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the Wells Fargo Advantage Ultra Short-Term Income Fund (the “Fund”), one of the funds constituting the Wells Fargo Funds Trust, as of August 31, 2015, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of August 31, 2015, by correspondence with the custodian and brokers, or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Wells Fargo Advantage Ultra Short-Term Income Fund as of August 31, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

October 26, 2015

Other information (unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 39

TAX INFORMATION

For the fiscal year ended August 31, 2015, $13,418,963 has been designated as interest-related dividends for nonresident alien shareholders pursuant to Section 871 of the Internal Revenue Code.

PROXY VOTING INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, upon request, by calling 1-800-222-8222, visiting our website at 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 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 monthly on the Fund’s website (wellsfargoadvantagefunds.com), on a one-month delayed basis. In addition, top ten holdings information (excluding derivative positions) 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 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.

40 Wells Fargo Advantage Ultra Short-Term Income Fund Other information (unaudited)

BOARD OF TRUSTEES AND OFFICERS

Each of the Trustees and Officers¹ listed in the table below acts in identical capacities for each fund in the Wells Fargo Advantage family of funds, which consists of 133 mutual funds 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. 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 or longer	Other public company or investment company directorships during past 5 years
William R. Ebsworth (Born 1957)	Trustee, since 2015**	Retired. From 1984 to 2013, equities analyst, portfolio manager, research director at Fidelity Management and Research Company and retired in 2013 as Chief Investment Officer of Fidelity Strategic Advisers, Inc. in Boston, Tokyo, and Hong Kong where he led a team of investment professionals managing client assets. Prior thereto, Board member of Hong Kong Securities Clearing Co., Hong Kong Options Clearing Corp., the Thailand International Fund, Ltd., Fidelity Investments Life Insurance Company, and Empire Fidelity Investments Life Insurance Company. Mr. Ebsworth is a CFA ® charterholder and an Adjunct Lecturer, Finance, at Babson College.	Asset Allocation Trust
Jane A. Freeman (Born 1953)	Trustee, since 2015**	Retired. From 2012 to 2014 and 1999 to 2008, Chief Financial Officer of Scientific Learning Corporation. From 2008 to 2012, Ms. Freeman provided consulting services related to strategic business projects. Prior to 1999, Portfolio Manager at Rockefeller & Co. and Scudder, Stevens & Clark. Board member of the Harding Loevner Funds from 1996 to 2014, serving as both Lead Independent Director and chair of the Audit Committee. Board member of the Russell Exchange Traded Funds Trust from 2011 to 2012 and the chair of the Audit Committee. Ms. Freeman is Chair of Taproot Foundation (non-profit organization) (non-profit organization), a Board Member of Ruth Bancroft Garden (non-profit organization) and an inactive chartered financial analyst.	Asset Allocation Trust; Harding Loevner Funds; Russell Exchange Traded Funds Trust
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. Chairman of the Board of CIGNA Corporation since 2009, and Director since 2005. From 2003 to 2011, Director of Deluxe Corporation. Prior thereto, President and CEO of BellSouth Advertising and Publishing Corp. from 2005 to 2007, President and CEO of BellSouth Enterprises from 2004 to 2005 and President of BellSouth Consumer Services from 2000 to 2003. Emeritus member of the Iowa State University Foundation Board of Governors. Emeritus Member of the Advisory Board of Iowa State University School of Business. Advisory Board Member, Palm Harbor Academy (charter school). Mr. Harris is a certified public accountant.	CIGNA 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
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

Other information (unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 41

Name and year of birth	Position held and length of service*	Principal occupations during past five years or longer	Other public company or investment company directorships during past 5 years
Timothy J. Penny (Born 1951)	Trustee, since 1996	President and Chief Executive Officer of Southern Minnesota Initiative Foundation, a non-profit organization, since 2007 and Senior Fellow at the Humphrey Institute Policy Forum at the University of Minnesota since 1995. Member of the Board of Trustees of NorthStar Education Finance, Inc., a non-profit organization, since 2007.	Asset Allocation Trust
Michael S. Scofield (Born 1943)	Trustee, since 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 complex (and its predecessors) from 1984 to 2010. Chairman of the Evergreen Funds from 2000-2010. Former Trustee of the Mentor Funds. Retired Attorney, Law Offices of Michael S. Scofield.	Asset Allocation Trust
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.

** William R. Ebsworth and Jane A. Freeman each became a Trustee effective January 1, 2015.

Officers

Name and year of birth	Position held and length of service	Principal occupations during past five years or longer
Karla M. Rabusch (Born 1959)	President, since 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.
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. Assistant General Counsel of Wells Fargo Bank, N.A. since 2013 and Vice President and Managing Counsel of Wells Fargo Bank N.A. from 1996 to 2013.
Debra Ann Early (Born 1964)	Chief Compliance Officer, since 2007	Executive Vice President of Wells Fargo Funds Management, LLC since 2014, Senior Vice President and Chief Compliance Officer from 2007 to 2014.
David Berardi (Born 1975)	Assistant Treasurer, since 2009	Vice President of Wells Fargo Funds Management, LLC since 2009. Vice President of Evergreen Investment Management Company, LLC from 2008 to 2010. Manager of Fund Reporting and Control for Evergreen Investment Management Company, LLC from 2004 to 2010.
Jeremy DePalma1 (Born 1974)	Assistant Treasurer, since 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 and head of the Fund Reporting and Control Team within Fund Administration from 2005 to 2010.

¹ Nancy Wiser acts as Treasurer of 72 funds in the Fund Complex. Jeremy DePalma acts as Treasurer of 61 funds and Assistant Treasurer of 72 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.

42 Wells Fargo Advantage Ultra Short-Term Income Fund Other information (unaudited)

BOARD CONSIDERATION OF INVESTMENT ADVISORY, INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS:

Under the Investment Company Act of 1940 (the “1940 Act”), the Board of Trustees (the “Board”) of Wells Fargo Funds Trust (the “Trust”) must determine annually whether to approve the continuation of the Trust’s investment advisory and sub-advisory agreements. In this regard, at an in-person meeting held on May 19-20, 2015 (the “Meeting”), the Board, all the members of which have no direct or indirect interest in the investment advisory and sub-advisory agreements and are not “interested persons” of the Trust, as defined in the 1940 Act (the “Independent Trustees”), reviewed and approved for Wells Fargo Advantage Ultra Short Term Income Fund (the “Fund”): (i) an investment advisory agreement (the “Advisory Agreement”) with Wells Fargo Funds Management, LLC (“Funds Management”); (ii) an investment management agreement (the “Management Agreement”) with Funds Management; and (iii) an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with Wells Capital Management Incorporated (the “Sub-Adviser”), an affiliate of Funds Management. The Management Agreement combines the terms of the Advisory Agreement with the terms of the Fund’s Amended and Restated Administration Agreement (the “Administration Agreement”) applicable to Fund-level administrative services. The Advisory Agreement, the Management Agreement and the Sub-Advisory Agreement are collectively referred to as the “Advisory Agreements.”

At the Meeting, the Board considered the factors and reached the conclusions described below relating to the selection of Funds Management and the Sub-Adviser and the approval of the Advisory Agreements. Prior to the Meeting, including at an in-person meeting in March 2015, the Trustees conferred extensively among themselves and with representatives of Funds Management about these matters. Also, the Board has adopted a team-based approach, with each team consisting of a sub-set of Trustees, to assist the full Board in the discharge of its duties in reviewing performance and other matters throughout the year. The Independent Trustees were assisted in their evaluation of the Advisory Agreements by independent legal counsel, from whom they received separate legal advice and with whom they met separately.

In providing information to the Board, Funds Management and the Sub-Adviser were guided by a detailed set of requests for information submitted to them by independent legal counsel on behalf of the Independent Trustees at the start of the Board’s annual contract renewal process earlier in 2015. In considering and approving the Advisory Agreements, the Trustees considered the information they believed relevant, including but not limited to the information discussed below. The Board considered not only the specific information presented in connection with the Meeting, but also the knowledge gained over time through interaction with Funds Management and the Sub-Adviser about various topics. In this regard, the Board reviewed reports of Funds Management at each of its quarterly meetings, which included, among other things, portfolio reviews and performance reports. In addition, the Board and the teams mentioned above confer with portfolio managers at various times throughout the year. The Board did not identify any particular information or consideration that was all-important or controlling, and each individual Trustee may have attributed different weights to various factors.

After its deliberations, the Board unanimously approved the continuation of the Advisory Agreement for the period from June 1, 2015 through June 30, 2015, approved the Management Agreement for the period from July 1, 2015 through May 31, 2016, and approved the continuation of the Sub-Advisory Agreement for a one-year term through May 31, 2016. The Board also determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable. The Board considered the approval of the Advisory Agreements for the Fund as part of its consideration of agreements for funds across the complex, but its approvals were made on a fund-by-fund basis. The following summarizes a number of important, but not necessarily all, factors considered by the Board in support of its approvals.

Nature, extent and quality of services

The Board received and considered various information regarding the nature, extent and quality of services provided to the Fund by Funds Management and the Sub-Adviser under the Advisory Agreements. This information included, among other things, a summary of the background and experience of senior management of Funds Management, and the qualifications, background, tenure and responsibilities of each of the portfolio managers primarily responsible for the day-to-day portfolio management of the Fund. The Board noted that the services to be provided to the Fund pursuant to the Management Agreement combined the advisory services previously provided to the Fund pursuant to the Fund’s Advisory Agreement with the Fund-level administrative services previously provided to the Fund pursuant to the Fund’s Administration Agreement. The Board received a representation from Funds Management that combining these services would not result in any change to the nature or level of services provided by Funds Management to the Fund.

The Board evaluated the ability of Funds Management and the Sub-Adviser to attract and retain qualified investment professionals, including research, advisory and supervisory personnel. The Board further considered the compliance

Other information (unaudited) Wells Fargo Advantage Ultra Short-Term Income Fund 43

programs and compliance records of Funds Management and the Sub-Adviser. In addition, the Board took into account the full range of services provided to the Fund by Funds Management and its affiliates.

Fund performance and expenses

The Board considered the performance results for the Fund over various time periods ended March 31, 2015. The Board considered these results in comparison to the performance of funds in a universe that was determined by Lipper Inc. (“Lipper”) to be similar to the Fund (the “Universe”), and in comparison to the Fund’s benchmark index and to other comparative data. Lipper is an independent provider of investment company data. The Board received a description of the methodology used by Lipper to select the mutual funds in the performance Universe. The Board noted that the performance of the Fund (Administrator Class) was higher than or in range of the average performance of the Universe for all periods under review except the one-year period. The Board also noted that the performance of the Fund was higher than or equal to its benchmark, the Barclays Short-Term Government/Corporate Index, for all periods under review.

The Board also received and considered information regarding the Fund’s net operating expense ratios and their various components, including actual management fees (which reflect fee waivers, if any, and include advisory, administration and transfer agent fees), custodian and other non-management fees, and Rule 12b-1 and non-Rule 12b-1 service fees. The Board considered these ratios in comparison to the median ratios of funds in class-specific expense groups that were determined by Lipper to be similar to the Fund (the “Groups”). The Board received a description of the methodology used by Lipper to select the mutual funds in the expense Groups and an explanation of how funds comprising expense groups and their expense ratios may vary from year-to-year. Based on the Lipper reports, the Board noted that the net operating expense ratios of the Fund were lower than, equal to or in range of the median net operating expense ratios of the expense Groups.

The Board took into account the Fund performance and expense information provided to it among the factors considered in deciding to re-approve the Advisory Agreement and Sub-Advisory Agreement and approve the Management Agreement.

Investment advisory and sub-advisory fee rates

The Board reviewed and considered the contractual investment advisory fee rates that are payable by the Fund to Funds Management for investment advisory services (the “Advisory Agreement Rates”), both on a stand-alone basis and on a combined basis with the Fund’s fund-level and class-level contractual administration fee rates (the “Management Rates”). The Board noted that the Management Rates include transfer agency and sub-transfer agency costs. The Board also noted that the fee rate to be paid by the Fund under the Management Agreement will incorporate the advisory fee and Fund-level administration fee previously payable separately by the Fund under the Fund’s Advisory Agreement and Administration Agreement with Funds Management. The Board also reviewed and considered the contractual investment sub-advisory fee rates that are payable by Funds Management to the Sub-Adviser for investment sub-advisory services (the “Sub-Advisory Agreement Rates”).

Among other information reviewed by the Board was a comparison of the Management Rates of the Fund with those of other funds in the expense Groups at a common asset level. The Board noted that the Management Rates of the Fund were in range of the average rates for the Fund’s expense Groups for all share classes.

The Board also received and considered information about the portion of the total advisory fee that was retained by Funds Management after payment of the fee to the Sub-Adviser for sub-advisory services. In assessing the reasonableness of this amount, the Board received and evaluated information about the nature and extent of responsibilities retained and risks assumed by Funds Management and not delegated to or assumed by the Sub-Adviser, and about Funds Management’s on-going oversight services. However, given the affiliation between Funds Management and the Sub-Adviser, the Board ascribed limited relevance to the allocation of the advisory fee between them.

The Board also received and considered information about the nature and extent of services offered and fee rates charged by Funds Management and the Sub-Adviser to other types of clients with investment strategies similar to those of the Fund. In this regard, the Board received information about the significantly greater scope of services, and compliance, reporting and other legal burdens and risks of managing mutual funds compared with those associated with managing assets of non-mutual fund clients such as collective funds or institutional separate accounts.

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board determined that the compensation payable to Funds Management under the Management Agreement and Advisory Agreement and to the Sub-Adviser under the Sub-Advisory Agreement was reasonable, in light of the services covered by the Advisory Agreements.

44 Wells Fargo Advantage Ultra Short-Term Income Fund Other information (unaudited)

Profitability

The Board received and considered information concerning the profitability of Funds Management, as well as the profitability of Wells Fargo as a whole, from providing services to the Fund and the fund family as a whole. The Board also received and considered information concerning the profitability of the Sub-Adviser from providing services to the fund family as a whole, noting that the Sub-Adviser’s profitability information with respect to providing services to the Fund was subsumed in the Wells Fargo profitability analysis.

Funds Management reported on the methodologies and estimates used in calculating profitability. Among other things, the Board noted that the levels of profitability reported on a fund-by-fund basis varied widely, depending on factors such as the size and type of fund. Based on its review, the Board did not deem the profits reported by Funds Management or Wells Fargo from its services to the Fund to be at a level that would prevent it from approving the continuation of the Advisory Agreements.

Economies of scale

With respect to possible economies of scale, the Board noted the existence of breakpoints in the Fund’s advisory and management fee structures, and the Fund’s administration fee structure, which operate generally to reduce the Fund’s expense ratios as the Fund grows in size. It considered that, for a small fund or a fund that shrinks in size, breakpoints conversely can result in higher fee levels. The Board also considered that fee waiver and expense reimbursement arrangements and competitive fee rates at the outset are means of sharing potential economies of scale with shareholders of the Fund and the fund family as a whole. The Board considered Funds Management’s view that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments that Funds Management incurs across the fund family as a whole.

The Board concluded that the Fund’s fee and expense arrangements, including contractual breakpoints, constituted a reasonable approach to sharing potential economies of scale with the Fund and its shareholders.

Other benefits to Funds Management and the Sub-Adviser

The Board received and considered information regarding potential “fall-out” or ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, as a result of their relationships with the Fund. Ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in Funds Management’s and the Sub-Adviser’s business as a result of their relationships with the Fund. The Board noted that various affiliates of Funds Management may receive distribution-related fees, shareholder servicing payments and sub-transfer agency fees in respect of shares sold or held through them and services provided.

The Board also reviewed information about soft dollar credits earned and utilized by the Sub-Adviser, fees earned by Funds Management and the Sub-Adviser from managing a private investment vehicle for the fund family’s securities lending collateral and commissions earned by an affiliated broker from portfolio transactions.

Based on its consideration of the factors and information it deemed relevant, including those described here, the Board did not find that any ancillary benefits received by Funds Management and its affiliates, including the Sub-Adviser, were unreasonable.

Conclusion

At the Meeting, after considering the above-described factors and based on its deliberations and its evaluation of the information described above, the Board unanimously approved the continuation of the Advisory Agreement for the period from June 1, 2015 through June 30, 2015, approved the Management Agreement for the period from July 1, 2015 through May 31, 2016, and approved the continuation of the Sub-Advisory Agreement for a one-year term through May 31, 2016. The Board also determined that the compensation payable to Funds Management and the Sub-Adviser under each of the Advisory Agreements was reasonable.

List of abbreviations Wells Fargo Advantage Ultra Short-Term Income Fund 45

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 —  Colombian 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

LIFER —  Long Inverse Floating Exempt Receipts

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

SDR —  Swedish depositary receipt

SEK —  Swedish krona

SFHR —  Single-family housing revenue

SFMR —  Single-family mortgage revenue

SGD —  Singapore dollar

SPA —  Standby purchase agreement

SPDR —  Standard & Poor’s Depositary Receipts

SPEAR —   Short Puttable Exempt Adjustable 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. Before investing, please consider the investment objectives, risks, charges, and expenses of the investment. For a current prospectus and, if available, a summary prospectus, containing this information, call 1-800-222-8222 or visit the Fund’s website at wellsfargoadvantagefunds.com. 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, an affiliate of Wells Fargo & Company.

NOT FDIC INSURED  ¡  NO BANK GUARANTEE  ¡   MAY LOSE VALUE

© 2015 Wells Fargo Funds Management, LLC. All rights reserved.

236809 10-15 A223/AR223 08-15

ITEM 2. CODE OF ETHICS

(a) As of the end of the period covered by the report, Wells Fargo Funds Trust has adopted a code of ethics that applies to its President and Treasurer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.

(c) During the period covered by this report, there were no amendments to the provisions of the code of ethics adopted in Item 2(a) above.

(d) During the period covered by this report, there were no implicit or explicit waivers to the provisions of the code of ethics adopted in Item 2(a) above.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT

The Board of Trustees of Wells Fargo Funds Trust has determined that Judith Johnson is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mrs. Johnson is independent for purposes of Item 3 of Form N-CSR.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES

(a), (b), (c), (d) The following table presents aggregate fees billed in each of the last two fiscal years for services rendered to the Registrant by the Registrant’s principal accountant. These fees were billed to the registrant and were approved by the Registrant’s audit committee.

	Fiscal year ended August 31, 2015		Fiscal year ended August 31, 2014
Audit fees	$	428,240	$	428,240
Audit-related fees		—		—
Tax fees (1)		41,050		48,000
All other fees		—		—
	$	469,290	$	476,240

(1) Tax fees consist of fees for tax compliance, tax advice, tax planning and excise tax.

(e) The Chairman of the Audit Committees is authorized to pre-approve: (1) audit services for the mutual funds of Wells Fargo Funds Trust; (2) non-audit tax or compliance consulting or training services provided to the Funds by the independent auditors (“Auditors”) if the fees for any particular engagement are not anticipated to exceed $50,000; and (3) non-audit tax or compliance consulting or training services provided by the Auditors to a Fund’s investment adviser and its controlling entities (where pre-approval is required because the engagement relates directly to the operations and financial reporting of the Fund) if the fee to the Auditors for any particular engagement is not anticipated to exceed $50,000. For any such pre-approval sought from the Chairman, Management shall prepare a brief description of the proposed services. If the Chairman approves of such service, he or she shall sign the statement prepared by Management. Such written statement shall be presented to the full Committees at their next regularly scheduled meetings.

(f) Not applicable

(g) Not applicable

(h) Not applicable

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS

Not applicable.

ITEM 6. INVESTMENTS

Wells Fargo Advantage Adjustable Rate Government Fund and Wells Fargo Advantage Government Securities Fund included a Summary Portfolio of Investments under Item 1. A Portfolio of Investments for each of Wells Fargo Advantage Adjustable Rate Government Fund and Wells Fargo Advantage Government Securities Fund is filed under this Item.

Portfolio of investments—August 31, 2015 Wells Fargo Advantage Adjustable Rate Government Fund 1  ��

Security name	Interest rate			Maturity date			Principal		Value
Agency Securities: 93.87%
FDIC Series 2010-S2 Class 3A 144A±		0.90	%		12-29-2045		$	1,262,221	$	1,265,279
Federal Agricultural Mortgage Corporation Series 2000-A Class A ±		38.26			12-15-2039			142,871		143,578
FHLMC ±		0.93			4-1-2030			127,319		129,240
FHLMC ±		1.47			3-15-2024			910,858		916,915
FHLMC ±		1.79			2-1-2037			16,184		16,994
FHLMC ±		1.88			12-1-2017			8,049		8,130
FHLMC ±		1.88			5-1-2018			689		691
FHLMC ±		1.88			6-1-2018			7,614		7,671
FHLMC ±		1.88			9-1-2018			1,275		1,299
FHLMC ±		1.88			5-1-2019			5,829		5,840
FHLMC ±		1.93			9-1-2016			1,877		1,905
FHLMC ±		1.93			11-1-2016			39,338		39,799
FHLMC ±		1.93			7-1-2018			1,647		1,703
FHLMC ±		1.93			1-1-2019			5,765		5,821
FHLMC ±		1.93			2-1-2019			10,076		10,145
FHLMC ±		1.93			2-1-2035			387,434		405,221
FHLMC ±		1.94			1-1-2030			6,646		6,841
FHLMC ±		1.94			1-1-2030			8,084		8,185
FHLMC ±		1.94			7-1-2030			185,261		193,350
FHLMC ±		1.94			2-1-2037			600,028		626,038
FHLMC ±		2.02			7-1-2034			11,303,596		11,963,007
FHLMC ±		2.04			5-1-2028			309,534		325,117
FHLMC ±		2.07			1-1-2037			2,986,013		3,146,086
FHLMC ±		2.07			6-1-2037			1,218,968		1,286,279
FHLMC ±		2.09			10-1-2030			14,954		15,601
FHLMC ±		2.11			6-1-2024			10,166		10,211
FHLMC ±		2.11			6-1-2020			83,060		85,489
FHLMC ±		2.11			11-1-2034			888,800		943,213
FHLMC ±		2.12			3-1-2018			9,529		9,753
FHLMC ±		2.12			5-1-2035	��		1,081,844		1,150,961
FHLMC ±		2.13			1-1-2023			48,586		51,804
FHLMC ±		2.14			6-1-2020			1,660		1,667
FHLMC ±		2.14			5-1-2020			713		716
FHLMC ±		2.17			3-1-2025			117,645		123,752
FHLMC ±		2.18			8-1-2018			2,051		2,091
FHLMC ±		2.19			5-1-2020			529		543
FHLMC ±		2.21			6-1-2035			3,891,658		4,117,570
FHLMC ±		2.22			8-1-2035			400,935		414,798
FHLMC ±		2.23			11-1-2030			813,356		835,324
FHLMC ±		2.24			7-1-2030			22,333		22,585
FHLMC ±		2.25			1-1-2030			25,686		26,822
FHLMC ±		2.25			1-1-2035			575,765		612,122
FHLMC ±		2.25			8-1-2036			3,922,757		4,161,995
FHLMC ±		2.27			12-1-2035			916,828		971,056
FHLMC ±		2.27			12-1-2036			1,011,015		1,079,331
FHLMC ±		2.27			8-1-2033			2,466,809		2,618,816
FHLMC ±		2.28			1-1-2024			9,604		9,645
FHLMC ±		2.28			11-1-2035			683,182		728,513
FHLMC ±		2.29			10-1-2037			1,750,356		1,857,441
FHLMC ±		2.30			8-1-2034			1,738,614		1,844,866

2 Wells Fargo Advantage Adjustable Rate Government Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC ±		2.31	%		7-1-2017	$	14,500	$	14,567
FHLMC ±		2.31			1-1-2022		20,045		20,601
FHLMC ±		2.31			7-1-2024		46,850		47,093
FHLMC ±		2.31			6-1-2036		3,907,587		4,163,903
FHLMC ±		2.33			10-1-2018		12,333		12,400
FHLMC ±		2.34			6-1-2036		1,499,600		1,598,785
FHLMC ±		2.34			12-1-2033		1,311,936		1,400,381
FHLMC ±		2.34			10-1-2033		1,319,607		1,408,382
FHLMC ±		2.34			10-1-2033		2,494,940		2,657,279
FHLMC ±		2.34			10-1-2033		582,932		619,940
FHLMC ±		2.35			10-1-2035		3,402,845		3,624,730
FHLMC ±		2.35			6-1-2033		657,827		694,384
FHLMC ±		2.35			2-1-2034		1,287,652		1,371,478
FHLMC ±		2.35			1-1-2033		1,110,526		1,182,684
FHLMC ±		2.36			2-1-2034		1,145,980		1,221,181
FHLMC ±		2.36			12-1-2034		841,641		897,416
FHLMC ±		2.36			5-1-2037		3,920,628		4,204,136
FHLMC ±		2.37			8-1-2036		4,091,276		4,357,824
FHLMC ±		2.37			12-1-2035		4,049,042		4,323,780
FHLMC ±		2.37			1-1-2036		2,843,416		3,035,380
FHLMC ±		2.37			12-1-2017		1,655		1,660
FHLMC ±		2.38			10-1-2034		2,997,381		3,199,866
FHLMC ±		2.38			4-1-2035		560,578		601,291
FHLMC ±		2.38			1-1-2037		397,457		424,874
FHLMC ±		2.38			5-1-2034		156,097		166,287
FHLMC ±		2.38			2-1-2036		2,145,622		2,293,976
FHLMC ±		2.38			7-1-2019		1,453		1,460
FHLMC ±		2.38			4-1-2036		1,013,307		1,082,143
FHLMC ±		2.39			9-1-2033		426,419		454,027
FHLMC ±		2.39			7-1-2034		257,775		274,689
FHLMC ±		2.39			9-1-2034		5,750,029		6,124,814
FHLMC ±		2.39			12-1-2035		3,458,840		3,684,239
FHLMC ±		2.39			4-1-2035		3,999,727		4,284,419
FHLMC ±		2.40			7-1-2036		686,752		726,331
FHLMC ±		2.40			1-1-2037		2,222,751		2,368,845
FHLMC ±		2.40			11-1-2022		304,642		319,660
FHLMC ±		2.40			5-1-2025		98,425		100,579
FHLMC ±		2.40			4-1-2023		385,429		392,633
FHLMC ±		2.40			11-1-2035		1,952,431		2,086,146
FHLMC ±		2.41			1-1-2035		612,828		654,593
FHLMC ±		2.41			3-1-2037		2,637,198		2,812,473
FHLMC ±		2.41			5-1-2039		2,506,012		2,688,420
FHLMC ±		2.41			11-1-2036		1,887,342		2,011,534
FHLMC ±		2.41			1-1-2034		1,354,322		1,440,815
FHLMC ±		2.41			2-1-2036		2,206,127		2,353,185
FHLMC ±		2.42			4-1-2034		4,451,160		4,742,912
FHLMC ±		2.42			2-1-2037		723,943		773,906
FHLMC ±		2.42			2-1-2034		993,410		1,059,064
FHLMC ±		2.42			3-1-2027		154,155		158,279
FHLMC ±		2.42			4-1-2035		4,821,070		5,141,019

Portfolio of investments—August 31, 2015 Wells Fargo Advantage Adjustable Rate Government Fund 3

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC ±		2.42	%		10-1-2036	$	903,918	$	965,518
FHLMC ±		2.42			5-1-2037		456,164		486,502
FHLMC ±		2.42			2-1-2034		3,064,208		3,281,174
FHLMC ±		2.42			6-1-2026		1,464,184		1,542,009
FHLMC ±		2.42			2-1-2035		2,529,872		2,704,018
FHLMC ±		2.42			6-1-2035		3,450,924		3,675,596
FHLMC ±		2.43			9-1-2035		7,203,669		7,663,631
FHLMC ±		2.43			12-1-2032		4,154,664		4,414,780
FHLMC ±		2.43			2-1-2036		1,390,259		1,481,555
FHLMC ±		2.43			11-1-2036		1,971,064		2,100,792
FHLMC ±		2.43			2-1-2036		2,200,241		2,341,508
FHLMC ±		2.43			9-1-2038		1,437,784		1,534,651
FHLMC ±		2.44			8-1-2035		936,068		996,862
FHLMC ±		2.44			6-1-2036		4,287,972		4,575,974
FHLMC ±		2.44			2-1-2036		1,431,225		1,523,447
FHLMC ±		2.44			5-1-2038		2,153,810		2,294,764
FHLMC ±		2.44			5-1-2038		2,706,750		2,878,288
FHLMC ±		2.44			4-1-2036		3,364,026		3,593,205
FHLMC ±		2.44			4-1-2037		1,073,257		1,144,698
FHLMC ±		2.44			3-1-2034		1,072,730		1,141,490
FHLMC ±		2.44			8-1-2035		4,092,566		4,359,593
FHLMC ±		2.44			9-1-2035		2,747,908		2,925,391
FHLMC ±		2.45			11-1-2029		246,863		256,484
FHLMC ±		2.45			7-1-2031		2,467,083		2,600,061
FHLMC ±		2.45			9-1-2036		1,127,365		1,202,225
FHLMC ±		2.45			11-1-2027		856,801		910,891
FHLMC ±		2.45			10-1-2036		1,049,990		1,117,177
FHLMC ±		2.45			6-1-2037		7,455,243		7,949,431
FHLMC ±		2.45			10-1-2035		2,490,481		2,647,387
FHLMC ±		2.45			2-1-2035		5,740,780		6,126,882
FHLMC ±		2.45			4-1-2038		7,392,534		7,884,172
FHLMC ±		2.45			10-1-2034		1,897,561		2,021,986
FHLMC ±		2.46			2-1-2036		1,114,711		1,187,444
FHLMC ±		2.46			3-1-2034		1,195,924		1,276,578
FHLMC ±		2.46			6-1-2019		56,491		57,268
FHLMC ±		2.46			6-1-2037		7,446,519		7,957,377
FHLMC ±		2.46			5-1-2034		2,508,504		2,656,365
FHLMC ±		2.46			3-1-2037		726,854		776,199
FHLMC ±		2.47			8-1-2035		4,861,046		5,178,462
FHLMC ±		2.47			8-1-2027		8,635		8,784
FHLMC ±		2.47			4-1-2037		3,968,601		4,241,630
FHLMC ±		2.47			4-1-2035		2,161,900		2,327,602
FHLMC ±		2.47			4-1-2038		2,367,212		2,521,103
FHLMC ±		2.47			8-1-2033		547,966		583,625
FHLMC ±		2.48			10-1-2033		63,891		64,611
FHLMC ±		2.48			4-1-2034		1,165,112		1,244,405
FHLMC ±		2.48			9-1-2030		461,188		483,535
FHLMC ±		2.48			10-1-2036		1,397,435		1,492,835
FHLMC ±		2.48			6-1-2035		2,218,615		2,367,537
FHLMC ±		2.48			1-1-2038		7,756,443		8,315,691

4 Wells Fargo Advantage Adjustable Rate Government Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC ±		2.48	%		5-1-2032	$	73,578	$	77,228
FHLMC ±		2.48			5-1-2034		2,976,452		3,181,830
FHLMC ±		2.48			1-1-2037		4,326,222		4,611,526
FHLMC ±		2.48			5-1-2033		268,767		285,639
FHLMC ±		2.48			4-1-2034		918,034		979,458
FHLMC ±		2.48			5-1-2023		78,753		80,053
FHLMC ±		2.48			2-1-2035		1,620,677		1,735,572
FHLMC ±		2.49			1-1-2019		439		440
FHLMC ±		2.49			11-1-2029		184,626		189,581
FHLMC ±		2.49			11-1-2035		2,000,774		2,130,911
FHLMC ±		2.49			7-1-2031		378,016		400,915
FHLMC ±		2.49			4-1-2037		1,060,889		1,131,882
FHLMC ±		2.49			9-1-2033		972,502		1,039,182
FHLMC ±		2.49			1-1-2036		1,115,863		1,190,132
FHLMC ±		2.50			10-1-2033		2,956,215		3,140,537
FHLMC ±		2.50			5-1-2037		504,181		539,862
FHLMC ±		2.50			3-1-2036		1,402,324		1,492,955
FHLMC ±		2.50			6-1-2028		186,106		193,281
FHLMC ±		2.50			6-1-2033		1,875,740		2,000,652
FHLMC ±		2.50			5-1-2034		666,796		709,547
FHLMC ±		2.50			7-1-2035		3,830,123		4,088,181
FHLMC ±		2.50			5-1-2035		4,015,217		4,283,646
FHLMC ±		2.51			12-1-2034		5,601,651		5,992,920
FHLMC ±		2.51			1-1-2028		25,613		26,969
FHLMC ±		2.51			9-1-2029		1,096,500		1,171,653
FHLMC ±		2.51			4-1-2037		816,444		878,991
FHLMC ±		2.51			2-1-2031		1,106,469		1,171,946
FHLMC ±		2.52			9-1-2033		1,471,922		1,569,902
FHLMC ±		2.52			9-1-2032		2,837,559		3,001,342
FHLMC ±		2.52			6-1-2035		2,571,039		2,747,858
FHLMC ±		2.53			4-1-2034		5,252,394		5,619,538
FHLMC ±		2.53			4-1-2034		948,814		1,013,438
FHLMC ±		2.53			6-1-2035		3,157,889		3,356,699
FHLMC ±		2.53			6-1-2035		855,618		917,183
FHLMC ±		2.53			3-1-2032		1,184,483		1,271,855
FHLMC ±		2.54			9-1-2030		10,080,026		10,693,719
FHLMC ±		2.54			4-1-2035		1,509,352		1,613,859
FHLMC ±		2.54			1-1-2037		1,665,638		1,783,345
FHLMC ±		2.54			1-1-2028		5,384		5,720
FHLMC ±		2.55			5-1-2035		661,758		706,251
FHLMC ±		2.55			12-1-2032		888,174		947,410
FHLMC ±		2.55			4-1-2037		2,055,143		2,214,232
FHLMC ±		2.55			12-1-2018		16,991		17,282
FHLMC ±		2.55			6-1-2035		660,223		697,837
FHLMC ±		2.56			6-1-2019		82,206		84,469
FHLMC ±		2.56			2-1-2036		223,928		238,093
FHLMC ±		2.57			7-1-2027		806,816		836,589
FHLMC ±		2.57			2-1-2029		250,230		259,951
FHLMC ±		2.57			10-1-2030		2,642,054		2,811,993
FHLMC ±		2.57			9-1-2031		80,548		82,179

Portfolio of investments—August 31, 2015 Wells Fargo Advantage Adjustable Rate Government Fund 5

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC ±		2.58	%		7-1-2034	$	1,035,934	$	1,101,329
FHLMC ±		2.58			9-1-2038		1,229,284		1,315,348
FHLMC ±		2.58			10-1-2029		131,052		135,119
FHLMC ±		2.60			11-1-2032		133,541		137,293
FHLMC ±		2.60			7-1-2036		1,172,963		1,256,824
FHLMC ±		2.60			7-1-2038		2,709,822		2,901,508
FHLMC ±		2.60			7-1-2037		1,000,509		1,062,866
FHLMC ±		2.61			4-1-2038		2,924,968		3,143,581
FHLMC ±		2.61			8-1-2029		138,705		142,089
FHLMC ±		2.61			12-1-2018		21,421		21,616
FHLMC ±		2.63			11-1-2018		6,995		7,016
FHLMC ±		2.65			7-1-2029		84,586		88,651
FHLMC ±		2.65			6-1-2030		133,820		137,449
FHLMC ±		2.65			3-1-2025		1,897,037		1,971,675
FHLMC ±		2.66			6-1-2029		796,667		839,639
FHLMC ±		2.67			4-1-2029		152,786		156,340
FHLMC ±		2.67			9-1-2029		158,946		163,361
FHLMC ±		2.68			6-1-2025		85,955		87,660
FHLMC ±		2.68			10-1-2024		191,407		202,146
FHLMC ±		2.68			5-1-2036		4,680,260		5,020,770
FHLMC ±		2.69			11-1-2029		1,281,697		1,369,314
FHLMC ±		2.69			6-1-2030		460,304		482,802
FHLMC ±		2.70			2-1-2024		28,463		28,679
FHLMC ±		2.71			2-1-2036		5,009,906		5,385,657
FHLMC ±		2.72			11-1-2029		138,241		144,043
FHLMC ±		2.72			7-1-2034		2,465,956		2,631,400
FHLMC ±		2.73			10-1-2025		115,398		118,479
FHLMC ±		2.73			10-1-2025		40,225		40,536
FHLMC ±		2.73			2-1-2030		61,064		62,052
FHLMC ±		2.73			6-1-2030		126,283		129,868
FHLMC ±		2.73			4-1-2020		5,030		5,067
FHLMC ±		2.73			5-1-2028		405,913		424,725
FHLMC ±		2.75			8-1-2030		5,602,947		5,991,240
FHLMC ±		2.75			11-1-2026		318,306		331,596
FHLMC ±		2.77			4-1-2019		5,831		5,896
FHLMC ±		2.78			6-1-2022		252		254
FHLMC ±		2.78			2-1-2018		2,783		2,818
FHLMC ±		2.80			9-1-2030		169,955		174,691
FHLMC ±		2.85			6-1-2032		246,859		253,961
FHLMC ±		2.88			8-1-2019		16,339		16,448
FHLMC ±		2.90			8-1-2029		126,997		132,271
FHLMC ±		2.92			4-1-2032		116,567		119,863
FHLMC ±		2.94			7-1-2018		22,778		23,018
FHLMC ±		2.99			12-1-2025		251,410		261,166
FHLMC ±		3.06			6-1-2021		113,238		116,059
FHLMC ±		3.06			2-1-2027		175,237		177,475
FHLMC ±		3.26			5-1-2031		173,124		182,907
FHLMC ±		3.27			7-1-2028		90,779		91,684
FHLMC ±		3.38			5-1-2032		266,573		277,133
FHLMC ±		3.48			6-1-2035		1,729,917		1,833,039

6 Wells Fargo Advantage Adjustable Rate Government Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC ±		3.49	%		12-1-2025	$	711,548	$	752,969
FHLMC ±		3.64			11-1-2026		156,000		162,695
FHLMC ±		3.70			8-1-2029		10,939		11,010
FHLMC ±		3.85			4-1-2023		144,902		147,708
FHLMC		4.00			12-15-2023		130,048		134,153
FHLMC ±		4.39			2-1-2021		33,489		33,782
FHLMC ±		4.72			8-1-2027		76,088		76,966
FHLMC		5.00			10-1-2022		25,820		27,762
FHLMC ±		5.50			8-1-2024		520,532		551,526
FHLMC		6.50			4-1-2018		57,268		65,424
FHLMC		7.00			9-1-2035		70,415		72,957
FHLMC		7.50			1-1-2016		206		206
FHLMC		8.50			5-1-2020		55,130		57,546
FHLMC Series 0020 Class F ±		1.20			7-1-2029		23,398		23,447
FHLMC Series 1671 Class QA ±		1.61			2-15-2024		590,190		607,738
FHLMC Series 1686 Class FE ±		1.76			2-15-2024		40,303		41,355
FHLMC Series 1730 Class FA ±		1.72			5-15-2024		256,286		249,477
FHLMC Series 2315 Class FW ±		0.75			4-15-2027		153,509		155,621
FHLMC Series 2391 Class EF ±		0.70			6-15-2031		131,410		133,104
FHLMC Series 2454 Class SL ±(c)		7.80			3-15-2032		281,216		73,930
FHLMC Series 2461 Class FI ±		0.70			4-15-2028		193,695		196,197
FHLMC Series 2464 Class FE ±		1.20			3-15-2032		183,289		189,059
FHLMC Series 2466 Class FV ±		0.75			3-15-2032		339,215		344,860
FHLMC Series 2538 Class F ±		0.80			12-15-2032		783,266		794,758
FHLMC Series 3001 Class EA ±		0.55			3-15-2035		285,049		285,817
FHLMC Series 3335 Class FT ±		0.35			8-15-2019		456,133		455,878
FHLMC Series 3436 Class A ±		2.28			11-15-2036		602,431		637,893
FHLMC Series T-15 Class A6 ±		0.59			11-25-2028		759,619		754,687
FHLMC Series T-16 Class A ±		0.55			6-25-2029		1,928,262		1,905,824
FHLMC Series T-20 Class A7 ±		0.50			12-25-2029		3,346,976		3,297,739
FHLMC Series T-21 Class A ±		0.56			10-25-2029		1,765,698		1,749,023
FHLMC Series T-23 Class A ±		0.48			5-25-2030		2,256,733		2,230,223
FHLMC Series T-27 Class A ±		0.50			10-25-2030		1,453,321		1,437,223
FHLMC Series T-30 Class A7 ±		0.44			12-25-2030		1,511,100		1,458,464
FHLMC Series T-35 Class A ±		0.48			9-25-2031		4,278,934		4,227,689
FHLMC Series T-36 Class A ±		0.50			1-25-2032		523,178		519,575
FHLMC Series T-48 Class 2A ±		3.30			7-25-2033		3,058,432		3,275,257
FHLMC Series T-54 Class 4A ±		3.08			2-25-2043		2,208,102		2,369,022
FHLMC Series T-55 Class 1A1		6.50			3-25-2043		94,845		105,471
FHLMC Series T-56 Class 3AF ±		1.20			5-25-2043		1,391,617		1,427,462
FHLMC Series T-62 Class 1A1 ±		1.37			10-25-2044		5,775,941		5,907,026
FHLMC Series T-63 Class 1A1 ±		1.37			2-25-2045		5,179,421		5,309,342
FHLMC Series T-66 Class 2A1 ±		2.86			1-25-2036		3,452,788		3,607,801
FHLMC Series T-67 Class 1A1C ±		2.91			3-25-2036		11,682,136		12,327,387
FHLMC Series T-67 Class 2A1C ±		2.88			3-25-2036		7,259,215		7,562,207
FHLMC Series T-75 Class A1 ±		0.24			12-25-2036		3,494,988		3,477,912
FNMA ±		1.38			12-1-2020		23,874		23,934
FNMA ±		1.38			1-1-2021		2,896		2,981
FNMA ±		1.38			1-1-2021		3,338		3,431
FNMA ±		1.38			6-1-2021		49,465		51,756

Portfolio of investments—August 31, 2015 Wells Fargo Advantage Adjustable Rate Government Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA ±		1.52	%		8-1-2032	$	258,868	$	259,754
FNMA ±		1.57			12-1-2030		150,280		152,993
FNMA ±		1.58			9-1-2032		62,517		62,609
FNMA ±		1.63			12-1-2016		587		588
FNMA ±		1.69			8-1-2030		2,213,082		2,291,220
FNMA ±		1.71			8-1-2033		306,599		320,284
FNMA ±		1.73			1-1-2017		699		699
FNMA ±		1.74			1-1-2032		404,361		421,573
FNMA ±		1.75			8-1-2033		3,909		4,001
FNMA ±		1.75			8-1-2033		1,688,076		1,760,181
FNMA ±		1.75			7-1-2017		722		724
FNMA ±		1.75			12-1-2031		24,620		24,639
FNMA ±		1.77			5-1-2029		425,501		446,542
FNMA ±		1.79			12-1-2031		365,813		382,610
FNMA ±		1.81			12-1-2031		150,700		154,160
FNMA ±		1.82			3-1-2030		22,295		22,409
FNMA ±		1.83			10-1-2037		1,730,427		1,820,671
FNMA ±		1.83			3-1-2034		499,678		531,491
FNMA ±		1.87			5-1-2018		4,930		4,948
FNMA ±		1.87			1-1-2032		33,055		33,211
FNMA ±		1.87			1-1-2035		124,318		130,904
FNMA ±		1.87			9-1-2031		237,763		246,353
FNMA ±		1.88			7-1-2017		1,332		1,341
FNMA ±		1.88			8-1-2017		729		738
FNMA ±		1.88			7-1-2020		10,906		11,299
FNMA ±		1.88			3-1-2021		963		981
FNMA ±		1.88			3-1-2030		21,803		21,884
FNMA ±		1.88			8-1-2031		151,706		155,733
FNMA ±		1.92			8-1-2031		136,136		139,842
FNMA ±		1.92			1-1-2035		3,741,234		3,922,064
FNMA ±		1.92			4-1-2033		523,511		551,767
FNMA ±		1.92			11-1-2024		8,857		9,084
FNMA ±		1.92			12-1-2022		12,791		12,910
FNMA ±		1.93			4-1-2021		60,159		63,116
FNMA ±		1.93			10-1-2017		27,078		28,124
FNMA ±		1.93			1-1-2018		39,543		39,516
FNMA ±		1.93			11-1-2023		38,711		39,654
FNMA ±		1.93			1-1-2035		1,372,888		1,435,037
FNMA ±		1.93			4-1-2019		3,571		3,611
FNMA ±		1.94			2-1-2033		252,110		262,865
FNMA ±		1.94			3-1-2033		228,009		237,971
FNMA ±		1.94			4-1-2042		3,664,703		3,868,160
FNMA ±		1.94			10-1-2044		1,553,769		1,643,096
FNMA ±		1.95			6-1-2031		312,149		322,941
FNMA ±		1.96			3-1-2034		641,198		675,178
FNMA ±		1.96			4-1-2038		1,223,188		1,296,687
FNMA ±		1.97			12-1-2017		49,237		49,945
FNMA ±		2.00			1-1-2022		10,906		10,944
FNMA ±		2.01			8-1-2032		157,434		161,774
FNMA ±		2.01			2-1-2033		666,129		703,588

8 Wells Fargo Advantage Adjustable Rate Government Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date			Principal		Value
Agency Securities (continued)
FNMA ±		2.02	%		4-1-2018		$	3,070	$	3,113
FNMA ±		2.02			6-1-2035			1,087,451		1,140,440
FNMA ±		2.04			10-1-2035			8,199,443		8,605,789
FNMA ±		2.07			12-1-2035			6,196,903		6,486,289
FNMA ±		2.07			11-1-2034			1,042,152		1,096,272
FNMA ±		2.08			9-1-2035			3,530,415		3,748,302
FNMA ±		2.08			1-1-2038			467,138		477,458
FNMA ±		2.08			7-1-2038			1,231,407		1,295,907
FNMA ±		2.09			7-1-2018			983		991
FNMA ±		2.10			1-1-2036			4,592,626		4,825,518
FNMA ±		2.11			11-1-2035			1,792,172		1,881,243
FNMA ±		2.11			11-1-2035			66,899		70,285
FNMA ±		2.12			10-1-2024			54,275		54,595
FNMA ±		2.12			12-1-2024			82,990		83,556
FNMA ±		2.12			1-1-2034			3,183,678		3,380,406
FNMA ±		2.13			2-1-2018			5,424		5,524
FNMA ±		2.13			10-1-2018			71,070		73,599
FNMA ±		2.13			5-1-2019			172		172
FNMA ±		2.13			2-1-2020	��		8,474		8,516
FNMA ±		2.13			6-1-2019			498		499
FNMA ±		2.13			8-1-2031			70,867		74,301
FNMA ±		2.13			7-1-2032			208,508		213,563
FNMA ±		2.14			6-1-2032			70,665		71,195
FNMA ±		2.14			1-1-2035			697,759		734,456
FNMA ±		2.16			10-1-2035			815,040		856,932
FNMA ±		2.16			11-1-2017			68,748		69,888
FNMA ±		2.17			12-1-2033			2,325,300		2,484,097
FNMA ±		2.18			12-1-2023			10,446		10,502
FNMA ±		2.19			11-1-2035			2,228,159		2,344,893
FNMA ±		2.20			11-1-2017			24,519		24,661
FNMA ±		2.20			11-1-2027			55,013		55,897
FNMA ±		2.21			4-1-2018			238,150		247,390
FNMA ±		2.21			1-1-2036			493,787		526,748
FNMA ±		2.22			7-1-2018			235,311		244,536
FNMA ±		2.22			4-1-2024			3,648,147		3,716,266
FNMA ±		2.22			1-1-2035			3,053,942		3,253,957
FNMA ±		2.22			7-1-2035			2,101,106		2,207,174
FNMA ±		2.22			7-1-2035			1,679,376		1,766,380
FNMA ±		2.24			11-1-2035			1,322,811		1,408,153
FNMA ±		2.24			1-1-2040			614,669		653,755
FNMA ±		2.24			12-1-2032			1,067,422		1,126,653
FNMA ±		2.24			8-1-2035			484,183		505,109
FNMA ±		2.25			6-1-2034			887,548		942,649
FNMA ±		2.25			1-1-2037			3,341,199		3,556,030
FNMA ±		2.25			5-1-2017			28,040		28,108
FNMA ±		2.25			1-1-2018			319,496		332,427
FNMA ±		2.25			1-1-2019			74,340		75,375
FNMA ±		2.25			1-1-2027			41,499		41,861
FNMA ±		2.26			10-1-2035			424,669		457,933
FNMA ±		2.26			5-1-2033			5,435,597		5,801,498

Portfolio of investments—August 31, 2015 Wells Fargo Advantage Adjustable Rate Government Fund 9

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA ±		2.26	%		9-1-2036	$	1,270,015	$	1,352,601
FNMA ±		2.26			2-1-2036		5,635,587		6,002,542
FNMA ±		2.27			5-1-2034		1,038,824		1,104,185
FNMA ±		2.27			6-1-2035		2,842,175		3,013,140
FNMA ±		2.27			1-1-2037		4,243,656		4,496,860
FNMA ±		2.28			5-1-2018		38,058		38,679
FNMA ±		2.28			12-1-2033		1,638,629		1,757,529
FNMA ±		2.28			11-1-2038		1,480,249		1,574,242
FNMA ±		2.28			1-1-2036		453,682		476,262
FNMA ±		2.28			12-1-2039		305,559		318,899
FNMA ±		2.28			4-1-2030		118,247		121,360
FNMA ±		2.29			8-1-2036		4,262,146		4,511,502
FNMA ±		2.29			4-1-2037		3,871,800		4,124,713
FNMA ±		2.29			9-1-2032		6,940,067		7,377,965
FNMA ±		2.29			9-1-2034		1,919,501		2,042,309
FNMA ±		2.29			4-1-2035		3,876,760		4,152,684
FNMA ±		2.30			9-1-2038		1,679,614		1,785,449
FNMA ±		2.30			12-1-2034		1,754,395		1,879,515
FNMA ±		2.30			12-1-2024		33,816		34,006
FNMA ±		2.30			6-1-2032		44,343		44,601
FNMA ±		2.30			6-1-2032		80,052		81,229
FNMA ±		2.30			1-1-2035		474,281		504,436
FNMA ±		2.30			1-1-2035		1,593,012		1,713,596
FNMA ±		2.30			7-1-2036		3,937,819		4,190,280
FNMA ±		2.31			8-1-2025		45,157		46,359
FNMA ±		2.32			10-1-2033		714,085		759,370
FNMA ±		2.32			5-1-2018		393		382
FNMA ±		2.32			4-1-2033		1,158,217		1,236,799
FNMA ±		2.32			2-1-2035		429,254		458,097
FNMA ±		2.32			10-1-2025		148,018		153,270
FNMA ±		2.33			4-1-2040		309,792		330,972
FNMA ±		2.33			11-1-2038		1,288,013		1,375,474
FNMA ±		2.33			10-1-2024		326,773		340,906
FNMA ±		2.33			9-1-2035		2,788,333		2,963,592
FNMA ±		2.34			7-1-2029		744,787		792,273
FNMA ±		2.34			4-1-2034		1,435,498		1,524,322
FNMA ±		2.34			9-1-2036		1,650,448		1,771,001
FNMA ±		2.34			9-1-2039		4,668,708		4,969,169
FNMA ±		2.35			8-1-2031		128,511		131,657
FNMA ±		2.35			2-1-2033		307,962		316,720
FNMA ±		2.35			10-1-2034		486,385		518,069
FNMA ±		2.35			12-1-2037		906,033		966,577
FNMA ±		2.35			5-1-2038		5,120,569		5,451,035
FNMA ±		2.35			6-1-2026		85,907		88,872
FNMA ±		2.35			1-1-2033		4,317,063		4,596,845
FNMA ±		2.35			9-1-2033		59,611		60,080
FNMA ±		2.35			5-1-2036		2,708,851		2,871,720
FNMA ±		2.35			7-1-2038		6,606,841		7,050,988
FNMA ±		2.35			5-1-2039		4,337,524		4,602,411
FNMA ±		2.36			7-1-2025		5,069		5,340

10 Wells Fargo Advantage Adjustable Rate Government Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA ±		2.36	%		5-1-2033	$	585,676	$	616,011
FNMA ±		2.36			7-1-2035		1,278,641		1,359,526
FNMA ±		2.36			12-1-2035		737,953		786,190
FNMA ±		2.36			12-1-2032		1,197,511		1,277,458
FNMA ±		2.36			9-1-2037		1,576,924		1,681,285
FNMA ±		2.36			5-1-2034		986,259		1,044,211
FNMA ±		2.37			12-1-2025		21,974		22,290
FNMA ±		2.37			8-1-2026		98,149		101,345
FNMA ±		2.37			5-1-2032		197,445		201,475
FNMA ±		2.37			3-1-2031		40,694		40,931
FNMA ±		2.37			3-1-2037		807,227		858,836
FNMA ±		2.37			9-1-2035		7,635,779		8,127,562
FNMA ±		2.37			5-1-2033		993,240		1,062,411
FNMA ±		2.37			12-1-2034		1,950,565		2,086,225
FNMA ±		2.37			6-1-2027		1,468		1,515
FNMA ±		2.38			5-1-2033		1,209,195		1,278,849
FNMA ±		2.38			4-1-2034		858,530		914,419
FNMA ±		2.38			5-1-2035		1,790,659		1,906,891
FNMA ±		2.38			6-1-2041		1,087,353		1,159,277
FNMA ±		2.38			8-1-2017		267,322		267,138
FNMA ±		2.38			5-1-2035		2,537,919		2,706,356
FNMA ±		2.38			12-1-2036		963,323		1,026,956
FNMA ±		2.38			12-1-2040		616,523		656,873
FNMA ±		2.38			1-1-2038		7,005,939		7,499,881
FNMA ±		2.38			7-1-2038		2,751,878		2,931,660
FNMA ±		2.38			1-1-2027		783,004		811,257
FNMA ±		2.38			2-1-2038		1,283,953		1,363,702
FNMA ±		2.38			2-1-2035		4,411,569		4,693,538
FNMA ±		2.38			6-1-2036		2,758,783		2,934,699
FNMA ±		2.38			1-1-2037		4,478,708		4,784,164
FNMA ±		2.39			10-1-2035		3,196,977		3,398,369
FNMA ±		2.39			4-1-2033		1,165,514		1,245,446
FNMA ±		2.39			2-1-2034		3,164,895		3,375,438
FNMA ±		2.39			10-1-2036		1,447,213		1,539,075
FNMA ±		2.39			2-1-2036		1,206,682		1,282,151
FNMA ±		2.39			4-1-2038		1,930,127		2,052,401
FNMA ±		2.39			2-1-2045		3,770,458		4,019,988
FNMA ±		2.39			3-1-2033		514,531		538,296
FNMA ±		2.40			12-1-2037		4,538,897		4,843,337
FNMA ±		2.40			8-1-2039		5,163,696		5,499,079
FNMA ±		2.40			9-1-2039		7,463,271		7,955,220
FNMA ±		2.40			12-1-2040		2,312,498		2,460,671
FNMA ±		2.40			12-1-2044		6,021,083		6,400,645
FNMA ±		2.40			7-1-2039		5,157,361		5,491,980
FNMA ±		2.40			4-1-2035		2,691,284		2,877,708
FNMA ±		2.40			8-1-2037		5,138,720		5,488,507
FNMA ±		2.40			5-1-2033		3,769,370		4,031,422
FNMA ±		2.40			7-1-2024		14,415		14,491
FNMA ±		2.40			1-1-2037		8,598,833		9,160,417
FNMA ±		2.40			2-1-2037		4,088,874		4,376,559

Portfolio of investments—August 31, 2015 Wells Fargo Advantage Adjustable Rate Government Fund 11

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA ±		2.40	%		10-1-2035	$	1,687,422	$	1,805,140
FNMA ±		2.40			11-1-2035		2,272,385		2,420,721
FNMA ±		2.40			9-1-2036		1,010,296		1,076,998
FNMA ±		2.40			12-1-2040		5,574,437		5,930,876
FNMA ±		2.41			11-1-2022		63,587		63,932
FNMA ±		2.41			9-1-2034		5,140,779		5,473,147
FNMA ±		2.41			2-1-2036		11,516,300		12,322,460
FNMA ±		2.41			1-1-2036		1,447,751		1,541,465
FNMA ±		2.41			7-1-2035		3,615,530		3,845,288
FNMA ±		2.41			9-1-2030		1,024,135		1,045,630
FNMA ±		2.41			7-1-2040		3,633,035		3,865,216
FNMA ±		2.41			7-1-2036		5,141,918		5,472,014
FNMA ±		2.41			2-1-2038		2,794,149		2,985,801
FNMA ±		2.42			3-1-2038		3,092,977		3,305,025
FNMA ±		2.42			12-1-2040		1,753,683		1,867,540
FNMA ±		2.42			3-1-2035		1,364,669		1,457,830
FNMA ±		2.42			6-1-2036		4,955,851		5,289,080
FNMA ±		2.42			5-1-2036		4,956,754		5,293,469
FNMA ±		2.42			12-1-2040		9,041,046		9,609,314
FNMA ±		2.42			10-1-2034		746,349		806,765
FNMA ±		2.42			6-1-2035		572,306		609,151
FNMA ±		2.42			5-1-2036		3,093,425		3,303,659
FNMA ±		2.42			1-1-2035		6,088,020		6,462,571
FNMA ±		2.42			10-1-2036		5,033,738		5,363,529
FNMA ±		2.43			12-1-2033		2,111,877		2,253,433
FNMA ±		2.43			4-1-2024		23,700		24,660
FNMA ±		2.43			8-1-2026		732,469		781,907
FNMA ±		2.43			1-1-2038		1,518,075		1,622,765
FNMA ±		2.43			12-1-2035		5,438,788		5,792,671
FNMA ±		2.44			10-1-2029		125,823		128,827
FNMA ±		2.44			8-1-2035		1,319,402		1,398,736
FNMA ±		2.44			4-1-2033		998,572		1,063,883
FNMA ±		2.44			8-1-2035		3,365,989		3,579,959
FNMA ±		2.44			5-1-2037		2,365,308		2,523,926
FNMA ±		2.44			9-1-2035		1,325,436		1,409,335
FNMA ±		2.44			7-1-2040		3,620,496		3,878,864
FNMA ±		2.44			5-1-2025		47,491		47,957
FNMA ±		2.44			8-1-2033		1,756,168		1,863,438
FNMA ±		2.44			6-1-2027		107,563		110,277
FNMA ±		2.44			9-1-2036		837,111		890,304
FNMA ±		2.44			11-1-2037		1,384,749		1,474,977
FNMA ±		2.45			6-1-2032		43,311		43,651
FNMA ±		2.45			6-1-2033		953,807		1,011,413
FNMA ±		2.45			12-1-2046		1,380,348		1,469,647
FNMA ±		2.45			3-1-2035		4,671,973		4,973,932
FNMA ±		2.45			4-1-2035		2,053,741		2,194,584
FNMA ±		2.45			7-1-2037		918,147		981,788
FNMA ±		2.45			11-1-2020		867,717		867,146
FNMA ±		2.45			1-1-2037		2,179,186		2,320,833
FNMA ±		2.45			8-1-2035		3,541,912		3,763,509

12 Wells Fargo Advantage Adjustable Rate Government Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA ±		2.45	%		6-1-2017	$	11,187	$	11,231
FNMA ±		2.45			4-1-2020		4,764		4,780
FNMA ±		2.45			3-1-2033		6,887		6,941
FNMA ±		2.45			5-1-2033		352,102		374,260
FNMA ±		2.45			1-1-2033		2,128,309		2,275,257
FNMA ±		2.45			1-1-2028		8,284		8,333
FNMA ±		2.45			7-1-2035		1,214,907		1,291,704
FNMA ±		2.46			12-1-2030		80,935		83,178
FNMA ±		2.46			4-1-2033		547,297		577,029
FNMA ±		2.46			6-1-2033		326,625		340,309
FNMA ±		2.46			12-1-2040		4,952,802		5,280,030
FNMA ±		2.46			1-1-2035		934,285		993,604
FNMA ±		2.46			7-1-2033		156,493		166,504
FNMA ±		2.46			6-1-2035		1,515,402		1,609,584
FNMA ±		2.46			7-1-2035		2,003,787		2,133,643
FNMA ±		2.46			12-1-2028		42,547		43,432
FNMA ±		2.46			5-1-2034		926,468		986,081
FNMA ±		2.46			12-1-2040		2,966,573		3,155,449
FNMA ±		2.46			12-1-2034		1,285,006		1,371,909
FNMA ±		2.46			6-1-2035		453,033		482,109
FNMA ±		2.46			12-1-2040		5,875,677		6,222,103
FNMA ±		2.47			4-1-2024		67,249		67,929
FNMA ±		2.47			4-1-2030		18,057		18,167
FNMA ±		2.47			4-1-2033		1,681,859		1,800,793
FNMA ±		2.47			4-1-2030		17,189		18,064
FNMA ±		2.47			7-1-2035		793,147		847,528
FNMA ±		2.47			7-1-2035		2,232,853		2,384,418
FNMA ±		2.48			1-1-2031		638,124		678,235
FNMA ±		2.48			9-1-2033		61,828		62,309
FNMA ±		2.48			2-1-2038		6,399,072		6,820,687
FNMA ±		2.48			6-1-2036		774,183		823,005
FNMA ±		2.48			9-1-2019		50,767		51,277
FNMA ±		2.48			1-1-2037		1,719,097		1,836,911
FNMA ±		2.48			9-1-2022		342,464		358,068
FNMA ±		2.49			7-1-2028		237		253
FNMA ±		2.49			10-1-2036		1,262,130		1,346,253
FNMA ±		2.49			5-1-2028		63,481		64,209
FNMA ±		2.49			1-1-2036		129,870		135,460
FNMA ±		2.50			1-1-2033		104,308		106,771
FNMA ±		2.50			7-1-2027		29,357		29,592
FNMA ±		2.50			3-1-2037		5,355,053		5,743,458
FNMA ±		2.50			5-1-2017		29,065		29,683
FNMA ±		2.50			7-1-2017		32,031		32,108
FNMA ±		2.50			8-1-2017		19,830		20,076
FNMA ±		2.50			2-1-2019		1,571		1,581
FNMA ±		2.50			11-1-2024		156,976		163,923
FNMA ±		2.50			6-1-2025		8,662		8,719
FNMA ±		2.50			4-1-2036		4,961,826		5,311,974
FNMA ±		2.51			9-1-2028		108,052		110,893
FNMA ±		2.51			5-1-2035		673,899		716,473

Portfolio of investments—August 31, 2015 Wells Fargo Advantage Adjustable Rate Government Fund 13

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA ±		2.51	%		10-1-2027	$	904,734	$	958,095
FNMA ±		2.52			7-1-2020		100,461		102,482
FNMA ±		2.52			9-1-2030		971,611		1,045,538
FNMA ±		2.52			1-1-2029		625,681		652,517
FNMA ±		2.52			11-1-2034		192,765		206,437
FNMA ±		2.52			7-1-2017		72,151		72,104
FNMA ±		2.53			6-1-2024		53,011		53,822
FNMA ±		2.53			9-1-2026		104,457		107,733
FNMA ±		2.53			9-1-2032		73,618		75,550
FNMA ±		2.53			10-1-2034		1,343,256		1,431,447
FNMA ±		2.53			9-1-2037		1,036,038		1,106,759
FNMA ±		2.53			7-1-2027		302,593		315,079
FNMA ±		2.53			4-1-2036		1,547,992		1,656,153
FNMA ±		2.54			2-1-2035		1,618,541		1,735,624
FNMA ±		2.54			4-1-2038		1,131,443		1,208,339
FNMA ±		2.54			10-1-2024		7,933		8,246
FNMA ±		2.54			9-1-2035		876,232		933,757
FNMA ±		2.54			6-1-2037		1,460,554		1,570,663
FNMA ±		2.54			9-1-2030		180,712		185,864
FNMA ±		2.54			5-1-2036		682,193		732,024
FNMA ±		2.54			7-1-2030		1,146,451		1,222,888
FNMA ±		2.54			10-1-2017		1,643		1,650
FNMA ±		2.54			8-1-2040		1,031,571		1,106,734
FNMA ±		2.54			4-1-2018		315,452		325,326
FNMA ±		2.54			7-1-2036		3,652,249		3,944,956
FNMA ±		2.55			5-1-2033		1,144,802		1,217,804
FNMA ±		2.55			7-1-2033		1,316,395		1,410,533
FNMA ±		2.55			5-1-2034		2,134,470		2,291,120
FNMA ±		2.55			9-1-2033		1,162,300		1,233,839
FNMA ±		2.55			1-1-2032		115,445		119,120
FNMA ±		2.56			5-1-2035		2,112,165		2,261,750
FNMA ±		2.56			1-1-2026		345,365		361,154
FNMA ±		2.57			7-1-2028		1,184,123		1,241,538
FNMA ±		2.57			4-1-2028		312,734		325,770
FNMA ±		2.58			3-1-2033		1,855,737		1,981,115
FNMA ±		2.58			8-1-2035		1,689,990		1,812,133
FNMA ±		2.58			9-1-2033		849,446		912,470
FNMA ±		2.58			8-1-2036		531,007		567,106
FNMA ±		2.59			12-1-2030		861,718		912,342
FNMA ±		2.60			5-1-2028		192,631		205,124
FNMA ±		2.60			6-1-2030		179,499		184,715
FNMA ±		2.60			5-1-2027		93,235		97,283
FNMA ±		2.60			6-1-2032		124,478		128,529
FNMA ±		2.60			6-1-2027		90,577		92,359
FNMA ±		2.61			9-1-2019		5,181		5,221
FNMA ±		2.61			6-1-2040		1,120,559		1,183,678
FNMA ±		2.63			6-1-2018		12,146		12,181
FNMA ±		2.63			5-1-2037		2,822,236		3,020,044
FNMA ±		2.63			1-1-2021		378,744		396,658
FNMA ±		2.63			3-1-2035		3,709,825		3,984,159

14 Wells Fargo Advantage Adjustable Rate Government Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA ±		2.63	%		4-1-2036	$	4,994,955	$	5,354,035
FNMA ±		2.64			11-1-2024		83,411		84,341
FNMA ±		2.64			7-1-2037		2,839,362		3,048,505
FNMA ±		2.65			8-1-2035		3,558,988		3,802,069
FNMA ±		2.66			12-1-2021		59,256		60,754
FNMA ±		2.66			9-1-2030		760,585		814,127
FNMA ±		2.66			8-1-2034		3,407,342		3,645,617
FNMA ±		2.67			7-1-2037		851,525		903,258
FNMA ±		2.67			9-1-2035		121,928		130,439
FNMA ±		2.68			10-1-2018		167,795		175,123
FNMA ±		2.68			5-1-2035		3,273,335		3,521,554
FNMA ±		2.68			1-1-2025		63,793		64,856
FNMA ±		2.69			8-1-2036		3,916,808		4,196,653
FNMA ±		2.70			9-1-2030		709,808		756,387
FNMA ±		2.71			10-1-2029		546,533		574,149
FNMA ±		2.71			3-1-2034		1,268,548		1,358,598
FNMA ±		2.72			9-1-2021		84,246		85,495
FNMA ±		2.72			10-1-2025		10,652		10,883
FNMA ±		2.72			2-1-2028		45,347		45,748
FNMA ±		2.72			3-1-2032		135,592		139,374
FNMA ±		2.74			10-1-2018		90,881		90,889
FNMA ±		2.75			9-1-2017		237,777		239,954
FNMA ±		2.75			6-1-2016		15,965		16,102
FNMA ±		2.75			7-1-2016		4,971		4,992
FNMA ±		2.75			6-1-2018		1,204		1,216
FNMA ±		2.75			8-1-2018		51,134		52,080
FNMA ±		2.75			3-1-2027		111,559		116,276
FNMA ±		2.75			12-1-2028		98,044		101,218
FNMA ±		2.75			1-1-2029		13,394		13,845
FNMA ±		2.75			5-1-2035		2,241,452		2,412,907
FNMA ±		2.76			5-1-2018		258,519		258,234
FNMA ±		2.76			7-1-2039		2,719,832		2,967,133
FNMA ±		2.76			3-1-2035		3,790,913		4,080,174
FNMA ±		2.77			10-1-2025		8,574		8,618
FNMA ±		2.77			11-1-2024		43,393		43,679
FNMA ±		2.78			7-1-2020		1,411,291		1,410,755
FNMA ±		2.80			4-1-2020		1,837,060		1,865,989
FNMA ±		2.81			1-1-2019		2,480		2,485
FNMA ±		2.85			7-1-2028		340,926		355,379
FNMA ±		2.85			4-1-2026		8,243		8,314
FNMA ±		2.85			7-1-2019		1,961		1,993
FNMA ±		2.86			11-1-2035		11,809,341		12,709,958
FNMA ±		2.86			11-1-2034		4,629,003		4,989,804
FNMA ±		2.86			7-1-2033		40,034		40,419
FNMA ±		2.86			10-1-2028		227,405		236,662
FNMA ±		2.88			3-1-2019		384,621		405,997
FNMA ±		2.89			5-1-2017		30,238		30,888
FNMA ±		2.92			2-1-2029		94,008		96,491
FNMA ±		2.93			4-1-2040		2,511,743		2,717,358
FNMA ±		2.94			1-1-2029		19,026		19,950

Portfolio of investments—August 31, 2015 Wells Fargo Advantage Adjustable Rate Government Fund 15

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA ±		2.94	%		9-1-2032	$	1,714,339	$	1,872,718
FNMA ±		2.95			8-1-2029		523,669		552,425
FNMA ±		2.98			11-1-2028		109,655		112,841
FNMA ±		2.99			4-1-2033		483,714		511,653
FNMA ±		3.02			1-1-2031		76,478		77,455
FNMA ±		3.05			7-1-2033		1,406		1,424
FNMA ±		3.07			8-1-2030		236,360		242,709
FNMA ±		3.09			8-1-2031		67,332		68,046
FNMA ±		3.10			4-1-2024		341,907		365,525
FNMA ±		3.11			3-1-2030		149,418		153,621
FNMA ±		3.15			10-1-2024		46,910		47,181
FNMA ±		3.17			1-1-2033		69,259		70,514
FNMA ±		3.22			4-1-2034		2,615,876		2,821,429
FNMA ±		3.25			9-1-2017		1,395		1,402
FNMA ±		3.29			9-1-2033		42,898		43,161
FNMA ±		3.30			2-1-2029		1,883,455		2,024,922
FNMA ±		3.31			10-1-2018		22		22
FNMA ±		3.45			11-1-2031		43,231		43,557
FNMA ±		3.47			6-1-2024		28,442		28,675
FNMA ±		3.47			11-1-2029		9,666		9,735
FNMA ±		3.47			7-1-2028		54,472		56,333
FNMA ±		3.53			10-1-2034		231,063		241,755
FNMA ±		3.56			5-1-2033		1,500,023		1,620,400
FNMA ±		3.58			10-1-2017		416,233		424,440
FNMA ±		3.63			7-1-2021		130,143		134,239
FNMA ±		3.67			5-1-2017		490		493
FNMA ±		3.67			7-1-2017		16,420		16,959
FNMA ±		3.69			9-1-2031		318,359		335,402
FNMA ±		3.78			9-1-2028		3,327		3,457
FNMA ±		3.79			4-1-2033		207,562		214,917
FNMA ±		3.85			12-1-2032		168,170		174,423
FNMA ±		3.92			2-1-2033		96,957		98,518
FNMA ±		3.95			9-1-2023		5,197		5,245
FNMA ±		4.01			4-1-2032		246,302		249,441
FNMA ±		4.03			5-1-2034		366,436		388,264
FNMA ±		4.11			9-1-2017		826		833
FNMA ±		4.18			6-1-2019		3,327		3,368
FNMA ±		4.20			11-1-2031		134,747		138,180
FNMA ±		4.20			11-1-2031		20,477		20,583
FNMA ±		4.30			1-1-2018		637		643
FNMA ±		4.31			11-1-2019		307		309
FNMA ±		4.33			12-1-2036		231,094		246,059
FNMA ±		4.47			6-1-2034		298,865		318,034
FNMA ±		4.63			2-1-2019		324,676		336,230
FNMA ±		4.65			1-1-2019		365,173		377,288
FNMA ±		4.66			6-1-2028		62,260		64,280
FNMA ±		4.71			4-1-2018		121,650		122,892
FNMA ±		5.00			6-1-2028		23,553		23,760
FNMA ±		5.08			5-1-2025		80		81
FNMA ±		5.25			10-1-2021		11,366		11,417

16 Wells Fargo Advantage Adjustable Rate Government Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA		5.50	%		9-1-2019	$	99,863	$	103,376
FNMA ±		5.70			1-1-2019		61,122		64,033
FNMA ±		6.00			1-1-2020		8,571		8,690
FNMA ±		6.19			9-1-2017		57		57
FNMA ±		6.45			2-1-2034		68,141		68,302
FNMA		6.50			8-1-2028		65,937		68,788
FNMA		6.50			5-1-2031		193,598		222,203
FNMA		7.00			11-1-2017		7,766		7,965
FNMA		7.06			11-1-2024		43,830		45,607
FNMA		7.06			12-1-2024		32,098		32,764
FNMA		7.06			3-1-2025		60,085		63,059
FNMA		7.06			3-1-2025		9,362		9,488
FNMA		7.06			4-1-2025		21,937		22,235
FNMA		7.06			1-1-2027		56,453		58,454
FNMA		7.50			2-1-2016		15,133		15,190
FNMA		7.50			1-1-2031		129,426		146,856
FNMA		7.50			1-1-2033		305,624		350,029
FNMA		7.50			5-1-2033		206,263		235,892
FNMA		7.50			5-1-2033		202,300		227,659
FNMA		7.50			6-1-2033		129,685		141,444
FNMA		7.50			7-1-2033		150,087		173,233
FNMA		7.50			8-1-2033		111,836		124,980
FNMA		8.00			12-1-2026		110,176		125,369
FNMA		8.00			2-1-2030		215		220
FNMA		8.00			3-1-2030		344		388
FNMA		8.00			7-1-2031		40,280		41,571
FNMA		8.00			5-1-2033		240,169		277,973
FNMA		8.50			10-1-2026		12,431		14,102
FNMA		8.50			2-1-2027		12,915		13,185
FNMA		8.50			6-1-2030		57,801		60,530
FNMA		8.51			8-15-2024		67,778		76,619
FNMA		9.00			7-1-2030		9,047		9,180
FNMA		9.50			8-1-2021		18,616		19,124
FNMA		9.50			12-1-2024		15,597		16,038
FNMA		10.00			1-20-2021		18,806		19,323
FNMA		11.00			1-1-2018		5,239		5,477
FNMA Series 1989-74 Class J		9.80			10-25-2019		16,792		18,685
FNMA Series 1989-96 Class H		9.00			12-25-2019		7,721		8,413
FNMA Series 1992-39 Class FA ±		1.93			3-25-2022		192,479		197,126
FNMA Series 1992-45 Class F ±		1.93			4-25-2022		34,930		34,547
FNMA Series 1992-87 Class Z		8.00			5-25-2022		22,156		24,665
FNMA Series 1993-113 Class FA ±		1.53			7-25-2023		136,677		138,323
FNMA Series 1993-247 Class FM ±		1.86			12-25-2023		584,229		600,382
FNMA Series 1994-14 Class F ±		2.26			10-25-2023		293,610		304,649
FNMA Series 1998-T2 Class A5 ±		4.38			1-25-2032		448,627		456,114
FNMA Series 2001-50 Class BA		7.00			10-25-2041		250,092		289,102
FNMA Series 2001-63 Class FD ±		0.80			12-18-2031		162,838		165,395
FNMA Series 2001-81 Class F ±		0.75			1-25-2032		109,072		110,713
FNMA Series 2001-T08 Class A1		7.50			7-25-2041		186,431		220,962
FNMA Series 2001-T10 Class A2		7.50			12-25-2041		4,086,953		4,970,438

Portfolio of investments—August 31, 2015 Wells Fargo Advantage Adjustable Rate Government Fund 17

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA Series 2001-T12 Class A2		7.50	%		8-25-2041	$	301,585	$	352,334
FNMA Series 2001-T12 Class A4 ±		3.47			8-25-2041		7,175,168		7,426,787
FNMA Series 2001-W03 Class A ±		6.85			9-25-2041		835,974		950,482
FNMA Series 2001-W1 Class AV1 ±		0.44			8-25-2031		99,966		97,056
FNMA Series 2002-05 Class FD ±		1.10			2-25-2032		313,600		321,599
FNMA Series 2002-33 Class A4 ±		4.67			11-25-2030		180,316		187,677
FNMA Series 2002-59 Class F ±		0.60			9-25-2032		651,184		657,744
FNMA Series 2002-66 Class A3 ±		3.19			4-25-2042		10,703,098		11,342,287
FNMA Series 2002-T12 Class A3		7.50			5-25-2042		1,755,534		2,154,790
FNMA Series 2002-T12 Class A5 ±		3.58			10-25-2041		2,631,305		2,761,781
FNMA Series 2002-T18 Class A5 ±		3.68			5-25-2042		4,333,033		4,545,343
FNMA Series 2002-T19 Class A4 ±		3.33			3-25-2042		255,466		271,397
FNMA Series 2002-W1 Class 3A ±		3.09			4-25-2042		1,679,488		1,736,047
FNMA Series 2002-W4 Class A6 ±		3.38			5-25-2042		2,769,139		2,903,957
FNMA Series 2003-07 Class A2 ±		2.54			5-25-2042		1,212,758		1,236,064
FNMA Series 2003-17 Class FN ±		0.50			3-25-2018		393,895		394,843
FNMA Series 2003-63 Class A8 ±		2.70			1-25-2043		1,699,696		1,759,789
FNMA Series 2003-W02 Class 1A3		7.50			7-25-2042		517,248		611,954
FNMA Series 2003-W04 Class 5A ±		2.99			10-25-2042		1,482,334		1,571,626
FNMA Series 2003-W08 Class 4A ±		3.17			11-25-2042		2,037,153		2,133,044
FNMA Series 2003-W10 Class 2A ±		3.09			6-25-2043		3,858,354		4,044,512
FNMA Series 2003-W18 Class 2A ±		3.46			6-25-2043		13,876,110		14,905,107
FNMA Series 2003-W9 Class A ±		0.44			6-25-2033		3,203,355		3,106,729
FNMA Series 2004-31 Class FG ±		0.60			8-25-2033		610,511		612,255
FNMA Series 2004-38 Class FT ±		0.63			10-25-2033		392,898		395,119
FNMA Series 2004-T3 Class 1A3		7.00			2-25-2044		702,562		805,803
FNMA Series 2004-T3 Class 2A ±		3.24			8-25-2043		2,346,207		2,493,777
FNMA Series 2004-T9 Class A1 ±		0.45			4-25-2035		462,969		461,703
FNMA Series 2004-W02 Class 5A		7.50			3-25-2044		225,185		258,668
FNMA Series 2004-W1 Class 2A2		7.00			12-25-2033		406,509		475,795
FNMA Series 2004-W1 Class 3A ±		3.45			1-25-2043		120,936		130,523
FNMA Series 2004-W12 Class 2A ±		3.43			6-25-2044		7,168,626		7,593,633
FNMA Series 2004-W15 Class 3A ±		2.69			6-25-2044		9,233,840		10,001,310
FNMA Series 2005-57 Class EG ±		0.50			3-25-2035		759,839		760,774
FNMA Series 2005-W3 Class 3A ±		2.71			4-25-2045		1,878,960		2,011,940
FNMA Series 2006-15 Class FW ±		0.50			1-25-2036		522,841		525,492
FNMA Series 2006-W1 Class 3A ±		2.18			10-25-2045		9,783,242		10,418,429
FNMA Series 2007-95 Class A2 ±		0.45			8-27-2036		889,100		885,740
FNMA Series G92-20 Class FB ±		1.93			4-25-2022		72,262		72,042
FNMA Series G93-1 Class K		6.68			1-25-2023		564,601		621,258
FNMA Series G93-19 Class FD ±		1.53			4-25-2023		492,872		498,913
GNMA ±		2.07			8-20-2062		7,473,014		7,878,844
GNMA ±		2.09			9-20-2062		2,355,626		2,488,530
GNMA		6.45			4-20-2025		59,464		67,805
GNMA		6.45			5-20-2025		23,262		23,916
GNMA		6.45			9-20-2025		45,761		53,992
GNMA		6.50			6-20-2034		81,508		84,258
GNMA		6.50			8-20-2034		787,844		903,900
GNMA		6.50			8-20-2034		115,356		121,454
GNMA		6.75			2-15-2029		116,965		133,643

18 Wells Fargo Advantage Adjustable Rate Government Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
GNMA		7.00	%		7-20-2034	$	62,935	$	64,604
GNMA		7.25			7-15-2017		3,306		3,316
GNMA		7.25			8-15-2017		14,556		14,710
GNMA		7.25			8-15-2017		9,436		9,535
GNMA		7.25			9-15-2017		11,597		11,731
GNMA		7.25			10-15-2017		21,644		22,356
GNMA		7.25			10-15-2017		9,215		9,313
GNMA		7.25			11-15-2017		11,096		11,222
GNMA		7.25			1-15-2018		3,895		3,907
GNMA		7.25			1-15-2018		6,764		6,787
GNMA		7.25			2-15-2018		13,143		13,302
GNMA		7.25			5-15-2018		7,364		7,389
GNMA		9.00			5-15-2016		2,129		2,138
GNMA		9.00			8-15-2016		3,383		3,397
GNMA		9.00			11-15-2016		882		892
GNMA		9.00			12-15-2016		94		94
GNMA		9.00			2-15-2017		2,215		2,239
GNMA		9.00			5-15-2017		411		413
GNMA		9.00			7-15-2017		4,861		4,883
GNMA		9.00			3-15-2020		3,039		3,097
GNMA		9.00			8-15-2021		523		525
GNMA		9.00			8-20-2024		333		366
GNMA		9.00			9-20-2024		1,256		1,314
GNMA		9.00			10-20-2024		3,870		3,933
GNMA		9.00			11-20-2024		170		171
GNMA		9.00			1-20-2025		6,733		7,739
GNMA		9.00			2-20-2025		21,970		25,213
GNMA Series 2011-H12 Class FA ±		0.68			2-20-2061		3,011,020		3,014,898
GNMA Series 2011-H17 Class FA ±		0.72			6-20-2061		1,572,970		1,576,405
Total Agency Securities (Cost $1,208,326,955)									1,229,610,808
Non-Agency Mortgage-Backed Securities: 0.47%
NCUA Guaranteed Notes Program Series 2010-C1 Class A2		2.90			10-29-2020		6,121,289		6,163,354
Total Non-Agency Mortgage-Backed Securities (Cost $6,164,966)									6,163,354
	Yield					Shares
Short-Term Investments: 5.18%
Investment Companies: 5.11%
Wells Fargo Advantage Government Money Market Fund, Institutional Class (l)(u)		0.01					66,990,777		66,990,777
						Principal
U.S. Treasury Securities: 0.07%
U.S. Treasury Bill #(z)		0.01			9-17-2015	$	900,000		899,999
Total Short-Term Investments (Cost $67,890,774)									67,890,776

Total investments in securities (Cost $1,282,382,695) *	99.52	%		1,303,664,938
Other assets and liabilities, net	0.48			6,269,362
Total net assets	100.00	%	$	1,309,934,300

Portfolio of investments—August 31, 2015 Wells Fargo Advantage Adjustable Rate Government Fund 19

144A The security may be resold in transactions exempt from registration, normally to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933.

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

(c) Investment in an interest-only security entitles holders to receive only the interest payments on the underlying mortgages. The principal amount shown is the notional amount of the underlying mortgages. The rate represents the coupon rate.

(l) The security represents an affiliate of the Fund as defined in the Investment Company Act of 1940.

(u) The rate represents 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. The rate represents the current yield to maturity.

* Cost for federal income tax purposes is $1,283,147,636 and unrealized gains (losses) consists of:

Gross unrealized gains	$	22,123,207
Gross unrealized losses		(1,605,905	)
Net unrealized gains	$	20,517,302

Portfolio of investments—August 31, 2015 Wells Fargo Advantage Government Securities Fund 1

Security name	Interest rate			Maturity date		Principal			Value
Agency Securities: 66.21%
FDIC Series 2010-S1 Class 1A 144A±		0.75	%		2-25-2048	$	4,570,349		$	4,571,715
FDIC Series 2013-R1 Class A 144A		1.15			3-25-2033		4,814,651			4,759,164
FHLB		5.63			3-14-2036		6,150,000			8,004,717
FHLMC ¤		0.00			11-20-2015		14,000,000			13,995,548
FHLMC ±		1.38			12-15-2036		820,780			849,548
FHLMC ±		2.33			10-1-2026		212,031			221,372
FHLMC ±		2.41			9-1-2031		9,209			9,411
FHLMC ±		2.41			9-1-2031		54,471			54,921
FHLMC ±		2.50			6-1-2032		82,440			86,860
FHLMC ±		2.53			1-1-2038		1,096,105			1,183,708
FHLMC ±		2.65			7-1-2029		151,633			158,192
FHLMC ±		2.90			5-1-2026		107,588			113,143
FHLMC ±		3.07			7-1-2032		1,316,137			1,300,022
FHLMC %%		3.50			9-14-2045		54,565,000			56,424,472
FHLMC		4.00			6-1-2044		10,836,264			11,498,872
FHLMC		4.50			3-1-2042		947,734			1,029,689
FHLMC		5.00			5-1-2018		170,059			177,213
FHLMC		5.00			4-1-2019		176,380			183,799
FHLMC		5.00			4-1-2019		161,509			168,303
FHLMC		5.00			6-1-2019		268,763			284,438
FHLMC		5.00			8-1-2019		966,860			1,023,195
FHLMC		5.00			10-1-2019		372,178			388,802
FHLMC		5.00			2-1-2020		1,021,786			1,070,827
FHLMC		5.00			8-1-2040		2,715,886			2,996,682
FHLMC		5.50			7-1-2035		6,551,164			7,331,479
FHLMC		5.50			12-1-2038		4,456,485			4,956,852
FHLMC		6.00			1-1-2024		2,645,801			2,883,866
FHLMC		6.00			10-1-2032		59,908			68,359
FHLMC		6.00			5-25-2043		6,335,211			7,158,566
FHLMC ±		6.38			1-1-2026		75,392			77,254
FHLMC		6.50			4-1-2018		13,431			13,810
FHLMC		6.50			4-1-2021		23,943			24,947
FHLMC		6.50			4-1-2022		107,431			122,731
FHLMC		6.50			9-1-2028		32,838			37,515
FHLMC		6.50			9-1-2028		22,629			25,852
FHLMC		6.50			7-1-2031		5			6
FHLMC		6.50			8-1-2037		213,461			230,522
FHLMC		7.00			12-1-2023		5,400			6,139
FHLMC		7.00			5-1-2024		10,647			10,855
FHLMC		7.00			12-1-2026		4,126			4,423
FHLMC		7.00			12-1-2026		833			935
FHLMC		7.00			4-1-2029		2,928			3,479
FHLMC		7.00			4-1-2029		1,625			1,630
FHLMC		7.00			5-1-2029		19,936			23,081
FHLMC		7.00			4-1-2032		183,460			220,490
FHLMC		7.50			11-1-2031		287,541			344,775
FHLMC		7.50			4-1-2032		240,277			284,868
FHLMC		8.00			2-1-2017		4,609			4,741
FHLMC		8.00			8-1-2023		24,803	��		27,045
FHLMC		8.00			6-1-2024		7,860			8,960

2 Wells Fargo Advantage Government Securities Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC		8.00	%		6-1-2024	$	3,724	$	3,843
FHLMC		8.00			6-1-2024		10,319		11,474
FHLMC		8.00			8-1-2026		24,537		29,956
FHLMC		8.00			11-1-2026		25,818		31,017
FHLMC		8.00			11-1-2028		18,379		21,343
FHLMC		8.50			7-1-2022		4,695		5,224
FHLMC		8.50			12-1-2025		16,308		18,886
FHLMC		8.50			5-1-2026		2,565		2,906
FHLMC		8.50			8-1-2026		6,344		6,541
FHLMC		8.50			8-1-2026		24,718		24,826
FHLMC		9.00			6-1-2016		606		610
FHLMC		9.00			1-1-2017		3,241		3,271
FHLMC		9.00			4-1-2017		4,704		4,753
FHLMC		9.00			11-1-2018		16,118		16,276
FHLMC		9.00			8-1-2019		366		385
FHLMC		9.00			8-1-2019		71		72
FHLMC		9.00			12-1-2019		171		185
FHLMC		9.00			1-1-2020		18		18
FHLMC		9.00			2-1-2020		123		134
FHLMC		9.00			3-1-2020		1,747		1,775
FHLMC		9.00			3-1-2020		241		249
FHLMC		9.00			9-1-2020		685		711
FHLMC		9.00			9-1-2020		183		199
FHLMC		9.00			12-1-2020		28		28
FHLMC		9.00			3-1-2021		3,796		4,133
FHLMC		9.00			4-1-2021		28,742		29,111
FHLMC		9.00			4-1-2021		3,261		3,370
FHLMC		9.00			4-1-2021		203		225
FHLMC		9.00			7-1-2021		4,282		4,302
FHLMC		9.00			7-1-2021		3,793		3,927
FHLMC		9.00			8-1-2021		516		580
FHLMC		9.00			7-1-2022		561		570
FHLMC		9.00			9-1-2024		1,425		1,578
FHLMC		9.50			9-1-2016		10		10
FHLMC		9.50			10-1-2016		82		84
FHLMC		9.50			8-1-2018		26		26
FHLMC		9.50			8-1-2019		117		127
FHLMC		9.50			2-1-2020		6		6
FHLMC		9.50			6-1-2020		59		65
FHLMC		9.50			8-1-2020		268		296
FHLMC		9.50			9-1-2020		18		18
FHLMC		9.50			9-1-2020		3,136		3,353
FHLMC		9.50			9-1-2020		43		47
FHLMC		9.50			10-1-2020		32		34
FHLMC		9.50			10-1-2020		65		72
FHLMC		9.50			11-1-2020		77		85
FHLMC		9.50			5-1-2021		223		249
FHLMC		9.50			9-17-2022		450,217		476,894
FHLMC		9.50			4-1-2025		55,380		63,703
FHLMC		10.00			8-1-2017		7		7

Portfolio of investments—August 31, 2015 Wells Fargo Advantage Government Securities Fund 3

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FHLMC		10.00	%		1-1-2019	$	7	$	8
FHLMC		10.00			12-1-2019		230		253
FHLMC		10.00			3-1-2020		10		10
FHLMC		10.00			6-1-2020		26		29
FHLMC		10.00			7-1-2020		10		10
FHLMC		10.00			8-1-2020		35		38
FHLMC		10.00			10-1-2021		49,466		54,049
FHLMC		10.00			8-17-2022		183,928		198,591
FHLMC		10.00			2-17-2025		520,864		593,115
FHLMC		10.50			2-1-2019		19		19
FHLMC		10.50			5-1-2019		77		78
FHLMC		10.50			6-1-2019		8		9
FHLMC		10.50			8-1-2019		13,476		14,627
FHLMC		10.50			12-1-2019		16,538		16,765
FHLMC		10.50			5-1-2020		29,132		32,086
FHLMC		10.50			5-1-2020		4,174		4,238
FHLMC		10.50			8-1-2020		12,454		12,579
FHLMC		10.50			8-1-2020		29,102		30,329
FHLMC Series 16 Class D		10.00			10-15-2019		7,826		8,158
FHLMC Series 2015-SC01 Class 1A		3.50			5-25-2045		5,665,440		5,728,207
FHLMC Series 2758 Class FH ±		0.55			3-15-2019		2,132,363		2,137,801
FHLMC Series 2882 Class TF ±		0.45			10-15-2034		1,830,519		1,835,607
FHLMC Series 3221 Class VA		5.00			9-15-2017		1,543,612		1,551,951
FHLMC Series 3706 Class C		2.00			8-15-2020		4,177,716		4,232,506
FHLMC Series 3767 Class PD		4.00			7-15-2040		290,412		302,090
FHLMC Series 3948 Class DA		3.00			12-15-2024		852,619		884,193
FHLMC Series K020 Class X1 ±(c)		1.59			5-25-2022		47,442,428		3,738,606
FHLMC Series T-15 Class A6 ±		0.59			11-25-2028		217,631		216,218
FHLMC Series T-23 Class A ±		0.48			5-25-2030		934,746		923,765
FHLMC Series T-35 Class A ±		0.48			9-25-2031		979,487		967,757
FHLMC Series T-42 Class A6		9.50			2-25-2042		1,180,380		1,462,513
FHLMC Series T-55 Class 2A1 ±		2.84			3-25-2043		662,914		668,301
FHLMC Series T-57 Class 1A1		6.50			7-25-2043		1,525,949		1,782,262
FHLMC Series T-57 Class 2A1 ±		3.26			7-25-2043		3,016,023		3,181,720
FHLMC Series T-67 Class 1A1C ±		2.91			3-25-2036		1,552,430		1,638,177
FHLMC Series T-67 Class 2A1C ±		2.88			3-25-2036		2,814,755		2,932,240
FHLMC Series T-75 Class A1 ±		0.24			12-25-2036		5,025,728		5,001,173
FNMA ¤		0.00			11-25-2015		40,000,000		39,986,480
FNMA ±		0.45			6-27-2036		489,872		489,419
FNMA ±		1.85			1-1-2043		1,867,237		1,917,370
FNMA ±		2.12			5-1-2036		2,901,403		3,052,976
FNMA ±		2.13			12-1-2035		1,601,995		1,694,900
FNMA ±		2.13			5-1-2036		2,312,298		2,455,846
FNMA ±		2.27			4-1-2032		120,210		122,642
FNMA ±		2.32			8-1-2036		2,963,088		3,160,368
FNMA ±		2.33			11-1-2031		199,466		209,522
FNMA ±		2.34			5-1-2023		955,074		972,747
FNMA ±		2.36			9-1-2036		1,417,139		1,507,808
FNMA ±		2.38			9-1-2031		75,059		79,333
FNMA ±		2.40			12-1-2034		1,733,668		1,847,365

4 Wells Fargo Advantage Government Securities Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA ±		2.43	%		12-1-2040	$	83,783	$	89,014
FNMA ±		2.47			6-1-2032		168,506		177,367
FNMA ±		2.50			9-1-2031		448,267		470,231
FNMA		2.50			4-25-2039		295,241		296,905
FNMA ±		2.55			6-1-2034		777,120		822,551
FNMA ±		2.60			9-1-2027		549,766		586,596
FNMA ±		2.60			10-1-2027		237,767		248,707
FNMA		2.63			9-6-2024		16,000,000		16,117,840
FNMA ±		2.84			1-1-2033		45,293		45,532
FNMA ±		2.96			7-1-2026		420,549		447,007
FNMA		3.00			4-1-2022		1,070,659		1,115,624
FNMA %%		3.00			9-17-2030		18,235,000		18,915,964
FNMA %%		3.00			9-14-2045		50,715,000		50,936,878
FNMA ±		3.01			5-1-2036		1,192,993		1,270,984
FNMA ±		3.14			2-1-2027		626,474		634,916
FNMA ±		3.46			4-1-2033		79,255		82,549
FNMA %%		3.50			9-17-2030		23,385,000		24,634,636
FNMA %%		3.50			9-14-2045		34,805,000		36,067,350
FNMA ±		3.78			9-1-2028		196,665		204,321
FNMA		4.00			5-1-2021		1,000,907		1,048,051
FNMA %%		4.00			9-14-2045		58,150,000		61,768,483
FNMA ±		4.11			7-1-2033		158,521		163,354
FNMA		4.50			12-1-2018		712,800		740,583
FNMA		4.50			1-1-2026		8,705,800		9,051,541
FNMA %%		4.50			9-14-2045		59,157,000		64,090,670
FNMA		4.68			2-1-2020		3,222,659		3,579,947
FNMA		4.79			5-1-2019		2,135,656		2,354,608
FNMA		5.00			12-1-2018		533,158		554,907
FNMA		5.00			6-1-2019		465,878		484,882
FNMA		5.00			6-1-2023		1,250,520		1,350,876
FNMA		5.00			3-1-2034		1,044,652		1,157,060
FNMA		5.00			8-1-2040		20,600,847		22,821,692
FNMA		5.22			10-1-2015		3,136,384		3,140,404
FNMA		5.30			4-1-2017		6,196,583		6,466,756
FNMA		5.38			5-1-2017		700,028		733,708
FNMA		5.39			1-1-2024		2,416,940		2,745,081
FNMA		5.50			6-1-2016		43,985		44,493
FNMA		5.50			11-1-2023		180,821		198,605
FNMA		5.50			1-1-2025		149,760		160,810
FNMA		5.50			1-1-2025		661,756		714,303
FNMA		5.50			8-1-2033		6,832,846		7,674,115
FNMA		5.50			9-1-2033		3,596,486		4,056,114
FNMA		5.50			9-1-2033		1,618,626		1,824,002
FNMA		5.50			8-1-2035		1,126,282		1,260,548
FNMA		5.50			1-1-2037		1,317,244		1,477,734
FNMA %%		5.50			4-1-2040		3,248,744		3,648,214
FNMA		5.55			5-1-2016		2,674,876		2,750,884
FNMA		5.55			9-1-2019		983,857		1,022,187
FNMA		5.61			2-1-2021		2,356,167		2,572,876
FNMA		5.63			2-1-2018		1,059,799		1,158,091

Portfolio of investments—August 31, 2015 Wells Fargo Advantage Government Securities Fund 5

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA		5.67	%		11-1-2021	$	5,408,112	$	5,777,922
FNMA		5.70			3-1-2016		910,821		928,576
FNMA		5.75			5-1-2021		3,427,271		3,862,272
FNMA		5.79			10-1-2017		1,051,487		1,138,024
FNMA		5.95			6-1-2024		1,734,919		2,028,360
FNMA		6.00			5-1-2016		12,229		12,330
FNMA		6.00			3-1-2024		138,629		156,558
FNMA		6.00			2-1-2035		2,000,358		2,229,014
FNMA		6.00			11-1-2037		1,041,774		1,175,607
FNMA %%		6.00			9-14-2045		15,585,000		17,621,191
FNMA		6.08			1-1-2019		563,313		582,790
FNMA		6.50			6-1-2017		48,966		50,088
FNMA		6.50			1-1-2024		43,202		49,586
FNMA		6.50			3-1-2028		36,886		40,744
FNMA		6.50			12-1-2029		423,917		486,553
FNMA		6.50			11-1-2031		102,376		118,688
FNMA		6.50			7-1-2036		674,287		773,917
FNMA		6.50			7-1-2036		557,461		667,451
FNMA		6.50			7-25-2042		2,183,325		2,467,955
FNMA		6.63			11-15-2030		4,150,000		5,926,532
FNMA		6.65			5-1-2016		1,362,137		1,410,251
FNMA		7.00			11-1-2026		13,106		15,124
FNMA		7.00			9-1-2031		5,629		5,645
FNMA		7.00			1-1-2032		6,603		7,553
FNMA		7.00			2-1-2032		8,062		8,330
FNMA		7.00			2-1-2032		139,859		168,706
FNMA		7.00			10-1-2032		325,158		384,199
FNMA		7.00			2-1-2034		3,210		3,725
FNMA		7.00			4-1-2034		265,212		310,832
FNMA		7.00			1-1-2036		6,781		7,356
FNMA		7.00			9-1-2036		154,151		164,533
FNMA		7.50			9-1-2031		135,250		167,982
FNMA		7.50			11-25-2031		686,780		797,954
FNMA		7.50			2-1-2032		50,013		60,520
FNMA		7.50			10-1-2037		1,758,625		2,037,355
FNMA		8.00			5-1-2027		54,183		57,118
FNMA		8.00			10-1-2027		9,810		9,943
FNMA		8.00			6-1-2028		7,990		9,125
FNMA		8.00			2-1-2030		163,785		188,301
FNMA		8.00			7-1-2031		1,835,646		2,247,741
FNMA		8.50			5-1-2017		116,659		121,250
FNMA		8.50			5-1-2017		1,528		1,591
FNMA		8.50			8-1-2024		32,783		36,830
FNMA		8.50			5-1-2026		188,609		213,362
FNMA		8.50			7-1-2026		30,825		33,011
FNMA		8.50			8-1-2026		15,602		15,950
FNMA		8.50			9-1-2026		161		162
FNMA		8.50			10-1-2026		33,880		34,486
FNMA		8.50			10-1-2026		357		375
FNMA		8.50			10-1-2026		8,261		8,294

6 Wells Fargo Advantage Government Securities Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA		8.50	%		11-1-2026	$	33,885	$	34,985
FNMA		8.50			11-1-2026		10,827		11,512
FNMA		8.50			12-1-2026		211,103		244,540
FNMA		8.50			12-1-2026		21,509		24,659
FNMA		8.50			12-1-2026		320		321
FNMA		8.50			2-1-2027		8,512		8,588
FNMA		8.50			2-1-2027		392		451
FNMA		8.50			3-1-2027		2,855		2,866
FNMA		8.50			3-1-2027		1,253		1,440
FNMA		8.50			6-1-2027		191,166		210,981
FNMA		8.50			7-1-2029		931		935
FNMA		9.00			3-1-2021		27,168		28,382
FNMA		9.00			6-1-2021		187		207
FNMA		9.00			7-1-2021		44,390		48,752
FNMA		9.00			8-1-2021		247		276
FNMA		9.00			10-1-2021		14,536		14,646
FNMA		9.00			1-1-2025		2,765		2,822
FNMA		9.00			1-1-2025		22,345		25,512
FNMA		9.00			2-1-2025		8,072		8,106
FNMA		9.00			3-1-2025		218		218
FNMA		9.00			3-1-2025		2,430		2,443
FNMA		9.00			3-1-2025		1,465		1,472
FNMA		9.00			4-1-2025		3,167		3,180
FNMA		9.00			7-1-2028		36,664		38,883
FNMA		9.50			11-1-2020		179		199
FNMA		9.50			12-15-2020		49,793		55,473
FNMA		9.50			1-1-2021		24,770		26,039
FNMA		9.50			6-1-2022		3,323		3,375
FNMA		9.50			7-1-2028		59,261		62,674
FNMA		10.00			12-1-2020		71,639		79,528
FNMA		11.00			2-1-2019		7,067		7,150
FNMA		11.00			10-15-2020		1,124		1,151
FNMA Series 161 Class 2 (c)		8.50			7-25-2022		58,028		13,455
FNMA Series 1988-2 Class Z		10.10			2-25-2018		268		270
FNMA Series 1988-7 Class Z		9.25			4-25-2018		16,476		17,561
FNMA Series 1989-10 Class Z		9.50			3-25-2019		126,087		137,324
FNMA Series 1989-100 Class Z		8.75			12-25-2019		70,611		77,068
FNMA Series 1989-12 Class Y		10.00			3-25-2019		149,631		163,378
FNMA Series 1989-22 Class G		10.00			5-25-2019		145,622		160,802
FNMA Series 1989-63 Class Z		9.40			10-25-2019		14,279		15,385
FNMA Series 1989-98 Class E		9.20			12-25-2019		45,056		48,695
FNMA Series 1990-144 Class W		9.50			12-25-2020		95,564		107,101
FNMA Series 1990-75 Class Z		9.50			7-25-2020		120,137		134,276
FNMA Series 1990-84 Class Y		9.00			7-25-2020		23,495		25,832
FNMA Series 1990-96 Class Z		9.67			8-25-2020		162,662		182,822
FNMA Series 1991-5 Class Z		8.75			1-25-2021		36,493		39,943
FNMA Series 1991-85 Class Z		8.00			6-25-2021		79,249		85,177
FNMA Series 1992-45 Class Z		8.00			4-25-2022		127,851		145,323
FNMA Series 1999-W6 Class A ±		9.09			9-25-2028		13,600		14,143
FNMA Series 2000-T6 Class A2		9.50			6-25-2030		1,126,280		1,346,635

Portfolio of investments—August 31, 2015 Wells Fargo Advantage Government Securities Fund 7

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
FNMA Series 2001-T10 Class A3		9.50	%		12-25-2041	$	1,712,137	$	1,971,149
FNMA Series 2001-T12 Class A3		9.50			8-25-2041		434,561		505,663
FNMA Series 2002-T12 Class A5 ±		3.58			10-25-2041		1,483,955		1,557,539
FNMA Series 2002-T19 Class A1		6.50			7-25-2042		5,853,686		6,789,368
FNMA Series 2002-T5 Class A1 ±		0.44			5-25-2032		352,981		348,018
FNMA Series 2002-W4 Class A4		6.25			5-25-2042		952,509		1,051,947
FNMA Series 2003-T2 Class A1 ±		0.48			3-25-2033		410,829		399,254
FNMA Series 2003-W1 Class 1A1 ±		5.77			12-25-2042		897,512		1,021,299
FNMA Series 2003-W11 Class A1 ±		3.46			6-25-2033		121,934		127,757
FNMA Series 2003-W3 Class 1A4 ±		3.46			8-25-2042		3,702,796		3,911,067
FNMA Series 2003-W5 Class A ±		0.42			4-25-2033		589,133		567,023
FNMA Series 2003-W6 Class 6A ±		3.13			8-25-2042		2,603,262		2,805,460
FNMA Series 2003-W6 Class PT4 ±		8.67			10-25-2042		2,280,108		2,787,754
FNMA Series 2003-W8 Class PT1 ±		9.65			12-25-2042		913,960		1,051,735
FNMA Series 2003-W9 Class A ±		0.44			6-25-2033		142,704		138,399
FNMA Series 2004-79 Class FA ±		0.49			8-25-2032		1,195,026		1,197,161
FNMA Series 2004-T1 Class 1A2		6.50			1-25-2044		876,993		988,389
FNMA Series 2004-W1 Class 2A2		7.00			12-25-2033		1,986,362		2,324,924
FNMA Series 2004-W15 Class 1A3		7.00			8-25-2044		1,469,405		1,698,548
FNMA Series 2005-71 Class DB		4.50			8-25-2025		1,558,605		1,662,634
FNMA Series 2006-M2 Class A2F ±		5.26			5-25-2020		5,717,033		6,156,947
FNMA Series 2007-2 Class FA ±		0.40			2-25-2037		50,674		50,683
FNMA Series 2007-W10 Class 2A ±		6.32			8-25-2047		852,765		966,175
FNMA Series 2009-3 Class HL		5.00			2-25-2039		473,843		485,512
FNMA Series 2011-15 Class HI (c)		5.50			3-25-2026		2,512,977		221,126
FNMA Series 2011-42 Class A		3.00			2-25-2024		1,023,991		1,055,083
FNMA Series 265 Class 2		9.00			3-25-2024		159,054		183,753
FNMA Series G-8 Class E		9.00			4-25-2021		126,439		140,235
FNMA Series G92-30 Class Z		7.00			6-25-2022		203,503		219,442
FNMA Series G93-39 Class ZQ		6.50			12-25-2023		2,388,129		2,636,040
GNMA ±		3.00			8-20-2020		167,893		172,611
GNMA ±		3.00			11-20-2020		116,911		121,708
GNMA		3.00			7-20-2045		24,467,529		24,827,343
GNMA %%		3.50			9-21-2045		36,705,000		38,217,646
GNMA		4.00			1-20-2045		15,883,314		16,862,400
GNMA		5.00			7-20-2040		6,731,286		7,481,390
GNMA		6.00			8-20-2034		293,845		329,554
GNMA		6.50			12-15-2025		40,944		46,782
GNMA		6.50			5-15-2029		1,976		2,257
GNMA		6.50			5-15-2031		2,539		2,901
GNMA		6.50			9-20-2033		88,044		106,278
GNMA		7.00			12-15-2022		45,082		49,107
GNMA		7.00			5-15-2026		4,743		5,264
GNMA		7.00			3-15-2028		68,833		76,312
GNMA		7.00			1-15-2031		469		483
GNMA		7.00			4-15-2031		1,227		1,266
GNMA		7.00			8-15-2031		21,736		23,015
GNMA		7.00			3-15-2032		16,193		16,666
GNMA		7.34			10-20-2021		54,514		56,407
GNMA		7.34			12-20-2021		19,397		19,464

8 Wells Fargo Advantage Government Securities Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal		Value
Agency Securities (continued)
GNMA		7.34	%		2-20-2022	$	15,859	$	15,914
GNMA		7.34			9-20-2022		35,684		36,967
GNMA		8.00			6-15-2023		5,364		5,930
GNMA		8.00			12-15-2023		404,636		470,439
GNMA		8.00			2-15-2024		1,171		1,317
GNMA		8.00			9-15-2024		4,582		4,783
GNMA		8.00			6-15-2025		89		89
GNMA		8.35			4-15-2020		252,279		274,965
GNMA		8.40			5-15-2020		162,592		178,177
GNMA		8.50			7-15-2016		304		305
GNMA		9.00			12-15-2016		1,896		1,904
GNMA		9.50			10-20-2019		56,885		60,687
GNMA		10.00			12-15-2018		5,979		6,012
GNMA Series 2002-53 Class IO ±(c)		0.60			4-16-2042		465,318		5
GNMA Series 2005-23 Class IO ±(c)		0.14			6-17-2045		8,254,790		25,895
GNMA Series 2006-32 Class C ±		5.30			11-16-2038		6,692,871		6,958,678
GNMA Series 2006-32 Class XM ±(c)		0.02			11-16-2045		13,472,078		14,792
GNMA Series 2006-68 Class D ±		5.31			12-16-2037		12,520,000		13,532,202
GNMA Series 2007-35 Class NF ±		0.30			10-16-2035		2,825,788		2,825,228
GNMA Series 2007-69 Class D ±		5.25			6-16-2041		959,554		1,032,564
GNMA Series 2008-22 Class XM ±(c)		0.74			2-16-2050		35,071,839		1,108,691
GNMA Series 2012-12 Class HD		2.00			5-20-2062		3,236,729		3,275,751
SBA (c)(a)(i)		1.30			2-15-2018		147,716		1,988
SBA Series 1992-6 Class A (c)(a)(i)		2.09			10-15-2017		141,606		2,847
TVA		5.38			4-1-2056		3,670,000		4,526,850
Total Agency Securities (Cost $806,666,573)									822,923,388
Municipal Obligations: 0.61%
Texas: 0.61%
San Antonio TX Retama Development Corporation (Miscellaneous Revenue)		10.00			12-15-2020		5,405,000		7,557,271
Total Municipal Obligations (Cost $6,570,827)									7,557,271
Non-Agency Mortgage-Backed Securities: 5.80%
CGBAM Commercial Mortgage Trust Series 2015-SMRT Class A 144A		2.81			4-10-2028		5,000,000		5,073,015
Citigroup Commercial Mortgage Trust Series 2006-C4 Class A3 ±		5.97			3-15-2049		8,499,800		8,610,739
Citigroup Commercial Mortgage Trust Series 2006-C5 Class A4		5.43			10-15-2049		11,280,000		11,603,849
Citigroup Commercial Mortgage Trust Series 2015-GC27 Class A5		3.14			2-10-2048		6,130,000		6,003,471
GAHR Commercial Mortgage Trust Series 2015-NRF Class AFX 144A		3.23			12-15-2019		4,195,000		4,273,488
GS Mortgage Securities Trust Series 2013-G1 Class A2 144A±		3.56			4-10-2031		5,349,842		5,334,959
JPMBB Commercial Mortgage Securities Series 2015-C28 Class A4		3.23			10-15-2048		6,200,000		6,078,802
Lehman Brothers UBS Commercial Mortgage Trust Series 2006-C1 Class A4		5.16			2-15-2031		5,257,961		5,270,622
Morgan Stanley Bank of America Merrill Lynch Trust Series 2015-C23 Class A4		3.72			7-15-2050		8,500,000		8,694,412
Morgan Stanley Capital I Series 2006-HQ8 Class A4 ±		5.58			3-12-2044		1,350,798		1,353,222
NCUA Guaranteed Notes Program Series 2010-C1 Class APT		2.65			10-29-2020		6,222,604		6,247,725
NCUA Guaranteed Notes Program Series 2011-R4 Class 1A ±		0.57			3-6-2020		2,143,699		2,147,452
NCUA Guaranteed Notes Program Series 2011-R6 Class 1A ±		0.57			5-7-2020		413,107		413,187
Vendee Mortgage Trust Series 1995-1 Class 4 ±		8.76			2-15-2025		337,186		383,943
Vendee Mortgage Trust Series 1995-2C Class 3A		8.79			6-15-2025		451,952		554,953
Total Non-Agency Mortgage-Backed Securities (Cost $73,792,503)									72,043,839

Portfolio of investments—August 31, 2015 Wells Fargo Advantage Government Securities Fund 9

Security name	Interest rate			Maturity date		Principal		Value
U.S. Treasury Securities: 54.56%
TIPS		0.38	%		7-15-2025	$	39,364,067	$	38,569,109
U.S. Treasury Bond		2.75			8-15-2042		16,720,000		16,039,881
U.S. Treasury Bond		3.00			11-15-2044		5,965,000		5,994,437
U.S. Treasury Bond		3.00			5-15-2045		17,355,000		17,477,925
U.S. Treasury Bond ##		4.63			2-15-2040		20,150,000		26,338,246
U.S. Treasury Bond		7.25			8-15-2022		4,685,000		6,321,944
U.S. Treasury Note ±##		0.10			1-31-2016		130,990,000		131,007,946
U.S. Treasury Note		0.25			9-30-2015		8,900,000		8,900,000
U.S. Treasury Note		0.25			11-30-2015		43,700,000		43,705,681
U.S. Treasury Note ##		0.25			12-31-2015		110,000,000		110,000,000
U.S. Treasury Note		0.38			11-15-2015		81,495,000		81,528,983
U.S. Treasury Note ##		0.38			2-15-2016		97,455,000		97,488,037
U.S. Treasury Note		1.00			8-31-2016		12,240,000		12,306,463
U.S. Treasury Note		1.38			2-28-2019		56,455,000		56,679,917
U.S. Treasury Note		2.13			6-30-2022		15,105,000		15,300,504
U.S. Treasury Note		6.25			8-15-2023		7,915,000		10,366,798
Total U.S. Treasury Securities (Cost $671,412,253)									678,025,871
Yankee Corporate Bonds and Notes: 1.58%
Financials: 1.58%
Banks: 1.58%
Bank of Nova Scotia 144A		1.65			10-29-2015		13,235,000		13,257,102
Royal Bank of Canada Incorporated		2.00			10-1-2018		6,370,000		6,436,923
									19,694,025
Total Yankee Corporate Bonds and Notes (Cost $19,601,211)									19,694,025
Yankee Government Bonds: 0.87%
Hashemite Kingdom of Jordan		2.58			6-30-2022		10,630,000		10,775,163
Total Yankee Government Bonds (Cost $10,630,000)									10,775,163
	Yield					Shares
Short-Term Investments: 1.61%
Investment Companies: 1.47%
Wells Fargo Advantage Government Money Market Fund, Institutional Class ##(l)(u)		0.01					18,254,235		18,254,235
						Principal
U.S. Treasury Securities: 0.14%
U.S. Treasury Bill (z)#		0.01			9-17-2015	$	1,775,000		1,774,998
Total Short-Term Investments (Cost $20,029,229)									20,029,233

10 Wells Fargo Advantage Government Securities Fund Portfolio of investments—August 31, 2015

Security name	Interest rate			Maturity date		Principal			Value
TBA Sale Commitments: (0.29%)
FNMA %%		5.50	%		9-14-2045	$	(3,250,000	)	$	(3,635,938	)
Total TBA Sale Commitments (Proceeds $(3,640,000))										(3,635,938	)

Total investments in securities (excluding TBA sale commitments) (Cost $1,608,702,596) *	131.24	%		1,631,048,790
Total TBA sale commitments	(0.29	)		(3,635,938	)
Other assets and liabilities, net	(30.95	)		(384,634,729	)
Total net assets	100.00	%	$	1,242,778,123

144A The security may be resold in transactions exempt from registration, normally to qualified institutional buyers, pursuant to Rule 144A under the Securities Act of 1933.

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

¤ The security is issued in zero coupon form with no periodic interest payments.

%% The security is issued on a when-issued basis.

(c) Investment in an interest-only security entitles holders to receive only the interest payments on the underlying mortgages. The principal amount shown is the notional amount of the underlying mortgages. The rate represents the coupon rate.

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

(i) Illiquid security for which the designation as illiquid is unaudited.

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

(l) The security represents an affiliate of the Fund as defined in the Investment Company Act of 1940.

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

(z) Zero coupon security. The 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 $1,609,447,026 and unrealized gains (losses) consists of:

Gross unrealized gains	$	28,698,849
Gross unrealized losses		(7,097,085	)
Net unrealized gains	$	21,601,764

Report of Independent Registered Public Accounting Firm

The Board of Trustees and Shareholders of

Wells Fargo Funds Trust:

We have audited the financial statements of the Wells Fargo Advantage Adjustable Rate Government Fund and the Wells Fargo Advantage Government Securities Fund (the “Funds”), each a series of the Wells Fargo Funds Trust, as of August 31, 2015, and for each of the years presented and have issued our unqualified reports thereon dated October 26, 2015 (which reports and financial statements are included in Item 1 of this Certified Shareholder Report on Form N-CSR). We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Our audits included an audit of the Funds’ portfolios of investments (the “Portfolios”) as of August 31, 2015 appearing in Item 6 of this Form N-CSR. These Portfolios are the responsibility of management. Our responsibility is to express an opinion on these Portfolios based on our audits.

In our opinion, the Portfolios referred to above, when read in conjunction with the financial statements of the Funds, present fairly, in all material respects, the information set forth therein.

Boston, Massachusetts

October 26, 2015

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 MANAGEMENT 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) Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as Exhibit COE.

(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:	October 26, 2015

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:	October 26, 2015
By:
	/s/ Nancy Wiser
	Nancy Wiser
	Treasurer
Date:	October 26, 2015